<PAGE>
As filed with the Securities and Exchange Commission on March 3, 1997
File Nos. 2-24256
811-1343
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
______________________________
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 60
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
______________________________
HORACE MANN LIFE INSURANCE COMPANY SEPARATE ACCOUNT
---------------------------------------------------
(Exact Name of Registrant)
Horace Mann Life Insurance Company
----------------------------------
(Name of Depositor)
One Horace Mann Plaza, Springfield, Illinois 62715
---------------------------------------------------
(Address of Depositor's Principal Executive Offices)
(217) 789-2500
--------------
(Depositor's Telephone Number)
Ann M. Caparros
One Horace Mann Plaza
Springfield, Illinois 62715
----------------------------
(Name and Address of Agent for Service)
Copies of Communications to:
Cathy G. O'Kelly
Vedder, Price, Kaufman & Kammholz
222 North LaSalle Street
Chicago, Illinois 60601-1003
_________________________________
It is proposed that this filing will become effective:
___Immediately upon filing pursuant to paragraph (b) of Rule 485
___On (date) pursuant to paragraph (b) of Rule 485
_X_60 days after filing pursuant to paragraph (a)(1) of Rule 485
___On (date) pursuant to paragraph (a)(1) of Rule 485
___75 days after filing pursuant to paragraph (a)(2) of Rule 485
___On (date) pursuant to paragraph (a)(2) of Rule 485
If appropriate, check the following box:
_X_this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
The Registrant has registered an indefinite amount of securities in accordance
with Rule 24f-2 under the Investment Company Act of 1940. The Rule 24f-2 Notice
for the fiscal year ending December 31, 1996, was filed on February 19, 1997.
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY SEPARATE ACCOUNT
Cross Reference Sheet Required by Rule 495(a)
<TABLE>
<CAPTION>
Item Number in Form N-4 Caption
- ----------------------- -------
<S> <C>
Part A - Prospectus
-------------------
1. Cover Page Cover
2. Definitions Definitions
3. Synopsis
(a) (b) (c) Synopsis
(d) *
4. Condensed Financial Information
(a) (b) (c) Condensed Financial
Information
5. General Description of Registrant,
Depositor, and Portfolio Companies
(a) (b) (c) (d) (e) (f) Cover; Synopsis; Horace
Mann Life Insurance
Company; The Account and
The Horace Mann Funds; Voting Rights
6. Deductions
(a) (b) (c) (d) (e) Synopsis; Offering of the
Contracts; Deductions and
Expenses
(f) *
7. General Description of Variable
Annuity Contracts
(a) (b) (c) (d) Synopsis; Rights of Contract Owners;
Offering of the Contracts; Transactions; Death
Benefit Proceeds; Mandatory Minimum
Distribution Income Payments; Modification of
the Contract; Tax Consequences; Other
Information
8. Annuity Period
(a) (b) (c) (d) (e) (f) Income Payments; Mandatory Minimum
Distribution; Transfers
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Item Number in Form N-4 Caption
- ----------------------- -------
<S> <C>
Part A - Prospectus
-------------------
9. Death Benefit
(a) (b) Death Benefit Proceeds;
Tax Consequences
10. Purchases and Contract Value
(a) (b) (c) (d) Synopsis; Offering of the
Contracts; Purchase
Payments
11. Redemptions
(a) (c) (e) Synopsis; Surrender Before Commencement of
Annuity Period; Deferment
(b) (d) *
12. Taxes
(a) (b) (c) Surrender Before Commencement of Annuity
Period; Tax Consequences
13. Legal Proceedings Other Information
14. Table of Contents of Additional Information
Statement of Additional Information
PART B - STATEMENT OF ADDITIONAL INFORMATION
--------------------------------------------
15. Cover Page Cover
16. Table of Contents Table of Contents
17. General Information and History
(a) (b) *
(c) General Information and History
18. Services
(c) Financial Statements
(a) (b) (d) (e) (f) *
19. Purchase of Securities Being Offered
(a) Underwriter
(b) *
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Item Number in Form N-4 Caption
- ----------------------- -------
<S> <C>
20. Underwriters
(a) (b) (c) Underwriter
(d) *
21. Calculation of Performance Data
(b) Investment Experience
(a) *
22. Annuity Payments *
23. Financial Statements
(a) (b) Financial Statements
</TABLE>
PART C
------
Information required to be included in Part C is set forth under the
appropriate item, so numbered, in Part C of this Registration Statement.
*Omitted from the Prospectus or Statement of Additional Information because
the Item is not applicable.
<PAGE>
Horace Mann Life Insurance Company
Separate Account
Supplement to Prospectus
dated May 1, 1996
Effective as of March __, 1997, Variable Annuity Contract Owners may
allocate purchase payments to an additional three investment options-- the
International Equity Fund ("International Fund"), the Small Cap Growth Fund
("Small Cap Fund") and the Socially Responsible Fund (individually, a "Fund" and
collectively referred to as the "Funds"), all of which are portfolios of the
Horace Mann Mutual Funds, an open-end, diversified, management investment
company registered under the Investment Company Act of 1940. Horace Mann
Investors, Inc. (the "Adviser") is the investment adviser to each of the Funds
of the Horace Mann Mutual Funds. The Adviser has entered into an agreement with
an investment subadviser for each of the Funds whereby the subadviser manages
the investment and reinvestment of the assets of a Fund.
The investment objective of the INTERNATIONAL FUND is long-term
growth of capital primarily through a diversified portfolio of marketable
foreign equity securities. The International Fund invests primarily in equity
securities of established companies, listed on foreign exchanges, that the sub-
adviser believes have favorable characteristics. It may also invest in fixed
income securities of foreign governments and companies. Scudder, Stevens &
Clark, Inc. serves as the investment subadviser to the International Fund.
The investment objective of the SMALL CAP FUND is long-term capital
appreciation. The Small Cap Fund invests primarily in a portfolio of equity
securities of small cap companies with earnings growth potential. PNC Equity
Advisors Company serves as investment subadviser to the Small Cap Fund.
The investment objectives of the SOCIALLY RESPONSIBLE FUND are long-term
growth of capital, current income and growth of income. The Socially Responsible
Fund invests primarily in a diversified portfolio of equity securities of United
States based companies, which are determined to be socially responsible.
