<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON SEPTEMBER 26, 2000
1933 ACT REGISTRATION NO. 333-33782
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 1 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
SEPARATE ACCOUNT R
(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 St.
Fort Wayne, Indiana 46802 Hartford, CT 06103
(NAME AND ADDRESS OF AGENT FOR SERVICE)
</TABLE>
APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING: As soon as possible
after the effective date of the Registration Statement.
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:
<TABLE>
<CAPTION>
<C> <S>
-- Immediately on filing
X On October 9, 2000, pursuant to Rule 485(b)
-- 60 days after filing, pursuant to Rule 485(a)
-- On , pursuant to Rule 485(a)
</TABLE>
<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, the Separate Account and the
General Account
6(a) Lincoln Life, the Separate Account and the
General Account
6(b) *
9 Legal Proceedings
10(a)-(c) Right-to-Examine Period; Surrenders; Accumulation
Value; Reports to Policy Owners
10(d) Right to Exchange the 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 Benefits;
Payment of Death Benefit Proceeds; Policy Values;
Settlement Options
11 The Funds
12 The Funds
13 Charges; Fees
14 Issuance
15 Premium Payments; Transfers
16 Lincoln Life, the Separate Account and the
General Account
17 Surrenders
18 Lincoln Life, the Separate Account and the
General Account
19 Reports to Policy Owners
20 *
21 Policy Loans
22 *
23 Lincoln Life, the Separate Account and the
General Account
24 Incontestability; Suicide; Misstatement of Age or
Gender
25 Information about Lincoln Life and the Separate
Account
26 Fund Participation Agreements
27 Lincoln Life, the Separate Account and the
General Account
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ITEM OF FORM N-8B-2 LOCATION IN PROSPECTUS
------------------- ----------------------
<S> <C>
28 Directors and Officers of Lincoln Life
29 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 Lincoln Life, the Separate Account and the
General Account; Surrenders, Transfers
48 *
49 *
50 Lincoln Life, the Separate Account and the
General Account
51 Cover Page; Highlights; Premium Payments; Right
to Exchange the 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 R
SUPPLEMENT DATED OCTOBER 9, 2000
TO THE PROSPECTUS DATED MAY 1, 2000
WHICH DESCRIBES SVUL II
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, prior to the
section entitled "Amount of Premium Payment".:
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 of a Policy" 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
<PAGE>
2.__ 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>
3.__ The following is added to APPENDIX 2 ILLUSTRATIONS OF ACCUMULATION VALUES,
SURRENDER VALUES, AND DEATH BENEFIT PROCEEDS, at the end of the last
paragraph on page 46:
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.
4.__ The following Financial Statements are required to be added, based on the
timing of this Supplement.
Lincoln Life Flexible Premium Variable Life Account R: 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 R
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 $14,589,645) $15,332,477 $ -- $ -- $ -- $ -- $ --
Investments at
Market--Unaffiliated (Cost
$58,222,503) 61,654,365 1,890,118 914,044 7,938,470 494,121 7,710,616
------------------------------------ ----------- ---------- --------- ---------- ----------- ----------
Total Investments 76,986,842 1,890,118 914,044 7,938,470 494,121 7,710,616
LIABILITY--
Payable to The Lincoln National Life
Insurance Company 1,673 41 20 172 11 166
------------------------------------ ----------- ---------- --------- ---------- ----------- ----------
NET ASSETS $76,985,169 $1,890,077 $ 914,024 $7,938,298 $ 494,110 $7,710,450
------------------------------------ =========== ========== ========= ========== =========== ==========
Percent of net assets 100.00% 2.46% 1.19% 10.30% 0.64% 10.01%
------------------------------------ =========== ========== ========= ========== =========== ==========
NET ASSETS ARE REPRESENTED BY:
SVUL I Policies:
Units in accumulation period 111,105 95,798 244,033 -- 292,761
Unit value $ 17.012 $ 9.541 $ 16.311 $ -- $ 14.891
------------------------------------ ---------- --------- ---------- ----------- ----------
1,890,077 914,024 3,980,346 -- 4,359,471
------------------------------------ ---------- --------- ---------- ----------- ----------
SVUL II Policies:
Units in accumulation period -- -- 269,290 35,791 282,911
Unit value $ -- $ -- $ 13.035 $ 13.527 $ 11.768
------------------------------------ ---------- --------- ---------- ----------- ----------
-- -- 3,510,230 484,144 3,329,349
------------------------------------ ---------- --------- ---------- ----------- ----------
LSVUL II Policies:
Units in accumulation period -- -- 45,863 1,029 2,296
Unit value $ -- $ -- $ 9.762 $ 9.686 $ 9.420
------------------------------------ ---------- --------- ---------- ----------- ----------
-- -- 447,723 9,965 21,631
------------------------------------ ---------- --------- ---------- ----------- ----------
NET ASSETS $1,890,077 $ 914,024 $7,938,298 $ 494,110 $7,710,450
------------------------------------ ========== ========= ========== =========== ==========
<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 $14,589,645) $ -- $ -- $ -- $ -- $ -- $ --
Investments at
Market--Unaffiliated (Cost
$58,222,503) 59,371 58,716 10,917 305,116 335,061 12,792,239
------------------------------------ --------- --------- ----------- --------- ----------- -----------
Total Investments 59,371 58,716 10,917 305,116 335,061 12,792,239
LIABILITY--
Payable to The Lincoln National Life
Insurance Company 1 1 -- 7 7 277
------------------------------------ --------- --------- ----------- --------- ----------- -----------
NET ASSETS $ 59,370 $ 58,715 $ 10,917 $ 305,109 $ 335,054 $12,791,962
------------------------------------ ========= ========= =========== ========= =========== ===========
Percent of net assets 0.08% 0.08% 0.01% 0.40% 0.44% 16.61%
------------------------------------ ========= ========= =========== ========= =========== ===========
NET ASSETS ARE REPRESENTED BY:
SVUL I Policies:
Units in accumulation period -- -- -- -- -- 630,175
Unit value $ -- $ -- $ -- $ -- $ -- $ 13.170
------------------------------------ --------- --------- ----------- --------- ----------- -----------
-- -- -- -- -- 8,299,139
------------------------------------ --------- --------- ----------- --------- ----------- -----------
SVUL II Policies:
Units in accumulation period 5,726 88 1,050 26,806 28,504 410,388
Unit value $ 10.198 $ 9.939 $ 9.533 $ 11.347 $ 11.721 $ 10.924
------------------------------------ --------- --------- ----------- --------- ----------- -----------
58,394 874 10,005 304,178 334,099 4,482,982
------------------------------------ --------- --------- ----------- --------- ----------- -----------
LSVUL II Policies:
Units in accumulation period 96 5,818 96 96 96 993
Unit value $ 10.198 $ 9.940 $ 9.534 $ 9.732 $ 9.987 $ 9.915
------------------------------------ --------- --------- ----------- --------- ----------- -----------
975 57,841 912 931 955 9,842
------------------------------------ --------- --------- ----------- --------- ----------- -----------
NET ASSETS $ 59,370 $ 58,715 $ 10,917 $ 305,109 $ 335,054 $12,791,962
------------------------------------ ========= ========= =========== ========= =========== ===========
</TABLE>
See accompanying notes.
