<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON AUGUST 25, 2000
1933 ACT REGISTRATION NO. 333-42479
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 5 TO
REGISTRATION STATEMENT
ON
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF UNIT INVESTMENT TRUSTS
REGISTERED ON FORM N-8B-2
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE
ACCOUNT M
(EXACT NAME OF REGISTRANT)
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
(NAME OF DEPOSITOR)
1300 South Clinton Street, Fort Wayne, Indiana 46802
(ADDRESS OF DEPOSITOR'S PRINCIPAL EXECUTIVE OFFICES)
Depositor's Telephone Number, including Area Code
(219) 455-2000
<TABLE>
<S> <C>
Elizabeth Frederick, Esquire COPY TO:
The Lincoln National Life Insurance Company Jeremy Sachs, Esquire
1300 South Clinton Street The Lincoln National Life Insurance Company
P.O. Box 1110 350 Church Street
Fort Wayne, Indiana 46802 Hartford, CT 06103
(NAME AND ADDRESS OF AGENT FOR SERVICE)
</TABLE>
APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING:
Continuous.
INDEFINITE NUMBER OF UNITS OF INTEREST IN VARIABLE LIFE INSURANCE CONTRACTS
(TITLE OF SECURITIES BEING REGISTERED)
An indefinite amount of the securities being offered by the Registration
Statement has been registered pursuant to Rule 24f-2 under the Investment
Company Act of 1940. The Form 24f-2 for Registrant, for the fiscal year ending
December 31, 1999 was filed March 24, 2000.
It is proposed that this filing will become effective:
/ / immediately on filing
/X/ on September 5, 2000, pursuant to Rule 485(b)
/ / 60 days after filing pursuant to Rule 485(a)
/ / on pursuant to Rule 485(a)
<PAGE>
CROSS REFERENCE SHEET
(RECONCILIATION AND TIE)
REQUIRED BY INSTRUCTION 4 TO FORM S-6
<TABLE>
<CAPTION>
ITEM OF FORM N-8B-2 LOCATION IN PROSPECTUS
------------------- ----------------------
<S> <C>
1 Cover Page; Highlights
2 Cover Page
3 *
4 Distribution of Policies
5 Lincoln Life (Lincoln Life, the Separate Account
and the General Account)
6(a) The Variable Account (Lincoln Life, the Separate
Account and the General Account)
6(b) *
9 Legal Proceedings
10(a)-(c) Short-Term Right to Cancel the Policy;
Surrenders; Accumulation Value; Reports to Policy
Owners
10(d) Right to Exchange for a Fixed Benefit Policy;
Policy Loans; Surrenders; Allocation of Net
Premium Payments
10(e) Lapse and Reinstatement
10(f) Voting Rights
10(g)-(h) Substitution of Securities
10(i) Premium Payments; Transfers; Death Benefit;
Policy Values; Settlement Options
11 The Funds
12 The Funds
13 Charges; Fees
14 Issuance
15 Premium Payments; Transfers
16 The Variable Account (Lincoln Life, the Separate
Account and the General Account)
17 Surrenders
18 The Variable Account (Lincoln Life, the Separate
Account and the General Account)
19 Reports to Policy Owners
20 *
21 Policy Loans
22 *
23 Lincoln Life (Lincoln Life, the Separate Account
and the General Account)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ITEM OF FORM N-8B-2 LOCATION IN PROSPECTUS
------------------- ----------------------
<S> <C>
24 Incontestability; Suicide; Misstatement of Age or
Sex
25 Lincoln Life (Lincoln Life, the Separate Account
and the General Account)
26 Fund Participation Agreements
27 The Variable Account (Lincoln Life, the Separate
Account and the General Account)
28 Directors and Officers of Lincoln Life
29 Lincoln Life (Lincoln Life, the Separate Account
and the General Account)
30 *
31 *
32 *
33 *
34 *
35 *
37 *
38 Distribution of Policies
39 Distribution of Policies
40 *
41(a) Distribution of Policies
42 *
43 *
44 The Funds; Premium Payments
45 *
46 Surrenders
47 The Variable Account; Surrenders, Transfers
(Lincoln Life, the Separate Account and the
General Account)
48 *
49 *
50 The Variable Account (Lincoln Life, the Separate
Account and the General Account)
51 Cover Page; Highlights; Premium Payments; Right
to Exchange for a Fixed Benefit Policy
52 Substitution of Securities
53 Tax Matters
54 *
55 *
</TABLE>
* Not Applicable
<PAGE>
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
SUPPLEMENT DATED SEPTEMBER 5, 2000
TO THE PROSPECTUS DATED MAY 1, 2000
WHICH DESCRIBES LVULCV
Please review this supplement carefully, because it contains new information not
in the May 1, 2000 Prospectus. Keep this supplement with the Prospectus.
1.__ The following is added to the HIGHLIGHTS section on page 4, following the
paragraph that begins "This Policy contains a "No Lapse Provision".":
The Coverage Protection Benefit Rider provides a limited additional means to
help you maintain your death benefit protection and avoid the lapse of your
Policy. In states where approved, it will automatically be a part of your Policy
at Date of Issue. Please refer to page 32 for additional information.
2.__ The following is added to the LAPSE AND REINSTATEMENT section on page 32:
COVERAGE PROTECTION BENEFIT RIDER
This rider provides you with additional protection to prevent a lapse in your
Policy. It protects your Policy from lapse as long as the Coverage Protection
Value is not less than zero, therefore providing you a means of maintaining the
death benefit when there are insufficient funds in your account to pay for that
month's Cost of Insurance charges. It is a limited benefit in that it does not
provide any additional death benefit amount or any increase in your cash
surrender value. Also, it does not provide any type of market performance
guarantee, nor does it offer protection against the lapse of your Policy due to
actual investment gains or losses that are worse than expected.
We calculate the Coverage Protection Value in a fashion similar to the Net
Accumulation Value, but use current expenses and a unique table of guaranteed
monthly insurance factors called the Coverage Protection Factors. We fix these
factors at Date of Issue for the life of the Policy. We also use an Investment
Adjustment in lieu of any actual gain or loss due to market performance of the
Variable Account and in lieu of any actual interest credited to the Fixed
Account. The Investment Adjustment is intended to reflect a gain, or loss, in
relative proportion to what is realized in calculating the Net Accumulation
Value for that period.
You will automatically be issued this rider in states where it has been
approved. In certain states, the rider may be provided under a different name.
If available in your state, the rider will be effective as of the Date of Issue
of your Policy.
Supplement Page 1
30122 5/00.2
<PAGE>
3.__ The following replaces the listing in the DIRECTORS AND OFFICERS OF LINCOLN
LIFE section on pages 39-40:
<TABLE>
<S> <C>
NANCY J. ALFORD Vice President [4/96 - present]. The
Vice President Lincoln National Life Insurance Company.
Formerly; Second Vice President [1/90 -
4/96], The Lincoln National Life Insurance
Company.
ROLAND C. BAKER Vice President [1/95 - present], The
Vice President Lincoln National Life Insurance Company,
1801 S. Meyers Rd. President and Director, First Penn Pacific
Oakbrook Terrace, IL 60181 Life Insurance Company.
JON A. BOSCIA President, Chief Executive Officer and
President and Director Director [1/98 - present], Lincoln
1500 Market Street National Corporation]. Formerly:
Suite 3900 President, Chief Executive Officer and
Philadelphia, PA 19102 Director [10/96 - 1/98] and President and
Chief Operating Officer [5/94 - 10/96],
The Lincoln National Life Insurance
Company.
JANET CHRAZN Senior Vice President and Chief Financial
Senior Vice President Officer [4/00 - present], The Lincoln
and Chief Financial Officer National Life Insurance Company. Formerly:
Vice President and Treasurer [8/95 -
4/00], The Lincoln National Life Insurance
Company.
JOHN H. GOTTA Chief Executive Officer of Life Insurance,
Chief Executive Officer Senior Vice President, and Director
of Life Insurance, Senior [12/99 - present], The Lincoln National
Vice President, Assistant Life Insurance Company. Formerly: Senior
Secretary and Director Vice President and and Assistant Secretary
350 Church Street [4/98 - 12/99], Senior Vice President
Hartford, CT 06103 [2/98 - 4/98], Vice President and General
Manager [1/98 - 2/98], The Lincoln
National Life Insurance Company. Formerly:
Senior Vice Vice President [3/96 -
12/97], Connecticut General Life Insurance
Company; Vice President [8/94 - 3/96],
Connecticut (Massachusetts Mutual) Mutual
Life Insurance Company.
HALDEMAN, CHARLES E. Director [7/00 - present], The Lincoln
Director National Life Insurance Company;
One Commerce President, Chief Executive Officer and
2005 Market Street Director [1/00 - present], Lincoln
Philadelphia, PA 19103 National Investment Companies,
Incorporated; President, Chief Executive
Officer and Director [1/00 - present],
Delaware Management Holdings,
Incorporated; President and Director
[7/00 - present], Lincoln Investment
Management, Incorporated. Formerly:
President and Chief Operating Officer
[2/98 - 1/00], United Asset Management
Corporation; Director and Partner 1/85 -
12/99], Cooke & Bieler, Incorporated.
J. MICHAEL HEMP President and Director [7/97 - present],
Senior Vice President Lincoln Financial Advisors Incorporated;
350 Church Street Senior Vice President [formerly Vice
Hartford, CT 06103 President] [10/95 - present], The Lincoln
National Life Insurance Company. Formerly:
Regional Chief Executive Officer [11/79 -
10/95], Lincoln/Dallas RMO.
</TABLE>
Supplement Page 2
<PAGE>
<TABLE>
<S> <C>
STEPHEN H. LEWIS Senior Vice President and Director
Senior Vice President [6/00 - present], The Lincoln National
And Director Life Insurance Company. Formerly: Interim
Chief Executive Officer of Annuities and
Senior Vice President [12/99 - 6/00],
Senior Vice President, [5/94 - 12/99], The
Lincoln National Life Insurance Company.
GARY W. PARKER Senior Vice President and Chief Product
Senior Vice President and Officer [3/00 - present], Vice President,
Chief Product Officer Product Management [7/98 - 3/00], The
350 Church Street Lincoln National Life Insurance Company.
Hartford, CT 06103 Formerly: Senior Vice President, Life
Products [10/97 - 6/98], Vice President,
Marketing Services [9/89 - 10/97], Life of
Virginia.
LAWRENCE T. ROWLAND Executive Vice President [10/96 -
Executive Vice President present], Formerly: Senior Vice President
and Director [1/93 - 10/96], The Lincoln National Life
One Reinsurance Place Insurance Company. Chairman, Chief
1700 Magnavox Way Executive Officer, President and Director
Fort Wayne, IN 46802 [10/96 - present], Senior Vice President
[10/95 - 10/96], Vice President [10/91 -
10/95], Lincoln National Reassurance
Company.
KEITH J. RYAN Vice President, Controller and Chief
Vice President, Controller Accounting Officer [1/96 - present], The
and Chief Accounting Officer Lincoln National Life Insurance Company.
LORRY J. STENSRUD Chief Executive Officer of Annuities,
Chief Executive Officer Executive Vice President and Director
of Annuities, Executive [6/00 - present], The Lincoln National
Vice President and Director Life Insurance Company. Formerly:
President and Chief Executive Officer
[6/95 - 6/00], Cova Life Insurance (Xerox
Life).
TODD R. STEPHENSON Senior Vice President and Treasurer
Senior Vice President [4/00 - present], The Lincoln National
And Treasurer Life Insurance Company. Formerly: Senior
Vice President, Chief Financial Officer
and Assistant Treasurer [3/99 - 4/00],
The Lincoln National Life Insurance
Company; Senior Vice President and Chief
Operating Officer [1/98 - 3/99], Lincoln
Life & Annuity Distributors, Inc.; Senior
Vice President and Chief Operating Officer
[1/98 - 3/99], Lincoln Financial Advisors
Corporation; Senior Vice President,
Treasurer, Chief Financial Officer and
Director [2/95 - 12/97], American States
Insurance Company.
RICHARD C. VAUGHAN Executive Vice President and Chief
Director Financial Officer [1/95 - present],
Centre Square Formerly: Senior Vice President and Chief
West Tower Financial Officer [6/92 - 1/95], Lincoln
1500 Market Street National Corporation.
Suite 3900
Philadelphia, PA 19102
MICHAEL R. WALKER Senior Vice President and Chief
Senior Vice President and Development Officer [3/00 - present],
Chief Development Officer Senior Vice President [1/98 - 3/00], Vice
350 Church Street President [1/96 - 1/98], The Lincoln
Hartford, CT 06103 National Life Insurance Company. Formerly:
Vice President [3/93 - 1/96], Employers
Health Insurance Company.
</TABLE>
Supplement Page 3
<PAGE>
4.__ The following is added to APPENDIX 4 ILLUSTRATIONS OF ACCUMULATION VALUES,
SURRENDER VALUES, AND DEATH BENEFIT PROCEEDS, at the end of the last
paragraph on page 48:
If the Coverage Protection Benefit is in effect for a Policy, then the Death
Benefit may remain available for a longer period than is shown on these
illustrations.
5.__ The following Financial Statements are required to be added, based on the
timing of this Supplement.
Lincoln Life Flexible Premium Variable Life Account M: as of June 30,
2000--unaudited.
The Lincoln National Life Insurance Company: as of June 30, 2000--unaudited.
Supplement Page 4
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
STATEMENT OF ASSETS AND LIABILITY
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
AIM AIM AIM
V.I. V.I. AIM V.I. AIM
CAPITAL DIVERSIFIED V.I. INTERNATIONAL V.I.