Investments in equity securities are limited to issuers which the subadviser
determines:
1. Do not produce tobacco products;
2. Do not produce alcoholic beverages;
3. Do not own and/or operate casinos or manufacture gaming devices;
4. Do not produce pornographic materials;
5. Do not produce nuclear weapons or guidance and/or delivery systems
specifically for nuclear weapons;
6. By popular standards, maintain non-discriminatory employment practices
throughout a company's facilities; and
7. By popular standards, maintain environmental policies, practices and
procedures which are currently acceptable, or which are exhibiting
improvement.
Scudder, Stevens & Clark, Inc. serves as the investment subadviser to the
Socially Responsible Fund.
Detailed information on each of the Funds is contained in the Horace Mann
Mutual Funds' Prospectus which accompanies this Prospectus.
TABLES OF ANNUAL OPERATING EXPENSES
The Annual Operating Expenses Tables and Examples on pages 4 and 5,
respectively, are supplemented by the following for the Funds listed above.
<PAGE>
Annual Operating Expenses of the Horace Mann Mutual Funds, as a percentage of
average net assets (net of reimbursements and fee waivers):
<TABLE>
<CAPTION>
Socially
International Small Cap Responsible
Equity Fund Growth Fund Fund
------------- ----------- ----
<S> <C> <C> <C>
Management Fees (after waiver) 0.682% 0.982% 0.532%
Other Expenses:
Fund Pricing Fee 0.005% 0.003% 0.002%
Custodian Fees 0.004% 0.002% 0.002%
Misc. (audit, legal, etc.) 0.020% 0.020% 0.020%
------ ------ ------
Total Fund Operating Expenses 0.711% 1.007% 0.557%
(after waiver)
</TABLE>
The Horace Mann Mutual Funds commenced operations on March 3, 1997, thus "Other
Expenses" shown above are based on estimated amounts for the current fiscal
year.
Horace Mann Investors, Inc. has voluntarily agreed to waive a portion of its
management fee during the first year of the Funds' operations. The effect of
this reduction in the management fee is reflected in the above table. Without
such waiver, the management fee and total fund operating expenses, respectively,
would be expected to be: 1.10% and 1.129% for the International Equity Fund;
1.40% and 1.425% for the Small Cap Growth Fund; and 0.95% and 0.975% for the
Socially Responsible Fund.
2
<PAGE>
<TABLE>
<CAPTION>
EXAMPLE/1/
- -----------------------------------------------------------------------------------------
Socially
International Small Cap Responsible
Equity Fund Growth Fund Fund
----------- ----------- -----------
<S> <C> <C> <C>
FOR FLEXIBLE PAYMENT CONTRACTS
- ------------------------------
If you surrender your Contract at the end of
the applicable time period: You would pay
the following expenses on a $1,000
investment, assuming 5% annual return on
assets:
1 year $105 $107 $103
3 years $134 $142 $130
If you do not surrender your Contract:
---
You would pay the following expenses on a
$1,000 investment, assuming 5% annual return
on assets:
1 year $ 22 $ 25 $ 21
3 years $ 69 $ 78 $ 64
FOR SINGLE PAYMENT CONTRACTS
- ----------------------------
If you surrender your Contract at the end of
the applicable time period: You would pay
the following expenses on a $1,000
investment, assuming 5% annual return on
assets:
1 year $ 74 $ 77 $ 72
3 years $101 $110 $ 97
If you do not surrender your Contract:
---
You would pay the following expenses on a
$1,000 investment, assuming 5% annual return
on assets:
1 year $ 22 $ 25 $ 21
3 years $ 69 $ 78 $ 64
</TABLE>
/1/ The EXAMPLE should not be considered a representation of past or future
-
expenses. Amounts shown are based on the "Other Expenses" shown on the fee
table and average cash value of the average number of annuity Contracts in the
accumulation phase during the 1996 calendar year. The Horace Mann Mutual Funds
commenced operations on March __, 1997, thus estimates of expenses in the
example are shown for only the one and three year periods. Actual expenses may
be greater or less than those shown. There is no assumption for premium taxes,
applicable in certain states, in these examples.
3
<PAGE>
THE PURPOSE OF THE TABLE IS TO ASSIST CONTRACT OWNERS IN UNDERSTANDING THE
VARIOUS COSTS AND EXPENSES THAT THEY BEAR DIRECTLY OR INDIRECTLY, THE TABLE
REFLECTS EXPENSES OF THE SEPARATE ACCOUNT AS WELL AS THOSE OF THE UNDERLYING
FUNDS. SEE "THE CONTRACT-DEDUCTIONS AND EXPENSES" ON PAGES 11 AND 12 OF THE
PROSPECTUS.
Supplement dated March __, 1997
4
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT
Supplement to Statement of Additional Information
dated May 1, 1996
The Statement of Additional Information is supplemented by the addition of
updated financial information for the Account and HMLIC. The financial
statements of the Account for the fiscal year ended December 31, 1996, including
the auditor's report thereon, are incorporated herein by reference to the
Annual Report for the Account for that period. The 1996 Annual Report replaces
the 1995 Annual Report for the Account. Updated financial statements for HMLIC
for the period ended September 30, 1996 (unaudited) are included herein. The
financial statements for HMLIC are presented, but should be considered only as
bearing upon the ability of HMLIC to meet its obligations under the contracts.
Supplement dated March __, 1997
<PAGE>
Parts A and B of Post-Effective Amendment No. 57 under the Securities Act of
1933 and the Investment Company Act of 1940 are hereby incorporated by reference
into this Registration Statement.
6
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY 1996 ANNUAL REPORT
SEPARATE ACCOUNT
Statements of Net Assets
December 31, 1996
<TABLE>
<CAPTION>
Account Division
--------------------------------------------------------------------
Growth Income Balanced Short-Term
Fund Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C>
Investments in Horace Mann Funds at market value $ 320,843,802 $ 10,377,920 $ 286,974,808 $ 1,123,400
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 320,843,802 10,377,920 $ 286,974,808 $ 1,123,400
============================================================================================================================
NET ASSETS
Net Assets (Indefinite units authorized)
Active Contract Owners 319,081,594 10,340,675 286,302,495 1,123,400
Retired Contract Owners 1,762,208 37,245 672,313 -
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $ 320,843,802 $ 10,377,920 $ 286,974,808 $ 1,123,400
============================================================================================================================
Total units 13,503,527 817,803 15,151,785 112,004
Net unit value
(Net assets divided by total units held) $ 23.76 $ 12.69 18.94 10.03
Investments
Cost of investments $ 288,323,401 $ 10,541,854 $ 260,042,976 $ 1,159,055
Unrealized appreciation
(depreciation) of investments $ 32,520,401 $ (163,934) $ 26,931,832 $ (35,655)
Number of shares held in Horace Mann Funds 13,503,527 817,803 15,151,785 112,004
</TABLE>
See notes to the financial statements.
