As filed with the Securities and Exchange Commission on August 21, 2000
FILE NO. 333-
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF
1933 OF SECURITIES OF UNIT INVESTMENT
TRUSTS REGISTERED ON FORM N-8B-2
------------
A. Exact name of trust:
JPF SEPARATE ACCOUNT A
B. Name of depositor:
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
C. Complete address of depositor's principal executive offices:
One Granite Place
Concord, NH 03301
D. Name and complete address of agent for service:
Ronald R. Angarella
President
Jefferson Pilot Securities Corporation
One Granite Place
Concord, NH 03301
Copies to:
Charlene Grant, Esq. Joan E. Boros, Esq.
Jefferson Pilot Financial 1025 Thomas Jefferson Street, N.W.
Company Suite 400 East
One Granite Place Washington, D.C. 20007-0805
Concord, NH 03301
------------
E. Title of securities being registered:
Units of Interest in the Separate Account under Individual Flexible Premium
Variable Life Insurance Policies.
F. Approximate date of proposed public offering:
As soon as practicable after the effective date.
The Registrant is registering an indefinite amount of securities pursuant to
Section 24(f) of the Investment Company Act of 1940.
Registrant hereby amends this Registration Statement under the Securities Act
of 1933 on such date or dates as may be necessary to delay its effective date
until Registrant shall file a further amendment which specifically states that
this Registration Statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933 or until the Registration Statement
shall become effective on such date as the Commission, acting pursuant to
Section 8(a), may determine.
<PAGE>
November 1, 2000
Ensemble Exec
JPF Separate Account A
Flexible Premium Variable Life Insurance Policy
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
SERVICE OFFICE: One Granite Place, Concord, New Hampshire 03301 800-258-3648
--------------------------------------------------------------------------------
This Prospectus describes the Ensemble Exec Variable Life Insurance Policy
("Ensemble Exec" or "the Policy"), a flexible premium variable life insurance
policy issued and underwritten by Jefferson Pilot Financial Insurance Company
("we" or "JP Financial" or "the Company") and designed primarily for use on a
multi-life basis when the insured people share a common employment or business
relationship. The Policy provides life insurance and pays a benefit, as
described in this Prospectus, upon the Insured's death or surrender of the
Policy. The Policy allows flexible premium payments, Policy Loans, Withdrawals,
and a choice of Death Benefit Options. Your account values may be invested on
either a fixed or variable or combination of fixed and variable basis. You may
allocate your Net Premiums to JPF Separate Account A ("Separate Account A" or
the "Separate Account"), and/or the General Account, or both Accounts. The
Divisions of Separate Account A support the benefits provided by the variable
portion of the Policy. The Accumulation Value allocated to each Division is not
guaranteed and will vary with the investment performance of the associated
Fund. Net Premiums allocated to the General Account will accumulate at rates of
interest we determine; such rates will not be less than 4% per year. Your
Policy may lapse if the Net Accumulation Value is insufficient to pay a Monthly
Deduction. We will send premium reminder notices for Planned Premiums and for
premiums required to continue the Policy in force. If the Policy lapses, you
may reinstate it.
The Policy has a free look period during which you may return the Policy. We
will refund your Premium (See "Right of Policy Examination").
This Prospectus also describes the Divisions used to fund the Policy through
the Separate Account. Each Division invests exclusively in one of the following
Portfolios:
JPVF International Equity Portfolio
JPVF World Growth Stock Portfolio
JPVF Global Hard Assets Portfolio
JPVF Emerging Growth Portfolio
JPVF Capital Growth Portfolio
JPVF Small Company Portfolio
JPVF Growth Portfolio
JPVF S&P 500 Index Portfolio
JPVF Value Portfolio
JPVF Balanced Portfolio
JPVF High Yield Bond Portfolio
JPVF Money Market Portfolio
Fidelity VIP Growth Portfolio
Fidelity VIP Equity-Income Portfolio
Fidelity VIP II Contrafund Portfolio
MFS Research Series
MFS Utilities Series
Oppenheimer Strategic Bond Fund/VA
Oppenheimer Bond Fund/VA
Templeton International Securities Fund: Class 2
Not all Divisions may be available under all Policies or in all jurisdictions.
You may obtain the current Prospectus and Statement of Additional Information
("SAI") for any of the Portfolios by calling (800) 258-3648 x7719.
Replacing existing insurance or supplementing an existing flexible premium
variable life insurance policy with the Policy may not be to your advantage.
THIS PROSPECTUS IS VALID ONLY WHEN ACCOMPANIED BY THE CURRENT PROSPECTUSES FOR
THE FUNDS. BOTH THIS PROSPECTUS AND THE UNDERLYING FUND PROSPECTUSES SHOULD BE
READ AND RETAINED FOR FUTURE REFERENCE.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved these securities or determined if this
prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.
Ensemble Exec insurance policies and shares of the funds are not deposits or
obligations of or guaranteed by any bank. They are not federally insured by the
FDIC or any other government agency. Investing in the contracts involves
certain investment risks, including possible loss of principal invested.
THIS PROSPECTUS AND OTHER INFORMATION ABOUT JPF SEPARATE ACCOUNT A REQUIRED TO
BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CAN BE FOUND IN THE SEC'S
WEB SITE AT http://www.sec.gov.
<PAGE>
table of contents
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Page
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<S> <C>
DEFINITIONS ....................................... 3
POLICY SUMMARY .................................... 4
THE SEPARATE ACCOUNT .............................. 5
CHARGES & FEES .................................... 6
Charges & Fees Assessed Against
Premium ......................................... 6
Charges & Fees Assessed Against
Accumulation Value .............................. 6
Charges & Fees Assessed Against the
Separate Account ................................ 7
Charges Assessed Against the Underlying
Funds ........................................... 8
ALLOCATION OF PREMIUMS ............................ 9
The Portfolios ................................... 9
Investment Advisers for each of the
Funds ........................................... 10
Mixed and Shared Funding; Conflicts of
Interest ........................................ 11
Fund Additions, Deletions or Substitutions . 11
General Account ................................... 12
POLICY CHOICES .................................... 12
General .......................................... 12
Detailed Information about the Policy ............ 12
Premium Payments ................................. 13
Modified Endowment Contract ...................... 13
Compliance with the Internal Revenue
Code ............................................ 13
Death Benefit Options ............................ 14
Transfers and Allocations to Funding
Options ......................................... 15
Telephone Transfers, Loans and
Reallocations ................................... 16
Automated Transfers (Dollar Cost
Averaging and Portfolio Rebalancing) ............ 16
POLICY VALUES ..................................... 17
Accumulation Value ............................... 17
Unit Values ...................................... 18
Net Investment Factor ............................ 18
Surrender Value .................................. 18
POLICY RIGHTS ..................................... 18
Surrenders ....................................... 18
Withdrawals ...................................... 18
Grace Period ..................................... 19
Reinstatement of a Lapsed or Terminated
Policy .......................................... 19
</TABLE>
<TABLE>
<CAPTION>
Page
-----
<S> <C>
Coverage Beyond Insured's Attained
Age 100 ......................................... 19
Right to Defer Payment ........................... 19
Policy Loans ..................................... 20
Policy Changes ................................... 21
Right of Policy Examination ...................... 22
Supplemental Benefits ............................ 22
DEATH BENEFIT ..................................... 23
POLICY SETTLEMENT ................................. 23
Settlement Options ............................... 24
THE COMPANY ....................................... 25
DIRECTORS & OFFICERS .............................. 26
ADDITIONAL INFORMATION ............................ 27
Reports to Policyowners .......................... 27
Right to Instruct Voting of Fund Shares .......... 27
Disregard of Voting Instructions ................. 28
State Regulation ................................. 28
Legal Matters .................................... 28
The Registration Statement ....................... 28
Financial Statements ............................. 28
Employment Benefit Plans ......................... 28
Distribution of the Policy ....................... 28
Independent Auditors ............................. 29
GROUP OR SPONSORED ARRANGEMENTS 29
TAX MATTERS ....................................... 29
General .......................................... 29
Federal Tax Status of the Company ................ 29
Life Insurance Qualification ..................... 30
Charges for JP Financial Income Taxes ............ 32
MISCELLANEOUS POLICY PROVISIONS ................... 33
The Policy ....................................... 33
Payment of Benefits .............................. 33
Suicide and Incontestability ..................... 33
Protection of Proceeds ........................... 33
Nonparticipation ................................. 33
Changes in Owner and Beneficiary;
Assignment ...................................... 33
Misstatements .................................... 33
ILLUSTRATIONS OF ACCUMULATION
VALUES, CASH VALUES AND DEATH
BENEFITS ......................................... A-1
</TABLE>
--------------------------------------------------------------------------------
This prospectus does not constitute an offer in any jurisdiction in which such
offering may not be lawfully made. No dealer, salesman or other person is
authorized to give any information or make any representations in connection
with this offering other than those contained in this prospectus, and, if given
or made, such other information or representations must not be relied upon. The
purpose of this variable life insurance policy is to provide insurance
protection. Life insurance is a long-term investment. Policyowners should
consider their need for insurance coverage and the policy's long-term investment
potential. No claim is made that the policy is any way similar or comparable to
an investment in a mutual fund.
--------------------------------------------------------------------------------
2
<PAGE>
definitions
--------------------------------------------------------------------------------
Accumulation Value: The total amount that a Policy provides for investment plus
the amount held as collateral for Policy Debt.
Age: The Insured's age at his/her nearest birthday.
Allocation Date: The date when the initial Net Premium is placed in the
Divisions and the General Account as instructed by the Policyowner in the
application. The Allocation Date is the later of 1) 25 days from the date we
mail the Policy to the agent for delivery to you; or 2) the date we receive all
administrative items needed to activate the Policy.
Attained Age: The Insured's age at the last Policy Anniversary.
Beneficiary: The person you designate in the application to receive the Death
Benefit proceeds. If changed, the Beneficiary is as shown in the latest change
filed with us. If no Beneficiary survives the Insured, you or your estate will
be the Beneficiary. The Beneficiary's interest may be subject to that of any
assignee.
Code: The Internal Revenue Code of 1986, as amended.
Company: Jefferson Pilot Financial Insurance Company.
Cost of Insurance: A charge related to our expected mortality cost for your
basic insurance coverage under the Policy, not including any supplemental
benefit provision that you may elect through a Policy rider.
Date of Receipt: Any Company business day, prior to 4:00 p.m. Eastern time, on
which a notice or premium payment is received at our home office.
Death Benefit: The amount which is payable on the Death of the Insured,
adjusted as provided in the Policy.
Death Benefit Options: The methods for determining the Death Benefit.
Division: A separate division of Separate Account A which invests only in the
shares of a specified Portfolio of a Fund.
Fund: An open-end management investment company whose shares are purchased by
the Separate Account to fund the benefits provided by the Policy.
General Account: A non-variable funding option available in the Policy that
guarantees a minimum interest rate of 4% per year.
Grace Period: The 61-day period beginning on the Monthly Anniversary Day on
which the Policy's Net Accumulation Value is insufficient to cover the current
Monthly Deduction. The Policy will lapse without value at the end of the 61-day
period unless we receive a sufficient payment.
Insured: The person on whose life the Policy is issued.
Issue Age: The Age of the Insured on the Policy's Issue Date.
Issue Date: The effective date on which we issue the Policy.
Load Basis Amount: An amount per $1,000 of Specified Amount which varies by
sex, Issue Age (or Attained Age for an increase in Specified Amount) and rating
class of the Insured. This amount is used to calculate the Acquisition Charge.
The maximum Load Basis Amount is $66.65, resulting in an Acquisition Charge of
$.40 per $1000 of Specified Amount in Years 1 through 10.
Loan Value: Generally, 100% of the Policy's Net Accumulation Value on the date
of a loan.
Monthly Anniversary Date: The same day in each month as the Policy Date.
Net Accumulation Value: Accumulation Value less Policy Debt.
Net Premium: The gross premium less a 2.5% State Premium Tax Charge, a 1.25%
Federal DAC Tax Charge and a 3% Premium Load. We currently do not intend to
assess the Premium Load beginning in the 11th Policy Year.
Policy: The life insurance contract described in this Prospectus.
Policy Date: The date set forth in the Policy from which policy years, policy
months and policy anniversaries will be determined. If the Policy Date falls on
the 29th, 30th or 31st of a month, the Policy Date will be the 28th of such
month. You may request the Policy Date. If You do not request a date, it is the
date the Policy is issued.
3
<PAGE>
Policy Debt: The principal of any loans outstanding against the Policy, plus
the accrued loan interest which has not been paid.
Portfolio: A separate investment series of one of the Funds.
Premium Load: A charge we assess against premium payments.
Proof of Death: One or more of: a) a copy of a certified death certificate; b)
a copy of a certified decree of a court of competent jurisdiction as to the
finding of death; c) a written statement by a medical doctor who attended the
Insured; or d) any other proof satisfactory to us.
Refund of Sales Charges: A refund we make of all first-year acquisition
charges, Premium Load and administrative charges you paid if you surrender your
Policy in the first two Policy Years.
SEC: Securities and Exchange Commission.
Separate Account A or the Separate Account: JPF Separate Account A, a separate
investment account we established for the purpose of funding the Policy.
Service Office: Our principal executive offices at One Granite Place, Concord,
New Hampshire 03301.
Specified Amount: The amount you choose at application, which may subsequently
be increased or decreased, as provided in the Policy. The Specified Amount is
used in determining the Death Benefit.
State: Any State of the United States, the District of Columbia, Puerto Rico,
Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands or
any other possession of the United States.
Surrender Value: Net Accumulation Value plus Refund of Sales Charges if the
surrender occurs in the first two Policy years.
Target Premium: The premium from which first year commissions will be
determined and which varies by sex, Issue Age, rating class of the Insured and
Specified Amount.
Valuation Date: The date and time at which the Accumulation Value of a variable
investment option is calculated. Currently, this calculation occurs after the
close of business of the New York Stock Exchange on any normal business day,
Monday through Friday, that the New York Stock Exchange and the Company are
open. In addition to being closed on all federal holidays, we will also be
closed on Good Friday, the Friday following Thanksgiving and the day before or
following Christmas.
Valuation Period: The period of time between two successive Valuation Dates,
beginning at the close of regular trading on the New York Stock Exchange on
each Valuation Date, and ending at the close of regular trading on the New York
Stock Exchange on the next succeeding Valuation Date.
policy summary
--------------------------------------------------------------------------------
This Prospectus describes a flexible premium variable life insurance policy.
The Policy provides life insurance and pays a benefit (subject to adjustment
under the Policy's Age and/or Sex, Suicide and Incontestability, and Grace
Period provisions) upon surrender or Death of the Insured. The Policy allows
flexible premium payments, Policy Loans, Withdrawals and a choice of Death
Benefit Options. Account values may be either fixed or variable or a
combination of fixed and variable.
We designed Ensemble Exec primarily to be used in multi-life situations where
the insureds share common employment or have a business relationship. The
Policy may be owned individually or by a corporation, trust, association or
other similar entity. You may use the Policy to informally fund non-qualified
executive deferred compensation, salary continuation plans, retiree medical
benefits or other purposes.
Charges and fees will be assessed against premium payments, Accumulation Value,
the Separate Account, the underlying Funds and upon partial withdrawals.
You must purchase your variable life insurance policy from a registered
representative. The Policy, the initial application on the Insured, any
subsequent applications, endorsements and any riders constitute the entire
contract.
At the time of application, you must choose a Death Benefit Option, decide on
the amount of planned premium and determine how to allocate Net Premiums. You
may elect to supplement the benefits afforded by the Policy through the
addition of riders we make available.
4
<PAGE>
The proceeds payable upon the Death of the Insured depend on the Death Benefit
Option chosen. Under Option 1 the Death Benefit equals the current Specified
Amount. Under Option 2, the Death Benefit equals the current Specified Amount
plus the Accumulation Value on the date of death. Under Option 3, the Death
Benefit equals the Specified Amount plus total premiums paid, less any
withdrawals. We may make other options available. We will reduce the Death
Benefit proceeds by any outstanding Policy Debt.
Although the Policy is designed to allow flexible premiums, you must pay
sufficient premiums to continue the Policy in force. The initial premium must
be paid at issue. The initial premium is based on Issue Age, underwriting class
and Specified Amount. No premium payment may be less than $250 ($50 for
electronic fund transfers). We will send you premium reminder notices for
Planned Premiums and for premiums required to continue the Policy in force.
Should your Policy lapse, you may reinstate it.
You may allocate your Net Premiums to the Separate Account, the General Account
or both Accounts. Net Premiums allocated to the Separate Account must be
allocated to one or more of the Divisions of the Separate Account and
allocations must be in whole percentages. The variable portion of the Policy is
supported by the Divisions you choose and will vary with the investment
performance of the associated Portfolios. Net Premiums allocated to the General
Account will accumulate at rates of interest we determine. The effective rate
of interest will not be less than 4% per year.
the separate account
--------------------------------------------------------------------------------
The Separate Account underlying the Policy is JPF Separate Account A. Amounts
allocated to the Separate Account are invested in the Portfolios. Each
Portfolio is a series of an open-end management investment company whose shares
are purchased by the Separate Account to fund the benefits provided by the
Policy. The Portfolios, including their investment objectives and their
investment advisers, are described in this Prospectus. Complete descriptions of
the Portfolios' investment objectives and restrictions and other material
information relating to the Portfolios are contained in the Funds'
prospectuses, which are delivered with this Prospectus.
Separate Account A was established under New Hampshire law on August 20, 1984.
Under New Hampshire Insurance Law, the income, gains or losses of the Separate
Account are credited without regard to the other income, gains or losses of the
Company. These assets are held for our variable life insurance policies and
variable annuities. Any and all distributions made by the Portfolios with
respect to shares held by the Separate Account will be reinvested in additional
shares at net asset value. The assets maintained in the Separate Account will
not be charged with any liabilities arising out of any other business we
conduct. We are, however, responsible for meeting the obligations of the Policy
to the Policyowner.
No stock certificates are issued to the Separate Account for shares of the
Portfolios held in the Separate Account. Ownership of Portfolio shares is
documented on the books and records of the Portfolios and of the Company for
the Separate Account.
The Separate Account is registered with the SEC as a unit investment trust
under the Investment Company Act of 1940 and meets the definition of separate
account under the federal securities laws. Such registration does not involve
any approval or disapproval by the Commission of the Separate Account or our
management or investment practices or policies. We do not guarantee the
Separate Account's investment performance.
Divisions. The Policies presently offer twenty Divisions but may add or delete
Divisions. You may invest in a total of 17 Divisions over the life of the
Policy. Each Division will invest exclusively in shares of a single Portfolio.
5
<PAGE>
charges & fees
--------------------------------------------------------------------------------
> CHARGES & FEES ASSESSED AGAINST PREMIUM
Premium Charges
Before a premium is allocated to any of the Divisions of Separate Account A
and the General Account, we will deduct the following fees and charges:
o a state premium tax charge of 2.5% unless otherwise required by state law
(1.0% in Oregon and 2.35% in California).
The state premium tax charge reimburses us for taxes we pay to states and
municipalities in which the Policy is sold. The amount of tax assessed by a
state or municipality may be more or less than the charge. We may impose the
premium tax charge in states which do not themselves impose a premium tax.
o a federal income tax charge of 1.25% ("Federal DAC Tax Charge") which
reimburses us for our increased federal tax liability under the federal
tax laws. Subject to state law, we reserve the right to increase these tax
charges due to changes in the state or federal tax laws that increase our
tax liability.
o a Premium Load which we currently do not intend to assess after the 10th
Policy Year and which is guaranteed not to exceed 3% of premium.
> CHARGES & FEES ASSESSED AGAINST ACCUMULATION VALUE
Charges and fees assessed against the Policy's Accumulation Value can be
deducted from any one of the Divisions, the General Account, or pro rata
from each of the Divisions and the General Account. If you do not designate
one Division, we will deduct the charges pro rata from each of the Divisions
and the General Account.
Monthly Deduction
On each Monthly Anniversary Date and on the Policy Date, we will deduct from
the Policy's Accumulation Value an amount to cover certain expenses
associated with start-up and maintenance of the Policy, administrative
expenses, the cost of insurance for the Policy and any optional benefits
added by rider.
The Monthly Deduction equals:
i) the Cost of Insurance for the Policy (as described below), plus
ii) a Monthly Administrative Fee of $10, plus
iii) a monthly Acquisition Charge during the first ten Policy Years equal to
0.6% of the Load Basis Amount, plus
iv) the cost of optional benefits provided by rider.
v) a monthly acquisition charge during the first 120 months following any
increase in Specified Amount.
