UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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
RELIASTAR BANKERS SECURITY VARIABLE
LIFE SEPARATE ACCOUNT I
(Name of Unit Investment Trust)
[ ] Not the Issuer of periodic payment plan certificates
[X] Issuer of periodic payment plan certificates
This filing is made pursuant to Rule 6c-3 and 6e-3(T) under the Investment
Company Act of 1940.
I. ORGANIZATION AND GENERAL INFORMATION
1. (a) FURNISH NAME OF THE TRUST AND THE INTERNAL REVENUE SERVICE
EMPLOYER IDENTIFICATION NUMBER.
ReliaStar Bankers Security Variable Life Separate Account I (the
"Variable Account"). The Variable Account has no employer
identification number.
(b) FURNISH TITLE OF EACH CLASS OR SERIES OF SECURITIES ISSUED BY THE
TRUST.
Flexible premium variable life insurance policies (the
"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.
ReliaStar Bankers Security Life Insurance Company ("RBSL") 1000
Woodbury Road Woodbury, New York 11797
Internal Revenue Service Employer
Identification No. 53-0242530
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 IS ACTING.
RBSL will be the custodian of the trust. See the answer to Item 2 for
the principal business address, Zip Code and the Internal Revenue
Service Employer Identification Number of RBSL.
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.
Sale of the Policies has not yet commenced. Washington Square
Securities, Inc. (the "Distributor") will act as principal underwriter
of the Policies for the Variable Account at such time as their
distribution commences. The Distributor's principal business address,
Zip Code and Internal Revenue Service Employer Identification Number
are:
20 Washington Avenue South
Minneapolis, Minnesota 55440
Internal Revenue Service Employer
Identification No. 41-0945505
5. FURNISH NAME OF STATE OR OTHER SOVEREIGN POWER, THE LAWS OF WHICH
GOVERN WITH RESPECT TO THE ORGANIZATION OF THE TRUST.
New York
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.
There is no such indenture or agreement. The Variable Account was
organized on March 23, 1982 and the Policies will be issued
pursuant to resolutions adopted by the Board of Directors of RBSL
on October 28, 1996, which resolutions will continue in effect
until terminated by the Board of Directors of RBSL.
(b) FURNISH THE DATES OF EXECUTION AND TERMINATION OF ANY INDENTURE
OR AGREEMENT CURRENTLY IN EFFECT PURSUANT TO WHICH THE PROCEEDS
OF PAYMENTS ON SECURITIES ISSUED OR TO BE ISSUED BY THE TRUST ARE
HELD BY THE CUSTODIAN OR TRUSTEE.
There is no such indenture or agreement.
7. FURNISH IN CHRONOLOGICAL ORDER THE FOLLOWING INFORMATION WITH RESPECT
TO EACH CHANGE OF NAME OF THE TRUST SINCE JANUARY 1, 1930. IF THE NAME
HAS NEVER BEEN CHANGED, SO STATE.
On August 1, 1996, the name of the Variable Account was changed from
Bankers Security Variable Life Separate Account I to ReliaStar Bankers
Security Variable Life Separate Account I.
8. STATE THE DATE ON WHICH THE FISCAL YEAR OF THE TRUST ENDS.
December 31
MATERIAL LITIGATION
9. FURNISH A DESCRIPTION OF ANY PENDING LEGAL PROCEEDINGS, MATERIAL WITH
RESPECT TO THE SECURITY HOLDERS OF THE TRUST BY REASON OF THE NATURE
OF THE CLAIM OR THE AMOUNT THEREOF, TO WHICH THE TRUST, THE DEPOSITOR,
OR THE PRINCIPAL UNDERWRITER IS A PARTY OR OF WHICH THE ASSETS OF THE
TRUST ARE THE SUBJECT, INCLUDING THE SUBSTANCE OF THE CLAIMS INVOLVED
IN SUCH PROCEEDING AND THE TITLE OF THE PROCEEDING. FURNISH A SIMILAR
STATEMENT WITH RESPECT TO ANY PENDING ADMINISTRATIVE PROCEEDING
COMMENCED BY A GOVERNMENTAL AUTHORITY OR ANY SUCH PROCEEDING OR LEGAL
PROCEEDING KNOWN TO BE CONTEMPLATED BY A GOVERNMENTAL AUTHORITY.
INCLUDE ANY PROCEEDING WHICH, ALTHOUGH IMMATERIAL ITSELF, IS
REPRESENTATIVE OF, OR ONE OF, A GROUP WHICH IN THE AGGREGATE IS
MATERIAL.
No legal or administrative proceedings material with respect to the
security holders of the Variable Account are pending to which the
Variable Account, RBSL or the Distributor is a party or of which the
assets of the Variable Account are the subject.
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.
Registered type
(b) WHETHER THE SECURITIES ARE OF THE CUMULATIVE OR DISTRIBUTIVE
TYPE.
Cumulative
(c) THE RIGHTS OF SECURITY HOLDERS WITH RESPECT TO WITHDRAWAL OR
REDEMPTION.
In hereinafter describing the Policies herein, the following
terms shall have the following meanings:
Accumulation Unit--A unit of measure used to determine the
Variable Accumulation Value (see the answer to Item 10(i)).
Accumulation Value--The Accumulation Value is the total of the
Fixed Accumulation Value and the Variable Accumulation Value (see
the answer to Item 10(i)).
Cash Surrender Value--The amount payable to the policy owner when
such owner surrenders the Policy. It is the Accumulation Value
minus any Surrender Charge, Loan Amount, and unpaid Monthly
Deduction.
Death Benefit--Shall have the meaning set forth in the answer to
Item 10(i).
Death Benefit Guarantee--Shall have the meaning set forth in the
answer to Item 10(i).
Death Benefit Options--Shall have the meaning set forth in the
answer to Item 10(i).
Face Amount--The minimum Death Benefit payable under the Policy
as long as the Policy remains in force.
Fixed Account--The Fixed Account consists of all assets of RBSL
other than those in its separate accounts.
Fixed Accumulation Value--Shall have the meaning set forth in the
answer to Item 10(i).
Funds--The mutual funds available for investment by the Variable
Account.
Level Amount Option--Shall have the meaning set forth in the
answer to Item 10(i).
Loan Amount--The sum of all unpaid Policy loans and unpaid Policy
loan interest.
Minimum Face Amount--The minimum Face Amount shown in the Policy
(currently $25,000).
Minimum Monthly Premium--Shall have the meaning set forth in the
answer to Item 10(i).
Monthly Administrative Charge--Shall have the meaning set forth
in the answer to Item 13(d).
Monthly Anniversary--The same date in each succeeding month as
the Policy Date. For purposes of the Variable Account, whenever
the Monthly Anniversary falls on a date other than a Valuation
Date, the Monthly Anniversary will be considered to be the next
Valuation Date.
Monthly Deduction--Shall have the meaning set forth in the answer
to Item 13(d).
Monthly Mortality and Expense Risk Charge--Shall have the meaning
set forth in the answer to Item 13(d).
Net Investment Factor--Shall have the meaning set forth in the
answer to Item 10(i).
Net Premium--Shall have the meaning set forth in the answer to
Item 13(a).
Planned Periodic Premiums--Shall have the meaning set forth in
the answer to Item 10(i).
Policy Anniversary--The same date in each succeeding year as the
Policy Date. For purposes of the Variable Account, whenever the
Policy Anniversary falls on a date other than a Valuation Date,
the Policy Anniversary will be considered to be the next
Valuation Date.
Policy Date--The date a Policy goes into effect. Policy
Anniversaries, Policy Months, Policy Years and Monthly
Anniversaries are measured from the Policy Date.
Policy Month--A month beginning on the Monthly Anniversary.
Policy Year--A year beginning on the Policy Anniversary.
Premium Expense Charge--Shall have the meaning set forth in the
answer to Item 13(a).
Premium Related Expense Charge Reduction--Shall have the meaning
set forth in the answer to Item 13(a).
Rate Class--A group of insureds RBSL determines based upon the
expectation that they will have similar mortality experience.
SEC--Securities and Exchange Commission.
Settlement Options--Shall have the meaning set forth in the
answer to Item 10(i).
Sub-Account--A subdivision of the Variable Account. Each
Sub-Account invests exclusively in the shares of a specified
Fund.
Surrender Charge--Shall have the meaning set forth in the answer
to Item 13(a).
Surrender Whole Life Premium--Shall have the meaning set forth in
the answer to Item 13(a).
Unit Value--Shall have the meaning set forth in the answer to
Item 10(i).
Valuation Date--The close of the stock market each day that the
New York Stock Exchange is open for trading and valuations have
not been suspended by the SEC.
Valuation Period--The period of time between a Valuation Date and
the next Valuation Date.
Variable Accumulation Value--Shall have the meaning set forth in
the answer to Item 10(i).
Variable Amount Option--Shall have the meaning set forth in the
answer to Item 10(i).
RIGHT TO RETURN POLICY AT INITIAL ISSUE. The Policy owner has a
right to return the Policy for cancellation and a refund of all
premiums paid. The owner must return the Policy to RBSL or the
owner's agent and ask RBSL to cancel the Policy no later than
midnight of the 20th day after receiving it.
RIGHT TO RETURN POLICY FOLLOWING A REQUESTED INCREASE IN FACE
AMOUNT. The Policy owner has a right to cancel an increase in
Face Amount and receive a refund. The owner must notify RBSL or
the owner's agent and ask RBSL to cancel the increase no later
than midnight of the 20th day after receiving a new Policy Data
Page.
RBSL will refund to the owner an amount equal to all Monthly
Deductions attributable to the increase in Face Amount, including
rider costs arising from the increase.
TOTAL SURRENDER. A Policy owner may surrender the Policy at any
time for its Cash Surrender Value by making a written request.
The Cash Surrender Value is the Accumulation Value of the Policy,
reduced by any Surrender Charge, Loan Amount and unpaid Monthly
Deductions.
PARTIAL WITHDRAWAL. After the first Policy Year, policy owner may
also withdraw part of the Policy's Cash Surrender Value by
sending RBSL a written request. Only one partial withdrawal is
allowed in any Policy year. The amount of any partial withdrawal
must be at least $500 and, during the first 15 Policy Years, may
not be more than 20% of the Cash Surrender Value on the date RBSL
receives the owner's written request. RBSL currently charges $10
for partial withdrawals and guarantees that this charge will
never exceed $25.
RBSL makes partial withdrawals from the Fixed Account and the
Sub-Accounts of the Variable Account on a proportionate basis
based upon the Accumulation Value. For purposes of determining
the proportions, the outstanding Loan Amount is subtracted from
the Fixed Accumulation Value.
EFFECT OF PARTIAL WITHDRAWALS. The Accumulation Value will be
reduced by the amount of any partial withdrawal. The Death
Benefit will be reduced by the amount of any partial withdrawal
regardless of the Death Benefit Option in effect.
The Face Amount will be reduced by the amount of the partial
withdrawal if the Level Amount Option is in effect. RBSL does not
allow a withdrawal if the Face Amount after a partial withdrawal
would be less than the Minimum Face Amount.
If the Variable Amount Option is in effect, a partial withdrawal
does not affect the Face Amount.
A partial withdrawal may also cause the termination of the Death
Benefit Guarantee. The amount of the partial withdrawal is
deducted from the total premiums paid in calculating whether
sufficient premiums have been paid in order to maintain the Death
Benefit Guarantee.
(d) THE RIGHTS OF SECURITY HOLDERS WITH RESPECT TO CONVERSION,
TRANSFER, PARTIAL REDEMPTION AND SIMILAR MATTERS.
CONVERSION RIGHTS. During the first two Policy Years and the
first two years following a requested increase in Face Amount,
the Owner has the option to convert the Policy or any requested
increase in Face Amount, with no proof of insurability, for a
life insurance policy, the value of which will not vary with the
investment performance of the Funds. RBSL does this by
transferring without charge the Variable Accumulation Value, as
of the date RBSL receives the owner's request, to the Fixed
Account and issuing a rider to the Policy. The rider will
prohibit the transfer of Accumulation Value back to the Variable
Account, and future premium payments will be allocated only to
the Fixed Account. No transfer charge is made.
POLICY LOANS. A Policy owner may obtain Policy loans, as
described in the answer to Item 21.
SURRENDERS AND PARTIAL WITHDRAWALS. A Policy owner may make
surrenders and partial withdrawals, as described in the answer to
Item 10(c).
ALLOCATION OF PREMIUMS. A Policy owner may allocate premiums
among the Sub-Accounts of the Variable Account and the Fixed
Account, as described in the answer to Item 10(i).
TELEPHONE TRANSFER REQUESTS. The Owner may request a transfer by
telephone on any Valuation Date after a telephone transfer
authorization form is completed.
DOLLAR COST AVERAGING SERVICE. The Owner may request this service
if the Face Amount is at least $100,000 and the Accumulation
Value, less any Loan Amount, is at least $5,000. In this service,
the Owner directs automatic specific periodic transfers of a
fixed dollar amount from any of the Sub-Accounts to one or more
of the Sub-Accounts or to the Fixed Account. No transfer from the
Fixed Account are permitted under this service. Transfers of this
type may be made on a monthly, quarterly, semi-annual, or annual
basis.
PORTFOLIO REBALANCING SERVICE. The Owner may request this service
if the Face Amount is at least $200,000 and the Accumulation
Value, less any Loan Amount, is at least $10,000. If the Owner
requests this service, he directs automatic periodic transfers to
maintain specified percentage alloocations of Accumulation Value,
less any Loan Amount, among the Sub-Accounts of the Variable
Account and the Fixed Account; the allocation of future Net
Premium payments will also be changed to be equal to this
specified percentage allocation. Transfers made under this
service may be made on a quarterly, semi-annual, or annual basis.
TRANSFERS. A Policy owner may transfer all or part of the
Variable Accumulation Value between the Sub-Accounts or to the
Fixed Account by written request. The owner may also transfer
from the Fixed Accumulation Value to the Variable Account subject
to the restrictions listed below.