APPRECIATION INCOME GROWTH EQUITY VALUE
COMBINED SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------
ASSETS
Investments at Market--
Affiliated (Cost $39,945,960) $ 40,803,874 $ -- $ -- $ -- $ -- $ --
Investments at Market--
Unaffiliated (Cost
$139,475,744) 146,639,335 4,213,855 514,826 18,073,731 1,142,819 23,113,974
-------------------------------- ------------ ---------- --------- ----------- ----------- -----------
Total Investments 187,443,209 4,213,855 514,826 18,073,731 1,142,819 23,113,974
LIABILITY--
Payable to The Lincoln National
Life Insurance Company 3,950 91 11 375 25 482
-------------------------------- ------------ ---------- --------- ----------- ----------- -----------
NET ASSETS $187,439,259 $4,213,764 $ 514,815 $18,073,356 $ 1,142,794 $23,113,492
-------------------------------- ============ ========== ========= =========== =========== ===========
Percent of net assets 100.00% 2.25% 0.27% 9.64% 0.61% 12.33%
-------------------------------- ============ ========== ========= =========== =========== ===========
NET ASSETS ARE REPRESENTED BY:
VUL I Policies:
Units in accumulation period 247,704 53,954 329,688 -- 459,179
Unit value $ 17.011 $ 9.542 $ 16.331 $ -- $ 14.902
-------------------------------- ---------- --------- ----------- ----------- -----------
4,213,764 514,815 5,384,061 -- 6,842,831
-------------------------------- ---------- --------- ----------- ----------- -----------
VUL-CV Policies:
Units in accumulation period -- -- 924,182 67,346 1,257,215
Unit value $ -- $ -- $ 13.042 $ 13.533 $ 11.774
-------------------------------- ---------- --------- ----------- ----------- -----------
-- -- 12,052,832 911,412 14,802,838
-------------------------------- ---------- --------- ----------- ----------- -----------
VUL-DB Policies:
Units in accumulation period -- -- 47,751 18,452 120,968
Unit value $ -- $ -- $ 13.329 $ 12.540 $ 12.134
-------------------------------- ---------- --------- ----------- ----------- -----------
-- -- 636,464 231,381 1,467,822
-------------------------------- ---------- --------- ----------- ----------- -----------
NET ASSETS $4,213,764 $ 514,815 $18,073,356 $ 1,142,794 $23,113,492
-------------------------------- ========== ========= =========== =========== ===========
<CAPTION>
AFIS AFIS BARON DEUTSCHE DEUTSCHE
AFIS GROWTH- GLOBAL SMALL CAPITAL VIT VIT
GROWTH INCOME CAPITALIZATION ASSET EAFE EQUITY
CLASS 2 CLASS 2 CLASS 2 12B1 EQUITY INDEX 500 INDEX
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
--------------------------------
ASSETS
Investments at Market--
Affiliated (Cost $39,945,960) $ -- $ -- $ -- $ -- $ -- $ --
Investments at Market--
Unaffiliated (Cost
$139,475,744) 1,964,994 598,832 313,889 729,368 1,269,491 26,295,485
-------------------------------- ---------- --------- ----------- --------- ----------- -----------
Total Investments 1,964,994 598,832 313,889 729,368 1,269,491 26,295,485
LIABILITY--
Payable to The Lincoln National
Life Insurance Company 41 13 7 15 26 554
-------------------------------- ---------- --------- ----------- --------- ----------- -----------
NET ASSETS $1,964,953 $ 598,819 $ 313,882 $ 729,353 $ 1,269,465 $26,294,931
-------------------------------- ========== ========= =========== ========= =========== ===========
Percent of net assets 1.05% 0.32% 0.17% 0.39% 0.68% 14.03%
-------------------------------- ========== ========= =========== ========= =========== ===========
NET ASSETS ARE REPRESENTED BY:
VUL I Policies:
Units in accumulation period -- -- -- -- -- 854,461
Unit value $ -- $ -- $ -- $ -- $ -- $ 13.182
-------------------------------- ---------- --------- ----------- --------- ----------- -----------
-- -- -- -- -- 11,263,791
-------------------------------- ---------- --------- ----------- --------- ----------- -----------
VUL-CV Policies:
Units in accumulation period 170,224 56,744 29,583 60,472 100,436 1,319,319
Unit value $ 10.198 $ 9.940 $ 9.534 $ 11.354 $ 11.727 $ 10.930
-------------------------------- ---------- --------- ----------- --------- ----------- -----------
1,735,972 564,020 282,048 686,588 1,177,848 14,419,681
-------------------------------- ---------- --------- ----------- --------- ----------- -----------
VUL-DB Policies:
Units in accumulation period 14,958 3,120 2,338 3,348 8,206 52,678
Unit value $ 15.309 $ 11.153 $ 13.616 $ 12.772 $ 11.164 $ 11.607
-------------------------------- ---------- --------- ----------- --------- ----------- -----------
228,982 34,799 31,833 42,765 91,616 611,458
-------------------------------- ---------- --------- ----------- --------- ----------- -----------
NET ASSETS $1,964,953 $ 598,819 $ 313,882 $ 729,353 $ 1,269,465 $26,294,931
-------------------------------- ========== ========= =========== ========= =========== ===========
</TABLE>
See accompanying notes.
Supplement Page 5
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
STATEMENT OF ASSETS AND LIABILITY (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
DEUTSCHE
VIT DGPF DGPF
SMALL DGPF DGPF EMERGING SMALL DGPF
CAP INDEX HIGH YIELD DEVON MARKETS CAP VALUE REIT
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
ASSETS
Investments at Market--Affiliated
(Cost $39,945,960) $ -- $ 408,860 $ 172,214 $ 951,415 $3,923,668 $ 162,701
Investments at Market--Unaffiliated
(Cost $139,475,744) 1,519,044 -- -- -- -- --
----------------------------------------- ---------- --------- --------- --------- ---------- ---------
Total Investments 1,519,044 408,860 172,214 951,415 3,923,668 162,701
LIABILITY--
Payable to The Lincoln National Life
Insurance Company 31 8 4 21 85 3
----------------------------------------- ---------- --------- --------- --------- ---------- ---------
NET ASSETS $1,519,013 $ 408,852 $ 172,210 $ 951,394 $3,923,583 $ 162,698
----------------------------------------- ========== ========= ========= ========= ========== =========
Percent of net assets 0.81% 0.22% 0.09% 0.51% 2.09% 0.09%
----------------------------------------- ========== ========= ========= ========= ========== =========
NET ASSETS ARE REPRESENTED BY:
VUL I Policies:
Units in accumulation period -- -- -- 28,862 182,381 --
Unit value $ -- $ -- $ -- $ 10.393 $ 9.177 $ --
----------------------------------------- ---------- --------- --------- --------- ---------- ---------
-- -- -- 299,969 1,673,788 --
----------------------------------------- ---------- --------- --------- --------- ---------- ---------
VUL-CV Policies:
Units in accumulation period 124,102 40,517 19,431 46,924 207,127 14,751
Unit value $ 11.638 $ 8.674 $ 8.821 $ 11.063 $ 9.448 $ 10.649
----------------------------------------- ---------- --------- --------- --------- ---------- ---------
1,444,288 351,430 171,393 519,117 1,956,856 157,083
----------------------------------------- ---------- --------- --------- --------- ---------- ---------
VUL-DB Policies:
Units in accumulation period 5,951 6,147 80 11,639 27,663 466
Unit value $ 12.557 $ 9.342 $ 10.245 $ 11.367 $ 10.589 $ 12.049
----------------------------------------- ---------- --------- --------- --------- ---------- ---------
74,724 57,422 818 132,308 292,939 5,615
----------------------------------------- ---------- --------- --------- --------- ---------- ---------
NET ASSETS $1,519,013 $ 408,852 $ 172,210 $ 951,394 $3,923,583 $ 162,698
----------------------------------------- ========== ========= ========= ========= ========== =========
<CAPTION>
FIDELITY
FIDELITY FIDELITY VIP FIDELITY FIDELITY
VIP VIP HIGH VIP II VIP II
DGPF EQUITY- GROWTH INCOME ASSET CONTRAFUND
TREND INCOME SERVICE CLASS SERVICE CLASS MANAGER SERVICE CLASS
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------
ASSETS
Investments at Market--Affiliated
(Cost $39,945,960) $8,424,159 $ -- $ -- $ -- $ -- $ --
Investments at Market--Unaffiliated
(Cost $139,475,744) 4,616,868 47,931 8,614 959,333 5,677,669 5,677,669
----------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Total Investments 8,424,159 4,616,868 47,931 8,614 959,333 5,677,669
LIABILITY--
Payable to The Lincoln National Life
Insurance Company 176 102 1 -- 21 118
----------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS $8,423,983 $4,616,766 $ 47,930 $ 8,614 $ 959,312 $5,677,551
----------------------------------------- ========== ========== ========== ========== ========== ==========
Percent of net assets 4.49% 2.46% 0.03% 0.01% 0.51% 3.03%
----------------------------------------- ========== ========== ========== ========== ========== ==========
NET ASSETS ARE REPRESENTED BY:
VUL I Policies:
Units in accumulation period 137,291 441,110 -- -- 82,874 --
Unit value $ 21.269 $ 10.466 $ -- $ -- $ 11.576 $ --
----------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
2,920,090 4,616,766 -- -- 959,312 --
----------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
VUL-CV Policies:
Units in accumulation period 290,513 -- 4,527 775 -- 452,846
Unit value $ 17.789 $ -- $ 10.078 $ 9.947 $ -- $ 11.269
----------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
5,167,943 -- 45,621 7,711 -- 5,103,020
----------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
VUL-DB Policies:
Units in accumulation period 21,212 -- 229 91 -- 48,294
Unit value $ 15.838 $ -- $ 10.076 $ 9.946 $ -- $ 11.896
----------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
335,949 -- 2,309 903 -- 574,531
----------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS $8,423,983 $4,616,766 $ 47,930 $ 8,614 $ 959,312 $5,677,551
----------------------------------------- ========== ========== ========== ========== ========== ==========
</TABLE>
See accompanying notes.
Supplement Page 6
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
STATEMENT OF ASSETS AND LIABILITY (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
JANUS
FIDELITY JANUS ASPEN
FIDELITY VIP III JANUS ASPEN SERIES
VIP II GROWTH ASPEN SERIES GLOBAL
INVESTMENT OPPORTUNITIES SERIES WORLDWIDE TECHNOLOGY LN
GRADE BOND SERVICE CLASS BALANCED GROWTH SERVICE CLASS BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments at Market--Affiliated
(Cost $39,945,960) $ -- $ -- $ -- $ -- $ -- $6,213,065
Investments at
Market--Unaffiliated (Cost
$139,475,744) 2,463,575 2,569,011 7,255,746 11,509,491 52,089 --
------------------------------------ ---------- ----------- ---------- ----------- ---------- ----------
Total Investments 2,463,575 2,569,011 7,255,746 11,509,491 52,089 6,213,065
LIABILITY--
Payable to The Lincoln National Life
Insurance Company 54 52 153 240 1 130
------------------------------------ ---------- ----------- ---------- ----------- ---------- ----------
NET ASSETS $2,463,521 $ 2,568,959 $7,255,593 $11,509,251 $ 52,088 $6,212,935
------------------------------------ ========== =========== ========== =========== ========== ==========
Percent of net assets 1.31% 1.37% 3.87% 6.14% 0.03% 3.31%
------------------------------------ ========== =========== ========== =========== ========== ==========
NET ASSETS ARE REPRESENTED BY:
VUL I Policies:
Units in accumulation period 231,755 -- -- -- -- --
Unit value $ 10.630 $ -- $ -- $ -- $ -- $ --
------------------------------------ ---------- ----------- ---------- ----------- ---------- ----------
2,463,521 -- -- -- -- --
------------------------------------ ---------- ----------- ---------- ----------- ---------- ----------
VUL-CV Policies:
Units in accumulation period -- 256,675 519,551 643,554 5,068 566,651
Unit value $ -- $ 9.645 $ 11.416 $ 15.341 $ 10.091 $ 10.211
------------------------------------ ---------- ----------- ---------- ----------- ---------- ----------
-- 2,475,592 5,931,124 9,872,598 51,144 5,785,843
------------------------------------ ---------- ----------- ---------- ----------- ---------- ----------
VUL-DB Policies:
Units in accumulation period -- 8,928 111,640 111,550 94 41,677
Unit value $ -- $ 10.457 $ 11.864 $ 14.672 $ 10.089 $ 10.248
------------------------------------ ---------- ----------- ---------- ----------- ---------- ----------
-- 93,368 1,324,469 1,636,653 944 427,091
------------------------------------ ---------- ----------- ---------- ----------- ---------- ----------
NET ASSETS $2,463,521 $ 2,568,959 $7,255,593 $11,509,251 $ 52,088 $6,212,935
------------------------------------ ========== =========== ========== =========== ========== ==========
<CAPTION>
LN
LN LN GLOBAL LN LN MFS
CAPITAL EQUITY- ASSET MONEY SOCIAL EMERGING
APPRECIATION INCOME ALLOCATION MARKET AWARENESS GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
------------------------------------
ASSETS
Investments at Market--Affiliated
(Cost $39,945,960) $5,214,272 $ 505,692 $ 273,344 $13,633,477 $ 921,007 $ --
Investments at
Market--Unaffiliated (Cost
$139,475,744) -- -- -- -- -- 12,874,423
------------------------------------ ---------- --------- --------- ----------- --------- -----------
Total Investments 5,214,272 505,692 273,344 13,633,477 921,007 12,874,423
LIABILITY--
Payable to The Lincoln National Life
Insurance Company 108 11 6 296 19 268
------------------------------------ ---------- --------- --------- ----------- --------- -----------
NET ASSETS $5,214,164 $ 505,681 $ 273,338 $13,633,181 $ 920,988 $12,874,155
------------------------------------ ========== ========= ========= =========== ========= ===========
Percent of net assets 2.78% 0.27% 0.15% 7.27% 0.49% 6.87%
------------------------------------ ========== ========= ========= =========== ========= ===========
NET ASSETS ARE REPRESENTED BY:
VUL I Policies:
Units in accumulation period -- -- -- 321,001 -- 216,892
Unit value $ -- $ -- $ -- $ 10.868 $ -- $ 19.513
------------------------------------ ---------- --------- --------- ----------- --------- -----------
-- -- -- 3,488,551 -- 4,232,120
------------------------------------ ---------- --------- --------- ----------- --------- -----------
VUL-CV Policies:
Units in accumulation period 356,247 47,377 24,360 720,277 79,015 494,120
Unit value $ 13.130 $ 9.493 $ 10.646 $ 10.513 $ 11.344 $ 16.059
------------------------------------ ---------- --------- --------- ----------- --------- -----------
4,677,566 449,764 259,332 7,571,071 896,326 7,935,155
------------------------------------ ---------- --------- --------- ----------- --------- -----------
VUL-DB Policies:
Units in accumulation period 40,974 5,120 1,273 249,507 2,045 45,283
Unit value $ 13.096 $ 10.922 $ 10.999 $ 10.315 $ 12.057 $ 15.610
------------------------------------ ---------- --------- --------- ----------- --------- -----------
536,598 55,917 14,005 2,573,559 24,661 706,880
------------------------------------ ---------- --------- --------- ----------- --------- -----------
NET ASSETS $5,214,164 $ 505,681 $ 273,338 $13,633,181 $ 920,988 $12,874,155
------------------------------------ ========== ========= ========= =========== ========= ===========
</TABLE>
See accompanying notes.