Cost of Insurance. The Cost of Insurance charge is related to our expected
mortality cost for your basic insurance coverage under the Policy, not
including any supplemental benefit provisions that you may elect through a
Policy rider.
The Cost of Insurance charge equals (i) multiplied by the result of (ii)
minus (iii) where:
i) is the current Cost of Insurance Rate as described in the Policy;
ii) is the death benefit at the beginning of the policy month divided by
1.0032737 (to arrive at the proper values for the beginning of the month
assuming the guaranteed interest rate of 4%); and
iii) is the Accumulation Value at the beginning of the policy month, prior
to the monthly deduction for the Cost of Insurance.
The current Cost of Insurance Rate is variable and is based on the Insured's
issue age, sex (where permitted by law), rating class, Policy Year and
Specified Amount. Because the Accumulation Value and the Death Benefit of
the Policy may vary from month to month, the Cost of Insurance charge may
also vary on each day a Monthly Deduction is taken. In addition, you should
note that the Cost of Insurance charge is related to the difference between
the Death Benefit payable under the Policy and the Accumulation Value of the
Policy. An increase in the Accumulation Value or a decrease in the Death
Benefit may result in a smaller Cost of Insurance charge while a decrease in
the Accumulation Value or an increase in the Death Benefit may result in a
larger cost of insurance charge.
6
<PAGE>
The Cost of Insurance rate for standard risks will not exceed those based on
the 1980 Commissioners Standard Ordinary Mortality Tables Male or Female
(1980 Tables). Substandard risks will have monthly deductions based on Cost
of Insurance rates which may be higher than those set forth in the 1980
Tables. A table of guaranteed maximum Cost of Insurance rates per $1,000 of
the Amount at Risk will be included in each Policy. We may adjust the
Monthly Cost of Insurance rates from time to time. Adjustments will be on a
class basis and will be based on our estimates for future factors such as
mortality experience, investment earnings, expenses (including reinsurance
costs), taxes and the length of time Policies stay in force. Any adjustments
will be made on a nondiscriminatory basis. The current Cost of Insurance
rate will not exceed the applicable maximum Cost of Insurance rate shown in
your Policy.
Monthly Administrative Expense Charge. The Monthly Deduction amount also
includes a monthly administration fee of $10.00. This fee may not be
increased.
Acquisition Charge. We will deduct from the Accumulation Value a monthly
acquisition charge of 0.6% of the Load Basis Amount in Policy Years 1
through 10 (7.2% annually). The Load Basis Amount is an amount per $1000 of
Specified Amount, which varies by sex, Issue Age and rating class of the
Insured. The maximum load Basis Amount is $66.65, resulting in a maximum
Acquisition Charge of $.40 per $1000 of Specified Amount in years 1 through
10. This charge does not vary with the amount of premium paid. We will also
deduct a pro-rated acquisition charge on increases in Specified Amount. We
reserve the right to increase or decrease this charge for policies not yet
issued in order to correspond with changes in distribution costs of the
Policy. The charge compensates us for the cost of selling the Policy,
including, among other things, agents' commissions, advertising and printing
of prospectuses and sales literature. Normally this charge compensates us
for total sales expenses for the year. To the extent sales expenses in any
policy year are not recovered by the Acquisition Charges we collect, we may
recover sales expenses from other sources, including profits from the
Mortality Risk and Expense Risk Charges.
Charges for Optional Benefits. If you elect any optional benefits by adding
riders to the Policy, an optional benefits charge will be included in the
Monthly Deduction amount. The amount of the charge will vary depending upon
the actual optional benefits selected and is described on each applicable
Policy rider.
Refund of Sales Charges. If you surrender your Policy within the first two
policy years, we will refund to you all first-year acquisition charges,
Premium Load and administrative charges you paid.
This guaranteed refund is available only upon surrender in the first two
Policy Years. If the Policy has additional coverage due to a Supplementary
Coverage Rider, the refund of Premium Load and Administrative Charges will
be reduced by the percentage of total coverage that is due to the
Supplementary Coverage Rider.
> CHARGES & FEES ASSESSED AGAINST THE SEPARATE ACCOUNT
Mortality and Expense Risk Charge
We will assess a charge on a daily basis against each Division at a current
annual rate of 0.60% in Policy Years 1 through 25 and 0.40% in Policy Years
26 and later of the value of the Divisions to compensate us for mortality
and expense risks we assume in connection with the Policy. We reserve the
right to increase this charge, but guarantee that it will not exceed 0.85%
in Policy Years 1 through 25 and 0.60% in Policy Years 26 and thereafter.
The mortality risk we assume is that Insureds, as a group, may live for a
shorter period of time than estimated and that we will, therefore, pay a
Death Benefit before collecting a sufficient Cost of Insurance charge. The
expense risk assumed is that expenses incurred in issuing and administering
the Policies and operating the Separate Account will be greater than the
administrative charges assessed for such expenses.
The Separate Account is not subject to any taxes. However, if taxes are
assessed against the Separate Account, we reserve the right to assess taxes
against the Separate Account Value.
Administrative Charge for Transfers or Withdrawal
We may impose an Administrative Fee of $50 for each transfer among the
Divisions of the Separate Account or the General Account, after the first 12
transfers in a Policy Year (up to a maximum of 20). We will also charge an
Administrative Fee on withdrawals equal to the lesser of 2% of the
withdrawal amount or $50.
7
<PAGE>
> CHARGES ASSESSED AGAINST THE UNDERLYING FUNDS
Following are the investment advisory and sub-investment management fees,
paid by each of the Funds as a percentage of average net assets.
Jefferson Pilot Variable Fund, Inc.
<TABLE>
<CAPTION>
World Growth Stock,
Global Hard Assets,
Small Company, S&P
Average Daily Money Value, Capital 500
Net Assets Market and Balanced Growth Index
-------------------- -------- -------------------- --------- ---------
<S> <C> <C> <C> <C>
First $200 million .50% .75% 1.00% .24%
Next $1.1 billion .45% .70% .95% .24%
Over $1.3 billion .40% .65% .90% .24%
</TABLE>
<TABLE>
<CAPTION>
Average Daily Emerging High Yield International
Net Assets Growth Bond and Growth Equity
-------------------- ---------- ----------------- --------------
<S> <C> <C> <C>
First $200 million .80% .75% 1.00%
Next $1.1 billion .75% .75% 1.00%
Over $1.3 billion .70% .75% 1.00%
</TABLE>
The compensation of the Sub-Investment Managers is paid directly from the
investment management fees of JP Investment Advisory and is set forth in the
table below as an annual percentage of the average daily net assets of the
Portfolio managed:
<TABLE>
<CAPTION>
Sub-Investment Manager Fees
----------------------------------------------
Templeton Van Eck Lord
Janus World Global Abbett
Average Daily Capital Growth Hard Small
Net Assets Growth Stock Assets Company
-------------------- --------- ----------- --------- --------
<S> <C> <C> <C> <C>
First $200 million .70% .50% .50% .50%
Next $1.1 billion .65% .45% .45% .45%
Over $1.3 billion .60% .40% .40% .40%
</TABLE>
<TABLE>
<CAPTION>
Credit MFS MFS
Suisse Emerging Money
Net Assets Value Growth Market
-------------------- -------- ---------- ---------
<S> <C> <C> <C>
First $100 Million .50% .40% .30%
Next $100 million .50% .40% .30%
Next $300 million .50% .40% .25%
Over $500 million .50% .40% .25%
Over $1 billion .50% .40% .25%
</TABLE>
<TABLE>
<CAPTION>
MFS
High Janus Barclay's
Net Assets Yield Balanced S&P 500
-------------------- --------- ---------- ----------
<S> <C> <C> <C>
First $100 Million .40% .55% .05%
Next $100 million .40% .50% .05%
Next $300 million .40% .50% .05%
Over $500 million .40% .45% .025%
Over $1 billion .40% .45% .01%
</TABLE>
<TABLE>
<CAPTION>
Lombard Odier
Strong International
Net Assets Growth Equity
------------------- -------- --------------
<S> <C> <C>
First $25 million .60% .50%
Next $75 million .50% .50%
Next $50 million .40% .50%
Over $150 million .30% .50%
</TABLE>
Templeton International Securities Fund: Class 2.
<TABLE>
<CAPTION>
Total
Other Annual
Expenses Distribution Expenses
Management (After Expense Fee (After Expense
Fee Reimbursement) (12b-1) Reimbursement)
------------ ---------------- -------------- ---------------
<S> <C> <C> <C>
.69% .19% .25% 1.13%
</TABLE>
The fund's class 2 distribution plan or "rule 12b-1 plan" is described in
the fund's prospectus. On 2/8/00, shareholders approved a merger and
reorganization that combined the fund with the Templeton International
Equity Fund, effective 5/1/00. The shareholders of that fund had approved
new management fees, which apply to the combined fund effective 5/1/00. The
table shows restated total expenses based on the new fees and the assets of
the fund as of 12/31/99, and not the assets of the combined fund. However,
if the table reflected both the new fees and the combined assets, the fund's
expenses after 5/1/00 would be estimated as: Management Fees 0.65%,
Distribution and Service Fees 0.25%, Other Expenses 0.20%, and Total Fund
Operating Expenses 1.10%.
Fidelity VIP and VIP II
<TABLE>
<CAPTION>
Total
Management Other Annual
Fidelity VIP Fee Expenses Expenses
------------ ------------ ---------- ---------
<S> <C> <C> <C>
Equity-Income .48% .08% .56%
Growth .58% .07% .65%
Fidelity VIP II
---------------
Contrafund .58% .07% .65%
</TABLE>
MFS Variable Insurance Trust
<TABLE>
<CAPTION>
Total
Management Other Annual
Fee Expenses Expenses
------------ ---------- ---------
<S> <C> <C> <C>
MFS Research Series .75% .11% .86%
MFS Utilities Series .75% .16% .91%
</TABLE>
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
Total
Management Other Annual
Fee Expenses Expenses
------------ ---------- ---------
<S> <C> <C> <C>
Strategic Bond Fund/VA .74% .04% .78%
Bond Fund/VA .72% .01% .75%
</TABLE>
Certain of the unaffiliated Portfolio advisers reimburse us for
administrative costs incurred in connection with administering the Funds as
variable funding options under the Policy. These reimbursements are paid by
the advisers and are not charged to the Portfolios.
For further details on each Portfolio's expenses please refer to that
Portfolio's prospectus. Additional copies of each Portfolio's prospectus
and the Statement of Additional Information for each Portfolio may be
obtained free of charge by calling (800)258-3648 x7719.
8
<PAGE>
Other Charges
We reserve the right to charge the assets of each Division to provide for
any income taxes or other taxes payable by us on the assets attributable to
that Division. Although we currently make no charge, we reserve the right to
charge you an administrative fee, not to exceed $50, to cover the cost of
preparing any additional illustrations of current Accumulation and Surrender
Values and current mortality assumptions which you may request after the
Policy Date.
allocation of premiums
--------------------------------------------------------------------------------
You may allocate all or a part of your Net Premiums to the Divisions
currently available under your Policy or you may allocate all or a part of
your Net Premiums to the General Account.
> THE PORTFOLIOS
The Separate Account currently invests in shares of the Portfolios listed
below. Net Premiums applied to the Separate Account will be invested in the
Portfolios in accordance with your selection. Portfolios may be added or
withdrawn as permitted by applicable law. We reserve the right to limit the
total number of Portfolios you may elect to 17 over the lifetime of the
Policy or to increase the total number of Portfolios you may elect. Shares
of the Portfolios are not sold directly to the general public. Each of the
Portfolios is available only through the purchase of variable annuities or
variable life insurance policies (See Mixed and Shared Funding).
The investment results of the Portfolios, whose investment objectives are
described below, are likely to differ significantly. There is no assurance
that any of the Portfolios will achieve their respective investment
objectives. Investment in some of the Portfolios involves special risks,
which are described in their respective prospectuses. You should read the
prospectuses for the Portfolios and consider carefully, and on a continuing
basis, which Portfolio or combination of Portfolios is best suited to your
long-term investment objectives. Except where otherwise noted, all of the
Portfolios are diversified, as defined in the Investment Company Act of
1940.
o JPVF International Equity Portfolio seeks long-term capital appreciation
through investments in securities whose primary trading markets are
outside the United States.
o JPVF World Growth Stock Portfolio seeks to achieve long-term capital
growth through a policy of investing primarily in stocks of companies
organized in the United States or in any foreign nation. A portion of the
Portfolio may also be invested in debt obligations of companies and
governments of any nation. Any income realized will be incidental.
o JPVF Global Hard Assets Portfolio seeks long-term capital appreciation by
investing globally, primarily in "Hard Asset Securities". Hard Asset
Securities include equity and debt securities of "Hard Asset Companies",
that are directly or indirectly engaged in the exploration, development,
production or distribution of one or more of the following: precious
metals; ferrous and non-ferrous metals; oil and gas, petroleum,
petrochemicals or other hydrocarbons; forest productions; real estate; and
other basic non-agricultural commodities. Income is a secondary
consideration.
o JPVF Emerging Growth Portfolio seeks to provide long-term growth of
capital. Dividend and interest income from portfolio securities, if any,
is incidental to the Portfolio's investment objective of long-term growth.
o JPVF Capital Growth Portfolio seeks capital growth. Realization of income
is not a significant investment consideration and any income realized will
be incidental.
o JPVF Small Company Portfolio seeks to achieve growth of capital. The
Portfolio pursues its objective by investing primarily in a diversified
portfolio of equity securities issued by small companies, which are
defined as companies with market capitalization equal to or less than the
largest company in the Russell 2000[TM] Index.
o JPVF Growth Portfolio seeks capital growth by investing primarily in
equity securities that the Sub-Investment Manager believes have above-
average growth prospects.
o JPVF S&P 500 Index Portfolio seeks investment results that correspond to
the total return of common stocks publicly traded in the United States, as
represented by the S&P 500.
9
<PAGE>
o JPVF Value Portfolio (formerly JPVF Growth and Income Portfolio) seeks
long-term growth of capital by investing primarily in a wide range of
equity issues that may offer capital appreciation and, secondarily, seeks
a reasonable level of current income.
o JPVF Balanced Portfolio seeks reasonable current income and long-term
capital growth, consistent with conservation of capital, by investing
primarily in common stocks and fixed income securities.
o JPVF High Yield Bond Portfolio seeks a high level of current income by
investing primarily in corporate obligations with emphasis on higher
yielding, higher risk, lower-rated or unrated securities. These securities
may be considered speculative and involve greater risks, including risk of
default, than higher rated securities.
o JPVF Money Market Portfolio seeks to achieve as high a level of current
income as is consistent with preservation of capital and liquidity. An
investment in the Money Market Portfolio is neither insured nor guaranteed
by the U.S. Government.
o Fidelity Variable Insurance Products Fund-- Growth Portfolio seeks capital
appreciation by investing primarily in common stocks.
o Fidelity Variable Insurance Products Fund-- Equity-Income Portfolio seeks
reasonable income by investing primarily in income-producing equity
securities. In choosing these securities, the Fund will also consider the
potential for capital appreciation.
o Fidelity Variable Insurance Products Fund II--Contrafund Portfolio seeks
maximum total return over the long term by investing its assets mainly in
equity securities of companies that are undervalued or out-of-favor.
o MFS Variable Insurance Trust--Research Series seeks to provide long-term
growth of capital and future income by investing a substantial proportion
of its assets in equity securities of companies believed to possess
better-than-average prospects for long-term growth.
o MFS Variable Insurance Trust--Utilities Series seeks capital growth and
current income (incomes above that available from a portfolio invested
entirely in equity securities) by investing, under normal circumstances,
at least 65% (but up to 100% at the discretion of the Adviser) of its
assets in equity and debt securities of both domestic and foreign
companies in the utilities industry.
o Oppenheimer Variable Account Funds-- Strategic Bond Fund/VA seeks a high
level of current income principally derived from interest on debt
securities and seeks to enhance such income by writing covered call
options on debt securities. The Portfolio intends to invest principally
in: (i) foreign government and corporate debt securities, (ii) U.S.
Government securities, and (iii) lower-rated high yield domestic debt
securities, commonly known as "junk bonds", which are subject to a greater
risk of loss of principal and nonpayment of interest than higher-rated
securities. These securities may be considered to be speculative.
o Oppenheimer Variable Account Funds-- Bond Fund/VA primarily seeks a high
level of current income from investment in high yield, fixed-income
securities rated "Baa" or better by Moody's or "BBB" or better by Standard
& Poor's. Secondarily, this Portfolio seeks capital growth when consistent
with its primary objective.
o Franklin Templeton Variable Insurance Products Trust--Templeton
International Securities Fund seeks long-term capital growth. The fund
will invest in equity securities of companies located outside the U.S.,
including those in emerging markets.
Some of the above Portfolios may use instruments known as derivatives as
part of their investment strategies, as described in their respective
prospectuses. The use of certain derivatives such as inverse floaters and
principal on debt instruments may involve higher risk of volatility to a
Portfolio. The use of leverage in connection with derivatives can also
increase risk of losses. See the prospectus for the Portfolio for a
discussion of the risks associated with an investment in those Portfolios.
You should refer to the accompanying prospectuses of the Portfolios for more
complete information about their investment policies and restrictions.
> INVESTMENT ADVISERS FOR EACH OF THE FUNDS
Jefferson Pilot Variable Fund, Inc. ("JPVF") The investment manager to JPVF
is Jefferson Pilot Investment Advisory Corporation ("JP Investment
10
<PAGE>
Advisory"), an affiliate of the Company. JP Investment Advisory and JPVF
have contracted with nine unaffiliated companies to act as sub-investment
advisers to the Funds. They are:
o JPVF International Equity Portfolio: Lombard Odier International Portfolio
Management Limited ("Lombard Odier")
o JPVF World Growth Stock Portfolio: Templeton Investment Council, Inc.
("TICI")
o JPVF Global Hard Assets Portfolio: Van Eck Associates Corporation ("Van
Eck")
o JPVF Emerging Growth Portfolio: Massachusetts Financial Services Company
("MFS")
o JPVF Capital Growth Portfolio: Janus Capital Corporation ("Janus")
o JPVF Small Company Portfolio: Lord, Abbett & Co. ("Lord Abbett")
o JPVF Growth Portfolio: Strong Capital Management, Inc. ("Strong")
o JPVF S&P 500 Index Portfolio: Barclays Global Fund Advisors ("Barclays")
o JPVF Value Portfolio: Credit Suisse Asset Management, LLC ("Credit
Suisse")
o JPVF Balanced Portfolio: Janus
o JPVF High Yield Bond: MFS
o JPVF Money Market Portfolio: MFS
Fidelity Variable Insurance Products Fund--Fidelity Management and Research
Company ("FMR")
Fidelity Variable Insurance Products Fund II--FMR
MFS Variable Insurance Trust--Massachusetts Financial Services Company
("MFS")
Oppenheimer Variable Account Funds-- OppenheimerFunds, Inc. ("Oppenheimer")
Franklin Templeton Variable Insurance Products Trust--Templeton Investment
Counsel, Inc. ("TICI")
> MIXED AND SHARED FUNDING; CONFLICTS OF INTEREST
Shares of the Funds are available to insurance company separate accounts
which fund variable annuity contracts and variable life insurance policies,
including the Policy described in this Prospectus. Because Fund shares are
offered to separate accounts of both affiliated and unaffiliated insurance
companies, it is conceivable that, in the future, it may not be advantageous
for variable life insurance separate accounts and variable annuity separate
accounts to invest in these Funds simultaneously, since the interests of
such Policyowners or contractholders may differ. Although neither the
Company nor the Funds currently foresees any such disadvantages either to
variable life insurance or to variable annuity Policyowners, each Fund's
Board of Trustees/Directors has agreed to monitor events in order to
identify any material irreconcilable conflicts which may possibly arise and
to determine what action, if any, should be taken in response thereto. If
such a conflict were to occur, one of the separate accounts might withdraw
its investment in a Fund. This might force that Fund to sell portfolio
securities at disadvantageous prices.
> FUND ADDITIONS, DELETIONS OR SUBSTITUTIONS
We reserve the right, subject to compliance with appropriate state and
federal laws, to add, delete or substitute shares of another Portfolio or
Fund for Portfolio shares already purchased or to be purchased in the future
for the Division in connection with the Policy. We may substitute shares of
one Portfolio for shares of another Portfolio if, among other things, (a) it
is determined that a Portfolio no longer suits the purpose of the Policy due
to a change in its investment objectives or restrictions; (b) the shares of
a Portfolio are no longer available for investment; or (c) in our view, it
has become inappropriate to continue investing in the shares of the
Portfolio. Substitution may be made with respect to both existing
investments and the investment of any future premium payments. However, no
substitution, addition or deletion of securities will be made without prior
notice to Policyowners, and without such prior approval of the SEC or other
regulatory authorities as may be necessary, all to the extent required and
permitted by the Investment Company Act of 1940 or other applicable law.
