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PROSPECTUS
DATED NOVEMBER 16, 1998
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
ISSUED BY
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY AMERICA VARIABLE ACCOUNT L
This prospectus describes a flexible premium variable universal life
insurance policy (individually, the "Policy," and collectively, the "Policies")
offered by MONY Life Insurance Company of America (the "Company"), a
wholly-owned subsidiary of MONY Life Insurance Company ("MONY"). The Policy, for
so long as it remains in force, provides lifetime insurance protection on the
Insured named in the Policy through the Maturity Date. The Policy is designed to
provide maximum flexibility in connection with premium payments and death
benefits by permitting, subject to certain restrictions, the frequency and
amount of premium payments to vary and the death benefit payable under the
Policy to increase or decrease. A Policy may also be surrendered for its Cash
Value.
The Company will pay the death proceeds when the Insured dies if the Policy
is still in force. The death proceeds will equal the death benefit, less any
Outstanding Debt and any charges due during the Grace Period. The Policy will
remain in force as long as the Cash Value remains positive. If at all times
during the first three Policy years, the sum of premiums paid less any
Outstanding Debt and Partial Surrenders taken (excluding their fees) is greater
than or equal to the Minimum Monthly Premium times the number of completed
months this Policy has been in force or its Cash Value is greater than zero, the
Policy and all Rider coverages will not lapse. If the Guaranteed Death Benefit
Rider is purchased, the Specified Amount of the Policy and most Rider coverages
will remain in force for the Guarantee Period if the required premiums (less
Partial Surrenders taken (and their fees)) less Outstanding Debt have been paid.
The Guaranteed Death Benefit Rider is not available in all states.
The Policy permits the choice of two death benefit Options: under Option 1,
the death benefit remains fixed at the Specified Amount chosen; under Option 2,
the death benefit equals the Specified Amount plus Fund Value (under certain
circumstances the death benefit under either Option may be greater). Under
Option 2, the death benefit will vary daily with the investment performance of
the Subaccounts for any Policy Owner who has allocated net premiums to the
Variable Account. Under either Option, for so long as the Policy remains in
force, the death benefit will never be less than the current Specified Amount.
The Policy also permits an owner of the Policy to obtain loans from the
Company in amounts up to 90% of the Cash Value of the Policy, and it permits an
Owner to surrender a part or all of the Policy and receive the Cash Value of the
Policy.
Net premiums may be allocated at the Policy Owner's discretion to one or
more of the Subaccounts that comprise a separate account of the Company called
the MONY America Variable Account L (the "Variable Account"), or to the
Guaranteed Interest Account of the Company. Any portion of a net premium
allocated to one or more of the Subaccounts is used to purchase shares of the
corresponding Portfolios of the MONY Series Fund, Inc. (the "MONY Series Fund")
or the Enterprise Accumulation Trust (the "Accumulation Trust"). The available
Portfolios of the MONY Series Fund currently are: the Money Market Portfolio,
the Government Securities Portfolio, the Intermediate Term Bond Portfolio, and
the Long Term Bond Portfolio. The available Portfolios of the Accumulation Trust
are: the Equity Income Portfolio, the Growth and Income Portfolio, the Growth
Portfolio, the Equity Portfolio, the Managed Portfolio, the Capital Appreciation
Portfolio, the Small Company Growth Portfolio, the Small Company Value
Portfolio, the International Growth Portfolio, and the High Yield Bond
Portfolio. The Loan Account represents amounts set aside as collateral for any
Policy Debt.
To the extent that all or a portion of net premiums are allocated to the
Variable Account, the Fund Value under the Policy will vary based upon the
investment performance of the Subaccounts to which the Fund Value is allocated.
Net premiums allocated to the Guaranteed Interest Account are assets of the
General Account of the Company. The Fund Value in the Guaranteed Interest
Account will accrue interest at an interest rate that is guaranteed by the
Company. No minimum amount of Fund Value is guaranteed, except to the extent
premiums are allocated to the Guaranteed Interest Account.
A Policy may be returned during the Right to Return Policy Period (see
"Right to Examine a Policy -- Right to Return Policy Period," page 16), during
which time net premium payments earn an interest rate guaranteed by the Company.
It may not be advantageous to replace existing insurance with the Policy.
This prospectus generally describes only the portion of the Policy involving
the Variable Account. For a brief summary of the Guaranteed Interest Account,
see "The Guaranteed Interest Account," page 41.
In pursuing its investment objective, the High Yield Bond Subaccount
purchases shares of the High Yield Bond Portfolio which may invest significantly
in lower rated bonds, commonly referred to as "Junk Bonds". Bonds of this type
are considered to be speculative with regard to the payment of interest and
return of principal. Investment in these types of securities have special risks
and, therefore, may not be suitable for all investors. Investors should
carefully assess the risks associated with allocating premium payments to this
subaccount.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION
OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THIS PROSPECTUS IS ACCOMPANIED BY THE CURRENT PROSPECTUSES FOR MONY
SERIES FUND, INC. AND ENTERPRISE ACCUMULATION TRUST. THESE
PROSPECTUSES SHOULD BE READ CAREFULLY AND RETAINED FOR
FUTURE REFERENCE.
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MONY LIFE INSURANCE COMPANY OF AMERICA
1740 BROADWAY
NEW YORK, NEW YORK 10019
1-800-487-6669
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TABLE OF CONTENTS
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TABLE OF CONTENTS..................... i
IMPORTANT TERMS....................... 1
SUMMARY OF THE POLICY................. 3
Purpose of the Policy............... 3
Policy Values....................... 3
The Death Benefit................... 3
Premium Features.................... 4
Allocation Options.................. 4
Transfer of Fund Value.............. 5
Policy Loans........................ 5
Full Surrender...................... 5
Partial Surrender................... 5
Right to Return Policy Period....... 6
Grace Period and Lapse.............. 6
Charges and Deductions.............. 6
Deductions from Premiums......... 6
Daily Deduction from the Variable
Account........................ 6
Deductions from Fund Value....... 7
Surrender Charge................. 7
Transaction and Other Charges.... 8
Tax Treatment of Increases in Fund
Value............................ 8
Tax Treatment of Death Benefit...... 8
The Guaranteed Interest Account..... 8
Contacting the Company.............. 8
INFORMATION ABOUT THE COMPANY AND THE
VARIABLE ACCOUNT.................... 8
MONY Life Insurance Company of
America.......................... 8
Year 2000 Issue..................... 9
MONY America Variable Account L..... 9
The Funds........................... 10
Purchase of Portfolio Shares by the
Variable Account................. 11
The Money Market Portfolio....... 12
The Government Securities
Portfolio...................... 12
The Intermediate Bond
Portfolio...................... 12
The Long Term Bond Portfolio..... 12
The Equity Income Portfolio...... 13
The Growth and Income
Portfolio...................... 13
The Growth Portfolio............. 13
The Equity Portfolio............. 13
The Capital Appreciation
Portfolio...................... 13
The Managed Portfolio............ 13
The Small Company Growth
Portfolio...................... 13
The Small Company Value
Portfolio...................... 13
The International Growth
Portfolio...................... 13
The High Yield Bond Portfolio.... 13
THE POLICY............................ 14
Application for a Policy............ 14
Temporary Insurance Coverage..... 14
Initial Premium Payment.......... 15
Policy Date...................... 15
Risk Classification.............. 15
Right to Examine a Policy -- Right
to Return Policy Period.......... 16
Premiums............................ 16
Premium Flexibility.............. 16
Scheduled Premium Payments
(Planned Premium Payments)..... 16
Guaranteed Death Benefit Rider... 17
Modified Endowment Contracts..... 17
Unscheduled Premium Payments..... 17
Premium Payments Affect the
Continuation of the Policy..... 18
Allocation of Net Premiums.......... 18
Death Benefits Under the Policy..... 18
Option 1. ....................... 19
Option 2. ....................... 19
Examples of Options 1 and 2...... 19
Changes in Death Benefit
Option......................... 20
Changes in Specified Amount......... 20
Increases........................ 21
Decreases........................ 21
Guaranteed Death Benefit............ 21
Other Optional Insurance Benefits... 22
Primary Insured Term Rider....... 22
Waiver of Monthly Deductions
Rider.......................... 22
Waiver of Specified Premium
Rider.......................... 23
Accidental Death and
Dismemberment Benefit Rider.... 23
Purchase Option Rider............ 23
Spouse's Term Rider.............. 23
Children's Term Insurance
Rider.......................... 23
Benefits at Maturity............. 23
Policy Values....................... 24
Fund Value....................... 24
Cash Value....................... 24
Determination of Fund Value......... 24
Calculating Unit Values for Each
Subaccount....................... 25
Transfer of Fund Value.............. 25
Right to Exchange Policy............ 25
Policy Loans........................ 26
Full Surrender...................... 27
Partial Surrender................... 27
Grace Period and Lapse.............. 28
Special Rule for First Three
Policy Years................... 28
If Guaranteed Death Benefit Rider
Is Not in Effect............... 28
If Guaranteed Death Benefit Rider
Is in Effect................... 29
Reinstatement.................... 29
CHARGES AND DEDUCTIONS................ 30
Deductions from Premiums............ 30
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Sales Charge..................... 30
Tax Charges...................... 30
Daily Deductions from the Variable
Account.......................... 30
Mortality and Expense Risk
Charge......................... 30
Monthly Deductions from Fund
Value............................ 31
Cost of Insurance................ 31
Administrative Charge............ 31
Per $1,000 Specified Amount
Charge......................... 32
Guaranteed Death Benefit
Charge......................... 32
Other Optional Insurance Benefits
Charges........................ 32
Surrender Charge.................... 32
Effect of Changes in Specified
Amount on Charges.............. 33
Corporate Purchasers................ 33
Transaction and Other Charges....... 33
Fees and Expenses of the Fund....... 33
Guarantee of Certain Charges........ 34
OTHER INFORMATION..................... 34
Federal Income Tax Considerations... 34
Definition of Life Insurance..... 35
Diversification Requirements..... 35
Tax Treatment of Policies........ 35
Conventional Life Insurance
Policies....................... 36
Modified Endowment Contracts..... 36
Reasonableness Requirement for
Charges........................ 37
Pension and Profit-Sharing
Plans.......................... 37
Other Employee Benefit
Programs....................... 38
Other............................ 38
Charge for Company Income Taxes..... 38
Voting of Fund Shares............... 38
Disregard of Voting Instructions.... 39
Report to Policy Owners............. 39
Substitution of Investment and Right
to Change Operations............. 39
Changes to Comply with Law.......... 40
PERFORMANCE INFORMATION............... 40
THE GUARANTEED INTEREST ACCOUNT....... 41
General Description................. 41
Death Benefit....................... 41
Policy Charges...................... 41
Transfers........................... 42
Surrenders and Policy Loans......... 42
MORE ABOUT THE POLICY................. 42
Ownership........................... 42
Joint Owners..................... 42
Beneficiary......................... 43
The Policy.......................... 43
Notification and Claims Procedures.. 43
Payments............................ 43
Payment Plan/Settlement Provisions.. 43
Payment in Case of Suicide.......... 44
Assignment.......................... 44
Errors on The Application........... 44
Incontestability.................... 44
Policy Illustrations................ 44
Distribution of The Policy.......... 44
MORE ABOUT THE COMPANY................ 46
Management.......................... 46
State Regulation.................... 46
Telephone Transfer Privileges....... 46
Legal Proceedings................... 47
Legal Matters....................... 47
Registration Statement.............. 47
Independent Accountants............. 47
Financial Statements................ 47
Index to Financial Statements......... F-1
Appendix A............................ A-1
Appendix B............................ B-1
Appendix C............................ C-1
Appendix D............................ D-1
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IMPORTANT TERMS
Administrative Office -- The Company's administrative office at 1740
Broadway, New York, New York, 10019. "Administrative Office" also includes the
Company's Syracuse Operations Center at 1 MONY Plaza, Syracuse, N.Y. 13202.
Age -- The Insured's age as of his or her last birthday on the Policy Date,
increased by the number of complete Policy Years elapsed.
Beneficiary -- The person or persons named by the Policy Owner in the
application or by proper later designation to receive the death benefit proceeds
upon the death of the Insured.
Business Day -- Each date on which the Variable Account is valued, which
currently includes each day that the New York Stock Exchange is open for trading
or any other day on which there is sufficient trading in the securities of a
Portfolio of the Funds to affect materially the unit value of the corresponding
Subaccount of the Variable Account.
Cash Value -- The Fund Value for the Policy less the Surrender Charge and
less any Outstanding Debt.
Company, the -- MONY Life Insurance Company of America.
Funds -- MONY Series Fund, Inc. and Enterprise Accumulation Trust.
Fund Value -- The Fund Value is the sum of the amounts under the Policy
held in each Subaccount of the Variable Account and the Guaranteed Interest
Account, as well as any amount set aside in the Company's Loan Account, and any
interest thereon, to secure Outstanding Debt.
General Account -- All assets of the Company other than those allocated to
the Variable Account or to any other segregated separate account of the Company.
Guaranteed Interest Account -- An account that is part of Company's General
Account to which all or a portion of net premium payments may be allocated for
accumulation at a fixed rate of interest (which may not be less than 4.5%)
declared by Company.
Guarantee Period -- The period during which the Specified Amount is
guaranteed under the Guaranteed Death Benefit Rider. The Guaranteed Death
Benefit Rider is not available in all states. See "Guaranteed Death Benefit",
page 21.
Insured -- The person upon whose life the Policy is issued and whose death
is the contingency upon which the death benefit proceeds are payable.
Loan Account -- An account to which amounts are transferred from the
Subaccounts and the Guaranteed Interest Account as collateral for any
Outstanding Debt. The Loan Account is part of the Company's General Account, and
it accumulates interest at a rate not less than 4.5%.
Maturity Date -- The Policy Anniversary on which the Insured is Age 100.
Minimum Monthly Premium -- The amount determined by the Company which is
necessary to keep the Policy in force for the first three Policy Years and in
certain circumstances, for the first three Policy Years following an increase in
Specified Amount.
Monthly Anniversary Day -- The day each month on which the monthly
deduction is due against the Fund Value. The first Monthly Anniversary Day is
the Policy Date.
Outstanding Debt -- The unpaid loan balance including accrued loan interest
due and unpaid.
Partial Surrender -- The surrender of a portion of the Policy. At least
$500 of Cash Value must remain after a Partial Surrender, or a full surrender of
the Policy will be required.
Planned Premium Payments -- The premium amount specified on the application
as the amount the Policy Owner intends to pay at selected intervals over a
specified period of time. Within specified limits, premiums in excess of Planned
Premium Payments may be paid. Planned Premium Payments may be
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changed at any time. For policies offered or issued for delivery outside the
Commonwealth of Massachusetts, see the term "Scheduled Premium Payments".
Policy Date -- The date set forth on page 1 of the Policy that is used to
determine the Monthly Anniversary Day, Policy months, and Policy years. Policy
monthly, quarterly, semiannual and annual Anniversaries are measured from the
Policy Date. Each Policy month starts on the same date in each calendar month as
that specified as the Policy Date. Where the Policy Date is the 29th, 30th, or
31st of a month, and there is no such date in a calendar month, the Policy month
for such month will start on the last day of that calendar month.
Policy Owner or Owner -- The person who owns the Policy. The Policy Owner
will be the Insured unless otherwise stated in the application. If the Policy
has been absolutely assigned, the assignee becomes the Policy Owner. A
collateral assignee is not the Owner.
Portfolio(s) -- The separate investment portfolios of the Funds.
Rider -- The addendum to a Policy which adds an optional insurance benefit
to the Policy.
Right to Return Policy Period -- The Period which follows the application
for the Policy and its issuance to the Policy Owner. During the Right to Return
Policy Period which follows the issuance of the Policy, the Policy Owner may
cancel the Policy and receive a refund.
Scheduled Premium Payments -- The premium amount specified on the
application as the amount the Policy Owner intends to pay at fixed intervals
over a specified period of time. Within specified limits, premiums in excess of
the Scheduled Premium Payments may be paid. Scheduled Premium Payments may be
changed at any time. For policies offered or issued for delivery in the
Commonwealth of Massachusetts, see the term "Planned Premium Payments".
Specified Amount -- The minimum Death Benefit for so long as the Policy
remains in force. The Specified Amount may be increased or decreased under
certain circumstances.
Subaccounts -- The subdivisions of the Variable Account. Each Subaccount
invests exclusively in the shares of a corresponding Portfolio of one of the
Funds.
Surrender Charge -- A contingent deferred charge. The Surrender Charge is
determined for the initial Specified Amount of the Policy and for each increase
in Specified Amount.
Transaction Date -- The date the Company receives a premium or acceptable
written or telephone request at the Administrative Office. If the premium or
request reaches the Administrative Office on a day which is not a Business Day
or after the close of business on a Business Day (i.e., after 4:00 p.m. Eastern
Time or such other time as determined by the Company), the Transaction Date will
be the next Business Day.
Unit -- The bookkeeping measure used to value the amounts allocated to the
Subaccounts of the Variable Account.
Unit Value -- The value of the Units of each Subaccount of the Variable
Account. Unit Values are calculated for each Subaccount on each Business Day.
Valuation Period -- The period that starts at the close of a Business Day
and ends at the close of the next succeeding Business Day.
Variable Account -- The Company's Variable Account L, a separate investment
account established by the Company to receive and invest the net premiums paid
under the Policy.
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SUMMARY OF THE POLICY
This summary is intended to provide a brief overview of the more
significant aspects of the Policy. Further detail is provided in this prospectus
and in the Policy. Unless the context indicates otherwise, the discussion in
this summary and the remainder of the prospectus relates to the portion of the
Policy involving the Variable Account. The Guaranteed Interest Account is
briefly described under "The Guaranteed Interest Account," on page 41 and in the
Policy.
PURPOSE OF THE POLICY
The Policy offers a Policy Owner insurance protection on the life of the
Insured through the Maturity Date for so long as the Policy is in force. A
maturity benefit will be paid in lieu of a death benefit when the Policy reaches
the Maturity Date during the Insured's lifetime. Like traditional fixed life
insurance, the Policy provides for a death benefit equal to its Specified
Amount, accumulation of Cash Value, and surrender and loan privileges. Unlike
traditional fixed life insurance, the Policy offers a choice of investment
alternatives and an opportunity for the Policy's Fund Value and its death
benefit, to grow based on investment results. The Policy is a flexible premium
policy, so that, unlike many other insurance policies, a Policy Owner may choose
the amount and frequency of premium payments, within certain limits.
POLICY VALUES
A Policy Owner may allocate net premium payments among the various
Subaccounts that comprise the Variable Account and that invest in corresponding
Portfolios of the MONY Series Fund and the Accumulation Trust. A Policy Owner
may also allocate net premium payments to the Guaranteed Interest Account. The
Loan Account represents amounts set aside in the General Account of the Company
as collateral for Outstanding Debt.
The Fund Value of the Policy is the sum of amounts allocated to the
Subaccounts of the Variable Account, the Guaranteed Interest Account and the
Loan Account. The Cash Value of the Policy is the Fund Value less the Surrender
Charge less any Outstanding Debt.
Depending on the investment experience of the selected Subaccounts, the
Fund Value may increase or decrease on any day. The death benefit may or may not
increase or decrease depending upon several factors, including the death benefit
Option selected by the Policy Owner, although the death benefit will never
decrease below the Specified Amount while the Policy is in force. There is no
guarantee that the Policy's Fund Value and death benefit will increase. The
Policy Owner bears the investment risk on that portion of the net premiums and
Fund Value allocated to the Variable Account.
The Policy will remain in force until the earliest of the Maturity Date,
the death of the Insured, or a full surrender of the Policy, unless, before any
of these events, the Policy lapses and a Grace Period expires without sufficient
additional premium payment or repayment of Outstanding Debt by the Policy Owner.
Generally, the Policy will remain in force only as long as the Cash Value
is sufficient to pay all the monthly deductions. However, if the premiums paid
meet the Minimum Monthly Premium requirement during the first three Policy
years, the Policy and all Rider coverages will remain in force even if the Cash
Value of the Policy is zero. If an increase in Specified Amount occurs during
the first three Policy years, the Minimum Monthly Premium requirement is
extended to the three Policy years following the effective date of the increase.
If the Guaranteed Death Benefit Rider is purchased, the Specified Amount of the
Policy and most Rider coverages will remain in force for the Guarantee Period if
the required premiums have been paid. The amount by which the death benefit may
exceed the Specified Amount is not guaranteed to remain in force during a
Guarantee Period. The Guaranteed Death Benefit is not available on Policies
offered to residents of, or issued for delivery in, the Commonwealth of
Massachusetts or the States of New Jersey and Texas.
THE DEATH BENEFIT
The minimum Specified Amount for a Policy is $50,000. A Policy Owner may
elect one of two Options to calculate the amount of death benefit payable under
the Policy, which may increase the death benefit. Under
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Option 1, the death benefit will be equal to the Specified Amount of the Policy,
or, if greater, the Fund Value (determined as of the date of the Insured's
death) multiplied by a death benefit percentage required by the federal tax law
definition of life insurance. Under Option 2, the death benefit will be equal to
the Specified Amount of the Policy plus the Fund Value (determined as of the
date of the Insured's death) or, if greater, the Fund Value (determined as of
the date of the Insured's death) multiplied by the death benefit percentage.
Policy Owners seeking to have favorable investment performance reflected in
increasing Fund Value should choose Option 1; Policy Owners seeking to have
favorable investment performance reflected in increasing insurance coverage
should choose Option 2. A Policy Owner may change the death benefit Option and
increase or decrease the Specified Amount, subject to certain conditions. See
"Death Benefits Under the Policy," page 18.
The Policy Owner may, at time of application, choose to purchase the
Guaranteed Death Benefit Rider. The Rider provides a guarantee that the
Specified Amount and most Rider coverages will remain in force for the Guarantee
Period regardless of the amount of the Policy's Cash Value. The Rider provides a
Guarantee Period to the Insured's Age 70 or ten years from the Policy Date,
whichever is later. Additional premium will be required if the Rider is chosen.
An extra charge will also be deducted from the Fund Value each month the Rider
is in effect. See "Guaranteed Death Benefit," page 21. The Guaranteed Death
Benefit is not available on Policies offered to residents of, or issued for
delivery in, the Commonwealth of Massachusetts or the States of New Jersey and
Texas.
PREMIUM FEATURES
The Company requires a Policy Owner to pay an initial premium equal to at
least the Minimum Monthly Premium that is defined by the Company. Thereafter,
subject to certain limitations, a Policy Owner may choose the amount and
frequency of premium payments. The Policy, therefore, provides the Policy Owner
with the flexibility to vary premium payments to reflect varying financial
conditions.
When applying for a Policy, a Policy Owner will determine a Scheduled
Premium Payment that provides for the payment of level premiums in regular
intervals over a specified period of time. Each Policy Owner will receive a
premium reminder notice for the Scheduled Premium Payment on either an annual,
semiannual, or quarterly basis, at the option of the Policy Owner; however, the
Policy Owner may not be required to pay Scheduled Premium Payments. Premiums may
be paid monthly under the MONYMatic plan where the Owner authorizes the Company
to withdraw Scheduled Premium Payments from the Owner's checking account each
month. (For Policies offered to residents of, or issued for delivery in, the
Commonwealth of Massachusetts, the Policy Owner will be asked to indicate on the
application the amount the Policy Owner intends to pay at selected intervals.
For those Policy Owners, the term "Scheduled Premium Payment" used in this
Prospectus, refers to Planned Premium Payments.)
The amount, frequency, and period of time over which a Policy Owner pays
premiums may affect whether or not the Policy will be classified as a modified
endowment contract, which is a type of life insurance contract subject to
different tax treatment for certain pre-death distributions. For more
information on the tax treatment of life insurance contracts, including those
classified as modified endowment contracts, see "Federal Income Tax
Considerations," page 34.
Payment of the Scheduled Premiums will not guarantee that a Policy will
remain in force. See "Grace Period and Lapse," page 28. The Company also may
reject a part of, or otherwise limit, any premium payment that would result in
an immediate increase in the net amount at risk under the Policy, although such
a premium may be accepted with satisfactory evidence of insurability.
ALLOCATION OPTIONS
Premium payments and Cash Values may be allocated by the Policy Owner among
the various Subaccounts. Each of the Subaccounts uses premium payments and Fund
Values to purchase shares of a designated portfolio (a "Portfolio") of the MONY
Series Fund or the Enterprise Accumulation Trust (the "Accumulation Trust")
(collectively the "Funds"). The available Portfolios of the Funds, each of which
has a different investment objective, are the Money Market Portfolio, the
Government Securities Portfolio, the
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Intermediate Term Bond Portfolio, the Long Term Bond Portfolio, the Equity
Income Portfolio, the Growth and Income Portfolio, the Growth Portfolio, the
Equity Portfolio, the Managed Portfolio, the Capital Appreciation Portfolio, the
Small Company Growth Portfolio, the Small Company Value Portfolio, the
International Growth Portfolio, and the High Yield Bond Portfolio. See "The
Funds," page 11.
The Company is the investment manager of the MONY Series Fund. Enterprise
Capital Management, Inc., a subsidiary of MONY, is the investment manager of the
Accumulation Trust. 1740 Advisers, Inc., an affiliate of MONY, is the
sub-investment adviser of the Equity Income Portfolio; Retirement System
Investors Inc. is the sub-investment adviser of the Growth and Income Portfolio;
Montag & Caldwell, Inc. is the sub-investment adviser of the Growth Portfolio.
OpCap Advisors, a subsidiary of Oppenheimer Capital, is the sub-investment
adviser, of the Equity and Managed Portfolios; Provident Investment Counsel,
Inc. is the sub-investment adviser of the Capital Appreciation Portfolio;
Pilgrim Baxter & Associates, Ltd. is the sub-investment adviser of the Small
Company Growth Portfolio; Gabelli Asset Management, Inc. is the sub-investment
adviser of the Small Company Value Portfolio; Brinson Partners, Inc. is the
sub-investment adviser of the International Growth Portfolio; and Caywood-Scholl
Capital Corporation is the sub-investment adviser of the High Yield Bond
Portfolio
The Policy Owner may choose to allocate net premium payments to any or all
of the available Subaccounts constituting the Variable Account, and to the
Guaranteed Interest Account.
TRANSFER OF FUND VALUE
The Policy Owner may transfer Fund Value among the Subaccounts, and,
subject to certain other limitations, between the Subaccounts and the Guaranteed
Interest Account. Transfers may be made by telephone if an authorization for
telephone transfer form has been properly completed and signed and filed at the
Company's Syracuse Operations Center. See "Transfer of Fund Value," page 25.
POLICY LOANS
The Policy Owner may borrow from the Company an amount up to 90% of the
Policy's Cash Value. The Policy will be the only security required for a loan.
See "Policy Loans," page 26.
The amount of any Outstanding Debt is subtracted from the Death Benefit.
Outstanding Debt is repaid from the proceeds of a Full Surrender. See "Full
Surrender," page 27. Outstanding Debt may also impact the continuation of the
Policy. See "Grace Period and Lapse," page 28.
FULL SURRENDER
The Owner can surrender the Policy during the life of the Insured and
receive its Cash Value, which is equal to the Fund Value less the Surrender
Charge and less any Outstanding Debt. See "Full Surrender," page 27.
PARTIAL SURRENDER
Partial Surrenders are available under the Policy so long as the Cash Value
remaining after giving effect to the requested surrender and any fees which may
be assessed as a result of the Partial Surrender exceeds any minimum
requirements. If a Partial Surrender is for an amount which exceeds the amount
available, it will be rejected and the request will be returned to the Policy
Owner. A Partial Surrender will decrease the Specified Amount of a Policy if the
Owner has elected death benefit Option 1, and it will decrease the Death Benefit
if the Death Benefit is greater than the Specified Amount under either Option 1
or 2. See "Partial Surrender," at page 27.
Among other restrictions, Partial Surrenders must be for at least $500, and
the Policy's Cash Value after the surrender must be at least $500. A Partial
Surrender Fee of $10 will be assessed against the remaining Fund Value. No
Surrender Charge is assessed upon a Partial Surrender.
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RIGHT TO RETURN POLICY PERIOD
A Policy Owner may obtain a full refund of the premium paid if the Policy
is returned within 10 days (or longer in certain states) after the Owner
receives it. During the Right to Return Policy Period, net premiums will be
retained in the Company's General Account and will earn interest at an annual
rate of 4.5%. See "Right to Examine a Policy -- Right to Return Policy Period",
page 16.
GRACE PERIOD AND LAPSE
Payment of Scheduled Premium Payments will not guarantee that a Policy will
remain in force. Instead, unless the Guaranteed Death Benefit Rider has been
elected and all requirements have been met, the duration of the Policy depends
upon the Policy's Cash Value. However, during the first three Policy years, if
on each Monthly Anniversary Day the sum of premiums paid, less the sum of
Partial Surrenders (excluding any fees relating thereto) and any Outstanding
Debt is greater than or equal to the Minimum Monthly Premium times the number of
completed Policy months or the Policy's Cash Value is greater than zero, the
Policy is guaranteed not to lapse. If an increase in Specified Amount occurs
during the first three Policy years, the Minimum Monthly Premium requirement
will be extended to the three Policy years following the date the increase took
effect. Even if Scheduled Premium Payments are made, if either of these two
provisions do not apply, the Policy will lapse any time the Cash Value is
insufficient to pay the current monthly deduction and a Grace Period expires
without sufficient payment.
While the Guaranteed Death Benefit Rider is in force, if on any Monthly
Anniversary Day the total premiums received less any Partial Surrenders and
their fees, less Outstanding Debt do not exceed the premiums required under the
Guaranteed Death Benefit Rider (See "Guaranteed Death Benefit", page 21), a
notice will be sent which will give the Policy Owner 61 days from the date
thereof to make additional payments to the Rider. See "Grace Period and Lapse",
page 28.
The Guaranteed Death Benefit is not available on Policies offered to
residents of, or issued for delivery in, the Commonwealth of Massachusetts or
the States of New Jersey and Texas, and therefore, Grace Period and Lapse will
be treated as if the Guaranteed Death Benefit Rider is not in effect. See "Grace
Period and Lapse", page 28.
CHARGES AND DEDUCTIONS
Deductions from Premiums
Certain charges are deducted from each premium payment under a Policy prior
to applying the net premium to the Fund Value. These charges consist of the
following items:
Sales Charge -- Sales charge varies based on the total of the Specified
Amount plus Term Insurance Rider amount in force on the Policy Date. For total
amounts less than $500,000, the sales charge is equal to 4% of each premium
paid. For total amounts of $500,000 or more, the sales charge is equal to 3% of
each premium paid.
Tax Charge -- A state and local premium tax charge, currently equal to
2.25% of each premium, and a charge related to the federal tax treatment of
deferred acquisition costs currently equal to 1.5% of each premium will be
deducted to compensate the Company for these taxes. Actual state and local
premium taxes vary, ranging from 0% to 4%. The Company does not expect to make a
profit from this charge. See "Tax Charges", page 30.
Daily Deduction from the Variable Account
A charge is deducted from the Variable Account each day for the Mortality
and Expense Risk Charge as described below.
Mortality and Expense Risk Charge -- A charge is deducted daily from each
Subaccount of the Variable Account for mortality and expense risks assumed by
the Company. This charge is guaranteed not to exceed
6
<PAGE> 11
.000959% of the amount in the Subaccount, which is equivalent to an annual rate
of .35% of Subaccount value.
Deductions from Fund Value
A charge called the Monthly Deduction is deducted from the Fund Value on
each Monthly Anniversary Day. The Monthly Deduction consists of the following
items:
Cost of Insurance -- This monthly charge compensates the Company for
providing life insurance coverage for the Insured. The amount of the charge is
equal to a current cost of insurance rate multiplied by the net amount at risk
under the Policy at the beginning of each Policy Month.
Administrative Charge -- An administrative charge of $5.00 is deducted each
month.
Monthly per $1,000 Specified Amount Charge -- For the first 15 policy years
following issue or increase in Specified Amount, a per $1,000 of Specified
Amount charge will apply. These per $1,000 of Specified Amount charges differ
based on issue age of the coverage segment, gender and smoking status. The
monthly per $1,000 factors are shown in Appendix B.
Guaranteed Death Benefit Charge -- If the Guaranteed Death Benefit Rider
has been elected, a charge of $0.01 per thousand of Policy Specified Amount and
certain Rider amounts per month will be charged during the Guarantee Period. The
Guaranteed Death Benefit Rider is not available on Policies offered to residents
of, or issued for delivery in, the Commonwealth of Massachusetts or the States
of New Jersey and Texas.
Optional Insurance Benefits Charges -- The Monthly Deduction will include
charges for any other optional insurance benefits added to the Policy by Rider.
Surrender Charge
The Company will assess a Surrender Charge against Fund Value upon Full
Surrender of a Policy. The Surrender Charge is based on a factor per $1,000 of
initial Specified Amount and grades to zero based on a grading schedule. The
factors per $1,000 of initial Specified Amount vary by issue age, gender, and
underwriting class. The grading percentages (as shown below) vary based on issue
age and number of full years since the Policy was issued. For a description of
the effect of changes in Specified Amount on the Surrender Charge, see
"Surrender Charge", page 32.