Supplement Page 7
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
STATEMENT OF ASSETS AND LIABILITY (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
OCC
MFS NB AMT ACCUMULATION OCC TEMPLETON
TOTAL MFS MID-CAP NB AMT GLOBAL ACCUMULATION ASSET
RETURN UTILITIES GROWTH PARTNERS EQUITY MANAGED STRATEGY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments at
Market--Affiliated
(Cost $39,945,960) $ -- $ -- $ -- $ -- $ -- $ -- $ --
Investments at
Market--Unaffiliated (Cost
$139,475,744) 2,926,045 3,229,292 3,426,812 393,674 734,695 809,671 388,309
------------------------------- ---------- ---------- ---------- --------- ----------- ----------- ---------
Total Investments 2,926,045 3,229,292 3,426,812 393,674 734,695 809,671 388,309
LIABILITY--
Payable to The Lincoln National
Life Insurance Company 63 69 71 8 16 18 8
------------------------------- ---------- ---------- ---------- --------- ----------- ----------- ---------
NET ASSETS $2,925,982 $3,229,223 $3,426,741 $ 393,666 $ 734,679 $ 809,653 $ 388,301
------------------------------- ========== ========== ========== ========= =========== =========== =========
Percent of net assets 1.56% 1.72% 1.83% 0.21% 0.39% 0.43% 0.21%
------------------------------- ========== ========== ========== ========= =========== =========== =========
NET ASSETS ARE REPRESENTED BY:
VUL I Policies:
Units in accumulation period 181,459 116,385 -- -- 60,106 82,286 31,642
Unit value $ 10.859 $ 14.483 $ -- $ -- $ 12.223 $ 9.839 $ 12.272
------------------------------- ---------- ---------- ---------- --------- ----------- ----------- ---------
1,970,415 1,685,577 -- -- 734,679 809,653 388,301
------------------------------- ---------- ---------- ---------- --------- ----------- ----------- ---------
VUL-CV Policies:
Units in accumulation period 88,371 112,312 183,650 37,313 -- -- --
Unit value $ 10.058 $ 12.590 $ 16.934 $ 9.425 $ -- $ -- $ --
------------------------------- ---------- ---------- ---------- --------- ----------- ----------- ---------
888,846 1,414,034 3,109,876 351,700 -- -- --
------------------------------- ---------- ---------- ---------- --------- ----------- ----------- ---------
VUL-DB Policies:
Units in accumulation period 6,250 10,397 18,472 3,722 -- -- --
Unit value $ 10.675 $ 12.466 $ 17.154 $ 11.274 $ -- $ -- $ --
------------------------------- ---------- ---------- ---------- --------- ----------- ----------- ---------
66,721 129,612 316,865 41,965 -- -- --
------------------------------- ---------- ---------- ---------- --------- ----------- ----------- ---------
NET ASSETS $2,925,982 $3,229,223 $3,426,741 $ 393,666 $ 734,679 $ 809,653 $ 388,301
------------------------------- ========== ========== ========== ========= =========== =========== =========
<CAPTION>
TEMPLETON TEMPLETON
TEMPLETON INTERNATIONAL TEMPLETON GROWTH
INTERNATIONAL SECURITIES GROWTH SECURITIES
SECURITIES CLASS 2 SECURITIES CLASS 2
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C>
-----------------------------
ASSETS
Investments at
Market--Affiliated
(Cost $39,945,960) $ -- $ -- $ -- $ --
Investments at
Market--Unaffiliated (Cost
$139,475,744) 3,754,531 2,322,635 614,800 253,813
----------------------------- ----------- ----------- --------- ---------
Total Investments 3,754,531 2,322,635 614,800 253,813
LIABILITY--
Payable to The Lincoln Nation
Life Insurance Company 82 48 13 6
----------------------------- ----------- ----------- --------- ---------
NET ASSETS $ 3,754,449 $ 2,322,587 $ 614,787 $ 253,807
----------------------------- =========== =========== ========= =========
Percent of net assets 2.00% 1.24% 0.33% 0.14%
----------------------------- =========== =========== ========= =========
NET ASSETS ARE REPRESENTED BY
VUL I Policies:
Units in accumulation perio 317,810 -- 50,289 --
Unit value $ 11.814 $ -- $ 12.225 $ --
----------------------------- ----------- ----------- --------- ---------
3,754,449 -- 614,787 --
----------------------------- ----------- ----------- --------- ---------
VUL-CV Policies:
Units in accumulation perio -- 199,488 -- 16,075
Unit value $ -- $ 11.275 $ -- $ 11.890
----------------------------- ----------- ----------- --------- ---------
-- 2,249,290 -- 191,141
----------------------------- ----------- ----------- --------- ---------
VUL-DB Policies:
Units in accumulation perio 6,267 -- 5,044
Unit value $ -- $ 11.696 $ -- $ 12.424
----------------------------- ----------- ----------- --------- ---------
-- 73,297 -- 62,666
----------------------------- ----------- ----------- --------- ---------
NET ASSETS $ 3,754,449 $ 2,322,587 $ 614,787 $ 253,807
----------------------------- =========== =========== ========= =========
</TABLE>
See accompanying notes.
Supplement Page 8
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
AIM V.I. AIM V.I. AIM V.I.
CAPITAL DIVERSIFIED AIM V.I. INTERNATIONAL AIM V.I.
APPRECIATION INCOME GROWTH EQUITY VALUE
COMBINED SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2000
Net Investment Income (Loss):
Dividends from investment income $ 5,039,670 $ -- $ -- $ -- $ -- $ --
Dividends from net realized gains on
investments -- -- -- -- -- --
Mortality and expense guarantees:
VUL I (222,607) (15,503) (1,935) (20,075) -- (25,983)
VUL-CV (331,816) -- -- (35,150) (2,140) (44,745)
VUL-DB (28,199) -- -- (1,397) (252) (3,142)
-------------------------------------------- ----------- ---------- --------- --------- ----------- ---------
NET INVESTMENT INCOME (LOSS) 4,457,048 (15,503) (1,935) (56,622) (2,392) (73,870)
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments 911,646 73,364 (4,155) 83,931 27,983 95,370
Net change in unrealized appreciation or
depreciation on investments (4,315,160) 249,633 (392) 571,505 (61,177) (343,408)
-------------------------------------------- ----------- ---------- --------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (3,403,514) 322,997 (4,547) 655,436 (33,194) (248,038)
-------------------------------------------- ----------- ---------- --------- --------- ----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,053,534 $ 307,494 $ (6,482) $ 598,814 $ (35,586) $(321,908)
-------------------------------------------- =========== ========== ========= ========= =========== =========
<CAPTION>
AFIS AFIS BARON DEUTSCHE DEUTSCHE
AFIS GROWTH- GLOBAL SMALL CAPITAL VIT VIT
GROWTH INCOME CAPITALIZATION ASSET EAFE EQUITY
CLASS 2 CLASS 2 CLASS 2 12B1 EQUITY INDEX 500 INDEX
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------
SIX MONTHS ENDED JUNE 30, 2000
Net Investment Income (Loss):
Dividends from investment income $ 457 $ 270 $ 219 $ 1,627 $ -- $ --
Dividends from net realized gains on
investments -- -- -- -- -- --
Mortality and expense guarantees:
VUL I -- -- -- -- -- (43,297)
VUL-CV (599) (341) (116) (1,851) (3,898) (46,091)
VUL-DB (483) (68) (63) (98) (228) (1,077)
-------------------------------------------- --------- --------- ----------- --------- ----------- ---------
NET INVESTMENT INCOME (LOSS) (625) (139) 40 (322) (4,126) (90,465)
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments 1,768 143 19 7,133 3,544 161,573
Net change in unrealized appreciation or
depreciation on investments 65,719 (6,965) (589) (867) (45,734) (162,472)
-------------------------------------------- --------- --------- ----------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS 67,487 (6,822) (570) 6,266 (42,190) (899)
-------------------------------------------- --------- --------- ----------- --------- ----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 66,862 $ (6,961) $ (530) $ 5,944 $ (46,316) $ (91,364)
-------------------------------------------- ========= ========= =========== ========= =========== =========
</TABLE>
<TABLE>
<CAPTION>
DEUTSCHE
VIT DGPF DGPF
SMALL DGPF DGPF EMERGING SMALL DGPF
CAP INDEX HIGH YIELD DEVON MARKETS CAP VALUE REIT
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2000
Net Investment Income (Loss):
Dividends from investment income $ -- $ 8,817 $ 1,671 $ 11,946 $ 74,528 $ 990
Dividends from net realized gains on
investments -- -- -- -- -- --
Mortality and expense guarantees:
VUL I -- -- -- (1,174) (6,556) --
VUL-CV (3,056) (1,026) (507) (1,695) (5,076) (140)
VUL-DB (94) (77) (3) (175) (563) (16)
------------------------------------------------ --------- --------- --------- --------- --------- ---------
NET INVESTMENT INCOME (LOSS) (3,150) 7,714 1,161 8,902 62,333 834
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments 10,332 (4,122) 547 26,141 (5,426) 3,514
Net change in unrealized appreciation or
depreciation on investments 31,537 (26,841) (338) (93,380) (35,523) 1,736
------------------------------------------------ --------- --------- --------- --------- --------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS 41,869 (30,963) 209 (67,239) (40,949) 5,250
------------------------------------------------ --------- --------- --------- --------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 38,719 $ (23,249) $ 1,370 $ (58,337) $ 21,384 $ 6,084
------------------------------------------------ ========= ========= ========= ========= ========= =========
<CAPTION>
FIDELITY
FIDELITY FIDELITY VIP FIDELITY
VIP VIP HIGH VIP II
DGPF EQUITY- GROWTH INCOME ASSET
TREND INCOME SERVICE CLASS SERVICE CLASS MANAGER
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C>
------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2000
Net Investment Income (Loss):
Dividends from investment income $ 353,085 $ 356,082 $ -- $ -- $ 90,627
Dividends from net realized gains on
investments -- -- -- -- --
Mortality and expense guarantees:
VUL I (9,594) (17,683) -- -- (3,587)
VUL-CV (14,019) -- (2) (2) --
VUL-DB (546) -- (2) (1) --
------------------------------------------------ --------- --------- ---------- ---------- ---------
NET INVESTMENT INCOME (LOSS) 328,926 338,399 (4) (3) 87,040
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments 160,962 (22,660) (1) -- 426
Net change in unrealized appreciation or
depreciation on investments 68,926 (441,388) 631 (8) (98,455)
------------------------------------------------ --------- --------- ---------- ---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS 229,888 (464,048) 630 (8) (98,029)
------------------------------------------------ --------- --------- ---------- ---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 558,814 $(125,649) $ 626 $ (11) $ (10,989)
------------------------------------------------ ========= ========= ========== ========== =========
<CAPTION>
FIDELITY
VIP II
CONTRAFUND
SERVICE CLASS
SUBACCOUNT
<S> <C>
------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2000
Net Investment Income (Loss):
Dividends from investment income $ 360,197
Dividends from net realized gains on
investments --
Mortality and expense guarantees:
VUL I --
VUL-CV (13,715)
VUL-DB (1,085)
------------------------------------------------ ----------
NET INVESTMENT INCOME (LOSS) 345,397
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments 1,406
Net change in unrealized appreciation or
depreciation on investments (456,437)
------------------------------------------------ ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (455,031)
------------------------------------------------ ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ (109,634)
------------------------------------------------ ==========
</TABLE>
See accompanying notes.
