SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20509
FORM
N-8B-2
REGISTRATION STATEMENT OF UNIT INVESTMENT TRUSTS
*
WHICH ARE CURRENTLY ISSUING SECURITIES
PURSUANT TO SECTION 8 (B) OF THE
INVESTMENT COMPANY ACT OF 1940
CONSECO VARIABLE INSURANCE COMPANY
SEPARATE ACCOUNT L
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11825 N. Pennsylvania Street
Carmel, Indiana 46032
(NAME OF UNIT INVESTMENT TRUST)
*Registrant is not currently issuing securities but proposes to do so as
soon as practicable after the effective date of its Registration Statement
on Form S-6 which is being filed concurrently with this Registration
Statement.
I. ORGANIZATION AND GENERAL INFORMATION
(1) (a) Furnish the name of the trust and the Internal Revenue Service Employer
Identification Number.
Conseco Variable Insurance Separate Account L ("Separate Account")
IRS Employer Identification Number: N/A
(b) Furnish title of each class or series of securities issued by the
trust.
Flexible Premium Variable Universal Life Insurance Policies ("Policy" or
"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.
Conseco Variable Insurance Company ("Company")
11825 N. Pennsylvania Avenue
Carmel, Indiana 46032-4572
IRS Employer Identification Number: 75-0300900
(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 or series of securities each
custodian or trustee in 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.
The Policy is not currently being distributed. When such distribution
commences, Conseco Equity Sales, Inc. will be the "Principal Underwriter."
<PAGE>
Conseco Equity Sales, Inc.
11825 N. Pennsylvania Avenue
Carmel, Indiana 46032-4572
IRS Employer Identification Number: 75-1301573
(5) Furnish name of state or sovereign power, the laws of which govern with
respect to the organization of the trust.
Texas
(6) (a) Furnish the dates of execution and termination of any indenture or
agreement currently in effect under the terms of which the trust was
organized and issued or proposes to issue securities.
The Separate Account was established pursuant to a resolution of the
Board of Directors of the Company on February 22, 2000. The Separate
Account will continue in existence until its complete liquidation and
the distribution of its assets to the persons entitled to receive them.
(b) Furnish the dates of execution and termination of any 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.
See response to Item 6 (a), above.
(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
been changed, so state.
The Separate Account has never been known by any other name.
(8) State the date on which the fiscal year of the trust ends.
The fiscal year of the Separate Account ends on December 31.
(9) MATERIAL LITIGATION. 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 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 governmental authority or any such proceeding or legal
proceeding known to be contemplated by a governmental authority. Include
any proceeding which, altogether immaterial itself, is representative of,
or one of, a group which the aggregate is material.
There are no material legal proceedings to which the Separate Account or
the Principal Underwriter is a party. The Company is routinely engaged in
various kinds of litigation incidental to the business of insurance, which
in its judgment are not of material importance in relation to the total
capital and surplus of the Company or the Separate Account.
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 Policy issued is of the registered type insofar as the Policy is
personal to the Owner and the records concerning the Owner are maintained
by the Company.
(b)Whether the securities are of the cumulative or distributive type.
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The Policies are of the cumulative type.
(c)The rights of the security holders with respect to withdrawal or redemption.
TOTAL SURRENDERS
A total surrender occurs when there is a full surrender of the policy's cash
surrender value.
o The surrender charge and the pro-rata surrender charge compensate us
for the costs associated with the sale, underwriting, and issue of the
policy.
o The surrender charge is the actual first-year premium paid up to the
surrender charge premium, multiplied by the percentage found in the
surrender charge schedule. The surrender charge premium is a multiple
of the Target Premium for the base policy. The surrender charge
schedule is a 10-year schedule from the date of issue of the segment
of insurance, with the percentage varying by month. The percentages in
the surrender charge schedule may vary by issue age.
o The surrender charge is based on the specified amount and will never
be greater than the maximum surrender charge shown on your schedule
pages. The maximum surrender charge varies by the specified amount,
issue age, and risk class.
o We guarantee that the surrender charge rates will not increase.
o There is no surrender charge on the initial specified amount after 10
policy years.
o Each increase of our policy's specified amount will carry its own
10-year schedule of surrender charges.
FREE PARTIAL WITHDRAWALS
The policy has a free partial withdrawal provision. This feature allows you to
withdraw a portion of the accumulation value without a surrender charge after
the first policy year.
o For Death Benefit Option A, the free partial surrender percentage is
equal to 10% of the accumulation value less prior withdrawals made in
the policy year, with a minimum withdrawal of $500, each policy year
beginning at the end of the first year.
o Any surrender charge that is not assessed still remains, and the
remaining charge is based on the remaining specified amount.
o The free amount applies to Death Benefit Option A only.
o The free amount does not apply to Options B and C as the face amount
is not reduced for these options.
o The free amount is 10% of the accumulation value each year after the
first year.
o You may take the free amount in more than one withdrawal.
o The remaining free amount at any time is 10% of the accumulation value
less the amount of free withdrawals taken to date in that policy year.
o You cannot carry over the free amount if you do not use it in any
given year.
o The remaining surrender charge is not reduced by a free partial
withdrawal.