TRANSFER LIMITS AND CHARGES. RBSL allows twelve transfers in a
Policy year but reserves the right to limit to four transfers in
a Policy Year. Transfers due to Dollar Cost Averaging or
Portfolio Rebalancing do not count towards these limits. RBSL
currently makes no charge for each transfer and while it may make
a charge in the future, RBSL guarantees that it will never exceed
$25.00. In no event, however, will any charge be imposed in
connection with the exercise of a conversion right or transfers
occurring as a result of Policy loans. All transfers are also
subject to any charges and conditions imposed by the Funds whose
shares are involved.
To transfer all or part of the Variable Accumulation Value from a
Sub-Account, Accumulation Units are redeemed, on the next
Valuation Date after receipt of the owner's written request, and
their value is reinvested in other Sub-Accounts, or the Fixed
Account, as directed in the request.
A Policy owner may transfer all or part of the Fixed Accumulation
Value to the Sub-Accounts of the Variable Account, subject to the
following transfer limitations:
- The request to transfer must be postmarked no more than 30
days before the Policy Anniversary and no later than 30
days after the Policy Anniversary. Only one transfer is
allowed during this period.
- The Fixed Accumulation Value after the transfer must be at
least equal to the Loan Amount.
- No more than 50% of the Fixed Accumulation Value (minus
any Loan Amount) may be transferred unless the
balance, after the transfer, would be less than $1,000.
If the balance would be less than $1,000, the full
Fixed Accumulation Value (minus any Loan Amount) may
be transferred.
- The owner must transfer at least:
- $500, or
- the total Fixed Accumulation Value (minus any
Loan Amount) if less than $500.
(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 RESPECT TO REINSTATEMENT.
There is no such indenture or agreement.
LAPSE. The failure to make a periodic payment will not itself
cause a Policy to lapse. If the Death Benefit Guarantee is not in
effect, the Policy will lapse if, as of any Monthly Anniversary,
the Cash Surrender Value is less than the Monthly Deduction due,
and a grace period of 61 days expires without a sufficient
payment. A sufficient premium payment is any premium payment such
that the Net Premium is larger than the sum of 1 + 2 where 1 is
the amount by which the Accumulation Value is less than the
Surrender Charge as of the beginning of the grace period and 2 is
the sum of past due Monthly Deductions. RBSL will notify the
Policy owner in writing and will indicate the amount of the
payment required to avoid lapse. The Policy owner will then have
a grace period of 61 days, measured from the date the notice is
sent, to make sufficient payment. If sufficient payment is not
received during the grace period, RBSL will lapse the Policy.
RBSL will use the Cash Surrender Value to continue the Policy in
force during the grace period. If the Death Benefit Guarantee is
in effect, RBSL will not lapse the Policy.
REINSTATEMENT. Reinstatement means putting a lapsed Policy back
in force. The Policy owner may reinstate a lapsed Policy by
written request any time within five years after it has lapsed if
it has not been surrendered for its Cash Surrender Value.
To reinstate the Policy and any riders the owner must submit
evidence of insurability satisfactory to RBSL and must pay a
premium large enough that the Net Premium is as large as the sum
of the Surrender Charge after reinstatement, plus the Monthly
Deductions for the date of reinstatement and the following
Monthly Anniversary.
The Death Benefit Guarantee cannot be reinstated.
(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 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.
There is no such indenture or agreement.
VOTING RIGHTS. The Policy owner has the right to instruct RBSL
how to vote the Fund shares attributable to the Policy at regular
meetings and special meetings of the Funds. RBSL will vote the
Fund shares held in Sub-Accounts according to the instructions
received, as long as:
- The Variable Account is registered as a unit investment
trust under the Investment Company Act of 1940, and
- The assets of the Variable Account are invested in Fund
shares.
If RBSL determines that, because of applicable law or regulation,
it does not have to vote according to the voting instructions
received, it will vote the Fund shares at its discretion.
All persons entitled to voting rights and the number of votes
they may cast are determined as of a record date, selected by
RBSL, not more than 90 days before the meeting of the Fund. All
Fund proxy materials and appropriate forms used to give voting
instructions will be sent to persons having voting interest.
If RBSL does not receive timely voting instructions, it will vote
the Fund shares in proportion to the instructions which are
received for all Policies having a voting interest in that Fund.
Owning the Policy does not give the owner the right to vote at
meetings of RBSL's stockholders and/or policyholders.
DISREGARD OF VOTING INSTRUCTIONS. RBSL may, when required by
state insurance regulatory authorities, disregard voting
instructions if the instructions require that the shares be voted
so as to cause a change in the subclassification or investment
objective of any Fund or to approve or disapprove an investment
advisory contract for any Fund. In addition, RBSL may disregard
voting instructions in favor of changes initiated by a Policy
owner in the investment policy or the investment adviser of any
Fund if it reasonably disapproves of such changes. A change would
be disapproved only if the proposed change is contrary to state
law or prohibited by state regulatory authorities or we determine
that the change would have an adverse effect on the Variable
Account in that the proposed investment policy for a Fund may
result in speculative or unsound investment. In the event RBSL
does disregard voting instructions, a summary of that action and
the reasons for such action will be included in the next annual
report to owners.
(g) WHETHER SECURITY HOLDERS MUST BE GIVEN NOTICE OF ANY CHANGE IN:
(1) THE COMPOSITION OF THE ASSETS OF THE TRUST.
RBSL may substitute shares of any of the Funds for another
mutual fund if any of the following occurs:
- The shares of any Fund are no longer available
for purchase by a Sub-Account.
- In RBSL's judgment, investment in a particular
Fund becomes inappropriate in view of the purposes
of the Policy.
- RBSL deems it necessary under the Investment Company
Act of 1940.
Any substitution would be done with notice to Policy Owners
and prior approval by the SEC to the extent required by the
Investment Company Act of 1940 or other applicable law.
RBSL also reserves the right to establish additional
Sub-Accounts of the Variable Account, each of which could
invest in a new Fund with a specified investment objective.
New Sub-Accounts may be established when, in the sole
discretion of RBSL, marketing needs or investment conditions
warrant, and any new Sub-Accounts will be made available to
existing Policy owners on a basis to be determined by RBSL.
RBSL may also eliminate one or more Sub-Accounts if, in its
sole discretion, marketing, tax or investment conditions
warrant.
In the event of any such substitution or change, RBSL may
make such changes in Policies as may be necessary or
appropriate to reflect such substitution or change. If
deemed by RBSL to be in the best interests of persons having
voting rights under the Policies, the Variable Account may
be operated as a management company under the Investment
Company Act of 1940, it may be deregistered under that Act
in the event such registration is no longer required, or it
may be combined with other RBSL separate accounts.
In no event will any of the changes described above be made
without notice to the Policy owners in accordance with the
Investment Company Act of 1940.
(2) THE TERMS AND CONDITIONS OF THE SECURITIES ISSUED BY THE
TRUST.
Notice must be given to Policy owners of any change in the
terms and conditions of the Policies. See the answer to Item
10 (h)(2) with respect to the necessity of a consent by the
Policy owners to such changes.
(3) THE PROVISIONS OF ANY INDENTURE OR AGREEMENT OF THE TRUST.
No change in the resolution establishing the Variable
Account or in any agreement relating to the manner in which
it is operated will be made without notice to Policy owners
if such change would adversely affect any right or benefit
to which they are entitled.
(4) THE IDENTITY OF THE DEPOSITOR, TRUSTEE OR CUSTODIAN.
The Variable Account has no trustee. The depositor of the
Variable Account cannot be changed. Any change in custodian
will be reflected in the Variable Account's prospectus which
is distributed to each Policy owner on an annual basis.
(h) WHETHER THE CONSENT OF SECURITY HOLDERS IS REQUIRED IN ORDER FOR
ACTION TO BE TAKEN CONCERNING ANY CHANGE IN:
(1) THE COMPOSITION OF THE ASSETS OF THE TRUST.
The consent of the Policy owners is not required in order
for RBSL to invest the assets of the Variable Account in
securities other than shares of the Funds as a substitute
for such shares already purchased or as the securities to be
purchased in the future. Such action will be taken in
compliance with applicable law (including any approval
required by the SEC). The consent of Policy owners is not
required in order for RBSL to make available, subject to
applicable law, additional Sub-Accounts of the Variable
Account investing in additional Funds.
(2) THE TERMS AND CONDITIONS OF THE SECURITIES ISSUED BY THE
TRUST.
The terms and conditions of a Policy cannot be changed
without the consent of a Policy owner.
(3) THE PROVISIONS OF ANY INDENTURE OR AGREEMENT OF THE TRUST.
No.
(4) THE IDENTITY OF THE DEPOSITOR, TRUSTEE OR CUSTODIAN.
The Variable Account has no trustee. The depositor of the
Variable Account cannot be changed. The consent of Policy
owners is not required for action to be taken concerning a
change in the identity of the custodian.
(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.
PREMIUMS. There is no insurance under a Policy until the initial
premium is paid, which must be equal to or greater than the
Minimum Monthly Premium.
The Policy owner chooses the initial allocation of Net Premiums
to the Fixed Account and the Sub-Accounts of the Variable Account
on the application for the Policy. The owner may change the
allocation at any time by notifying RBSL in writing. Changes will
not be effective until the date RBSL received the owner's request
and will only affect premiums RBSL receives on or after that
date. The allocation may be 100% to any Account or divided in
whole percentage points totaling 100%. RBSL reserves the right to
adjust any allocation to eliminate fractional percentages.
After the initial premium, the owner may determine the amount and
timing of subsequent premium payments within the following
restrictions:
- RBSL may choose not to accept any premium less than
$25.00.
- While there is no stated maximum, RBSL reserves the right
to limit the amount of any premium payment.
- RBSL may require additional evidence of insurability
satisfactory to it if any premium would increase the
difference between the Death Benefit and the Accumulation
Value.
- RBSL will return to the owner any premium paid which would
disqualify the policy for treatment as life insurance
under federal law.
The Policy owner may choose a Planned Periodic Premium schedule
which indicates a preference as to future amounts and frequency
of payment. The Planned Periodic Premiums may be paid annually,
semi-annually, quarterly or, if the owner chooses, RBSL can also
deduct Planned Periodic Premiums from the owner's bank account
monthly.
The amount and frequency of initial Planned Periodic Premiums
will be shown in the Policy. The Policy owner may change the
Planned Periodic Premium at any time by written request. RBSL may
limit the amount of any increase.
The amount and frequency of premium payments will affect
Accumulation Value, Cash Surrender Value, and how long the Policy
will remain in force. Failure to make any Planned Periodic
Premium payment will not, however, necessarily result in lapse of
the Policy.
Premiums, other than Planned Periodic Premiums, may be paid at
any time while the Policy is in force other than as paid-up
insurance. RBSL may limit the number and amount of these
additional payments.
DEATH BENEFIT. Like traditional life insurance, RBSL pays a Death
Benefit if the insured dies while the Policy is in force. All or
part of the Death Benefit may be paid in cash to the
beneficiaries or under one or more of the Settlement Options
offered by RBSL.
As long as the Policy is in force, RBSL guarantees that the Death
Benefit under either Death Benefit Option described below will
not be less than the current Face Amount minus any Loan Amount
and unpaid Monthly Deductions.
The Policy owner may choose one of two Death Benefit Options on
the application. Under the Level Amount Option, The Death Benefit
is the Face Amount. Under the Variable Amount Option, the Death
Benefit is the Face Amount plus the Accumulation Value of the
Policy.
Under either option, RBSL may be required to increase the Death
Benefit to maintain the Policy's qualification as life insurance
for federal income tax purposes. For the Policy to qualify as
life insurance, current federal law requires that the Death
Benefit be at least a certain multiple of the Policy's
Accumulation Value. These multiples are shown on the Minimum
Death Benefit Table in the Policy and are subject to change as
the federal income tax laws and regulations change.
Assuming the same premium payments and investment performance,
the Death Benefit will be higher under the Variable Amount
Option, and the Accumulation Value (and the Cash Surrender Value)
will be lower under that option than under the Level Amount
Option. Also, the Minimum Monthly Premium for the Variable Amount
Option is greater than for the Level Amount Option.
REQUESTED CHANGES IN FACE AMOUNT. Subject to certain limitations,
the Policy owner may request an increase or decrease in the Face
Amount. No increase or decrease in the Face Amount will be
permitted during the first two Policy years.
For an increase in the Face Amount, a written request must be
submitted. RBSL may also require additional evidence of
insurability satisfactory to it. The effective date of the
increase will be the Monthly Anniversary on or next following
RBSL's approval of the increase. The increase may not be less
than $5,000 and no increase will be permitted after the Policy
Anniversary on or next following the insured's 75th birthday.
RBSL will deduct any charges associated with the increase from
the Accumulation Value, whether or not the owner pays an
additional premium in connection with the increase.
Any decrease in the Face Amount will be effective on the Monthly
Anniversary on or next following receipt by RBSL of a written
request. The owner cannot request a decrease in the Face Amount
more frequently than once every six months. The Face Amount
remaining in force after any requested decrease may not be less
than the Minimum Face Amount shown in the Policy. Under RBSL's
current policies, the Minimum Face Amount is $25,000, but is
reserves the right to establish a different Minimum Face Amount
in the future. If, following a decrease in Face Amount, the
Policy would no longer qualify as life insurance under federal
tax law, the decrease may be limited, or, at the owner's option,
part of the Accumulation Value may be returned to the owner, to
the extent necessary to meet these requirements. For purposes of
determining the cost of insurance, the Face Amount will be
reduced in the following order:
(a) The Face Amount provided by the most recent increase;
(b) The next most recent increases successively; and
(c) The Face Amount when the Policy was issued.
