SECURITIES AND EXCHANGE COMMISSION
Washington DC 20549
FORM N-8B-2
REGISTRATION STATEMENT OF UNIT INVESTMENT TRUSTS
WHICH ARE CURRENTLY ISSUING SECURITIES
Dated October 29, 1999
Pursuant to Section 8(b) of the Investment Company Act of 1940
VARIABLE LIFE ACCOUNT C
OF AETNA LIFE INSURANCE AND ANNUITY COMPANY
(Name of Unit Investment Trust)
151 Farmington Avenue
Hartford, Connecticut 06156
(Address of Principal Office of Registrant)
Issuer of periodic payment plan certificates only for purposes of information
provided herein.
I. ORGANIZATION AND GENERAL INFORMATION
1. (a) FURNISH NAME OF THE TRUST AND THE INTERNAL REVENUE SERVICE
EMPLOYER IDENTIFICATION NUMBER.
The trust is the Variable Life Account C of Aetna Life Insurance
and Annuity Company (hereinafter referred to as "Account C" or
the "Separate Account"). Account C is a separate investment
account of Aetna Life Insurance and Annuity Company (the
"Company") and has no employer identification number.
(b) FURNISH TITLE OF EACH CLASS OR SERIES OF SECURITIES ISSUED BY THE
TRUST.
The securities are Group Flexible Payment Variable Life Insurance
Policies ("Policies") and the Certificates thereunder
("Certificates"). In the future the Company may issue group
fixed payment variable life insurance policies.
2. FURNISH NAME AND PRINCIPAL BUSINESS ADDRESS AND ZIP CODE AND THE
INTERNAL REVENUE SERVICE EMPLOYER IDENTIFICATION NUMBER OF EACH
DEPOSITOR OF THE TRUST.
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Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, Connecticut 06156
FEIN: 71-0294708
3. FURNISH NAME AND PRINCIPAL BUSINESS ADDRESS AND ZIP CODE AND THE
INTERNAL REVENUE SERVICE EMPLOYER IDENTIFICATION NUMBER OF EACH
CUSTODIAN OR TRUSTEE OF THE TRUST INDICATING FOR WHICH CLASS OF SERIES
OF SECURITIES EACH CUSTODIAN OR TRUSTEE IS ACTING.
Not applicable.
4. FURNISH NAME AND PRINCIPAL BUSINESS ADDRESS AND ZIP CODE AND THE
INTERNAL REVENUE SERVICE EMPLOYER IDENTIFICATION NUMBER OF EACH
PRINCIPAL UNDERWRITER CURRENTLY DISTRIBUTING SECURITIES OF THE TRUST.
Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, CT 06156
FEIN: 71-0294708
5. FURNISH NAME OF STATE OR OTHER SOVEREIGN POWER THE LAWS OF WHICH
GOVERN WITH RESPECT TO THE ORGANIZATION OF THE TRUST.
Connecticut
6. (a) FURNISH THE DATES OF EXECUTION AND TERMINATION OF AND INDENTURE
OR AGREEMENT CURRENTLY IN EFFECT UNDER THE TERMS OF WHICH THE
TRUST WAS ORGANIZED AND ISSUED OR PROPOSES TO ISSUE SECURITIES.
Account C was authorized under Connecticut law pursuant to a
Unanimous Written Consent of the Executive Committee of the Board
of Directors of the Company on August 31, 1999. Account C will
continue in existence until the Board of Directors direct that it
be terminated.
(b) FURNISH THE DATES OF EXECUTION AND TERMINATION OF ANY INDENTURE
OR AGREEMENT CURRENTLY IN EFFECT PURSUANT TO WHICH THE PROCEEDS
OF PAYMENTS ON SECURITIES ISSUED OR TO BE ISSUED BY THE TRUST ARE
HELD BY THE CUSTODIAN OR TRUSTEE.
Not applicable.
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7. FURNISH IN CHRONOLOGICAL ORDER THE FOLLOWING INFORMATION WITH RESPECT
TO EACH CHANGE OF NAME OF THE TRUST SINCE JANUARY 1, 1930. IF THE NAME
HAS NEVER BEEN CHANGED, SO STATE.
Not applicable. The name of the Separate Account has never been
changed.
8. STATE THE DATE ON WHICH THE FISCAL YEAR OF THE TRUST ENDS.
December 31.
MATERIAL LITIGATION
9. FURNISH A DESCRIPTION OF ANY PENDING LEGAL PROCEEDINGS, MATERIAL WITH
RESPECT TO THE SECURITY HOLDERS OF THE TRUST BY REASON OF THE NATURE
OF THE CLAIM OR THE AMOUNT THEREOF, TO WHICH THE TRUST, THE DEPOSITOR,
OR THE PRINCIPAL UNDERWRITER IS A PARTY OR OF WHICH THE ASSETS OF THE
TRUST ARE THE SUBJECT, INCLUDING THE SUBSTANCE OF THE CLAIMS INVOLVED
IN SUCH PROCEEDING AND THE TITLE OF THE PROCEEDING. FURNISH A SIMILAR
STATEMENT WITH RESPECT TO ANY PENDING ADMINISTRATIVE PROCEEDING
COMMENCED BY A GOVERNMENTAL AUTHORITY OR ANY SUCH PROCEEDING OR LEGAL
PROCEEDING KNOWN TO BE CONTEMPLATED BY A GOVERNMENTAL AUTHORITY.
INCLUDE ANY PROCEEDING WHICH, ALTHOUGH IMMATERIAL ITSELF, IS
REPRESENTATIVE OF, OR ONE OF, A GROUP WHICH IN THE AGGREGATE IS
MATERIAL.
No such legal or administrative proceedings are pending. No such legal
or administrative proceedings are known to be contemplated by a
governmental authority.
II. GENERAL DESCRIPTION OF THE TRUST AND SECURITIES OF THE TRUST
GENERAL INFORMATION CONCERNING THE SECURITIES OF THE TRUST AND THE RIGHTS
OF HOLDERS.
10. FURNISH A BRIEF STATEMENT WITH RESPECT TO THE FOLLOWING MATTERS FOR
EACH CLASS OR SERIES OF SECURITIES ISSUED BY THE TRUST.
(a) WHETHER THE SECURITIES ARE OF THE REGISTERED OR BEARER TYPE.
The Policies are group variable life insurance policies and, as
such, are "registered" in the name of the Policyowner and the
records concerning the Policyowner are maintained by or on behalf
of the Company. Similarly, Certificates are "registered" in the
name of the Certificateholder and the records concerning the
Certificateholder are maintained by or on behalf of the Company.
(b) WHETHER THE SECURITIES ARE OF THE CUMULATIVE OR DISTRIBUTIVE
TYPE.
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The Certificates are of the cumulative type, providing for no
distribution of income, dividends or capital gains except in
connection with a voluntary surrender or partial withdrawal of
Policy value by a Certificateholder, or in connection with the
payment of death benefits.
(c) THE RIGHTS OF SECURITY HOLDERS WITH RESPECT TO WITHDRAWAL OR
REDEMPTION.
A Certificate may be cancelled within 10 days of receipt. If the
Certificate is cancelled in a timely fashion, the Company will
refund the sum of the following: the premiums paid, adjusted for
any positive or negative investment performance in variable
options selected (but not deducting any charges made under the
Certificate). If state law does not permit such a refund, then
the refund will be equal to the premiums paid, without interest.
At any time before the death of the insured or the maturity date,
a Certificateholder may totally surrender a Certificate. The
Certificate may be partially surrendered at any time after the
first Certificate Year and before the maturity date by sending a
written request to the Company. The amount of a partial surrender
may be no less than the minimum amount set forth in the
Certificate. The amount available for surrender is the Total
Account Value less any outstanding loan balance at the end of the
valuation period during which the surrender or request is
received at the Company's office. Cash value in Account C
available for surrender on any given valuation date reflects
total net premiums (premiums paid less the deduction for the
premium load) allocated to Account C, investment performance
through the date of the request, other charges incurred in
connection with a Certificate, any partial surrenders and any
indebtedness. The cash value will vary daily. The method for
calculating cash value is described in Item 10(i)(3). (The term
"Total Account Value" is used in this Registration Statement
interchangeably with the term "cash value"; the term "cash
surrender value" represents the amount available to the
Certificateholder.)
If a Certificate is being totally surrendered, any unpaid charges
and indebtedness will be deducted from the sub-accounts. No
partial surrender will be permitted which would result in a
Specified Amount lower than the then current minimum for which a
Policy would be issued.
Payment of a Certificate's Total Account Value, less applicable
transaction charges, in Account C in connection with partial or
full surrender will normally occur within seven (7) days after
receipt of a written request. Payment may be postponed: (a) when
the New York Stock Exchange is closed (except holidays or
weekends); (b) when trading on the Exchange is restricted; (c)
when the SEC determines an emergency exists so that it is not
reasonably practicable for the Fund to dispose of the securities
it holds or to determine the value of the Funds' net assets. In
these instances, we also may defer payment from the Separate
Account of Full Surrender and Partial Surrender Values, any Death
Benefit in excess of the current Specified Amount, and any
portion of the Loan Value. An owner may elect to have the amount
paid in a lump sum or under one of the settlement options
referred to in Item 10(i)(7). Upon the death of the insured,
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the designated beneficiary is entitled to receive the death
benefit under a Policy. The death benefit is described in Item
10(i)(2).
See Item 13 for a discussion of any applicable charges.
(d) THE RIGHTS OF SECURITY HOLDERS WITH RESPECT TO CONVERSION,
TRANSFER, PARTIAL-REDEMPTION, AND SIMILAR MATTERS.
If a Certificate terminates because (a) an insured ceases to be
within one of the categories of persons eligible for coverage
under a Certificate, or (b) we terminate the policy because the
Policyowner stops sending payroll deduction premiums to us, or
(c) the Policyowner discontinues the group policy, the amount of
insurance which ceases may be converted to any substantially
comparable flexible premium general account life insurance policy
except term that the Company makes available for such purpose and
according to the Certificate terms. The terms of the conversion
policy, however, may include additional charges or may not be as
attractive as under the Certificate. This conversion privilege is
available only within the 31-day period following (a) termination
of the Policy by the Policyowner or the Company, or (b)
termination of a Certificate upon the insured's ineligibility for
coverage. No evidence of insurability will be required.
A Certificateholder may obtain policy loans, as described in Item
21.
A Certificateholder may make surrenders, as described in Item
10(c), subject to applicable charges as described in Item 13.
An owner may allocate net premiums among the sub-accounts of
Account C, as described in Item 15.
Cash value may be transferred among the sub-accounts of Account C
before the Certificate's Maturity Date. Values may also be
transferred from the Fixed Account to one or more sub-accounts of
Account C within the 45-day period following a Certificate
Anniversary, subject to limits on the amount transferred. The
Company reserves the right to charge an administrative fee of $25
for each transfer over 12 per year and to limit the total number
of variable options that may be elected to 15 over the lifetime
of a Certificate. The Company will implement all transfers and
determine all values at the end of the valuation period during
which the transfer request is received and recorded.
(e) IF THE TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES
THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENTS
WITH RESPECT TO LAPSES OR DEFAULTS BY SECURITY HOLDERS IN MAKING
PRINCIPAL PAYMENTS, AND WITH RESPECT TO REINSTATEMENT.
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The duration of a Certificate depends upon the cash surrender
value. Except as noted below, a Certificate will lapse only when
the cash surrender value is insufficient to cover the monthly
deduction on the monthly anniversary.
If the cash surrender value is insufficient to cover the monthly
deduction, the Company will notify a Certificateholder and any
assignee of record of the minimum payment needed to keep the
Certificate in force. A Certificateholder will have a grace
period of 61 days, measured from the date notice is sent, for the
Company to receive sufficient payments. If the Company does not
receive a sufficient payment within the grace period, lapse of
the Certificate will result. If a sufficient payment is received
during the grace period, any resulting net premium will be
allocated among the sub-accounts of Account C in accordance with
the Certificateholder's then current instructions, and any
monthly deductions due will be charged to the sub-accounts.
During the first five policy years, the Certificate will not
lapse and no grace period will begin provided the premiums paid
have been at least equal to the specified amount of premiums and
the Total Account Value is greater than the monthly deduction.
The Company will allow reinstatement within five years after the
date of termination, and before the Maturity Date (age 100), and
will require evidence of insurability. The Total Account Value
upon reinstatement will be that provided by the net premium paid
at the time of reinstatement, less the monthly deduction for that
day.
If a Certificateholder requests reinstatement during the first
five Policy Years, then the premium required at reinstatement
will be: the sum of (1) and (2), where (1) is any portion of the
Loan Account Value plus accrued interest on the date of lapse
exceeding the Total Account Value on the date of lapse and (2) is
a premium payment sufficient to keep the Certificate in force for
the current month plus 2 additional months.
(f) THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENTS
WITH RESPECT TO VOTING RIGHTS, TOGETHER WITH THE NAMES OF ANY
PERSONS OTHER THAN SECURITY HOLDERS GIVEN THE RIGHT TO EXERCISE
VOTING RIGHTS PERTAINING TO THE TRUST'S SECURITIES OR THE
UNDERLYING SECURITIES AND THE RELATIONSHIP OF SUCH PERSONS TO THE
TRUST.
Certificateholders are entitled to instruct the Company how to
vote Fund shares held in the Variable Options of Account C and
attributable to their Certificate at meetings of shareholders of
the Funds. The number of votes for which a Certificateholder may
give directions will be determined as of the record date for the
meeting. The number of votes a Certificateholder is entitled to
direct with respect to a particular Fund is equal to (a) the
Total Account Value invested in that Fund divided by (b) the net
asset value of one share of that Fund. Fractional votes will be
recognized. Account C will vote all shares of each Fund that it
holds of record in the same proportion as those shares for
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which the Company has received instructions from owners
participating in that Fund through Account C.
If a Certificateholder is entitled to give the Company voting
instructions, the Company will send proxy material and a form for
providing such instructions. In certain cases, the Company may
disregard instructions relating to changes in a Fund's investment
manager or its investment policies. The Company will advise the
Certificateholder if it does and detail the reasons in its next
report to Certificateholders. The Company reserves the right to
modify these procedures in any manner consistent with applicable
legal requirements and interpretations as in effect from time to
time.
(g) WHETHER SECURITY HOLDERS MUST BE GIVEN NOTICE OF ANY CHANGES IN:
(1) THE COMPOSITION OF THE ASSETS OF THE TRUST.
The Company reserves the right, subject to compliance with
applicable law:
(i) to make additions to, deletions from, or substitutions
for the Funds that are held or purchased by Account C;
(ii) to eliminate the shares of any of the Funds and to
substitute shares of another open-end, registered
investment company, if the shares of a Fund are no
longer available for investment, or if in its judgment
further investment in any Fund should become
inappropriate in view of the purposes of Account C;
(iii)to eliminate one or more sub-accounts, if, in its sole
discretion, marketing, tax or investment conditions
warrant;
(iv) to operate Account C as a management company under the
1940 Act;
(v) to deregister Account C under the 1940 Act in the event
such registration is no longer required; and
(vi) to combine Account C with one or more of the Company's
other separate accounts as may be established.
In no event will any of the changes described above be made
without notice to Certificateholders in accordance with the 1940
Act and without obtaining, as necessary, prior approval of the
Securities and Exchange Commission.
(2) THE TERMS AND CONDITIONS OF THE SECURITIES ISSUED BY THE
TRUST.
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The Policy may be changed at any time by written agreement
between the Company and the Policyowner provided all
necessary regulatory approvals have been received. The
consent of any Certificateholder is needed if the change
results in a reduction in benefits or an increase in
guaranteed charges. The Policyowner will not have to give
written approval of a change in the Policy if: the
Policyowner asked for the change and the Company has agreed
to it, and the change is needed so that the Policy will
conform to any law, regulation or ruling of a jurisdiction
that affects a person covered under this policy or the
federal government.
(3) THE PROVISIONS OF ANY INDENTURE OR AGREEMENT OF THE TRUST.
Not applicable.
(4) THE IDENTITY OF THE DEPOSITOR, TRUSTEE OR CUSTODIAN.
Account C has no trustee or custodian. There is no provision
requiring notice to, or consent of, security holders, with
respect to a change in the identity of the depositor.
(h) WHETHER THE CONSENT OF SECURITY HOLDERS IS REQUIRED IN ORDER FOR
ACTION TO BE TAKEN CONCERNING ANY CHANGE IN:
(1) THE COMPOSITION OF THE ASSETS OF THE TRUST.
Consent of Certificateholders is not required when changing
the underlying securities of Account C. However, to change
such securities, approval of the Securities and Exchange
Commission is required by Section 26(b) of the 1940 Act.
Except as required by Federal or State law or regulation, no
action will be taken by the Company which will adversely
affect the rights of Certificateholders without their
consent.
(2) THE TERMS AND CONDITIONS OF THE SECURITIES ISSUED BY THE
TRUST.
See Item 10(g)(2).
(3) THE PROVISIONS OF ANY INDENTURE OR AGREEMENT OF THE TRUST.
Not applicable.
(4) THE IDENTITY OF THE DEPOSITOR, TRUSTEE OR CUSTODIAN.