<TABLE>
<CAPTION>
GRADING PERCENTAGES PERCENT FOR ISSUE PERCENT FOR ISSUE
POLICY YEARS AGES 0-75 AGES 76-85
------------------- ----------------- -----------------
<S> <C> <C>
1-3................................................... 80% 80%
4..................................................... 80 70
5..................................................... 80 60
6..................................................... 80 50
7..................................................... 80 40
8..................................................... 70 30
9..................................................... 60 20
10.................................................... 50 10
11.................................................... 40 0
12.................................................... 30 0
13.................................................... 20 0
14.................................................... 10 0
15+................................................... 0 0
</TABLE>
As an example of the Surrender Charge calculation, if a Male Insured Age 35
purchases a Policy with a Specified Amount of $100,000, the per $1,000 of
initial Specified Amount factor, based upon the assumptions described above,
would be $7.25 (Preferred, nonsmoker, Death Benefit Option 1). The maximum
Surrender Charge during the first seven Policy years would be 80% of (100 X
7.25), or $580,000.
The maximum surrender charge per $1,000 of initial Specified Amount factor
would be $64.00 based upon a Policy with a Specified Amount of $100,000 if the
Policy were purchased by a Male Insured Age 85, Standard Smoker.
7
<PAGE> 12
Transaction and Other Charges
A Partial Surrender Fee of $10 will be assessed against the remaining Fund
Value for any Partial Surrender. In addition, the Company reserves the right to
charge a fee of $25 for each transfer of Fund Value.
The operating expenses of the Variable Account are paid by the Company and
certain charges, deductions, and fees are made or imposed to compensate the
Company for these expenses and for the risk that the charges, deductions, and
fees may not be sufficient to compensate the Company. Investment advisory fees
and operating expenses of the Fund are paid by the Fund. For a description of
these charges, see "Charges and Deductions," page 30.
TAX TREATMENT OF INCREASES IN FUND VALUE
The Fund Value under the Policy is currently subject to the same federal
income tax treatment as the cash value under fixed life insurance. Therefore,
generally the Policy Owner will not be deemed to be in constructive receipt of
the Fund Value unless and until the Policy Owner is deemed to be in receipt of a
distribution from the Policy. For information on the tax treatment of the Policy
and on the tax treatment of a Full Surrender, a Partial Surrender, or a Policy
loan, see "Federal Income Tax Considerations," page 34.
TAX TREATMENT OF DEATH BENEFIT
The Death Benefit under the Policy is currently subject to federal income
tax treatment consistent with that of fixed life insurance. Therefore, generally
the Death Benefit will be fully excludable from the gross income of the
Beneficiary under the Internal Revenue Code. See "Federal Income Tax
Considerations," page 34.
THE GUARANTEED INTEREST ACCOUNT
The Policy Owner may allocate all or a portion of net premium payments and
transfer Fund Value to the Guaranteed Interest Account, within specified limits.
Amounts allocated to the Guaranteed Interest Account are held in the Company's
General Account. The Company guarantees that the Fund Value allocated to the
Guaranteed Interest Account will be credited interest daily at a rate equivalent
to an effective annual rate of 4.5%. In addition, the Company may in its sole
discretion pay interest in excess of the guaranteed amount. See "The Guaranteed
Interest Account," page 41.
CONTACTING THE COMPANY
All written requests, notices, and forms required by the Policies, and any
questions or inquiries should be directed to the Company's Operations Center at
1 MONY Plaza, Syracuse, New York 13202.
INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY Life Insurance Company of America (the "Company") is a stock life
insurance company organized in the State of Arizona. The Company is currently
licensed to sell life insurance and annuities in 49 states (not including New
York), the District of Columbia, the U.S. Virgin Islands, and Puerto Rico. The
Company is the corporate successor of Vico Credit Life Insurance Company,
incorporated in Arizona on March 6, 1969.
The Company is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). MONY was organized as a mutual life insurance company under the laws
of the State of New York in 1842. MONY converted to a stock life insurance
company in November 1998 through demutualization and assumed its present name at
that time. In addition, MONY became a wholly-owned subsidiary of The MONY Group
Inc. at that time. The principal office of MONY is located at 1740 Broadway, New
York, New York 10019. This conversion will not have any material effect on the
Company, the MONY America Variable Account L, or the Policies.
8
<PAGE> 13
At November 1, 1998, the rating assigned to the Company by A. M. Best
Company, Inc., an independent insurance company rating organization, was A-
(Excellent) based upon an analysis of financial condition and operating
performance through the end of 1997. At the same date, MONY was rated A-
(Excellent) on the same basis. The A. M. Best rating of the Company should be
considered only as bearing on the ability of the Company to meet its obligations
under the Policies.
The Company has a service agreement with MONY whereby MONY provides the
Company with such personnel, facilities, etc., as are reasonably necessary for
the conduct of the Company's business. These services are provided on a cost
reimbursement basis. The Company intends to administer the Policies itself,
utilizing the services provided by MONY to meet its obligations under the
Policies.
MONY Securities Corp., a wholly owned subsidiary of MONY is the principal
underwriter for the Policies.
YEAR 2000 ISSUE
The Year 2000 issue is the result of widespread use of computer programs
which use two digits (rather than four) to define the applicable year. Such
programming was a common industry practice designed to avoid the significant
costs associated with additional mainframe computer capacity which would have
been necessary to accommodate a four digit year field. As a result, any of the
Company's computer systems that have time-sensitive software may recognize a
date using "00" as the year 1900 rather than the year 2000. This could result in
a major system failure or in miscalculations.
The Company has conducted a comprehensive review of its computer systems to
identify the systems that could be affected by the "Year 2000" issue and has
developed and implemented a plan to resolve the issue. The Company currently
believes that, with modifications to existing software and converting to new
software, the Year 2000 problem will not pose significant operational problems
for the Company's computer systems. However, if such modifications and
conversions are not completed on a timely basis, the Year 2000 problem may have
a material impact on the operations of the Company. Further, even if the Company
completes such modifications and conversions, there can be no assurance that the
failure by vendors or other third parties to solve the Year 2000 problem will
not have a material impact on the operations of the Company.
MONY Series Fund and the Accumulation Trust have reviewed with their
respective investment advisers and other suppliers of services the status of
their Year 2000 issue. MONY Series Fund and the Accumulation Trust prospectuses,
which are included in the Prospectus Portfolio, contain the results of those
status reviews. See MONY Series Fund prospectus at page 15; Accumulation Trust
prospectus at page 23.
MONY AMERICA VARIABLE ACCOUNT L
The MONY America Variable Account L (the "Variable Account") is a separate
investment account of the Company and at present is used only to support
flexible premium variable life insurance policies. The assets in the Variable
Account are kept separate from the General Account assets and other separate
accounts of the Company.
The Company owns the assets in the Variable Account and is required to
maintain sufficient assets in the Variable Account with a total market value
equal to the Policy liabilities funded by the Variable Account. The Variable
Account is divided into subdivisions called Subaccounts. The income, gains, or
losses, realized or unrealized, of the Variable Account are credited to or
charged against the assets held in the Variable Account without regard to the
other income, gains, or losses of the Company. Assets in the Variable Account
attributable to the reserves and other liabilities under the Policies are not
chargeable with liabilities arising from any other business that the Company
conducts. Assets held in the Company's General Account, including Fund Values of
the Policy during the Right to Return Period and Fund Values allocated by the
Policy Owner to the Guaranteed Interest Account, are subject to the liabilities
arising from the businesses the Company conducts. However, the Company may
transfer to its General Account any assets which exceed anticipated obligations
of the Variable Account. All obligations arising under the Policy are general
corporate obligations of the Company. The Company may accumulate in the Variable
Account proceeds from various Policy charges and investment results applicable
to those assets.
9
<PAGE> 14
The Variable Account was established on March 27, 1987 under Arizona law
under the authority of the Board of Directors of Company. The Variable Account
is registered as a unit investment trust with the SEC. Such registration does
not involve any supervision by the SEC of the administration or investment
practices or policies of the Account.
There are currently fourteen Subaccounts within the Variable Account
available to the Policyholder. Each Subaccount invests exclusively in shares of
a designated Portfolio of the Funds. For example, the Long Term Bond Subaccount
invests solely in shares of the MONY Series Fund, Inc. Long Term Bond Portfolio.
These Portfolios are available to serve only as the underlying investment for
variable annuity and variable life insurance contracts issued through separate
accounts of the Company as well as other life insurance companies, and may be
available to certain pension accounts. They are not available directly to
individual investors. The Company may in the future establish additional
Subaccounts within the Variable Account, which may invest in other Portfolios of
the Funds or in other securities. Not all Subaccounts are available to the
Policy Owner.
THE FUNDS
Each Subaccount of the Variable Account currently invests only in shares of
a corresponding Portfolio of the MONY Series Fund, Inc. (the "MONY Series Fund")
or the Enterprise Accumulation Trust (the "Accumulation Trust") (the MONY Series
Fund and the Accumulation Trust are collectively called the "Funds"). The Funds
are diversified, open end management investment companies of the series type.
The Funds are registered with the SEC under the Investment Company Act of 1940.
Such registration does not involve supervision by the SEC of the investments or
investment policy of the Funds.
Of the seven separate Portfolios of the MONY Series Fund, currently only
four portfolios ("Portfolios"), each of which pursues different investment
objectives and policies, are available for purchase by corresponding Subaccounts
of the Variable Account available to the Policy Owner. The Company acts as the
investment manager of the MONY Series Fund. The Company is a registered
investment adviser under the Investment Advisers Act of 1940. As investment
adviser to the MONY Series Fund, the Company receives a daily investment
advisory fee equivalent to an annual rate of 0.50 percent of the first $400
million, 0.35 percent of the next $400 million, and 0.30 percent in excess of
$800 million of the aggregate average daily net assets of the Government
Securities, Long Term Bond, and Intermediate Term Bond Portfolios of the MONY
Series Fund, and 0.40 percent of the first $400 million, 0.35 percent of the
next $400 million, and 0.30 percent of assets in excess of $800 million of the
aggregate average daily net assets of the Money Market Portfolio of the MONY
Series Fund, as described in the accompanying current prospectus for the MONY
Series Fund. The Company, as investment adviser, has agreed to bear all expenses
associated with organizing the Fund, the initial registration of its securities,
and the compensation of the Fund's directors, officers and employees who are
interested persons of the Company. All other expenses will be borne by the Fund
itself, including, without limitation, the calculation of the net asset value of
the Portfolios. The Company has entered into a Services Agreement with MONY for
the provision of personnel, equipment, facilities and other services, in order
to carry out its duties as investment adviser to the Fund.
Of the ten separate Portfolios of the Accumulation Trust, currently all
separate Portfolios, each of which pursues different investment objectives and
policies, are available for purchase by corresponding Subaccounts of the
Variable Account. Enterprise Capital Management, Inc., a wholly-owned subsidiary
of MONY ("Enterprise Capital") acts as the investment manager of the
Accumulation Trust. Enterprise Capital, as investment adviser to the
Accumulation Trust, will receive from the Accumulation Trust monthly
compensation with respect to the Equity and Managed Portfolios that it advises
at an annual rate of 0.80 percent of the first $400 million of the aggregate
average daily net assets of those portfolios, 0.75 percent of the next $400
million of the aggregate average daily net assets of those portfolios, and 0.70
percent of the aggregate average daily net assets of those portfolios which
exceed $800 million. OpCap Advisors, a subsidiary of Oppenheimer Capital, as the
sub-investment adviser to the Equity and Managed Portfolios of the Accumulation
Trust, will receive from Enterprise Capital and not the Accumulation Trust, 0.40
percent (0.30 percent of assets in excess of $1 billion) of the aggregate
average daily net assets of the Equity Portfolio, and .40 percent (.30 percent
of the next $1 billion of assets, and .25 percent of assets in excess of $2
billion) of the average daily net assets of the Managed Portfolio. Enterprise
Capital, as investment adviser to the Accumulation Trust, will receive from
10
<PAGE> 15
the Accumulation Trust, .75 percent of the aggregate average daily net assets of
the Equity Income Portfolio, and 1740 Advisers, Inc. will receive from
Enterprise Capital and not the Accumulation Trust 0.30 percent (0.25 percent of
the next $100 million of assets, and 0.20 percent of assets in excess of $200
million) of the aggregate average daily net assets of the Equity Income
Portfolio. Enterprise Capital, as investment adviser to the Accumulation Trust,
will receive from the Accumulation Trust, .75 percent of the aggregate average
daily net assets of the Growth and Income Portfolio, and Retirement System
Investors, Inc. will receive from Enterprise Capital and not the Accumulation
Trust 0.30 percent (0.25 percent of the next $100 million of assets, and 0.20
percent of assets in excess of $200 million) of the aggregate average daily net
assets of the Growth and Income Portfolio. Enterprise Capital, as investment
adviser to the Accumulation Trust, will receive from the Accumulation Trust, .75
percent of the aggregate average daily net assets of the Growth Portfolio, and
Montag & Caldwell, Inc. will receive from Enterprise Capital and not the
Accumulation Trust 0.30 percent (0.20 percent of assets in excess of $1 billion)
of the aggregate average daily net assets of the Growth Portfolio. Enterprise
Capital, as investment adviser to the Accumulation Trust, will receive from the
Accumulation Trust, .75 percent of the aggregate average daily net assets of the
Capital Appreciation Portfolio, and Provident Investment Counsel, Inc. will
receive from Enterprise Capital and not the Accumulation Trust 0.50 percent of
the first $100 million (0.45 percent of the next $100 million of assets; 0.35
percent of the next $100 million of assets, and 0.30 percent of assets in excess
of $300 million) of the aggregate average daily net assets of the Capital
Appreciation Portfolio. Enterprise Capital, as investment adviser to the
Accumulation Trust, will receive from the Accumulation Trust, 1.00 percent of
the aggregate average daily net assets of the Small Company Growth Portfolio,
and Pilgrim Baxter & Associates will receive from Enterprise Capital and not the
Accumulation Trust 0.65 percent (0.55 percent of the next $50 million of assets,
and 0.45 percent of assets in excess of $100 million) of the aggregate average
daily net assets of the Small Company Growth Portfolio. Enterprise Capital, as
investment adviser to the Accumulation Trust, will receive from the Accumulation
Trust monthly compensation with respect to the Small Company Value Portfolio
that it advises at an annual rate of 0.75 percent of the aggregate average daily
net assets of the Small Company Value Portfolio. Gabelli Asset Management, Inc.,
as sub-investment adviser to the Small Company Value Portfolio of the
Accumulation Trust, will receive from Enterprise Capital and not the
Accumulation Trust, 0.40 percent (0.30 percent of assets in excess of $1
billion) of the aggregate average daily net assets of the Small Company Value
Portfolio. Enterprise Capital, as investment adviser to the Accumulation Trust,
will receive from the Accumulation Trust monthly compensation with respect to
the International Growth Portfolio that it advises at an annual rate of 0.85
percent of the aggregate average daily net assets of the International Growth
Portfolio, and Brinson Partners, Inc., as the sub-investment adviser to the
International Growth Portfolio, will receive from Enterprise Capital and not the
Accumulation Trust, 0.45 percent (53% of the fee received by Enterprise Capital,
the fee paid to Brinson Partners declines as assets exceed $100 million) of the
aggregate average daily net assets of the International Growth Portfolio.
Enterprise Capital, as investment adviser to the Accumulation Trust, will
receive from the Accumulation Trust monthly compensation with respect to the
High Yield Bond Portfolio that it advises at an annual rate of 0.60 percent of
the aggregate average daily net assets of the High Yield Bond Portfolio, and
Caywood-Scholl Capital Corporation, as sub-investment adviser to the High Yield
Bond Portfolio, will receive from Enterprise Capital and not the Accumulation
Trust, 0.30 percent (0.25 percent for assets in excess of $100 million) of the
aggregate average daily net assets of the High Yield Bond Portfolio.
The investment objectives of each Portfolio are fundamental and may not be
changed without the approval of the holders of a majority of the outstanding
shares of the Portfolio affected (which, for each of the Funds, means the lesser
of (1) 67 percent of the Portfolio shares represented at a meeting at which more
than 50 percent of the outstanding Portfolio shares are represented or (2) more
than 50 percent of the outstanding Portfolio shares).
PURCHASE OF PORTFOLIO SHARES BY THE VARIABLE ACCOUNT
The shares of each Portfolio are purchased by the Company for the
corresponding Subaccount at net asset value, i.e., without sales load. All
dividends and capital gains distributions received from a Portfolio are
automatically reinvested in such Portfolio at net asset value, unless the
Company, on behalf of the Variable
11
<PAGE> 16
Account, elects otherwise. Fund shares will be redeemed by the Company at their
net asset value to the extent necessary to make payments under the Policies.
Shares of the Funds are offered only for purchase by separate accounts of
insurance companies, which may or may not be affiliated with the Company, or
with each other. This is called "shared funding." They may also sell shares to
separate accounts to serve as an investment medium for variable life insurance
policies and for variable annuity contracts. Thus, the Funds serve as an
investment medium for both variable life insurance policies and variable annuity
contracts. This is called "mixed funding." The Company currently does not
foresee any disadvantages to Policy Owners arising from either mixed or shared
funding; however, due to differences in tax treatment or other considerations,
it is theoretically possible that the interests of owners of various contracts
for which the Funds serve as an investment medium might at some time be in
conflict. However, the Company's and the MONY Series Fund's Boards of Directors,
the Accumulation Trust's Board of Trustees, and any other insurance companies
that participate in the Funds are required to monitor events in order to
identify any material conflicts that arise from the use of the Funds for mixed
and/or shared funding. The Funds' Boards are required to determine what action,
if any, should be taken in the event of such a conflict. If such a conflict were
to occur, the Company might be required to withdraw the investment of one or
more of its separate accounts from the Funds. This might force the Funds to sell
securities at disadvantageous prices.
A summary of the investment objective of each of the Portfolios of the
Funds is described below. There can be no assurance that any Portfolio will
achieve its objective. More detailed information is contained in the
accompanying prospectus of each Fund, including information on the risks
associated with the investment and investment techniques of each of the
Portfolios.
THE FUNDS' PROSPECTUSES ACCOMPANY THIS PROSPECTUS AND SHOULD BE
READ CAREFULLY BEFORE INVESTING
The Money Market Portfolio:
The investment objective of the Money Market Portfolio is to seek maximum
current income consistent with preservation of capital and maintenance of
liquidity. The Money Market Portfolio attempts to achieve this objective by
investing in money market instruments. MONY Series Fund offers this Portfolio.
The Government Securities Portfolio:
The investment objective of the Government Securities Portfolio is the
maximum current income over the intermediate term consistent with the
preservation of capital, through investment in highly-rated debt securities,
U.S. Government obligations, and money market instruments, with a dollar
weighted average life of up to ten years at the time of purchase. MONY Series
Fund offers this Portfolio.
The Intermediate Term Bond Portfolio:
The investment objective of the Intermediate Term Bond Portfolio is to
maximize income over the intermediate term consistent with the preservation of
capital. The Portfolio seeks to achieve this objective by investing in highly
rated debt securities, U.S. Government obligations, and money market
instruments, together having a dollar-weighted average life of between 4 and 8
years. MONY Series Fund offers this Portfolio.
The Long Term Bond Portfolio:
The investment objective of the Long Term Bond Portfolio is to maximize
income over the longer term consistent with preservation of capital. The
Portfolio seeks to achieve its objective by investing in highly-rated debt
securities, U.S. Government obligations, and money market instruments, together
having a dollar-weighted average life of more than 8 years. MONY Series Fund
offers this Portfolio.
12
<PAGE> 17
The Equity Income Portfolio:
The Equity Income Portfolio invests in a combination of growth and income
to achieve an above average and consistent total return, primarily from
investments in dividend-paying common stocks. The Accumulation Trust offers this
Portfolio.
The Growth and Income Portfolio:
The Growth and Income Portfolio seeks total return in excess of the total
return of the Lipper Growth and Income Mutual Funds Average measured over a new
period of three to five years, by investing in a broadly diversified group of
large capitalization stocks. The Accumulation Trust offers this Portfolio.
The Growth Portfolio:
The investment objective of the Growth Portfolio is capital appreciation,
primarily from investments in common stocks. The Accumulation Trust offers this
Portfolio.
The Equity Portfolio:
The investment objective of the Equity Portfolio is long-term capital
appreciation. The Portfolio seeks to achieve this investment objective by
investing in a diversified portfolio of primarily equity securities selected on
the basis of a value-oriented approach to investing. The Accumulation Trust
offers this Portfolio.
The Capital Appreciation Portfolio:
The investment objective of the Capital Appreciation Portfolio is maximum
capital appreciation, primarily through investment in common stock of companies
that demonstrate accelerating earnings momentum and consistently strong
financial characteristics. The Accumulation Trust offers this Portfolio.
The Managed Portfolio:
The investment objective of the Managed Portfolio is to provide growth of
capital over time. The Portfolio seeks to achieve this investment objective by
investing in a portfolio consisting of common stocks, bonds and cash
equivalents, the percentage of which will vary over time based on the investment
manager's assessment of the relative investment values. The Accumulation Trust
offers this Portfolio.
The Small Company Growth Portfolio:
The investment objective of the Small Company Growth Portfolio is capital
appreciation by investing primarily in common stocks of small capitalization
companies believed by the Portfolio Manager to have an outlook for strong
earnings growth and potential for significant capital appreciation. The
Accumulation Trust offers this Portfolio.
The Small Company Value Portfolio:
The Small Company Value Portfolio seeks capital appreciation. The Portfolio
pursues its investment objective by investing in a diversified portfolio of
primarily equity securities of companies with market capitalization of under $1
billion. The Accumulation Trust offers this Portfolio.
The International Growth Portfolio:
The investment objective of the International Growth Portfolio is to
provide capital appreciation, primarily through a diversified portfolio of
non-United States equity securities. The Accumulation Trust offers this
Portfolio.
The High Yield Bond Portfolio:
The investment objective of the High Yield Bond Portfolio is to provide
maximum current income, primarily from debt securities that are rated Ba or
lower by Moody's Investors Service, Inc. or BB or lower by Standard & Poor's
Corporation. The Accumulation Trust offers this Portfolio.
13
<PAGE> 18
THE POLICY
The variable life insurance benefits of the Policies are funded through the
Policy Owner's Fund Value in the Variable Account and the Guaranteed Interest
Account. The information included below describes the benefits, features,
charges, and other major provisions of the Policies.
APPLICATION FOR A POLICY
The Policy is designed to meet the needs of individuals and for
corporations who wish to provide coverage and benefits for key employees.
Purchasers of the Policy must complete an application and personally deliver it
to a licensed agent of the Company, who is also a registered representative of
MONY Securities Corp. ("MSC"). The licensed agent will then submit the completed
application to the Company. The Policy may also be sold through other
broker-dealers authorized by MSC and applicable law to do so. A Policy can be
issued on the life of an Insured for Ages up to and including Age 85 with
evidence of insurability satisfactory to the Company. The Insured's Age is the
age of the Insured on his or her last birthday preceding the Policy Date.
Acceptance is subject to the Company's underwriting rules, and the Company
reserves the right to request additional information and to reject an
application.
The minimum Specified Amount which may be applied for is $50,000. However,
the Company also reserves the right to revise its rules from time to time to
specify a different minimum Specified Amount at issue for subsequent issued
Policies.
Each Policy is issued with a Policy Date, which is the date used to
determine the Monthly Anniversary Day, Policy Months, Policy Years, and Policy
monthly, quarterly, semiannual and annual anniversaries. The Policy Date will be
stated on Page 1 of the Policy. The Policy Date will normally be the later of
the date that delivery of the Policy is authorized by the Company (the "Policy
Release Date") or the Policy Date requested in the application. Except as
provided under the temporary insurance procedures defined below, no premiums may
be paid with the application.
Temporary Insurance Coverage
If an applicant desires interim insurance coverage prior to the Policy
Release Date, a Temporary Insurance Agreement is available. At the time an
application is accepted by a licensed agent of the Company, the applicant must
satisfactorily complete and sign the Temporary Insurance Agreement Form and
submit payment for at least one Minimum Monthly Premium for the Policy as
applied for. Coverage commences under the Temporary Insurance Agreement on the
date the Temporary Insurance Agreement Form is signed and the required premium
amount has been paid, or if later, the requested Policy Date. See "Premium
Flexibility," page 16.
Once the coverage under the Temporary Insurance Agreement commences, it
generally will run until the Policy Release Date, but in no event for more than
90 days from the date the Temporary Insurance Agreement Form is signed. In
addition, this temporary insurance coverage will also cease on the earliest of
(a) the 45th day after the Temporary Insurance Agreement Form is signed if the
last of the medical exams and tests initially required under the Company's
published underwriting rules has not been completed by the applicant, (b) 5 days
after the Company sends notice to the applicant that it declines to issue any
Policy, (c) the date the applicant informs the Company that the Policy will be
refused, (d) the Policy Release Date, if the Policy is issued as applied for, or
(e) where the Policy is issued other than as applied for, the earlier of the
15th day after the Policy Release Date or the date the Policy takes effect. If
death occurs during the period of temporary coverage, the Death Benefit will be
(i) the lesser of $500,000 or the insurance coverage applied for on the life of
the proposed Insured (including any optional Riders), less (ii) the Deductions
from Premium and the Monthly Deduction due prior to the date of death.
During the period before the Policy Release Date, premiums paid with the
application pursuant to the Temporary Insurance Agreement will be held in the
Company's General Account. Except as provided below, interest will be credited
on the premium (less any Deductions from Premiums) held in the Company's General
Account. The interest rate will be set by the Company, but will not be less than
4.5 percent per year.
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<PAGE> 19
If the Policy is issued and accepted, these amounts will be applied to the
Policy. These premiums will be returned (without interest) to the applicant
within 5 days after:
(1) the date the applicant informs the Company at or before the Policy
Release Date (or where the Policy is authorized for delivery other than as
applied for, on or before the 15th day after the Policy Release Date) that
the Policy will be refused; or
(2) the date which is 30 days after the application is signed, if any
medical exams or tests required by the Company have not yet been completed;
or
(3) the date the Company sends notice to the applicant declining to
issue any Policy on the Insured.
Initial Premium Payment
If the application is approved and the Policy is subsequently issued, the
balance due (if any) of the first Scheduled Premium Payment, as specified in the
Policy, is payable upon delivery of the Policy. The Policy will take effect on
the date the Policy is accepted by the applicant and the initial Scheduled
Premium Payment has been paid, or the Policy Date requested in the application,
if later. If a specific Policy Date has not been requested or if the Policy Date
requested is prior to the Policy Release Date, upon receipt of the balance due
(if any), the amount attributable to the Policy (including any premiums held in
the General Account under the Temporary Insurance Agreement plus any interest
credited in the General Account, less Deductions from Premiums) will earn
interest at a rate set by the Company, but not less than 4.5 percent per year
from the Policy Release Date pending expiration of the applicable Right to
Return Policy Period. These amounts will be held in the Company's General
Account. The Monthly Deduction due prior to or on the Policy Release Date will
be made. Upon expiration of the Right to Return Policy Period, amounts to be
allocated to the Subaccounts of the Variable Account will be allocated to those
Subaccounts and amounts to be allocated to the Guaranteed Interest Account will
be allocated to that Account. See "Right to Examine A Policy -- Right to Return
Policy Period," page 16.
Policy Date
If a specific Policy Date has been requested which is later than the Policy
Release Date, the amount attributable to the Policy will be initially held in
the General Account until the Policy Date. On the Policy Date, the amount
attributable to the Policy less any Deductions from Premiums for the period
commencing with the Policy Date will be held in the Company's General Account
and will earn interest at a rate set by the Company, but not less than 4.5
percent per year pending expiration of the applicable Right to Return Policy
Period. Upon the expiration of the applicable Right to Return Policy Period,
amounts allocated to the Subaccounts of the Variable Account will be allocated
to those Subaccounts and amounts allocated to the Guaranteed Interest Account
will be allocated to that Account. See "Right to Examine A Policy -- Right to
Return Policy Period," page 16.
Subject to the Company's approval, a Policy may be backdated, but the
Policy Date may not be more than six months (a shorter period is required in
certain states) prior to the date of the application. Backdating can be
advantageous if the Insured's lower issue Age results in lower cost of insurance
rates. If the Policy is backdated, the initial Scheduled Premium Payment will
include sufficient premium to cover additional charges incurred for the
backdating period, since monthly deductions are made for the period the Policy
Date is backdated.
Risk Classification
Insureds are assigned to underwriting (risk) classes which are used in
calculating the cost of insurance and certain Rider charges. In assigning
Insureds to underwriting classes, the Company will normally use the medical or
paramedical underwriting method, which may require a medical examination of a
proposed Insured, although other forms of underwriting may be used when deemed
appropriate by the Company.
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<PAGE> 20
RIGHT TO EXAMINE A POLICY -- RIGHT TO RETURN POLICY PERIOD
The Right to Return Policy Period follows the application for the Policy
and its issuance to the Policy Owner. The period runs to 10 days (or longer in
certain states) after the Policy Owner receives the Policy. During the Right to
Return Policy Period, the Policy Owner may cancel the Policy and receive a
refund of the full amount of the premium paid. During the Right to Return Policy
Period, net premiums will be held in the Company's General Account and will earn
interest at a rate set by the Company, but not less than 4.5% per year. See
"Allocation of Net Premiums," page 18.
PREMIUMS
The Policy is a flexible premium policy, and it provides considerable
flexibility, subject to the limitations described below, to pay premiums at the
Policy Owner's discretion.
Premium Flexibility
The Company requires a Policy Owner to pay an amount equal to at least the
Minimum Monthly Premium to place the Policy in force. If the premiums are to be
paid less often than monthly, the premium required to place the Policy in force
is equal to the Minimum Monthly Premium multiplied by 12 divided by the
frequency of Scheduled Premium Payments. This Minimum Monthly Premium will be
based upon the Policy's Specified Amount and the Age, smoking status, gender
(unless unisex cost of insurance rates apply, see "Cost of Insurance," page 31),
and underwriting class of the Insured, and any Riders added to the Policy. The
Minimum Monthly Premium will be shown in the Policy. Thereafter, subject to the
limitations described below, a Policy Owner may choose the amount and frequency
of premium payments. The Policy, therefore, provides the Policy Owner with the
flexibility to vary premium payments to reflect varying financial conditions.
If on each Monthly Anniversary Day during the first three Policy years, the
sum of all premiums paid, less any Outstanding Debt and less any Partial
Surrenders (excluding their fees), is greater than or equal to the Minimum
Monthly Premium times the number of completed Policy months or the Policy's Cash
Value is greater than zero, the Policy is guaranteed not to lapse. If an
increase in Specified Amount occurs during the first three Policy years, the
Minimum Monthly Premium requirement is extended to the three Policy years
following the effective date of the increase. See "Grace Period and Lapse," page
28.
Scheduled Premium Payments (Planned Premium Payments)
When applying for a Policy, a Policy Owner will determine a Scheduled
Premium Payment that provides for the payment of level premiums at fixed
intervals over a specified period of time. Each Policy Owner will receive a
premium reminder notice for the Scheduled Premium Payment amount on an annual,
semiannual, or quarterly basis, at the option of the Policy Owner. The minimum
Scheduled Premium Payment is equal to the Minimum Monthly Premium multiplied by
12 divided by the Scheduled Premium Payment frequency. Although reminder notices
will be sent, the Policy Owner may not be required to pay Scheduled Premium
Payments. (For Policies offered or issued for delivery in the Commonwealth of
Massachusetts, the Policy Owner will determine a Planned Premium Payment that
provides for the payment of level premiums at selected intervals over a
specified period of time. For those Policy Owners, the term "Scheduled Premium
Payment" used in this Prospectus, refers to Planned Premium Payments.)
Premiums, other than the first, may also be paid monthly under the
MONYMatic plan where the Policy Owner authorizes the Company to withdraw
premiums from the Owner's checking account each month. Based on the Policy Date,
up to two Minimum Monthly Premiums may be required to be paid in cash before the
MONYMatic plan will be accepted by the Company. Payment of the Scheduled Premium
Payments will not guarantee that a Policy will remain in force. Instead, unless
the Guaranteed Death Benefit Rider has been elected and all requirements have
been met, the duration of the Policy depends upon the Policy's Cash Value.
However, during the first three Policy Years, if on each Monthly Anniversary Day
the sum of premiums paid, less the sum of Partial Surrenders (excluding any fees
relating thereto) and any Outstanding Debt is greater than or equal to the
Minimum Monthly Premium times the number of completed Policy Months or the
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<PAGE> 21
Policy's Cash Value is greater than zero, the Policy is guaranteed not to lapse.
If an increase in Specified Amount occurs during the first three Policy years,
the Minimum Monthly Premium requirement is extended to the three Policy years
following the date the increase took effect. Even if the Scheduled Premium
Payments are made, if either of these two provisions do not apply, the Policy
will lapse any time the Cash Value is insufficient to pay the current monthly
deduction and a Grace Period expires without sufficient payment.
Guaranteed Death Benefit Rider
When application for the Policy is made, the applicant will also have the
opportunity to choose the Guaranteed Death Benefit Rider, which may extend the
period that the Specified Amount of the Policy and certain Rider coverages will
remain in effect. The Guarantee Period is to the Insured's Age 70 or ten years
from the Policy Date, whichever is later, (the "Guarantee Period"). An extra
charge will be deducted from the Fund Value each month during the Guarantee
Period. See "Guaranteed Death Benefits," page 21.