An increase or decrease in Face Amount will affect the Monthly
Deduction because the cost of insurance, the Monthly Expense
Charge, and the Death Benefit Guarantee Charge depend upon the
Face Amount. The charge for certain optional insurance benefits
may also be affected. An increase in the Face Amount will
increase the Surrender Charge, but a decrease in the Face Amount
will not reduce the Surrender Charge.
An increase in the Face Amount will increase the Minimum Monthly
Premium as of the effective date of the increase. Therefore,
additional premium payments may be required to maintain the Death
Benefit Guarantee. A decrease in the Face Amount will reduce the
Minimum Monthly Premium as of the effective date of the decrease.
CHANGES IN DEATH BENEFIT OPTION. The Policy owner may request in
writing to change the Death Benefit Option. If the owner changes
from the Level Amount Option to the Variable Amount Option, the
Face Amount is decreased. The new Face Amount is the Death
Benefit minus the Accumulation Value as of the Monthly
Anniversary on or next following the date RBSL receives the
request. The owner cannot change the Death Benefit Option if the
resulting Face Amount would fall below the Minimum Face Amount.
If the owner changes from the Variable Amount Option to the Level
Amount Option, the Face Amount is increased. The new Face Amount
is the Accumulation Value plus the Face Amount on the Monthly
Anniversary on or next following the date RBSL receives the
request.
An increase or decrease in Face Amount resulting from a change in
the Death Benefit Option will affect the Monthly Deduction
because the cost of insurance, the Monthly Expense Charge, and
the Death Benefit Guarantee Charge depend upon the Face Amount.
The charge for certain optional insurance benefits may also be
affected. The Surrender Charge, however, will not be affected by
a change in the Death Benefit Option.
A change in Death Benefit Option will affect the Minimum Monthly
Premium as of the effective date of the change. Therefore,
additional premium payments may be required to maintain the Death
Benefit Guarantee.
Changes in the Death Benefit Option do not require additional
evidence of insurability.
DEATH BENEFIT GUARANTEE. Until the Policy Anniversary on or next
following the insured's 65th birthday, if the Policy owner meets
the Minimum Premium Requirement described below RBSL guarantees
that it will not lapse the Policy even if the investment
performance of the selected Funds results in a Cash Surrender
Value that is not sufficient to pay the Monthly Deduction due.
The Minimum Premium Requirement is met if, on each Monthly
Anniversary on or before the Policy Anniversary next following
the insured's 65th birthday, A is equal to or greater than B,
where:
A
is the sum of all premiums paid minus any partial withdrawals and
any Loan Amount.
B
is the sum of the Minimum Monthly Premiums since the Policy Date,
including the Minimum Monthly Premium for the current Monthly
Anniversary.
The amount of the Minimum Monthly Premium will be set forth in
the Policy, and will depend on the insured's sex, age at issue,
Rate Class, Death Benefit Option, optional insurance benefits
added by rider, and the initial Face Amount.
Although RBSL determines each month whether or not the Policy
owner has met the Minimum Premium Requirement, the owner does not
have to pay premiums monthly.
If on any Monthly Anniversary the Minimum Premium Requirement is
not met, RBSL will send the Policy owner notice of the required
payment. If RBSL does not receive the required premium by the
next Monthly Anniversary, the Death Benefit Guarantee is no
longer in effect and cannot be reinstated.
The Minimum Monthly Premium, and therefore the Minimum Premium
Requirement, will be affected by a requested increase or decrease
in the Face Amount, a change in the Death Benefit Option, or the
addition or termination of a Policy rider. RBSL will notify the
Policy owner of any changes in the Minimum Monthly Premium.
ACCUMULATION VALUE. The Accumulation Value of the Policy is equal
to the sum of the Variable Accumulation Value plus the Fixed
Accumulation Value. The Policy may be surrendered at any time for
its Accumulation Value reduced by any Surrender Charges, Loan
Amount and unpaid Monthly Deductions (that is, its Cash Surrender
Value).
Variable Accumulation Value
The Variable Accumulation Value is the total of the values in
each Sub-Account. The value for each Sub-Account is equal to:
A multiplied by B, where:
A
is the current number of Accumulation Units relating to the
Policy.
B
is the current Unit Value.
The Variable Accumulation Value will vary from Valuation Date to
Valuation Date reflecting changes in A and B above.
ACCUMULATION UNITS. When transactions are made which affect
the Variable Accumulation Value, dollar amounts are
converted to Accumulation Units. The number of Accumulation
Units for a transaction is found by dividing the dollar
amount of the transaction by the current Unit Value.
The number of Accumulation Units for a Sub-Account increases
when:
- Net Premiums are credited to that Sub-Account;
or
- Transfers from the Fixed Account or other
Sub-Accounts are credited to that Sub-Account.
The number of Accumulation Units for a Sub-Account decreases
when:
- The Policy owner takes out a Policy loan from
that Sub-Account;
- The owner takes a partial withdrawal from that
Sub-Account;
- RBSL takes a portion of the Monthly Deduction from
that Sub-Account; or
- Transfers are made from that Sub-Account to the
Fixed Account or other Sub-Accounts.
UNIT VALUE. The Unit Value for a Sub-Account on any
Valuation Date is equal to the previous Unit Value times the
Net Investment Factor for that Sub-Account for the Valuation
Period ending on that Valuation Date. The Unit Value is
initially set when the Sub-Account first purchased Fund
shares.
NET INVESTMENT FACTOR. The Net Investment Factor is a number
that reflects charges to the Policy and the investment
performance during a Valuation Period of the Fund in which a
Sub-Account is invested. If the Net Investment Factor is
greater than one, the Unit Value is increased. If the Net
Investment Factor is less than one, the Unit Value is
decreased. The Net Investment Factor for a Sub-Account is
determined by dividing A by B and then subtracting C from
the result,
(A/B) - C, where:
A
is the net result of:
- the net asset value per share of the Fund shares in
which the Sub-Account invests, determined at the end
of the current Valuation Period;
- plus the per share amount of any dividend or capital
gain distributions made on the Fund shares in which
the Sub-Account invests during the current Valuation
Period;
- plus or minus a per share charge or credit for any
taxes reserved for which RBSL determines to have
resulted from the investment operations of the Sub-
Account and to be applicable to the Policy.
B
is the result of:
- the net asset value per share of the Fund shares
held in the Sub-Account, determined at the end of the
last prior Valuation Period;
- plus or minus a per share charge or credit for any
taxes reserved for during the last prior Valuation
Period which RBSL determines to have resulted from
the investment operations of the Sub-Account and to
be applicable to the Policy.
C
is a factor representing the Mortality Risk Charge and the
Expense Risk Charge deducted from the Sub-Account (see the
answer to Item 13(a)), which factor is equal, on an annual
basis, to .75% of the daily net asset value of the
Sub-Account.
Fixed Accumulation Value
The Fixed Accumulation Value on the Policy Date is the Net
Premium credited to the Fixed account on that date minus the
Monthly Deduction applicable to the Fixed Accumulation Value
for the first Policy Month.
After the Policy Date, the Fixed Accumulation Value is
calculated as:
A + B + C + D - E - F, where:
A
is the Fixed Accumulation Value on the preceding Monthly
Anniversary, plus interest from the Monthly Anniversary to the
date of the calculation.
B
is the total of the Net Premiums credited to the Fixed Account
since the preceding Monthly Anniversary, plus interest from the
date premiums are credited to the date of the calculation.
C
is the total of the transfers from the Variable Account to the
Fixed Account since the preceding Monthly Anniversary, plus
interest from the date of transfer to the date of the
calculation.
D
is the total of the Loan Amounts transferred from the Variable
Account since the preceding Monthly Anniversary.
E
is the total of the transfers to the Variable Account from the
Fixed Account since the preceding Monthly Anniversary, plus
interest from the date of transfer to the date of the
calculation.
F
is the total of the partial withdrawals from the Fixed Account
since the preceding Monthly Anniversary, plus interest from the
date or withdrawal to the date of the calculation.
If the date of the calculation is a Monthly Anniversary, RBSL
also reduces the Fixed Accumulation Value by the applicable
Monthly Deduction for the Policy Month following the Monthly
Anniversary.
The minimum interest rate applied in the calculation of the Fixed
Accumulation Value is an effective annual rate of 4%. Interest in
excess of the minimum rate may be applied in the calculation of
the Fixed Accumulation Value in a manner which RBSL's Board of
Directors determines.
LOANS. See the answer to Item 21.
SETTLEMENT OPTIONS. Settlement Options are ways the Policy owner
can choose to have the Policy's proceeds paid. These options
apply to proceeds paid:
- At the insured's death.
- On surrender of the Policy.
The proceeds are paid to one or more payees. The proceeds may be
paid in a lump sum or may be applied to one of the following
Settlement Options. A combination of options may be used. At
least $2,500 must be applied to any option for each payee under
that option. Under an installment option, each payment must be at
least $25.00. RBSL may adjust the interval to make each payment
at least $25.00.
Proceeds applied to any Option no longer earn interest at the
rate applied to the Fixed Account or participate in the
investment performance of the Funds.
Option 1 - Proceeds are left with RBSL to earn interest.
Withdrawals and any changes are subject to approval by RBSL.
Option 2 - Proceeds and interest are paid in equal installments
of a specified amount until the proceeds and interest are all
paid.
Option 3 - Proceeds and interest are paid in equal installments
for a specified period until the proceeds and interest are all
paid.
Option 4 - The proceeds provide an annuity payment with a
specified number of months "certain". The payments are continued
for the life of the primary payee. If the primary payee dies
before the certain period is over, the remaining payments are
paid to a contingent payee.
Option 5 - The proceeds provide a life income for two payees.
When one payee dies, the surviving payee receives 2/3 of the
amount of the joint monthly payment for life.
Option 6 - The proceeds are used to provide an annuity based on
the rates in effect when the proceeds are applied. RBSL does not
apply this option if a similar option would be more favorable to
the payee at that time.
RBSL bases the interest rate for proceeds applied under options 1
and 2 on the interest rate it declares on funds that we consider
to be in the same classification based on the option,
restrictions on withdrawal, and other factors. The interest rate
will never be less than an effective annual rate of 3 1/2%.
In determining amounts to be paid under options 3 and 4, RBSL
assumes interest at an effective annual rate of 3 1/2%. Also, for
option 3 and "certain" periods under option 4, RBSL credits any
excess interest it may declare on funds that it considers to be
in the same classification based on the option, restrictions on
withdrawal, and other factors.
PAID-UP INSURANCE. At any time before the Policy Anniversary on
or next following the insured's 95th birthday, the Policy owner
may, by written request, use the Cash Surrender Value to purchase
a single premium paid-up life insurance under the Policy for a
reduced Face Amount. If the Policy is in force as paid-up life
insurance, the owner cannot pay any additional premiums or make
any partial withdrawals. The Face Amount and cash surrender
values will be based on an effective annual interest rate of 4%
and mortality charges based on the Commissioners 1980 Standard
Ordinary Mortality Table.
On the Policy Anniversary on or next following the insured's 95th
birthday, the Cash Surrender Value will automatically be used to
purchase single premium paid-up life insurance. In most cases,
the Face Amount of the paid-up life insurance will be less than
the Death Benefit at that time.
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.
INVESTMENTS OF THE VARIABLE ACCOUNT. There are currently seventeen
investment alternatives available under the Variable Account. Fidelity
Management & Research Company is the investment adviser for the five
portfolios of VIP and the four portfolios of VIP II. Northstar
Investment Management Corporation, an affiliate of RBSL, is the
investment adviser of the two Northstar Funds. Putnam Management is
the investment adviser for the six funds of Putnam Variable Trust.
RBSL reserves the right to establish additional Sub-Accounts of the
Variable Account, each of which could invest in a new Fund with a
specified investment objective. New Sub-Accounts may be established
when, in RBSL's sole discretion, marketing needs or investment
conditions warrant, and any new Sub-Accounts will be made available to
existing Policy owners on a basis determined by RBSL.
The Net Premium is credited to one or more Sub-Accounts of the
Variable Account chosen by you. The assets of each Sub-Account are
invested in shares, at net asset value, of the related Fund.
A Sub-Account may be unable to invest Net Premiums in shares of a Fund
if Net Premiums to be invested in shares in that Fund on a given day
do not meet the Fund's minimum purchase requirement, or if, in the
judgment of RBSL's management, further investment in that Fund's
shares would be inappropriate in view of the purposes of the Policy.
If RBSL is unable to invest Net Premiums for one of the above reasons,
it will notify the owners of the Policies involved. They may then
request the allocation of the premiums to a different Sub-Account or
to the Fixed Account. The new allocation will be effective on the next
Valuation Date after RBSL receives an owner's written request. Until
RBSL receives such a written request, the Net Premium will be invested
in shares of VIP's Money Market Portfolio, if available; otherwise it
will be credited to the Fixed Account.
The Funds currently offered are described below. A brief summary of
investment objectives is contained in the description of each Fund.
The Funds described below distribute dividends and capital gains.
However, distributions are automatically reinvested in additional Fund
shares, at net asset value. The Sub-Account received the distributions
which are then reflected in the Unit Value of that Sub-Account (see
the answer to Item 10(I)).
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND (VIP)
VIP is a mutual fund trust currently includinig five investment
portfolios, each with a different investment objective.
MONEY MARKET PORTFOLIO seeks to obtain as high a level of current
income as is consistent with preserving capital and providing
liquidity. The portfolio will invest only in high-quality U.S. dollar
denominated money market instruments of domestic and foreign issuers.
An investment in the portfolio is not insured or guaranteed by the
U.S. Government, and there can be no assurance that the Portfolio will
maintain a stable net asset value per share of $1.00.
HIGH INCOME PORTFOLIO seeks to obtain a high level of current income
by investing primarily in high-yielding, lower-rated fixed-income
securities (sometimes referred to as "junk bonds"), while also
considering growth of capital. Lower-rated fixed-income securities are
considered speculative and involve greater risk of default than
higher-rated fixed-income securities and are more sensitive to the
issuer's capacity to pay. Consult the VIP Prospectus for further
information on the risks associated with the portfolio's investment in
lower-rated fixed-income securities.