WITHDRAWAL IN EXCESS OF THE FREE PARTIAL WITHDRAWAL
A Withdrawal in excess of the free partial withdrawal occurs when a partial
withdrawal is taken in excess of the free partial surrender percentage.
o If you withdraw money in excess of the free partial surrender
percentage, we will assess a surrender charge. This charge depends on
your initial specified amount, the premiums paid, the year of
surrender, issue age, sex, rate class, and specified amount band.
o If a partial surrender of cash surrender value is taken in excess of
the free partial withdrawal amount that causes a decrease in the
specified amount, a surrender charge is assessed. The surrender charge
assessed is a pro-rata portion of the surrender charge based on the
specified amount reduction. The pro-rata surrender charge is
calculated the same way as for a requested decrease.
(d)The rights of the security holders with respect to conversion, transfer,
partial redemption, and similar matters.
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TRANSFERS
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After making your original investment choices, you can transfer money to or from
the fixed account and to or from any investment portfolio. Transfer requests
must be in writing, or via telephone or the internet if we have appropriate
authorization. Here are the rules for transferring money among the accounts:
TRANSFERS FROM ANY INVESTMENT PORTFOLIO INTO THE FIXED ACCOUNT OR AMONG THE
INVESTMENT PORTFOLIOS
o Currently there are no limits imposed on the number of transfers.
o You can make up to 12 transfers each policy year without paying a
transfer fee.
o You may be required to pay a $25 transfer fee for every transfer after
the twelfth. Currently there is no transfer charge for all transfers.
o The minimum transfer amount is $100 or the entire remaining balance of
an investment portfolio. The $100 minimum does not apply if transfers
are made pursuant to Dollar Cost Averaging, Asset Rebalancing, or at
the end of a Free Look period.
TRANSFERS FROM THE FIXED ACCOUNT INTO THE INVESTMENT PORTFOLIOS
o You can make only one such transfer each policy year.
o Fees for transfer are discussed above.
o The maximum amount you can transfer is the maximum of $500 or 25% of
the fixed account value.
o There may be additional limits on transfers out of the fixed accounts
imposed by special service agreements on some deposits.
YOUR RIGHTS TO MAKE TRANSFERS
o Your right to make transfers is subject to modification if we
determine, in our sole opinion that the exercise of the right by one
or more owners is, or would be, to the disadvantage of other owners.
In any such case, restrictions may be applied in any manner reasonably
designed to prevent any use of the transfer right, which is considered
by us to be to the disadvantage of the owners.
o A modification could be applied to transfers to, or from, one or more
of the investment portfolios and could include, but is not limited to
(1) the requirement of a minimum time period between each transfer,
(2) not accepting a transfer request from an agent under a power of
attorney on behalf of more than one owner, or (3) limiting the dollar
amount that may be transferred among investment portfolios at any one
time.
o We reserve the right, at any time, and without written notice to any
party, to terminate, suspend or modify the transfer privilege.
(e)If the trust is the issuer of periodic payment plan certificates, the
substance of the provisions of any indenture or agreement with respect to lapses
or defaults by security holders in making principal payments, and with the
respect to reinstatement.
GRACE PERIOD
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Your Conseco Variable Universal Life Policy includes a feature known as the
Grace Period. Your policy will stay in force as long as the accumulated value is
sufficient to pay the monthly deductions. We will mail you a notice if the cash
surrender value is not enough to pay the deductions. This notice will specify
the premium required to keep the policy in force. You will have 61 days from the
time the notice is mailed to you to send to us the required payment. This is
called the Grace Period.
If you do not send in the required payment your policy will lapse. You may be
able to reinstate the policy within 5 years of the after the end of the grace
period if the insureds are still alive. The reinstate privilege is subject to
our underwriting rules.
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NO-LAPSE GUARANTEE
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Your Conseco Variable Universal Life Policy includes a feature known as the
no-lapse guarantee. This feature relates to the Grace Period.
You will be told what the no-lapse guarantee premium is for your policy. On each
monthly anniversary, during the first five years you own the policy, we will
test to make sure that the total premiums paid less loans and loan interest, is
greater than the cumulative, no-lapse guarantee premium requirement. If the test
is satisfied, your policy will not lapse, even if the Cash Surrender Value is
less than the monthly policy deductions.
The purpose of the no-lapse guarantee feature is to protect you from the cash
surrender value of your policy during the early years being insufficient to pay
the monthly policy deductions.
If your policy lapses and you reinstate it within the first five policy years,
you will be able to reinstate this provision.
(f)The substance of the provisions of any indenture or agreement with respect to
voting rights, together with the names of any persons other than the 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.
The underlying securities of the Separate Account are shares of mutual funds
issued by: Berger Institutional Products Trust, Conseco Series Trust, The Alger
American Fund, American Century Variable Portfolios, Inc., The Dreyfus Socially
Responsible Growth Fund, Inc., Dreyfus Stock Index Fund, Dreyfus Variable
Investment Fund, Federated Insurance Series, INVESCO Variable Investment Funds,
Inc., Janus Aspen Series, Lazard Retirement Series, Inc., Lord Abbott Series
Trust, Mitchell Hutchins Series Trust, Neuberger Berman Advisers Management
Trust, Rydex Variable Trust, Seligman Portfolios, Strong Opportunity Fund II,
Inc., Strong Variable Insurance Funds, Inc. and Van Eck Worldwide Insurance
Trust, together, the Funds.