In the event that on any Monthly Anniversary Day the Cash Value is less
than zero, the Guaranteed Death Benefit Rider will keep the Policy in force
provided that the cumulative Monthly Guarantee Premium due to date has been
paid. This amount depends on the Specified Amount of the Policy, the Insured's
age, gender, smoking status and underwriting class, and any additional insurance
benefits added by Rider. Adding other optional insurance benefits by Rider to
the Policy will increase the Monthly Guarantee Premium indicated above.
It is important to consider the Guaranteed Death Benefit Rider premium
requirements when setting the amount of the Scheduled Premium Payments for the
Policy. (See Appendix C.)
The Guaranteed Death Benefit Rider is not available on Policies offered to
residents of, or issued for delivery in, to residents of the Commonwealth of
Massachusetts or the States of New Jersey and Texas.
Modified Endowment Contracts
The amount, frequency and period of time over which a Policy Owner pays
premiums may affect whether the Policy will be classified as a modified
endowment contract, which is a type of life insurance contract subject to
different tax treatment for certain pre-death distributions than conventional
life insurance contracts. See "Federal Income Tax Considerations -- Modified
Endowment Contracts," page 36.
Unscheduled Premium Payments
Generally, the Policy Owner can make unscheduled premium payments at any
time and in any amount. The Company may reject or limit any unscheduled premium
payment that would result in an immediate increase in the death benefit payable,
although such a premium may be accepted with satisfactory evidence of
insurability. A premium payment would result in an immediate increase if the
death benefit under a Policy is equal to a Policy Owner's Fund Value multiplied
by a death benefit percentage as a result of the federal income tax law
definition of life insurance. See "Death Benefits under the Policy," page 18 and
"Federal Income Tax Considerations -- Definition of Life Insurance," page 35. If
satisfactory evidence of insurability is not received, the payment, or a portion
thereof may be returned. In addition, all or a portion of a premium payment will
be rejected and returned to the Policy Owner if it would exceed the maximum
premium limitations prescribed by the federal income tax law definition of life
insurance.
Unscheduled premium payments will be treated as premium payments, and not
as a repayment of Outstanding Debt, unless a Policy Owner requests otherwise. If
the Policy Owner does request that the payment be treated as a repayment of
Outstanding Debt, any portion of a payment that exceeds the amount of
Outstanding Debt will be applied to the Fund Value. Applicable taxes and sales
charges are not deducted from payments used as a repayment of Outstanding Debt,
but are deducted from any payment which constitutes a premium payment.
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<PAGE> 22
Premium Payments Affect the Continuation of the Policy
If premium payments are stopped, temporarily or permanently, the Policy
will continue in effect until the Cash Value can no longer cover the Monthly
Deductions from the Fund Value for the Policy and any optional insurance
benefits added by Rider. At that point, the Policy will lapse. See "Grace Period
and Lapse," page 28. If the Minimum Monthly Premium requirements are satisfied
during the first three Policy years or if the Cash Value is greater than zero,
the Policy is guaranteed not to lapse during this three year period. If an
increase in Specified Amount occurs during the first three Policy years, if the
Minimum Monthly Premium requirements are satisfied during the three Policy years
following the date the increase took effect or if the Cash Value is greater than
zero, the Policy is guaranteed not to lapse during that period. See "Premiums --
Premium Flexibility," page 16. If the Guaranteed Death Benefit Rider is in
effect, the Specified Amount of the Policy and certain Rider coverages will
remain in force until the end of the Guarantee Period if premium payments
required by the Rider have been made. The Guaranteed Death Benefit is not
available on Policies offered to residents of, or issued for delivery in, the
Commonwealth of Massachusetts or the States of New Jersey and Texas. See
"Guaranteed Death Benefit," page 21.
Certain charges will be deducted from each premium payment. See "Charges
and Deductions," page 30. The remainder of the premium, referred to as the "net
premium", will be allocated as described below under "Allocation of Net
Premiums."
ALLOCATION OF NET PREMIUMS
In the application for the Policy, the Policy Owner selects the Subaccounts
of the Variable Account or the Guaranteed Interest Account to which net premium
payments will be allocated. During the Right to Return Policy Period, net
premiums will be held in the Company's General Account and will earn interest at
a rate set by the Company, but not less than 4.5% per year. The Fund Value will
be automatically allocated according to the Policy Owner's instructions
contained in the application at the end of the Right to Return Policy Period.
Net premiums received after the Right to Return Policy Period will be allocated
upon receipt among the Subaccounts of the Variable Account and the Guaranteed
Interest Account according to the Policy Owner's most recent instructions.
Net premiums may be allocated in whole percentages to any number of
Subaccounts and to the Guaranteed Interest Account, provided that no allocation
may be for less than 10% of a net premium. Allocation percentages must sum to
100%. Available allocation alternatives include the fourteen available
Subaccounts and the Guaranteed Interest Account.
A Policy Owner may change the allocation of net premiums at any time by
submitting a proper written request to the Company's Administrative Office. In
addition, changes in net premium allocation instructions may be made by
telephone if an authorization for telephone transfer form has been properly
completed, signed and filed at the Company's Syracuse Operations Center. The
Company reserves the right to discontinue telephone net premium allocation
instructions. See "Telephone Transfer Privileges", page 46. The revised
allocation percentages will be applied within seven days from receipt of
notification.
Unscheduled premium payments may be allocated either by percentage or by
dollar amount. If the allocation is expressed in dollar amounts, the 10% limit
on allocation percentages does not apply.
DEATH BENEFITS UNDER THE POLICY
When the Policy is issued, the Company will determine the initial amount of
insurance based on the instructions provided in the application. That amount
will be shown on the specifications page of the Policy and is called the
"Specified Amount." The minimum initial Specified Amount is $50,000.
For so long as the Policy remains in force, the Company will, upon proof of
the death of an Insured, pay death benefit proceeds to a named Beneficiary.
Death benefit proceeds will consist of the death benefit under the Policy, plus
any insurance proceeds provided by Rider, less any Outstanding Debt (and, if in
the Grace Period, further reduced by any overdue charges).
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<PAGE> 23
Each Policy Owner may select one of two death benefit Options: Option 1 or
Option 2. Generally the applicant designates the death benefit Option in the
application. If no Option is designated, Option 2 will be assumed by the Company
to have been selected. Subject to certain restrictions, the Policy Owner can
change the death benefit Option selected. So long as the Policy remains in
force, the death benefit under either Option will never be less than the
Specified Amount of the Policy.
Option 1
Under Option 1, the death benefit will be equal to the Specified Amount of
the Policy or, if greater, the Fund Value on the date of death multiplied by a
Death Benefit Percentage. The death benefit percentages vary according to the
Age of the Insured and will be at least equal to the percentage defined in the
Internal Revenue Code, which addresses the definition of a life insurance policy
for tax purposes. See "Federal Income Tax Considerations -- Definition of Life
Insurance," page 35. The Death Benefit Percentage is 250% for an Insured at Age
40 or under, and it declines for older Insureds. A table showing the Death
Benefit Percentages is in Appendix A to this prospectus and in the Policy.
Policy Owners who are seeking to have favorable investment performance reflected
in increasing Fund Value, and not in increasing insurance coverage, should
choose Option 1.
Option 2
Under Option 2, the death benefit will be equal to the Specified Amount of
the Policy plus the Fund Value on the date of death or, if greater, the Fund
Value on the date of death multiplied by a Death Benefit Percentage. The Death
Benefit Percentage is the same as that used in connection with Option 1 and is
stated in Appendix A. The death benefit under Option 2 will always vary as Fund
Value varies. Therefore, Policy Owners who seek to have favorable investment
performance reflected in increased insurance coverage should choose Option 2.
Examples of Options 1 and 2
The following examples demonstrate the determination of death benefits
under Options 1 and 2. The examples show three Policies -- Policies 1, 2, and
3 -- with the same Specified Amount, but Fund Values that vary as shown, and
which assume an Insured is Age 40 at the time of death and that there is no
Outstanding Debt. The date of death is also assumed to be on a Monthly
Anniversary Day.
<TABLE>
<CAPTION>
POLICY 1 POLICY 2 POLICY 3
-------- -------- --------
<S> <C> <C> <C>
Specified Amount............................................ $100,000 $100,000 $100,000
Fund Value on Date of Death................................. $ 35,000 $ 60,000 $ 85,000
Death Benefit Percentage.................................... 250% 250% 250%
Death Benefit under Option 1................................ $100,000 $150,000 $212,500
Death Benefit under Option 2................................ $135,000 $160,000 $212,500
</TABLE>
Under Option 1, the death benefit for Policy 1 is equal to $100,000 since
the death benefit is the greater of the Specified Amount ($100,000) or the Fund
Value multiplied by the Death Benefit Percentage ($35,000 X 250%=$87,500). In
contrast, for both Policies 2 and 3 under Option 1, the Fund Value multiplied by
the Death Benefit Percentage ($60,000 X 250%=$150,000 for Policy 2; $85,000 X
250%=$212,500 for Policy 3) is greater than the Specified Amount ($100,000), so
the death benefit is equal to the higher value. Under Option 2, the death
benefit for Policy 1 is equal to $135,000 since the death benefit is the greater
of Specified Amount plus Fund Value ($100,000 + $35,000=$135,000) or the Fund
Value multiplied by the Death Benefit Percentage ($35,000 X 250%=$87,500).
Similarly, in Policy 2, Specified Amount plus Fund Value ($100,000 +
$60,000=$160,000) is greater than Fund Value multiplied by the Death Benefit
Percentage ($60,000 X 250%=$150,000). In contrast, in Policy 3, the Fund Value
multiplied by the Death Benefit Percentage ($85,000 X 250%=$212,500) is greater
than the Specified Amount plus Fund Value ($100,000 + $85,000=$185,000), so the
death benefit is equal to the higher value.
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<PAGE> 24
Death Benefit proceeds may be paid to a Beneficiary in a lump sum or under
a payment plan offered under the Policy. The Policy should be consulted for
details.
Changes in Death Benefit Option
A Policy Owner may request that the death benefit under the Policy be
changed from Option 1 to Option 2, or from Option 2 to Option 1. Changes in the
death benefit Option may be made on any Monthly Anniversary Day and should be
made in writing to the Company's Administrative Office. A change from Option 2
to Option 1 may be made without evidence of insurability; a change from Option 1
to Option 2 will require evidence of insurability satisfactory to the Company.
The effective date of any such change requested between Monthly anniversaries
will be the next Monthly Anniversary Day after the change is accepted.
A change in the death benefit from Option 1 to Option 2 is accomplished by
reducing the Specified Amount of the Policy by the amount of the Policy's Fund
Value at the date of the change. This maintains the death benefit payable under
Option 2 at the amount that would have been payable under Option 1 immediately
prior to the change. Although there is no immediate change in the total death
benefit, the change to Option 2 will affect the determination of the death
benefit from that point on since the Fund Value will then be added to the new
Specified Amount, and the death benefit will then vary with Fund Value. This
change will not be permitted if it would result in a new Specified Amount of
less than $100,000.
A change in the death benefit from Option 2 to Option 1 is accomplished by
increasing the specified amount of the Policy by the amount of the Policy's Fund
Value at the date of the change. This maintains the death benefit payable under
Option 1 at the amount that would have been payable under Option 2 immediately
prior to the change. Although there is no immediate change in total death
benefit, the change to Option 1 will affect the determination of the death
benefit from that point on since the death benefit will equal the Specified
Amount (or, if higher, the Fund Value times the applicable Death Benefit
Percentage, as required by the federal tax law definition of life insurance).
The change to Option 1 will generally reduce the death benefit payable in the
future.
A change in death benefit Option may affect the monthly cost of insurance
charge since this charge varies with the net amount at risk, which generally is
the amount by which the death benefit exceeds Fund Value. See "Cost of
Insurance," page 31. Assuming that the Policy's death benefit is not based on
the Death Benefit Percentage under either Option 1 or 2, changing from Option 2
to Option 1 will generally decrease the net amount at risk, and therefore
possibly decrease the cost of insurance charges. Changing from Option 1 to
Option 2 will generally result in a net amount at risk that remains level. Such
a change, however, will result in an increase in the cost of insurance charges
over time, since the cost of insurance rates increase with the Insured's Age.
CHANGES IN SPECIFIED AMOUNT
A Policy Owner may request an increase or decrease in the Specified Amount
under a Policy subject to approval from the Company. A change in Specified
Amount may be made at any time after issue. Increases in Specified Amount are
not permitted on or after the Insured's Age 85 and will not be permitted if
monthly deductions are being waived under the Waiver of Monthly Deductions
Rider. Increasing the Specified Amount will generally increase the death benefit
payable under the Policy, and decreasing the Specified Amount will generally
decrease the death benefit payable. The amount of change in the death benefit
will depend, among other things, upon the death benefit Option chosen by the
Policy Owner and whether the death benefit under the Policy is being calculated
using the Death Benefit Percentage at the time of the change. Changing the
Specified Amount could affect the subsequent level of the death benefit while
the Policy is in force and the subsequent level of Policy values. For example,
an increase in Specified Amount may increase the net amount at risk under a
Policy, which will increase a Policy Owner's cost of insurance charges over
time. Conversely, a decrease in Specified Amount may decrease the net amount at
risk, which may decrease a Policy Owner's cost of insurance charges over time.
Any request for an increase or decrease in Specified Amount must be made by
written application to the Company's Administrative Office. It will become
effective on the Monthly Anniversary Day on or next
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<PAGE> 25
following the Company's acceptance of the request. If the Policy Owner is not
the Insured, the Company may also require the consent of the Insured before
accepting a request.
Increases
Additional evidence of insurability satisfactory to the Company will be
required for an increase in Specified Amount.
A requested increase in the Specified Amount will create a new "coverage
segment" for which cost of insurance and other charges will be computed
separately. See "Charges and Deductions," page 30. In addition, the Surrender
Charge associated with the Policy will increase. The Surrender Charge for the
increase is calculated in a similar manner as for the original Specified Amount.
The Minimum Monthly Premium and the required premiums under the Guaranteed Death
Benefit Rider, if applicable, will also be adjusted prospectively to reflect the
increase in Specified Amount. If the Specified Amount is increased at the same
time that a premium payment is received, the increase will be processed before
the premium payment is processed.
If an increase creates a new coverage segment of Specified Amount, Fund
Value after the increase will be allocated to the original coverage segment
first, then to each coverage segment in the order of the increases.
Decreases
Any decrease in Specified Amount (whether specifically requested by the
Policy Owner or as a result of a Partial Surrender or a death benefit Option
change) will first be applied to reduce the coverage segments of Specified
Amount associated with the most recent increases, then the next most recent
increases successively, and finally to the original Specified Amount. A decrease
will not be permitted if the Specified Amount would fall below $100,000. Any
decrease in the Term Insurance Rider will first be applied to reduce the
coverage segment of Term Insurance Rider associated with the most recent
increase, then the next most recent increases successively, and finally to the
original Term Insurance Rider.
The Minimum Monthly Premium will not be adjusted for the decrease in
Specified Amount. The required premiums under the Guaranteed Death Benefit
Rider, if applicable, will be adjusted for the decrease in Specified Amount. If
the Specified Amount is decreased at the same time that a premium payment is
received, the decrease will be processed before the premium payment is
processed. Rider coverages may also be affected by a decrease in Specified
Amount.
The Company reserves the right to disallow a requested decrease, and will
not permit a requested decrease, among other reasons, (i) if compliance with the
guideline premium limitations under federal tax law resulting from the requested
decrease would result in immediate termination of the Policy, or (ii) if, to
effect the requested decrease, payments to the Policy Owner would have to be
made from Fund Value for compliance with the guideline premium limitations, and
the amount of such payments would exceed the Cash Value under the Policy. If we
do not approve a change you have requested, we will send you a written notice of
our decision about making the change. See "Federal Income Tax
Considerations -- Definition of Life Insurance," page 35.
GUARANTEED DEATH BENEFIT
Generally, the length of time the Policy remains in force depends on the
Cash Value of the Policy. Because the charges that maintain the Policy are
deducted monthly from the Fund Value, coverage will last as long as the Cash
Value of the Policy is sufficient to pay these charges. See "Grace Period and
Lapse," page 28. The investment experience of any amounts in the Subaccounts of
the Variable Account and the interest earned in the Guaranteed Interest Account
will affect the amount of the Fund Value and, as a result, the length of time
the Policy remains in force without the payment of additional premiums.
When application for a Policy is made, the Policy Owner will have the
opportunity to choose the Guaranteed Death Benefit Rider, which may extend the
period that the Specified Amount of the Policy and
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<PAGE> 26
certain other Rider coverages will remain in effect if the Subaccounts suffer
adverse investment experience. See "Guaranteed Death Benefit Rider," page 17.
On each Monthly Anniversary Day, the following test will be performed to
determine whether the Guaranteed Death Benefit Rider will remain in effect: (i)
the actual premiums paid, less the amount of any Partial Surrenders (and any
fees imposed as a result of the Partial Surrender) less outstanding debt must
equal or exceed (ii) the Monthly Guarantee Premium for the Rider times the
number of complete months since the Policy Date. If the Policy fails to meet
this test on any Monthly Anniversary Day, the Guarantee Period, and therefore
the Guaranteed Death Benefit Rider, will terminate. Once terminated, the
Guaranteed Death Benefit Rider can not be reinstated.
There is a Grace Period for this Rider. See "Grace Period and Lapse -- If
Guaranteed Death Benefit Rider Is in Effect", page 29.
There is a charge for the Guaranteed Death Benefit Rider. See "Guaranteed
Death Benefit Charge," page 32. This charge will end at the conclusion of the
Guarantee Period if the Rider is chosen, and it will end if at any time the
Policy fails the monthly test.
Please refer to the Policy for additional information on the Guaranteed
Death Benefit Rider.
The Guaranteed Death Benefit Rider is not available on Policies offered to
residents of, or issued for delivery in, the Commonwealth of Massachusetts or
the States of New Jersey and Texas.
OTHER OPTIONAL INSURANCE BENEFITS
Subject to certain requirements, a Policy Owner may elect to add one or
more of the optional insurance benefits described below to the Policy at the
time of application for a Policy. These other optional insurance benefits are
added to the Policy by Rider. A charge will be deducted monthly from the Fund
Value for each optional insurance benefit added to the Policy. See "Charges and
Deductions," page 30. The amounts of these benefits are fully guaranteed at
issue, and they can be canceled by the Policy Owner at any time. Certain
restrictions may apply and are described in the applicable Rider. In addition,
adding or canceling these benefits may have an effect on the Policy's status as
a modified endowment contract. See "Federal Income Tax
Considerations -- Modified Endowment Contracts," page 36. An insurance agent
authorized to sell the Policy can describe these extra benefits further. Samples
of the provisions are available from the Company upon written request.
From time to time we may make available Riders other than those listed
below. Contact an insurance agent authorized to sell the Policy for a complete
list of the Riders available.
Primary Insured Term Rider
This Rider provides for additional death benefits on the life of the
Insured, to the Insured's Age 80. The minimum amount of coverage is $25,000. The
Rider coverage may be converted without evidence of insurability to any level
premium, level face amount permanent plan of insurance offered by the Company at
any time prior to the Insured's Age 65 or 5 years from the issue of the Rider,
if later.
Waiver of Monthly Deductions Rider
This Rider provides that during a covered disability of the Insured, while
the Policy remains in force, the monthly administrative charges, per $1000
Specified Amount charges, cost of insurance charges and Rider charges will be
waived and therefore not deducted from the Fund Value. This Rider does not waive
the payment of premiums required by the Guaranteed Death Benefit Rider, however,
the cumulative Monthly Guarantee Premium requirement does not change during the
covered disability. It remains fixed at the level at the beginning of the
disability. The Guaranteed Death Benefit Rider is not available on Policies
offered to residents of, or issued for delivery in, the Commonwealth of
Massachusetts or the States of New Jersey and Texas.
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Waiver of Specified Premiums Rider
This Rider provides that during a covered disability of the Insured, while
the Policy remains in force, the monthly Specified Premium will be waived and
therefore added to the Fund Value on each Monthly Anniversary. Net premiums will
be allocated among the Subaccounts and the Guaranteed Interest Account according
to the Policy Owner's most recent instructions. This Rider does not waive the
monthly deductions of the Policy nor does this Rider waive the payment of
premiums required by the Guaranteed Death Benefit Rider. The Guaranteed Death
Benefit Rider is not available on Policies offered to residents of, or issued
for delivery in, the Commonwealth of Massachusetts or the States of New Jersey
and Texas.
Accidental Death & Dismemberment Rider
This Rider will pay the benefit amount selected if the Insured dies or
suffers a specified dismemberment as a result of an accident after the Insured's
Age 5 and prior to Age 70. A benefit equal to twice the Rider amount is payable
if accidental death occurs as the result of riding as a passenger in a public
conveyance then being operated commercially to transport passengers for hire.
The maximum amount of coverage is the initial specified amount but not more than
the greater of $100,000 total coverage of all such insurance in the Company or
in any insurance company affiliate of the Company nor more than $200,000 of all
such coverages, regardless of insurance companies issuing such coverages.
Purchase Option Rider
This Rider provides the option to purchase up to $100,000 of additional
coverage without providing additional evidence that the Insured remains
insurable. Increases under this Rider may be added on the Policy anniversary
when the Insured's Age is 25, 28, 31, 34, 37, 40, 43, 46 and 49. In addition,
the future right to purchase new insurance on the next option date may be
advanced and exercised immediately upon marriage of the Insured, or the birth of
a child of the Insured, or upon the legal adoption of a child by the Insured. A
period of term insurance is automatically provided starting on the date of the
specified event. The interim term insurance, and the option to accelerate the
purchase of the coverage expires 60 days after the specified event.
Spouse's Term Rider
This Rider provides for term insurance benefits on the life of the
Insured's spouse, to the spouse's Age 80. The minimum amount of coverage is
$25,000 and the maximum amount of coverage equals the Initial Specified Amount
of the Policy. The Rider coverage may be converted without evidence of
insurability to any level premium, level face amount permanent plan of insurance
offered by the Company at any time prior to the Spouse's Age 65 or 5 years from
the issue of the Rider, if later.
Children's Term Insurance Rider
This Rider provides term insurance coverage on the lives of the children of
the Insured under age 18 which continues to the Policy anniversary after the
child's 22nd birthday. It provides coverage for children upon birth or legal
adoption without presenting evidence of insurability. Coverage is limited to the
lesser of 1/5th of the initial Specified Amount or $10,000. Upon the expiration
of the Rider coverage it may be converted to any level premium, level face
amount permanent plan of insurance then offered by the Company.
Benefits at Maturity
If the Insured is living on the Maturity Date, the Company will pay to the
Policy Owner, as an endowment benefit, the Cash Value of the Policy. Payment
ordinarily will be made within seven days of the Policy Anniversary, although
payments may be postponed in certain circumstances. See "Payments," page 43. At
the option of the Policy Owner, payment of the endowment benefit may be deferred
until the date of the Insured's death. Death proceeds payable immediately after
the Maturity Date equal the Cash Value of the Policy multiplied by the death
benefit percentage at the Insured's Age 100. Premiums will not be accepted, nor
will monthly deductions be made, after the Maturity Date.
Please refer to the Policy for additional information on the Maturity
Extension Rider.
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POLICY VALUES
Fund Value
The Fund Value is the sum of the amounts under the Policy held in each
Subaccount of the Variable Account and any Guaranteed Interest Account, as well
as the amount set aside in the Company's Loan Account, and any interest thereon,
to secure Outstanding Debt.
On each Business Day, the portion of the Fund Value allocated to any
particular Subaccount will be adjusted to reflect the investment experience of
that Subaccount. On each Monthly Anniversary Day, the Fund Value also will be
adjusted to reflect the assessment of the monthly deduction. See "Determination
of Fund Value," page 24. No minimum amount of Fund Value allocated to a
particular Subaccount is guaranteed. A Policy Owner bears the risk for the
investment experience of Fund Value allocated to the Subaccounts.
Cash Value
The Cash Value of the Policy equals the Fund Value less the Surrender
Charge less any Outstanding Debt. Thus, the Fund Value will exceed the Policy's
Cash Value by the amount of the Surrender Charge and any Outstanding Debt. Once
the Surrender Charge has expired, the Fund Value will equal the Cash Value less
any Outstanding Debt.
DETERMINATION OF FUND VALUE
Although the death benefit under a Policy can never be less than the
Policy's Specified Amount, the Fund Value will vary depending upon several
factors, including the investment performance of the Subaccounts to which Fund
Value has been allocated, payment of premiums, the amount of any Outstanding
Debt, Partial Surrenders and the charges assessed in connection with the Policy.
There is no guaranteed minimum Fund Value and the Policy Owner bears the entire
investment risk relating to the investment performance of Fund Value allocated
to the Subaccounts.
The amounts allocated to the Subaccounts will be invested in shares of the
corresponding Portfolios of the Funds. The value of the Subaccounts will reflect
the investment experience of the corresponding Portfolio. The investment
experience reflects the investment income, realized and unrealized capital gains
and losses and expenses of the Portfolio and any dividends or distributions
declared by a Portfolio. Any dividends or distributions from any Portfolio of
the Funds will be automatically reinvested in shares of the same Portfolio,
unless the Company, on behalf of the Variable Account, elects otherwise. The
Subaccount value will also reflect the mortality and expense risk charges the
Company makes each day to the Variable Account.
Amounts allocated to the Subaccounts are measured in terms of Units, which
are a measure of value used for bookkeeping purposes. The value of amounts
invested in each Subaccount is represented by the value of the Units credited to
the Policy for that Subaccount. On any given day, the amount in a Subaccount of
the Variable Account is equal to the Unit value times the number of Units
credited to the Policy in that Subaccount. The Units of each Subaccount will
have different Unit values.
Units of a Subaccount are purchased (credited) whenever premiums or
transfer amounts (including transfers from the Loan Account) are allocated to
that Subaccount. Units are redeemed (debited) to make Partial or Full
Surrenders, to transfer amounts from a Subaccount (including transfers to the
Loan Account), and to pay the death benefit when the Insured dies. Units are
also redeemed to pay the monthly deductions from the Policy's Fund Value, for
Policy transaction charges, and to pay Surrender Charges, if any. The number of
Units purchased or redeemed in connection with any such transaction is
determined by dividing the dollar amount of such transaction by the Unit Value
of the affected Subaccount, calculated after the close of business that day. The
number of Units changes only as a result of Policy transactions or charges; the
number of Units credited will not change because of subsequent changes in Unit
Value.
Transactions are processed as of the Transaction Date. The Transaction Date
is the date a premium or an acceptable written or telephone request is received
at the Administrative Office. If the premium or request
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reaches the Administrative Office on a day which is not a Business Day, or after
the close of business on a Business Day (that is, after 4:00 p.m. Eastern Time),
the Transaction Date will be the next succeeding Business Day. All Policy
transactions are performed as of a Business Day. If a Transaction Date or
Monthly Anniversary Day occurs on a day other than a Business Day (e.g., on a
Saturday), the calculation will take place on the next Business Day (e.g., on
the following Monday).
CALCULATING UNIT VALUES FOR EACH SUBACCOUNT
The Unit Value of a Subaccount on any Business Day is calculated by the
Company on every Business Day as follows:
1. Calculate the value of the shares of the Portfolio belonging to the
Subaccount as of the close of business that Business Day (before giving
effect to any Policy transactions for that day, such as premium payments or
surrenders). For this purpose, the Net Asset Value per share reported to
the Company by the managers of the Portfolio is used.
2. Add the value of any dividends or capital gains distributions
declared and reinvested by the Portfolio during the Valuation Period.
Subtract from this amount a charge for taxes, if any.
3. Subtract a charge for the mortality and expense risk assumed by the
Company under the Policy. See "Daily Deductions From the Variable
Account -- Mortality and Expense Risk Charge", page 31. If the previous day
was not a Business Day, then the charge is adjusted for the additional days
between valuations.
4. Divide the resulting amount by the number of Units held in the
Subaccount on the Business Day before the purchase or redemption of any
Units on that Date.
The Unit Value of each Subaccount on its first Business Day was set at $10.00.
TRANSFER OF FUND VALUE
Fund Value may be transferred after the Right to Return Policy Period among
the Subaccounts by the Policy Owner upon proper written request to the Company's
Administrative Office. Transfers may be made by telephone if an authorization
for telephone transfer form has been properly completed and signed and filed at
the Company's Syracuse Operations Center. See "Telephone Transfer Privileges,"
page 46. Currently, there are no limitations on the number of transfers between
Subaccounts, no minimum amount required for a transfer, nor any minimum amount
required to remain in a given Subaccount after a transfer. Further, no transfer
may be made if a Policy is in the Grace Period and a payment required to avoid
lapse is not paid. See "Grace Period and Lapse," page 28. No charges are
currently imposed upon such transfers. The Company reserves the right, however,
at a future date to assess a maximum $25 transfer charge on Policy transfers and
to discontinue telephone transfers.
Fund Value may also be transferred after the Right to Return Policy Period
from the Subaccounts to the Guaranteed Interest Account. Transfers from the
Guaranteed Interest Account to the Subaccounts will only be permitted in the
Policy month following a Policy Anniversary as described in "The Guaranteed
Interest Account," page 41.
RIGHT TO EXCHANGE POLICY
During the first 24 months following the Policy Date, the Policy Owner may
exercise the right to exchange the Policy from one in which the investment
experience is not guaranteed into a guaranteed Policy. This is accomplished by
the transfer of the entire amount in the Subaccounts of the Variable Account to
the Guaranteed Interest Account, and the allocation of all future premium
payments to the Guaranteed Interest Account. This will, in effect, serve as an
exchange of the Policy for the equivalent of a flexible premium universal life
insurance policy. See "The Guaranteed Interest Account," page 41. No charge will
be imposed on the transfer in exercising the exchange privilege.
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POLICY LOANS
The Policy Owner may borrow money from the Company at any time using the
Policy as the only security for the loan by submitting a proper written request
to the Company's Administrative Office. A loan may be taken any time a Policy
has a positive Cash Value. The maximum amount that can be borrowed at any time
is 90% of the Cash Value of the Policy. (If the loan is requested on a Monthly
Anniversary Day, the maximum loan amount is further reduced by the monthly
deduction due on that day.) The Outstanding Debt is the cumulative amount of
outstanding loans and loan interest payable to the Company at any time.
Loan interest is payable in arrears on each Policy anniversary at an annual
rate which varies by the number of years since the Policy was issued. For the
first ten Policy years a loan rate of 5.25% applies. After the tenth policy
anniversary, a loan rate of 4.75% applies. Interest on the full amount of any
Outstanding Debt is due on the Policy Anniversary, until the Outstanding Debt is
repaid. If interest is not paid when due, it will be added to the amount of the
Outstanding Debt.
The Owner may repay all or part of the Outstanding Debt at any time while
the Policy is in force. Only payments indicated as loan or interest payments
will be treated as such. If a loan repayment is made which exceeds the
Outstanding Debt, the excess will be applied as a Scheduled Premium Payment,
subject to the rules on acceptance of premium payments.
When a Policy Owner takes a loan, an amount equal to the loan is
transferred out of the Policy Owner's Fund Value in the Subaccounts and the
Guaranteed Interest Account into the Loan Account to secure the loan. The Policy
Owner may, within certain limits, specify the amount or the percentage of the
loan amount to be deducted from the Subaccounts and the Guaranteed Interest
Account. If the Policy Owner does not specify the source of the transfer, or if
the transfer instructions are incorrect, the request for loan will not be
accepted. On each Policy Anniversary, an amount equal to the loan interest due
and unpaid for the Policy Year will be transferred to the Loan Account from the
Subaccounts and Guaranteed Interest Account on a proportional basis.
The Loan Account is a part of the Company's General Account. Amounts held
in the Loan Account are credited monthly with a rate of interest not less than
an annualized rate of 4.5%.
Loan repayments release funds from the Loan Account. Unless otherwise
requested by a Policy Owner, amounts released from the Loan Account as a result
of a loan repayment will be transferred into the Subaccounts and Guaranteed
Interest Account in accordance with the most recent valid allocation
instructions for Scheduled Premium Payments. In addition, Fund Value in the Loan
Account in excess of the outstanding loan is treated differently depending on
whether at the time the loan was made, Fund Values were transferred from the
Subaccounts or the Guaranteed Interest Account and whether or not loan interest
due is paid when due or the amount of the interest is added to the loan
("capitalized"). If the loan is from the Subaccounts and loan interest is
capitalized, this excess offsets the amount that must be transferred from the
Subaccounts to the Loan Account on the Policy Anniversary. If the loan is from
the Subaccounts and loan interest is paid in cash, this excess is allocated to
the Subaccounts and/or the Guaranteed Interest Account on the Policy Anniversary
using the most recent valid Scheduled Premium Payment allocation on record. If
the loan is from the Guaranteed Interest Account, this excess is allocated back
to the Guaranteed Interest Account on a monthly basis proportionately to all
interest crediting generations from which the loan was taken.
While the amount to secure the Outstanding Debt is held in the Loan
Account, the Policy Owner foregoes the investment experience of the Subaccounts
and the current interest rate of the Guaranteed Interest Account on that amount.
Thus Outstanding Debt, whether or not repaid, will have a permanent effect on
the Policy's values and may have an effect on the amount and duration of the
Death Benefit. If not repaid, the Outstanding Debt will be deducted from the
amount of Death Benefit paid upon the death of the Insured, or the value paid
upon surrender or maturity.