See Item 10(g)(4).
(i) ANY OTHER PRINCIPAL FEATURE OF THE SECURITIES ISSUED BY THE TRUST
OR ANY OTHER PRINCIPAL RIGHT, PRIVILEGE OR
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OBLIGATION NOT COVERED BY SUBDIVISIONS (A) TO (G) OR BY ANY OTHER
ITEM IN THIS FORM.
(1) Premium Payments. A Certificateholder may, subject to
certain restrictions stated in the Policy or Certificate,
make premium payments in any amount and at any frequency,
subject to the basic premium requirements.
A Certificateholder may also determine a planned periodic
premium payment schedule that provides for the payment of a
level premium at a fixed interval for a specified period of
time. A Certificateholder need not make premium payments in
accordance with such planned periodic premium schedule and
the failure to make such a payment will not itself cause a
Certificate to lapse. A Certificateholder may make
unscheduled premium payments subject to restrictions listed
in the Certificate.
A premium load will be deducted from each premium payment.
See Item 13. Unless instructed otherwise, premium payments
in excess of the planned premium will be considered loan
repayments.
In the application for a Certificate, a Certificateholder
can allocate net premiums among the sub-accounts of Account
C. The net premium will be allocated on the first valuation
date on or following the record date in accordance with the
directions in the application. Net premiums paid after the
record date will be allocated in accordance with the
Certificateholder's instructions in the application.
Percentages must be in whole numbers. The Certificateholder
may change the allocation for future net premiums at any
time by providing the Company with written notification. The
first twelve such changes during any one Certificate year
will be made free of charge; any additional change may incur
a charge of $25 which will be deducted on a pro rata basis
from each of the sub-accounts.
The insurance coverage under a Certificate starts when the
Company approves the insurance based upon the application
and any other information required to be submitted, and the
Company receives at least the first Basic Monthly Premium,
and the insured is eligible for coverage. Therefore,
coverage may not commence until some time after an
application is submitted, although temporary fixed insurance
coverage may be offered. The issue date of a Certificate is
generally the date the Company approves a Certificate.
(2) General Description of Basic Policy Benefits.
Death Benefit. As long as a Certificate remains in force,
the Company will, upon receipt of proof of the insured's
death, pay the death benefit proceeds of a Certificate,
reduced by any outstanding indebtedness and due and unpaid
charges to the named beneficiary in accordance with the
designated death benefit option. Death benefits will be
determined at the end of the valuation period during which
the insured dies. The proceeds
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may be paid in a lump sum or under one or more of the
settlement options set forth in a Policy or Certificate. The
death benefit proceeds payable under the designated death
benefit option will be increased by any additional insurance
provided by rider.
The Policies provided two death benefit options: Death
Benefit Option 1 ("Option 1") and Death Benefit Option 2
("Option 2"). Generally, a Certificateholder designates the
death benefit option in the application. The death benefit
under Option 1 includes the Total Account Value. Under this
option, the Death Benefit will be the greater of the
Specified Amount of a Certificate or a specified percentage
(the "limitation percentage") times the Total Account Value
on the date of death. The death benefit under Option 2 is in
addition to the Total Account Value. Under this option, the
Death Benefit will be the greater of the Specified Amount
plus the Total Account Value of a Certificate or the
limitation percentage times the Total Account Value on the
date of death.
A Certificateholder may increase or decrease the Specified
Amount as follows:
Increase in Specified Amount
The Certificateholder may increase the Specified Amount at
any time while a Certificate is in force. The insured may be
required to satisfy an insurability requirement.
The Surrender Value immediately after an increase must be at
least three times the sum of:
o the most recent Monthly Deduction from the Total
Account Value; and
o the Specified Amount of the increase multiplied by the
applicable Cost of Insurance Rate divided by 1000.
The Issue Date for any increase will be shown in the
Supplemental Certificate Specifications. The 5-year period
as described in the No Lapse Coverage provision will restart
for the increase on the Issue Date of the increase. The
Basic Monthly Premium after the increase will be based on
the new Specified Amount.
Decrease in Specified Amount
The Certificateholder may decrease the Specified Amount at
any time after the first Certificate Year. A decrease in the
Specified Amount will not be allowed if the Specified Amount
would be reduced below the Minimum Specified Amount, or the
Certificate would be treated as other than life insurance
for income tax purposes.
For a decrease in the Specified Amount, the Issue Date will
be the Monthly Deduction Day on or next following the date
on which a written
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request is received. The decrease, including any decrease in
connection with a Partial Surrender or a change in Death
Benefit Option, will reduce any past increases in the
reverse order in which they occurred.
The Basic Monthly Premium after a decrease, including any
decrease in connection with a Partial Surrender, will be
based on the new Specified Amount.
Change in Death Benefit Option
Any change in the Death Benefit option is subject to the
following conditions:
o The Company will not allow a change in the Death
Benefit option if the Specified Amount will be reduced
below the Minimum Specified Amount, or a Certificate
would be treated as other than life insurance for
income tax purposes.
o The change will take effect on the Monthly Deduction
Day on or next following the date on which a written
request is received.
o Evidence of insurability may be required.
Change from Option 1 to 2
Changes from Option 1 to 2 will be allowed at any time while
a Certificate is in force. The Specified Amount will be
reduced to equal the Specified Amount less the Total Account
Value at the time of the change.
The Basic Monthly Premiums following the change will be
based on the new Specified Amount.
Change from Option 2 to 1
Changes from Option 2 to 1 will be allowed at any time while
a Certificate is in force. The new Specified Amount will
equal the Specified Amount plus the Total Account Value as
of the date of the change.
The Basic Monthly Premiums following the change will be
based on the new Specified Amount.
Benefits at Maturity. If the insured is living and the
Certificate is in force, the Company will pay the Total
Account Value of a Certificate on the maturity date, less
any outstanding loan balance. The maturity date will be the
anniversary date nearest the insured's 100th birthday.
(3) Calculation of Account Value.
On the policy date, if a premium has been paid, a
Certificate's account value in a sub-account will equal the
portion of any net premium allocated to the sub-account
reduced by the portion of the first monthly deduction
allocated to that sub-account.
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Thereafter, on each valuation date, a Certificate's account
value in each sub-account will equal:
(a) A Certificate's Total Account Value in the sub-account
on the preceding valuation date, multiplied by the
experience factor for the current valuation period;
plus
(b) Any net premium payments received during the current
valuation period which are allocated to the
sub-account; plus
(c) All account values transferred to the sub-account from
the Loan Account or from another sub-account during the
current valuation period; minus
(d) All account values transferred from the sub-account to
the Loan Account or to another sub-account during the
current valuation period; minus
(e) All partial surrenders from the sub-account during the
current valuation period; minus
(f) The portion of the monthly deduction allocated to a
Certificate's account value in the sub-account during
the current valuation period.
A Certificate's Total Account Value in Account C equals the
sum of a Certificate's account value in each sub-account.
Because the account value is dependent upon a number of
variables, including the investment experience of the chosen
Fund(s), the frequency and amount of premium payments,
transfers and surrenders, and charges assessed in connection
with the Certificate, a Certificate's account value cannot
be predetermined.
(4) Investment Performance. The experience factor measures
investment performance during a valuation period. Each
sub-account has its own distinct net investment factor. In
calculating the sub-account's net investment factor for a
valuation period, the net asset value for each share of the
Fund at the end of the current valuation period is increased
by the amount of the sub-account's share of any dividend or
capital gain distribution declared during the current
valuation period and decreased by a charge for taxes. The
total is then divided by the net asset value at the end of
the preceding valuation period. A charge equal to as much as
1.25% on an annual basis of the net daily assets for each
day in the valuation period is subtracted to compensate the
Company for certain expense and mortality risks and a
maximum charge of $19 a month during the first policy year
(whether from the Issue Date of the policy or an increase in
the specified amount) and a maximum charge of $11 a
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month thereafter are subtracted to compensate the Company
for certain administrative expenses.
(5) Loan Provisions. See Item 21.
(6) Payment of Benefits. Death benefits will be determined at
the end of the valuation period during which the insured
dies and will ordinarily be paid within seven days after the
Company receives due proof of death and the Company verifies
the validity of the claim. Maturity benefits will ordinarily
be paid within seven days of the maturity date. However, the
Company reserves the right to suspend or postpone the date
of any payment of any benefit or values for any Valuation
Period (a) when the New York Stock Exchange is closed
(except holidays or weekends); (b) when trading on the
Exchange is restricted; (c) when the SEC determines an
emergency exists so that it is not reasonably practicable
for the Fund to dispose of the securities it holds or to
determine the value of the Funds' net assets.
(7) Settlement Options. Certificateholders and beneficiaries,
subject to a prior election of the Certificateholder, may
decide the form in which the benefits will be paid. The
benefits under a Certificate may be paid in a lump sum or
under one or more of the settlement options. These choices
are also available if a Certificate is surrendered or
matures. If no election is made, the Company will pay the
benefits in a lump sum. The settlement options include
payments for a stated number of years, payments for the
Annuitant's lifetime, Life Income based on the lives of two
Annuitants, and payment of interest on the sum left with us
at 3%.
(8) Optional Insurance Benefits. Subject to certain
requirements, one or more of the following optional
insurance benefits may be added to a Certificate by rider.
The cost of the optional insurance benefits will be deducted
as part of the monthly deduction. These benefits include:
Children's Insurance Rider; Accidental Death Benefit Rider;
Disability Benefit Rider; and Accelerated Death Benefit
Rider.
11. DESCRIBE BRIEFLY THE KIND OR TYPE OF SECURITIES COMPRISING THE UNIT OF
SPECIFIED SECURITIES IN WHICH SECURITY HOLDERS HAVE AN INTEREST.
Account C invests, at the owner's option, in securities of one or more
of the Funds, each of which is a mutual fund registered with the
Securities and Exchange Commission as an open-end diversified
management company. The Funds will be advised by the Company or
investment advisers with which the Company and/or Account C has
entered into an advisory or subadvisory agreement. Premium payments
are allocated, according to the Certificate's instructions, to one or
more sub-accounts of Account C. Each sub-account invests solely in
shares of one of the Funds. The Funds and their investment objectives
are as follows:
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o Aetna Balanced VP, Inc. seeks to maximize investment return,
consistent with reasonable safety of principal by investing
in a diversified portfolio of one or more of the following
asset classes: stocks, bonds, and cash equivalents, based on
the investment adviser's judgment of which of those sectors
or mix thereof offers the best investment prospects.
o Aetna Income Shares d/b/a Aetna Bond VP seeks to maximize
total return, consistent with reasonable risk, through
investments in a diversified portfolio consisting primarily
of debt securities. It is anticipated that capital
appreciation and investment income will both be major
factors in achieving total return.
o Aetna Variable Fund d/b/a Aetna Growth and Income VP seeks
to maximize total return through investments in a
diversified portfolio of common stocks and securities
convertible into common stock. It is anticipated that
capital appreciation and investment income will both be
major factors in achieving total return.
o Aetna Variable Encore Fund d/b/a Aetna Money Market VP seeks
to provide high current return, consistent with preservation
of capital and liquidity, through investment in high-quality
money market instruments. An investment in the Fund is
neither insured nor guaranteed by the U.S. Government.
o Aetna Generation Portfolios, Inc.--Aetna Ascent VP seeks to
provide capital appreciation. The Portfolio is designed for
investors who generally have an investment horizon exceeding
15 years and who have a high level of risk tolerance.
o Aetna Generation Portfolios, Inc.--Aetna Crossroads VP seeks
to provide total return (i.e., income and capital
appreciation, both realized and unrealized). The Portfolio
is designed for investors who generally have an investment
horizon exceeding 10 years and who have a moderate level of
risk tolerance.
o Aetna Generation Portfolios, Inc.--Aetna Legacy VP seeks to
provide total return consistent with preservation of
capital. The Portfolio is designed for investors who
generally have an investment horizon exceeding five years
and who have a low level of risk tolerance.
o Aetna Variable Portfolios, Inc.--Aetna Index Plus Large Cap
VP seeks to outperform the total return performance of the
Standard & Poor's 500 Composite Index (S&P 500), while
maintaining a market level of risk.
o Fidelity Variable Insurance Products Fund--Equity-Income
Portfolio seeks reasonable income. The Fund will also
consider the potential for capital appreciation. The Fund
seeks a yield which exceeds the composite yield on the
securities comprising the S&P 500.
14
<PAGE>
o Fidelity Variable Insurance Products Fund II--ContraFund
Portfolio seeks long term capital appreciation by investing
primarily in common stocks of companies whose value the
investment adviser believes is not fully recognized by the
public.
o Janus Aspen Series--Aggressive Growth Portfolio is a
nondiversified portfolio that seeks long-term growth of
capital. The Portfolio pursues its investment objective by
investing primarily in common stocks selected for their
growth potential, and normally invests at least 50% of its
equity assets in medium-sized companies. Medium-sized
companies are those whose market capitalizations at the time
of investment fall within the range of companies in the S&P
MidCap 400 Index. Market capitalization is a commonly used
measure of the size and value of a company. The market
capitalizations within the Index will vary, but as of
December 31, 1998, they ranged from approximately $142
million to $73 billion.
o Janus Aspen Series--Balanced Portfolio seeks long-term
capital growth, consistent with preservation of capital and
balanced by current income. The Portfolio pursues its
investment objective by normally investing 40%-60% of its
assets in securities selected primarily for their growth
potential and 40%-60% of its assets in securities selected
primarily for their income potential. This Portfolio
normally invests at least 25% of its assets in fixed-income
securities.
o Janus Aspen Series--Growth Portfolio seeks long-term growth
of capital in a manner consistent with the preservation of
capital. The Portfolio pursues its investment objective by
investing primarily in common stocks selected for their
growth potential. Although the Portfolio can invest in
companies of any size, it generally invests in larger, more
established issuers.
o Janus Aspen Series--Worldwide Growth Portfolio seeks
long-term growth of capital in a manner consistent with the
preservation of capital. The Portfolio pursues its
investment objective by investing primarily in common stocks
of companies of any size throughout the world. The Portfolio
normally invests in issuers from at least five different
countries, including the United States. The Portfolio may at
times invest in fewer than five countries or even a single
country.
o Oppenheimer Global Securities Fund/VA seeks long-term
capital appreciation by investing a substantial portion of
its assets in securities of foreign issuers, "growth-type"
companies, cyclical industries and special situations which
are considered to have appreciation possibilities.
o Oppenheimer Strategic Bond Fund/VA seeks a high level of
current income principally derived from interest on debt
securities and seeks to enhance such income by writing
covered call options on debt securities.
15
<PAGE>
o Portfolio Partners, Inc. (PPI)--MFS Emerging Equities
Portfolio seeks to provide long-term growth of capital.
o Portfolio Partners, Inc. (PPI)--MFS Research Growth
Portfolio seeks long-term growth of capital and future
income.
o Portfolio Partners, Inc. (PPI)--MFS Value Equity Portfolio
seeks capital appreciation.
o Portfolio Partners, Inc. (PPI)--Scudder International Growth
Portfolio seeks long-term growth of capital primarily
through a diversified portfolio of marketable foreign equity
securities with high growth potential.
o Portfolio Partners, Inc. (PPI)--T. Rowe Price Growth Equity
Portfolio seeks long-term capital growth and, secondarily,
increasing dividend income.
12. IF THE TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES AND IF ANY
UNDERLYING SECURITIES WERE ISSUED BY ANOTHER INVESTMENT COMPANY, FURNISH
INFORMATION FOR EACH SUCH COMPANY:
(a) NAME OF COMPANY.
Aetna Balanced VP, Inc.
Aetna Generation Portfolios, Inc.
Aetna Income Shares d/b/a Aetna Bond VP
Aetna Variable Fund d/b/a Aetna Growth And Income VP
Aetna Variable Encore Fund d/b/a Aetna Money Market VP
Fidelity Variable Insurance Products Fund (VIP) Equity-Income
Portfolio
Fidelity Variable Insurance Products Fund II (VIP II)--Contrafund
Portfolio
Janus Aspen Series
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<PAGE>
Oppenheimer Variable Account Funds
Portfolio Partners, Inc. (PPI)
(b) NAME AND PRINCIPAL BUSINESS ADDRESS OF DEPOSITOR.
Not applicable.
(c) NAME AND PRINCIPAL BUSINESS ADDRESS OF TRUSTEE OR CUSTODIAN.
Aetna Balanced VP, Inc.
Mellon Bank, N.A., One Mellon Bank Center, Pittsburgh, PA 15258
Aetna Generation Portfolios, Inc.