Supplement Page 5
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
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
$14,589,645) $ -- $ 206,735 $ 52,234 $ 393,704 $1,548,954 $ 9,172
Investments at Market--Unaffiliated
(Cost $58,222,503) 281,874 -- -- -- -- --
------------------------------------------ --------- --------- --------- --------- ---------- ---------
Total Investments 281,874 206,735 52,234 393,704 1,548,954 9,172
LIABILITY--
Payable to The Lincoln National Life
Insurance Company 6 5 1 8 34 --
------------------------------------------ --------- --------- --------- --------- ---------- ---------
NET ASSETS $ 281,868 $ 206,730 $ 52,233 $ 393,696 $1,548,920 $ 9,172
------------------------------------------ ========= ========= ========= ========= ========== =========
Percent of net assets 0.37% 0.27% 0.07% 0.51% 2.01% 0.01%
------------------------------------------ ========= ========= ========= ========= ========== =========
NET ASSETS ARE REPRESENTED BY:
SVUL I Policies:
Units in accumulation period -- -- -- 23,372 110,029 --
Unit value $ -- $ -- $ -- $ 10.276 $ 9.149 $ --
------------------------------------------ --------- --------- --------- --------- ---------- ---------
-- -- -- 240,187 1,006,618 --
------------------------------------------ --------- --------- --------- --------- ---------- ---------
SVUL II Policies:
Units in accumulation period 24,151 23,741 5,621 13,797 57,143 768
Unit value $ 11.631 $ 8.668 $ 8.816 $ 11.057 $ 9.442 $ 10.643
------------------------------------------ --------- --------- --------- --------- ---------- ---------
280,916 205,786 49,567 152,549 539,570 8,171
------------------------------------------ --------- --------- --------- --------- ---------- ---------
LSVUL II Policies:
Units in accumulation period 96 96 272 96 274 96
Unit value $ 9.954 $ 9.868 $ 9.807 $ 10.040 $ 9.961 $ 10.459
------------------------------------------ --------- --------- --------- --------- ---------- ---------
952 944 2,666 960 2,732 1,000
------------------------------------------ --------- --------- --------- --------- ---------- ---------
NET ASSETS $ 281,868 $ 206,730 $ 52,233 $ 393,696 $1,548,920 $ 9,172
------------------------------------------ ========= ========= ========= ========= ========== =========
<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
$14,589,645) $4,446,384 $ -- $ -- $ -- $ -- $ --
Investments at Market--Unaffiliated
(Cost $58,222,503) -- 2,348,684 5,587 31,504 663,964 1,917,646
------------------------------------------ ---------- ---------- ---------- ---------- --------- ----------
Total Investments 4,446,384 2,348,684 5,587 31,504 663,964 1,917,646
LIABILITY--
Payable to The Lincoln National Life
Insurance Company 98 52 -- 1 15 41
------------------------------------------ ---------- ---------- ---------- ---------- --------- ----------
NET ASSETS $4,446,286 $2,348,632 $ 5,587 $ 31,503 $ 663,949 $1,917,605
------------------------------------------ ========== ========== ========== ========== ========= ==========
Percent of net assets 5.78% 3.05% 0.01% 0.04% 0.86% 2.49%
------------------------------------------ ========== ========== ========== ========== ========= ==========
NET ASSETS ARE REPRESENTED BY:
SVUL I Policies:
Units in accumulation period 113,719 224,410 -- -- 57,358 --
Unit value $ 21.274 $ 10.466 $ -- $ -- $ 11.575 $ --
------------------------------------------ ---------- ---------- ---------- ---------- --------- ----------
2,419,214 2,348,632 -- -- 663,949 --
------------------------------------------ ---------- ---------- ---------- ---------- --------- ----------
SVUL II Policies:
Units in accumulation period 89,353 -- 88 88 -- 169,379
Unit value $ 17.781 $ -- $ 10.077 $ 9.947 $ -- $ 11.263
------------------------------------------ ---------- ---------- ---------- ---------- --------- ----------
1,588,770 -- 886 875 -- 1,907,659
------------------------------------------ ---------- ---------- ---------- ---------- --------- ----------
LSVUL II Policies:
Units in accumulation period 43,276 -- 466 3,079 -- 1,011
Unit value $ 10.128 $ -- $ 10.077 $ 9.948 $ -- $ 9.842
------------------------------------------ ---------- ---------- ---------- ---------- --------- ----------
438,303 -- 4,701 30,628 -- 9,946
------------------------------------------ ---------- ---------- ---------- ---------- --------- ----------
NET ASSETS $4,446,286 $2,348,632 $ 5,587 $ 31,503 $ 663,949 $1,917,605
------------------------------------------ ========== ========== ========== ========== ========= ==========
</TABLE>
See accompanying notes.
Supplement Page 6
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
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 $14,589,645) $ -- $ -- $ -- $ -- $ -- $1,183,272
Investments at Market--Unaffiliated
(Cost $58,222,503) 1,884,552 482,202 2,495,449 3,158,423 33,088 --
--------------------------------------- ---------- ----------- ---------- ---------- ---------- ----------
Total Investments 1,884,552 482,202 2,495,449 3,158,423 33,088 1,183,272
LIABILITY--
Payable to The Lincoln National Life
Insurance Company 41 10 54 68 1 26
--------------------------------------- ---------- ----------- ---------- ---------- ---------- ----------
NET ASSETS $1,884,511 $ 482,192 $2,495,395 $3,158,355 $ 33,087 $1,183,246
--------------------------------------- ========== =========== ========== ========== ========== ==========
Percent of net assets 2.45% 0.63% 3.24% 4.10% 0.04% 1.54%
--------------------------------------- ========== =========== ========== ========== ========== ==========
NET ASSETS ARE REPRESENTED BY:
SVUL I Policies:
Units in accumulation period 177,280 -- -- -- -- --
Unit value $ 10.630 $ -- $ -- $ -- $ -- $ --
--------------------------------------- ---------- ----------- ---------- ---------- ---------- ----------
1,884,511 -- -- -- -- --
--------------------------------------- ---------- ----------- ---------- ---------- ---------- ----------
SVUL II Policies:
Units in accumulation period -- 49,175 218,289 180,452 3,183 113,498
Unit value $ -- $ 9.640 $ 11.410 $ 15.333 $ 10.091 $ 10.121
--------------------------------------- ---------- ----------- ---------- ---------- ---------- ----------
-- 474,055 2,490,620 2,766,822 32,122 1,148,687
--------------------------------------- ---------- ----------- ---------- ---------- ---------- ----------
LSVUL II Policies:
Units in accumulation period -- 818 478 40,102 96 3,404
Unit value $ -- $ 9.949 $ 9.998 $ 9.764 $ 10.090 $ 10.152
--------------------------------------- ---------- ----------- ---------- ---------- ---------- ----------
-- 8,137 4,775 391,533 965 34,559
--------------------------------------- ---------- ----------- ---------- ---------- ---------- ----------
NET ASSETS $1,884,511 $ 482,192 $2,495,395 $3,158,355 $ 33,087 $1,183,246
--------------------------------------- ========== =========== ========== ========== ========== ==========
<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 $14,589,645) $1,198,046 $ 230,012 $ 27,001 $5,920,107 $ 116,856 $ --
Investments at Market--Unaffiliated
(Cost $58,222,503) -- -- -- -- -- 4,957,888
--------------------------------------- ---------- --------- --------- ---------- --------- ----------
Total Investments 1,198,046 230,012 27,001 5,920,107 116,856 4,957,888
LIABILITY--
Payable to The Lincoln National Life
Insurance Company 26 5 1 130 3 106
--------------------------------------- ---------- --------- --------- ---------- --------- ----------
NET ASSETS $1,198,020 $ 230,007 $ 27,000 $5,919,977 $ 116,853 $4,957,782
--------------------------------------- ========== ========= ========= ========== ========= ==========
Percent of net assets 1.56% 0.30% 0.04% 7.69% 0.15% 6.44%
--------------------------------------- ========== ========= ========= ========== ========= ==========
NET ASSETS ARE REPRESENTED BY:
SVUL I Policies:
Units in accumulation period -- -- -- 293,147 -- 157,976
Unit value $ -- $ -- $ -- $ 10.870 $ -- $ 19.514
--------------------------------------- ---------- --------- --------- ---------- --------- ----------
-- -- -- 3,185,475 -- 3,082,775
--------------------------------------- ---------- --------- --------- ---------- --------- ----------
SVUL II Policies:
Units in accumulation period 90,668 24,144 2,446 178,646 10,112 116,645
Unit value $ 13.124 $ 9.488 $ 10.642 $ 10.485 $ 11.373 $ 16.051
--------------------------------------- ---------- --------- --------- ---------- --------- ----------
1,189,907 229,084 26,027 1,873,096 115,001 1,872,236
--------------------------------------- ---------- --------- --------- ---------- --------- ----------
LSVUL II Policies:
Units in accumulation period 837 96 96 85,462 185 283
Unit value $ 9.689 $ 9.657 $ 10.174 $ 10.079 $ 9.984 $ 9.805
--------------------------------------- ---------- --------- --------- ---------- --------- ----------
8,113 924 973 861,407 1,852 2,770
--------------------------------------- ---------- --------- --------- ---------- --------- ----------
NET ASSETS $1,198,020 $ 230,007 $ 27,000 $5,919,977 $ 116,853 $4,957,782
--------------------------------------- ========== ========= ========= ========== ========= ==========
</TABLE>
See accompanying notes.