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT
Statements of Operations
For The Year Ended December 31, 1996
<TABLE>
<CAPTION>
Account Division
----------------------------------------------------------------
Growth Income Balanced Short-Term
Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income distribution $ 4,779,231 $ 612,558 $ 7,828,617 $ 45,861
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,779,231 612,558 7,828,617 45,861
- -----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Capital gain distribution 36,028,769 3,042 24,350,075 18
Net realized gain on sale of investments 2,651,655 20,208 3,218,666 1,178
Net unrealized appreciation (depreciation) on investments 16,330,705 (278,078) 7,539,257 (423)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 55,011,129 (254,828) 35,107,998 773
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $59,790,360 $ 357,730 $ 42,936,615 $ 46,634
===================================================================================================================================
</TABLE>
See notes to the financial statements.
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY 1996 ANNUAL REPORT
SEPARATE ACCOUNT
Statements of Changes in Net Assets
For The Year Ended December 31, 1996
<TABLE>
<CAPTION>
Account Division
--------------------------------------------------------------
Growth Income Balanced Short-Term
Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 4,779,231 $ 612,558 $ 7,828,617 $ 45,861
Capital gain distribution 36,028,769 3,042 24,350,075 18
Net realized gain on sale of investments 2,651,655 20,208 3,218,666 1,178
Net unrealized appreciation (depreciation) on investments 16,330,705 (278,078) 7,539,257 (423)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 59,790,360 357,730 42,936,615 46,634
- -----------------------------------------------------------------------------------------------------------------------------------
CONTRACT OWNERS' TRANSACTIONS
Gross stipulated payments received 42,594,385 1,145,206 33,980,802 122,775
Sales and administrative expenses (Note 1) (13,529) (338) (8,274) (12)
- -----------------------------------------------------------------------------------------------------------------------------------
Net consideration received on annuity contracts 42,580,856 1,144,868 33,972,528 122,763
Net transfer from fixed accumulation account 23,673,552 717,292 12,201,480 1,180,650
Transfers from (to) other Divisions 3,575,053 (744,792) (2,971,237) 140,976
Payments to Contract Owners (10,948,201) (1,062,633) (13,088,894) (1,309,998)
Mortality and expense risk charge (Note 1) (3,168,991) (139,714) (3,340,727) (11,289)
Annual maintenance charge (Note 1) (284,408) (4,873) (194,576) (700)
Surrender charges (Note 1) (105,435) (1,861) (83,377) (5,456)
Mortality guarantee adjustment (31,230) (2,921) (3,510) 0
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
contract owners' transactions 55,291,196 (94,634) 26,491,687 116,946
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 115,081,556 263,096 69,428,302 163,580
Net assets, beginning of year 205,762,246 10,114,824 217,546,506 959,820
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year $320,843,802 $10,377,920 $286,974,808 $ 1,123,400
===================================================================================================================================
</TABLE>
See notes to the financial statements.
48
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
ACCOUNT DIVISION
---------------------------------------------------
GROWTH INCOME BALANCED SHORT-TERM
FUND FUND FUND FUND
====================================================================================
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 4,321,284 $ 581,709 $ 6,975,918 $ 56,016
Capital gain distribution 12,543,651 -- 8,827,551 37
Net realized gain (loss)
on sale of investments 555,604 (1,301) 910,342 746
Net unrealized appreciation
(depreciation) on
investments 31,175,296 742,670 27,596,597 (3,350)
- ------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 48,595,835 1,323,078 44,310,408 53,449
- ------------------------------------------------------------------------------------
CONTRACT OWNERS' TRANSACTIONS
Gross stipulated payments
received 27,507,606 1,038,385 28,592,883 83,169
Sales and administrative
expenses (Note 1) (9,863) (342) (7,746) (9)
- ------------------------------------------------------------------------------------
Net consideration received
on annuity contracts 27,497,743 1,038,043 28,585,137 83,160
Net transfer from (to)
fixed accumulation account 8,066,147 (21,649) 4,507,963 443,707
Transfers from (to) other
Divisions 955,340 (401,445) (595,799) 41,904
Payments to Contract Owners (8,381,718) (662,283) (9,297,299) (690,035)
Mortality and expense risk
charge (Note 1) (1,973,187) (124,964) (2,435,173) (12,934)
Annual maintenance charge
(Note 1) (216,771) (6,761) (215,174) (775)
Surrender charges (Note 1) (60,931) (2,687) (70,315) (2,198)
Mortality guarantee
adjustment (48,901) 141 2,159 --
- ------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from Contract
owners' transactions 25,837,722 (181,605) 20,481,499 (137,171)
- ------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 74,433,557 1,141,473 64,791,907 (83,722)
NET ASSETS, BEGINNING OF
YEAR 131,328,689 8,973,351 152,754,599 1,043,542
- ------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR $205,762,246 $10,114,824 $217,546,506 $ 959,820
====================================================================================
</TABLE>
See notes to the financial statements.
49
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY 1996 ANNUAL REPORT
SEPARATE ACCOUNT
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1996
1. NATURE OF SEPARATE ACCOUNT -- Horace Mann Life Insurance Company Separate
Account ("the Account"), registered as a unit investment trust under the
Investment Company Act of 1940, is used to fund variable annuity contracts. All
assets of the Account are invested in shares of the Horace Mann Growth Fund,
Inc.("Growth Fund"), Horace Mann Income Fund, Inc. ("Income Fund"), Horace Mann
Balanced Fund, Inc. ("Balanced Fund") and Horace Mann Short-Term Investment
Fund, Inc. ("Short-Term Fund"). The funds collectively are referred to as the
"Funds".
Certain specified amounts, as described in the annuity contracts, are paid to
Horace Mann Life Insurance Company ("HMLIC") to cover death benefits, surrender
charges, sales and administrative expenses and maintenance charges. In addition,
an annual mortality risk charge up to .45% and expense risk charge up to .90% of
the net variable account value is deducted from the Contract Owner's account,
depending on year of issue of the contract.
2. SIGNIFICANT ACCOUNTING POLICIES -- The investments in the Funds are valued at
market (net asset value). The Account owns approximately 75%, 96%, 96% and 95%
of the Growth Fund, Income Fund, Balanced Fund and Short-Term Fund,
respectively. Distributions from the Funds are recorded on the ex-dividend
date. Realized gains and losses are determined on the basis of average cost of
shares owned for each Contract Owner.