We also reserve the right to make the following changes in the operation of
the Separate Account and the Divisions;
(a) to operate the Separate Account in any form permitted by law;
(b) to take any action necessary to comply with applicable law or obtain and
continue any exemption from applicable laws;
(c) to transfer assets from one Division to another, or from any Division to
our general account;
11
<PAGE>
(d) to add, combine, or remove Divisions in the Separate Account;
(e) to assess a charge for taxes attributable to the operation of the
Separate Account or for other taxes, described in "Charges and Fees--Other
Charges" on page 10 above; and
(f) to change the way we assess other charges, as long as the total other
charges do not exceed the amount currently charged the Separate Account and
the Portfolios in connection with the Policies.
Portfolio shares are subject to certain investment restrictions which may
not be changed without the approval of the majority of the Portfolio's
shareholders. See accompanying Prospectuses for the Portfolios.
> GENERAL ACCOUNT
Interests in the General Account have not been registered with the SEC in
reliance upon exemptions under the Securities Act of 1933, as amended and
the General Account has not been registered as an investment company under
the 1940 Act. However, disclosure in this Prospectus regarding the General
Account may be subject to certain generally applicable provisions of the
federal securities laws relating to the accuracy and completeness of the
statements. Disclosure in this Prospectus relating to the Fixed Account has
not been reviewed by the SEC.
The General Account is a fixed funding option available under the Policy. We
guarantee a minimum interest rate of 4.0% on amounts in the General Account
and assume the risk of investment gain or loss. The investment gain or loss
of the Separate Account or any of the Portfolios does not affect the General
Account Value.
The General Account is secured by our general assets. Our general assets
include all assets other than those held in separate accounts sponsored by
us or our affiliates. We will invest the assets of the General Account in
those assets we chose, as allowed by applicable law. We will allocate
investment income of such General Account assets between ourself and those
policies participating in the General Account.
We guarantee that, at any time, the General Account Value of your Policy
will not be less than the amount of the Net Premiums allocated to the
General Account, plus any monthly accumulation value adjustment, plus
interest at an annual rate of not less than 4.0%, less the amount of any
Withdrawals, Policy Loans or Monthly Deductions, plus interest at an annual
rate of not less than 4.0%.
If you do not accept the Policy issued as applied for or you exercise your
"free look" option, no interest will be credited and we will retain any
interest earned on the initial Net Premium.
policy choices
----------------------------------------------------------------------------
> GENERAL
The Policy is designed to provide the Insured with lifetime insurance
protection and to provide you with flexibility in amount and frequency of
premium payments and level of life insurance proceeds payable under the
Policy. It provides life insurance coverage on the Insured with a Death
Benefit payable on the Insured's Death. You are not required to pay
scheduled premiums to keep the Policy in force and you may, subject to
certain limitations, vary the frequency and amount of premium payments.
To purchase a Policy, you must complete an application and submit it to us
through the agent selling the Policy. The Policy is issued on a guaranteed
issue, simplified issue or a fully-underwritten basis. For a fully
underwritten Policy, the Insured must be no older than age 85. For a
simplified issue or guaranteed issue Policy, the Insured must be no younger
than age 15 and no older than age 70. Smoking status is reflected in the
current cost of insurance rates. Policies issued in certain States will not
directly reflect the Insured's sex in either the premium rates or the
charges or values under the Policy. We may reject an application for any
reason.
The minimum Specified Amount at issue is $25,000. We reserve the right to
revise our rules to specify different minimum Specified Amounts at issue. We
may reinsure all or a portion of the Policy.
> DETAILED INFORMATION ABOUT THE POLICY
This prospectus describes the standard Ensemble Exec flexible premium
variable universal life insurance policy. There may be variations in your
policy because of specific state requirements in the
12
<PAGE>
state where your Policy is issued. We will describe any such variations in
your Policy or in Supplements to this Prospectus, as appropriate.
> PREMIUM PAYMENTS
The Policy is a flexible premium life insurance policy. This means that you
may decide when to make premium payments and in what amounts. You must pay
your premiums to us at our home office or through one of our authorized
agents for forwarding to us. There is no fixed schedule of premium payment
on the Policy either as to amount or frequency. You may determine, within
certain limits, your own premium payment schedule. We will not bill premium
payments for less than $250 ($50 for electronic fund transfers).
We may require evidence of insurability if payment of a premium will result
in an immediate increase in the difference between the Death Benefit and the
Accumulation Value.
In order to help you obtain the insurance benefits you desire, we will state
a Planned Periodic Premium and Premium Frequency in the Policy. This premium
will generally be based on your insurance needs and financial abilities, the
Specified Amount of the Policy and the Insured's age, sex and risk class.
You are not required to pay Planned Periodic Premiums. If you do not pay a
Planned Periodic Premium, your Policy will not lapse, so long as the
Policy's Net Accumulation Value is sufficient to pay the Monthly Deduction.
Payment of the Planned Periodic Premiums will not guarantee that your Policy
will remain in force. (See "Grace Period")
> MODIFIED ENDOWMENT CONTRACT
The Policy will be allowed to become a Modified Endowment contract under the
Internal Revenue Code only with your consent. Otherwise, if at any time the
premiums paid under the Policy exceed the limit for avoiding modified
endowment contract status, we will refund the excess premium to you with
interest within 60 days after the end of the Policy Year in which the
premium was received. If, for any reason, we do not refund the excess
premium within that 60-day period, we will hold the excess premium in a
separate deposit fund and credit it with interest until refunded to you. The
interest rate used on any refund, or credited to the separate deposit fund
created by this provision, will be the excess premium's pro rata rate of
return on the contract until the date we notify you that the excess premium
and the earnings on such excess premium have been removed from the Policy.
After the date of such notice, the interest rate paid on the separate
deposit fund will be such rate as we may declare from time to time on
advance premium deposit funds. We may also notify you of other options
available to you to keep the Policy in compliance.
> COMPLIANCE WITH THE INTERNAL REVENUE CODE
The Policy is intended to qualify as life insurance under the Internal
Revenue Code. The Death Benefit provided by the Policy is intended to
qualify for the federal income tax exclusion. If at any time the premium
paid under the Policy exceeds the amount allowable for such qualification,
we will refund the excess premium to you with interest within 60 days after
the end of the Policy Year in which it was received. If, for any reason, we
do not refund the excess premium within the 60-day period, such amount will
be held in a separate deposit fund and will be credited with interest until
refunded to you. The interest rate used on any refund, or credited to the
separate deposit fund created by this provision, will be the excess
premium's pro rata rate of return on the contract until the date we notify
you that the excess premium and the earnings on such excess premium have
been removed from the Policy. After the date of such notice, the interest
rate paid on the separate deposit fund will be such rate as we may declare
from time to time on advance premium deposit funds.
We also reserve the right to refuse to make any change in the Specified
Amount or the Death Benefit Option or any other change if such change would
cause the policy to fail to qualify as life insurance under the Code.
Backdating
Under limited circumstances, we may backdate a Policy, upon request, by
assigning a Policy Date earlier than the date the application is signed but
no earlier than six months prior to state approval of the Policy. Backdating
may be desirable so that you can purchase a particular Policy Specified
Amount for lower Cost of Insurance Rate based on a younger insurance age.
For a backdated Policy, we will assess policy fees and charges from the
Policy Date. Backdating of your Policy will not affect the date on which
your premium payments are credited to the Separate Account.
13
<PAGE>
Allocation of Premiums
We will allocate premium payments, net of the premium tax charge, Federal
DAC tax charge and Premium Load, plus interest earned prior to the
Allocation Date, among the General Account and the divisions of the Separate
Account in accordance with your directions to us. The minimum percentage of
any net premium payment allocated to any division or the General Account is
5% and allocation percentages must be in whole numbers only. Your initial
premium (including any interest) will be allocated, as you instructed, on
the Allocation Date. Your subsequent premiums will be allocated as of the
date they are received in our Service Office. Prior to the Allocation Date,
the initial net premium, and any other premiums received, will be allocated
to the General Account. (See "Right of Policy Examination")
You may change your premium allocation instructions at any time. Your
request may be written or by telephone, so long as the proper telephone
authorization is on file with us. Allocations must be changed in whole
percentages. The change will be effective as of the date of the next premium
payment after you notify us. We will send you confirmation of the change.
(See "Transfers and Allocations to Funding Options")
You will be advised at least annually as to the number of Units which remain
credited to the Policy, the current Unit Values, the Separate Account Value,
the General Account Value, and the Accumulation Value.
> DEATH BENEFIT OPTIONS
At the time of purchase, you must choose between the available Death Benefit
Options. The amount payable upon the Death of the Insured depends upon which
Death Benefit Option you choose.
Option 1: The Death Benefit will be the greater of the current Specified
Amount or the Accumulation Value on the Death of the Insured multiplied by
the corridor percentage, as described below.
Option 2: The Death Benefit equals the greater of the current Specified
Amount plus the Accumulation Value on the Death of the Insured or the
Accumulation Value on the date of death multiplied by the corridor
percentage, as described below.
Option 3: The Death Benefit equals the current specified amount plus the
total premiums paid less any withdrawals to the date of death. If the total
of the withdrawals exceeds the premiums paid then the Death Benefit will be
less than the Specified Amount.
The corridor percentage is used to determine a minimum ratio of Death
Benefit to Accumulation Value. This is required to qualify the Policy as
life insurance under the federal tax laws.
Death Benefit Qualification Test
You will also choose between the two Death Benefit qualification tests, the
cash value accumulation test and the guideline premium test. Once you have
made your choice, the Death Benefit qualification test cannot be changed.
The guideline premium test limits the amount of premium payable for an
Insured of a particular age and sex. It also applies a prescribed corridor
percentage to determine a minimum ratio of Death Benefit to Accumulation
Value.
Following are the Corridor Percentages under the Guideline Premium Test:
Corridor Percentages
(Attained Age of the Insured at the
Beginning of the Contract Year)
<TABLE>
<CAPTION>
Age % Age % Age % Age %
------ ------ ----- ------ ----- ------ ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
0-40 250% 50 185% 60 130% 70 115%
41 243 51 178 61 128 71 113
42 236 52 171 62 126 72 111
43 229 53 164 63 124 73 109
44 222 54 157 64 122 74 107
45 215 55 150 65 120 75-90 105
46 209 56 146 66 119 91 104
47 203 57 142 67 118 92 103
48 197 58 138 68 117 93 102
49 191 59 134 69 116 94+ 101
</TABLE>
The cash value accumulation test requires that the Death Benefit be
sufficient to prevent the Accumulation Value, as defined in Section 7702 of
the Code, from ever exceeding the net single premium required to fund the
future benefits under the Policy. If the Accumulation Value is ever greater
than the net single premium at the Insured's age and sex for the proposed
Death Benefit, the Death Benefit will be automatically increased by
multiplying the Accumulation Value by a corridor percentage that is defined
as $1000 divided by the net single premium.
The tests differ as follows:
(1) the guideline premium test limits the amount of premium that you can pay
into your Policy; the cash value accumulation test does not.
(2) the factors that determine the minimum Death Benefit relative to the
Policy's Accumulation Value are different. Required increases in the
14
<PAGE>
minimum Death Benefit due to growth in Accumulation Value will generally
be greater under the cash value accumulation test.
(3) If you wish to pay premiums in excess of the guideline premium test
limitation, you should elect the cash value accumulation test. If you do
not wish to pay premiums in excess of the guideline premium test
limitations, you should consider the guideline premium test.
You should consult with a qualified tax adviser before choosing the Death
Benefit Qualification Test.
The following example demonstrates the Death Benefits under Options 1, 2 and
3 for the cash value accumulation test and the guideline premium test. The
example shows an Ensemble III Policy issued to a male, non-smoker, Age 45,
at the time of calculation of the Death Benefit. The Policy is in its 10th
Policy Year and there is no outstanding Policy Debt.
<TABLE>
<CAPTION>
Cash Value Guideline
Accumulation Premium
Test Test
-------------- ----------
<S> <C> <C>
Specified Amount .................... 100,000 100,000
Accumulation Value .................. 52,500 52,500
Corridor Percentage ................. 294% 215%
Total Premiums less Withdrawals..... 15,000 15,000
Death Benefit Option 1 .............. 154,088 112,875
Death Benefit Option 2 .............. 154,088 152,500
Death Benefit Option 3 .............. 154,088 115,000
</TABLE>
Under any of the Death Benefit Options, the Death Benefit will be reduced by
a Withdrawal. (See "Withdrawals") The Death Benefit payable under any of the
Options will also be reduced by the amount necessary to repay the Policy
Debt in full and, if the Policy is within the Grace Period, any payment
required to keep the Policy in force.
The Death Benefit will be set at 101% of the Cash Value on the Policy
Anniversary Date nearest the Insured's Attained Age 100.
After we issue the Policy, you may, subject to certain restrictions, change
the Death Benefit selection by sending us a request in writing. If you
change the Death Benefit Option from Option 2 to Option 1, the Specified
Amount will be increased by the Policy's Accumulation Value on the effective
date of the change. If you change the Death Benefit option from Option 1 to
Option 2, the Specified Amount will be decreased by the Policy's
Accumulation Value on the effective date of the change. If you change the
Death Benefit Option from Option 3 to Option 2, the Specified Amount will be
increased by the Premiums paid to the date of the change less any
withdrawals and then will be decreased by the Accumulation Value in the date
of the change. If you change the Death Benefit from Option 3 to Option 1,
the Specified Amount will be increased by the Premiums paid less any
withdrawals, to the date of the change. You may not change from Options 1 or
2 to Option 3. If a change would result in an immediate change in the Death
Benefit, such change will be subject to evidence of insurability.
> TRANSFERS AND ALLOCATIONS TO FUNDING OPTIONS
You may transfer all or part of the Accumulation Value to any other Division
or to the General Account at any time. Funds may be transferred between the
Divisions or from the Divisions to the General Account. We currently permit
12 transfers per year without imposing any transfer charge. For transfers
over 12 in any Policy Year, we will impose a transfer charge of $50, which
we will deduct on a pro rata basis from the Division or Divisions or the
General Account into which the amount is transferred, unless you specify
otherwise. We will not impose a Transfer Charge on the transfer of any Net
Premium payments received prior to the Allocation Date, plus interest
earned, from the General Account to the Divisions on the Allocation Date, or
on loan repayments. We will not impose a Transfer Charge for transfers under
the Dollar Cost Averaging or Portfolio Rebalancing features. You may
currently make up to 20 transfers per Policy Year. We reserve the right to
modify transfer privileges and charges.
You may at any time transfer 100% of the Policy's Accumulation Value to the
General Account and choose to have all future premium payments allocated to
the General Account. After you do this, the minimum period the Policy will
be in force will be fixed and guaranteed. The minimum period will depend on
the amount of Accumulation Value, the Specified Amount, the sex, Attained
Age and rating class of the Insured at the time of transfer. The minimum
period will decrease if you choose to surrender the Policy or make a
withdrawal. The minimum period will increase if you choose to decrease the
Specified Amount, make additional premium payments, or we credit a higher
interest rate or charge a lower cost of insurance rate than those guaranteed
for the General Account.
Except for transfers in connection with Dollar Cost Averaging, Automatic
Portfolio Rebalancing and loan
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repayments, we allow transfers out of the General Account to the Divisions
only once in every 180 days and limit their amount to the lesser of (a) 25%
of the Accumulation Value in the General Account not being held as loan
collateral, or (b) $100,000. Any other transfer rules, including minimum
transfer amounts, also apply. We reserve the right to modify these
restrictions.
We will not impose a transfer charge for a transfer of all Accumulation
Value in the Separate Account to the General Account. A transfer from the
General Account to the Divisions of the Separate Account will be subject to
the transfer charge unless it is one of the first 12 transfers in a Policy
Year and except for the transfer of any Net Premium payments received prior
to the Allocation Date, plus interest earned, from the General Account and
loan repayments.
We reserve the right to refuse or restrict transfers made by third-party
agents on behalf of Policyowner or pursuant to market timing services when
we determine that such transfers will be detrimental to the Portfolios,
Policyowner the Separate Account or you.
> TELEPHONE TRANSFERS, LOANS AND REALLOCATIONS
You, your authorized representative, or a member of his/her administrative
staff may request a transfer of Accumulation Value or reallocation of
premiums (including allocation changes relating to existing Dollar Cost
Averaging and Automatic Portfolio Rebalancing programs) either in writing or
by telephone. In order to make telephone transfers, you must complete a
written telephone transfer authorization form and return it to us at our
Home Office. All transfers must be in accordance with the terms of the
Policy. If the transfer instructions are not in good order, we will not
execute the transfer and you will be notified.
We may also permit loans to be made by telephone, provided that your
authorization form is on file with us. Only you may request loans by
telephone.
We will use reasonable procedures, such as requiring identifying information
from callers, recording telephone instructions, and providing written
confirmation of transactions, in order to confirm that telephone
instructions are genuine. Any telephone instructions which we reasonably
believe to be genuine will be your responsibility, including losses arising
from any errors in the communication of instructions. As a result of this
procedure, you will bear the risk of loss. If we do not use reasonable
procedures, as described above, we may be liable for losses due to
unauthorized instructions.
> AUTOMATED TRANSFERS (DOLLAR COST AVERAGING AND PORTFOLIO REBALANCING)
Dollar Cost Averaging describes a system of investing a uniform sum of money
at regular intervals over an extended period of time. Dollar Cost Averaging
is based on the economic fact that buying a security with a constant sum of
money at fixed intervals generally results in acquiring more of the item
when prices are low and less of it when prices are high.
You may establish automated transfers of a specific dollar amount (the
"Periodic Transfer Amount") on a monthly, quarterly or semi-annual basis
from the Money Market Division or the General Account to any other Portfolio
or to the General Account. You must have a minimum of $3,000 allocated to
either the Money Market Division or the General Account in order to enroll
in the Dollar Cost Averaging program. The minimum Periodic Transfer Amount
is $250. A minimum of 5% of the Periodic Transfer Amount must be transferred
to any specified Division. There is no additional charge for the program.
You may start or stop participation in the Dollar Cost Averaging program at
any time, but you must give us at least 30 days' notice to change any
automated transfer instructions that are currently in place. We reserve the
right to suspend or modify automated transfer privileges at any time.
You may elect an Automatic Portfolio Rebalancing feature which provides a
method for reestablishing fixed proportions between various types of
investments on a systematic basis. Under this feature, we will automatically
readjust the allocation between the Divisions and the General Account to the
desired allocation, subject to a minimum of 5% per Division or General
Account, on a quarterly, semi-annual or annual basis. There is no additional
charge for the program.
You may not elect Dollar Cost Averaging and Automatic Portfolio Rebalancing
at the same time. We will make transfers and adjustments pursuant to these
features on the Policy's Monthly Anniversary Date in the month when the
transaction is to take place, or the next succeeding business day if the
Monthly Anniversary Date falls on a holiday or weekend. We must have an
authorization form on file before either feature may begin. Transfers under
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these features are not subject to the transfer fee and do not count toward
the 12 free transfers or the 20 transfer maximum currently allowed per year.
Before participating in the Dollar Cost Averaging or Automatic Portfolio
Rebalancing programs, you should consider the risks involved in switching
between investments available under the Policy. Dollar Cost Averaging
requires regular investments regardless of fluctuating price levels, and
does not guarantee profits or prevent losses. Automatic Portfolio
Rebalancing is consistent with maintaining your allocation of investments
among market segments, although it is accomplished by reducing your
Accumulation Value allocated to the better performing segments. Therefore,
you should carefully consider market conditions and each Portfolio's
investment policies and related risks before electing to participate in the
Dollar Cost Averaging or Automatic Portfolio Rebalancing programs.
policy values
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> ACCUMULATION VALUE
The Accumulation Value of Your Policy is determined on a daily basis.
Accumulation Value is the sum of the values in the Divisions plus the value
in the General Account. We calculate Your Policy's Accumulation Value in the
Divisions by units and unit values under the Policies. Your Policy's
Accumulation Value will reflect the investment experience of the Divisions
investing in the Portfolios, any additional net premiums paid, any
withdrawals, any policy loans, and any charges assessed in connection with
the Policy. We do not guarantee Accumulation Values in the Separate Account
as to dollar amount.