Supplement Page 7
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
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
$14,589,645) $ -- $ -- $ -- $ -- $ -- $ -- $ --
Investments at
Market--Unaffiliated (Cost
$58,222,503) 1,466,262 1,965,333 628,398 225,953 744,927 1,017,613 389,713
--------------------------------- ---------- ---------- --------- --------- ----------- ----------- ---------
Total Investments 1,466,262 1,965,333 628,398 225,953 744,927 1,017,613 389,713
LIABILITY--
Payable to The Lincoln National
Life Insurance Company 32 43 14 5 16 22 9
--------------------------------- ---------- ---------- --------- --------- ----------- ----------- ---------
NET ASSETS $1,466,230 $1,965,290 $ 628,384 $ 225,948 $ 744,911 $ 1,017,591 $ 389,704
--------------------------------- ========== ========== ========= ========= =========== =========== =========
Percent of net assets 1.90% 2.55% 0.82% 0.29% 0.97% 1.32% 0.51%
--------------------------------- ========== ========== ========= ========= =========== =========== =========
NET ASSETS ARE REPRESENTED BY:
SVUL I Policies:
Units in accumulation period 83,302 98,678 -- -- 61,137 103,432 31,759
Unit value $ 10.858 $ 14.483 $ -- $ -- $ 12.184 $ 9.838 $ 12.271
--------------------------------- ---------- ---------- --------- --------- ----------- ----------- ---------
904,524 1,429,151 -- -- 744,911 1,017,591 389,704
--------------------------------- ---------- ---------- --------- --------- ----------- ----------- ---------
SVUL II Policies:
Units in accumulation period 55,690 42,384 36,993 23,858 -- -- --
Unit value $ 10.053 $ 12.584 $ 16.926 $ 9.420 $ -- $ -- $ --
--------------------------------- ---------- ---------- --------- --------- ----------- ----------- ---------
559,849 533,354 626,163 224,742 -- -- --
--------------------------------- ---------- ---------- --------- --------- ----------- ----------- ---------
LSVUL II Policies:
Units in accumulation period 184 283 213 120 -- -- --
Unit value $ 10.081 $ 9.846 $ 10.417 $ 10.080 $ -- $ -- $ --
--------------------------------- ---------- ---------- --------- --------- ----------- ----------- ---------
1,857 2,785 2,221 1,205 -- -- --
--------------------------------- ---------- ---------- --------- --------- ----------- ----------- ---------
NET ASSETS $1,466,230 $1,965,290 $ 628,384 $ 225,948 $ 744,911 $ 1,017,591 $ 389,704
--------------------------------- ========== ========== ========= ========= =========== =========== =========
<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
$14,589,645) $ -- $ -- $ -- $ --
Investments at
Market--Unaffiliated (Cost
$58,222,503) 3,421,499 626,195 248,590 150,232
------------------------------- ----------- ----------- --------- ---------
Total Investments 3,421,499 626,195 248,590 150,232
LIABILITY--
Payable to The Lincoln National
Life Insurance Company 74 14 5 4
------------------------------- ----------- ----------- --------- ---------
NET ASSETS $ 3,421,425 $ 626,181 $ 248,585 $ 150,228
------------------------------- =========== =========== ========= =========
Percent of net assets 4.44% 0.81% 0.32% 0.20%
------------------------------- =========== =========== ========= =========
NET ASSETS ARE REPRESENTED BY:
SVUL I Policies:
Units in accumulation period 290,291 -- 20,334 --
Unit value $ 11.786 $ -- $ 12.225 $ --
------------------------------- ----------- ----------- --------- ---------
3,421,425 -- 248,585 --
------------------------------- ----------- ----------- --------- ---------
SVUL II Policies:
Units in accumulation period -- 55,372 -- 6,187
Unit value $ -- $ 11.269 $ -- $ 11.883
------------------------------- ----------- ----------- --------- ---------
-- 624,016 -- 73,526
------------------------------- ----------- ----------- --------- ---------
LSVUL II Policies:
Units in accumulation period -- 205 -- 7,541
Unit value $ -- $ 10.586 $ -- $ 10.169
------------------------------- ----------- ----------- --------- ---------
-- 2,165 -- 76,702
------------------------------- ----------- ----------- --------- ---------
NET ASSETS $ 3,421,425 $ 626,181 $ 248,585 $ 150,228
------------------------------- =========== =========== ========= =========
</TABLE>
See accompanying notes.