3. FEDERAL INCOME TAXES -- Investment income of the Account is included in the
tax return of HMLIC; however, no tax accrues on income attributable to tax-
deferred annuities which comprise the majority of the Account contracts. Income
attributable to non tax-deferred annuities is not significant.
4. INVESTMENTS OF THE SEPARATE ACCOUNTS -- In 1983, HMLIC, through the Account,
purchased 10,000 shares of the Short-Term Fund. The investment income and
unrealized appreciation/depreciation resulting from this investment inures to
the benefit of HMLIC. As of December 31, 1996, the shares have a net asset
value of $100,300.
5. PURCHASE AND SALES OF HORACE MANN FUND SHARES -- During the year ended
December 31, 1996, purchases and proceeds from sales of Horace Mann Fund shares
were as follows:
<TABLE>
<CAPTION>
ACCOUNT DIVISION
-----------------------------------------------------------------------------------------
SHORT-TERM
GROWTH FUND INCOME FUND BALANCED FUND FUND
-----------------------------------------------------------------------------------------
Active Retired Active Retired Active Retired Active
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases $114,997,538 $286,764 $2,997,144 $2,180 $81,281,256 $125,312 $4,318,906
- ------------------------------------------------------------------------------------------------------------------
Sales $ 18,965,769 $219,337 $2,472,665 $5,693 $22,688,181 $ 48,008 $4,156,081
==================================================================================================================
</TABLE>
50
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT 1996 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS (CONCLUDED)
DECEMBER 31, 1996
6. CHANGE IN CONTRACT OWNERS' ACCOUNT UNITS
<TABLE>
<CAPTION>
ACCOUNT DIVISION
------------------------------------------------------------------------------------------------
SHORT-TERM
GROWTH FUND INCOME FUND BALANCED FUND FUND
------------------------------------------------------------------------------------------------
Active Retired Active Retired Active Retired Active
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Account units outstanding
at January 1, 1995 7,371,949 72,988 743,323 3,212 9,995,476 14,655 103,526
Consideration received 1,352,168 3,061 80,249 10 1,667,738 16,208 8,064
Dividend distributions 689,455 5,821 35,608 181 749,604 2,257 4,000
Net transfers 434,368 - (34,278) - 218,038 - 46,585
Payments to contract owners (419,798) (10,370) (51,822) (211) (576,249) (1,810) (66,193)
- ------------------------------------------------------------------------------------------------------------------------------
Account units outstanding
at December 31, 1995 9,428,142 71,500 773,080 3,192 12,054,607 31,310 95,982
Consideration received 1,777,764 2,667 87,719 - 1,766,863 2,771 12,016
Dividend distributions 1,563,400 9,230 38,746 171 1,515,269 3,901 3,777
Net transfers 1,135,533 - (2,458) - 480,686 - 128,861
Payments to contract owners (475,479) (9,230) (82,219) (428) (701,137) (2,485) (128,632)
- ------------------------------------------------------------------------------------------------------------------------------
Account units outstanding
at December 31, 1996 13,429,360 74,167 814,868 2,935 15,116,288 35,497 112,004
==============================================================================================================================
</TABLE>
<PAGE>
Independent Auditors' Report
The Contract Owners of Horace Mann
Life Insurance Company Separate
Account and the Board of Directors
of Horace Mann Life Insurance Company:
We have audited the accompanying statements of net assets of the Growth, Income,
Balanced, and Short-Term Fund Divisions within Horace Mann Life Insurance
Company Separate Account as of December 31, 1996, and the related statements of
operations for the year then ended and statements of changes in net assets for
each of the years in the two year period ended December 31, 1996. These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on theses financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned at December 31, 1996 by correspondence with the
Horace Mann Funds. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Growth, Income, Balanced,
and Short-Term Fund Divisions within Horace Mann Life Insurance Company Separate
Account as of December 31, 1996, and the results of their operations for the
year then ended and changes in their net assets for each of the years in the two
year period ended December 31, 1996, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Chicago, Illinois
January 24, 1997
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY
Statutory Statements of Admitted Assets,
Liabilities and Capital and Surplus
September 30, 1996 and 1995 Unaudited
<TABLE>
<CAPTION>
(In thousands)
- -----------------------------------------------------------------
ADMITTED ASSETS 1996 1995
- -----------------------------------------------------------------
Cash and investments:
<S> <C> <C>
Bonds $1,956,187 $1,838,248
Common stocks 6 1,445
Mortgage loans on real estate 56,398 91,873
Real estate 7,783 17,202
Policy loans 42,888 38,998
Cash 2,064 2,691
Short-term investments 15,977 26,931
Other invested assets 147 178
- -----------------------------------------------------------------
Total cash and investments 2,081,450 2,017,566
Life insurance premiums deferred
and uncollected 35,947 33,473
Accident and health premiums due
and unpaid 3,380 3,243
Investment income due and accrued 30,341 28,699
Federal income tax recoverable 70 445
Other assets 4,659 8,171
Variable annuity assets 613,269 442,374
- -----------------------------------------------------------------
Total admitted assets $2,769,116 $2,533,971
- -----------------------------------------------------------------
</TABLE>
1
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY
Statutory Statements of Admitted Assets,
Liabilities and Capital and Surplus
September 30, 1996 and 1995 Unaudited
<TABLE>
<CAPTION>
(In thousands, except share data)
- -----------------------------------------------------------------
Liabilities and Capital and Surplus 1996 1995
- -----------------------------------------------------------------
<S> <C> <C>
Policy liabilities:
Aggregate reserves:
Life and annuity $1,816,102 $1,762,548
Accident and health 21,342 22,541
Unpaid benefits:
Life 7,699 6,567
Accident and health 7,076 7,822
Policyholder funds on deposit 108,956 107,012
Policyholder dividends payable
in the following year 1,201 1,248
Provision for accident and health
experience rating refunds 105 -
Remittances not allocated 4,269 4,602
- -----------------------------------------------------------------
Total policy liabilities 1,966,750 1,912,340
Accrued expenses 1,220 1,982
Asset valuation reserve 27,012 26,978
Interest maintenance reserve 15,697 17,893
Other liabilities 9,906 6,823
Variable annuity liabilities 613,269 442,374
- -----------------------------------------------------------------
Total liabilities 2,633,854 2,408,390
- -----------------------------------------------------------------
Capital and surplus:
Capital stock, $1 par value.
