Registration No. 333-95957 April 27, 2000
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Post-Effective Amendment No. 1
to
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF UNIT INVESTMENT TRUSTS
REGISTERED ON FORM N-8B-2
A. Exact name of trust:
American Skandia Life Assurance Corporation Separate Account F
B. Name of depositor:
American Skandia Life Assurance Corporation
C. Complete address of depositor's principal executive offices:
One Corporate Drive, Shelton, CT 06484
D. Name and complete address of agent for service:
Scott K. Richardson, Esq.
American Skandia Life Assurance Corporation
One Corporate Drive
Shelton, CT 06484
It is proposed that this filing will become effective
(check appropriate box)
[ ] immediately upon filing pursuant to paragraph (b)
[ ] on ____________ pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[X] on May 1, 2000 pursuant to paragraph (a)(1) of rule 485
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment
E. Title and amount of securities being registered:
Flexible Premium Variable Life Insurance.
The Registrant elects to register an indefinite number of securities by
this registration statement in accordance with Rule 24f-2 under the
Investment Company Act of 1940.
F. Proposed maximum aggregate offering price to the public of the
securities being registered:
G. Amount of filing fee:
None
H. Approximate date of proposed public offering
As soon as practicable after the effective date of this Registration
Statement.
[ ] Check box if it is proposed that this filing will become effective
on ______________ at ____________ pursuant to Rule 487.
Champion IIA
RECONCILIATION AND TIE BETWEEN
FORM N-8B-2 AND PROSPECTUS
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
1. Face page
2. Face page
3. Not applicable
4. Distribution of this Offering
5. The Separate Account
6. The Separate Account
7. Not Applicable
8. Not Applicable
9. Legal Proceedings
10. Face page; Variable Investment Options; The Separate Account; Voting;
Modification of the Separate Account; Additional Tax Considerations; Loans;
Partial Withdrawals; Surrenders; Transfers and Allocation Services;
Safekeeping of the Assets
11. Face page; Variable Investment Options
12. Face page; Variable Investment Options
13. Costs; Variable Investment Options; Taxes; Additional Tax Considerations
14. Buying a Policy - How do I buy a Policy?
15. Account Value and Cash Value; Buying a Policy - How and When is my Premium
Invested?
16. Buying a Policy - How and When is my Initial Premium Invested? Variable
Investment Options
17. Partial Withdrawals; Surrenders; Reinstatement; Account Value and Cash
Value; Buying a Policy; Pricing Transactions
18. Account Value and Cash Value; Variable Investment Options; The Separate
Account; Safekeeping of the Assets
19. Reports
20. Voting; Safekeeping of the Assets
21. Loans
22. Not applicable
23. Safekeeping of the Assets
24. Not applicable
25. Regulation; The Insurance Company
26. Not applicable
27. The Insurance Company
28. Executive Officers and Directors
29. The Insurance Company
30. Not applicable
31. Not applicable
32. Not applicable
33. Not applicable
34. Not applicable
35. The Insurance Company; Regulation
36. Not applicable
37. Not applicable
38. Distribution of this Offering
39. Distribution of this Offering
40. Not applicable
41. The Insurance Company; Distribution of this Offering
42. Not applicable
43. Not applicable
44. Account Value and Cash Value; Pricing Transactions; Additional Tax
Considerations; Net Investment Factor
45. Not applicable
46. Account Value and Cash Value; Pricing Transactions; Additional Tax
Considerations; Net Investment Factor
47. Variable Investment Options; The Separate Account
48. Face Page; The Insurance Company
49. Not applicable
50. The Separate Account; Safekeeping of the Assets
51. Face Page; The Insurance Company; Benefits at the Insured's Death;
Designations
52. Modification of the Separate Account
53. Additional Tax Considerations
54. Not applicable
55. Not applicable
56. Not applicable
57. Not applicable
58. Not applicable
59. Audited Consolidated Financial Statements of American Skandia Life Assurance
Corporate; Financial Statements for American Skandia Life Assurance
Corporation Separate Account F
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
One Corporate Drive, Shelton, Connecticut 06484
This Prospectus describes a flexible premium variable life insurance policy
being offered by American Skandia Life Assurance Corporation ("we," "our," "us,"
"American Skandia," or "the Company"), One Corporate Drive, P.O. Box 883,
Shelton, Connecticut, 06484. The policy may be offered as individual coverage or
as an interest in a group policy. This Prospectus provides a detailed discussion
of matters you should consider before buying a policy. This policy or certain of
its investment options may not be available in all jurisdictions. Various rights
and benefits may differ between jurisdictions to meet applicable law and/or
regulations.
What is American Skandia offering? We are offering a type of cash value life
insurance called "flexible premium variable life insurance." Each of these terms
can be explained as follows:
|X| The coverage is "life insurance" because a death benefit becomes payable to
a beneficiary upon the death of the insured person (if coverage is issued
on two insureds, the death benefit is payable upon the death of the second
of the insureds to die). It is "cash value" life insurance because, in
addition to a death benefit, it also provides living benefits for the
owner, such as the right to take withdrawals and the right to take loans
using the value of the policy as collateral.
|X| The coverage is called "flexible premium" because it offers considerable
flexibility in the timing and amount of premium payments after the initial
premium. No additional premium must be paid unless it is required to pay
the ongoing monthly charges. However, there is a minimum amount we accept,
both for initial and subsequent premiums. There is also a maximum total
amount you can pay. In order to achieve certain beneficial tax treatment
for withdrawals and loans, you may need to limit the amounts you pay. If
you pay the maximum allowable amount, you may not be able to pay any
additional premiums without applying for additional insurance.
|X| The coverage is "variable" because you can allocate all or part of your
premium to variable investment options that invest in an underlying mutual
fund or a portfolio of an underlying mutual fund. The variable investment
options are sub-accounts of American Skandia Life Assurance Corporation
Separate Account F ("Account F"). The following underlying mutual funds or
portfolios of the following underlying mutual funds currently are being
offered: American Skandia Trust, The Alger American Fund, Montgomery
Variable Series, INVESCO Variable Investment Funds, Inc., and Evergreen
Variable Annuity Trust. The available portfolios of these underlying mutual
funds are listed on page 22. The performance of the variable investment
options is not guaranteed. You bear the investment risk if you allocate
funds to these investment options because the performance of these
investment options can decrease or increase. This can impact the death
benefit and the cash value of the Policy.
|X| The coverage also allows you to allocate all or part of your premiums to a
fixed option to which we credit a fixed rate of interest. We guarantee the
rate of return on this option. These obligations are supported by our
general account. We bear the investment risk if you allocate funds to this
option.
|X| The Policy can be structured to qualify as life insurance under either of
two (2) tests outlined in the Internal Revenue Code ("Code") - the
guideline premium test or the cash value accumulation test. The test you
choose can have an impact on the amount of premium that can be applied to
the Policy and can have an impact on values under your Policy, including
the death benefit. Your financial professional can assist you in electing
the test that is best for your particular situation and goals.
|X| Depending on the timing and amount of your premium payments, the Policy may
be treated as a modified endowment contract (or MEC). We evaluate your
policy according to the "7-pay test" under the Code, which compares the
amount of premiums paid to the amount of insurance purchased. If your
policy "passes" the 7-pay test, it will not be treated as a MEC. As a
non-MEC, partial withdrawals or loans you take from the policy will receive
favorable tax treatment. If your policy does not pass the 7-pay test at any
time, it will be treated as a MEC and will not be entitled to some of the
beneficial tax treatment given to a non-MEC policy.
The variable life insurance policy described in this Prospectus is not a deposit
of or guaranteed by, any bank or bank subsidiary, and is not insured by the
Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other
agency. The Policy is subject to investment risks, including the possible loss
of the principal amount invested.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. PLEASE
READ THIS PROSPECTUS AND THE CURRENT PROSPECTUSES FOR THE UNDERLYING FUNDS. KEEP
IT FOR FUTURE REFERENCE.
- --------------------------------------------------------------------------------
CHAMPIIA-PROS(5/2000) CALL 1-800-752-6342 FOR FURTHER INFORMATION
Prospectus Dated: May 1, 2000
|X| The Policy has a limited amount of liquidity during the first ten (10)
years. During that period, you can only make withdrawals under certain
medically-related circumstances or from premium amounts made in excess of
certain limits. However, you can access a portion of the policy's value
through policy loans using a portion of its value as collateral. Assuming
that the policy is not treated as a MEC, policy loans receive favorable tax
treatment. Loans can have an impact on benefits that can be positive or
negative.
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<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
Definitions........................................................................................................................6
Summary of Costs...................................................................................................................9
Description of the Offering.......................................................................................................12
Purchasers.....................................................................................................................12
Benefits at the Insured's Death................................................................................................12
Account Value and Cash Value...................................................................................................15
Cash Value Credits.............................................................................................................16
Costs..........................................................................................................................16
Buying a Policy................................................................................................................20
Variable Investment Options....................................................................................................22
Additional Premiums............................................................................................................30
Keeping the Policy In Force....................................................................................................30
Transfers and Allocation Services..............................................................................................31
Loans..........................................................................................................................31
Partial Withdrawals............................................................................................................33
Surrenders.....................................................................................................................33
Accelerated Death Benefit......................................................................................................34
Medically-Related Waiver.......................................................................................................34
Risks..........................................................................................................................34
Other Rights...................................................................................................................35
The Insurance Company..........................................................................................................35
The Separate Account...........................................................................................................35
Taxes..........................................................................................................................36
Available Information..........................................................................................................37
Miscellaneous Provisions and Additional Details...................................................................................37
Providing Services to You......................................................................................................37
Designations...................................................................................................................37
Net Investment Factor..........................................................................................................37
Allocation Programs............................................................................................................38
Limitations on Transfers.......................................................................................................38
Death During the Grace Period..................................................................................................38
Reinstatement..................................................................................................................39
Maturity.......................................................................................................................39
Pricing Transactions...........................................................................................................39
Delaying Transactions..........................................................................................................39
Voting.........................................................................................................................40
Transfers, Assignments, Pledges................................................................................................40
Reports........................................................................................................................40
Incontestability...............................................................................................................41
Suicide........................................................................................................................41
Misstatement...................................................................................................................41
Backdating.....................................................................................................................41
Policy Loans on Exchanges......................................................................................................41
Resolving Material Conflicts...................................................................................................41
Modification of the Separate Account...........................................................................................42
Entire Contract................................................................................................................42
Additional Tax Considerations..................................................................................................42
Safekeeping of the Assets......................................................................................................44
Regulation.....................................................................................................................45
Legal Matters..................................................................................................................45
Legal Proceedings..............................................................................................................45
Experts........................................................................................................................45
Distribution of this Offering..................................................................................................45
Illustrations........................................................................................
Executive Officers and Directors.....................................................................
AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN SKANDIA LIFE ASSURANCE CORPORATION...........................................1
Financial Statements for American Skandia Life Assurance Corporation Separate Account F............................................1
Appendix A Multiple Factors for Determination of Minimum Required Death Benefits -
Cash Value Accumulation Test....................................................................................................2
Appendix A Multiple Factors for Determination of Minimum Required Death Benefits -
Guideline Premium Test..........................................................................................................5
Appendix B Guaranteed Maximum Monthly Cost of Insurance Charges....................................................................6
Appendix C Current Monthly Cost of Insurance Rates.................................................................................8
Appendix D Description of the Calculation of Current Monthly Cost of Insurance Charges............................................10
Appendix E Maximum Annual Assessable Premiums per $1,000 of Specified Amount......................................................11
APPENDIX F Hypothetical Illustration of Accelerated Death Benefit.................................................................13
</TABLE>
<PAGE>
DEFINITIONS
The following are key terms used in this Prospectus. Other terms are defined in
this Prospectus as they appear.
ACCOUNT VALUE is the value of your allocation to each Sub-account and any Fixed
Allocation, plus any earnings and less any losses, distributions and charges
thereon, plus the value of any amounts in the Loan Account, plus any earnings
and less any distributions and charges thereon, all before assessment of any
contingent deferred sales charge or Debt. Account Value is determined separately
for each Sub-account and each Fixed Allocation, as well as for any amounts in
the Loan Account, and then totaled to determine the Account Value of your entire
Policy.
AGE is the age of an Insured for purposes of this Policy. Initially, and for the
first Policy Year, it is the age last birthday of an Insured as of the Policy
Date. In each following Policy Year, it is the age last birthday of an Insured
as of the preceding Policy Anniversary. If there is more than one Insured, it is
the age of the younger Insured.
APPLICATION is the form or combination of forms you must submit to apply for a
Policy. If there are two Insureds, the Application must be completed for both
Insureds.
ASSESSABLE PREMIUM is the portion of Premiums paid against which we assess any
applicable contingent deferred sales charge upon a surrender of the Policy.
BENEFICIARY is a person or entity you designate for us to pay any Death
Proceeds. Unless otherwise specified, Beneficiary refers to all persons or
entities so designated.
CASH VALUE is the Account Value less any contingent deferred sales charge, less
any unpaid charges and Debt.
CASH VALUE CREDITS are amounts we credit to your Account Value. We credit these
amounts if your total Cash Value on a Policy Anniversary equals or exceeds 200%
(2X) of your Premium or your Premium (net of withdrawals) exceeds a cumulative
amount after seven Policy Years.
CODE is the Internal Revenue Code of 1986, as amended from time to time, and the
regulations thereunder.
DEATH BENEFIT is the amount payable as a result of an Insured's death before any
reduction due to Debt and any unpaid charges due and before addition of any
interest due pursuant to law. If there is a second Insured, the Death Benefit is
payable upon the death of the last surviving Insured.
DEATH PROCEEDS equals the Death Benefit less any reduction due to Debt and any
unpaid charges due and after addition of any interest due pursuant to law.
DEBT is the total of any outstanding loan and loan interest.
EXCHANGE POLICY is a Policy purchased as part of an exchange of life insurance
policies that does not incur any current taxation pursuant to Section 1035 of
the Code or any successor provision, and into which the surrender value of one
or more prior policies is contributed to the Policy in conjunction with such
exchange.
EXEMPT PREMIUM is the portion of Premiums paid against which we do not assess
any contingent deferred sales charge upon surrender or withdrawal and the amount
of any loans we establish in conjunction with your purchase of an Exchange
Policy.
FIXED ALLOCATION is an allocation of Account Value to our general account that
is credited a fixed rate of interest.
GUARANTEED MINIMUM DEATH BENEFIT is the minimum amount we guarantee is payable
as a result of the Insured's death, before we assess any unpaid charges due and
any reduction for Debt. However, this benefit does not apply once the Insured
reaches Age 100, or if there are two Insureds, when the younger Insured reaches
Age 100 or would have reached that Age if the younger Insured dies before the
older Insured.
IN WRITING is in a written form, in a manner we accept, that is satisfactory to
us and filed at our Office. We retain the right to specifically agree in advance
to accept communication regarding a specific matter by telephone or by some
other form of electronic transmission, in a manner we prescribe.
INSURED is the person(s) upon whose life coverage is issued and as a result of
whose death the Death Proceeds are payable. If there is more than one Insured,
Insured means the last surviving Insured, unless otherwise stated.
ISSUE DATE is the date we issue your Policy.
LOAN ACCOUNT is where we maintain Account Value as collateral for a loan to you
from us.
MAXIMUM ANNUAL ASSESSABLE PREMIUM is the maximum amount of Premium against which
we will assess any contingent deferred sales charge upon surrender of the
Policy. We do not assess any contingent deferred sales charge upon surrender
against any portion of the Premium you pay that exceeds the maximum amount for
that Policy Year.
MEC is a modified endowment contract as defined in Section 7702A of the Code or
any successor provision thereto. Whether a Policy is a "MEC" or a "non-MEC"
depends on whether the Policy satisfies the "7-pay test", a test outlined in the
Code that compares the amount of premiums paid to the amount of insurance
purchased.
MEC THRESHOLD AMOUNT is the annual level amount of Premium which, if exceeded,
would cause the Policy to become a MEC.
MINIMUM REQUIRED DEATH BENEFIT is the minimum amount due as a result of the
Insured's death pursuant to the applicable test we apply in accordance with the
Code, prior to any reduction for Debt.
MONTHLY PROCESSING DAY/DATE is the Valuation Day each month when we deduct
charges from the Account Value. The first Monthly Processing Date is the Policy
Date. After that, the Monthly Processing Dates generally occur on the same day
of the month as the Policy Date. If the Monthly Processing Date occurs on a day
that is not a Valuation Day, the Monthly Processing Date that month will be the
next Valuation Day.
NET AMOUNT AT RISK is the difference between the Death Benefit and the Account
Value. We use a formula when calculating the Net Amount at Risk as part of
determining the monthly cost of insurance charge.
NET PREMIUM is a Premium less the deduction for premium taxes, "DAC" taxes and
any amount deductible from Premium for an optional additional benefit should you
elect such benefits.
OFFICE is our administrative office: American Skandia Life Assurance
Corporation, P.O. Box 290698, Wethersfield, Connecticut 06129-0698.
OWNER is either an entity or person who may exercise the ownership rights
provided by a Policy. If we issue a certificate representing interests in a
group life insurance policy, the rights, benefits, and requirements of and the
events relating to an Owner, as described in this Prospectus, will be your
rights as participant in such group policy. Unless later changed, Owner refers
to all persons or entities designated as such in your Policy.
POLICY is the insurance contract or certificate we issue as evidence of our
commitment to pay the Death Proceeds upon the death of the Insured.
POLICY ANNIVERSARY is the anniversary of the Policy Date.
POLICY DATE is the effective date of your Policy.
POLICY MONTH is the period from one Monthly Processing Day to the next.
POLICY YEARS are continuous 12-month periods that begin on the Policy Date and
each Policy Anniversary thereafter.
PORTFOLIO is a portfolio of an underlying mutual fund.
PREMIUM is each consideration you give to us for the rights, privileges and
benefits provided by a Policy according to its terms. This includes Premium paid
as of the Policy Date, as shown in the Policy, and any additional consideration
we choose to accept.
SEPARATE ACCOUNT is our separate account to which we allocate assets in relation
to our obligations for benefits based on the variable investment options.
American Skandia Life Assurance Corporation Separate Account F (also referred to
as Separate Account F) is the separate account utilized for the Policy.
SPECIFIED AMOUNT is a measure we use in determining the Death Benefit.
SUB-ACCOUNT is a division of the Separate Account.
UNIT is a measure used to calculate Account Value in a Sub-account.
UNIT PRICE is used for calculating: (a) the number of Units allocated to a
Sub-account; and (b) the value of transactions into or out of a Sub-account or
benefits based on Account Value in a Sub-account. Each Sub-account has its own
Unit Price, which will vary each Valuation Period to reflect the investment
experience of that Sub-account.
VALUATION DAY/DATE is every day the New York Stock Exchange is open for trading
or any other day that the Securities and Exchange Commission requires mutual
funds or unit investment trusts to be valued.
VALUATION PERIOD is the period of time between the close of business of the New
York Stock Exchange on successive Valuation Days.
"we," "us," "our," "American Skandia," or "the Company" means American Skandia
Life Assurance Corporation.
"you" or "your" means the Owner.
<PAGE>
SUMMARY OF COSTS
The following is a summary of the cost of the Policies being offered, or, in the
case of costs that vary from Policy to Policy, a short description of how such
costs are determined. All of these costs are described in more detail within
this Prospectus.
<TABLE>
<CAPTION>
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COST AMOUNT DEDUCTED/ WHEN DEDUCTED
DESCRIPTION OF COST
- ----------------------------------- -------------------------------------------------------------------- ---------------------------
Premium Tax Generally from 0% to 3.5% of Premium From each Premium payment
- ----------------------------------- -------------------------------------------------------------------- ---------------------------
"DAC" Tax 1.15% of Premium From each Premium payment
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<S> <C> <C> <C> <C>
Mortality & Expense Risk Charge Policy Years 1 through 15 Policy Years 16+ Daily
0.90%per year of the value of each 0.25% per year of the value of
Sub-account each Sub-account
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Administration Charge 0.25% per year of the value of each Sub-account Daily
- ----------------------------------- -------------------------------------------------------------------- ---------------------------
Cost of Insurance Charge varies depending on a number of factors, Monthly
including, Age at issue, gender (where permitted),
(See Appendix B for information tobacco usage class and risk class of each (Pro-rata from the variable
on guaranteed cost of insurance Insured. The charge is assessed as an amount per and fixed investment options
rates and Appendix C for $1,000 of Net Amount at Risk plus a $12 monthly in which you maintain Account
information on current cost of fee. The rate per $1,000 of Net Amount at Risk Value)
insurance rates.) generally increases as the Insured(s) age(s).
Current Cost of Insurance rates can be changed
during the life of a Policy, but are subject to
guaranteed maximum charges.
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Sales Charge 0.40% per year of the Account Value Monthly for the 1st 10 Policy
Years
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Issue Age less than 65 Upon Surrender
Yr. 1 - 30%, Yr. 2 - 20%, Yr. 3 - 16%, Yr. 4 - 12%, Yr. 5 - 8%,
Contingent Deferred Sales Charge Yr. 6 - 4%, Yr. 7 - 2%, Yr. 8 and after - 0% (Policy Years 1 through 7)
Issue Age 65 or greater
Yr. 1 - 30%, Yr. 2 - 18%, Yr. 3 - 10%, Yr. 4 - 8%, Yr. 5 - 6%,
Yr. 6 - 4%, Yr. 7 - 2%, Yr. 8 and after - 0%
Contingent Deferred Sales Charges are only assessed against
Assessable Premium. No Contingent Deferred Sales Charge is
assessed against Exempt Premium.
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Transfer Fee $10.00 After the 12th transfer each
Policy Year
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Partial Withdrawal Transaction Fee $25.00 Upon Partial Withdrawal
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</TABLE>
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<TABLE>
<CAPTION>
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Underlying Mutual Fund Portfolio Annual Expenses
(as a percentage of the average net assets of the underlying Portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
Below are the investment management fees, other expenses, and the total annual
expenses for each Portfolio as of December 31, 1999. The total annual expenses
are the sum of the investment management fee, other expenses and any 12b-1 fees.
Each figure is stated as a percentage of the Portfolio's average daily net
assets. For certain of the Portfolios, a portion of the management fee is being
waived and/or other expenses are being partially reimbursed. "N/A" indicates
that no portion of the management fee and/or other expenses is being waived
and/or reimbursed. Any footnotes about expenses appear after the list of all the
Portfolios. Those Portfolios whose name includes the prefix "AST" are portfolios
of American Skandia Trust. The Portfolio information was provided by the
Portfolios and has not been independently verified by us. See the prospectuses
or statements of additional information of the Portfolios for further details.
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Management Other Estimated Total Annual Fee Net
Fees Expenses Distribution Portfolio Waivers Annual
UNDERLYING PORTFOLIO and Service Operating and Fund
(12b-1) Expenses Expense Operating
Fees (1) Reimbursement Expenses
- ---------------------------------------------- --------------- ------------- -------------- ------------- ------------ -------------
American Skandia Trust:
<S> <C> <C> <C> <C> <C> <C>
AST Founders Passport 1.00% 0.29% 0.00% 1.29% N/A 1.29%
AST AIM International Equity 0.87% 0.31% 0.04% 1.22% N/A 1.22%
AST Janus Overseas Growth 1.00% 0.23% 0.02% 1.25% N/A 1.25%
AST American Century International Growth 1.00% 0.50% 0.00% 1.50% N/A 1.50%
AST American Century International Growth II 1.00% 0.26% 0.02% 1.28% N/A 1.28%
AST MFS Global Equity (3) 1.00% 1.11% 0.00% 2.11% 0.36% 1.75%
AST Janus Small-Cap Growth 0.90% 0.18% 0.01% 1.09% N/A 1.09%
AST Kemper Small-Cap Growth 0.95% 0.19% 0.03% 1.17% N/A 1.17%
AST Lord Abbett Small Cap Value 0.95% 0.29% 0.00% 1.24% N/A 1.24%
AST T. Rowe Price Small Company Value 0.90% 0.21% 0.00% 1.11% N/A 1.11%
AST Janus Mid-Cap Growth (4) 1.00% 0.22% 0.04% 1.26% N/A 1.26%
AST Neuberger Berman Mid-Cap Growth 0.90% 0.23% 0.04% 1.17% N/A 1.17%
AST Neuberger Berman Mid-Cap Value 0.90% 0.23% 0.12% 1.25% N/A 1.25%
AST Alger All-Cap Growth(5) 0.95% 0.22% 0.06% 1.23% N/A 1.23%
AST T. Rowe Price Natural Resources 0.90% 0.26% 0.01% 1.17% N/A 1.17%
AST Alliance Growth 0.90% 0.21% 0.00% 1.11% N/A 1.11%
AST MFS Growth (3) 0.90% 0.45% 0.00% 1.35% N/A 1.35%
AST Marsico Capital Growth 0.90% 0.18% 0.04% 1.12% N/A 1.12%
AST JanCap Growth 0.90% 0.14% 0.01% 1.05% 0.04% 1.01%
AST Sanford Bernstein Managed Index 500 0.60% 0.19% 0.00% 0.79% N/A 0.79%
AST Cohen & Steers Realty 1.00% 0.27% 0.02% 1.29% N/A 1.29%
AST American Century Income & Growth 0.75% 0.23% 0.00% 0.98% N/A 0.98%
AST Alliance Growth and Income 0.75% 0.18% 0.08% 1.01% 0.01% 1.00%
AST MFS Growth with Income (3) 0.90% 0.33% 0.00% 1.23% N/A 1.23%
AST INVESCO Equity Income 0.75% 0.18% 0.04% 0.97% N/A 0.97%
AST AIM Balanced 0.74% 0.26% 0.02% 1.02% N/A 1.02%
AST American Century Strategic Balanced 0.85% 0.25% 0.00% 1.10% N/A 1.10%
AST T. Rowe Price Asset Allocation 0.85% 0.22% 0.00% 1.07% N/A 1.07%
AST T. Rowe Price Global Bond 0.80% 0.31% 0.00% 1.11% N/A 1.11%
AST Federated High Yield 0.75% 0.19% 0.00% 0.94% N/A 0.94%
AST PIMCO Total Return Bond 0.65% 0.17% 0.00% 0.82% N/A 0.82%
AST PIMCO Limited Maturity Bond 0.65% 0.21% 0.00% 0.86% N/A 0.86%
AST Money Market 0.50% 0.15% 0.00% 0.65% 0.05% 0.60%
The Alger American Fund:
Growth 0.75% 0.04% N/A 0.79% 0.00% 0.79%
MidCap Growth 0.80% 0.05% N/A 0.85% 0.00% 0.85%
Montgomery Variable Series:
Emerging Markets 1.25% 0.50% N/A 1.75% 0.00% 1.75%
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<TABLE>
<CAPTION>
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Management Other Estimated Total Annual Fee Net
Fees Expenses Distribution Portfolio Waivers Annual
UNDERLYING PORTFOLIO and Service Operating and Fund
(12b-1) Expenses Expense Operating
Fees (1) Reimbursement Expenses
- ---------------------------------------------- --------------- ------------- -------------- ------------- ------------ -------------
INVESCO Variable Investment Funds, Inc.:
<S> <C> <C> <C> <C> <C> <C>
Technology 0.75% 0.78% None 1.53% 0.21% 1.32%
Health Sciences 0.75% 2.11% None 2.86% 1.37% 1.49%
Financial Services 0.75% 1.75% None 2.50% 1.09% 1.41%
Telecommunications 0.75% 0.55% None 1.30% 0.02% 1.28%
Dynamics 0.75% 1.53% None 2.28% 0.99% 1.29%
Evergreen Variable Annuity Trust:
Global Leaders (6) 0.95% 0.25% N/A 1.20% 0.19% 1.01%
Special Equity (6) 1.36% 2.35% N/A 3.71% 2.68% 1.03%
- --------------------------------------------------------------------------------------- --------------- ------------- --------------
</TABLE>
1 American Skandia Trust (the "Trust") adopted a Distribution Plan (the
"Distribution Plan") under Rule 12b-1 of the Investment Company Act of 1940
to permit an affiliate of the Trust's Investment Manager to receive
brokerage commissions in connection with purchases and sales of securities
held by Portfolios of the Trust, and to use these commissions to promote
the sale of shares of such Portfolios. The staff of the Securities and
Exchange Commission takes the position that commission amounts received
under the Distribution Plan should be reflected as distribution expenses of
the Portfolios. The Portfolios would pay the same or comparable commission
amounts irrespective of the Distribution Plan; accordingly, total returns
for the Portfolios are not expected to be adversely affected. The
Distribution Fee estimates are derived from data regarding each Portfolio's
brokerage transactions, and the proportions of such transactions directed
to selling dealers, for the period ended December 31, 1999. However, it is
not possible to determine with accuracy actual amounts that will be
received under the Distribution Plan. Such amounts will vary based upon the
level of a Portfolio's brokerage activity, the proportion of such activity
directed under the Distribution Plan, and other factors.
2 The Investment Manager of American Skandia Trust has agreed to reimburse
and/or waive fees for certain Portfolios until at least October 17, 2000.
The caption "Total Annual Fund Operating Expenses" reflects the Portfolios'
fees and expenses before such waivers and reimbursements, while the caption
"Net Annual Fund Operating Expenses" reflects the effect of such waivers
and reimbursements.
3 These Portfolios commenced operations on October 18, 1999. "Other Expenses"
are based on estimated amounts for the fiscal year ending December 31,
2000.
4 This Portfolio commenced operations on May 1, 2000. "Other Expenses" are
based on estimated amounts for the fiscal year ending December 31, 2000.
5 This Portfolio commenced operations as of December 30, 1999. "Other
Expenses" shown are based on estimated amounts for the fiscal year ending
December 31, 2000.
6 These portfolios commenced operations on September 30, 1999. Expenses have
been estimated based upon current fund contracts.
<PAGE>
DESCRIPTION OF THE OFFERING
This Policy is described using a "question and answer" format that assumes you,
the prospective purchaser, are asking the questions. The paragraphs are numbered
for your convenience.
PURCHASERS
[1] Who should buy this Policy? Life insurance can be bought to meet a
number of needs of individuals or entities, such as corporations or
trusts. Different types of life insurance are designed to address
certain needs more than others. This Policy may be appropriate for a
number of persons or entities, but it may be especially useful for
persons addressing a range of estate planning needs who also may need
access to some or all of the Cash Value to meet supplemental retirement
income needs or for emergency expenses. For estate tax purposes,
purchasers may want to consider placing this type of coverage in a
trust or transferring ownership of the Policy in an effort to remove
the asset from their estate, particularly if, at any point, the
purchaser believes the Cash Value may not be needed as a resource for
other purposes. This Policy may also be useful for persons seeking to
make a sizable donation to a charity or eligible non-profit
organization, where the charity is named both Owner and Beneficiary of
the Policy, and the donor is named as the Insured. You should carefully
evaluate with your financial representative whether this Policy is
right for your specific needs in light of your entire situation and
your personal and financial goals. In particular, you should evaluate
the advantages and disadvantages of replacing any existing life
insurance or annuity coverage with this Policy. If you are seeking
specific tax consequences, you should consult with a competent tax
advisor as to whether and how your goals may best be achieved. These
policies may not be an appropriate investment if purchased within a
retirement plan qualified under the Code. You should consult a
competent tax advisor or financial professional about using these
policies in such plans.
- --------------------------------------------------------------------------------
American Skandia offers several different types of variable life insurance
policies which your financial professional may be authorized to offer to you.
Each of these policies can be structured to address a particular life insurance
need that you may have. The features, benefits and charges may differ to some
degree between each policy we offer. Some of these differences can affect the
amount of your death benefit, the degree to which you can access some of the
policy's Cash Value through loans and withdrawals and the charges that you will
be subject to if you choose to surrender the policy. The compensation that we
pay for sales of these policies may also differ.
- --------------------------------------------------------------------------------
This Policy is available to purchasers with a Specified Amount of $50,000 or
greater. We offer a similar policy to purchasers who have a minimum Specified
Amount of $500,000 under a separate prospectus. The minimum initial Premium
payment also differs between both policies. The contingent deferred sales charge
on this Policy has a shorter duration, than on the other policy, but upon
surrender of the Policy during the initial Policy Years, the amount of the
charge is higher. The contingent deferred sales charge on the other policy has a
longer duration but upon surrender of the Policy during the initial Policy
Years, the amount of the charge is lower. The duration and amount of the
contingent deferred sales charge has an impact on the Cash Value of your Policy.
To the extent that Policy benefits are based on the Cash Value, in particular
the availability of Policy loans, this can be an important factor to consider.
BENEFITS AT THE INSURED'S DEATH
[2] What benefits are due as a result of the Insured's death? The benefits
due as a result of the Insured's death are the Death Proceeds. If there
are joint Insureds, the benefits are due as a result of the death of
the last surviving Insured. The Death Proceeds are based on the Death
Benefit as of the date we receive all our requirements for paying a
death claim and are satisfied that the death claim can be paid. These
requirements include, but are not limited to, receipt of a valid death
certificate and information we need to make payments to all
Beneficiaries.
We determine the Death Proceeds by first subtracting any Debt and any
unpaid charges due from the Death Benefit. We then add any interest
amount required by law. The Death Benefit will not be less than the
Cash Value at any time.
[3] What is the Death Benefit? The Death Benefit is the greatest of the
Basic Death Benefit, the Minimum Required Death Benefit and the
Guaranteed Minimum Death Benefit, each are described in more detail
below. The Death Benefit is determined as of the date we receive due
proof of death.
[4] What is the Basic Death Benefit? Do you offer different Death Benefit
Options? The Basic Death Benefit depends on which of the four (4) Death
Benefit Options you select. The Death Benefit options are Option I
(Level), Option II (Variable), Option III (Return of Premium) and
Option IV (Return of Premium with Interest), as described in the table
below. Your choice of Death Benefit Option will produce a different
Basic Death Benefit calculation as of the Policy Date and in the
future.
<TABLE>
<CAPTION>
--------------------------- ---------------------------------------------------------------------------------------------
Death Benefit Option Basic Death Benefit
--------------------------- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Option I - Specified Amount
LEVEL
--------------------------- ---------------------------------------------------------------------------------------------
Option II - Specified Amount plus the Account Value
VARIABLE
--------------------------- ---------------------------------------------------------------------------------------------
Option III - Specified Amount, plus total Premium paid* less net withdrawals
RETURN OF PREMIUM
--------------------------- ---------------------------------------------------------------------------------------------
Option IV - Specified Amount, plus total Premiums paid* less
RETURN OF PREMIUM net withdrawals with each Premium payment and
WITH withdrawal accumulated at a compound annual interest rate from the date
INTEREST applied until the date of due proof of death. We offer a range of interest rates for the
Policy owner to choose from.
--------------------------- ---------------------------------------------------------------------------------------------
</TABLE>
* With respect to Option III and Option IV, we will only consider
Premiums paid and any annual interest accumulated on Premium (Option IV
only) on or before Age 70. Following Age 70, the Basic Death Benefit
for Options III and IV will be fixed. Total Premiums will not include
Premiums paid for any optional benefits that we may make available.
Special rules also apply for Policies that result from an exchange of
an existing life insurance policy.
[5] What is the Specified Amount? The Specified Amount is a measuring
device we use in determining the Death Benefit before the Insured's Age
100. On your Application, you indicate the Specified Amount you want us
to issue for your Policy. We may issue that amount, or we may offer to
issue a lower Specified Amount if the Insured(s) do(es) not qualify for
the amount you seek under our underwriting rules. The minimum Specified
Amount is currently $50,000 for a single life Policy and $100,000 for a
joint life Policy. The Specified Amount remains level unless you
request an increase or decrease and we agree to such a change. Under
certain circumstances, a partial withdrawal may also reduce the
Specified Amount, as discussed in the section on Partial Withdrawals.
[6] What is the Minimum Required Death Benefit? The Minimum Required Death
Benefit is the minimum amount that must be payable at the Insured's
death, before reduction for any Debt, for the Policy to be treated as
life insurance under the Code. The Minimum Required Death Benefit
changes as the Account Value changes. We determine the Minimum Required
Death Benefit by multiplying the Account Value by factors that vary by
the attained Age, gender (where permitted), tobacco usage class and
risk class of each Insured. The factors will also differ depending on
the applicable test you elect for your Policy to qualify as life
insurance under the Code. When there are joint Insureds, the factors
used to determine the Minimum Required Death Benefit are based on an
actuarial derivation of the factor applicable for each Insured. The
gender and risk class of the Insured does not change, so the only
element that changes the factors and effects the Minimum Required Death
Benefit after the Policy Date is the aging of the Insured, unless the
Insured applies for and we agree to a change in tobacco usage class.
The factors we apply to determine the Minimum Required Death Benefit
are shown in Appendix A.
[7] What is the Guaranteed Minimum Death Benefit? The Guaranteed Minimum
Death Benefit is used to determine the Death Benefit when it is greater
than the Basic Death Benefit, based on the Death Benefit Option you
chose, and the Minimum Required Death Benefit, according to the
applicable test you elect for your Policy to qualify as life insurance
under the Code. There is no Guaranteed Minimum Death Benefit beyond Age
100 of the Insured, or if the policy terminates before the Insured's
death.
The Guaranteed Minimum Death Benefit under the following circumstances
are:
|X| On the Policy Date: the Guaranteed Minimum Death Benefit equals the
initial Premium.
|X| After the Policy Date and until the first Policy Anniversary: the
Guaranteed Minimum Death Benefit is the total of all Premiums paid,
less any partial withdrawals.
|X| After the first Policy Anniversary but before the "target date": (the
Policy Anniversary when the Insured is Age 75), the Guaranteed Minimum
Death Benefit is the higher of the total of all Premiums paid less all
partial withdrawals and the highest "Anniversary Value," which is the
Account Value on any Policy Anniversary less all subsequent partial
withdrawals.
|X| On or after the "target date": the Guaranteed Minimum Death Benefit is
the higher of the total of all Premiums paid less all partial
withdrawals and the highest Anniversary Value as of the "target date,"
less all partial withdrawals after the "target date." If there are two
Insureds, the Guaranteed Minimum Death Benefit ends based on the Age
of the younger Insured, or what would have been the age of the younger
Insured if the younger Insured predeceases the older Insured.
|X| If the Insured is Age 75 or older on the Policy Date: the Guaranteed
Minimum Death Benefit is the total of all Premiums paid less all
partial withdrawals.
|X| If the Policy is issued for two (2) Insureds: the "target date" is
based on the age of the younger Insured, or what would have been the
age of the younger Insured if the younger Insured predeceases the
older Insured. This also applies if, as of the Policy Date, the
younger Insured is younger than Age 75.
[8] Is there any age limit on the Death Benefit? Yes. On a single life
Policy, on or after the Policy Anniversary the Insured attains Age 100,
the Death Benefit equals the Account Value. On a joint life Policy, on
or after the Policy Anniversary the younger Insured, attains or, if
that person is deceased, would have been, Age 100, the Death Benefit
equals the Account Value.
[9] Does choosing between Death Benefit Options affect anything other than
the Death Benefit? Yes. Certain Death Benefit Options may result in
higher monthly charges. Choosing a Death Benefit Option affects the Net
Amount at Risk which can have an impact on the amount you pay in cost
of insurance charges. How these charges work are discussed in more
detail below in the section on "Costs." An increase in charges has a
negative impact on the growth of your Account Value. A decrease in
charges has a positive impact on the growth of your Account Value.
[10] Who chooses which option to use? You choose the option on your
Application for a Policy. If you do not elect a Death Benefit Option on
your Application we will review the Application to determine if our
underwriting requirements are met. However, we will require you to
elect Death Benefit Option I, II, III or IV prior to issuing a Policy.
[11] May I change the Death Benefit Option or the Specified Amount? While
the Insured is alive, you may request to change the Death Benefit
Option or to increase or decrease the Specified Amount to meet changing
needs or goals.
Any change to the Death Benefit Option is subject to our acceptance and
our rules, which include, but are not limited to the following:
|X| Any change must take effect after the first Policy Year.
|X| We only permit one such change per Policy Year.
|X| We must receive the request In Writing at our Office.
|X| We may require satisfactory evidence of insurability for any change
that prospectively increases the Net Amount at Risk or any change to
Death Benefit Option III or IV.
|X| If evidence of insurability is required, we will not accept the
request if the Insured(s) is over our then current maximum age for
issuing a Policy.
|X| We may require you to sign an acknowledgment that you understand the
impact or potential impact of the change on the tax treatment of your
Policy, particularly if the change results or may result in your
Policy becoming a MEC. Changing between Death Benefit Options also may
have an impact on whether a Policy is treated as a MEC. Therefore, you
should consult with a competent tax advisor before requesting a
change.
|X| If we grant any such request, it will take effect on the Monthly
Processing Day occurring on or immediately following the date we agree
to such a change.
|X| On the date the change takes effect, there will be no change in the
Death Benefit. That means that, if you change from Option I to Option
II, the Specified Amount will be reduced.
Any change to the Specified Amount is subject to our rules, which include,
but are not limited to the eight rules outlined above for changing the
Death Benefit Option, plus the following additional rules:
|X| The amount of any increase or decrease may not be less than $5,000.
|X| The Specified Amount after any decrease may not be less than the
minimum Specified Amount for your Policy.
|X| No decrease in the Specified Amount is permitted during the first
seven Policy Years or during the five calendar years subsequent to any
increase in Specified Amount.
[12] What other parts of the Policy are affected if I change the Specified
Amount? Increasing the Specified Amount initially results in a higher
Death Benefit, unless the increased Specified Amount would then not
exceed the Minimum Required Death Benefit or the Guaranteed Minimum
Death Benefit. When the Death Benefit is increased in this way, it
initially increases the Net Amount at Risk, and therefore, the cost of
insurance charge. Decreasing the Specified Amount generally has the
opposite effects. Changing the Specified Amount could affect the
maximum Premiums you may pay, as well as the Maximum Annual Assessable
Premium. Also, if your policy is not deemed to be a MEC, changing the
Specified Amount may affect how much Premium you may subsequently pay
without the Policy becoming a MEC.
[13] How are Death Proceeds paid and to whom are they paid? We pay the Death
Proceeds as a lump sum or in accordance with the terms of whatever
settlement options we then make available to Beneficiaries. Generally,
Beneficiaries can choose a lump sum or one of the settlement options we
make available. However, you may choose the method of payment for your
Beneficiaries if you notify us In Writing before the Insured's death
how you want the Death Proceeds to be paid.
ACCOUNT VALUE AND CASH VALUE
[14] What is the Account Value? The Account Value is the value of a Policy
before any deduction for any contingent deferred sales charge and
before any reduction for any Debt. It is the total of the Account Value
allocated to each Sub-account and any Fixed Allocations plus any
Account Value in the Loan Account. You may allocate Account Value to
the variable investment options, which are each of the Sub-accounts of
the Separate Account, or to Fixed Allocations. Any portion of the
Account Value maintained in the Loan Account serves as collateral for
outstanding Policy loans.
[15] How do we determine the Account Value?
Variable Investment Options: On each Valuation Date, the Account Value
in any variable investment option you utilize equals the number of
Units you then maintain in that investment option multiplied by that
investment option's then current Unit Price. When you allocate all or a
portion of the Premium to an investment option or when you transfer
Account Value into a variable investment option, Units are purchased
using the then current Unit Price. When you take all or a portion of a
distribution or benefit from a variable investment option or you
transfer Account Value from a variable investment option, Units are
sold at the then current Unit Price in order to fund that distribution,
benefit or transfer.
Fixed Allocations: We credit a fixed rate of interest to Fixed
Allocations. From time to time we declare interest rates applicable to
new Fixed Allocations. If you make a Fixed Allocation, we credit the
rate then in effect to that Fixed Allocation until the next Policy
Anniversary. Once that Policy Anniversary is reached, we credit, for
the next Policy Year, the then current rate applicable to new Fixed
Allocations. This applies to all your Fixed Allocations then in effect.