Supplement Page 9
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
STATEMENTS OF OPERATIONS (CONTINUED)
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FIDELITY JANUS JANUS
FIDELITY VIP III JANUS ASPEN ASPEN SERIES
VIP II GROWTH ASPEN SERIES GLOBAL
INVESTMENT OPPORTUNITIES SERIES WORLDWIDE TECHNOLOGY LN
GRADE BOND SERVICE CLASS BALANCED GROWTH SERVICE CLASS BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2000
Net Investment Income (Loss):
Dividends from investment income $ 159,906 $ 137,344 $ 457,448 $ 164,073 $ -- $ 25,679
Dividends from net realized gains on
investments -- -- -- -- -- --
Mortality and expense guarantees:
VUL I (9,545) -- -- -- -- --
VUL-CV -- (7,432) (16,583) (26,588) (8) (15,867)
VUL-DB -- (205) (4,017) (3,859) (1) (311)
--------------------------------------------- ---------- ----------- --------- --------- ---------- ---------
NET INVESTMENT INCOME (LOSS) 150,361 129,707 436,848 133,626 (9) 9,501
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments (21,076) (22,474) 24,777 71,456 (684) (547)
Net change in unrealized appreciation or
depreciation on investments (47,666) (157,695) (459,810) (189,516) 469 93,629
--------------------------------------------- ---------- ----------- --------- --------- ---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (68,742) (180,169) (435,033) (118,060) (215) 93,082
--------------------------------------------- ---------- ----------- --------- --------- ---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 81,619 $ (50,462) $ 1,815 $ 15,566 $ (224) $ 102,583
--------------------------------------------- ========== =========== ========= ========= ========== =========
<CAPTION>
LN
LN LN GLOBAL LN LN MFS
CAPITAL EQUITY- ASSET MONEY SOCIAL EMERGING
APPRECIATION INCOME ALLOCATION MARKET AWARENESS GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------
SIX MONTHS ENDED JUNE 30, 2000
Net Investment Income (Loss):
Dividends from investment income $ 216,474 $ 139,852 $ 18,794 $ 323,183 $ 71,668 $ 623,582
Dividends from net realized gains on
investments -- -- -- -- -- --
Mortality and expense guarantees:
VUL I -- -- -- (16,327) -- (15,040)
VUL-CV (14,126) (1,218) (719) (24,197) (2,780) (25,602)
VUL-DB (1,286) (173) (41) (6,363) (55) (1,188)
--------------------------------------------- ---------- --------- --------- --------- --------- -----------
NET INVESTMENT INCOME (LOSS) 201,062 138,461 18,034 276,296 68,833 581,752
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments 22,523 (3,577) 44 -- 2,929 194,268
Net change in unrealized appreciation or
depreciation on investments (188,676) (151,264) (20,035) -- (46,459) (1,208,722)
--------------------------------------------- ---------- --------- --------- --------- --------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (166,153) (154,841) (19,991) -- (43,530) (1,014,454)
--------------------------------------------- ---------- --------- --------- --------- --------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 34,909 $ (16,380) $ (1,957) $ 276,296 $ 25,303 $ (432,702)
--------------------------------------------- ========== ========= ========= ========= ========= ===========
</TABLE>
<TABLE>
<CAPTION>
OCC
MFS NB AMT ACCUMULATION OCC TEMPLETON
TOTAL MFS MID-CAP NB AMT GLOBAL ACCUMULATION ASSET
RETURN UTILITIES GROWTH PARTNERS EQUITY MANAGED STRATEGY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2000
Net Investment Income (Loss):
Dividends from investment income $ 140,290 $ 207,016 $ 605 $ 42,002 $ 26,953 $ 75,270 $ 60,998
Dividends from net realized
gains on investments -- -- -- -- -- -- --
Mortality and expense
guarantees:
VUL I (7,567) (5,963) -- -- (2,682) (3,271) (1,364)
VUL-CV (3,118) (3,029) (7,669) (976) -- -- --
VUL-DB (177) (321) (374) (150) -- -- --
---------------------------------- --------- --------- --------- --------- ----------- ----------- ---------
NET INVESTMENT INCOME (LOSS) 129,428 197,703 (7,438) 40,876 24,271 71,999 59,634
Net Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) on
investments (9,257) 71,871 38,004 (7,885) (5,983) (7,712) (717)
Net change in unrealized
appreciation or depreciation
on investments (46,124) (203,202) 12,485 (29,318) (22,937) (91,440) (49,376)
---------------------------------- --------- --------- --------- --------- ----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (55,381) (131,331) 50,489 (37,203) (28,920) (99,152) (50,093)
---------------------------------- --------- --------- --------- --------- ----------- ----------- ---------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $ 74,047 $ 66,372 $ 43,051 $ 3,673 $ (4,649) $ (27,153) $ 9,541
---------------------------------- ========= ========= ========= ========= =========== =========== =========
<CAPTION>
TEMPLETON TEMPLETON
TEMPLETON INTERNATIONAL TEMPLETON GROWTH
INTERNATIONAL SECURITIES GROWTH SECURITIES
SECURITIES CLASS 2 SECURITIES CLASS 2
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C>
----------------------------------
SIX MONTHS ENDED JUNE 30, 2000
Net Investment Income (Loss):
Dividends from investment income $ 449,947 $ 274,388 $ 122,631 $ 41,051
Dividends from net realized
gains on investments -- -- -- --
Mortality and expense
guarantees:
VUL I (13,225) -- (2,236) --
VUL-CV -- (7,126) -- (609)
VUL-DB -- (128) -- (180)
---------------------------------- ----------- ----------- --------- ---------
NET INVESTMENT INCOME (LOSS) 436,722 267,134 120,395 40,262
Net Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) on
investments 4,285 (12,925) (44,365) (3,101)
Net change in unrealized
appreciation or depreciation
on investments (411,168) (227,922) (58,122) (28,004)
---------------------------------- ----------- ----------- --------- ---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (406,883) (240,847) (102,487) (31,105)
---------------------------------- ----------- ----------- --------- ---------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $ 29,839 $ 26,287 $ 17,908 $ 9,157
---------------------------------- =========== =========== ========= =========
</TABLE>
See accompanying notes.
Supplement Page 10
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
AIM AIM AIM
V.I. V.I. AIM V.I. AIM
CAPITAL DIVERSIFIED V.I. INTERNATIONAL V.I.
APPRECIATION INCOME GROWTH EQUITY VALUE
COMBINED SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
NET ASSETS AT DECEMBER 31, 1999 $119,523,957 $3,565,816 $ 460,845 $11,039,206 $ 208,713 $14,096,576
Changes From Operations:
Net investment income (loss) 4,457,048 (15,503) (1,935) (56,622) (2,392) (73,870)
Net realized gain (loss) on
investments 911,646 73,364 (4,155) 83,931 27,983 95,370
Net change in unrealized
appreciation or depreciation on
investments (4,315,160) 249,633 (392) 571,505 (61,177) (343,408)
------------------------------------- ------------ ---------- --------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,053,534 307,494 (6,482) 598,814 (35,586) (321,908)
Change From Unit Transactions:
Participant purchases 123,648,420 552,579 103,294 7,649,306 1,053,956 11,039,591
Participant withdrawals (56,786,652) (212,125) (42,842) (1,213,970) (84,289) (1,700,767)
------------------------------------- ------------ ---------- --------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM UNIT TRANSACTIONS 66,861,768 340,454 60,452 6,435,336 969,667 9,338,824
------------------------------------- ------------ ---------- --------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS 67,915,302 647,948 53,970 7,034,150 934,081 9,016,916
------------------------------------- ------------ ---------- --------- ----------- ----------- -----------
NET ASSETS AT JUNE 30, 2000 $187,439,259 $4,213,764 $ 514,815 $18,073,356 $ 1,142,794 $23,113,492
------------------------------------- ============ ========== ========= =========== =========== ===========
<CAPTION>
AFIS DEUTSCHE
AFIS GLOBAL BARON VIT DEUTSCHE
AFIS GROWTH- SMALL CAPITAL EAFE VIT
GROWTH INCOME CAPITALIZATION ASSET EQUITY EQUITY
CLASS 2 CLASS 2 CLASS 2 12B1 INDEX 500 INDEX
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------
NET ASSETS AT DECEMBER 31, 1999 $ 48,319 $ 1,295 $ 1,188 $ 299,293 $ 613,107 $20,110,511
Changes From Operations:
Net investment income (loss) (625) (139) 40 (322) (4,126) (90,465)
Net realized gain (loss) on
investments 1,768 143 19 7,133 3,544 161,573
Net change in unrealized
appreciation or depreciation on
investments 65,719 (6,965) (589) (867) (45,734) (162,472)
------------------------------------- ---------- --------- ----------- --------- ---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 66,862 (6,961) (530) 5,944 (46,316) (91,364)
Change From Unit Transactions:
Participant purchases 1,878,613 608,531 321,565 479,434 802,534 8,210,852
Participant withdrawals (28,841) (4,046) (8,341) (55,318) (99,860) (1,935,068)
------------------------------------- ---------- --------- ----------- --------- ---------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM UNIT TRANSACTIONS 1,849,772 604,485 313,224 424,116 702,674 6,275,784
------------------------------------- ---------- --------- ----------- --------- ---------- -----------
TOTAL INCREASE IN NET ASSETS 1,916,634 597,524 312,694 430,060 656,358 6,184,420
------------------------------------- ---------- --------- ----------- --------- ---------- -----------
NET ASSETS AT JUNE 30, 2000 $1,964,953 $ 598,819 $ 313,882 $ 729,353 $1,269,465 $26,294,931
------------------------------------- ========== ========= =========== ========= ========== ===========
</TABLE>
See accompanying notes.
Supplement Page 11
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
DEUTSCHE
VIT DGPF DGPF
SMALL DGPF DGPF EMERGING SMALL DGPF DGPF
CAP INDEX HIGH YIELD DEVON MARKETS CAP VALUE REIT TREND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------------
NET ASSETS AT DECEMBER 31, 1999 $ 500,129 $ 191,882 $ 69,175 $ 742,880 $2,351,933 $ 8,850 $3,653,237
Changes From Operations:
Net investment income (loss) (3,150) 7,714 1,161 8,902 62,333 834 328,926
Net realized gain (loss) on
investments 10,332 (4,122) 547 26,141 (5,426) 3,514 160,962
Net change in unrealized
appreciation or depreciation on
investments 31,537 (26,841) (338) (93,380) (35,523) 1,736 68,926
----------------------------------- ---------- --------- --------- --------- ---------- --------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS 38,719 (23,249) 1,370 (58,337) 21,384 6,084 558,814
Change From Unit Transactions:
Participant purchases 1,050,423 273,504 111,666 334,697 2,031,052 172,413 4,657,372
Participant withdrawals (70,258) (33,285) (10,001) (67,846) (480,786) (24,649) (445,440)
----------------------------------- ---------- --------- --------- --------- ---------- --------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM UNIT TRANSACTIONS 980,165 240,219 101,665 266,851 1,550,266 147,764 4,211,932
----------------------------------- ---------- --------- --------- --------- ---------- --------- ----------
TOTAL INCREASE IN NET ASSETS 1,018,884 216,970 103,035 208,514 1,571,650 153,848 4,770,746
----------------------------------- ---------- --------- --------- --------- ---------- --------- ----------
NET ASSETS AT JUNE 30, 2000 $1,519,013 $ 408,852 $ 172,210 $ 951,394 $3,923,583 $ 162,698 $8,423,983
----------------------------------- ========== ========= ========= ========= ========== ========= ==========
<CAPTION>
FIDELITY
FIDELITY FIDELITY VIP FIDELITY FIDELITY
VIP VIP HIGH VIP II VIP II
EQUITY- GROWTH INCOME ASSET CONTRAFUND
INCOME SERVICE CLASS SERVICE CLASS MANAGER SERVICE CLASS
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C>
-----------------------------------
NET ASSETS AT DECEMBER 31, 1999 $4,514,998 $ -- $ -- $ 897,407 $2,371,584
Changes From Operations:
Net investment income (loss) 338,399 (4) (3) 87,040 345,397
Net realized gain (loss) on
investments (22,660) (1) -- 426 1,406
Net change in unrealized
appreciation or depreciation on
investments (441,388) 631 (8) (98,455) (456,437)
----------------------------------- ---------- ---------- ---------- --------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS (125,649) 626 (11) (10,989) (109,634)
Change From Unit Transactions:
Participant purchases 683,483 47,468 8,823 151,149 3,884,130
Participant withdrawals (456,066) (164) (198) (78,255) (468,529)
----------------------------------- ---------- ---------- ---------- --------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM UNIT TRANSACTIONS 227,417 47,304 8,625 72,894 3,415,601
----------------------------------- ---------- ---------- ---------- --------- ----------
TOTAL INCREASE IN NET ASSETS 101,768 47,930 8,614 61,905 3,305,967
----------------------------------- ---------- ---------- ---------- --------- ----------
NET ASSETS AT JUNE 30, 2000 $4,616,766 $ 47,930 $ 8,614 $ 959,312 $5,677,551
----------------------------------- ========== ========== ========== ========= ==========
</TABLE>
Supplement Page 12
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
JANUS
FIDELITY JANUS ASPEN
FIDELITY VIP III JANUS ASPEN SERIES
VIP II GROWTH ASPEN SERIES GLOBAL
INVESTMENT OPPORTUNITIES SERIES WORLDWIDE TECHNOLOGY LN
GRADE BOND SERVICE CLASS BALANCED GROWTH SERVICE CLASS BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------
NET ASSETS AT DECEMBER 31,
1999 $2,312,747 $ 1,485,062 $3,009,728 $ 4,091,996 $ -- $2,250,396
Changes From Operations:
Net investment income (loss) 150,361 129,707 436,848 133,626 (9) 9,501
Net realized gain (loss) on
investments (21,076) (22,474) 24,777 71,456 (684) (547)
Net change in unrealized
appreciation or
depreciation on
investments (47,666) (157,695) (459,810) (189,516) 469 93,629
------------------------------ ---------- ----------- ---------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS 81,619 (50,462) 1,815 15,566 (224) 102,583
Change From Unit Transactions:
Participant purchases 365,120 1,312,251 4,767,343 8,143,517 55,144 4,369,994
Participant withdrawals (295,965) (177,892) (523,293) (741,828) (2,832) (510,038)
------------------------------ ---------- ----------- ---------- ----------- ---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM UNIT
TRANSACTIONS 69,155 1,134,359 4,244,050 7,401,689 52,312 3,859,956
------------------------------ ---------- ----------- ---------- ----------- ---------- ----------
TOTAL INCREASE IN NET ASSETS 150,774 1,083,897 4,245,865 7,417,255 52,088 3,962,539
------------------------------ ---------- ----------- ---------- ----------- ---------- ----------
NET ASSETS AT JUNE 30, 2000 $2,463,521 $ 2,568,959 $7,255,593 $11,509,251 $ 52,088 $6,212,935
------------------------------ ========== =========== ========== =========== ========== ==========
<CAPTION>
LN
LN LN GLOBAL LN LN MFS
CAPITAL EQUITY- ASSET MONEY SOCIAL EMERGING
APPRECIATION INCOME ALLOCATION MARKET AWARENESS GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
------------------------------
NET ASSETS AT DECEMBER 31,
1999 $2,307,659 $ 214,500 $ 119,500 $16,393,841 $ 578,417 $ 8,932,431
Changes From Operations:
Net investment income (loss) 201,062 138,461 18,034 276,296 68,833 581,752
Net realized gain (loss) on
investments 22,523 (3,577) 44 -- 2,929 194,268
Net change in unrealized
appreciation or
depreciation on
investments (188,676) (151,264) (20,035) -- (46,459) (1,208,722)
------------------------------ ---------- --------- --------- ----------- --------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS 34,909 (16,380) (1,957) 276,296 25,303 (432,702)
Change From Unit Transactions:
Participant purchases 3,236,099 351,456 176,382 35,042,367 360,056 5,099,590
Participant withdrawals (364,503) (43,895) (20,587) (38,079,323) (42,788) (725,164)
------------------------------ ---------- --------- --------- ----------- --------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM UNIT
TRANSACTIONS 2,871,596 307,561 155,795 (3,036,956) 317,268 4,374,426
------------------------------ ---------- --------- --------- ----------- --------- -----------
TOTAL INCREASE IN NET ASSETS 2,906,505 291,181 153,838 (2,760,660) 342,571 3,941,724
------------------------------ ---------- --------- --------- ----------- --------- -----------
NET ASSETS AT JUNE 30, 2000 $5,214,164 $ 505,681 $ 273,338 $13,633,181 $ 920,988 $12,874,155
------------------------------ ========== ========= ========= =========== ========= ===========
</TABLE>
See accompanying notes.