Authorized 5,000,000 shares,
2,500,000 shares outstanding 2,500 2,500
Additional paid-in and contributed surplus 22,704 22,704
Special surplus fund - contingent
variable annuity reserve 625 625
Unassigned surplus 109,433 99,752
- -----------------------------------------------------------------
Total capital and surplus 135,262 125,581
- -----------------------------------------------------------------
Total liabilities and capital and surplus $2,769,116 $2,533,971
- -----------------------------------------------------------------
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
HORACE MANN LIFE INSURANCE COMPANY
Statutory Statements of Operations
For the Nine Months Ended September 30, 1996 and 1995
Unaudited
(In thousands)
=============================================================================
1996 1995
=============================================================================
<S> <C> <C>
Revenue:
Premiums, annuity and supplementary
contract considerations $254,215 $229,117
Net investment income 114,261 111,421
Amortization of interest maintenance
reserve 2,272 2,061
Other 339 345
=============================================================================
Total revenue 371,087 342,944
=============================================================================
Benefits and expenses:
Provisions for claims and benefits 209,719 216,220
Commissions 18,058 17,154
General and other expenses 117,707 79,629
=============================================================================
Total benefits and expenses 345,484 313,003
=============================================================================
Net gain before dividends to policyholders
and federal income tax 25,603 29,941
Dividends to policyholders 841 870
=============================================================================
Net gain before federal income tax 24,762 29,071
Federal income tax expense 12,040 9,878
=============================================================================
Net gain from operations 12,722 19,193
Realized investment gains (losses)
net of tax and transfers to IMR (375) (1,347)
=============================================================================
Net income $ 12,347 $ 17,846
=============================================================================
</TABLE>
3
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY
Statutory Statements of Capital and Surplus
For the Nine Months Ended September 30, 1996 and 1995
Unaudited
<TABLE>
<CAPTION>
(In thousands)
- --------------------------------------------------------------------------------
1996 1995
- --------------------------------------------------------------------------------
<S> <C> <C>
Capital Stock $ 2,500 $ 2,500
- --------------------------------------------------------------------------------
Additional paid-in capital and
contributed surplus 22,704 22,704
- --------------------------------------------------------------------------------
Special surplus fund-
contingent variable annuity reserve 625 625
- --------------------------------------------------------------------------------
Unassigned surplus:
Balance at beginning of year 108,009 96,922
Net income 12,347 17,846
Change in net unrealized capital
gains (losses) 321 931
Change in non-admitted assets (1) 445
Change in asset valuation reserves 757 (392)
Dividends to parent (12,000) (16,000)
- --------------------------------------------------------------------------------
Balance at end of year 109,433 99,752
- --------------------------------------------------------------------------------
Total capital and surplus $135,262 $125,581
- --------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY
Statutory Statements of Cash Flow
For the Nine Months Ended September 30, 1996 and 1995
Unaudited
<TABLE>
<CAPTION>
(In thousands)
- -------------------------------------------------------------
1996 1995
- -------------------------------------------------------------
<S> <C> <C>
Cash provided:
From operations:
Revenue received:
Premiums, considerations
and deposits $254,885 $230,335
Investment income received 115,126 112,834
Other income received 339 345
- -------------------------------------------------------------
Total revenue received 370,350 343,514
- -------------------------------------------------------------
Benefits and expenses paid:
Claims, benefits and
net transfers paid 258,596 202,273
Expenses paid 55,050 53,863
Dividends to policyholders paid 925 960
Federal income taxes paid 8,911 11,856
Net increase in policy loans 2,992 2,389
- -------------------------------------------------------------
Total benefits and expenses paid 326,474 271,341
- -------------------------------------------------------------
Net cash from operations 43,876 72,173
- -------------------------------------------------------------
From investments sold or matured:
Bonds 704,779 853,772
Common stock 1,554 538
Mortgage loans 25,275 21,165
Real estate and other 3,339 2,132
- -------------------------------------------------------------
Total investment proceeds 734,947 877,607
Tax on capital gains (losses) (261) 5,354
- -------------------------------------------------------------
Other cash provided 12,909 4,797
- -------------------------------------------------------------
Total cash provided $791,471 $959,931
- -------------------------------------------------------------
</TABLE>
5
<PAGE>
HORACE MANN LIFE INSURANCE COMPANY
Statutory Statements of Cash Flow
For the Nine Months Ended September 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
(In thousands)
- ------------------------------------------------------------------------------
1996 1995
- ------------------------------------------------------------------------------
<S> <C> <C>
Cash applied:
For investments acquired:
Bonds $787,700 $916,312
Mortgage loans 561 495
Real estate 439 555
Other Invested Assets 44 75
- ------------------------------------------------------------------------------
Total investments acquired 788,744 917,437
- ------------------------------------------------------------------------------
Dividends to parent 12,000 16,000
Other applications 824 4,846
- ------------------------------------------------------------------------------
Total cash applied 801,568 938,283
- ------------------------------------------------------------------------------
Net change in cash and
short-term investments (10,097) 21,648
Cash and short-term investments
at beginning of year 28,138 7,975
- ------------------------------------------------------------------------------
Cash and short-term investments
at end of year $ 18,041 $ 29,623
- ------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
PART C
OTHER INFORMATION
HORACE MANN LIFE INSURANCE COMPANY SEPARATE ACCOUNT
Item 24. Financial Statements and Exhibits
- -------------------------------------------
(a) Financial Statements
-------------------------
Part A
Condensed financial information of the Account
Part B
Financial statements of the Account:
-Report of Independent Auditors
-Statements of Net Assets - December 31, 1996
-Statements of Operations - For the Year Ended
December 31, 1996
-Statements of Changes in Net Assets
-For the Year Ended December 31, 1996
-Statements of Changes in
Net Assets For the Year Ended December 31, 1995
-Notes to Financial Statements - December 31, 1996
Financial statements for Horace Mann Life Insurance Company:
-Report of Independent Auditors
-Statutory Statements of Admitted Assets, Liabilities
and Capital and Surplus - As of December 31, 1995 and
1994 and September 30, 1996 and 1995 (unaudited)
-Statutory Statements of Operations - For the Years Ended