Outstanding Debt may affect the length of time the Policy remains in force.
After the third Policy Anniversary, the Policy will lapse when the Cash Value is
insufficient to cover the monthly deduction against the Policy's Fund Value on
any Monthly Anniversary Day and the minimum payment required is not made during
the Grace Period. Moreover, the Policy may enter the Grace Period more quickly
when Outstanding
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Debt exists, because the Outstanding Debt is not available to cover the monthly
deduction. In addition, the Guarantee Period under the Guaranteed Minimum Death
Benefit Rider may end if total premiums received less any Partial Surrenders and
their fees, less Outstanding Debt do not exceed the premiums required under that
Rider. The Guaranteed Death Benefit Rider is not available on Policies offered
to residents of, or issued for delivery in, the Commonwealth of Massachusetts or
the States of New Jersey and Texas. Additional payments or repayment of a
portion of Outstanding Debt may be required to keep the Policy or Rider in
force. See "Grace Period and Lapse," page 28.
A loan will not be treated as a distribution from the Policy and will not
result in taxable income to the Policy Owner unless the Policy is a modified
endowment contract, in which case a loan will be treated as a distribution that
may give rise to taxable income. If a Policy lapses with an outstanding loan
balance there could be adverse federal income tax consequences depending on the
particular facts and circumstances. For example, if a Policy lapses with an
outstanding loan balance and it does not lapse to a non-forfeiture option, the
Policy Owner can have ordinary income to the extent the outstanding loan exceeds
the Policy Owner's investment in the Policy (i.e., generally premiums paid less
prior non-taxable distributions). For more information on the tax treatment of
loans, see "Federal Income Tax Considerations," page 34.
FULL SURRENDER
A Policy Owner may fully surrender a Policy at any time during the life of
the Insured. The amount received in the event of a full surrender is the
Policy's Cash Value, which is equal to its Fund Value less any applicable
Surrender Charge and less any Outstanding Debt.
A Policy Owner may surrender a Policy by sending a written request together
with the Policy to the Company's Administrative Office. The proceeds will be
determined as of the end of the Valuation Period during which the request for a
surrender is received. A Policy Owner may elect to have the proceeds paid in
cash or applied under a payment plan offered under the Policy. See "Payment
Plan/Settlement Provisions," page 43. For information on the tax effects of a
surrender of a Policy, see "Federal Income Tax Considerations," page 34.
PARTIAL SURRENDER
A Partial Surrender allows the Policy Owner to obtain a portion of the Cash
Value of the Policy without having to surrender the Policy in full. A request
for a Partial Surrender may be made at any time and the partial surrender will
take effect on the Business Day that we receive your request at our
Administrative Office, or on the next Business Day if that day is not a Business
Day. There is currently no limit on the number of Partial Surrenders allowed in
a Policy year.
A Partial Surrender must be for at least $500 (plus the applicable fee),
and the Policy's Cash Value after the Partial Surrender must be at least $500.
If a Loan on the Policy has been taken, the amount of the Partial Surrender is
limited so that the Loan amount, after giving effect to the Partial Surrender,
is not greater than 90 percent of Cash Value.
The Policy Owner may make a Partial Surrender by submitting a proper
written request to the Company's Administrative Office. As of the effective date
of any Partial Surrender, the Policy Owner's Fund Value and Cash Value will be
reduced by the amount surrendered (plus the applicable fee). The amount of the
Partial Surrender (plus the applicable fee) will be allocated by amount or
percent to the Policy Owner's Fund Value in the Subaccounts and the Guaranteed
Interest Account as specified by the Policy Owner. Allocations by percentage
must be in whole percentages and the minimum percentage is 10% against any
Subaccount or the Guaranteed Interest Account. Percentages must total 100%. We
will not accept an allocation which does not comply with the rules or if there
is not enough Fund Value in a Subaccount or the Guaranteed Interest Account to
provide its share of the allocation. If the Insured dies after the request for a
Partial Surrender is sent to the Company and prior to the Partial Surrender
being effected, the amount of the
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<PAGE> 32
Partial Surrender will be deducted from the death benefit proceeds, which will
be determined without taking into account the amount surrendered.
When a Partial Surrender is made on a Policy on which the Owner has
selected death benefit Option 1, the Specified Amount under the Policy is
decreased by the amount of the Partial Surrender (excluding its fee). A Partial
Surrender will not change the Specified Amount of a Policy on which the Owner
has selected death benefit Option 2. However, assuming that the death benefit is
not equal to Fund Value times a death benefit percentage, the Partial Surrender
will reduce the death benefit by the amount of the Partial Surrender. Under
either death benefit Option, to the extent the death benefit is based upon the
Fund Value times the death benefit percentage applicable to the Insured, a
Partial Surrender may cause the death benefit to decrease by an amount greater
than the amount of the Partial Surrender. See "Death Benefits under the Policy,"
page 18.
A fee for each Partial Surrender will be assessed. See "Charges and
Deductions -- Transaction and Other Charges", page 33.
For information on the tax treatment of Partial Surrenders, see "Federal
Income Tax Considerations," page 34.
GRACE PERIOD AND LAPSE
In general, the Policy and all Riders attached to it will continue in force
as long as the Cash Value of the Policy is sufficient to pay all the deductions
that are taken from Fund Value each month. The Policy will lapse only when the
Cash Value is insufficient to cover the current monthly deduction against the
Policy's Fund Value on any Monthly Anniversary Day, and a 61-day Grace Period
expires without the Policy Owner making a sufficient payment.
Special Rule for First Three Policy Years
During the first three Policy years (or first three policy years following
an increase in Specified Amount during that period), if on each Monthly
Anniversary Day the sum of premiums paid, less the sum of Partial Surrenders
(excluding its fees) and any Outstanding Debt is greater than or equal to the
Minimum Monthly Premiums times the number of completed Policy months (or number
of months from the most recent increase in Specified Amount) or if the Cash
Value is greater than zero, the Policy and all attached Riders are guaranteed
not to lapse.
If the insufficiency occurs at any other time, or if the Minimum Monthly
Premium test has not been met during the first three Policy years as described
above, the Policy may be at risk of lapse depending on whether or not a
Guaranteed Death Benefit Rider is in effect, as explained below.
If Guaranteed Death Benefit Rider Is Not in Effect
If an insufficiency occurs and a Guaranteed Death Benefit Rider is not in
effect, the Owner must pay during the Grace Period the amount required under the
Policy to avoid Lapse. In addition, payment of any loan interest accrued for the
Policy year but unpaid as of the Monthly Anniversary Day when insufficiency
occurs may be required prior to the end of the Grace Period.
The Company will not accept any payment if it would cause the Policy
Owner's total premium payments to exceed the maximum permissible premium for the
Policy's Specified Amount under the Internal Revenue Code. This may occur when
the Policy Owner has Outstanding Debt, in which case the Policy Owner could
repay a sufficient portion of the Outstanding Debt to avoid termination. In this
instance, the Policy Owner may wish to repay an additional portion of the
Outstanding Debt to avoid recurrence of the potential lapse. If premium payments
have not exceeded the maximum permissible premiums for the Policy's Specified
Amount, the Policy Owner may also wish to make larger or more frequent premium
payments to avoid recurrence of the potential lapse. However, the Company will
not reject any premium payments necessary to prevent lapse of the Policy.
If the Cash Value of the Policy is insufficient to cover the entire Monthly
Deduction on a Monthly Anniversary Day, the Company will deduct the amount that
is available. The Company will notify the Policy Owner (and any assignee of
record) of the payment required to keep the Policy in force. The Policy Owner
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<PAGE> 33
will then have a Grace Period of 61 days, measured from the date the notice is
sent, to make the required payment. During the first three Policy years (or
within three years of an increase in Specified Amount during that period), if
the Cash Value of the Policy is less than zero, the payment required is the
amount of Minimum Monthly Premium not paid plus one succeeding Minimum Monthly
Premium. After the Third Policy anniversary (or after three years from the most
recent increase in Specified Amount), the payment required is the amount of the
Monthly Deduction not paid plus two succeeding Monthly Deductions, grossed up by
the amount of the Deductions from Premiums (see "Charges and Deductions --
Deductions from Premiums", page 30). The Policy will remain in force through
the Grace Period. Failure to make the required payment within the Grace Period
will result in termination of coverage under the Policy, and the Policy will
lapse. If the required payment is made during the Grace Period, any premium
paid will be allocated among the Subaccounts of the Variable Account and the
Guaranteed Interest Account in accordance with the Policy Owner's current
Scheduled Premium Payment allocation instructions. Any monthly deduction due
will be charged to the Subaccounts and the Guaranteed Interest Account on a
proportionate basis. If the Insured dies during the Grace Period, the death
benefit proceeds will equal the amount of the death benefit immediately prior
to the commencement of the Grace Period, reduced by any unpaid monthly
deductions (which for Policies offered to residents of, or issued for delivery
in, the State of New Jersey cannot exceed the minimum premium for the following
month) and any Outstanding Debt.
If Guaranteed Death Benefit Rider Is in Effect
If a Guaranteed Death Benefit Rider is in effect and the test for
continuation of the Guarantee Period has been met, the Specified Amount of the
Policy and most Rider coverages will not lapse during the Guarantee Period even
if the Cash Value is not sufficient to cover all the deductions from the Fund
Value on any Monthly Anniversary Day. See "Guaranteed Death Benefit", page 21.
While the Guaranteed Death Benefit Rider is in effect, the Fund Value of
the Policy may be reduced by Monthly Deductions, but not below zero. Any Monthly
Deductions during the Guarantee Period which would reduce the Fund Value below
zero will be waived.
The Guaranteed Death Benefit Rider will be terminated if the Policy does
not meet the monthly test, as explained in "Guaranteed Death Benefit", page 21,
and the payment required under the Rider is not made within the Grace Period. If
the Guaranteed Death Benefit Rider is terminated, the normal test for lapse will
resume.
The Guaranteed Death Benefit Rider is not available on Policies offered to
residents of, or issued for delivery in, the Commonwealth of Massachusetts or
the States of New Jersey and Texas, and, therefore, Grace Period and Lapse will
be treated as described in the immediately preceding section entitled "If the
Guaranteed Death Benefit Is Not In Effect".
Reinstatement
The Company will reinstate a lapsed Policy (but not a Policy which has been
surrendered for its Cash Value) at any time within five years after the Monthly
Anniversary Day immediately before the start of the Grace Period but before the
Maturity Date, provided the Company receives the following: (i) a written
application from the Policy Owner; (ii) evidence of insurability satisfactory to
the Company; (iii) payment of all monthly deductions that were due and unpaid
during the Grace Period; (iv) payment of an amount at least sufficient to keep
the Policy in force for one month after the date of reinstatement; and (v)
payment or reinstatement of any debt on the Policy Anniversary at the start of
the Grace Period and (vi) payment of interest on debt reinstated from the
beginning of the grace period to the end of the grace period at the rate which
applies to policy loans on the date of reinstatement.
When the Policy is reinstated, the Fund Value will be equal to the Fund
Value on the date of the lapse, subject to the following: (i) the Surrender
Charge will be equal to the Surrender Charge that would have existed had the
Policy been in force since the original Policy Date; (ii) the Fund Value will be
reduced by the decrease, if any, in the Surrender Charge during the period which
the Policy was not in force; (iii) any Outstanding Debt on the date of lapse
will also be reinstated; and, (iv) no interest on amounts held in the Company's
Loan Account to secure Outstanding Debt will be paid or credited between lapse
and reinstate-
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<PAGE> 34
ment. Reinstatement will be effective as of the Monthly Anniversary Day on or
preceding the date of approval by the Company, and Fund Value minus, if
applicable, Outstanding Debt will be allocated among the Subaccounts and the
Guaranteed Interest Account in accordance with the Policy Owner's most recent
Scheduled Premium Payment allocation instructions.
CHARGES AND DEDUCTIONS
DEDUCTIONS FROM PREMIUMS
Certain charges are deducted from each premium payment under a Policy prior
to allocation of the net premium to the Policy Owner's Fund Value. These charges
consists of the following items:
Sales Charge
Sales charge varies based on the total of the Specified Amount plus Term
Insurance amount in force on the Policy Date. For total amounts less than
$500,000, the sales charge is equal to 4% of each premium paid. For total
amounts of $500,000 or more, the sales charge is equal to 3% of each premium
paid.
The sales charge is deducted to compensate the Company for the cost of
distributing the Policies. The amount derived by the Company from the sales
charge is not expected to be sufficient to cover the sales and distribution
expenses in connection with the Policies. If surrendered within 15 years after
issuance, or within 15 years following an increase in the Specified Amount, the
Policy will also be subject to a Surrender Charge, which is described on page
33. To the extent that sales and distribution expenses exceed sales charges and
any amounts derived from the Surrender Charge, such expenses may be recovered
from other charges, including amounts derived indirectly from the charge for
mortality and expense risks and from mortality gains.
Tax Charges
All states levy taxes on life insurance premium payments. The amount of
these taxes vary from state to state, and may vary from jurisdiction to
jurisdiction within a state. The Company currently deducts an amount equal to
2.25% of each premium to pay applicable premium taxes. Currently, these taxes
range from 0% to 4%, and, therefore, the 2.25% deduction may be higher or lower
than the actual premium tax imposed by the applicable jurisdiction. The 2.25%
rate approximates the average tax rate the Company expects to pay on premiums.
The Company does not expect to make a profit from this charge.
A charge currently equal to 1.5% of each premium payment is deducted from
each premium to cover the estimated cost for the Federal income tax treatment of
deferred acquisition costs determined solely by the amount of life insurance
premiums received. The Company believes this charge for deferred acquisitions
costs is reasonable in relation to the Company's increased federal tax burden
under IRC Section 848 resulting from the receipt of premium payments. No charge
will be deducted where premiums received from a Policy Owner are not subject to
this tax.
The Company reserves the right to increase or decrease the charge for taxes
due to any change in tax law or due to any change in the cost to the Company.
DAILY DEDUCTIONS FROM THE VARIABLE ACCOUNT
Mortality and Expense Risk Charge
Each day a charge is deducted for mortality and expense risks assumed by
the Company. This charge is guaranteed not to exceed .000959% per day of the
amount in the Subaccounts of the Variable Account, which is equivalent to an
annual rate of .35% of the portion of the Policy Fund Value allocated to the
Variable Account.
The mortality and expense risk charge is assessed to compensate the Company
for assuming mortality and expense risks under the Policies. The mortality risk
assumed is that Insureds, as a group, may live for a shorter period of time than
estimated and, therefore, the cost of insurance charges specified in the Policy
will
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<PAGE> 35
be insufficient to meet the Company's actual claims. The expense risk the
Company assumes is that other expenses incurred in issuing and administering the
Policies and operating the Variable Account will be greater than the amount
estimated when setting the charges for these expenses. The Company will realize
a profit from this fee to the extent it is not needed to provide benefits and
pay expenses under the Policies. The Company may use this profit for other
purposes, including any distribution expenses not covered by the sales charge or
Surrender Charge.
This charge is not assessed against the amount of the Policy Fund Value
which is allocated to the Guaranteed Interest Account, nor to amounts in the
Loan Account.
MONTHLY DEDUCTIONS FROM FUND VALUE
A charge called the monthly deduction is deducted from a Policy's Fund
Value in the Subaccounts and Guaranteed Interest Account beginning on the Policy
Date and on each Monthly Anniversary Day thereafter. The monthly deduction
consists of the following items:
Cost of Insurance
This monthly charge compensates the Company for the anticipated cost of
paying death benefits in excess of Fund Value to Beneficiaries of Insureds who
die. The amount of the charge is equal to a current cost of insurance rate
multiplied by the net amount at risk under a Policy at the beginning of the
Policy Month. The net amount at risk for these purposes is equal to the amount
of death benefit payable at the beginning of the Policy Month less the Fund
Value at the beginning of the Policy Month.
The Policy contains guaranteed cost of insurance rates that may not be
increased. The guaranteed rates are based on the 1980 Commissioners Standard
Ordinary Smoker and Nonsmoker Mortality Tables (for issue ages under 18, no
smoker/nonsmoker adjustment is made until attained age 15 and where unisex cost
of insurance rates apply, the 1980 Commissioners Ordinary Smoker and Nonsmoker
Mortality Table B). These rates are based on the Age and underwriting class of
the Insured. They are also based on the gender of the Insured, except that
unisex rates are used where appropriate under applicable law, including in the
state of Montana and in Policies purchased by employers and employee
organizations in connection with employment related insurance or benefit
programs. As of the date of this prospectus, the Company charges "current rates"
that are lower (i.e., less expensive) than the guaranteed rates, and the Company
may also change current rates in the future. Like the guaranteed rates, the
current rates also vary with the age, gender, smoking status, and underwriting
class of the Insured. In addition, they also vary with the policy duration. The
cost of insurance rate generally increases with the Age of the Insured.
If there have been increases in the Specified Amount, then for purposes of
calculating the cost of insurance charge, the Fund Value will first be applied
to the initial Specified Amount. If the Fund Value exceeds the initial Specified
Amount, the excess will then be applied to any increase in Specified Amount in
the order of the increases. If the death benefit equals the Fund Value
multiplied by the applicable death benefit percentage, any increase in Fund
Value will cause an automatic increase in the death benefit. The underwriting
class and duration for such increase will be the same as that used for the most
recent increase in Specified Amount (that has not been eliminated through a
subsequent decrease in Specified Amount).
Administrative Charge
An administrative charge of $5.00 is deducted monthly from the Fund Value.
The administrative charge is assessed to reimburse the Company for the
expenses associated with administration and maintenance of the Policies. The
administrative charge is guaranteed never to exceed $5.00. The Company does not
expect to profit from this charge.
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<PAGE> 36
Monthly per $1,000 Specified Amount Charge
For the first 15 policy years following issue or increase in Specified
Amount, a per $1,000 Specified Amount charge will apply. These per $1,000 of
Specified Amount charges differ based on issue age of the coverage segment,
gender and smoking status. The monthly per $1,000 factors are shown in Appendix
B.
Guaranteed Death Benefit Charge
If the Guaranteed Death Benefit Rider has been elected, a charge of $0.01
per thousand dollars of Policy Specified Amount and certain Rider amounts is
deducted each month during the Guarantee Period. This charge is guaranteed never
to exceed this amount.
The Guaranteed Death Benefit Rider is not available on Policies offered to
residents of, or issued for delivery in, the Commonwealth of Massachusetts or
the States of New Jersey and Texas.
Other Optional Insurance Benefits Charges
The monthly deduction will include charges for any other optional insurance
benefits added to the Policy by Rider. See "Other Optional Insurance Benefits,"
page 22.
SURRENDER CHARGE
There will be a difference between the Fund Value of the Policy and its
Cash Value for at least the first fourteen Policy years. If there is no
Outstanding Debt, this difference is the Surrender Charge, a contingent deferred
load. It is a contingent load because it is assessed only if the Policy is
surrendered or if the Policy lapses. It is a deferred load because it is not
deducted from the premiums paid. The Surrender Charge is based on a factor per
$1,000 of initial Specified Amount and grades to zero based on a grading
schedule. The factors per $1,000 of initial Specified Amount vary by issue age,
gender, and underwriting class. The grading percentages (as shown below) vary
based on issue age and the number of full years since the Policy was issued. The
Company will assess the Surrender Charge against the Fund Value upon surrender
or lapse within fourteen years after its issuance, or within fourteen years
following an increase in Specified Amount.
<TABLE>
<CAPTION>
GRADING PERCENTAGES PERCENT FOR ISSUE PERCENT FOR ISSUE
POLICY YEAR AGES 0-75 AGES 76-85
- ------------------- ----------------- -----------------
<S> <C> <C>
1-3................................................... 80% 80%
4..................................................... 80 70
5..................................................... 80 60
6..................................................... 80 50
7..................................................... 80 40
8..................................................... 70 30
9..................................................... 60 20
10.................................................... 50 10
11.................................................... 40 0
12.................................................... 30 0
13.................................................... 20 0
14.................................................... 10 0
15+................................................... 0 0
</TABLE>
As an example of the Surrender Charge calculation, if a Male Insured Age 35
purchases a Policy with a Specified Amount of $100,000, the per $1,000 of
initial Specified Amount factor, based upon the assumptions described above,
would be $7.25 (Preferred, nonsmoker, Death Benefit Option 1). The maximum
Surrender Charge during the first seven Policy years would be 80% of (100 x
7.25), or $580.00.
The maximum surrender charge per $1,000 of initial Specified Amount factor
would be $64.00 based upon the assumptions described above and if the Policy
were purchased by a Male Insured Age 85, Standard Smoker.
The purpose of the Surrender Charge is to reimburse the Company for some of
the expenses of distributing the Policies.
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<PAGE> 37
Effect of Changes in Specified Amount on the Surrender Charge
The Surrender Charge will increase when a new coverage segment of Specified
Amount is created due to a requested increase in coverage. The Surrender Charge
related to the increase will be calculated in the same manner as the Surrender
Charge for the original Specified Amount, and will be reduced over the 15 year
period following the increase. The new Surrender Charge for the Policy will
equal the remaining portion of the Surrender Charge for the original Specified
Amount, plus the Surrender Charge related to the increase.
Decreases in Specified Amount have no effect on surrender charges.
CORPORATE PURCHASERS
The Policy is available for individuals and for corporations and other
institutions. For corporate or other group or sponsored arrangements purchasing
one or more Policies, the Company may reduce the amount of the Surrender Charge
or other charges where the expenses associated with the sale of the Policy or
Policies or the underwriting or other administrative costs associated with the
Policy or Policies are reduced. Sales, underwriting or other administrative
expenses may be reduced for reasons such as expected economies resulting from a
corporate purchase or a group or sponsored arrangement, from the amount of the
initial premium payment or payments, or the amount of projected premium
payments.
TRANSACTION AND OTHER CHARGES
A Partial Surrender fee of $10 will be deducted from the Fund Value for
each Partial Surrender Transaction. This charge is guaranteed not to exceed $10.
The Company currently does not charge for transfers of Fund Value between
the Subaccounts. The Company does, however, reserve the right to assess a $25
charge on transfers (including transfers by telephone, if permitted by the
Company). For Policies issued for delivery to residents of the Commonwealth of
Pennsylvania, the Company guarantees that no transfer charge will be imposed on
transfers made within one year from the date the Policy is issued.
The Company may charge the Subaccounts for federal income taxes incurred by
the Company that are attributable to the Variable Account and its Subaccounts.
No such charge is currently assessed. See "Charge for Company Income Taxes,"
page 38.
The Company will bear the direct operating expenses of the Variable
Account. The Subaccounts purchase shares of the corresponding Portfolio of the
underlying Fund. The Fund and each of its Portfolios incur certain charges
including the investment advisory fee and certain operating expenses. The Funds
are governed by their Boards. The Fund's expenses are not fixed or specified
under the terms of the Policy. The advisory fees and other expenses are more
fully described in the prospectuses of the Funds.
FEES AND EXPENSES OF THE FUNDS
The Subaccounts purchase shares of the corresponding Portfolio of the
underlying Fund. The Fund and each of its Portfolios incur certain charges
including the investment advisory fee and certain operating expenses. These fees
and expenses vary by Portfolio are set forth below. The Funds are governed by
their Boards. The Fund's expenses are not fixed or specified under the terms of
the Policy. The advisory fees and other expenses are summarized at pages 11-12
of this Prospectus and are more fully described in the prospectuses of the
Funds.
Information contained in the following table was provided by the respective
Funds and has not been independently verified by the Company.
33
<PAGE> 38
PRO FORMA ANNUAL EXPENSES FOR THE YEAR ENDED
DECEMBER 31, 1997
<TABLE>
<CAPTION>
OTHER EXPENSES
MANAGEMENT (AFTER TOTAL
FUND/PORTFOLIO FEES REIMBURSEMENT) EXPENSES
-------------- ---------- -------------- --------
<S> <C> <C> <C>
MONY Series Fund, Inc.
Intermediate Term Bond Portfolio................. .50%(1) .09%(2) .59%
Long Term Bond Portfolio......................... .50(1) .07(2) .57
Government Securities Portfolio.................. .50(1) .14(2) .64
Money Market Portfolio........................... .40 .06(2) .46
Enterprise Accumulation Trust
Equity Portfolio................................. .80% .04% .84%
Small Cap Portfolio.............................. .80 .06 .86
Managed Portfolio................................ .73 .03 .76
International Growth Portfolio................... .85 .34 1.19
High Yield Bond Portfolio........................ .60 .17 .77
Small Company Growth Portfolio................... 1.00 * *
Equity Income Portfolio.......................... .75 * *
Capital Appreciation Portfolio................... .75 * *
Growth and Income Portfolio...................... .75 * *
Growth Portfolio................................. .75 * *
</TABLE>
- ---------------
* No data is provided as these subaccounts first became available with the
offering of the Policy.
1. Management Fees reflect investment advisory fees of .50% which became
effective on and after October 14, 1997. Prior thereto, the investment
advisory fees were .40%.
2. Includes custodial credit percentages as follows: Intermediate Term
Bond -- .0080%; Long Term Bond -- .0043%; Government Securities -- .0169%;
and Money Market -- .0048% which expenses are borne by the Investment
Adviser pursuant to the Investment Advisory Agreement.
GUARANTEE OF CERTAIN CHARGES
The Company guarantees that certain charges will not increase. This
includes the charge for mortality and expense risks, the administrative charge,
the per $1000 Specified Amount charge, the sales charge, the guaranteed cost of
insurance rates, and the Surrender Charge.
Any changes in the current cost of insurance charges or charges for
optional insurance benefits will be made by class of Insured and will be based
on changes in future expectations with respect to investment earnings,
mortality, length of time policies will remain in effect, expenses, and taxes.
In no event will they exceed the guaranteed rates defined in the Policy.
OTHER INFORMATION
FEDERAL INCOME TAX CONSIDERATIONS
The following discussion provides a general description of the federal
income tax considerations relating to the Policy. This discussion is based upon
the Company's understanding of the present federal income tax laws as they are
currently interpreted by the Internal Revenue Service ("IRS"). This discussion
is not intended as tax advice. Because of the inherent complexity of such laws
and the fact that tax results will vary according to the particular
circumstances of the individual involved, tax advice may be needed by a person
contemplating the purchase of the Policy. It should, therefore, be understood
that these comments concerning federal income tax consequences are not an
exhaustive discussion of all tax questions that might arise under the Policy and
that special rules which are not discussed herein may apply in certain
situations. Moreover, no representation is made as to the likelihood of
continuation of federal income tax or estate or gift tax laws or of the current
interpretations by the IRS or the courts. Future legislation may adversely
affect the tax treatment
34
<PAGE> 39
of life insurance policies or other tax rules described in this discussion or
that relate directly or indirectly to life insurance policies. Finally, these
comments do not take into account any state or local income tax considerations
which may be involved in the purchase of the Policy.
Definition of Life Insurance
Section 7702 of the Internal Revenue Code (the "Code") provides that if one
of two alternate tests are met, a policy will be treated as a life insurance
policy for federal tax purposes. These tests are referred to as the "Cash Value
Accumulation Test" and the "Guideline Premium/Cash Value Corridor Test".
The Policy described in this Prospectus is tested under the Guideline
Premium/Cash Value Corridor Test. This test provides for, among other things,
(i) a maximum allowable premium per thousand dollars of death benefit, known as
the "guideline annual premium", and (ii) a minimum ongoing "corridor" of death
benefit in relation to the Fund Value of the Policy, known as the "death benefit
percentage." See Appendix A, for a table of the Guideline Premium/Cash Value
Corridor Test factors.
The Company believes that the Policy meets this statutory definition of
life insurance and hence will receive federal income tax treatment consistent
with that of fixed life insurance. Thus, the Death Benefit should be excludable
from the gross income of the Beneficiary (whether the Beneficiary is a
corporation, individual or other entity) under Section 101(a)(1) of the Code for
purposes of the regular federal income tax and the Policy Owner generally should
not be deemed to be in constructive receipt of the cash values under the Policy
until a full surrender thereof, maturity of the Policy, or Partial Surrender. In
addition, certain Policy loans may be taxable in the case of Policies that are
modified endowment contracts. Prospective Policy Owners that intend to use
Policies to fund deferred compensation arrangements for their employees are
urged to consult their tax advisors with respect to the tax consequences of such
arrangements. Prospective corporate Owners should consult their tax advisors
about the treatment of life insurance in their particular circumstances for
purposes of the alternative minimum tax applicable to corporations.
Diversification Requirements
To comply with regulations under Section 817(h) of the Code, each Portfolio
is required to diversify its investments. Generally, a Portfolio is required to
diversify its investments so that on the last day of each quarter of a calendar
year, no more than 55% of the value of its assets is represented by any one
investment, no more than 70% is represented by any two investments, no more than
80% is represented by any three investments, and no more than 90% is represented
by any four investments. Securities of a single issuer generally are treated for
purposes of Section 817(h) as a single investment. However, for this purpose,
each U.S. Government agency or instrumentality is treated as a separate issuer,
and any security issued, guaranteed, or insured (to the extent so guaranteed or
insured) by the U.S. or by an agency or instrumentality of the U.S. is treated
as a security issued by the U.S. Government or its agency or instrumentality,
whichever is applicable.
While there should be no question that, for federal income tax purposes,
the Portfolio shares underlying the Policies are owned by the Company and not by
a Policy Owner or any Beneficiary, no representation is or can be made regarding
the likelihood of the continuation of current interpretations by the IRS.
Tax Treatment of Policies
The Technical and Miscellaneous Revenue Act of 1988 established a new class
of life insurance contracts referred to as modified endowment contracts. With
the enactment of this legislation, the Policies will be treated for tax purposes
in one of two ways. Policies that are not classified as modified endowment
contracts will be taxed as conventional life insurance contracts, as described
below. Taxation of pre-death distributions from Policies that are classified as
modified endowment contracts is somewhat different, as described below.
A life insurance contract becomes a "modified endowment contract" if, at
any time during the first seven contract years, the sum of actual premiums paid
exceeds the sum of the "seven-pay premium." Generally, the "seven-pay premium"
is the level annual premium, such that if paid for each of the first seven
years, will fully
35
<PAGE> 40
pay for all future death and endowment benefits under a contract. For example,
if the "seven-pay premiums" were $1,000, the maximum premiums that could be paid
during the first seven years to avoid "modified endowment" treatment would be
$1,000 in the first year; $2,000 through the first two years and $3,000 through
the first three years, etc. Under this test, a Policy may or may not be a
modified endowment contract, depending on the amount of premiums paid during
each of the Policy's first seven contract years. Changes in benefits may require
retesting to determine if the Policy is to be classified as a modified endowment
contract.
Conventional Life Insurance Policies
If a Policy is not a modified endowment contract, upon full surrender or
maturity of a Policy for its Cash Value, the excess, if any, of the Cash Value
plus any outstanding Policy Debt over the cost basis under a Policy will be
treated as ordinary income for federal income tax purposes. A Policy's cost
basis will usually equal the premiums paid less any premiums previously
recovered through Partial Surrenders. Under Section 7702 of the Code, special
rules apply to determine whether part or all of the cash received through
Partial Surrenders in the first 15 Policy years is paid out of the income of the
Policy and therefore subject to income tax. Cash distributed to a Policy Owner
on Partial Surrenders occurring more than 15 years after the Policy Date will be
taxable as ordinary income to the Policy Owner to the extent that it exceeds the
cost basis under a Policy.
The Company also believes that loans received under Policies that are not
modified endowment contracts will be treated as indebtedness of the Owner, and
that no part of any loan under the Policy will constitute income to the Owner
unless the Policy is surrendered or upon maturity of the Policy. Interest paid
(or accrued by an accrual basis taxpayer) on a loan under a Policy that is not a
modified endowment contract may be deductible, subject to several limitations,
depending on the use to which the proceeds are put and the tax rules applicable
to the Policy Owner. If, for example, the loan proceeds are used by an
individual for business or investment purposes, all or part of the interest
expense may be deductible. Generally, if the Policy Loan is used for personal
purposes by an individual, the interest expense is not deductible. The
deductibility of loan interest (whether incurred under a Policy Loan or on other
indebtedness) also may be subject to other limitations. For example, where the
interest is paid (or accrued by an accrual basis taxpayer) on a loan under a
Policy covering the life of an officer, employee, or person financially
interested in the trade or business of the Policy Owners, the interest may be
deductible to the extent that the interest is attributable to the first $50,000
of the Outstanding Debt. Other tax law provisions may limit the deduction of
interest payable on loan proceeds that are used to purchase or carry certain
life insurance policies.
Modified Endowment Contracts
Pre-death distributions from modified endowment contracts may give rise to
taxable income. Upon full surrender or maturity of the Policy, the Policy Owner
would recognize ordinary income for federal income tax purposes equal to the
amount by which the Cash Value plus Outstanding Debt exceeds the investment in
the Policy (usually the premiums paid plus certain pre-death distributions that
were taxable less any premiums previously recovered that were excludable from
gross income). Upon Partial Surrenders and Policy loans, the Policy Owner would
recognize ordinary income to the extent allocable to income (which includes all
previously non-taxed gains) on the Policy. The amount allocated to income is the
amount by which the Fund Value of the Policy exceeds investment in the Policy
immediately before the distribution. Under a tax law provision, if two or more
policies which are classified as modified endowment contracts are purchased from
any one insurance company, including the Company, during any calendar year, all
such policies will be aggregated for purposes of determining the portion of the
pre-death distributions allocable to income on the policies and the portion
allocable to investment in the policies.