During each subsequent Policy Year, the rate we credit for that Policy
Year is the one then in effect for new Fixed Allocations.
- --------------------------------------------------------------------------------
The Policy offered pursuant to this Prospectus includes Fixed Allocations. These
Fixed Allocations are not registered as a security with the Securities and
Exchange Commission under either the Securities Act of 1933 or the Investment
Company Act of 1940. The Fixed Allocations are not subject to these Acts.
Information about the Fixed Allocations is included in this Prospectus to help
with your understanding of the features of the Policy. The staff of the
Securities and Exchange Commission has not reviewed this information. However,
the information may be subject to certain generally applicable provisions of the
Federal securities laws regarding accuracy and completeness. The assets
supporting Fixed Allocations are held in American Skandia's general account.
- --------------------------------------------------------------------------------
[16] How does American Skandia determine the interest rate for Fixed
Allocations? We determine the interest rate applied to Fixed
Allocations based on our assessment of the earnings we expect to
achieve when investing to support these obligations, our costs,
competition, profit targets and other factors. We have sole discretion
to determine the rates. However, the interest rate will never be less
than 3.0% per year, compounded yearly.
[17] How does American Skandia determine the Account Value in the Loan
Account? We credit interest to Account Value in the Loan Account at a
rate determined by whether the loan is a "preferred" loan or a
"standard" loan, as described in the section entitled "Loans." As of
the date of this Prospectus, we currently credit interest to Account
Value in the Loan Account at the rate of 6.0% per year, compounded
yearly on "preferred" loans and 5.85% per year compounded yearly on
"standard" loans. However, to the extent permitted by law, we retain
the right to credit less, but never less than 5.5% per year, compounded
yearly. See the section entitled "Loans" for a description of standard
and preferred loans.
[18] What is the Cash Value? The Cash Value is the total Account Value less
any contingent deferred sales charge, unpaid charges and Debt.
[19] Do I have to maintain a minimum Cash Value? There must always be enough
Cash Value so that, on any Monthly Processing Date, the Cash Value is
sufficient to pay for the charges then due. If the Cash Value is
insufficient to pay for the charges, we send you a notice giving you a
61-day "grace period" to send us a required amount. If the Cash Value
at the end of the grace period, after deduction for all previously
unpaid charges, is zero or less, the Policy ends without value, unless
you are eligible for the guaranteed continuation. This provision is
discussed in the section "Keeping the Policy In Force".
CASH VALUE CREDITS
[20] What are Cash Value Credits? Cash Value Credits are amounts we credit
to your Account Value based on growth in your Policy's Cash Value OR
based on the total amount of your Premium payments. We determine if
your Policy is eligible for Cash Value Credits on each Policy
Anniversary. Once your Policy qualifies to receive Cash Value Credits,
we will credit 0.50% of your Policy's Cash Value to your Account Value
on each Policy Anniversary thereafter.
[21] How does my Policy qualify for Cash Value Credits? You can qualify for
Cash Value Credits based on your Policy's Cash Value or cumulative
Premiums. To qualify for Cash Value Credits as of any Policy
Anniversary:
|X| the Cash Value of your Policy must equal or exceed 200% (2X) of the
Premiums you have paid as of the Policy Anniversary date you qualify;
or
|X| your Policy must have been in force for seven (7) years and the
cumulative Premiums (minus any Debt) paid prior to the seventh Policy
Anniversary or prior to a later anniversary must equal or exceed the
sum of seven (7) Maximum Annual Assessable Premiums.
NOTE: The Cash Value may be less than the Account Value due to the
contingent deferred sales charge and any Debt, and will be affected by
the investment performance of the investment options, any partial
withdrawals, Debt and whether you pay back any loans or loan interest.
[22] Who pays for the Cash Value Credits, and how are they paid? We pay for
any Cash Value Credits out of our general account. Cash Value Credits
primarily reflect our return of a portion of the fixed annual charges
we deduct from the Separate Account on a daily basis for all Policy
Owners. For Policies that qualify to receive Cash Value Credits, the
Credits are provided as an alternative to lowering the fixed annual
charges.
We allocate any Cash Value Credits due on the applicable Policy
Anniversary to the variable investment options and Fixed Allocations in
which you then maintain Account Value. We make the allocations pro-rata
based on the Account Value in the variable investment options and any
Fixed Allocations on the applicable Policy Anniversary. No allocation
is made to the Loan Account. Cash Value Credits cannot be used to repay
Debt.
COSTS
[23] What kinds of charges are there for this Policy? The Policy has five
(5) different kinds of charges: (1) charges we deduct from Premiums;
(2) charges we assess daily against assets maintained in the Separate
Account, which only apply to the Account Value you allocate to the
variable investment options; (3) charges we deduct monthly from the
Account Value and which are due in all Policy Years to Age 100; (4)
charges we deduct monthly from the Account Value only for the first ten
Policy Years; and (5) "contingent" charges, which are those charges
that you only pay in certain specified circumstances. There also are
fees and expenses charged by the Portfolios.
[24] What charges are deducted from Premiums? We deduct a percentage of each
Premium in relation to state and local premium taxes we may incur on
that Premium, and an amount in relation to our Federal taxes. In most
jurisdictions these rates range for 0% to 3.5% of each Premium. We
deduct these charges before we allocate the net amount to the
investment options.
[25] What is the charge in relation to the Company's Federal taxes? Life
insurance companies are required to capitalize certain acquisition
expenses based on assumptions under Section 848 of the Code. This has
the effect of increasing our current tax liability over what it would
be without this special provision. The tax liability created by the
deferral of these acquisition expenses is referred to as a "deferred
acquisition cost" tax or "DAC" tax. To reimburse us for this special
insurance company tax at a rate we believe to be reasonable in relation
to the liability, we deduct an amount equal to 1.15% of each Premium.
[26] What are the charges assessed against the Separate Account and when are
they paid? We assess a mortality and expense risk charge and an
administration charge against the assets in the Separate Account. The
mortality and expense risk charge is 0.90% per year for Policy Years 1
through 15 and 0.25% for Policy Years 16 and thereafter. The mortality
and expense risk we assume is that charges and fees under the Policy
will be insufficient to meet our long-term costs and expenses in
issuing, administering and paying claims based on our obligations under
the Policy. The charge for the administrative expenses connected with
operating the Separate Account is 0.25% per year. The 0.25% charge for
administrative expenses does not decrease after the 15th Policy Year.
We assess these charges each Valuation Period against the daily value
of each Sub-account. We reserve the right to assess the Separate
Account for any taxes that may be attributed to it. Currently, no such
charge for taxes is assessed.
[27] What monthly charge applies in all Policy Years to Age 100? We deduct
the cost of insurance charge until the Policy Anniversary on or
immediately after the Insured's 100th birthday. For Policies with two
Insureds, this is the Policy Anniversary on or after the 100th birthday
of the younger Insured, or if that person is deceased, what would have
been that Insured's 100th birthday. We take this charge from your
Account Value each Monthly Processing Day.
[28] How much is the cost of insurance charge? The monthly cost of insurance
charge is determined by multiplying the current monthly cost of
insurance rate by the Net Amount at Risk. To that amount we add a cost
of insurance fee, currently $12.00. The current cost of insurance rates
and cost of insurance fee are subject to change; however, the
combination will not exceed the product of the guaranteed maximum cost
of insurance charge multiplied by the Net Amount at Risk. The cost of
insurance charge is not a constant dollar amount.
Please note that in calculating the Net Amount at Risk, the Death
Benefit that would then apply is the highest of the Basic Death Benefit
(which depends on the Death Benefit Option you choose), the Minimum
Required Death Benefit, or the Guaranteed Minimum Death Benefit. The
cost of insurance rates increase as the Insured ages, although the
rates may not increase each Policy Year. We reserve the right to vary
the rates per thousand of Net Amount at Risk based on either the Net
Amount at Risk or on the Specified Amount.
We reserve the right to adjust current monthly cost of insurance rates
by an underwriting factor. As of the date of this Prospectus, we were
not making any such adjustments.
The guaranteed maximum monthly cost of insurance charges for Policies
with one Insured are shown in Appendix B. The current monthly cost of
insurance rates as of the date of this Prospectus for Policies with one
Insured are shown in Appendix D. Corresponding rates for two proposed
Insureds are available from us upon request. A detailed explanation of
how we calculate the current monthly cost of insurance charges and a
sample calculation are provided in Appendix D. The guaranteed maximum
monthly cost of insurance charges shown in Appendix B and the current
monthly cost of insurance rates shown in Appendix C are for Insureds in
the preferred risk class. These amounts will differ for Insureds in a
substandard risk class.
[29] What is the guaranteed maximum cost of insurance charge? The guaranteed
maximum cost of insurance charge is different at each Age. The
guaranteed maximum cost of insurance charge depends on the tobacco
usage class and risk class of each Insured. We base the guaranteed
maximum cost of insurance charges on the sex distinct 1980
Commissioners Standard Ordinary Ultimate Mortality Smoker/Non-Smoker
Table, age last birthday. However, if required by law, unisex charges
will apply, and we will use a unisex variation of that table. If we use
unisex rates, generally cost of insurance charges will increase for
females and will decrease for males. Charges for substandard risk
classes are based on a multiple of the table rates.
[30] What monthly charges apply only for a specified number of Policy Years?
We deduct a sales charge for a specified number of Policy Years.
[31] How much is the sales charge and when do I pay it? We deduct the sales
charge during the first ten (10) Policy Years. It is a percentage of
your Account Value and is the equivalent of 0.40% per year. We deduct
this charge from your Account Value each Monthly Processing Day.
[32] What are the contingent charges? The contingent charges are: (1) the
contingent deferred sales charge; (2) the transfer fee; and (3) the
partial withdrawal transaction fee.
[33] How much is the contingent deferred sales charge, and when must I pay
it? The contingent deferred sales charge is a percentage of the
Assessable Premium paid. It is charged if you surrender the Policy
during certain periods, unless the Policy qualifies for a
medically-related waiver of these charges, as discussed in the section
of this Prospectus entitled "Medically-Related Waiver".
The percentages that we assess against Assessable Premium upon a
surrender are as follows:
<TABLE>
<CAPTION>
-----------------------------------
ISSUE AGE LESS THAN 65
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Policy Year 1 2 3 4 5 6 7 8+
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- ------------
Percentage (%) 30 20 16 12 8 4 2 0
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- ------------
-----------------------------------
ISSUE AGE 65+
-----------------------------------
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- ------------
Policy Year 1 2 3 4 5 6 7 8+
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- ------------
Percentage (%) 30 18 10 8 6 4 2 0
---------------------- ------------ ------------ ------------ ----------- ------------ ------------ ----------- ------------
</TABLE>
[34] How do we determine the Assessable Premium? The Assessable Premium
equals the total Premiums less the total Exempt Premiums.
[35] What are Exempt Premiums? Exempt Premiums are the portion of Premiums
paid in any Policy Year that exceed the Maximum Annual Assessable
Premium. We do not charge a contingent deferred sales charge upon
surrender or withdrawal of Exempt Premiums.
[36] What is the Maximum Annual Assessable Premium? The Maximum Annual
Assessable Premium is an amount per thousand of Specified Amount. The
amount is cumulative from year to year. For example, if your Maximum
Annual Assessable Premium is $5,000 and you make a Premium payment of
$4,000 in Policy Year 1, in Policy Year 2 your Maximum Annual
Assessable Premium is $5,000 plus $1,000 from Policy Year 1, or $6,000.
The Maximum Annual Assessable Premium depends on the Age, tobacco usage
class, risk class and, where permitted, gender of the Insured. The
Maximum Annual Assessable Premium is increased if you increase the
Specified Amount, and is decreased if you decrease the Specified
Amount. We have provided a table in Appendix E of the Maximum Annual
Assessable Premium for Policies with one Insured. The amounts shown in
Appendix E are applicable for Insureds in the preferred risk class. The
Maximum Annual Assessable Premium for Insureds in a substandard risk
class may be higher than for Insureds in a preferred risk class.
[37] What would it cost to surrender the Policy? In each hypothetical
example we assume that neither the Specified Amount nor the Death
Benefit Option is changed after the Policy Date, and that the Insured's
Issue Age is 60.
|X| Assume that the Maximum Annual Assessable Premium is $10,000 and that
$10,000 of Premium was paid in each of Policy Years 1 through 5, for a
total of $50,000. Assume further that the Policy is being surrendered
in Policy Year 6 and that at the time of surrender, the Account Value
is $75,000.
Given these facts, the Assessable Premium equals the Premiums
paid. No amount paid in any Policy Year exceeded the Maximum
Annual Assessable Premium. The contingent deferred sales charge
for a surrender in Policy Year 6 is 4% of the Assessable Premium
(4% of $50,000 or $2,000). The amount payable upon surrender would
be $75,000 less $2,000, which equals $73,000.
|X| Assume that the Policy is an Exchange Policy and that the proceeds of
the exchange were $50,000, which was the initial Premium. Assume
further that the Maximum Annual Assessable Premium is $10,000 and that
$5,000 of subsequent Premium was paid in the second Policy Year.
Assume further that the Policy is being surrendered in Policy Year 6
and that at the time of surrender, the Account Value is $85,000.
Given these facts, the Assessable Premium is less than the
Premiums paid. The amount of Premium paid in the first Policy Year
over $10,000 is Exempt Premium. Since $50,000 was paid in the
first Policy Year, the amount of the Exempt Premium paid in that
Policy Year was $50,000 minus $10,000, or $40,000. There was no
Exempt Premium in the second Policy Year, since $5,000 is less
than the applicable Maximum Annual Assessable Premium for the
second Policy Year. The contingent deferred sales charge for a
surrender in Policy Year 6 is 4% assessed against $55,000 of
Premium less $40,000 of Exempt Premium (4% of $15,000 or $600).
The amount payable upon surrender would be $85,000 less $600,
which is $84,400.
[38] Are there any situations in which the sales charge and the contingent
deferred sales charge do not apply? No sales charge or contingent
deferred sales charge is imposed when, as of the Policy Date, the Owner
or the Insured of a Policy issued pursuant to this Prospectus is: (a)
any parent company, affiliate or subsidiary of ours; (b) an officer,
director, employee, retiree, sales representative, or in the case of an
affiliated broker-dealer, registered representative of such company;
(c) a director, officer or trustee of any underlying mutual fund; (d) a
director, officer or employee of any investment manager, sub-advisor,
transfer agent, custodian, auditing, legal or administrative services
provider that is providing investment management, advisory, transfer
agency, custodianship, auditing, legal and/or administrative services
to an underlying mutual fund or any affiliate of such firm; (e) a
director, officer, employee or registered representative of a
broker-dealer or insurance agency that has a then current selling
agreement with us and/or with American Skandia Marketing, Incorporated;
(f) a director, officer, employee or authorized representative of any
firm providing us or our affiliates with regular legal, actuarial,
auditing, underwriting, claims, administrative, computer support,
marketing, office or other services; (g) the then current spouse of any
such person noted in (b) through (f) above; (h) the parents of such
person noted in (b) through (g) above; (i) such person's child(ren) or
other legal dependent under the age of 21; and (j) the siblings of any
such persons noted in (b) through (h) above.
[39] Do you offer special arrangements for corporate or other purchasers? To
the extent permitted by law, for corporate or other group or sponsored
arrangements purchasing one or more Policies, we may reduce the amount
of the mortality and expense risk charge, sales charge and the
contingent deferred sales charge, the period during which such charges
apply, or both, where the expenses associated with the sale of, or the
underwriting or other administrative costs associated with the Policies
are reduced. Sales, underwriting or other administrative expenses may
be reduced based on such factors as expected economies resulting from a
corporate purchase or a group or sponsored arrangement, the amount of
initial and/or expected Premiums or other transactions where sales
expenses are likely to be reduced. We may also alter the terms of
certain Policy provisions, including the availability of death benefit
options and the Cash Value Credit provision for these types of
purchasers. We will not discriminate unfairly between purchasers if and
when we reduce any of the charges discussed above, make changes to the
duration such charges will apply or alter the terms of Policy
provisions.
[40] How much is the transfer fee and when must I pay it? We charge $10.00
for every transfer after the 12th in each Policy Year. That includes
transfers into a Fixed Allocation and any transfers from a Fixed
Allocation unless the transfer occurs on a Policy Anniversary. It does
not include transfers made as part of any dollar cost averaging program
we offer. For this purpose, all transfers occurring during the same
Valuation Period are considered one transfer. We assess the transfer
fee at the time of any transfer which is subject to the fee.
[41] How much is the partial withdrawal transaction fee, and when must I pay
it? We charge $25.00 as a transaction fee for each partial withdrawal
unless the partial withdrawal qualifies as a medically-related
withdrawal. This amount is deducted separately from your Account Value.
[42] How are charges deducted from Account Value? We deduct charges from
your investment options pro-rata based on the Account Value in each
investment option. If you maintain Account Value in more than one Fixed
Allocation in a Policy Year, any applicable charges will be deducted on
a "last-in, first-out" basis, starting with the last Fixed Allocation
that was made prior to the Monthly Processing Date the deduction is
made. Upon surrender or withdrawal, we assess charges against the
investment options pro-rata in the same ratio as Account Value is being
withdrawn from such investment options.
[43] What charges do the Portfolios make? We do not assess any charges
against the Portfolios. However, each Portfolio charges a total annual
fee comprised of an investment management fee and operating expenses.
More detailed information about fees and charges can be found in the
prospectuses for the Portfolios.
BUYING A POLICY
[44] How do I buy a Policy? We have established certain underwriting
standards to determine insurability. We require you to submit an
Application to provide information that enables us to determine if our
standards have been met. We may require additional information,
including, but not limited to, some of the proposed Insured's medical
records and may also require the proposed Insured to take certain
medical tests. We evaluate this information to determine whether we can
issue a Policy. When we evaluate whether to issue a Policy, we will
also determine whether the proposed Insured is in the tobacco usage
class and/or must be placed in a substandard risk class. If the
proposed Insured meets our standards and we have received a Premium, we
will issue a Policy. When issued, your Policy will indicate if the
Insured is in the tobacco usage class and whether the Insured was
placed in a substandard risk class in order to issue the Policy. If our
standards are not met and we received a Premium, we will return an
amount equal to the Premium to you. No interest will be paid.
Age Restrictions: For Single Life Policies - The Insured may
not be older than Age 80 on the Policy Date.
There is no minimum age limit.
For Joint Life Policies - The Insureds may
not be less than Age 18 or older than Age 80
on the Policy Date.
Additional age restrictions may apply if you
elect Death Benefit Option III or IV.
Tobacco Usage Class: The Insured's tobacco usage class is a factor used
to determine the Specified Amount, the Minimum Required Death Benefit,
the Guaranteed Maximum Monthly Cost of Insurance Charge and the Current
Monthly Cost of Insurance rates. If the Insured was included in the
tobacco usage class on the Policy's Issue Date and subsequently ceases
to be a tobacco user after the first Policy Year, the Insured may apply
for a change in status.
Substandard Risk Class: If the Insured is placed in a substandard risk
class, the factors used to determine the Minimum Required Death
Benefit, the Guaranteed Maximum Monthly Cost of Insurance Charge and
the Current Monthly Cost of Insurance rates under the Policy will be
different than for an Insured in the preferred risk class. For Insureds
in a substandard risk class, the change in these factors will generally
result in a higher monthly cost of insurance charge and may result in a
lower Death Benefit as compared to an Insured in the preferred risk
class. Higher monthly cost of insurance charges will have an impact on
the Account Value and Cash Value of your Policy. NOTE: Where allowed by
law, Policies issued to Insured(s) in a substandard risk class may not
be eligible for certain benefits under the Policy.
To the extent permitted by law, we reserve the right to apply differing
standards of insurability to persons who may be part of a group or who
may qualify, for some other reason, as part of a different class. Such
classes may include, but are not limited to, persons seeking a Policy
who are applying all or a portion of proceeds from an insurance or
annuity contract, or proceeds of a redemption from another financial
product, such as mutual funds. One of the criteria we may apply in such
a situation is that such differing standards of insurability apply only
after maintaining funds in such policy, contract, or financial product
for a specified period of time.
[45] When do I pay the initial Premium? You may submit Premium with the
Application if the Insured meets certain medical underwriting criteria.
If any portion of any Premium is to be received as part of a
replacement of a life insurance policy (whether or not a tax-free
exchange), endowment or annuity policy then we must receive all our
requirements In Writing for all such replacements as of the same date.
This date must be prior to the date we decide to issue a Policy.
Replacements are subject to our acceptance.
If we do not accept Premium with the Application or you choose not to
submit a Premium with the Application, we will notify you if and when
we have accepted the Application and agreed, subject to submission of
the Premium, to issue a Policy. We will let you know at that time the
minimum and maximum amounts we accept as the initial Premium. We will
not issue a Policy until we receive at least the minimum initial
Premium at our Office.
You may choose to use our funds transfer authorization procedures as
part of buying a Policy. If you elect this procedure, you authorize us
to redeem funds from one or more financial institutions with which you
currently maintain funds and use those funds to pay Premium. You must
do so In Writing using a form that authorizes us to obtain such funds
only if and when we have determined that the Application meets our
standards for issuing a Policy. If you use this procedure, you must
provide us with all such authorizations simultaneously.
[46] What is the initial Premium? There is not a fixed amount of initial
Premium. Instead, we accept a range of initial Premium between a
minimum and a maximum. The minimum and maximum depends on the Specified
Amount and the Insured's age, tobacco usage class, risk class and
gender, where permitted, as of the Policy Date.
[47] What is the maximum initial Premium I can pay? The maximum initial
Premium we accept equals the maximum amount that can be paid without
increasing the Death Benefit on the Policy Date. This may depend on the
test you elect for your Policy to qualify as life insurance under the
Code. However, if you submit any Premium before we have determined
whether you meet our requirements for issuing a Policy, we will not
accept more than $500,000 without prior Home Office approval.
[48] What is the minimum initial Premium I can pay? The minimum Premium we
generally accept as an initial Premium is one-fourth (1/4th) of the
Maximum Annual Assessable Premium. We may accept less under certain
circumstances, such as when you authorize periodic withdrawals from an
account you may have with a bank or other financial institution in
amounts designed to cumulatively pay amounts equal to the minimum
Premium requirements. We may require a larger minimum Premium on
Policies issued to Insureds in a substandard risk class.
[49] Will you accept my initial Premium if it causes my Policy to be treated
as a MEC? We will not apply the portion of an initial Premium that we
believe would require us to treat your Policy as a MEC unless you
acknowledge In Writing before the Policy Date that we will treat the
Policy as a MEC. If we do not receive such notification, we will return
to you the difference between the amount you submitted and the amount
we will apply as the initial Premium. However, this will not apply in
the case of an Exchange Policy where we receive information we believe
requires us to treat the Exchange Policy as a MEC in any case.
[50] Do I have coverage while my Application is being reviewed? We may issue
you a temporary insurance agreement during the "underwriting period."
The "underwriting period" is the period between the time you first
apply for a Policy and the time we either issue the Policy or decide
not to issue one. A temporary insurance agreement may be issued if: (a)
the Application is completed in full; (b) the Insured answers "no" to
certain questions on the Application (these are questions we use as
indicators of whether we will issue temporary insurance); (c) no
Insured is under age 18; and (d) a Premium is submitted with the
Application. If we issue a temporary insurance agreement and the
Insured (both Insureds if there are two Insureds) dies during the
underwriting period, the temporary insurance benefit will be payable if
all the conditions of the temporary insurance agreement are satisfied.
If the Insured(s) die(s) during the underwriting period and no
temporary insurance agreement was in effect, no benefit is payable.
We will return any Premium submitted with the Application if we cannot
complete underwriting within 60 days from the date the Application is
signed. If you notify us promptly, we will continue the underwriting
process and notify you if and when you meet our standards for issuing a
Policy, at which time you may once again send us a Premium. Temporary
insurance lasts no longer than 90 days.
[51] What is the temporary insurance benefit? If the Insured dies while
temporary insurance is in effect, we pay the Beneficiary the lesser of
the Death Benefit that would be in effect on the Policy Date if a
Policy had been issued or $250,000. This $250,000 maximum applies to
all temporary insurance then in effect with us. Premium amounts in
excess of this benefit are returned to you, without interest or
earnings.
[52] What happens if I change my mind about buying a Policy? You have a
"free-look" period during which you can change your mind about buying a
Policy. The free-look period is never less than 10 days from the date
you receive your Policy. It may be longer depending on the applicable
state law and the circumstances of your purchase. If you return your
Policy to us within the free-look period, we generally will return the
greater of (1) the Premiums paid, or (2) your Account Value plus an
amount that equals any premium tax and DAC tax deducted and any charges
deducted from your Account Value. However, if you have submitted a
"return waiver," we will return only your Account Value plus any
premium and DAC taxes deducted and any charges deducted from your
Account Value. This may be more or less than the Premiums paid.
[53] How and when is my initial Premium invested? We invest your Net
Premium, which is the Premium less the charges deducted from each
Premium and any charge for optional additional benefits (should you
elect such benefits). We invest the initial Net Premium on the Policy
Date. You can request that we allocate the initial Net Premium using
one or more variable investment options and/or a Fixed Allocation.
However, we initially invest the portion of the initial Net Premium
that you indicate you want invested in variable investment options in
the AST Money Market Sub-account, unless you submit a "return waiver"
In Writing before the Policy Date, where permitted by law. This also
applies to any additional Premium we receive during the "free-look"
period discussed below. A return waiver is an election by you to invest
as soon as possible in the variable investment options of your choice.
If you submit a "return waiver" and then decide to return your Policy
during the "free-look" period, you may receive back less than the
Premium. Generally, we transfer the Account Value in the AST Money
Market Sub-account to the variable investment options you request as of
the Valuation Date which is on or immediately after the 15th day after
the date we issue a Policy. However, we will make the transfer as of a
later date if your "free-look" period is longer than 10 days to meet
state law requirements.
[54] How do I choose how much of this type of life insurance to buy, the
test to qualify as life insurance under, which Death Benefit Option to
use and how much Premium to pay? The Death Benefit Option, Specified
Amount, life insurance test under the Code and the program of Premium
payments that is right for your needs depends on your particular
circumstances and the reasons you are buying a Policy. You and your
financial representative should discuss your needs and financial goals
before applying for a Policy. You cannot change the applicable test
used under your Policy to qualify as life insurance under the Code
after the Policy is issued. However, the Death Benefit Option you
choose and the Specified Amount can be changed, subject to our rules.
VARIABLE INVESTMENT OPTIONS
[55] What are the investment objectives and policies of the variable
investment options? Each variable investment option is a Sub-account of
American Skandia Life Assurance Corporation Variable Account F. Each
Sub-account invests exclusively in one Portfolio. You should carefully
read the prospectus for any Portfolio in which you are interested. The
following chart classifies each of the Portfolios based on our
assessment of their investment style (as of the date of this
Prospectus). The chart also provides a short description of each
Portfolio's investment objective (in italics) and a short, summary
description of their key policies to assist you in determining which
Portfolios may be of interest to you. There is no guarantee that any
underlying mutual fund portfolio will meet its investment objective.
The name of the advisor/sub-advisor for each Portfolio appears next to
the description. Those portfolios whose name includes the prefix "AST"
are portfolios of American Skandia Trust. The investment manager for
AST is American Skandia Investment Services, Inc. ("ASISI"), an
affiliated company. However, a sub-advisor, as noted below, is engaged
to conduct day-to-day investment decisions.
Some of the Portfolios available as Sub-accounts under the Policy are
managed by the same portfolio advisor or sub-advisor as a retail mutual
fund that the Portfolio may have been modeled after at the Portfolio's
inception. Certain retail mutual funds may also have been modeled after
a Portfolio. While the investment objective and policies of the funds
may be substantially similar, the actual investments made by the funds
will differ to varying degrees. Differences in the performance of the
funds can be expected, and in some cases could be substantial. Details
about the investment objectives, policies, risks, costs and management
of the Portfolios are found in the prospectuses for the underlying
mutual funds.
================================================================================
Effective January 19, 2000, the AST Janus Small-Cap Growth portfolio is no
longer offered as a Sub-account under the Policy, except as noted below. Owners
of Policies issued on or before January 18, 2000 with Account Value allocated to
the AST Janus Small-Cap Growth Sub-account will be allowed to allocate Account
Value, make subsequent premium payments or make transfers into the AST Janus
Small-Cap Growth Sub-account. Bank drafting, dollar cost averaging, asset
allocation and/or rebalancing program will be allowed to continue. However, no
changes involving the AST Janus Small-Cap Growth Sub-account may be made to such
programs.
Effective March 1, 2000, the AST Janus Overseas Growth portfolio is no longer
offered as a Sub-account under the Policy, except as noted below. Owners of
Policies issued on or before February 29, 2000 with Account Value allocated to
the AST Janus Overseas Growth Sub-account will be allowed to allocate Account
Value, make subsequent premium payments or make transfers into the AST Janus
Overseas Growth Sub-account. Bank drafting, dollar cost averaging, asset
allocation and rebalancing programs will be allowed to continue. However, no
changes involving the AST Janus Overseas Growth Sub-account may be made to such
programs.
The Portfolios may be offered as a Sub-account to Contract Owners at some future
date; however, at the present time, American Skandia has no intention to do so.
================================================================================
<TABLE>
<CAPTION>
- ------------------------------ ----------------------------------------------------------------------------------------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------------------ ------------------------------------------------------------------------------------------
- ------------------------------ ------------------------------------------------------------------------------------------
<S> <C> <C>
AST Money Market: seeks to maximize current J.P. Morgan Investment Management
CAPITAL income and maintain high levels of liquidity. Inc.
PRESERVATION The Portfolio attempts to accomplish its
objective by maintaining a dollar-weighted
average maturity of not more than 90 days and
by investing in securities which have effective
maturities of not more than 397 days.
- ------------------------------------------------------------------------------------------------------------------------------------
AST PIMCO Limited Maturity Bond: seeks to Pacific Investment Management
SHORT-TERM BOND maximize total return consistent with Company
preservation of capital and prudent investment
management. The Portfolio will invest in a
diversified portfolio of fixed-income
securities of varying maturities. The average
portfolio duration of the Portfolio generally
will vary within a one- to three-year time
frame based on the Sub-advisor's forecast for
interest rates.
- ------------------------------ ----------------------------------------------------------------------------------------------------
AST PIMCO Total Return Bond: seeks to maximize Pacific Investment Management
LONG-TERM total return consistent with preservation of Company
BOND capital and prudent investment management. The
Portfolio will invest in a diversified
portfolio of fixed-income securities of varying
maturities. The average portfolio duration of
the Portfolio generally will vary within a
three- to six-year time frame based on the
Sub-advisor's forecast for interest rates.
- ------------------------------ ----------------------------------------------------------------------------------------------------
AST Federated High Yield: seeks high current Federated Investment Counseling
HIGH YIELD BOND income by investing primarily in a diversified
portfolio of fixed income securities. The
Portfolio will invest at least 65% of its
assets in lower-rated corporate fixed income
securities ("junk bonds"). These fixed income
securities may include preferred stocks,
convertible securities, bonds, debentures,
notes, equipment lease certificates and
equipment trust certificates. A fund that
invests primarily in lower-rated fixed income
securities will be subject to greater risk and
share price fluctuation than a typical fixed
income fund, and may be subject to an amount of
risk that is comparable to or greater than
many equity funds.
- ------------------------------ ----------------------------------------------------------------------------------------------------
GLOBAL BOND AST T. Rowe Price Global Bond: seeks to provide Rowe Price-Fleming International, Inc.
high current income and capital growth by
investing in high-quality foreign and U.S.
government bonds. The Portfolio will invest at
least 65% of its total assets in bonds issued
or guaranteed by the U.S. or foreign
governments or their agencies and by foreign
authorities, provinces and municipalities.
Corporate bonds may also be purchased. The
Sub-advisor bases its investment decisions on
fundamental market factors, currency trends,
and credit quality. The Portfolio generally
invests in countries where the combination of
fixed-income returns and currency exchange
rates appears attractive, or, if the currency
trend is unfavorable, where the Sub-advisor
believes that the currency risk can be
minimized through hedging. The Portfolio may
also invest up to 20% of its assets in the
aggregate in below investment-grade, high-risk
bonds ("junk bonds").
- ------------------------------ ----------------------------------------------------------------------------------------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------------------ ------------------------------------------------------------------------------------------
- ------------------------------ ------------------------------------------------------------------------------------------
ASSET ALLOCATION AST T. Rowe Price Asset Allocation: seeks a T. Rowe Price Associates, Inc.
high level of total return by investing
primarily in a diversified portfolio of fixed
income and equity securities. The Portfolio
normally invests approximately 60% of its total
assets in equity securities and 40% in fixed
income securities. The Sub-advisor concentrates
common stock investments in larger, more
established companies, but the Portfolio may
include small and medium-sized companies with
good growth prospects. The fixed income portion
of the Portfolio will be allocated among
investment grade securities, high yield or
"junk" bonds, foreign high quality debt
securities and cash reserves.
- ------------------------------ ----------------------------------------------------------------------------------------------------
BALANCED AST AIM Balanced: seeks to provide a A I M Capital Management, Inc.
well-diversified portfolio of stocks and bonds
that will produce both capital growth and
current income. The Portfolio attempts to meet
its objective by investing, normally, a minimum
of 30% and a maximum of 70% of its total assets
in equity securities and a minimum of 30% and a
maximum of 70% of its total assets in
non-convertible debt securities. The
Sub-advisor will primarily purchase equity
securities for growth of capital and debt
securities for income purposes.
----------------------------------------------------------------------------------------------------
AST American Century Strategic Balanced: seeks American Century Investment Management, Inc.
capital growth and current income. The
Sub-advisor intends to maintain approximately
60% of the Portfolio's assets in equity
securities and the remainder in bonds and other
fixed income securities. Both the Portfolio's
equity and fixed income investments will
fluctuate in value. The equity securities will
fluctuate depending on the performance of the
companies that issued them, general market and
economic conditions, and investor confidence.
The fixed income investments will be affected
primarily by rising or falling interest rates
and the credit quality of the issuers.
- ------------------------------ ----------------------------------------------------------------------------------------------------
EQUITY INCOME AST INVESCO Equity Income: seeks capital growth INVESCO Funds Group, Inc.
and current income while following sound
investment practices. The Portfolio seeks to
achieve its objective by investing in
securities that are expected to produce
relatively high levels of income and
consistent, stable returns. The Portfolio
normally will invest at least 65% of its assets
in dividend-paying common and preferred stocks
of domestic and foreign issuers. Up to 30% of
the Portfolio's assets may be invested in
equity securities that do not pay regular
dividends.
- ------------------------------ ----------------------------------------------------------------------------------------------------
AST Alliance Growth and Income: seeks long-term Alliance Capital Management L.P.
growth of capital and income while attempting
to avoid excessive fluctuations in market
value. The Portfolio normally will invest in
common stocks (and securities convertible into
common stocks). The Sub-advisor will take a
value-oriented approach, in that it will try to
keep the Portfolio's assets invested in
securities that are selling at reasonable
prices in relation to their value. The stocks
that the Portfolio will normally invest in are
those of seasoned companies that are expected
to show above-average growth and that the
Sub-advisor believes are in sound financial
condition.
---------------------------------------------------------------------------------------------------
AST American Century Income & Growth: seeks American Century Investment Management, Inc.
capital growth with current income as a
secondary objective. The Portfolio invests
primarily in common stocks that offer potential
GROWTH for capital growth, and may, consistent with
its investment objective, invest in stocks that
& offer potential for current income. The
INCOME Sub-advisor utilizes a quantitative management
technique with a goal of building an equity
portfolio that provides better returns than the
S&P 500 Index without taking on significant
additional risk and while attempting to create
a dividend yield that will be greater than the
S&P 500 Index.
----------------------------------------------------------------------------------------------------
AST MFS Growth with Income: seeks reasonable Massachusetts Financial Services Company
current income and long-term capital growth and
income. Under normal market conditions, the
Portfolio invests at least 65% of its total
assets in common stocks and related securities,
such as preferred stocks, convertible
securities and depositary receipts. The stocks
in which the Portfolio invests generally will
pay dividends. While the Portfolio may invest
in companies of any size, the Portfolio
generally focuses on companies with larger
market capitalizations that the Sub-advisor
believes have sustainable growth prospects and
attractive valuations based on current and
expected earnings or cash flow. The Portfolio
may invest up to 20% of its net assets in
foreign securities.
- ------------------------------ ----------------------------------------------------------------------------------------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------------------ ------------------------------------------------------------------------------------------
- ------------------------------ ------------------------------------------------------------------------------------------
REAL ESTATE AST Cohen & Steers Realty: seeks to maximize Cohen & Steers Capital Management,
(REIT) total return through investment in real estate Inc.
securities. The Portfolio pursues its
investment objective by seeking, with
approximately equal emphasis, capital growth
and current income. Under normal circumstances,
the Portfolio will invest substantially all of
its assets in the equity securities of real
estate companies, i.e., a company that derives
at least 50% of its revenues from the
ownership, construction, financing, management
or sale of real estate or that has at least 50%
of its assets in real estate. Real estate
companies may include real estate investment
trusts or REITs.
- ------------------------------ ----------------------------------------------------------------------------------------------------
MANAGED INDEX AST Sanford Bernstein Managed Index 500: seeks Sanford C. Bernstein & Co., Inc.
to outperform the Standard & Poor's 500
Composite Stock Price Index (the "S&P 500(R)")
through stock selection resulting in different
weightings of common stocks relative to the
index. The Portfolio will invest primarily in
the common stocks of companies included in the
S&P 500(R). In seeking to outperform the S&P
500, the Sub-advisor starts with a portfolio of
stocks representative of the holdings of the
index. It then uses a set of fundamental
quantitative criteria that are designed to
indicate whether a particular stock will
predictably perform better or worse than the
S&P 500. Based on these criteria, the
Sub-advisor determines whether the Portfolio
should over-weight, under-weight or hold a
neutral position in the stock relative to the
proportion of the S&P 500 that the stock
represents. In addition, the Sub-advisor also
may determine that based on the quantitative
criteria, certain equity securities that are
not included in the S&P 500 should be held by
the Portfolio.
- ------------------------------ ----------------------------------------------------------------------------------------------------
AST Alliance Growth: seeks long-term capital Alliance Capital Management L.P.
growth. The Portfolio invests at least 85% of
its total assets in the equity securities of a
limited number of large, carefully selected,
high-quality U.S. companies that are judged
likely to achieve superior earnings growth.
Normally, about 40-60 companies will be
represented in the Portfolio, with the 25
companies most highly regarded by the
Sub-advisor usually constituting approximately
70% of the Portfolio's net assets. An emphasis
is placed on identifying companies whose
substantially above average prospective
earnings growth is not fully reflected in
current market valuations.
---------------------------------------------------------------------------------------------------
AST JanCap Growth: seeks growth of capital in a Janus Capital Corporation
manner consistent with the preservation of
capital. Realization of income is not a
significant investment consideration and any
income realized on the Portfolio's investments,
therefore, will be incidental to the
Portfolio's objective. The Portfolio will
pursue its objective by investing primarily in
common stocks of companies that the Sub-advisor
believes are experiencing favorable demand for
their products and services, and which operate
in a favorable competitive and regulatory
environment. The Sub-advisor generally takes a
"bottom up" approach to choosing investments
LARGE CAP for the Portfolio. In other words, the
EQUITY Sub-advisor seeks to identify individual
companies with earnings growth potential that
may not be recognized by the market at large.
----------------------------------------------------------------------------------------------------
AST Marsico Capital Growth: seeks capital Marsico Capital Management, LLC
growth. Income realization is not an investment
objective and any income realized on the
Portfolio's investments, therefore, will be
incidental to the Portfolio's objective. The
Portfolio will pursue its objective by
investing primarily in common stocks of larger,
more established companies. In selecting
investments for the Portfolio, the Sub-advisor
uses an approach that combines "top down"
economic analysis with "bottom up" stock
selection. The "top down" approach identifies
sectors, industries and companies that should
benefit from the trends the Sub-advisor has
observed. The Sub-advisor then looks for
individual companies with earnings growth
potential that may not be recognized by the
market at large. This is called "bottom up"
stock selection.
----------------------------------------------------------------------------------------------------
AST MFS Growth: seeks long-term capital growth Massachusetts Financial Services
and future income. Under normal market Company
conditions, the Portfolio invests at least 80%
of its total assets in common stocks and
related securities, such as preferred stocks,
convertible securities and depositary receipts,
of companies that the Sub-advisor believes
offer better than average prospects for
long-term growth. The Sub-advisor seeks to
purchase securities of companies that it
considers well-run and poised for growth. The
Portfolio may invest up to 35% of its net
assets in foreign securities.
- ------------------------------ ----------------------------------------------------------------------------------------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------------------ ------------------------------------------------------------------------------------------
- ------------------------------ ------------------------------------------------------------------------------------------
LARGE CAP The Alger American Fund - Growth: seeks Fred Alger Management, Inc.
EQUITY long-term capital appreciation. The Portfolio
(Cont.) focuses on growing companies that generally
have broad product lines, markets, financial
resources and depth of management. Under normal
circumstances, the Portfolio invests primarily
in the equity securities of large companies.
The Portfolio considers a large company to have
a market capitalization of $1 billion or
greater.
- ------------------------------ ----------------------------------------------------------------------------------------------------
NATURAL RESOURCES AST T. Rowe Price Natural Resources: seeks T. Rowe Price Associates, Inc.
long-term capital growth primarily through the
common stocks of companies that own or develop
natural resources (such as energy products,
precious metals, and forest products) and other
basic commodities. The Portfolio normally
invests primarily (at least 65% of its total
assets) in the common stocks of natural
resource companies whose earnings and tangible
assets could benefit from accelerating
inflation. The Portfolio looks for companies
that have the ability to expand production, to
maintain superior exploration programs and
production facilities, and the potential to
accumulate new resources.
- ------------------------------ ----------------------------------------------------------------------------------------------------
ALL-CAP AST Alger All-Cap Growth: seeks long-term Fred Alger Management, Inc.
EQUITY capital growth. The Portfolio invests primarily
in equity securities, such as common or
preferred stocks, that are listed on U.S.
exchanges or in the over-the-counter market.
The Portfolio may invest in the equity
securities of companies of all sizes, and may
emphasize either larger or smaller companies at
a given time based on the Sub-advisor's
assessment of particular companies and market
conditions.
- ------------------------------ ----------------------------------------------------------------------------------------------------
AST Janus Mid-Cap Growth: seeks long-term Janus Capital Corporation
capital growth. The Portfolio invests primarily
in common stocks, selected for their growth
potential, and normally invests at least 65% of
its equity assets in medium-sized companies. For
purposes of the Portfolio, medium-sized
companies are those whose market capitalizations
(measured at the time of investment) fall within
the range of companies in the Standard & Poor's
MidCap 400 Index. The Sub-advisor seeks to
identify individual companies with earnings
growth potential that may not be recognized by
the market at large.
----------------------------------------------------------------------------------------------------
AST Neuberger Berman Mid-Cap Growth: seeks Neuberger Berman Management Incorporated
capital growth. The Portfolio primarily invests
in the common stocks of mid-cap companies,
i.e., companies with equity market
capitalizations from $300 million to $10
billion at the time of investment. The
Portfolio is normally managed using a
growth-oriented investment approach. The
Sub-advisor looks for fast-growing companies
that are in new or rapidly evolving industries.
---------------------------------------------------------------------------------------------------
AST Neuberger Berman Mid-Cap Value: seeks Neuberger Berman Management Incorporated
capital growth. The Portfolio primarily invests
in the common stocks of mid-cap companies.