December 31, 1995, 1994 and 1993 and the nine months
ended September 30, 1996 and 1995 (unaudited)
-Statutory Statements of Capital and Surplus - For the
Years Ended December 31, 1995, 1994 and 1993 and the nine months
ended September 30, 1996 and 1995 (unaudited)
-Statutory Statements of Cash Flow - For the Years
Ended December 31, 1995, 1994 and 1993 and the nine months
ended September 30, 1996 and 1995 (unaudited)
-Notes to Statutory Financial Statements - December 31,
1995, 1994 and 1993
<TABLE>
<CAPTION>
(b) Exhibits Filed
- ------------- -----
<S> <C>
( 1) Resolution of Board of Directors............................ Post-Effective Amendment #37
( 2) Agreements for custody.................................................... Not Applicable
( 3) Underwriting Agreement...................................... Post-Effective Amendment #37
( 4) Form of Variable Annuity Contract........................... Post-Effective Amendment #37
( 5) Form of application......................................... Post-Effective Amendment #38
( 6) Certificate of incorporation and bylaws................... Initial Registration Statement
( 7) Contract of Reinsurance................................................... Not Applicable
( 8) Other Contracts............................................. Post-Effective Amendment #37
( 9) Opinion and Consent of Counsel............................................ Not Applicable
(10) Consent of Independent Auditors................................................. Herewith
</TABLE>
C-1
<PAGE>
<TABLE>
<S> <C>
(11) Financial Statement Schedules for
Horace Mann Life Insurance Company
and the Independent Auditors' Report
thereon..................................................... Post-Effective Amendment #57
(12) Agreement regarding initial capital....................... Initial Registration Statement
(13) Performance Quotation Computations.......................... Post-Effective Amendment #57
(14) Power of Attorney......................................................... Not Applicable
(15) Horace Mann Educators Corporation
and its Subsidiaries........................................ Post-Effective Amendment #57
(16) Financial Data Schedule................................................... Herewith
</TABLE>
Item 25. Directors and Officers of the Depositor
- -------------------------------------------------
The directors and officers of Horace Mann Life Insurance Company, who are
engaged directly or indirectly in activities relating to the registrant or the
variable annuity contracts offered by the registrant, are listed below. Their
principal business address is One Horace Mann Plaza, Springfield, Illinois
62715.
<TABLE>
<CAPTION>
Name Position & Office with Depositor
- ---- --------------------------------
<S> <C>
Larry K. Becker Director and Executive Vice President & Chief Financial Officer
Gerald F. Bonnett Director and Senior Vice President
Ann M. Caparros Director, Vice President, General Counsel & Corporate Secretary
H. Albert Inkel Director
Paul J. Kardos Director and President & Chief Executive Officer
Edward L. Najim Director and Executive Vice President
George J. Zock Director and Senior Vice President & Treasurer
A. Thomas Arisman Senior Vice President
Roger W. Fisher Vice President & Controller
John H. Leitermann Vice President & Life Actuary
</TABLE>
Item 26. Controlled by or Under Common Control with the Depositor or Registrant
- --------------------------------------------------------------------------------
The Registrant is a separate account of Horace Mann Life Insurance Company.
Horace Mann Life Insurance Company is a wholly owned subsidiary of Allegiance
Life Insurance Company. Allegiance Life Insurance Company and Horace Mann
Investors, Inc., principal underwriter of the Registrant, are wholly-owned
subsidiaries of Horace Mann Educators Corporation, a publicly held corporation.
See Exhibit No. 15.
Item 27. Number of Contract Owners
- -----------------------------------
As of December 20, 1996, the number of Contract Owners of Horace Mann Life
Insurance Company Separate Account was 47,699 of which 45,808 were qualified
Contract Owners and 1,891 were non-qualified Contract Owners.
C-2
<PAGE>
Item 28. Indemnification
- -------------------------
Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
Item 29. Principal Underwriters
- --------------------------------
Horace Mann Investors, Inc., the underwriter of Horace Mann Life Insurance
Company Separate Account, acts as principal underwriter for Horace Mann Life
Insurance Company Separate Account B and Horace Mann Life Insurance Company
Allegiance Separate Account A.
The following are the directors and officers of Horace Mann Investors, Inc.
Their principal business is One Horace Mann Plaza, Springfield, Illinois
62716.
Name Position with Underwriter
- ---- -------------------------
A. Thomas Arisman Director and President
Larry K. Becker Director
Ann M. Caparros Secretary
Roger W. Fisher Controller
William J. Kelly Treasurer
Diane M. Barnett Tax Compliance Officer
Richard D. Wilson Marketing Officer
George J. Zock Director
The following is a listing of the commissions and other compensation
received by the principal underwriter from the Registrant during the fiscal year
ended December 31, 1996:
<TABLE>
<CAPTION>
Net Underwriting Compensation on
Name of Principal Discounts and Redemption or Brokerage
Underwriter Commissions Annuitization Commissions Compensation
- ----------------- ---------------- --------------- ----------- ------------
<S> <C> <C> <C> <C>
Horace Mann $3,879,547
Investors, Inc.
</TABLE>
C-3
<PAGE>
Item 30. Location of Accounts and Records
- -------------------------------------------
Horace Mann Investors, Inc., underwriter of the Registrant, is located at
One Horace Mann Plaza, Springfield, Illinois 62715. It maintains those accounts
and records required to be maintained pursuant to Section 31(a) of the
Investment Company Act and the rules promulgated thereunder.
Horace Mann Life Insurance Company, the depositor, is located at One Horace
Mann Plaza, Springfield, Illinois 62715. It maintains those accounts and
records required to be maintained pursuant to Section 31(a) of the Investment
Company Act of 1940 and the rules promulgated thereunder.
Item 31. Management Services
- -----------------------------
Not applicable.
Item 32. Undertakings
- ----------------------
(a) Registrant undertakes to file a Post-Effective Amendment to this
Registration Statement as frequently as is necessary to ensure that the audited
financial statements in the Registration Statement are never more than 16 months
old for so long as payments under variable annuity Contracts may be accepted.
(b) Registrant undertakes to include a written communication in the
Prospectus that the applicant can remove to send for a Statement of Additional
Information.
(c) Registrant undertakes to deliver any Statement of Additional
Information and any financial statements required to be made available under
this Form N-4 promptly upon written or oral request.
(d) Horace Mann Life Insurance Company and the Registrant are relying on a
no-action letter from the Securities and Exchange Commission that was issued to
the American Council of Life Insurance and made publicly available on November
28, 1988. That letter outlines conditions that must be met if a company offering
registered annuity contracts imposes the limitations on surrenders and
withdrawals on section 403(b) contracts as required by the Internal Revenue
Code. Horace Mann Life Insurance Company and the Registrant are in compliance
with the conditions of that no-action letter.