EQUITY-INCOME PORTFOLIO seeks reasonable income by investing primarily
in income-producing equity securities. In choosing these securities
the portfolio will also consider the potential for capital
appreciation. The portfolio's goal is to achieve a yield which exceeds
the composite yield on the securities comprising the Standard & Poor's
Composite Index of 500 Stocks.
GROWTH PORTFOLIO seeks to achieve capital appreciation. The portfolio
normally purchases common stocks, although its investments are not
restricted to any one type of security. Capital appreciation may also
be found in other types of securities, including bonds and preferred
stocks.
OVERSEAS PORTFOLIO seeks long term growth of capital primarily through
investments in foreign securities. The Overseas Portfolio provides a
means for investors to diversify their own portfolios by participating
in companies and economies outside of the United States.
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND II (VIP II)
VIP II is a mutual fund trust currently including five investment
portfolios, each with a different investment objective. Presently, the
following four portfolios are available within this Policy.
ASSET MANAGER PORTFOLIO seeks high total return with reduced risk over
the long-term by allocating its assets among domestic and foreign
stocks, bonds and short-term fixed-income instruments.
INVESTMENT GRADE BOND PORTFOLIO seeks as high a level of current
income as is consistent with the preservation of capital by investing
in a broad range of investment-grade fixed-income securities.
INDEX 500 PORTFOLIO seeks to provide investment results that
correspond to the total return (i.e., the combination of capital
changes and income) of common stocks publicly traded in the United
States. In seeking this objective, the portfolio attempts to duplicate
the composition and total return of the Standard & Poor's Composite
Index of 500 Stocks while keeping transaction costs and other expenses
low. The portfolio is designed as a long-term investment option.
CONTRAFUND PORTFOLIO seeks capital appreciation by investing in
companies believed to be undervalued due to an overly pessimistic
appraisal by the public. The portfolio invests primarily in common
stock and securities convertible into common stock, but it has the
flexibility to invest in any type of security that may produce capital
appreciation.
NORTHSTAR VARIABLE TRUST (NORTHSTAR)
Northstar is a diversified management investment company currently
offering four investment funds, each with a different investment
objective. The following two Northstar Funds are available under this
Policy.
NORTHSTAR INCOME AND GROWTH FUND is a diversified portfolio with an
investment objective of seeking current income balanced with the
objective of achieving capital appreciation. This Fund will seek to
achieve its objective through investments in common and preferred
stocks, convertible securities, investment grade corporate debt
securities and government securities, selected for their prospects of
producing income and capital appreciation. Wilson/Bennett Capital
Management, Inc. ("Wilson/Bennett") is the sub-adviser to this Fund
and is responsible for the day-to-day investment management of the
Fund, subject to the supervision of the investment adviser and the
Trustees of the Fund.
NORTHSTAR MULTI-SECTOR BOND FUND is a diversified portfolio with an
investment objective of maximizing current income. This Fund will seek
to achieve its objective by investment in the following sectors of the
fixed income securities markets: (a) securities issued or guaranteed
as to principal and interest by the U.S. Government, its agencies,
authorities or instrumentalities; (b) investment grade corporate debt
securities; (c) investment grade or comparable quality debt securities
issued by foreign corporate issuers, and securities issued by foreign
governments and their political subdivisions, limited to 35% of assets
determined at the time of investment; and (d) high yield-high risk
fixed income securities of U.S. and foreign issuers, limited to 50% of
assets determined at the time of investment.
PUTNAM VARIABLE TRUST
Putnam Variable Trust is a mutual fund currently offering sixteen
investment funds, each with a different investment objective.
Presently, only the following six funds are available under this
Policy.
PUTNAM VT DIVERSIFIED INCOME FUND seeks high current income consistent
with capital preservation by investing in the following three sectors
of the fixed income securities markets: a U.S. Government Sector, a
High Yield Sector (which invests primarily in securities that are
commonly known as "junk bonds") and an International Sector. Consult
the Putnam Variable Trust Prospectus for further information on the
risks associated with this Fund's investments in high-yield
higher-risk fixed income securities.
PUTNAM VT GROWTH AND INCOME FUND seeks capital growth and current
income by investing primarily in common stocks that offer potential
for capital growth, current income, or both.
PUTNAM VT UTILITIES GROWTH AND INCOME FUND seeks capital growth and
current income by concentrating its investments in debt and equity
securities issued by companies in the public utilities industries.
PUTNAM VT VOYAGER FUND seeks capital appreciation primarily from a
portfolio of common stocks that Putnam Management believes have
potential for capital appreciation that is significantly greater than
that of market averages.
PUTNAM VT ASIA PACIFIC GROWTH FUND seeks capital appreciation by
investing primarily in securities of companies located in Asia and in
the Pacific Basin. The Fund's investments will normally include common
stocks, preferred stocks, securities convertible into common stocks or
preferred stocks, and warrants to purchase common stocks or preferred
stocks.
PUTNAM VT NEW OPPORTUNITIES FUND seeks long-term capital appreciation
by investing principally in common stocks of companies in sectors of
the economy which Putnam Management believes possess above-average
long-term growth potential.
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 COMPANY.
See the answer to Item 11.
(b) NAME AND PRINCIPAL BUSINESS ADDRESS OF DEPOSITOR.
Not applicable.
(c) NAME AND PRINCIPAL ADDRESS OF TRUSTEE OR CUSTODIAN.
See the answer to Item 11.
(d) NAME AND PRINCIPAL ADDRESS OF PRINCIPAL UNDERWRITER.
Not applicable.
(e) THE PERIOD DURING WHICH THE SECURITIES OF SUCH COMPANY HAVE BEEN
THE UNDERLYING SECURITIES.
Not applicable.
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.
(1) PRINCIPAL PAYMENTS
RBSL deducts a Premium Expense Charge which is 5% of each premium
payment. The amount remaining after RBSL has deducted the Premium
Expense Charge is called the Net Premium. The Net Premium is then
credited to the Fixed Account and the Sub-Accounts of the
Variable Account according to the owner's allocation.
(2) UNDERLYING SECURITIES
The investment adviser of each of the currently available Funds,
is paid a daily charge by such Funds for its investment
management services.
(3) DISTRIBUTIONS
SURRENDER CHARGE. During the first fifteen Policy Years and
during the first fifteen years following any requested increase
in Face Amount, RBSL makes a Surrender Charge if the Policy owner
surrenders the Policy or the Policy lapses. The maximum Surrender
Charge for the Initial Face Amount or any requested increase in
Face Amount will be determined on the Policy Date or on the
effective date of any requested increase respectively. The
Surrender Charge remains level for the first five years in the
relevant 15 year period, and then reduces in equal monthly
increments until it becomes zero at the end of 15 years. Thus if
the Policy remains in force during the entire relevant 15-year
period, the Policy Owner does not pay the Surrender Charge. The
Surrender Charge will vary depending on the Age of the Insured,
the sex of the Insured, and the Rate Class of the Insured (on the
Policy Date or on the effective date of an increase in Face
Amount).
The Surrender Charge for the Initial Face Amount or any requested
increase in Face Amount is determined by multiplying (i) the
applicable Surrender Charge Per $1,000 Face Amount from the
Maximum Surrender Charge Per $1,000 of Fair Amount Table which is
part of the Policy ("Appendix D") by (ii) the Initial Face Amount
or the Face Amount of the increase, as applicable, and by (iii)
the applicable percentage from the Surrender Charge Percentage
Table below, and then dividing this amount by 1000. Then the
Surrender Charge is reduced by the Premium Related Surrender
Charge Reduction.
The Premium Related Surrender Charge Reduction will apply only to
the Surrender Charge for the Initial Face Amount when the
cumulative premiums are less than the Surrender Charge Whole Life
Premium. The Premium Related Surrender Charge Reduction will be
zero when the cumulative premiums equal or exceed the Surrender
Charge Whole Life Premium. The Premium Related Surrender Charge
Reduction also will be zero for any requested increase in Face
Amount. The Premium Related Surrender Charge Reduction for the
Initial Face Amount is calculated by multiplying 70% by the
excess of (i) the Surrender Charge Whole Life Premium over (ii)
the cumulative premiums. The Surrender Charge Whole Life premium
is calculated by multiplying (i) the applicable Surrender Charge
Whole Life premium per $1000 of Face Amount from a table called
Surrender Charge Whole Life Premium Per $1,000 of Face Amount
("Appendix E") by (ii) the Initial Face Amount, and then dividing
by 1000.
EXAMPLE. The following example illustrates how the Surrender
Charge is determined. Assume that a male nonsmoker, Age 35 buys a
Policy with an initial Face Amount of $100,000 and he surrenders
the Policy during the third Policy Year at which time he has paid
cumulative premiums of $2,000.
Based on these assumptions the Surrender Charge will be the
result of multiplying (i) $16.20 (from Appendix D for a male
nonsmoker Age 35) by (ii) $100,000 (the Initial Face Amount) and
by (iii) 100% (the applicable percentage from the Surrender
Charge Percentage Table), and then dividing by 1000, which
results in a Surrender Charge of $1,620 ($16.20 x $100,000 x 100%
/ 1000).
The Surrender Charge Whole Life Premium is determined by
multiplying (i) $11.64 (from Appendix E for a male nonsmoker Age
35) by (ii) $100,000 (the Initial Face Amount), and then dividing
by 1000, which results in a Surrender Charge Whole Life Premium
of $1,164 ($11.64 x $100,000 / 1000). The Surrender Charge Whole
Life Premium of $1,164 is less than the cumulative premium of
$2,000, so the Premium Related Surrender Charge Reduction is
zero.
The additional Surrender Charge for requested increases in Face
Amount will be calculated in the same manner as illustrated in
the example above, except that the Premium Related Surrender
Charge is zero for requested increases in Face Amount.
SURRENDER CHARGE PERCENTAGE TABLE
IF SURRENDER OR LAPSE OCCURS IN THE LAST THE FOLLOWING PERCENTAGE OF THE
MONTH OF POLICY YEAR:* SURRENDER CHARGE WILL BE PAYABLE:**
---------------------- -----------------------------------
1 through 5 100%
6 90%
7 80%
8 70%
9 60%
10 50%
11 40%
12 30%
13 20%
14 10%
15 and later 0%
* For requested increases, years are measured from the date of the increase.
** The percentages reduce equally for each Policy Month during the years
shown. For example, during the seventh Policy Year, the percentage reduces
equally each month from 90% at the end of the sixth Policy Year to 80% at
the end of the seventh Policy Year.
(4) CUMULATED OR REINVESTED DISTRIBUTIONS OR INCOME
All income and other distributions earned by the Variable Account
are reinvested, without charge, at net asset value in shares of
the Fund making the distribution.
(5) REDEEMED OR LIQUIDATED ASSETS OF THE TRUST'S SECURITIES
No load, fee, expense or charge is assessed in connection with
redemptions.
(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.
See the answers to Items 13(a) and 13(d).
(c) STATE (1) THE AMOUNT OF SALES LOAD AS A PERCENTAGE OF THE NET AMOUNT
INVESTED, AND (2) THE AMOUNT OF TOTAL DEDUCTIONS AS A PERCENTAGE OF
THE NET AMOUNT INVESTED FOR EACH TYPE OF SECURITY ISSUED BY THE TRUST.
See the answer to Item 13(a).
(d) 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.
MONTHLY DEDUCTION. RBSL deducts the charges described below from the
Accumulation Value of the Policy on a monthly basis. The total of
these charges is called the Monthly Deduction.
The Monthly Deduction will be deducted on each Monthly Anniversary
from the Fixed Account and the Sub-Accounts of the Variable Account on
a proportionate basis depending on their relative Accumulation Values
at that time. For purposes of determining these proportions, the Fixed
Accumulation Value is reduced by the Loan Amount. Because portions of
the Monthly Deduction, such as the cost of insurance, can vary from
month to month, the Monthly Deduction itself will vary in amount from
month to month.
If the Cash Surrender Value is not sufficient to cover the Monthly
Deduction on a Monthly Anniversary, the Policy may lapse.
COST OF INSURANCE. RBSL will determine the monthly cost of
insurance by multiplying the applicable cost of insurance rate or
rates by the net amount at risk under the Policy. The net amount
at risk under the Policy for a Policy Month is (a) the Death
Benefit at the beginning of the Policy Month divided by 1.004074
(which reduces the net amount at risk, solely for purposes of
computing the cost of insurance, by taking into account assumed
monthly earnings at an annual rate of 5%), less (b) the
Accumulation Value at the beginning of the Policy Month minus any
charges for rider benefits, other than any Waiver of Monthly
Deduction rider, for the month.
The net amount at risk may be affected by changes in the
Accumulation Value or in the Face Amount. If there is an increase
in the Face Amount and the Rate Class applicable to the increase
is different from that for the initial Face Amount, the net
amount at risk will be calculated separately for each Rate Class.
RBSL groups insureds into a Rate Class based on its expectation
that they will have similar mortality experience. For purposes of
determining the net amount at risk for each Rate Class, the
Accumulation Value will first be considered a part of the initial
Face Amount. If the Accumulation Value is greater than the
initial Face Amount, it will then be considered a part of each
increase in order, starting with the first increase.
Cost of insurance rates will be based on the sex, attained age
and Rate Class(es) of the insured. The actual monthly cost of
insurance rates will be based on RBSL's expectations as to future
experience. They will not, however, be greater than the
guaranteed cost of insurance rates shown in the Policy, which are
based on the Commissioners 1980 Standard Ordinary Mortality Table
and the insured's attained age at the last birthday.
MONTHLY ADMINISTRATIVE CHARGE. Each month RBSL deducts an
administrative charge of $7.50 per $1,000 of Face Amount which is
guaranteed not to exceed $10 each month. This charge reimburses
RBSL for expenses incurred in administering the Policy, such as
processing claims, maintaining records, making Policy changes and
communicating with owners of Policies.