Under the Portfolio's value-oriented investment
approach, the Sub-advisor looks for
well-managed companies whose stock prices are
undervalued and that may rise in price before
other investors realize their worth. Factors
that the Sub-advisor may use to identify these
companies include strong fundamentals,
including a low price-to-earnings ratio,
consistent cash flow, and a sound track record
MID-CAP EQUITY through all phases of the market cycle.
---------------------------------------------------------------------------------------------------
INVESCO Variable Investment Funds - Dynamics: INVESCO Funds Group, Inc.
seeks securities that will increase in value
over the long term. The Portfolio invests in a
variety of securities which are believed to
present opportunities for capital growth -
primarily common stocks of companies traded on
U.S. securities exchanges, as well as
over-the-counter. The Portfolio also may invest
in preferred stocks and debt instruments that
are convertible into common stocks, as well as
in securities of foreign companies. In general,
the Portfolio invests in securities of
companies in industries that are growing
globally and usually avoids stocks of companies
in cyclical, mature or slow-growing industries
or economic sectors. The Portfolio seeks to
invest in stocks of leading companies in
attractive markets or industries, or emerging
leaders that have developed a new competitive
advantage.
- ------------------------------ ----------------------------------------------------------------------------------------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------------------ ----------------------------------------------------------------------------------------------------
- ------------------------------ ----------------------------------------------------------------------------------------------------
MID-CAP EQUITY The Alger American Fund - MidCap Growth: seeks Fred Alger Management, Inc.
(Cont.) long-term capital appreciation. The Portfolio
focuses on midsize companies with promising
growth potential. Under normal circumstances,
the Portfolio invests primarily in the equity
securities of companies having a market
capitalization within the range of companies in
the S&P MidCap 400 Index.
- ------------------------------ ----------------------------------------------------------------------------------------------------
AST Janus Small-Cap Growth: seeks capital Janus Capital Corporation
growth. The Portfolio pursues its objective by
normally investing at least 65% of its total
assets in the common stocks of small-sized
companies, i.e., those that have market
capitalizations of less than $1.5 billion or
annual gross revenues of less than $500
million. As a Portfolio that invests primarily
in smaller or newer issuers, the Portfolio may
be subject to greater risk of loss and share
price fluctuation than funds investing
primarily in larger or more established
issuers.
----------------------------------------------------------------------------------------------------
AST Kemper Small-Cap Growth: seeks maximum Scudder Kemper Investments, Inc.
growth of investors' capital from a portfolio
primarily of growth stocks of smaller
companies. At least 65% of the Portfolio's
total assets normally will be invested in the
equity securities of smaller companies, i.e.,
those having a market capitalization of $1.5
billion or less at the time of investment, many
of which would be in the early stages of their
life cycle. The Portfolio seeks attractive
areas for investment that arise from factors
such as technological advances, new marketing
methods, and changes in the economy and
population. Because of the Portfolio's focus on
the stocks of smaller growth companies,
investment in the Portfolio may involve
substantially greater than average share price
fluctuation and investment risk.
----------------------------------------------------------------------------------------------------
SMALL CAP AST Lord Abbett Small Cap Value: seeks Lord, Abbett & Co.
EQUITY long-term capital appreciation. The Portfolio
will seek its objective through investments
primarily in equity securities that are
believed to be undervalued in the marketplace.
The Portfolio primarily seeks companies that
are small-sized, based on the value of their
outstanding stock. Specifically, under normal
circumstances, at least 65% of the Portfolio's
total assets will be invested in common stocks
issued by smaller, less well-known companies
(with market capitalizations of less than $2
billion) selected on the basis of fundamental
investment analysis. The small capitalization
companies in which the Portfolio primarily
invests may offer significant appreciation
potential. However, smaller companies may carry
more risk than larger companies.
----------------------------------------------------------------------------------------------------
AST T. Rowe Price Small Company Value: seeks to T. Rowe Price Associates, Inc.
provide long-term capital growth by investing
primarily in small-capitalization stocks that
appear to be undervalued. The Portfolio will
normally invest at least 65% of its total
assets in stocks and equity-related securities
of small companies ($1 billion or less in
market capitalization). Reflecting a value
approach to investing, the Portfolio will seek
the stocks of companies whose current stock
prices do not appear to adequately reflect
their underlying value as measured by assets,
earnings, cash flow or business franchises.
Investing in small companies involves greater
risk of loss than is customarily associated
with more established companies.
----------------------------------------------------------------------------------------------------
Evergreen VA Special Equity: seeks capital Meridian Investment Company
growth. The Portfolio strives to provide a
return greater than broad stock market indices
such as the Russell 2000(R)Index by investing
principally in a diversified portfolio of
common stocks of domestic companies. The
Portfolio's investment advisor principally
chooses companies which it expects will
experience growth in earnings and price, and
which have small market capitalizations (under
$1 billion) and medium market capitalizations
(between $1 billion and $5 billion). The
Portfolio may also invest in companies that
have large market capitalizations (over $5
billion).
- ------------------------------ ----------------------------------------------------------------------------------------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------------------ ----------------------------------------------------------------------------------------------------
- ------------------------------ ----------------------------------------------------------------------------------------------------
AST MFS Global Equity: seeks capital growth. Massachusetts Financial Services Company
Under normal market conditions, the Portfolio
invests at least 65% of its total assets in
common stocks and related securities, such as
preferred stock, convertible securities and
depositary receipts, of U.S. and foreign
issuers (including issuers in developing
countries). The Portfolio generally seeks to
purchase securities of companies with
relatively large market capitalizations
relative to the market in which they are
traded.
GLOBAL EQUITY ----------------------------------------------------------------------------------------------------
Evergreen VA Global Leaders: seeks to provide Evergreen Asset Management Corp.
investors with long-term capital growth. The
Portfolio normally invests as least 65% of its
assets in a diversified portfolio of U.S. and
non-U.S. equity securities of companies located
in the world's major industrialized countries.
The Portfolio will invest in no less than three
countries, which may include the U.S., but may
invest more than 25% of its total assets in one
country. The Portfolio invests only in the best
100 companies, which are selected by the
investment advisor based on qualitative and
quantitative criteria such as high return on
equity, consistent earnings growth and
established market presence.
- ------------------------------ ----------------------------------------------------------------------------------------------------
AST AIM International Equity: seeks capital A I M Capital Management, Inc.
growth. The Portfolio seeks to meet its
objective by investing, normally, at least 70%
of its assets in marketable equity securities
of foreign companies that are listed on a
recognized foreign securities exchange or
traded in a foreign over-the-counter market.
The Portfolio will normally invest in a
diversified portfolio that includes companies
from at least four countries outside the United
States, emphasizing countries of Western Europe
and the Pacific Basin.
----------------------------------------------------------------------------------------------------
AST American Century International Growth: American Century Investment Management, Inc.
seeks capital growth. The Portfolio will seek
to achieve its investment objective by
investing primarily in equity securities of
foreign companies that the Sub-advisor believes
will increase in value over time. Under normal
conditions, the Portfolio will invest at least
65% of its assets in equity securities of
issuers from at least three countries outside
of the United States. The Sub-advisor uses a
growth investment strategy it developed that
looks for companies with earnings and revenue
growth. The Sub-advisor will consider a number
of other factors in making investment
selections, including the prospects for
relative economic growth among countries or
regions, economic and political conditions,
expected inflation rates, currency exchange
fluctuations and tax considerations.
----------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY AST American Century International Growth II: American Century Investment Management, Inc.
The investment objective, policies and risks of
the Portfolio are substantially identical to
those of the AST American Century International
Growth Portfolio as described immediately
above.
----------------------------------------------------------------------------------------------------
AST Founders Passport: seeks capital growth. Founders Asset Management LLC
The Portfolio normally invests primarily in
equity securities issued by foreign companies
that have market capitalizations or annual
revenues of $1 billion or less. These
securities may represent companies in both
established and emerging economies throughout
the world. At least 65% of the Portfolio's
total assets normally will be invested in
foreign securities representing a minimum of
three countries. Foreign securities are
generally considered to involve more risk than
those of U.S. companies, and securities of
smaller companies are generally considered to
be riskier than those of larger companies.
----------------------------------------------------------------------------------------------------
AST Janus Overseas Growth: seeks long-term Janus Capital Corporation
growth of capital. The Portfolio pursues its
objective primarily through investments in
common stocks of issuers from at least five
different countries, excluding the United
States. Securities are generally selected
without regard to any defined allocation among
countries, geographic regions or industry
sectors, or other similar selection procedure.
- ----------------------------- -----------------------------------------------------------------------------------------------------
EMERGING MARKETS Montgomery Variable Series - Emerging Markets: Montgomery Asset Management, LLC
seeks capital appreciation, which under normal
conditions it seeks by investing at least 65%
of its total assets in equity securities of
companies in countries having emerging markets.
Under normal conditions, investments are
maintained in at least six emerging market
countries at all times and no more than 25% of
total assets are invested in any one emerging
market country.
- ------------------------------ ----------------------------------------------------------------------------------------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------------------ ----------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Sector funds generally diversify their investments across particular economic
sectors. However, because those investments are limited to a comparatively
narrow segment of the economy, sector funds are generally not as diversified as
most mutual funds. Sector funds tend to be more volatile than other types of
funds. The value of fund shares may go up and down more rapidly than other
funds. Each sector of the economy may also have different regulatory or other
risk factors that can cause greater fluctuations in the share price. Please read
the prospectus for the underlying sector fund for further details about the
risks of the particular sector of the economy.
- ------------------------------ ----------------------------------------------------------------------------------------------------
INVESCO Variable Investment Funds - Financial INVESCO Funds Group, Inc.
Services: seeks capital appreciation. The
Portfolio normally invests at least 80% of its
assets in the equity securities of companies
involved in the financial services sector. This
sector includes, among others, banks (regional
and money-centers), insurance companies (life,
property and casualty, and multiline), and
investment and miscellaneous industries (asset
managers, brokerage firms, and
government-sponsored agencies). The investment
advisor seeks companies which it believes can
grow their revenues and earnings regardless of
the interest rate environment - although
securities prices of financial services
companies generally are interest
rate-sensitive.
SECTOR ----------------------------------------------------------------------------------------------------
INVESCO Variable Investment Funds - Health INVESCO Funds Group, Inc.
Sciences: seeks capital appreciation. The
Portfolio invests at least 80% of its assets in
the equity securities of companies that
develop, produce or distribute products or
services related to health care. These
industries include, but are not limited to,
medical equipment or supplies, pharmaceuticals,
health care facilities, and applied research
and development of new products or services.
The investment advisor attempts to blend
well-established healthcare firms with
faster-growing, more dynamic health care
companies, which have new products or are
increasing their market share of existing
products.
----------------------------------------------------------------------------------------------------
INVESCO Variable Investment Funds - Technology: INVESCO Funds Group, Inc.
seeks capital appreciation. The Portfolio
normally invests at least 80% of its assets in
the equity securities of companies engaged in
technology-related industries. These include,
but are not limited to, communications,
computers, video, electronics, oceanography,
office and factory automation, and robotics. A
core portion of the Portfolio's holdings are
invested in market-leading technology companies
which the investment advisor believes will
maintain or improve their market share
regardless of overall conditions.
----------------------------------------------------------------------------------------------------
INVESCO Variable Investment Funds - INVESCO Funds Group, Inc.
Telecommunications: seeks capital appreciation.
The Portfolio normally invests at least 80% of
its assets in the equity securities of
companies that are primarily engaged in the
design, development, manufacture, distribution,
or sale of communications services and
equipment, and companies that are involved in
developing, constructing, or operating
communications infrastructure projects
throughout the world, or in supplying equipment
or services to such companies. The
telecommunications sector includes companies
that offer telephone services, wireless
communications, satellite communications,
television and movie programming and
broadcasting. Normally, the Portfolio will
invest at least 65% of its assets in companies
located in at least three different countries,
although U.S. issuers will often dominate the
holdings.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
"Standard & Poor's(R)," "S&P(R)," "S&P 500(R)," "Standard & Poor's 500," and
"500" are trademarks of the McGraw-Hill Companies, Inc. and have been licensed
for use by American Skandia Investment Services, Incorporated and Sanford
Bernstein. The Portfolio is not sponsored, endorsed, sold or promoted by
Standard & Poor's and Standard & Poor's makes no representation regarding the
advisability of investing in the Portfolio.
<PAGE>
ADDITIONAL PREMIUMS
[56] When may I contribute additional Premiums and how much may I pay? You
may send us additional Premiums at any time before the Insured's Age
100 and while the Insured is alive unless the amount you have paid
to-date equals the then current maximum we permit. The amount of
additional Premiums you may make may be limited by the test you elect
for your Policy to qualify as life insurance. The amount you may pay is
flexible within the limits discussed below.
[57] When do you allocate additional Premiums? We allocate Net Premium
resulting from an additional Premium payment to the investment options
as of the Valuation Period we receive that Premium at our Office.
[58] How do you allocate additional Premiums among the investment options?
We allocate Net Premiums resulting from additional Premium payments
according to your most recent instructions to us. If you are
participating in any allocation programs we agree to support, such as
any program of periodic rebalancing of your Account Value among various
investment options, we will allocate additional Premiums in accordance
with such a program unless we receive alternate instructions.
[59] What is the most I may pay in total while I own a Policy? The maximum
you may pay changes. At any particular time, it is the amount which, at
that time, would not cause the Death Benefit to increase by more than
the amount of the Premium. We reserve the right to require new evidence
satisfactory to us that the Insured meets our underwriting standards
before we agree to accept such Premium. The amount of additional
Premiums you may make may be limited by the test you elect for your
Policy to qualify as life insurance.
[60] What is the least amount I may pay at any one time? Unless you must
make a payment to keep the Policy in force, as discussed below, the
minimum amount we accept as an additional Premium depends on whether
you have arranged to make periodic withdrawals from a bank or other
financial institution ($100), or whether you make additional Premium
payments directly ($500).
[61] Will you accept an additional Premium if it causes my Policy to be
treated as a MEC? We will not apply the portion of any Premium that we
believe would require us to treat your Policy as a MEC if it was not
previously a MEC. However, if you provide us with a notice In Writing
that you understand that the additional Premium will require us to
treat your Policy as a MEC, we will accept the Premium. If you do not
give us such notice, we will return the difference between the amount
you submitted and any amount we apply as a Premium.
KEEPING THE POLICY IN FORCE
[62] What is the least amount I must pay to keep the Policy in force? We
cannot know in advance any minimum amount that will be required to keep
the Policy from ending without value. This is because: (1) the charges
we deduct each month are based on your Account Value, which may
increase or decrease due to the performance of the investment options;
(2) we retain the right to decrease or increase the current cost of
insurance rates, subject to the guaranteed maximums in the Policy; and
(3) you may request and we may agree to a change in the Death Benefit
Option and/or the Specified Amount. If, on any Monthly Processing Day,
your Cash Value is insufficient to pay the current deductions, a 61-day
"grace period" begins. If you enter the grace period, we will send you
a notice of how much you have to pay before the end of the grace period
to keep the Policy in force. You may also qualify for the guaranteed
continuation provision, discussed below.
[63] Can the Policy end because of poor investment performance? The Policy
could enter the grace period because of poor investment performance
combined with the deduction of the Policy's fees and charges. If that
were to occur and, by the end of the grace period, there was not enough
Cash Value to deduct the unpaid charges, the Policy would end, unless
you qualify for the guaranteed continuation provision.
[64] What is the guaranteed continuation provision? During the first ten
Policy Years or until the Insured reaches Age 80, whichever is earlier,
you may qualify for a guaranteed continuation provision if the
cumulative amount of Premium you have paid, less any withdrawals and
any Debt, is not less than a specified minimum for each Policy Month
times the number of Policy Months since the Policy Date. We call the
specified minimum for each Policy Month the "monthly continuation
amount". Your Policy must meet this cumulative Premium test each Policy
Month to qualify under this provision. If you qualify for continuation
under this provision, we guarantee that your Policy will not enter into
a grace period until the earlier of the 10th Policy Anniversary or the
Insured's Age 80. However, the Death Benefit in effect during the
period that the guaranteed continuation provision applies will be fixed
as shown in the Policy. NOTE: Where allowed by law, Policies issued to
an Insured(s) in a substandard risk class may not be eligible for the
guaranteed continuation provision.
For example, if the monthly continuation amount is $500 and your Policy
was in its 20th Policy Month, the sum of the monthly continuation
amounts would be $10,000. Therefore, for purposes of this example, the
guaranteed continuation provision would apply in the 20th Policy Month
if you had paid at least $10,000 to that point, and would apply in the
21st Policy Month if you had paid at least $10,500 up to the 21st
Policy Month, assuming there is no Debt. We adjust the monthly
continuation amount going forward after any increase or decrease to the
Specified Amount in the first 10 Policy Years.
TRANSFERS AND ALLOCATION SERVICES
[65] May I transfer Account Value between investment options? You may
transfer Account Value between investment options, but there are
limits, as well as potential charges, which are discussed above in the
question "How much is the transfer fee, and when must I pay it?" We
permit the agent of record to make transfers on your behalf unless you
give us other instructions.
[66] Are there any limits on transfers? No transfers are permitted when the
Policy is in its "grace period." In order to maintain Account Value in
an investment option after transferring a portion of your Account Value
out of that investment option, we reserve the right to require that
there be at least $500.00 in such investment option after the transfer.
If, as a result of the transfer, there would be less than $500.00 in an
investment option, we reserve the right to transfer the remaining
Account Value pro rata to the investment option(s) that you were
transferring to. We retain the right to impose a limit of not more than
12 transfers per Policy Year, including transfers involving Fixed
Allocations. Unless such a limit is in effect, there is no limit on the
number of transfers that only involve variable investment options, or
the number of transfers from variable investment options to make Fixed
Allocations. However, we do limit each transfer from Fixed Allocations
that are to be effective on any day other than a Policy Anniversary to
the greater of 25% of the Account Value in your Fixed Allocations or
$1,000. If you make such a transfer from your Fixed Allocations, you
cannot make another such transfer until either 90 days has passed or
the next Policy Anniversary occurs. We also retain the right to refuse
or limit transfers, either for one Owner or a group of Owners, if we
believe there may be adverse consequences for other Owners.
[67] What are 'allocation services'? Allocation services are programs that
automatically transfer Account Value between investment options. We may
waive or reduce the minimum amounts required for transfers noted above
when your Policy is participating in certain allocation programs,
including, but not limited to, static rebalancing programs. However,
any limitations on transfers from Fixed Allocations also apply if any
allocation services are being utilized.
[68] What allocation services does American Skandia provide? We support
dollar cost averaging and static rebalancing. Dollar cost averaging
allows you to systematically transfer an amount periodically from one
investment option to one or more other investment options. With static
rebalancing, you choose allocation percentages for the Sub-accounts
into which you allocate Account Value. However, over time the
performance of the variable investment options will differ, causing
your percentage allocations to shift. Periodically, we will "rebalance"
your allocations by transferring the appropriate amount from the
"overweighted" Sub-accounts to the "underweighted" Sub-accounts to
return your allocations to the percentages you request. We do not
currently make a charge for supporting dollar cost averaging or static
rebalancing.
LOANS
[69] When can I take a loan? We offer loans using Account Value as
collateral. Where permitted by law, we reserve the right to limit the
number of loans in each Policy Year. The Insured must be alive when you
take a loan (if there are two Insureds, at least one must be alive when
a loan is taken). Subject to our rules, on the Policy Date we will
establish a loan equal to the outstanding indebtedness on previous life
insurance exchanged for a Policy.
[70] Is this type of loan tax-free? We do not treat loans as a distribution
and therefore do not report any taxable income unless we believe your
Policy should be treated as a MEC. The actual treatment of the loan
will depend on your particular circumstances.
[71] How much is available for a loan? The maximum amount available as a
loan is equal to 90% of your current Cash Value. The minimum amount you
may borrow is $1,000.
[72] What happens to the Account Value if I take a loan? When you take a
loan, we transfer Account Value equal to the amount of the loan into
the Loan Account. Account Value in the Loan Account is maintained in
our general account. Unless you give us different instructions, we move
Account Value from the variable investment options and the Fixed
Allocations in the same proportion as your Account Value in the
investment options on the Valuation Date we move such Account Value.
The impact of a loan on your Account Value may be positive or negative.
At the time a loan is taken, there is no impact. However, if the
interest rate credited to Account Value in the Loan Account is greater
than what would be earned in the investment options, the loan will have
a positive impact on your Account Value. If the interest rate credited
to Account Value in the Loan Account is less than what would be earned
in the investment options, the loan will have a negative impact on your
Account Value. Because a loan can impact the Account Value, it may also
have an impact on the Minimum Required Death Benefit and, possibly, the
Death Benefit.
[73] What are "preferred loans" and "standard loans"? We determine what
portion of a loan is a "preferred loan" and what portion is a "standard
loan" at the time you take the loan. Whether a loan is "preferred" or
"standard" depends on the amount of the loan relative to your Policy's
Cash Value. Loans of 25% or less of the Policy's Cash Value are treated
as "preferred" loans. Loans of greater then 25% of the Policy's Cash
Value are treated as "standard" loans. We determine whether your loan
should be treated as "preferred" or "standard" at the time it is made
based on the cumulative amount of outstanding loans at that time. A
loan retains its character as "preferred" or "standard" until it is
repaid.
[74] What is the interest rate charged on loans? We charge interest on
"preferred" and "standard" loans at the rate of 6.0% per year,
compounded yearly, in arrears. Each Policy Anniversary that the loan is
not repaid, we add an amount equal to any unpaid interest to your Debt.
[75] Does Account Value in the Loan Account earn interest? We currently
credit interest to Account Value in the Loan Account on "preferred"
loans at the rate of 6.0% per year, compounded yearly. We currently
credit interest to Account Value in the Loan Account on "standard"
loans at the rate of 5.85% per year, compounded yearly. However, with
respect to "preferred" and "standard" loans, to the extent permitted by
law, we retain the right to credit less, but never less than 5.5% per
year, compounded yearly.
[76] Once a loan is taken, does American Skandia ever require more
'collateral' in the Loan Account? Yes. The Loan Account acts as
collateral for any loans from us. We monitor the Debt and the Account
Value in the Loan Account to assure that they are equal to each other.
Therefore, on each Policy Anniversary we equalize the Debt and the
Account Value in the Loan Account. If the Debt is larger due to
outstanding loan interest, we transfer Account Value equal to the
difference pro-rata from the investment options and add it to the Loan
Account.
We also match up the Debt and the Loan Account when you repay any
portion of the Debt. If the Account Value in the Loan Account then
exceeds the Debt, we transfer the excess pro-rata to the investment
options which you are utilizing at that time. Any amount then allocated
to the fixed option will be treated as a separate Fixed Allocation.
[77] Do I have to repay the loan? What happens at the Insured's death if I
have not repaid the loan? You are not required to repay the loan while
the Insured is alive. If there is any outstanding Debt when Death
Proceeds are due, we subtract the Debt from the Death Benefit as part
of the calculation of the Death Proceeds.
[78] What happens if I repay any portion of the loan? The amount of Debt is
reduced by the amount of any loan repayment. Loan repayments are used
to repay "standard" loans first and "preferred" loans only after all
outstanding "standard" loans have been repaid. Loan repayments reduce
the amount of principal and loan interest proportionately based on the
ratio between principal and loan interest as of the Valuation Date the
loan repayment is applied. We allocate any loan repayment to the
variable investment and fixed options pro-rata based on the Account
Value in each investment option as of the Valuation Period we receive
your loan repayment. Any amount then allocated to the fixed option will
be treated as a separate Fixed Allocation.
[79] May I borrow from the Policy to make Premium payments? No. We will not
accept instructions to borrow from your Policy and use the loan to make
Premium payments.
[80] If I have an outstanding loan and send in money, do you use it to repay
the loan or do you consider it a Premium payment? We treat such funds
as Premium or loan repayment in accordance with your instructions, to
the extent such instructions comply with limitations such as the then
applicable maximum Premium for the Policy. If you send us funds and do
not specify whether the money is to be used as a Premium or to repay a
loan, we treat the money as a Premium payment to the extent such amount
does not exceed the maximum Premium then allowed. We will return to you
any amount that exceeds the maximum Premium then allowed.
PARTIAL WITHDRAWALS
[81] When can I make a partial withdrawal? The Policy has a limited amount
of liquidity during the first ten (10) years. During that period, you
can only make withdrawals under certain medically-related circumstances
or from premium amounts made in excess of certain limits. We allow
partial withdrawals while the Insured is alive up to a maximum of 90%
of the Cash Value, subject to the following limitations:
|X| In the first ten Policy Years, we permit a partial withdrawal if such
a withdrawal meets the requirements for a medically-related waiver, as
described in the section "Medically Related Waiver".
|X| After the tenth Policy Year, you may take up to the maximum partial
withdrawal amount as discussed below.
|X| At any time, you may withdraw amounts that cumulatively do not exceed
the total of any Exempt Premiums less the Exempt Premiums previously
withdrawn.
|X| You may not make a partial withdrawal of less than $1,000 and the Cash
Value subsequent to a partial withdrawal must be at least $1,000.
[82] What happens to the Account Value if I take a partial withdrawal? When
you take a partial withdrawal, we reduce your Account Value by an
amount equal to the amount of the partial withdrawal. Unless you give
us different instructions, we take Account Value from the variable
investment options and the Fixed Allocations in the same proportion as
your Account Value in the investment options on the Valuation Date we
take such Account Value. If you have multiple Fixed Allocations,
amounts are taken on a "last in, first out" basis. Any Account Value in
the Loan Account is not available for a partial withdrawal.
[83] Is there a charge for a partial withdrawal? We charge a $25.00
transaction fee on any partial withdrawal.
[84] Does a partial withdrawal affect the Death Benefit? A partial
withdrawal will have an immediate impact on the Death Benefit. A
partial withdrawal always reduces the Minimum Required Death Benefit,
because the Minimum Required Death Benefit is based on the Account
Value. A partial withdrawal also results in a reduction to the
Guaranteed Minimum Death Benefit. If you are using Death Benefit Option
I, III or IV, the Basic Death Benefit is reduced by the lesser of: (1)
the amount of the partial withdrawal, including the amount of the
transaction fee; or (2) the extent required such that, immediately
after such reduction, the Specified Amount equals the higher of the
recalculated Minimum Required Death Benefit and the recalculated
Guaranteed Minimum Death Benefit. If you are using Death Benefit Option
II, the Specified Amount is not reduced by a partial withdrawal.
If a partial withdrawal occurs on or after Age 100, it reduces the
Death Benefit by the exact amount of the partial withdrawal plus the
partial withdrawal transaction fee, because on or after that Age the
Death Benefit equals the Account Value.
SURRENDERS
[85] When can I surrender my Policy? You can surrender your Policy after the
end of the free-look period as long as the Insured is alive.
[86] What is paid out when a Policy is surrendered? If you surrender the
Policy, we will pay you the Cash Value.
ACCELERATED DEATH BENEFIT
[87] What is an accelerated death benefit? An accelerated death benefit is
pre-payment to the Owner of a portion of the Death Proceeds. The
maximum we will pay, before any reductions, is the lesser of 50% of the
Death Benefit or $250,000. The actual amount is reduced by a 12-month
interest rate discount (currently 6.0%) and a pro-rata portion of any
Debt, based on the ratio by which the Death Benefit is reduced as a
result of the payment of the accelerated death benefit. We reserve the
right to change the interest rate discount percentage.
[88] When will American Skandia make such a payment? We will make such a
payment one time, where allowed by law, based on the Owner's request.
The Insured may not request such a payment unless the Insured is also
the Owner. We only make the payment if we receive all our requirements.
Our requirements include, but are not limited to, proof satisfactory to
us In Writing that the Insured (the last surviving Insured if there are
two Insureds) became terminally ill, as defined in your Policy: (a) at
least 30 days after the Issue Date; or (b) as a result of an accident
that occurred after the Issue Date. To the extent permitted by law, we
will change our procedures in relation to this benefit or the
definition of terminally ill or any other applicable term in order to
maintain the tax-free status of any amounts paid out under this
provision.
[89] What happens to the remaining benefits if American Skandia makes such a
payment? If we make such a payment, we first reduce the Policy's
benefits and any Debt proportionately. For example, if the Death
Benefit before such a payment is $200,000 and we make an accelerated
Death Benefit payment of $50,000, we reduce the Death Benefit by the
ratio of the payment to the then current Death Benefit, which in this
case is by 25%, to $150,000. We also reduce the Maximum Annual
Assessable Premium. You should consult a tax advisor on the tax
consequences of such a payment. Please refer to Appendix F for a
hypothetical illustration of the accelerated death benefit provision.
MEDICALLY-RELATED WAIVER
[90] What is a medically-related waiver? A medically-related waiver is a
waiver of the contingent deferred sales charge that would otherwise
apply to a surrender. A medically-related waiver also is the only
context in which we permit a partial withdrawal in the first ten Policy
Years of amounts other than Exempt Premium. No contingent deferred
sales charge or partial withdrawal transaction fee applies to such a
partial withdrawal. A medically-related waiver is available by rider to
the Policy and is currently at no charge to you.
[91] When would American Skandia waive the contingent deferred sales charge?
We will waive the contingent deferred sales charge, where allowed by
law, if you provide us with all of our requirements. Our requirements
include, but are not limited to, proof satisfactory to us In Writing
that the Insured (the last surviving Insured if there is more than one
Insured) has continuously been confined to a long term care facility,
such as a nursing home or a hospital, as defined in the rider, for at
least a specified amount of time, and that such confinement started
after the Issue Date.
[92] Are there any restrictions on medically-related waivers? We will only
consider providing this benefit on amounts up to $500,000. The $500,000
maximum will apply regardless of when taken, on any life insurance
policy or annuity contract issued by American Skandia where the Insured
under this Policy is named as the Insured, Owner or Annuitant under the
other policy or contract. However, once we have approved a
medically-related waiver, should you choose to only take a partial
withdrawal, the waiver will apply to any subsequent withdrawals or
surrender, subject to the $500,000 cumulative limit. NOTE: Where
allowed by law, Policies issued to an Insured(s) in a substandard risk
class may not be eligible for a medically-related waiver.
[93] What happens to the remaining benefits if American Skandia makes such a
payment in connection with a partial withdrawal? A partial withdrawal
during the first ten Policy Years for which we grant a
medically-related waiver has the same impact on the remaining benefits
that results from any other partial withdrawal. You should consult a
tax advisor on the tax consequences of such a payment.
RISKS
[94] What are the risks, and who takes the risks? We bear the risk that, for
all the Policies we issue, when considered together, our expenses
exceed our charges, including the expense of providing the difference
at death between the Account Value and the Death Benefit. We also bear
the investment and reinvestment risk in providing interest crediting
guarantees to Fixed Allocations and to the Loan Account, as well as for
any settlement options that assume a fixed rate of return. We also bear
the risk of having to waive monthly charges we would otherwise deduct
under the guaranteed continuation provision. You bear the investment
risk when allocating Account Value to any variable investment option,
since that will affect the amount available for any loans, partial
withdrawals or surrender. You bear a liquidity risk because you may not
make partial withdrawals except under limited circumstances and in
limited amounts during the first ten (10) Policy Years, although
amounts are available as loans. Any irrevocable beneficiary bears the
risk as to the Death Proceeds, which may be affected by investment
performance of the investment options, the age at which the Insured
dies (if at such time the amount paid is based on the Minimum Required
Death Benefit), any loan or withdrawal activity by the Owner prior to
the Insured's death or payment of an accelerated death benefit.
OTHER RIGHTS
[95] Do I have any other rights if I buy a Policy? There are certain other
ownership rights you may exercise under a Policy. You may name one or
more Beneficiaries. You may make that designation "irrevocable," which
means it cannot be changed. If you do not designate the Beneficiary as
irrevocable, you retain the right to change the Beneficiary before the
Insured dies. However, all Beneficiary designations are subject to our
acceptance, to the extent permitted by law. You also may transfer,
pledge or assign your Policy, which may trigger a currently taxable
event. You should only transfer, pledge or assign your Policy after
consulting with a competent tax advisor. You may exercise voting rights
in relation to the applicable Portfolios. Some of these rights may be
limited depending on the usage of your Policy, especially if we permit
it to be held in connection with certain retirement plans designed to
be "qualified" plans under the Code.
THE INSURANCE COMPANY
[96] Who is American Skandia? American Skandia Life Assurance Corporation is
organized as a stock insurance company domiciled in Connecticut. The
predecessor company of American Skandia was originally incorporated on
May 21, 1969. We are licensed as a life insurer in all 50 states and
the District of Columbia. We are a wholly owned subsidiary of American
Skandia, Inc. (formerly American Skandia Investment Holding
Corporation), whose indirect parent is Skandia Insurance Company Ltd.
Skandia Insurance Company Ltd. is part of a group of companies whose
predecessor began operations in 1855. Two of our affiliates, American
Skandia Marketing, Incorporated, and American Skandia Information
Services and Technology Corporation, may provide certain administrative
functions for us. We may also engage various independent firms to
provide various administrative functions for us. Another affiliate,
American Skandia Investment Services, Incorporated, currently acts as
the investment manager to American Skandia Trust, one of the underlying
mutual funds whose Portfolios are available as variable investment
options. We currently engage Skandia Investment Management, Inc., an
affiliate whose indirect parent is Skandia Insurance Company Ltd., as
investment manager for our general account. We are under no obligation
to engage or continue to engage any investment manager.
THE SEPARATE ACCOUNT
[97] What supports American Skandia's obligation to me if I buy a Policy?
The benefits provided by the Policy are our obligations. The assets
supporting our obligations equaling the Account Value allocated to the
variable investment options are held in our Separate Account F. We
maintain assets in our general account to support our obligations: (1)
equal to the Account Value allocated to the fixed option; (2) equal to
the Account Value in the Loan Account; (3) for any settlement option;
and (4) for any other obligation we may have in relation to a Policy.
The Separate Account was established under the laws of Connecticut.
Assets in the Separate Account may support obligations created in
relation to the Policies described in this Prospectus or other policies
we offer. We are the legal owner of the assets in the Separate Account.
Income, gains and losses, whether or not realized, are credited or
charged to the Separate Account according to the terms of the Policies
and any other policies supported by the assets in the Separate Account
without regard to our other income, gains or losses or to the income,
gains or losses in any other of our separate accounts. We will maintain
assets in the Separate Account with a total market value at least equal
to the reserves and other liabilities we must maintain in relation to
the life insurance policies supported by such assets. These assets may
only be charged with liabilities that arise from such life insurance
policies.
Separate Account F is registered with the U.S. Securities and Exchange
Commission (the "SEC") under the Investment Company Act of 1940 as a
unit investment trust, which is a type of investment company. This does
not involve any supervision by the SEC of the investment policies,
management or practices of the Separate Account or of us. The Separate
Account meets the definition of "separate account" under the federal
securities law.
The only Sub-accounts available to you are those offered in this
Prospectus. These Sub-accounts are available as investment options for
other policies we offer. Sub-accounts are permitted to invest in
Portfolios we consider suitable. The Portfolios in which the
Sub-accounts invest are available to Sub-accounts of other separate
accounts, including separate accounts we use in relation to a number of
variable annuities. Separate accounts of other insurers and of various
qualified retirement plans may also invest in the Portfolios.
TAXES
[98] What are the taxes associated with the Policy? The following are some
brief summary answers to questions about Federal income taxes. Federal
and state tax laws, as well as the interpretations of those laws,
change. In addition, we do not know your particular circumstances,
which is one of a number of reasons we cannot give you tax advice. You
should consult a professional tax advisor for tax advice for your
particular situation. You should also be sure to read the "Additional
Tax Considerations" section appearing later in this Prospectus, which
includes, but is not limited to, information regarding estate taxes.
[99] Will my Beneficiary pay taxes on the Death Proceeds? Under most
circumstances, the Beneficiary does not pay any income tax on the Death
Proceeds.
[100] Is gain in the Policy taxed every year? Generally, any gain in the
Policy is not taxed currently. However, the treatment of gain when a
MEC is assigned is discussed below.
[101] How are amounts that I receive before the Insured's death taxed? If
your Policy is not being treated as a MEC, amounts you receive as a
partial withdrawal or if you surrender the Policy are deemed for income
tax purposes to come first from your basis in the Policy. That means
you may withdraw your basis before you are considered to have withdrawn
any gain. Any gain withdrawn is taxed as ordinary income. Under most
circumstances, taking a loan does not result in any income tax
consequences.
[102] Under what circumstances might the Policy or any amounts taken out be
treated differently for income tax purposes? The tax treatment of any
life insurance policy and any distribution while the Insured is alive
will be different if the policy is deemed: (1) not to qualify as life
insurance under the Code; or (2) to be a MEC. The Code defines life
insurance in such a way as to limit the amount of money that can be put
into a life insurance policy and receive the tax preferences provided
for life insurance. We expect to administer the Policies such that the
death benefits will always receive the treatment accorded life
insurance death benefits under the Code. However, the Code has a
second, more restrictive limit as to how much money may be contributed
if the taxpayer is to receive all the tax benefits for life insurance
policies under the Code, such as tax-free loans and
"first-in/first-out" treatment of distributions. If the amount
contributed violates this second, more restrictive limit, the Policy
will be treated as a MEC and will not receive many of the tax
preferences of life insurance policies. This second limit, sometimes
known as the "7-pay test", is defined as paying more during the first
seven years of a policy than the amount that would be paid if the
policy provided for paid up benefits after seven level annual premiums.
Any changes to a Policy which is considered, for tax purposes, to be a
"material" change, including, but not limited to, a reduction in the
Death Benefit at any time as may occur after a partial surrender, a
change in the Specified Amount, require us to test the Policy again for
compliance with the 7-pay test based on the changes to the Policy.
[103] How is a "MEC" treated differently from other life insurance policies?
Some of the key ways in which a MEC is treated differently from other
life insurance policies are: (a) amounts you receive as a partial
withdrawal, loan, or if you surrender the Policy are deemed for income
tax purposes to come first from any gain at the time of the transaction
("last in/first out" treatment); (b) distributions of gain before the
taxpayer's age 59 1/2 are subject to a 10% penalty unless an exception
applies; and (c) assignments or pledges as collateral for a loan are
deemed a distribution. Gain subsequent to an assignment or pledge may
be treated as if it is distributed each year. However, death benefits
paid from a MEC are treated the same as from other life insurance
policies.
AVAILABLE INFORMATION
[104] How can I find out more about this offer? You first should review the
rest of this Prospectus for additional information. This Prospectus is
part of the registration statement we filed with the Securities and
Exchange Commission regarding this offering. Additional information on
American Skandia and this offering is available in that registration
statement and accompanying exhibits. You may obtain copies of these
materials at the prescribed rates from the SEC's Public Reference
Section, 450 Fifth Street N.W., Washington, D.C., 20549. You may
inspect and copy the registration statement and the accompanying
exhibits at the SEC's public reference facilities at the above address,
Room 1024, and at the SEC's Regional Offices, 7 World Trade Center, New
York, NY, and the Everett McKinley Dirksen Building, 219 South Dearborn
Street, Chicago, IL. These documents, as well as documents incorporated
by reference, may also be obtained through the SEC's Internet Website
(http://www.sec.gov) for this registration statement as well as for
other registrants that file electronically with the SEC.
MISCELLANEOUS PROVISIONS AND ADDITIONAL DETAILS
The following sections provide additional information you should consider before
purchasing a Policy.
PROVIDING SERVICES TO YOU
You can reach us by telephone at 1-888-554-3348 or through our Internet Website
at http://www.americanskandia.com. We may require that you provide us with
proper identification before we release information about your Policy or accept
instructions received over the phone, the Internet or via any other electronic
means. We may require that you provide your Social Security or tax
identification number. We also may require you to present the personal
identification number ("PIN") we provide you after we issue a Policy. To the
extent permitted by law or regulation, neither we nor any person authorized by
us will be responsible for any claim, loss, liability or expense in connection
with a transaction, including but not limited to a transfer between investment
options, over the phone, the Internet or via any other electronic means.
However, this will only be the case if we or such authorized person acted: (a)
in good faith reliance that you authorized the transaction; and (b) on
reasonable procedures to identify you or your designee though a number of
verification methods. These methods may include recording phone conversations,
requesting Social Security or tax identification numbers, PINs, confirming
electronic mail addresses, or similar means. We may be liable for losses due to
unauthorized or fraudulent instructions should we not follow such reasonable
procedures.
We may require that you submit forms In Writing for certain transactions. We
require the written consent of all joint Owners for any transaction for which we
require the Owner's written consent.
DESIGNATIONS
Certain designations apply to a Policy - the Owner, the Insured and the
Beneficiary. All designations are subject to our rules and our acceptance. We
assume all designations, other than the Insured, are revocable unless you tell
us otherwise. You should consult with a competent tax advisor on the income tax,
estate and inheritance tax implications of various designations. You should also
consult with a competent legal advisor as to the implications of certain
designations in relation to an estate, bankruptcy and community property, where
applicable, as well as other matters.
We assume the Insured(s) is/are the Owner(s) unless you tell us otherwise. If
you name more than one Owner, all rights reserved to Owners are then held as
joint tenants with rights of survivorship unless you provide alternative
instructions. Naming someone to be the Owner other than the payor of the Premium
may have gift, estate or other tax implications.
We assume the Beneficiary is you or your estate unless you tell us otherwise.
You may name more than one primary and more than one contingent Beneficiary.
NET INVESTMENT FACTOR
For each Sub-account the initial Unit Price was $10.00. The Unit Price for each
subsequent Valuation Period is the net investment factor for that Valuation
Period, multiplied by the Unit Price for the immediately preceding Valuation
Period. The net investment factor is (1) divided by (2), less (3), where:
(1) is the net result of:
(a) the net asset value per share of the underlying Portfolio at the
end of the current Valuation Period plus the per share amount of
any dividend or capital gain distribution declared and unpaid
(accrued) by the Portfolio; plus or minus
(b) any per share charge or credit during the Valuation Period as a
provision for taxes attributable to the operation or maintenance
of that Sub-account.
(2) is the net result of:
(a) the net asset value per share of the underlying Portfolio at the
end of the preceding Valuation Period plus the per share amount
of any dividend or capital gain distribution declared and unpaid
(accrued) by the Portfolio; plus or minus
(b) any per share charge or credit during the preceding Valuation
Period as a provision for taxes attributable to the operation or
maintenance of the Sub-account.
(3) is the mortality and expense risk charges and the administration
charge.
ALLOCATION PROGRAMS
We may provide administrative support for various programs that automatically
transfer Account Value between certain investment options at scheduled times.
These include dollar cost averaging and static rebalancing (periodic rebalancing
of Account Values between investment options to conform to preset percentages).
However, we only offer to support such allocation programs according to our
rules. While we are offering to support these programs as of the date of this
Prospectus, we do not guarantee to support these programs at all times.
We may also provide administrative support for various allocation programs that
may be made available by your financial professional. These may include various
asset allocation and market timing programs. We only offer to support such
programs according to our rules. These rules may include, but are not limited
to, receipt of your authorization In Writing permitting a financial professional
to make transfers between investment options on your behalf, or to enroll your
Policy in one of the allocation programs for which we provide administrative
support. We permit the agent of record to make transfers on your behalf unless
you give us other instructions.
Any financial professional you authorize may or may not be appointed by us as
our agent for the sale of Policies. However, we do not engage any agent of
record or any third parties to offer investment allocation services of any type,
so that persons or firms offering such services do so independent from any
agency relationship they may have with us for the sale of Policies. We therefore
take no responsibility for the investment allocations and transfers transacted
on your behalf by such third parties, in accordance with any allocation programs
employed by such third parties or any investment allocation recommendations made
by such third parties. While we offer support for a number of these programs as
of the date of this Prospectus, we do not support all such programs and do not
guarantee to always continue support for those programs we currently support or
may support in the future. We do not charge you for the administrative support
we provide to these third parties.