On the Allocation Date, the Accumulation Value in the Separate Account (the
"Separate Account Value") equals the initial premium payments, less the
premium load and the State Premium Tax and Federal DAC Tax Charges, plus
interest earned prior to the Allocation Date, and less the Monthly Deduction
for the first policy month. We will establish the initial number of units
credited to the Separate Account for Your Policy on the Allocation Date. At
the end of each Valuation Period thereafter, the Accumulation Value in a
Division is
(i) the Accumulation Value in the Division on the preceding Valuation Date
multiplied by the net investment factor, described below, for the current
Valuation Period, plus
(ii) any Net Premium we receive during the current Valuation Period which is
allocated to the Division, plus
(iii) all Accumulation Value transferred to the Division from another
Division or the General Account during the current Valuation Period, minus
(iv) the Accumulation Value transferred from the Division to another
Division or the General Account and Accumulation Value transferred to secure
a Policy Debt during the current Valuation Period, minus
(v) all withdrawals from the Division during the current Valuation Period.
Whenever a Valuation Period includes the Monthly Anniversary Date, the
Separate Account Value at the end of such period is reduced by the portion
of the monthly deduction and increased by any Accumulation Value Adjustment
allocated to the Divisions.
We will calculate a guaranteed monthly Accumulation Value Adjustment at the
beginning of the second Policy Year and every Policy Year thereafter. The
adjustment will be allocated among the General Account and the Divisions in
the same proportion as premium payments. The adjustment is calculated as (i)
multiplied by the total of (ii) plus (iii) minus (iv), but not less than
zero, where:
(i) is the lesser of .0333% and the excess of the monthly mortality and
expense risk charge currently assessed over .01666% in Policy Years 2
through 25 and the lesser of .02083% and the excess of the monthly mortality
and expense risk charge currently assessed over .008333% in Policy Years 26
and thereafter;
(ii) is the amount allocated to the Divisions at the beginning of the Policy
Year;
(iii) is the Type B loan balance at the beginning of the Policy Year; and
(iv) is the Guideline Single Premium at issue under Section 7702 of the
Code, adjusted for any increases in Specified Amount.
See "Policy Loans" for a description of Type B loans.
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> UNIT VALUES
We credit Units to you upon allocation of Net Premiums to a Division. Each
Net Premium payment you allocate to a Division will increase the number of
units in that Division. We credit both full and fractional units. We
determine the number of units and fractional units by dividing the Net
Premium payment by the unit value of the Division to which you have
allocated the payment. We determine each Division's unit value on each
Valuation Date. The number of units credited to your Policy will not change
because of subsequent changes in unit value. The number is increased by
subsequent contributions or transfers allocated to a Division, and decreased
by charges and withdrawals from that Division. The dollar value of each
Division's units will vary depending on the investment performance of the
corresponding Portfolio, as well as any expenses charged directly to the
Separate Account.
The initial Unit Value of each Division's units was $10.00. Thereafter, the
Unit Value of a Division on any Valuation Date is calculated by multiplying
the Division's Unit Value on the previous Valuation Date by the Net
Investment Factor for the Valuation Period then ended.
> NET INVESTMENT FACTOR
The Net Investment Factor measures each Division's investment experience and
is used to determine changes in Unit Value from one Valuation Period to the
next. We calculate the Net Investment Factor by dividing (1) by (2) and
subtracting (3) from the result, where:
(1) is the sum of:
(a) the Net Asset Value of a Fund share held in the Separate Account for
that Division determined at the end of the current Valuation Period;
plus
(b) the per share amount of any dividend or capital gain distributions
made for shares held in the Separate Account for that Division if the
ex-dividend date occurs during the Valuation Period;
(2) is the Net Asset Value of a Fund share held in the Separate Account for
that Division determined as of the end of the preceding Valuation
Period; and
(3) is the daily charge representing the Mortality & Expense Risk Charge.
This charge is equal, on an annual basis, to a percentage of the average
daily Net Asset Value of Fund shares held in the Separate Account for
that Division.
Because the Net Investment Factor may be greater than, less than or equal to
1, values in a Division may increase or decrease from Valuation Period to
Valuation Period.
> GENERAL ACCOUNT VALUE
The General Account Value reflects amounts allocated to the General Account
through payment of premiums or transfers from the Separate Account, plus
interest credited to those amounts. Amounts allocated to the General
Account, and interest thereon, are guaranteed; however there is no assurance
that the Separate Account Value of the Policy will equal or exceed the Net
Premiums paid and allocated to the Separate Account.
> SURRENDER VALUE
The Surrender Value of the Policy is the amount you can receive in cash by
surrendering the Policy. The Surrender Value will equal (a) the Net
Accumulation Value on the date of surrender; plus (b) a Refund of Sales
Charges if the surrender takes place in the first two Policy Years.
policy rights
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> SURRENDERS
By Written Request, you may surrender the Policy for its Surrender Value at
any time while the Insured is alive. All insurance coverage under the Policy
will end on the date of the Surrender. All or part of the Surrender Value
may be applied to one or more of the Settlement Options described in this
Prospectus or in any manner to which we agree and that we make available.
(See Right to Defer Payment, Policy Settlement and Payment of Benefits)
> WITHDRAWALS
By Written Request, you may, at any time after the expiration of the Free
Look Period, make withdrawals from the Policy. A charge equal to the lesser
of $50 or 2% of the Withdrawal will be deducted from the amount of the
Accumulation Value which you withdraw.
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The minimum amount of any withdrawal after the charge is applied is $500.
The amount you withdraw cannot exceed the Net Accumulation Value.
Withdrawals will generally affect the Policy's Accumulation Value and the
life insurance proceeds payable under the Policy as follows.
o The Policy's Accumulation Value will be reduced by the amount of the
withdrawal plus the $50 charge;
o The Death Benefit will be reduced by an amount equal to the reduction in
Accumulation Value.
If the Death Benefit Option for the Policy is Option 1, a withdrawal will
reduce the Specified Amount. However, we will not allow a withdrawal if the
Specified Amount will be reduced below $50,000.
If the Death Benefit Option for the Policy is Option 2, a withdrawal will
reduce the Accumulation Value, usually resulting in a dollar-for-dollar
reduction in the Death Benefit.
If the Death Benefit Option for the Policy is Option 3, a Withdrawal will
result in a dollar-for-dollar reduction in the Death Benefit.
You may allocate a withdrawal among the Divisions and the General Account.
If you do not make such an allocation, we will allocate the withdrawal among
the Divisions and the General Account in the same proportion that the
Accumulation Value in each Division and the General Account Value, less any
Policy Debt, bears to the total Accumulation Value of the Policy, less any
Policy Debt. (See Right to Defer Payment, Policy Changes and Payment of
Benefits)
> GRACE PERIOD
Generally, on any Monthly Anniversary Date, if your Policy's Net
Accumulation Value is insufficient to satisfy the Monthly Deduction, we will
allow you 61 days of grace for payment of an amount sufficient to continue
coverage. We call this "lapse pending status".
Written notice will be mailed to your last known address, according to Our
records, not less than 61 days before termination of the Policy. This notice
will also be mailed to the last known address of any assignee of record.
The Policy will stay in force during the Grace Period. If the Insured dies
during the Grace Period, we will reduce the Death Benefit by the amount of
any Monthly Deduction due and the amount of any outstanding Policy Debt.
If payment is not made within 61 days after the Monthly Anniversary Day, the
Policy will terminate without value at the end of the Grace Period.
> REINSTATEMENT OF A LAPSED OR TERMINATED POLICY
If the Policy terminates as provided in its Grace Period provision, you may
reinstate it. To reinstate the Policy, the following conditions must be met:
o The Policy has not been fully surrendered.
o You must apply for reinstatement within 5 years after the date of
termination and before the Insured's Attained Age 100.
o We must receive evidence of insurability satisfactory to us.
o We must receive a premium payment sufficient to keep the Policy in force
for the current month plus two additional months.
o If a loan was outstanding at the time of lapse, we will require that
either you repay or reinstate the loan.
o Supplemental Benefits will be reinstated only with our consent. (See
Grace Period and Premium Payments)
> COVERAGE BEYOND INSURED'S ATTAINED AGE 100
At the Insured's Attained Age 100, we will make several changes to your
Policy. At that point and thereafter, the Specified Amount will equal the
current Accumulation Value. The Death Benefit will be set to Option 1 and
will equal 101% of the Specified Amount less Policy Debt. We will no longer
deduct any Cost of Insurance charges or monthly Administrative Charges, the
Monthly Accumulation Value Adjustment will cease and no new premiums will be
accepted.
> RIGHT TO DEFER PAYMENT
Payments of any Separate Account Value will be made within 7 days after our
receipt of your Written Request. However, we reserve the right to suspend or
postpone the date of any payment of any benefit or values for any Valuation
Period (1) when the New York Stock Exchange is closed (except holidays or
weekends); (2) when trading on the Exchange is restricted; (3) when an
emergency exists as determined by the SEC so that disposal of the securities
held in the Funds is not reasonably
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practicable or it is not reasonably practicable to determine the value of
the Funds' net assets; or (4) during any other period when the SEC, by
order, so permits for the protection of security holders. For payment from
the Separate Account in such instances, we may defer payment of Full
Surrender and Withdrawal Values, any Death Benefit in excess of the current
Specified Amount, transfers and any portion of the Loan Value.
Payment of any General Account Value may be deferred for up to six months,
except when used to pay amounts due us.
> POLICY LOANS
We will grant loans at any time after the expiration of the Right of Policy
Examination. The amount of the loan will not be more than the Loan Value.
Unless otherwise required by state law, the Loan Value for this Policy is
100% of Net Accumulation Value at the end of the Valuation Period during
which the loan request is received.
We will usually disburse loan proceeds within seven days from the Date of
Receipt of a loan request, although we reserve the right to postpone
payments under certain circumstances. See "OTHER MATTERS--Postponement of
Payments". We may, in our sole discretion, allow you to make loans by
telephone if you have filed a proper telephone authorization form with us.
So long as your Policy is in force and the Insured is living, you may repay
your loan in whole or in part at any time without penalty.
Accumulation Value equal to the loan amount will be maintained in the
General Account to secure the loan. You may allocate a policy loan among the
Divisions of the Separate Account and the existing General Account value
that is not already allocated to secure a Policy Loan, and we will transfer
Separate Account Value as you have indicated. If you do not make this
allocation, the loan will be allocated among the Divisions and the General
Account in the same proportion that the Accumulation Value in each Division
and the Accumulation Value in the General Account less Policy Debt bears to
the total Accumulation Value of the Policy, less Policy Debt, on the date of
the loan. We will make a similar allocation for unpaid loan interest due. A
policy loan removes Accumulation Value from the investment experience of the
Separate Account, which will have a permanent effect on the Accumulation
Value and Death Benefit even if the loan is repaid. General Account Value
equal to Policy Debt will accrue interest daily at an annual rate of 4%.
We will charge interest on any outstanding Policy Debt with the interest
compounded annually. There are two types of loans available. A Type A loan
is charged the same interest rate as the interest credited to the amount of
the Accumulation Value held in the General Account to secure loans, which is
an effective annual rate of 4%. The amount available at any time for a Type
A loan is the maximum loan amount, less the Guideline Single Premium at
issue, adjusted on a pro rata basis for increases in Specified Amount, as
set forth in the Code, less any outstanding Type A loans. Any other loans
are Type B loans. A Type B loan is charged an effective annual interest rate
of 5%. One loan request can result in both a Type A and a Type B loan. A
loan request will first be granted as a Type A loan, to the extent
available, and then as a Type B loan. All loans become Type A loans at
attained age 100. Otherwise, once a loan is granted, it remains a Type A or
Type B loan until it is repaid. Interest is due and payable at the end of
each Policy Year and any unpaid interest due becomes loan principal.
If Policy Debt exceeds Accumulation Value, we will notify you and any
assignee of record. You must make a payment within 61 days from the date
Policy Debt exceeds Accumulation Value or the Policy will lapse and
terminate without value (See "Grace Period"). If this happens, you may be
taxed on the total appreciation under the Policy. However, you may reinstate
the Policy, subject to proof of insurability and payment of a reinstatement
premium. See "Reinstatement of a Lapsed Policy".
You may repay the Policy Debt, in whole or in part, at any time during the
Insured's life, so long as the Policy is in force. The amount necessary to
repay all Policy Debt in full will include any accrued interest. If there is
any Policy Debt, we will apply payments received from you as follows: we
will apply payments as premium in the amount of the Planned Periodic
Premium, received at the Premium Frequency, unless you specifically
designate the payment as a loan repayment. We will apply payments in excess
of the Planned Periodic Premium or payments received other than at the
Premium Frequency, first as policy loan repayments, then as premium when you
have repaid the Policy Debt.
If you have both a Type A and a Type B loan, we will apply repayments first
to the Type B loan and
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then to the Type A loan. Upon repayment of all or part of the Policy Debt,
we will transfer the Policy's Accumulation Value securing the repaid portion
of the debt in the General Account to the Divisions and the General Account
in the same proportion in which the loan was taken.
An outstanding loan amount will decrease the Surrender Value available under
the Policy. If a loan is not repaid, the decrease in the Surrender Value
could cause the Policy to lapse. In addition, the Death Benefit will be
decreased because of an outstanding Policy Loan. Furthermore, even if you
repay the loan, the amount of the Death Benefit and the Policy's Surrender
Value may be permanently affected since the Loan Value is not credited with
the investment experience of the Funds.
> POLICY CHANGES
You may make changes to your Policy, as described below, by submitting a
Written Request to our Home Office. Supplemental Policy Specification pages
and/or a notice confirming the change will be sent to you once the change is
completed.
Increase or Decrease in Specified Amount
You may increase the Specified Amount of this Policy after the 1st Policy
Year, so long as you are under attained age 86 and you send us a written
request and the Policy to Our home office. However:
o Any increase must be at least $25,000 for a fully underwritten issue and
$5,000 for a simplified or guaranteed issue
o Any decrease must be at least $25,000
o Any increase or decrease will affect your cost of insurance charge
o Any increase or decrease may affect the monthly Accumulation Value
Adjustment
o We may require evidence of insurability for an increase
o Any increase will affect the amount available for a Type A loan, but a
decrease will not have any such effect
o Any increase will be effective on the Monthly Anniversary Date after the
Date of Receipt of the request
o We will assess a charge against the Accumulation Value on the Monthly
Anniversary Date that an increase takes effect. This charge is an amount
per $1000 of increase in Specified Amount, which varies by sex, attained
age, and rating class of the Insured at the time of the increase
o Any increase will result in a new Acquisition Charge for the 120 months
following the increase;
o Any decrease may result in federal tax implications (See "Federal Tax
Matters")
o No decrease may decrease the Specified Amount below $25,000.
o Any decrease will first apply to coverage provided by the most recent
increase, then to the next most recent, and so on, and finally to the
coverage under the original application
o We will allow increases in Specified Amount at any time, so long as the
Policy is issued as a 1035 exchange and the increase is needed to avoid
the Policy becoming a modified endowment contract because of additional
1035 exchange money we receive after the policy is issued
Change in Death Benefit Option
Any change in the Death Benefit Option is subject to the following
conditions:
o The change will take effect on the Monthly Anniversary Date on or next
following the date on which your Written Request is received.
o Evidence of insurability may be required if the change would result in
an increase in the difference between the Death Benefit and the
Accumulation Value.
o If you change from Option 1 to Option 2 the Specified Amount will be
decreased by the Accumulation Value.
o If you change from Option 2 to Option 1, the Specified Amount will be
increased by the Accumulation Value.
o If you change from Option 3 to Option 1, the Specified Amount will be
increased by the total premiums paid less any withdrawals.
o If you change from Option 3 to Option 2, the Specified Amount will be
increased by the total premiums paid less any withdrawals, and decreased
by the Accumulation Value.
o Changes from Option 1 to 2 or from Option 3 to Option 1 or 2 will be
allowed at any time while this Policy is in force, We will not require
evidence of insurability for this change, so long as the Specified
Amount is adjusted to make the difference between the Death Benefit and
the Accumulation Value after the change in Death Benefit Option the same
as it was before the change.
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If the change decreases the Specified Amount below the minimum of $25,000,
we will increase the Specified Amount to $25,000.
Changes from Option 2 to 1 will be allowed at any time while this Policy is
in force. The new Specified Amount will be increased to equal the Specified
Amount plus the Accumulation Value as of the date of the change. (See
Surrender Charge and Right of Policy Examination) Changes to Option 3 are
not allowed.
> RIGHT OF POLICY EXAMINATION ("FREE LOOK PERIOD")
The Policy has a free look period during which you may examine the Policy.
If for any reason you are dissatisfied, you may return the Policy to us at
our Service Office or to our representative within 10 days of delivery of
the Policy to you (or within a different period if required by State law).
Return the Policy to Jefferson Pilot Financial Insurance Company at One
Granite Place, Concord, New Hampshire 03301. Upon its return, the Policy
will be deemed void from its beginning. We will return to you within seven
days all payments we received on the Policy. Prior to the Allocation Date,
we will hold the initial Net Premium, and any other premiums we receive, in
our General Account. We will retain any interest earned if the Free Look
right is exercised, unless otherwise required by State law.
> SUPPLEMENTAL BENEFITS
The supplemental benefits currently available as riders to the Policy
include the following:
o Accelerated Benefit Rider--pays a portion of the Death Benefit upon
occurrence of critical or terminal illness or nursing home confinement,
subject to the terms of the rider.
o Accidental Death Benefit Rider--provides a benefit in the event of
accidental death, subject to the terms of the rider.
o Automatic Increase Rider--allows for scheduled annual increases in
Specified Amount, subject to the terms of the rider.
o Children's Term Insurance Rider--provides increments of level term
insurance on the Insured's children, subject to the terms of the rider.
o Death Benefit Maintenance Rider--provides a death benefit beyond the
Insured's age 100, subject to the terms of the rider.
o Disability Waiver of Deductions--waives monthly deductions in the event
of disability before age 65, subject to the terms of the rider.
o Disability Waiver of Specified Premium-- deposits a specified premium
monthly into the Policy if the Insured is disabled before age 65,
subject to the terms of the rider.
o Guaranteed Death Benefit Rider--guarantees that the Policy will stay in
force during the guarantee period with a Death Benefit equal to the
Specified Amount, subject to the terms of the rider.
o Guaranteed Insurability Rider--provides that the Insured can purchase
additional insurance at certain future dates without evidence of
insurability, subject to the terms of the rider.
o Spouse Term Rider--provides coverage on the spouse of the insured,
subject to the terms of the rider.
o Supplemental Coverage Rider--provides additional coverage to the Policy,
subject to the terms of the rider.
These riders may not be available in all states. All riders are available in
Policies issued on an individual basis. For Policies issued on a simplified
issue or guaranteed issue basis, only the Supplementary Coverage Rider, the
Death Benefit Maintenance Rider and the Guaranteed Death Benefit Rider are
available.
Other riders for supplemental benefits may become available under the Policy
from time to time. The charges for each of these riders are described in
Your Policy.
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death benefit
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The Death Benefit under the Policy will be paid in a lump sum unless you or
the beneficiary have elected that they be paid under one or more of the
available Settlement Options.
Payment of the Death Benefit may be delayed if the Policy is being
contested. You may elect a Settlement Option for the beneficiary and deem it
irrevocable. You may revoke or change a prior election. The beneficiary may
make or change an election within 90 days of the Death of the Insured,
unless you have made an irrevocable election.
All or part of the Death Benefit may be applied under one of the Settlement
Options, or such options as we may choose to make available in the future.
If the Policy is assigned as collateral security, we will pay any amount due
the assignee in a lump sum. Any excess Death Benefit due will be paid as
elected.
(See "Right to Defer Payment" and "Policy Settlement")
policy settlement
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We will pay proceeds in whole or in part in the form of a lump sum or the
Settlement Options available under the Policy upon the death of the Insured
or upon Surrender.
A Written Request may be made to elect, change or revoke a Settlement Option
before payments begin under any Settlement Option. This request will take
effect upon its filing at our Home Office. If you have not elected a
Settlement Option when the
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Death Benefit becomes payable to the beneficiary, that beneficiary may make
the election.
> SETTLEMENT OPTIONS
The following Settlement Options are available under the Policy:
Option A--Installments of a specified amount. Payments of an agreed amount
to be made monthly until the proceeds and interest are exhausted.
Option B--Installments for a specified period. Payments to be made monthly
for an agreed number of years.
Option C--Life Income. Payments to be made each month for the lifetime of
the payee. We guarantee that payments will be made for a minimum of 10, 15
or 20 years, as agreed upon.