Mellon Bank, N.A., One Mellon Bank Center, Pittsburgh, PA 15258
Aetna Income Shares d/b/a Aetna Bond VP
Mellon Bank, N.A., One Mellon Bank Center, Pittsburgh, PA 15258
Aetna Variable Fund d/b/a Aetna Growth And Income VP
Mellon Bank, N.A., One Mellon Bank Center, Pittsburgh, PA 15258
Aetna Variable Encore Fund d/b/a Aetna Money Market VP
Mellon Bank, N.A., One Mellon Bank Center, Pittsburgh, PA 15258
Fidelity Variable Insurance Products Fund (VIP) Equity-Income
Portfolio
The Chase Manhattan Bank, One Chase Manhattan Plaza, New York, NY
Fidelity Variable Insurance Products Fund II (VIP II)--Contrafund
Portfolio
Brown Brothers Harriman & Co., 40 Water Street, Boston, MA
Janus Aspen Series
State Street Bank and Trust Company, P.O. Box 0351, Boston, MA
02117-0351
Oppenheimer Variable Account Funds
The Bank of New York, 110 Washington Street, New York, NY
Portfolio Partners, Inc. (PPI)
Investors Bank & Trust Company ("Investors Bank"), 200 Clarendon
Street, Boston, MA
(d) NAME AND PRINCIPAL BUSINESS ADDRESS OF PRINCIPAL UNDERWRITER.
Aetna Balanced VP, Inc.
17
<PAGE>
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, Hartford, CT 06156
Aetna Generation Portfolios, Inc.
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, Hartford, CT 06156
Aetna Income Shares D/B/A Aetna Bond VP
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, Hartford, CT 06156
Aetna Variable Fund D/B/A Aetna Growth And Income VP
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, Hartford, CT 06156
Aetna Variable Encore Fund D/B/A Aetna Money Market VP
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, Hartford, CT 06156
Fidelity Variable Insurance Products Fund (VIP) Equity-Income
Portfolio
Fidelity Management & Research Company
82 Devonshire Street, Boston, MA 02109
Fidelity Variable Insurance Products Fund II (VIP II)--Contrafund
Portfolio
Fidelity Management & Research Company
82 Devonshire Street, Boston, MA 02109
Janus Aspen Series
Janus Distributors, Inc.
100 Fillmore Street, Denver, Colorado 80206-4928.
Oppenheimer Variable Account Funds
OppenheimerFunds Distributor, Inc.
3410 South Galena Street, Denver, Colorado 80231
Portfolio Partners, Inc. (PPI)
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, Hartford, CT 06156
(e) THE PERIOD DURING WHICH THE SECURITIES OF SUCH COMPANY HAVE BEEN THE
UNDERLYING SECURITIES.
Not applicable. As of the date of this filing, Account C has not
commenced operations.
INFORMATION CONCERNING LOADS, FEES, CHARGES AND EXPENSES
18
<PAGE>
13. (a) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO EACH LOAD, FEE,
EXPENSE OR CHARGE TO WHICH (1) PRINCIPAL PAYMENTS; (2) UNDERLYING
SECURITIES; (3) DISTRIBUTIONS; (4) CUMULATED OR REINVESTED
DISTRIBUTIONS OR INCOME; AND (5) REDEEMED OR LIQUIDATED ASSETS OF THE
TRUST'S SECURITIES ARE SUBJECT:
(A) THE NATURE OF SUCH LOAD, FEE, EXPENSE OR CHARGE;
(B) THE AMOUNT THEREOF;
(C) THE NAME OF THE PERSON TO WHOM SUCH AMOUNTS ARE PAID AND HIS
RELATIONSHIP TO THE TRUST;
(D) THE NATURE OF THE SERVICES PERFORMED BY SUCH PERSON IN
CONSIDERATION FOR SUCH LOAD, FEE, EXPENSE OR CHARGE.
(1) Principal Payments.
The Company deducts a charge equal to 8% of the premium before
the premium is allocated to the Certificate's Total Account
Value. The Company uses the proceeds of this charge to cover
certain expenses and taxes associated with the sales, start-up
and maintenance of the Certificates. The Company reserves the
right to increase this charge to not more than 10% under both new
and previously-issued Certificates.
(2) Underlying Securities
The investment adviser or subadviser for each Fund varies and
includes the Company. The investment advisers or subadvisers
provide portfolio management and investment advice for each of
the Funds and perform other administrative functions, subject to
the supervision of the Board of Directors of each Fund. As
compensation for its services, the investment advisers and/or
subadvisers will receive investment advisory compensation, which
will vary, and will be reflected as an annual percentage rate of
the aggregate average daily net assets of each fund.
(3) Distributions
An administrative fee of $25, or 2% of the surrender amount, if
less, may be charged on a Partial Surrender. This charge is not
currently being assessed.
(4) Cumulated or Reinvested Distributions or Income
All income and other distributions earned by each Fund are
reinvested, without charge, at net asset value in shares of the
Fund.
(5) Redeemed or Liquidated Assets
See Item 13(a)(3).
19
<PAGE>
(b) FOR EACH INSTALLMENT PAYMENT TYPE OF PERIODIC PAYMENT PLAN CERTIFICATE
OF THE TRUST, FURNISH INFORMATION WITH RESPECT TO SALES LOAD AND OTHER
DEDUCTIONS FROM PRINCIPAL PAYMENTS.
See Item 13(a)(1).
(c) FOR EACH TYPE OF SECURITY ISSUED BY THE TRUST, STATE THE AMOUNT OF
TOTAL DEDUCTIONS AS A PERCENTAGE OF THE NET AMOUNT INVESTED FOR EACH
TYPE OF SECURITY ISSUED BY THE TRUST. STATE EACH DIFFERENT SALES
CHARGE AVAILABLE AS A PERCENTAGE OF THE PUBLIC OFFERING PRICE AND AS A
PERCENTAGE OF THE NET AMOUNT INVESTED. LIST ANY SPECIAL PURCHASE PLANS
OR METHODS ESTABLISHED BY RULE OR EXEMPTION ORDER THAT REFLECTS
RESCHEDULED VARIATIONS IN, OR ELIMINATION OF, THE SALES LOAD AND
IDENTIFY EACH CLASS OF INDIVIDUALS OR TRANSACTIONS TO WHICH SUCH PLANS
APPLY.
See Item 13(a)(1).
(d) EXPLAIN FULLY THE REASONS FOR ANY DIFFERENCE IN THE PRICE AT WHICH
SECURITIES ARE OFFERED GENERALLY TO THE PUBLIC, AND THE PRICE AT WHICH
SECURITIES ARE OFFERED FOR ANY CLASS OF TRANSACTIONS TO ANY CLASS OR
GROUP OF INDIVIDUALS, INCLUDING OFFICERS, DIRECTORS OR EMPLOYEES OF
THE DEPOSITOR, TRUSTEE, CUSTODIAN OR PRINCIPAL UNDERWRITER.
Not applicable.
(e) FURNISH A BRIEF DESCRIPTION OF ANY LOADS, FEES, EXPENSES OR CHARGES
NOT COVERED IN ITEM 13(a) WHICH MAY BE PAID BY SECURITY HOLDERS IN
CONNECTION WITH THE TRUST OR ITS SECURITIES.
Mortality and Expense Risk Charge. The Company deducts a mortality and
expense risk charge from the Separate Account Value. This charge
compensates the Company for the aggregate mortality and expense risk
assumed in connection with the Certificates. The mortality risk
assumed by the Company is that insureds, as a group, may live for a
shorter period of time than estimated. If so, the Company could end up
paying more in Death Benefits than it collects with Cost of Insurance
charges. The expense risk assumed is that the expenses incurred (a)
issuing and administering the Certificates and (b) operating the
Separate Account will be greater than the administrative charges that
the Company can impose for such expenses.
The mortality and expense risk charge currently equals an annual rate
of 0.85% of the average daily net assets of the Separate Account
during the first 10
20
<PAGE>
Certificate years, and 0% thereafter. This charge is deducted daily.
The Company reserves the right to increase or decrease the rate or
period of the mortality and expense risk charge, if it believes that
circumstances have changed so that current charges are no longer
appropriate. However, the Company guarantees that the annual rate of
this charge will never exceed (a) 1.25% during the first 10
Certificate years or (b) 0.40% thereafter.
Transfer and Partial Surrender Charges. The Company reserves the right
to charge an administrative fee of up to $25 for each transfer between
investment options in excess of 12 transfers per year. For Partial
Surrenders, the Company reserves the right to charge an administrative
fee of $25 or, if less, 2% of the surrender amount. The Company is not
currently assessing this charge.
Taxes. The Separate Account currently is not subject to any taxes.
However, if taxes are assessed against the Separate Account, the
Company reserves the right to assess the amount of the taxes against
the Separate Account Value.
Monthly Deduction. The Monthly Deduction includes the Cost of
Insurance, a Certificate fee, and any charges for supplemental
benefits. The Company deducts the first Monthly Deduction on the Issue
Date, even if the Issue Date is earlier than the date the application
form for a Certificate is signed. Monthly Deductions then occur on
each Monthly Deduction Day thereafter. If the Certificate's issuance
is delayed due to underwriting requirements, the Company will not
assess charges until the Company completes the underwriting and
approves the application for the Certificate.
(A) Certificate Fee. The Monthly Deduction includes a Certificate fee
of $14 a month during the first Certificate Year, or the first
year of an increase in Specified Amount. This fee starts on the
Issue Date of the Certificate and the date of the increase. The
Certificate fee then drops to $6 a month. The Company uses the
proceeds of this charge for administrative expenses, such as risk
underwriting and Certificate issuance, premium billing and
collection, Certificate value calculation, confirmation of
Certificate transactions, and periodic reports to
Certificateholders. The Company reserves the right to raise this
charge, both for new and previously-issued Certificates. The
maximum charge is $19 a month during the first Certificate Year
(whether from the Issue Date of the Certificate or after an
increase in Specified Amount) and $11 a month thereafter. The
Company does not expect the monthly Certificate fee to exceed our
actual annual administrative costs over time.
(B) Cost of Insurance. The Cost of Insurance charge is based on (a)
the cost of our base insurance rates under a Certificate and (b)
the Amount at Risk, on the date of the deduction. (Base insurance
rates do not include any supplemental benefits elected through a
Certificate rider.)
The Cost of Insurance charge is equal to (a) the Certificate's
Amount at Risk on the Monthly Deduction Day, (b) multiplied by a
monthly Cost of
21
<PAGE>
Insurance rate. The Company's Amount at Risk at any time is
approximately the difference between the Certificate's
then-applicable Death Benefit and its Total Account Value. An
increase in the Total Account Value or a decrease in the Death
Benefit will result in a smaller Cost of Insurance charge. A
decrease in the Total Account Value or an increase in the Death
Benefit will result in a larger Cost of Insurance charge.
The Cost of Insurance rate generally increases over the life of a
Certificate. The rate is based on the insured's Attained Age and
risk class. The Cost of Insurance rates for "standard risk"
insureds will not exceed those based on a 50% male/50% female
blend under the 1980 Commissioners Standard Ordinary Mortality
Table, smoker or non-smoker (1980 Tables). "Substandard risk"
insureds have monthly deductions based on Cost of Insurance rates
that may be higher than those in the 1980 Tables. The Company may
adjust the monthly Cost of Insurance rates from time to time, but
they will never exceed the applicable guaranteed maximum rates.
The Company bases Cost of Insurance rates for an increase in
Specified Amount on the insured's risk class at the time of the
increase. The insured must provide evidence of insurability.
(C) Charges for Supplemental Benefits. The Monthly Deduction includes
a supplemental benefits charge if supplemental benefits are
elected. (Supplemental benefits may be elected by adding riders
to the Certificate.) The amount of this charge varies depending
on the riders selected. The charge is described in each
applicable Certificate rider.
(f) STATE WHETHER THE DEPOSITOR, PRINCIPAL UNDERWRITER, CUSTODIAN OR
TRUSTEE, OR ANY AFFILIATED PERSON OF THE FOREGOING MAY RECEIVE PROFITS
OR OTHER BENEFITS NOT INCLUDED IN ANSWER TO ITEM 13(a) OR 13(d)
THROUGH THE SALE OR PURCHASE OF THE TRUST'S SECURITIES OR INTERESTS IN
SUCH SECURITIES, OR UNDERLYING SECURITIES OR INTERESTS IN UNDERLYING
SECURITIES, AND DESCRIBE FULLY THE NATURE AND EXTENT OF SUCH PROFITS
OR BENEFITS.
Neither the Company nor any affiliated person of the Company may
receive any profit or any other benefit from premium payments
under the Certificates or the investments held in the Account not
included in answer to Item 13(a) or (d) through the sale or
purchase of the Certificates or shares of the Funds, except that
(1) the Company may receive a profit to the extent that the cost
of insurance built into a Certificate exceeds the actual cost of
insurance needed to pay benefits, (2) favorable mortality or
expense experience may cause the insurance provided under a
Certificate to be profitable to the Company, (3) the Company will
compensate certain other persons, including Company agents, for
services rendered in connection with the distribution of a
Policy, as described in Item 38, but such payments will be made
from the Company's General Account and (4)
22
<PAGE>
the Company may receive an advisory fee in connection with some
Funds, as described in Item 13(a).
(g) STATE THE PERCENTAGE THAT THE AGGREGATE ANNUAL CHARGES AND
DEDUCTIONS FOR MAINTENANCE AND OTHER EXPENSES OF THE TRUST BEAR
TO THE DIVIDEND AND INTEREST INCOME FROM THE TRUST PROPERTY
DURING THE PERIOD COVERED BY THE FINANCIAL STATEMENTS FILED
HEREWITH.
Not applicable.
INFORMATION CONCERNING THE OPERATIONS OF THE TRUST
14. DESCRIBE THE PROCEDURE WITH RESPECT TO THE APPLICATIONS (IF ANY) AND
THE ISSUANCE AND AUTHENTICATION OF THE TRUST'S SECURITIES, AND STATE
THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT
PERTAINING THERETO.
Individuals wishing to purchase a Certificate must complete an
application. A Certificate may only be issued to insureds that supply
satisfactory evidence of insurability to the Company. Acceptance is
subject to the Company's underwriting rules and the Company reserves
the right to reject any application for any reason. Policies will be
issued in accordance with the state insurance laws. Although such laws
prohibit discrimination among applicants, they generally allow certain
distinctions based upon sex, age, health and occupation.
Interests in the sub-accounts of the Account may also be acquired by
transfers, as described in Item 10(d).
15. DESCRIBE THE PROCEDURE WITH RESPECT TO THE RECEIPT OF PAYMENTS FROM
PURCHASERS OF THE TRUST'S SECURITIES AND THE HANDLING OF THE PROCEEDS
THEREOF, AND STATE THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR
AGREEMENT PERTAINING THERETO.
When a person applies for a Certificate, that person will be asked to
select one or more of the applicable funding vehicles to which
Premiums are to be allocated, and the applicable percentage (a whole
number) to be allocated to each such funding vehicle. That allocation
can be changed at any time with respect to future premium payments
upon receipt of written notice by us, 12 times during any Policy Year,
at no charge. Any change after the twelfth may be subject to the
imposition of a $25 charge to reimburse us for costs associated with
allocation changes. Premiums will be allocated as the
Certificateholder has directed upon receipt.
16. DESCRIBE THE PROCEDURE WITH RESPECT TO THE ACQUISITION OF UNDERLYING
SECURITIES AND THE DISPOSITION THEREOF, AND STATE THE SUBSTANCE OF THE
PROVISIONS OF ANY INDENTURE OR AGREEMENT PERTAINING THERETO.
23
<PAGE>
On each valuation date of each Fund, Account C purchases or redeems
shares in each Fund based on a netting of all transactions for that
day, including the amount of net premiums invested in Account C,
transfers, policy loans and loan repayments, surrender payments,
charges, and payment of benefits to be effected on that day.
17. (a) DESCRIBE THE PROCEDURE WITH RESPECT TO WITHDRAWAL OR REDEMPTION
BY SECURITY HOLDERS.
The procedures with respect to surrenders or redemption by
security holders are described in response to Items 10(c), (d),
(e) and (i).
(b) FURNISH THE NAMES OF ANY PERSONS WHO MAY REDEEM OR REPURCHASE, OR
ARE REQUIRED TO REDEEM OR REPURCHASE, THE TRUST'S SECURITIES OR
UNDERLYING SECURITIES FROM SECURITY HOLDERS, AND THE SUBSTANCE OF
THE PROVISIONS OF ANY INDENTURE OR AGREEMENT PERTAINING THERETO.
The Company is required to process all surrender requests as
described in Item 10(c). Each Fund will redeem its shares upon
the Company's request in accordance with the 1940 Act. Redeemed
shares are retired although they may later be reissued.
(c) INDICATE WHETHER REPURCHASED OR REDEEMED SECURITIES WILL BE
CANCELLED OR MAY BE RESOLD.
A Policy or Certificate, once totally surrendered, may not be
resold.
18. (a) DESCRIBE THE PROCEDURE WITH RESPECT TO THE RECEIPT, CUSTODY AND
DISPOSITION OF THE INCOME AND OTHER DISTRIBUTABLE FUNDS OF THE
TRUST AND STATE THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE
OR AGREEMENT PERTAINING THERETO.
All dividend and capital gains distributions (if any) of the
Funds will be automatically reinvested in additional Funds shares
at their net asset value. Pursuant to the Certificate, the
Company will make distributions from Account C in connection with
death benefits, policy loans, and cash value surrenders.
Applicable procedures for such distributions are described in the
answers to Items 10(c), 10(i)(6), and 21.
(b) DESCRIBE THE PROCEDURE, IF ANY, WITH RESPECT TO THE REINVESTMENT
OF DISTRIBUTIONS TO SECURITY HOLDERS AND STATE THE SUBSTANCE OF
THE PROVISIONS OF ANY INDENTURE OR AGREEMENT PERTAINING THERETO.