MONTHLY MORTALITY AND EXPENSE RISK CHARGE. Each month it is
currently anticipated that RBSL will deduct this charge at an
annual rate of .75 of 1% (.75%) of the Variable Accumulation
Value but in no event will it exceed .9 of 1% (.90%).
OPTIONAL INSURANCE BENEFIT CHARGES. Each month RBSL deducts
charges for any optional insurance benefits added to the Policy
by rider.
CHARGES AGAINST THE VARIABLE ACCOUNT. Certain charges will be deducted
as a percentage of the value of the net assets of the Variable Account
to compensate RBSL as for certain risks assumed in connection with the
Policy. These charges will not be deducted from assets in the Fixed
Account.
Currently no charge is made to the Variable Account for federal income
taxes that may be attributable to the Variable Account. RBSL may,
however, make such a charge in the future. Charges for other taxes, if
any, attributable to the Variable Account may also be made.
Because the Variable Account purchases shares of the Funds, the net
asset value of the investments of the Variable Account will reflect
the investment advisory fees and other expenses incurred by the Funds.
Set forth below is information provided by each Fund on its total 1996
annual expenses as a percentage of the Fund's average net assets. For
more information concerning these expenses, see the prospectuses for
the Funds that accompany this Prospectus.
<TABLE>
<CAPTION>
TOTAL INVESTMENT
MANAGEMENT OTHER FUND ANNUAL
FEES EXPENSES EXPENSES
---- -------- --------
<S> <C> <C> <C>
VIP Money Market Portfolio........................................0.21% 0.09% 0.30%
VIP High Income Portfolio ........................................0.59% 0.12% 0.71%
VIP Equity-Income Portfolio (a)...................................0.51% 0.07% 0.58%
VIP Growth Portfolio (a)..........................................0.61% 0.08% 0.69%
TOTAL INVESTMENT
MANAGEMENT OTHER FUND ANNUAL
FEES EXPENSES EXPENSES
---- -------- --------
VIP Overseas Portfolio (a)........................................0.76% 0.17% 0.93%
VIP II Asset Manager Portfolio (a)................................0.64% 0.10% 0.74%
VIP II Investment Grade Bond Portfolio............................0.45% 0.13% 0.58%
VIP II Index 500 Portfolio (b)....................................0.13% 0.15% 0.28%
VIP II Contrafund Portfolio (a)...................................0.61% 0.13% 0.74%
Northstar Income and Growth Fund (c)..............................0.75% 0.05% 0.80%
Northstar Multi-Sector Bond Fund (c)..............................0.75% 0.05% 0.80%
Putnam VT Diversified Income Fund.................................0.70% 0.13% 0.83%
Putnam VT Growth and Income Fund..................................0.49% 0.05% 0.54%
Putnam VT Utilities Growth and Income Fund (d)....................0.69% 0.09% 0.78%
Putnam VT Voyager Fund............................................0.57% 0.06% 0.63%
Putnam VT Asia Pacific Growth Fund................................0.80% 0.43% 1.23%
Putnam VT New Opportunities Fund..................................0.63% 0.09% 0.72%
</TABLE>
(a) During 1996, a portion of the brokerage commissions that certain funds
pay was used to reduce funds' expenses. In addition, certain funds
have entered into arrangements with their custodian and transfer agent
whereby interest earned on uninvested cash balances was used to reduce
custodian and transfer agent expenses. Including these reductions, the
total operating expenses would have been .56% for Equity Income
Portfolio, .67% for Growth Portfolio, .92% for Overseas Portfolio,
.73% for Asset Manager Portfolio, and .71% for Contrafund Portfolio.
For more information on the funds' Management Fees and Expenses, see
the prospectus for the Fund.
(b) During 1996, the investment adviser to the Index 500 Portfolio
reimbursed a portion of the fund's expenses. Without the
reimbursement, the fund's management fee, other expenses and total
expenses would have been .28%, .15%, and .43%, respectively. For more
information on the fund's Management Fees and Expenses, see the
prospectus for the Fund.
(c) The investment adviser to the Northstar Variable Trust has agreed to
reimburse the two Northstar Funds for any expenses in excess of 0.80%
of each Fund's average daily net assets. In the absence of the
investment adviser's expense reimbursements, the actual expenses that
would have been paid by each Fund during its fiscal year ended
December 31, 1996 would have been 1.40% for Income and Growth Fund and
1.68% for Multi-Sector Bond Fund.
(d) On July 11, 1996, shareholders approved an increase in the fees
payable to Putnam Investment Management, Inc. ("Putnam Management")
under the management contract for Putnam VT Utilities Growth and
Income Fund. The management fees and total expenses shown in the table
have been restated to reflect the increase. Actual management fees and
total expenses were 0.64% and 0.73%, respectively.
PARTIAL WITHDRAWAL AND TRANSFER CHARGES
RBSL currently make no charge for transfers. It currently charge
$10.00 for each partial withdrawal. The charge for transfers is
guaranteed not to exceed $25.00 per transfer for transfers in excess
of 12 per Policy Year for the duration of the Policy. The charge for
partial withdrawals is guaranteed not to exceed $25.00 for the
duration of the Policy. The transfer charge will not be imposed on
transfers that occur as a result of Policy loans or the exercise of
conversion rights.
(e) 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
INTEREST IN SUCH SECURITIES, OR UNDERLYING SECURITIES OR INTERESTS IN
UNDERLYING SECURITIES, AND DESCRIBE FULLY THE NATURE AND EXTENT OF
SUCH PROFITS OR BENEFITS.
There is no trustee. Neither RBSL as custodian or depositor, nor the
Distributor as principal underwriter, nor any affiliated person of
RBSL or of the Distributor, will receive profits or other benefits
from premium payments under the Policies or the investments held in
the Variable Account not included in the answers to Items 13(a) and
13(d) through the sale or purchase of the Policies or shares of the
Fund, except that (1) RBSL may receive a profit to the extent that the
cost of insurance built into a Policy exceeds the actual cost of
insurance needed to pay the benefits, (2) favorable mortality or
expense experience may cause the insurance provided under a Policy to
be profitable to RBSL, (3) RBSL and/or the Distributor will compensate
certain other persons for services rendered in connection with the
distribution of a Policy, as described in the answer to Item 38, but
such payments will be made from RBSL's general account or by the
Distributor, as the case may be, and (4) Northstar Investment
Management Corporation will receive an advisory fee from the currently
available Funds, as described in the answer to Item 13(a).
(f) 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.
The Variable Account has not yet commenced operations.
INFORMATION CONCERNING THE OPERATIONS OF THE TRUST
14. DESCRIBE THE PROCEDURE WITH RESPECT TO THE APPLICATIONS (IF ANY) AND
THE ISSUANCE AND AUTHENTICATION OF THE TRUST'S SECURITIES, AND STATE
THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT
PERTAINING THERETO.
The Policies will be offered and sold pursuant to established premium
schedules and underwriting standards and in accordance with state
insurance laws. Such laws prohibit unfair discrimination among Policy
owners, but recognize that premiums must be based upon factors such as
age, sec, health and occupation. A person desiring to purchase a
Policy must complete an application on a form provided by RBSL, and,
if the applicant meets the prescribed standards, a Policy will be
issued. This process may involve such procedures as medical
examinations and may require that further information be provided
before a determination can be made.
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.
See the answer to Item 10(i) with regard to the payment and allocation
of premiums.
Individuals wishing to purchase a Policy must make application to
RBSL. A Policy will be issued only to insureds who supply satisfactory
evidence of insurability to RBSL. Acceptance is subject to RBSL's
underwriting rules and RBSL reserves the right to reject an
application for any reason.
When an application for a Policy is completed, it is submitted to
RBSL. RBSL performs suitability and insurance underwriting reviews and
determines whether to accept or reject the application for the Policy
and the insured's risk classification. If a Policy is not issued, RBSL
will refund any premium that has been paid in advance.
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 assets of each Sub-Account of the Variable Account are invested in
shares of one of the Funds at their net asset value next computed
after receipt of the purchase order. Similarly, the Funds redeem their
shares at net asset value next computed after receipt of the request
for redemption. The value of the assets of each of the Funds is
determined as of the close of the New York Stock Exchange on each
Valuation Date.
17. (a) DESCRIBE THE PROCEDURE WITH RESPECT TO WITHDRAWAL OR REDEMPTION
BY SECURITY HOLDERS.
See the answers to Items 10(c), 10(d), 10(e) and 10(i).
(b) FURNISH THE NAMES OF ANY PERSONS WHO MAY REDEEM OR REPURCHASE, OR
ARE REQUIRED TO REDEEM OR REPURCHASE, THE TRUST'S SECURITIES OR
UNDERLYING THE SECURITIES FROM SECURITY HOLDERS, AND THE
SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR AGREEMENT
PERTAINING THERETO.
RBSL is required by the terms of the Policies to honor requests
for redemption where permitted. RBSL causes redemption of shares
of the Funds held by the Variable Account as necessary to make
payments from the assets of the Variable Account.
(c) INDICATE WHETHER REPURCHASED OR REDEEMED SECURITIES WILL BE
CANCELED OR MAY BE RESOLD.
Upon termination, a Policy may not be resold.
18. (a) DESCRIBE THE PROCEDURE WITH RESPECT TO THE RECEIPT, CUSTODY AND
DISPOSITION OF THE INCOME AND OTHER DISTRIBUTABLE FUNDS OF THE
TRUST AND STATE THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE
OR AGREEMENT PERTAINING THERETO.
Distributions in respect of the shares of each of the Funds held
by the Variable Account are reinvested in shares of that Fund at
net asset value, which shares are added to the assets of the
appropriate Sub-Account of the Variable 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.
Not applicable. See the answer to Item 18(a).
(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.
Net Premiums placed in the Variable Account constitute reserves
for benefits under the Policies.
(d) SUBMIT A SCHEDULE SHOWING THE PERIODIC AND SPECIAL DISTRIBUTIONS
WHICH HAVE BEEN MADE TO SECURITY HOLDERS DURING THE THREE YEARS
COVERED BY THE FINANCIAL STATEMENTS FILED HEREWITH. STATE FOR
EACH SUCH DISTRIBUTION THE AGGREGATE AMOUNT AND AMOUNT PER SHARE.
IF DISTRIBUTIONS FROM SOURCES OTHER THAN CURRENT INCOME HAVE BEEN
MADE, IDENTIFY EACH SUCH OTHER SOURCE AND INDICATE WHETHER SUCH
DISTRIBUTION REPRESENTS THE RETURN OF PRINCIPAL PAYMENTS TO
SECURITY HOLDERS. IF PAYMENTS OTHER THAN CASH WERE MADE, DESCRIBE
THE NATURE THEREOF, THE ACCOUNT CHARGED AND THE BASIS OF
DETERMINING THE AMOUNT OF SUCH CHARGE.
The Variable Account has not yet commenced operations.
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.
RBSL will maintain all records relating to the Variable Account. RBSL
will mail to Policy owners at their last known address of record, at
least annually, reports setting forth, among other things, the Face
Amount, Death Benefit, Accumulation Value, Cash Surrender Value, Loan
Amount, premiums paid, Planned Periodic Premiums, interest credits,
partial withdrawals, transfers, and charges since the last report.
Additional reports are available for a fee upon request. Also upon
request, RBSL will for a fee provide to the Policy owner a report
projecting future results based on the Death Benefit Option specified
by the owner, the Planned Periodic Premiums specified by the owner,
and the Accumulation Value of the Policy at the end of the prior
Policy year. Each Policy owner will also be sent an annual report for
the Variable Account and a list of the portfolio securities held in
each series of the Fund, as required by the Investment Company Act of
1940.
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.
There is no such indenture or agreement and accordingly no such
provision.
(d) THE APPOINTMENT OF A SUCCESSOR TRUSTEE AND THE PROCEDURE IF A
SUCCESSOR TRUSTEE IS NOT APPOINTED.
The Variable Account has no trustee.
(e) THE REMOVAL OR RESIGNATION OF THE DEPOSITOR, OR THE FAILURE OF
THE DEPOSITOR TO PERFORM ITS DUTIES, OBLIGATIONS AND FUNCTIONS.
There is no such indenture or agreement and accordingly no such
provision.
(f) THE APPOINTMENT OF A SUCCESSOR DEPOSITOR AND THE PROCEDURE IF A
SUCCESSOR DEPOSITOR IS NOT APPOINTED.
There is no such indenture or agreement and accordingly no such
provision.
21. (a) STATE THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR
AGREEMENT WITH RESPECT TO LOANS TO SECURITY HOLDERS.
POLICY LOANS. After the first Policy Year, the Policy owner may
borrow up to the Loan Value of the Policy, which is equal to the
Cash Value less the existing Loan Amount. Each loan must be at
least $500.
RBSL makes loans from the Fixed Accumulation Value and the
Variable Accumulation Value on a proportionate basis. For
purposes of determining the proportions, the outstanding Loan
Amount is subtracted from the Fixed Accumulation Value.
The total of outstanding loans and unpaid loan interest is called
the Loan Amount. Loan Amounts do not participate in the
investment performance of the Funds. However, RBSL currently
credits 4% interest on the Loan Amount. If, at any time, the Loan
Amount is greater than the Accumulation Value reduced by the
applicable Surrender Charge, the Policy will lapse unless RBSL
receives a sufficient payment during the 61 day grace period.
A loan may cause termination of the Death Benefit Guarantee. The
Loan Amount is deducted from the total premium paid in
calculating the Minimum Premium Requirement for the Death Benefit
Guarantee.
RBSL deducts any Loan Amount from the proceeds when it pays a
claim.
RBSL charges interest on the Loan Amount at an annual rate of
5.66%, payable in advance for each year. After the tenth Policy
Year, RBSL will charge interest at an annual rate of 3.85%,
payable in advance. If interest is not paid when due, it is added
to the Loan Amount.