The Company will vote the shares held in the Separate Account in accordance with
instructions received from persons having a voting interest in the Separate
Account. The Company will vote shares for which it has not received instructions
in the same proportion as it votes shares for which it has received
instructions. The Company will vote shares it owns in the same proportion as it
votes shares for which it has received instructions.
(g)Whether security holders must be given notice of any change in:
(1) the composition of the assets of the trust;
Notice must be given of any such proposed change.
(2) the terms and conditions of the securities issued by the trust;
Notice must be given of any such proposed change.
(3) the provisions of any indenture or agreement of the trust;
Notice must be given of any such proposed change.
(4) the identity of the depositor, trustee or custodian;
There is no provision requiring notice to or consent of Owners with respect to
any change in the identity of the Separate Account's depositor. The Company's
obligations under the Policy, however, cannot be transferred to any other entity
without notice to the Owner.
(h)Whether the consent of the 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 owners is not required when substituting the underlying
securities of the Separate Account. However, to substitute such securities,
approval of the Securities and Exchange
<PAGE>
Commission is required in compliance with Section 26(b) of the Investment
Company Act of 1940. The Company may, however, add additional Sub-Accounts
without the consent of Owners. 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 Owners without their consent.
(2) the terms and conditions of the securities Issued by the trust;
No change in the terms and conditions of the Policy can be made without the
consent of the owners except as required by federal or state law or
regulation.
(3) the provisions of any indenture or agreement of the trust;
Not Applicable
(4) the identity of the depositor, trustee, or custodian;
There is no provision regarding notice to or consent of Owners with respect
to any change in the identity in the Separate Account's depositor. The
Company's obligations under the Policy, however, cannot be transferred to
any other entity without compliance with state insurance law, which may
under some circumstances, require the owner's consent.
(i)Any other principal feature of the securities issued by the trust or any
other principal right, privilege or obligation not covered by subdivisions
(a) to (g) or by any other item in this form.
In return for the payment of premiums, the Policy provides insurance
coverage on the life of the insured. The Policy provides for the right to
borrow from the Company using the Policy's cash Value as collateral.
INFORMATION CONCERNING THE SECURITIES UNDERLYING THE TRUST'S SECURITIES
(11) Describe briefly the kind or type of securities comprising the unit of
specified securities in which security holders have an interest.
The securities held in the Separate Account will be shares of the Mutual
Funds available. All Mutual Funds are open-end, management investment
companies of the series type.
(12) If the trust is the issuer of periodic payment plan certificates and if any
underlying securities were issued by another investment company, furnish
the following information for each such company,
(a) Name of other investment companies. Berger Institutional Products
Trust, Conseco Series Trust, The Alger American Fund, American Century
Variable Portfolios, Inc., The Dreyfus Socially Responsible Growth Fund,
Inc., Dreyfus Stock Index Fund, Dreyfus Variable Investment Fund, Federated
Insurance Series, INVESCO Variable Investment Funds, Inc., Janus Aspen
Series, Lazard Retirement Series, Inc., Lord Abbott Series Trust, Mitchell
Hutchins Series Trust, Neuberger Berman Advisers Management Trust, Rydex
Variable Trust, Seligman Portfolios, Strong Opportunity Fund II, Inc.,
Strong Variable Insurance Funds, Inc. and Van Eck Worldwide Insurance
Trust, together, the Funds Investors Mark Series Fund, Inc., Berger
Institution Products Trust, Conseco Series Trust, The Alger American Fund,
American Century Variable Portfolios, Inc., The Dreyfus Socially
Responsible Growth Fund, Inc., Dreyfus Stock Index Fund, Dreyfus Variable
Investment Fund, Federated Insurance Series, INVESCO Variable Investment
Funds, Inc., Lazard Retirement Series, Inc., Neuberger Berman Advisers
Management Trust, Strong Opportunity Fund II, Inc., Strong Variable
Insurance Funds, Inc. and Van Eck Worldwide Insurance Trust,
(b) Name and principal business address of depositor;
Not Applicable.
(c) Name and principal business address of trustee or custodian;
UMB Bank, N.A. and Investors Fiduciary Trust Company are the custodians for
Investors Mark Series Fund, Inc. Their addresses are: 928 Grand Avenue,
Kansas City, MO 64141 and 127 West 10th Street, Kansas City, MO 64105,
respectively.
<PAGE>
Investors Fiduciary Trust Company, 801 Pennsylvania, Kansas City, MO 64105
is the custodian for Berger Institutional Products Trust.
Bank of New York, 90 Washington Street, 22nd Floor, New York, NY 10826 is
the custodian for Conseco Series Trust. Custodial Trust Co., 101 Carnegie
Center, Princeton, NJ 08540 Is the custodian for the Alger American Fund.
Chase Manhattan Bank, 770 Broadway, 10th Floor, New York, NY 10003-9598 and
Commerce Bank, N.A., 1000 Walnut, Kansas City, MO 64105 are the custodians
for the American Century Variable Portfolios, Inc.
Mellon Bank, N.A., One Mellon Bank Center, Pittsburgh, PA 15258 is the
custodian for The Dreyfus Socially Responsible Growth Fund, Inc. and the
Disciplined Stock Portfolio of Dreyfus Variable Investment Fund.
Boston Safe Deposit and Trust Company, One Boston Place, Boston, MA 02108
is the custodian for the Dreyfus Stock Index Fund.