Not applicable.
(c) IF ANY RESERVES OR SPECIAL FUNDS ARE CREATED OUT OF INCOME OR
PRINCIPAL, STATE WITH RESPECT TO EACH SUCH
24
<PAGE>
RESERVE OR FUND THE PURPOSE AND ULTIMATE DISPOSITION THEREOF, AND
DESCRIBE THE MANNER OF HANDLING SAME.
Premium placed in Account C constitutes reserves for benefits
under the Certificates.
(d) SUBMIT A SCHEDULE SHOWING THE PERIODIC AND SPECIAL DISTRIBUTIONS
WHICH HAVE BEEN MADE TO SECURITY HOLDERS DURING THE THREE YEARS
COVERED BY THE FINANCIAL STATEMENTS FILED HEREWITH. STATE FOR
EACH SUCH DISTRIBUTION THE AGGREGATE AMOUNT AND AMOUNT PER SHARE.
IF DISTRIBUTIONS FROM SOURCES OTHER THAN CURRENT INCOME HAVE BEEN
MADE, IDENTIFY EACH SUCH OTHER SOURCE AND INDICATE WHETHER SUCH
DISTRIBUTION REPRESENTS THE RETURN OF PRINCIPAL PAYMENTS TO
SECURITY HOLDERS. IF PAYMENTS OTHER THAN CASH WERE MADE, DESCRIBE
THE NATURE THEREOF, THE ACCOUNT CHARGED AND THE BASIS OF
DETERMINING THE AMOUNT OF SUCH CHARGE.
No distributions have been made by Account C during this time
period.
19. DESCRIBE THE PROCEDURE WITH RESPECT TO THE KEEPING OF RECORDS AND
ACCOUNTS OF THE TRUST, THE MAKING OF REPORTS AND THE FURNISHING OF
INFORMATION TO SECURITY HOLDERS, AND THE SUBSTANCE OF THE PROVISIONS
OF ANY INDENTURE OR AGREEMENT PERTAINING THERETO.
The Company will have primary responsibility for all administration of
the Policies and Certificates and Account C. The administrative
services provided include preparation of the Policies and
Certificates, maintenance of Certificateholders' records and all
accounting, valuation, regulatory and reporting services.
The Company will send such reports of Account C as are presently
required by the 1940 Act and regulations promulgated thereunder. The
Company will also mail to Policyowners and Certificateholders, at the
last known address of record at the Company's principal office, any
reports required by state law. Each person having a voting interest
will receive proxy material, reports, and other materials relating to
the Funds.
20. STATE THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT
CONCERNING THE TRUST WITH RESPECT TO THE FOLLOWING:
(a) AMENDMENTS TO SUCH INDENTURE OR AGREEMENT.
Not applicable.
(b) THE EXTENSION OR TERMINATION OF SUCH INDENTURE OR AGREEMENT.
Not applicable.
25
<PAGE>
(c) THE REMOVAL OR RESIGNATION OF THE TRUSTEE OR CUSTODIAN, OR THE
FAILURE OF THE TRUSTEE OR CUSTODIAN TO PERFORM ITS DUTIES,
OBLIGATIONS AND FUNCTIONS.
Not applicable.
(d) THE APPOINTMENT OF A SUCCESSOR TRUSTEE AND THE PROCEDURE IF A
SUCCESSOR TRUSTEE IS NOT APPOINTED.
Not applicable.
(e) THE REMOVAL OR RESIGNATION OF THE DEPOSITOR, OR THE FAILURE OF
THE DEPOSITOR TO PERFORM ITS DUTIES, OBLIGATIONS AND FUNCTIONS.
The Company acts as depositor. There are no provisions relating
to the removal or resignation of the depositor or the failure of
the depositor to perform its duties, obligations and functions.
(f) THE APPOINTMENT OF A SUCCESSOR DEPOSITOR AND THE PROCEDURE IF A
SUCCESSOR DEPOSITOR IS NOT APPOINTED.
There are no provisions relating to the appointment of a
successor depositor and the procedure if a successor depositor is
not appointed.
21. (a) STATE THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR
AGREEMENT WITH RESPECT TO LOANS TO SECURITY HOLDERS.
The Company grants loans at any time (a) after the expiration of
the Right of Policy Examination and (b) before the Maturity Date.
The amount of the loan may not be more than the Loan Value. The
Loan Value is 90% of the Total Account Value, unless state law
otherwise requires. The Company transfers the amount of the loan
out of the Fixed Account and any Variable Options on a pro-rata
basis, and holds the amount of the loan as part of the Loan
Account Value. The Company effects loans and loan repayments as
of the end of the Valuation Period in which a written request for
the loan or the repayment is received.
A loan may be repaid in full or in part at any time prior to the
Maturity Date, as long as the Certificate is in force and the
insured is alive. The amount necessary to repay all loans in full
is the Loan Account Value plus any accrued interest. Unless
specifically instructed otherwise, additional premiums received
are considered loan repayments. Subject to state regulatory
approval, unless specifically instructed otherwise, the Company
will allocate loan repayments received to the Fixed Account and
Account C according to the premium allocation currently in
effect. The full Surrender Value under a Certificate equals (a)
the Total Account Value on the date of surrender, (b) less the
Loan Account Value plus any accrued interest. If the loan is not
repaid prior to the Maturity Date, the amount payable at the
Maturity Date equals (a) the Total
26
<PAGE>
Account Value on the Maturity Date, (b) less the Loan Account
Value on the Maturity Date plus any accrued interest.
Subject to state regulatory approval, interest earned on the Loan
Account value will be credited to the Fixed Account Value and the
Separate Account Value according to the premium payment
allocation currently in effect. The amount of interest earned on
the Loan Account Value and the amount of interest charged on a
loan depends on whether the loan is considered preferred.
Beginning in the 11th Certificate Year and on each Certificate
Anniversary thereafter, that portion of the Loan Value
attributable to the Separate Account Value will be considered
preferred (Preferred Loans). All other loans will be considered
non-preferred (non-Preferred Loans).
Preferred Loans earn interest at a rate of 4.0% and are charged
interest at a rate of 4.0%. In other words, the interest rate
credited equals the interest rate charged. Non-Preferred Loans
earn interest at a rate of no less than 6.0% and are currently
charged interest at a rate of 8%. Interest may be credited in
excess of these rates, in our sole discretion.
Loan interest is due and payable on (a) each Policy Anniversary,
(b) the date the Policy ends or (c) upon full repayment of the
Loan Account Value. The Company adds any interest not paid when
due to the Loan Account Value on the Policy Anniversary. Any
amount of unpaid interest bears interest on the same terms.
(b) FURNISH A BRIEF DESCRIPTION OF ANY PROCEDURE OR ARRANGEMENT BY
WHICH LOANS ARE MADE AVAILABLE TO SECURITY HOLDERS BY THE
DEPOSITOR, PRINCIPAL UNDERWRITER, TRUSTEE OR CUSTODIAN, OR ANY
AFFILIATED PERSON OF THE FOREGOING.
See Item 21(a).
(1) THE NAME OF EACH PERSON WHO MAKES SUCH AGREEMENTS OR
ARRANGEMENTS WITH SECURITY HOLDERS.
The Certificateholder may apply for and receive a Policy
loan from the Company.
(2) THE RATE OF INTEREST PAYABLE ON SUCH LOANS.
See Item 21(a).
(3) THE PERIOD FOR WHICH LOANS MAY BE MADE.
After the expiration of the Right of Policy Examination and
before the Maturity Date.
27
<PAGE>
(4) COSTS OR CHARGES FOR DEFAULT IN REPAYMENT AT MATURITY.
In the case of an outstanding loan, the Maturity Value would
equal the Total Account Value on the Date of Maturity less
the Loan Account Value and less any unpaid accrued interest.
(5) OTHER MATERIAL PROVISIONS OF THE AGREEMENT OR ARRANGEMENT.
See Item 21(a).
(c) IF SUCH LOANS ARE MADE, FURNISH THE AGGREGATE AMOUNT OF LOANS
OUTSTANDING AT THE END OF THE LAST FISCAL YEAR, THE AMOUNT OF
INTEREST COLLECTED DURING THE LAST FISCAL YEAR ALLOCATED TO THE
DEPOSITOR, PRINCIPAL UNDERWRITER, TRUSTEE OR CUSTODIAN OR
AFFILIATED PERSON OF THE FOREGOING AND THE AGGREGATE AMOUNT OF
LOANS IN DEFAULT AT THE END OF THE LAST FISCAL YEAR COVERED BY
FINANCIAL STATEMENTS FILED HEREWITH.
Not applicable. As of the date of filing, no loans have been
made.
22. STATE THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT
WITH RESPECT TO LIMITATIONS ON THE LIABILITIES OF THE DEPOSITOR,
TRUSTEE OR CUSTODIAN, OR ANY OTHER PARTY TO SUCH INDENTURE OR
AGREEMENT.
There are no such provisions.
23. DESCRIBE ANY BONDING ARRANGEMENT FOR OFFICERS, DIRECTORS, PARTNERS OR
EMPLOYEES OF THE DEPOSITOR OR PRINCIPAL UNDERWRITER OF THE TRUST,
INCLUDING THE AMOUNT OF COVERAGE AND THE TYPE OF BOND.
A blanket fidelity bond for $60 million covers all of the officers and
employees of the Company.
24. STATE THE SUBSTANCE OF ANY OTHER MATERIAL PROVISIONS OF ANY INDENTURE
OR AGREEMENT CONCERNING THE TRUST OR ITS SECURITIES AND A DESCRIPTION
OF ANY OTHER MATERIAL FUNCTIONS OR DUTIES OF THE DEPOSITOR, TRUSTEE OR
CUSTODIAN NOT STATED IN ITEM 10 OR ITEMS 14 TO 23 INCLUSIVE.
The Company cannot contest a Certificate as to the initial Specified
Amount after it has been in force during the lifetime of the insured
for two years from the Certificate date. A new two year contestability
period will apply to each increase in Specified Amount beginning on
the effective date of each such increase and will apply to statements
made in the application for the increase. If the Certificate is
reinstated, a new two year
28
<PAGE>
contestability period (apart from any remaining contestability period)
will apply from the date of the application for reinstatement and will
apply only to statements made in the application for reinstatement.
In most states, only a limited benefit is paid if the insured dies by
suicide within 2 years from the Issue Date of a Certificate.
Generally, this benefit consists of a refund of premiums paid, subject
to any positive or negative adjustment to reflect investment
performance in the Separate Account. In most states, if the insured
dies by suicide within 2 years from the Issue Date of any increase in
coverage, as to that increase, only the amount of prior Monthly
Deductions that were attributable to that increase are paid.
III. ORGANIZATION, PERSONNEL AND AFFILIATED PERSONS OF DEPOSITOR
ORGANIZATION AND OPERATIONS OF DEPOSITOR
25. STATE THE FORM OF ORGANIZATION OF THE DEPOSITOR OF THE TRUST, THE NAME
OF THE STATE OR OTHER SOVEREIGN POWER UNDER THE LAWS OF WHICH THE
DEPOSITOR WAS ORGANIZED AND THE DATE OF ORGANIZATION.
The Company is a stock life insurance company organized under the insurance
laws of the State of Connecticut in 1976. Through a merger, it succeeded to
the business of Aetna Variable Annuity Life Insurance Company (formerly
Participating Annuity Life Insurance Company, an Arkansas life insurance
company organized in 1954).
26. (a) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO ALL FEES
RECEIVED BY THE DEPOSITOR OF THE TRUST IN CONNECTION WITH THE
EXERCISE OF ANY FUNCTIONS OR DUTIES CONCERNING SECURITIES OF THE
TRUST DURING THE PERIOD COVERED BY THE FINANCIAL STATEMENTS FILED
HEREWITH:
Not applicable. As of the date of this filing, Account C has not
commenced operations.
(b) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO ANY FEES OR ANY
PARTICIPATION IN FEES RECEIVED BY THE DEPOSITOR FROM ANY
UNDERLYING INVESTMENT COMPANY OR ANY AFFILIATED PERSON OR
INVESTMENT ADVISER OF SUCH COMPANY:
(1) THE NATURE OF SUCH FEE OR PARTICIPATION.
(2) THE NAME OF THE PERSON MAKING PAYMENT.
(3) THE NATURE OF THE SERVICES RENDERED IN CONSIDERATION FOR
SUCH FEE OR PARTICIPATION.
29
<PAGE>
(4) THE AGGREGATE AMOUNT RECEIVED DURING THE LAST FISCAL YEAR
COVERED BY THE FINANCIAL STATEMENTS FILED HEREWITH.
Not applicable. As of the date of this filing, Account C has not
commenced operations.
27. DESCRIBE THE GENERAL CHARACTER OF THE BUSINESS ENGAGED IN BY THE
DEPOSITOR INCLUDING A STATEMENT AS TO ANY BUSINESS OTHER THAN THAT OF
DEPOSITOR OF THE TRUST. IF THE DEPOSITOR ACTS OR HAS ACTED IN ANY
CAPACITY WITH RESPECT TO ANY INVESTMENT COMPANY OR COMPANIES OTHER
THAN THE TRUST, STATE THE NAME OR NAMES OF SUCH COMPANY OR COMPANIES,
THEIR RELATIONSHIP, IF ANY, TO THE TRUST, AND THE NATURE OF THE
DEPOSITOR'S ACTIVITIES THEREWITH. IF THE DEPOSITOR HAS CEASED TO ACT
IN SUCH NAMED CAPACITY, STATE THE DATE OF AND CIRCUMSTANCES
SURROUNDING SUCH CESSATION.
The Company is principally engaged in the business of issuing life
insurance policies and variable annuity contracts. In addition, the
Company serves as the principal underwriter for the securities offered
hereunder and also acts as the principal underwriter for Variable Life
Account B and Variable Annuity Accounts B, C and G (separate accounts
of the Company registered as unit investment trusts), and Variable
Annuity Account I (a separate account of Aetna Insurance Company of
America registered as a unit investment trust) and Aetna Variable
Fund, Aetna Variable Encore Fund d/b/a Aetna Money Market VP, Aetna
Variable Portfolios, Inc., Aetna Income Shares d/b/a Aetna Bond VP,
Aetna GET Fund, Aetna Balanced VP, Inc., Aetna Generation Portfolios,
Inc., and Portfolio Partners, Inc. Additionally, the Company is
registered as an investment adviser under the Investment Advisers Act
of 1940 and, as such, is the investment adviser for Portfolio
Partners, Inc. The Company is also the depositor of Variable Life
Account B and Variable Annuity Accounts B, C and G.
OFFICIALS AND AFFILIATED PERSONS OF DEPOSITOR
28. (a) FURNISH AS AT LATEST PRACTICABLE DATE THE FOLLOWING INFORMATION
WITH RESPECT TO THE DEPOSITOR OF THE TRUST, WITH RESPECT TO EACH
OFFICER, DIRECTOR, OR PARTNER OF THE DEPOSITOR, AND WITH RESPECT
TO EACH NATURAL PERSON DIRECTLY OR INDIRECTLY OWNING, CONTROLLING
OR HOLDING WITH POWER TO VOTE 5% OR MORE OF THE OUTSTANDING
VOTING SECURITIES OF THE DEPOSITOR.
(i) NAME AND PRINCIPAL BUSINESS ADDRESS.
(ii) NATURE OF RELATIONSHIP OR AFFILIATION WITH DEPOSITOR OF THE
TRUST;
(iii)OWNERSHIP OF ALL SECURITIES OF THE DEPOSITOR;
(iv) OWNERSHIP OF ALL SECURITIES OF THE TRUST;
(v) OTHER COMPANIES OF WHICH EACH PERSON NAMED ABOVE IS
PRESENTLY AN OFFICER, DIRECTOR OR PARTNER.
See the table below. Also, see Item 29.
30
<PAGE>
(b) FURNISH A BRIEF STATEMENT OF THE BUSINESS EXPERIENCE DURING THE
LAST FIVE YEARS OF EACH OFFICER, DIRECTOR OR PARTNER OF THE
DEPOSITOR.
<TABLE>
<CAPTION>
Name and Address* Position with Company Business Experience During Past 5 Years
- ----------------- --------------------- ---------------------------------------
<S> <C> <C>
Thomas J. McInerney Director, President and President (since October 1998) Aetna Investment
151 Farmington Ave. Chairman, Executive Committee Adviser Holding Company, Inc., Aetna Retail
Hartford, CT 06156 (Principal Executive Officer) Holding Company, Inc., Aetna Services Holding
Company, Inc.; President (since September 1997)
Aetna Life Insurance and Annuity Company; President
(since September 1997) Aetna Insurance Company of
America; President (since September 1997) Aetna
Retirement Holdings, Inc.; President (since August
1997) Aetna Retirement Services, Inc.; Executive
Vice President (since August 1997) Aetna Inc.,
Aetna Services, Inc. and Aetna Life Insurance
Company; Vice President, Strategy (March 1997 -
August 1997) Aetna Inc., Aetna Services, Inc. and
Aetna Life Insurance Company; Vice President,
Sales (December 1996 - March 1997) and Vice
President, National Accounts (April 1996 March
1997) Aetna US Healthcare Inc.; Vice President,
Strategy, Finance, & Administration (July 1995 -
April 1996) Aetna Inc.; Vice President, Guaranteed
Products (November 1992 - July 1995) Aetna Life
Insurance Company.