Amounts received under a modified endowment contract that are included in
gross income are subject to an additional tax equal to 10% of the amount
included in gross income, unless an exception applies. The 10% additional tax
does not apply to any amount received: (i) when the taxpayer is at least 59 1/2
years old; (ii) which is attributable to the taxpayer becoming disabled; or
(iii) which is part of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life expectancy) of the
taxpayer or the joint lives (or joint life expectancies) of the taxpayer and his
or her beneficiary.
36
<PAGE> 41
If a Policy was not originally a modified endowment contract but becomes
one, under Treasury Department regulations which are yet to be prescribed,
pre-death distributions received in anticipation of a failure of a Policy to
meet the seven-pay premium test are to be treated as pre-death distributions
from a modified endowment contract (and, therefore, are to be taxable as
described above) even though, at the time of the distribution(s), the Policy was
not yet a modified endowment contract. For this purpose, pursuant to the Code,
any distribution made within two years before the Policy is classified as a
modified endowment contract shall be treated as being made in anticipation of
the Policy's failing to meet the seven-pay premium test.
It is unclear whether interest paid (or accrued by an accrual basis
taxpayer) on Outstanding Debt with respect to a modified endowment contract
constitutes interest for federal income tax purposes. If it does constitute
interest, it may be deductible, subject to several limitations, depending on the
use to which the proceeds are put and the tax rules applicable to the Policy
Owner. If, for example, the loan proceeds are used by an individual for business
or investment purposes, all or part of the interest expense may be deductible.
Generally, if the Policy loan is used for personal purposes by an individual,
the interest expense is not deductible. The deductibility of loan interest
(whether incurred under a Policy Loan or on other indebtedness) also may be
subject to other limitations. For example, where the interest is paid (or
accrued by an accrual basis taxpayer) on a loan under a Policy covering the life
of an officer, employee, or person financially interested in the trade or
business of the Policy Owners, the interest may be deductible to the extent that
the interest is attributable to the first $50,000 of the Outstanding Debt. Other
tax law provisions may limit the deduction of interest payable on loan proceeds
that are used to purchase or carry certain life insurance policies.
Reasonableness Requirement for Charges
Another provision of the tax law deals with allowable charges for mortality
costs and other expenses that are used in making calculations to determine
whether a contract qualifies as life insurance for federal income tax purposes.
For life insurance policies entered into on or after October 21, 1988, these
calculations must be based upon reasonable mortality charges and other charges
reasonably expected to be actually paid. The Treasury Department is expected to
promulgate regulations governing reasonableness standards for mortality charges.
The Company believes that the mortality costs and other expenses used in making
calculations to determine whether the Policy qualifies as life insurance meet
the current requirements. It is possible that future regulations will contain
standards that would require the Company to modify its mortality charges used
for the purposes of the calculations in order to retain qualification of the
Policy as life insurance for federal income tax purposes, and the Company
reserves the right to make any such modifications.
Pension and Profit-Sharing Plans
If the Policies described in this Prospectus are purchased by a fund which
forms part of a pension or profit-sharing plan qualified under Sections 401(a)
or 403 of the Code for the benefit of participants covered under the plan, the
federal income tax treatment of such policies will be somewhat different from
that described above.
If purchased as part of a pension or profit sharing plan, the current cost
of insurance for the net amount at risk is treated as a "current fringe benefit"
and is required to be included annually in the plan participant's gross income.
This cost (generally referred to as the "P.S. 58" cost) is reported to the
participant annually. If the plan participant dies while covered by the plan and
the policy proceeds are paid to the participant's beneficiary, then the excess
of the death benefit over the Policy Fund Value will not be subject to Federal
income tax. However, the Policy Fund Value will generally be taxable to the
extent it exceeds the sum of $5,000 plus the participant's cost basis in the
Policy. The participant's cost basis will generally include the costs of
insurance previously reported as income to the participant. Special rules may
apply if the participant had borrowed from his Policy or was an owner-employee
under the plan.
There are limits on the amounts of life insurance that may be purchased on
behalf of a participant in a pension or profit sharing plan. Complex rules, in
addition to those discussed above, apply whenever life insurance is purchased by
a tax qualified plan.
37
<PAGE> 42
Other Employee Benefit Programs
Complex rules may apply when a Policy is held by an employer or a trust, or
acquired by an employee, in connection with the provision of employee benefits.
These Policy Owners also must consider whether the Policy was applied for by or
issued to a person having an insurable interest under applicable state law, as
the lack of insurable interest may, among other things, affect the qualification
of the Policy as life insurance for federal income tax purposes and the right of
the beneficiary to death benefits. Employers and employer-created trusts may be
subject to reporting, disclosure, and fiduciary obligations under the Employee
Retirement Income Security Act of 1974 (ERISA). The Policy Owner's legal advisor
should be consulted to address these issues.
Other
Federal estate and gift and state and local estate, inheritance, and other
tax consequences of ownership or receipt of Policy proceeds depend on the
jurisdiction and the circumstances of each Owner or Beneficiary.
For complete information on federal, state, local and other tax
considerations, a qualified tax advisor should be consulted.
THE COMPANY DOES NOT MAKE ANY GUARANTEE REGARDING
THE TAX STATUS OF ANY POLICY
CHARGE FOR COMPANY INCOME TAXES
For federal income tax purposes, variable life insurance generally is
treated in a manner consistent with fixed life insurance. The Company will
review the question of a charge to the Variable Account for the Company's
federal income taxes periodically. A charge may be made for any federal income
taxes incurred by the Company that are attributable to the Variable Account.
This might become necessary if the tax treatment of the Company is ultimately
determined to be other than what the Company currently believes it to be, if
there are changes made in the federal income tax treatment of variable life
insurance at the insurance company level, or if there is a change in the
Company's tax status.
Under current laws, the Company may incur state and local taxes (in
addition to premium taxes imposed by the states) in several states. At present,
these taxes are not significant. If there is a material change in applicable
state or local tax laws or in the cost to the Company, the Company reserves the
right to charge the Account for such taxes, if any, attributable to the Account.
VOTING OF FUND SHARES
In accordance with its view of present applicable law, the Company will
exercise voting rights attributable to the shares of each portfolio of the Funds
held in the Subaccounts at any regular and special meetings of the shareholders
of the Funds on matters requiring shareholder voting under the Investment
Company Act of 1940. The Company will exercise these voting rights based on
instructions received from persons having the voting interest in corresponding
Subaccounts of the Variable Account. However, if the Investment Company Act of
1940 or any regulations thereunder should be amended, or if the present
interpretation thereof should change, and as a result the Company determines
that it is permitted to vote the shares of the Funds in its own right, it may
elect to do so.
The person having the voting interest under a Policy is the Policy Owner.
Unless otherwise required by applicable law, the number of votes as to which a
Policy Owner will have the right to instruct for any Portfolio will be
determined by dividing a Policy Owner's Fund Value in the Subaccount which
corresponds to the Portfolio by $100. Fractional votes will be counted. The
number of votes as to which a Policy Owner will have the right to instruct will
be determined as of the date determined by the Company, but in no event shall
such date be more than 90 days prior to the date established by the respective
Fund for determining shareholders eligible to vote at the meeting of the
respective Fund. If required by the Securities and Exchange Commission, the
Company reserves the right to determine in a different fashion the voting rights
attributable to the shares
38
<PAGE> 43
of the respective Fund based upon the instructions received from Policy Owners.
Voting instructions may be cast in person or by proxy.
Voting rights attributable to the Policy Owner's Fund Value held in each
Subaccount for which no timely voting instructions are received will be voted by
the Company in the same proportion as the voting instructions which are received
in a timely manner for all Policies participating in that Subaccount. The
Company will also exercise the voting rights from assets in each Subaccount
which are not otherwise attributable to Policy Owners, if any, in the same
proportion as the voting instructions which are received in a timely manner for
all Policies participating in that Subaccount and generally will exercise voting
rights attributable to shares of Portfolios of the Funds held in its General
Account, if any, in the same proportion as votes cast with respect to shares of
Portfolios of the Funds held by the Variable Account and other separate accounts
of the Company, in the aggregate.
DISREGARD OF VOTING INSTRUCTIONS
The Company may, when required by state insurance regulatory authorities,
disregard voting instructions if the instructions require that voting rights be
exercised so as to cause a change in the subclassification or investment
objective of a Portfolio or to approve or disapprove an investment advisory
contract. In addition, the Company itself may disregard voting instructions of
changes initiated by Policy Owners in the investment policy or the investment
adviser (or portfolio manager) of a Portfolio, provided that the Company's
disapproval of the change is reasonable and is based on a good faith
determination that the change would be contrary to state law or otherwise
inappropriate, considering the Portfolio's objectives and purpose, and
considering the effect the change would have on the Company. In the event the
Company does disregard voting instructions, a summary of that action and the
reasons for such action will be included in the next report to Policy Owners.
REPORT TO POLICY OWNERS
A statement will be sent at least annually to each Policy Owner setting
forth a summary of the transactions which occurred since the last statement and
indicating the death benefit, Specified Amount, Fund Value, Cash Value, and any
Outstanding Debt. In addition, the statement will indicate the allocation of
Fund Value among the Guaranteed Interest Account, the Loan Account and the
Subaccounts and any other information required by law. Confirmations will be
sent out upon premium payments, transfers, loans, loan repayments, withdrawals,
and surrenders.
Each Policy Owner will also receive an annual and a semiannual report
containing financial statements for the Variable Account and the Funds, the
latter of which will include a list of the portfolio securities of the Funds, as
required by the Investment Company Act of 1940, and/or such other reports as may
be required by federal securities laws.
SUBSTITUTION OF INVESTMENTS AND RIGHT TO CHANGE OPERATIONS
The Company reserves the right, subject to compliance with the law as then
in effect, to make additions to, deletions from, or substitutions for the
securities that are held by the Variable Account or any of its other separate
accounts or that the Variable Account or any of its other separate accounts may
purchase. If shares of any or all of the Portfolios of the Funds should no
longer be available for investment, or if, in the judgment of the Company's
management, further investment in shares of any or all Portfolios of the Funds
should become inappropriate in view of the purposes of the Policies, the Company
may substitute shares of another Portfolio of the Funds or of a different fund
for shares already purchased, or to be purchased in the future under the
Policies.
Where required, the Company will not substitute any shares attributable to
a Policy Owner's interest in a Variable Account without notice, Policy Owner
approval, or prior approval of the Securities and Exchange Commission and
without following the filing or other procedures established by applicable state
insurance regulators. Applicable state insurance regulators include the
Commissioner of Insurance of the State of Arizona.
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<PAGE> 44
The Company also reserves the right to establish additional Subaccounts of
the Variable Account, each of which would invest in a new portfolio of the
Funds, or in shares of another investment company, a portfolio thereof, or
another suitable investment vehicle, with a specified investment objective. New
Subaccounts may be established when, in the sole discretion of the Company,
marketing needs or investment conditions warrant, and any new Subaccounts will
be made available to existing Policy Owners on a basis to be determined by the
Company. The Company may also eliminate one or more Subaccounts if, in its sole
discretion, marketing, tax, or investment conditions so warrant.
In the event of any such substitution or change, the Company may, by
appropriate endorsement, make such changes in this and other policies as may be
necessary or appropriate to reflect such substitution or change. If deemed by
the Company to be in the best interests of persons having voting rights under
the Policies, the Variable Account may be operated as a management investment
company under the Investment Company Act of 1940 or any other form permitted by
law, it may be deregistered under that Act in the event such registration is no
longer required, or it may be combined with other separate accounts of the
Company or an affiliate thereof. Subject to compliance with applicable law, the
Company also may combine one or more Subaccounts and may establish a committee,
board, or other group to manage one or more aspects of the operation of the
Variable Account.
CHANGES TO COMPLY WITH LAW
The Company reserves the right to make any change without consent of Policy
Owners to the provisions of the Policy to comply with, or give Policy Owners the
benefit of, any Federal or State statute, rule, or regulation, including but not
limited to requirements for life insurance contracts under the Internal Revenue
Code, under regulations of the United States Treasury Department or any state.
PERFORMANCE INFORMATION
Performance information for the Subaccounts of the Variable Account may
appear in advertisements, sales literature, or reports to Policy Owners or
prospective purchasers. Performance information in advertisements or sales
literature may be expressed in any fashion permitted under applicable law, which
may include presentation of a change in a Policy Owner's Fund Value attributable
to the performance of one or more Subaccounts, or as a change in Policy Owner's
death benefit. Performance quotations may be expressed as a change in a Policy
Owner's Fund Value over time or in terms of the average annual compounded rate
of return on the Policy Owner's Fund Value, based upon a hypothetical Policy in
which premiums have been allocated to a particular Variable Account over certain
periods of time that will include one, five and ten years, or from the
commencement of operation of the Variable Account if less than one, five, or ten
years. Any such quotation may reflect the deduction of all applicable charges to
the Policy including premium load, the cost of insurance, the administrative
charge, and the mortality and expense risk charge. The quotation may also
reflect the deduction of the Surrender Charge, if applicable, by assuming a
surrender at the end of the particular period, although other quotations may
simultaneously be given that do not assume a surrender and do not take into
account deduction of the Surrender Charge.
Performance information for the Variable Account may be compared, in
advertisements, sales literature, and reports to Policy Owners to: (i) other
variable life separate accounts or investment products tracked by research
firms, ratings services, companies, publications, or persons who rank separate
accounts or investment products on overall performance or other criteria; and
(ii) the Consumer Price Index (measure for inflation) to assess the real rate of
return from the purchase of a Policy. Reports and promotional literature may
also contain the Company's rating or a rating of the Company's claim paying
ability as determined by firms that analyze and rate insurance companies and by
nationally recognized statistical rating organizations.
Performance information for any Subaccount of the Variable Account reflects
only the performance of a hypothetical Policy whose Fund Value is allocated to
the Variable Account during a particular time period on which the calculations
are based. Performance information should be considered in light of the
investment objectives and policies, characteristics and quality of the
Portfolios of the Funds in which the Variable
40
<PAGE> 45
Account invests, and the market conditions during the given period of time, and
should not be considered as a representation of what may be achieved in the
future.
THE GUARANTEED INTEREST ACCOUNT
Policy Owners may allocate all or a portion of their net premiums and
transfer Fund Value to the Guaranteed Interest Account of the Company. Amounts
allocated to the Guaranteed Interest Account become part of the "General
Account" of the Company, which supports insurance and annuity obligations. The
amounts allocated to the General Account of the Company are subject to the
liabilities arising from the business the Company conducts. Descriptions of the
Guaranteed Interest Account are included in this Prospectus for the convenience
of the Purchaser. The Guaranteed Interest Account and the General Account of the
Company have not been registered under the Securities Act of 1933 and the
Investment Company Act of 1940. Accordingly, neither the Guaranteed Interest
Account nor any interest therein is generally subject to the provisions of these
Acts and, as a result, the staff of the Securities and Exchange Commission has
not reviewed the disclosure in this prospectus relating to the Guaranteed
Interest Account. Disclosures regarding the Guaranteed Interest Account may,
however, be subject to certain generally applicable provisions of the federal
securities laws relating to the accuracy and completeness of statements made in
the prospectus. For more details regarding the Guaranteed Interest Account, see
the Policy.
GENERAL DESCRIPTION
Amounts allocated to the Guaranteed Interest Account become part of the
General Account of Company which consists of all assets owned by the Company
other than those in the Variable Account and other separate accounts of the
Company. Subject to applicable law, the Company has sole discretion over the
investment of the assets of its General Account.
The Policy Owner may elect to allocate net premiums to the Guaranteed
Interest Account, the Variable Account, or both. The Policy Owner may also
transfer Fund Value from the Subaccounts of the Variable Account to the
Guaranteed Interest Account, or from the Guaranteed Interest Account to the
Subaccounts. Company guarantees that the Fund Value in the Guaranteed Interest
Account will be credited with a minimum interest rate of 0.0121% daily,
compounded daily, for a minimum effective annual rate of 4.5%. Such interest
will be paid regardless of the actual investment experience of the Guaranteed
Interest Account. In addition, Company may in its sole discretion declare
current interest in excess of the 4.5% annual rate, which will be guaranteed for
approximately one year. (The portion of a Policy Owner's Fund Value that has
been used to secure Outstanding Debt will be credited with a guaranteed interest
rate of 0.0121% daily, compounded daily, for a minimum effective annual rate of
4.5%.)
The Company bears the full investment risk for the Fund Value allocated to
the Guaranteed Interest Account.
DEATH BENEFIT
The death benefit under the Policy will be determined in the same fashion
for a Policy Owner who has Fund Value in the Guaranteed Interest Account as for
a Policy Owner who has Fund Value in the Subaccounts. The Death Benefit under
Option 1 will be equal to the Specified Amount of the Policy or, if greater,
Fund Value on the date of death multiplied by a death benefit percentage. Under
Option 2, the Death Benefit will be equal to the Specified Amount of the Policy
plus the Fund Value or, if greater, Fund Value on the date of death multiplied
by a death benefit percentage. See "Death Benefits under the Policy," page 18.
POLICY CHARGES
Deductions from premium, monthly deductions from the Fund Value, and Fund
Charges will be the same for Policy Owners who allocate net premiums or transfer
Fund Value to the Guaranteed Interest Account as for Policy Owners who allocate
net premiums to the Subaccounts. These charges include the sales and tax
charges; the charges for the cost of insurance, administrative charge, per
$1,000 of Specified Amount
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<PAGE> 46
charge, the charge for any optional insurance benefits added by Rider; and the
Surrender Charge. Fees for Partial Surrenders and, if applicable, transfer
charges, will also be deducted from the Guaranteed Interest Account.
Charges applicable to the Portfolios, including the operating expenses of
the Portfolios, as well as the investment advisory fee charged by the Portfolio
managers, will not be paid directly or indirectly by Policy Owners to the extent
the Fund Value is allocated to the Guaranteed Interest Account. Likewise, the
mortality and expense risk charge applicable to the Fund Value allocated to the
Subaccounts is not deducted from Fund Value allocated to the Guaranteed Interest
Account. Any amounts that the Company pays for income taxes allocable to the
Subaccounts will not be charged against the Guaranteed Interest Account.
However, it is important to remember that Policy Owners will not participate in
the investment experience of the Subaccounts to the extent that Fund Values are
allocated to the Guaranteed Interest Account.
TRANSFERS
Amounts may be transferred after the Right to Return Policy Period from the
Subaccounts to the Guaranteed Interest Account and from the Guaranteed Interest
Account to the Subaccounts, subject to the following limitations.
Transfers to the Guaranteed Interest Account may be made at any time and in
any amount.
Transfers from the Guaranteed Interest Account to the Subaccounts are
limited to one in any Policy year. Transfers from the Guaranteed Interest
Account may only be made during the time period which begins on the Policy
Anniversary and which ends 30 days after the Policy Anniversary. If the transfer
request is received on the Policy Anniversary, it will be processed as of the
Policy Anniversary; if it is received within 30 days after the Policy
Anniversary, the transfer will be effective as of the close of business on the
day received if it is a Business Day, or if not a Business Day, then at the
close of business on the next day which is a Business Day. Any request received
within 10 days before the Policy Anniversary will be deemed received on the
Policy Anniversary. Any transfer requests received at other times will not be
honored, and will be returned to the Policy Owner.
Currently there is no charge imposed upon transfers; however, the Company
reserves the right to assess such a charge in the future.
SURRENDERS AND POLICY LOANS
The Policy Owner may also make Full Surrenders and Partial Surrenders from
the Guaranteed Interest Account to the same extent as a Policy Owner who has
invested in the Subaccounts. See "Full Surrender," page 27 and "Partial
Surrender", page 27. Transfers and surrenders payable from the Guaranteed
Interest Account, and the payment of Policy loans allocated to the Guaranteed
Interest Account, may be delayed for up to six months. However, with respect to
Policies issued for delivery to residents of the Commonwealth of Pennsylvania,
the Company will not delay payment of surrenders or loans, the proceeds of which
will be used to pay premiums on the Policy.
MORE ABOUT THE POLICY
OWNERSHIP
The Policy Owner is the individual named as such in the application or in
any later change shown in the Company's records. While the Insured is living,
the Policy Owner alone has the right to receive all benefits and exercise all
rights that the Policy grants or the Company allows.
Joint Owners
If more than one person is named as Policy Owner, they are joint owners.
Any Policy transaction requires the signature of all persons named jointly.
Unless otherwise provided, if a joint owner dies, ownership passes to
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<PAGE> 47
the surviving joint owner(s). When the last joint owner dies, ownership passes
through that person's estate, unless otherwise provided.
BENEFICIARY
The Beneficiary is the individual named as such in the application or any
later change shown in the Company's records. The Policy Owner may change the
Beneficiary at any time during the life of the Insured by written request on
forms provided by the Company, which must be received by the Company at its
Administrative Office. The change will be effective as of the date this form is
signed. Contingent and/or concurrent Beneficiaries may be designated. The Policy
Owner may designate a permanent Beneficiary, whose rights under the Policy
cannot be changed without his or her consent. Unless otherwise provided, if no
designated Beneficiary is living upon the death of the Insured, the Policy Owner
or the Policy Owner's estate is the Beneficiary.
The Company will pay the death benefit proceeds to the Beneficiary. Unless
otherwise provided, in order to receive proceeds at the Insured's death, the
Beneficiary must be living at the time of the Insured's death.
THE POLICY
This Policy is a contract between the Policy Owner and the Company. The
entire contract consists of the Policy, a copy of the initial application, all
subsequent applications to change the Policy, any endorsements, all Riders, and
all additional Policy information sections (specification pages) added to the
Policy.
NOTIFICATION AND CLAIMS PROCEDURES
Any election, designation, change, assignment, or request made by the
Policy Owner must be in writing on a form acceptable to the Company. The Company
is not liable for any action taken before such written notice is received and
recorded. The Company may require that the Policy be returned for any Policy
change or upon its surrender.
In the event of an Insured's death while the Policy is in force notice
should be given to the Company as soon as possible. Claim procedure instructions
will be sent immediately. As due proof of death, the Company may require proof
of Age and a certified copy of a death certificate. The Company may also require
the Beneficiary and the Insured's next of kin to sign authorizations as part of
this process. These authorization forms allow the Company to obtain information
about the Insured, including but not limited to medical records of physicians
and hospitals used by the Insured.
PAYMENTS
The Company will pay death benefit proceeds, the Cash Value on surrender,
Partial Surrenders and loan proceeds based on allocations made to the
Subaccounts, and will effect a transfer between Subaccounts or from the Variable
Account to the Guaranteed Interest Account within seven days after the Company
receives all the information needed to process a payment.
However, the Company can postpone the calculation or payment of such a
payment or transfer of amounts based on investment performance of the
Subaccounts if:
The New York Stock Exchange is closed on other than customary weekend
and holiday closing or trading on the New York Stock Exchange is restricted
as determined by the SEC; or
An emergency exists, as determined by the SEC, as a result of which
disposal of securities is not reasonably practicable or it is not
reasonably practicable to determine the value of the Account's net assets.
PAYMENT PLAN/SETTLEMENT PROVISIONS
Maturity or surrender benefits may be used to purchase a payment plan
providing monthly income for the lifetime of the Insured, and death benefit
proceeds may be used to purchase a payment plan providing monthly
43
<PAGE> 48
income for the lifetime of the Beneficiary. The monthly payments consisting of
proceeds plus interest will be paid in equal installments for at least ten
years. The purchase rates for the payment plan are guaranteed not to exceed
those shown in the Policy, but current rates that are lower (i.e., providing
greater income) may be established by the Company from time to time. This
benefit is not available if the income would be less than $25 a month or if the
proceeds are less than $1,000. Maturity or surrender benefits or death benefit
proceeds may be used to purchase any other payment plan that the Company makes
available at that time.
PAYMENT IN CASE OF SUICIDE
If the Insured dies by suicide, while sane or insane, within two years from
the Policy Date or Reinstatement Date, the Company will limit the death benefit
proceeds to the premium payments less any Partial Surrender amounts (and their
fees) and less any Outstanding Debt. If an Insured dies by suicide, while sane
or insane, within two years of the effective date of any increase in the
Specified Amount, the Company will refund the cost of insurance charges made
with respect to such increase.
ASSIGNMENT
The Policy Owner may assign a Policy as collateral security for a loan or
other obligation. No assignment will bind the Company unless the original, or a
copy, is received at the Company's Administrative Office, and it will be
effective only when recorded by the Company. An assignment does not change the
ownership of the Policy. However, after an assignment, the rights of any Policy
Owner or Beneficiary will be subject to the assignment. The entire Policy,
including any attached payment option or Rider, will be subject to the
assignment. The Company will rely solely on the assignee's statement as to the
amount of the assignee's interest. The Company will not be responsible for the
validity of any assignment. Unless otherwise provided, the assignee may exercise
all rights this Policy grants except (a) the right to change the Policy Owner or
Beneficiary; and (b) the right to elect a payment option. Assignment of a Policy
that is a modified endowment contract may generate taxable income. (See "Federal
Income Tax Considerations", page 34.)
ERRORS ON THE APPLICATION
If the Age or gender of the Insured has been misstated, the death benefit
under this Policy will be the greater of that which would be purchased by the
most recent cost of insurance charge at the correct Age and gender, or the death
benefit derived by multiplying the Fund Value by the death benefit percentage
for the correct Age and gender. If unisex cost of insurance rates apply, no
adjustment will be made for a misstatement of gender. See "Cost of Insurance",
page 31.
INCONTESTABILITY
The Company may contest the validity of this Policy if any material
misstatements are made in the application. However, the Policy will be
incontestable as follows: the initial Specified Amount cannot be contested after
the Policy has been in force during the Insured's lifetime for two years from
the Policy Date; and an increase in the Specified Amount or any reinstatement
cannot be contested after the increase or the reinstated policy has been in
force during an Insured's lifetime for two years from its effective date.
POLICY ILLUSTRATIONS
Upon request, the Company will send the Policy Owner an illustration of
future benefits under the Policy based on both guaranteed and current cost
assumptions.
DISTRIBUTION OF THE POLICY
MONY Securities Corp. ("MSC"), a wholly owned subsidiary of MONY, is
principal underwriter (distributor) of the Policies. MSC is registered as a
broker-dealer under the Securities Exchange Act of 1934 and is a member of the
National Association of Securities Dealers. The Policies are sold by individuals
who are registered representatives of MSC and who are also licensed as life
insurance agents for the Company. The Policies may also be sold through other
broker/dealers authorized by MSC and applicable law to do so.
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Except where MSC has authorized other broker/dealers to sell the Policies
(as described in the preceding paragraph), compensation payable for the sale of
the Policies will be based upon the following schedule. After issue of the
Contract, commissions will equal at most 50 percent of premiums paid up to a
maximum amount. Thereafter, commissions will equal at most 3.0 percent of any
additional premiums plus, on the sixth and each succeeding quarterly Anniversary
for so long as the Policy shall remain in force, an annualized rate of 0.15
percent of the Fund Value of the Policy. Upon any subsequent increase in
Specified Amount, commissions will equal at most 50 percent of premiums paid on
or after the increase up to a maximum amount. Thereafter, commissions will
return to no more than the 3.0 percent level. Further, registered
representatives may be eligible to receive certain bonuses and other benefits
based on the amount of earned commissions.
In addition, registered representatives who meet specified production
levels may qualify, under sales incentive programs adopted by Company, to
receive noncash compensation such as expense-paid trips, expense-paid
educational seminars and merchandise. Company makes no separate deductions,
other than previously described, from premiums to pay sales commissions or sales
expenses.
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MORE ABOUT THE COMPANY
MANAGEMENT
The directors and officers of the Company are listed below. The business
address for all directors and officers of MONY Life Insurance Company of America
is 1740 Broadway, New York, New York 10019.
Current Officers and Directors of MONY America are:
<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
---- -----------------------------------
<S> <C>
Michael I. Roth................................ Director, Chairman and Chief Executive
Officer
Samuel J. Foti................................. Director, President and Chief
Operating Officer
Kenneth M. Levine.............................. Director and Executive Vice President
Richard E. Connors............................. Director
Richard Daddario............................... Director, Vice President, and
Controller
Phillip A. Eisenberg........................... Director, Vice President and Actuary
Margaret G. Gale............................... Director, Vice President
Stephen J. Hall................................ Director
Charles P. Leone............................... Director, Vice President and Chief
Compliance Officer
Sam Chiodo..................................... Vice President
Edward E. Hill................................. Vice President -- Compliance
William D. Goodwin............................. Vice President
Evelyn L. Peos................................. Vice President
Michael Slipowitz.............................. Vice President
David S. Waldman............................... Secretary
David V. Weigel................................ Treasurer
</TABLE>
No officer or director listed above receives any compensation from the
Variable Account. No separately allocable compensation has been paid by the
Company or any of its affiliates to any person listed for services rendered to
the Account.
STATE REGULATION
The Company is subject to the laws of the state of Arizona governing
insurance companies and to regulation by the Commissioner of Insurance of
Arizona. In addition, it is subject to the insurance laws and regulations of the
other states and jurisdictions in which it is licensed or may become licensed to
operate. An annual statement in a prescribed form must be filed with the
Commissioner of Insurance of Arizona and with regulatory authorities of other
states on or before March 1st in each year. This statement covers the operations
of the Company for the preceding year and its financial condition as of December
31st of that year. The Company's affairs are subject to review and examination
at any time by the Commissioner of Insurance or his agents, and subject to full
examination of Company's operations at periodic intervals.
TELEPHONE TRANSFER PRIVILEGES
A Policy Owner may request a transfer of Fund Value or change allocation
instructions for future premiums by telephone if an authorization for telephone
transfer form has been completed, signed, and received at the Company's Syracuse
Operations Center. All or part of any telephone conversation with respect to
transfer and allocation instructions may be recorded by the Company. Telephone
instructions received by the Company by 4:00 p.m. Eastern time on any Valuation
Date will be effected as of the end of that Valuation Date in accordance with
the Policy Owner's instructions, subject to the limitations stated in this
prospectus (presuming that the Right to Return Policy Period has expired). The
Company reserves the right to deny any
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<PAGE> 51
telephone transfer or allocation request. If all telephone lines are busy (which
might occur, for example, during periods of substantial market fluctuations),
Policy Owners might not be able to request transfers by telephone and would have
to submit written requests. Telephone transfer and allocation instructions will
only be accepted if complete and correct.
The Company has adopted guidelines relating to telephone transfers and
allocation instructions that, among other things, outlines procedures to be
followed which are designed, and which the Company believes are reasonable, to
prevent unauthorized instructions. If these procedures are followed, the Company
shall not be liable for, and the Policy Owner will therefore bear the entire
risk of, any loss as a result of the Company's following telephone instructions
in the event that such instructions prove to be fraudulent. A copy of the
guidelines and the Company's form for electing telephone transfer privileges is
available from licensed agents of the Company who are also registered
representatives of MSC or by calling 1-800-487-6669. The Company's form must be
signed and received at the Company's Syracuse Operations Center before telephone
transfers will be accepted.
LEGAL PROCEEDINGS
There are no legal proceedings pending to which the Variable Account is a
party, or which would materially affect the Variable Account.
LEGAL MATTERS
Legal matters in connection with the issue and sale of the Policies
described in this Prospectus and the organization of the Company, its authority
to issue the Policies under Arizona law, and the validity of the forms of the
Policies under Arizona law have been passed on by the Vice President and Deputy
General Counsel of MONY.
Legal matters relating to the federal securities and federal income tax
laws have been passed upon by Edward P. Bank, Vice President and Deputy General
Counsel of MONY.
REGISTRATION STATEMENT
A Registration Statement under the Securities Act of 1933 has been filed
with the SEC relating to the offering described in this Prospectus. This
Prospectus does not include all of the information set forth in the Registration
Statement, as portions have been omitted pursuant to the rules and regulations
of the SEC. The omitted information may be obtained at the SEC's principal
office in Washington, D.C., upon payment of the SEC's prescribed fees.
INDEPENDENT ACCOUNTANTS
The audited financial statements for the Variable Account and for the
Company included in this Prospectus and in the Registration Statement have been
audited by PricewaterhouseCoopers LLP, independent accountants, as indicated in
their reports hereon, and are included in reliance upon the authority of said
firm as experts in accounting and auditing. PricewaterhouseCoopers LLP's office
is located at 1301 Avenue of the Americas, New York, New York, 10019.
FINANCIAL STATEMENTS
The audited financial statements for the Variable Account are set forth
herein, starting on page F-2. The audited financial statements of the Company
are set forth herein, starting on page F-24.
The financial statements of the Variable Account and of the Company have
been audited by PricewaterhouseCoopers LLP. The financial statements of the
Company should be distinguished from the financial statements of the Variable
Account and should be considered only as bearing upon the ability of the Company
to meet its obligations under the Policies.