Supplement Page 13
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
OCC
MFS NB AMT ACCUMULATION OCC
TOTAL MFS MID-CAP NB AMT GLOBAL ACCUMULATION
RETURN UTILITIES GROWTH PARTNERS EQUITY MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------------
NET ASSETS AT DECEMBER 31, 1999 $2,620,722 $1,874,283 $ 689,818 $ 180,982 $ 586,576 $ 832,360
Changes From Operations:
Net investment income (loss) 129,428 197,703 (7,438) 40,876 24,271 71,999
Net realized gain (loss) on investments (9,257) 71,871 38,004 (7,885) (5,983) (7,712)
Net change in unrealized appreciation or
depreciation on investments (46,124) (203,202) 12,485 (29,318) (22,937) (91,440)
------------------------------------------ ---------- ---------- ---------- --------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 74,047 66,372 43,051 3,673 (4,649) (27,153)
Change From Unit Transactions:
Participant purchases 482,713 1,470,753 2,893,467 275,414 192,737 85,040
Participant withdrawals (251,500) (182,185) (199,595) (66,403) (39,985) (80,594)
------------------------------------------ ---------- ---------- ---------- --------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
UNIT TRANSACTIONS 231,213 1,288,568 2,693,872 209,011 152,752 4,446
------------------------------------------ ---------- ---------- ---------- --------- ----------- -----------
TOTAL INCREASE IN NET ASSETS 305,260 1,354,940 2,736,923 212,684 148,103 (22,707)
------------------------------------------ ---------- ---------- ---------- --------- ----------- -----------
NET ASSETS AT JUNE 30, 2000 $2,925,982 $3,229,223 $3,426,741 $ 393,666 $ 734,679 $ 809,653
------------------------------------------ ========== ========== ========== ========= =========== ===========
<CAPTION>
TEMPLETON TEMPLETON
TEMPLETON TEMPLETON INTERNATIONAL TEMPLETON GROWTH
ASSET INTERNATIONAL SECURITIES GROWTH SECURITIES
STRATEGY SECURITIES CLASS 2 SECURITIES CLASS 2
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C>
------------------------------------------
NET ASSETS AT DECEMBER 31, 1999 $ 305,083 $ 3,106,499 $ 1,307,980 $ 509,109 $ 67,324
Changes From Operations:
Net investment income (loss) 59,634 436,722 267,134 120,395 40,262
Net realized gain (loss) on investments (717) 4,285 (12,925) (44,365) (3,101)
Net change in unrealized appreciation or
depreciation on investments (49,376) (411,168) (227,922) (58,122) (28,004)
------------------------------------------ --------- ----------- ----------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 9,541 29,839 26,287 17,908 9,157
Change From Unit Transactions:
Participant purchases 101,781 4,313,180 3,278,477 711,776 457,328
Participant withdrawals (28,104) (3,695,069) (2,290,157) (624,006) (280,002)
------------------------------------------ --------- ----------- ----------- --------- ---------
NET INCREASE IN NET ASSETS RESULTING FROM
UNIT TRANSACTIONS 73,677 618,111 988,320 87,770 177,326
------------------------------------------ --------- ----------- ----------- --------- ---------
TOTAL INCREASE IN NET ASSETS 83,218 647,950 1,014,607 105,678 186,483
------------------------------------------ --------- ----------- ----------- --------- ---------
NET ASSETS AT JUNE 30, 2000 $ 388,301 $ 3,754,449 $ 2,322,587 $ 614,787 $ 253,807
------------------------------------------ ========= =========== =========== ========= =========
</TABLE>
See accompanying notes.
Supplement Page 14
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ACCOUNTING POLICIES AND VARIABLE ACCOUNT INFORMATION
THE VARIABLE ACCOUNT:
Lincoln Life Flexible Premium Variable Life Account M (the
Variable Account) is a segregated investment account of The
Lincoln National Life Insurance Company (Lincoln Life) and
is registered as a unit investment trust with the Securities
and Exchange Commission under the Investment Company Act of
1940, as amended. The operations of the Variable Account,
which commenced on June 18, 1998, are part of the operations
of Lincoln Life. The Variable Account consist of three
products which are listed below.
--VUL I
--VUL-CV
--VUL-DB
The assets of the Variable Account are owned by Lincoln
Life. The portion of the Variable Account's assets
supporting the variable life policies may not be used to
satisfy liabilities arising from any other business of
Lincoln Life.
BASIS OF PRESENTATION:
The accompanying financial statements have been prepared in
accordance with accounting principles generally accepted in
the United States for unit investment trusts.
INVESTMENTS:
The assets of the Variable Account are divided into variable
subaccounts each of which is invested in shares of one of 46
portfolios of fourteen diversified open-end management
investment companies, each portfolio with its own investment
objective. The variable subaccounts are:
AIM Variable Insurance Funds, Inc.:
AIM V.I. Capital Appreciation Fund
AIM V.I. Diversified Income Fund
AIM V.I. Growth Fund
AIM V.I. International Equity Fund
AIM V.I. Value Fund
American Funds Insurance Series (AFIS):
AFIS Growth Class 2 Fund
AFIS Growth-Income Class 2 Fund
AFIS Global Small Capitlization Class 2 Fund
Baron Capital Funds Trust:
Baron Capital Asset 12b1 Fund
Deutsche Asset Management VIT Funds Trust (Deutsche):
EAFE Equity Index Fund
Equity 500 Index Fund
Small Cap Index Fund
Delaware Group Premium Fund (DGPF):
High Yield Series
Devon Series
Emerging Markets Series
REIT Series
Small Cap Value Series
Trend Series
Supplement Page 15
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
1. ACCOUNTING POLICIES AND VARIABLE ACCOUNT INFORMATION (CONTINUED)
Fidelity Variable Insurance Products Fund:
Equity-Income Portfolio
Growth Service Class Portfolio
High Income Service Class Portfolio
Fidelity Variable Insurance Products Fund II:
Asset Manager Portfolio
Contrafund Service Class Portfolio
Investment Grade Bond Portfolio
Fidelity Variable Insurance Products Fund III:
Growth Opportunities Service Class Portfolio
Janus Aspen Series:
Janus Aspen Series Balanced Portfolio
Janus Aspen Series Worldwide Growth Portfolio
Janus Aspen Series Global Technology Service
Class Portfolio
Lincoln National (LN):
LN Bond Fund, Inc.
LN Capital Appreciation Fund, Inc.
LN Equity-Income Fund, Inc.
LN Global Asset Allocation Fund, Inc.
LN Money Market Fund, Inc.
LN Social Awareness Fund, Inc.
MFS Variable Insurance Trust:
MFS Emerging Growth Series
MFS Total Return Series
MFS Utilities Series
Neuberger Berman Advisers Management Trust (NB AMT):
AMT Mid-Cap Growth Portfolio
AMT Partners Portfolio
OCC Accumulation Trust:
OCC Accumulation Global Equity Portfolio
OCC Accumulation Managed Portfolio
Franklin Templeton Variable Insurance Products Trust:
Templeton Asset Strategy Fund
Templeton International Securities Fund
Templeton International Securities Class 2 Fund
Templeton Growth Securities Fund
Templeton Growth Securities Class 2 Fund
Investments in the variable subaccounts are stated at the
closing net asset value per share on June 30, 2000, which
approximates fair value. The difference between cost and
fair value is reflected as unrealized appreciation and
depreciation of investments.
Investment transactions are accounted for on a trade date
basis. The cost of investments sold is determined by the
average cost method.
Supplement Page 16
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
1. ACCOUNTING POLICIES AND VARIABLE ACCOUNT INFORMATION (CONTINUED)
DIVIDENDS:
Dividends paid to the Variable Account are automatically
reinvested in shares of the variable subaccounts on the
payable date. Dividend income is recorded on the ex-dividend
date.
FEDERAL INCOME TAXES:
Operations of the Variable Account form a part of and are
taxed with operations of Lincoln Life, which is taxed as a
"life insurance company" under the Internal Revenue Code.
The Variable Account will not be taxed as a regulated
investment company under Subchapter M of the Internal
Revenue Code. Using current federal income tax law, no
federal income taxes are payable with respect to the
Variable Account's net investment income and the net
realized gain on investments.
2. MORTALITY AND EXPENSE GUARANTEES & OTHER TRANSACTIONS WITH AFFILIATE
Amounts are paid to Lincoln Life for mortality and expense
guarantees at a percentage of the current value of the
Variable Account each day. The mortality and expense risk
charges for each of the variable subaccounts are reported in
the statements of operations. The rates are as follows for
the three policy types within the Variable Account.
-- VUL I is currently at an annual rate of .80% for policy
years one through twelve and .55% thereafter.
-- VUL-CV is currently at an annual rate of .75% for policy
years one through ten, .35% for policy years eleven
through twenty and .20% thereafter.
-- VUL-DB is currently at an annual rate of .90% for policy
years one through nineteen and .20% thereafter.
Prior to the allocation of premiums to the Variable Account,
Lincoln Life deducts a premium load of 5% of each premium
payment to cover state taxes and federal income tax
liabilities and a portion of the sales expenses incurred by
Lincoln Life. The premium loads for the six months ended
June 30, 2000 amounted to $3,287,467.
Lincoln Life charges a monthly administrative fee for items
such as premium billings and collection, policy value
calculation, confirmations and periodic reports. The fees
are as follows for the three policy types within the
Variable Account. Administrative fees for the six months
ended June 30, 2000 totaled $618,186.
-- VUL I and LVUL are currently $15 per month for the first
policy year and $5 per month thereafter, guaranteed not to
exceed $10 after the first policy year.
-- VUL-DB is currently at $10 per month and during the first
two policy years, a monthly charge per $1,000 of specified
amount.
Lincoln Life assumes responsibility for providing the
insurance benefit included in the policy. Lincoln Life
charges a monthly deduction for the cost of insurance and
any charges for supplemental riders. The cost of insurance
charge depends on the attained age, risk classification,
gender classification (in accordance with state law) and the
current net amount at risk. On a monthly basis, the
administrative fee and the cost of insurance charge are
deducted proportionately for the value of each variable
subaccount and/or fixed account funding options. The fixed
account is part of the general account of Lincoln Life and
is not included in these financial statements. The cost of
insurance charges for the six months ended June 30, 2000
amounted to $8,354,720.
Supplement Page 17
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
2. MORTALITY AND EXPENSE GUARANTEES & OTHER TRANSACTIONS WITH AFFILIATE
(CONTINUED)
Under certain circumstances, Lincoln Life reserves the right
to charge a transfer fee of $25 for each transfer after the
twelfth transfer per year between variable subaccounts. For
the six months ended June 30, 2000, no transfer fees were
deducted from the variable subaccounts.
Lincoln Life, upon full surrender of a policy, may charge a
surrender charge. This charge is in part a deferred sales
charge and in part a recovery of certain first year
administrative costs. The amount of the surrender charge, if
any, will depend on the amount of the death benefit, the
amount of premium payments made during the first two policy
years and the age of the policy. In no event will the
surrender charge exceed the maximum allowed by state or
federal law. No surrender charge is imposed on a partial
surrender, but an administrative fee of $25 is imposed,
allocated pro-rata among the variable sub-accounts (and,
where applicable, the fixed account) from which the partial
surrender proceeds are taken. Full surrender charges and
partial surrender administrative charges paid to Lincoln
Life attributable to the variable subaccounts for the six
months ended June 30, 2000 were $218,931.
Supplement Page 18
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. NET ASSETS
The following is a summary of net assets owned at June 30, 2000.