The Bank of New York, 90 Washington Street, New York, NY 10286 Is the
custodian for the International Value Portfolio of Dreyfus Variable
Investment Fund.
State Street Bank and Trust Company, P.O. Box 8600, Boston, MA 02266-8600
is the custodian for Federated Insurance Series.
State Street Bank and Trust Company, P.O. Box 1713, Boston, MA 02121 is the
custodian for INVESCO Variable Investment Funds, Inc.
State Street Bank and Trust Company, 225 Franklin Street, Boston, MA 02110
is the custodian for Lazard Retirement Series, Inc.
State Street Bank and Trust Company, P.O. Box 197B, Boston, MA 02105 is the
custodian for Neuberger Berman Advisers Management Trust.
Firstar Bank, 777 East Wisconsin Ave., Milwaukee, WI 53202 Is the custodian
for Strong Opportunity Fund II, Inc.
Firstar Bank, 777 East Wisconsin Ave., Milwaukee, WI 53202 is the custodian
for Strong Variable Insurance Funds, Inc.
The Chase Manhattan Bank, Chose Metrotech Center, Brooklyn, NY 11245 is the
custodian for Van Eck Worldwide Insurance Trust.
(d) Name and principal business address of principal underwriter;
Jones & Babson, Inc. acts as the principal underwriter for Investors Mark
Series Fund, Inc.
Berger Distributors, Inc., 210 University Boulevard, Suite 900, Denver, CO
80206 acts as the principal underwriter for Berger Institutional Products
Trust.
Conseco Equity Sales, Inc., 11825 N. Pennsylvania Street, Carmel, Indiana
46032 in the principal underwriter for Conseco Series Trust.
Fred Alger & Company, Incorporated, 30 Montgomery Street, Jersey City, NJ
07302 acts an the principal underwriter for The Alger American Fund.
FDI, 60 State Street, Suite 1300, Boston, MA 02109 acts as the principal
underwriter for American Century Variable Portfolios, Inc.
Premier Mutual Fund Services, Inc., 60 State Street, Boston, MA 02109 acts
as the principal underwriter for The Dreyfus Socially Responsible Growth
Fund, Inc.
<PAGE>
Premier Mutual Fund Services, Inc., 60 State Street, Boston, MA 02109 acts
as the principal underwriter for Dreyfus Stock Index Fund.
Premier Mutual Fund Services, Inc., 60 State Street, Boston, MA 02109 acts
as the principal underwriter for Dreyfus Variable Investment Fund.
Federated Securities Corp., Federated Investors Tower, 1001 Liberty Avenue,
Pittsburgh, PA 15222-3779 acts as the principal underwriter for Federated
Insurance Series.
INVESCO Distributors, Inc. 7800 East Union Avenue, Denver, CO 80237 acts as
the principal underwriter for INVESCO Variable Investment Funds, Inc.
Lazard Freres & Co. LLC, 30 Rockefeller Plaza, New York, NY 10112 acts as
the principal underwriter for Lazard Retirement Series, Inc.
Neuberger Berman Management, Inc., 605 Third Avenue, 2nd Floor, New York,
NY 10158-0180 acts as the principal underwriter for Neuberger Berman
Advisers Management Trust.
Strong Funds Distributors, Inc., P.O. Box 2936, Milwaukee, WI 53201 acts as
the principal underwriter for Strong Opportunity Fund II, Inc.
Strong Funds Distributors, Inc., P.O. Box 2936, Milwaukee, WI 53201 acts as
the principal underwriter for Strong Variable Insurance Funds, Inc.
Van Eck Securities Corporation, 99 Park Avenue, New York, NY 10016 acts as
the principal underwriter for Van Eck Worldwide Insurance Trust.
(e) The period during which the securities of such company have been the
underlying securities.
No underlying securities have yet been acquired by the Separate Account.
INFORMATION CONCERNING LOADS, FEES, CHARGES AND EXPENSES
(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.
13(a)(1) Principal Payments
PREMIUM CHARGE. For the first ten years, the Company deducts a charge
equal, on an annual basis, to 6.0% of all Premiums. For the eleventh year
and after, the charge is 4.0% of all Premiums. This compensates the Company
for costs incurred in selling the Policy and in issuing it, such as
commissions, premium tax, deferred acquisition costs and administrative
costs.
MONTHLY RIDER CHARGE. The Company charges separately for any riders
attached to the Policy. The cost of riders for a Policy Month are deducted
as part of the Monthly Deduction on each Monthly Anniversary Day.
RISK CHARGE. The Company assesses a Risk Charge that is deducted as part of
the Monthly Deduction. The Risk Charge is as follows: for the first ten
years, the Company deducts a charge equal to one-twelfth of .75% per month
of the Accumulation Value in the Separate Account. For the eleventh year
through the twentieth year, the charge is equal to one-twelfth of .25% per
month. For the twenty-first year and thereafter the charge is either
one-twelfth of .25% per month. This compensates the Company for some
of the mortality risks and administrative costs under the Policy.
COST OF INSURANCE CHARGE. Each month the Company deducts a charge for the
cost of insurance which provides the Death Benefit for the following month.
<PAGE>
POLICY CHARGE. Every month on the anniversary of the Policy Date, the
Company deducts $25 for Policy Year 1 and currently $5 for Policy Years 2
and later. Under some circumstances, this charge is waived. This
compensates the Company for some of the administrative costs incurred.