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[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 53
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
With respect to MONY America Variable Account L:
Report of Independent Accountants......................... F-2
Statements of assets and liabilities as of December 31,
1997................................................... F-3
Statements of operations for the year ended December 31,
1997................................................... F-5
Statements of changes in net assets for the years ended
December 31, 1997 and 1996............................. F-7
Notes to financial statements............................. F-10
Report of Independent Accountants......................... F-13
Statements of assets and liabilities as of December 31,
1996................................................... F-14
Statements of operations for the year ended December 31,
1996................................................... F-16
Statements of changes in net assets for the years ended
December 31, 1996 and 1995............................. F-18
Notes to financial statements............................. F-21
Report of Independent Accountants......................... F-24
Statements of assets and liabilities as of December 31,
1995................................................... F-25
Statements of operations for the year ended December 31,
1995................................................... F-27
Statements of changes in net assets for the years ended
December 31, 1995 and 1994............................. F-29
Notes to financial statements............................. F-31
Statement of assets and liabilities as of June 30, 1998
(unaudited)............................................ F-34
Statements of operations for the six months ended June 30,
1998 (unaudited)....................................... F-36
Statements of changes in net assets for the six months
ended June 30, 1998 (unaudited) and for the year ended
December 31, 1997...................................... F-38
Notes to financial statements............................. F-41
With respect to MONY Life Insurance Company of America:
Report of Independent Accountants......................... F-44
Statements of admitted assets, liabilities, capital and
surplus as of December 31, 1997 and 1996............... F-45
Statements of operations for the years ended December 31,
1997 and 1996.......................................... F-46
Statements of capital and surplus for the years ended
December 31, 1997 and 1996............................. F-47
Statements of cash flows for the years ended December 31,
1997 and 1996.......................................... F-48
Notes to financial statements............................. F-49
Unaudited interim statement of admitted assets,
liabilities, capital and surplus as of June 30, 1998... F-64
Unaudited interim statements of operations for the six
months ended June 30, 1998 and 1997.................... F-65
Unaudited interim statements of capital and surplus for
the six months ended June 30, 1998 and 1997............ F-66
Unaudited interim statements of cash flows for the six
months ended June 30, 1998 and 1997.................... F-67
Notes to unaudited interim financial statements........... F-68
</TABLE>
F-1
<PAGE> 54
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account L -- Variable Life/Variable
Universal Life:
We have audited the accompanying statements of assets and liabilities of
MONY America Variable Account L -- Variable Life/Variable Universal Life
(comprising, respectively, the Variable Life's Equity Growth, Equity Income,
Intermediate Term Bond, Long Term Bond, Diversified and Money Market Subaccounts
and the Variable Universal Life's Intermediate Term Bond, Long Term Bond,
Government Securities, Money Market, Equity, Small Cap, Managed, International
Growth and High Yield Bond Subaccounts) as of December 31, 1997, the related
statements of operations for the year then ended and the statements of changes
in net assets for each of the two years in the period then ended. These
financial statements are the responsibility of MONY America's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account L -- Variable
Life/Variable Universal Life as of December 31, 1997, the results of their
operations and the changes in their net assets for each of the periods referred
to above, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 11, 1998
F-2
<PAGE> 55
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)..... $ 546,247 $ 487,414 $ 148,164 $ 63,055 $ 806,595 $ 75,563
========= ========= ========= ========= ========== =========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................. $ 798,134 $ 705,660 $ 156,537 $ 71,555 $1,111,163 $ 75,563
Amount due from MONY Series Fund,
Inc. .......................... 9 9 0 0 26 0
--------- --------- --------- --------- ---------- ---------
Total assets........... 798,143 705,669 156,537 71,555 1,111,189 75,563
--------- --------- --------- --------- ---------- ---------
LIABILITIES
Amount due to MONY America....... 9 9 0 0 26 0
--------- --------- --------- --------- ---------- ---------
Net assets....................... $ 798,134 $ 705,660 $ 156,537 $ 71,555 $1,111,163 $ 75,563
========= ========= ========= ========= ========== =========
Net assets consist of:
Contractholders' net
payments.................... $ 537,453 $ 445,418 $ 192,229 $ 108,555 $ 933,695 $ 198,422
Cost of insurance withdrawals
(Note 3).................... (383,528) (486,949) (201,904) (156,404) (916,797) (200,035)
Undistributed net investment
income...................... 168,021 327,758 163,834 100,095 533,506 77,176
Accumulated net realized gain
(loss) on investments....... 224,301 201,187 (5,995) 10,809 256,191 0
Unrealized appreciation of
investments................. 251,887 218,246 8,373 8,500 304,568 0
--------- --------- --------- --------- ---------- ---------
Net assets....................... $ 798,134 $ 705,660 $ 156,537 $ 71,555 $1,111,163 $ 75,563
========= ========= ========= ========= ========== =========
Number of units outstanding* .... 14,506 12,292 6,639 2,334 28,291 4,207
--------- --------- --------- --------- ---------- ---------
Net asset value per unit
outstanding* .................. $ 55.02 $ 57.41 $ 23.58 $ 30.65 $ 39.28 $ 17.96
========= ========= ========= ========= ========== =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-3
<PAGE> 56
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
----------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...... $229,105 $ 870,461 $482,067 $3,698,674 $15,117,468 $ 7,542,179 $ 54,701,619
======== ========= ======== ========== =========== =========== ============
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2).................. $ 0 $ 0 $ 0 $ 0 $16,482,798 $ 8,184,725 $ 60,069,001
Investments in MONY Series Fund,
Inc. at net asset value (Note
2).............................. 234,365 948,462 498,405 3,698,674 0 0 0
Amount due from Enterprise
Accumulation Trust.............. 0 0 0 0 3,531 859 9,107
Amount due from MONY America...... 48 418 202 80,882 25,829 2,025 37,486
Amount due from MONY Series Fund,
Inc............................. 11 130 41 11,681 0 0 0
-------- --------- -------- ---------- ----------- ----------- ------------
Total assets.............. 234,424 949,010 498,648 3,791,237 16,512,158 8,187,609 60,115,594
-------- --------- -------- ---------- ----------- ----------- ------------
LIABILITIES
Amount due to Enterprise
Accumulation Trust.............. 0 0 0 0 25,829 2,025 37,486
Amount due to MONY America........ 11 130 41 11,681 3,531 859 9,107
Amount due to MONY Series Fund,
Inc............................. 48 418 202 80,882 0 0 0
-------- --------- -------- ---------- ----------- ----------- ------------
Total liabilities......... 59 548 243 92,563 29,360 2,884 46,593
-------- --------- -------- ---------- ----------- ----------- ------------
Net assets........................ $234,365 $ 948,462 $498,405 $3,698,674 $16,482,798 $ 8,184,725 $ 60,069,001
======== ========= ======== ========== =========== =========== ============
Net assets consist of:
Contractholders' net
payments...................... $265,298 $ 982,905 $552,598 $4,020,118 $16,582,774 $ 7,692,676 $ 58,710,094
Cost of insurance withdrawals
(Note 3)...................... (43,218) (167,996) (91,027) (544,035) (2,948,581) (1,239,409) (10,471,466)
Undistributed net investment
income........................ 6,097 47,307 14,524 222,591 538,907 705,833 2,719,621
Accumulated net realized gain on
investments................... 928 8,245 5,972 0 944,368 383,079 3,743,370
Unrealized appreciation
(depreciation) of
investments................... 5,260 78,001 16,338 0 1,365,330 642,546 5,367,382
-------- --------- -------- ---------- ----------- ----------- ------------
Net assets........................ $234,365 $ 948,462 $498,405 $3,698,674 $16,482,798 $ 8,184,725 $ 60,069,001
======== ========= ======== ========== =========== =========== ============
Number of units outstanding* ..... 19,650 69,779 42,420 325,979 821,090 449,403 2,954,670
-------- --------- -------- ---------- ----------- ----------- ------------
Net asset value per unit
outstanding* ................... $ 11.93 $ 13.59 $ 11.75 $ 11.35 $ 20.07 $ 18.21 $ 20.33
======== ========= ======== ========== =========== =========== ============
<CAPTION>
VARIABLE UNIVERSAL LIFE
--------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------- ----------
<S> <C> <C>
ASSETS
Investments at cost (Note 4)...... $4,186,777 $1,900,963
========== ==========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2).................. $4,079,254 $1,939,719
Investments in MONY Series Fund,
Inc. at net asset value (Note
2).............................. 0 0
Amount due from Enterprise
Accumulation Trust.............. 308 240
Amount due from MONY America...... 214 71
Amount due from MONY Series Fund,
Inc............................. 0 0
---------- ----------
Total assets.............. 4,079,776 1,940,030
---------- ----------
LIABILITIES
Amount due to Enterprise
Accumulation Trust.............. 214 71
Amount due to MONY America........ 308 240
Amount due to MONY Series Fund,
Inc............................. 0 0
---------- ----------
Total liabilities......... 522 311
---------- ----------
Net assets........................ $4,079,254 $1,939,719
========== ==========
Net assets consist of:
Contractholders' net
payments...................... $4,679,851 $2,041,929
Cost of insurance withdrawals
(Note 3)...................... (773,836) (338,204)
Undistributed net investment
income........................ 115,713 160,937
Accumulated net realized gain on
investments................... 165,049 36,301
Unrealized appreciation
(depreciation) of
investments................... (107,523) 38,756
---------- ----------
Net assets........................ $4,079,254 $1,939,719
========== ==========
Number of units outstanding* ..... 290,466 138,275
---------- ----------
Net asset value per unit
outstanding* ................... $ 14.04 $ 14.03
========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-4
<PAGE> 57
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.................... $ 57,504 $ 80,960 $ 10,378 $ 5,654 $ 84,416 $ 4,176
Mortality and expense risk charges
(Note 3)......................... (4,464) (4,333) (1,004) (507) (6,671) (487)
-------- --------- -------- -------- --------- --------
Net investment income.............. 53,040 76,627 9,374 5,147 77,745 3,689
-------- --------- -------- -------- --------- --------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales.............. 87,998 205,963 55,717 38,794 311,417 32,317
Cost of shares sold.............. (54,391) (121,259) (54,045) (35,014) (211,325) (32,317)
-------- --------- -------- -------- --------- --------
Net realized gain on investments... 33,607 84,704 1,672 3,780 100,092 0
Net increase in unrealized
appreciation of investments...... 101,936 32,332 288 649 59,772 0
-------- --------- -------- -------- --------- --------
Net realized and unrealized gain on
investments...................... 135,543 117,036 1,960 4,429 159,864 0
-------- --------- -------- -------- --------- --------
Net increase in net assets
resulting from operations........ $188,583 $ 193,663 $ 11,334 $ 9,576 $ 237,609 $ 3,689
======== ========= ======== ======== ========= ========
</TABLE>
See notes to financial statements.
F-5
<PAGE> 58
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income.................. $ 6,095 $ 42,293 $ 14,009 $ 135,531 $ 544,698 $ 694,933 $ 2,719,101
Mortality and expense risk
charges (Note 3)............... (1,008) (5,751) (2,949) (19,730) (77,153) (34,486) (318,312)
-------- --------- --------- ------------ ----------- ----------- -----------
Net investment income............ 5,087 36,542 11,060 115,801 467,545 660,447 2,400,789
-------- --------- --------- ------------ ----------- ----------- -----------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............ 52,711 292,029 143,307 24,713,256 3,327,872 1,503,358 11,923,853
Cost of shares sold............ (51,442) (285,745) (138,374) (24,713,256) (2,581,752) (1,160,613) (9,087,421)
-------- --------- --------- ------------ ----------- ----------- -----------
Net realized gain on
investments.................... 1,269 6,284 4,933 0 746,120 342,745 2,836,432
Net increase (decrease) in
unrealized appreciation of
investments.................... 3,027 56,115 9,241 0 984,236 568,217 3,108,829
-------- --------- --------- ------------ ----------- ----------- -----------
Net realized and unrealized gain
(loss) on investments.......... 4,296 62,399 14,174 0 1,730,356 910,962 5,945,261
-------- --------- --------- ------------ ----------- ----------- -----------
Net increase in net assets
resulting from operations...... $ 9,383 $ 98,941 $ 25,234 $ 115,801 $ 2,197,901 $ 1,571,409 $ 8,346,050
======== ========= ========= ============ =========== =========== ===========
<CAPTION>
VARIABLE UNIVERSAL LIFE
--------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------- ----------
<S> <C> <C>
Dividend income.................. $ 120,361 $ 121,077
Mortality and expense risk
charges (Note 3)............... (21,528) (9,887)
---------- ---------
Net investment income............ 98,833 111,190
---------- ---------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............ 1,007,459 636,523
Cost of shares sold............ (871,948) (600,592)
---------- ---------
Net realized gain on
investments.................... 135,511 35,931
Net increase (decrease) in
unrealized appreciation of
investments.................... (204,105) 12,532
---------- ---------
Net realized and unrealized gain
(loss) on investments.......... (68,594) 48,463
---------- ---------
Net increase in net assets
resulting from operations...... $ 30,239 $ 159,653
========== =========
</TABLE>
See notes to financial statements.
F-6
<PAGE> 59
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE LIFE
--------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM LONG TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT BOND SUBACCOUNT
------------------- -------------------- ------------------- -------------------
1997 1996 1997 1996 1997 1996 1997 1996
-------- -------- --------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)........... $ 53,040 $ (3,666) $ 76,627 $ (2,649) $ 9,374 $ (1,063) $ 5,147 $ (582)
Net realized gain on investments....... 33,607 22,971 84,704 35,481 1,672 665 3,780 1,989
Net increase (decrease) in unrealized
appreciation of investments.......... 101,936 92,373 32,332 80,163 288 5,698 649 (2,681)
-------- -------- --------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations.............. 188,583 111,678 193,663 112,995 11,334 5,300 9,576 (1,274)
-------- -------- --------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units................................ 35,646 46,370 39,172 38,780 8,194 12,039 4,547 5,926
Net asset value of units redeemed or
used to meet contract obligations.... (59,621) (75,563) (193,625) (90,508) (40,032) (23,076) (37,821) (15,517)
-------- -------- --------- -------- -------- -------- -------- --------
Net decrease from unit transactions...... (23,975) (29,193) (154,453) (51,728) (31,838) (11,037) (33,274) (9,591)
-------- -------- --------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets.... 164,608 82,485 39,210 61,267 (20,504) (5,737) (23,698) (10,865)
Net assets beginning of year............. 633,526 551,041 666,450 605,183 177,041 182,778 95,253 106,118
-------- -------- --------- -------- -------- -------- -------- --------
Net assets end of year*.................. $798,134 $633,526 $ 705,660 $666,450 $156,537 $177,041 $ 71,555 $ 95,253
======== ======== ========= ======== ======== ======== ======== ========
Units outstanding beginning of year...... 14,958 15,643 15,149 16,377 8,041 8,556 3,504 3,869
Units issued during the year............. 747 1,232 783 1,004 362 562 165 226
Units redeemed during the year........... (1,199) (1,917) (3,640) (2,232) (1,764) (1,077) (1,335) (591)
-------- -------- --------- -------- -------- -------- -------- --------
Units outstanding end of year............ 14,506 14,958 12,292 15,149 6,639 8,041 2,334 3,504
======== ======== ========= ======== ======== ======== ======== ========
- ---------------
* Includes undistributed net investment
income of: $168,021 $114,981 $ 327,758 $251,131 $163,834 $154,460 $100,095 $ 94,948
<CAPTION>
VARIABLE LIFE
---------------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
----------------------- -------------------
1997 1996 1997 1996
---------- ---------- -------- --------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)........... $ 77,745 $ (6,210) $ 3,689 $ 3,835
Net realized gain on investments....... 100,092 29,580 0 0
Net increase (decrease) in unrealized
appreciation of investments.......... 59,772 110,202 0 0
---------- ---------- -------- --------
Net increase (decrease) in net assets
resulting from operations.............. 237,609 133,572 3,689 3,835
---------- ---------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units................................ 77,730 85,626 6,471 9,558
Net asset value of units redeemed or
used to meet contract obligations.... (287,917) (124,946) (19,886) (18,398)
---------- ---------- -------- --------
Net decrease from unit transactions...... (210,187) (39,320) (13,415) (8,840)
---------- ---------- -------- --------
Net increase (decrease) in net assets.... 27,422 94,252 (9,726) (5,005)
Net assets beginning of year............. 1,083,741 989,489 85,289 90,294
---------- ---------- -------- --------
Net assets end of year*.................. $1,111,163 $1,083,741 $ 75,563 $ 85,289
========== ========== ======== ========
Units outstanding beginning of year...... 34,279 35,607 4,970 5,499
Units issued during the year............. 2,219 2,942 368 570
Units redeemed during the year........... (8,207) (4,270) (1,131) (1,099)
---------- ---------- -------- --------
Units outstanding end of year............ 28,291 34,279 4,207 4,970
========== ========== ======== ========
- ---------------
* Includes undistributed net investment
income of: $ 533,506 $ 455,761 $ 77,176 $ 73,487
</TABLE>
See notes to financial statements.
F-7
<PAGE> 60
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------------------------------
INTERMEDIATE TERM LONG TERM GOVERNMENT MONEY
BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- -------------------- -------------------- ---------------------------
1997 1996 1997 1996 1997 1996 1997 1996
-------- -------- --------- -------- --------- -------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)...................... $ 5,087 $ (404) $ 36,542 $ (3,193) $ 11,060 $ (1,630) $ 115,801 $ 86,414
Net realized gain (loss) on
investments................. 1,269 (715) 6,284 795 4,933 906 0 0
Net increase in unrealized
appreciation of
investments................. 3,027 3,148 56,115 13,609 9,241 7,805 0 0
-------- -------- --------- -------- --------- -------- ------------ ------------
Net increase in net assets
resulting from operations..... 9,383 2,029 98,941 11,211 25,234 7,081 115,801 86,414
-------- -------- --------- -------- --------- -------- ------------ ------------
From unit transactions:
Net proceeds from the issuance
of units.................... 172,340 82,991 471,749 425,430 288,293 149,977 20,219,389 15,675,163
Net asset value of units
redeemed or used to meet
contract obligations........ (38,182) (20,916) (236,759) (91,922) (107,779) (35,779) (20,985,756) (13,113,154)
-------- -------- --------- -------- --------- -------- ------------ ------------
Net increase (decrease) from
unit transactions............. 134,158 62,075 234,990 333,508 180,514 114,198 (766,367) 2,562,009
-------- -------- --------- -------- --------- -------- ------------ ------------
Net increase (decrease) in net
assets........................ 143,541 64,104 333,931 344,719 205,748 121,279 (650,566) 2,648,423
Net assets beginning of year.... 90,824 26,720 614,531 269,812 292,657 171,378 4,349,240 1,700,817
-------- -------- --------- -------- --------- -------- ------------ ------------
Net assets end of year*......... $234,365 $ 90,824 $ 948,462 $614,531 $ 498,405 $292,657 $ 3,698,674 $ 4,349,240
======== ======== ========= ======== ========= ======== ============ ============
Units outstanding beginning of
year.......................... 8,138 2,464 50,910 22,127 26,498 15,959 400,565 163,465
Units issued during the year.... 14,831 7,592 37,613 36,743 25,322 13,851 1,818,649 1,469,700
Units redeemed during the
year.......................... (3,319) (1,918) (18,744) (7,960) (9,400) (3,312) (1,893,235) (1,232,600)
-------- -------- --------- -------- --------- -------- ------------ ------------
Units outstanding end of year... 19,650 8,138 69,779 50,910 42,420 26,498 325,979 400,565
======== ======== ========= ======== ========= ======== ============ ============
- ---------------
* Includes undistributed net
investment income of: $ 6,097 $ 1,010 $ 47,307 $ 10,765 $ 14,524 $ 3,464 $ 222,591 $ 106,790
</TABLE>
See notes to financial statements.
F-8
<PAGE> 61
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
-------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------ ------------------------ -------------------------
1997 1996 1997 1996 1997 1996
----------- ---------- ----------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)....... $ 467,545 $ 46,194 $ 660,447 $ 28,953 $ 2,400,789 $ 134,759
Net realized gain on investments... 746,120 174,857 342,745 30,574 2,836,432 783,666
Net increase (decrease) in
unrealized appreciation of
investments...................... 984,236 357,881 568,217 78,392 3,108,829 2,166,435
----------- ---------- ----------- ---------- ----------- -----------
Net increase in net assets resulting
from operations.................... 2,197,901 578,932 1,571,409 137,919 8,346,050 3,084,860
----------- ---------- ----------- ---------- ----------- -----------
From unit transactions:
Net proceeds from the issuance
of units......................... 11,812,002 4,459,200 5,248,401 2,152,749 36,238,986 20,620,582
Net asset value of units redeemed
or used to meet contract
obligations...................... (2,656,849) (952,864) (1,072,152) (454,428) (9,726,108) (4,735,332)
----------- ---------- ----------- ---------- ----------- -----------
Net increase from unit
transactions....................... 9,155,153 3,506,336 4,176,249 1,698,321 26,512,878 15,885,250
----------- ---------- ----------- ---------- ----------- -----------
Net increase in net assets........... 11,353,054 4,085,268 5,747,658 1,836,240 34,858,928 18,970,110
Net assets beginning of year......... 5,129,744 1,044,476 2,437,067 600,827 25,210,073 6,239,963
----------- ---------- ----------- ---------- ----------- -----------
Net assets end of year*.............. $16,482,798 $5,129,744 $ 8,184,725 $2,437,067 $60,069,001 $25,210,073
=========== ========== =========== ========== =========== ===========
Units outstanding beginning of
year............................... 319,002 80,766 191,743 52,194 1,532,486 465,095
Units issued during the year......... 647,931 303,412 326,703 176,984 1,945,611 1,382,408
Units redeemed during the year....... (145,843) (65,176) (69,043) (37,435) (523,427) (315,017)
----------- ---------- ----------- ---------- ----------- -----------
Units outstanding end of year........ 821,090 319,002 449,403 191,743 2,954,670 1,532,486
=========== ========== =========== ========== =========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 538,907 $ 71,362 $ 705,833 $ 45,386 $ 2,719,621 $ 318,832
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
----------------------- ----------------------
1997 1996 1997 1996
---------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)....... $ 98,833 $ (1,058) $ 111,190 $ 42,346
Net realized gain on investments... 135,511 23,372 35,931 180
Net increase (decrease) in
unrealized appreciation of
investments...................... (204,105) 96,691 12,532 25,863
---------- ---------- ---------- ---------
Net increase in net assets resulting
from operations.................... 30,239 119,005 159,653 68,389
---------- ---------- ---------- ---------
From unit transactions:
Net proceeds from the issuance
of units......................... 3,034,936 1,524,746 1,268,282 535,643
Net asset value of units redeemed
or used to meet contract
obligations...................... (717,365) (291,724) (319,664) (125,293)
---------- ---------- ---------- ---------
Net increase from unit
transactions....................... 2,317,571 1,233,022 948,618 410,350
---------- ---------- ---------- ---------
Net increase in net assets........... 2,347,810 1,352,027 1,108,271 478,739
Net assets beginning of year......... 1,731,444 379,417 831,448 352,709
---------- ---------- ---------- ---------
Net assets end of year*.............. $4,079,254 $1,731,444 $1,939,719 $ 831,448
========== ========== ========== =========
Units outstanding beginning of
year............................... 128,820 31,566 66,709 31,730
Units issued during the year......... 211,751 120,205 95,695 45,756
Units redeemed during the year....... (50,105) (22,951) (24,129) (10,777)
---------- ---------- ---------- ---------
Units outstanding end of year........ 290,466 128,820 138,275 66,709
========== ========== ========== =========
- ---------------
* Includes undistributed net
investment income of: $ 115,713 $ 16,880 $ 160,937 $ 49,747
</TABLE>
See notes to financial statements.
F-9
<PAGE> 62
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Flexible Premium Variable Life Insurance policies,
which include Variable Life Insurance (Strategist), Variable Universal Life
(MONYEquity Master) and Corporate Sponsored Variable Life Insurance policies.
These policies are issued by MONY America, which is a wholly-owned subsidiary of
The Mutual Life Insurance Company of New York ("MONY"). For presentation
purposes, the information related to the Variable Life and Variable Universal
Life Insurance policies are presented here.
There are currently six Variable Life Subaccounts and nine Variable
Universal Life Subaccounts within the Variable Account, each invests only in a
corresponding portfolio of the MONY Series Fund, Inc. (the "Fund") or the
Enterprise Accumulation Trust ("Enterprise") (collectively, the "Funds"). The
subaccounts of the Variable Universal Life commenced operations during 1995. The
Funds are registered under the 1940 Act as open end, diversified, management
investment companies.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise are contained on pages 68 to 102 and 105 to 142,
respectively, and should be read in conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment:
The investment in shares of each of the respective portfolios is stated at
value which is the net asset values of the Funds. Except for the Money Market
Portfolios, net asset values are based upon market quotations of the securities
held in each of the corresponding portfolios of the Funds. For the Money Market
Portfolios, the net asset values are based on amortized cost of the securities
held which approximates value.
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based on current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted on each monthly date from
the cash value of the contract to compensate MONY America. These deductions are
treated as contractholder redemptions by the Variable Account. The amount
deducted for the Variable Life and Variable Universal Subaccounts for 1997
aggregated $10,793,622.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .60 percent (for the Variable
Life Subaccounts) and .75 percent (for the Variable
F-10
<PAGE> 63
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Universal Life Subaccounts) of aggregate average daily net assets. As investment
adviser to the Fund, it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in Variable Life at cost, at December 31, 1997 consist of the
following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
--------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares....................... 20,860 28,432 16,153 7,418 60,241 85,289
Amount....................... $483,575 $ 480,537 $168,956 $ 87,403 $ 838,945 $ 85,289
-------- --------- -------- -------- --------- --------
Shares acquired:
Shares....................... 1,812 1,865 2,121 395 4,933 18,415
Amount....................... $ 59,559 $ 47,176 $ 22,875 $ 5,012 $ 94,559 $ 18,415
Shares received for
reinvestment of dividends:
Shares....................... 2,038 3,766 1,007 483 5,055 4,176
Amount....................... $ 57,504 $ 80,960 $ 10,378 $ 5,654 $ 84,416 $ 4,176
Shares redeemed:
Shares....................... (2,589) (8,024) (5,204) (3,051) (16,315) (32,317)
Amount....................... $(54,391) $(121,259) $(54,045) $(35,014) $(211,325) $(32,317)
-------- --------- -------- -------- --------- --------
Net change:
Shares....................... 1,261 (2,393) (2,076) (2,173) (6,327) (9,726)
Amount....................... $ 62,672 $ 6,877 $(20,792) $(24,348) $ (32,350) $ (9,726)
-------- --------- -------- -------- --------- --------
Shares end of year:
Shares....................... 22,121 26,039 14,077 5,245 53,914 75,563
Amount....................... $546,247 $ 487,414 $148,164 $ 63,055 $ 806,595 $ 75,563
======== ========= ======== ======== ========= ========
</TABLE>
F-11
<PAGE> 64
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at December 31, 1997
consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
----------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ---------- ------------
<S> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 8,287 47,861 27,661 4,349,240
Amount............. $ 88,592 $ 592,645 $ 285,560 $ 4,349,240
-------- --------- --------- ------------
Shares acquired:
Shares............. 17,072 40,961 30,184 23,927,159
Amount............. $185,860 $ 521,268 $ 320,872 $ 23,927,159
Shares received for
reinvestment of
dividends:
Shares............. 591 3,615 1,373 135,531
Amount............. $ 6,095 $ 42,293 $ 14,009 $ 135,531
Shares redeemed:
Shares............. (4,874) (22,902) (13,451) (24,713,256)
Amount............. $(51,442) $(285,745) $(138,374) $(24,713,256)
-------- --------- --------- ------------
Net change:
Shares............. 12,789 21,674 18,106 (650,566)
Amount............. $140,513 $ 277,816 $ 196,507 $ (650,566)
-------- --------- --------- ------------
Shares end of year:
Shares............. 21,076 69,535 45,767 3,698,674
Amount............. $229,105 $ 870,461 $ 482,067 $ 3,698,674
======== ========= ========= ============
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------
HIGH
INTERNATIONAL YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 177,746 120,528 734,773 286,189 150,898
Amount............. $ 4,748,651 $ 2,362,738 $22,951,520 $1,634,862 $ 805,224
----------- ----------- ----------- ---------- ----------
Shares acquired:
Shares............. 377,731 219,786 977,516 509,835 284,392
Amount............. $12,405,871 $ 5,645,121 $38,118,419 $3,303,502 $1,575,254
Shares received for
reinvestment of
dividends:
Shares............. 15,523 26,027 66,677 19,476 17,799
Amount............. $ 544,698 $ 694,933 $ 2,719,101 $ 120,361 $ 121,077
Shares redeemed:
Shares............. (101,270) (59,797) (305,965) (155,426) (113,383)
Amount............. $(2,581,752) $(1,160,613) $(9,087,421) $ (871,948) $ (600,592)
----------- ----------- ----------- ---------- ----------
Net change:
Shares............. 291,984 186,016 738,228 373,885 188,808
Amount............. $10,368,817 $ 5,179,441 $31,750,099 $2,551,915 $1,095,739
----------- ----------- ----------- ---------- ----------
Shares end of year:
Shares............. 469,730 306,544 1,473,001 660,074 339,706
Amount............. $15,117,468 $ 7,542,179 $54,701,619 $4,186,777 $1,900,963
=========== =========== =========== ========== ==========
</TABLE>
F-12
<PAGE> 65
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account L:
We have audited the accompanying statements of assets and liabilities of
MONY America Variable Account L (comprising, respectively, the Variable Life's
Equity Growth, Equity Income, Intermediate Term Bond, Long Term Bond,
Diversified and Money Market Subaccounts and the Variable Universal Life's
Intermediate Term Bond, Long Term Bond, Government Securities, Money Market,
Equity, Small Cap, Managed, International Growth and High Yield Bond
Subaccounts) as of December 31, 1996, for the Variable Life's Subaccounts, the
related statements of operations for the year then ended and the statements of
changes in net assets for each of the two years in the period then ended, and
for the Variable Universal Life's Subaccounts, the related statements of
operations for the year then ended and the statements of changes in net assets
for the year ended December 31, 1996 and for the Intermediate Term Bond
Subaccount for which the period is from April 20, 1995 (commencement of
operations) to December 31, 1995, the Long Term Bond Subaccount for which the
period is from March 31, 1995 (commencement of operations) to December 31, 1995,
the Government Securities and High Yield Bond Subaccounts for which the period
is from March 20, 1995 (commencement of operations) to December 31, 1995, the
Money Market Subaccount for which the period is from February 17, 1995
(commencement of operations) to December 31, 1995, the Equity, Managed and
International Growth Subaccounts for which the period is from March 8, 1995
(commencement of operations) to December 31, 1995, and the Small Cap Subaccount
for which the period is from March 9, 1995 (commencement of operations) to
December 31, 1995. These financial statements are the responsibility of MONY
America's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1996, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account L as of December 31,
1996, the results of their operations for the year then ended, and the changes
in their net assets for each of the periods referred to above, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 14, 1997
F-13
<PAGE> 66
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)..... $ 483,575 $ 480,536 $ 168,956 $ 87,402 $ 838,945 $ 85,289
========= ========= ========= ========= ========== =========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................. $ 633,526 $ 666,450 $ 177,041 $ 95,253 $1,083,741 $ 85,289
Amount due from MONY America..... 5 5 0 0 0 0
Amount due from MONY Series Fund,
Inc. .......................... 9 9 0 0 26 0
--------- --------- --------- --------- ---------- ---------
Total assets........... 633,540 666,464 177,041 95,253 1,083,767 85,289
--------- --------- --------- --------- ---------- ---------
LIABILITIES
Amount due to MONY America....... 9 9 0 0 26 0
Amount due to MONY Series Fund,
Inc. .......................... 5 5 0 0 0 0
--------- --------- --------- --------- ---------- ---------
Total liabilities...... 14 14 0 0 26 0
--------- --------- --------- --------- ---------- ---------
Net assets....................... $ 633,526 $ 666,450 $ 177,041 $ 95,253 $1,083,741 $ 85,289
========= ========= ========= ========= ========== =========
Net assets consist of:
Contractholders' net
payments.................. $ 530,611 $ 564,123 $ 211,304 $ 127,727 $1,079,623 $ 198,280
Cost of insurance
withdrawals (Note 3)...... (352,711) (451,201) (189,141) (142,302) (852,538) (186,478)
Undistributed net investment
income.................... 114,981 251,131 154,460 94,948 455,761 73,487
Accumulated net realized
gain (loss) on
investments............... 190,694 116,483 (7,667) 7,029 156,099 0
Unrealized appreciation of
investments............... 149,951 185,914 8,085 7,851 244,796 0
--------- --------- --------- --------- ---------- ---------
Net assets....................... $ 633,526 $ 666,450 $ 177,041 $ 95,253 $1,083,741 $ 85,289
========= ========= ========= ========= ========== =========
Number of units outstanding*..... 14,958 15,149 8,041 3,504 34,279 4,970
--------- --------- --------- --------- ---------- ---------
Net asset value per unit
outstanding*................... $ 42.35 $ 43.99 $ 22.02 $ 27.18 $ 31.62 $ 17.16
========= ========= ========= ========= ========== =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-14
<PAGE> 67
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)....... $ 88,591 $592,645 $285,560 $4,349,240 $4,748,650 $2,362,738 $22,951,520
======== ======== ======== ========== ========== ========== ===========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2)................... $ 0 $ 0 $ 0 $ 0 $5,129,744 $2,437,067 $25,210,073
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................... 90,824 614,531 292,657 4,349,240 0 0 0
Amount due from Enterprise
Accumulation Trust............... 0 0 0 0 1,772 1,113 5,270
Amount due from MONY America....... 33 123 85 8,194 2,031 583 30,697
Amount due from MONY Series Fund,
Inc.............................. 10 0 26 113,916 0 0 0
-------- -------- -------- ---------- ---------- ---------- -----------
Total assets............... 90,867 614,654 292,768 4,471,350 5,133,547 2,438,763 25,246,040
-------- -------- -------- ---------- ---------- ---------- -----------
LIABILITIES
Amount due to Enterprise
Accumulation Trust............... 0 0 0 0 2,031 583 30,697
Amount due to MONY America......... 10 0 26 113,916 1,772 1,113 5,270
Amount due to MONY Series Fund,
Inc.............................. 33 123 85 8,194 0 0 0
-------- -------- -------- ---------- ---------- ---------- -----------
Total liabilities.......... 43 123 111 122,110 3,803 1,696 35,967
-------- -------- -------- ---------- ---------- ---------- -----------
Net assets......................... $ 90,824 $614,531 $292,657 $4,349,240 $5,129,744 $2,437,067 $25,210,073
======== ======== ======== ========== ========== ========== ===========
Net assets consist of:
Contractholders' net
payments..................... $106,061 $656,214 $317,161 $4,461,789 $5,366,348 $2,733,551 $25,623,125
Cost of insurance withdrawals
(Note 3)..................... (18,139) (76,295) (36,104) (219,339) (887,308) (456,533) (3,897,375)
Undistributed net investment
income....................... 1,010 10,765 3,464 106,790 71,362 45,386 318,832
Accumulated net realized gain
(loss) on investments........ (341) 1,961 1,039 0 198,248 40,334 906,938
Unrealized appreciation of
investments.................. 2,233 21,886 7,097 0 381,094 74,329 2,258,553
-------- -------- -------- ---------- ---------- ---------- -----------
Net assets......................... $ 90,824 $614,531 $292,657 $4,349,240 $5,129,744 $2,437,067 $25,210,073
======== ======== ======== ========== ========== ========== ===========
Number of units outstanding*....... 8,138 50,910 26,498 400,565 319,002 191,743 1,532,486
-------- -------- -------- ---------- ---------- ---------- -----------
Net asset value per unit
outstanding*..................... $ 11.16 $ 12.07 $ 11.04 $ 10.86 $ 16.08 $ 12.71 $ 16.45
======== ======== ======== ========== ========== ========== ===========
<CAPTION>
VARIABLE UNIVERSAL LIFE
--------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------- ----------
<S> <C> <C>
ASSETS
Investments at cost (Note 4)....... $1,634,862 $ 805,224
========== =========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2)................... $1,731,444 $ 831,448
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................... 0 0
Amount due from Enterprise
Accumulation Trust............... 338 154
Amount due from MONY America....... 323 113
Amount due from MONY Series Fund,
Inc.............................. 0 0
---------- ---------
Total assets............... 1,732,105 831,715
---------- ---------
LIABILITIES
Amount due to Enterprise
Accumulation Trust............... 323 113
Amount due to MONY America......... 338 154
Amount due to MONY Series Fund,
Inc.............................. 0 0
---------- ---------
Total liabilities.......... 661 267
---------- ---------
Net assets......................... $1,731,444 $ 831,448
========== =========
Net assets consist of:
Contractholders' net
payments..................... $1,864,972 $ 885,885
Cost of insurance withdrawals
(Note 3)..................... (276,528) (130,778)
Undistributed net investment
income....................... 16,880 49,747
Accumulated net realized gain
(loss) on investments........ 29,538 370
Unrealized appreciation of
investments.................. 96,582 26,224
---------- ---------
Net assets......................... $1,731,444 $ 831,448
========== =========
Number of units outstanding*....... 128,820 66,709
---------- ---------
Net asset value per unit
outstanding*..................... $ 13.44 $ 12.46
========== =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-15
<PAGE> 68
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income..................... $ 0 $ 1,204 $ 0 $ 0 $ 0 $ 4,359
Mortality and expense risk charges
(Note 3).......................... 3,666 3,853 1,063 582 6,210 524
-------- -------- ------- ------- -------- -------
Net investment income (loss)........ (3,666) (2,649) (1,063) (582) (6,210) 3,835
-------- -------- ------- ------- -------- -------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............... 93,619 102,327 28,266 17,665 140,885 22,914
Cost of shares sold............... 70,648 66,846 27,601 15,676 111,305 22,914
-------- -------- ------- ------- -------- -------
Net realized gain on investments.... 22,971 35,481 665 1,989 29,580 0
Net increase (decrease) in
unrealized appreciation of
investments....................... 92,373 80,163 5,698 (2,681) 110,202 0
-------- -------- ------- ------- -------- -------
Net realized and unrealized gain
(loss) on investments............. 115,344 115,644 6,363 (692) 139,782 0
-------- -------- ------- ------- -------- -------
Net increase (decrease) in net
assets resulting from
operations........................ $111,678 $112,995 $ 5,300 $(1,274) $133,572 $ 3,835
======== ======== ======= ======= ======== =======
</TABLE>
See notes to financial statements.