Shaun P. Mathews Director and Senior Vice President (January 1998 - February 1999) Aetna
151 Farmington Ave. President Investment Services, Inc.; Senior Vice President
Hartford, CT 06156 (since June 1999) Aetna Retirement Holdings, Inc.,;
Senior Vice President (since June 1999) Aetna
Retirement Holdings, Inc.; Senior Vice President
(since October 1998) Aetna Investment Adviser
Holding Company, Inc., Aetna Retail Holding Company,
Inc., Aetna Services Holding Company, Inc.; Senior
Vice President, Product and Brand Management (since
September 1998), Senior Vice President, Product
Management (September 1997 - September 1998), Vice
President, Products Group (February 1996 - September
1997), Senior Vice President, Strategic Markets and
Products (February 1993 - February 1996) Aetna Life
Insurance and Annuity Company.
</TABLE>
31
<PAGE>
<TABLE>
<CAPTION>
Name and Address* Position with Company Business Experience During Past 5 Years
- ----------------- --------------------- ---------------------------------------
<S> <C> <C>
Catherine Hale Smith Director, Chief Financial Senior Vice President (since October 1998) Aetna
151 Farmington Ave. Officer and Senior Vice Investment Adviser Holding Company, Inc., Aetna
Hartford, CT 06156 President Retail Holding Company, Inc., Aetna Services
Holding Company, Inc.; Chief Financial Officer and
Senior Vice President, Business Strategy and Finance
(since February 1998) Aetna Life Insurance and
Annuity Company; Director and Senior Vice President
(since March 1999), Chief Financial Officer (since
February 1998) Aetna Retirement Services, Inc.;
Vice President, Strategy, Finance and Administration,
Financial Relations (September 1996 - February 1998),
Aetna Inc.; Chief of Staff, Health/Group Life,
Strategy and Communication (April 1993 - September
1996) Aetna Life Insurance Company.
Kirk P. Wickman Senior Vice President, Senior Vice President, General Counsel and
151 Farmington Ave. General Counsel and Corporate Corporate Secretary (since June 1999) Aetna
Hartford, CT 06156 Secretary Retirement Holdings, Inc., Aetna Investment
Adviser Holding Company, Inc., Aetna Retail Holding
Company, Inc., Aetna Services Holding Company, Inc.;
Senior Vice President, General Counsel and Corporate
Secretary (since April 1999) Aetna Retirement
Services, Inc.; Vice President, General Counsel and
Corporate Secretary (October 1998 - June 1999) Aetna
Investment Advisor Holding Company, Inc., Aetna
Retail Holding Company, Inc., Aetna Services Holding
Company, Inc.; Vice President, General Counsel and
Assistant Secretary (April 1997 - April 1999) Aetna
Retirement Services, Inc.; Vice President, General
Counsel and Corporate Secretary (December 1996 -
June 1999) Aetna Retirement Holdings, Inc.; Senior
Vice President (since March 1999), General Counsel
and Corporate Secretary (since November 1996), Vice
President (November 1996 - March 1999) Aetna Life
Insurance and Annuity Company; Vice President and
Counsel (June 1992 - November 1996) Aetna Life
Insurance Company.
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
Name and Address* Position with Company Business Experience During Past 5 Years
- ----------------- --------------------- ---------------------------------------
<S> <C> <C>
Deborah Koltenuk Vice President, Corporate Vice President, Corporate Controller, and
151 Farmington Ave. Controller, and Assistant Assistant Treasurer (since July 1999) Aetna
Hartford, CT 06156 Treasurer Retirement Services, Inc.; Vice President,
Corporate Controller, and Assistant Treasurer (since
June 1999) Aetna Investment Adviser Holding Company,
Inc., Aetna Retail Holding Company, Inc., Aetna
Services Holding Company, Inc., Aetna Life Insurance
and Annuity Company, Aetna Insurance Company of
America; Vice President, Corporate Controller and
Assistant Treasurer, (April 1999 - July 1999) Aetna
Retirement Services, Inc.; Vice President, Treasurer
and Corporate Controller (October 1998 - June 1999)
Aetna Investment Adviser Holding Company, Inc., Aetna
Retail Holding Company, Inc., Aetna Services Holding
Company, Inc.; Vice President and Controller (April
1997 - April 1999) Aetna Retirement Services, Inc.;
Vice President, Treasurer and Corporate Controller
(July 1996 - June 1999) Aetna Life Insurance and
Annuity Company; Vice President, Treasurer and
Corporate Controller (September 1996 - June 1999)
Aetna Retirement Holdings, Inc.; Director (January
1997 - March 1998), Vice President and Treasurer,
Corporate Controller (April 1997 - June 1999) Aetna
Insurance Company of America; Vice President,
Investment Financial Reporting and Securities
Operations (April 1996 - July 1996) Aetna Life
Insurance Company; Vice President, Investment
Planning and Financial Reporting (October 1994 -
April 1996) The Aetna Casualty and Surety Company
and The Standard Fire and Insurance Company;
Assistant Vice President, Finance and Administration
(June 1994 - October 1994) Aetna Life Insurance
Company.
</TABLE>
33
<PAGE>
<TABLE>
<CAPTION>
Name and Address* Position with Company Business Experience During Past 5 Years
- ----------------- --------------------- ---------------------------------------
<S> <C> <C>
Therese A. Squillacote Vice President and Chief Vice President and Chief Compliance Officer (since
151 Farmington Ave. Compliance Officer February 1999) Aetna Insurance Company of America;
Hartford, CT 06156 Vice President and Chief Compliance Officer (since
December 1998) Aetna Life Insurance and Annuity
Company; Vice President and Chief Compliance Officer
(since December 1998) Aetna Investment Services, Inc.;
Chief Compliance Officer (since December 1998)
Systematized Benefits Administrators, Inc.; Vice
President, Compliance (since March 1998) Aetna
Financial Services, Inc.; Compliance Manager (May
1997 to December 1998) Aetna Life Insurance and
Annuity Company; Registered Principal (since July
1997) Aetna Investment Services, Inc.; Director,
Compliance (December 1995 to May 1997) Connecticut
General Life Insurance Company; Registered Principal
(December 1995 to May 1997) CIGNA Financial Advisors,
Inc.; Chief Compliance Officer (September 1989 to
December 1995) G.R. Phelps & Co., Inc.; Chief
Compliance Officer (December 1992 to December 1995)
Connecticut Mutual Financial Services, Inc.
</TABLE>
COMPANIES OWNING SECURITIES OF DEPOSITOR
29. FURNISH AS AT LATEST PRACTICABLE DATE THE FOLLOWING INFORMATION WITH
RESPECT TO EACH COMPANY WHICH DIRECTLY OR INDIRECTLY OWNS, CONTROLS OR
HOLDS WITH POWER TO VOTE 5% OR MORE OF THE OUTSTANDING VOTING
SECURITIES OF THE DEPOSITOR: (A) NAME AND PRINCIPAL BUSINESS ADDRESS;
(B) NATURE OF BUSINESS, (C) OWNERSHIP OF ALL SECURITIES OF THE
DEPOSITOR;
The Company is an indirect wholly-owned subsidiary of Aetna Inc., a
Connecticut publicly traded healthcare and financial services
corporation. Aetna Inc.'s business address is 151 Farmington Avenue,
Hartford, CT 06156.
CONTROLLING PERSONS
30. FURNISH AS AT LATEST PRACTICABLE DATE THE FOLLOWING INFORMATION WITH
RESPECT TO ANY PERSON OTHER THAN THOSE COVERED BY ITEMS 28, 29, AND 42
WHO DIRECTLY OR INDIRECTLY CONTROLS THE DEPOSITOR.
None.
34
<PAGE>
COMPENSATION OF OFFICERS OF DEPOSITOR
31. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE REMUNERATION FOR
SERVICES PAID BY THE DEPOSITOR DURING THE LAST FISCAL YEAR COVERED BY
FINANCIAL STATEMENTS FILED HEREWITH;
(a) DIRECTLY TO EACH OF THE OFFICERS OR PARTNERS OF THE DEPOSITOR
DIRECTLY RECEIVING THE THREE HIGHEST AMOUNTS OF REMUNERATION:
Not applicable. As of the date of this filing, Account C has not
commenced operations.
(b) DIRECTLY TO ALL OFFICERS OR PARTNERS OF THE DEPOSITOR AS A GROUP
EXCLUSIVE OF PERSONS WHOSE REMUNERATION IS INCLUDED UNDER ITEM
31(a), STATING SEPARATELY THE AGGREGATE AMOUNT PAID BY THE
DEPOSITOR ITSELF AND THE AGGREGATE AMOUNT PAID BY ALL THE
SUBSIDIARIES:
Not applicable. As of the date of this filing, Account C has not
commenced operations.
(c) INDIRECTLY OR THROUGH SUBSIDIARIES TO EACH OF THE OFFICERS OR
PARTNERS OF THE DEPOSITOR:
Not applicable. As of the date of this filing, Account C has not
commenced operations.
COMPENSATION OF DIRECTORS
32. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE REMUNERATION FOR
SERVICES, EXCLUSIVE OF REMUNERATION REPORTED UNDER ITEM 31, PAID BY
THE DEPOSITOR DURING THE LAST FISCAL YEAR COVERED BY FINANCIAL
STATEMENTS FILED HEREWITH:
(a) THE AGGREGATE DIRECT REMUNERATION TO DIRECTORS.
Not applicable. As of the date of this filing, Account C has not
commenced operations.
(b) INDIRECTLY OR THROUGH SUBSIDIARIES TO DIRECTORS.
Not applicable. As of the date of this filing, Account C has not
commenced operations.
COMPENSATION TO EMPLOYEES
35
<PAGE>
33. (a) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE AGGREGATE
AMOUNT OF REMUNERATION FOR SERVICES OF ALL EMPLOYEES OF THE
DEPOSITOR (EXCLUSIVE OF PERSONS WHOSE REMUNERATION IS REPORTED IN
ITEMS 31 AND 32) WHO RECEIVED REMUNERATION IN EXCESS OF $10,000
DURING THE LAST FISCAL YEAR COVERED BY FINANCIAL STATEMENTS FILED
HEREWITH FROM THE DEPOSITOR AND ANY OF ITS SUBSIDIARIES.
Not applicable. As of the date of this filing, Account C has not
commenced operations.
(b) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE
REMUNERATION FOR SERVICES PAID DIRECTLY DURING THE LAST FISCAL
YEAR COVERED BY FINANCIAL STATEMENTS FILED HEREWITH TO THE
FOLLOWING CLASSES OF PERSONS (EXCLUSIVE OF THOSE PERSONS COVERED
BY ITEM 33(a)): (1) SALES MANAGERS, BRANCH MANAGERS, DISTRICT
MANAGERS AND OTHER PERSONS SUPERVISING THE SALE OF REGISTRANT'S
SECURITIES; (2) SALESMEN, SALES AGENTS, CANVASSERS AND OTHER
PERSONS MAKING SOLICITATIONS BUT NOT IN SUPERVISORY CAPACITY; (3)
ADMINISTRATIVE AND CLERICAL EMPLOYEES; AND (4) OTHERS (SPECIFY).
IF A PERSON IS EMPLOYED IN MORE THAN ONE CAPACITY, CLASSIFY
ACCORDING TO PREDOMINANT TYPE OF WORK.
Not applicable. As of the date of this filing, Account C has not
commenced operations.
COMPENSATION TO OTHER PERSONS
34. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE AGGREGATE AMOUNT
OF COMPENSATION FOR SERVICES PAID ANY PERSON (EXCLUSIVE OF PERSONS
WHOSE REMUNERATION IS REPORTED IN ITEMS 31, 32 AND 33), WHOSE
AGGREGATE COMPENSATION IN CONNECTION WITH SERVICES RENDERED WITH
RESPECT TO THE TRUST IN ALL CAPACITIES EXCEEDED $10,000 DURING THE
LAST FISCAL YEAR COVERED BY FINANCIAL STATEMENTS FILED HEREWITH FROM
THE DEPOSITOR AND ANY OF ITS SUBSIDIARIES.
Not applicable. As of the date of this filing, Account C has not
commenced operations.
IV. DISTRIBUTION AND REDEMPTION OF SECURITIES
DISTRIBUTION OF SECURITIES
35. FURNISH THE NAMES OF THE STATES IN WHICH SALES OF THE TRUST'S
SECURITIES (a) ARE CURRENTLY BEING MADE, (b) ARE PRESENTLY PROPOSED TO
MADE, AND (c) HAVE BEEN DISCONTINUED, INDICATING BY APPROPRIATE LETTER
THE STATUS WITH RESPECT TO EACH STATE.
36
<PAGE>
No sales are currently being made. It is proposed that Policies and
Certificates will be offered in all jurisdictions where the Company
has authority to sell them. The sale of Policies and Certificates has
not been discontinued in any state.
36. IF SALES OF THE TRUST'S SECURITIES HAVE AT ANY TIME SINCE JANUARY 1,
1936 BEEN SUSPENDED FOR MORE THAN A MONTH, DESCRIBE BRIEFLY THE
REASONS FOR SUCH SUSPENSION.
Not applicable.
37. (a) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO EACH INSTANCE
WHERE SUBSEQUENT TO JANUARY 1, 1937, ANY FEDERAL OR STATE
GOVERNMENTAL OFFICER, AGENCY, OR REGULATORY BODY DENIED AUTHORITY
TO DISTRIBUTE SECURITIES OF THE TRUST, EXCLUDING A DENIAL WHICH
WAS MERELY A PROCEDURAL STEP PRIOR TO ANY DETERMINATION BY SUCH
OFFICER, ETC., AND WHICH DENIAL WAS SUBSEQUENTLY RESCINDED.
(1) NAME OF OFFICER, AGENCY OR BODY.
None.
(2) DATE OF DENIAL.
Not applicable.
(3) BRIEF STATEMENT OF REASONS GIVEN FOR DENIAL.
Not applicable.
(b) FURNISH THE FOLLOWING INFORMATION WITH REGARD TO EACH INSTANCE
WHERE, SUBSEQUENT TO JANUARY 1, 1937, THE AUTHORITY TO DISTRIBUTE
SECURITIES OF THE TRUST HAS BEEN REVOKED BY ANY FEDERAL OR STATE
GOVERNMENTAL OFFICER, AGENCY OR REGULATORY BODY.
(1) NAME OF OFFICER, AGENCY OR BODY.
None.
(2) DATE OF REVOCATION.
Not applicable.
(3) BRIEF STATEMENT OF REASONS GIVEN FOR REVOCATION.
Not applicable.
37
<PAGE>
38. (a) FURNISH A GENERAL DESCRIPTION OF THE METHOD OF DISTRIBUTION OF
SECURITIES OF THE TRUST.
The Company serves as principal underwriter of the Policies, as
defined by the federal securities laws. Aetna Investment
Services, Inc. ("Aetna Services"), an affiliate of the Company,
distributes the Certificates. The Company and Aetna Services are
registered as broker-dealers with the SEC and are members of the
National Association of Securities Dealers, Inc. All persons
offering or selling the Certificates will be (a) registered
representatives of Aetna Services, and (b) licensed as the
Company's insurance agents to sell variable life insurance.
(b) STATE THE SUBSTANCE OF ANY CURRENT SELLING AGREEMENT BETWEEN EACH
PRINCIPAL UNDERWRITER AND THE TRUST OR THE DEPOSITOR, INCLUDING A
STATEMENT AS TO THE INCEPTION AND TERMINATION DATES OF THE
AGREEMENT, ANY RENEWAL AND TERMINATION PROVISIONS, AND MY
ASSIGNMENT PROVISIONS.
Not applicable.
(c) STATE THE SUBSTANCE OF ANY CURRENT AGREEMENTS OR ARRANGEMENTS OF
EACH PRINCIPAL UNDERWRITER WITH DEALERS, AGENTS, SALESMEN, ETC.,
WITH RESPECT TO COMMISSIONS AND OVERRIDING COMMISSIONS,
TERRITORIES, FRANCHISES, QUALIFICATIONS, AND REVOCATIONS. IF THE
TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES,
FURNISH SCHEDULES OF COMMISSIONS AND THE BASES THEREOF. IN LIEU
OF A STATEMENT CONCERNING SCHEDULES OF COMMISSIONS, SUCH
SCHEDULES OF COMMISSIONS MAY BE FILED AS EXHIBIT A(3)(c).
The Company and NYSUT Benefit Trust entered into an agreement
that calls (a) for NYSUT Benefit Trust to exclusively endorse the
Certificate to Members for supplemental group variable universal
life insurance and (b) for NYSUT Benefit Trust to perform
administrative services. The administrative services NYSUT
Benefit Trust performs includes making available NYSUT Benefit
Trust payroll slots to facilitate premium remittances to the
Company. Under the agreement, the Company paid NYSUT Benefit
Trust $70,000 in 1998 and will pay NYSUT Benefit Trust $100,000
in 1999. NYSUT Benefit Trust indicated to the Company that it
intends to use these amounts to enhance benefits to its members.