Supplement Page 8
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
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 $ 2,501,621 $ -- $ -- $ -- $ -- $ --
Dividends from net realized gains on
investments -- -- -- -- -- --
Mortality and expense guarantees:
SVUL I (158,489) (6,677) (3,447) (15,056) -- (16,806)
LSVUL (102,522) -- -- (10,878) (1,546) (10,578)
LSVUL II (347) -- -- (24) (4) (5)
-------------------------------------------- ----------- ---------- --------- --------- ----------- ---------
NET INVESTMENT INCOME (LOSS) 2,240,263 (6,677) (3,447) (25,958) (1,550) (27,389)
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments 543,137 27,148 (2,157) 92,053 342 92,731
Net change in unrealized appreciation or
depreciation on investments (2,177,439) 114,473 (6,976) 204,338 (41,944) (146,910)
-------------------------------------------- ----------- ---------- --------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (1,634,302) 141,621 (9,133) 296,391 (41,602) (54,179)
-------------------------------------------- ----------- ---------- --------- --------- ----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 605,961 $ 134,944 $ (12,580) $ 270,433 $ (43,152) $ (81,568)
-------------------------------------------- =========== ========== ========= ========= =========== =========
<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 $ -- $ -- $ -- $ 681 $ -- $ --
Dividends from net realized gains on
investments -- -- -- -- -- --
Mortality and expense guarantees:
SVUL I -- -- -- -- -- (30,062)
LSVUL (4) (1) (1) (1,049) (1,038) (14,285)
LSVUL II (1) (12) (1) (1) (1) (3)
-------------------------------------------- --------- --------- ----------- --------- ----------- ---------
NET INVESTMENT INCOME (LOSS) (5) (13) (2) (369) (1,039) (44,350)
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments -- (424) (2) 2,211 260 52,096
Net change in unrealized appreciation or
depreciation on investments 578 121 (36) 4,383 (16,973) (113,827)
-------------------------------------------- --------- --------- ----------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS 578 (303) (38) 6,594 (16,713) (61,731)
-------------------------------------------- --------- --------- ----------- --------- ----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 573 $ (316) $ (40) $ 6,225 $ (17,752) $(106,081)
-------------------------------------------- ========= ========= =========== ========= =========== =========
</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 $ -- $ 6,228 $ 416 $ 5,683 $ 35,802 $ 144
Dividends from net realized gains on
investments -- -- -- -- -- --
Mortality and expense guarantees:
SVUL I -- -- -- (974) (3,610) --
LSVUL (793) (753) (153) (402) (1,676) (22)
LSVUL II (1) (1) (2) (1) (2) (1)
------------------------------------------------ --------- --------- --------- --------- --------- ---------
NET INVESTMENT INCOME (LOSS) (794) 5,474 261 4,306 30,514 121
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments 8,300 (2,216) (258) 3,978 (1,397) 14
Net change in unrealized appreciation or
depreciation on investments (5,313) (19,024) (1,454) (38,290) (22,715) 791
------------------------------------------------ --------- --------- --------- --------- --------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS 2,987 (21,240) (1,712) (34,312) (24,112) 805
------------------------------------------------ --------- --------- --------- --------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 2,193 $ (15,766) $ (1,451) $ (30,006) $ 6,402 $ 926
------------------------------------------------ ========= ========= ========= ========= ========= =========
<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 $ 180,082 $ 182,948 $ -- $ -- $ 58,678
Dividends from net realized gains on
investments -- -- -- -- --
Mortality and expense guarantees:
SVUL I (8,015) (8,928) -- -- (2,390)
LSVUL (4,845) -- (1) (1) --
LSVUL II (21) -- (2) (7) --
------------------------------------------------ --------- --------- ---------- ---------- ---------
NET INVESTMENT INCOME (LOSS) 167,201 174,020 (3) (8) 56,288
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments 92,432 (15,646) (1) 6 (918)
Net change in unrealized appreciation or
depreciation on investments 111,385 (217,918) 35 (39) (60,252)
------------------------------------------------ --------- --------- ---------- ---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS 203,817 (233,564) 34 (33) (61,170)
------------------------------------------------ --------- --------- ---------- ---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 371,018 $ (59,544) $ 31 $ (41) $ (4,882)
------------------------------------------------ ========= ========= ========== ========== =========
<CAPTION>
FIDELITY
VIP II
CONTRAFUND
SERVICE CLASS
SUBACCOUNT
<S> <C>
------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2000
Net Investment Income (Loss):
Dividends from investment income $ 153,701
Dividends from net realized gains on
investments --
Mortality and expense guarantees:
SVUL I --
LSVUL (5,572)
LSVUL II (3)
------------------------------------------------ ----------
NET INVESTMENT INCOME (LOSS) 148,126
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments (3,488)
Net change in unrealized appreciation or
depreciation on investments (153,294)
------------------------------------------------ ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (156,782)
------------------------------------------------ ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ (8,656)
------------------------------------------------ ==========
</TABLE>
See accompanying notes.
Supplement Page 9
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
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 $ 138,489 $ 19,695 $ 158,095 $ 45,085 $ -- $ 4,936
Dividends from net realized gains on
investments -- -- -- -- -- --
Mortality and expense guarantees:
SVUL I (7,384) -- -- -- -- --
LSVUL -- (1,344) (6,980) (8,472) (4) (4,072)
LSVUL II -- (2) (2) (22) (1) (8)
----------------------------------------------- ---------- ----------- --------- --------- ---------- ---------
NET INVESTMENT INCOME (LOSS) 131,105 18,349 151,113 36,591 (5) 856
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments (30,808) (14,217) 20,436 39,767 (1) (2,692)
Net change in unrealized appreciation or
depreciation on investments (39,113) (13,725) (140,224) (79,851) 208 28,343
----------------------------------------------- ---------- ----------- --------- --------- ---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (69,921) (27,942) (119,788) (40,084) 207 25,651
----------------------------------------------- ---------- ----------- --------- --------- ---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 61,184 $ (9,593) $ 31,325 $ (3,493) $ 202 $ 26,507
----------------------------------------------- ========== =========== ========= ========= ========== =========
<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 $ 50,237 $ 65,284 $ 1,660 $ 148,237 $ 9,236 $ 263,470
Dividends from net realized gains on
investments -- -- -- -- -- --
Mortality and expense guarantees:
SVUL I -- -- -- (12,921) -- (12,645)
LSVUL (3,722) (702) (117) (8,866) (542) (5,771)
LSVUL II (2) (1) (1) (190) (2) (2)
----------------------------------------------- ---------- --------- --------- --------- --------- ---------
NET INVESTMENT INCOME (LOSS) 46,513 64,581 1,542 126,260 8,692 245,052
Net Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain (loss) on investments 3,879 (2,124) 1,305 -- 3,829 216,025
Net change in unrealized appreciation or
depreciation on investments (36,015) (71,541) (2,616) -- (8,464) (656,365)
----------------------------------------------- ---------- --------- --------- --------- --------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (32,136) (73,665) (1,311) -- (4,635) (440,340)
----------------------------------------------- ---------- --------- --------- --------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 14,377 $ (9,084) $ 231 $ 126,260 $ 4,057 $(195,288)
----------------------------------------------- ========== ========= ========= ========= ========= =========
</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 $ 69,038 $ 139,165 $ 122 $ 35,141 $ 27,166 $ 94,960 $ 59,468
Dividends from net realized
gains on investments -- -- -- -- -- -- --
Mortality and expense
guarantees:
SVUL I (3,407) (5,028) -- -- (2,777) (4,089) (1,372)
LSVUL (2,109) (1,383) (1,714) (815) -- -- --
LSVUL II (2) (2) (1) (1) -- -- --
---------------------------------- --------- --------- --------- --------- ----------- ----------- ---------
NET INVESTMENT INCOME (LOSS) 63,520 132,752 (1,593) 34,325 24,389 90,871 58,096
Net Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) on
investments (1,991) 29,907 (1,918) (3,239) (1,966) (20,716) (304)
Net change in unrealized
appreciation or depreciation
on investments (24,174) (118,318) 53,292 (25,863) (25,557) (102,236) (51,895)
---------------------------------- --------- --------- --------- --------- ----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (26,165) (88,411) 51,374 (29,102) (27,523) (122,952) (52,199)
---------------------------------- --------- --------- --------- --------- ----------- ----------- ---------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $ 37,355 $ 44,341 $ 49,781 $ 5,223 $ (3,134) $ (32,081) $ 5,897
---------------------------------- ========= ========= ========= ========= =========== =========== =========
<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 $ 412,329 $ 69,035 $ 50,620 $ 15,790
Dividends from net realized
gains on investments -- -- -- --
Mortality and expense
guarantees:
SVUL I (12,016) -- (885) --
LSVUL -- (2,031) -- (280)
LSVUL II -- (1) -- (14)
---------------------------------- ----------- ----------- --------- ---------
NET INVESTMENT INCOME (LOSS) 400,313 67,003 49,735 15,496
Net Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) on
investments 616 (16,331) (20,881) (503)
Net change in unrealized
appreciation or depreciation
on investments (378,658) (41,708) (21,605) (12,493)
---------------------------------- ----------- ----------- --------- ---------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (378,042) (58,039) (42,486) (12,996)
---------------------------------- ----------- ----------- --------- ---------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $ 22,271 $ 8,964 $ 7,249 $ 2,500
---------------------------------- =========== =========== ========= =========
</TABLE>
See accompanying notes.