LIMITATIONS ON TRANSFERS
We retain the right to refuse transfers, either for one Owner or a group of
Owners, if we believe that: (a) excessive trading or a specific transfer request
or group of transfer requests may have a detrimental effect on Unit Prices or
the share prices of the Portfolios; or (b) we are informed by one or more of the
Portfolios that the purchase or redemption of shares is to be restricted because
of excessive trading or a specific transfer or group of transfers is deemed to
have a detrimental effect on the share prices of affected Portfolios. Without
limiting the above, the most likely scenario where either of the above could
occur would be if the aggregate amount of a trade or trades represented a
relatively large proportion of the total assets of a particular Portfolio. Under
such a circumstance, we will process transfers according to our rules then in
effect and provide notice if your transfer request was denied. If a transfer
request is denied, a new transfer request may be required.
DEATH DURING THE GRACE PERIOD
We deduct the unpaid charges from the Death Benefit when calculating the Death
Proceeds if the Insured dies during a grace period.
REINSTATEMENT
You may apply for reinstatement of the Policy if it lapses. We must receive this
application In Writing at our Office within five years of the date the lapse
occurred as measured from the end of the grace period. We may require evidence
of insurability satisfactory to us. In order to reinstate your Policy, you also
must pay us a reinstatement amount, including any applicable charges.
MATURITY
We currently do not require that the Cash Value of the Policy be paid out as of
any "maturity date". There is an assumed maturity date for purposes of
compliance with various state insurance requirements and for purposes of meeting
certain tests under the Code. Should we come to believe that the Cash Value must
be paid out as of the assumed maturity date in order to comply with state or
Federal requirements, then a Policy will mature as of the Policy Anniversary on
which the Insured is Age 100. If there are two Insureds, a Policy "matures" as
of the Policy Anniversary on which the younger Insured is Age 100 or would have
been Age 100 if the younger Insured is then deceased. If we must implement a
maturity date, we will pay out the Cash Value once the Policy matures. The
Policy will then end, and we will not have any more obligations under the
Policy. Certain rights and benefits under the Policy may be restricted after Age
100.
PRICING TRANSACTIONS
We "price" charges, transfers, distributions and payments on the date indicated
below. If such transactions are scheduled to occur on other than a Valuation
Day, we price such transactions as of the following Valuation Period:
(1) "Scheduled" transactions such as monthly deductions, transfers and
distributions are "priced" according to the Unit Price next computed
after the date such transactions are scheduled to occur. However, if a
transaction is "scheduled" to occur on a day other than a Valuation
Day, such transaction will be processed and priced on the next
Valuation Day following the scheduled transaction. "Scheduled"
transactions include, but are not limited to, all charges deducted on a
Monthly Processing Date, equalization of Debt and the Account Value in
the Loan Account on a Policy Anniversary, transfers under a dollar cost
averaging program or transfers previously scheduled with us at our
Office as part of any rebalancing, asset allocation or similar program,
or any program of scheduled distributions. However, we price scheduled
periodic payments which you authorize to be transferred from an account
at another financial institution for additional Premiums or loan
repayments as "unscheduled" transactions, because we cannot control the
administrative processing of the other financial institution.
(2) "Unscheduled" transactions such as transfers, loans or partial
withdrawals that are not subject to any medical waiver are "priced"
according to the Unit Price next computed after we receive the request
for such transactions at our Office. "Unscheduled" transfers include
any transfers processed in conjunction with any market timing program,
or transfers not previously scheduled with us at our Office pursuant to
any rebalancing, asset allocation or similar program which you employ
or you authorize to be employed on your behalf. "Unscheduled" transfers
received pursuant to an authorization to accept transfer instructions
using voice or data transmission over the phone are priced as of the
Valuation Period we receive the request at our Office for such
transactions. We price unscheduled payments sent to us as of the date
we receive such amounts at our Office. These include additional
Premiums, loan repayments, and payments to keep a Policy in effect
during a grace period or a reinstatement payment.
(3) We price surrenders, withdrawals subject to a medical waiver,
accelerated death benefit payments and payment of Death Proceeds as of
the date we receive at our Office all materials we require for such
transactions and such materials are satisfactory to us.
DELAYING TRANSACTIONS
We may defer any distribution or transfer from a Fixed Allocation or any payment
under a fixed settlement option for a period not to exceed the lesser of six (6)
months or the period permitted by law. If we defer a distribution or transfer
from any Fixed Allocation or any payment under a settlement option for more than
thirty days, or less where required by law, we pay interest at the minimum rate
required by law but not less than 3% per year on the amount deferred. We may
defer payment of proceeds of any distribution from any Sub-account or any
transfer from a Sub-account for a period not to exceed seven (7) calendar days
from the date the transaction is effected. This is a delay in payment only, and
is not a delay in the pricing of any such distribution or transfer. Any deferral
period begins on the date such distribution or transfer would otherwise have
been transacted.
All procedures, including distributions, based on the valuation of the
Sub-accounts may be postponed during the period: (1) the New York Stock Exchange
is closed (other than customary holidays or weekends) or trading on the New York
Stock Exchange is restricted as determined by the SEC; (2) the SEC permits
postponement and so orders; or (3) the SEC determines that an emergency exists
making valuation or disposal of securities not reasonably practical.
VOTING
You have voting rights in relation to Account Value maintained in the
Sub-accounts. You do not have voting rights in relation to Account Value
maintained in any Fixed Allocations, in the Loan Account or in relation to fixed
payments under a settlement option.
We will vote shares of the Portfolios in which the Sub-accounts invest in the
manner directed by Owners, unless we, in our sole discretion, determine that we
are required by law or regulation to vote otherwise. Owners have voting rights
equal to the number of shares represented by the Sub-account Units attributable
to their Policy.
We will vote the shares attributable to assets held in the Sub-accounts solely
for us rather than on behalf of Owners, or any share as to which we have not
received instructions, in the same manner and proportion as the shares for which
we have received instructions. We will do so separately for each Sub-account
from various classes that may invest in the same underlying mutual fund
portfolio.
The number of votes for a Portfolio will be determined as of the record date for
such Portfolio as chosen by its board of trustees or board of directors, as
applicable. We will furnish Owners with proper forms and proxies to enable them
to instruct us how to vote.
You may instruct us how to vote on the following matters: (a) changes to the
board of trustees or board of directors, as applicable; (b) changing the
independent accountant; (c) approval of changes to the investment advisory
agreement or adoption of a new investment advisory agreement; (d) any change in
the fundamental investment policy; and (e) any other matter requiring a vote of
the shareholders.
With respect to approval of changes to the investment advisory agreement,
approval of a new investment advisory agreement or any change in fundamental
investment policy, only Owners maintaining Account Value as of the record date
in a Sub-account investing in the applicable Portfolio will instruct us how to
vote on the matter, pursuant to the requirements of Rule 18f-2 under the
Investment Company Act of 1940.
TRANSFERS, ASSIGNMENTS, PLEDGES
Generally, your rights in a Policy may be transferred, assigned or pledged at
any time. These transactions may be subject to income taxes and certain penalty
taxes, depending in part on whether your Policy is treated as a MEC. You may
transfer, assign or pledge your rights to another person at any time, prior to
the death upon which the Death Benefit is payable. You must request a transfer
or provide us a copy of the assignment In Writing. A transfer or assignment is
subject to our acceptance. We will not be deemed to know of or be obligated
under any assignment prior to our receipt and acceptance thereof. We assume no
responsibility for the validity or sufficiency of any assignment.
REPORTS
We send any statements and reports required by applicable law or regulation to
you at your last known address of record. You should therefore give us prompt
notice of any address change. We reserve the right, to the extent permitted by
law and subject to your consent, to provide any prospectus, prospectus
supplements, confirmations, statements and reports required by applicable law or
regulation to you through our Internet Website at http://www.americanskandia.com
or any other electronic means. We send a confirmation statement to you each time
an unscheduled transaction is made affecting Account Value. Such transactions
will generally include changes in investment allocation or transfers among
investment options, loans and loan repayments, partial surrenders or
withdrawals, and any charges associated with such unscheduled transactions. We
also send quarterly statements detailing the activity affecting your Policy
during the prior quarter, including all scheduled and unscheduled transactions.
To the extent permitted by law, some types of scheduled transactions will only
be confirmed on a quarterly basis. Such transactions will generally include
those pre-authorized charges deducted on the Monthly Processing Date. You may
request additional reports. We reserve the right to charge up to $50 for each
such additional report. You should review the information in these statements
carefully. You must report all errors or corrections to us at our Office
immediately to assure proper crediting to your Policy. For transactions that are
confirmed immediately, we assume all transactions are accurate unless you notify
us otherwise within 10 days after the date of the transaction. For transactions
that are only confirmed on the quarterly statement, we assume all transactions
are accurate unless you notify us within 10 days of the end of the calendar
quarter. We may also send you or make available electronically through our
Internet Website an annual report and a semi-annual report containing financial
statements for the applicable Sub-accounts, as of December 31 and June 30,
respectively.
INCONTESTABILITY
We may not contest the validity of a Policy after it has been in effect during
the Insured's lifetime for two years from the Issue Date. If there are two
Insureds, this applies to the lifetime of either Insured. If the Policy is
reinstated, to the extent permitted by law, we may not contest the validity of a
Policy after it has been in effect for two years from the date of the
reinstatement.
SUICIDE
If an Insured commits suicide within two years of the Policy Date (or whatever
maximum period is permitted under law) or the date of a reinstatement if allowed
by law, the Death Benefit will be the greater of: (a) Premium paid less any
outstanding Debt and any partial withdrawals; or (b) the Cash Value. All other
requirements as to calculation and payment of Death Proceeds will apply.
MISSTATEMENT
We will adjust the amount of the Death Proceeds to conform to the facts if the
age or gender of an Insured is incorrectly stated. We will do so as specified in
the Policy and as permitted by law.
BACKDATING
We do not currently permit backdating the Policy Date to a date earlier than the
Issue Date. However, we reserve the right to permit backdating in the future.
POLICY LOANS ON EXCHANGES
Subject to our rules, we will establish a loan on a Policy that you purchase as
part of an exchange that is not subject to current taxation in accordance with
Section 1035 of the Code. However, we will charge the premium tax and DAC tax on
the amount of this "inherited" loan as if it was received as Premium. For
purposes of determining the Assessable Premium, the amount of the inherited loan
will not be treated as commissionable Premium.
The amount of this inherited loan in your Policy when established will be equal
to the loan that was in effect before you surrendered your prior policy. As of
the Policy Date, your Account Value will reflect any transferred "Premium" plus
the amount of the inherited loan. That portion of your Account Value equal to
the inherited loan amount will be allocated to the Loan Account as collateral
for the loan. By reflecting the inherited loan amount in the Account Value, the
sum of the Specified Amount and the Account Value initially will be more under
Death Benefit Option II than it would be without the loan. Also, there will be a
corresponding increase in the Minimum Required Death Benefit. In addition, for
purposes of determining the Guaranteed Minimum Death Benefit, we will deem the
"Premium" to be the amounts paid plus the loan amount as of the Policy Date. All
charges that are calculated as a percentage of your Account Value will increase
because the Account Value will reflect the amount of the loan allocated to the
Loan Account. Loans established as part of a 1035 exchange will be treated as
"preferred" loans (See "Loans" for a complete description.)
Withdrawals of amounts to pay loans transferred to an Exchange Policy from any
prior policy may have adverse taxable consequences. You should consult your tax
advisor before purchasing an Exchange Policy with the intention to make such a
withdrawal or before requesting such a withdrawal.
RESOLVING MATERIAL CONFLICTS
The Portfolios may be available to registered separate accounts offering either
or both life and annuity contracts of insurance companies not affiliated with
us. We also may offer life insurance policies and/or annuity contracts that
offer different variable investment options from those offered under this
Policy, but which invest in the same Portfolios. It is possible that differences
might arise between our Separate Account F and one or more accounts of other
insurance companies which offer a Portfolio as a Sub-account. It is also
possible that differences might arise between a Sub-account offered under this
Policy and variable investment options offered under different life insurance
policies or annuities we offer, even though such different variable investment
options invest in the same Portfolio. In some cases, it is possible that the
differences could be considered "material conflicts." Such a "material conflict"
could also arise due to changes in the law (such as state insurance law or
Federal tax law) which affect either these different life and annuity separate
accounts or differing life insurance policies and annuities. It could also arise
by reason of differences in voting instructions of persons with voting rights
under our policies and/or annuities and those of other companies, persons with
voting rights under annuities and those with rights under life policies, or
persons with voting rights under one of our life policies or annuities with
those under other life policies or annuities we offer. It could also arise for
other reasons. We will monitor events so we can identify how to respond to such
conflicts. If such a conflict occurs, we will take the necessary action to
protect persons with voting rights under our life policies or annuities
vis-a-vis those with rights under life policies or annuities offered by other
insurance companies. We will also take the necessary action to treat equitably
persons with voting rights under this Policy and any persons with voting rights
under any other life policy or annuity we offer.
MODIFICATION OF THE SEPARATE ACCOUNT
We reserve the right to do any or all of the following: (a) combine any
Sub-account(s) with any other Sub-account(s); (b) combine Separate Account F or
a portion thereof with other separate accounts; (c) deregister Separate Account
F under the Investment Company Act of 1940; (d) operate Separate Account F as a
management investment company under the Investment Company Act of 1940 or in any
other form permitted by law; (e) make changes required by any change in the
Securities Act of 1933, the Securities Exchange Act of 1934 or the Investment
Company Act of 1940; (f) make changes that are necessary to maintain the tax
status of your Policy under the Code; and (g) make changes required by any
change in other Federal or state laws relating to life insurance policies in
general or variable life insurance policies in particular.
We also may make additional Sub-accounts available to you from time to time.
These Sub-accounts will invest in Portfolios we believe to be suitable for the
Policy. We may or may not make a new Sub-account available to invest in any new
portfolio of one of the current underlying mutual funds should such a portfolio
be made available to Separate Account F.
We may eliminate Sub-accounts, combine two or more Sub-accounts or substitute
one or more new underlying mutual funds or portfolios for the one in which a
Sub-account is invested. Substitutions may be necessary if we believe a
Portfolio no longer suits the purpose of the Policy. This may happen due to a
change in laws or regulations, or a change in the investment objectives or
restrictions of a Portfolio, or because the Portfolio is no longer available for
investment, or for some other reason. We would obtain prior approval from the
insurance department of our state of domicile, if so required by law, before
making such a substitution, combination, deletion or addition. We also would
obtain prior approval from the SEC so long as required by law, and any other
required approvals before making such a substitution, combination, deletion or
addition.
ENTIRE CONTRACT
For any Policy issued, the entire contract between you and us includes the
Policy form and any of the following which may be attached to the Policy: riders
or endorsements, the copy of any Application and endorsements. All statements
made in any Application are deemed to be representations and not warranties. No
statement is used to void a Policy or defend a claim unless it is contained in
any Application attached to the Policy.
Only our President, one of our Vice Presidents or our Secretary may change or
waive any provisions of a Policy. Any change or waiver must be In Writing. To
the extent permitted by law, we are not bound by any promises or representations
made by or to any other person.
ADDITIONAL TAX CONSIDERATIONS
The following is a brief summary of certain Federal tax laws as they are
currently interpreted. No one can be certain that the laws or interpretations
will remain unchanged or that agencies or courts will always agree as to how the
tax law or regulations are to be interpreted. This discussion is not intended as
tax advice. You may wish to consult a professional tax advisor for tax advice as
to your particular situation.
Our Taxation: We are taxed as a life insurance company under Part I, subchapter
L, of the Code.
Treatment as "life insurance": The Policy was designed to qualify as a life
insurance contract under the Code. All terms and provisions of the Policy shall
be construed in a manner which is consistent with that design. In order to
qualify as a life insurance contract for federal income tax purposes and to
receive the tax treatment normally accorded life insurance under federal tax
law, a policy must satisfy certain requirements established by the Code. We
believe the Policy satisfies the applicable requirements. If we determine that a
Policy does not satisfy the applicable requirements, we may take appropriate
action to conform the Policy to the applicable requirements which could include
the return of a portion of your premium and the earnings thereon and the
imposition of higher cost of insurance charges in the future. This action may
require making certain changes to your Policy. We will notify you before making
any such changes.
As life insurance, under most circumstances, the Beneficiary does not pay any
Federal income tax on the Death Proceeds. As a non-MEC, under most
circumstances: (a) any gain in the Policy is not taxed currently; and (b) any
amounts you receive as a partial withdrawal or if you surrender the Policy are
deemed for income tax purposes to come first from your basis in the Policy, with
any gain withdrawn taxed as ordinary income; and (c) if you assign or pledge any
portion of the Policy, the transaction is not treated as a distribution subject
to taxation.
Treatment as a "modified endowment contract": The tax treatment of the Policy
and any distribution while the Insured is alive will be different if the Policy
is deemed to be a MEC. Some of the key ways in which a MEC is treated
differently from other life insurance Policies are: (a) amounts you receive as a
partial withdrawal, loan, or if you surrender the Policy are deemed for income
tax purposes to come first from any gain at the time of the transaction; (b)
distributions of gain before the taxpayer's age 59 1/2 are subject to a 10%
penalty unless an exception applies; and (c) assignments or pledges as
collateral for a loan are deemed a taxable distribution to the extent of any
gain.
Exchanges: Section 1035 of the Code permits certain income tax-free exchanges of
life insurance policies. You must comply with various requirements for such
exchanges to be treated as tax-free, which include, but are not limited to: (a)
the need for the insured to be the same individual or individuals before and
after the exchange; (b) the need for the owner(s) to be the same before and
after the exchange; and (c) the need to have the Debt on a Policy as of the date
all premium is received equal to any outstanding indebtedness on the life
insurance exchanged for the Policy.
On November 22, 1999, the Internal Revenue Service issued an acquiescence in the
decision of the United States Tax Court in Conway v. Commissioner (111 T.C. 350
(1998)) that a taxpayer's partial surrender of an annuity contract and direct
transfer of the resulting proceeds for the purchase of a new annuity contract
qualifies as a non-taxable exchange under Section 1035 of the Internal Revenue
Code. "Acquiescence" means that the IRS accepts the holding of the Court in a
case and that the IRS will follow it in disposing of cases with the same
controlling facts. Prior to the Conway decision, industry practice has been to
treat a partial surrender of account value as fully taxable to the extent of any
gain in the contract for tax reporting purposes and to "step-up" the basis in
the contract accordingly. However with the IRS' acquiescence in the Conway
decision, partial surrenders may be treated in the same way as tax-free 1035
exchanges of entire contracts, therefore avoiding current taxation of any gains
in the contract as well as the 10% IRS tax penalty on pre-age 59 1/2
withdrawals. The IRS reserved the right to treat transactions it considers
abusive as ineligible for this favorable partial 1035 exchange treatment. We do
not know what transactions may be considered abusive. For example, we do not
know how the IRS may view early withdrawals after a partial exchange.
While the principles expressed in the Conway decision appear applicable to
partial exchanges from life insurance, there is no guidance from the Internal
Revenue Service as to whether it concurs with non-recognition treatment under
Section 1035 of the Code for such transaction. In addition, please be cautioned
that no specific guidance has been provided as to the impact of such a
transaction for the remaining life insurance policy, particulary as to the
subsequent methods to be used to test for compliance under the Code for both the
definition of life insurance and the definition of a modified endowment contract
As of the date of this Prospectus, we continue to report partial surrenders of
life insurance policies as subject to current taxation to the extent of any
gain. However, we may change our reporting procedures to treat certain of these
transactions as partial 1035 exchanges. Should we do so, we reserve the right to
report transactions that may have been designed to receive partial 1035 exchange
treatment as partial surrenders subject to current taxation if we, as a
reporting and withholding agent, believe that we would be expected to deem a
transaction to be abusive.
Transfers between investment options: Transfers between investment options are
not subject to taxation. The Treasury Department may promulgate guidelines under
which a variable life insurance policy will not be treated as life insurance for
tax purposes if persons with ownership rights have excessive control over the
investments underlying such a policy. Such guidelines may or may not address the
number of investment options or the number of transfers between investment
options offered. It is not known whether such guidelines, if in fact
promulgated, would have retroactive effect. It is also not known what effect, if
any, such guidelines may have on transfers between the investment options of the
Policy offered pursuant to this Prospectus. We will take any action, including
modifications to your Policy or the Sub-accounts, required to comply with such
guidelines if promulgated.
Generation skipping transfers: Under the Code certain taxes may be due when all
or part of a life insurance policy is transferred to or a death benefit is paid
to an individual two or more generations younger than the policy holder. These
generation-skipping transfers generally include those subject to federal estate
or gift tax rules. There is an aggregate $1.01 million exemption from tax on all
such transfers. We may be required to determine whether a transaction is a
direct skip as defined in the Code and the amount of the resulting tax. We will
deduct from your Policy or from any applicable payment treated as a direct skip
any amount of tax we are required to pay. You should consult with competent tax
counsel for more information on generation skipping transfers.
Diversification: Section 817(h) of the Code provides that a variable life
insurance policy, in order to qualify as life insurance, must have an
"adequately diversified" segregated asset account (including investments in a
mutual fund by the segregated asset account of insurance companies). The
Treasury Department's regulations prescribe the diversification requirements for
variable life insurance policy. We believe the underlying mutual fund portfolios
should comply with the terms of these regulations.
Withholding: Section 3405 of the Code provides for Federal income tax
withholding on the portion of a distribution which is includible in the gross
income of the recipient. Amounts to be withheld depend upon the nature of the
distribution. However, under most circumstances a recipient may elect not to
have income taxes withheld or have income taxes withheld at a different rate by
filing a completed election form with us. A withholding form may be required.
Accelerated Death Benefits: Payments of amounts that otherwise would be payable
to the Beneficiary as a result of an Insured's death can qualify for the same
tax-free treatment as death benefits if certain requirements are met. These
include requirements regarding the terminal illness of the Insured. We believe
payments under the provisions of the accelerated death benefit of the Policy
will meet the requirements of the Code and the regulations in order to qualify
as tax-free payments.
Continuing the Policy Beyond the Implied Maturity Date: We believe that a Policy
will continue to be treated as life insurance and, if applicable, as a MEC, if
it remains in force beyond the Policy's assumed maturity date. However, this tax
treatment is not certain, so you should consult your tax advisor before taking
this step. If the Policy is not treated as life insurance after such date, gain
in the Policy may no longer be taxed deferred, and all or a portion of the Death
Proceeds may be taxable to the Beneficiary.
Survivorship Policies: The Code does not directly address how certain features
of a policy paying on the death of a surviving insured should be treated. We
believe such a policy should be treated as other life insurance policies, but
there is some uncertainty as to whether that is the case. If the surviving
Insured is an Owner, the Death Proceeds payable as a result of the death of the
last surviving Insured generally will be treated as part of the Owner's estate
for purposes of the Federal estate tax. If the surviving Insured was not an
Owner, the replacement cost of the Policy would be included in the estate of the
Owner upon his or her death and Death Proceeds payable as a result of the death
of the surviving Insured are includible in the person's estate if the proceeds
are payable to or for the benefit of that person's estate or if the surviving
Insured held incidents of ownership in the Policy within three years prior to
death.
Substandard Risk Classes: The Code provides limited guidance on the proper tax
treatment of policies issued on a substandard basis (i.e. those in a substandard
risk class). The Code limits the amount we can charge for mortality costs and
other expenses we use when we calculate whether your Policy qualifies as life
insurance under the Code. We are required to base our calculations on reasonable
mortality and other charges reasonably expected to be paid. We believe that the
charges used for your Policy should meet the current requirement for
"reasonableness." However, the IRS and the Department of Treasury recently
indicated that they expect to issue guidance in 2000 on reasonable mortality
charges in connection with life insurance policies. Accordingly, we reserve the
right to make changes to the current and guaranteed mortality charges and
factors used to determine the Minimum Required Death Benefit, if new regulations
or guidance is issued that requires a change to ensure that your Policy
qualifies as life insurance under the Code. This could result in a change in
your Death Benefit and/or the return of a portion of your premiums and the
earnings thereon. We will continue to monitor this situation.
Other Taxes: Amounts received or deemed received from a Policy that may be
subject to Federal income tax also may be subject to state income taxes. The
fair market value of a Policy or the Death Proceeds may be included under
certain circumstances in an estate for purposes of state inheritance taxes or
Federal estate taxes. Federal estate and gift taxes are integrated for various
purposes. An unlimited marital deduction may apply for purposes of Federal
estate and gift taxes, which would allow deferral of taxes until the death of
the surviving spouse.
SAFEKEEPING OF THE ASSETS
We maintain the assets of the Separate Account and those in our general account.
The assets of the Separate Account are segregated from those in our general
account.
REGULATION
We are organized as a Connecticut stock life insurance company, and are subject
to Connecticut law governing insurance companies. We are regulated and
supervised by the Connecticut Commissioner of Insurance. By March 1 of every
year, we must prepare and file an annual statement, in a form prescribed by the
Connecticut Insurance Department, which covers our operations for the preceding
calendar year, and must prepare and file our statement of financial condition as
of December 31 of such year. The Commissioner and his or her agents have the
right at all times to review or examine our books and assets. A full examination
of our operations will be conducted periodically according to the rules and
practices of the National Association of Insurance Commissioners ("NAIC"). We
are subject to the insurance laws and various Federal and state securities laws
and regulations and to regulatory agencies, such as the Securities and Exchange
Commission and the Connecticut Banking Department, which administer those laws
and regulations.
We can be assessed up to prescribed limits for policyholder losses incurred by
insolvent insurers under the insurance guaranty fund laws of most states. We
cannot predict or estimate the amount any such future assessments we may have to
pay. However, the insurance guaranty laws of most states provide for deferring
payment or exempting a company from paying such an assessment if it would
threaten such insurer's financial strength.
Several states, including Connecticut, regulate insurers and their affiliates
under insurance holding company laws and regulations. This applies to us and our
affiliates. Under such laws, inter-company transactions, such as dividend
payments to parent companies and transfers of assets, may be subject to prior
notice and approval, depending on factors such as the size of the transaction in
relation to the financial position of the companies.
Currently, the federal government does not directly regulate the business of
insurance. However, federal legislative, regulatory and judicial decisions and
initiatives often have significant effects on our business. Types of changes
that are most likely to affect our business include changes to: (a) the taxation
of life insurance companies; (b) the tax treatment of insurance products; (c)
the securities laws, particularly as they relate to insurance and annuity
products; (d) the "business of insurance" exemption from many of the provisions
of the anti-trust laws; and (e) any initiatives directed toward improving the
solvency of insurance companies. We would also be affected by federal
initiatives that have impact on the ownership of or investment in United States
companies by foreign companies or investors.
LEGAL MATTERS
The General Counsel of American Skandia Life Assurance Corporation has passed on
the legal matters relating to the offering of these Policies.
LEGAL PROCEEDINGS
As of the date of this Prospectus, neither we nor American Skandia Marketing,
Incorporated were involved in any litigation outside of the ordinary course of
business, and know of no material claims.
EXPERTS
The consolidated financial statements of American Skandia Life Assurance
Corporation at December 31, 1999 and 1998, and for each of the three years in
the period ended December 31, 1999, and the financial statements of American
Skandia Life Assurance Corporation Variable Account F at December 31, 1999 and
for the year then ended, appearing in this Prospectus and Registration Statement
have been audited by Ernst & Young LLP, independent auditors. The audit, as set
forth in their reports thereon appearing elsewhere herein, and are included in
reliance upon such reports given upon the authority of such firm as experts in
accounting and auditing.
William H. Strong, Vice President, FSA, MAAA, has approved the hypothetical
illustration included in this Prospectus and Registration Statement. We have
included them relying on his opinion that they are reasonable.
DISTRIBUTION OF THIS OFFERING
American Skandia Marketing, Incorporated ("ASM"), a wholly-owned subsidiary of
American Skandia, Inc., acts as the principal underwriter of the Policies. ASM
was incorporated under the laws of the State of Delaware on September 8, 1987.
ASM's principal business address is One Corporate Drive, Shelton, Connecticut
06484. ASM acts as the distributor of a number of annuity and life insurance
products we offer and both American Skandia Trust and American Skandia Advisor
Funds, Inc., a family of retail mutual funds. ASM also acts as an introducing
broker-dealer through which it receives a portion of brokerage commissions in
connection with purchases and sales of securities held by portfolios of American
Skandia Trust which are offered as underlying investment options under the
Policy. ASM is a broker-dealer registered with the SEC under the 1934 Act and a
member of the National Association of Securities Dealers, Inc. ("NASD").
ASM will enter into distribution agreements with certain broker-dealers
registered under the Securities and Exchange Act of 1934 or with entities which
may otherwise offer the Policies that are exempt from such registration. In
addition, ASM may offer Policies directly to potential purchasers. Generally the
maximum initial commission to be paid on premiums received is 30%. However, we
may pay higher amounts under certain situations. In addition, a portion of
compensation may be paid from time to time based on all or a portion of either
the Account Value or the Cash Value. We reserve the right to base commissions
from time-to-time on the investment options chosen by Owners, including
investment options that may be deemed our "affiliates" or "affiliates" of ASM
under the Investment Company Act of 1940.
We may pay an on-going service fee in relation to providing certain statistical
information upon request by Owners about the investment options and the
Portfolios. We may make the fee payable to the service providers based on either
the Account Value or Cash Value of Policies. Under most circumstances, we will
engage the broker-dealer of record for your Policy, or the entity of record if
such entity could offer Policies without registration as a broker-dealer (i.e.
certain banks), to be your resource for the statistical information, and to be
available upon your request to both provide and explain such information to you.
The broker-dealer of record or the entity of record is the firm which sold you
the Policy, unless later changed. Some portion of the fee we pay for this
service may be payable to your representative.
We may structure on-going sales compensation and the on-going service fees such
that no fee is payable based on the value in Fixed Allocations. If that were to
occur, it is possible that your representative may receive on-going service fee
compensation, but only in relation to value maintained in variable investment
options.
From time to time, as permitted by law, we may promote the sale of our products
such as the Policies offered pursuant to this Prospectus through programs of
non-cash rewards to registered representatives of participating broker-dealers.
We may withdraw or alter such promotions at any time.
To the extent permitted, we may advertise certain information regarding the
performance of the investment options that does not take into consideration the
effect of the deductions for taxes, the cost of insurance charges, the sales
charge or the contingent deferred sales charge. This performance information may
help you review the performance of the investment options and provide a basis
for comparison between the Policy's investment options. This information may be
less useful when comparing the performance of the investment options with the
performance of investment options provided in other variable life policies
because each plan of life insurance will have its own applicable charges. This
information is even less useful in comparing performance to that of any savings
or investment vehicle, rather than variable life insurance.
Performance information on the Sub-accounts is based on past performance only
and is no indication of future performance. Actual performance will depend on
the type, quality and, for some of the Sub-accounts, the maturities of the
investments held by the Portfolios and upon prevailing market conditions and the
response of the Portfolios to such conditions. Actual performance will also
depend on changes in the expenses of the Portfolios. Such changes are reflected,
in turn, in the Sub-accounts which invest in such Portfolios. In addition, the
charges deducted from your Account Value and those assessed against each
Sub-account will affect performance.
Certain of the Portfolios existed prior to the inception of the Sub-accounts
available under the Policy. To the extent permitted by applicable law,
performance quoted in advertising regarding such Sub-accounts may indicate
periods during which the Portfolios have been in existence but prior to the
inception of the Sub-account(s) or the initial offering of the Policies. Such
performance is considered hypothetical historical performance because the
Sub-accounts did not exist during the period the performance was achieved. Such
hypothetical historical performance is calculated using the same assumptions
employed in calculating historical performance since inception of the
Sub-accounts. Any such historical performance will be based on assumptions.
These include assumptions regarding: (a) the Age, tobacco usage class, risk
class and gender, where applicable, of an Insured or Insureds; (b) the life
insurance test elected to qualify as life insurance under the Code; (c) the
amount and timing of Premium payments, the Specified Amount, the Death Benefit
Option and the Policy Date; and (d) assumptions about a lack of transfers,
loans, loan repayments and withdrawals as well as no changes to the Specified
Amount and Death Benefit Option during the period for which performance is
quoted.
American Skandia Life Assurance Corporation may advertise its rankings and/or
ratings by independent financial ratings services. Such rankings may help you in
evaluating our ability to meet our obligations in relation to Fixed Allocations,
pay Death Proceeds, make payments under any settlement options or administer
Policies. Such rankings and ratings do not reflect or relate to the performance
of Separate Account F or the underlying Portfolios.
ILLUSTRATIONS
It is impossible to illustrate exactly how a Policy will perform in the future.
However, you may better understand how a Policy works, and may be able to better
compare a Policy with other life insurance plans, using hypothetical
illustrations based on the personal characteristics of the Insured(s) as well as
certain assumptions about the future. The Company will furnish, upon request and
at no charge, a personalized hypothetical illustrations based on: (a) the Age(s)
of the Insured(s); (b) the tobacco usage class and expected risk class(es) of
the Insured(s); (c) the gender of the Insured(s), where permitted; (d) the
Specified Amount you seek; (e) the test that you elect to qualify your Policy as
life insurance; (f) which Death Benefit Option (I, II, III or IV) is to apply;
and (g) the amount and timing of Premiums you intend to pay. Where applicable,
the Company will also furnish upon request an illustration for a Policy that is
not affected by the sex of the Insured.
When requested, personalized hypothetical illustrations provided by the Company
will be based, as appropriate, on the methodology and format of the hypothetical
illustrations that the Company has included in its registration statement for
the Policy. Please refer to the section of the Prospectus entitled "How can I
find out more about this offer?" The hypothetical illustrations show the changes
in the Death Benefit, Account Value and Cash Value over time based on certain
assumptions, including:
|X| Hypothetical average annual gross rates of return in the Portfolios of
0%, 6% and 12%. To the extent permitted by NASD rules and other
applicable laws and regulations, we may also provide personalized
hypothetical illustrations based on actual historical performance of
one or more of the Portfolios.
|X| Hypothetical constant expense ratios of 1.15% for the Portfolios, which
is the average of the actual total annual expenses for all available
Portfolios as of December 31, 1999. The total annual expenses for the
underlying mutual funds are shown in the section entitled "Summary of
Costs - Underlying Mutual Fund Portfolio Annual Expenses." The 1.15%
hypothetical expense ratio, when deducted from the hypothetical average
annual gross rates of return equals a hypothetical average annual net
rate of return of -1.15%, 4.85%, 10.85% respectively. To the extent
permitted by NASD rules and other applicable laws and regulations, we
may also provide personalized hypothetical illustrations based on
different assumptions of underlying mutual fund expenses.
|X| The mortality and expense risk charge assessed against the assets in
the Separate Account at an annualized rate of 0.90%. The charge for
administrative expenses connected with operating the Separate Account
is 0.25% per year.
|X| The cost of insurance charges under the Policy that differ by gender,
tobacco usage class and attained age, as well as all other charges that
apply.
<PAGE>
<TABLE>
<CAPTION>
EXECUTIVE OFFICERS AND DIRECTORS
Our executive officers, directors and certain significant employees, their ages,
positions with us and principal occupations are indicated below. The immediately
preceding work experience is provided for officers that have not been employed
by us or an affiliate for at least five years as of the date of this Prospectus.
Name/ Position with American Skandia
<S> <C> <C> <C> <C>
Age Life Assurance Corporation Principal Occupation
- --- -------------------------- --------------------
Patricia J. Abram Senior Vice President Senior Vice President
48 and National Sales Manager,
Variable Life:
American Skandia
Marketing, Incorporated
Ms. Abram joined us in 1998. She previously held the position of Senior Vice
President, Chief Marketing Officer with Mutual Service Corporation. Ms. Abram
was employed there since 1982.
Lori Allen Vice President Vice President:
30 American Skandia Life
Assurance Corporation
Kimberly Anderson Vice President Vice President,
33 National Sales Manager/
Qualified Plans:
American Skandia Marketing, Incorporated
Robert M. Arena Vice President Vice President:
31 American Skandia Life
Assurance Corporation
Mr. Arena joined us in 1995. He previously held an internship position with KPMG
Peat Marwick in 1994 and the position of Group Sales Representative with Paul
Revere Insurance from October, 1990 to August, 1993.
Gordon C. Boronow President and President and
47 Deputy Chief Executive Officer Deputy Chief Executive Officer:
Director (since July, 1991) American Skandia Life
Assurance Corporation
Robert W. Brinkman Senior Vice President Senior Vice President,
35 National Sales Manager:
American Skandia
Marketing, Incorporated
Malcolm M. Campbell Director (since July, 1991) Director of Operations and
44 Chief Actuary, Assurance and
Financial Services Division:
Skandia Insurance Company Ltd.
Jan R. Carendi Chief Executive Senior Executive Vice President and
55 Officer and Member of Executive Management Group:
Chairman of the Skandia Insurance Company Ltd.
Board of Directors
Director (since May, 1988)
Carl Cavaliere Vice President Vice President:
37 American Skandia Life
Assurance Corporation
Mr. Cavaliere joined us in 1998. He previously held the position of Director of
Operations with Aetna, Inc. since 1989.
Y.K. Chan Senior Vice President Senior Vice President
42 and Chief Information Officer:
American Skandia Information
Services and Technology Corporation
Mr. Chan joined us in 1999. He previously held the position of Chief Information
Officer with E.M. Warburg Pincus from January 1995 until April 1999 and the
position of Vice President, Client Server Application Development with Scudder,
Stevens and Clark from January 1991 until January 1995.
Lucinda C. Ciccarello Vice President Vice President, Mutual Funds:
41 American Skandia
Marketing, Incorporated
Ms. Ciccarello joined us in 1997. She previously held the position of Assistant
Vice President with Phoenix Duff & Phelps since 1984.
Lincoln R. Collins Senior Vice President Senior Vice President:
39 Director (since February, 1996) American Skandia Life
Assurance Corporation
Tim Cronin Vice President Vice President:
34 American Skandia Life
Assurance Corporation
Mr. Cronin joined us in 1998. He previously held the position of Manager/Client
Investor with Columbia Circle Investors since 1995.
Henrik Danckwardt Director (since July, 1991) Director of Finance
46 and Administration,
Assurance and Financial
Services Division:
Skandia Insurance Company Ltd.
Harold Darak Vice President Vice President:
39 American Skandia Life
Assurance Corporation
Mr. Darak joined us in 1999. He previously held the position of
Consultant/Senior Manager with Deloitte & Touche since 1998 and the positions of
Second Vice President with The Guardian since 1996 and The Travelers from
October, 1982 until December, 1995.
Wade A. Dokken Deputy Chief Executive Officer DCEO and COO:
40 and Chief Operating Officer American Skandia Life
Director (since July, 1991) Assurance Corporation
Elaine C. Forsyth Vice President Vice President:
38 American Skandia Life
Assurance Corporation
Larisa Gromyko Director, Insurance Compliance Director, Insurance Compliance:
53 American Skandia Life
Assurance Corporation
Maureen Gulick Director, Business Operations Director, Business Operations:
37 American Skandia Life
Assurance Corporation
Berthann Jones Vice President Vice President:
45 American Skandia Life
Assurance Corporation
Ms. Jones joined us in 1997. She previously held the position of Vice
President/Trust Officer with Ridgefield Bank since 1996 and Manager with Wright
Investors Service since 1993.
Ian Kennedy Senior Vice President Senior Vice President,
52 Customer Service:
American Skandia
Marketing, Incorporated
Mr. Ian Kennedy joined us in 1998. He previously was self-employed since 1996
and held the position of Vice President, Customer Service with SunLife of Canada
from September, 1968 to August, 1995.
T. Richard Kennedy General Counsel and General Counsel:
65 Director (since March, 2000) American Skandia Life
Assurance Corporation
Mr. T. Richard Kennedy joined us in 1999. He previously was Managing Partner
with the law firm of Werner & Kennedy.
N. David Kuperstock Vice President Vice President:
48 American Skandia Life
Assurance Corporation
Thomas M. Mazzaferro Executive Vice President and Executive Vice President and
47 Chief Financial Officer, Chief Financial Officer:
Director (since September, 1994) American Skandia Life
Assurance Corporation
Gunnar J. Moberg Director (since October, 1994) Director - Marketing and Sales,
45 Assurances and Financial
Services Division:
Skandia Insurance Company Ltd.
David R. Monroe Senior Vice President, Senior Vice President,
38 Treasurer and Treasurer and
Corporate Controller Corporate Controller:
American Skandia Life
Assurance Corporation
Mr. Monroe joined us in 1996. He previously held positions of Assistant Vice
President at Allmerica Financial since 1994.
Michael A. Murray Senior Vice President Vice President,
31 National Sales Manager:
American Skandia
Marketing, Incorporated
Brian O'Connor Vice President Vice President,
35 National Sales Manager,
Internal Wholesaling:
American Skandia
Marketing, Incorporated
M. Patricia Paez Vice President Chief of Staff:
39 American Skandia, Inc.
Polly Rae Vice President Vice President:
37 American Skandia Life
Assurance Corporation
Rebecca Ray Vice President Vice President:
44 American Skandia Life
Assurance Corporation
Ms. Ray joined us in 1999. She previously held the position of First Vice
President with Prudential Securities since 1997 and Vice President with Merrill
Lynch since 1995.
Rodney D. Runestad Vice President Vice President:
50 American Skandia Life
Assurance Corporation
Hayward L. Sawyer Senior Vice President Executive Vice President
55 National Sales Manager:
American Skandia
Marketing, Incorporated
Lisa Shambelan Vice President Vice President:
34 American Skandia Life
Assurance Corporation
Karen Stockla Vice President Vice President,
33 Intellectual Resources Department:
American Skandia Life
Assurance Corporation
Ms. Stockla joined us in 1998. She previously held the position of Manager,
Application Development with Citizens Utilities Company since 1996 and HRIS Tech
Support Representative with Yale New Haven Hospital since 1993.
William H. Strong Vice President Vice President:
56 American Skandia Life
Assurance Corporation
Mr. Strong joined us in 1997. He previously held the position of Vice President
with American Financial Systems from June 1994 to October 1997 and the position
of Actuary with Connecticut Mutual Life from June 1965 to June 1994.
Leslie S. Sutherland Vice President Vice President,
46 National Key Accounts Manager:
American Skandia
Marketing, Incorporated
Amanda C. Sutyak Vice President Vice President:
42 Director (since July, 1991) American Skandia Life
Assurance Corporation
Christian A. Thwaites Senior Vice President Senior Vice President,
42 National Marketing Director:
American Skandia
Marketing, Incorporated
Mr. Thwaites joined us in 1996. He previously held the position of consultant
with Monitor Company since October 1995 and Vice President with Aetna, Inc.
since 1995.
Mary Toumpas Vice President Vice President and
48 Compliance Director:
American Skandia
Marketing, Incorporated
Ms. Toumpas joined us in 1997. She previously held the position of Assistant
Vice President with Chubb Life/Chubb Securities since 1973.
Bayard F. Tracy Senior Vice President and Senior Vice President,
52 Director (since September, 1994) National Sales Manager:
American Skandia
Marketing, Incorporated
Deborah G. Ullman Senior Vice President Senior Vice President and
45 Chief Operating Officer:
American Skandia
Marketing, Incorporated
Ms. Ullman joined us in 1998. She previously held the position of Vice President
with Aetna, Inc. since 1977.
Jeffrey M. Ulness Vice President Vice President:
39 American Skandia Life
Assurance Corporation
Derek Winegard Vice President Vice President:
41 American Skandia Life
Assurance Corporation
Mr. Winegard joined us in 1999. He previously held the position of Senior Vice
President with Trust Consultants, Inc. since 1991.
Brett M. Winson Senior Vice President and Senior Vice President,
44 Director (since March 2000) Intellectual Resource Development
American Skandia, Inc.
Mr. Winson joined us in 1998. He previously held the position of Senior Vice
President with Sakura Bank, Ltd. since 1990.