Salesperson selling Certificates may earn salaries or
commissions. The maximum sales commission paid for Certificate
distribution is 25% of the first year premium up to 12 Basic
Monthly Premiums. For an increase in Specified Amount, the
maximum sales commission is 25% of 12 times the amount of Basic
Monthly Premium attributable to the increase. The maximum sales
commission on all other premiums is 2% through the 15th
Certificate year, or the
38
<PAGE>
15th year following a Specified Amount increase. Some sales
personnel may receive various types of non-cash compensation as
special sales incentives, including trips and educational and/or
business seminars. However, all such compensation will be paid in
accordance with NASD rules.
INFORMATION CONCERNING PRINCIPAL UNDERWRITER
39. (a) STATE THE FORM OF ORGANIZATION OF EACH PRINCIPAL UNDERWRITER OF
SECURITIES OF THE TRUST, THE NAME OF THE STATE OR OTHER SOVEREIGN
POWER UNDER THE LAWS OF WHICH EACH UNDERWRITER WAS ORGANIZED AND
THE DATE OF ORGANIZATION.
The Company acts as the principal underwriter of the securities
of the trust. The Company is a stock life insurance Company
organized under the insurance laws of the State of Connecticut in
1976. Through a merger, it succeeded to the business of Aetna
Variable Annuity Life Insurance Company (formerly Participating
Annuity Life Insurance Company, an Arkansas life insurance
company organized in 1954).
(b) STATE WHETHER ANY PRINCIPAL UNDERWRITER CURRENTLY DISTRIBUTING
SECURITIES OF THE TRUST IS A MEMBER OF THE NATIONAL ASSOCIATION
OF SECURITIES DEALERS, INC. (NASD)
The Company, which acts as the principal underwriter, is a member
of the NASD.
40. (a) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO ALL FEES
RECEIVED BY EACH PRINCIPAL UNDERWRITER OF THE TRUST FROM THE SALE
OF SECURITIES OF THE TRUST AND ANY OTHER FUNCTIONS IN CONNECTION
THEREWITH EXERCISED BY SUCH UNDERWRITER IN SUCH CAPACITY OR
OTHERWISE DURING THE PERIOD COVERED BY THE FINANCIAL STATEMENTS
FILED HEREWITH.
None. As of the date of this filing, Account C has not commenced
operations.
(b) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO ANY FEE OR ANY
PARTICIPATION IN FEES RECEIVED BY EACH PRINCIPAL UNDERWRITER FROM
ANY UNDERLYING INVESTMENT COMPANY OR ANY AFFILIATED PERSON OR
INVESTMENT ADVISER OF SUCH COMPANY:
None. As of the date of this filing, Account C has not commenced
operations.
(1) THE NATURE OF SUCH FEE OR PARTICIPATION.
None.
(2) THE NAME OF THE PERSON MAKING PAYMENT.
None.
39
<PAGE>
(3) THE NATURE OF THE SERVICES RENDERED IN CONSIDERATION FOR
SUCH FEE OR PARTICIPATION.
None.
(4) THE AGGREGATE AMOUNT RECEIVED DURING THE LAST FISCAL YEAR
COVERED BY THE FINANCIAL STATEMENTS FILED HEREWITH.
None.
41. (a) DESCRIBE THE GENERAL CHARACTER OF THE BUSINESS ENGAGED IN BY EACH
PRINCIPAL UNDERWRITER, INCLUDING A STATEMENT AS TO ANY BUSINESS
OTHER THAN THE DISTRIBUTION OF SECURITIES OF THE TRUST. IF A
PRINCIPAL UNDERWRITER ACTS OR HAS ACTED IN ANY CAPACITY WITH
RESPECT TO ANY INVESTMENT COMPANY OR COMPANIES OTHER THAN THE
TRUST, STATE THE NAME OR NAMES OF SUCH COMPANY OR COMPANIES,
THEIR RELATIONSHIP, IF ANY, TO THE TRUST AND THE NATURE OF SUCH
ACTIVITIES. IF A PRINCIPAL UNDERWRITER HAS CEASED TO ACT IN SUCH
NAMED CAPACITY, STATE THE DATE OF AND CIRCUMSTANCES SURROUNDING
SUCH CESSATION.
See Item 27.
(b) FURNISH AS AT LATEST PRACTICABLE DATE THE ADDRESS OF EACH BRANCH
OFFICE OF EACH PRINCIPAL UNDERWRITER CURRENTLY SELLING SECURITIES
OF THE TRUST AND FURNISH THE NAME AND RESIDENCE ADDRESS OF THE
PERSON IN CHARGE OF SUCH OFFICE.
Not applicable. As of the date of this filing, Account C has not
commenced operations.
(c) FURNISH THE NUMBER OF INDIVIDUAL SALESMEN OF EACH PRINCIPAL
UNDERWRITER THROUGH WHOM ANY OF THE SECURITIES OF THE TRUST WERE
DISTRIBUTED FOR THE LAST FISCAL YEAR OF THE TRUST COVERED BY THE
FINANCIAL STATEMENTS FILED HEREWITH AND FURNISH THE AGGREGATE
AMOUNT OF COMPENSATION RECEIVED BY SUCH SALESMEN IN SUCH YEAR.
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Not applicable. As of the date of this filing, Account B has not
commenced operations.
42. FURNISH AS AT LATEST PRACTICABLE DATE THE FOLLOWING INFORMATION WITH
RESPECT TO EACH PRINCIPAL UNDERWRITER CURRENTLY DISTRIBUTING
SECURITIES OF THE TRUST AND WITH RESPECT TO EACH OF THE OFFICERS,
DIRECTORS OR PARTNERS OF SUCH UNDERWRITER (OWNERSHIP OF SECURITIES OF
THE TRUST).
Not applicable. As of the date of this filing, Account B has not
commenced operations.
43. FURNISH, FOR THE LAST FISCAL YEAR COVERED BY THE FINANCIAL STATEMENTS
FILED HEREWITH, THE AMOUNT OF BROKERAGE COMMISSIONS RECEIVED BY ANY
PRINCIPAL UNDERWRITER WHO IS A MEMBER OF A NATIONAL SECURITIES
EXCHANGE AND WHO IS CURRENTLY DISTRIBUTING THE SECURITIES OF THE TRUST
OR EFFECTING TRANSACTIONS FOR THE TRUST IN THE PORTFOLIO SECURITIES OF
THE TRUST.
Not applicable. As of the date of this filing, Account B has not
commenced operations.
OFFERING PRICE OR ACQUISITION VALUATION OF SECURITIES OF THE TRUST
44. (a) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE METHOD OF
VALUATION USED BY THE TRUST FOR THE PURPOSE OF DETERMINING THE
OFFERING PRICE TO THE PUBLIC OF SECURITIES ISSUED BY THE TRUST OR
THE VALUATION OF SHARES OR INTERESTS IN THE UNDERLYING SECURITIES
ACQUIRED BY THE HOLDER OF A PERIODIC PAYMENT PLAN CERTIFICATE:
(1) THE SOURCE OF QUOTATIONS USED TO DETERMINE THE VALUE OF THE
PORTFOLIO SECURITIES.
Each Fund's shares are valued at net asset value as supplied
to the Company by the Fund or its agent.
(2) WHETHER OPENING, CLOSING, BID, ASKED OR ANY OTHER PRICE IS
USED.
See Item 44(a)(1) and 16.
(3) WHETHER PRICE IS AS OF THE DAY OF SALE OR AS OF ANY OTHER
TIME.
See Item 16.
(4) A BRIEF DESCRIPTION OF THE METHODS USED BY REGISTRANT FOR
DETERMINING OTHER ASSETS AND
41
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LIABILITIES INCLUDING ACCRUAL FOR EXPENSES AND TAXES
(INCLUDING TAXES ON UNREALIZED APPRECIATION).
Account C's assets and liabilities (such as charges against
Account C) are valued in accordance with generally-accepted
accounting principles on an accrual basis. The Company does
currently not intend to create a reserve for its Federal
income taxes.
(5) OTHER ITEMS WHICH REGISTRANT ADDS TO THE NET ASSET VALUE IN
COMPUTING OFFERING PRICE OF ITS SECURITIES.
Not applicable.
(6) WHETHER ADJUSTMENTS ARE MADE FOR FRACTIONS:
(i) before adding distributor's compensation (load); and
(ii) after adding distributor's compensation (load).
Not applicable because Account C does not compute per-unit
values and sales loads in the manner presupposed by this
Item and Item 44(b). Appropriate adjustments will be made
for fractions in all computations.
(b) FURNISH A SPECIMEN SCHEDULE SHOWING THE COMPONENTS OF THE
OFFERING PRICE OF THE TRUST'S SECURITIES AS AT THE LATEST
PRACTICABLE DATE.
Not applicable. As of the date of this filing, Account C has not
commenced operations.
(c) IF THERE IS ANY VARIATION IN OFFERING PRICE OF THE TRUST'S
SECURITIES TO ANY PERSON OR THE CLASSES OF PERSONS OTHER THAN
UNDERWRITERS, STATE THE NATURE AND AMOUNT OF SUCH VARIATION AND
INDICATE THE PERSON OR CLASSES OF PERSONS TO WHOM SUCH OFFERING
IS MADE.
The Company does not require a premium payment of a fixed amount
at fixed intervals for a specified time period. A
Certificateholder may, subject to the limitations set forth in
Item 10(i), pay premiums at any frequency in any amount.
Nonetheless, Certificateholders will need to pay sufficient
premiums to maintain adequate cash surrender value to pay monthly
charges, including the cost of insurance. The cost of insurance
will vary, depending upon the insured's age, sex, and risk
classification. In addition, there will be additional charges if
optional insurance benefits are elected. Thus, for the
Certificate to remain in force, a Certificateholder will need to
take the cost of insurance, as well as other factors such as
investment performance, into consideration in determining the
amount and frequency of premium payments.
45. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO ANY SUSPENSION OF
THE REDEMPTION RIGHTS OF THE SECURITIES ISSUED BY
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THE TRUST DURING THE THREE FISCAL YEARS COVERED BY THE FINANCIAL
STATEMENTS FILED HEREWITH:
Not applicable.
(a) BY WHOSE ACTION REDEMPTION RIGHTS WERE SUSPENDED.
Not applicable.
(b) THE NUMBER OF DAYS' NOTICE GIVEN TO SECURITY HOLDERS PRIOR TO
SUSPENSION OF REDEMPTION RIGHTS.
Not applicable.
(c) REASON FOR SUSPENSION.
Not applicable.
(d) PERIOD DURING WHICH SUSPENSION WAS IN EFFECT.
Not applicable.
46. (a) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE METHOD OF
DETERMINING THE REDEMPTION OR WITHDRAWAL VALUATION OF SECURITIES
ISSUED BY THE TRUST:
(1) THE SOURCE OF QUOTATIONS USED TO DETERMINE THE VALUE OF
PORTFOLIO SECURITIES.
See Item 44(a)(1).
(2) WHETHER OPENING, CLOSING, BID, ASKED OR ANY OTHER PRICE IS
USED.
See Item 44(a)(2).
(3) WHETHER PRICE IS AS OF THE DAY OF SALE OR AS OF ANY OTHER
TIME.
As of the day a request for surrender is received in good
order.
(4) A BRIEF DESCRIPTION OF THE METHODS USED BY REGISTRANT FOR
DETERMINING OTHER ASSETS AND LIABILITIES INCLUDING ACCRUAL
FOR EXPENSES AND TAXES (INCLUDING TAXES ON UNREALIZED
APPRECIATION).
See Item 44(a)(4) and 18(c).
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(5) OTHER ITEMS WHICH REGISTRANT DEDUCTS FROM THE NET ASSET
VALUE IN COMPUTING REDEMPTION VALUE OF ITS SECURITIES.
See Item 10(c).
(6) WHETHER ADJUSTMENTS ARE MADE FOR FRACTIONS.
Not applicable.
(b) FURNISH A SPECIMEN SCHEDULE SHOWING THE COMPONENTS OF THE
REDEMPTION PRICE TO THE HOLDERS OF THE TRUST'S SECURITIES AS AT
THE LATEST PRACTICABLE DATE.
Not applicable. As of the date of this filing, Account C has not
commenced operations.
PURCHASE AND SALE OF INTERESTS IN UNDERLYING SECURITIES FROM AND TO
SECURITY HOLDERS
47. FURNISH A STATEMENT AS TO THE PROCEDURE WITH RESPECT TO THE
MAINTENANCE OF A POSITION IN THE UNDERLYING SECURITIES OR INTERESTS IN
THE UNDERLYING SECURITIES, THE EXTENT AND NATURE THEREOF AND THE
PERSON WHO MAINTAINS SUCH A POSITION. INCLUDE A DESCRIPTION OF THE
PROCEDURE WITH RESPECT TO THE PURCHASE OF UNDERLYING SECURITIES OR
INTERESTS IN THE UNDERLYING SECURITIES FROM SECURITY HOLDERS WHO
EXERCISE REDEMPTION OR WITHDRAWAL RIGHTS AND THE SALE OF SUCH
UNDERLYING SECURITIES AND INTERESTS IN THE UNDERLYING SECURITIES TO
OTHER SECURITY HOLDERS. STATE WHETHER THE METHOD OF VALUATION OF SUCH
UNDERLYING SECURITIES OR INTERESTS IN UNDERLYING SECURITIES DIFFERS
FROM THAT SET FORTH IN ITEMS 44 AND 46. IF ANY ITEM OF EXPENDITURE
INCLUDED IN THE DETERMINATION OF THE VALUATION IS NOT OR MAY NOT
ACTUALLY BE INCURRED OR EXPENDED, EXPLAIN THE NATURE OF SUCH ITEM AND
WHO MAY BENEFIT FROM THE TRANSACTION.
The Company will invest net premiums, through Account C, in shares of
the underlying Funds at net asset value and allocate them to the
sub-accounts of Account C designated by a Certificateholder. Shares of
the Funds are currently sold only to the Company (and other insurance
company separate accounts) for investment of separate account assets
and are not sold directly to the general public except through the
reinvestment of dividends. The Company may redeem sufficient shares of
the appropriate Fund to pay death benefits, benefits at maturity, or
surrender proceeds, or for other purposes contemplated by the
Certificates. In addition, if a Certificateholder elects to transfer
cash value among the sub-accounts of Account C, the Company may redeem
shares held in any sub-account from which a transfer is made and
purchase shares for any sub-account into which cash value is
transferred. See Item 10(c).
V. INFORMATION CONCERNING THE TRUSTEE OR CUSTODIAN
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48. FURNISH THE FOLLOWING INFORMATION AS TO EACH TRUSTEE OR CUSTODIAN OF
THE TRUST.
(a) NAME AND PRINCIPAL BUSINESS ADDRESS:
Not applicable.
(b) FORM OF ORGANIZATION:
Not applicable.
(c) STATE OR OTHER SOVEREIGN POWER UNDER THE LAWS OF WHICH THE
TRUSTEE OR CUSTODIAN WAS ORGANIZED.
Not applicable.
(d) NAME OF GOVERNMENTAL SUPERVISING OR EXAMINING AUTHORITY.
Not applicable.
49. STATE THE BASIS FOR PAYMENT OF FEES OR EXPENSES OF THE TRUSTEE OR
CUSTODIAN FOR SERVICES RENDERED WITH RESPECT TO THE TRUST AND ITS
SECURITIES, AND THE AGGREGATE AMOUNT THEREOF FOR THE LAST FISCAL YEAR.
INDICATE THE PERSON PAYING SUCH FEES OR EXPENSES. IF ANY FEES OR
EXPENSES ARE PREPAID, STATE THE UNEARNED AMOUNT.
Not applicable.
50. STATE WHETHER THE TRUSTEE OR CUSTODIAN OR ANY OTHER PERSON HAS OR MAY
CREATE A LIEN ON THE ASSETS OF THE TRUST, AND, IF SO, GIVE FULL
PARTICULARS, OUTLINING THE SUBSTANCE OF THE PROVISIONS OF ANY
INDENTURE OR AGREEMENT WITH RESPECT THERETO.
The assets of Account C are not chargeable with liabilities arising
out of any other business that the Company may conduct except to the
extent assets in Account C exceed liabilities arising under the
variable portion of a Certificate. The income, capital gains, and
capital losses of each sub-account are credited to or charged against
the assets held in that sub-account in accordance with the terms of
each Certificate, without regard to the income, capital gains and
capital losses of any other sub-account.
VI. INFORMATION CONCERNING INSURANCE OF HOLDERS OF SECURITIES
51. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO INSURANCE OF HOLDERS
OF SECURITIES:
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(a) THE NAME AND ADDRESS OF THE INSURANCE COMPANY.
Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, CT 06156
(b) THE TYPES OF POLICIES AND WHETHER INDIVIDUAL OR GROUP POLICIES.
The Policies are group flexible premium variable life insurance
policies. The Policies are offered on a group basis to businesses
in connection with employer-sponsored insurance. Participation in
a group Policy will be accounted for by the issuance of a
certificate describing the individual's interest under the group
Policy.