Supplement Page 10
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
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 $ 55,211,712 $1,443,810 $ 780,147 $4,852,156 $ 170,969 $5,505,487
Changes From Operations:
Net investment income (loss) 2,240,263 (6,677) (3,447) (25,958) (1,550) (27,389)
Net realized gain (loss) on
investments 543,137 27,148 (2,157) 92,053 342 92,731
Net change in unrealized appreciation
or depreciation on investments (2,177,439) 114,473 (6,976) 204,338 (41,944) (146,910)
---------------------------------------- ------------ ---------- --------- ---------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 605,961 134,944 (12,580) 270,433 (43,152) (81,568)
Change From Unit Transactions:
Participant purchases 33,056,582 373,365 173,846 3,139,923 393,612 2,626,489
Participant withdrawals (11,889,086) (62,042) (27,389) (324,214) (27,319) (339,958)
---------------------------------------- ------------ ---------- --------- ---------- ----------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM UNIT TRANSACTIONS 21,167,496 311,323 146,457 2,815,709 366,293 2,286,531
---------------------------------------- ------------ ---------- --------- ---------- ----------- ----------
TOTAL INCREASE IN NET ASSETS 21,773,457 446,267 133,877 3,086,142 323,141 2,204,963
---------------------------------------- ------------ ---------- --------- ---------- ----------- ----------
NET ASSETS AT JUNE 30, 2000 $ 76,985,169 $1,890,077 $ 914,024 $7,938,298 $ 494,110 $7,710,450
---------------------------------------- ============ ========== ========= ========== =========== ==========
<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 $ -- $ -- $ -- $ 222,843 $ 173,323 $ 9,997,457
Changes From Operations:
Net investment income (loss) (5) (13) (2) (369) (1,039) (44,350)
Net realized gain (loss) on
investments -- (424) (2) 2,211 260 52,096
Net change in unrealized appreciation
or depreciation on investments 578 121 (36) 4,383 (16,973) (113,827)
---------------------------------------- --------- --------- ----------- --------- --------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 573 (316) (40) 6,225 (17,752) (106,081)
Change From Unit Transactions:
Participant purchases 59,011 64,562 11,159 88,497 202,763 3,373,778
Participant withdrawals (214) (5,531) (202) (12,456) (23,280) (473,192)
---------------------------------------- --------- --------- ----------- --------- --------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM UNIT TRANSACTIONS 58,797 59,031 10,957 76,041 179,483 2,900,586
---------------------------------------- --------- --------- ----------- --------- --------- -----------
TOTAL INCREASE IN NET ASSETS 59,370 58,715 10,917 82,266 161,731 2,794,505
---------------------------------------- --------- --------- ----------- --------- --------- -----------
NET ASSETS AT JUNE 30, 2000 $ 59,370 $ 58,715 $ 10,917 $ 305,109 $ 335,054 $12,791,962
---------------------------------------- ========= ========= =========== ========= ========= ===========
</TABLE>
See accompanying notes.
Supplement Page 11
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
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 $ 107,217 $ 172,011 $ 31,476 $ 292,413 $1,152,058 $ 4,105 $2,450,067
Changes From Operations:
Net investment income (loss) (794) 5,474 261 4,306 30,514 121 167,201
Net realized gain (loss) on
investments 8,300 (2,216) (258) 3,978 (1,397) 14 92,432
Net change in unrealized
appreciation or depreciation on
investments (5,313) (19,024) (1,454) (38,290) (22,715) 791 111,385
----------------------------------- --------- --------- --------- --------- ---------- --------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS 2,193 (15,766) (1,451) (30,006) 6,402 926 371,018
Change From Unit Transactions:
Participant purchases 192,759 59,893 25,734 147,230 455,397 4,700 1,813,011
Participant withdrawals (20,301) (9,408) (3,526) (15,941) (64,937) (559) (187,810)
----------------------------------- --------- --------- --------- --------- ---------- --------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM UNIT TRANSACTIONS 172,458 50,485 22,208 131,289 390,460 4,141 1,625,201
----------------------------------- --------- --------- --------- --------- ---------- --------- ----------
TOTAL INCREASE IN NET ASSETS 174,651 34,719 20,757 101,283 396,862 5,067 1,996,219
----------------------------------- --------- --------- --------- --------- ---------- --------- ----------
NET ASSETS AT JUNE 30, 2000 $ 281,868 $ 206,730 $ 52,233 $ 393,696 $1,548,920 $ 9,172 $4,446,286
----------------------------------- ========= ========= ========= ========= ========== ========= ==========
<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 $2,131,730 $ -- $ -- $ 534,781 $ 841,715
Changes From Operations:
Net investment income (loss) 174,020 (3) (8) 56,288 148,126
Net realized gain (loss) on
investments (15,646) (1) 6 (918) (3,488)
Net change in unrealized
appreciation or depreciation on
investments (217,918) 35 (39) (60,252) (153,294)
----------------------------------- ---------- ---------- ---------- --------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS (59,544) 31 (41) (4,882) (8,656)
Change From Unit Transactions:
Participant purchases 366,434 5,867 34,476 155,953 1,194,251
Participant withdrawals (89,988) (311) (2,932) (21,903) (109,705)
----------------------------------- ---------- ---------- ---------- --------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM UNIT TRANSACTIONS 276,446 5,556 31,544 134,050 1,084,546
----------------------------------- ---------- ---------- ---------- --------- ----------
TOTAL INCREASE IN NET ASSETS 216,902 5,587 31,503 129,168 1,075,890
----------------------------------- ---------- ---------- ---------- --------- ----------
NET ASSETS AT JUNE 30, 2000 $2,348,632 $ 5,587 $ 31,503 $ 663,949 $1,917,605
----------------------------------- ========== ========== ========== ========= ==========
</TABLE>
Supplement Page 12
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
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 $2,103,756 $ 220,239 $1,208,139 $1,334,556 $ -- $ 799,942
Changes From Operations:
Net investment income (loss) 131,105 18,349 151,113 36,591 (5) 856
Net realized gain (loss) on
investments (30,808) (14,217) 20,436 39,767 (1) (2,692)
Net change in unrealized
appreciation or depreciation
on investments (39,113) (13,725) (140,224) (79,851) 208 28,343
--------------------------------- ---------- ----------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS 61,184 (9,593) 31,325 (3,493) 202 26,507
Change From Unit Transactions:
Participant purchases 173,870 306,123 1,388,841 1,998,303 33,107 408,382
Participant withdrawals (454,299) (34,577) (132,910) (171,011) (222) (51,585)
--------------------------------- ---------- ----------- ---------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM UNIT
TRANSACTIONS (280,429) 271,546 1,255,931 1,827,292 32,885 356,797
--------------------------------- ---------- ----------- ---------- ---------- ---------- ----------
TOTAL INCREASE IN NET ASSETS (219,245) 261,953 1,287,256 1,823,799 33,087 383,304
--------------------------------- ---------- ----------- ---------- ---------- ---------- ----------
NET ASSETS AT JUNE 30, 2000 $1,884,511 $ 482,192 $2,495,395 $3,158,355 $ 33,087 $1,183,246
--------------------------------- ========== =========== ========== ========== ========== ==========
<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 $ 525,060 $ 161,147 $ 38,991 $5,734,110 $ 101,596 $4,076,301
Changes From Operations:
Net investment income (loss) 46,513 64,581 1,542 126,260 8,692 245,052
Net realized gain (loss) on
investments 3,879 (2,124) 1,305 -- 3,829 216,025
Net change in unrealized
appreciation or depreciation
on investments (36,015) (71,541) (2,616) -- (8,464) (656,365)
--------------------------------- ---------- --------- --------- ---------- --------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS 14,377 (9,084) 231 126,260 4,057 (195,288)
Change From Unit Transactions:
Participant purchases 725,399 85,874 6,369 8,512,458 23,430 1,319,783
Participant withdrawals (66,816) (7,930) (18,591) (8,452,851) (12,230) (243,014)
--------------------------------- ---------- --------- --------- ---------- --------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM UNIT
TRANSACTIONS 658,583 77,944 (12,222) 59,607 11,200 1,076,769
--------------------------------- ---------- --------- --------- ---------- --------- ----------
TOTAL INCREASE IN NET ASSETS 672,960 68,860 (11,991) 185,867 15,257 881,481
--------------------------------- ---------- --------- --------- ---------- --------- ----------
NET ASSETS AT JUNE 30, 2000 $1,198,020 $ 230,007 $ 27,000 $5,919,977 $ 116,853 $4,957,782
--------------------------------- ========== ========= ========= ========== ========= ==========
</TABLE>
See accompanying notes.