</TABLE>
<PAGE>
APPENDIX A - FINANCIAL INFORMATION ABOUT AMERICAN SKANDIA
<PAGE>
AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Shareholder of
American Skandia Life Assurance Corporation
Shelton, Connecticut
We have audited the consolidated statements of financial condition of American
Skandia Life Assurance Corporation (the "Company" which is a wholly-owned
subsidiary of Skandia Insurance Company Ltd.) as of December 31, 1999 and 1998,
and the related consolidated statements of income, shareholder's equity, and
cash flows for each of the three years in the period ended December 31, 1999.
These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of American Skandia
Life Assurance Corporation at December 31, 1999 and 1998, and the consolidated
results of their operations and cash flows for each of the three years in the
period ended December 31, 1999 in conformity with accounting principles
generally accepted in the United States.
/s/Ernst & Young LLP
Hartford, Connecticut
February 11, 2000,
except for Note 18 as to which the date is March 22, 2000
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Consolidated Statements of Financial Condition
(in thousands)
<TABLE>
<CAPTION>
As of December 31,
1999 1998
--------------- ----------------
ASSETS
Investments:
<S> <C> <C>
Fixed maturities - at amortized cost $ 3,360 $ 8,289
Fixed maturities - at fair value 198,165 141,195
Investment in mutual funds - at fair value 16,404 8,210
Derivative instruments 189 -
Policy loans 1,270 569
-------------- --------------
Total investments 219,388 158,263
Cash and cash equivalents 89,212 77,525
Accrued investment income 4,054 2,880
Deferred acquisition costs 1,087,705 721,507
Reinsurance receivable 4,062 4,191
Receivable from affiliates - 1,161
Income tax receivable - deferred 51,726 38,861
State insurance licenses 4,263 4,413
Fixed assets 3,305 328
Other assets 4,533 3,744
Separate account assets 29,381,166 17,835,400
--------------- ----------------
Total assets $ 30,849,414 $ 18,848,273
=============== ================
</TABLE>
LIABILITIES AND SHAREHOLDER'S EQUITY
<TABLE>
<CAPTION>
<S> <C> <C>
Liabilities:
Reserve for future contractowner benefits $ 11,215 $ 37,508
Policy reserves 29,912 25,545
Drafts outstanding 51,059 28,941
Accounts payable and accrued expenses 158,590 91,827
Income tax payable 24,268 6,657
Payable to affiliates 68,736 -
Future fees payable to parent 576,034 368,978
Short-term borrowing 10,000 10,000
Surplus notes 179,000 193,000
Separate account liabilities 29,381,166 17,835,400
--------------- ----------------
Total Liabilities 30,489,980 18,597,856
--------------- ----------------
Shareholder's equity:
Common stock, $100 and $80 par value, 25,000 shares authorized,
issued and outstanding 2,500 2,000
Additional paid-in capital 215,879 179,889
Retained earnings 141,162 64,993
Accumulated other comprehensive income (107) 3,535
--------------- ----------------
Total Shareholder's equity 359,434 250,417
--------------- ----------------
Total liabilities and shareholder's equity $ 30,849,414 $ 18,848,273
=============== ================
</TABLE>
See notes to consolidated financial statements.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Consolidated Statements of Operations
(in thousands)
<TABLE>
<CAPTION>
For the Year Ended December 31,
1999 1998 1997
-------------- ------------- -------------
REVENUES
<S> <C> <C> <C>
Annuity and life insurance charges and fees $ 289,989 $ 186,211 $ 121,158
Fee income 83,243 50,839 27,593
Net investment income 10,441 11,130 8,181
Premium income 1,278 874 920
Net realized capital gains 578 99 87
Other 1,832 387 75
-------------- ------------- -------------
Total revenues 387,361 249,540 158,014
-------------- ------------- -------------
EXPENSES
Benefits:
Annuity and life insurance benefits 612 558 2,033
Change in annuity and life insurance policy reserves 3,078 1,053 37
Cost of minimum death benefit reinsurance 2,945 5,144 4,545
Return credited to contractowners (1,639) (8,930) (2,018)
-------------- ------------- -------------
4,996 (2,175) 4,597
Expenses:
Underwriting, acquisition and other insurance
expenses 206,350 167,790 90,496
Interest expense 69,502 41,004 24,895
-------------- ------------- -------------
275,852 208,794 115,391
-------------- ------------- -------------
Total benefits and expenses 280,848 206,619 119,988
-------------- ------------- -------------
Income from operations before income tax 106,513 42,921 38,026
Income tax expense 30,344 8,154 10,478
-------------- ------------- -------------
Net income $ 76,169 $ 34,767 $ 27,548
============== ============= =============
</TABLE>
See notes to consolidated financial statements.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Consolidated Statements of Shareholder's Equity
(in thousands)
<TABLE>
<CAPTION>
For the Year Ended December 31,
1999 1998 1997
-------------- -------------- --------------
Common stock:
<S> <C> <C> <C>
Beginning balance $ 2,000 $ 2,000 $ 2,000
Increase in par value 500 - -
-------------- -------------- --------------
Ending balance 2,500 2,000 2,000
-------------- -------------- --------------
Additional paid in capital:
Beginning balance 179,889 151,527 122,250
Transferred to common stock (500) - -
Additional contributions 36,490 28,362 29,277
-------------- -------------- --------------
Ending balance 215,879 179,889 151,527
-------------- -------------- --------------
Retained earnings:
Beginning balance 64,993 30,226 2,678
Net income 76,169 34,767 27,548
-------------- -------------- --------------
Ending balance 141,162 64,993 30,226
-------------- -------------- --------------
Accumulated other comprehensive income:
Beginning balance 3,535 668 (584)
Other comprehensive income (3,642) 2,867 1,252
-------------- -------------- --------------
Ending Balance (107) 3,535 668
-------------- -------------- --------------
Total shareholder's equity $ 359,434 $ 250,417 $ 184,421
============== ============== ==============
</TABLE>
See notes to consolidated financial statements.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Consolidated Statements of Cash Flows
(in thousands)
<TABLE>
<CAPTION>
For the Year Ended December 31,
1999 1998 1997
-------------- ------------- --------------
Cash flow from operating activities:
<S> <C> <C> <C>
Net income $ 76,169 34,767 $ 27,548
Adjustments to reconcile net income to net
cash used in operating activities:
Amortization and depreciation 1,495 251 223
Deferred tax expense (10,903) (14,242) (9,631)
Change in unrealized losses on derivatives 3,749 - -
Increase in policy reserves 4,367 1,130 3,176
Change in receivable from/payable to affiliates 69,897 166 (1,321)
Change in income tax payable 17,611 7,704 (2,172)
Increase in other assets (789) (1,173) (415)
Increase in accrued investment income (1,174) (438) (483)
Decrease/(increase) in reinsurance receivable 129 2,152 (268)
Increase in deferred acquisition costs (366,198) (174,804) (190,969)
Increase in accounts payable and accrued expenses 66,763 20,637 5,719
Increase in drafts outstanding 22,118 9,663 6,245
Change in foreign currency translation, net 701 (22) (34)
Realized capital gain (578) (99) (87)
-------------- ------------- --------------
Net cash used in operating activities (116,643) (114,308) (162,469)
-------------- ------------- --------------
Cash flow from investing activites:
Purchase of fixed maturity investments (99,250) (31,828) (28,905)
Proceeds from sale and maturity of fixed
maturity investments 36,226 4,049 10,755
Purchase of derivatives (4,974) - -
Purchase of shares in mutual funds (17,703) (7,158) (5,595)
Proceeds from sale of shares in mutual funds 14,657 6,086 1,415
Purchase of fixed assets (3,178) (18) (189)
Increase in policy loans (701) 118 (528)
-------------- ------------- --------------
Net cash used in investing activities (74,923) (28,751) (23,047)
-------------- ------------- --------------
Cash flow from financing activities:
Capital contribution from parent 22,490 8,362 29,277
Increase in future fees payable to parent 207,056 135,944 185,922
Net withdrawals from contractowner accounts (26,293) (5,696) 6,959
-------------- ------------- --------------
Net cash provided by financing activities 203,253 138,610 222,158
-------------- ------------- --------------
Net increase/(decrease) in cash and cash
equivalents 11,687 (4,449) 36,642
Cash and cash equivalents at beginning of year 77,525 81,974 45,332
-------------- ------------- --------------
Cash and cash equivalent at end of year $ 89,212 77,525 $ 81,974
============== ============= ==============
Income taxes paid $ 23,637 14,651 $ 22,308
============== ============= ==============
Interest paid $ 69,697 35,588 $ 16,916
============== ============= ==============
</TABLE>
See notes to consolidated financial statements.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements
December 31, 1999
1. ORGANIZATION AND OPERATION
American Skandia Life Assurance Corporation (the "Company") is a
wholly-owned subsidiary of American Skandia, Inc. ("ASI", formerly known as
American Skandia Investment Holding Corporation) whose ultimate parent is
Skandia Insurance Company Ltd., a Swedish Corporation.
The Company develops long-term savings and retirement products which are
distributed through its affiliated broker/dealer company, American Skandia
Marketing, Incorporated ("ASM"). The Company currently issues variable life
insurance and variable, fixed, market value adjusted and immediate annuities
for individuals, groups and qualified pension plans.
The Company has 99.9% ownership in Skandia Vida, S.A. de C.V. ("Skandia
Vida") which is a life insurance company domiciled in Mexico. Skandia Vida
had total shareholder's equity of $4,592,000 and $4,724,000 as of December
31, 1999, and 1998, respectively. The Company considers Mexico an emerging
market and has invested in the Skandia Vida operations with the expectation
of generating profits from long-term savings products in future years. As
such, Skandia Vida has generated net losses of $2,523,000, $2,514,000 and
$1,438,000 for the years ended December 31, 1999, 1998 and 1997,
respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Reporting
The accompanying consolidated financial statements have been prepared in
conformity with generally accepted accounting principles. Intercompany
transactions and balances have been eliminated in consolidation.
Certain reclassifications have been made to prior year amounts to
conform with the current year presentation.
B. New Accounting Pronouncements
In March 1998, the American Institute of Certified Public Accountants
issued Statement of Position ("SOP") 98-1, "Accounting for the Costs of
Software Developed or Obtained for Internal Use. The SOP, which has been
adopted prospectively as of January 1, 1999, requires the capitalization
of certain costs incurred in connection with developing or obtaining
internal use software. Prior to the adoption of SOP 98-1, the Company
expensed all internal use software related costs as incurred. The
Company has identified and capitalized $3,035,000 of costs associated
with internal use software during 1999 and is amortizing the applicable
costs on a straight-line basis over a three year period. At December 31,
1999, the unamortized balance was $2,920,000 and is included in fixed
assets.
In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards 133, "Accounting for
Derivative Instruments and Hedging Activities" (FAS 133). Subsequently,
in July 1999, FASB issued FAS 137 "Deferral of the Effective Date of
FASB Statement 133". The adoption date was delayed to fiscal years
beginning after June 15, 2000. The Company is currently evaluating the
potential impact on its financial position.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. Investments
The Company has classified its fixed maturity investments as either
held-to-maturity or available-for-sale. Investments classified as
held-to-maturity are investments that the Company has the ability and
intent to hold to maturity. Such investments are carried at amortized
cost. Those investments which are classified as available-for-sale are
carried at fair value and changes in unrealized gains and losses are
reported as a component of other comprehensive income.
The Company has classified its mutual fund investments held in support
of a deferred compensation plan are available-for-sale. Such investments
are carried at fair value and changes in unrealized gains and losses are
reported as a component of other comprehensive income.
Derivative instruments are recorded consistent with hedged items. The
Company hedges the market value fluctuations of the guaranteed minimum
death benefit ("GMDB") exposure embedded in its policy reserves and as
such, the portion of the derivative instrument which constitutes an
effective hedge is carried at market value. The cost associated with the
portion of the instrument which is not considered an effective hedge is
amortized to investment income over the life of the instrument.
Policy loans are carried at their unpaid principal balances.
Realized gains and losses on disposal of investments are determined by
the specific identification method and are included in revenues.
D. Derivative Instruments
During the second quarter of 1999, the Company's agreement to reinsure
substantially all of its exposure on its GMDB liability was terminated
and the business was recaptured, as the reinsurer had recently announced
its intention to exit this market. In response, the Company instituted a
hedge program to effectively manage the market risk associated with GMDB
reserve fluctuations using put options. The cash invested in the put
options is at risk to the extent that the value of the underlying index
is less than the strike price at the exercise date. This would be offset
by a corresponding decrease in the hedged GMDB exposure.
E. Cash Equivalents
The Company considers all highly liquid time deposits, commercial paper
and money market mutual funds purchased with a maturity of three months
or less to be cash equivalents.
F. Fair Values of Financial Instruments
The methods and assumptions used to determine the fair value of
financial instruments are as follows:
Fair values of fixed maturities with active markets are based on quoted
market prices. For fixed maturities that trade in less active markets,
fair values are obtained from an independent pricing service.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
F. Fair Values of Financial Instruments (continued)
Fair values of investments in mutual funds are based on quoted market
prices.
The fair value of the portion of the derivative instrument which
constitutes an effective hedge is determined based on current value of
the underlying index.
The carrying value of cash and cash equivalents approximates fair value
due to the short-term nature of these investments.
The carrying value of short-term borrowing approximates fair value due
to the short-term nature of these liabilities.
Fair values of certain financial instruments, such as future fees
payable to parent and surplus notes are not readily determinable and are
excluded from fair value disclosure requirements.
G. State Insurance Licenses
Licenses to do business in all states have been capitalized and
reflected at the purchase price of $6,000,000 less accumulated
amortization. The cost of the licenses is being amortized on a straight
line basis over 40 years.
H. Income Taxes
The Company is included in the consolidated federal income tax return
and combined state income tax return of an upstream company, Skandia AFS
Development Holding Corporation and certain of its subsidiaries. In
accordance with the tax sharing agreement, the federal and state income
tax provisions are computed on a separate return basis as adjusted for
consolidated items such as net operating loss carryforwards.
Deferred income taxes reflect the net tax effects of temporary
differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax
purposes.
I. Recognition of Revenue and Contract Benefits
Revenues for variable annuity contracts consist of charges against
contractowner account values for mortality and expense risks,
administration fees, surrender charges and an annual maintenance fee per
contract. Benefit reserves for variable annuity contracts represent the
account value of the contracts and are included in the separate account
liabilities.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
I. Recognition of Revenue and Contract Benefits (continued)
Revenues for market value adjusted fixed annuity contracts consist of
separate account investment income reduced by benefit payments and
changes in reserves in support of contractowner obligations, all of
which are included in return credited to contractowners. Benefit
reserves for these contracts represent the account value of the
contracts, and are included in the general account reserve for future
contractowner benefits to the extent in excess of the separate account
liabilities.
Revenues for immediate annuity contracts without life contingencies
consist of net investment income. Revenues for immediate annuity
contracts with life contingencies consist of single premium payments
recognized as annuity considerations when received. Benefit reserves for
these contracts are based on the Society of Actuaries 1983 Table-a with
assumed interest rates that vary by issue year. Assumed interest rates
ranged from 6.25% to 8.25% at December 31, 1999 and 1998.
Revenues for variable life insurance contracts consist of charges
against contractowner account values for mortality and expense risk
fees, cost of insurance fees, taxes and surrender charges. Certain
contracts also include charges against premium to pay state premium
taxes. Benefit reserves for variable life insurance contracts represent
the account value of the contracts and are included in the separate
account liabilities.
J. Deferred Acquisition Costs
The costs of acquiring new business, which vary with and are primarily
related to the production of new business, are being deferred net of
reinsurance. These costs include commissions, costs of contract
issuance, and certain selling expenses that vary with production. These
costs are being amortized generally in proportion to expected gross
profits from surrender charges, policy and asset based fees and
mortality and expense margins. This amortization is adjusted
retrospectively and prospectively when estimates of current and future
gross profits to be realized from a group of products are revised.
Details of the deferred acquisition costs and related amortization for
the years ended December 31, are as follows:
<TABLE>
<CAPTION>
(in thousands) 1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Balance at beginning of year $721,507 $546,703 $355,734
-------- -------- --------
Acquisition costs deferred
during the year 450,059 261,432 243,476
Acquisition costs amortized
during the year (83,861) (86,628) (52,507)
--------- -------- --------
366,198 174,804 190,969
------- ------- -------
Balance at end of year $1,087,705 $721,507 $546,703
========== ======== ========
</TABLE>
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
K. Reinsurance
The Company cedes reinsurance under modified co-insurance arrangements.
These reinsurance arrangements provide additional capacity for growth in
supporting the cash flow strain from the Company's variable annuity and
variable life insurance business. The reinsurance is effected under
quota share contracts.
As noted in Note 2D, the Company reinsured its exposure to market
fluctuations associated with its GMDB liability in 1999, 1998 and the
beginning of 1997. Under this reinsurance agreement, the Company ceded
premiums of $2,945,000, $5,144,000 and $4,545,000; received claim
reimbursements of $242,000, $9,000 and $46,000; and, recorded
increases/(decreases) in reserves of ($2,763,000), ($323,000) and
$918,000 in each of the three years, respectively.
At December 31, 1999 and 1998, in accordance with the provisions of a
modified coinsurance agreement, the Company accrued $41,000 and
$1,976,000, respectively, for amounts receivable from favorable
reinsurance experience on a block of variable annuity business.
L. Translation of Foreign Currency
The financial position and results of operations of the Company's
Mexican subsidiary are measured using local currency as the functional
currency. Assets and liabilities of the subsidiary are translated at the
exchange rate in effect at each year-end. Statements of income and
shareholder's equity accounts are translated at the average rate
prevailing during the year. Translation adjustments arising from the use
of differing exchange rates from period to period are reported as a
component of other comprehensive income.
M. Separate Accounts
Assets and liabilities in Separate Accounts are included as separate
captions in the consolidated statements of financial condition. Separate
Account assets consist principally of long term bonds, investments in
mutual funds, short-term securities and cash and cash equivalents, all
of which are carried at fair value. The investments are managed
predominately through the Company's investment advisory affiliate,
American Skandia Investment Services, Inc. ("ASISI"), utilizing various
fund managers as sub-advisors. The remaining investments are managed by
independent investment firms. The contractowner has the option of
directing funds to a wide variety of mutual funds. The investment risk
on the variable portion of a contract is borne by the contractowner. A
fixed option with a minimum guaranteed interest rate is also available.
The Company is responsible for the credit risk associated with these
investments.
Included in Separate Account liabilities are $896,205,000 and
$771,195,000 at December 31, 1999 and 1998, respectively, relating to
annuity contracts for which the contractowner is guaranteed a fixed rate
of return. Separate Account assets of $896,205,000 and $771,195,000 at
December 31, 1999 and 1998, respectively, consisting of long term bonds,
short term securities, transfers due from the general account and cash
and cash equivalents which are held in support of these annuity
contracts, pursuant to state regulation.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
N. Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires that management make estimates
and assumptions that affect the reported amount of assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. The more
significant estimates and assumptions are related to deferred
acquisition costs and involve policy lapses, investment return and
maintenance expenses. Actual results could differ from those estimates.
3. COMPREHENSIVE INCOME
The components of comprehensive income, net of tax, for the years ended
December 31, 1998, 1997 and 1996 were as follows:
<TABLE>
<CAPTION>
(in thousands) 1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Net income $76,169 $34,767 $27,548
Other comprehensive income:
Unrealized investment gains/(losses) on
available for sale securities (3,082) 2,751 1,288
Reclassification adjustment for realized
losses/(gains) included in investment income (1,016) 138 (14)
------- --------- ---------
Net unrealized gains/(losses) on securities (4,098) 2,889 1,274
Foreign currency translation 456 (22) (22)
--------- ---------- ----------
Other comprehensive income (3,642) 2,867 1,252
--------- -------- --------
Comprehensive income $72,527 $37,634 $28,800
======= ======= =======
</TABLE>
The components of accumulated other comprehensive income, net of tax, as of
December 31, 1999 and 1998 were as follows:
<TABLE>
<CAPTION>
(in thousands) 1999 1998
---- ----
<S> <C> <C>
Unrealized investment gains ($255) $3,843
Foreign currency translation 148 (308)
------ -------
Accumulated other comprehensive income ($107) $3,535
====== ======
</TABLE>
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
4. INVESTMENTS
The amortized cost, gross unrealized gains/losses and estimated fair value
of available-for-sale and held-to-maturity fixed maturities and investments
in mutual funds as of December 31, 1999 and 1998 are shown below. All
securities held at December 31, 1999 and 1998 were publicly traded.
Investments in fixed maturities as of December 31, 1999 consisted of the
following:
<TABLE>
<CAPTION>
(in thousands) Held-to-Maturity
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
U.S. Government
obligations $1,105 $ - $ (1) $1,104
Corporate securities 2,255 - (15) 2,240
----- ---- ----- -------
Totals $3,360 $ - $(16) $3,344
====== ==== ===== ======
(in thousands) Available-for-Sale
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
U.S. Government
obligations $ 81,183 $ - $ (678) $ 80,505
Obligations of
state and political
subdivisions 253 (3) 250
Corporate securities 121,859 - (4,449) 117,410
--------- ---- ------ ---------
Totals $203,295 $ - $ (5,130) $198,165
======== ==== ========= ========
The amortized cost and fair value of fixed maturities, by contractual
maturity, at December 31, 1999 are shown below.
(in thousands) Held-to-Maturity Available-for-Sale
---------------- ------------------
Amortized Fair Amortized Fair
Cost Value Cost Value
Due in one year or less $3,107 $3,097 $ - $ -
Due after one through five years 253 247 130,284 128,250
Due after five through ten years - - 73,011 69,915
---------- ---------- ---------- ----------
Total $3,360 $3,344 $203,295 $198,165
====== ====== ======== ========
</TABLE>
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
4. INVESTMENTS (continued)
Investments in fixed maturities as of December 31, 1998 consisted of the
following:
<TABLE>
<CAPTION>
(in thousands) Held-to-Maturity
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
---- ----- ------ -----
<S> <C> <C> <C> <C>
U.S. Government
obligations $3,774 $57 $- $3,831
Obligations of
state and political
subdivisions - - - -
Corporate
securities 4,515 34 - 4,549
------- ---- --- -------
Totals $8,289 $91 $ - $8,380
====== === === ======
(in thousands) Available for Sale
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
---- ----- ------ -----
U.S. Government
obligations $ 17,399 $ 678 $ - $ 18,077
Obligations of
state and political
subdivisions 253 7 - 260
Corporate
securities 117,774 5,160 (76) 122,858
--------- ------- ------- ----------
Totals $135,426 $5,845 $ (76) $141,195
======== ====== ====== ========
Proceeds from sales of fixed maturities during 1999, 1998 and 1997 were
$32,196,000, $999,000, and $5,056,000, respectively. Proceeds from
maturities during 1999, 1998 and 1997 were $4,030,000, $3,050,000, and
$5,700,000, respectively.
</TABLE>
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
4. INVESTMENTS (continued)
The cost, gross unrealized gains/losses and fair value of investments in
mutual funds at December 31, 1999 and 1998 are shown below:
<TABLE>
<CAPTION>
(in thousands) Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C> <C>
1999 $11,667 $4,763 $ (26) $16,404
======= ====== ====== =======
1998 $8,068 $416 $ (274) $8,210
====== ==== ======= ======
Net realized investment gains (losses) were as follows for the years ended
December 31:
(in thousands) 1999 1998 1997
------ ---- ----
Fixed maturities:
Gross gains $ 253 $ - $ 10
Gross losses (228) (1) -
Investment in mutual funds:
Gross gains 990 281 116
Gross losses (437) (181) (39)
------- ------ ------
Totals $ 578 $ 99 $ 87
====== ===== =====
</TABLE>
<TABLE>
<CAPTION>
5. NET INVESTMENT INCOME
The sources of net investment income for the years ended December 31, 1999,
1998 and 1997 were as follows:
(in thousands) 1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Fixed maturities $ 9,461 $ 8,534 $6,617
Cash and cash equivalents 2,159 1,717 1,153
Investment in mutual funds 32 1,013 554
Policy loans 31 45 28
Derivative Instruments (1,036) - -
--------- ---------- ---------
Total investment income 10,647 11,309 8,352
Investment expenses 206 179 171
---------- ---------- --------
Net investment income $10,441 $11,130 $8,181
======= ======= ======
</TABLE>
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
6. INCOME TAXES
The significant components of income tax expense for the years ended
December 31 were as follows:
<TABLE>
<CAPTION>
(in thousands) 1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Current tax expense $41,248 $22,384 $20,108
Deferred tax benefit (10,904) (14,230) (9,630)
-------- -------- ---------
Total income tax expense $30,344 $ 8,154 $10,478
======= ======== =======
</TABLE>
The tax effects of significant items comprising the Company's deferred
tax balance as of December 31, 1999 and 1998, are as follows:
<TABLE>
<CAPTION>
(in thousands) 1999 1998
---- ----
Deferred tax liabilities:
<S> <C> <C>
Deferred acquisition costs ($321,873) ($210,731)
Payable to reinsurers (26,733) (25,585)
Policy fees (1,146) (859)
Net unrealized gains (80) (2,069)
------------ -----------
Total (349,832) (239,244)
-------- ---------
Deferred tax assets:
Net separate account liabilities 333,521 225,600
Future contractowner benefits 3,925 13,128
Other reserve differences 39,645 25,335
Deferred compensation 18,844 9,619
Surplus notes interest 5,030 3,375
Foreign exchange translation 137 166
Other 456 882
----------- ------------
Total 401,558 278,105
-------- ---------
Income tax receivable - deferred $ 51,726 $ 38,861
========= =========
</TABLE>
Management believes that based on the taxable income produced in the
current year and the continued growth in annuity products, the Company
will produce sufficient taxable income in the future to realize its
deferred tax asset.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
6. INCOME TAXES (continued)
The income tax expense was different from the amount computed by applying
the federal statutory tax rate of 35% to pre-tax income from continuing
operations as follows:
<TABLE>
<CAPTION>
(in thousands) 1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Income (loss) before taxes
Domestic $109,036 $45,435 $39,464
Foreign (2,523) (2,514) (1,438)
---------- --------- ---------
Total 106,513 42,921 38,026
Income tax rate 35% 35% 35%
--------- --------- ---------
Tax expense at federal
statutory income tax rate 37,280 15,022 13,309
Tax effect of:
Dividend received deduction (9,572) (9,085) (4,585)
Losses of foreign subsidiary 883 880 503
Meals and entertainment 664 487 340
State income taxes 1,071 673 577
Other 18 177 334
--------- -------- -------
Income tax expense $ 30,344 $ 8,154 $10,478
========= ======== =======
</TABLE>
7. RECEIVABLE FROM/PAYABLE TO AFFILIATES
Certain operating costs (including personnel, rental of office space,
furniture, and equipment) have been charged to the Company at cost by
American Skandia Information Services and Technology Corporation ("ASIST"),
an affiliated company; and likewise, the Company has charged operating costs
to ASISI. The total cost to the Company for these items was $11,136,000,
$7,722,000, and $5,572,000 for the years ended December 31, 1999, 1998 and
1997, respectively. Income received for these items was $3,919,000,
$1,355,000 and $3,225,000 for the years ended December 31, 1999, 1998 and
1997, respectively.
The Company had a $10 million short-term loan payable to ASI at December 31,
1999 and 1998. The total interest expense thereon to the Company was
$585,000, $622,000 and $642,000 for the years ended December 31, 1999, 1998
and 1997 respectively, of which $182,000 was payable as of December 31, 1999
and 1998.
Beginning in 1999, the Company was reimbursed by ASM for certain
distribution related costs associated with the sales of business through an
investment firm where ASM serves as an introducing broker dealer. Under this
agreement, the expenses reimbursed in 1999 were $1,441,000. As of December
31,1999, amounts receivable under this agreement were $245,000.
As of December 31,1999, the Company had received $71,000,000 from ASI in
advance of the sale of certain rights to receive future fees and contract
charges. This sale is expected to be completed in the first quarter of 2000.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
8. FUTURE FEES PAYABLE TO PARENT
In a series of transactions with ASI, the Company sold certain rights to
receive future fees and contract charges expected to be realized on variable
portions of designated blocks of deferred annuity contracts. The effective
dates and issue periods these transactions cover are as follows:
<TABLE>
<CAPTION>
Closing Effective Contract Issue
Transaction Date Date Period
<S> <C> <C> <C> <C> <C>
1996-1 12/16/96 9/1/96 1/1/94 - 6/30/96
1997-1 7/23/97 6/1/97 3/1/96 - 4/30/97
1997-2 12/30/97 12/1/97 5/1/95 - 12/31/96
1997-3 12/30/97 12/1/97 5/1/96 - 10/31/97
1998-1 6/30/98 6/1/98 1/1/97 - 5/31/98
1998-2 11/10/98 10/1/98 5/1/97 - 8/31/98
1998-3 12/30/98 12/1/98 7/1/96 - 10/31/98
1999-1 6/23/99 6/1/99 4/1/94 - 4/30/99
1999-2 12/14/99 10/1/99 11/1/98 - 7/31/99
</TABLE>
In connection with these transactions, ASI issued collateralized notes in a
private placement which are secured by the rights to receive future fees and
charges purchased from the Company.
Under the terms of the Purchase Agreements, the rights sold provide for ASI
to receive a percentage (80% or 100% depending on the underlying commission
option) of future mortality and expense charges and contingent deferred
sales charges, after reinsurance, expected to be realized over the remaining
surrender charge period of the designated contracts (6 to 8 years).
The Company did not sell the right to receive future fees and charges after
the expiration of the surrender charge period.
The proceeds from the sales have been recorded as a liability and are being
amortized over the remaining surrender charge period of the designated
contracts using the interest method. The present values of the transactions
as of the respective effective date were as follows:
<TABLE>
<CAPTION>
Present
(in thousands) Transaction Discount Rate Value
----------- ------------- -----
<S> <C> <C> <C>
1996-1 7.5% $50,221
1997-1 7.5% 58,767
1997-2 7.5% 77,552
1997-3 7.5% 58,193
1998-1 7.5% 61,180
1998-2 7.0% 68,573
1998-3 7.0% 40,128
1999-1 7.5% 120,632
1999-2 7.5% 145,078
</TABLE>
Payments representing fees and charges in the aggregate amount of
$131,420,000, $69,226,000 and $22,250,000 were made by the Company to
the Parent for the years ended December 31, 1999, 1998 and 1997,
respectively. Related interest expense of $52,840,000, $22,978,000 and
$6,842,000 has been included in the statement of income for the years
ended December 31, 1999, 1998 and 1997, respectively.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
8. FUTURE FEES PAYABLE TO PARENT (continued)
Expected payments of future fees payable to ASI as of December 31, 1999 are
as follows:
<TABLE>
<CAPTION>
Year Ended
(in thousands) December 31, Amount
----------- ------
<S> <C> <C>
2000 $103,975
2001 107,262
2002 106,491
2003 97,550
2004 78,512
2005 51,839
2006 25,712
2007 4,693
---------
Total $576,034
</TABLE>
The Commissioner of the State of Connecticut has approved the sale of
future fees and charges; however, in the event that the Company becomes
subject to an order of liquidation or rehabilitation, the Commissioner
has the ability to stop the payments due to the Parent under the
Purchase Agreement subject to certain terms and conditions.
9. LEASES
The Company leases office space under a lease agreement established in
1989 with ASIST. The lease expense for 1999, 1998 and 1997 was
$5,003,000, $3,588,000 and $2,428,000 respectively. Future minimum
lease payments per year and in aggregate as of December 31, 1999 are as
follows:
(in thousands) 2000 $ 7,004
2001 7,004
2002 6,854
2003 6,756
2004 6,929
2005 and thereafter 51,865
--------
Total $86,412
=======
10. RESTRICTED ASSETS
To comply with certain state insurance departments' requirements, the
Company maintains cash, bonds and notes on deposit with various states.
The carrying value of these deposits amounted to $4,868,000 and
$3,747,000 as of December 31, 1999, and 1998, respectively. These
deposits are required to be maintained for the protection of
contractowners within the individual states.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
11. RETAINED EARNINGS AND DIVIDEND RESTRICTIONS
On November 8, 1999, the Board of Directors authorized the Company to
increase the par value of its capital stock from $80 per share to $100
per share in order to comply with minimum capital levels as required by
the California Department of Insurance. This transaction resulted in a
corresponding decrease in paid in and contributed surplus of $500,000
and had no effect on capital and surplus.
Statutory basis shareholder's equity was $286,385,000 and $285,553,000
at December 31, 1999 and 1998, respectively.
The statutory basis net loss was $17,672,000, $13,152,000 and
$8,970,000 for the years ended December 31, 1999, 1998 and 1997,
respectively.
Under various state insurance laws, the maximum amount of dividends
that can be paid to shareholders without prior approval of the state
insurance department is subject to restrictions relating to statutory
surplus and net gain from operations. At December 31, 1999, no amounts
may be distributed without prior approval.
12. EMPLOYEE BENEFITS
The Company has a 401(k) plan for which substantially all employees are
eligible. Under this plan, the Company contributes 3% of salary for all
participating employees and matches employee contributions at a 50%
level up to an additional 3% Company contribution. Company
contributions to this plan on behalf of the participants were
$3,164,000, $2,115,000 and $1,220,000 for the years ended December 31,
1999, 1998 and 1997, respectively.
The Company has a deferred compensation plan, which is available to the
internal field marketing staff and certain officers. Company
contributions to this plan on behalf of the participants were $193,000,
$342,000 and $270,000 for the years ended December 31, 1999, 1998 and
1997, respectively.
The Company and an affiliate cooperatively have a long-term incentive
program under which units are awarded to executive officers and other
personnel. The Company also has a profit sharing program which benefits
all employees below the officer level. These programs consist of
multiple plans with new plans instituted each year. Generally,
participants must remain employed by the Company or its affiliates at
the time such units are payable in order to receive any payments under
the program. The accrued liability representing the value of these
units was $42,619,000 and $21,372,000 as of December 31, 1999 and 1998,
respectively. Payments under this plan were $4,079,000, $2,407,000 and
$1,119,000 for the years ended December 31, 1999, 1998, and 1997,
respectively.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
13. REINSURANCE
The effect of reinsurance for the years ended December 31, 1999, 1998
and 1997 is as follows:
(in thousands) 1999
----
<TABLE>
<CAPTION>
Annuity and Life Annuity and Life
Insurance Insurance Return Credited
Charges and Fees Policy Reserves to Contractowners
<S> <C> <C> <C>
Gross $326,670 $315 ($1,397)
Ceded (36,681) 2,763 (242)
-------- ------ --------
Net $289,989 $3,078 ($1,639)
======== ====== ========
1998
----
Annuity and Life Annuity and Life
Insurance Insurance Return Credited
Charges and Fees Policy Reserves to Contractowners
Gross $215,425 $ 691 ($8,921)
Ceded (29,214) 362 (9)
-------- ------ --------
Net $186,211 $1,053 ($8,930)
======== ====== ========
1997
----
Annuity and life Annuity and Life
Insurance Insurance Return Credited
Charges and Fees Policy Reserves to Contractowners
Gross $144,417 $955 ($1,972)
Ceded (23,259) (918) (46)
-------- ----- --------
Net $121,158 $ 37 ($2,018)
======== ===== ========
</TABLE>
Such ceded reinsurance does not relieve the Company of its obligations
to policyholders. The Company remains liable to its policyholders for
the portion reinsured to the extent that any reinsurer does not meet
its obligations assumed under the reinsurance agreements.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
14. SURPLUS NOTES
The Company has issued surplus notes to its Parent in exchange for cash.
Surplus notes outstanding as of December 31, 1999 and 1998 were as
follows:
<TABLE>
<CAPTION>
(in thousands)
Interest for the
Interest 1999 1998 Years Ended December 31,
Issue Date Rate Amount Amount 1999 1998 1997
---------- ---- ------ ------ ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
December 29, 1993 6.84% - - - 1,387 1,387
February 18, 1994 7.28% 10,000 10,000 738 738 738
March 28, 1994 7.90% 10,000 10,000 801 801 801
September 30, 1994 9.13% 15,000 15,000 1,389 1,389 1,389
December 28, 1994 9.78% - 14,000 1,308 1,388 1,388
December 19, 1995 7.52% 10,000 10,000 762 762 762
December 20, 1995 7.49% 15,000 15,000 1,139 1,139 1,139
December 22, 1995 7.47% 9,000 9,000 682 682 682
June 28, 1996 8.41% 40,000 40,000 3,411 3,411 3,411
December 30, 1996 8.03% 70,000 70,000 5,698 5,699 5,699
Total $179,000 $193,000 $15,928 $17,396 $17,396
======== ======== ======= ======= =======
</TABLE>
The surplus note for $14,000,000 dated December 28, 1994 was converted
to additional paid-in capital on December 10, 1999. A surplus note for
$20,000,000 dated December 29, 1993 was converted to additional paid-in
capital on December 31, 1998. All surplus notes mature seven years from
the issue date.
Payment of interest and repayment of principal for these notes is
subject to certain conditions and require approval by the Insurance
Commissioner of the State of Connecticut. At December 31, 1999 and
1998, $14,372,000 and $9,644,000, respectively, of accrued interest on
surplus notes was not approved for payment under these criteria.
15. SHORT-TERM BORROWING
The Company had a $10 million short-term loan payable to the Parent at
December 31, 1999 and 1998. The total interest expense to the Company
was $585,000, $622,000 and $642,000 and for the years ended December
31, 1999, 1998 and 1997, respectively, of which $197,000 and $182,000
was payable as of December 31, 1999 and 1998, respectively.
16. CONTRACT WITHDRAWAL PROVISIONS
Approximately 99% of the Company's separate account liabilities are
subject to discretionary withdrawal by contractowners at market value
or with market value adjustment. Separate account assets which are
carried at fair value are adequate to pay such withdrawals which are
generally subject to surrender charges ranging from 10% to 1% for
contracts held less than 10 years.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
17. SEGMENT REPORTING
During 1998, to complement its annuity products, the Company launched
specific marketing and operational activities towards the release of
variable life insurance and qualified retirement plan annuity products.
Assets under management and sales for the products other than variable
annuities have not been significant enough to warrant full segment
disclosures as required by SFAS 131, "Disclosures about Segments of an
Enterprise and Related Information."
18. SUBSEQUENT EVENT
On March 22, 2000, the Company sold certain rights to receive future
fees and contract charges expected to be received on variable portions
of deferred annuity contracts issued between August 1, 1999 and January
31, 2000. This transaction is the latest in a series of agreements with
ASI, as described in Note 8.
This transaction has an effective date of March 22, 2000. The present
value as of this date, discounted at 7.5%, was $171,781,000.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Notes to Consolidated Financial Statements (continued)
19. QUARTERLY FINANCIAL DATA (UNAUDITED)
The following table summarizes information with respect to the
operations of the Company on a quarterly basis:
<TABLE>
<CAPTION>
(in thousands) Three months Ended
------------------
March 31 June 30 September 30 December 31
-------- ------- ------------ -----------
1999
Premiums and other insurance
<S> <C> <C> <C> <C>
revenues $78,412 $88,435 $97,955 $111,540
Net investment income 2,654 2,842 2,735 2,210
Net realized capital gains 295 25 206 52
---------- ----------- ---------- -----------
Total revenues 81,361 91,302 100,896 113,802
Benefits and expenses 64,107 67,803 71,597 77,341
-------- -------- -------- --------
Pre-tax net income 17,254 23,499 29,299 36,461
Income taxes 3,844 7,142 7,898 11,460
--------- --------- --------- -------
Net income $ 13,410 $ 16,357 $ 21,401 $25,001
======== ======== ======== =======
1998
Premiums and other insurance
revenues $50,593 $57,946 $62,445 $67,327
Net investment income 3,262 2,410 2,469 2,989
Net realized capital gains (losses) 156 13 (46) (24)
---------- ----------- ----------- -----------
Total revenues 54,011 60,369 64,868 70,292
Benefits and expenses 46,764 42,220 48,471 69,164
-------- -------- -------- --------
Pre-tax net income 7,247 18,149 16,397 1,128
Income taxes 1,175 4,174 2,223 582
--------- --------- -------- ---------
Net income $ 6,072 $13,975 $14,174 $ 546
======== ======= ======= ========
1997
Premiums and other insurance
revenues $30,186 $34,056 $41,102 $44,402
Net investment income 1,369 2,627 2,031 2,154
Net realized capital gains 20 43 21 3
----------- ----------- ----------- ------------
Total revenues 31,575 36,726 43,154 46,559
Benefits and expenses 18,319 30,465 31,179 40,025
-------- -------- -------- --------
Pre-tax net income 13,256 6,261 11,975 6,534
Income taxes 4,260 2,614 3,354 250
--------- --------- --------- ----------
Net income $ 8,996 $ 3,647 $ 8,621 $ 6,284
======== ======== ======== ========
</TABLE>
<PAGE>
FINANCIAL STATEMENTS FOR AMERICAN SKANDIA LIFE ASSURANCE CORPORATION SEPARATE
ACCOUNT F
<PAGE>
Independent Auditor's Report
To the Contractowners of
American Skandia Life Assurance Corporation
Variable Account F and the
Board of Directors and Shareholder of
American Skandia Life Assurance Corporation
Shelton, Connecticut
We have audited the accompanying statement of assets and contractowners' equity
of the thirty-eight sub-accounts of American Skandia Life Assurance Corporation
Variable Account F, referred to in Note 1, as of December 31, 1999 and 1998, and
the related statement of operations for the year ended December 31, 1999 and
statements of changes in net assets for the year ended December 31, 1999 and the
period from June 26, 1998 through December 31, 1998. These financial statements
are the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the thirty-eight sub-accounts
of American Skandia Life Assurance Corporation Variable Account F, referred to
in Note 1, at December 31, 1999 and 1998, and the results of its operations for
the year ended December 31, 1999 and its changes in net assets for the year
ended December 31, 1999 and the period June 26, 1998 through December 31, 1998
in conformity with accounting principles generally accepted in the United
States.