The policy is available for purchase by individuals, corporations and other
groups. Conseco Variable Insurance Company (CVIC) may reduce or eliminate
certain charges (premium charge, surrender charge, monthly policy charge,
monthly cost of insurance, or other charges), where the size or nature of
the group results in savings in sales, underwriting, administrative or
other costs, to CVIC. These charges may be reduced in certain group,
sponsored arrangements or special exchange programs made available by CVIC,
(including employees of CVIC and their families).
13(a)(2) Underlying Securities
The Funds are charged management fees by their respective investment
adviser and incur operating expenses.
13(a)(3) Distributions
Not Applicable.
13(a)(4) Cumulated or reinvested distributions or income.
All investment income and other distributions are reinvested in Fund shares
at net asset value.
13(a)(5) Redeemed or liquidated assets.
SURRENDER CHARGE.
A total surrender occurs when there is a full surrender of the policy's cash
surrender value.
o The surrender charge and the pro-rata surrender charge
compensate us for the costs associated with the sale,
underwriting, and issue of the policy.
o The surrender charge is the actual first-year premium paid up
to the surrender charge premium, multiplied by the percentage
found in the surrender charge schedule. The surrender charge
premium is shown in your policy. The surrender charge schedule
is a 10-year schedule from the date of issue of the segment of
insurance, with the percentage varying by month. The
percentages in the surrender charge schedule may vary by issue
age.
o The surrender charge is based on the specified amount and will
never be greater than the maximum surrender charge shown on
your schedule pages. The maximum surrender charge varies by the
specified amount, issue age, and risk class.
o We guarantee that the surrender charge rates will not increase.
o There is no surrender charge on the initial specified amount
after 10 policy years.
o Each increase of your policy's specified amount will carry its
own 10-year schedule of surrender charges.
WITHDRAWAL IN EXCESS OF THE FREE PARTIAL WITHDRAWAL
A Withdrawal in excess of the free partial withdrawal occurs when a partial
withdrawal is taken in excess of the free partial surrender percentage.
o If you withdraw money in excess of the free partial surrender
percentage, we will assess a surrender charge. This charge
depends on your initial specified amount, the premiums paid,
the year of surrender, issue age, sex, rate class, and
specified amount band.
o If a partial surrender of cash surrender value is taken in
excess of the free partial withdrawal amount that causes a
decrease in the specified amount, a surrender charge is
assessed. The surrender charge assessed is a pro-rata portion
of the surrender
<PAGE>
charge based on the specified amount reduction. The pro-rata
surrender charge is calculated the same way as for a requested
decrease.
13(b) For each installment payment type of periodic payment plan
certificate of the trust, furnish the following information with respect to
sales load and other deductions from principal payments.
Not Applicable
13(c) 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 exemptive order that
reflect scheduled variations in, or elimination of, the sales load, and
identify each class of individuals or transactions to which such plans
apply.
The sales load is assessed as a percentage of premiums paid and as a
surrender charge. The sales load is 2.5% of premiums paid during the first
ten policy years and 0.5% of premiums paid thereafter. The portion of the
surrender charge that does not recover issue and underwriting expenses is
assessed as a sales load but only if the policy is surrendered during the
first ten policy years. The surrender charge varies by issue age, sex, rate
class, policy duration and specified amount.
The policy is available for purchase by individuals, corporations and other
groups. Conseco Variable Insurance Company (CVIC) may reduce or eliminate
certain charges (premium charge, surrender charge, monthly policy charge,
monthly cost of insurance, or other charges), where the size or nature of
the group results in savings in sales, underwriting, administrative or
other costs, to CVIC. These charges may be reduced in certain group,
sponsored arrangements or special exchange programs made available by CVIC,
(including employees of CVIC and their families).
13(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.
13(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.
None.
13(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.
None.
13(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.
<PAGE>
(14) Describe the procedure with respect to 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.
A person desiring to purchase a Policy must complete an application on a
form provided by the Company. The Company will underwrite the Policy before
it is issued. If the applicant meets the underwriting standards of the
Company, the Policy will be issued.
(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.
WHAT WE WILL DO WITH YOUR MONEY
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When you buy a new policy
o We will temporarily invest money in our General Account within 2 days of
receiving it.
o Money will remain in the General Account through the underwriting process.
o Money may be returned to you, unless you give us permission to hold it, if
information we request to complete the underwriting process has not been
received within 5 business days.
ON THE POLICY DATE
o The amount of the initial premium, less policy expenses plus interest, is
credited to the policy's accumulation value.
Between the policy date and the end of the free look period
o The location of your money depends on the free look provision in your
state.
o If the free look provision permits the refund of your accumulation value,
the money is invested on the policy date in the investment portfolios you
select.
o If the free look provision requires a refund of your premium, then the
money that you allocate to the fixed account is invested in the fixed
account on the policy date. The money that you allocate to the investment
portfolios is invested in the Conseco Money Market account on the policy
date. At the end of the free look period plus five days (to allow for
policy delivery), the money is invested in the investment portfolios that
you select.
FOR CANCELLATIONS DURING THE FREE LOOK PERIOD
o If the policy is cancelled within 10 days (a longer time period may apply
in some states) after receiving it, we will return the amount of money
required by your state. Please check your policy for the amount that will
be refunded.
o A surrender charge will not be assessed if the policy is cancelled during
the free look period.