<TABLE>
<CAPTION>
AIM AIM AIM
V.I. V.I. AIM V.I. AIM AFIS
CAPITAL DIVERSIFIED V.I. INTERNATIONAL V.I. GROWTH
APPRECIATION INCOME GROWTH EQUITY VALUE CLASS 2
COMBINED SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
UNIT TRANSACTIONS:
Accumulation units $171,963,079 $2,838,494 $ 527,763 $15,536,015 $ 1,140,398 $21,579,804 $1,896,416
Accumulated net
investment income
(loss) 6,001,273 54,940 32,866 318,134 1,710 128,596 426
Accumulated net
realized gain
(loss)
on investments 1,453,402 131,625 (5,734) 167,280 28,265 191,953 1,770
Net unrealized
appreciation
(depreciation)
on investments 8,021,505 1,188,705 (40,080) 2,051,927 (27,579) 1,213,139 66,341
------------ ---------- --------- ----------- ----------- ----------- ----------
$187,439,259 $4,213,764 $ 514,815 $18,073,356 $ 1,142,794 $23,113,492 $1,964,953
============ ========== ========= =========== =========== =========== ==========
<CAPTION>
AFIS AFIS BARON DEUTSCHE DEUTSCHE
GROWTH- GLOBAL SMALL CAPITAL VIT VIT
INCOME CAPITALIZATION ASSET EAFE EQUITY
CLASS 2 CLASS 2 12B1 EQUITY INDEX 500 INDEX
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C>
----------------------
UNIT TRANSACTIONS:
Accumulation units $ 605,667 $ 314,106 $ 694,367 $ 1,247,500 $24,268,711
Accumulated net
investment income
(loss) 75 145 (575) 22,740 52,291
Accumulated net
realized gain
(loss)
on investments 142 25 6,510 5,758 286,425
Net unrealized
appreciation
(depreciation)
on investments (7,065) (394) 29,051 (6,533) 1,687,504
--------- ----------- --------- ----------- -----------
$ 598,819 $ 313,882 $ 729,353 $ 1,269,465 $26,294,931
========= =========== ========= =========== ===========
</TABLE>
<TABLE>
<CAPTION>
DEUTSCHE
VIT DGPF DGPF
SMALL DGPF DGPF EMERGING SMALL DGPF DGPF
CAP INDEX HIGH YIELD DEVON MARKETS CAP VALUE REIT TREND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
UNIT TRANSACTIONS:
Accumulation units $1,423,888 $ 432,029 $ 169,947 $ 903,787 $3,913,219 $ 156,603 $6,921,097
Accumulated net investment
income (loss) 14,569 11,880 1,102 8,185 62,952 817 319,975
Accumulated net realized gain
(loss) on investments 10,946 (4,349) 687 26,684 (19,016) 3,495 183,804
Net unrealized appreciation
(depreciation)
on investments 69,610 (30,708) 474 12,738 (33,572) 1,783 999,107
---------- --------- --------- --------- ---------- --------- ----------
$1,519,013 $ 408,852 $ 172,210 $ 951,394 $3,923,583 $ 162,698 $8,423,983
========== ========= ========= ========= ========== ========= ==========
<CAPTION>
FIDELITY
FIDELITY FIDELITY VIP FIDELITY FIDELITY
VIP VIP HIGH VIP II VIP II
EQUITY- GROWTH INCOME ASSET CONTRAFUND
INCOME SERVICE CLASS SERVICE CLASS MANAGER SERVICE CLASS
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C>
-------------------------------
UNIT TRANSACTIONS:
Accumulation units $4,665,058 $ 47,304 $ 8,625 $ 903,233 $5,567,947
Accumulated net investment
income (loss) 372,215 (4) (3) 92,592 342,337
Accumulated net realized gain
(loss) on investments (15,622) (1) -- 2,023 9,877
Net unrealized appreciation
(depreciation)
on investments (404,885) 631 (8) (38,536) (242,610)
---------- ---------- ---------- --------- ----------
$4,616,766 $ 47,930 $ 8,614 $ 959,312 $5,677,551
========== ========== ========== ========= ==========
</TABLE>
Supplement Page 19
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
JANUS
FIDELITY JANUS ASPEN
FIDELITY VIP III JANUS ASPEN SERIES
VIP II GROWTH ASPEN SERIES GLOBAL LN
INVESTMENT OPPORTUNITIES SERIES WORLDWIDE TECHNOLOGY LN CAPITAL
GRADE BOND SERVICE CLASS BALANCED GROWTH SERVICE CLASS BOND APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------------
UNIT TRANSACTIONS:
Accumulation units $2,395,426 $ 2,587,925 $7,022,629 $10,765,860 $ 52,312 $6,135,886 $4,946,667
Accumulated net investment
income (loss) 166,573 128,036 464,390 129,555 (9) 29,486 198,822
Accumulated net realized
gain (loss)
on investments (27,622) (25,025) 40,761 85,009 (684) (691) 47,427
Net unrealized
appreciation
(depreciation)
on investments (70,856) (121,977) (272,187) 528,827 469 48,254 21,248
---------- ----------- ---------- ----------- ---------- ---------- ----------
$2,463,521 $ 2,568,959 $7,255,593 $11,509,251 $ 52,088 $6,212,935 $5,214,164
========== =========== ========== =========== ========== ========== ==========
<CAPTION>
LN
LN GLOBAL LN LN MFS
EQUITY- ASSET MONEY SOCIAL EMERGING
INCOME ALLOCATION MARKET AWARENESS GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C>
--------------------------
UNIT TRANSACTIONS:
Accumulation units $ 513,923 $ 268,094 $13,095,750 $ 850,310 $10,342,393
Accumulated net investment
income (loss) 138,603 18,273 537,431 69,666 561,792
Accumulated net realized
gain (loss)
on investments (3,058) 56 -- 5,550 256,320
Net unrealized
appreciation
(depreciation)
on investments (143,787) (13,085) -- (4,538) 1,713,650
--------- --------- ----------- --------- -----------
$ 505,681 $ 273,338 $13,633,181 $ 920,988 $12,874,155
========= ========= =========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
OCC
MFS NB AMT ACCUMULATION OCC TEMPLETON
TOTAL MFS MID-CAP NB AMT GLOBAL ACCUMULATION ASSET
RETURN UTILITIES GROWTH PARTNERS EQUITY MANAGED STRATEGY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------------
UNIT TRANSACTIONS:
Accumulation units $2,802,846 $2,809,719 $3,217,272 $ 387,605 $ 661,767 $ 823,578 $ 341,376
Accumulated net investment
income (loss) 182,984 233,067 (8,214) 40,438 114,652 80,769 70,486
Accumulated net realized gain
(loss) on investments (7,627) 92,685 45,207 (9,942) 236 (6,776) (435)
Net unrealized appreciation
(depreciation)
on investments (52,221) 93,752 172,476 (24,435) (41,976) (87,918) (23,126)
---------- ---------- ---------- --------- ----------- ----------- ---------
$2,925,982 $3,229,223 $3,426,741 $ 393,666 $ 734,679 $ 809,653 $ 388,301
========== ========== ========== ========= =========== =========== =========
<CAPTION>
TEMPLETON TEMPLETON
TEMPLETON INTERNATIONAL TEMPLETON GROWTH
INTERNATIONAL SECURITIES GROWTH SECURITIES
SECURITIES CLASS 2 SECURITIES CLASS 2
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
<S> <C> <C> <C> <C>
-------------------------------
UNIT TRANSACTIONS:
Accumulation units $ 3,220,796 $ 2,210,443 $ 509,753 $ 238,771
Accumulated net investment
income (loss) 564,845 266,231 135,240 40,192
Accumulated net realized gain
(loss) on investments 10,009 (13,011) (44,629) (2,905)
Net unrealized appreciation
(depreciation)
on investments (41,201) (141,076) 14,423 (22,251)
----------- ----------- --------- ---------
$ 3,754,449 $ 2,322,587 $ 614,787 $ 253,807
=========== =========== ========= =========
</TABLE>
Supplement Page 20
<PAGE>
Lincoln Life Flexible Premium Variable Life Account M
Notes to financial statements (Unaudited) (continued)
4. PURCHASES AND SALES OF INVESTMENTS
The aggregate cost of investments purchased and the
aggregate proceeds from investments sold were as follows for
the first six months of 2000.
<TABLE>
<CAPTION>
AGGREGATE
AGGREGATE COST PROCEEDS
OF PURCHASES FROM SALES
--------------------------------
<S> <C> <C>
AIM V.I. Capital Appreciation Fund $ 568,923 $ 243,958
AIM V.I. Diversified Income Fund 111,665 53,147
AIM V.I. Growth Fund 6,988,735 609,877
AIM V.I. International Equity Fund 1,298,699 331,403
AIM V.I. Value Fund 10,214,991 949,849
AFIS Growth Class 2 Fund 1,962,015 112,828
AFIS Growth -- Income Class 2 Fund 642,532 38,173
AFIS Global Small Capitlization Class 2 Fund 316,153 2,882
Baron Capital Asset 12b1 Fund 509,781 85,978
Deutsche VIT EAFE Equity Index Fund 929,591 231,030
Deutsche VIT Equity 500 Index Fund 9,233,289 3,047,841
Deutsche VIT Small Cap Index Fund 1,109,968 132,932
Delaware Premium High Yield Series 336,360 87,810
Delaware Premium Devon Series 119,109 16,280
Delaware Premium Emerging Markets Series 542,619 266,861
Delaware Premium Small Cap Value Series 1,954,285 341,650
Delaware Premium REIT Series 195,805 47,204
Delaware Premium Trend Series 5,864,728 1,323,770
Fidelity VIP Equity-Income Portfolio 1,035,865 470,045
Fidelity VIP Growth Service Class Portfolio 47,368 67
Fidelity VIP High Income Service Class Portfolio 8,661 39
Fidelity VIP II Asset Manager Portfolio 265,265 105,330
Fidelity VIP II Contrafund Service Class Portfolio 4,142,992 381,924
Fidelity VIP II Investment Grade Bond Portfolio 653,638 434,119
Fidelity VIP III Growth Opportunities Service Class
Portfolio 1,570,986 306,898
Janus Aspen Series Balanced Portfolio 5,312,880 631,891
Janus Aspen Series Worldwide Growth Portfolio 8,135,073 599,601
Janus Aspen Series Global Technology Service Portfolio 91,929 39,625
LN Bond Fund 4,126,190 256,650
LN Capital Appreciation Fund 3,721,873 649,155
LN Equity-Income Fund 640,126 194,097
LN Global Asset Allocation Fund 188,000 14,167
LN Money Market Fund 26,908,768 29,669,487
LN Social Awareness Fund 577,854 191,746
MFS Emerging Growth Series 5,871,703 915,442
MFS Total Return Series 813,931 453,283
MFS Utilities Series 2,009,061 522,761
NB AMT Mid-Cap Growth Portfolio 2,882,618 196,127
NB AMT Partners Portfolio 363,115 113,224
OCC Accumulation Global Equity Portfolio 244,619 67,593
OCC Accumulation Managed Portfolio 157,072 80,627
Templeton Asset Strategy Fund 171,064 37,752
Templeton International Securities Fund 1,162,877 108,029
Templeton International Securities Class 2 Fund 1,422,097 166,622
Templeton Growth Securities Fund 812,677 604,510
Templeton Growth Securities Class 2 Fund 286,201 68,608
------------ -----------
$116,523,751 $45,202,892
============ ===========
</TABLE>
Supplement Page 21
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
5. INVESTMENTS
The following is a summary of investments owned at June 30,
2000.
<TABLE>
<CAPTION>
NET
SHARES ASSET VALUE OF
OUTSTANDING VALUE SHARES COST OF SHARES
----------------------------------------------------------------
<S> <C> <C> <C> <C>
AIM V.I. Capital Appreciation Fund 109,422 $38.51 $ 4,213,855 $ 3,025,150
AIM V.I. Diversified Income Fund 51,689 9.96 514,826 554,906
AIM V.I. Growth Fund 534,252 33.83 18,073,731 16,021,804
AIM V.I. International Equity Fund 43,769 26.11 1,142,819 1,170,398
AIM V.I. Value Fund 691,828 33.41 23,113,974 21,900,835
AFIS Growth Class 2 Fund 24,256 81.01 1,964,994 1,898,653
AFIS Growth -- Income Class 2 Fund 17,951 33.36 598,832 605,897
AFIS Global Small Capitlization Class 2 Fund 17,978 17.46 313,889 314,283
Baron Capital Asset 12b1 Fund 40,770 17.89 729,368 700,317
Deutsche VIT EAFE Equity Index Fund 98,947 12.83 1,269,491 1,276,024
Deutsche VIT Equity 500 Index Fund 1,740,270 15.11 26,295,485 24,607,981
Deutsche VIT Small Cap Index Fund 127,866 11.88 1,519,044 1,449,434
Delaware Premium High Yield Series 61,855 6.61 408,860 439,568
Delaware Premium Devon Series 13,207 13.04 172,214 171,740
Delaware Premium Emerging Markets Series 125,517 7.58 951,415 938,677
Delaware Premium Small Cap Value Series 262,102 14.97 3,923,668 3,957,240
Delaware Premium REIT Series 16,687 9.75 162,701 160,918
Delaware Premium Trend Series 229,729 36.67 8,424,159 7,425,052
Fidelity VIP Equity-Income Portfolio 201,522 22.91 4,616,868 5,021,753
Fidelity VIP Growth Service Class Portfolio 933 51.39 47,931 47,300
Fidelity VIP High Income Service Class
Portfolio 861 10.01 8,614 8,622
Fidelity VIP II Asset Manager Portfolio 58,001 16.54 959,333 997,869
Fidelity VIP II Contrafund Service Class
Portfolio 226,835 25.03 5,677,669 5,920,279
Fidelity VIP II Investment Grade Bond Portfolio 209,666 11.75 2,463,575 2,534,431
Fidelity VIP III Growth Opportunities Service
Class Portfolio 124,830 20.58 2,569,011 2,690,988
Janus Aspen Series Balanced Portfolio 275,674 26.32 7,255,746 7,527,933
Janus Aspen Series Worldwide Growth Portfolio 239,631 48.03 11,509,491 10,980,664
Janus Aspen Series Global Technology Service
Portfolio 5,304 9.82 52,089 51,620
LN Bond Fund 530,215 11.72 6,213,065 6,164,811
LN Capital Appreciation Fund 169,697 30.73 5,214,272 5,193,024
LN Equity-Income Fund 32,839 15.40 505,692 649,479
LN Global Asset Allocation Fund 17,692 15.45 273,344 286,429
LN Money Market Fund 1,363,348 10.00 13,633,477 13,633,477
LN Social Awareness Fund 22,130 41.62 921,007 925,545
MFS Emerging Growth Series 367,316 35.05 12,874,423 11,160,773
MFS Total Return Series 168,843 17.33 2,926,045 2,978,266
MFS Utilities Series 141,264 22.86 3,229,292 3,135,540
NB AMT Mid-Cap Growth Portfolio 125,066 27.40 3,426,812 3,254,336
NB AMT Partners Portfolio 24,651 15.97 393,674 418,109
OCC Accumulation Global Equity Portfolio 46,618 15.76 734,695 776,671
OCC Accumulation Managed Portfolio 21,201 38.19 809,671 897,589
Templeton Asset Strategy Fund 19,781 19.63 388,309 411,435
Templeton International Securities Fund 194,435 19.31 3,754,531 3,795,732
Templeton International Securities Class 2 Fund 120,908 19.21 2,322,635 2,463,711
Templeton Growth Securities Fund 46,365 13.26 614,800 600,377
Templeton Growth Securities Class 2 Fund 19,199 13.22 253,813 276,064
------------ ------------
$187,443,209 $179,421,704
============ ============
</TABLE>
Supplement Page 22
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT M
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
6. NEW INVESTMENT FUNDS AND FUND NAME CHANGES
During 2000 the American Variable Insurance Series (AVIS)
family of funds changed its name to American Funds Insurance
Series (AFIS), the BT Insurance Fund Trust family of funds
changed its name to Deutsche Asset Management VIT Funds
Trust, the Delaware Group Premium Fund, Inc. family of funds
changed its name to Delaware Group Premium Fund (DGPF) and
the Templeton Variable Products Series fund family changed
its name to Franklin Templeton Variable Insurance Products
Trust. During 2000 the Delaware Premium Delchester Series
changed its name to the DGPF High Yield Series, the
Templeton International Fund changed its name to the
Templeton International Securities Fund, the Templeton
International Class 2 Fund changed its name to the Templeton
International Securities Class 2 Fund, the Templeton Asset
Allocation Fund changed its name to the Templeton Asset
Strategy Fund, the Templeton Stock Fund changed its name to
the Templeton Growth Securities Fund and the Templeton Stock
Class 2 Fund changed its name to the Templeton Growth
Securities Class 2 Fund. During 2000 the Fidelity VIP Growth
Fund, the Fidelity VIP High Income Fund and the JanusAspen
Series Global Technology Fund became available as investment
options for Variable Account contract owners.