F-16
<PAGE> 69
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income............... $ 0 $ 0 $ 0 $ 101,677 $ 66,222 $ 39,244 $ 243,882
Mortality and expense risk
charges (Note 3)............ 404 3,193 1,630 15,263 20,028 10,291 109,123
------- -------- ------- ----------- ---------- -------- ----------
Net investment income
(loss)...................... (404) (3,193) (1,630) 86,414 46,194 28,953 134,759
------- -------- ------- ----------- ---------- -------- ----------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales......... 38,393 159,811 53,965 15,827,331 1,265,465 634,803 6,072,015
Cost of shares sold......... 39,108 159,016 53,059 15,827,331 1,090,608 604,229 5,288,349
------- -------- ------- ----------- ---------- -------- ----------
Net realized gain (loss) on
investments................. (715) 795 906 0 174,857 30,574 783,666
Net increase in unrealized
appreciation of
investments................. 3,148 13,609 7,805 0 357,881 78,392 2,166,435
------- -------- ------- ----------- ---------- -------- ----------
Net realized and unrealized
gain on investments......... 2,433 14,404 8,711 0 532,738 108,966 2,950,101
------- -------- ------- ----------- ---------- -------- ----------
Net increase in net assets
resulting from operations... $ 2,029 $ 11,211 $ 7,081 $ 86,414 $ 578,932 $137,919 $3,084,860
======= ======== ======= =========== ========== ======== ==========
<CAPTION>
VARIABLE UNIVERSAL LIFE
--------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------- ----------
<S> <C> <C>
Dividend income............... $ 6,221 $ 46,366
Mortality and expense risk
charges (Note 3)............ 7,279 4,020
-------- --------
Net investment income
(loss)...................... (1,058) 42,346
-------- --------
Realized and unrealized gain
(loss) on investments (Note
2):
Proceeds from sales......... 432,562 387,912
Cost of shares sold......... 409,190 387,732
-------- --------
Net realized gain (loss) on
investments................. 23,372 180
Net increase in unrealized
appreciation of
investments................. 96,691 25,863
-------- --------
Net realized and unrealized
gain on investments......... 120,063 26,043
-------- --------
Net increase in net assets
resulting from operations... $119,005 $ 68,389
======== ========
</TABLE>
See notes to financial statements.
F-17
<PAGE> 70
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE LIFE
-------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM LONG TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT BOND SUBACCOUNT
------------------- ------------------- ------------------- -------------------
1996 1995 1996 1995 1996 1995 1996 1995
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)...... $ (3,666) $ 33,459 $ (2,649) $ 27,822 $ (1,063) $ 9,165 $ (582) $ 5,101
Net realized gain on
investments..................... 22,971 30,308 35,481 39,090 665 2,059 1,989 5,208
Net increase (decrease) in
unrealized appreciation of
investments..................... 92,373 57,362 80,163 88,922 5,698 11,732 (2,681) 16,634
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in net
assets resulting from operations.. 111,678 121,129 112,995 155,834 5,300 22,956 (1,274) 26,943
-------- -------- -------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units........................... 46,370 246,538 38,780 56,024 12,039 13,113 5,926 7,195
Net asset value of units redeemed
or used to meet contract
obligations..................... (75,563) (164,237) (90,508) (132,231) (23,076) (23,804) (15,517) (29,360)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) from unit
transactions...................... (29,193) 82,301 (51,728) (76,207) (11,037) (10,691) (9,591) (22,165)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in net
assets............................ 82,485 203,430 61,267 79,627 (5,737) 12,265 (10,865) 4,778
Net assets beginning of year....... 551,041 347,611 605,183 525,556 182,778 170,513 106,118 101,340
-------- -------- -------- -------- -------- -------- -------- --------
Net assets end of year*............ $633,526 $551,041 $666,450 $605,183 $177,041 $182,778 $ 95,253 $106,118
======== ======== ======== ======== ======== ======== ======== ========
Units outstanding beginning of
year.............................. 15,643 12,809 16,377 18,826 8,556 9,112 3,869 4,777
Units issued during the year....... 1,232 8,221 1,004 1,763 562 652 226 296
Units redeemed during the year..... (1,917) (5,387) (2,232) (4,212) (1,077) (1,208) (591) (1,204)
-------- -------- -------- -------- -------- -------- -------- --------
Units outstanding end of year...... 14,958 15,643 15,149 16,377 8,041 8,556 3,504 3,869
======== ======== ======== ======== ======== ======== ======== ========
- ---------------
*Includes undistributed net
investment income of: $114,981 $118,647 $251,131 $253,780 $154,460 $155,523 $ 94,948 $ 95,530
<CAPTION>
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
--------------------- -------------------
1996 1995 1996 1995
---------- -------- -------- --------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)...... $ (6,210) $ 46,804 $ 3,835 $ 5,662
Net realized gain on
investments..................... 29,580 35,442 0 0
Net increase (decrease) in
unrealized appreciation of
investments..................... 110,202 125,651 0 0
---------- -------- ------- --------
Net increase (decrease) in net
assets resulting from operations.. 133,572 207,897 3,835 5,662
---------- -------- ------- --------
From unit transactions:
Net proceeds from the issuance of
units........................... 85,626 90,610 9,558 137,395
Net asset value of units redeemed
or used to meet contract
obligations..................... (124,946) (145,580) (18,398) (235,050)
---------- -------- ------- --------
Net increase (decrease) from unit
transactions...................... (39,320) (54,970) (8,840) (97,655)
---------- -------- ------- --------
Net increase (decrease) in net
assets............................ 94,252 152,927 (5,005) (91,993)
Net assets beginning of year....... 989,489 836,562 90,294 182,287
---------- -------- ------- --------
Net assets end of year*............ $1,083,741 $989,489 $85,289 $ 90,294
========== ======== ======= ========
Units outstanding beginning of
year.............................. 35,607 37,807 5,499 11,659
Units issued during the year....... 2,942 3,647 570 8,586
Units redeemed during the year..... (4,270) (5,847) (1,099) (14,746)
---------- -------- ------- --------
Units outstanding end of year...... 34,279 35,607 4,970 5,499
========== ======== ======= ========
- ---------------
*Includes undistributed net
investment income of: $ 455,761 $461,971 $73,487 $ 69,652
</TABLE>
See notes to financial statements.
F-18
<PAGE> 71
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
--------------------------------------------------------------------------------
INTERMEDIATE TERM LONG TERM GOVERNMENT
BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------------- ------------------------------- ------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR APRIL 20, 1995** FOR THE YEAR MARCH 31, 1995** FOR THE YEAR
ENDED THROUGH ENDED THROUGH ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1995 1996 1995 1996
------------ ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)..... $ (404) $ 1,414 $ (3,193) $ 13,958 $ (1,630)
Net realized gain (loss) on
investments.................... (715) 374 795 1,166 906
Net increase (decrease) in
unrealized appreciation of
investments.................... 3,148 (915) 13,609 8,277 7,805
------- ------- -------- -------- --------
Net increase in net assets
resulting from operations........ 2,029 873 11,211 23,401 7,081
------- ------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units.......................... 82,991 29,827 425,430 254,605 149,977
Net asset value of units redeemed
or used to meet contract
obligations.................... (20,916) (3,980) (91,922) (8,194) (35,779)
------- ------- -------- -------- --------
Net increase from unit
transactions..................... 62,075 25,847 333,508 246,411 114,198
------- ------- -------- -------- --------
Net increase in net assets......... 64,104 26,720 344,719 269,812 121,279
Net assets beginning of period..... 26,720 0 269,812 0 171,378
------- ------- -------- -------- --------
Net assets end of period*.......... $90,824 $26,720 $614,531 $269,812 $292,657
======= ======= ======== ======== ========
Units outstanding beginning of
period........................... 2,464 0 22,127 0 15,959
Units issued during the period..... 7,592 2,838 36,743 22,925 13,851
Units redeemed during the period... (1,918) (374) (7,960) (798) (3,312)
------- ------- -------- -------- --------
Units outstanding end of period.... 8,138 2,464 50,910 22,127 26,498
======= ======= ======== ======== ========
- ---------------
*Includes undistributed net
investment income of: $ 1,010 $ 1,414 $ 10,765 $ 13,958 $ 3,464
**Commencement of operations.
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------
GOVERNMENT MONEY
SECURITIES MARKET
SUBACCOUNT SUBACCOUNT
---------------- ----------------------------------
FOR THE PERIOD FOR THE PERIOD
MARCH 20, 1995** FOR THE YEAR FEBRUARY 17, 1995**
THROUGH ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1996 1995
---------------- ------------ -------------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)..... $ 5,094 $ 86,414 $ 20,376
Net realized gain (loss) on
investments.................... 133 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... (708) 0 0
-------- ------------ -----------
Net increase in net assets
resulting from operations........ 4,519 86,414 20,376
-------- ------------ -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 171,901 15,675,163 8,289,772
Net asset value of units redeemed
or used to meet contract
obligations.................... (5,042) (13,113,154) (6,609,331)
-------- ------------ -----------
Net increase from unit
transactions..................... 166,859 2,562,009 1,680,441
-------- ------------ -----------
Net increase in net assets......... 171,378 2,648,423 1,700,817
Net assets beginning of period..... 0 1,700,817 0
-------- ------------ -----------
Net assets end of period*.......... $171,378 $ 4,349,240 $ 1,700,817
======== ============ ===========
Units outstanding beginning of
period........................... 0 163,465 0
Units issued during the period..... 16,439 1,469,700 807,565
Units redeemed during the period... (480) (1,232,600) (644,100)
-------- ------------ -----------
Units outstanding end of period.... 15,959 400,565 163,465
======== ============ ===========
- ---------------
*Includes undistributed net
investment income of: $ 5,094 $ 106,790 $ 20,376
**Commencement of operations.
</TABLE>
See notes to financial statements.
F-19
<PAGE> 72
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
------------------------------------------------------------------------------
MANAGED
EQUITY SUBACCOUNT SMALL CAP SUBACCOUNT SUBACCOUNT
------------------------------ ------------------------------ ------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR MARCH 8, 1995** FOR THE YEAR MARCH 9, 1995** FOR THE YEAR
ENDED THROUGH ENDED THROUGH ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1995 1996 1995 1996
------------ --------------- ------------ --------------- ------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)................ $ 46,194 $ 25,168 $ 28,953 $ 16,433 $ 134,759
Net realized gain on investments............ 174,857 23,391 30,574 9,760 783,666
Net increase (decrease) in unrealized
appreciation of investments............... 357,881 23,213 78,392 (4,063) 2,166,435
---------- ---------- ---------- -------- -----------
Net increase in net assets resulting from
operations.................................. 578,932 71,772 137,919 22,130 3,084,860
---------- ---------- ---------- -------- -----------
From unit transactions:
Net proceeds from the issuance of units..... 4,459,200 1,073,215 2,152,749 662,265 20,620,582
Net asset value of units redeemed or used to
meet contract obligations................. (952,864) (100,511) (454,428) (83,568) (4,735,332)
---------- ---------- ---------- -------- -----------
Net increase from unit transactions.......... 3,506,336 972,704 1,698,321 578,697 15,885,250
---------- ---------- ---------- -------- -----------
Net increase in net assets................... 4,085,268 1,044,476 1,836,240 600,827 18,970,110
Net assets beginning of period............... 1,044,476 0 600,827 0 6,239,963
---------- ---------- ---------- -------- -----------
Net assets end of period*.................... $5,129,744 $1,044,476 $2,437,067 $600,827 $25,210,073
========== ========== ========== ======== ===========
Units outstanding beginning of period........ 80,766 0 52,194 0 465,095
Units issued during the period............... 303,412 88,980 176,984 59,708 1,382,408
Units redeemed during the period............. (65,176) (8,214) (37,435) (7,514) (315,017)
---------- ---------- ---------- -------- -----------
Units outstanding end of period.............. 319,002 80,766 191,743 52,194 1,532,486
========== ========== ========== ======== ===========
- ---------------
*Includes undistributed net investment
income of:.................................. $ 71,362 $ 25,168 $ 45,386 $ 16,433 $ 318,832
**Commencement of operations.
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
----------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- ------------------------------ -------------------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MARCH 8, 1995** FOR THE YEAR MARCH 8, 1995** FOR THE YEAR MARCH 20, 1995**
THROUGH ENDED THROUGH ENDED THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1996 1995 1996 1995
--------------- ------------ --------------- ------------ ----------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)................ $ 184,073 $ (1,058) $ 17,938 $ 42,346 $ 7,401
Net realized gain on investments............ 123,272 23,372 6,166 180 190
Net increase (decrease) in unrealized
appreciation of investments............... 92,118 96,691 (109) 25,863 361
---------- ---------- -------- -------- --------
Net increase in net assets resulting from
operations.................................. 399,463 119,005 23,995 68,389 7,952
---------- ---------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units..... 6,530,478 1,524,746 394,240 535,643 367,392
Net asset value of units redeemed or used to
meet contract obligations................. (689,978) (291,724) (38,818) (125,293) (22,635)
---------- ---------- -------- -------- --------
Net increase from unit transactions.......... 5,840,500 1,233,022 355,422 410,350 344,757
---------- ---------- -------- -------- --------
Net increase in net assets................... 6,239,963 1,352,027 379,417 478,739 352,709
Net assets beginning of period............... 0 379,417 0 352,709 0
---------- ---------- -------- -------- --------
Net assets end of period*.................... $6,239,963 $1,731,444 $379,417 $831,448 $352,709
========== ========== ======== ======== ========
Units outstanding beginning of period........ 0 31,566 0 31,730 0
Units issued during the period............... 519,384 120,205 34,979 45,756 33,810
Units redeemed during the period............. (54,289) (22,951) (3,413) (10,777) (2,080)
---------- ---------- -------- -------- --------
Units outstanding end of period.............. 465,095 128,820 31,566 66,709 31,730
========== ========== ======== ======== ========
- ---------------
*Includes undistributed net investment
income of:.................................. $ 184,073 $ 16,880 $ 17,938 $ 49,747 $ 7,401
**Commencement of operations.
</TABLE>
See notes to financial statements.
F-20
<PAGE> 73
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Variable Life Insurance and Variable Universal Life
Insurance Policies. These policies are issued by MONY America, which is a
wholly-owned subsidiary of The Mutual Life Insurance Company of New York
("MONY"). MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based on current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
There are currently fifteen subaccounts within the Variable Account, each
invests only in a corresponding portfolio of the MONY Series Fund, Inc. (the
"Fund") or the Enterprise Accumulation Trust ("Enterprise") (collectively, the
"Funds"). The subaccounts of the Variable Universal Life commenced operations
during 1995. The Funds are registered under the 1940 Act as open end,
diversified, management investment companies.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment:
The investment in shares of each of the respective portfolios is stated at
value which is the net asset values of the Funds. Except for the Money Market
Portfolios, net asset values are based upon market quotations of the securities
held in each of the corresponding portfolios of the Funds. For the Money Market
Portfolios, the net asset values are based on amortized cost of the securities
held which approximates value.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted on each monthly date from
the cash value of the contract to compensate MONY America. These deductions are
treated as contractholder redemptions by the Variable Account. The amount
deducted for all subaccounts for 1996 aggregated $5,429,287.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .60 percent (for the Variable
Life Subaccounts) and .75 percent (for the Variable Universal Life Subaccounts)
of aggregate average daily net assets. As investment adviser to the Fund, it
receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
F-21
<PAGE> 74
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS
Investments in Variable Life at cost, at December 31, 1996 consist of the
following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
--------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares........................ 21,945 30,861 17,293 8,239 62,944 90,294
Amount........................ $493,463 $499,432 $180,391 $ 95,586 $ 854,895 $ 90,294
-------- -------- -------- -------- --------- --------
Shares acquired:
Shares........................ 2,219 2,202 1,526 607 5,732 13,550
Amount........................ $ 60,760 $ 46,746 $ 16,166 $ 7,492 $ 95,355 $ 13,550
Shares received for reinvestment
of dividends:
Shares........................ 0 58 0 0 0 4,359
Amount........................ $ 0 $ 1,204 $ 0 $ 0 $ 0 $ 4,359
Shares redeemed:
Shares........................ (3,304) (4,689) (2,666) (1,428) (8,436) (22,914)
Amount........................ $(70,648) $(66,846) $(27,601) $(15,676) $(111,305) $(22,914)
-------- -------- -------- -------- --------- --------
Net change:
Shares........................ (1,085) (2,429) (1,140) (821) (2,704) (5,005)
Amount........................ $ (9,888) $(18,896) $(11,435) $ (8,184) $ (15,950) $ (5,005)
-------- -------- -------- -------- --------- --------
Shares end of year:
Shares........................ 20,860 28,432 16,153 7,418 60,240 85,289
Amount........................ $483,575 $480,536 $168,956 $ 87,402 $ 838,945 $ 85,289
======== ======== ======== ======== ========= ========
</TABLE>
F-22
<PAGE> 75
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at December 31, 1996
consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
----------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ---------- ------------
<S> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 2,528 20,948 16,786 1,700,817
Amount............. $ 27,635 $ 261,535 $172,086 $ 1,700,817
-------- --------- -------- ------------
Shares acquired:
Shares............. 9,370 39,960 16,103 18,374,077
Amount............. $100,064 $ 490,126 $166,533 $ 18,374,077
Shares received for
reinvestment of
dividends:
Shares............. 0 0 0 101,677
Amount............. $ 0 $ 0 $ 0 $ 101,677
Shares redeemed:
Shares............. (3,611) (13,047) (5,228) (15,827,331)
Amount............. $(39,108) $(159,016) $(53,059) $(15,827,331)
-------- --------- -------- ------------
Net change:
Shares............. 5,759 26,913 10,875 2,648,423
Amount............. $ 60,956 $ 331,110 $113,474 $ 2,648,423
-------- --------- -------- ------------
Shares end of year:
Shares............. 8,287 47,861 27,661 4,349,240
Amount............. $ 88,591 $ 592,645 $285,560 $ 4,349,240
======== ========= ======== ============
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------
HIGH
INTERNATIONAL YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ---------- ----------- ------------- ---------
<S> <C> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 44,731 32,512 222,380 70,393 66,424
Amount............. $ 1,021,263 $ 604,890 $ 6,147,845 $ 379,526 $ 352,348
----------- ---------- ----------- ---------- ---------
Shares acquired:
Shares............. 178,410 118,551 697,438 290,568 95,894
Amount............. $ 4,751,773 $2,322,833 $21,848,142 $1,658,305 $ 794,242
Shares received for
reinvestment of
dividends:
Shares............. 2,295 1,941 7,108 1,028 61,650
Amount............. $ 66,222 $ 39,244 $ 243,882 $ 6,221 $ 46,366
Shares redeemed:
Shares............. (47,690) (32,477) (192,152) (75,800) (73,070)
Amount............. $(1,090,608) $ (604,229) $(5,288,349) $ (409,190) $(387,732)
----------- ---------- ----------- ---------- ---------
Net change:
Shares............. 133,015 88,015 512,394 215,796 84,474
Amount............. $ 3,727,387 $1,757,848 $16,803,675 $1,255,336 $ 452,876
----------- ---------- ----------- ---------- ---------
Shares end of year:
Shares............. 177,746 120,527 734,774 286,189 150,898
Amount............. $ 4,748,650 $2,362,738 $22,951,520 $1,634,862 $ 805,224
=========== ========== =========== ========== =========
</TABLE>
F-23
<PAGE> 76
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account L:
We have audited the accompanying statements of assets and liabilities of
MONY America Variable Account L (comprising, respectively, the Variable Life's
Equity Growth, Equity Income, Intermediate Term Bond, Long Term Bond,
Diversified and Money Market Subaccounts and the Variable Universal Life's
Intermediate Term Bond, Long Term Bond, Government Securities, Money Market,
Equity, Small Cap, Managed, International Growth and High Yield Bond Subaccounts
as of December 31, 1995, for the Variable Life's Subaccount the related
statements of operations for the year then ended and the statements of changes
in net assets for each of the two years in the period then ended, and for the
Variable Universal Life's Subaccounts the statements of operations and
statements of changes in net assets for the Intermediate Term Bond Subaccount
for which the period is from April 20, 1995 (commencement of operations) to
December 31, 1995, the Long Term Bond Subaccount for which the period is from
March 31, 1995 (commencement of operations) to December 31, 1995, the Government
Securities and High Yield Subaccounts for which the period is March 20, 1995
(commencement of operations) to December 31, 1995, the Money Market Subaccount
for which the period is from February 17, 1995 (commencement of operations) to
December 31, 1995, the Equity, Managed and International Subaccounts for which
the period is from March 8, 1995 (commencement of operations) to December 31,
1995, and the Small Cap Subaccounts for which the period is from March 9, 1995
(commencement of operations) to December 31, 1995. These financial statements
are the responsibility of MONY America's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1995, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account L as of December 31,
1995, the results of their operations, and the changes in their net assets for
each of the periods referred to above, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 19, 1996
F-24
<PAGE> 77
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).... $ 493,463 $ 499,432 $ 180,391 $ 95,586 $ 854,895 $ 90,294
========= ========= ========= ========= ========== ==========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................ $ 551,041 $ 605,183 $ 182,778 $ 106,118 $ 989,489 $ 90,294
Amount due from MONY America.... 0 9 0 0 65 6
Amount due from MONY Series
Fund, Inc. ................... 239 338 91 1 357 4
--------- --------- --------- --------- ---------- ----------
Total assets.......... 551,280 605,530 182,869 106,119 989,911 90,304
--------- --------- --------- --------- ---------- ----------
LIABILITIES
Amount due to MONY America...... 239 338 91 1 357 4
Amount due to MONY Series
Fund, Inc. ................... 0 9 0 0 65 6
--------- --------- --------- --------- ---------- ----------
Total liabilities..... 239 347 91 1 422 10
--------- --------- --------- --------- ---------- ----------
Net assets...................... $ 551,041 $ 605,183 $ 182,778 $ 106,118 $ 989,489 $ 90,294
========= ========= ========= ========= ========== ==========
Net assets consist of:
Contractholders' net
payments................. $ 531,034 $ 578,333 $ 207,122 $ 124,860 $1,050,514 $ 192,695
Cost of insurance
withdrawals (Note 3)..... (323,941) (413,683) (173,922) (129,844) (784,109) (172,053)
Undistributed net
investment income........ 118,647 253,780 155,523 95,530 461,971 69,652
Accumulated net realized
gains (loss) on
investments.............. 167,723 81,002 (8,332) 5,040 126,519 0
Unrealized appreciation of
investments.............. 57,578 105,751 2,387 10,532 134,594 0
--------- --------- --------- --------- ---------- ----------
Net assets...................... $ 551,041 $ 605,183 $ 182,778 $ 106,118 $ 989,489 $ 90,294
========= ========= ========= ========= ========== ==========
Number of units outstanding*.... 15,643 16,377 8,556 3,869 35,607 5,499
--------- --------- --------- --------- ---------- ----------
Net asset value per unit
outstanding................... $ 35.23 $ 36.95 $ 21.36 $ 27.43 $ 27.79 $ 16.42
========= ========= ========= ========= ========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-25
<PAGE> 78
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...................... $27,635 $261,535 $172,086 $1,700,817 $1,021,263 $604,890
======= ======== ======== ========== ========== ========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)........................ $ 0 $ 0 $ 0 $ 0 $1,044,476 $600,827
Investments in MONY Series Fund, Inc. at net asset
value (Note 2).................................. 26,720 269,812 171,378 1,700,817 0 0
Amount due from Enterprise Accumulation Trust..... 0 0 0 0 364 306
Amount due from MONY America...................... 0 22 0 29,305 375 483
Amount due from MONY Series Fund, Inc............. 13 6 23 7 0 0
------- -------- -------- ---------- ---------- --------
Total assets.............................. 26,733 269,840 171,401 1,730,129 1,045,215 601,616
------- -------- -------- ---------- ---------- --------
LIABILITIES
Amount due to Enterprise Accumulation Trust....... 0 0 0 0 375 483
Amount due to MONY America........................ 13 6 23 7 364 306
Amount due to MONY Series Fund, Inc............... 0 22 0 29,305 0 0
------- -------- -------- ---------- ---------- --------
Total liabilities......................... 13 28 23 29,312 739 789
------- -------- -------- ---------- ---------- --------
Net assets........................................ $26,720 $269,812 $171,378 $1,700,817 $1,044,476 $600,827
======= ======== ======== ========== ========== ========
Net assets consist of:
Contractholders' net payments................. $27,817 $254,451 $171,675 $1,710,823 $1,065,456 $644,769
Cost of insurance withdrawals (Note 3)........ (1,970) (8,040) (4,816) (30,382) (92,752) (66,072)
Undistributed net investment income........... 1,414 13,958 5,094 20,376 25,168 16,433
Accumulated net realized gains on
investments................................. 374 1,166 133 0 23,391 9,760
Unrealized appreciation (depreciation) of
investments................................. (915) 8,277 (708) 0 23,213 (4,063)
------- -------- -------- ---------- ---------- --------
Net assets........................................ $26,720 $269,812 $171,378 $1,700,817 $1,044,476 $600,827
======= ======== ======== ========== ========== ========
Number of units outstanding*...................... 2,464 22,127 15,959 163,465 80,766 52,194
------- -------- -------- ---------- ---------- --------
Net asset value per unit outstanding.............. $ 10.84 $ 12.19 $ 10.74 $ 10.40 $ 12.93 $ 11.51
======= ======== ======== ========== ========== ========
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...................... $6,147,845 $379,526 $352,348
========== ======== ========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)........................ $6,239,963 $379,417 $352,709
Investments in MONY Series Fund, Inc. at net asset
value (Note 2).................................. 0 0 0
Amount due from Enterprise Accumulation Trust..... 15,893 202 61
Amount due from MONY America...................... 1,689 376 173
Amount due from MONY Series Fund, Inc............. 0 0 0
---------- -------- --------
Total assets.............................. 6,257,545 379,995 352,943
---------- -------- --------
LIABILITIES
Amount due to Enterprise Accumulation Trust....... 1,689 376 173
Amount due to MONY America........................ 15,893 202 61
Amount due to MONY Series Fund, Inc............... 0 0 0
---------- -------- --------
Total liabilities......................... 17,582 578 234
---------- -------- --------
Net assets........................................ $6,239,963 $379,417 $352,709
========== ======== ========
Net assets consist of:
Contractholders' net payments................. $6,329,873 $389,734 $362,971
Cost of insurance withdrawals (Note 3)........ (489,373) (34,312) (18,214)
Undistributed net investment income........... 184,073 17,938 7,401
Accumulated net realized gains on
investments................................. 123,272 6,166 190
Unrealized appreciation (depreciation) of
investments................................. 92,118 (109) 361
---------- -------- --------
Net assets........................................ $6,239,963 $379,417 $352,709
========== ======== ========
Number of units outstanding*...................... 465,095 31,566 31,730
---------- -------- --------
Net asset value per unit outstanding.............. $ 13.42 $ 12.02 $ 11.12
========== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-26
<PAGE> 79
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income..................... $ 36,269 $ 31,156 $10,214 $ 5,730 $ 52,334 $ 6,355
Mortality and expense risk charges
(Note 3).......................... 2,810 3,334 1,049 629 5,530 693
-------- -------- ------- ------- -------- --------
Net investment income............... 33,459 27,822 9,165 5,101 46,804 5,662
-------- -------- ------- ------- -------- --------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............... 201,342 154,706 30,377 41,657 185,053 264,962
Cost of shares sold............... 171,034 115,616 28,318 36,449 149,611 264,962
-------- -------- ------- ------- -------- --------
Net realized gains on investments... 30,308 39,090 2,059 5,208 35,442 0
Net increase in unrealized
appreciation of investments....... 57,362 88,922 11,732 16,634 125,651 0
-------- -------- ------- ------- -------- --------
Net realized and unrealized gains on
investments....................... 87,670 128,012 13,791 21,842 161,093 0
-------- -------- ------- ------- -------- --------
Net increase in net assets resulting
from operations................... $121,129 $155,834 $22,956 $26,943 $207,897 $ 5,662
======== ======== ======= ======= ======== ========
</TABLE>
See notes to financial statements.