AFTER THE FREE LOOK PERIOD HAS EXPIRED
o We will allocate any premium you pay as you direct as of the business day
it is received.
o The initial premium and each subsequent premium cannot be invested in more
than 20 different portfolios with a minimum of 5% allocated to each choice.
o You can have your money invested in as many investment portfolios as you
desire.
o We will allocate future premium payments in the same way as your first
premium payment, unless you direct us otherwise.
o AND REMEMBER, you can always change your future allocations.
IF WE DECIDE NOT TO INSURE YOU
o We will return your premium without interest, regardless of how long we
hold it.
<PAGE>
(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.
The Company applies premiums to the purchase of Investment Option shares at
their net asset value. Redemption of Investment Option shares may be made
by the Company to permit the payment of benefits or amounts in connection
with requests for surrender or for other purposes contemplated by the
Policy.
(17) (a) Describe the procedure with respect to withdrawal or redemption by
security holders.
Any surrender or withdrawal by an owner may be made by sending us written
notice. Also, if prior authorization was given, telephone and internet
requests will also be accepted. See also Item 10.
(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 honor surrender requests as described in Items
10(c) and 17(a). With respect to the Separate Account's, underlying
securities, the Investment Options are required to redeem their shares at
net asset value and to make payment therefore within seven business days.
(c) Indicate whether repurchased or redeemed securities will be canceled or
may be resold.
A policy is cancelled when there is a total withdrawal.
If your policy lapses and you reinstate it within the first five policy
years, you will be able to reinstate this provision.
(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 income and other distributable funds of the Separate Account are
reinvested in Investment Option shares and are added to the assets of the
Separate Account.
(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.
Same response as item 18(a), above.
(c) If any reserves or special funds are created out of income or
principal, state with respect to each such reserve or fund the purpose and
ultimate disposition thereof, and describe the manner of handling of same.
Not Applicable
(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 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 because this is a newly established
separate account.
(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 provides confirmations for the following transactions all
premiums received, any transfers between Investment Options, loan
transactions, any surrenders, exercise of the free-look privilege and
payment of the death benefit under the Policy. The Company also provides
each Policy owner with an annual statement that will show the current
amount of death benefit payable under the Policy, the current
<PAGE>
Accumulation Value, the current Cash Surrender Value, current Loans and
will show all transactions previously confirmed. The statement will also
show all premiums paid and all charges deducted during the policy year.
The Company has hired Genelco, Incorporated, a Missouri corporation, to
perform certain administrative services regarding the Policies.
(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
(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;
The Separate Account has no trustees.
(e) The removal or resignation of the depositor, or the failure of the
depositor to perform its duties, obligations and functions;
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 or 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.
Policy owners may borrow from the Company using the Policy as the sole
security.
(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.
The following items should be covered.
(1) the name of each person who makes such agreements or
arrangements with security holders;
The Company will make a loan to an Owner with the Policy as the
sole security.
(2) the rate of interest payable on such loans;
The Company will charge an interest rate depending upon the
classification of the loan, but the rate will never be greater
than 6.5%.
(3) the period for which loans may be made;
Loans can be made while the Policy is in force.
<PAGE>
(4) costs or charges for default In repayment at maturity;
Not Applicable
(5) other material provisions of the agreements or arrangements;
A policy loan will result in accumulation units being transferred
from the Investment Options to the Loan Account. The Company will
pay interest on the Loan Account at an annual rate not less than
4.0%. An outstanding loan reduces the amount of death benefits and
Policy values.
(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 because no policies have been issued.
(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 or agreements.
(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.
The Company maintains a Fidelity Bond in the amount of $22 million per
occurrence limit and Fidelity Bond in the amount of $60 million per
aggregate.
(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 Owner may assign the Policy. The owner may change owners during the
lifetime of the Insured while the Policy is in force.
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 was originally incorporated in Texas in 1937 as a stock life
insurance company.
(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
(b) Furnish the following information with respect to any fee or any
participation in fees received by the depositor from any underlying
investment company or any affiliated person or investment adviser of
such company.
See Item 13 (a), above.
(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
<PAGE>
company or companies, their relationship, if a 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 life insurance business in
49 states and the District of Columbia. It acts as the depositor of:
Conseco Variable Annuity Account C, Conseco Variable Annuity. Account
E, Conseco Variable Annuity Account F, Conseco Variable Annuity
Account G, Conseco Variable Annuity Account H, Conseco Variable
Annuity Account I, Conseco Fund Group, BMA Variable Life Account A,
and Rydex Advisor Variable Annuity Account.
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 five percent or more of the outstanding voting securities of the
depositor.
See Item 29, below.
(b) Furnish a brief statement of the business experience during the
last five years of each officer, director or partner of the depositor.
The directors and executive officers of the Company are listed below:
Name and Principal Positions and Offices with Depositor and
Business Address* Business Experience for the Past Five Years
------------------ -------------------------------------------
John H. Howard Director of Conseco Variable
Ngaire E. Cuneo Director of Conseco Variable. Since 1992, Executive
Vice President, Corporate Development of Conseco, Inc.
Thomas J. Kilian Director and President of Conseco Variable. Since
2000, President of Conseco, Inc., Executive Vice
President, Chief Operations Officer of Conseco, Inc.,
and from 1989 through 1998 Senior Vice President of
various subsidiaries of Conseco, Inc.