(e) Registrant represents that the fees and charges deducted under the
Variable Annuity Contract in the aggregrate are reasonable in relation to the
services rendered, the expenses expected to be incurred, and the risks assumed
by the insurance company.
C-4
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant has duly caused this Registration Statement to be signed on
its behalf by the undersigned, thereto duly authorized in the City of
Springfield and State of Illinois, on this 27th day of February, 1997.
HORACE MANN INSURANCE COMPANY SEPARATE ACCOUNT
By: Horace Mann Life Insurance Company
-----------------------------------
(Depositor)
Attest: s/ANN M. CAPARROS By: s/PAUL J. KARDOS
--------------------------- ----------------------------
Ann M. Caparros Paul J. Kardos, President and Chief
Corporate Secretary Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this Post-
Effective Amendment to the Registration Statement has been signed below by the
following persons in the capacities and on the date indicated.
SIGNATURE TITLE DATE
--------- ----- ----
s/PAUL J. KARDOS Director, President and February 27, 1997
- ---------------------- -----------------
Paul J. Kardos Chief Executive Officer
Director, Executive Vice
s/LARRY K. BECKER President and Chief February 27, 1997
- ---------------------- -----------------
Larry K. Becker Financial Officer
s/GERARD F. BONNETT Director and Senior Vice February 27, 1997
- ---------------------- -----------------
Gerard F. Bonnett President
Director, Vice President,
s/ANN M. CAPARROS General Counsel and February 27, 1997
- ---------------------- -----------------
Ann M. Caparros Corporate Secretary
Vice President, Controller
s/ROGER W. FISHER and Principal Accounting February 27, 1997
- ---------------------- -----------------
Roger W. Fisher Officer
s/E. ALBERT INKEL Director February 27, 1997
- ---------------------- -----------------
E. Albert Inkel
C-5
<PAGE>
SIGNATURE TITLE DATE
--------- ----- ----
s/EDWARD L. NAJIM Director February 27, 1997
- ---------------------- -----------------
Edward L. Najim
s/GEORGE J. ZOCK Director February 27, 1997
- ---------------------- -----------------
George J. Zock
s/JOHN H. LEITERMANN Vice President and Life February 27, 1997
- ---------------------- Actuary ----------------
John H. Leitermann
C-6
<PAGE>
EXHIBIT 10
INDEPENDENT AUDITORS' CONSENT
-----------------------------
The Board of Directors
Horace Mann Life Insurance Company
We consent to the use of our audit reports on the financial statements of Horace
Mann Life Insurance Company as of December 31, 1995 and 1994, and for each of
the years in the three year period ended December 31, 1995, incorporated herein
by reference and to the reference to our firm under the heading "Financial
Statements" in the Registration Statement and Prospectus for Horace Mann Life
Insurance Company Separate Account.
Our report dated February 16, 1996, contains an explanatory paragraph which
states that the financial statements are presented in conformity with accounting
practices prescribed or permitted by the Insurance Department of the State of
Illinois. These practices differ in some respects from generally accepted
accounting principles. The financial statements do not include any adjustments
that might result from the differences.
/S/ KPMG PEAT MARWICK LLP
Chicago, Illinois
February 28, 1997
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 01
<NAME> HMLIC SEPARATE ACCOUNT--INCOME FUND
<CAPTION>
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-START> JAN-01-1996 JAN-01-1995
<PERIOD-END> DEC-31-1996 DEC-31-1995
<INVESTMENTS-AT-COST> 10,541,854 10,000,680
<INVESTMENTS-AT-VALUE> 10,377,920 10,114,824
<RECEIVABLES> 0 0
<ASSETS-OTHER> 0 0
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 10,377,920 10,114,824
<PAYABLE-FOR-SECURITIES> 0 0
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 0 0
<TOTAL-LIABILITIES> 0 0
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 0 0
<SHARES-COMMON-STOCK> 0 0
<SHARES-COMMON-PRIOR> 0 0
<ACCUMULATED-NII-CURRENT> 0 0
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 0 0
<OVERDISTRIBUTION-GAINS> 0 0
<ACCUM-APPREC-OR-DEPREC> 0 0
<NET-ASSETS> 10,377,920 10,114,824
<DIVIDEND-INCOME> 612,558 581,709
<INTEREST-INCOME> 0 0
<OTHER-INCOME> 0 0
<EXPENSES-NET> 0 0
<NET-INVESTMENT-INCOME> 612,558 581,709
<REALIZED-GAINS-CURRENT> 23,250 (1,301)
<APPREC-INCREASE-CURRENT> (278,078) 742,670
<NET-CHANGE-FROM-OPS> 357,730 1,323,078
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 0
<DISTRIBUTIONS-OF-GAINS> 0 0
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 0 0
<NUMBER-OF-SHARES-REDEEMED> 0 0
<SHARES-REINVESTED> 0 0
<NET-CHANGE-IN-ASSETS> 0 0
<ACCUMULATED-NII-PRIOR> 0 0
<ACCUMULATED-GAINS-PRIOR> 0 0
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 0 0
<GROSS-ADVISORY-FEES> 0 0
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 0 0
<AVERAGE-NET-ASSETS> 0 0
<PER-SHARE-NAV-BEGIN> 0 0
<PER-SHARE-NII> 0 0
<PER-SHARE-GAIN-APPREC> 0 0
<PER-SHARE-DIVIDEND> 0 0
<PER-SHARE-DISTRIBUTIONS> 0 0
<RETURNS-OF-CAPITAL> 0 0
<PER-SHARE-NAV-END> 0 0
<EXPENSE-RATIO> 0 0
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 02
<NAME> HMLIC SEPARATE ACCOUNT--BALANCED FUND