The Policy owner may repay all or part of any Loan Amount during
the insured's lifetime. When the owner makes a payment on a
Policy loan, to avoid a Premium Expense Charge on the payment the
owner must tell RBSL that it is a loan repayment. Loan repayments
are credited to the Fixed Account and the Variable Account in the
form of Net Premiums without a Premium Expense Charge. RBSL
credits Policy loan repayments according to the current premium
allocation.
When there is an outstanding Policy loan, RBSL reserves the right
to consider any payments it receives, planned or unscheduled, as
Policy loan repayments and not as premium payments.
(b) FURNISH A BRIEF DESCRIPTION OF ANY PROCEDURE OR ARRANGEMENT BY
WHICH LOANS ARE MADE AVAILABLE TO SECURITY HOLDERS BY THE
DEPOSITOR, PRINCIPAL UNDERWRITER, TRUSTEE OR CUSTODIAN, OR ANY
AFFILIATED PERSON OF THE FOREGOING.
See the answer to Item 21(a).
(c) IF SUCH LOANS ARE MADE, FURNISH THE AGGREGATE AMOUNT OF LOANS
OUTSTANDING AT THE END OF THE LAST FISCAL YEAR, THE AMOUNT OF
INTEREST COLLECTED DURING THE LAST FISCAL YEAR ALLOCATED TO THE
DEPOSITOR, PRINCIPAL UNDERWRITER, TRUSTEE OR CUSTODIAN OR
AFFILIATED PERSON OF THE FOREGOING AND THE AGGREGATE AMOUNT OF
LOANS IN DEFAULT AT THE END OF THE LAST FISCAL YEAR COVERED BY
FINANCIAL STATEMENTS FILED HEREWITH.
The Variable Account has not yet commenced operations.
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.
See the answer to Item 10(e) for a description of the provisions of
the Policies relating to lapse.
For any assignment of a Policy to be binding on RBSL, it must receive
written notice of the assignment. RBSL assumes no responsibility for
the validity of any assignment or the extent of the assignee's
interest.
If the insured's age or sex is misstated in the Policy application,
RBSL adjusts the proceeds by the difference between the Monthly
Deductions made and those that should have been made.
If RBSL makes incorrect payments because of incorrect age or sex
information, or any error or miscalculation, it adjusts the proceeds.
RBSL deducts any overpayments from the next payment or payments or
requests a refund of the overpayment. It adds underpayments to the
next payment or pays the owner that amount immediately. In adjusting
the proceeds RBSL uses the interest rates in effect for the Fixed
Accumulation Value and the applicable Sub-Account Unit Values at the
time the Monthly Deduction, error or miscalculation was originally
made.
If the insured commits suicide within two years of the Policy Date,
RBSL does not pay the Death Benefit. Instead, it refunds all premiums
paid for the Policy and any attached riders, minus any Loan Amounts
and partial withdrawals. If the Policy owner makes a Face Amount
increase or a premium payment which requires proof of insurability,
the corresponding Death Benefit increase has its own two-year suicide
limitation for the proceeds associated with that increase. If the
insured commits suicide within two years of the effective date of the
increase, RBSL pays the Death Benefit prior to the increase and
refunds the cost of insurance for that increase.
Payments from the Variable Account for Death Benefits, cash surrender,
partial withdrawal or loans will be made within seven days after RBSL
received all the documents required for the payments.
However, RBSL may delay making a payment when it is not able to
determine the Variable Accumulation Value because:
- The New York Stock Exchange is closed for trading, or
- The SEC determines that a state of emergency exists.
Payments from the Fixed Account may be delayed up to six months from
the date RBSL receives the documents required. RBSL will pay interest
at an effective annual rate of 3-1/2% if it delays payment more than
30 days.
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.
An insurance company blanket bond is maintained providing $25,000,000
coverage for officers, employees, general agents and agents of RBSL
and the Distributor, subject to a $100,000 deductible.
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.
After the Policy has been in force during the insured's lifetime for
two years from the Policy Date, RBSL cannot claim the Policy is void
or refuse to pay any proceeds unless the Policy has lapsed.
If the Policy owner makes a Face Amount increase or a premium payment
which requires proof of insurability, the corresponding Death Benefit
increase has its own two-year contestable period measured from the
date of the increase.
If the Policy is reinstated, the contestable period is measured from
the date of reinstatement with respect to statements made on the
application for reinstatement.
III. ORGANIZATION, PERSONNEL AND AFFILIATED PERSONS OF DEPOSITOR
ORGANIZATION AND OPERATIONS OF DEPOSITOR
25. STATE THE FORM OF ORGANIZATION OF THE DEPOSITOR OF THE TRUST, THE NAME
OF THE STATE OR OTHER SOVEREIGN POWER UNDER THE LAWS OF WHICH THE
DEPOSITOR WAS ORGANIZED AND THE DATE OF organization.
RBSL is a stock life insurance company which was organized in 1917 and
incorporated under the laws of New York.
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.
RBSL has not yet received any such fees.
(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.
(1) THE NATURE OF SUCH FEE OR PARTICIPATION.
(2) THE NAME OF THE PERSON MAKING PAYMENTS.
(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.
RBSL has not received, and will not receive, any fees from the
Funds, or from any affiliated persons of the Funds, or from any
investment adviser of the Funds.
27. DESCRIBE THE GENERAL CHARACTER OF THE BUSINESS ENGAGED IN BY THE
DEPOSITOR INCLUDING A STATEMENT AS TO ANY BUSINESS OTHER THAN THAT OF
DEPOSITOR OF THE TRUST. IF THE DEPOSITOR ACTS OR HAS ACTED IN ANY
CAPACITY WITH RESPECT TO ANY INVESTMENT COMPANY OR COMPANIES OTHER
THAN THE TRUST, STATE THE NAME OR NAMES OF SUCH COMPANY OR COMPANIES,
THEIR RELATIONSHIP, IF ANY, TO THE TRUST, AND THE NATURE OF THE
DEPOSITOR'S ACTIVITIES THEREWITH. IF THE DEPOSITOR HAS CEASED TO ACT
IN SUCH NAMED CAPACITY, STATE THE DATE OF AND CIRCUMSTANCES
SURROUNDING SUCH CESSATION.
RBSL offers a variety of individual life and health insurance and
annuities, group life and health insurance.
RBSL presently offers individual variable annuity and variable life
contracts with benefits which vary in accordance with the investment
results of Separate Accounts of RBSL.
OFFICIALS AND AFFILIATED PERSONS OF DEPOSITOR
28. (a) FURNISH AS AT LATEST PRACTICABLE DATE THE FOLLOWING INFORMATION
WITH RESPECT TO THE DEPOSITOR OF THE TRUST, WITH RESPECT TO
EACH OFFICER, DIRECTOR OR PARTNER OF THE DEPOSITOR, AND WITH
RESPECT TO EACH NATURAL PERSON DIRECTLY OR INDIRECTLY OWNING,
CONTROLLING OR HOLDING WITH POWER TO VOTE 5% OR MORE OF THE
OUTSTANDING VOTING SECURITIES OF THE DEPOSITOR.
See the answer to Item 28(b) for information concerning the
names, addresses and business experience during the last five
years of the executive officers and directors of RBSL. With
respect to ownership of stock of RBSL, see the answer to Item 29.
(b) FURNISH A BRIEF STATEMENT OF THE BUSINESS EXPERIENCE DURING THE
LAST FIVE YEARS OF EACH OFFICER, DIRECTOR OR PARTNER OF THE
DEPOSITOR.
Directors and Officers
<TABLE>
<CAPTION>
NAME AND PRINCIPAL
BUSINESS ADDRESS PRINCIPAL OCCUPATION AND BUSINESS EXPERIENCE
---------------- --------------------------------------------
<S> <C>
Susan M. Bergen Secretary of ReliaStar Bankers Security Life Insurance
20 Washington Ave. So. Company. Attorney for ReliaStar Life Insurance Company for
Minneapolis, MN 55401 more than five years.
Stephen A. Carb* Partner of Carb, Luria, Glassner, Cook & Kufeld (law firm)
529 5th Ave. 7th Floor since 1962.
New York, NY 10017
James Cochran** Executive Vice President of ReliaStar Bankers Security Life
1000 Woodbury Rd, #102 Insurance Company since 1996; Executive Vice President and
Woodbury, NY 11797 Chief Operating Officer of ReliaStar United Services Life
Insurance Company ("RUSL") since 1996: Senior Vice
President, Product Development and Strategic Planning of
RUSL from 1995 to 1996; Senior Vice President, Product
Development from 1990 to 1995.
R. Michael Conley*** Senior Vice President of ReliaStar Financial Corp. since
20 Washington Ave. So. 1991; Senior Vice President, ReliaStar Employee Benefits of
Minneapolis, MN 55401 ReliaStar Life Insurance Company since 1986; President of
NWNL Benefits Corporation since 1988; Executive Vice
President of ReliaStar Bankers Security Life Insurance
Company since 1996; Director of various subsidiaries of
ReliaStar Financial Corp.
Richard R. Crowl*** Senior Vice President, General Counsel and Secretary of
20 Washington Ave. So. ReliaStar Financial Crop. since 1996; Senior Vice President
Minneapolis, MN 55401 and General Counsel of ReliaStar Life Insurance Company,
ReliaStar Bankers Security Life Insurance Company, Northern
Life Insurance Company, and ReliaStar United Services Life
Insurance Company since 1996; Executive Vice President and
General Counsel of Washington Square Advisers, Inc. since
1986; Vice President and Associate General Counsel of
ReliaStar Financial Corp. from 1989 to 1996; Vice President
and Associate General Counsel of ReliaStar Life Insurance
Company from 1985 to 1996; Director and Senior Vice
President of various subsidiaries of ReliaStar Financial
Corp.
John H. Flittie*** Vice Chairman, President and Chief Operating Officer of
20 Washington Ave. So. ReliaStar Life Insurance Company since 1996; President and
Minneapolis, MN 55401 Chief Operating Officer of ReliaStar Financial Corp. and
ReliaStar Life Insurance Company since 1993; Vice Chairman,
Chief Executive Officer and President of ReliaStar Bankers
Security Life Insurance Company since 1996; Vice Chairman of
ReliaStar United Services Life Insurance Company and
ReliaStar Bankers Security Life Insurance Company since
1995; Senior Executive Vice President and Chief Operating
Officer of ReliaStar Financial Corp. and ReliaStar Life
Insurance Company from 1992 to 1993; Senior Executive Vice
President and Chief Operating Officer of ReliaStar Financial
Corp. from 1991 to 1992; Executive Vice President and Chief
Financial Officer of ReliaStar Financial Corp. and ReliaStar
Life Insurance Company from 1989 to 1991; Director of
Community First BankShares, Inc. and Director and Officer of
various subsidiaries of ReliaStar Financial Corp.
James T. Hale* Senior Vice President of Dayton Hudson Corporation since
777 Nicollet Mall 1981.
Minneapolis, MN 55402
Wayne R. Huneke*** Senior Vice President, Chief Financial Officer and Treasurer
20 Washington Ave. So. of ReliaStar Financial Corp. and ReliaStar Life Insurance
Minneapolis, MN 55401 Company since 1994; Vice President, Treasurer and Chief
Accounting Officer from 1990 to 1994; Director and Officer
of various subsidiaries of ReliaStar Financial Corp.
Kennuth U. Kuk*** Senior Vice President of ReliaStar Financial Corp. and
20 Washington Ave. So. ReliaStar Life Insurance Company since 1996; Vice President,
Minneapolis, MN 55401 Strategic Marketing of ReliaStar Financial Corp. and
ReliaStar Life Insurance Company since 1996; Vice President
of Investments of ReliaStar Financial Corp. from 1991 to
1996; President of Washington Square Advisers, Inc. since
1995; Chairman of ReliaStar Mortgage Corporation since 1988;
Director of National Commercial Finance Association and
Director and Officer of various subsidiaries of ReliaStar
Financial Corp.
Richard E. Nolan* Senior Counsel of Davis Polk & Wardwell (law firm) since
One Chase Manhattan Plaza 1996 and Partner from 1990 to 1996.
New York, NY 10005
Fioravante G. Perrotta* Retired 1996; Formerly Senior Partner of Rogers & Wells (law
200 Park Ave. firm) since 1970.
New York, NY 10166
Robert C. Salipante*** Senior Vice President of Personal Financial Services of
20 Washington Ave. So. ReliaStar Financial Corp. and ReliaStar Life Insurance
Minneapolis, MN 55401 Company since 1996; Executive Vice President of ReliaStar
Bankers Security Life Insurance Company since 1996; Senior
Vice President of Individual Division and Technology of
ReliaStar Life Insurance Company since 1996; Senior Vice
President of Strategic Marketing and Technology of ReliaStar
Financial Corp. and ReliaStar Life Insurance Company from
1994 to 1996; Senior Vice President and Chief Financial
Officer of ReliaStar Financial Corp. and ReliaStar Life
Insurance Company from 1992 to 1994; Executive Vice
President of Ameritrust Corporation from 1988 to 1992;
Director and Officer of various subsidiaries of ReliaStar
Financial Corp.
David J. Sloane** Executive Vice President and Chief Operating Officer of
1000 Woodbury Rd. #102 ReliaStar Bankers Security Life Insurance Company since
Woodbury, NY 11797 1990.
John G. Turner*** Chairman and Chief Executive Officer of ReliaStar Financial
20 Washington Ave. So. Corp. and ReliaStar Life Insurance Company since 1993;
Minneapolis, MN 55401 Chairman of ReliaStar United Services Life Insurance Company
and ReliaStar Bankers Security Life Insurance Company since
1995; Chairman of Northern Life Insurance Company since
1992; Chairman, President and Chief Executive Officer of
ReliaStar Financial Corp. and ReliaStar Life Insurance
Company in 1993; President and Chief Executive Officer of
ReliaStar Financial Corp. and ReliaStar Life Insurance
Company from 1991 to 1993; President and Chief Operating
Officer of ReliaStar Financial Corp. from 1989 to 1991;
President and Chief Operating Officer of ReliaStar Life
Insurance Company from 1986 to 1991; Director and Officer of
various subsidiaries of ReliaStar Financial Corp.