(c) THE TYPES OF RISKS INSURED AND EXCLUDED.
The Company assumes the risk that the deductions made for
mortality risks will prove inadequate to cover actual mortality
costs. The Company also assumes the risk that deductions for
expenses may be inadequate.
(d) THE COVERAGE OF THE POLICIES.
The Policies provide insurance coverage on the life of the
insured. The minimum Death Benefit is stated in each Certificate.
Death Proceeds will be reduced by any outstanding Certificate
Debt and any due and unpaid monthly deductions and increased by
any unearned loan interest.
(e) THE BENEFICIARIES OF SUCH POLICIES AND THE USES TO WHICH THE
PROCEEDS OF POLICIES MUST BE PUT.
The recipient of the benefits of the insurance undertaking
described in Item 51(c) is either the owner or the beneficiary of
a Certificate. There are no restrictions on the use of the
proceeds other than those established by a Certificateholder.
(f) THE TERMS AND MANNER OF CANCELLATION AND OF REINSTATEMENT.
Certificateholders may surrender a Certificate for its Surrender
Value, by written request, at any time before the Maturity Date.
The insured must be alive to surrender the Certificate. All
insurance coverage under the Certificate ends the date of the
Full Surrender. The Surrender Value equals the Total Account
Value on the date of surrender, less the Loan Account Value and
less any unpaid accrued interest. The Company may require return
of the Certificate for a Full Surrender.
The Company computes the Surrender Value as of the end of the
Valuation Period in which it receives a written request for
surrender.
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A Certificate may be terminated after its Grace Period. Upon
reinstatement, the Certificate Year is calculated as if there had
never been a lapse in coverage. Reinstatement must be applied for
(a) within 5 years after the date of termination and (b) before
the Maturity Date.
Also, the Company must receive (a) evidence of the insured's
current insurability that is satisfactory to it, and (b) a
premium payment that at least equals the following amount: the
sum of (1) and (2), where (1) is any portion of the Loan Account
Value plus accrued interest on the date of lapse exceeding the
Total Account Value on the date of lapse and (2) is a premium
payment sufficient to keep the Certificate in force for the
current month plus 2 additional months.
If a Certificate is reinstated within a 5-year No Lapse Coverage
period, all values, including the Loan Account Value, are
reinstated as they were on the date of lapse.
If a Certificate is reinstated after a 5-year No Lapse Coverage
period has expired, the coverage would be reinstated on the
Monthly Deduction Day following our approval. The Company first
applies a payment to pay any positive excess of (1) over (2),
where (1) is the Loan Account Value plus accrued interest on the
date of lapse, and (2) is the Total Account Value on the date of
lapse. Any remainder is treated as a premium. The Total Account
Value at reinstatement is the Net Premium paid, less the Monthly
Deduction for that day. Any Loan Account Value is not reinstated.
Monthly Deductions and investment performance are restarted on
the Monthly Deduction Day on or first following our approval of
the reinstatement. The reinstated Death Benefit is paid if the
Insured dies prior to that date, but only if The Company has
received (a) a reinstatement request and (b) all payments and
information required for it to grant the request.
The Company must consent before reinstatement of any supplemental
benefit rider. If the Certificate lapsed within a 5-year No Lapse
Coverage period, and that period has not yet expired by the time
of reinstatement. The Company will reinstate any Certificate Loan
Value and consider as due any prior uncollected Monthly
Deductions. (See 5-year No Lapse Coverage Provision). The Company
will also restore any portion of the No Lapse Coverage period
that still remains by the time of reinstatement. In that case,
the Certificateholder may put the No Lapse Coverage into effect
for any time during such remaining period, provided the
Certificateholder has paid at least the cumulative amount of all
Basic Monthly Premiums required to date for this purpose. This
cumulative amount includes any amount of unpaid Basic Monthly
Premiums due for periods prior to the reinstatement.
(g) THE METHOD OF DETERMINING THE AMOUNT OF PREMIUMS TO BE PAID BY
HOLDERS OF SECURITIES.
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See answers to Item 13(a) for amount of charges imposed and 44(a)
and 44(c) for the manner in which the premium is determined.
(h) THE AMOUNT OF AGGREGATE PREMIUMS PAID TO THE INSURANCE COMPANY
DURING THE LAST FISCAL YEAR.
None. As of the date of this filing, Account C has not commenced
operations.
(i) WHETHER ANY PERSON OTHER THAN THE INSURANCE COMPANY RECEIVES ANY
PART OF SUCH PREMIUMS, THE NAME OF EACH SUCH PERSON AND THE
AMOUNTS INVOLVED, AND THE NATURE OF THE SERVICES RENDERED
THEREFOR.
No person other than the Company receives any part of the amounts
deducted for assumption of mortality and expense risks. However,
the Company may from time to time enter into reinsurance
agreements with other insurance companies under which certain
insurance risks, premium income and related expenses are assumed
by such other insurance companies. However, any such arrangements
or contracts do not affect the policies or the benefits paid
thereunder.
(j) THE SUBSTANCE OF ANY OTHER MATERIAL PROVISIONS OF ANY INDENTURE
OR AGREEMENT OF THE TRUST RELATING TO INSURANCE.
None.
VII. POLICY OF REGISTRANT
52. (a) FURNISH THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR
AGREEMENT WITH RESPECT TO THE CONDITIONS UPON WHICH AND THE
METHOD OF SELECTION BY WHICH PARTICULAR PORTFOLIO SECURITIES MUST
OR MAY BE ELIMINATED FROM THE ASSETS OF THE TRUST OR MUST OR MAY
BE REPLACED BY OTHER PORTFOLIO SECURITIES. IF AN INVESTMENT
ADVISER OR OTHER PERSON IS TO BE EMPLOYED IN CONNECTION WITH SUCH
SELECTION, ELIMINATION OR SUBSTITUTION, STATE THE NAME OF SUCH
PERSON, THE NATURE OF ANY AFFILIATION TO THE DEPOSITOR, TRUSTEE
OR CUSTODIAN, AND ANY PRINCIPAL UNDERWRITER, AND THE AMOUNT OF
REMUNERATION TO BE RECEIVED FOR SUCH SERVICES. IF ANY PARTICULAR
PERSON IS NOT DESIGNATED IN THE INDENTURE OR AGREEMENT, DESCRIBE
BRIEFLY THE METHOD OF SELECTION OF SUCH PERSON.
The investment Policy of each Sub-Account of Account C is to
invest in a particular underlying Fund.
The Company reserves the right, subject to applicable law, to
make additions to, deletions from, or substitutions for the
shares that are held in the Sub-Accounts
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of Account C or that the Sub-Accounts of Account C may purchase.
If the shares of an Underlying Fund are no longer available for
investment or if in the Company's judgment further investment in
any Underlying Fund should become inappropriate in view of the
purposes of Account C or the affected Sub-Account, the Company
may redeem the shares of that underlying Fund and substitute
shares of another registered open-end management company. The
Company will not substitute any shares attributable to a
Certificate interest in a Sub-Account without notice and prior
approval of the SEC and state insurance authorities, to the
extent required by the 1940 Act or other applicable law.
The Company also reserves the right to establish additional
Sub-Accounts of Account C, each of which would invest in shares
corresponding to a new underlying Fund or in shares of another
investment company having a specified investment objective.
Subject to applicable law and any required SEC approval, the
Company may, in its sole discretion, establish new Sub-Accounts
or eliminate one or more Sub-Accounts if marketing needs, tax
considerations or investment conditions warrant. Any new
Sub-Accounts may be deemed available to existing
Certificateholders on a basis to be determined by the Company. If
the Company deems it to be in the best interest of
Certificatesholders, and subject to any approvals that may be
required under applicable law, Account C may be operated as a
management company under the 1940 Act, may be deregistered if
registration is no longer required, or may be combined with other
separate accounts of the Company.
If any of these substitutions or changes are made, the Company
will by way of appropriate endorsement change the Policy and
Certificates to reflect the substitution or change.
(b) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO EACH
TRANSACTION INVOLVING THE ELIMINATION OF ANY UNDERLYING SECURITY
DURING THE PERIOD COVERED BY THE FINANCIAL STATEMENTS FILED
HEREWITH.
Not applicable.
(c) DESCRIBE THE POLICY OF THE TRUST WITH RESPECT TO THE SUBSTITUTION
AND ELIMINATION OF THE UNDERLYING SECURITIES OF THE TRUST WITH
RESPECT TO:
(1) THE GROUNDS FOR ELIMINATION AND SUBSTITUTION;
See 52(a), above.
(2) THE TYPE OF SECURITIES WHICH MAY BE SUBSTITUTED FOR ANY
UNDERLYING SECURITY;
See 52(a), above.
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(3) WHETHER THE ACQUISITION OF SUCH SUBSTITUTED SECURITY OR
SECURITIES WOULD CONSTITUTE THE CONCENTRATION OF INVESTMENT
IN A PARTICULAR INDUSTRY OR GROUP OF INDUSTRIES OR WOULD
CONFORM TO A POLICY OF CONCENTRATION OF INVESTMENT IN A
PARTICULAR; INDUSTRY OR GROUP OF INDUSTRIES;
See 52(a), above.
(4) WHETHER SUCH SUBSTITUTED SECURITIES MAY BE THE SECURITIES OF
ANY OTHER INVESTMENT COMPANY; AND
See 52(a), above.
(5) THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR
AGREEMENT WHICH AUTHORIZE OR RESTRICT THE POLICY OF THE
REGISTRANT IN THIS REGARD.
See Items 10(g) and (h) and 52(a) above.
(d) FURNISH A DESCRIPTION OF ANY POLICY (EXCLUSIVE OF POLICIES
COVERED BY PARAGRAPH (a) AND (b) HEREIN) OF THE TRUST WHICH IS
DEEMED A MATTER OF FUNDAMENTAL POLICY AND WHICH IS ELECTED TO BE
TREATED AS SUCH.
None.
REGULATED INVESTMENT COMPANY
53. (a) STATE THE TAXABLE STATUS OF THE TRUST.
Because of its current tax status, the Company does not expect to
incur any federal income tax liabilities that would be charged to
the Separate Account, and the Company does not intend to make a
charge for federal income taxes. The Company may, however, incur
state and local taxes (in addition to premium taxes) in several
states. At present, these taxes are not significant. If there is
a material change in state or local tax laws, charges for such
taxes, if any, attributable to the Separate Account may be made.
(b) STATE WHETHER THE TRUST QUALIFIED FOR THE LAST TAXABLE YEAR AS A
REGULATED INVESTMENT COMPANY AS DEFINED IN SECTION 851 OF THE
INTERNAL REVENUE CODE OF 1954, AND STATE ITS PRESENT INTENTION
WITH RESPECT TO SUCH QUALIFICATION DURING THE CURRENT TAXABLE
YEAR.
Not applicable. See Item 53(a).
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VIII. FINANCIAL AND STATISTICAL INFORMATION
54. IF THE TRUST IS NOT THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES
FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO EACH CLASS OR SERIES
OF ITS SECURITIES.
Not applicable.
55. IF THE TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES, A
TRANSCRIPT OF A HYPOTHETICAL ACCOUNT SHALL BE FILED IN APPROXIMATELY
THE FOLLOWING FORM ON THE BASIS OF THE CERTIFICATE CALLING FOR THE
SMALLEST AMOUNT OF PAYMENTS. THE SCHEDULE SHALL COVER A CERTIFICATE OF
THE TYPE CURRENTLY BEING SOLD ASSUMING THAT SUCH CERTIFICATE HAD BEEN
SOLD AT A DATE APPROXIMATELY TEN YEARS PRIOR TO THE DATE OF
REGISTRATION OR AT THE APPROXIMATE DATE OF ORGANIZATION OF THE TRUST.
Not applicable.
56. IF THE TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES,
FURNISH BY YEARS FOR THE PERIOD COVERED BY THE FINANCIAL STATEMENTS
FILED HEREWITH IN RESPECT OF CERTIFICATES SOLD DURING SUCH PERIOD, THE
FOLLOWING INFORMATION FOR EACH FULLY PAID TYPE AND EACH INSTALLMENT
PAYMENT TYPE OF PERIODIC PAYMENT PLAN CERTIFICATE CURRENTLY BEING
ISSUED BY THE TRUST.
Not applicable.
57. IF THE TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES,
FURNISH BY YEARS FOR THE PERIOD COVERED BY FINANCIAL STATEMENTS FILED
HEREWITH THE FOLLOWING INFORMATION FOR EACH INSTALLMENT PAYMENT TYPE
OF PERIODIC PAYMENT PLAN CERTIFICATE CURRENTLY BEING ISSUED BY THE
TRUST.
Not applicable.
58. IF THE TRUST IS THE ISSUER OF PERIODIC PLAN CERTIFICATES FURNISH THE
FOLLOWING INFORMATION FOR EACH INSTALLMENT PAYMENT TYPE OF PERIODIC
PAYMENT PLAN CERTIFICATE OUTSTANDING AS AT THE LATEST PRACTICABLE
DATE.
Not applicable.
59. FINANCIAL STATEMENTS:
FINANCIAL STATEMENTS OF THE SEPARATE ACCOUNT
Not applicable. As of the date of this filing, Account C has not
commenced operations.
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FINANCIAL STATEMENTS OF THE DEPOSITOR
The Financial Statements of the Depositor will be contained in
Pre-Effective Amendment No. 1 to the registration statement on Form
S-6 to be filed by the Registrant pursuant to the Securities Act of
1933. They are incorporated herein by reference.
IX. EXHIBITS
A. FURNISH THE MOST RECENT FORM OF THE FOLLOWING:
(1) THE INDENTURE OR AGREEMENT UNDER THE TERMS OF WHICH THE TRUST WAS
ORGANIZED OR ISSUED SECURITIES.
A Certified Copy of the Unanimous Written Consent of the Executive
Committee of the Board of Directors of the Company dated August 31,
1999, authorizing the establishment of the Separate Account, is filed
herewith.
(2) THE INDENTURE OR AGREEMENT PURSUANT TO WHICH THE PROCEEDS OF PAYMENTS
OF SECURITIES ARE HELD BY THE CUSTODIAN OR TRUSTEE, IF SUCH INDENTURE
OR AGREEMENT IS NOT THE SAME AS THE INDENTURE OR AGREEMENT REFERRED TO
IN PARAGRAPH (1).
Not applicable.
(3) DISTRIBUTING CONTRACTS:
(A) AGREEMENTS BETWEEN THE TRUST AND PRINCIPAL UNDERWRITER OR BETWEEN
THE DEPOSITOR AND PRINCIPAL UNDERWRITER.
Not applicable.
(B) SPECIMEN OF TYPICAL AGREEMENTS BETWEEN PRINCIPAL UNDERWRITER AND
DEALERS, MANAGERS, SALES SUPERVISORS AND SALESMEN.
Form of Broker Dealer Agreement. Incorporated by reference to
Post-Effective Amendment No. 2 to Registration Statement on Form
S-6 (File No. 33-76004), as filed on February 16, 1996.
(C) SCHEDULES OF SALES COMMISSIONS REFERRED TO IN ITEM 39(C) [38(C)].
Not applicable.
(4) ANY AGREEMENT BETWEEN THE DEPOSITOR, PRINCIPAL UNDERWRITER AND THE
CUSTODIAN OR TRUSTEE OTHER THAN INDENTURES OR
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AGREEMENTS SET FORTH IN PARAGRAPHS (1), (2) AND (3) WITH RESPECT TO
THE TRUST OR ITS SECURITIES.
Not applicable.
(5) THE FORM OF EACH TYPE OF SECURITY.
(a) Group Policy (70262-97). Incorporated by reference to
Post-Effective Amendment No. 2 to Registration Statement on Form
S-6 (File No. 333-15817), as filed on April 16, 1998.
(b) Certificate (70263-97) Under Group Policy. Incorporated by
reference to Post-Effective Amendment No. 2 to Registration
Statement on Form S-6 (File No. 333-15817), as filed on April 16,
1998.
(c) Disability Benefit Rider (70264-97). Incorporated by reference to
Post-Effective Amendment No. 2 to Registration Statement on Form
S-6 (File No. 333-15817), as filed on April 16, 1998.
(d) Accelerated Death Benefit Rider (70265-97). Incorporated by
reference to Post-Effective Amendment No. 2 to Registration
Statement on Form S-6 (File No. 333-15817), as filed on April 16,
1998.
(e) Accidental Death Benefit Rider (70266-97). Incorporated by
reference to Post-Effective Amendment No. 2 to Registration
Statement on Form S-6 (File No. 333-15817), as filed on April 16,
1998.
(f) Accelerated Death Benefit Disclosure Statement (DISC/NYSUT).
Incorporated by reference to Post-Effective Amendment No. 2 to
Registration Statement on Form S-6 (File No. 333-15817), as filed
on April 16, 1998.
(g) Children Insurance Rider Term Insurance (70267-97). Incorporated
by reference to Post-Effective Amendment No. 2 to Registration
Statement on Form S-6 (File No. 333-15817), as filed on April 16,
1998.
(6) THE CERTIFICATE OF INCORPORATION OR OTHER INSTRUMENT OF ORGANIZATION
AND BY-LAWS OF THE DEPOSITOR.