Option D--Interest. We will pay interest on the proceeds we hold, calculated
at the compound rate of 3% per year. We will make interest payments at 12,
6, 3 or 1 month intervals.
Option E--Interest: Retained Asset Account (Performance Plus Account). We
will pay interest on the proceeds we hold, based on the floating 13-week
U.S. Treasury Bill rate fixed quarterly. The payee can write checks against
such account at any time and in any amount up to the total in the account.
The checks must be for a minimum of $250.
The interest rate for Options A, B and D will not be less than 3% per year.
The interest rate for Option C will not be less than 2.5% per year. The
interest rate for Option E will not be less than 2% per year.
Unless otherwise stated in the election of any option, the payee of the
policy benefits shall have the right to receive the withdrawal value under
that option. For Options A, D and E, the withdrawal value shall be any
unpaid balance of proceeds plus accrued interest. For Option B, the
withdrawal value shall be the commuted value of the remaining payments. We
will calculate this withdrawal value on the same basis as the original
payments. For Option C, the withdrawal value will be the commuted value of
any remaining guaranteed payments. If the payee is alive at the end of the
guarantee period, we will resume the payment on that date. The payment will
then continue for the lifetime of the payee.
If the payee of policy benefits dies before the proceeds are exhausted or
the prescribed payments made, a final payment will be made in one sum to the
estate of the last surviving payee. The amount to be paid will be calculated
as described for the applicable option in the Withdrawal Value provision of
the Policy.
At least $25,000 of Policy proceeds must be applied to each settlement
option chosen. We reserve the right to change payment intervals to increase
payments to $250 each.
Calculation of Settlement Option Values
The value of the Settlement Options will be calculated as set forth in the
Policy.
24
<PAGE>
the company
----------------------------------------------------------------------------
Jefferson Pilot Financial Insurance Company ("JP Financial" or "the
Company") is a stock life insurance company chartered in 1903 in Tennessee,
redomesticated to New Hampshire in 1991 and redomesticated to Nebraska
effective June 12, 2000. Prior to May 1, 1998, JP Financial was known as
Chubb Life Insurance Company of America. In April 30, 1997, Chubb Life,
formerly a wholly-owned subsidiary of The Chubb Corporation, became a
wholly-owned subsidiary of Jefferson-Pilot Corporation, a North Carolina
corporation. The principal offices of Jefferson-Pilot Corporation are
located at 100 North Greene Street, Greensboro, North Carolina 27401; its
telephone number is 336-691-3000. Chubb Life changed its name to Jefferson
Pilot Financial Insurance Company effective May 1, 1998. JP Financial's
service center is located at One Granite Place, Concord, New Hampshire
03301; its telephone number is 800-258-3648.
We are licensed to do life insurance business in forty-nine states of the
United States, the District of Columbia, Puerto Rico, the U.S. Virgin
Islands, Guam and the Commonwealth of the Northern Mariana Islands.
At December 31, 1999 the Company and its subsidiaries had total assets of
approximately $6.2 billion and had $68 billion of insurance in force, while
total assets of Jefferson-Pilot Corporation and its subsidiaries (including
the Company) were approximately $26.4 billion.
We write individual life insurance and annuities. It is subject to Nebraska
law governing insurance.
Effective August 1, 2000, Alexander Hamilton Life and Guarantee Life
Insurance Company ("GLIC") merged with and into the Company, with the
Company as the surviving entity. Both Alexander Hamilton Life and GLIC were
affiliates of the Company. Alexander Hamilton Life was a stock life company
initially organized under the laws of the State of North Carolina in 1981,
and reincorporated in the State of Michigan in September 1995. GLIC was a
stock life insurance company incorporated under the laws of the state of
Nebraska. GLIC originally was organized in 1901 as a mutual assessment
association and, after a period as a mutual life insurance company, became a
stock life insurance company on December 26, 1995.
Upon the merger, the existence of Alexander Hamilton Life and GLIC ceased,
and the Company became the surviving company. GLIC did not have any separate
accounts or insurance contracts registered with the SEC. All of the
Contracts issued by Alexander Hamilton Life before the merger were, at the
time of the merger, assumed by the Company. The merger did not affect any
provisions of, or rights or obligations under, those Contracts.
In approving the merger on July 14, 2000, the boards of directors of the
Company, Alexander Hamilton Life, and GLIC determined that the merger of
three financially strong stock life insurance companies would result in an
overall enhanced capital position and reduced expenses, which, together,
would be in the long-term interests of their respective contract owners. On
July 14, 2000, the 100% stockholders of the Company, Alexander Hamilton Life
and GLIC voted to approve the merger. In addition, the Nebraska Department
of Insurance has approved the merger.
We are currently rated AAA (Superior) by Duff & Phelps, AAA (Superior) by
Standard & Poor's Corporation and A+ (Superior) by A.M. Best and Company.
These ratings do not apply to JPF Separate Account A, but reflect the
opinion of the rating companies as to our relative financial strength and
ability to meet its contractual obligations to its policyowners.
25
<PAGE>
directors and officers
----------------------------------------------------------------------------
MANAGEMENT OF JP FINANCIAL
Executive Officers and Directors of JP Financial
Directors
<TABLE>
<CAPTION>
Principal Occupation and
Name Business Address
-------------------------------------------------------------------------------------------
<S> <C>
Robert D. Bates .............. Executive Director
8801 Indian Hills Drive
Omaha, Nebraska 68114
Dennis R. Glass .............. Executive Vice President
(also serves as Executive Vice President, Chief Financial
Officer of Jefferson-Pilot Corporation and Jefferson-Pilot
Life Insurance Company)
100 North Greene Street
Greensboro, North Carolina 27401
Kenneth C. Mlekush ........... President
(also serves as Executive Vice President of Jefferson-Pilot
Life Insurance Company)
100 North Greene Street
Greensboro, North Carolina 27401
David A. Stonecipher ......... Chairman and Chief Executive Officer
(also serves as President and Chief Executive Officer of
Jefferson-Pilot Life Insurance Company)
100 North Greene Street
Greensboro, North Carolina 27401
</TABLE>
Executive Officers (Other Than Directors)
<TABLE>
<CAPTION>
Name Position
---- --------
<S> <C>
Charles C. Cornelio .............. Executive Vice President
Leslie L. Durland ................ Executive Vice President
John D. Hopkins .................. Executive Vice President, General Counsel
John C. Ingram ................... Executive Vice President
Reggie D. Adamson ................ Senior Vice President
Ronald R. Angarella .............. Senior Vice President
Charles P. Elam II ............... Senior Vice President, Annuity Actuary
Bruce G. Parker, Jr. ............. Senior Vice President
Hal B. Phillips, Jr. ............. Senior Vice President, Chief Life Actuary
Hoyt J. Phillips ................. Senior Vice President
Richard T. Stange ................ Senior Vice President, Deputy General Counsel
James R. Abernathy ............... Vice President
George Bentham ................... Vice President
David K. Booth ................... Vice President
H. Lusby Brown ................... Vice President
Margaret O. Cain ................. Vice President
John A. Cindia ................... Vice President
Rebecca M. Clark ................. Vice President
Richard C. Dielensnyder .......... Vice President
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
Name Position
---- --------
<S> <C>
Kenneth S. Dwyer ................... Vice President
Peter N. Ellinwood ................. Vice President
Ronald H. Emery .................... Vice President
Randal J. Freitag .................. Vice President
Carol. A. Hardiman ................. Vice President
James A. Hoffman, II ............... Vice President and Associate General Counsel
Donald M. Kane ..................... Vice President
Patrick A. Lang .................... Vice President
Shari J. Lease ..................... Vice President
James. E. MacDonald, Jr. ........... Vice President
Marvin L. Maynard .................. Vice President
Donna L. Metcalf ................... Vice President
W. Hardee Mills, Jr. ............... Vice President
Thomas E. Murphy, Jr. M.D. ......... Vice President and Medical Director
Robert A. Reed ..................... Vice President, Secretary
James M. Sandelli .................. Vice President
Russell C. Simpson ................. Vice President and Treasurer
Francis A. Sutherland, Jr. ......... Vice President
John A. Thomas ..................... Vice President
John A. Weston ..................... Vice President
Robert H. Whalen ................... Vice President
</TABLE>
The officers and employees of JP Financial who have access to the assets of
Separate Account A are covered by a fidelity bond issued by American
International Group in the amount of $20,000,000.
additional information
----------------------------------------------------------------------------
> REPORTS TO POLICYOWNERS
We will maintain all records relating to the Separate Account. At least once
in each Policy Year, we will send you an Annual Summary containing the
following information:
1. A statement of the current Accumulation Value and Surrender Value since
the prior report or since the Issue Date, if there has been no prior report;
2. A statement of all premiums paid and all charges incurred;
3. The balance of outstanding Policy Loans for the previous calendar year;
4. Any reports required by the 1940 Act.
We will promptly mail confirmation notices at the time of the following
transactions:
1. policy issue;
2. receipt of premium payments;
3. initial allocation among Divisions on the Allocation Date;
4. transfers among Divisions;
5. change of premium allocation;
6. change between Death Benefit Options;
7. increases or decreases in Specified Amount;
8. withdrawals, surrenders or loans;
9. receipt of loan repayments;
10. reinstatements; and
11. redemptions due to insufficient funds.
> RIGHT TO INSTRUCT VOTING OF FUND SHARES
In accordance with our view of present applicable law, we will vote the
shares of the Funds held in the Separate Account in accordance with
instructions received from Policyowners having a voting interest in the
Funds. Policyowners having such an interest will receive periodic reports
relating to the Fund, proxy material and a form for giving voting
instructions. The number of shares you have a right to vote will be
determined as of a record date established
27
<PAGE>
by the Fund. The number of votes that you are entitled to direct with
respect to a Fund will be determined by dividing your Policy's Accumulation
Value in a Division by the net asset value per share of the corresponding
Portfolio in which the Division invests. We will solicit your voting
instructions by mail at least 14 days before any shareholders meeting.
We will cast the votes at meetings of the shareholders of the Fund and our
votes will be based on instructions received from Policyowners. However, if
the Investment Company Act of 1940 or any regulations thereunder should be
amended or if the present interpretation should change, and as a result we
determine that we are permitted to vote the shares of the Fund in our right,
we may elect to do so.
We will vote Fund shares for which we do not receive timely instructions and
Fund shares which are not otherwise attributable to Policyowners in the same
proportion as the voting instruction which we receive for all Policies
participating in each Fund through the Separate Account.
> DISREGARD OF VOTING INSTRUCTIONS
When required by state insurance regulatory authorities, we may disregard
voting instructions if the instructions require that the shares be voted so
as to cause a change in the sub-classification or investment objectives of a
Fund or to approve or disapprove an investment advisory contract for a Fund.
We may also disregard voting instructions initiated by a Policyowner in
favor of changes in the investment policy or the investment adviser of the
Fund if we reasonably disapprove of such changes.
We only disapprove a change if the proposed change is contrary to state law
or prohibited by state regulatory authorities or if we determine that the
change would have an adverse effect on the Separate Account if the proposed
investment policy for a fund would result in overly speculative or unsound
investments. In the event that we do disregard voting instructions, a
summary of that action and the reasons for such action will be included in
the next annual report to Policyowners.
> STATE REGULATION
The Policy will be offered for sale in all jurisdictions where we are
authorized to do business and where the Policy has been approved by the
appropriate Insurance Department or regulatory authorities.
> LEGAL MATTERS
We know of no pending material legal proceedings pending to which either the
Separate Account or the Company is a party or which would materially affect
the Separate Account. The legal validity of the securities described in the
prospectus has been passed on by our Counsel. The law firm of Jorden Burt
Boros Cicchetti Berenson & Johnson, 1025 Thomas Jefferson Street, Suite 400,
East Lobby, Washington, DC 20007-5201, serves as our Special Counsel with
regard to the federal securities laws.
> THE REGISTRATION STATEMENT
We have filed a Registration Statement under the Securities Act of 1933
relating to the offering described in this Prospectus. This Prospectus does
not include all of the information set forth in the Registration Statement,
certain portions of which have been omitted pursuant to SEC rules and
regulations. You should refer to the instrument as filed to obtain any
omitted information.
> EMPLOYMENT BENEFIT PLANS
Employers and employee organizations should consider, in connection with
counsel, the impact of Title VII of the Civil Rights Act of 1964 on the
purchase of policy in connection with an employment-related insurance or
benefit plan. The U.S. Supreme Court held, in a 1983 decision, that, under
Title VII, optional annuity benefits under a deferred compensation plan
could not vary on the basis of sex.
> DISTRIBUTION OF THE POLICY
Jefferson Pilot Variable Corporation (JPVC), a North Carolina Corporation
incorporated on January 13, 1970, will serve as principal underwriter of the
securities offered under the Policy as defined by the federal securities
laws. The Policy will be sold by individuals who, in addition to being
licensed as
28
<PAGE>
life insurance agents for us, are also registered representatives of
broker-dealers who have entered into written sales agreements with JPVC. Any
such broker-dealers will be registered with the SEC and will be members of
the National Association of Securities Dealers, Inc. We may also offer and
sell policies directly.
We will pay commissions under various schedules and accordingly commissions
will vary with the form of schedule selected. In any event, commissions to
registered representatives are not expected to exceed the following: 35% of
first year target premium and 10% of first year excess premium; 20% of
second through fifth year target premium and 6% of excess premium; and 3% of
sixth through tenth year premium for target and excess. Compensation
arrangements vary among broker-dealers. Override payments, expense
allowances and bonuses based on specific production levels may be paid.
Alternative Commission Schedules will reflect differences in up-front
commissions versus ongoing compensation. Except as previously described in
this prospectus, no separate deductions from premiums are made to pay sales
commissions or sales expenses.
> INDEPENDENT AUDITORS
Ernst & Young, LLP, 200 Clarendon Street, Boston, Massachusetts are the
independent auditors for the Separate Account and Ernst & Young, LLP, 300
North Greene Street, Greensboro, North Carolina, are the independent
auditors for the Company. The services provided to the Separate Account
include primarily the audits of the Separate Account's financial statements.
group or sponsored arrangements
----------------------------------------------------------------------------
Policies may be purchased under group or sponsored arrangements. A group
arrangement includes a program under which a trustee, employer or similar
entity purchases individual Policies covering a group of individuals on a
group basis. A sponsored arrangement includes a program under which an
employer permits group solicitation of its employees or an association
permits group solicitation of its members for the purchase of Policies on an
individual basis.
We may modify the following types of charges for Policies issued in
connection with group or sponsored arrangement: the cost of insurance
charge, surrender or withdrawal charges, administrative charges, charges for
withdrawal or transfer and charges for optional rider benefits. We may also
issue Policies in connection with group or sponsored arrangements on a
"non-medical" or guaranteed issue basis; actual monthly cost of insurance
charges may be higher than the current cost of insurance charges under
otherwise identical Policies that are medically underwritten. We may also
specify different minimum Specified Amounts at issue for Policies issued in
connection with group or sponsored arrangements.
We may also modify or eliminate certain charges or underwriting requirements
for Policies issued in connection with an exchange of another JP Financial
policy or a policy of any JP Financial affiliate.
The amounts of any reduction, the charges to be reduced, the elimination or
modification of underwriting requirements and the criteria for applying a
reduction or modification will generally reflect the reduced sales and
administrative effort, costs and differing mortality experience appropriate
to the circumstances giving rise to the reduction or modification.
Reductions and modifications will not be made where prohibited by law and
will not be unfairly discriminatory.
tax matters
----------------------------------------------------------------------------
> GENERAL
Following is a discussion of the federal income tax considerations relating
to the Policy. This discussion is based on our understanding of federal
income tax laws as they now exist and are currently interpreted by the
Internal Revenue Service. These laws are complex and tax results may vary
among individuals. Anyone contemplating the purchase of or the exercise of
elections under the Policy should seek competent tax advice.
29
<PAGE>
> FEDERAL TAX STATUS OF THE COMPANY
We are taxed as a life insurance company in accordance with the Internal
Revenue Code of 1986 as amended ("Code"). For federal income tax purposes,
the operations of each Separate Account form a part of our total operations
and are not taxed separately, although operations of each Separate Account
are treated separately for accounting and financial statement purposes.
Both investment income and realized capital gains of the Separate Account
are reinvested without tax since the Code does not impose a tax on the
Separate Account for these amounts. However, we reserve the right to make a
deduction for such tax should it be imposed in the future.
> LIFE INSURANCE QUALIFICATION
The Policy contains provisions not found in traditional life insurance
policies. However, we believe that it should qualify under the Code as a
life insurance contract for federal income tax purposes, with the result
that all Death Benefits paid under the Policy will generally be excludable
from the gross income of the Policy's Beneficiary.
Section 7702 of the Code includes a definition of life insurance for tax
purposes. The definition provides limitations on the relationship between
the death benefit and the account value. If necessary, we will increase your
death benefit to maintain compliance with Section 7702.
The Policy is intended to qualify as life insurance under the Code. The
Death Benefit provided by the Policy is intended to qualify for the federal
income tax exclusion. If at any time the premium paid under the Policy
exceeds the amount allowable for such qualification, we will refund the
premium to you with interest within 60 days after the end of the Policy Year
in which the premium was received. If, for any reason, we do not refund the
excess premium within such 60-day period, the excess premium will be held in
a separate deposit fund and credited with interest until refunded to you.
The interest rate used on any refund, or credited to the separate deposit
fund created by this provision will be the excess premiums. We may notify
you of other options available to you to keep your policy in compliance. You
may also choose to have the Policy become a modified endowment contract.
A modified endowment contract is a life insurance policy which fails to meet
a "seven-pay" test. In general, a policy will fail the seven-pay test if the
cumulative amount of premiums paid under the policy at any time during the
first seven policy years exceeds a calculated premium level. The calculated
seven-pay premium level is based on a hypothetical policy issued on the same
insured and for the same initial death benefit which, under specified
conditions (which include the absence of expense and administrative
charges), would be fully paid for after seven years. Your policy will be
treated as a modified endowment unless the cumulative premiums paid under
your policy, at all times during the first seven policy years, are less than
or equal to the cumulative seven-pay premiums which would have been paid
under the hypothetical policy on or before such times.
Whenever there is a "material change" under a Policy, it will generally be
treated as a new contract for purposes of determining whether the Policy is
a modified endowment contract, and subject to a new seven-pay premium period
and a new seven-pay limit. The new seven-pay limit would be determined
taking into account, under a prospective adjustment formula, the Policy
Account Value of the policy at the time of such change. A materially changed
Policy would be considered a modified endowment if it failed to satisfy the
new seven-pay limit. A material change could occur as a result of a change
in death benefit option, the selection of additional benefits, the
restoration of a terminated policy and certain other changes.
If the benefits under your Policy are reduced, for example, by requesting a
decrease in Face Amount, or in some cases by making partial withdrawals,
terminating additional benefits under a rider, changing the death benefit
option, or as a result of policy termination, the calculated seven-pay
premium level will be redetermined based on the reduced level of benefits
and applied retroactively for purposes of the seven-pay test. If the
premiums previously paid are greater than the recalculated seven-pay premium
level limit, the policy will become a modified endowment unless you request
a refund of the excess premium, as outlined above. Generally, a life
insurance policy which is received in exchange for a modified endowment or a
modified endowment which terminates and is restored, will also be considered
a modified endowment.
If a Policy is deemed to be a modified endowment contract, any distribution
from the Policy will be
30
<PAGE>
taxed in a manner comparable to distributions from annuities (i.e., on an
"income first) basis); distributions for this purpose include a loan,
pledge, assignment or partial withdrawal. Any such distributions will be
considered taxable income to the extent Accumulation Value under the Policy
exceeds investment in the Policy.
A 10% penalty tax will apply to the taxable portion of such a distribution.
No penalty will apply to distributions (i) to taxpayers 59 1/2 years of age
or older, (ii) in the case of a disability which can be expected to result
in death or to be of indefinite duration or (iii) received as part of a
series of substantially equal periodic payments for the life (or life
expectancy) of the taxpayer or the joint lives (or joint life expectancies)
of the taxpayer and his beneficiary.
To the extent a Policy becomes a modified endowment contract, any
distribution, as defined above, which occurs in the policy year it becomes a
modified endowment contract and in any year thereafter, will be taxable
income to you. Also, any distributions within two years before a Policy
becomes a modified endowment contract will also be income taxable to you to
the extent that accumulation value exceeds investment in the Policy, as
described above. The Secretary of the Treasury has been authorized to
prescribe rules which would similarly treat other distributions made in
anticipation of a policy becoming a modified endowment contract. For
purposes of determining the amount of any distribution includible in income,
all modified endowment contracts that fail the above-described tests which
are issued by the same insurer, or its affiliates, to the same policyowner
during any calendar year are treated as one contract.