Charles B. Updike* Partner of Schoeman, Marsh & Updike (law firm) since 1976.
60 East 42nd Street
New York, NY 10165
Ross M. Weale* President of Waccabuc Enterprise, Inc. (management
102 Brewster Ave. Rt. 6 consulting firm) since 1996; President and Chief Executive
Carmel, NY 10512 Officer of Country Bank (financial institution) from 1986 to
1996.
Steven W. Wishart*** Senior Vice President and Chief Investment Officer of
20 Washington Ave. So. ReliaStar Financial Corp. since 1989; Senior Vice President
Minneapolis, MN 55401 of ReliaStar Life Insurance Company since 1981; President
and Chief Executive Officer of ReliaStar Investment
Research, Inc. (formerly WSCR, Inc.) since 1996; President
of Washington Square Capital Inc. from 1981 to 1996;
President of WSCR, Inc. from 1986 to 1996; Director of
National Benefit Resources Group Services Inc. and Director
and Officer of various subsidiaries of ReliaStar Financial
Corp.
* Director
** Officer
*** Director and Officer
</TABLE>
The Executive Committee of our Board of Directors consists of Directors Turner,
Flittie, Hale, Huneke, and Weale.
The Compliance Committee of our Board of Directors consists of Directors Weale,
Carb, Hale, Nolan, Perrotta, and Updike.
29. FURNISH AS AT LATEST PRACTICABLE DATE THE FOLLOWING INFORMATION WITH
RESPECT TO EACH COMPANY WHICH DIRECTLY OR INDIRECTLY OWNS, CONTROLS OR
HOLDS WITH POWER TO VOTE 5% OR MORE OF THE OUTSTANDING VOTING
SECURITIES OF THE DEPOSITOR.
The Depositor is indirectly wholly owned by ReliaStar Financial Corp.
("RFC"), as follows: RFC owns all the stock of ReliaStar Life
Insurance Company, which owns all the stock of ReliaStar United
Services Life Insurance Company, which in turn owns all the stock of
the Depositor. FMR Corp., 82 Devonshire Street, Boston, MA 02109 owns
9.31% of the outstanding voting securities of RFC (3,740,449 shares of
Common Stock) and Wilmington Trust Company, 1100 North Market Street,
Wilmington, DE 19890 owns 6.6% of the outstanding voting securities of
RFC (2,652,257 shares of Common Stock).
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.
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;
(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;
(c) INDIRECTLY OR THROUGH SUBSIDIARIES TO EACH OF THE OFFICERS OR
PARTNERS OF THE depositor.
No officer has been paid any remuneration by RBSL for services
with respect to the Variable Account.
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;
(b) INDIRECTLY OR THROUGH SUBSIDIARIES TO DIRECTORS.
No director has been paid any remuneration by RBSL for services
with respect to the Variable Account.
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.
No such person has been paid any remuneration by RBSL for
services with respect to the Variable Account.
(b) FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE
REMUNERATION FOR SERVICES PAID DIRECTLY DURING THE LAST FISCAL
YEAR COVERED BY FINANCIAL STATEMENTS FILED HEREWITH TO THE
FOLLOWING CLASSES OF PERSONS (EXCLUSIVE OF THOSE PERSONS COVERED
BY ITEM 33(A): (1) SALES MANAGERS, BRANCH MANAGERS, DISTRICT
MANAGERS AND OTHER PERSONS SUPERVISING THE SALE OF REGISTRANT'S
SECURITIES; (2) SALESMEN, SALES AGENTS, CANVASSERS AND OTHER
PERSONS MAKING SOLICITATIONS BUT NOT IN SUPERVISORY CAPACITY; (3)
ADMINISTRATIVE AND CLERICAL EMPLOYEES; AND (4) OTHERS. IF A
PERSON IS EMPLOYED IN MORE THAN ONE CAPACITY, CLASSIFY ACCORDING
TO PREDOMINANT TYPE OF WORK.
No such person has been paid any remuneration by RBSL for
services with respect to the Variable Account.
COMPENSATION TO OTHER PERSONS
34. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO THE AGGREGATE AMOUNT
OF COMPENSATION FOR SERVICES PAID ANY PERSON (EXCLUSIVE OF PERSONS
WHOSE REMUNERATION IS REPORTED IN ITEMS 31, 32 AND 33), WHOSE
AGGREGATE COMPENSATION IN CONNECTION WITH SERVICES RENDERED WITH
RESPECT TO THE TRUST IN ALL CAPACITIES EXCEEDED $10,000 DURING THE
LAST FISCAL YEAR COVERED BY FINANCIAL STATEMENTS FILED HEREWITH FROM
THE DEPOSITOR AND ANY OF ITS SUBSIDIARIES.
No such person has been paid remuneration in excess of $10,000 by RBSL
for services with respect to the Variable Account.
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 sales of the Policies are currently being made nor have sales been
discontinued in any state. It is presently proposed that the Policies
will be sold in all states where RBSL is authorized to sell variable
life insurance.
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.
Sales of the Policies have never been suspended.
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.
Authority to distribute the Policies has never been denied.
(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.
Authority to distribute the Policies has never been revoked.
38. (a) FURNISH A GENERAL DESCRIPTION OF THE METHOD OF DISTRIBUTION OF
SECURITIES OF THE TRUST.
RBSL intends to sell the Policies in all jurisdictions where it
is licensed. The Policies will be sold by licensed insurance
agents who are also registered representatives of broker-dealers
registered under the Securities Exchange Act of 1934 who are
members of the National Association of Securities Dealers, Inc.
The Policies will be distributed by the Distributor, which is an
affiliate of RBSL.
(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 Distributor and RBSL intend to enter into a General
Distributor Agreement, a copy of the form of which is filed as an
exhibit hereto, the terms of which (including those relating to
renewal, termination and assignment) are incorporated herein by
reference.
(c) STATE THE SUBSTANCE OF ANY CURRENT AGREEMENTS OR ARRANGEMENTS OF
EACH PRINCIPAL UNDERWRITER WITH DEALERS, AGENTS, SALESMEN, ETC.
WITH RESPECT TO COMMISSIONS AND OVERRIDING COMMISSIONS,
TERRITORIES, FRANCHISES, QUALIFICATIONS AND REVOCATIONS. IF THE
TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES,
FURNISH SCHEDULES OF COMMISSIONS AND THE BASES THEREOF. IN LIEU
OF A STATEMENT CONCERNING SCHEDULES OF COMMISSIONS, SUCH
SCHEDULES OF COMMISSIONS MAY BE FILED AS EXHIBIT A(3)(C).
There is no current agreements or arrangements of the Distributor
with dealers, agents, salesmen, etc., relating to the Policies.
INFORMATION CONCERNING PRINCIPAL UNDERWRITER
39. (a) STATE THE FORM OF ORGANIZATION OF EACH PRINCIPAL UNDERWRITER OF
SECURITIES OF THE TRUST, THE NAME OF THE STATE OR OTHER
SOVEREIGN POWER UNDER THE LAWS OF WHICH EACH UNDERWRITER WAS
ORGANIZED AND THE DATE OF ORGANIZATION.
The Distributor is a corporation organized under the laws of the
State of Minnesota on April 26, 1968.
(b) STATE WHETHER ANY PRINCIPAL UNDERWRITER CURRENTLY DISTRIBUTING
SECURITIES OF THE TRUST IS A MEMBER OF THE NATIONAL ASSOCIATION
OF SECURITIES DEALERS, INC..
The Distributor, which will serve as principal underwriter for
the Policies, 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.
The Distributor has not yet received any such fees.
(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.
None.
41. (a) DESCRIBE THE GENERAL CHARACTER OF THE BUSINESS ENGAGED IN BY EACH
PRINCIPAL UNDERWRITER, INCLUDING A STATEMENT AS TO ANY BUSINESS
OTHER THAN THE DISTRIBUTION OF SECURITIES OF THE TRUST. IF A
PRINCIPAL UNDERWRITER ACTS OR HAS ACTED IN ANY CAPACITY WITH
RESPECT TO ANY INVESTMENT COMPANY OR COMPANIES OTHER THAN THE
TRUST, STATE THE NAME OR NAMES OF SUCH COMPANY OR COMPANIES,
THEIR RELATIONSHIP, IF ANY, TO THE TRUST AND THE NATURE OF SUCH
ACTIVITIES. IF A PRINCIPAL UNDERWRITER HAS CEASED TO ACT IN SUCH
NAMED CAPACITY, STATE THE DATE OF AND CIRCUMSTANCES SURROUNDING
SUCH CESSATION.
The Distributor is a securities broker-dealer registered with the
SEC and is a member of the National Association of Securities
Dealers, Inc. It is primarily a mutual funds dealer and has
dealer agreements under which it markets shares of more than 50
mutual funds. It also markets limited partnerships and other
tax-sheltered or deferred investments, and acts as general
distributor (principal underwriter) for variable annuity and
variable life products issued by RBSL.
(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.
Sales of the Policies have not yet commenced.
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.
No Policies have yet been issued by the Variable Account.
43. FURNISH, FOR THE LAST FISCAL YEAR COVERED BY THE FINANCIAL STATEMENTS
FILED HEREWITH, THE AMOUNT OF BROKERAGE COMMISSIONS RECEIVED BY ANY
PRINCIPAL UNDERWRITER WHO IS A MEMBER OF A NATIONAL SECURITIES
EXCHANGE AND WHO IS CURRENTLY DISTRIBUTING THE SECURITIES OF THE TRUST
OR EFFECTING TRANSACTIONS FOR THE TRUST IN THE PORTFOLIO SECURITIES OF
THE TRUST.
Not applicable.
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 PURPOSE OF DETERMINING THE
OFFERING PRICE TO THE PUBLIC OF SECURITIES ISSUED BY THE TRUST OR
THE VALUATION OF SHARES OR INTERESTS IN THE UNDERLYING SECURITIES
ACQUIRED BY THE HOLDER OF A PERIODIC PAYMENT PLAN CERTIFICATE.
(1) THE SOURCE OF QUOTATIONS USED TO DETERMINE THE VALUE OF
PORTFOLIO SECURITIES.
Fund shares are valued at net asset value as supplied to
RBSL by the Funds or their agents.
(2) WHETHER OPENING, CLOSING, BID, ASKED OR ANY OTHER PRICE IS
USED.
See the answers to Items 44(a)(1) and 16.
(3) WHETHER PRICE IS AS OF THE DAY OF SALE OR AS OF ANY OTHER
TIME.
See the answer to Item 16.
(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).
The Variable Account's assets and liabilities (such as
charges against the Variable Account) are valued in
accordance with generally accepted accounting principles on
an accrual basis. Since RBSL does not expect to incur any
substantial federal income tax liabilities on the earnings
or the capital gains attributable to the Variable Account
for the immediate future, RBSL does not intend to create a
reserve for its federal income taxes in connection
therewith.
(5) OTHER ITEMS WHICH REGISTRANT ADDS TO THE NET ASSET VALUE IN
COMPUTING OFFERING PRICE OF ITS SECURITIES.
Not applicable.
(6) WHETHER ADJUSTMENTS ARE MADE FOR FRACTIONS:
(i) BEFORE ADDING DISTRIBUTOR'S COMPENSATION (LOAD); AND
(ii) AFTER ADDING DISTRIBUTOR'S COMPENSATION (LOAD)
Not applicable because the Variable Account does not compute
per-unit values and sales loads in the manner presupposed by
this Item and Item 44(b). Appropriate adjustments will be
made for fractions in all computations.
(b) FURNISH A SPECIMEN SCHEDULE SHOWING THE COMPONENTS OF THE
OFFERING PRICE OF THE TRUST'S SECURITIES AS AT THE LATEST
PRACTICABLE DATE.
The Policies have not yet been offered for sale.
(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.
RBSL does not require a premium payment of a fixed amount at
fixed intervals for a specified time period. A Policy owner may,
subject to the limitations set forth in Item 10(i), pay premiums
at any frequency in any amount. Nonetheless, if the Death Benefit
Guarantee is not in effect Policy owners will need to pay
sufficient premiums to maintain adequate Cash Surrender Value to
pay the Monthly Deduction, including the cost of insurance. The
cost of insurance will vary, depending upon the insured's sex,
attained age, and Rate Class. In addition, there will be
additional charges if optional insurance benefits are elected.
Thus, for the Policy to remain in force, a Policy owner will need
to take the cost of insurance, as well as other factors such as
investment performance, into consideration in determining the
amount and frequency of premium payments.
45. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO ANY SUSPENSION OF
THE REDEMPTION RIGHTS OF THE SECURITIES ISSUED BY 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.
(c) REASON FOR SUSPENSION.
(d) PERIOD DURING WHICH SUSPENSION WAS IN EFFECT.
There has been no suspension of the right to redeem the Policies.
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.
See the answer to Item 44(a)(2).
(2) WHETHER OPENING, CLOSING, BID, ASKED OR ANY OTHER PRICE IS
USED.
See the answer to Item 44(a)(2).
(3) WHETHER PRICE IS AS OF THE DAY OF SALE OR AS OF ANY OTHER
TIME.
As of the day a request for surrender is received.
(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 the answers to Items 44(a)(4) and 18(c).
(5) OTHER ITEMS WHICH REGISTRANT DEDUCTS FROM THE NET ASSET
VALUE IN COMPUTING REDEMPTION VALUE OF ITS SECURITIES.
See the answer to Items 10(c) and 13(a).
(6) (A) 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.
The Policies have not yet been offered for sale.