Supplement Page 13
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
STATEMENTS 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 $1,200,042 $1,368,006 $ 111,301 $ 59,958 $ 653,323 $ 1,037,957
Changes From Operations:
Net investment income (loss) 63,520 132,752 (1,593) 34,325 24,389 90,871
Net realized gain (loss) on investments (1,991) 29,907 (1,918) (3,239) (1,966) (20,716)
Net change in unrealized appreciation or
depreciation on investments (24,174) (118,318) 53,292 (25,863) (25,557) (102,236)
------------------------------------------- ---------- ---------- --------- --------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 37,355 44,341 49,781 5,223 (3,134) (32,081)
Change From Unit Transactions:
Participant purchases 284,325 615,455 516,197 166,845 113,390 39,319
Participant withdrawals (55,492) (62,512) (48,895) (6,078) (18,668) (27,604)
------------------------------------------- ---------- ---------- --------- --------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
UNIT TRANSACTIONS 228,833 552,943 467,302 160,767 94,722 11,715
------------------------------------------- ---------- ---------- --------- --------- ----------- -----------
TOTAL INCREASE IN NET ASSETS 266,188 597,284 517,083 165,990 91,588 (20,366)
------------------------------------------- ---------- ---------- --------- --------- ----------- -----------
NET ASSETS AT JUNE 30, 2000 $1,466,230 $1,965,290 $ 628,384 $ 225,948 $ 744,911 $ 1,017,591
------------------------------------------- ========== ========== ========= ========= =========== ===========
<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 $ 294,601 $ 2,709,649 $ 377,518 $ 175,330 $ 56,425
Changes From Operations:
Net investment income (loss) 58,096 400,313 67,003 49,735 15,496
Net realized gain (loss) on investments (304) 616 (16,331) (20,881) (503)
Net change in unrealized appreciation or
depreciation on investments (51,895) (378,658) (41,708) (21,605) (12,493)
------------------------------------------- --------- ----------- ----------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 5,897 22,271 8,964 7,249 2,500
Change From Unit Transactions:
Participant purchases 103,529 808,042 275,955 87,365 101,511
Participant withdrawals (14,323) (118,537) (36,256) (21,359) (10,208)
------------------------------------------- --------- ----------- ----------- --------- ---------
NET INCREASE IN NET ASSETS RESULTING FROM
UNIT TRANSACTIONS 89,206 689,505 239,699 66,006 91,303
------------------------------------------- --------- ----------- ----------- --------- ---------
TOTAL INCREASE IN NET ASSETS 95,103 711,776 248,663 73,255 93,803
------------------------------------------- --------- ----------- ----------- --------- ---------
NET ASSETS AT JUNE 30, 2000 $ 389,704 $ 3,421,425 $ 626,181 $ 248,585 $ 150,228
------------------------------------------- ========= =========== =========== ========= =========
</TABLE>
See accompanying notes.
Supplement Page 14
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ACCOUNTING POLICIES AND VARIABLE ACCOUNT INFORMATION
THE VARIABLE ACCOUNT:
Lincoln Life Flexible Premium Variable Life Account R (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.
--SVUL I
--SVUL II
--LSVUL
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 Sates 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
forty six 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 Capitalization Class 2 Fund
Baron Capital Funds Trust:
Baron Capital Asset 12b1 Fund
Deutsche Asset Management VIT Funds Trust (Deutsche VIT):
EAFE Equity Index Fund
Equity 500 Index Fund
Small Cap Index Fund
Delaware Group Premium Fund (DGPF):
High Yield
Devon Series
Emerging Markets Series
REIT Series
Small Cap Value Series
Trend Series
Supplement Page 15
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
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 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 R
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 current rate of deduction,
stated as an annual percentage, is .80%. The mortality and
expense risk charges for each of the variable subaccounts
are reported in the statements of operations.
Prior to the allocation of premiums to the Variable Account,
Lincoln Life deducts a premium load of 8% 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 $1,875,442.
Lincoln Life charges a monthly administrative fee of $12.50
in the first policy year and $5 in subsequent policy years.
In addition, there is a monthly charge of $0.09 per $1,000
of specified amount for the first twenty years of the policy
and for the first twenty years following an increase in
specified amount. If the no lapse provision is in effect
there will also be a monthly charge of $0.01 per $1,000 of
specified amount. This charge is for items such as premium
billing and collection, policy value calculation,
confirmations and periodic reports. Administrative fees for
the six months ended June 30, 2000 amounted to $1,352,205.
Lincoln Life assumes responsibility for providing the
insurance benefit included in the policy. Lincoln Life
charges a monthly deduction of 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 $319,876.
Supplement Page 17
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
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 face amount of the policy and the
issue 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. There were no full surrender charges or partial
surrender administrative charges paid to Lincoln Life
attributable to the variable subaccounts for the six months
ended June 30, 2000.
Supplement Page 18
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. NET ASSETS (UNAUDITED)
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 $68,695,938 $1,297,071 $ 954,137 $6,764,081 $ 501,072 $6,905,573 $ 58,797
Accumulated net
investment income
(loss) 3,280,459 24,503 53,646 137,144 2,836 61,666 (5)
Accumulated net realized
gain
(loss) on investments 834,078 44,079 (20,056) 125,136 870 120,859 --
Net unrealized
appreciation
(depreciation) on
investments 4,174,694 524,424 (73,703) 911,937 (10,668) 622,352 578
----------- ---------- --------- ---------- ----------- ---------- ---------
$76,985,169 $1,890,077 $ 914,024 $7,938,298 $ 494,110 $7,710,450 $ 59,370
=========== ========== ========= ========== =========== ========== =========
<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 $ 59,031 $ 10,957 $ 270,391 $ 327,954 $11,669,188
Accumulated net
investment income
(loss) (13) (2) (594) 6,470 20,337
Accumulated net realized
gain
(loss) on investments (424) (2) 8,350 480 130,645
Net unrealized
appreciation
(depreciation) on
investments 121 (36) 26,962 150 971,792
--------- ----------- --------- ----------- -----------
$ 58,715 $ 10,917 $ 305,109 $ 335,054 $12,791,962
========= =========== ========= =========== ===========
</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 $ 267,738 $ 222,043 $ 53,320 $ 338,282 $1,526,987 $ 8,238 $3,374,983
Accumulated net investment
income (loss) 2,787 6,577 243 5,885 31,104 113 160,379
Accumulated net realized gain
(loss) on investments 9,210 (2,566) (262) 6,150 642 12 122,269
Net unrealized appreciation
(depreciation) on
investments 2,133 (19,324) (1,068) 43,379 (9,813) 809 788,655
--------- --------- --------- --------- ---------- --------- ----------
$ 281,868 $ 206,730 $ 52,233 $ 393,696 $1,548,920 $ 9,172 $4,446,286
========= ========= ========= ========= ========== ========= ==========
<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 $2,320,740 $ 5,556 $ 31,544 $ 616,944 $1,850,589
Accumulated net investment
income (loss) 200,538 (3) (8) 72,029 146,837
Accumulated net realized gain
(loss) on investments (7,909) (1) 6 (510) (3,338)
Net unrealized appreciation
(depreciation) on
investments (164,737) 35 (39) (24,514) (76,483)
---------- ---------- ---------- --------- ----------
$2,348,632 $ 5,587 $ 31,503 $ 663,949 $1,917,605
========== ========== ========== ========= ==========
</TABLE>
Supplement Page 19
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. NET ASSETS (UNAUDITED) (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 $1,847,179 $ 485,866 $2,358,559 $2,947,427 $ 32,885 $1,156,751 $1,131,627
Accumulated net investment
income (loss) 162,041 18,206 162,006 35,467 (5) 29,924 46,014
Accumulated net realized
gain (loss) on
investments (42,715) (12,029) 30,214 50,079 (1) (3,653) 11,963
Net unrealized
appreciation
(depreciation) on