If the Insured reaches age 100, the Death Benefit will be set at 101% of the
Accumulation Value of the Policy. We believe the Policy will continue to
qualify as life insurance under the Code, however, there is some uncertainty
regarding this treatment. It is possible, therefore, that you would be
viewed as constructively receiving the Surrender Value in the year in which
the Insured attains age 100 and would realize taxable income at that time,
even if the Policy proceeds were not distributed at that time.
The foregoing summary does not purport to be complete or to cover all
situations, and, as always, there is some degree of uncertainty with respect
to the application of the current tax laws. In addition to the provisions
discussed above, Congress may consider other legislation which, if enacted,
could adversely affect the tax treatment of life insurance policies. Also,
the Treasury Department may amend current regulations or adopt new
regulations with respect to this and other Code provisions. Therefore, you
are advised to consult a tax adviser for more complete tax information,
specifically regarding the applicability of the Code provisions to your
situation.
Under normal circumstances, if the Policy is not a modified endowment
contract, loans received under the Policy will be construed as your
indebtedness. You are advised to consult a tax adviser or attorney regarding
the deduction of interest paid on loans.
Even if the Policy is not a modified endowment contract, a partial
withdrawal together with a reduction in death benefits during the first 15
Policy Years may create taxable income for you. The amount of that taxable
income is determined under a complex formula and it may be equal to part or
all of, but not greater than, the income on the contract. A partial
withdrawal made after the first 15 Policy Years will be taxed on a recovery
of premium-first basis, and will only be subject to federal income tax to
the extent such proceeds exceed the total amount of premiums you have paid
that have not been previously withdrawn.
If you make a partial withdrawal, surrender, loan or exchange of the Policy,
we may be required to withhold federal income tax from the portion of the
money you receive that is includible in your federal gross income. A
Policyowner who is not a corporation may elect not to have such tax
withheld; however, such election must be made before we make the payment. In
addition, if you fail to provide us with a correct taxpayer identification
number (usually a social security number) or if the Treasury notifies Us
that the taxpayer identification number which has been provided is not
correct, the election not to have such taxes withheld will not be effective.
In any case, you are liable for payment of the federal income tax on the
taxable portion of money received, whether or not an election to have
federal income tax withheld is made. If you elect not to have federal income
tax withheld, or if the amount withheld is insufficient, then you may be
responsible for payment of estimated tax. You may also incur penalties under
the estimated tax rules if the withholding and estimated tax payments are
31
<PAGE>
insufficient. We suggest that you consult with a tax adviser as to the tax
implications of these matters.
In the event that a Policy is owned by the trustee under a pension or profit
sharing plan, or similar deferred compensation arrangement, tax consequences
of ownership or receipt of proceeds under the Policy could differ from those
stated herein. However, if ownership of such a Policy is transferred from
the plan to a plan participant (upon termination of employment, for
example), the Policy will be subject to all of the federal tax rules
described above. A Policy owned by a trustee under such a plan may be
subject to restrictions under ERISA and a tax adviser should be consulted
regarding any applicable ERISA requirements.
The Policy may also be used in various arrangements, including nonqualified
deferred compensation or salary continuation plans, split dollar insurance
plans, executive bonus plans and others, where the tax consequences may vary
depending on the particular facts and circumstances of each individual
arrangement. A tax adviser should be consulted regarding the tax attributes
of any particular arrangement where the value of it depends in part on its
tax consequences.
Federal estate and local estate, inheritance and other tax consequences of
ownership or receipt of policy proceeds depend upon the circumstances of
each Policyowner and Beneficiary.
Current Treasury regulations set standards for diversification of the
investments underlying variable life insurance policies in order for such
policies to be treated as life insurance. We believe we presently are and
intend to remain in compliance with the diversification requirements as set
forth in the regulations. If the diversification requirements are not
satisfied, the Policy would not be treated as a life insurance contract. As
a consequence to you, income earned on a Policy would be taxable to you in
the calendar quarter in which the diversification requirements were not
satisfied, and for all subsequent calendar quarters.
The Secretary of the Treasury may issue a regulation or a ruling which will
prescribe the circumstances in which a Policyowner's control of the
investments of a segregated account may cause the Policyowner, rather than
the insurance company, to be treated as the owner of the assets of the
account. The regulation or ruling could impose requirements that are not
reflected in the Policy, relating, for example, to such elements of
Policyowner control as premium allocation, investment selection, transfer
privileges and investment in a division focusing on a particular investment
sector. Failure to comply with any such regulation or ruling presumably
would cause earnings on a Policyowner's interest in Separate Account A to be
includible in the Policyowner's gross income in the year earned. However, we
have reserved certain rights to alter the Policy and investment alternatives
so as to comply with such regulation or ruling. We believe that any such
regulation or ruling would apply prospectively. Since the regulation or
ruling has not been issued, there can be no assurance as to the content of
such regulation or ruling or even whether application of the regulation or
ruling will be prospective. For these reasons, Policyowners are urged to
consult with their own tax advisers.
The foregoing summary does not purport to be complete or to cover all
situations, including the possible tax consequences of changes in ownership.
Counsel and other competent advisers should be consulted for more complete
information.
> CHARGES FOR JP FINANCIAL INCOME TAXES
We are presently taxed as a life insurance company under the provisions of
the Code. The Code specifically provides for adjustments in reserves for
variable policies, and we will include flexible premium life insurance
operations in our tax return in accordance with these rules.
Currently no charge is made against the Separate Account for our federal
income taxes, or provisions for such taxes, that may be attributable to the
Separate Account. We may charge each Division for its portion of any income
tax charged to us on the Division or its assets. Under present laws, we may
incur state and local taxes (in addition to premium taxes) in several
states. At present these taxes are not significant. However, if they
increase, we may decide to make charges for such taxes or provisions for
such taxes against the Separate Account. We would retain any investment
earnings on any tax charges accumulated in a Division. Any such charges
against the Separate Account or its Divisions could have an adverse effect
on the investment experience of such Division.
32
<PAGE>
miscellaneous policy provisions
----------------------------------------------------------------------------
> THE POLICY
The Policy which you receive, the application you make when you purchase the
Policy, any applications for any changes approved by us and any riders
constitute the whole contract. Copies of all applications are attached to
and made a part of the Policy.
Application forms are completed by the applicants and forwarded to us for
acceptance. Upon acceptance, the Policy is prepared, executed by our duly
authorized officers and forwarded to you.
We reserve the right to make a change in the Policy; however, we will not
change any terms of the Policy beneficial to you.
> PAYMENT OF BENEFITS
All benefits are payable at our Service Office. We may require submission of
the Policy before we grant Policy Loans, make changes or pay benefits.
> SUICIDE AND INCONTESTABILITY
Suicide Exclusion--In most states, if the Insured dies by suicide, while
sane or insane, within 2 years from the Issue Date of this Policy, this
Policy will end and we will refund premiums paid, without interest, less any
Policy Debt and less any withdrawal. If the Insured commits suicide within 2
years of the effective date of any Increase in Specified Amount, our only
liability with regard to the Increase will be for the sum of the Monthly
Deductions for such Increase in Specified Amount.
Incontestability--We will not contest or revoke the insurance coverage
provided under the Policy after the Policy has been in force during the
lifetime of the Insured for two years from the date of issue or
reinstatement.
> PROTECTION OF PROCEEDS
To the extent provided by law, the proceeds of the Policy are not subject to
claims by a Beneficiary's creditors or to any legal process against any
Beneficiary.
> NONPARTICIPATION
The Policy is not entitled to share in our divisible surplus. No dividends
are payable.
> CHANGES IN OWNER AND BENEFICIARY; ASSIGNMENT
Unless otherwise stated in the Policy, you may change the Policyowner and
the Beneficiary, or both, at any time while the Policy is in force. A
request for such change must be made in writing and sent to us at our
Service Office. After we have agreed, in writing, to the change, it will
take effect as of the date on which your Written Request was signed.
The Policy may also be assigned. No assignment of Policy will be binding on
us unless made in writing and sent to us at our Service Office. We will use
reasonable procedures to confirm that the assignment is authentic.
Otherwise, we are not responsible for the validity of any assignment. Your
rights and the Beneficiary's interest will be subject to the rights of any
assignee of record.
> MISSTATEMENTS
If the age or sex of the Insured has been misstated in an application,
including a reinstatement application, we will adjust the benefits payable
to reflect the correct age or sex.
33
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<PAGE>
appendix a
----------------------------------------------------------------------------
> ILLUSTRATIONS OF ACCUMULATION VALUES, CASH VALUES AND DEATH BENEFITS
Following are a series of tables that illustrate how the Accumulation
Values, Surrender Values and Death Benefits of a policy change with the
investment performance of the Portfolios. The tables show how the
Accumulation Values, Surrender Values and Death Benefits of a Policy issued
to an Insured of a given age and given premium would vary over time if the
return on the assets held in each Portfolio were a constant gross annual
rate of 0%, 6%, and 12%. The tables on pages A-3 through A-13 illustrate a
Policy issued to a male, age 45, under a standard rate non-smoker
underwriting risk classification. The Accumulation Values, Surrender Values
and Death Benefits would be different from those shown if the returns
averaged 0%, 6%, and 12% over a period of years, but fluctuated above and
below those averages for individual policy years.
The Surrender Value exceeds the Accumulation Value during the first two
policy years due to the refund of Sales Charges feature.
The second column shows the accumulation value of the premiums paid at the
stated interest rate. The third and sixth columns illustrate the
Accumulation Values and the fourth and seventh columns illustrate the
Surrender Values of the Policy over the designated period. The Accumulation
Values shown in the third column and the Surrender Values shown in the
fourth column assume the monthly charge for cost of insurance is based upon
the current cost of insurance rates as discounted, and that the mortality
and expense risk charge and Premium Load are charged at current rates. The
current cost of insurance rates are based on the sex, issue age, policy
year, and rating class of the Insured, and the Specified Amount of the
Policy. The Accumulation Values shown in the sixth column and the Surrender
Values shown in the seventh column assume the monthly charge for cost of
insurance is based upon the maximum cost of insurance rates allowable, which
are based on the Commissioner's 1980 Standard Ordinary Mortality Table, and
upon the maximum mortality and expense risk charges and premium load
provided in the Policy, as described below. The current cost of insurance
rates are different for Specified Amounts below $100,000 and above $100,000.
The fifth and eighth columns illustrate the Death Benefit of a Policy over
the designated period on a current and guaranteed basis, respectively. The
illustrations of Death Benefits reflect the same assumptions as the
Accumulation Values and Surrender Values. The Death Benefit values also vary
between tables, depending upon whether Option I, Option II or Option III
death benefits are illustrated.
The amounts shown for the death benefit, Accumulation Values, and Surrender
Values reflect the fact that the net investment return of the dividends of
Separate Account A is lower than the gross return on the assets in the
Portfolios, as a result of expenses paid by the Portfolios and charges
levied against the divisions of Separate Account A.
The policy values shown take into account a daily investment advisory fee
equivalent to the maximum annual rate of .70% of the aggregate arithmetic
average daily net assets of the Portfolios, plus a charge of .16% of the
aggregate arithmetic average daily net assets to cover expenses incurred by
the Portfolios for the twelve months ended December 31, 1999. The .70%
investment advisory fee is an average of the individual investment advisory
fees of the twenty Portfolios. The .16% expense figure is an average of the
annual expenses of the Jefferson Pilot Variable Fund Portfolios, the
Templeton International Securities Fund, the Fidelity VIP and VIP II
Portfolios, the Oppenheimer Portfolios and the MFS Portfolios. Expenses for
the Templeton International Securities Fund: Class 2, the Fidelity Equity
Income, Growth, and Contrafund Portfolios, the MFS Research and Utilities
Series, and the Oppenheimer Bond and Strategic Bond Portfolios were provided
by the investment managers for these portfolios and JP Financial has not
independently verified such information. The policy values also take into
account a daily charge to each division of Separate Account A for assuming
mortality and expense risks which is equivalent to a charge at an annual
rate of 0.60% (0.85% guaranteed) of the average daily net assets of the
divisions of Separate Account A in Policy Years 1 through 25 and 0.40%
(0.60% guaranteed) thereafter.
A-1
<PAGE>
After deduction of these amounts, the illustrated gross investment rates of
0%, 6%, and 12% correspond to approximate net annual rates of -1.46%, 4.54%
and 10.54%, respectively, on a current basis, and -1.71%, 4.29% and 10.29%
on a guaranteed basis.
The assumed annual premium used in calculating Accumulation Value, Cash
Value, and Death Benefits is net of the 2.5% state premium tax charge, the
1.25% federal DAC tax charge and the Premium Load, which is 3% in Policy
Years 1 through 10 only on a current basis and 3% in all years on a
guaranteed basis. It also reflects deduction of the Monthly Deduction and
addition of the Monthly Accumulation Value Adjustment. As part of the
Monthly Deduction, the Monthly Acquisition Charge of 0.6% of the Load Basis
Amount is per month in Policy Years 1 through 10 has been deducted. The Load
Basis Amount varies by Sex, Issue Age and rating class of the Insured.
The hypothetical values shown in the tables do not reflect any charges for
federal income taxes or other taxes against Separate Account A since JP
Financial is not currently making such charges. However, if, in the future,
such charges are made, the gross annual investment rate of return would have
to exceed the stated investment rates by a sufficient amount to cover the
tax charges in order to produce the Accumulation Values, Surrender Values
and death benefits illustrated.
The tables illustrate the policy values that would result based on
hypothetical investment rates of return if premiums are paid in full at the
beginning of each year, if all net premiums are allocated to Separate
Account A, and if no policy loans have been made. The values would vary from
those shown if the assumed annual premium payments were paid in installments
during a year. The values would also vary if the policyowner varied the
amount or frequency of premium payments. The tables also assume that the
policyowner has not requested an increase or decrease in Specified Amount,
that no withdrawals have been made and that no transfers have been made and
no transfer charges imposed.
Upon request, we will provide a comparable illustration based upon the
proposed Insured's age, sex and rating class, the face amount requested, the
proposed frequency and amount of premium payments and any available riders
requested. Existing policyowners may request illustrations based on existing
Surrender Value at the time of request. We reserve the right to charge an
administrative fee of up to $25 for such illustrations.