/s/Ernst & Young LLP
Hartford, Connecticut
February 11, 2000
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARAIBLE ACCOUNT F
STATEMENT OF ASSETS AND CONTRACTOWNERS' EQUITY
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investment in mutual funds at market value ( Note 2 ):
American Skandia Trust ( AST ):
<S> <C> <C> <C>
AIM International Equity Portfolio - 7,322 shares ( cost $229,735) $ 250,628
AIM Balanced Portfolio - 20,329 shares ( cost $277,085) 309,816
American Century Income & Growth Portfolio - 40,224 shares ( cost $588,004) 629,510
Lord Abbett Growth & Income Portfolio - 53,071 shares ( cost $1,180,721) 1,247,172
Lord Abbett Small Cap Value Portfolio - 8,289 shares ( cost $83,224) 90,102
JanCap Growth Portfolio - 137,105 shares ( cost $6,102,520) 7,569,537
Money Market Portfolio - 4,389,667 shares ( cost $4,389,616) 4,389,616
Neuberger & Berman Midcap Value Portfolio - 21,447 shares ( cost $268,264) 285,555
Neuberger & Berman Midcap Growth Portfolio - 20,529 shares ( cost $380,293) 493,309
Federated High Yield Portfolio - 50,212 shares ( cost $594,454) 598,526
T. Rowe Price Asset Allocation Portfolio - 13,235 shares ( cost $236,080) 249,620
T. Rowe Price International Bond Portfolio - 904 shares ( cost $8,642) 8,682
T. Rowe Price International Equity Portfolio - 4,426 shares ( cost $62,418) 73,773
T. Rowe Price Natural Resources Portfolio - 4,122 shares ( cost $54,996) 54,241
T. Rowe Price Small Company Value Portfolio - 13,393 shares ( cost $149,119) 152,547
Janus Small Cap Growth Portfolio - 45,828 shares ( cost $1,310,759) 1,952,725
PIMCO Total Return Bond Portfolio - 79,436 shares ( cost $870,727) 872,996
PIMCO Limited Maturity Bond Portfolio - 91,450 shares ( cost $977,329) 990,402
INVESCO Equity Income Portfolio - 45,130 shares ( cost $814,964) 841,672
Oppenheimer Large-Cap Growth - 16,870 shares ( cost $254,787) 319,694
Janus Overseas Growth Portfolio - 60,678 shares ( cost $1,090,941) 1,523,012
American Century Strategic Balanced Portfolio - 20,123 shares ( cost $289,165) 307,889
American Century International Growth Portfolio - 5,129 shares ( cost $99,221) 114,884
Marsico Capital Growth Portfolio - 178,129 shares ( cost $3,111,708) 3,854,716
Cohen & Steers Realty Portfolio - 5,464 shares ( cost $43,996) 45,679
Bankers Trust Enhanced 500 Portfolio - 119,699 shares ( cost $1,643,395) 1,790,690
Kemper Small Cap Portfolio - 996 shares ( cost $14,116) 15,521
MFS Growth Portfolio - 2,373 shares ( cost $24,455) 26,820
MFS Growth with Income Portfolio - 1,301 shares ( cost $13,395) 13,687
Founders Passport Portfolio - 5,466 shares ( cost $109,523) 134,616
The Alger American Fund ( AAF ):
Growth Portfolio - 26,382 shares ( cost $1,477,593) 1,698,442
Midcap Growth Portfolio - 25,890 shares ( cost $735,767) 834,440
INVESCO Variable Investment Funds ( INVESCO ):
VIF Technology Fund - 4,439 shares ( cost $139,242) 164,817
VIF Financial Sevices Fund - 1,841 shares ( cost $20,226) 20,435
VIF Telecommunications Fund - 3,340 shares ( cost $50,656) 54,939
VIF Health Sciences Fund - 1,202 shares ( cost $18,828) 19,252
VIF Dynamics Fund - 1,224 shares ( cost $21,290) 23,131
Montgomery Variable Series ( Montgomery ):
Emerging Markets Portfolio - 4,954 shares ( cost $42,998) 53,796
------------------
Total Invested Assets $ 32,076,889
Receivable from American Skandia Life Assurance Corporation 621,595
------------------
Total Receivables $ 621,595
------------------
Total Assets $ 32,698,484
==================
- ------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
LIABILITIES
<TABLE>
<CAPTION>
Payable to American Skandia Skandia Trust $ 358,740
Payable to Alger American Fund 231,857
Payable to INVESCO Variable Investment Funds 30,816
Payable to Montgomery Variable Series 182
-----------------
Total Liabilities $ 621,595
NET ASSETS
Unit
Contractowners' Equity Units Value
<S> <C> <C> <C> <C>
AST - AIM International Equity 15,981 15.68 $ 250,628
AST - AIM Balanced 25,161 12.31 309,816
AST - American Century Income & Growth 50,924 12.36 629,510
AST - Lord Abbett Growth & Income 107,121 11.64 1,247,172
AST - Lord Abbett Small Cap Value 9,327 9.66 90,102
AST - JanCap Growth 370,764 20.42 7,569,537
AST - Money Market 415,524 10.56 4,389,616
AST - Neuberger & Berman Midcap Value 27,998 10.20 285,555
AST - Neuberger & Berman Midcap Growth 30,953 15.94 493,309
AST - Federated High Yield 60,603 9.88 598,526
AST - T. Rowe Price Asset Allocation 21,411 11.66 249,620
AST - T. Rowe Price International Bond 869 9.99 8,682
AST - T. Rowe Price International Equity 5,714 12.91 73,773
AST - T. Rowe Price Natural Resources 5,222 10.39 54,241
AST - T. Rowe Price Small Company Value 17,849 8.55 152,547
AST - Janus Small Cap Growth 80,027 24.40 1,952,725
AST - PIMCO Total Return Bond 84,718 10.30 872,996
AST - PIMCO Limited Maturity Bond 94,215 10.51 990,402
AST - INVESCO Equity Income 74,726 11.26 841,672
AST - Oppenheimer Large-Cap Growth 21,389 14.95 319,694
AST - Janus Overseas Growth 90,760 16.78 1,523,012
AST - American Century Strategic Balanced 25,191 12.22 307,889
AST - American Century International Growth 7,482 15.35 114,884
AST - Marsico Capital Growth 229,882 16.77 3,854,716
AST - Cohen & Steers Realty 5,079 8.99 45,679
AST - Bankers Trust Enhanced 135,113 13.25 1,790,690
AST - Kemper Small Cap 1,007 15.41 15,521
AST - MFS Growth 2,379 11.27 26,820
AST - MFS Growth & Income 1,304 10.49 13,687
AST - Founders Passport 7,962 16.91 134,616
AAF - Growth 104,744 16.22 1,698,442
AAF - Midcap Growth 56,139 14.86 834,440
INVESCO - VIF Technology 10,257 16.07 164,817
INVESCO - VIF Financial Services 1,753 11.66 20,435
INVESCO - VIF Telecommunications 3,713 14.80 54,939
INVESCO - VIF Health Sciences 1,677 11.48 19,252
INVESCO - VIF Dynamics 1,706 13.56 23,131
Montgomery Emerging Markets 4,434 12.13 53,796
-----------------
Total Contractowners' Equity $ 32,076,889
-----------------
Total Contractowners' Equity $ 32,698,484
=================
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class 6 Sub-account Investing In:
--------------------------------------------------------------
AST-
AST-AIM American Century
International AST-AIM Income &
Total Equity Balanced Growth
--------------------------------------------------------------
INVESTMENT INCOME:
Income
<S> <C> <C> <C> <C>
Dividends $ 188 $ - $ 100 $ 88
Expenses
Mortality and Expense Risk Charges and Administrative Fees (Note 6) (2,518) (608) (925) (985)
--------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (2,330) (608) (825) (897)
--------------------------------------------------------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales 664,260 605,337 47,592 11,331
Cost of Securities Sold 615,697 557,480 48,290 9,927
--------------------------------------------------------
Net Gain (Loss) 48,563 47,857 (698) 1,404
Capital Gain Distributions Received 3,006 2,178 332 496
--------------------------------------------------------
NET REALIZED GAIN (LOSS) 51,569 50,035 (366) 1,900
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period 5,419 4,520 212 687
End of Period 95,128 20,893 32,730 41,505
--------------------------------------------------------
NET UNREALIZED GAIN (LOSS) 89,709 16,373 32,518 40,818
--------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 138,948 $ 65,800 $ 31,327 $ 41,821
========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------
-------------------------------------------------------------------
AST-Lord Abbett AST-Lord Abbett AST AST Money
Growth & Income Small Cap Value JanCap Growth Market
-------------------------------------------------------------------
INVESTMENT INCOME:
Income
<S> <C> <C> <C> <C>
Dividends $ 763 $ - $ - $ 88,879
Expenses
Mortality and Expense Risk Charges and Administrative Fees (Note 6) (4,005) (304) (19,842) (19,379)
---------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (3,242) (304) (19,842) 69,500
---------------------------------------------------------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales 166,596 24,638 1,100,494 11,537,061
Cost of Securities Sold 160,789 24,197 962,581 11,537,061
---------------------------------------------------------
Net Gain (Loss) 5,807 441 137,913 -
Capital Gain Distributions Received 3,616 - 13,702 -
---------------------------------------------------------
NET REALIZED GAIN (LOSS) 9,423 441 151,615 -
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period 5,115 284 47,984 -
End of Period 66,445 6,878 1,467,017 -
---------------------------------------------------------
NET UNREALIZED GAIN (LOSS) 61,330 6,594 1,419,033 -
---------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 67,511 $ 6,731 $ 1,550,806 $ 69,500
=========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------
------------------------------------------------------------------
AST-T.
AST-Neuberger AST-Neuberger Rowe Price
& Berman & Berman AST-Federated Asset
Midcap Value Midcap Growth High Yield Allocation
------------------------------------------------------------------
INVESTMENT INCOME:
Income
<S> <C> <C> <C> <C>
Dividends $ 1,111 $ - $ 4,034 $ 1,341
Expenses
Mortality and Expense Risk Charges and Administrative Fees (Note 6) (1,219) (1,125) (2,985) (1,295)
-------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (108) (1,125) 1,049 46
-------------------------------------------------------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales 269,759 67,778 936,952 54,648
Cost of Securities Sold 282,916 62,719 946,380 52,389
-------------------------------------------------------
Net Gain (Loss) (13,157) 5,059 (9,428) 2,259
Capital Gain Distributions Received 982 3,144 355 19
-------------------------------------------------------
NET REALIZED GAIN (LOSS) (12,175) 8,203 (9,073) 2,278
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period 1,610 4,007 709 306
End of Period 17,291 113,016 4,070 13,540
-------------------------------------------------------
NET UNREALIZED GAIN (LOSS) 15,681 109,009 3,361 13,234
-------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 3,398 $ 116,087 $ (4,663) $ 15,558
=======================================================
- ------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------
-----------------------------------------------------------------
AST-T. AST-T. AST-T. AST-T.
Rowe Price Rowe Price Rowe Price Rowe Price
International International Natural Small
Bond Equity Resources Company Value
----------------------------------------------------------------
INVESTMENT INCOME:
Income
<S> <C> <C> <C> <C>
Dividends $ 950 $ - $ 184 $ 292
Expenses
Mortality and Expense Risk Charges and Administrative Fees (Note 6) (119) (206) (339) (858)
---------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 831 (206) (155) (566)
---------------------------------------------------------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales 14,026 271,684 290,585 1,302,962
Cost of Securities Sold 16,098 268,340 285,614 1,301,479
---------------------------------------------------------
Net Gain (Loss) (2,072) 3,344 4,971 1,483
Capital Gain Distributions Received 305 - 1,515 -
---------------------------------------------------------
NET REALIZED GAIN (LOSS) (1,767) 3,344 6,486 1,483
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period 591 - (131) 630
End of Period 40 11,355 (756) 3,427
---------------------------------------------------------
NET UNREALIZED GAIN (LOSS) (551) 11,355 (625) 2,797
---------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (1,487) $ 14,493 $ 5,706 $ 3,714
=========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------
------------------------------------------------------------------
AST-PIMCO AST-PIMCO Limited AST-INVESCO
AST-Janus Total Maturity Equity
Small Cap Growth Return Bond Bond Income
------------------------------------------------------------------
INVESTMENT INCOME:
Income
<S> <C> <C> <C> <C>
Dividends $ - $ 8,853 $ 3,812 $ 1,786
Expenses
Mortality and Expense Risk Charges and Administrative Fees (Note 6) (3,100) (5,596) (5,388) (3,123)
----------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (3,100) 3,257 (1,576) (1,337)
----------------------------------------------------------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales 398,426 826,933 281,920 20,315
Cost of Securities Sold 344,292 845,343 282,053 19,268
----------------------------------------------------------
Net Gain (Loss) 54,134 (18,410) (133) 1,047
Capital Gain Distributions Received - 6,539 - 2,769
----------------------------------------------------------
NET REALIZED GAIN (LOSS) 54,134 (11,871) (133) 3,816
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period 64 (102) 40 2,780
End of Period 641,965 2,269 13,073 26,706
----------------------------------------------------------
NET UNREALIZED GAIN (LOSS) 641,901 2,371 13,033 23,926
----------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 692,935 $ (6,243) $ 11,324 $ 26,405
==========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------
----------------------------------------------------------------
AST - AST-American AST-American
Oppenheimer AST-Janus Century Century
Large-Cap Overseas Strategic International
Growth Growth Balanced Growth
----------------------------------------------------------------
INVESTMENT INCOME:
Income
<S> <C> <C> <C> <C>
Dividends $ - $ - $ 18 $ -
Expenses
Mortality and Expense Risk Charges and Administrative Fees (Note 6) (666) (4,321) (866) (532)
-------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (666) (4,321) (848) (532)
-------------------------------------------------------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales 17,203 624,332 19,622 717,465
Cost of Securities Sold 13,941 518,913 19,031 683,656
-------------------------------------------------------
Net Gain (Loss) 3,262 105,419 591 33,809
Capital Gain Distributions Received 762 - - 211
-------------------------------------------------------
NET REALIZED GAIN (LOSS) 4,024 105,419 591 34,020
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period 536 8,726 109 595
End of Period 64,908 432,071 18,724 15,664
-------------------------------------------------------
NET UNREALIZED GAIN (LOSS) 64,372 423,345 18,615 15,069
-------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 67,730 $ 524,443 $ 18,358 $ 48,557
=======================================================
- ------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------
-----------------------------------------------------------------
AST-Kemper
AST-Cohen & AST-Bankers Small Cap
AST-Marsico Steers Trust Jan. 4* thru
Capital Growth Realty Enhanced 500 Dec. 31, 1999
-----------------------------------------------------------------
INVESTMENT INCOME:
Income
<S> <C> <C> <C> <C>
Dividends $ 189 $ 94 $ 98 $ -
Expenses
Mortality and Expense Risk Charges and Administrative Fees (Note 6) (9,420) (224) (3,813) (25)
---------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (9,231) (130) (3,715) (25)
---------------------------------------------------------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales 672,797 14,292 153,939 17,126
Cost of Securities Sold 586,132 14,575 152,658 12,634
---------------------------------------------------------
Net Gain (Loss) 86,665 (283) 1,281 4,492
Capital Gain Distributions Received 226 - 664 -
---------------------------------------------------------
NET REALIZED GAIN (LOSS) 86,891 (283) 1,945 4,492
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period 25,284 94 1,569 -
End of Period 743,008 1,684 147,293 1,404
---------------------------------------------------------
NET UNREALIZED GAIN (LOSS) 717,724 1,590 145,724 1,404
---------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 795,384 $ 1,177 $ 143,954 $ 5,871
=========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------
---------------------------------------------------------------------
AST-MFS AST-MFS
Growth Growth & Income
Oct. 18* thru Oct. 18* thru AST-Founders AAF
Dec. 31, 1999 Dec. 31, 1999 Passport Growth
---------------------------------------------------------------------
INVESTMENT INCOME:
Income
<S> <C> <C> <C> <C>
Dividends $ - $ - $ - $ 142
Expenses
Mortality and Expense Risk Charges and Administrative Fees (Note 6) (7) (2) (69) (4,266)
----------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (7) (2) (69) (4,124)
----------------------------------------------------------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales 79 1 27,883 154,238
Cost of Securities Sold 75 1 22,512 148,590
----------------------------------------------------------
Net Gain (Loss) 4 - 5,371 5,648
Capital Gain Distributions Received - - - 9,717
----------------------------------------------------------
NET REALIZED GAIN (LOSS) 4 - 5,371 15,365
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period - - - 7,016
End of Period 2,365 293 25,093 220,849
----------------------------------------------------------
NET UNREALIZED GAIN (LOSS) 2,365 293 25,093 213,833
----------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 2,362 $ 291 $ 30,395 $ 225,074
==========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------
-----------------------------------------------------------------
INVESCO VIF INVESCO VIF
INVESCO VIF Financial Tele-
Technology Services communications
AAF Oct. 18* thru Oct. 18* thru Oct. 18* thru
Midcap Growth Dec. 31, 1999 Dec. 31, 1999 Dec. 31, 1999
-----------------------------------------------------------------
INVESTMENT INCOME:
Income
<S> <C> <C> <C> <C>
Dividends $ - $ - $ - $ -
Expenses
Mortality and Expense Risk Charges and Administrative Fees (Note 6) (1,253) (33) (3) (4)
---------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (1,253) (33) (3) (4)
---------------------------------------------------------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales 76,711 7,926 360 256
Cost of Securities Sold 79,711 6,424 384 194
---------------------------------------------------------
Net Gain (Loss) (3,000) 1,502 (24) 62
Capital Gain Distributions Received 3,565 - - -
---------------------------------------------------------
NET REALIZED GAIN (LOSS) 565 1,502 (24) 62
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period - - - -
End of Period 98,673 25,574 210 4,283
---------------------------------------------------------
NET UNREALIZED GAIN (LOSS) 98,673 25,574 210 4,283
---------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 97,985 $ 27,043 $ 183 $ 4,341
=========================================================
- ------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------
---------------------------------------------------------------------
INVESCO INVESCO
VIF Health Sciences VIF Dynamics Montgomery
Oct. 18* thru Oct. 18* thru Emerging
Dec. 31, 1999 Dec. 31, 1999 Markets
---------------------------------------------------------------------
INVESTMENT INCOME:
Income
<S> <C> <C> <C>
Dividends $ - $ - $ 5
Expenses
Mortality and Expense Risk Charges and Administrative Fees (Note 6) (15) (7) (164)
-------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (15) (7) (159)
-------------------------------------------------------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales 166,592 17,700 25,032
Cost of Securities Sold 167,862 17,502 22,475
-------------------------------------------------------
Net Gain (Loss) (1,270) 198 2,557
Capital Gain Distributions Received 3 4 -
-------------------------------------------------------
NET REALIZED GAIN (LOSS) (1,267) 202 2,557
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period - - -
End of Period 424 1,841 10,798
-------------------------------------------------------
NET UNREALIZED GAIN (LOSS) 424 1,841 10,798
-------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (858) $ 2,036 $ 13,196
=======================================================
- ------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT F
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
AST - AIM International
- -----------------------------------------------------------------------------------------------------------------------------------
Total Equity Portfolio
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ 15,648 $ (2,480) $ (608) $ (82)
Net Realized Gain (Loss) 519,209 141 50,035 (8)
Net Unrealized Gain (Loss) On Investments 4,183,388 113,235 16,373 4,520
--------- ------- ------ -----
Net Increase (Decrease) In Net Assets Resulting
From Operations 4,718,245 110,896 65,800 4,430
--------- ------- ------ -----
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 35,637 1,188,246 35,637 22,372
Net Transfers Between Sub-accounts - - - -
Surrenders 122,464 (4,132) 122,464 (75)
------- ------ ------- ---
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 158,101 1,184,114 158,101 22,297
------- --------- ------- ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,876,346 1,295,010 223,901 26,727
--------- --------- ------- ------
NET ASSETS:
Beginning of Period 1,295,010 - 26,727 -
--------- ------
End of Period $ 6,171,356 $ 1,295,010 $ 250,628 $ 26,727
=========== =========== ========= ========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - AIM Balanced AST - American Century
Portfolio Income & Growth
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (825) $ (6) $ (897) $ (35)
Net Realized Gain (Loss) (366) 1 1,900 -
Net Unrealized Gain (Loss) On Investments 32,518 212 40,818 687
------ --- ------ ---
Net Increase (Decrease) In Net Assets Resulting
From Operations 31,327 207 41,821 652
------ --- ------ ---
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 184,679 1,019 160,648 7,500
Net Transfers Between Sub-accounts - - - -
Surrenders 89,789 2,795 418,921 (32)
------ ----- ------- ---
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 274,468 3,814 579,569 7,468
------- ----- ------- -----
TOTAL INCREASE (DECREASE) IN NET ASSETS 305,795 4,021 621,390 8,120
------- ----- ------- -----
NET ASSETS:
Beginning of Period 4,021 - 8,120 -
----- -----
End of Period $ 309,816 $ 4,021 $ 629,510 $ 8,120
========= ======= ========= =======
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - Lord Abbett AST - Lord Abbett
Growth & Income Small Cap Value
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (3,242) $ (119) $ (304) $ (56)
Net Realized Gain (Loss) 9,423 11 441 (18)
Net Unrealized Gain (Loss) On Investments 61,330 5,115 6,594 284
------ ----- ----- ---
Net Increase (Decrease) In Net Assets Resulting
From Operations 67,511 5,007 6,731 210
------ ----- ----- ---
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 575,012 24,411 46,463 11,500
Net Transfers Between Sub-accounts - - - -
Surrenders 543,676 31,555 25,242 (44)
------- ------ ------ ---
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 1,118,688 55,966 71,705 11,456
--------- ------ ------ ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,186,199 60,973 78,436 11,666
--------- ------ ------ ------
NET ASSETS:
Beginning of Period 60,973 - 11,666 -
------ ------
End of Period $ 1,247,172 $ 60,973 $ 90,102 $ 11,666
=========== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST AST
JanCap Growth Money Market
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (19,842) $ (940) $ 69,500 $ 603
Net Realized Gain (Loss) 151,615 (23) - -
Net Unrealized Gain (Loss) On Investments 1,419,033 47,984 - -
--------- ------
Net Increase (Decrease) In Net Assets Resulting
From Operations 1,550,806 47,021 69,500 603
--------- ------ ------ ---
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 2,106,542 243,116 16,273,464 361,161
Net Transfers Between Sub-accounts - - - -
Surrenders 3,610,343 11,709 (11,984,872) (330,240)
--------- ------ ----------- --------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 5,716,885 254,825 4,288,592 30,921
--------- ------- --------- ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 7,267,691 301,846 4,358,092 31,524
--------- ------- --------- ------
NET ASSETS:
Beginning of Period 301,846 - 31,524 -
------- ------
End of Period $ 7,569,537 $ 301,846 $ 4,389,616 $ 31,524
=========== ========= =========== ========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - Neuberger & Berman AST - Neuberger & Berman
Midcap Value Midcap Growth
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (108) $ (93) $ (1,125) $ (44)
Net Realized Gain (Loss) (12,175) (10) 8,203 (5)
Net Unrealized Gain (Loss) On Investments 15,681 1,610 109,009 4,007
------ ----- ------- -----
Net Increase (Decrease) In Net Assets Resulting
From Operations 3,398 1,507 116,087 3,958
----- ----- ------- -----
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 173,443 19,250 136,608 15,580
Net Transfers Between Sub-accounts - - - -
Surrenders 68,136 19,821 201,212 19,864
------ ------ ------- ------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 241,579 39,071 337,820 35,444
------- ------ ------- ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 244,977 40,578 453,907 39,402
------- ------ ------- ------
NET ASSETS:
Beginning of Period 40,578 - 39,402 -
------ ------
End of Period $ 285,555 $ 40,578 $ 493,309 $ 39,402
========= ======== ========= ========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - Federated AST - T. Rowe Price
High Yield Asset Allocation
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ 1,049 $ (61) $ 46 $ (7)
Net Realized Gain (Loss) (9,073) 2 2,278 -
Net Unrealized Gain (Loss) On Investments 3,361 709 13,234 306
----- --- ------ ---
Net Increase (Decrease) In Net Assets Resulting
From Operations (4,663) 650 15,558 299
------ --- ------ ---
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 322,899 50,634 102,551 7,500
Net Transfers Between Sub-accounts - - - -
Surrenders 229,080 (74) 123,775 (63)
------- --- ------- ---
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 551,979 50,560 226,326 7,437
------- ------ ------- -----
TOTAL INCREASE (DECREASE) IN NET ASSETS 547,316 51,210 241,884 7,736
------- ------ ------- -----
NET ASSETS:
Beginning of Period 51,210 - 7,736 -
------ -----
End of Period $ 598,526 $ 51,210 $ 249,620 $ 7,736
========= ======== ========= =======
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - T. Rowe Price AST - T. Rowe Price
International Bond International Equity
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Apr. 15* thru
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C>
Net Investment Income (Loss) $ 831 $ (41) $ (206)
Net Realized Gain (Loss) (1,767) 1 3,344
Net Unrealized Gain (Loss) On Investments (551) 591 11,355
---- --- ------
Net Increase (Decrease) In Net Assets Resulting
From Operations (1,487) 551 14,493
------ --- ------
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 57 14,873 30,103
Net Transfers Between Sub-accounts - - -
Surrenders (5,273) (39) 29,177
------ --- ------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions (5,216) 14,834 59,280
------ ------ ------
TOTAL INCREASE (DECREASE) IN NET ASSETS (6,703) 15,385 73,773
------ ------ ------
NET ASSETS:
Beginning of Period 15,385 - -
------
End of Period $ 8,682 $ 15,385 $ 73,773
======= ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - T. Rowe Price AST - T. Rowe Price
Natural Resources Small Company Value
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (155) $ (53) $ (566) $ (29)
Net Realized Gain (Loss) 6,486 1 1,483 -
Net Unrealized Gain (Loss) On Investments (625) (131) 2,797 630
---- ---- ----- ---
Net Increase (Decrease) In Net Assets Resulting
From Operations 5,706 (183) 3,714 601
----- ---- ----- ---
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 21,568 12,121 38,295 2,500
Net Transfers Between Sub-accounts - - - -
Surrenders 14,961 68 78,616 28,821
------ -- ------ ------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 36,529 12,189 116,911 31,321
------ ------ ------- ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 42,235 12,006 120,625 31,922
------ ------ ------- ------
NET ASSETS:
Beginning of Period 12,006 - 31,922 -
------ ------
End of Period $ 54,241 $ 12,006 $ 152,547 $ 31,922
======== ======== ========= ========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
* Date Operations Commenced.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - Janus AST - PIMCO
Small Cap Growth Total Return Bond
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (3,100) $ (22) $ 3,257 $ (50)
Net Realized Gain (Loss) 54,134 (5) (11,871) (1)
Net Unrealized Gain (Loss) On Investments 641,901 64 2,371 (102)
------- -- ----- ----
Net Increase (Decrease) In Net Assets Resulting
From Operations 692,935 37 (6,243) (153)
------- -- ------ ----
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 474,440 4,000 411,251 24,874
Net Transfers Between Sub-accounts - - - -
Surrenders 781,328 (15) 443,317 (50)
------- --- ------- ---
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 1,255,768 3,985 854,568 24,824
--------- ----- ------- ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,948,703 4,022 848,325 24,671
--------- ----- ------- ------
NET ASSETS:
Beginning of Period 4,022 - 24,671 -
----- ------
End of Period $ 1,952,725 $ 4,022 $ 872,996 $ 24,671
=========== ======= ========= ========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
* Date Operations Commenced.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - PIMCO Limited AST - INVESCO
Maturity Bond Equity Income
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (1,576) $ (53) $ (1,337) $ (55)
Net Realized Gain (Loss) (133) - 3,816 1
Net Unrealized Gain (Loss) On Investments 13,033 40 23,926 2,780
------ -- ------ -----
Net Increase (Decrease) In Net Assets Resulting
From Operations 11,324 (13) 26,405 2,726
------ --- ------ -----
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 824,393 33,954 355,509 14,357
Net Transfers Between Sub-accounts - - - -
Surrenders 120,802 (58) 382,501 60,174
------- --- ------- ------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 945,195 33,896 738,010 74,531
------- ------ ------- ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 956,519 33,883 764,415 77,257
------- ------ ------- ------
NET ASSETS:
Beginning of Period 33,883 - 77,257 -
------ ------
End of Period $ 990,402 $ 33,883 $ 841,672 $ 77,257
========= ======== ========= ========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - Oppenheimer AST - Janus
Large-Cap Growth Overseas Growth
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (666) $ (36) $ (4,321) $ (153)
Net Realized Gain (Loss) 4,024 (3) 105,419 (22)
Net Unrealized Gain (Loss) On Investments 64,372 536 423,345 8,726
------ --- ------- -----
Net Increase (Decrease) In Net Assets Resulting
From Operations 67,730 497 524,443 8,551
------ --- ------- -----
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 165,636 6,000 397,728 41,825
Net Transfers Between Sub-accounts - - - -
Surrenders 79,855 (24) 479,014 71,451
------ --- ------- ------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 245,491 5,976 876,742 113,276
------- ----- ------- -------
TOTAL INCREASE (DECREASE) IN NET ASSETS 313,221 6,473 1,401,185 121,827
------- ----- --------- -------
NET ASSETS:
Beginning of Period 6,473 - 121,827 -
----- -------
End of Period $ 319,694 $ 6,473 $ 1,523,012 $ 121,827
========= ======= =========== =========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - American Century AST - American Century
Strategic Balanced International Growth
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (848) $ (2) $ (532) $ (37)
Net Realized Gain (Loss) 591 - 34,020 (9)
Net Unrealized Gain (Loss) On Investments 18,615 109 15,069 595
------ --- ------ ---
Net Increase (Decrease) In Net Assets Resulting
From Operations 18,358 107 48,557 549
------ --- ------ ---
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 151,426 1,743 53,185 7,500
Net Transfers Between Sub-accounts - - - -
Surrenders 136,019 236 (14,766) 19,859
------- --- ------- ------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 287,445 1,979 38,419 27,359
------- ----- ------ ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 305,803 2,086 86,976 27,908
------- ----- ------ ------
NET ASSETS:
Beginning of Period 2,086 - 27,908 -
----- ------
End of Period $ 307,889 $ 2,086 $ 114,884 $ 27,908
========= ======= ========= ========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - Marsico AST - Cohen & Steers
Capital Growth Realty
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Jun. 26* thru Year Ended Oct. 15* thru
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (9,231) $ (972) $ (130) $ (4)
Net Realized Gain (Loss) 86,891 (719) (283) -
Net Unrealized Gain (Loss) On Investments 717,724 25,284 1,590 94
------- ------ ----- --
Net Increase (Decrease) In Net Assets Resulting
From Operations 795,384 23,593 1,177 90
------- ------ ----- --
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 1,322,074 211,055 16,286 1,890
Net Transfers Between Sub-accounts - - - -
Surrenders 1,438,822 63,788 26,121 115
--------- ------ ------ ---
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 2,760,896 274,843 42,407 2,005
--------- ------- ------ -----
TOTAL INCREASE (DECREASE) IN NET ASSETS 3,556,280 298,436 43,584 2,095
--------- ------- ------ -----
NET ASSETS:
Beginning of Period 298,436 - 2,095 -
------- -----
End of Period $ 3,854,716 $ 298,436 $ 45,679 $ 2,095
=========== ========= ======== =======
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - Bankers Trust AST - Kemper AST - MFS
Enhanced 500 Small Cap Growth
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Oct. 29* thru Jan. 4* thru Oct. 18* thru
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (3,715) $ (41) $ (25) $ (7)
Net Realized Gain (Loss) 1,945 940 4,492 4
Net Unrealized Gain (Loss) On Investments 145,724 1,569 1,404 2,365
------- ----- ----- -----
Net Increase (Decrease) In Net Assets Resulting
From Operations 143,954 2,468 5,871 2,362
------- ----- ----- -----
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 524,687 20,388 5,911 -
Net Transfers Between Sub-accounts - - - -
Surrenders 1,102,793 (3,600) 3,739 24,458
--------- ------ ----- ------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 1,627,480 16,788 9,650 24,458
--------- ------ ----- ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,771,434 19,256 15,521 26,820
--------- ------ ------ ------
NET ASSETS:
Beginning of Period 19,256 - - -
------
End of Period $ 1,790,690 $ 19,256 $ 15,521 $ 26,820
=========== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AST - MFS AST - Founders AAF
Growth & Income Passport Growth
- -----------------------------------------------------------------------------------------------------------------------------------
Oct. 18* thru Mar. 18* thru Year Ended Jun. 26* thru
Dec. 31, 1999 Dec. 31, 1999 Dec. 31, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (2) $ (69) $ (4,124) $ (92)
Net Realized Gain (Loss) - 5,371 15,365 7
Net Unrealized Gain (Loss) On Investments 293 25,093 213,833 7,016
--- ------ ------- -----
Net Increase (Decrease) In Net Assets Resulting
From Operations 291 30,395 225,074 6,931
--- ------ ------- -----
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 1,390 14,334 840,338 27,123
Net Transfers Between Sub-accounts - - - -
Surrenders 12,006 89,887 599,050 (74)
------ ------ ------- ---
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 13,396 104,221 1,439,388 27,049
------ ------- --------- ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 13,687 134,616 1,664,462 33,980
------ ------- --------- ------
NET ASSETS:
Beginning of Period - - 33,980 -
------
End of Period $ 13,687 $ 134,616 $ 1,698,442 $ 33,980
======== ========= =========== ========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AAF - MidCap INVESCO INVESCO INVESCO
Growth VIF Technology VIF Financial ServiVIF Telecommunications
- -----------------------------------------------------------------------------------------------------------------------------------
Mar. 18* thru Oct. 18* thru Oct. 18* thru Oct. 18* thru
Dec. 31, 1999 Dec. 31, 1999 Dec. 31, 1999 Dec. 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (1,253) $ (33) $ (3) $ (4)
Net Realized Gain (Loss) 565 1,502 (24) 62
Net Unrealized Gain (Loss) On Investments 98,673 25,574 210 4,283
------ ------ --- -----
Net Increase (Decrease) In Net Assets Resulting
From Operations 97,985 27,043 183 4,341
------ ------ --- -----
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 533,286 27,734 16,465 1,363
Net Transfers Between Sub-accounts - - - -
Surrenders 203,169 110,040 3,787 49,235
------- ------- ----- ------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 736,455 137,774 20,252 50,598
------- ------- ------ ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 834,440 164,817 20,435 54,939
------- ------- ------ ------
NET ASSETS:
Beginning of Period - - - -
End of Period $ 834,440 $ 164,817 $ 20,435 $ 54,939
========= ========= ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
* Date Operations Commenced.
- -----------------------------------------------------------------------------------------------------------------------------------
INVESCO INVESCO Montgomery
VIF Health ScienceVIF Dynamics Emerging Markets
- -----------------------------------------------------------------------------------------------------------------------------------
Oct. 18* thru Oct. 18* thru Mar. 18* thru
Dec. 31, 1999 Dec. 31, 1999 Dec. 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
<S> <C> <C> <C>
Net Investment Income (Loss) $ (15) $ (7) $ (159)
Net Realized Gain (Loss) (1,267) 202 2,557
Net Unrealized Gain (Loss) On Investments 424 1,841 10,798
--- ----- ------
Net Increase (Decrease) In Net Assets Resulting
From Operations (858) 2,036 13,196
---- ----- ------
CAPITAL SHARE TRANSACTIONS:
Transfers of Life VLI Fund Deposits 16,103 224 29,118
Net Transfers Between Sub-accounts - - -
Surrenders 4,007 20,871 11,482
----- ------ ------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions 20,110 21,095 40,600
------ ------ ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 19,252 23,131 53,796
------ ------ ------
NET ASSETS:
Beginning of Period - - -
End of Period $ 19,252 $ 23,131 $ 53,796
======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
* Date Operations Commenced.
- -------------------------------------------------------------------------------
<PAGE>
American Skandia Life Assurance Corporation
Variable Account F
Notes to Financial Statements
December 31, 1999
- --------------------------------------------------------------------------------
1. ORGANIZATION
American Skandia Life Assurance Corporation Variable Account F (the
"Account") is a separate investment account of American Skandia Life
Assurance Corporation ("American Skandia" or "Company"). The Account is
registered with the SEC under the Investment Company Act of 1940 as a unit
investment trust. The Account commenced operations June 25, 1998.
As of December 31, 1999, the Account consisted of forty-two sub-accounts.
These financial statements report on all forty-two sub-accounts offered in
American Skandia's AS Trophy Single Premium Variable Life Insurance
Product. Each of the forty-two sub-accounts invests only in a single
corresponding portfolio of either The Alger American Fund, American Skandia
Trust, or Montgomery Variable Series (the "Trusts"). Fred Alger Management,
Inc. is the advisor for The Alger American Fund. American Skandia
Investments Services, Incorporated, an affiliate, is the investment manager
for the American Skandia Trust, while AIM Capital Management, Inc., Lord
Abbett & Co., Janus Capital Corporation, J.P. Morgan Inc., Neuberger Berman
Management, Incorporated, Federated Investment Counseling, T. Rowe Price
Associates, Inc., Rowe Price-Fleming International, Inc., Founders Asset
Management, LLC, Pacific Investment Management Company, INVESCO Funds Group
Inc., OpphenheimerFunds, Inc., American Century Investments Management,
Inc., Marsico Capital Management, LLC, Cohen & Steers Capital Management,
Inc., and Bankers Trust Company are the subadvisors. Montgomery Asset
Management L.P. is the investment advisor for the Montgomery Variable
Series.
The investment advisors are paid fees for their services by the respective
Trusts.
American Skandia's AS Trophy Single Premium Variable Life Insurance Policy
is marketed through American Skandia Marketing, Inc., an affiliate.
During 1999, the following sub-accounts incurred a name change: AST AIM
International Equity (formerly AST Putnam International Equity); AST AIM
Balanced (formerly AST Putnam Balanced); AST Janus Small Cap Growth
(formerly AST Founders Capital Appreciation) and AST American Century
Income & Growth (formerly AST Putnam Growth & Income).
2. VALUATION OF INVESTMENTS
The market value of the investments in the sub-accounts is based on the net
asset values of the Trust shares held at the end of the current period.
Transactions are accounted for on the trade date and dividend income is
recognized on an accrual basis. Realized gains and losses on sales of
investments are determined on a first-in first-out basis.
3. ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires that management make estimates and
assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from
those estimates.
4. INCOME TAXES
American Skandia does not expect to incur any federal income tax liability
on earnings, or realized capital gains attributable to the Account;
therefore, no charges for federal income taxes are currently deducted from
the Account. If American Skandia incurs income taxes attributable to the
Account, or determines that such taxes will be incurred, it may make a
charge for such taxes against the Account.
Under current laws, American Skandia may incur state and local income taxes
(in addition to premium tax) in several states. The Company does not
anticipate that these will be significant. However, American Skandia may
make charges to the Account in the event that the amount of these taxes
changes.
5. DIVERSIFICATION REQUIREMENTS
Section 817(h) of the Internal Revenue Code provides that a variable
annuity contract, in order to qualify as an annuity, must have an
"adequately diversified" segregated asset account (including investments
in a mutual fund by the segregated asset account of the insurance
companies). If the diversification requirements under the Internal Revenue
Code are not met and the annuity is not treated as an annuity, the
taxpayer will be subject to income tax on the annual gain in the contract.
The Treasury Department's regulations prescribe the diversification
requirements for variable annuity contracts. The Company believes the
underlying mutual fund portfolios complied with the terms of these
regulations.
6. CONTRACT CHARGES
The following contract charges are paid to American Skandia, which provides
administrative services to the Account:
Mortality and Expense Risk Charges - Charged daily against the Account at
an annual rate of .90% of the net assets.
Administrative Fees - Charged daily against the Account at an annual rate
of .15% of the net assets.
Contingent Deferred Sales Charges are computed as set forth in the American
Skandia's AS Trophy Single Premium Variable Life Insurance Policy
prospectus.
7. YEAR 2000 COMPLIANCE (UNAUDITED)
The Company's computer support is provided by its affiliate American
Skandia Information Services and Technology Corporation.
The Company has experienced no significant errors or disruptions in
computer service, interfaces with computer systems of investment manager,
sub-advisors, third party administrators, vendors and other business
partners on or after January 1, 2000.
American Skandia engaged external information technology specialists to
review the operating systems and internally developed software. The costs
associated with these assessments and Year 2000 related remediation were
allocated across the American Skandia Group. No cost were allocated to the
Separate Accounts.
American Skandia continues to review new and existing systems and has
contingency plans in place as part of its Business Continuity Plan. The
plan involves virtually all aspects of the business and will continue to be
a focus of management beyond the Year 2000 event.