investments (81,994) (9,851) (55,384) 125,382 208 224 8,416
---------- ----------- ---------- ---------- ---------- ---------- ----------
$1,884,511 $ 482,192 $2,495,395 $3,158,355 $ 33,087 $1,183,246 $1,198,020
========== =========== ========== ========== ========== ========== ==========
<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 $ 230,145 $ 25,330 $5,572,068 $ 102,417 $3,654,874
Accumulated net investment
income (loss) 64,617 1,510 347,909 9,521 231,748
Accumulated net realized
gain (loss) on
investments (729) 1,306 -- 8,189 275,938
Net unrealized
appreciation
(depreciation) on
investments (64,026) (1,146) -- (3,274) 795,222
--------- --------- ---------- --------- ----------
$ 230,007 $ 27,000 $5,919,977 $ 116,853 $4,957,782
========= ========= ========== ========= ==========
</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 $1,408,695 $1,653,943 $ 566,700 $ 218,989 $ 621,598 $ 1,024,281 $ 333,591
Accumulated net investment
income (loss) 81,003 169,776 (1,647) 34,251 126,263 104,297 76,493
Accumulated net realized gain
(loss) on investments (1,569) 39,205 (1,878) (3,175) 1,664 (20,329) 793
Net unrealized appreciation
(depreciation) on
investments (21,899) 102,366 65,209 (24,117) (4,614) (90,658) (21,173)
---------- ---------- --------- --------- ----------- ----------- ---------
$1,466,230 $1,965,290 $ 628,384 $ 225,948 $ 744,911 $ 1,017,591 $ 389,704
========== ========== ========= ========= =========== =========== =========
<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 $ 2,948,750 $ 585,891 $ 207,860 $ 145,296
Accumulated net investment
income (loss) 511,707 66,528 54,892 15,469
Accumulated net realized gain
(loss) on investments 3,189 (15,641) (19,882) (501)
Net unrealized appreciation
(depreciation) on
investments (42,221) (10,597) 5,715 (10,036)
----------- ----------- --------- ---------
$ 3,421,425 $ 626,181 $ 248,585 $ 150,228
=========== =========== ========= =========
</TABLE>
Supplement Page 20
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
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
2000.
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
COST OF PROCEEDS
PURCHASES FROM SALES
-----------------------------
<S> <C> <C>
AIM V.I. Capital Appreciation Fund $ 390,633 $ 85,977
AIM V.I. Diversified Income Fund 171,662 28,649
AIM V.I. Growth Fund 3,322,141 532,316
AIM V.I. International Equity Fund 398,164 33,414
AIM V.I. Value Fund 3,207,389 948,199
AFIS Growth Class 2 Fund 58,828 35
AFIS Growth -- Income Class 2 Fund 73,137 14,118
AFIS Global Small Capitlization Class 2 Fund 10,977 22
Baron Capital Asset 12b1 Fund 99,331 23,656
Deutsche VIT EAFE Equity Index Fund 188,508 10,061
Deutsche VIT Equity 500 Index Fund 3,898,802 1,042,501
Deutsche VIT Small Cap Index Fund 389,263 217,595
DGPF High Yield Series 88,223 31,897
DGPF Devon Series 29,419 6,950
DGPF Emerging Markets Series 153,818 18,221
DGPF Small Cap Value Series 526,742 105,759
DGPF REIT Series 4,591 329
DGPF Trend Series 2,189,708 397,261
Fidelity VIP Equity-Income Portfolio 639,379 188,907
Fidelity VIP Growth Service Class Portfolio 5,576 23
Fidelity VIP High Income Service Class Portfolio 39,689 8,152
Fidelity VIP II Asset Manager Portfolio 212,596 22,255
Fidelity VIP II Contrafund Service Class Portfolio 1,342,422 109,727
Fidelity VIP II Investment Grade Bond Portfolio 411,835 561,164
Fidelity VIP III Growth Opportunities Service
Class Portfolio 511,902 222,002
Janus Aspen Series Balanced Portfolio 1,770,054 362,981
Janus Aspen Series Worldwide Growth Portfolio 2,205,587 341,664
Janus Aspen Series Global Technology Service
Class Portfolio 32,903 22
LN Bond Fund 496,773 139,111
LN Capital Appreciation Fund 766,614 61,503
LN Equity-Income Fund 240,679 98,152
LN Global Asset Allocation Fund 30,152 40,832
LN Money Market Fund 7,670,071 7,484,200
LN Social Awareness Fund 339,378 319,485
MFS Emerging Growth Series 2,331,848 1,010,008
MFS Total Return Series 448,715 156,356
MFS Utilities Series 1,034,240 348,532
NB AMT Mid-Cap Growth Portfolio 506,679 40,958
NB AMT Partners Portfolio 221,805 26,709
OCC Accumulation Global Equity Portfolio 165,322 46,209
OCC Accumulation Managed Portfolio 469,699 367,114
Templeton Asset Strategy Fund 159,255 11,950
Templeton International Securities Fund 1,158,891 69,058
Templeton International Securities Class 2 Fund 533,792 227,084
Templeton Growth Securities Fund 372,003 256,261
Templeton Growth Securities Class 2 Fund 127,296 20,494
----------- -----------
$39,446,491 $16,037,873
=========== ===========
</TABLE>
Supplement Page 21
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
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 COST OF
OUTSTANDING VALUE SHARES SHARES
------------------------------------------------------------
<S> <C> <C> <C> <C>
AIM V.I. Capital Appreciation Fund 49,081 $38.51 $ 1,890,118 $ 1,365,694
AIM V.I. Diversified Income Fund 91,771 9.96 914,044 987,747
AIM V.I. Growth Fund 234,658 33.83 7,938,470 7,026,533
AIM V.I. International Equity Fund 18,925 26.11 494,121 504,789
AIM V.I. Value Fund 230,788 33.41 7,710,616 7,088,264
AFIS Growth Class 2 Fund 733 81.01 59,371 58,793
AFIS Growth -- Income Class 2 Fund 1,760 33.36 58,716 58,595
AFIS Global Small Capitlization Class 2 Fund 625 17.46 10,917 10,953
Baron Capital Asset 12b1 Fund 17,055 17.89 305,116 278,154
Deutsche VIT EAFE Equity Index Fund 26,115 12.83 335,061 334,911
Deutsche VIT Equity 500 Index Fund 846,608 15.11 12,792,239 11,820,447
Deutsche VIT Small Cap Index Fund 23,727 11.88 281,874 279,741
DGPF High Yield Series 31,276 6.61 206,735 226,059
DGPF Devon Series 4,006 13.04 52,234 53,302
DGPF Emerging Markets Series 51,940 7.58 393,704 350,325
DGPF Small Cap Value Series 103,471 14.97 1,548,954 1,558,767
DGPF REIT Series 941 9.75 9,172 8,363
DGPF Trend Series 121,254 36.67 4,446,384 3,657,729
Fidelity VIP Equity-Income Portfolio 102,518 22.91 2,348,684 2,513,421
Fidelity VIP Growth Service Class Portfolio 109 51.39 5,587 5,552
Fidelity VIP High Income Service Class Portfolio 3,147 10.01 31,504 31,543
Fidelity VIP II Asset Manager Portfolio 40,143 16.54 663,964 688,478
Fidelity VIP II Contrafund Service
Class Portfolio 76,614 25.03 1,917,646 1,994,129
Fidelity VIP II Investment Grade Bond Portfolio 160,387 11.75 1,884,552 1,966,546
Fidelity VIP III Growth Opportunities Service
Class Portfolio 23,431 20.58 482,202 492,053
Janus Aspen Series Balanced Portfolio 94,812 26.32 2,495,449 2,550,833
Janus Aspen Series Worldwide Growth Portfolio 65,759 48.03 3,158,423 3,033,041
Janus Aspen Series Global Technology Service
Class Portfolio 3,369 9.82 33,088 32,880
LN Bond Fund 100,979 11.72 1,183,272 1,183,048
LN Capital Appreciation Fund 38,990 30.73 1,198,046 1,189,630
LN Equity-Income Fund 14,937 15.40 230,012 294,038
LN Global Asset Allocation Fund 1,748 15.45 27,001 28,147
LN Money Market Fund 592,011 10.00 5,920,107 5,920,107
LN Social Awareness Fund 2,808 41.62 116,856 120,130
MFS Emerging Growth Series 141,452 35.05 4,957,888 4,162,666
MFS Total Return Series 84,608 17.33 1,466,262 1,488,161
MFS Utilities Series 85,973 22.86 1,965,333 1,862,967
NB AMT Mid-Cap Growth Portfolio 22,934 27.40 628,398 563,189
NB AMT Partners Portfolio 14,149 15.97 225,953 250,070
OCC Accumulation Global Equity Portfolio 47,267 15.76 744,927 749,541
OCC Accumulation Managed Portfolio 26,646 38.19 1,017,613 1,108,271
Templeton Asset Strategy Fund 19,853 19.63 389,713 410,886
Templeton International Securities Fund 177,188 19.31 3,421,499 3,463,720
Templeton International Securities Class 2 Fund 32,597 19.21 626,195 636,792
Templeton Growth Securities Fund 18,747 13.26 248,590 242,875
Templeton Growth Securities Class 2 Fund 11,364 13.22 150,232 160,268
----------- -----------
$76,986,842 $72,812,148
=========== ===========
</TABLE>
Supplement Page 22
<PAGE>
LINCOLN LIFE FLEXIBLE PREMIUM VARIABLE LIFE ACCOUNT R
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
6. NEW INVESTMENT FUNDS AND FUND NAME CHANGES
During 2000 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, the AFIS Growth
Class 2 Fund, the AFIS Growth -- Income Class 2 Fund, the
AFIS Global Small Capitalization Class 2 Fund and the Janus
Aspen Series Global Technology Service 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
Contracts, 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 (LNL) provides that LNL 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 LNL, 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, LNL.