Supplement Page 23
<PAGE>
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
BALANCE SHEET -- STATUTORY BASIS
(UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30
2000 1999
--------- ---------
(IN MILLIONS)
---------------------
<S> <C> <C>
ADMITTED ASSETS
CASH AND INVESTMENTS:
Bonds $22,358.3 $24,259.7
------------------------------------------------------------
Preferred stocks 255.0 243.2
------------------------------------------------------------
Unaffiliated common stocks 163.7 170.9
------------------------------------------------------------
Affiliated common stocks 657.9 322.1
------------------------------------------------------------
Mortgage loans on real estate 4,226.7 4,088.2
------------------------------------------------------------
Real estate 279.5 440.8
------------------------------------------------------------
Policy loans 1,676.7 1,609.9
------------------------------------------------------------
Other investments 487.3 440.9
------------------------------------------------------------
Cash and short-term investments 1,111.6 1,414.6
------------------------------------------------------------ --------- ---------
Total cash and investments 31,216.7 32,990.3
------------------------------------------------------------
Premiums and fees in course of collection 198.3 (71.0)
------------------------------------------------------------
Accrued investment income 446.4 473.0
------------------------------------------------------------
Reinsurance recoverable 135.0 221.3
------------------------------------------------------------
Funds withheld by ceding companies 71.7 36.5
------------------------------------------------------------
Federal income taxes recoverable from parent company 111.1 89.5
------------------------------------------------------------
Company owned policies and contracts 179.5 19.1
------------------------------------------------------------
Goodwill 40.8 47.6
------------------------------------------------------------
Other admitted assets 61.1 62.6
------------------------------------------------------------
Separate account assets 47,854.4 41,079.4
------------------------------------------------------------ --------- ---------
Total admitted assets $80,315.0 $74,948.3
------------------------------------------------------------ ========= =========
LIABILITIES AND CAPITAL AND SURPLUS
LIABILITIES:
Future policy benefits and claims $12,411.7 $12,399.1
------------------------------------------------------------
Other policyholder funds 15,613.3 16,705.8
------------------------------------------------------------
Amounts withheld or retained by Company as agent or trustee 803.2 1,217.8
------------------------------------------------------------
Funds held under reinsurance treaties 832.2 810.6
------------------------------------------------------------
Asset valuation reserve 520.8 488.4
------------------------------------------------------------
Interest maintenance reserve 35.5 122.5
------------------------------------------------------------
Other liabilities 491.2 427.3
------------------------------------------------------------
Net transfers due from separate accounts (900.0) (789.2)
------------------------------------------------------------
Separate account liabilities 47,854.4 41,079.4
------------------------------------------------------------ --------- ---------
Total liabilities 77,662.3 72,461.7
------------------------------------------------------------
CAPITAL AND SURPLUS:
Common stock, $2.50 par value:
Authorized, issued and outstanding -- 10 million (owned by
Lincoln National Corporation) 25.0 25.0
------------------------------------------------------------
Surplus notes due to Lincoln National Corporation 1,250.0 1,250.0
------------------------------------------------------------
Paid-in surplus 2,006.1 1,942.6
------------------------------------------------------------
Unassigned surplus -- deficit (628.4) (731.0)
------------------------------------------------------------ --------- ---------
Total capital and surplus 2,652.7 2,486.6
------------------------------------------------------------ --------- ---------
Total liabilities and capital and surplus $80,315.0 $74,948.3
------------------------------------------------------------ ========= =========
</TABLE>
See accompanying notes.
Supplement Page 24
<PAGE>
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS -- STATUTORY BASIS (UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTH PERIOD
ENDED JUNE 30
2000 1999
-------- --------
(IN MILLIONS)
-------------------
<S> <C> <C>
PREMIUMS AND OTHER REVENUES:
Premiums and deposits $3,970.6 $3,666.0
------------------------------------------------------------
Net investment income 1,077.1 1,100.7
------------------------------------------------------------
Amortization of the interest maintenance reserve 11.9 12.9
------------------------------------------------------------
Commissions and expense allowances on reinsurance ceded 316.9 380.7
------------------------------------------------------------
Expense charges on deposit funds 78.8 83.8
------------------------------------------------------------
Separate account investment management and administration
service fees 290.2 210.3
------------------------------------------------------------
Other income 30.1 68.8
------------------------------------------------------------ -------- --------
Total revenues 5,775.6 5,523.2
------------------------------------------------------------
BENEFITS AND EXPENSES:
Benefits and settlement expenses 4,176.1 4,459.7
------------------------------------------------------------
Underwriting, acquisition, insurance and other expenses 1,227.3 635.7
------------------------------------------------------------ -------- --------
Total benefits and expenses 5,403.4 5,095.4
------------------------------------------------------------ -------- --------
Gain (loss) from operations before dividends to
policyholders, income taxes and net realized gain on
investments 372.2 427.8
------------------------------------------------------------
Dividends to policyholders 38.4 41.3
------------------------------------------------------------ -------- --------
Gain (loss) from operations before federal income taxes and
net realized gain on investments 333.8 386.5
------------------------------------------------------------
Federal income taxes 27.7 104.3
------------------------------------------------------------ -------- --------
Gain (loss) from operations before net realized gain on
investments 306.1 282.2
------------------------------------------------------------
Net realized gain (loss) on investments, net of income tax
expense and excluding net transfers to the interest
maintenance reserve (14.4) 58.4
------------------------------------------------------------ -------- --------
Net income (loss) $ 291.7 $ 340.6
------------------------------------------------------------ ======== ========
</TABLE>
See accompanying notes. Supplement Page 25
<PAGE>
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS -- STATUTORY BASIS (UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTH PERIOD
ENDED JUNE 30
2000 1999
-------- --------
(IN MILLIONS)
-------------------
<S> <C> <C>
Capital and surplus at beginning of period $2,526.5 $2,564.5
------------------------------------------------------------
CAPITAL AND SURPLUS INCREASE (DECREASE):
Net income 291.7 340.6
------------------------------------------------------------
Difference in cost and admitted investment amounts 22.2 (4.9)
------------------------------------------------------------
Nonadmitted assets (7.3) (12.1)
------------------------------------------------------------
Amortization of gain on reinsurance of disability income
business (4.0)
------------------------------------------------------------
Asset valuation reserve (29.9) (3.9)
------------------------------------------------------------
Paid-in surplus, including contribution of common stock of
affiliated company in 2000 63.5 12.4
------------------------------------------------------------
Dividends to shareholder (210.0) (410.0)
------------------------------------------------------------ -------- --------
Capital and surplus at end of period $2,652.7 $2,486.6
------------------------------------------------------------ ======== ========
</TABLE>
See accompanying notes.
Supplement Page 26
<PAGE>
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
STATEMENT OF CASH FLOWS -- STATUTORY BASIS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTH PERIOD ENDED
JUNE 30
2000 1999
-----------------------
(IN MILLIONS)
-----------------------
<S> <C> <C>
OPERATING ACTIVITIES
Premiums, policy proceeds and other considerations received $ 3,821.2 $ 3,914.3
------------------------------------------------------------
Allowances and reserve adjustments received (paid) on
reinsurance ceded 451.8 190.0
------------------------------------------------------------
Investment income received 1,048.5 1,040.9
------------------------------------------------------------
Separate account investment management and administration
service fees 290.2 210.3
------------------------------------------------------------
Benefits paid (4,965.8) (4,282.8)
------------------------------------------------------------
Insurance expenses paid (1,050.0) (804.3)
------------------------------------------------------------
Federal income taxes recovered (paid) (80.1) (128.5)
------------------------------------------------------------
Dividends to policyholders (39.4) (38.8)
------------------------------------------------------------
Other income received and expenses paid, net (72.3) 214.4
------------------------------------------------------------ --------- ---------
Net cash provided by (used in) operating activities (595.9) 315.5
------------------------------------------------------------
INVESTING ACTIVITIES
Sale, maturity or repayment of investments 2,209.0 3,448.9
------------------------------------------------------------
Purchase of investments (1,691.5) (3,848.4)
------------------------------------------------------------
Other sources (uses) including reinsured policy loans 132.3 310.8
------------------------------------------------------------ --------- ---------
Net cash provided by (used in) investing activities 649.8 (88.7)
------------------------------------------------------------
FINANCING ACTIVITIES
Surplus paid-in 63.5 12.4
------------------------------------------------------------
Repayment of borrowings from shareholder (205.0) (140.0)
------------------------------------------------------------
Dividends paid to shareholder (210.0) (410.0)
------------------------------------------------------------ --------- ---------
Net cash provided by (used in) financing activities (351.5) (537.6)
------------------------------------------------------------ --------- ---------
Net increase (decrease) in cash and short-term investments (297.6) (310.8)
------------------------------------------------------------
Cash and short-term investments at beginning of period 1,409.2 1,725.4
------------------------------------------------------------ --------- ---------
Cash and short-term investments at end of period $ 1,111.6 $ 1,414.6
------------------------------------------------------------ ========= =========
</TABLE>
NOTES TO FINANCIAL STATEMENTS --
STATUTORY BASIS (UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying statutory-basis financial statements of The Lincoln National
Life Insurance Company (the "Company") have been prepared in accordance with the
accounting practices prescribed or permitted by the Indiana Insurance Department
(the "Department"), except that they do not contain complete notes. "Prescribed"
statutory accounting practices include state laws, regulations and general
administrative rules, as well as a variety of publications of the National
Association of Insurance Commissioners ("NAIC"). "Permitted" statutory
accounting practices encompass all accounting practices that are not prescribed;
such practices may differ from state to state, may differ from company to
company within a state and may change in the future. These financial statements
are unaudited and include all adjustments (consisting of normal recurring
accruals) necessary for a fair presentation of the results, in accordance with
the accounting basis described above. For further information, refer to the
statutory-basis financial statements and notes as of December 31, 1999, 1998,
and 1997 included in this registration statement.
Operating results for the six months ended June 30, 2000 are not necessarily
indicative of the results that may be expected for the entire year ending
December 31, 2000.
See accompanying notes. Supplement Page 27
<PAGE>
PART II
FEES AND CHARGES REPRESENTATION
Lincoln Life represents that the fees and charges deducted under the
Policies, in the aggregate, are reasonable in relation to the services rendered,
the expenses expected to be incurred, and the risks assumed by Lincoln Life.
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.
INDEMNIFICATION
(a) Brief description of indemnification provisions.
In general, Article VII of the By-Laws of The Lincoln National Life
Insurance Company (Lincoln Life) provides that Lincoln Life will
indemnify certain persons against expenses, judgments and certain
other specified costs incurred by any such person if he/she is made a
party or is threatened to be made a party to a suit or proceeding
because he/she was a director, officer, or employee of Lincoln Life,
as long as he/she acted in good faith and in a manner he/she
reasonably believed to be in the best interests of, or not opposed to
the best interests of, Lincoln Life. Certain additional conditions
apply to indemnification in criminal proceedings.
In particular, separate conditions govern indemnification of
directors, officers, and employees of Lincoln Life in connection with
suits by, or in the right of, Lincoln Life.
Please refer to Article VII of the By-Laws of Lincoln Life (Exhibit
No. 6(b) hereto) for the full text of the indemnification provisions.
Indemnification is permitted by, and is subject to the requirements
of, Indiana law.
(b) Undertaking pursuant to Rule 484 of Regulation C under the
Securities Act of 1933.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the Registrant pursuant to the provisions
described in Item 28(a) above 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 such 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.
CONTENTS OF REGISTRATION STATEMENT
This Post-Effective Amendment No. 5 to this registration statement comprises
the following papers and documents:
The facing sheet;
A cross-reference sheet (reconciliation and tie);
A Supplement of 27 pages for Prospectus No. 2; All other disclosure not
modified by this Supplement remains unchanged from that contained in the
Prospectus No. 1 and No. 2 filed as part of Post-Effective Amendment
No. 4 to this Registration Statement, which Prospectuses are hereby
incorporated herein by this reference.
The undertaking to file reports;
Indemnification
The signatures;
Powers of Attorney
Written consents of the following persons:
Robert A. Picarello, Esq.
<PAGE>
<TABLE>
<S> <C> <C>
1. The following exhibits correspond to those required by paragraph A of the instructions as to exhibits
in Form N-8B-2:
(1) Resolution of the Board of Directors of The Lincoln National Life Insurance Company and related
documents authorizing establishment of the Account.(2)
(2) Not applicable.
(3) (a) Selling Agreement between The Lincoln National Life Insurance Company and Lincoln Financial
Advisors Corp.(12)
(b) Commission Schedule for Variable Life Policies.(5)
(4) Not applicable.
(5) (a) Proposed Form of Policy LN 660(8)
(b) Proposed Form of Application(14)
(c) Riders.(2)
(6) (a) Articles of Incorporation of The Lincoln National Life Insurance Company.(1)
(b) Bylaws of The Lincoln National Life Insurance Company.(1)
(7) Not applicable.
(8) Fund Participation Agreements.
Forms of Agreements between The Lincoln National Life Insurance Company and:
(a) AIM Variable Insurance Funds, Inc.(13)
(b) American Variable Insurance Series(15)
(c) Baron Capital Funds Trust(9)
(d) BT Insurance Funds Trust.(6)
(e) Delaware Group Premium Fund, Inc.(3)
(f) Fidelity Variable Insurance Products Fund.(4)
(g) Fidelity Variable Insurance Products Fund II.(4)
(h) Fidelity Variable Insurance Products Fund III(13)
(i) Janus Aspen Series(9)
(j) Lincoln National Funds [Six Separate Agreements](10)
(k) MFS-Registered Trademark- Variable Insurance Trust.(5)
(l) Neuberger & Berman Advisers Management Trust(9)
(m) Templeton Variable Products Series Fund.(11)
(n) OCC Accumulation Trust.(6)
(9) Services Agreement between The Lincoln National Life Insurance Co. and Delaware Management Co.(7)
(10) See Exhibit 1(5).
2. See Exhibit 1(5).
3. Opinion and Consent of Robert A. Picarello, Esq.
4. Not applicable.
5. Not applicable.
6. Opinion and consent of Vaughn Robbins, F.S.A.--Not Applicable For This Filing.
7. Consent of Ernst & Young LLP, Independent Auditors.--Not Applicable For This Filing.
8. Not applicable.
</TABLE>
------------------------
(1) Incorporated by reference to Registration Statement on Form N-4 (File No.
33-27783) filed on December 5, 1996.
(2) Incorporated by reference to Registrant's Registration Statement on Form S-6
(File No. 333-42479) filed on December 17, 1997.
(3) Incorporated by reference to Registration Statement on Form N-4 (File No.
33-25990) filed on April 22, 1998.
(4) Incorporated by reference to Registration Statement on Form N-4 (File No.
333-04999) filed on September 26, 1996.
(5) Incorporated by reference to Registration Statement on Form S-6 (File No.
333-42479) filed on April 28, 1998.
(6) Incorporated by reference to Pre-Effective Amendment No. 1 to Registration
Statement on Form S-6 (File No. 333-42479) filed on May 12, 1998.