<PAGE>
<TABLE>
<CAPTION>
APPENDIX A-1
MULTIPLE FACTORS FOR DETERMINATION OF MINIMUM REQUIRED DEATH BENEFITS -
CASH VALUE ACCUMULATION TEST
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Attained Male Male Female Female Unisex Unisex
Age No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
0 10.342889 10.342889 12.907301 12.907301 10.762146 10.762146
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
1 10.190317 10.190317 12.688989 12.688989 10.599529 10.599529
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
2 9.889919 9.889919 12.319258 12.319258 10.287454 10.287454
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
3 9.592070 9.592070 11.951280 11.951280 9.977856 9.977856
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
4 9.298905 9.298905 11.588414 11.588414 9.673048 9.673048
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
5 9.009218 9.009218 11.232252 11.232252 9.372522 9.372522
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
6 8.722792 8.722792 10.881891 10.881891 9.075163 9.075163
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
7 8.440163 8.440163 10.537673 10.537673 8.782254 8.782254
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
8 8.161817 8.161817 10.199897 10.199897 8.494209 8.494209
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
9 7.889296 7.889296 9.869720 9.869720 8.212001 8.212001
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
10 7.623823 7.623823 9.547222 9.547222 7.936973 7.936973
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
11 7.366338 7.366338 9.232460 9.232460 7.670163 7.670163
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
12 7.118866 7.118866 8.927638 8.927638 7.413309 7.413309
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
13 6.882900 6.882900 8.633085 8.633085 7.167689 7.167689
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
14 6.659106 6.659106 8.348988 8.348988 6.934195 6.934195
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
15 6.447167 6.447167 8.075417 8.075417 6.712623 6.712623
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
16 7.714038 6.246384 8.883289 7.811801 7.921276 6.501967
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
17 7.490087 6.067088 8.601262 7.562175 7.687332 6.311944
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
18 7.274451 5.895022 8.327973 7.321069 7.461892 6.129616
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
19 7.065283 5.728835 8.063091 7.088069 7.243510 5.953228
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
20 6.861458 5.567128 7.806305 6.861967 7.030541 5.781887
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
21 6.661653 5.408986 7.556813 6.642537 6.822445 5.614310
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
22 6.464794 5.253425 7.314421 6.429210 6.617636 5.449947
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
23 6.270710 5.099656 7.078500 6.222172 6.416275 5.287891
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
24 6.079284 4.947868 6.849350 6.021229 6.218176 5.128299
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
25 5.890750 4.797861 6.626794 5.826195 6.023827 4.971113
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
26 5.705040 4.649678 6.410659 5.636893 5.832763 4.816305
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
27 5.522898 4.504032 6.201109 5.453650 5.645711 4.664576
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
28 5.344683 4.361348 5.997622 5.275991 5.462995 4.516156
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
29 5.170680 4.221963 5.800329 5.103941 5.284868 4.371380
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
30 5.001105 4.086269 5.609297 4.937480 5.111516 4.230639
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
31 4.836116 3.954433 5.424047 4.776558 4.942867 4.093959
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
32 4.675997 3.826566 5.244630 4.620750 4.779217 3.961457
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
33 4.520775 3.702732 5.070836 4.470011 4.620597 3.833199
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
34 4.370595 3.583042 4.902664 4.324416 4.467161 3.709205
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
35 4.225394 3.467465 4.740074 4.183848 4.318842 3.589457
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
36 4.085086 3.356021 4.582997 4.048174 4.175553 3.473994
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
37 3.949567 3.248690 4.431647 3.917840 4.037186 3.362809
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
38 3.818941 3.145553 4.285998 3.792813 3.903851 3.256004
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
39 3.693040 3.046504 4.145845 3.673016 3.775375 3.153477
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
40 3.571693 2.951476 4.010977 3.558241 3.651580 3.055167
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
41 3.454900 2.860428 3.881415 3.448537 3.532470 2.960982
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
42 3.342458 2.773184 3.756910 3.343648 3.417834 2.870806
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
43 3.234168 2.689611 3.637120 3.243173 3.307466 2.784401
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
44 3.129908 2.609564 3.521738 3.146753 3.201166 2.701638
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
45 3.029541 2.532930 3.410485 3.054066 3.098808 2.622372
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
46 2.932983 2.459507 3.303261 2.964942 3.000319 2.546412
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
47 2.840076 2.389067 3.199881 2.879156 2.905488 2.473497
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
48 2.750661 2.321491 3.100233 2.796498 2.814220 2.403491
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
49 2.664621 2.256653 3.004132 2.716869 2.726358 2.336319
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
50 2.581834 2.194449 2.911514 2.640204 2.641788 2.271832
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
<PAGE>
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Attained Male Male Female Female Unisex Unisex
Age No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
51 2.502245 2.134813 2.822298 2.566383 2.560470 2.209991
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
52 2.425812 2.077736 2.736386 2.495279 2.482337 2.150759
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
53 2.352495 2.023195 2.653757 2.426909 2.407368 2.094123
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
54 2.282258 1.971184 2.574318 2.361224 2.335512 2.040066
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
55 2.215003 1.921607 2.497845 2.298000 2.266657 1.988478
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
56 2.150641 1.874323 2.424204 2.237060 2.200707 1.939204
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
57 2.089041 1.829175 2.353159 2.178160 2.137499 1.892074
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
58 2.030020 1.786005 2.284466 2.121004 2.076846 1.846923
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
59 1.973499 1.744664 2.217941 2.065411 2.018656 1.803579
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
60 1.919419 1.705054 2.153572 2.011322 1.962861 1.761947
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
61 1.867715 1.667166 2.091395 1.958834 1.909430 1.722035
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
62 1.818313 1.631023 2.031522 1.908128 1.858318 1.683884
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
63 1.771222 1.596648 1.974084 1.859457 1.809548 1.647549
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
64 1.726411 1.564046 1.919204 1.812975 1.763101 1.613050
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
65 1.683805 1.533171 1.866818 1.768643 1.718910 1.580343
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
66 1.643300 1.503897 1.816773 1.726291 1.676876 1.549291
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
67 1.604764 1.476075 1.768841 1.685679 1.636838 1.519731
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
68 1.568051 1.449538 1.722783 1.646485 1.598627 1.491460
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
69 1.533054 1.424158 1.678405 1.608508 1.562129 1.464331
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
70 1.499720 1.399895 1.635655 1.571688 1.527284 1.438291
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
71 1.468047 1.376751 1.594581 1.536120 1.494089 1.413350
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
72 1.438063 1.354779 1.555314 1.502053 1.462589 1.389586
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
73 1.409834 1.334059 1.518005 1.469679 1.432868 1.367099
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
74 1.383379 1.314626 1.482760 1.439131 1.404950 1.345937
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
75 1.358636 1.296498 1.449578 1.410430 1.378783 1.326116
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
76 1.335469 1.279631 1.418378 1.383477 1.354239 1.307580
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
77 1.313718 1.263864 1.388992 1.358100 1.331154 1.290152
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
78 1.293201 1.248999 1.361233 1.334088 1.309345 1.273628
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
79 1.273759 1.234861 1.334950 1.311271 1.288648 1.257826
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
80 1.255309 1.221364 1.310065 1.289565 1.268984 1.242660
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
81 1.237839 1.208496 1.286574 1.268966 1.250340 1.228120
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
82 1.221386 1.196307 1.264515 1.249510 1.232759 1.214254
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
83 1.206024 1.184882 1.243944 1.231249 1.216310 1.201144
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
84 1.191790 1.174263 1.224858 1.214302 1.201025 1.188858
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
85 1.178654 1.164403 1.207192 1.198599 1.186864 1.177349
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
86 1.166512 1.155169 1.190822 1.184011 1.173721 1.166496
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
87 1.155226 1.146356 1.175596 1.170379 1.161453 1.156126
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
88 1.144611 1.137856 1.161343 1.157508 1.149880 1.146117
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
89 1.134451 1.129578 1.147875 1.145194 1.138803 1.136350
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
90 1.124540 1.121277 1.134998 1.133196 1.128023 1.126599
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
91 1.114649 1.112675 1.122488 1.121417 1.117328 1.116680
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
92 1.104523 1.103442 1.110106 1.109599 1.106476 1.106325
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
93 1.093858 1.093346 1.097598 1.097460 1.095193 1.095309
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
94 1.082392 1.082252 1.084722 1.084722 1.083237 1.083449
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
95 1.070054 1.070054 1.071362 1.071362 1.070535 1.070696
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
96 1.057074 1.057074 1.057701 1.057701 1.057307 1.057384
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
97 1.044319 1.044319 1.044548 1.044548 1.044405 1.044433
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
98 1.034629 1.034629 1.034629 1.034629 1.034629 1.034629
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
99 1.025648 1.025648 1.025648 1.025648 1.025648 1.025648
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
</TABLE>
- --------------------------------------------------------------------------------
The Minimum Required Death Benefit under the Cash Value Accumulation Test is
determined by treating the Account Value as if it were a net single premium. We
determine the Minimum Required Death Benefit by multiplying the Account Value by
factors that are determined for your Policy as of the Policy Date. These factors
vary by the attained Age, gender (where permitted), tobacco usage class and risk
class of each Insured. The factors shown above are applicable for Insureds in
the preferred risk class. The factors for other risk classes are available upon
request. Factors for joint life cases depend upon a standard insurance industry
method used to derive the applicable factor for both Insureds.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
APPENDIX A-2
MULTIPLE FACTORS FOR DETERMINATION OF MINIMUM REQUIRED DEATH BENEFITS -
GUIDELINE PREMIUM TEST
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
Attained Corridor Attained Corridor Attained Female
Age Factors Age Factors Age No Tobacco Use
---------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
0 2.50 33 2.50 66 1.19
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
1 2.50 34 2.50 67 1.18
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
2 2.50 35 2.50 68 1.17
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
3 2.50 36 2.50 69 1.16
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
4 2.50 37 2.50 70 1.15
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
5 2.50 38 2.50 71 1.13
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
6 2.50 39 2.50 72 1.11
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
7 2.50 40 2.50 73 1.09
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
8 2.50 41 2.43 74 1.07
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
9 2.50 42 2.36 75 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
10 2.50 43 2.29 76 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
11 2.50 44 2.22 77 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
12 2.50 45 2.15 78 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
13 2.50 46 2.09 79 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
14 2.50 47 2.03 80 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
15 2.50 48 1.97 81 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
16 2.50 49 1.91 82 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
17 2.50 50 1.85 83 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
18 2.50 51 1.78 84 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
19 2.50 52 1.71 85 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
20 2.50 53 1.64 86 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
21 2.50 54 1.57 87 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
22 2.50 55 1.50 88 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
23 2.50 56 1.46 89 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
24 2.50 57 1.42 90 1.05
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
25 2.50 58 1.38 91 1.04
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
26 2.50 59 1.34 92 1.03
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
27 2.50 60 1.30 93 1.02
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
28 2.50 61 1.28 94 1.01
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
29 2.50 62 1.26 95 1.00
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
30 2.50 63 1.24 96 1.00
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
31 2.50 64 1.22 97 1.00
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
32 2.50 65 1.20 98 1.00
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
99 1.00
--------------- ---------------- ---------------- ---------------- ---------------- ----------------
</TABLE>
- --------------------------------------------------------------------------------
The Minimum Required Death Benefit under the Guideline Premium Test is
determined by treating the Account Value as if it were a net single premium. We
determine the Minimum Required Death Benefit by multiplying the Account Value by
a corridor factor. The corridor factors are based on the Insured's age at the
beginning of each Policy Year. The corridor factors do not vary by gender,
tobacco usage class or risk class of the Insured. Factors for joint life cases
are based upon the age of the younger Insured, regardless of whether the younger
Insured is alive.
- --------------------------------------------------------------------------------
<PAGE>
APPENDIX B
GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE CHARGES
(Per $1,000 of Net Amount at Risk)
<TABLE>
<CAPTION>
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Attained No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
0 N/A 0.21943 N/A 0.15680 N/A 0.20690
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
1 N/A 0.08587 N/A 0.07003 N/A 0.08254
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
2 N/A 0.08254 N/A 0.06669 N/A 0.07920
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
3 N/A 0.08087 N/A 0.06502 N/A 0.07753
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
4 N/A 0.07753 N/A 0.06419 N/A 0.07503
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
5 N/A 0.07336 N/A 0.06252 N/A 0.07086
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
6 N/A 0.06919 N/A 0.06085 N/A 0.06753
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
7 N/A 0.06502 N/A 0.05919 N/A 0.06419
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
8 N/A 0.06252 N/A 0.05835 N/A 0.06169
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
9 N/A 0.06169 N/A 0.05752 N/A 0.06085
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
10 N/A 0.06252 N/A 0.05668 N/A 0.06169
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
11 N/A 0.06753 N/A 0.05835 N/A 0.06586
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
12 N/A 0.07670 N/A 0.06085 N/A 0.07336
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
13 N/A 0.08921 N/A 0.06419 N/A 0.08421
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
14 N/A 0.10339 N/A 0.06836 N/A 0.09672
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
15 N/A 0.11841 N/A 0.07253 N/A 0.10923
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
16 0.12342 0.16348 0.07503 0.08421 0.11340 0.14762
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
17 0.13093 0.17517 0.07753 0.08838 0.12008 0.15847
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
18 0.13593 0.18435 0.08004 0.09255 0.12509 0.16598
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
19 0.13927 0.19020 0.08254 0.09505 0.12759 0.17183
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
20 0.14011 0.19354 0.08421 0.09755 0.12926 0.17433
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
21 0.13844 0.19354 0.08587 0.09922 0.12759 0.17517
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
22 0.13593 0.19020 0.08671 0.10172 0.12592 0.17266
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
23 0.13260 0.18686 0.08838 0.10423 0.12342 0.17016
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
24 0.12926 0.18185 0.09004 0.10673 0.12175 0.16682
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
25 0.12509 0.17600 0.09171 0.10923 0.11841 0.16265
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
26 0.12258 0.17266 0.09422 0.11340 0.11674 0.16098
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
27 0.12091 0.17099 0.09588 0.11674 0.11591 0.16014
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
28 0.12008 0.17099 0.09839 0.12091 0.11591 0.16098
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
29 0.12008 0.17350 0.10172 0.12592 0.11674 0.16432
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
30 0.12091 0.17767 0.10423 0.13176 0.11758 0.16849
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
31 0.12342 0.18352 0.10756 0.13677 0.12008 0.17433
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
32 0.12675 0.19103 0.11090 0.14261 0.12342 0.18185
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
33 0.13176 0.20106 0.11507 0.15012 0.12842 0.19103
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
34 0.13760 0.21275 0.12008 0.15847 0.13427 0.20189
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
35 0.14428 0.22695 0.12592 0.16765 0.14094 0.21525
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
36 0.15179 0.24366 0.13427 0.18185 0.14845 0.23113
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
37 0.16181 0.26455 0.14428 0.19855 0.15847 0.25118
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
38 0.17266 0.28796 0.15513 0.21776 0.16932 0.27375
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
39 0.18435 0.31471 0.16682 0.23865 0.18101 0.29966
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
40 0.19855 0.34566 0.18101 0.26372 0.19521 0.32893
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
41 0.21358 0.37912 0.19604 0.29046 0.21024 0.36155
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
42 0.22946 0.41595 0.21108 0.31722 0.22611 0.39586
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
43 0.24700 0.45614 0.22611 0.34398 0.24282 0.43353
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
44 0.26622 0.50054 0.24115 0.37076 0.26121 0.47457
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
45 0.28796 0.54748 0.25787 0.39921 0.28210 0.51814
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
46 0.31137 0.59612 0.27542 0.42851 0.30384 0.56257
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
47 0.33646 0.64898 0.29464 0.45866 0.32809 0.61038
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
48 0.36406 0.70607 0.31471 0.49133 0.35402 0.66325
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
49 0.39419 0.76824 0.33729 0.52736 0.38247 0.71951
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
50 0.42851 0.83718 0.36239 0.56592 0.41511 0.78253
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
51 0.46787 0.91543 0.39000 0.60702 0.45196 0.85316
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Attained No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
52 0.51311 1.00386 0.42181 0.65401 0.49468 0.93311
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
53 0.56509 1.10418 0.45698 0.70607 0.54329 1.02324
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
54 0.62296 1.21391 0.49300 0.75899 0.59696 1.12105
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
55 0.68759 1.33137 0.53155 0.81363 0.65653 1.22488
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
56 0.75815 1.45577 0.57012 0.86746 0.72035 1.33391
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
57 0.83297 1.58711 0.60786 0.91795 0.78757 1.44815
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
58 0.91627 1.72545 0.64562 0.96763 0.86157 1.56676
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
59 1.00976 1.87420 0.68843 1.02071 0.94405 1.69403
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
60 1.11430 2.04024 0.73883 1.08394 1.03757 1.83678
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
61 1.23080 2.22793 0.80102 1.16325 1.14299 1.99934
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
62 1.36520 2.43998 0.87840 1.26544 1.26544 2.18524
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
63 1.51760 2.67741 0.97353 1.38974 1.40497 2.39462
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
64 1.68724 2.93784 1.08057 1.52862 1.56083 2.62421
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
65 1.87335 3.21456 1.19617 1.67535 1.73224 2.86729
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
66 2.07519 3.50512 1.31615 1.82487 1.91589 3.12050
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
67 2.29201 3.80705 1.43883 1.96953 2.11100 3.37962
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
68 2.52819 4.12480 1.56592 2.11612 2.32278 3.64902
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
69 2.79077 4.47081 1.70761 2.27577 2.55733 3.94098
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
70 3.08860 4.85419 1.87420 2.46481 2.82343 4.26532
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
71 3.42980 5.28689 2.07775 2.70488 3.13085 4.63554
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
72 3.82530 5.77849 2.32791 2.99984 3.49040 5.06103
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
73 4.27493 6.32638 2.62850 3.35194 3.90095 5.53811
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
74 4.77159 6.93068 2.97572 3.75492 4.35708 6.06583
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
75 5.30544 7.58072 3.36491 4.19722 4.84979 6.63341
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
76 5.87269 8.25008 3.78793 4.66976 5.37438 7.21630
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
77 6.46947 8.92720 4.24349 5.16595 5.92694 7.80753
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
78 7.09996 9.61687 4.73909 5.69327 6.51244 8.40997
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
79 7.78482 10.34362 5.29130 6.27100 7.15045 9.04869
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
80 8.54724 11.13283 5.92338 6.92258 7.86386 9.74764
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
81 9.40951 12.00894 6.65582 7.66774 8.67463 10.53068
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
82 10.39222 12.98985 7.50735 8.52252 9.60297 11.41509
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
83 11.49455 14.06239 8.47766 9.51961 10.64779 12.40384
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
84 12.69876 15.19328 9.55943 10.61311 11.79409 13.46162
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
85 13.98063 16.34562 10.74440 11.78935 13.02257 14.56335
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
86 15.32651 17.49176 12.02798 13.04182 14.32180 15.69269
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
87 16.71801 18.68356 13.41230 14.36087 15.68277 16.87966
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
88 18.15089 19.94244 14.90282 15.75618 17.10607 18.14273
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
89 19.64755 21.21198 16.51661 17.23007 18.61283 19.45082
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
90 21.23308 22.51167 18.27329 18.89300 20.23100 20.86977
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
91 22.94951 23.88390 20.22265 20.71856 22.00462 22.41430
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
92 24.87000 25.50217 22.45281 22.78829 24.01446 24.21830
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
93 27.20133 27.62219 25.14857 25.28211 26.46176 26.49647
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
94 30.42888 30.59762 28.73602 28.73602 29.81058 29.68976
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
95 35.49222 35.49222 34.15815 34.15815 34.99881 34.83496
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
96 44.51508 44.51508 43.54279 43.54279 44.15279 44.03236
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
97 62.83141 62.83141 62.19405 62.19405 62.59184 62.51383
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
98 83.33333 83.33333 83.33333 83.33333 83.33333 83.33333
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
99 83.33333 83.33333 83.33333 83.33333 83.33333 83.33333
-------------- ---------------- ---------------- ----------------- ---------------- ---------------- ----------------
</TABLE>
- --------------------------------------------------------------------------------
We base the guaranteed maximum cost of insurance charges on the sex distinct
1980 Commissioners Standard Ordinary Ultimate Mortality Smoker/Non-Smoker Table,
age last birthday unless unisex charges apply. If unisex charges apply, a unisex
variation of that table is used. The amounts shown are per $1,000 of Net Amount
at Risk. The guaranteed maximum cost of insurance charge depends on the tobacco
usage class and risk class of each Insured. The charges shown above are
applicable for Insureds in the preferred risk class. The guaranteed maximum cost
of insurance charges for other risk classes are available upon request. Charges
for substandard risk classes are based on a multiple of the table rates. Cost of
insurance charges for joint life cases are determined using a standard insurance
industry method used to derive the applicable charge based on the applicable
cost of insurance charge for both Insureds.
- --------------------------------------------------------------------------------
<PAGE>
APPENDIX C
CURRENT MONTHLY COST OF INSURANCE RATES
(per $1,000 of Net Amount at Risk)
<TABLE>
<CAPTION>
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Attained No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
0 0.08329 0.08329 0.04935 0.04935 0.07820 0.07820
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
1 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
2 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
3 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
4 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
5 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
6 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
7 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
8 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
9 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
10 0.02787 0.02787 0.01969 0.01969 0.02664 0.02664
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
11 0.03181 0.03181 0.02044 0.02044 0.03010 0.03010
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
12 0.03575 0.03575 0.02119 0.02119 0.03356 0.03356
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
13 0.03969 0.03969 0.02195 0.02195 0.03703 0.03703
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
14 0.04363 0.04363 0.02270 0.02270 0.04049 0.04049
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
15 0.04757 0.04757 0.02345 0.02345 0.04395 0.04395
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
16 0.05017 0.08451 0.02350 0.03350 0.04600 0.07701
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
17 0.05034 0.08484 0.02367 0.03367 0.04617 0.07734
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
18 0.05050 0.08517 0.02383 0.03383 0.04634 0.07767
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
19 0.05067 0.08551 0.02400 0.03400 0.04650 0.07801
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
20 0.05084 0.08584 0.02417 0.03417 0.04667 0.07834
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
21 0.05100 0.08634 0.02417 0.03417 0.04684 0.07884
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
22 0.05117 0.08684 0.02417 0.03417 0.04700 0.07934
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
23 0.05134 0.08734 0.02417 0.03417 0.04717 0.07984
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
24 0.05150 0.08784 0.02417 0.03417 0.04734 0.08034
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
25 0.05167 0.08834 0.02417 0.03417 0.04750 0.08084
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
26 0.05217 0.08917 0.02433 0.03500 0.04800 0.08151
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
27 0.05267 0.09001 0.02450 0.03583 0.04850 0.08217
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
28 0.05317 0.09084 0.02467 0.03667 0.04900 0.08284
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
29 0.05367 0.09168 0.02483 0.03750 0.04950 0.08351
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
30 0.05417 0.09251 0.02500 0.03833 0.05000 0.08417
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
31 0.05467 0.09351 0.02600 0.04017 0.05050 0.08534
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
32 0.05517 0.09451 0.02700 0.04200 0.05100 0.08651
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
33 0.05567 0.09551 0.02800 0.04384 0.05150 0.08767
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
34 0.05617 0.09651 0.02900 0.04567 0.05200 0.08884
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
35 0.05667 0.09751 0.03000 0.04750 0.05250 0.09001
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
36 0.06017 0.10718 0.03250 0.05350 0.05584 0.09918
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
37 0.06367 0.11685 0.03500 0.05950 0.05917 0.10835
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
38 0.06717 0.12652 0.03750 0.06550 0.06250 0.11751
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
39 0.07067 0.13619 0.04000 0.07151 0.06584 0.12668
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
40 0.07417 0.14585 0.04250 0.07751 0.06917 0.13585
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
41 0.08051 0.16619 0.04700 0.08667 0.07534 0.15436
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
42 0.08684 0.18653 0.05150 0.09584 0.08151 0.17286
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
43 0.09318 0.20688 0.05600 0.10501 0.08767 0.19137
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
44 0.09951 0.22722 0.06050 0.11418 0.09384 0.20988
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
45 0.10584 0.24756 0.06500 0.12335 0.10001 0.22839
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
46 0.11568 0.27458 0.07101 0.13535 0.10918 0.25323
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
47 0.12552 0.30159 0.07701 0.14736 0.11835 0.27808
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
48 0.13535 0.32861 0.08301 0.15936 0.12752 0.30293
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
49 0.14519 0.35563 0.08901 0.17136 0.13669 0.32777
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
50 0.15502 0.38265 0.09501 0.18337 0.14585 0.35262
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
51 0.17036 0.41984 0.10418 0.20087 0.16036 0.38682
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
</TABLE>
<TABLE>
<CAPTION>
Male Male Female Female Unisex Unisex
Attained No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
52 0.18570 0.45704 0.11335 0.21838 0.17486 0.42101
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
53 0.20104 0.49424 0.12252 0.23589 0.18937 0.45521
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
54 0.21638 0.53145 0.13168 0.25340 0.20387 0.48941
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
55 0.23172 0.56866 0.14085 0.27091 0.21838 0.52361
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
56 0.25140 0.60837 0.15019 0.28675 0.23656 0.55981
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
57 0.27107 0.64809 0.15953 0.30259 0.25473 0.59602
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
58 0.29075 0.68781 0.16886 0.31843 0.27291 0.63223
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
59 0.31043 0.72753 0.17820 0.33428 0.29108 0.66845
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
60 0.33011 0.76725 0.18754 0.35012 0.30926 0.70466
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
61 0.35880 0.81049 0.20404 0.37898 0.33611 0.74589
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
62 0.38748 0.85373 0.22055 0.40783 0.36297 0.78712
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
63 0.41617 0.89697 0.23706 0.43669 0.38982 0.82835
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
64 0.44486 0.94022 0.25356 0.46555 0.41667 0.86959
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
65 0.47356 0.98347 0.27007 0.49441 0.44353 0.91083
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
66 0.53712 1.08534 0.30776 0.52861 0.50309 1.00234
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
67 0.60069 1.18724 0.34545 0.56282 0.56265 1.09386
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
68 0.66427 1.28916 0.38315 0.59702 0.62222 1.18540
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
69 0.72786 1.39110 0.42084 0.63123 0.68180 1.27696
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
70 0.79146 1.49306 0.45854 0.66544 0.74138 1.36854
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
71 0.92018 1.65457 0.53595 0.76976 0.86241 1.52148
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
72 1.04893 1.81613 0.61338 0.87410 0.98347 1.67447
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
73 1.17772 1.97774 0.69081 0.97846 1.10455 1.82750
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
74 1.30654 2.13940 0.76826 1.08284 1.22567 1.98058
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
75 1.43539 2.30112 0.84571 1.18724 1.34681 2.13371
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
76 1.71862 2.55870 1.10171 1.44041 1.62597 2.39070
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
77 2.00200 2.81641 1.35784 1.69370 1.90529 2.64783
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
78 2.28555 3.07426 1.61410 1.94712 2.18476 2.90508
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
79 2.56925 3.33223 1.87049 2.20067 2.46439 3.16247
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
80 2.85312 3.59034 2.12701 2.45434 2.74418 3.41999
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
81 3.37418 4.14528 2.50727 2.90911 3.24416 3.95978
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
82 3.89578 4.70083 2.88782 3.36428 3.74464 4.50016
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
83 4.41793 5.25699 3.26865 3.81987 4.24562 5.04112
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
84 4.94062 5.81377 3.64977 4.27587 4.74710 5.58266
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
85 5.46386 6.37117 4.03119 4.73229 5.24908 6.12478
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
86 6.12225 7.09296 4.57736 5.16454 5.89049 6.80314
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
87 6.78151 7.81578 5.12412 5.59715 6.53273 7.48240
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
88 7.44164 8.53964 5.67148 6.03014 7.17579 8.16259
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
89 8.10262 9.26454 6.21944 6.46351 7.81967 8.84369
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
90 8.76448 9.99049 6.76800 6.89725 8.46438 9.52572
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
91 9.46270 10.84979 7.39512 7.53637 9.15200 10.35173
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
92 10.16189 11.71055 8.02302 8.17631 9.84056 11.17909
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
93 10.86205 12.57278 8.65171 8.81706 10.53006 12.00781
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
94 11.56318 13.43648 9.28118 9.45863 11.22050 12.83789
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
95 12.26528 14.30165 9.91144 10.10101 11.91189 13.66933
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
96 12.89876 15.04173 10.51321 10.71356 12.54048 14.39014
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
97 13.53303 15.78290 11.11570 11.32686 13.16986 15.11197
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
98 14.16810 16.52514 11.71891 11.94090 13.80001 15.83483
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
99 14.80396 17.26847 12.32284 12.55569 14.43096 16.55873
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
</TABLE>
- --------------------------------------------------------------------------------
The amounts shown above are current rates per $1,000 of Net Amount at Risk as of
the date of this Prospectus. To determine the current monthly cost of insurance
charge we multiply these rates by the Net Amount at Risk. To that product, we
add the current cost of insurance fee. The charges shown above are applicable
for Insureds in the preferred risk class. The current monthly cost of insurance
charges for other risk classes are available upon request. Cost of insurance
charges for joint life cases are determined using a standard insurance industry
method used to derive the applicable charge based on the applicable cost of
insurance charge for both Insureds. Current monthly cost of insurance rates for
specific proposed joint Insureds are also available on request.
- --------------------------------------------------------------------------------
<PAGE>
APPENDIX D
DESCRIPTION OF THE CALCULATION OF CURRENT MONTHLY COST OF INSURANCE CHARGES
We determine the current monthly cost of insurance rate, the currently monthly
cost of insurance fee and any underwriting factor as follows:
1. Current monthly cost of insurance rate: The rate depends on a number
of factors, as follows.
a. For Policies with One Insured: The rates depend on the tobacco
usage class and risk class of the Insured(s), the Age and, where
permissible, gender of the Insured.
b. For Policies with Two Insureds: The rates depend on the
individual current monthly cost of insurance rates for each
Insured.
2. Current monthly cost of insurance fee: The cost of insurance fee is
calculated using a "constant", currently $12.00.
3. Underwriting factor: We reserve the right to multiply the current cost
of insurance rate by an underwriting factor. The underwriting factor
for Policies that are fully underwritten would be one, which results
in no change to the rate.
The following is an example of how we calculate the monthly cost of insurance
deduction. Assume for this example that: (1) the Policy is issued using Option I
with a Specified Amount of $80,000; (2) on the applicable Monthly Processing
Day, the Death Benefit equals the Specified Amount; (3) the then current Account
Value is $10,000; (4) there is one male Insured, who is currently Age 55 (gender
specific cost of insurance rates are used); and (5) the Insured is in the "no
tobacco usage" class and is in the preferred risk class.
(a) We look up the current monthly cost of insurance rate for the
Insured. As of the date of this Prospectus, the current monthly
cost of insurance rate for a 55 year old male nonsmoker Insured
is $.23172 per thousand of Net Amount at Risk.
(b) If applicable, we multiply the rate shown in (a) times the
applicable current underwriting factor.
(c) We multiply (a), or, if applicable, the result of (b), times the
Net Amount at Risk*. The result is 16.16.
(d) We add the current "constant" of $12.00 to (c), resulting in
$28.16.
(e) We look up the contractually guaranteed maximum monthly cost of
insurance charge for the Insured. In this case, we look up the
charge for a 55 year old male in the "no tobacco usage" class and
the preferred risk class. That charge is .68759 per $1,000 Net
Amount at Risk.
(f) We multiply the rate shown in (e) times the Net Amount at Risk*.
The result is $47.95.
(g) We compare the result in (d) and (f). The lower of the two
amounts is the current monthly cost of insurance for the Insured.
In this example, the current cost of insurance is, therefore,
$28.16.
* We determine the Net Amount at Risk for purposes of determining cost of
insurance charges by subtracting the Account Value from the Death Benefit
discounted to the beginning of the Policy Month at the rate of 4% per year. In
this example, the Amount at Risk is $69,739.
<PAGE>
APPENDIX E
MAXIMUM ANNUAL ASSESSABLE PREMIUMS PER $1,000 OF SPECIFIED AMOUNT
<TABLE>
<CAPTION>
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
Male Male Female Female Unisex Unisex
Issue No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
0 N/A 15.27 N/A 12.22 N/A 14.67
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
1 N/A 15.48 N/A 12.42 N/A 14.88
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
2 N/A 15.94 N/A 12.79 N/A 15.33
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
3 N/A 16.44 N/A 13.19 N/A 15.80
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
4 N/A 16.95 N/A 13.60 N/A 16.30
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
5 N/A 17.50 N/A 14.03 N/A 16.82
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
6 N/A 18.07 N/A 14.48 N/A 17.37
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
7 N/A 18.67 N/A 14.95 N/A 17.95
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
8 N/A 19.31 N/A 15.45 N/A 18.56
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
9 N/A 19.98 N/A 15.97 N/A 19.20
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
10 N/A 20.68 N/A 16.51 N/A 19.87
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
11 N/A 21.41 N/A 17.07 N/A 20.56
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
12 N/A 22.17 N/A 17.66 N/A 21.29
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
13 N/A 22.94 N/A 18.26 N/A 22.03
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
14 N/A 23.73 N/A 18.89 N/A 22.78
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
15 N/A 24.53 N/A 19.53 N/A 23.55
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
16 20.48 25.33 17.75 20.19 19.94 24.32
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
17 21.09 26.09 18.33 20.86 20.55 25.06
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
18 21.72 26.85 18.94 21.55 21.17 25.81
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
19 22.36 27.63 19.56 22.26 21.81 26.58
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
20 23.03 28.44 20.21 23.00 22.47 27.36
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
21 23.72 29.26 20.87 23.76 23.15 28.18
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
22 24.44 30.13 21.57 24.55 23.87 29.03
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
23 25.19 31.03 22.29 25.37 24.61 29.91
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
24 25.98 31.98 23.03 26.22 25.40 30.84
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
25 26.81 32.98 23.81 27.10 26.21 31.82
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
26 27.68 34.03 24.62 28.02 27.07 32.84
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
27 28.60 35.13 25.45 28.96 27.97 33.91
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
28 29.55 36.28 26.32 29.94 28.91 35.03
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
29 30.55 37.49 27.21 30.96 29.88 36.20
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
30 31.59 38.74 28.14 32.01 30.90 37.41
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
31 32.67 40.05 29.11 33.10 31.96 38.67
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
32 33.79 41.40 30.11 34.22 33.06 39.98
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
33 34.96 42.81 31.15 35.39 34.20 41.33
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
34 36.17 44.26 32.23 36.60 35.39 42.74
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
35 37.43 45.77 33.34 37.84 36.61 44.19
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
36 38.73 47.32 34.50 39.14 37.88 45.69
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
37 40.07 48.93 35.69 40.47 39.20 47.24
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
38 41.46 50.58 36.92 41.83 40.55 48.84
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
39 42.89 52.28 38.18 43.23 41.95 50.48
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
40 44.38 54.03 39.49 44.67 43.40 52.16
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
41 45.90 55.83 40.83 46.13 44.89 53.89
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
42 47.48 57.66 42.20 47.62 46.42 55.66
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
43 49.10 59.55 43.62 49.15 48.00 57.47
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
44 50.78 61.48 45.07 50.70 49.63 59.32
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
45 52.50 63.45 46.57 52.29 51.32 61.21
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
46 54.28 65.47 48.12 53.93 53.05 63.14
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
47 56.11 67.54 49.71 55.60 54.83 65.13
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
48 58.00 69.66 51.35 57.31 56.67 67.17
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
49 59.96 71.85 53.04 59.08 58.57 69.26
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
50 61.97 74.09 54.79 60.88 60.53 71.41
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
51 64.05 76.41 56.58 62.74 62.55 73.61
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
52 66.19 78.78 58.43 64.64 64.63 75.88
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
</TABLE>
<TABLE>
<CAPTION>
Male Male Female Female Unisex Unisex
Issue No Tobacco Use Tobacco User No Tobacco Use Tobacco User No Tobacco Use Tobacco User
Age
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
53 68.39 81.21 60.32 66.57 66.77 78.19
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
54 70.66 83.69 62.26 68.55 68.96 80.55
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
55 72.99 86.22 64.25 70.56 71.22 82.95
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
56 75.38 88.80 66.30 72.61 73.54 85.40
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
57 77.84 91.45 68.40 74.72 75.92 87.90
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
58 80.38 94.16 70.58 76.90 78.38 90.47
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
59 83.00 96.97 72.84 79.18 80.91 93.13
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
60 85.70 99.88 75.20 81.56 83.54 95.88
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
61 88.50 102.91 77.66 84.05 86.26 98.74
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
62 91.40 106.03 80.21 86.65 89.07 101.70
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
63 94.38 109.25 82.85 89.33 91.96 104.73
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
64 97.46 112.56 85.55 92.06 94.95 107.83
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
65 100.63 115.93 88.32 94.84 98.01 110.99
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
66 103.90 119.40 91.15 97.66 101.17 114.21
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
67 107.30 122.98 94.07 100.57 104.43 117.53
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
68 110.85 126.72 97.12 103.62 107.84 120.98
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
69 114.60 130.67 100.34 106.85 111.43 124.62
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
70 118.55 134.87 103.76 110.32 115.22 128.48
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
71 122.74 139.33 107.40 114.06 119.24 132.59
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
72 127.16 144.06 111.27 118.05 123.48 136.93
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
73 131.80 149.01 115.36 122.26 127.92 141.47
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
74 136.63 154.15 119.65 126.66 132.55 146.18
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
75 141.64 156.53 124.15 131.24 137.35 151.01
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
76 146.86 156.00 128.86 136.01 142.36 155.77
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
77 149.50 155.48 133.84 141.01 147.63 154.88
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
78 148.62 155.07 139.18 146.34 148.31 154.06
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
79 147.95 154.86 143.80 146.45 147.44 153.38
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
80 147.53 154.81 142.69 145.54 146.79 152.84
-------------- ---------------- ----------------- ---------------- ---------------- ---------------- ----------------
</TABLE>
- --------------------------------------------------------------------------------
The Maximum Annual Assessable Premium depends on the Age, tobacco usage class,
risk class and, where permitted, gender of the Insured. The amounts shown above
are applicable for Insureds in the preferred risk class. The Maximum Annual
Assessable Premium for Insureds in a substandard risk class are higher than for
Insureds in a preferred risk class.
- --------------------------------------------------------------------------------
<PAGE>
APPENDIX F
HYPOTHETICAL ILLUSTRATION OF ACCELERATED DEATH BENEFIT
The following are hypothetical illustrations of the impact of payments made to
the Insured under the accelerated death benefit provision of the Policy. The
first hypothetical illustration assumes the Insured is a female, age 45 as of
the Policy Date. The second hypothetical illustration assumes the Insured is a
male, age 65 as of the Policy Date. The following other assumptions apply to
both hypothetical illustrations:
1. Premiums of $5,000 per year were paid as of the first day of each
Policy Year, and the premium tax charged on each Premium was
1.75%. DAC tax also was charged in relation to each Premium.
2. Each Policy was issued in the no tobacco usage class and
preferred risk class. Cost of insurance rates differ by gender
and there is no change to the current cost of insurance rates
during the period covered by the example.
3. The Death Benefit Option in effect throughout the life of the
Policy is Option I.
4. The Specified Amount is $100,000 and has remained constant since
the Policy Date.
5. The provision is exercised as of the day preceding the 10th
Policy Anniversary.
6. The investment options in which Account Value was allocated have
grown on a constant basis since the Policy Date at an annualized
rate of 8% per year.
7. There have been no loans or loan repayments and no amounts have
been withdrawn.
8. 50% of the maximum available amount is taken pursuant to the
accelerated death benefit provision.
9. The 12-month interest rate discount used in the calculation of
the benefit assumes interest at 6% per year, compounded yearly.
<TABLE>
<CAPTION>
------------------------- -------------------------
Female Age 45 Male Age 65
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
<S> <C> <C> <C>
Account Value Before the Accelerated Death Benefit is $62,103 $54,697
Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Cash Value Before the Accelerated Death Benefit is Paid $61,638 $54,197
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Maximum Amount Available For a Loan Before the $55,474 $48,777
Accelerated Death Benefit is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Specified Amount Before the Accelerated Death Benefit $100,000 $100,000
is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Minimum Required Death Benefit Before the Accelerated $155,517 $74,430
Death Benefit is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Guaranteed Minimum Death Benefit Before the $59,267 $52,795
Accelerated Death Benefit is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Death Benefit Before the Accelerated Death Benefit is $155,517 $100,000
Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Maximum Amount Available as the Accelerated Death $77,759 $50,000
Benefit
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Amount of Accelerated Death Benefit $38,879 $25,000
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Amount Paid as the Accelerated Death Benefit $36,679 $23,585
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Account Value After the Accelerated Death Benefit is $46,577 $41,023
Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Cash Value After the Accelerated Death Benefit is Paid $46,229 $40,648
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Maximum Amount Available For a Loan After the $41,606 $36,583
Accelerated Death Benefit is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Specified Amount After the Accelerated Death Benefit $75,000 $75,000
is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Minimum Required Death Benefit After the Accelerated $116,637 $55,822
Death Benefit is Paid
-------------------------------------------------------- ------------------------- -------------------------
-------------------------------------------------------- ------------------------- -------------------------
Guaranteed Minimum Death Benefit After the Accelerated $44,450 $39,596
Death Benefit is Paid
-------------------------------------------------------- ------------------------- -------------------------
</TABLE>
<PAGE>
ADDITIONAL INFORMATION: Inquiries will be answered by calling your
representative or by writing to:
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
at
P.O. Box 883
Shelton, Connecticut 06484
or
[email protected]
Issued by: Serviced at:
AMERICAN SKANDIA LIFE AMERICAN SKANDIA LIFE
ASSURANCE CORPORATION ASSURANCE CORPORATION
One Corporate Drive P.O. Box 883
Shelton, Connecticut 06484 Shelton, Connecticut 06484
Telephone: 1-800-752-6342 Telephone: 1-800-752-6342
http://www.americanskandia.com http://www.americanskandia.com
Distributed by:
AMERICAN SKANDIA MARKETING, INCORPORATED
One Corporate Drive
Shelton, Connecticut 06484
Telephone: 203-926-1888
http://www.americanskandia.com
PART II - OTHER INFORMATION
CONTENTS OF REGISTRATION STATEMENT
This registration statement comprises the following papers and
documents:
The facing sheet.
The prospectus consisting of 121 pages.
Representations and Undertakings.
The signatures.
Written consents of the following persons:
Legal Counsel FILED HEREWITH
Ernst & Young LLP FILED HEREWITH
Corporate Actuary FILED HEREWITH
<TABLE>
<CAPTION>
The following exhibits which correspond to those required by paragraph
A of the instructions for exhibits to Form N-8B-2:
<S> <C> <C> <C> <C> <C> <C>
1. A. (1) Resolution of the Board of Directors of the Company are incorporated
by reference to Registration Statement No. 333-38119 filed via EDGAR October 17, 1997.
(2) Not applicable.
(3) Distributing contracts:
(a) Principal Underwriting Agreement incorporated by reference
to Registration Statement No. 333-38119 filed via EDGAR October 17, 1997.
(b) Form of Revised Dealer Agreement being filed via EDGAR
with Post-Effective Amendment No. 7 to Registration
Statement No. 33-87010 on April 24, 1998.
(c) Not applicable.
(4) Not applicable.
(5) Form of Flexible Premium Variable Life Insurance Policy
(a) Single Life Version filed via EDGAR with Initial Registration Statement No.
333-95957 filed on February 2, 2000.
(b) Last Survivor Version filed via EDGAR with Initial Registration Statement
No. 333-95957 filed on February 2, 2000.
(c) Endorsement-Accelerated Death Benefit filed via EDGAR with Initial
Registration Statement No. 333-95957 filed on February 2, 2000.
(d) Endorsement-Guaranteed Continuation Provision filed via EDGAR with Initial
Registration Statement No. 333-95957 filed on February 2, 2000.
(e) Endorsement-Medically-Related Waiver filed via EDGAR with Initial
Registration Statement No. 333-95957 filed on February 2, 2000.
(6) Articles of Incorporation and By-laws of American Skandia Life Assurance Corporation,
incorporated by reference to Post-Effective Amendment No. 6 to Registration Statement No.
33-87010, filed VIA EDGAR on March 2, 1998.
(7) Not applicable.
(8) Not applicable.
(9) Other material contracts. Not applicable
(10) Form of Application for Flexible Premium Variable Life Insurance Policy.
(11) Memorandum describing transfer and redemption procedures filed via EDGAR with Initial Registration Statement No.
333-95957, filed on February 2, 2000.
(12) Hypothetical Illustrations of Death Benefits, Account Values and Cash Values.
FILED HEREWITH
2. Opinion and Consent of Counsel. FILED HEREWITH
3. No financial statements are to be omitted from the prospectus pursuant to instruction 1(b) or 1(c) of the
instructions as to the prospectus.
4. Not applicable.
5. Financial Data Schedules. FILED HEREWITH
6. Not applicable.
7. Opinion and Consent of certifying actuary. FILED HEREWITH
8. Opinion and Consent of Ernst & Young LLP FILED HEREWITH
9. a) Powers of Attorney are incorporated by reference to
Registration Statement No. 333-38119 filed via EDGAR October
17, 1997.
b) Directors Kennedy and Winson filed via EDGAR with Post-
Effective Amendment No. 4 to Registration Statement No.
333-25733.
</TABLE>
<PAGE>
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities Exchange
Act of 1934, the undersigned registrant hereby undertakes to file with the
Securities and Exchange Commission such supplementary and periodic information,
documents, and reports as may be prescribed by any rule or regulation of the
Commission heretofore or hereafter duly adopted pursuant to authority conferred
in that section.
RULE 484 UNDERTAKING ON INDEMNIFICATION
Article XIII of the By-laws of American Skandia Life Assurance Corporation, a
Connecticut corporation, (the "Corporation") provides for indemnification of its
officers, directors, and employees as follows:
SECTION 1. Proceedings Other Than by or in the Right of the Corporation.
------------------------------------------------------------
The Corporation shall indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigate
(other than an action by or in the right of the Corporation) by reason of the
fact that he, or the person whose representative he is, is or was a shareholder,
director, officer, employee or agent of the Corporation, or is or was serving
solely at the request of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise, against expenses (including attorneys' fees), judgments, fines,
penalties, and amounts paid in settlement actually and reasonably incurred by
him in connection with such action, suit or proceeding if the person is
successful on the merits in the defense of the proceeding or as provided in
Section 3 hereof, if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the corporation, and
with respect to any criminal action or proceeding, the person had no reasonable
cause to believe his conduct was unlawful or if upon application to the court as
provided in Section 5 hereof, the court shall have determined that in view of
all the circumstances such person is fairly and reasonably entitled to be
indemnified, and then for such amount as the court shall determine; except that,
in connection with an alleged claim based upon his purchase or sale of
securities of the Corporation or of another enterprise, which he serves or
served at the request of the Corporation, the Corporation shall only indemnify
such person after the court shall have determined, on application as provided in
Section 5 hereof, that in view of all the circumstances such person is fairly
and reasonably entitled to be indemnified, and then for such amount as the court
shall determine. The termination of any action, suit or proceeding by judgment,
order, settlement, conviction, or upon a plea of nolo contendre or its
equivalent, shall not, of itself, create a presumption that the person did not
act in good faith and in a manner which he reasonably believed to be in or not
opposed to the best interests of the Corporation or of the participants and
beneficiaries of such employee benefit plan or trust and consistent with the
provisions of such employee benefit plan or trust, or, with respect to any
criminal action or proceeding, that he had reasonable cause to believe that his
conduct was unlawful.
SECTION 2. Proceedings by or in the Right of the Corporation.
-------------------------------------------------
The Corporation shall indemnify any person who was or is a party or threatened
to be made a party to any threatened, pending or completed action, suit or
proceeding, by or in the right of the Corporation, to procure a judgment in its
favor by reason of the fact that he, or the person whose legal representative he
is, is or was a shareholder, director, officer, employee or agent of the
Corporation, or is or was serving solely at the request of the Corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or enterprise, against expenses (including attorney fees)
actually and reasonably incurred by him in connection with such proceeding in
relation to matters as to which such person, or the person whose legal
representative his is, is finally adjudged not to have breached his duty to the
Corporation, or where the court, on application as provided in Section 6 hereof,
shall have determined that in view or all the circumstances such person is
fairly and reasonably entitled to be indemnified, and then for such amount as
the court shall determine. The Corporation shall not so indemnify any such
person for amounts paid to the Corporation, to a plaintiff or to counsel for a
plaintiff in settling or otherwise disposing of a proceeding, with or without
court approval; or for expenses incurred in defending a proceeding which is
settled or otherwise disposed of without court approval.