A-2
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION I: ASSUMED HYPOTHETICAL GROSS ANNUAL
GUIDELINE PREMIUM TEST RATE OF RETURN(1): (Current) 12% (10.54% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 12% (10.29% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,513 1,875 100,000 1,345 1,708 100,000
2 4,305 3,169 3,531 100,000 2,798 3,160 100,000
3 6,620 4,983 4,983 100,000 4,367 4,367 100,000
4 9,051 6,981 6,981 100,000 6,065 6,065 100,000
5 11,604 9,187 9,187 100,000 7,903 7,903 100,000
6 14,284 11,628 11,628 100,000 9,895 9,895 100,000
7 17,098 14,328 14,328 100,000 12,052 12,052 100,000
8 20,053 17,313 17,313 100,000 14,387 14,387 100,000
9 23,156 20,619 20,619 100,000 16,917 16,917 100,000
10 26,414 24,271 24,271 100,000 19,659 19,659 100,000
11 29,834 28,483 28,483 100,000 22,750 22,750 100,000
12 33,426 33,142 33,142 100,000 26,116 26,116 100,000
13 37,197 38,305 38,305 100,000 29,793 29,793 100,000
14 41,157 44,036 44,036 100,000 33,833 33,833 100,000
15 45,315 50,403 50,403 100,000 38,288 38,288 100,000
16 49,681 57,446 57,446 100,000 43,212 43,212 100,000
17 54,265 65,300 65,300 100,000 48,668 48,668 100,000
18 59,078 74,063 74,063 100,000 54,731 54,731 100,000
19 64,132 83,854 83,854 103,979(4) 61,491 61,491 100,000
20 69,439 94,718 94,718 115,555(4) 69,060 69,060 100,000
25 100,227 169,065 169,065 196,115(4) 122,320 122,320 141,892(4)
30 139,522 293,704 293,704 314,263(4) 210,107 210,107 224,815(4)
35 189,673 502,916 502,916 528,061(4) 355,015 355,015 372,766(4)
40 253,680 848,413 848,413 890,834(4) 585,735 585,735 615,021(4)
45 335,370 1,412,395 1,412,395 1,483,015(4) 942,874 942,874 990,017(4)
50 439,631 2,352,140 2,352,140 2,375,662(4) 1,524,887 1,524,887 1,540,136(4)
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals 10.79% on the current basis and 10.54% on the guaranteed
basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the
corridor percentage. See "Death Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-3
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION I: ASSUMED HYPOTHETICAL GROSS ANNUAL
CASH VALUE ACCUMULATION TEST RATE OF RETURN(1): (Current) 12% (10.54% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 12% (10.29% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,513 1,875 100,000 1,345 1,708 100,000
2 4,305 3,169 3,531 100,000 2,798 3,160 100,000
3 6,620 4,983 4,983 100,000 4,367 4,367 100,000
4 9,051 6,981 6,981 100,000 6,065 6,065 100,000
5 11,604 9,187 9,187 100,000 7,903 7,903 100,000
6 14,284 11,628 11,628 100,000 9,895 9,895 100,000
7 17,098 14,328 14,328 100,000 12,052 12,052 100,000
8 20,053 17,313 17,313 100,000 14,387 14,387 100,000
9 23,156 20,619 20,619 100,000 16,917 16,917 100,000
10 26,414 24,271 24,271 100,000 19,659 19,659 100,000
11 29,834 28,483 28,483 100,000 22,750 22,750 100,000
12 33,426 33,142 33,142 100,000 26,116 26,116 100,000
13 37,197 38,305 38,305 100,000 29,793 29,793 100,000
14 41,157 44,036 44,036 100,000 33,833 33,833 100,000
15 45,315 50,403 50,403 100,000 38,288 38,288 100,000
16 49,681 57,411 57,411 109,720(4) 43,212 43,212 100,000
17 54,265 65,126 65,126 121,339(4) 48,668 48,668 100,000
18 59,078 73,607 73,607 133,756(4) 54,731 54,731 100,000
19 64,132 82,934 82,934 147,058(4) 61,399 61,399 108,872(4)
20 69,439 93,195 93,195 161,344(4) 68,616 68,616 118,792(4)
25 100,227 161,694 161,694 250,500(4) 114,422 114,422 177,266(4)
30 139,522 271,012 271,012 380,902(4) 181,298 181,298 254,810(4)
35 189,673 442,344 442,344 574,567(4) 274,888 274,888 357,056(4)
40 253,680 707,621 707,621 861,762(4) 403,506 403,506 491,401(4)
45 335,370 1,114,125 1,114,125 1,292,376(4) 574,156 574,156 666,015(4)
50 439,631 1,737,211 1,737,211 1,925,524(4) 804,215 804,215 891,392(4)
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals 10.79% on the current basis and 10.54% on the guaranteed
basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-4
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION II: ASSUMED HYPOTHETICAL GROSS ANNUAL
GUIDELINE PREMIUM TEST RATE OF RETURN(1): (Current) 12% (10.54% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 12% (10.29% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,507 1,870 101,507 1,338 1,700 101,338
2 4,305 3,152 3,514 103,152 2,774 3,136 102,774
3 6,620 4,946 4,946 104,946 4,315 4,315 104,315
4 9,051 6,915 6,915 106,915 5,971 5,971 105,971
5 11,604 9,079 9,079 109,079 7,747 7,747 107,747
6 14,284 11,464 11,464 111,464 9,654 9,654 109,654
7 17,098 14,091 14,091 114,091 11,694 11,694 111,694
8 20,053 16,982 16,982 116,982 13,874 13,874 113,874
9 23,156 20,169 20,169 120,169 16,199 16,199 116,199
10 26,414 23,670 23,670 123,670 18,673 18,673 118,673
11 29,834 27,688 27,688 127,688 21,419 21,419 121,419
12 33,426 32,098 32,098 132,098 24,341 24,341 124,341
13 37,197 36,941 36,941 136,941 27,455 27,455 127,455
14 41,157 42,264 42,264 142,264 30,776 30,776 130,776
15 45,315 48,114 48,114 148,114 34,326 34,326 134,326
16 49,681 54,459 54,459 154,459 38,117 38,117 138,117
17 54,265 61,442 61,442 161,442 42,159 42,159 142,159
18 59,078 69,107 69,107 169,107 46,456 46,456 146,456
19 64,132 77,534 77,534 177,534 51,014 51,014 151,014
20 69,439 86,809 86,809 186,809 55,837 55,837 155,837
25 100,227 148,823 148,823 248,823 84,265 84,265 184,265
30 139,522 248,787 248,787 348,787 120,383 120,383 220,383
35 189,673 408,765 408,765 508,765 160,639 160,639 260,639
40 253,680 664,997 664,997 764,997 198,557 198,557 298,557
45 335,370 1,076,924 1,076,924 1,176,924 214,970 214,970 314,970
50 439,631 1,743,367 1,743,367 1,843,367 178,653 178,653 278,653
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals 10.79% on the current basis and 10.54% on the guaranteed
basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-5
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION II: ASSUMED HYPOTHETICAL GROSS ANNUAL
CASH VALUE ACCUMULATION TEST RATE OF RETURN(1): (Current) 12% (10.54% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 12% (10.29% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,507 1,870 101,507 1,338 1,700 101,338
2 4,305 3,152 3,514 103,152 2,774 3,136 102,774
3 6,620 4,946 4,946 104,946 4,315 4,315 104,315
4 9,051 6,915 6,915 106,915 5,971 5,971 105,971
5 11,604 9,079 9,079 109,079 7,747 7,747 107,747
6 14,284 11,464 11,464 111,464 9,654 9,654 109,654
7 17,098 14,091 14,091 114,091 11,694 11,694 111,694
8 20,053 16,982 16,982 116,982 13,874 13,874 113,874
9 23,156 20,169 20,169 120,169 16,199 16,199 116,199
10 26,414 23,670 23,670 123,670 18,673 18,673 118,673
11 29,834 27,688 27,688 127,688 21,419 21,419 121,419
12 33,426 32,098 32,098 132,098 24,341 24,341 124,341
13 37,197 36,941 36,941 136,941 27,455 27,455 127,455
14 41,157 42,264 42,264 142,264 30,776 30,776 130,776
15 45,315 48,114 48,114 148,114 34,326 34,326 134,326
16 49,681 54,459 54,459 154,459 38,117 38,117 138,117
17 54,265 61,442 61,442 161,442 42,159 42,159 142,159
18 59,078 69,107 69,107 169,107 46,456 46,456 146,456
19 64,132 77,534 77,534 177,534 51,014 51,014 151,014
20 69,439 86,809 86,809 186,809 55,837 55,837 155,837
25 100,227 148,823 148,823 248,823 84,265 84,265 184,265
30 139,522 248,787 248,787 349,665 120,383 120,383 220,383
35 189,673 406,961 406,961 528,607 160,639 160,639 260,639
40 253,680 651,939 651,939 793,950 198,557 198,557 298,557
45 335,370 1,027,355 1,027,355 1,191,723 214,970 214,970 314,970
50 439,631 1,602,802 1,602,802 1,776,546 178,653 178,653 278,653
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals 10.79% on the current basis and 10.54% on the guaranteed
basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-6
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION III: ASSUMED HYPOTHETICAL GROSS ANNUAL
GUIDELINE PREMIUM TEST RATE OF RETURN(1): (Current) 12% (10.54% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 12% (10.29% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,506 1,869 102,000 1,336 1,698 102,000
2 4,305 3,148 3,510 104,000 2,766 3,129 104,000
3 6,620 4,938 4,938 106,000 4,298 4,298 106,000
4 9,051 6,902 6,902 108,000 5,941 5,941 108,000
5 11,604 9,060 9,060 110,000 7,699 7,699 110,000
6 14,284 11,440 11,440 112,000 9,583 9,583 112,000
7 17,098 14,063 14,063 114,000 11,597 11,597 114,000
8 20,053 16,953 16,953 116,000 13,747 13,747 116,000
9 23,156 20,142 20,142 118,000 16,038 16,038 118,000
10 26,414 23,653 23,653 120,000 18,477 18,477 120,000
11 29,834 27,690 27,690 122,000 21,188 21,188 122,000
12 33,426 32,135 32,135 124,000 24,081 24,081 124,000
13 37,197 37,035 37,035 126,000 27,174 27,174 126,000
14 41,157 42,445 42,445 128,000 30,489 30,489 128,000
15 45,315 48,424 48,424 130,000 34,057 34,057 130,000
16 49,681 54,969 54,969 132,000 37,901 37,901 132,000
17 54,265 62,230 62,230 134,000 42,044 42,044 134,000
18 59,078 70,278 70,278 136,000 46,514 46,514 136,000
19 64,132 79,221 79,221 138,000 51,340 51,340 138,000
20 69,439 89,180 89,180 140,000 56,559 56,559 140,000
25 100,227 158,959 158,959 184,393 90,825 90,825 150,000
30 139,522 276,864 276,864 296,245 151,014 151,014 161,585
35 189,673 474,767 474,767 498,505 258,357 258,357 271,275
40 253,680 801,595 801,595 841,675 429,342 429,342 450,809
45 335,370 1,335,110 1,335,110 1,401,866 694,111 694,111 728,816
50 439,631 2,224,086 2,224,086 2,246,327 1,125,556 1,125,556 1,136,811
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals 10.79% on the current basis and 10.54% on the guaranteed
basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-7
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION III: ASSUMED HYPOTHETICAL GROSS ANNUAL
CASH VALUE ACCUMULATION TEST RATE OF RETURN(1): (Current) 12% (10.54% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 12% (10.29% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,506 1,869 102,000 1,336 1,698 102,000
2 4,305 3,148 3,510 104,000 2,766 3,129 104,000
3 6,620 4,938 4,938 106,000 4,298 4,298 106,000
4 9,051 6,902 6,902 108,000 5,941 5,941 108,000
5 11,604 9,060 9,060 110,000 7,699 7,699 110,000
6 14,284 11,440 11,440 112,000 9,583 9,583 112,000
7 17,098 14,063 14,063 114,000 11,597 11,597 114,000
8 20,053 16,953 16,953 116,000 13,747 13,747 116,000
9 23,156 20,142 20,142 118,000 16,038 16,038 118,000
10 26,414 23,653 23,653 120,000 18,477 18,477 120,000
11 29,834 27,690 27,690 122,000 21,188 21,188 122,000
12 33,426 32,135 32,135 124,000 24,081 24,081 124,000
13 37,197 37,035 37,035 126,000 27,174 27,174 126,000
14 41,157 42,445 42,445 128,000 30,489 30,489 128,000
15 45,315 48,424 48,424 130,000 34,057 34,057 130,000
16 49,681 54,969 54,969 132,000 37,901 37,901 132,000
17 54,265 62,230 62,230 134,000 42,044 42,044 134,000
18 59,078 70,278 70,278 136,000 46,514 46,514 136,000
19 64,132 79,220 79,220 140,000 51,340 51,340 138,000
20 69,439 89,105 89,105 154,263 56,559 56,559 140,000
25 100,227 155,099 155,099 240,284 90,825 90,825 150,000
30 139,522 260,435 260,435 366,036 145,730 145,730 204,820
35 189,673 425,532 425,532 552,730 223,034 223,034 289,702
40 253,680 681,165 681,165 829,542 329,360 329,360 401,104
45 335,370 1,072,898 1,072,898 1,244,553 470,544 470,544 545,826
50 439,631 1,673,349 1,673,349 1,854,740 660,934 660,934 732,580
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals 10.79% on the current basis and 10.54% on the guaranteed
basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 12% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-8
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION I: ASSUMED HYPOTHETICAL GROSS ANNUAL
GUIDELINE PREMIUM TEST RATE OF RETURN(1): (Current) 6% (4.54% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 6% (4.29% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,417 1,779 100,000 1,255 1,617 100,000
2 4,305 2,882 3,245 100,000 2,532 2,894 100,000
3 6,620 4,398 4,398 100,000 3,832 3,832 100,000
4 9,051 5,974 5,974 100,000 5,153 5,153 100,000
5 11,604 7,616 7,616 100,000 6,494 6,494 100,000
6 14,284 9,333 9,333 100,000 7,855 7,855 100,000
7 17,098 11,126 11,126 100,000 9,228 9,228 100,000
8 20,053 12,997 12,997 100,000 10,609 10,609 100,000
9 23,156 14,953 14,953 100,000 11,994 11,994 100,000
10 26,414 16,989 16,989 100,000 13,375 13,375 100,000
11 29,834 19,275 19,275 100,000 14,860 14,860 100,000
12 33,426 21,648 21,648 100,000 16,338 16,338 100,000
13 37,197 24,103 24,103 100,000 17,811 17,811 100,000
14 41,157 26,647 26,647 100,000 19,274 19,274 100,000
15 45,315 29,283 29,283 100,000 20,724 20,724 100,000
16 49,681 31,969 31,969 100,000 22,152 22,152 100,000
17 54,265 34,774 34,774 100,000 23,550 23,550 100,000
18 59,078 37,691 37,691 100,000 24,905 24,905 100,000
19 64,132 40,734 40,734 100,000 26,201 26,201 100,000
20 69,439 43,917 43,917 100,000 27,423 27,423 100,000
25 100,227 62,150 62,150 100,000 31,990 31,990 100,000
30 139,522 86,325 86,325 100,000 31,699 31,699 100,000
35 189,673 119,074 119,074 125,028(4) 16,851 16,851 100,000
40 253,680 159,944 159,944 167,942(4) 0 0 0
45 335,370 209,849 209,849 220,341(4) 0 0 0
50 439,631 273,250 273,250 275,983(4) 0 0 0
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals 4.79% on the current basis and 4.54% on the guaranteed basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-9
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION I: ASSUMED HYPOTHETICAL GROSS ANNUAL
CASH VALUE ACCUMULATION TEST RATE OF RETURN(1): (Current) 6% (4.54% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 6% (4.29% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,417 1,779 100,000 1,255 1,617 100,000
2 4,305 2,882 3,245 100,000 2,532 2,894 100,000
3 6,620 4,398 4,398 100,000 3,832 3,832 100,000
4 9,051 5,974 5,974 100,000 5,153 5,153 100,000
5 11,604 7,616 7,616 100,000 6,494 6,494 100,000
6 14,284 9,333 9,333 100,000 7,855 7,855 100,000
7 17,098 11,126 11,126 100,000 9,228 9,228 100,000
8 20,053 12,997 12,997 100,000 10,609 10,609 100,000
9 23,156 14,953 14,953 100,000 11,994 11,994 100,000
10 26,414 16,989 16,989 100,000 13,375 13,375 100,000
11 29,834 19,275 19,275 100,000 14,860 14,860 100,000
12 33,426 21,648 21,648 100,000 16,338 16,338 100,000
13 37,197 24,103 24,103 100,000 17,811 17,811 100,000
14 41,157 26,647 26,647 100,000 19,274 19,274 100,000
15 45,315 29,283 29,283 100,000 20,724 20,724 100,000
16 49,681 31,969 31,969 100,000 22,152 22,152 100,000
17 54,265 34,774 34,774 100,000 23,550 23,550 100,000
18 59,078 37,691 37,691 100,000 24,905 24,905 100,000
19 64,132 40,734 40,734 100,000 26,201 26,201 100,000
20 69,439 43,917 43,917 100,000 27,423 27,423 100,000
25 100,227 62,150 62,150 100,000 31,990 31,990 100,000
30 139,522 85,218 85,218 119,772(4) 31,699 31,699 100,000
35 189,673 112,263 112,263 145,820(4) 16,851 16,851 100,000
40 253,680 143,410 143,410 174,649(4) 0 0 0
45 335,370 178,792 178,792 207,397(4) 0 0 0
50 439,631 219,256 219,256 243,023(4) 0 0 0
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals 4.79% on the current basis and 4.54% on the guaranteed basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
h(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-10
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION II: ASSUMED HYPOTHETICAL GROSS ANNUAL
GUIDELINE PREMIUM TEST RATE OF RETURN(1): (Current) 6% (4.54% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 6% (4.29% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,412 1,774 101,412 1,247 1,610 101,247
2 4,305 2,867 3,229 102,867 2,510 2,873 102,510
3 6,620 4,366 4,366 104,366 3,786 3,786 103,786
4 9,051 5,918 5,918 105,918 5,074 5,074 105,074
5 11,604 7,529 7,529 107,529 6,369 6,369 106,369
6 14,284 9,206 9,206 109,206 7,668 7,668 107,668
7 17,098 10,950 10,950 110,950 8,962 8,962 108,962
8 20,053 12,761 12,761 112,761 10,244 10,244 110,244
9 23,156 14,645 14,645 114,645 11,504 11,504 111,504
10 26,414 16,594 16,594 116,594 12,730 12,730 112,730
11 29,834 18,773 18,773 118,773 14,025 14,025 114,025
12 33,426 21,016 21,016 121,016 15,274 15,274 115,274
13 37,197 23,312 23,312 123,312 16,470 16,470 116,470
14 41,157 25,664 25,664 125,664 17,603 17,603 117,603
15 45,315 28,067 28,067 128,067 18,663 18,663 118,663
16 49,681 30,442 30,442 130,442 19,633 19,633 119,633
17 54,265 32,879 32,879 132,879 20,493 20,493 120,493
18 59,078 35,356 35,356 135,356 21,218 21,218 121,218
19 64,132 37,879 37,879 137,879 21,780 21,780 121,780
20 69,439 40,453 40,453 140,453 22,148 22,148 122,148
25 100,227 53,529 53,529 153,529 20,094 20,094 120,094
30 139,522 66,089 66,089 166,089 7,583 7,583 107,583
35 189,673 74,610 74,610 174,610 0 0 0
40 253,680 73,551 73,551 173,551 0 0 0
45 335,370 54,073 54,073 154,073 0 0 0
50 439,631 3,154 3,154 103,154 0 0 0
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals 4.79% on the current basis and 4.54% on the guaranteed basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-11
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION II: ASSUMED HYPOTHETICAL GROSS ANNUAL
CASH VALUE ACCUMULATION TEST RATE OF RETURN(1): (Current) 6% (4.54% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 6% (4.29% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,412 1,774 101,412 1,247 1,610 101,247
2 4,305 2,867 3,229 102,867 2,510 2,873 102,510
3 6,620 4,366 4,366 104,366 3,786 3,786 103,786
4 9,051 5,918 5,918 105,918 5,074 5,074 105,074
5 11,604 7,529 7,529 107,529 6,369 6,369 106,369
6 14,284 9,206 9,206 109,206 7,668 7,668 107,668
7 17,098 10,950 10,950 110,950 8,962 8,962 108,962
8 20,053 12,761 12,761 112,761 10,244 10,244 110,244
9 23,156 14,645 14,645 114,645 11,504 11,504 111,504
10 26,414 16,594 16,594 116,594 12,730 12,730 112,730
11 29,834 18,773 18,773 118,773 14,025 14,025 114,025
12 33,426 21,016 21,016 121,016 15,274 15,274 115,274
13 37,197 23,312 23,312 123,312 16,470 16,470 116,470
14 41,157 25,664 25,664 125,664 17,603 17,603 117,603
15 45,315 28,067 28,067 128,067 18,663 18,663 118,663
16 49,681 30,442 30,442 130,442 19,633 19,633 119,633
17 54,265 32,879 32,879 132,879 20,493 20,493 120,493
18 59,078 35,356 35,356 135,356 21,218 21,218 121,218
19 64,132 37,879 37,879 137,879 21,780 21,780 121,780
20 69,439 40,453 40,453 140,453 22,148 22,148 122,148
25 100,227 53,529 53,529 153,529 20,094 20,094 120,094
30 139,522 66,089 66,089 166,089 7,583 7,583 107,583
35 189,673 74,610 74,610 174,610 0 0 0
40 253,680 73,551 73,551 173,551 0 0 0
45 335,370 54,073 54,073 154,073 0 0 0
50 439,631 3,154 3,154 103,154 0 0 0
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals 4.79% on the current basis and 4.54% on the guaranteed basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-12
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION III: ASSUMED HYPOTHETICAL GROSS ANNUAL
GUIDELINE PREMIUM TEST RATE OF RETURN(1): (Current) 6% (4.54% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 6% (4.29% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,411 1,773 102,000 1,245 1,608 102,000
2 4,305 2,863 3,225 104,000 2,502 2,865 104,000
3 6,620 4,356 4,356 106,000 3,767 3,767 106,000
4 9,051 5,901 5,901 108,000 5,039 5,039 108,000
5 11,604 7,502 7,502 110,000 6,311 6,311 110,000
6 14,284 9,168 9,168 112,000 7,579 7,579 112,000
7 17,098 10,898 10,898 114,000 8,833 8,833 114,000
8 20,053 12,694 12,694 116,000 10,064 10,064 116,000
9 23,156 14,560 14,560 118,000 11,259 11,259 118,000
10 26,414 16,490 16,490 120,000 12,404 12,404 120,000
11 29,834 18,648 18,648 122,000 13,599 13,599 122,000
12 33,426 20,869 20,869 124,000 14,724 14,724 124,000
13 37,197 23,141 23,141 126,000 15,771 15,771 126,000
14 41,157 25,469 25,469 128,000 16,724 16,724 128,000
15 45,315 27,847 27,847 130,000 17,566 17,566 130,000
16 49,681 30,195 30,195 132,000 18,272 18,272 132,000
17 54,265 32,606 32,606 134,000 18,812 18,812 134,000
18 59,078 35,058 35,058 136,000 19,148 19,148 136,000
19 64,132 37,558 37,558 138,000 19,234 19,234 138,000
20 69,439 40,114 40,114 140,000 19,019 19,019 140,000
25 100,227 53,223 53,223 150,000 11,244 11,244 150,000
30 139,522 66,295 66,295 160,000 0 0 0
35 189,673 76,190 76,190 170,000 0 0 0
40 253,680 76,322 76,322 180,000 0 0 0
45 335,370 47,961 47,961 190,000 0 0 0
50 439,631 0 0 0 0 0 0
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals 4.79% on the current basis and 4.54% on the guaranteed basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-13
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION III: ASSUMED HYPOTHETICAL GROSS ANNUAL
CASH VALUE ACCUMULATION TEST RATE OF RETURN(1): (Current) 6% (4.54% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 6% (4.29% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,411 1,773 102,000 1,245 1,608 102,000