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-START> JAN-01-1996 JAN-01-1995
<PERIOD-END> DEC-31-1996 DEC-31-1995
<INVESTMENTS-AT-COST> 260,042,976 198,153,931
<INVESTMENTS-AT-VALUE> 286,974,808 217,546,506
<RECEIVABLES> 0 0
<ASSETS-OTHER> 0 0
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 286,974,808 217,546,506
<PAYABLE-FOR-SECURITIES> 0 0
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 0 0
<TOTAL-LIABILITIES> 0 0
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 0 0
<SHARES-COMMON-STOCK> 0 0
<SHARES-COMMON-PRIOR> 0 0
<ACCUMULATED-NII-CURRENT> 0 0
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 0 0
<OVERDISTRIBUTION-GAINS> 0 0
<ACCUM-APPREC-OR-DEPREC> 0 0
<NET-ASSETS> 286,974,808 217,546,506
<DIVIDEND-INCOME> 7,828,617 6,975,918
<INTEREST-INCOME> 0 0
<OTHER-INCOME> 0 0
<EXPENSES-NET> 0 0
<NET-INVESTMENT-INCOME> 7,828,617 6,975,918
<REALIZED-GAINS-CURRENT> 27,568,741 9,737,893
<APPREC-INCREASE-CURRENT> 7,539,257 27,596,597
<NET-CHANGE-FROM-OPS> 42,936,615 44,310,408
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 0
<DISTRIBUTIONS-OF-GAINS> 0 0
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 0 0
<NUMBER-OF-SHARES-REDEEMED> 0 0
<SHARES-REINVESTED> 0 0
<NET-CHANGE-IN-ASSETS> 0 0
<ACCUMULATED-NII-PRIOR> 0 0
<ACCUMULATED-GAINS-PRIOR> 0 0
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 0 0
<GROSS-ADVISORY-FEES> 0 0
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 0 0
<AVERAGE-NET-ASSETS> 0 0
<PER-SHARE-NAV-BEGIN> 0 0
<PER-SHARE-NII> 0 0
<PER-SHARE-GAIN-APPREC> 0 0
<PER-SHARE-DIVIDEND> 0 0
<PER-SHARE-DISTRIBUTIONS> 0 0
<RETURNS-OF-CAPITAL> 0 0
<PER-SHARE-NAV-END> 0 0
<EXPENSE-RATIO> 0 0
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 03
<NAME> HMLIC SEPARATE ACCOUNT--SHORT-TERM FUND
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-START> JAN-01-1996 JAN-01-1995
<PERIOD-END> DEC-31-1996 DEC-31-1995
<INVESTMENTS-AT-COST> 1,159,055 995,052
<INVESTMENTS-AT-VALUE> 1,123,400 959,820
<RECEIVABLES> 0 0
<ASSETS-OTHER> 0 0
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 1,123,400 959,820
<PAYABLE-FOR-SECURITIES> 0 0
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 0 0
<TOTAL-LIABILITIES> 0 0
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 0 0
<SHARES-COMMON-STOCK> 0 0
<SHARES-COMMON-PRIOR> 0 0
<ACCUMULATED-NII-CURRENT> 0 0
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 0 0
<OVERDISTRIBUTION-GAINS> 0 0
<ACCUM-APPREC-OR-DEPREC> 0 0
<NET-ASSETS> 1,123,400 959,820
<DIVIDEND-INCOME> 45,861 56,016
<INTEREST-INCOME> 0 0
<OTHER-INCOME> 0 0
<EXPENSES-NET> 0 0
<NET-INVESTMENT-INCOME> 45,861 56,016
<REALIZED-GAINS-CURRENT> 1,196 783
<APPREC-INCREASE-CURRENT> (423) (3,350)
<NET-CHANGE-FROM-OPS> 46,634 53,449
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 0
<DISTRIBUTIONS-OF-GAINS> 0 0
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 0 0
<NUMBER-OF-SHARES-REDEEMED> 0 0
<SHARES-REINVESTED> 0 0
<NET-CHANGE-IN-ASSETS> 0 0
<ACCUMULATED-NII-PRIOR> 0 0
<ACCUMULATED-GAINS-PRIOR> 0 0
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 0 0
<GROSS-ADVISORY-FEES> 0 0
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 0 0
<AVERAGE-NET-ASSETS> 0 0
<PER-SHARE-NAV-BEGIN> 0 0
<PER-SHARE-NII> 0 0
<PER-SHARE-GAIN-APPREC> 0 0
<PER-SHARE-DIVIDEND> 0 0
<PER-SHARE-DISTRIBUTIONS> 0 0
<RETURNS-OF-CAPITAL> 0 0
<PER-SHARE-NAV-END> 0 0
<EXPENSE-RATIO> 0 0
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 04
<NAME> HMLIC SEPARATE ACCOUNT--GROWTH FUND
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-START> JAN-01-1996 JAN-01-1995
<PERIOD-END> DEC-31-1996 DEC-31-1995
<INVESTMENTS-AT-COST> 288,323,401 189,572,550
<INVESTMENTS-AT-VALUE> 320,843,802 205,762,246
<RECEIVABLES> 0 0
<ASSETS-OTHER> 0 0
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 320,843,802 205,762,246
<PAYABLE-FOR-SECURITIES> 0 0
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 0 0
<TOTAL-LIABILITIES> 0 0
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 0 0
<SHARES-COMMON-STOCK> 0 0
<SHARES-COMMON-PRIOR> 0 0
<ACCUMULATED-NII-CURRENT> 0 0
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 0 0
<OVERDISTRIBUTION-GAINS> 0 0
<ACCUM-APPREC-OR-DEPREC> 0 0
<NET-ASSETS> 320,843,802 205,762,246
<DIVIDEND-INCOME> 4,779,231 4,321,284
<INTEREST-INCOME> 0 0
<OTHER-INCOME> 0 0
<EXPENSES-NET> 0 0
<NET-INVESTMENT-INCOME> 4,779,231 4,321,284
<REALIZED-GAINS-CURRENT> 38,680,424 13,099,255
<APPREC-INCREASE-CURRENT> 16,330,705 31,175,296
<NET-CHANGE-FROM-OPS> 59,790,360 48,595,835
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 0
<DISTRIBUTIONS-OF-GAINS> 0 0
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 0 0
<NUMBER-OF-SHARES-REDEEMED> 0 0
<SHARES-REINVESTED> 0 0
<NET-CHANGE-IN-ASSETS> 0 0
<ACCUMULATED-NII-PRIOR> 0 0
<ACCUMULATED-GAINS-PRIOR> 0 0
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 0 0
<GROSS-ADVISORY-FEES> 0 0
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 0 0
<AVERAGE-NET-ASSETS> 0 0
<PER-SHARE-NAV-BEGIN> 0 0
<PER-SHARE-NII> 0 0
<PER-SHARE-GAIN-APPREC> 0 0
<PER-SHARE-DIVIDEND> 0 0
<PER-SHARE-DISTRIBUTIONS> 0 0
<RETURNS-OF-CAPITAL> 0 0
<PER-SHARE-NAV-END> 0 0
<EXPENSE-RATIO> 0 0
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0
</TABLE>