David H. Herzog Executive Vice President, General Counsel, and
Secretary of Conseco Variable and Conseco, Inc. since
September 2000. From 1980 until September, associate
and partner with Baker and Daniels law firm.
James S. Adams Senior Vice President, Chief Accounting Officer, and
Treasurer of Conseco Variable. Since 1997, Senior
Vice President, Chief Accounting Officer, and Treasurer
of Conseco, Inc. Since 1989, Senior Vice President of
Various subsidiaries of Conseco, Inc.
* Principal Business Address is 11825 N. Pennsylvania Street, Carmel,
Indiana 46032.
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 five percent or more of the outstanding voting
securities of the depositor.
The Company is an indirectly wholly owned subsidiary of Conseco, Inc.,
11825 N. Pennsylvania Street, Carmel, Indiana 46032. Conseco, Inc. Is a
NYSE listed public company.
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
<PAGE>
COMPENSATION OF OFFICERS AND DIRECTORS OF DEPOSITOR:
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 hereof, the Separate Account has not
yet 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 hereof, the Separate Account has not
yet commenced operations.
(c) Indirectly or through subsidiaries to each of the officers or
partners of the depositor.
Not Applicable. As of the date hereof, the Separate Account has not
yet 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. See Item 31.
(b) Indirectly through subsidiaries to directors.
Not Applicable. See Item 31.
COMPENSATION TO EMPLOYEES
(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. See Item 31.
(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 person 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 a 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. See Item 31.
COMPENSATION TO OTHER PERSONS
<PAGE>
(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 31), 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. See Item 31.
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 be, made, and
(c) have been discontinued, indicating by appropriate letter the status
with respect to each State.
No policies have been sold. The Company intends to sell Policies in
all states where the Company is authorized to sell the Policies.
(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; (2) date of denial; (3)
brief statement of reason 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; (2) date of
revocation; (3) brief statement of reason given for revocation.
Not Applicable
(38) (a) Furnish a general description of the method of distribution of
securities of the trust.
The Policy issued by the Separate Account will be sold by licensed
insurance agents in those states where the Policy may be lawfully
sold. Such agents will also be registered representatives of a
broker-dealer registered under the Securities Exchange Act of 1934
which is a member of the National Association of Securities Dealers,
Inc.
(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 any assignment provisions.
The Company intends to execute an agreement with the Principal
Underwriter whereby it will distribute the Policy by executing selling
agreements with other broker-dealers. The agreement will be effective
on the date executed and will remain effective until terminated by
either party upon sixty (60) days notice, and may not be assigned
without written consent.
(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 commission, such schedules of commissions may be filed as
Exhibit A(3)(c).
<PAGE>
See Exhibit A(3)(c)
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 the
organization.
Conseco Equity Sales, Inc. is a corporation organized under the laws
of Texas on July 12, 1965.
(b) State whether any principal underwriter currently distributing
securities of the trust is a member of the National Association of
Securities Dealers, Inc.
Conseco Equity Sales, Inc. is a member of the National Association of
Securities Dealers, Inc.
(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.
Not Applicable
(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: (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; (4) the aggregate
amount received during the last fiscal year covered by the financial
statements filed herewith.
Not Applicable
(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 named capacity,
state the date of and the circumstances surrounding such cessation.
The Company is principally engaged in the life insurance business in
49 states and the District of Columbia.
It acts as the depositor of: Conseco Variable Annuity Account C,
Conseco Variable Annuity. Account E, Conseco Variable Annuity
Account F, Conseco Variable Annuity Account G, Conseco Variable
Annuity Account H, Conseco Variable Annuity Account I, Conseco
Fund Group, BMA Variable Life Account A, and Rydex Advisor
Variable Annuity Account.
(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
(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.
Not Applicable
(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.
<PAGE>
Not Applicable
(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.
None
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 purposes 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.
Accumulation Values allocated to the Separate Account are invested at net
asset value in the Investment Options in accordance with the selections
made by the owner.
Accumulation Values will fluctuate in accordance with investment results
of the Investment Options selected. In order to determine how these
fluctuations affect Accumulation Value, accumulation units are used. Every
business day the Company determines the value of an accumulation unit for
each of the Investment Options. The value of an accumulation unit for any
given business day is determined by multiplying a factor referred to as
the net investment factor times the value of an Accumulation unit for the
previous business day. The net investment factor is a number that reflects
the change (up or down) in an underlying Investment Option share.
(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
(c) If there is any variation in the offering price of the trust's
securities to any person or 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.
Not Applicable
(45) Furnish the following information with respect to any suspension of
the redemption rights of securities issued by the trust during the three
fiscal years covered by the financial statements filed herewith: (a) by
whose action redemption rights were suspended; (b) the number of days'
notice given to security holders prior to suspension of redemption rights;
(c) reason for suspension (d) period during which suspension was in
effect.
Not Applicable
REDEMPTION VALUATION OF SECURITIES OF THE TRUST
(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;
The underlying Mutual funds each calculate their own net asset values.
(2) Whether opening, closing bid, asked or any other price is used;
Net asset value calculated in accordance with the Fund's Prospectus.
(3) Whether price is as of the day of sale or as of any other time;
<PAGE>
As of the next computed price.
(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 13 (a), above.
(5) other items which registrant deducts from the net asset value in
computing redemption value of its securities; and
See Item 13 (a), above.