PURCHASE AND SALE OF INTERESTS IN UNDERLYING SECURITIES FROM AND TO
SECURITY HOLDERS
47. FURNISH A STATEMENT AS TO THE PROCEDURE WITH RESPECT TO THE
MAINTENANCE OF A POSITION IN THE UNDERLYING SECURITIES OR INTERESTS IN
THE UNDERLYING SECURITIES, THE EXTENT AND NATURE THEREOF AND THE
PERSON WHO MAINTAINS SUCH A POSITION. INCLUDE A DESCRIPTION OF THE
PROCEDURE WITH RESPECT TO THE PURCHASE OF UNDERLYING SECURITIES OR
INTERESTS IN THE UNDERLYING SECURITIES FROM SECURITY HOLDERS WHO
EXERCISE REDEMPTION OR WITHDRAWAL RIGHTS AND THE SALE OF SUCH
UNDERLYING SECURITIES AND INTERESTS IN THE UNDERLYING SECURITIES TO
OTHER SECURITY HOLDERS. STATE WHETHER THE METHOD OF VALUATION OF SUCH
UNDERLYING SECURITIES OR INTERESTS IN UNDERLYING SECURITIES DIFFERS
FROM THAT SET FORTH IN ITEMS 44 AND 46. IF ANY ITEM OF EXPENDITURE
INCLUDED IN THE DETERMINATION OF THE VALUATION IS NOT OR MAY NOT
ACTUALLY BE INSURED OR EXPENDED, EXPLAIN THE NATURE OF SUCH ITEM AND
WHO MAY BENEFIT FROM THE TRANSACTION, THE EXTENT AND NATURE THEREOF
AND THE PERSON WHO MAINTAINS SUCH A POSITION. INCLUDE A DESCRIPTION OF
THE PROCEDURE WITH RESPECT TO THE PURCHASE OF UNDERLYING SECURITIES OR
INTERESTS IN THE UNDERLYING SECURITIES FROM SECURITY HOLDERS WHO
EXERCISE REDEMPTION OR WITHDRAWAL RIGHTS AND THE SALE OF SUCH
UNDERLYING SECURITIES AND INTERESTS IN THE UNDERLYING SECURITIES TO
OTHER SECURITY HOLDERS. STATE WHETHER THE METHOD OF VALUATION OF SUCH
UNDERLYING SECURITIES OR INTERESTS IN UNDERLYING SECURITIES DIFFERS
FROM THAT SET FORTH IN ITEMS 44 AND 46. IF ANY ITEM OF EXPENDITURE
INCLUDED IN THE DETERMINATION OF THE VALUATION IS NOT OR MAY NOT
ACTUALLY BE INSURED OR EXPENDED, EXPLAIN THE NATURE OF SUCH ITEM AND
WHO MAY BENEFIT FROM THE TRANSACTION.
RBSL will maintain a position in the Funds by (a) purchasing Fund
shares at net asset value in connection with the net premiums
allocated to the Variable Account in accordance with instructions from
Policy owners and (b) redeeming Fund shares at net asset value for the
purpose of meeting Policy obligations. See the answer to Item 16.
There is no procedure for the purchase of underlying securities or
interests therein from Policy owners who exercise surrender rights.
See the answer to Item 27 with respect to certain other contracts
issued by RBSL with benefits that may vary depending on the investment
results of certain of the Funds.
V. INFORMATION CONCERNING THE TRUSTEE OR CUSTODIAN
48. FURNISH THE FOLLOWING INFORMATION AS TO SUCH TRUSTEE OR CUSTODIAN OF
THE TRUST.
(a) NAME AND PRINCIPAL BUSINESS ADDRESS
(b) FORM OF ORGANIZATION
(c) STATE OR OTHER SOVEREIGN POWER UNDER THE LAWS OF WHICH THE
TRUSTEE OR CUSTODIAN WAS ORGANIZED
(d) NAME OF GOVERNMENTAL SUPERVISING OR EXAMINING AUTHORITY
See the answer to Item 2 for the principal business address of RBSL.
RBSL is a stock life insurance company organized under the laws of the
State of New York. It is subject to regulation by the Insurance
Department of the State of New York. The books and records of RBSL are
subject to review and examination by that Department at all times and
a full examination of its operations is conducted by the National
Association of Insurance Commissioners periodically. In addition, RBSL
is subject to the insurance laws and regulations of the other
jurisdictions in which it is licensed to operate.
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.
There is no trustee. Neither RBSL as custodian, nor any other person,
has or may create a lien on the assets of the trust. The Policies
provide in implementation of New York law that assets of the Variable
Account equal to the reserves and other liabilities of the Variable
Account may not be used to satisfy any obligations arising out of any
other business RBSL may conduct.
VI. INFORMATION CONCERNING INSURANCE OF HOLDERS OF SECURITIES
51. FURNISH THE FOLLOWING INFORMATION WITH RESPECT TO INSURANCE OF HOLDERS
OF SECURITIES.
(a) THE NAME AND ADDRESS OF THE INSURANCE COMPANY
ReliaStar Bankers Security Life Insurance Company
1000 Woodbury Road, Woodbury
Long Island, New York 11797
(b) THE TYPES OF POLICIES AND WHETHER INDIVIDUAL OR GROUP POLICIES
Flexible premium variable life insurance policies
(c) THE TYPES OF RISKS INSURED AND EXCLUDED
The Policies are issued to provide protection against economic
loss when the insured dies. The Policy provides a Death Benefit
which is payable to the named beneficiary whenever the insured
dies. See the answer to Item 10(i) for a description of how the
amount of the Death Benefit payable is determined.
RBSL assumes the risk that the deductions made for mortality
risks will prove inadequate to cover actual mortality costs. RBSL
also assumes the risk that deductions for expenses may be
inadequate.
(d) THE COVERAGE OF THE POLICIES
See the answers to Items 10(i) and 51(c).
(e) THE BENEFICIARIES OF SUCH POLICIES AND THE USES TO WHICH THE
PROCEEDS OF POLICIES MUST BE PUT
A beneficiary is any person named on RBSL's records to receive
insurance proceeds after the insured dies. The applicant names
the beneficiary when applying for a Policy. There may be
different classes of beneficiaries, which set the order of
payment. There may be more than one beneficiary in a class.
The beneficiary may be changed during the insured's lifetime by
written notice to RBSL. If no beneficiary is living when the
insured dies, the death benefit will be paid to the Policy owner,
if living, otherwise to the insured's estate.
There is no restriction on the use of payments under the
Policies.
(f) THE TERMS AND MANNER OF CANCELLATION AND OF REINSTATEMENT
See the answer to Item 10(e).
(g) THE METHOD OF DETERMINING THE AMOUNT OF PREMIUMS TO BE PAID BY
HOLDERS OF SECURITIES
See the answers to Items 13(a) and 13(d) for the amount of
charges imposed. See the answers to Items 10(c), f10(i) and 44(c)
for the manner in which the premium is determined.
(h) THE AMOUNT OF AGGREGATE PREMIUMS PAID TO THE INSURANCE COMPANY
DURING THE LAST FISCAL YEAR
Sale of the Policies has not yet commenced.
(i) WHETHER ANY PERSON OTHER THAN THE INSURANCE COMPANY RECEIVES ANY
PART OF SUCH PREMIUMS, THE NAME OF EACH SUCH PERSON AND THE
AMOUNTS INVOLVED, AND THE NATURE OF THE SERVICES RENDERED
THEREFOR.
No person other than RBSL receives any part of the amounts
deducted for assumption of mortality and expense risks.
(j) THE SUBSTANCE OF ANY OTHER MATERIAL PROVISIONS OF ANY INDENTURE
OR AGREEMENT OF THE TRUST RELATING TO INSURANCE.
None.
VII. POLICY OF REGISTRANT
52. (a) FURNISH THE SUBSTANCE OF THE PROVISIONS OF ANY INDENTURE OR
AGREEMENT WITH RESPECT TO THE CONDITIONS UPON WHICH AND THE
METHOD OF SELECTION BY WHICH PARTICULAR PORTFOLIO SECURITIES
MUST OR MAY BE ELIMINATED FROM THE ASSETS OF THE TRUST OR MUST OR
MAY BE REPLACED BY OTHER PORTFOLIO SECURITIES. IF AN INVESTMENT
ADVISER OR OTHER PERSON IS TO BE EMPLOYED IN CONNECTION WITH SUCH
SELECTION, ELIMINATION OR SUBSTITUTION, STATE THE NAME OF SUCH
PERSON, THE NATURE OF ANY AFFILIATION TO THE DEPOSITOR, TRUSTEE
OR CUSTODIAN, AND ANY PRINCIPAL UNDERWRITER, AND THE AMOUNT OF
REMUNERATION TO BE RECEIVED FOR SUCH SERVICES. IF ANY PARTICULAR
PERSON IS NOT DESIGNATED IN THE INDENTURE OR AGREEMENT, DESCRIBE
BRIEFLY THE METHOD OF SELECTION OF SUCH PERSON.
See the answers to Items 10(g) and 10(h).
(b) FURNISH INFORMATION WITH RESPECT TO EACH TRANSACTION INVOLVING
THE ELIMINATION OF ANY UNDERLYING SECURITY DURING THE PERIOD
COVERED BY THE FINANCIAL STATEMENTS FILED HEREWITH.
No eliminations of any underlying securities have yet been made.
(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
CONFIRM 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.
See the answers to Items 10(g) and 10(h).
(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.
REGULATED INVESTMENT COMPANY
53. (a) STATE THE TAXABLE STATUS OF THE TRUST.
The variable Account is segregated asset account and, as such,
any tax attributable to the Variable Account is taxed as a part
of RBSL. However, it accounts separately for its income,
exclusion, deduction, assets, reserves and other liabilities. A
diversified segregated asset account will not be taxed on the
bulk of its earnings and gains since its basis in each asset in
the account is increased by any appreciation in value and
decreased by any depreciation in value. (To be diversified, the
Variable Account must meet the diversified investment
requirements imposed by Section 817 of the Internal Revenue code
of 1986 relating to Regulated Investment Companies, and no more
than 55% of the value of the total assets of the Variable Account
can be in cash items, U.S. Government securities and securities
of regulated investment companies (other than securities of a
regulated investment company fully owned by the Variable
Account).)
RBSL does not currently expect to incur any income tax upon the
earnings or the realized capital gains attributable to the
Variable Account. Based upon these expectations, no charge is
being made currently to the Variable Account for federal income
taxes which may be attributable to the Variable Account. If,
however, RBSL determines that it may incur such taxes, it may
assess a charge for those taxes from the Variable Account.
Under current laws RBSL may incur state and local taxes (in
addition to premium taxes) in several states. At present these
taxes are not significant, so RBSL is not currently making a
charge for them. If there is material change in such taxes, RBSL
may make charges for them against the Variable Account.
(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.
The Variable Account has not qualified and does not intend to
qualify as a regulated investment company during the current
taxable year. See the answer to Item 53(a).
VIII. FINANCIAL AND STATISTICAL INFORMATION
54. IF THE TRUST IS NOT THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES,
FURNISH INFORMATION WITH RESPECT TO EACH CLASS OR SERIES OF ITS
SECURITIES.
Not applicable.
55. IF THE TRUST IS THE ISSUER OF PERIODIC PAYMENT PLAN CERTIFICATES, A
TRANSCRIPT OF A HYPOTHETICAL ACCOUNT SHALL BE FILED IN APPROXIMATELY
THE FOLLOWING FORM ON THE BASIS OF THE CERTIFICATE CALLING FOR THE
SMALLEST AMOUNT OF PAYMENTS. THE SCHEDULE SHALL COVER A CERTIFICATE OF
THE TYPE CURRENTLY BEING SOLD ASSUMING THAT SUCH CERTIFICATE HAD BEEN
SOLD AT A DATE APPROXIMATELY TEN YEARS PRIOR TO THE DATE OF
REGISTRATION OR AT THE APPROXIMATE DATE OF ORGANIZATION OF THE TRUST.
No Policies have yet been issued.
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 TO 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.
No Policies have yet been issued.
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.
No Policies have yet been issued.
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.
No Policies have yet been issued.
59. FINANCIAL STATEMENTS:
FINANCIAL STATEMENTS OF THE TRUST
Financial Statements of the Trust will be supplied by amendment to
Registrant's Registration Statement on Form S-6, and will be
incorporated herein by reference.
FINANCIAL STATEMENTS OF THE DEPOSITOR
Financial statements of RBSL will be supplied by amendment to
Registrant's Registration Statement on Form S-6, and will be
incorporated herein by reference.
IX. EXHIBITS
A. (1) Resolutions of Board of Directors of RBSL establishing the
Variable Account.*
(2) Not applicable.
(3) General Distributor Agreement and Selling Agreement between RBSL
and the Distributor.*
(4) Not applicable.
(5) Form of Policy (together with available Policy riders).*
(6) (a) Articles of Incorporation of RBSL.*
(b) Bylaws of RBSL.*
(7) Not applicable.
(8) Participation Agreements.*
(9) Not applicable.
(10) Policy Application Form.*
B. Not applicable.
C. Not applicable.
-------------------------
* Exhibits have been filed on December 31, 1996 as part of this
Form S-6 filing and are incorporated herein by reference.
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 Minneapolis and State of Minnesota on
the ____ day of April, 1997.
(SEAL) Signature /s/Richard R. Crowl
--------------------------------------------
Richard R. Crowl
ReliaStar Bankers Security Variable Life Separate Account I
BY/s/Richard R. Crowl
-------------------------------------------------
Rickard R. Crown
Senior Vice President
Reliastar Bankers Security Life Insurance Company
BY/s/Richard R. Crowl
------------------------
Richard R. Crowl
Senior Vice President
Attest: /s/Robert B. Saginaw
---------------------------
Robert B. Saginaw
(Name)
/s/Counsel
--------------------------
Counsel
(Title)