(7) Incorporated by reference to Registration Statement on Form S-6 (File No.
33-40745) filed on November 21, 1997.
<PAGE>
(8) Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form S-6 (File No. 333-42479) filed on December 30, 1998.
(9) Incorporated by reference to Post-Effective Amendment No. 3 (File No.
333-50817) filed on April 23, 1999.
(10) LN Bond Fund, Inc., incorporated by reference to Post-Effective Amendment
No. 21 to the Registration Statement on Form N-1A (File No. 2-80746) filed
on April 16, 1999.
LN Capital Appreciation Fund, Inc., incorporated by reference to
Post-Effective Amendment No. 7 to the Registration Statement on Form N-1A
(File No. 33-70272) filed on April 16, 1999.
LN Equity-Income Fund, Inc., incorporated by reference to Post-Effective
Amendment No. 7 to the Registration Statement on Form N-1A (File No.
33-71158) filed on April 16, 1999.
LN Global Asset Allocation Fund, Inc., incorporated by reference to
Post-Effective Amendment No. 15 to the Registration Statement on Form N-1A
(File No. 33-13530) filed on April 16, 1999.
LN Money Market Fund, Inc., incorporated by reference to Post-Effective
Amendment No. 20 to the Registration Statement on Form N-1A (File No.
2-80743) filed on April 16, 1999.
LN Social Awareness Fund, Inc., incorporated by reference to Post-Effective
Amendment No. 13 to the Registration Statement on Form N-1A (File No.
33-19896) filed on April 16, 1999.
(11) Incorporated by reference to Post-Effective Amendment No. 4 (File No.
333-40937) filed on December 17, 1999.
(12) Incorporated by reference to Post-Effective Amendment No. 1 (File No.
333-82663) filed on April 13, 2000.
(13) Incorporated by reference to Post-Effective Amendment No. 3 on Form N-4
(File No. 333-40937) filed on April 28, 1999.
(14) Incorporated by reference to Post-Effective Amendment No. 3 on Form S-6
(File No. 333-42479) filed on April 19, 1999.
(15) Incorporated by reference to Post-Effective Amendment No. 1 on Form S-6
(File No. 333-72875) filed on October 15, 1999.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
Lincoln Life Flexible Premium Variable Life Account M (File No. 333-42479), has
caused this Post-Effective Amendment No. 5 to be signed on its behalf by the
undersigned duly authorized, in the City of Hartford and State of Connecticut on
the 25th day of August, 2000. Registrant certifies that this amendment meets all
of the requirements for effectiveness pursuant to Rule 485(b) under the
Securities Act of 1933.
LINCOLN LIFE FLEXIBLE PREMIUM
VARIABLE LIFE ACCOUNT M
(Registrant)
By: /s/ GARY W. PARKER
-----------------------------------
Gary W. Parker
SENIOR VICE PRESIDENT
THE LINCOLN NATIONAL LIFE INSURANCE
COMPANY
THE LINCOLN NATIONAL LIFE INSURANCE
COMPANY
(Depositor)
By: /s/ GARY W. PARKER
-----------------------------------
Gary W. Parker
SENIOR VICE PRESIDENT
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 5 to this Registration Statement (File No.
333-42479) has been signed below on August 25, 2000 by the following persons, as
officers and directors of the Depositor, in the capacities indicated:
<TABLE>
<CAPTION>
SIGNATURE TITLE
--------- -----
<S> <C>
/s/ JON A. BOSCIA* President and Director
------------------------------------------- (Principal Executive Officer)
Jon A. Boscia
/s/ JOHN H. GOTTA* Chief Executive Officer of Life Insurance,
------------------------------------------- Senior Vice President, Assistant Secretary,
John H. Gotta and Director
/s/ LORRY J. STENSRUD* Chief Executive Officer of Annuties,
------------------------------------------- Executive Vice President and Director
Lorry J. Stensrud
/s/ LAWRENCE T. ROWLAND* Executive Vice President and Director
-------------------------------------------
Lawrence T. Rowland
/s/ JANET CHRAZN* Senior Vice President, Chief Financial Officer
------------------------------------------- and Director (Principal Financial Officer)
Janet Chrazn
/s/ KEITH J. RYAN* Vice President, Controller and Chief
------------------------------------------- Accounting
Keith J. Ryan Officer (Principal Accounting Officer)
/s/ TODD R. STEPHENSON* Senior Vice President and Treasurer
-------------------------------------------
Todd R. Stephenson
/s/ STEPHEN H. LEWIS* Director
-------------------------------------------
Stephen H. Lewis
/s/ C.E. HALDEMAN, JR.* Director
-------------------------------------------
Charles E. Haldeman, Jr.
/s/ RICHARD C. VAUGHAN* Director
-------------------------------------------
Richard C. Vaughan
</TABLE>
* By: /s/ GARY W. PARKER
--------------------------------------------------
Gary W. Parker, pursuant to a Power of Attorney filed with this
Post-Effective Amendement No. 5 to the Registration Statement
<PAGE>
POWER OF ATTORNEY
We, the undersigned directors and officers of The Lincoln National Life
Insurance Company, hereby severally constitute and appoint John H. Gotta, Robert
A. Picarello and Gary W. Parker, individually, our true and lawful
attorneys-in-fact, with full power to each of them to sign for us, in our names
and in the capacities indicated below, any and all Registration Statements on
Form S-6, Form N-8B-2 and/or Form N-6, or any successors to these Forms, and
amendments thereto, filed with the Securities and Exchange Commission under the
Securities Act of 1933, on behalf of the Company in its own name or in the name
of one of its Separate Accounts, hereby ratifying and confirming our signatures
as they may be signed by any of our attorneys-in-fact to any such Registration
Statement or amendment to said Registration Statement. The execution of this
document by each of the undersigned hereby revokes any and all Powers of
Attorney previously executed by said individual for this specific purpose.
WITNESS our hands and common seal on this 28th day of January, 2000.
<TABLE>
<CAPTION>
SIGNATURE TITLE
--------- -----
<S> <C>
/s/ JON A. BOSCIA President and Director
--------------------------------------
Jon A. Boscia
/s/ JOHN H. GOTTA Chief Executive Officer of Life Insurance, Senior Vice
-------------------------------------- President, Assistant Secretary, and Director
John H. Gotta
/s/ STEPHEN H. LEWIS* Interim Chief Executive Officer of Annuities, Senior Vice
-------------------------------------- President and Director
Stephen H. Lewis
/s/ TODD R. STEPHENSON* Senior Vice President, Chief Financial Officer and
-------------------------------------- Assistant Treasurer
Todd R. Stephenson
/s/ H. THOMAS MCMEEKIN Director
--------------------------------------
H. Thomas McMeekin
/s/ RICHARD C. VAUGHAN Director
--------------------------------------
Richard C. Vaughan
*For: Stephen H. Lewis and Todd R. Stephenson
STATE OF INDIANA
SS:
COUNTY OF ALLEN
Subscribed and sworn to before me this
28th day of January, 2000.
/s/ Janet L. Lindenberg
------------------------------------------------
Notary Public
Commission Expires: 7-10-2001
</TABLE>
<PAGE>
POWER OF ATTORNEY
We, the undersigned directors and officers of The Lincoln National Life
Insurance Company, hereby severally constitute and appoint John H. Gotta, Robert
A. Picarello and Gary W. Parker, individually, our true and lawful
attorneys-in-fact, with full power to each of them to sign for us, in our names
and in the capacities indicated below, any and all Registration Statements on
Form S-6, Form N-8B-2 and/or Form N-6, or any successors to these Forms, and
amendments thereto, filed with the Securities and Exchange Commission under the
Securities Act of 1933, on behalf of the Company in its own name or in the name
of one of its Separate Accounts, hereby ratifying and confirming our signatures
as they may be signed by any of our attorneys-in-fact to any such Registration
Statement or amendment to said Registration Statement. The execution of this
document by each of the undersigned hereby revokes any and all Powers of
Attorney previously executed by said individual for this specific purpose.
WITNESS our hands and common seal on this 31st day of January, 2000.
<TABLE>
<CAPTION>
SIGNATURE TITLE
--------- -----
<S> <C>
/s/ LAWRENCE T. ROWLAND * Executive Vice President and Director
--------------------------------------
Lawrence T. Rowland
/s/ KEITH J. RYAN * Vice President, Controller and Chief Accounting Officer
--------------------------------------
Keith J. Ryan
*For: Lawrence T. Rowland and Keith J. Ryan
STATE OF INDIANA
SS:
COUNTY OF ALLEN
Subscribed and sworn to before me this
31st day of January, 2000
/s/ Janet L. Lindenberg
------------------------------------------------
Notary Public
Commission Expires: 7-10-2001
</TABLE>
<PAGE>
POWER OF ATTORNEY
We, the undersigned directors and officers of The Lincoln National Life
Insurance Company, hereby severally constitute and appoint John H. Gotta, Robert
A. Picarello and Gary W. Parker, individually, our true and lawful
attorneys-in-fact, with full power to each of them to sign for us, in our names
and in the capacities indicated below, any and all Registration Statements on
Form S-6, Form N-8B-2 and/or Form N-6, or any successors to these Forms, and
amendments thereto, filed with the Securities and Exchange Commission under the
Securities Act of 1933, on behalf of the Company in its own name or in the name
of one of its Separate Accounts, hereby ratifying and confirming our signatures
as they may be signed by any of our attorneys-in-fact to any such Registration
Statement or amendment to said Registration Statement. The execution of this
document by each of the undersigned hereby revokes any and all Powers of
Attorney previously executed by said individual for this specific purpose.
WITNESS our hands and common seal on this 9th day of August, 2000.
<TABLE>
<CAPTION>
SIGNATURE TITLE
--------- -----
<S> <C>
President and Director
--------------------------------------
Jon A. Boscia
Chief Executive Officer of Life Insurance, Senior Vice
-------------------------------------- President, Assistant Secretary, and Director
John H. Gotta
Chief Executive Officer of Annuities, Executive Vice
-------------------------------------- President and Director
Lorry J. Stensrud
Executive Vice President and Director
--------------------------------------
Lawrence T. Rowland
Senior Vice President, Chief Financial Officer and Director
--------------------------------------
Janet Chrzan
Vice President, Controller and Chief Accounting Officer
--------------------------------------
Keith J. Ryan
/s/ C.E. HALDEMAN, JR. Director
--------------------------------------
Charles E. Haldeman, Jr.
Director
--------------------------------------
Richard C. Vaughan
</TABLE>
<PAGE>
POWER OF ATTORNEY
We, the undersigned directors and officers of The Lincoln National Life
Insurance Company, hereby severally constitute and appoint John H. Gotta, Robert
A. Picarello and Gary W. Parker, individually, our true and lawful
attorneys-in-fact, with full power to each of them to sign for us, in our names
and in the capacities indicated below, any and all Registration Statements on
Form S-6, Form N-8B-2 and/or Form N-6, or any successors to these Forms, and
amendments thereto, filed with the Securities and Exchange Commission under the
Securities Act of 1933, on behalf of the Company in its own name or in the name
of one of its Separate Accounts, hereby ratifying and confirming our signatures
as they may be signed by any of our attorneys-in-fact to any such Registration
Statement or amendment to said Registration Statement. The execution of this
document by each of the undersigned hereby revokes any and all Powers of
Attorney previously executed by said individual for this specific purpose.
WITNESS our hands and common seal on this 11th day of August, 2000.
<TABLE>
<CAPTION>
SIGNATURE TITLE
--------- -----
<S> <C>
President and Director
--------------------------------------
Jon A. Boscia
Chief Executive Officer of Life Insurance, Senior Vice
-------------------------------------- President, Assistant Secretary, and Director
John H. Gotta
Chief Executive Officer of Annuities, Executive Vice
-------------------------------------- President and Director
Lorry J. Stensrud
Executive Vice President and Director
--------------------------------------
Lawrence T. Rowland
/s/ JANET CHRZAN Senior Vice President, Chief Financial Officer and Director
--------------------------------------
Janet Chrzan
Vice President, Controller and Chief Accounting Officer
--------------------------------------
Keith J. Ryan
Director
--------------------------------------
Charles E. Haldeman, Jr.
Director
--------------------------------------
Richard C. Vaughan
STATE OF INDIANA
SS:
COUNTY OF ALLEN
Subscribed and sworn to before me this
11th day of August, 2000.
/s/ Janet L. Lindenberg
------------------------------------------------
Notary Public
Commission Expires: July 10, 2001
</TABLE>
<PAGE>
POWER OF ATTORNEY
We, the undersigned directors and officers of The Lincoln National Life
Insurance Company, hereby severally constitute and appoint John H. Gotta, Robert
A. Picarello and Gary W. Parker, individually, our true and lawful
attorneys-in-fact, with full power to each of them to sign for us, in our names
and in the capacities indicated below, any and all Registration Statements on
Form S-6, Form N-8B-2 and/or Form N-6, or any successors to these Forms, and
amendments thereto, filed with the Securities and Exchange Commission under the
Securities Act of 1933, on behalf of the Company in its own name or in the name
of one of its Separate Accounts, hereby ratifying and confirming our signatures
as they may be signed by any of our attorneys-in-fact to any such Registration
Statement or amendment to said Registration Statement. The execution of this
document by each of the undersigned hereby revokes any and all Powers of
Attorney previously executed by said individual for this specific purpose.
WITNESS our hands and common seal on this 11th day of August, 2000.
<TABLE>
<CAPTION>
SIGNATURE TITLE
--------- -----
<S> <C>
President and Director
--------------------------------------
Jon A. Boscia
Chief Executive Officer of Life Insurance, Senior Vice
-------------------------------------- President, Assistant Secretary, and Director
John H. Gotta
/s/ LORRY J. STENSRUD Chief Executive Officer of Annuities, Executive Vice
-------------------------------------- President and Director
Lorry J. Stensrud
Executive Vice President and Director
--------------------------------------
Lawrence T. Rowland
Senior Vice President, Chief Financial Officer and Director
--------------------------------------
Janet Chrzan
Vice President, Controller and Chief Accounting Officer
--------------------------------------
Keith J. Ryan
Director
--------------------------------------
Charles E. Haldeman, Jr.
Director
--------------------------------------
Richard C. Vaughan
STATE OF INDIANA
SS:
COUNTY OF ALLEN
Subscribed and sworn to before me this
11th day of August, 2000.
/s/ Sharlene K. Geer
------------------------------------------------
Notary Public
Commission Expires: 2/29/08
</TABLE>