(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
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 interest 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 the 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 maintain a position in Investment Option shares by
purchasing Investment Option shares at net asset value in connection with
premiums allocated to the Separate Account in accordance with instructions
from the Owners and to redeem Investment Option shares at net asset value
for the purposes of making Policy obligations, or making adjustments in
the reserves held in the Separate Account. There are no procedures for the
purchase of underlying securities or interests therein from owners who
exercise surrender rights in that Owners have no direct interest therein.
V. INFORMATION CONCERNING THE TRUSTEE OR CUSTODIAN
(48) Furnish the following Information as to each trustee or custodian of the
trust:
(a) Name and principal business address;
None.
(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
<PAGE>
(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.
Not Applicable
VI. INFORMATION CONCERNING THE INSURANCE OF HOLDERS OF SECURITIES
(51) Furnish the following information with respect to insurance holders of
securities:
(a) The name and address of the insurance company;
Conseco Variable Insurance Company 11825 N. Pennsylvania Street Carmel,
Indiana 46032
(b) The types of policies and whether individual or group policies;
The Policy is a flexible premium variable universal life insurance policy.
(c) The types of risks insured and excluded;
The Policy provides for a Death Benefit and other various benefits
provided by means of riders attached to the Policy.
(d) The coverage of the policies;
While the Policy remains in force, it provides for a death benefit on the
life of the Primary Insured.
(e) The beneficiaries of such policies and the uses to which the proceeds
of policies must be put;
The owner designates one or more persons to be the beneficiaries of the
death benefit. There are no limitations on the use of the proceeds,
(f) The terms and manner of cancellation and of reinstatement;
The Policy will terminate if (1) the Owner makes a total surrender of the
Policy, (2) the grace period has ended, or (3) the Insureds have died. The
Policy can be reinstated if the owner did not make a total surrender and
if the Insured is still alive within five years after the end of the grace
period. To reinstate the Policy, the Insured must provide evidence of
insurability and either repay any outstanding loan and accrued interest or
reinstate the loan plus interest. The Owner must pay all past due
premiums.
(g) The method of determining the amount of premiums to be paid by holders
of securities;
See Item 13(a) for information on the types of charges and methods of
assessing them.
(h) The amount of aggregate premiums paid to the Insurance Company during
the last fiscal year;
Not Applicable
(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;
<PAGE>
The Company may from time to time, enter into reinsurance treaties with
other insurers whereby such insurers may agree to reimburse the Company
for mortality expenses.
(j) The substance of any other material provisions of any indenture or
agreement of the trust relating to insurance.
Not Applicable
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 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, 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 Company will not substitute another security for the underlying
securities of the trust unless the Securities and Exchange Commission
shall have approved such substitution.
(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; (2) the type of securities
which may be substituted for any underlying security; (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; (4) whether such substituted
securities may be the securities of another investment company; and (5)
the substance of the provisions of any indenture or agreement which
authorize or restrict the policy of the registrant in this regard.
Not Applicable
(d) Furnish a description of any policy (exclusive of policies covered by
paragraphs (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
(53) (a)State the taxable status of the trust.
The Company is taxed as a life insurance company under the Internal
Revenue Code. Since the Separate Account is not a separate entity from the
Company and its operations form a part of the company, it will not be
taxed separately an a "regulated investment company" under the Subchapter
M of the code.
(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
qualifications during the current taxable year.
Not Applicable
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
<PAGE>
(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 10 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 the 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 payment 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 Trust
The financial statements have not been filed for the Separate Account. It
has not yet commenced operations, has no assets or liabilities and has
received no income nor incurred any expense.
Financial Statements of the Depositor
The financial statements of the Company will be filed by amendment.
IX. EXHIBITS
A. (1) Resolution of Board of directors of the Company
authorizing the Separate Account.
(2) None
(3) (a) Principal Underwriter's Agreement
(b) Agents Agreement
(c) Schedules of sales commissions referred to in Item 38(c)
(4) None
(5) Flexible Premium Adjustable Variable Life Insurance Policy
(6) (a) Articles of Incorporation of the Company
(b) Bylaws of the Company
(7) Not Applicable
(8) Not Applicable
(9) None
(10) Form of application
B. Furnish copies of each of the following:
(1) Not Applicable
(2) Not Applicable
C. Not Applicable
<PAGE>
SIGNATURE
Pursuant to the requirements of the Investment Company Act of 1940 the
depositor of the Registrant has caused this registration statement to be
duly signed on behalf of the Registrant in the City of Carmel and State of
Indiana on the ninth day of, 1999
(SEAL)
CONSECO VARIABLE LIFE ACCOUNT
By: CONSECO VARIABLE INSURANCE COMPANY
----------------------------------
By: /s/ Thomas J. Kilian
----------------------------------
CONSECO VARIABLE INSURANCE COMPANY
By: /s/ Thomas J. Kilian
----------------------------------
Attest:
(Name): /s/ Karl W. Kindig
-------------------------------
(Title): Assistant Secretary
-------------------------------
<PAGE>
INDEX TO EXHIBITS
EX-99.A.(l) Resolution of Board of Directors
EX-99.A.(5) Variable Life Insurance Policy
EX-99.A.(6)(a) Articles of Incorporation
EX-99.A.(6)(b) Bylaws
EX-99.A.(10) Form of Application