2 4,305 2,863 3,225 104,000 2,502 2,865 104,000
3 6,620 4,356 4,356 106,000 3,767 3,767 106,000
4 9,051 5,901 5,901 108,000 5,039 5,039 108,000
5 11,604 7,502 7,502 110,000 6,311 6,311 110,000
6 14,284 9,168 9,168 112,000 7,579 7,579 112,000
7 17,098 10,898 10,898 114,000 8,833 8,833 114,000
8 20,053 12,694 12,694 116,000 10,064 10,064 116,000
9 23,156 14,560 14,560 118,000 11,259 11,259 118,000
10 26,414 16,490 16,490 120,000 12,404 12,404 120,000
11 29,834 18,648 18,648 122,000 13,599 13,599 122,000
12 33,426 20,869 20,869 124,000 14,724 14,724 124,000
13 37,197 23,141 23,141 126,000 15,771 15,771 126,000
14 41,157 25,469 25,469 128,000 16,724 16,724 128,000
15 45,315 27,847 27,847 130,000 17,566 17,566 130,000
16 49,681 30,195 30,195 132,000 18,272 18,272 132,000
17 54,265 32,606 32,606 134,000 18,812 18,812 134,000
18 59,078 35,058 35,058 136,000 19,148 19,148 136,000
19 64,132 37,558 37,558 138,000 19,234 19,234 138,000
20 69,439 40,114 40,114 140,000 19,019 19,019 140,000
25 100,227 53,223 53,223 150,000 11,244 11,244 150,000
30 139,522 66,295 66,295 160,000 0 0 0
35 189,673 76,190 76,190 170,000 0 0 0
40 253,680 76,322 76,322 180,000 0 0 0
45 335,370 47,961 47,961 190,000 0 0 0
50 439,631 0 0 0 0 0 0
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals 4.79% on the current basis and 4.54% on the guaranteed basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 6% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-14
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION I: ASSUMED HYPOTHETICAL GROSS ANNUAL
GUIDELINE PREMIUM TEST RATE OF RETURN(1): (Current) 0% (-1.46% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 0% (-1.71% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,322 1,684 100,000 1,164 1,527 100,000
2 4,305 2,608 2,971 100,000 2,278 2,641 100,000
3 6,620 3,859 3,859 100,000 3,340 3,340 100,000
4 9,051 5,083 5,083 100,000 4,350 4,350 100,000
5 11,604 6,282 6,282 100,000 5,303 5,303 100,000
6 14,284 7,462 7,462 100,000 6,200 6,200 100,000
7 17,098 8,621 8,621 100,000 7,033 7,033 100,000
8 20,053 9,757 9,757 100,000 7,798 7,798 100,000
9 23,156 10,872 10,872 100,000 8,487 8,487 100,000
10 26,414 11,958 11,958 100,000 9,094 9,094 100,000
11 29,834 13,173 13,173 100,000 9,721 9,721 100,000
12 33,426 14,347 14,347 100,000 10,255 10,255 100,000
13 37,197 15,469 15,469 100,000 10,695 10,695 100,000
14 41,157 16,542 16,542 100,000 11,035 11,035 100,000
15 45,315 17,561 17,561 100,000 11,270 11,270 100,000
16 49,681 18,459 18,459 100,000 11,387 11,387 100,000
17 54,265 19,308 19,308 100,000 11,375 11,375 100,000
18 59,078 20,089 20,089 100,000 11,216 11,216 100,000
19 64,132 20,808 20,808 100,000 10,890 10,890 100,000
20 69,439 21,466 21,466 100,000 10,374 10,374 100,000
25 100,227 23,449 23,449 100,000 4,183 4,183 100,000
30 139,522 22,644 22,644 100,000 0 0 0
35 189,673 16,375 16,375 100,000 0 0 0
40 253,680 0 0 0 0 0 0
45 335,370 0 0 0 0 0 0
50 439,631 0 0 0 0 0 0
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals -1.21% on the current basis and -1.46% on the guaranteed
basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-15
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION I: ASSUMED HYPOTHETICAL GROSS ANNUAL
CASH VALUE ACCUMULATION TEST RATE OF RETURN(1): (Current) 0% (-1.46% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 0% (-1.71% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,322 1,684 100,000 1,164 1,527 100,000
2 4,305 2,608 2,971 100,000 2,278 2,641 100,000
3 6,620 3,859 3,859 100,000 3,340 3,340 100,000
4 9,051 5,083 5,083 100,000 4,350 4,350 100,000
5 11,604 6,282 6,282 100,000 5,303 5,303 100,000
6 14,284 7,462 7,462 100,000 6,200 6,200 100,000
7 17,098 8,621 8,621 100,000 7,033 7,033 100,000
8 20,053 9,757 9,757 100,000 7,798 7,798 100,000
9 23,156 10,872 10,872 100,000 8,487 8,487 100,000
10 26,414 11,958 11,958 100,000 9,094 9,094 100,000
11 29,834 13,173 13,173 100,000 9,721 9,721 100,000
12 33,426 14,347 14,347 100,000 10,255 10,255 100,000
13 37,197 15,469 15,469 100,000 10,695 10,695 100,000
14 41,157 16,542 16,542 100,000 11,035 11,035 100,000
15 45,315 17,561 17,561 100,000 11,270 11,270 100,000
16 49,681 18,459 18,459 100,000 11,387 11,387 100,000
17 54,265 19,308 19,308 100,000 11,375 11,375 100,000
18 59,078 20,089 20,089 100,000 11,216 11,216 100,000
19 64,132 20,808 20,808 100,000 10,890 10,890 100,000
20 69,439 21,466 21,466 100,000 10,374 10,374 100,000
25 100,227 23,449 23,449 100,000 4,183 4,183 100,000
30 139,522 22,644 22,644 100,000 0 0 0
35 189,673 16,375 16,375 100,000 0 0 0
40 253,680 0 0 0 0 0 0
45 335,370 0 0 0 0 0 0
50 439,631 0 0 0 0 0 0
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals -1.21% on the current basis and -1.46% on the guaranteed
basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-16
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION II: ASSUMED HYPOTHETICAL GROSS ANNUAL
GUIDELINE PREMIUM TEST RATE OF RETURN(1): (Current) 0% (-1.46% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 0% (-1.71% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,317 1,679 101,317 1,157 1,520 101,157
2 4,305 2,595 2,957 102,595 2,258 2,621 102,258
3 6,620 3,832 3,832 103,832 3,301 3,301 103,301
4 9,051 5,037 5,037 105,037 4,284 4,284 104,284
5 11,604 6,212 6,212 106,212 5,203 5,203 105,203
6 14,284 7,365 7,365 107,365 6,057 6,057 106,057
7 17,098 8,491 8,491 108,491 6,838 6,838 106,838
8 20,053 9,589 9,589 109,589 7,540 7,540 107,540
9 23,156 10,662 10,662 110,662 8,155 8,155 108,155
10 26,414 11,699 11,699 111,699 8,674 8,674 108,674
11 29,834 12,857 12,857 112,857 9,201 9,201 109,201
12 33,426 13,965 13,965 113,965 9,619 9,619 109,619
13 37,197 15,008 15,008 115,008 9,928 9,928 109,928
14 41,157 15,989 15,989 115,989 10,121 10,121 110,121
15 45,315 16,903 16,903 116,903 10,192 10,192 110,192
16 49,681 17,664 17,664 117,664 10,131 10,131 110,131
17 54,265 18,360 18,360 118,360 9,924 9,924 109,924
18 59,078 18,969 18,969 118,969 9,554 9,554 109,554
19 64,132 19,494 19,494 119,494 9,002 9,002 109,002
20 69,439 19,939 19,939 119,939 8,249 8,249 108,249
25 100,227 20,431 20,431 120,431 949 949 100,949
30 139,522 17,215 17,215 117,215 0 0 0
35 189,673 7,683 7,683 107,683 0 0 0
40 253,680 0 0 0 0 0 0
45 335,370 0 0 0 0 0 0
50 439,631 0 0 0 0 0 0
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals -1.21% on the current basis and -1.46% on the guaranteed
basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-17
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION II: ASSUMED HYPOTHETICAL GROSS ANNUAL
CASH VALUE ACCUMULATION TEST RATE OF RETURN(1): (Current) 0% (-1.46% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 0% (-1.71% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
PREMIUMS
-----------------------------------
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,317 1,679 101,317 1,157 1,520 101,157
2 4,305 2,595 2,957 102,595 2,258 2,621 102,258
3 6,620 3,832 3,832 103,832 3,301 3,301 103,301
4 9,051 5,037 5,037 105,037 4,284 4,284 104,284
5 11,604 6,212 6,212 106,212 5,203 5,203 105,203
6 14,284 7,365 7,365 107,365 6,057 6,057 106,057
7 17,098 8,491 8,491 108,491 6,838 6,838 106,838
8 20,053 9,589 9,589 109,589 7,540 7,540 107,540
9 23,156 10,662 10,662 110,662 8,155 8,155 108,155
10 26,414 11,699 11,699 111,699 8,674 8,674 108,674
11 29,834 12,857 12,857 112,857 9,201 9,201 109,201
12 33,426 13,965 13,965 113,965 9,619 9,619 109,619
13 37,197 15,008 15,008 115,008 9,928 9,928 109,928
14 41,157 15,989 15,989 115,989 10,121 10,121 110,121
15 45,315 16,903 16,903 116,903 10,192 10,192 110,192
16 49,681 17,664 17,664 117,664 10,131 10,131 110,131
17 54,265 18,360 18,360 118,360 9,924 9,924 109,924
18 59,078 18,969 18,969 118,969 9,554 9,554 109,554
19 64,132 19,494 19,494 119,494 9,002 9,002 109,002
20 69,439 19,939 19,939 119,939 8,249 8,249 108,249
25 100,227 20,431 20,431 120,431 949 949 100,949
30 139,522 17,215 17,215 117,215 0 0 0
35 189,673 7,683 7,683 107,683 0 0 0
40 253,680 0 0 0 0 0 0
45 335,370 0 0 0 0 0 0
50 439,631 0 0 0 0 0 0
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals -1.21% on the current basis and -1.46% on the guaranteed
basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-18
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION III: ASSUMED HYPOTHETICAL GROSS ANNUAL
GUIDELINE PREMIUM TEST RATE OF RETURN(1): (Current) 0% (-1.46% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 0% (-1.71% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,316 1,678 102,000 1,155 1,518 102,000
2 4,305 2,590 2,952 104,000 2,250 2,612 104,000
3 6,620 3,821 3,821 106,000 3,280 3,280 106,000
4 9,051 5,017 5,017 108,000 4,245 4,245 108,000
5 11,604 6,180 6,180 110,000 5,138 5,138 110,000
6 14,284 7,317 7,317 112,000 5,957 5,957 112,000
7 17,098 8,424 8,424 114,000 6,691 6,691 114,000
8 20,053 9,500 9,500 116,000 7,331 7,331 116,000
9 23,156 10,546 10,546 118,000 7,868 7,868 118,000
10 26,414 11,551 11,551 120,000 8,289 8,289 120,000
11 29,834 12,671 12,671 122,000 8,692 8,692 122,000
12 33,426 13,734 13,734 124,000 8,958 8,958 124,000
13 37,197 14,724 14,724 126,000 9,079 9,079 126,000
14 41,157 15,641 15,641 128,000 9,044 9,044 128,000
15 45,315 16,477 16,477 130,000 8,838 8,838 130,000
16 49,681 17,135 17,135 132,000 8,442 8,442 132,000
17 54,265 17,711 17,711 134,000 7,830 7,830 134,000
18 59,078 18,176 18,176 136,000 6,968 6,968 136,000
19 64,132 18,530 18,530 138,000 5,816 5,816 138,000
20 69,439 18,777 18,777 140,000 4,334 4,334 140,000
25 100,227 17,539 17,539 150,000 0 0 0
30 139,522 10,118 10,118 160,000 0 0 0
35 189,673 0 0 0 0 0 0
40 253,680 0 0 0 0 0 0
45 335,370 0 0 0 0 0 0
50 439,631 0 0 0 0 0 0
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals -1.21% on the current basis and -1.46% on the guaranteed
basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-19
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
ENSEMBLE EXEC FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<S> <C> <C> <C>
DEATH BENEFIT OPTION III: ASSUMED HYPOTHETICAL GROSS ANNUAL
CASH VALUE ACCUMULATION TEST RATE OF RETURN(1): (Current) 0% (-1.46% net)
MALE NON-SMOKER ISSUE AGE 45 (Guaranteed) 0% (-1.71% net)
$100,000 INITIAL SPECIFIED AMOUNT ASSUMED ANNUAL PREMIUM(2): $2,000
</TABLE>
<TABLE>
<CAPTION>
ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
PREMIUMS ----------------------------------------------- ---------------------------------------------
END ACCUMULATED
OF AT 5% INTEREST ACCUMULATION SURRENDER DEATH ACCUMULATION SURRENDER DEATH
YEAR PER YEAR VALUE(3) VALUE(3) BENEFIT(3) VALUE(3) VALUE(3) BENEFIT(3)
------ ------------ -------------- ----------- ---------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,316 1,678 102,000 1,155 1,518 102,000
2 4,305 2,590 2,952 104,000 2,250 2,612 104,000
3 6,620 3,821 3,821 106,000 3,280 3,280 106,000
4 9,051 5,017 5,017 108,000 4,245 4,245 108,000
5 11,604 6,180 6,180 110,000 5,138 5,138 110,000
6 14,284 7,317 7,317 112,000 5,957 5,957 112,000
7 17,098 8,424 8,424 114,000 6,691 6,691 114,000
8 20,053 9,500 9,500 116,000 7,331 7,331 116,000
9 23,156 10,546 10,546 118,000 7,868 7,868 118,000
10 26,414 11,551 11,551 120,000 8,289 8,289 120,000
11 29,834 12,671 12,671 122,000 8,692 8,692 122,000
12 33,426 13,734 13,734 124,000 8,958 8,958 124,000
13 37,197 14,724 14,724 126,000 9,079 9,079 126,000
14 41,157 15,641 15,641 128,000 9,044 9,044 128,000
15 45,315 16,477 16,477 130,000 8,838 8,838 130,000
16 49,681 17,135 17,135 132,000 8,442 8,442 132,000
17 54,265 17,711 17,711 134,000 7,830 7,830 134,000
18 59,078 18,176 18,176 136,000 6,968 6,968 136,000
19 64,132 18,530 18,530 138,000 5,816 5,816 138,000
20 69,439 18,777 18,777 140,000 4,334 4,334 140,000
25 100,227 17,539 17,539 150,000 0 0 0
30 139,522 10,118 10,118 160,000 0 0 0
35 189,673 0 0 0 0 0 0
40 253,680 0 0 0 0 0 0
45 335,370 0 0 0 0 0 0
50 439,631 0 0 0 0 0 0
</TABLE>
-------
(1) For policy years 26 and thereafter, the illustrated net annual rate of
return equals -1.21% on the current basis and -1.46% on the guaranteed
basis.
(2) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency or
in different amounts.
(3) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of an additional premium payment.
(4) Increase is due to adjustment by the corridor percentage. See "Death
Benefits".
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN THIS
PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF
PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL INVESTMENT RATES OF RETURN
MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS,
INCLUDING THE INVESTMENT ALLOCATIONS BY THE OWNER AND DIFFERENT INVESTMENT
RATES OF RETURN FOR THE FUNDS. THE ACCUMULATION VALUE, CASH VALUE AND DEATH
BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
INVESTMENT RATES OF RETURN AVERAGED 0% OVER A PERIOD OF YEARS, BUT FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATION
CAN BE MADE BY JPF SEPARATE ACCOUNT A, OR THE FUNDS THAT THIS ASSUMED
INVESTMENT RATE OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
A-20
<PAGE>
PART II
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities Exchange
Act of 1934, the undersigned Registrant hereby undertakes to file with the SEC
such supplementary and periodic information, documents, and reports as may be
prescribed by any rule or regulation of the Securities and Exchange Commission
heretofore, or hereafter duly adopted pursuant to authority conferred in that
section.
UNDERTAKING REGARDING INDEMNIFICATION
Pursuant to Rule 484(b)(1) of the Securities Act of 1933, insofar as
indemnification for liability arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the Registrant, the
Registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer of controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
REPRESENTATIONS REGARDING THE REASONABLENESS OF FEES AND CHARGES
Jefferson Pilot Financial Insurance Company hereby represents that the fees and
charges deducted under the Flexible Premium Variable Life Insurance Policies
hereby registered by this Registration Statement in the aggregate are reasonable
in relation to the services rendered, the expenses expected to be incurred, and
the risks assumed by Jefferson Pilot Financial Insurance Company.
REPRESENTATION PURSUANT TO RULE 6e-3(T)
This filing is made pursuant to Rule 6e-3(T) under the Investment Company Act of
1940, as amended (the "1940 Act").
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following pages and documents:
The facing sheet
The prospectus consisting of 63 pages
The undertaking to file reports
The undertaking pursuant to Rule 484(b)(1) under the Securities Act of 1933
regarding indemnification
The representation as to fees and charges.
The representation pursuant to Rule 6e-3(T)
The signatures
Written consents of the following persons:
(a) Richard Dielensnyder, FSA, MAAA, contained in Exhibit 6 below.
(b) (to be filed by Amendment).
The following exhibits:
<PAGE>
1. The following exhibits correspond to those required by paragraph A of the
instructions as to exhibits in Form N-8B-2:
(a) (i) Certified Copy of Resolution of the Executive Committee of the Board
of Directors of JP Financial Insurance Company establishing Chubb Separate
Account A. (Incorporated by reference to Registrant's Registration Statement on
Form S-6, filed on December 10, 1993, File No. 33-72830.)
(ii) Certified Copy of Resolution of the Board of Directors of JP Financial
Insurance Company authorizing the registration of a new policy offered through
the Chubb Separate Account A (Incorporated by reference to Pre-Effective
Amendment No. 1 to the Registrant's Registration Statement on Form S-6, filed on
March 13, 1996, File No. 33-01781).
(b) Not Applicable
(c) (i) Form of Distribution Agreement among JP Financial Insurance Company,
Chubb Separate Account A, and Chubb Securities Corporation. (Incorporated by
reference to Registrant's Registration Statement on Form S-6, filed on December
10, 1993, File No. 33-72830.)
(ii) Specimen Variable Contracts Selling Agreement between Jefferson Pilot
Variable Corporation and Selling Broker-Dealers (to be filed by Amendment).
(iii) Schedule of Sales Commissions (to be filed by Amendment)
(d) Not Applicable
(e)
(i) Specimen last survivor flexible premium variable life insurance
policy (to be filed by Amendment)
(ii) Forms of Riders (to be filed by Amendment)
(f) (i) Amended and Restated Charter, with all amendments, of JP Financial
Insurance Company. Incorporated by reference to Exhibit 1(f)(i) of Registrant's
Pre-Effective Amendment No. 1 to the Registration Statement on Form S-6, filed
March 13, 1996, File No. 33-01781.
(ii) By-Laws of JP Financial Insurance Company. (Incorporated by reference to
Exhibit 1(f)(i) of Registrant's Pre-Effective Amendment No. 1 to the
Registration Statement on Form S-6, filed March 13, 1996, File No. 33-01781.
(g) Not Applicable
(h) (i) Participation Agreement by and among Oppenheimer Variable Account
Funds, Chubb Life Insurance Company and Oppenheimer Funds Inc., dated January 8,
1998.*
(ii) Participation Agreement among MFS Variable Trust, Chubb Life Insurance
Company and Massachusetts Financial Services Company dated December 9, 1997.*
(iii) Participation Agreement among Templeton Variable Products Series Fund,
Franklin Templeton Distributors Inc., and Chubb Life Insurance Company, dated
May 1, 1995.*
(iv) Participation Agreement among Variable Insurance Products Fund, Fidelity
Distributors Corporation and Chubb Life Insurance Company dated May 1, 1996.*
(v) Participation Agreement among Variable Insurance Products Fund II,
Fidelity Distributors Corporation and Chubb Life Insurance Company
dated May 1, 1996.*
* Incorporated by reference to Post-Effective Amendment No. 3 to Registrant's
Registration Statement on Form S-6 dated December 1, 1998, File No. 33-01781.
<PAGE>
(i) Not applicable
(j) Specimen Application (to be filed by Amendment)
2. Opinion of counsel as to securities being registered (to be filed by
Amendment).
3. Not applicable.
4. Not applicable.
5. Actuarial opinions and consents of Richard Dielensnyder, FSA, MAAA (to be
filed by Amendment).
6. N/A
7. Procedures Memorandum pursuant to Rule 6e-3(T)(b)(12)(iii) under the 1940
Act (to be filed by Amendment).
8. Form of Reinsurance Agreement. (Incorporated by reference to Registrant's
Pre-effective Amendment No. 1 to the Registration Statement on Form S-6, filed
May 24, 1994, File No. 33-72830).
9. Memorandum regarding reliance on Order of the Commission to deduct the DAC
Tax Charge (Incorporated by reference to Pre-Effective Amendment No.1 to the
Registration Statement on Form S-6 filed on March 13, 1996, File No. 33-01781).
27. Financial Data Schedule. Not Applicable.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant, JPF Separate Account A, has caused this Registration Statement on
Form S-6 to be signed on its behalf by the undersigned thereunto duly
authorized, and its seal to be hereunto affixed and attested, all in Concord,
New Hampshire, on the 21st day of August, 2000.
(Seal) JPF Separate Account A
(Registrant)
Jefferson Pilot Financial Insurance Company
(Depositor)
By: /s/ Dennis R. Glass
---------------------------
Dennis R. Glass
Title: Chief Financial Officer
Attest: /s/ Reggie D. Adamson
---------------------------
Reggie D. Adamson
Chief Accounting Officer
II-58t
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, Jefferson
Pilot Financial Insurance Company has caused this Registration Statement on Form
S-6 to be signed on its behalf by the undersigned thereunto duly authorized, and
its seal to be hereunto affixed and attested, all in Concord, New Hampshire on
the 21st day of August, 2000.
(Seal) Jefferson Pilot Financial Insurance Company
By: /s/ Dennis R. Glass
----------------------------
Dennis R. Glass
Title: Chief Financial Officer
Attest: /s/ Reggie D. Adamson
--------------------------------
Reggie D. Adamson
Chief Accounting Officer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the date indicated.
Signatures Title
/s/ Dennis R. Glass August 21, 2000
----------------------------------- Date ------------------------
Dennis R. Glass Director
/s/ Kenneth C. Mlekosh August 21, 2000
----------------------------------- Date ------------------------
Kenneth C. Mlekosh Director
/s/ David A. Stonecipher August 21, 2000
----------------------------------- Date ------------------------
David A. Stonecipher Director
/s/ Robert D. Bates August 21, 2000
----------------------------------- Date ------------------------
Robert D. Bates Director
II-59t