<PAGE>
SECTION 3. Determination of Right of Indemnification.
-----------------------------------------
The conclusion provided for in Section 1 hereof may be reached by any of the
following: (1) The Board of Directors of the Corporation by a consent in writing
signed by a majority of those directors who were not parties to such proceeding;
(2) independent legal counsel selected by a consent in writing signed by a
majority of those directors who were not parties to such proceeding; (3) in the
case of any employee or agent who is not an officer or director of the
Corporation, the Corporation's general counsel; or (4) the shareholders of the
Corporation by the affirmative vote of at least a majority of the voting power
of shares not owned by parties to such proceeding, represented at an annual or
special meeting of shareholders, duly called with notice of such purpose stated.
Such person shall also be entitled to apply to a court for such conclusion, upon
application as provided in Section 5 hereof, even though the conclusion reached
by any of the foregoing shall have been adverse to him or to the person whose
legal representative he is.
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
REPRESENTATION AND UNDERTAKING
The Registrant and the Company hereby make the following representations and
undertakings:
(a) This filing is made pursuant to Rules 6c-3 and 6e-3(T) under the Investment
Company Act of 1940 (the "Act"). The Registrant and the Company elect to be
governed by Rule 6e-3(T)(b)(13)(i)(A) under the Act with respect to the Policies
described in the prospectus. The Policies are designed in such a way as to
qualify for the exemptive relief from various provisions of the Act afforded by
Rule 6e-3(T).
(b) The Company is relying on Paragraph (b)(13)(iii)(F) of Rule 6e-3(T) for the
deduction of the mortality and expense risk charges ("risk charges")assumed by
the Company under the Policies. The Company represents that the risk charges are
reasonable in relation to all of the risks assumed by the issuer under the
Policies. (Paragraph (b)(13)(iii)(F)(2)(ii)). Actuarial memoranda demonstrating
the reasonableness of these charges are maintained by the Company, and will be
made available to the Securities and Exchange Commission (the "Commission") on
request. (Paragraph (b)(13)(iii)(F)(3).
(c) The Company has concluded that there is a reasonable likelihood that the
distribution financing arrangement of the separate account will benefit the
separate account and the contractholders and will keep and make available to the
Commission on request a memorandum setting forth the basis for this
representation. (Paragraph (b)(13)(iii)(F)(4)(ii)(A).
(d) The Company represents that the separate account will invest only in
management investment companies which have undertaken to have a board of
directors, a majority of whom are not interested persons of the company,
formulate and approve any plan under Rule 12b-1 to finance distribution
expenses. (Paragraph (b)(13)(iii)(F)(4)(ii)(B)(2).
(e) Pursuant to Rule 26(e) under the Act, the Company hereby represents that the
fees and charges deducted under the Policy described in the Prospectus, in the
aggregate, are reasonable in relation to the services rendered, the expenses
expected to be incurred, and the risks assumed by the Company.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant 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 Shelton, State of Connecticut, on 27th day of
April, 2000.
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
SEPARATE ACCOUNT F
(Registrant)
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(Depositor)
By:/s/Lincoln R. Collins Attest: /s/Kathleen A. Chapman
Lincoln R. Collins, Kathleen A. Chapman,
Senior Vice President Assistant Corporate Secretary
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities and
on the date indicated.
Signature Title Date
(Principal Executive Officer)
Jan R. Carendi* Chief Executive Officer, 04/27/2000
Jan R. Carendi Chairman of the Board and Director
(Principal Financial Officer)
/s/Thomas M. Mazzaferro Executive Vice President and 04/27/2000
Thomas M. Mazzaferro Chief Financial Officer
(Principal Accounting Officer)
/s/David R. Monroe Treasurer, Vice President 04/27/2000
David R. Monroe and Controller
(Board of Directors)
Jan. R. Carendi* Gordon C. Boronow* Malcolm M. Campbell*
Jan. R. Carendi Gordon C. Boronow Malcolm M. Campbell
Henrik Danckwardt* Amanda C. Sutyak* Wade A. Dokken*
Henrik Danckwardt Amanda C. Sutyak Wade A. Dokken
Thomas M. Mazzaferro* Gunnar Moberg* Bayard F. Tracy*
Thomas M. Mazzaferro Gunnar Moberg Bayard F. Tracy
Anders Soderstrom* C. Ake Svensson* Lincoln R. Collins*
Anders Soderstrom C. Ake Svensson Lincoln R. Collins
T. Richard Kennedy** Brett M. Winson**
T. Richard Kennedy Brett M. Winson
*/**By: /s/Kathleen A. Chapman
Kathleen A. Chapman
*Pursuant to Powers of Attorney filed with Initial
Registration Statement No. 333-38119.
**Pursuant to Power of Attorney filed with Post-Effective Amendment No. 4
to Registration Statement No. 333-25733
EXHIBIT 12
HYPOTHETICAL ILLUSTRATIONS OF DEATH BENEFITS, ACCOUNT VALUES AND CASH VALUES
It is impossible to illustrate exactly how a Policy will perform in the future.
However, you can illustrate how the Policy works and may be able to better
compare a Policy with other life insurance plans, using hypothetical
illustrations based on the personal characteristics of the Insured(s) as well as
certain assumptions about the future. You can also do this by requesting from us
personalized hypothetical illustrations based on: (a) the Age(s) of the
Insured(s); (b) the tobacco usage class and expected risk class(es) of the
Insured(s); (c) the gender of the Insured(s), where permitted; (d) the Specified
Amount you seek; (e) the test that you elect to qualify your Policy as life
insurance - either the Cash Value Accumulation Test (CVAT) or Guideline Premium
Test (GPT); (f) which Death Benefit Option (I, II, III or IV) is to apply; and
(g) the amount and timing of Premiums you intend to pay.
We may also provide personalized hypothetical illustrations that assume future
loans, withdrawals, loan repayments, Premium payments on other than the Policy
Date and Policy Anniversaries, changes after the Policy Date in the Death
Benefit Option on in the Specified Amount or varying assumed rates of return.
The hypothetical illustrations that follow show the changes in the Death
Benefit, Account Value and Cash Value over time based on certain assumptions.
All values are provided as of the end of each Policy Year shown. Hypothetical
illustrations are shown for both Death Benefit Options. The assumptions used are
as follows:
1. Hypothetical average annual gross rates of return in the Portfolios of 0%,
6% and 12%. Of course, actual investment performance is not a constant
rate. If the hypothetical gross rate of return were to fluctuate above or
below the 0%, 6% or 12% average over a period of years, the Death Benefit,
Account Value and Cash Value may be different. For hypothetical rates of
return of 0% and 6%, the illustrations will indicate if a Policy would
lapse. HYPOTHETICAL RATES OF RETURN ARE FOR ILLUSTRATIVE PURPOSES ONLY AND
ARE NOT A REPRESENTATION OF PAST OR FUTURE PERFORMANCE.
2. Hypothetical constant expense ratios of 1.15% for the Portfolios. The total
annual expenses for the underlying mutual funds are shown in the section
entitled "Variable Investment Options." The 1.15% hypothetical expense
ratio is the average of the actual total annual expenses for all available
Portfolios as of December 31, 1999. Certain of the Portfolios have not been
in existence for a full year and, therefore, the total annual expenses for
those Portfolios are estimated and annualized. The 1.15% hypothetical
expense ratio, when deducted from the hypothetical average annual gross
rates of return equals a hypothetical average annual net rate of return of
-1.15%, 4.85% and 10.85% respectively.
3. The mortality and expense risk charge assessed against the assets in the
Separate Account at an annualized rate of 0.90% for Policy Years 1015 and
0.25% for Policy Years 16 and thereafter. The charge for administrative
expenses connected with operating the Separate Account is 0.25% per year.
It is also assumed that there is no tax charge assessed against the
Separate Account.
4. The charges under the Policy, including the current cost of insurance
charges that differ by gender, tobacco usage class, risk class and attained
age. It is assumed that there are no transfer fees applicable. The
hypothetical illustrations are presented based on both the current and
guaranteed cost of insurance charges.
5. Premium taxes are assessed at the rate of 2.5%.
6. There are no loans, loan repayments, withdrawals, accelerated death benefit
payments or amounts paid to maintain the Policy in effect during a grace
period. The hypothetical values will include Cash Value Credits if
applicable.
7. The Age(s) and, where applicable, gender of the Insured(s) shown in each
illustration, as are the applicable Death Benefit Option and the life
insurance test under the Code. If you choose Death Benefit Option IV, the
assumed interest rate will be 5%.
8. The Insured(s) is/are eligible for the "no tobacco usage" class.
9. The Insured(s) is/are considered to be in the preferred risk class. If the
Insured(s) is/are placed in a substandard risk class, the values for the
Death Benefit, Account Value and Cash Value will differ because the risk
classification impacts charges under the Policy.
10. The Premium payments and Specified Amount are as shown in each
illustration. It is assumed that Premium payments are allocated on the
first day of the Policy Year shown.
11. Neither the Death Benefit Option nor the Specified Amount is changed after
the Policy Date.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
- ------------------ ----------------- --------------- --------------- ------------------ ------------
Level GPT $100,000 45 Female Single 12.00% No Usage
(10.85% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
- ----------- ---------------- ----------------------------------------------------- -----------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -----------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ -------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $4,657 $0 $100,000 $4,700 $3,303 $0 $100,000 $4,620 $3,223
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 4,657 0 100,000 9,821 7,958 0 100,000 9,652 7,790
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 4,657 0 100,000 15,400 13,165 0 100,000 15,135 12,899
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 4,336 0 100,000 21,142 18,945 0 100,000 20,771 18,574
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 0 0 100,000 22,807 21,342 0 100,000 22,308 20,844
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 0 0 100,000 24,618 23,886 0 100,000 23,967 23,235
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 0 0 100,000 26,586 26,219 0 100,000 25,757 25,390
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 100,000 28,725 28,725 0 100,000 27,687 27,687
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 100,000 31,051 31,051 0 100,000 29,771 29,771
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 100,000 33,584 33,584 0 100,000 32,023 32,023
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 0 100,000 36,487 36,487 0 100,000 34,600 34,600
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 0 100,000 39,663 39,663 0 100,000 37,407 37,407
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 0 100,000 43,355 43,355 0 100,000 40,678 40,678
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 0 100,000 47,418 47,418 0 100,000 44,273 44,273
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 0 100,000 51,889 51,889 0 100,000 48,230 48,230
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 0 100,000 57,186 57,186 0 100,000 52,935 52,935
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 0 100,000 63,056 63,056 0 100,000 58,155 58,155
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 0 100,000 69,564 69,564 0 100,000 63,952 63,952
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 0 100,000 76,782 76,782 0 100,000 70,398 70,398
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 0 103,443 84,790 84,790 0 100,000 77,583 77,583
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 161,899 139,568 139,568 0 147,358 127,033 127,033
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 246,436 230,314 230,314 0 222,800 208,224 208,224
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 399,679 380,647 380,647 0 359,285 342,176 342,176
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
- ------------------ ----------------- --------------- --------------- ------------------ ------------
Level GPT $100,000 45 Female Single 6.00% No Usage
(4.85% net)
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
- ------------- ---------------- ----------------------------------------------------- -----------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -----------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ -------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $4,657 $0 $100,000 $4,443 $3,046 $0 $100,000 $4,365 $2,968
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 4,657 0 100,000 9,023 7,160 0 100,000 8,863 7,000
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 4,657 0 100,000 13,746 11,511 0 100,000 13,498 11,262
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 4,336 0 100,000 18,295 16,098 0 100,000 17,953 15,756
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 0 0 100,000 18,638 17,174 0 100,000 18,185 16,720
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 0 0 100,000 18,987 18,255 0 100,000 18,400 17,667
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 0 0 100,000 19,339 18,973 0 100,000 18,595 18,229
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 100,000 19,693 19,693 0 100,000 18,766 18,766
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 100,000 20,050 20,050 0 100,000 18,908 18,908
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 100,000 20,409 20,409 0 100,000 19,020 19,020
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 0 100,000 20,856 20,856 0 100,000 19,176 19,176
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 0 100,000 21,311 21,311 0 100,000 19,301 19,301
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 0 100,000 21,773 21,773 0 100,000 19,394 19,394
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 0 100,000 22,245 22,245 0 100,000 19,454 19,454
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 0 100,000 22,725 22,725 0 100,000 19,474 19,474
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 0 100,000 23,369 23,369 0 100,000 19,576 19,576
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 0 100,000 24,026 24,026 0 100,000 19,622 19,622
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 0 100,000 24,698 24,698 0 100,000 19,594 19,594
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 0 100,000 25,385 25,385 0 100,000 19,471 19,471
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 0 100,000 26,088 26,088 0 100,000 19,234 19,234
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 100,000 29,691 29,691 0 100,000 15,849 15,849
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 100,000 33,005 33,005 0 100,000 5,638 5,638
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 100,000 33,980 33,980 0 0 0 0
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
- ------------------ ----------------- --------------- --------------- ------------------ ------------
Level GPT $100,000 45 Female Single 0.00% No Usage
(-1.15% net)
- ----------------- --------------- --------------- ----------------- --------------- --------------- ------------------ -------------
- ------------ ---------------- ----------------------------------------------------- ------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -------------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $4,657 $0 $100,000 $4,186 $2,789 $0 $100,000 $4,110 $2,713
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 4,657 0 100,000 8,256 6,393 0 100,000 8,103 6,241
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 4,657 0 100,000 12,214 9,979 0 100,000 11,983 9,748
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 4,336 0 100,000 15,761 13,564 0 100,000 15,448 13,251
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 0 0 100,000 15,108 13,644 0 100,000 14,696 13,232
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 0 0 100,000 14,466 13,734 0 100,000 13,937 13,205
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 0 0 100,000 13,832 13,465 0 100,000 13,167 12,801
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 100,000 13,204 13,204 0 100,000 12,381 12,381
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 100,000 12,583 12,583 0 100,000 11,575 11,575
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 100,000 11,968 11,968 0 100,000 10,749 10,749
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 0 100,000 11,405 11,405 0 100,000 9,941 9,941
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 0 100,000 10,844 10,844 0 100,000 9,105 9,105
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 0 100,000 10,286 10,286 0 100,000 8,241 8,241
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 0 100,000 9,729 9,729 0 100,000 7,350 7,350
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 0 100,000 9,174 9,174 0 100,000 6,425 6,425
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 0 100,000 8,678 8,678 0 100,000 5,497 5,497
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 0 100,000 8,171 8,171 0 100,000 4,505 4,505
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 0 100,000 7,653 7,653 0 100,000 3,431 3,431
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 0 100,000 7,125 7,125 0 100,000 2,254 2,254
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 0 100,000 6,585 6,585 0 100,000 958 958
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 100,000 3,481 3,481 0 0 0 0
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 0 0 0 0 0 0 0
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 0 0 0 0 0 0 0
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
- ------------------ ----------------- --------------- --------------- ------------------ ------------
Variable GPT $100,000 55 Male Single 12.00% Tobacco Usage
(10.85% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ----------- ---------------- ----------------------------------------------------- -------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -------------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $8,622 $0 $108,262 $8,262 $5,675 $0 $107,456 $7,456 $4,870
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 8,622 0 117,217 17,217 13,768 0 115,428 15,428 11,980
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 8,622 0 126,930 26,930 22,791 0 123,954 23,954 19,815
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 8,622 0 137,466 37,466 33,328 0 133,074 33,074 28,935
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 8,622 0 148,902 48,902 45,454 0 142,829 42,829 39,381
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 8,622 0 161,318 61,318 59,249 0 153,256 53,256 51,187
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 8,622 0 174,798 74,798 73,591 0 164,387 64,387 63,180
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 180,720 80,720 80,720 0 167,480 67,480 67,480
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 187,153 87,153 87,153 0 170,572 70,572 70,572
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 194,146 94,146 94,146 0 173,633 73,633 73,633
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 0 202,164 102,164 102,164 0 176,957 76,957 76,957
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 0 210,856 110,856 110,856 0 180,249 80,249 80,249
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 0 220,289 120,289 120,289 0 183,493 83,493 83,493
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 0 230,537 130,537 130,537 0 186,663 86,663 86,663
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 0 241,681 141,681 141,681 0 189,716 89,716 89,716
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 0 254,828 154,828 154,828 0 193,221 93,221 93,221
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 0 269,182 169,182 169,182 0 196,559 96,559 96,559
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 0 284,872 184,872 184,872 0 199,637 99,637 99,637
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 0 302,040 202,040 202,040 0 202,356 102,356 102,356
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 0 320,846 220,846 220,846 0 204,609 104,609 104,609
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 444,964 344,964 344,964 0 205,477 105,477 105,477
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 637,453 537,453 537,453 0 175,232 75,232 75,232
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 934,334 834,334 834,334 0 0 0 0
- ----------- ---------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------- ----------------- --------------- --------------- ------------------ --------------
Variable GPT $100,000 55 Male Single 6.00% Tobacco Usage
(4.85% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ------------- -------------- ----------------------------------------------------- -------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -------------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $8,622 $0 $107,798 $7,798 $5,212 $0 $107,017 $7,017 $4,430
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 8,622 0 115,795 15,795 12,346 0 114,105 14,105 10,656
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 8,622 0 123,997 23,997 19,858 0 121,258 21,258 17,119
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 8,622 0 132,409 32,409 28,271 0 128,469 28,469 24,330
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 8,622 0 141,040 41,040 37,591 0 135,727 35,727 32,279
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 8,622 0 149,896 49,896 47,826 0 143,015 43,015 40,945
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 8,622 0 158,979 58,979 57,772 0 150,305 50,305 49,097
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 159,965 59,965 59,965 0 149,190 49,190 49,190
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 160,934 60,934 60,934 0 147,746 47,746 47,746
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 161,887 61,887 61,887 0 145,933 45,933 45,933
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 0 163,077 63,077 63,077 0 143,900 43,900 43,900
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 0 164,192 64,192 64,192 0 141,430 41,430 41,430
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 0 165,229 65,229 65,229 0 138,491 38,491 38,491
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 0 166,184 66,184 66,184 0 135,044 35,044 35,044
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 0 167,055 67,055 67,055 0 131,034 31,034 31,034
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 0 168,289 68,289 68,289 0 126,584 26,584 26,584
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 0 169,385 69,385 69,385 0 121,391 21,391 21,391
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 0 170,336 70,336 70,336 0 115,347 15,347 15,347
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 0 171,136 71,136 71,136 0 108,344 8,344 8,344
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 0 171,776 71,776 71,776 0 100,264 264 264
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 171,083 71,083 71,083 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 157,730 57,730 57,730 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 120,007 20,007 20,007 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------- ----------------- --------------- --------------- ------------------ --------------
Variable GPT $100,000 55 Male Single 0.0% Tobacco Usage
(-1.15% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ------------- -------------- ----------------------------------------------------- -------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -------------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $8,622 $0 $107,336 $7,336 $4,749 $0 $106,578 $6,578 $3,992
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 8,622 0 114,428 14,428 10,979 0 112,834 12,834 9,386
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 8,622 0 121,284 21,284 17,145 0 118,768 18,768 14,630
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 8,622 0 127,910 27,910 23,771 0 124,381 24,381 20,242
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 8,622 0 134,311 34,311 30,863 0 129,668 29,668 26,220
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 8,622 0 140,495 40,495 38,426 0 134,619 34,619 32,550
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 8,622 0 146,463 46,463 45,255 0 139,217 39,217 38,010
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 144,297 44,297 44,297 0 135,484 35,484 35,484
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 142,129 42,129 42,129 0 131,553 31,553 31,553
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 139,957 39,957 39,957 0 127,401 27,401 27,401
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 0 137,936 37,936 37,936 0 123,115 23,115 23,115
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 0 135,831 35,831 35,831 0 118,562 18,562 18,562
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 0 133,644 33,644 33,644 0 113,733 13,733 13,733
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 0 131,375 31,375 31,375 0 108,616 8,616 8,616
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 0 129,027 29,027 29,027 0 103,181 3,181 3,181
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 0 126,782 26,782 26,782 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 0 124,371 24,371 24,371 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 0 121,796 21,796 21,796 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 0 119,059 19,059 19,059 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 0 116,162 16,162 16,162 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------- ----------------- --------------- --------------- ------------------ --------------
Variable GPT $100,000 55 Male Single 12.00% Tobacco Usage
(10.85% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ------------- -------------- ----------------------------------------------------- -------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -------------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $8,622 $0 $108,262 $8,262 $5,675 $0 $107,456 $7,456 $4,870
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 8,622 0 117,217 17,217 13,768 0 115,428 15,428 11,980
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 8,622 0 126,930 26,930 22,791 0 123,954 23,954 19,815
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 8,622 0 137,466 37,466 33,328 0 133,074 33,074 28,935
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 8,622 0 148,902 48,902 45,454 0 142,829 42,829 39,381
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 8,622 0 161,318 61,318 59,249 0 153,256 53,256 51,187
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 8,622 0 174,798 74,798 73,591 0 164,387 64,387 63,180
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 180,720 80,720 80,720 0 167,480 67,480 67,480
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 187,153 87,153 87,153 0 170,572 70,572 70,572
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 194,146 94,146 94,146 0 173,633 73,633 73,633
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 5,000 196,665 96,665 96,665 5,000 171,457 71,457 71,457
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 5,000 199,308 99,308 99,308 5,000 168,699 68,699 68,699
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 5,000 202,087 102,087 102,087 5,000 165,287 65,287 65,287
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 5,000 205,017 105,017 105,017 5,000 161,136 61,136 61,136
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 5,000 208,111 108,111 108,111 5,000 156,135 56,135 56,135
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 5,000 212,126 112,126 112,126 5,000 150,500 50,500 50,500
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 5,000 216,368 116,368 116,368 5,000 143,716 43,716 43,716
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 5,000 220,861 120,861 120,861 5,000 135,585 35,585 35,585
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 5,000 225,633 125,633 125,633 5,000 125,891 25,891 25,891
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 5,000 230,714 130,714 130,714 5,000 114,394 14,394 14,394
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 294,981 194,981 194,981 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 387,787 287,787 287,787 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 518,476 418,476 418,476 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------- ----------------- --------------- --------------- ------------------ --------------
Variable GPT $100,000 55 Male Single 6.00% Tobacco Usage
(4.85% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ------------- -------------- ----------------------------------------------------- -------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -------------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $8,622 $0 $107,798 $7,798 $5,212 $0 $107,017 $7,017 $4,430
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 8,622 0 115,795 15,795 12,346 0 114,105 14,105 10,656
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 8,622 0 123,997 23,997 19,858 0 121,258 21,258 17,119
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 8,622 0 132,409 32,409 28,271 0 128,469 28,469 24,330
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 8,622 0 141,040 41,040 37,591 0 135,727 35,727 32,279
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 8,622 0 149,896 49,896 47,826 0 143,015 43,015 40,945
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 8,622 0 158,979 58,979 57,772 0 150,305 50,305 49,097
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 159,965 59,965 59,965 0 149,190 49,190 49,190
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 160,934 60,934 60,934 0 147,746 47,746 47,746
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 161,887 61,887 61,887 0 145,933 45,933 45,933
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 5,000 157,872 57,872 57,872 5,000 138,695 38,695 38,695
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 5,000 153,569 53,569 53,569 5,000 130,805 30,805 30,805
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 5,000 148,965 48,965 48,965 5,000 122,224 22,224 22,224
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 5,000 144,049 44,049 44,049 5,000 112,903 12,903 12,903
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 5,000 138,807 38,807 38,807 5,000 102,777 2,777 2,777
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 5,000 133,451 33,451 33,451 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 5,000 127,640 27,640 27,640 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 5,000 121,354 21,354 21,354 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 5,000 114,570 14,570 14,570 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 5,000 107,263 7,263 7,263 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------- ----------------- --------------- --------------- ------------------ --------------
Variable GPT $100,000 55 Male Single 0.0% Tobacco Usage
(-1.15% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ------------- -------------- ----------------------------------------------------- -------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -------------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $8,622 $0 $107,336 $7,336 $4,749 $0 $106,578 $6,578 $3,992
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 8,622 0 114,428 14,428 10,979 0 112,834 12,834 9,386
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 8,622 0 121,284 21,284 17,145 0 118,768 18,768 14,630
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 8,622 0 127,910 27,910 23,771 0 124,381 24,381 20,242
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 8,622 0 134,311 34,311 30,863 0 129,668 29,668 26,220
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 8,622 0 140,495 40,495 38,426 0 134,619 34,619 32,550
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 8,622 0 146,463 46,463 45,255 0 139,217 39,217 38,010
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 144,297 44,297 44,297 0 135,484 35,484 35,484
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 142,129 42,129 42,129 0 131,553 31,553 31,553
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 139,957 39,957 39,957 0 127,401 27,401 27,401
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 5,000 133,026 33,026 33,026 5,000 118,204 18,204 18,204
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 5,000 126,099 26,099 26,099 5,000 108,828 8,828 8,828
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 5,000 119,175 19,175 19,175 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 5,000 112,256 12,256 12,256 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 5,000 105,341 5,341 5,341 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 0 0 0 0 0 0 0
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------- ----------------- --------------- --------------- ------------------ --------------
Level CVAT $100,000 65 Male Single 12.00% No Usage
(10.85% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ------------- ------------- ------------------------------------------------------ -------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
------------------------------------------------------ -------------------------------------------------
--------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $10,063 $0 $100,000 $9,965 $6,946 $0 $100,000 $8,519 $5,500
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
2 10,063 0 100,000 20,824 17,403 0 100,000 17,806 14,384
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
3 10,063 0 100,000 32,683 29,362 0 100,000 27,985 24,664
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
4 10,063 0 100,000 45,658 42,438 0 100,000 39,206 35,986
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
5 10,063 0 100,000 59,881 56,862 0 100,000 51,647 48,628
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
6 10,063 0 110,929 75,425 73,010 0 100,000 65,530 63,115
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
7 10,063 0 132,901 92,254 90,845 0 116,073 80,572 79,163
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
8 0 0 141,754 100,376 100,376 0 122,263 86,574 86,574
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
9 0 0 151,308 109,198 109,198 0 128,784 92,942 92,942
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
10 0 0 161,635 118,783 118,783 0 135,655 99,691 99,691
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
11 0 0 173,499 129,722 129,722 0 143,470 107,270 107,270
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
12 0 0 186,266 141,583 141,583 0 151,738 115,338 115,338
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
13 0 0 200,011 154,451 154,451 0 160,488 123,931 123,931
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
14 0 0 214,815 168,423 168,423 0 169,746 133,087 133,087
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
15 0 0 230,776 183,604 183,604 0 179,543 142,844 142,844
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
16 0 0 249,644 201,428 201,428 0 191,158 154,238 154,238
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
17 0 0 270,017 220,812 220,812 0 203,530 166,440 166,440
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
18 0 0 292,082 241,913 241,913 0 216,707 179,484 179,484
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
19 0 0 316,045 264,902 264,902 0 230,745 193,406 193,406
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
20 0 0 342,117 289,970 289,970 0 245,703 208,252 208,252
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
25 0 0 510,558 453,641 453,641 0 336,648 299,118 299,118
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
30 0 0 762,094 711,390 711,390 0 462,031 431,291 431,291
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
35 0 0 1,151,531 1,147,774 1,147,774 0 637,844 635,763 635,763
- ------------- ------------- --------------- ------------ ------------ ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------- ----------------- --------------- --------------- ------------------ --------------
Level CVAT $100,000 65 Male Single 6.00% No Usage
(4.85% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------------------- ----------------------------------------------------- -------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -------------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $0,063 $0 $100,000 $9,413 $6,394 $0 $100,000 $8,006 $4,987
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 10,063 0 100,000 19,116 15,695 0 100,000 16,247 12,825
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 10,063 0 100,000 29,136 25,815 0 100,000 24,763 21,443
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 10,063 0 100,000 39,500 36,280 0 100,000 33,603 30,383
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 10,063 0 100,000 50,238 47,220 0 100,000 42,819 39,800
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 10,063 0 100,000 61,383 58,968 0 100,000 52,475 50,060
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 10,063 0 105,012 72,894 71,485 0 100,000 62,655 61,246
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 105,959 75,029 75,029 0 100,000 63,251 63,251
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 106,987 77,211 77,211 0 100,000 63,696 63,696
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 108,104 79,444 79,444 0 100,000 63,959 63,959
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 0 109,754 82,062 82,062 0 100,000 64,281 64,281
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 0 111,445 84,711 84,711 0 100,000 64,387 64,387
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 0 113,179 87,398 87,398 0 100,000 64,239 64,239
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 0 114,961 90,133 90,133 0 100,000 63,790 63,790
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 0 116,798 92,924 92,924 0 100,000 62,967 62,967
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 0 119,487 96,409 96,409 0 100,000 62,102 62,102
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 0 122,219 99,947 99,947 0 100,000 60,678 60,678
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 0 125,025 103,550 103,550 0 100,000 58,502 58,502
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 0 127,933 107,231 107,231 0 100,000 55,313 55,313
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 0 130,963 111,001 111,001 0 100,000 50,754 50,754
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 147,822 131,342 131,342 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 166,919 155,814 155,814 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 190,881 190,258 190,258 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------ --------------- --------------- ----------------- -------------- --------------- ------------------ -------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------- ----------------- --------------- --------------- ------------------ --------------
Level CVAT $100,000 65 Male Single 0.0% No Usage
(-1.15% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------------------- ----------------------------------------------------- -------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -------------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $10,063 $0 $100,000 $8,862 $5,843 $0 $100,000 $7,494 $4,475
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 10,063 0 100,000 17,474 14,052 0 100,000 14,752 11,330
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 10,063 0 100,000 25,854 22,533 0 100,000 21,794 18,474
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 10,063 0 100,000 34,020 30,800 0 100,000 28,643 25,423
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 10,063 0 100,000 41,989 38,970 0 100,000 35,317 32,298
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 10,063 0 100,000 49,775 47,360 0 100,000 41,831 39,416
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 10,063 0 100,000 57,362 55,953 0 100,000 48,207 46,798
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 100,000 55,429 55,429 0 100,000 44,756 44,756
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 100,000 53,445 53,445 0 100,000 40,916 40,916
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 100,000 51,406 51,406 0 100,000 36,597 36,597
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 0 100,000 49,505 49,505 0 100,000 31,843 31,843
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 0 100,000 47,435 47,435 0 100,000 26,382 26,382
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 0 100,000 45,178 45,178 0 100,000 20,074 20,074
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 0 100,000 42,720 42,720 0 100,000 12,739 12,739
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 0 100,000 40,042 40,042 0 100,000 4,132 4,132
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 0 100,000 37,377 37,377 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 0 100,000 34,250 34,250 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 0 100,000 30,608 30,608 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 0 100,000 26,387 26,387 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 0 100,000 21,508 21,508 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 0 0 0 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 0 0 0 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 0 0 0 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------- ----------------- --------------- --------------- ------------------ --------------
Level CVAT $100,000 55 Male Joint 12.00% No Usage
52 Female (10.85% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------------------- ----------------------------------------------------- -------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -------------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $4,655 $0 $100,000 $4,923 $3,526 $0 $100,000 $4,923 $3,526
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 4,655 0 100,000 10,280 8,418 0 100,000 10,280 8,418
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 4,655 0 100,000 16,109 13,874 0 100,000 16,109 13,874
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 4,655 0 100,000 22,452 20,218 0 100,000 22,452 20,218
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 4,655 0 100,000 29,355 27,493 0 100,000 29,355 27,493
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 4,655 0 100,000 36,870 35,753 0 100,000 36,870 35,753
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 4,655 0 111,437 45,043 44,391 0 111,437 45,043 44,391
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 117,377 49,247 49,247 0 117,377 49,247 49,247
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 123,632 53,822 53,822 0 123,632 53,822 53,822
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 130,221 58,797 58,797 0 130,221 58,797 58,797
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 0 137,711 64,460 64,460 0 137,711 64,460 64,460
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 0 145,684 70,655 70,655 0 145,631 70,629 70,629
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 0 154,226 77,453 77,453 0 154,006 77,342 77,342
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 0 163,390 84,914 84,914 0 162,862 84,639 84,639
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 0 173,234 93,103 93,103 0 172,227 92,563 92,563
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 0 185,031 102,767 102,767 0 183,328 101,821 101,821
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 0 197,803 113,447 113,447 0 195,145 111,923 111,923
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 0 211,654 125,256 125,256 0 207,722 122,929 122,929
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 0 226,707 138,316 138,316 0 221,110 134,901 134,901
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 0 243,096 152,760 152,760 0 235,359 147,898 147,898
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 350,572 251,164 251,164 0 321,629 230,428 230,428
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 516,076 409,566 409,566 0 439,661 348,922 348,922
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 771,096 658,849 658,849 0 601,483 513,926 513,926
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------- ----------------- --------------- --------------- ------------------ --------------
Level CVAT $100,000 55 Male Joint 6.00% No Usage
52 Female (4.85% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ------------- -------------- ----------------------------------------------------- -------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -------------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $4,655 $0 $100,000 $4,659 $3,262 $0 $100,000 $4,659 $3,262
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 4,655 0 100,000 9,456 7,594 0 100,000 9,456 7,594
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 4,655 0 100,000 14,396 12,161 0 100,000 14,396 12,161
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 4,655 0 100,000 19,480 17,246 0 100,000 19,480 17,246
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 4,655 0 100,000 24,714 22,852 0 100,000 24,714 22,852
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 4,655 0 100,000 30,100 28,983 0 100,000 30,100 28,983
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 4,655 0 100,000 35,645 34,993 0 100,000 35,645 34,993
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 100,000 36,867 36,867 0 100,000 36,867 36,867
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 100,000 38,112 38,112 0 100,000 38,112 38,112
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 100,000 39,376 39,376 0 100,000 39,376 39,376
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 0 100,000 40,820 40,820 0 100,000 40,820 40,820
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 0 100,000 42,285 42,285 0 100,000 42,285 42,285
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 0 100,000 43,792 43,792 0 100,000 43,767 43,767
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 0 100,000 45,353 45,353 0 100,000 45,262 45,262
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 0 100,000 46,971 46,971 0 100,000 46,762 46,762
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 0 100,000 48,971 48,971 0 100,000 48,583 48,583
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 0 100,000 51,062 51,062 0 100,000 50,425 50,425
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 0 100,000 53,252 53,252 0 100,000 52,281 52,281
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 0 100,000 55,546 55,546 0 100,000 54,143 54,143
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 0 100,000 57,951 57,951 0 100,000 56,000 56,000
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 100,146 71,749 71,749 0 100,000 64,752 64,752
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 111,189 88,242 88,242 0 100,000 71,401 71,401
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 125,398 107,144 107,144 0 100,000 72,330 72,330
- ------------- -------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Flexible Premium Variable Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Illustration Assumptions:
Issue State: Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
Death Benefit Life Specified Issue Age(s) Male/Female Single Life/ Hypothetical Tobacco Usage
Option Insurance Test Amount Joint Life Rate of Return Classification
- ------------------ --------------- --------------- ----------------- --------------- --------------- ------------------ ------------
- ---------------- ----------------- --------------- --------------- ------------------ --------------
Level CVAT $100,000 55 Male Joint 0.00% No Usage
52 Female (-1.15% net)
- ---------------- --------------- --------------- ----------------- --------------- --------------- ------------------ --------------
- ---------------------------- ----------------------------------------------------- -------------------------------------------------
Policy Year Premium Current Charges Guaranteed Charges
Payments*
----------------------------------------------------- -------------------------------------------------
--------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
Withdrawal Death Account Cash Value Withdrawal Death Account Cash Value
Benefit Value Benefit Value
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $4,655 $0 $100,000 $4,395 $2,999 $0 $100,000 $4,395 $2,999
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
2 4,655 0 100,000 8,664 6,802 0 100,000 8,664 6,802
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
3 4,655 0 100,000 12,809 10,574 0 100,000 12,809 10,574
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
4 4,655 0 100,000 16,831 14,597 0 100,000 16,831 14,597
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
5 4,655 0 100,000 20,734 18,872 0 100,000 20,734 18,872
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
6 4,655 0 100,000 24,518 23,401 0 100,000 24,518 23,401
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
7 4,655 0 100,000 28,186 27,534 0 100,000 28,186 27,534
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
8 0 0 100,000 27,471 27,471 0 100,000 27,471 27,471
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
9 0 0 100,000 26,744 26,744 0 100,000 26,744 26,744
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
10 0 0 100,000 25,998 25,998 0 100,000 25,998 25,998
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
11 0 0 100,000 25,328 25,328 0 100,000 25,328 25,328
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
12 0 0 100,000 24,643 24,643 0 100,000 24,616 24,616
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
13 0 0 100,000 23,958 23,958 0 100,000 23,853 23,853
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
14 0 0 100,000 23,271 23,271 0 100,000 23,026 23,026
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
15 0 0 100,000 22,583 22,583 0 100,000 22,121 22,121
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
16 0 0 100,000 22,039 22,039 0 100,000 21,265 21,265
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
17 0 0 100,000 21,489 21,489 0 100,000 20,290 20,290
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
18 0 0 100,000 20,933 20,933 0 100,000 19,169 19,169
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
19 0 0 100,000 20,375 20,375 0 100,000 17,872 17,872
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
20 0 0 100,000 19,814 19,814 0 100,000 16,356 16,356
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
25 0 0 100,000 16,686 16,686 0 100,000 3,293 3,293
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
30 0 0 100,000 10,263 10,263 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
35 0 0 0 0 0 0 0 0 0
- ---------------------------- --------------- ------------ ----------- ------------ -------------- ----------- ------------ ---------
</TABLE>
* It is assumed that Premiums are applied at the beginning of the Policy Year
shown.
THE HYPOTHETICAL INVESTMENT RESULTS SHOWN ABOVE AND ELSEWHERE IN THIS PROSPECTUS
ARE FOR ILLUSTRATIVE PURPOSES ONLY AND ARE NOT A REPRESENTATION OF PAST OR
FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT RESULTS WILL DEPEND ON INVESTMENT
ALLOCATIONS MADE BY THE POLICY OWNER AND MAY BE MORE OR LESS THAN THOSE SHOWN.
THE DEATH BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF ACTUAL INVESTMENT RETURN APPLICABLE TO THE POLICY FLUCTUATED
ABOVE OR BELOW THE AVERAGE AMOUNT DURING A PERIOD OF POLICY YEARS. THE DEATH
BENEFIT, ACCOUNT VALUE AND CASH VALUE FOR A POLICY WOULD ALSO VARY DEPENDING ON
THE TIMING AND AMOUNT OF PREMIUM PAYMENTS, ANY WITHDRAWALS, LOANS AND LOAN
REPAYMENTS, THE INVESTMENT ALLOCATIONS MADE TO THE SUB-ACCOUNTS AND THE RATES OF
RETURN OF THE SUB-ACCOUNTS. NO REPRESENTATION CAN BE MADE THAT THIS HYPOTHETICAL
RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF
TIME.
American Skandia Life
Assurance Corporation
One Corporate Drive
P.O. Box 883
Shelton, CT 06484-0883
Telephone (203) 926-1888
Fax (203) 925-6932
April 25, 2000
American Skandia Life Assurance Corporation
One Corporate Drive
Shelton, Connecticut 06484
RE: Post-Effective Amendment No. 1 to Registration Statement on
Form S-6 filed by American Skandia Life Assurance Corporation,
Depositor, and American Skandia Life Assurance Corporation
Separate Account F, Trust
Securities Act Registration No. 333-95957
Related Investment Company Act Filing on Form N-8B-2: 811-08447
Dear Sir/Madam:
I have acted as General Counsel to American Skandia Life Assurance Corporation
(the "Company"), a Connecticut insurance company, and American Skandia Life
Assurance Corporation Separate Account F (the "Account") in connection with the
registration with the Securities and Exchange Commission under the Securities
Act of 1933, as amended, of a certain flexible premium variable life insurance
policy that will be issued by American Skandia (the "Policies").
I have examined or caused to be examined such documents (including the Form S-6
registration statement) and reviewed or caused to be reviewed such questions of
law as I considered necessary and appropriate, and on the basis of such
examination and review, it is my opinion that:
1. The Company is a corporation duly organized and validly existing as a stock
life insurance company under the laws of the State of Connecticut and is
duly authorized by the Insurance Department of the State of Connecticut to
issue the Policies.
2. The Policies, when issued as contemplated by the Form S-6 Registration
Statement, will constitute legal, validly issued and binding obligations of
the Company.
I hereby consent to the filing of this opinion as an exhibit to the Form S-6
registration statement for the Policies and the Account.
Sincerely yours,
/s/ T. Richard Kennedy
T. Richard Kennedy
General Counsel
Champion IIA
CHAMPION IIA
INDEPENDENT AUDITORS' CONSENT
We consent to the reference to our firm under the caption "Experts" and to the
use of our report dated February 11, 2000 relating to American Skandia Life
Assurance Corporation included in the Registration Statement (Form S-6 No.
333-95957) and related Prospectus, which is part of this Registration Statement,
and to the use of our report dated February 11, 2000 relating to American
Skandia Life Assurance Corporation Separate Account F, which is also part of
this Registration Statement.
/s/Ernst & Young LLP
Hartford, Connecticut
April 26, 2000
April 26, 2000
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Dear Sir:
This opinion is furnished in connection with the Form S-6 Registration Statement
under the Securities Act of 1933, as amended ("1933 Act"), of a certain flexible
premium variable life insurance policy (the "Policy") that will be offered and
sold by American Skandia Life Assurance Corporation and certain units of
interest to be issued in connection with the Policy.
The hypothetical illustrations of the Policy used in the Form S-6 Registration
Statement accurately reflect reasonable estimates of projected performance of
the Policy under the stipulated rates of investment return, the contractual
expense deductions and guaranteed cost-of-insurance rates, and utilizing a
reasonable estimation for expected fund operating expenses.
I hereby consent to the use of this opinion as an exhibit to the Form S-6
Registration Statement and to the reference to my name under the heading
"Experts" in the Prospectus included as a part of such Form S-6 Registration
Statement.
Very truly yours,
/s/William H. Strong
William H. Strong, FSA, MAAA
Vice President
Champion IIA
<TABLE> <S> <C>
<ARTICLE> 7
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1999
<EXCHANGE-RATE> 1
<DEBT-HELD-FOR-SALE> 198,165
<DEBT-CARRYING-VALUE> 201,525
<DEBT-MARKET-VALUE> 201,509
<EQUITIES> 16,404
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 219,388
<CASH> 89,212
<RECOVER-REINSURE> 4,062
<DEFERRED-ACQUISITION> 1,087,705
<TOTAL-ASSETS> 30,849,414 <F1>
<POLICY-LOSSES> 41,127
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 189,000
0
0
<COMMON> 2,500
<OTHER-SE> 356,934
<TOTAL-LIABILITY-AND-EQUITY> 30,849,414 <F2>
1,278
<INVESTMENT-INCOME> 10,441
<INVESTMENT-GAINS> 578
<OTHER-INCOME> 375,064 <F3>
<BENEFITS> 4,996
<UNDERWRITING-AMORTIZATION> 83,861
<UNDERWRITING-OTHER> 191,991
<INCOME-PRETAX> 106,513
<INCOME-TAX> 30,344
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 76,169
<EPS-BASIC> 0
<EPS-DILUTED> 0
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
<FN>
<F1> Included in Total Assets are Assets Held in Separate Accounts of
$29,381,166.
<F2> Included in Total Liabilities and Equity are Liabilities Related to
Separate Accounts of $29,381,166.
<F3> Other income includes annuity charges and fees of $289,989 and fee income
of $83,243.
</FN>
</TABLE>