Certain additional conditions apply to indemnification in criminal
proceedings.
In particular, separate conditions govern indemnification of
directors, officers, and employees of LNL in connection with suits
by, or in the right of, LNL.
Please refer to Article VII of the By-Laws of LNL (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. 1 to this Registration Statement comprises
the following papers and documents:
The facing sheet;
A cross-reference sheet (reconciliation and tie);
A Prospectus Supplement of 28 pages; All other disclosure not modified by
this Supplement remains unchanged from that contained in the Prospectus
filed as part of Pre-Effective Amendment No. 1 to this Registration
Statement, which Prospectus is hereby incorporated herein by this
reference.
The undertaking to file reports;
The fees and charges representation;
Statements regarding indemnification;
The signatures.
The written consents of the following persons:
Robert A. Picarello, Esq.
<PAGE>
<TABLE>
<S> <C> <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.(1)
(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) Form of Policy and Application.(1)
(b) Riders.(1)
(c) Form of Contract LN 655, Form of Application B10409(10)
(6) (a) Articles of Incorporation of The Lincoln National Life
Insurance Company.(7)
(b) Bylaws of The Lincoln National Life Insurance Company.(7)
(7) Not applicable.
(8) Fund Participation Agreements.
Forms of Agreements between The Lincoln National Life Insurance
Company and:
(a) AIM Variable Insurance Funds, Inc.(8)
(b) Baron Capital Funds Trust.(9)
(c) BT Insurance Funds Trust.(6)
(d) Delaware Group Premium Fund, Inc.(3)
(e) Fidelity Variable Insurance Products Fund.(4)
(f) Fidelity Variable Insurance Products Fund II.(4)
(g) Fidelity Variable Insurance Products Fund III.(9)
(h) Janus Aspen Series.(9)
(i) Lincoln National Funds.(8)
(j) MFS-Registered Trademark- Variable Insurance Trust.(5)
(k) Neuberger Berman Advisers Management Trust.(9)
(l) Templeton Variable Products Series Fund.(8)
(m) OCC Accumulation Trust.(6)
(n) American Variable Insurance Series.(11)
(9) Services Agreement between The Lincoln National Life Insurance
Co. and Delaware Management Co.(2)
(10) See Exhibit 1(5).
2. See Exhibit 1(5).
3. Opinion and Consent of Counsel.
4. Not applicable.
5. Not applicable.
6. Opinion and consent of Actuary. Not applicable for this filing.
7. Consent of Independent Auditors. Not applicable for this filing.
8. Not applicable.
</TABLE>
--------------------------
(1) Incorporated by reference to Registrant's registration statement on
Form S-6 (File No. 333-43107) filed on December 23, 1997.
(2) Incorporated by reference to Registration Statement on Form S-6 (File
No. 33-40745) filed on November 21, 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 N-4
(File No. 33-27783) filed on December 5, 1996.
(8) Incorporated by reference to Post-Effective Amendment No. 3 to Registration
Statement on Form S-6 (File No. 333-40937) filed on April 29, 1999.
(9) Incorporated by reference to Post-Effective Amendment No. 3 on on Form N-4
(File No. 333-50817) filed on April 23, 1999.
(10) Incorporated by Reference to Registration Statement on Form S-6
(File 33-XXXXX) filed on March 30, 2000.
(11) Incorporated by reference to Post-Effective Amendment No. 1 on Form S-6
(File No. 333-72875) filed on October 15, 1999.
(12) Incorporated by reference to Post-Effective Amendment No. 1 on Form S-6
(File No. 333-82663) filed on April 13, 2000.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
Lincoln Life Flexible Premium Variable Life Separate Account R (File
No. 333-33782), has caused this Post-Effective Amendment No. 1 to be signed on
its behalf by the undersigned duly authorized, in the City of Hartford and State
of Connecticut on the 26th day of September, 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 SEPARATE ACCOUNT R (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. 1 to this Registration Statement (File
No. 333-33782) has been signed below on September 26, 2000 by the following
persons, as officers and directors of the Depositor, in the capacities
indicated:
<TABLE>
<CAPTION>
SIGNATURE TITLE
--------- -----
<C> <S>
/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, and Director
John H. Gotta
/s/ LORRY J. STENSRUD* Chief Executive Officer of Annuities, 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
-------------------------------------- Officer (Principal Accounting Officer)
Keith J. Ryan
/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 Amendment No. 1 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
--------- -----
<C> <S>
/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
</TABLE>
<TABLE>
<S> <C> <C>
* 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
-------------------------------
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
--------- -----
<C> <S>
/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
</TABLE>
<TABLE>
<S> <C> <C>
*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
-------------------------------
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
--------- -----
<C> <S>
-------------------------------------- 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
--------- -----
<C> <S>
-------------------------------------- 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 CHRAZN Senior Vice President, Chief Financial Officer and
-------------------------------------- Director
Janet Chrazn
Vice President, Controller and Chief Accounting
-------------------------------------- Officer
Keith J. Ryan
-------------------------------------- Director
Charles E. Haldeman, Jr.
-------------------------------------- Director
Richard C. Vaughan
</TABLE>
<TABLE>
<S> <C> <C>
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
--------- -----
<C> <S>
-------------------------------------- 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 Chrazn
Vice President, Controller and Chief Accounting
-------------------------------------- Officer
Keith J. Ryan
-------------------------------------- Director
Charles E. Haldeman, Jr.
-------------------------------------- Director
Richard C. Vaughan
</TABLE>
<TABLE>
<S> <C> <C>
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: February 29, 2008
</TABLE>