(a) Certificate of Incorporation of Aetna Life Insurance and Annuity
Company. Incorporated by reference to Post-Effective Amendment
No. 1 to Registration Statement on Form S-1 (File No. 33-60477),
as filed on April 15, 1996.
(b) Amendment of Certificate of Incorporation of Aetna Life Insurance
and Annuity Company. Incorporated by reference to Post-Effective
Amendment No. 12 to Registration Statement on Form N-4 (File No.
33-75964), as filed on February 11, 1997.
(c) By-Laws as amended September 17, 1997 of Aetna Life Insurance and
Annuity Company. Incorporated by reference to Post-Effective
Amendment No. 12 to
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Registration Statement on Form N-4 (File No. 33-91846), as filed
on October 30, 1997.
(7) ANY INSURANCE POLICY UNDER A CONTRACT BETWEEN THE TRUST AND THE
INSURANCE COMPANY OR BETWEEN THE DEPOSITOR AND THE INSURANCE COMPANY,
TOGETHER WITH THE TABLE OF INSURANCE PREMIUMS.
Not applicable.
(8) ANY AGREEMENT BETWEEN THE TRUST OR THE DEPOSITOR CONCERNING THE TRUST
WITH THE ISSUER, DEPOSITOR, PRINCIPAL UNDERWRITER OR INVESTMENT
ADVISER OF ANY UNDERLYING INVESTMENT COMPANY OR ANY AFFILIATED PERSON
OF SUCH PERSONS.
(a) Fund Participation Agreement by and among Aetna Life Insurance
and Annuity Company and Aetna Variable Fund, Aetna Variable
Encore Fund, Aetna Income Shares, Aetna Balanced VP, Inc., Aetna
GET Fund on behalf of each of its series, Aetna Generation
Portfolios, Inc. on behalf of each of its series, Aetna Variable
Portfolios, Inc. on behalf of each of its series, and Aeltus
Investment Management, Inc. dated as of May 1, 1998. Incorporated
by reference to Registration Statement on Form N-4 (File No.
333-56297), as filed on June 8, 1998.
(b) Amendment dated November 9, 1998 to Fund Participation Agreement
by and among Aetna Life Insurance and Annuity Company and Aetna
Variable Fund, Aetna Variable Encore Fund, Aetna Income Shares,
Aetna Balanced VP, Inc., Aetna GET Fund on behalf of each of its
series, Aetna Generation Portfolios, Inc. on behalf of each of
its series, Aetna Variable Portfolios, Inc. on behalf of each of
its series, and Aeltus Investment Management, Inc. dated as of
May 1, 1998. Incorporated by reference to Post-Effective
Amendment No. 2 to Registration Statement on Form N-4 (File No.
333-56297), as filed on December 14, 1998.
(c) Second Amendment to Fund Participation Agreement by and among
Aetna Life Insurance and Annuity Company and Aetna Variable Fund,
Aetna Variable Encore Fund, Aetna Income Shares, Aetna Balanced
VP, Inc., Aetna GET Fund on behalf of each of its series, Aetna
Generation Portfolios, Inc. on behalf of each of its series,
Aetna Variable Portfolios, Inc. on behalf of each of its series,
and Aeltus Investment Management, Inc. dated as of May 1, 1998
and amended on November 9, 1998*
(d) Service Agreement between Aeltus Investment Management, Inc. and
Aetna Life Insurance and Annuity Company in connection with the
sale of shares of Aetna Variable Fund, Aetna Variable Encore
Fund, Aetna Income Shares, Aetna Balanced VP, Inc., Aetna GET
Fund on behalf of each of its series, Aetna Generation
Portfolios, Inc. on behalf of each of its series, and Aetna
Variable Portfolios, Inc. on behalf of each of its series dated
as of May 1, 1998.
54
<PAGE>
Incorporated by reference to Registration Statement on Form N-4
(File No. 333-56297), as filed on June 8, 1998.
(e) Amendment dated November 4, 1998 to Service Agreement between
Aeltus Investment Management, Inc. and Aetna Life Insurance and
Annuity Company in connection with the sale of shares of Aetna
Variable Fund, Aetna Variable Encore Fund, Aetna Income Shares,
Aetna Balanced VP, Inc., Aetna GET Fund on behalf of each of its
series, Aetna Generation Portfolios, Inc. on behalf of each of
its series and Aetna Variable Portfolios, Inc. on behalf of each
of its series dated as of May 1, 1998. Incorporated by reference
to Post-Effective Amendment No. 2 to Registration Statement on
Form N-4 (File No. 333-56297), as filed on December 14, 1998.
(f) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1, 1996
and March 1, 1996. Incorporated by reference to Post-Effective
Amendment No. 30 to Registration Statement on Form N-4 (File No.
33-34370), as filed on September 29, 1997.
(g) Fifth Amendment dated as of May 1, 1997 to the Fund Participation
Agreement between Aetna Life Insurance and Annuity Company,
Variable Insurance Products Fund and Fidelity Distributors
Corporation dated February 1, 1994 and amended on December 15,
1994, February 1, 1995, May 1, 1995, January 1, 1996 and March 1,
1996. Incorporated by reference to Post-Effective Amendment No.
30 to Registration Statement on Form N-4 (File No. 33-34370), as
filed on September 29, 1997.
(h) Sixth Amendment dated November 6, 1997 to the Fund Participation
Agreement between Aetna Life Insurance and Annuity Company,
Variable Insurance Products Fund and Fidelity Distributors
Corporation dated February 1, 1994 and amended on December 15,
1994, February 1, 1995, May 1, 1995, January 1, 1996, March 1,
1996 and May 1, 1997. Incorporated by reference to Post-Effective
Amendment No. 16 to Registration Statement on Form N-4 (File No.
33-75964), as filed on February 9, 1998.
(i) Seventh Amendment dated as of May 1, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and Annuity
Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1,
1996, March 1, 1996, May 1, 1997 and November 6, 1997.
Incorporated by reference to Registration Statement on Form N-4
(File No. 333-56297), as filed on June 8, 1998.
(j) Eighth Amendment to Fund Participation Agreement between Aetna
Life Insurance and Annuity Company, Variable Insurance Products
Fund and Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May 1, 1995,
January 1, 1996, March 1, 1996, May 1, 1997, November 6, 1997 and
May 1, 1998*
55
<PAGE>
(k) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1, 1996
and March 1,1996. Incorporated by reference to Post-Effective
Amendment No. 12 to Registration Statement on Form N-4 (File No.
33-75964), as filed on February 11, 1997.
(l) Fifth Amendment dated as of May 1, 1997 to the Fund Participation
Agreement between Aetna Life Insurance and Annuity Company,
Variable Insurance Products Fund II and Fidelity Distributors
Corporation dated February 1, 1994 and amended on December 15,
1994, February 1, 1995, May 1, 1995, January 1, 1996, and March
1, 1996. Incorporated by reference to Post-Effective Amendment
No. 30 to Registration Statement on Form N-4 (File No. 33-34370),
as filed on September 29, 1997.
(m) Sixth Amendment dated as of January 20, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and Annuity
Company, Variable Insurance Products Fund II and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1,
1996, March 1, 1996 and May 1, 1997. Incorporated by reference to
Post-Effective Amendment No. 7 to Registration Statement on Form
N-4 (File No. 33-75248), as filed on February 24, 1998.
(n) Seventh Amendment dated as of May 1, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and Annuity
Company, Variable Insurance Products Fund II and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1,
1996, March 1, 1996, May 1, 1997 and January 20, 1998.
Incorporated by reference to Registration Statement on Form N-4
(File No. 333-56297), as filed on June 8, 1998.
(o) Eighth Amendment to Fund Participation Agreement between Aetna
Life Insurance and Annuity Company, Variable Insurance Products
Fund II and Fidelity Distributors Corporation dated February 1,
1994 and amended on December 15, 1994, February 1, 1995, May 1,
1995, January 1, 1996, March 1, 1996, May 1, 1997, January 20,
1998 and May 1, 1998*
(p) Service Agreement between Aetna Life Insurance and Annuity
Company and Fidelity Investment Institutional Operations Company
dated as of November 1, 1995. Incorporated by reference to
Post-Effective Amendment No. 3 to Registration Statement on Form
N-4 (File No. 33-88720), as filed on June 28, 1996.
(q) Amendment dated January 1, 1997 to Service Agreement between
Aetna Life Insurance and Annuity Company and Fidelity Investment
Institutional Operations Company dated as of November 1, 1995.
Incorporated by reference to Post-Effective Amendment No. 30 to
Registration Statement on Form N-4 (File No. 33-34370), as filed
on September 29, 1997.
56
<PAGE>
(r) Service Contract between Fidelity Distributors Corporation and
Aetna Life Insurance and Annuity Company dated May 2, 1997.
Incorporated by reference to Post-Effective Amendment No. 2 to
Registration Statement on Form N-4 (File No. 333-56297), as filed
on December 14, 1998.
(s) Fund Participation Agreement among Janus Aspen Series and Aetna
Life Insurance and Annuity Company and Janus Capital Corporation
dated December 8, 1997. Incorporated by reference to
Post-Effective Amendment No. 10 to Registration Statement on Form
N-4 (File No. 33-75992), as filed on December 31, 1997.
(t) Amendment dated October 12, 1998 to Fund Participation Agreement
among Janus Aspen Series and Aetna Life Insurance and Annuity
Company and Janus Capital Corporation dated December 8, 1997.
Incorporated by reference to Post-Effective Amendment No. 2 to
Registration Statement on Form N-4 (File No. 333-56297), as filed
on December 14, 1998.
(u) Second Amendment to Fund Participation Agreement among Janus
Aspen Series and Aetna Life Insurance and Annuity Company and
Janus Capital Corporation dated December 8, 1997 and amended on
October 12, 1997*
(v) Service Agreement between Janus Capital Corporation and Aetna
Life Insurance and Annuity Company dated December 8, 1997.
Incorporated by reference to Post-Effective Amendment No. 10 to
Registration Statement on Form N-4 (File No. 33-75992), as filed
on December 31, 1997.
(w) Fund Participation Agreement dated March 11, 1997 between Aetna
Life Insurance and Annuity Company and Oppenheimer Variable
Annuity Account Funds and Oppenheimer Funds, Inc. Incorporated by
reference to Post-Effective Amendment No. 27 to Registration
Statement on Form N-4 (File No. 33-34370), as filed on April 16,
1997.
(x) Amendment between Aetna Life Insurance and Annuity Company and
Oppenheimer Variable Annuity Account Funds and Oppenheimer Funds,
Inc. dated March 11, 1997*
(y) Service Agreement effective as of March 11, 1997 between
Oppenheimer Funds, Inc. and Aetna Life Insurance and Annuity
Company. Incorporated by reference to Post-Effective Amendment
No. 27 to Registration Statement on Form N-4 (File No. 33-34370),
as filed on April 16, 1997.
*To be filed in Pre-Effective Amendment No. 1 to Registration
Statement on Form S-6.
(9) ALL OTHER MATERIAL CONTRACTS NOT ENTERED INTO IN THE ORDINARY COURSE
OF BUSINESS OF THE TRUST OR OF THE DEPOSITOR CONCERNING THE TRUST.
Not applicable.
57
<PAGE>
(10) FORM OF APPLICATION FOR A PERIODIC PAYMENT PLAN CERTIFICATE.
(a) Application for Group Variable Universal Life Insurance
(Application for Group Policy) (70262-1997NYAPP). Incorporated by
reference to Post-Effective Amendment No. 2 to Registration
Statement on Form S-6 (File No. 333-15817), as filed on April 16,
1998.
(b) Life Insurance Pre-APP (70272-97). Incorporated by reference to
Post-Effective Amendment No. 2 to Registration Statement on Form
S-6 (File No. 333-15817), as filed on April 16, 1998.
(c) Group Life Insurance Application (70272-97(A)ZNY). Incorporated
by reference to Post-Effective Amendment No. 2 to Registration
Statement on Form S-6 (File No. 333-15817), as filed on April 16,
1998.
(d) Supplement (70268-97(5/98)) to Application for Variable Life
Insurance. Incorporated by reference to Post-Effective Amendment
No. 2 to Registration Statement on Form S-6 (File No. 333-15817),
as filed on April 16, 1998.
B. FURNISH COPIES OF EACH OF THE FOLLOWING:
(1) EACH NOTICE SENT TO SECURITY HOLDER PURSUANT TO SECTION 19 OF THE ACT
PRIOR TO THE DATE OF THE FILING OF THIS FORM.
None
(2) EACH ANNUAL REPORT SENT TO SECURITY HOLDERS COVERING EACH FISCAL YEAR
ENDING AFTER JANUARY 1, 1937, EXCLUSIVE OF REPORTS, COPIES OF WHICH
HAVE HERETOFORE BEEN FILED WITH THE COMMISSION PURSUANT TO THE ACT.
None
C. FURNISH THE NAME AND ADDRESS OF EACH DEALER TO OR THROUGH WHOM ANY
PRINCIPAL UNDERWRITER CURRENTLY OFFERING SECURITIES OF THE TRUST,
DISTRIBUTED SECURITIES OF THE TRUST DURING THE LAST FISCAL YEAR
COVERING BY THE FINANCIAL STATEMENTS FILED HEREWITH. (THIS EXHIBIT
SHALL BE SUPPLIED SEPARATELY AS CONFIDENTIAL INFORMATION PURSUANT TO
RULE 45A-1).
None
58
<PAGE>
SIGNATURE
Pursuant to the requirements of the Investment Company Act of 1940, Aetna Life
Insurance and Annuity Company, the depositor of the Registrant, has caused this
registration statement to be duly signed on behalf of the Registrant in the City
of Hartford and State of Connecticut on the 29th day of October, 1999.
VARIABLE LIFE ACCOUNT C
OF AETNA LIFE INSURANCE AND ANNUITY COMPANY
(Registrant)
By: Aetna Life Insurance and Annuity Company
(Depositor)
By: /s/ Thomas J. McInerney
----------------------------------------
Thomas J. McInerney
Principal Executive Officer
Attest: /s/ Rose-Marie DeRensis
--------------------------------------
Rose-Marie DeRensis
Assistant Corporate Secretary
- --------------------------------------------------------------------------------
* The address of all Directors and Officers listed is 151 Farmington Avenue,
Hartford, Connecticut. These individuals may also be directors and/or
officers of other affiliates of the Company.
59
Exhibit 99-A.(1)
SECRETARY CERTIFICATE
AETNA LIFE INSURANCE AND ANNUITY COMPANY
----------------------------------------
I, Rose-Marie DeRensis, the duly elected Assistant Corporate Secretary of Aetna
Life Insurance and Annuity Company (the "Company"), do hereby certify to the
following:
That the attached resolutions, entitled "Variable Life Account C,"
adopted by the Executive Committee of the Board of Directors of the
Company on August 31, 1999, attached hereto as Attachment A, are a
true and correct copy, are currently in full force and effect, and
have not been amended, revoked or superceded.
Date: October 29, 1999 By: /s/ Rose-Marie DeRensis
---------------- ------------------------------
Rose-Marie DeRensis
Assistant Corporate Secretary
(Corporate Seal)
<PAGE>
Attachment A
UNANIMOUS WRITTEN CONSENT OF
THE EXECUTIVE COMMITTEE OF
THE BOARD OF DIRECTORS OF
AETNA LIFE INSURANCE AND ANNUITY COMPANY
----------------------------------------
The undersigned, being all of the members of the Executive Committee of the
Board of Directors of Aetna Life Insurance and Annuity Company, a Connecticut
corporation (the "Company"), being authorized by Article IV, Section 1, of the
Bylaws of the Company to exercise all of the powers of the Board of Directors of
the Company when the Board is not in session, do hereby consent to the following
actions being taken in lieu of a meeting, pursuant to Section 33-749(a) of the
Connecticut Business Corporation Act:
VARIABLE LIFE ACCOUNT C
-----------------------
RESOLVED: That the officers of this Company are hereby severally authorized to
take such action as they may severally deem necessary or appropriate
(1) to create a new separate account, to be called Variable Life
Account C, for the purpose of receiving a transfer of certain assets
from the Company's Variable Life Account B, and of funding certain
group variable life insurance policies; (2) to make any filings under
applicable law, whether federal, state or otherwise, which may be
deemed necessary or appropriate to the transfer of these assets and
the operations of that separate account; and (3) to further the
purpose and operations of that separate account; and any actions,
heretofore taken consistent with the above are hereby ratified and
confirmed.
RESOLVED: That the following Standards of Suitability are hereby adopted with
respect to the group variable life insurance business to be written by
this Company: no recommendation shall be made to an applicant to
purchase a variable life insurance policy and no such policy shall be
issued in the absence of reasonable grounds to believe that the
purchase of such policy is not unsuitable for such applicant on the
basis of information furnished after reasonable inquiry of such
applicant concerning the applicant's insurance and investment
objectives, financial situation and needs, and any other information
known to the Company or to the agent making the recommendation.
IN WITNESS WHEREOF, the undersigned have executed this consent as of the 31st
day of August, 1999.
/s/ Shaun P. Mathews /s/ Catherine H. Smith
- ------------------------------ ------------------------------
Shaun P. Mathews Catherine H. Smith