F-27
<PAGE> 80
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- ------------------ ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
APRIL 20, MARCH 31, MARCH 20, FEBRUARY 17, MARCH 8,
1995* 1995* 1995* 1995* 1995*
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995 1995
--------------- --------------- --------------- ------------------ ---------------
<S> <C> <C> <C> <C> <C>
Dividend income.................. $ 1,489 $14,565 $ 5,452 $ 23,644 $ 27,509
Mortality and expense risk
charges (Note 3)............... 75 607 358 3,268 2,341
------- ------- ------- ---------- --------
Net investment income............ 1,414 13,958 5,094 20,376 25,168
------- ------- ------- ---------- --------
Realized and unrealized gains on
investments (Note 2):
Proceeds from sales............ 14,675 23,454 20,277 8,312,134 187,733
Cost of shares sold............ 14,301 22,288 20,144 8,312,134 164,342
------- ------- ------- ---------- --------
Net realized gains on
investments.................... 374 1,166 133 0 23,391
Net increase (decrease) in
unrealized appreciation of
investments.................... (915) 8,277 (708) 0 23,213
------- ------- ------- ---------- --------
Net realized and unrealized gains
(losses) on investments........ (541) 9,443 (575) 0 46,604
------- ------- ------- ---------- --------
Net increase in net assets
resulting from operations...... $ 873 $23,401 $ 4,519 $ 20,376 $ 71,772
======= ======= ======= ========== ========
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MARCH 9, MARCH 8, MARCH 8, MARCH 20,
1995* 1995* 1995* 1995*
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Dividend income.................. $17,779 $ 197,666 $18,775 $ 8,030
Mortality and expense risk
charges (Note 3)............... 1,346 13,593 837 629
------- ---------- ------- --------
Net investment income............ 16,433 184,073 17,938 7,401
------- ---------- ------- --------
Realized and unrealized gains on
investments (Note 2):
Proceeds from sales............ 156,201 1,299,150 85,432 112,342
Cost of shares sold............ 146,441 1,175,878 79,266 112,152
------- ---------- ------- --------
Net realized gains on
investments.................... 9,760 123,272 6,166 190
Net increase (decrease) in
unrealized appreciation of
investments.................... (4,063) 92,118 (109) 361
------- ---------- ------- --------
Net realized and unrealized gains
(losses) on investments........ 5,697 215,390 6,057 551
------- ---------- ------- --------
Net increase in net assets
resulting from operations...... $22,130 $ 399,463 $23,995 $ 7,952
======= ========== ======= ========
</TABLE>
- ---------------
* Commencement of operations.
See notes to financial statements.
F-28
<PAGE> 81
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
------------------- ------------------- -------------------
1995 1994 1995 1994 1995 1994
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income...................... $ 33,459 $ 6,953 $ 27,822 $ 29,418 $ 9,165 $ 8,849
Net realized gains on investments.......... 30,308 9,428 39,090 11,825 2,059 765
Net increase (decrease) in unrealized
appreciation of investments.............. 57,362 (10,655) 88,922 (40,147) 11,732 (13,415)
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations.................. 121,129 5,726 155,834 1,096 22,956 (3,801)
-------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units.... 246,538 40,449 56,024 49,919 13,113 12,962
Net asset value of units redeemed or used
to meet contract obligations............. 164,237 118,555 132,231 79,426 23,804 21,236
-------- -------- -------- -------- -------- --------
Net increase (decrease) from unit
transactions............................... 82,301 (78,106) (76,207) (29,507) (10,691) (8,274)
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets........ 203,430 (72,380) 79,627 (28,411) 12,265 (12,075)
Net assets beginning of year................. 347,611 419,991 525,556 553,967 170,513 182,588
-------- -------- -------- -------- -------- --------
Net assets end of year*...................... $551,041 $347,611 $605,183 $525,556 $182,778 $170,513
======== ======== ======== ======== ======== ========
Units outstanding beginning of year.......... 12,809 15,712 18,826 19,878 9,112 9,552
Units issued during the year................. 8,221 1,506 1,763 1,767 652 692
Units redeemed during the year............... 5,387 4,409 4,212 2,819 1,208 1,132
-------- -------- -------- -------- -------- --------
Units outstanding end of year................ 15,643 12,809 16,377 18,826 8,556 9,112
======== ======== ======== ======== ======== ========
- ---------------
*Includes undistributed net investment income
of: $118,647 $ 85,188 $253,780 $225,958 $155,523 $146,358
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------------
LONG TERM DIVERSIFIED MONEY MARKET
BOND SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
1995 1994 1995 1994 1995 1994
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income...................... $ 5,101 $ 6,859 $ 46,804 $ 23,875 $ 5,662 $ 5,483
Net realized gains on investments.......... 5,208 1,489 35,442 17,533 0 0
Net increase (decrease) in unrealized
appreciation of investments.............. 16,634 (16,392) 125,651 (38,475) 0 0
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations.................. 26,943 (8,044) 207,897 2,933 5,662 5,483
-------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units.... 7,195 6,144 90,610 95,640 137,395 93,348
Net asset value of units redeemed or used
to meet contract obligations............. 29,360 18,657 145,580 148,999 235,050 18,485
-------- -------- -------- -------- -------- --------
Net increase (decrease) from unit
transactions............................... (22,165) (12,513) (54,970) (53,359) (97,655) 74,863
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets........ 4,778 (20,557) 152,927 (50,426) (91,993) 80,346
Net assets beginning of year................. 101,340 121,897 836,562 886,988 182,287 101,941
-------- -------- -------- -------- -------- --------
Net assets end of year*...................... $106,118 $101,340 $989,489 $836,562 $ 90,294 $182,287
======== ======== ======== ======== ======== ========
Units outstanding beginning of year.......... 4,777 5,361 37,807 40,254 11,659 6,734
Units issued during the year................. 296 290 3,647 4,346 8,586 6,128
Units redeemed during the year............... 1,204 874 5,847 6,793 14,746 1,203
-------- -------- -------- -------- -------- --------
Units outstanding end of year................ 3,869 4,777 35,607 37,807 5,499 11,659
======== ======== ======== ======== ======== ========
- ---------------
*Includes undistributed net investment income
of: $ 95,530 $ 90,429 $461,971 $415,167 $ 69,652 $ 63,990
</TABLE>
See notes to financial statements.
F-29
<PAGE> 82
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
----------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------- ---------------- ---------------- ------------------- ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
APRIL 20, 1995** MARCH 31, 1995** MARCH 20, 1995** FEBRUARY 17, 1995** MARCH 8, 1995**
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995 1995
---------------- ---------------- ---------------- ------------------- ---------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income........... $ 1,414 $ 13,958 $ 5,094 $ 20,376 $ 25,168
Net realized gains on
investments................... 374 1,166 133 0 23,391
Net increase (decrease) in
unrealized appreciation of
investments................... (915) 8,277 (708) 0 23,213
------- -------- -------- ---------- ----------
Net increase in net assets
resulting from operations....... 873 23,401 4,519 20,376 71,772
------- -------- -------- ---------- ----------
From unit transactions:
Net proceeds from the issuance
of units...................... 29,827 254,605 171,901 8,289,772 1,073,215
Net asset value of units
redeemed or used to meet
contract obligations.......... 3,980 8,194 5,042 6,609,331 100,511
------- -------- -------- ---------- ----------
Net increase from unit
transactions.................... 25,847 246,411 166,859 1,680,441 972,704
------- -------- -------- ---------- ----------
Net increase in net assets........ 26,720 269,812 171,378 1,700,817 1,044,476
Net assets beginning of year...... 0 0 0 0 0
------- -------- -------- ---------- ----------
Net assets end of year*........... $26,720 $269,812 $171,378 $1,700,817 $1,044,476
======= ======== ======== ========== ==========
Units outstanding beginning of
year............................ 0 0 0 0 0
Units issued during the year...... 2,838 22,925 16,439 807,565 88,980
Units redeemed during the year.... 374 798 480 644,100 8,214
------- -------- -------- ---------- ----------
Units outstanding end of year..... 2,464 22,127 15,959 163,465 80,766
======= ======== ======== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 1,414 $ 13,958 $ 5,094 $ 20,376 $ 25,168
** Commencement of operations.
<CAPTION>
VARIABLE UNIVERSAL LIFE
----------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- ----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MARCH 9, 1995** MARCH 8, 1995** MARCH 8, 1995** MARCH 20, 1995**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
From operations:
Net investment income........... $ 16,433 $ 184,073 $ 17,938 $ 7,401
Net realized gains on
investments................... 9,760 123,272 6,166 190
Net increase (decrease) in
unrealized appreciation of
investments................... (4,063) 92,118 (109) 361
-------- ---------- -------- --------
Net increase in net assets
resulting from operations....... 22,130 399,463 23,995 7,952
-------- ---------- -------- --------
From unit transactions:
Net proceeds from the issuance
of units...................... 662,265 6,530,478 394,240 367,392
Net asset value of units
redeemed or used to meet
contract obligations.......... 83,568 689,978 38,818 22,635
-------- ---------- -------- --------
Net increase from unit
transactions.................... 578,697 5,840,500 355,422 344,757
-------- ---------- -------- --------
Net increase in net assets........ 600,827 6,239,963 379,417 352,709
Net assets beginning of year...... 0 0 0 0
-------- ---------- -------- --------
Net assets end of year*........... $600,827 $6,239,963 $379,417 $352,709
======== ========== ======== ========
Units outstanding beginning of
year............................ 0 0 0 0
Units issued during the year...... 59,708 519,384 34,979 33,810
Units redeemed during the year.... 7,514 54,289 3,413 2,080
-------- ---------- -------- --------
Units outstanding end of year..... 52,194 465,095 31,566 31,730
======== ========== ======== ========
- ---------------
* Includes undistributed net
investment income of: $ 16,433 $ 184,073 $ 17,938 $ 7,401
** Commencement of operations.
</TABLE>
See notes to financial statements.
F-30
<PAGE> 83
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Variable Life Insurance and Variable Universal Life
Insurance Policies. These policies are issued by MONY America, which is a
wholly-owned subsidiary of The Mutual Life Insurance Company of New York
("MONY"). MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based on current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
There are currently fifteen subaccounts within the Variable Account, each
invests only in a corresponding portfolio of the MONY Series Fund, Inc. (the
"Fund") or the Enterprise Accumulation Trust ("Enterprise") (collectively, the
"Funds"). The subaccounts of the Variable Universal Life commenced operations
during 1995. The Funds are registered under the 1940 Act as an open end,
diversified, management investment companies.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise are contained on pages 66 to 128 and 129 to 174,
respectively, and should be read in conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment:
The investment in shares of each of the respective portfolios is stated at
value which is the net asset values of the Fund. Except for the Money Market
Portfolio, net asset values are based upon market quotations of the securities
held in each of the corresponding portfolios of the Funds. For the Money Market
Portfolio, the net asset values are based on amortized cost of the securities
held which approximates value.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal holder of the assets held by the Variable
Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted on each monthly date from
the cash value of the contract to compensate MONY America. These deductions are
treated as contractholder redemptions by the Variable Account. The amount
deducted for all subaccounts for 1995 aggregated $917,026.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .60 percent (for the Variable
Life Subaccounts) and .75 percent (for the Variable Universal Life Subaccounts)
of aggregate average daily net assets. As investment adviser to the Fund, it
receives amounts paid by the Fund for those services.
F-31
<PAGE> 84
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in Variable Life at cost, at December 31, 1995 consist of the
following:
<TABLE>
<CAPTION>
LONG
EQUITY EQUITY INTERMEDIATE TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares.......................... 16,883 33,841 17,489 9,679 63,665 182,287
Amount.......................... $347,395 $508,727 $179,858 $107,442 $827,619 $182,287
-------- -------- -------- -------- -------- --------
Shares acquired:
Shares.......................... 12,139 4,146 1,752 1,501 8,255 166,614
Amount.......................... $280,833 $ 75,165 $ 18,637 $ 18,863 $124,553 $166,614
Shares received for reinvestment
of dividends:
Shares.......................... 1,444 1,589 966 445 3,329 6,355
Amount.......................... $ 36,269 $ 31,156 $ 10,214 $ 5,730 $ 52,334 $ 6,355
Shares redeemed:
Shares.......................... 8,521 8,715 2,914 3,386 12,305 264,962
Amount.......................... $171,034 $115,616 $ 28,318 $ 36,449 $149,611 $264,962
-------- -------- -------- -------- -------- --------
Net change:
Shares.......................... 5,062 (2,980) (196) (1,440) (721) (91,993)
Amount.......................... $146,068 ($ 9,295) $ 533 ($11,856) $ 27,276 ($91,993)
-------- -------- -------- -------- -------- --------
Shares end of year:
Shares.......................... 21,945 30,861 17,293 8,239 62,944 90,294
Amount.......................... $493,463 $499,432 $180,391 $ 95,586 $854,895 $ 90,294
======== ======== ======== ======== ======== ========
</TABLE>
F-32
<PAGE> 85
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at December 31, 1995
consist of the following:
<TABLE>
<CAPTION>
LONG
INTERMEDIATE TERM GOVERNMENT MONEY SMALL INTERNATIONAL
TERM BOND BOND SECURITIES MARKET EQUITY CAP MANAGED GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ---------- ---------- ---------- --------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 0 0 0 0 0 0 0 0
Amount............. $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------- -------- -------- ---------- ---------- -------- ---------- --------
Shares acquired:
Shares............. 3,719 21,651 18,234 9,989,307 51,815 40,031 262,958 82,905
Amount............. $40,447 $269,258 $186,778 $9,989,307 $1,158,096 $733,552 $7,126,057 $440,017
Shares received for
reinvestment of
dividends:
Shares............. 141 1,131 534 23,644 1,178 962 7,044 3,464
Amount............. $ 1,489 $ 14,565 $ 5,452 $ 23,644 $ 27,509 $ 17,779 $ 197,666 $ 18,775
Shares redeemed:
Shares............. 1,332 1,834 1,982 8,312,134 8,262 8,481 47,622 15,976
Amount............. $14,301 $ 22,288 $ 20,144 $8,312,134 $ 164,342 $146,441 $1,175,878 $ 79,266
------- -------- -------- ---------- ---------- -------- ---------- --------
Net change:
Shares............. 2,528 20,948 16,786 1,700,817 44,731 32,512 222,380 70,393
Amount............. $27,635 $261,535 $172,086 $1,700,817 $1,021,263 $604,890 $6,147,845 $379,526
------- -------- -------- ---------- ---------- -------- ---------- --------
Shares end of year:
Shares............. 2,528 20,948 16,786 1,700,817 44,731 32,512 222,380 70,393
Amount............. $27,635 $261,535 $172,086 $1,700,817 $1,021,263 $604,890 $6,147,845 $379,526
======= ======== ======== ========== ========== ======== ========== ========
<CAPTION>
HIGH YIELD
BOND
PORTFOLIO
----------
<S> <C>
Shares beginning of
year:
Shares............. 0
Amount............. $ 0
--------
Shares acquired:
Shares............. 86,158
Amount............. $456,470
Shares received for
reinvestment of
dividends:
Shares............. 1,515
Amount............. $ 8,030
Shares redeemed:
Shares............. 21,249
Amount............. $112,152
--------
Net change:
Shares............. 66,424
Amount............. $352,348
--------
Shares end of year:
Shares............. 66,424
Amount............. $352,348
========
</TABLE>
F-33
<PAGE> 86
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)... $ 690,738 $ 605,462 $ 151,450 $ 61,641 $1,038,787 $ 73,159
========= ========= ========= ========= ========== =========
Investments in MONY Series
Fund, Inc. at net asset value
(Note 2)..................... $ 902,727 $ 758,612 $ 156,568 $ 69,179 $1,198,581 $ 73,159
Amount due from MONY Series
Fund, Inc. .................. 251 532 228 0 286 136
Amount due from MONY America... 189 70 0 0 327 56
--------- --------- --------- --------- ---------- ---------
Total assets......... 903,167 759,214 156,796 69,179 1,199,194 73,351
--------- --------- --------- --------- ---------- ---------
LIABILITIES
Amount due to MONY Series Fund,
Inc. ........................ 189 70 0 0 327 56
Amount due to MONY America..... 251 532 228 0 286 136
--------- --------- --------- --------- ---------- ---------
Total liabilities.... 440 602 228 0 613 192
--------- --------- --------- --------- ---------- ---------
Net assets..................... $ 902,727 $ 758,612 $ 156,568 $ 69,179 $1,198,581 $ 73,159
========= ========= ========= ========= ========== =========
Net assets consist of:
Contractholders' net
payments.................. $ 531,146 $ 435,233 $ 187,265 $ 102,649 $ 874,416 $ 194,332
Cost of insurance withdrawals
(Note 3).................. (383,528) (486,949) (201,904) (156,404) (916,797) (200,035)
Undistributed net investment
income.................... 303,927 443,853 171,505 103,801 791,252 78,862
Accumulated net realized gain
(loss) on investments..... 239,193 213,325 (5,416) 11,595 289,916 0
Unrealized appreciation of
investments............... 211,989 153,150 5,118 7,538 159,794 0
--------- --------- --------- --------- ---------- ---------
Net assets..................... $ 902,727 $ 758,612 $ 156,568 $ 69,179 $1,198,581 $ 73,159
========= ========= ========= ========= ========== =========
Number of units outstanding*... 14,392 12,131 6,432 2,145 26,889 3,982
--------- --------- --------- --------- ---------- ---------
Net asset value per unit
outstanding*................. $ 62.73 $ 62.54 $ 24.34 $ 32.24 $ 44.58 $ 18.37
========= ========= ========= ========= ========== =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-34
<PAGE> 87
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)................... $327,692 $1,117,720 $485,666 $3,314,283 $21,357,437 $12,042,034
======== ========== ======== ========== =========== ===========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)..................... $ 0 $ 0 $ 0 $ 0 $24,287,314 $13,632,944
Investments in MONY Series Fund, Inc. at net
asset value (Note 2)......................... 327,335 1,167,798 489,467 3,314,283 0 0
Amount due from Enterprise Accumulation
Trust........................................ 0 0 0 0 4,430 2,697
Amount due from MONY America................... 0 13,886 0 30,006 26,033 20,070
Amount due from MONY Series Fund, Inc.......... 712 314 54 308 0 0
-------- ---------- -------- ---------- ----------- -----------
Total assets........................... 328,047 1,181,998 489,521 3,344,597 24,317,777 13,655,711
-------- ---------- -------- ---------- ----------- -----------
LIABILITIES
Amount due to Enterprise Accumulation Trust.... 0 0 0 0 26,033 20,070
Amount due to MONY America..................... 712 314 54 308 4,430 2,697
Amount due to MONY Series Fund, Inc............ 0 13,886 0 30,006 0 0
-------- ---------- -------- ---------- ----------- -----------
Total liabilities...................... 712 14,200 54 30,314 30,463 22,767
-------- ---------- -------- ---------- ----------- -----------
Net assets..................................... $327,335 $1,167,798 $489,467 $3,314,283 $24,287,314 $13,632,944
======== ========== ======== ========== =========== ===========
Net assets consist of:
Contractholders' net payments................ $349,618 $1,149,831 $532,002 $3,574,764 $22,241,943 $11,737,561
Cost of insurance withdrawals (Note 3)....... (43,218) (167,996) (91,027) (544,035) (2,948,581) (1,239,409)
Undistributed net investment income.......... 19,742 96,924 31,146 283,554 462,899 664,950
Accumulated net realized gain on
investments................................ 1,550 38,961 13,545 0 1,601,176 878,932
Unrealized appreciation (depreciation) of
investments................................ (357) 50,078 3,801 0 2,929,877 1,590,910
-------- ---------- -------- ---------- ----------- -----------
Net assets..................................... $327,335 $1,167,798 $489,467 $3,314,283 $24,287,314 $13,632,944
======== ========== ======== ========== =========== ===========
Number of units outstanding*................... 26,601 81,736 40,623 285,756 1,084,383 656,312
-------- ---------- -------- ---------- ----------- -----------
Net asset value per unit outstanding*.......... $ 12.31 $ 14.29 $ 12.05 $ 11.60 $ 22.40 $ 20.77
======== ========== ======== ========== =========== ===========
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note 4)................... $ 71,066,712 $5,597,050 $2,681,287
============ ========== ==========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)..................... $ 81,829,457 $5,989,695 $2,711,629
Investments in MONY Series Fund, Inc. at net
asset value (Note 2)......................... 0 0 0
Amount due from Enterprise Accumulation
Trust........................................ 15,220 913 1,852
Amount due from MONY America................... 60,248 3,107 707
Amount due from MONY Series Fund, Inc.......... 0 0 0
------------ ---------- ----------
Total assets........................... 81,904,925 5,993,715 2,714,188
------------ ---------- ----------
LIABILITIES
Amount due to Enterprise Accumulation Trust.... 60,248 3,107 707
Amount due to MONY America..................... 15,220 913 1,852
Amount due to MONY Series Fund, Inc............ 0 0 0
------------ ---------- ----------
Total liabilities...................... 75,468 4,020 2,559
------------ ---------- ----------
Net assets..................................... $ 81,829,457 $5,989,695 $2,711,629
============ ========== ==========
Net assets consist of:
Contractholders' net payments................ $ 72,909,930 $6,015,809 $2,719,688
Cost of insurance withdrawals (Note 3)....... (10,471,466) (773,836) (338,204)
Undistributed net investment income.......... 2,454,353 96,926 242,896
Accumulated net realized gain on
investments................................ 6,173,895 258,151 56,907
Unrealized appreciation (depreciation) of
investments................................ 10,762,745 392,645 30,342
------------ ---------- ----------
Net assets..................................... $ 81,829,457 $5,989,695 $2,711,629
============ ========== ==========
Number of units outstanding*................... 3,607,673 377,353 185,146
------------ ---------- ----------
Net asset value per unit outstanding*.......... $ 22.68 $ 15.87 $ 14.65
============ ========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-35
<PAGE> 88
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income............. $138,442 $118,315 $8,132 $3,912 $ 261,166 $1,905
Mortality and expense risk
charges (Note 3).......... (2,536) (2,220) (461) (206) (3,420) (219)
-------- -------- ------ ------ --------- ------
Net investment income....... 135,906 116,095 7,671 3,706 257,746 1,686
-------- -------- ------ ------ --------- ------
Realized and unrealized gain
on investments (Note 2):
Proceeds from sales....... 36,894 30,004 10,111 7,446 100,513 7,713
Cost of shares sold....... (22,002) (17,866) (9,532) (6,660) (66,788) (7,713)
-------- -------- ------ ------ --------- ------
Net realized gain on
investments............... 14,892 12,138 579 786 33,725 0
Net decrease in unrealized
appreciation of
investments............... (39,898) (65,096) (3,255) (962) (144,774) 0
-------- -------- ------ ------ --------- ------
Net realized and unrealized
loss on investments....... (25,006) (52,958) (2,676) (176) (111,049) 0
-------- -------- ------ ------ --------- ------
Net increase in net assets
resulting from
operations................ $110,900 $ 63,137 $4,995 $3,530 $ 146,697 $1,686
======== ======== ====== ====== ========= ======
</TABLE>
See notes to financial statements.
F-36
<PAGE> 89
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income.................. $ 14,696 $ 53,185 $ 18,282 $ 71,134 $ 0 $ 0 $ 0
Mortality and expense risk
charges
(Note 3)....................... (1,051) (3,568) (1,660) (10,171) (76,008) (40,883) (265,268)
-------- --------- --------- ------------ ----------- ----------- -----------
Net investment income (loss)..... 13,645 49,617 16,622 60,963 (76,008) (40,883) (265,268)
-------- --------- --------- ------------ ----------- ----------- -----------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............ 40,740 276,713 171,180 11,544,812 2,634,266 1,549,975 7,943,371
Cost of shares sold............ (40,118) (245,997) (163,607) (11,544,812) (1,977,458) (1,054,122) (5,512,846)
-------- --------- --------- ------------ ----------- ----------- -----------
Net realized gain on
investments.................... 622 30,716 7,573 0 656,808 495,853 2,430,525
Net increase (decrease) in
unrealized appreciation of
investments.................... (5,617) (27,923) (12,537) 0 1,564,547 948,364 5,395,363
-------- --------- --------- ------------ ----------- ----------- -----------
Net realized and unrealized gain
(loss) on investments.......... (4,995) 2,793 (4,964) 0 2,221,355 1,444,217 7,825,888
-------- --------- --------- ------------ ----------- ----------- -----------
Net increase in net assets
resulting from operations...... $ 8,650 $ 52,410 $ 11,658 $ 60,963 $ 2,145,347 $ 1,403,334 $ 7,560,620
======== ========= ========= ============ =========== =========== ===========
<CAPTION>
VARIABLE UNIVERSAL LIFE
--------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------- ----------
<S> <C> <C>
Dividend income.................. $ 0 $ 90,721
Mortality and expense risk
charges
(Note 3)....................... (18,787) (8,762)
--------- ---------
Net investment income (loss)..... (18,787) 81,959
--------- ---------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............ 725,269 369,346
Cost of shares sold............ (632,167) (348,740)
--------- ---------
Net realized gain on
investments.................... 93,102 20,606
Net increase (decrease) in
unrealized appreciation of
investments.................... 500,168 (8,414)
--------- ---------
Net realized and unrealized gain
(loss) on investments.......... 593,270 12,192
--------- ---------
Net increase in net assets
resulting from operations...... $ 574,483 $ 94,151
========= =========
</TABLE>
See notes to financial statements.
F-37
<PAGE> 90
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.......... $135,906 $ 53,040 $116,095 $ 76,627 $ 7,671 $ 9,374
Net realized gain on
investments.................. 14,892 33,607 12,138 84,704 579 1,672
Net increase (decrease) in
unrealized appreciation of
investments.................. (39,898) 101,936 (65,096) 32,332 (3,255) 288
-------- -------- -------- --------- -------- --------
Net increase in net assets
resulting from operations...... 110,900 188,583 63,137 193,663 4,995 11,334
-------- -------- -------- --------- -------- --------
From unit transactions:
Net proceeds from the issuance
of units..................... 27,757 35,646 15,141 39,172 4,591 8,194
Net asset value of units
redeemed or used to meet
contract obligations......... (34,064) (59,621) (25,326) (193,625) (9,555) (40,032)
-------- -------- -------- --------- -------- --------
Net decrease from unit
transactions................... (6,307) (23,975) (10,185) (154,453) (4,964) (31,838)
-------- -------- -------- --------- -------- --------
Net increase (decrease) in net
assets......................... 104,593 164,608 52,952 39,210 31 (20,504)
Net assets beginning of period... 798,134 633,526 705,660 666,450 156,537 177,041
-------- -------- -------- --------- -------- --------
Net assets end of period*........ $902,727 $798,134 $758,612 $ 705,660 $156,568 $156,537
======== ======== ======== ========= ======== ========
Units outstanding beginning of
period......................... 14,506 14,958 12,292 15,149 6,639 8,041
Units issued during the period... 457 747 254 783 193 362
Units redeemed during the
period......................... (571) (1,199) (415) (3,640) (400) (1,764)
-------- -------- -------- --------- -------- --------
Units outstanding end of
period......................... 14,392 14,506 12,131 12,292 6,432 6,639
======== ======== ======== ========= ======== ========
- ---------------
* Includes undistributed net
investment income of: $303,927 $168,021 $443,853 $ 327,758 $171,505 $163,834
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------------------------------------
LONG TERM DIVERSIFIED MONEY MARKET
BOND SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.......... $ 3,706 $ 5,147 $ 257,746 $ 77,745 $ 1,686 $ 3,689
Net realized gain on
investments.................. 786 3,780 33,725 100,092 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................. (962) 649 (144,774) 59,772 0 0
-------- -------- ---------- ---------- ------- --------
Net increase in net assets
resulting from operations...... 3,530 9,576 146,697 237,609 1,686 3,689
-------- -------- ---------- ---------- ------- --------
From unit transactions:
Net proceeds from the issuance
of units..................... 1,218 4,547 32,883 77,730 3,352 6,471
Net asset value of units
redeemed or used to meet
contract obligations......... (7,124) (37,821) (92,162) (287,917) (7,442) (19,886)
-------- -------- ---------- ---------- ------- --------
Net decrease from unit
transactions................... (5,906) (33,274) (59,279) (210,187) (4,090) (13,415)
-------- -------- ---------- ---------- ------- --------
Net increase (decrease) in net
assets......................... (2,376) (23,698) 87,418 27,422 (2,404) (9,726)
Net assets beginning of period... 71,555 95,253 1,111,163 1,083,741 75,563 85,289
-------- -------- ---------- ---------- ------- --------
Net assets end of period*........ $ 69,179 $ 71,555 $1,198,581 $1,111,163 $73,159 $ 75,563
======== ======== ========== ========== ======= ========
Units outstanding beginning of
period......................... 2,334 3,504 28,291 34,279 4,207 4,970
Units issued during the period... 39 165 788 2,219 185 368
Units redeemed during the
period......................... (228) (1,335) (2,190) (8,207) (410) (1,131)
-------- -------- ---------- ---------- ------- --------
Units outstanding end of
period......................... 2,145 2,334 26,889 28,291 3,982 4,207
======== ======== ========== ========== ======= ========
- ---------------
* Includes undistributed net
investment income of: $103,801 $100,095 $ 791,252 $ 533,506 $78,862 $ 77,176
</TABLE>
See notes to financial statements.
F-38
<PAGE> 91
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------------------
INTERMEDIATE TERM LONG TERM GOVERNMENT
BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 13,645 $ 5,087 $ 49,617 $ 36,542 $ 16,622 $ 11,060
Net realized gain on
investments.................... 622 1,269 30,716 6,284 7,573 4,933
Net increase (decrease) in
unrealized appreciation
of investments................. (5,617) 3,027 (27,923) 56,115 (12,537) 9,241
-------- -------- ---------- --------- --------- ---------
Net increase in net assets
resulting from operations........ 8,650 9,383 52,410 98,941 11,658 25,234
-------- -------- ---------- --------- --------- ---------
From unit transactions:
Net proceeds from the issuance of
units.......................... 118,343 172,340 400,847 471,749 122,700 288,293
Net asset value of units redeemed
or used to meet contract
obligations.................... (34,023) (38,182) (233,921) (236,759) (143,296) (107,779)
-------- -------- ---------- --------- --------- ---------
Net increase (decrease) from unit
transactions..................... 84,320 134,158 166,926 234,990 (20,596) 180,514
-------- -------- ---------- --------- --------- ---------
Net increase (decrease) in net
assets........................... 92,970 143,541 219,336 333,931 (8,938) 205,748
Net assets beginning of period..... 234,365 90,824 948,462 614,531 498,405 292,657
-------- -------- ---------- --------- --------- ---------
Net assets end of period*.......... $327,335 $234,365 $1,167,798 $ 948,462 $ 489,467 $ 498,405
======== ======== ========== ========= ========= =========
Units outstanding beginning of
period........................... 19,650 8,138 69,779 50,910 42,420 26,498
Units issued during the period..... 9,749 14,831 28,804 37,613 10,316 25,322
Units redeemed during the period... (2,798) (3,319) (16,847) (18,744) (12,113) (9,400)
-------- -------- ---------- --------- --------- ---------
Units outstanding end of period.... 26,601 19,650 81,736 69,779 40,623 42,420
======== ======== ========== ========= ========= =========
- ---------------
* Includes undistributed net
investment income of: $ 19,742 $ 6,097 $ 96,924 $ 47,307 $ 31,146 $ 14,524
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------
MONEY
MARKET
SUBACCOUNT
---------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1998 1997
------------ ------------
<S> <C> <C>
From operations:
Net investment income............ $ 60,963 $ 115,801
Net realized gain on
investments.................... 0 0
Net increase (decrease) in
unrealized appreciation
of investments................. 0 0
----------- ------------
Net increase in net assets
resulting from operations........ 60,963 115,801
----------- ------------
From unit transactions:
Net proceeds from the issuance of
units.......................... 9,315,113 20,219,389
Net asset value of units redeemed
or used to meet contract
obligations.................... (9,760,467) (20,985,756)
----------- ------------
Net increase (decrease) from unit
transactions..................... (445,354) (766,367)
----------- ------------
Net increase (decrease) in net
assets........................... (384,391) (650,566)
Net assets beginning of period..... 3,698,674 4,349,240
----------- ------------
Net assets end of period*.......... $ 3,314,283 $ 3,698,674
=========== ============
Units outstanding beginning of
period........................... 325,979 400,565
Units issued during the period..... 810,944 1,818,649
Units redeemed during the period... (851,167) (1,893,235)
----------- ------------
Units outstanding end of period.... 285,756 325,979
=========== ============
- ---------------
* Includes undistributed net
investment income of: $ 283,554 $ 222,591
</TABLE>
See notes to financial statements.
F-39
<PAGE> 92
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
---------------------------------------------------------------------------------------
EQUITY MANAGED
SUBACCOUNT SMALL CAP SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)...................... $ (76,008) $ 467,545 $ (40,883) $ 660,447 $ (265,268) $ 2,400,789
Net realized gain on
investments................. 656,808 746,120 495,853 342,745 2,430,525 2,836,432
Net increase (decrease) in
unrealized appreciation of
investments................. 1,564,547 984,236 948,364 568,217 5,395,363 3,108,829
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations..... 2,145,347 2,197,901 1,403,334 1,571,409 7,560,620 8,346,050
----------- ----------- ----------- ----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance
of units.................... 7,970,494 11,812,002 5,176,331 5,248,401 21,000,033 36,238,986
Net asset value of units
redeemed or used to meet
contract obligations........ (2,311,325) (2,656,849) (1,131,446) (1,072,152) (6,800,197) (9,726,108)
----------- ----------- ----------- ----------- ----------- -----------
Net increase from unit
transactions.................. 5,659,169 9,155,153 4,044,885 4,176,249 14,199,836 26,512,878
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets...... 7,804,516 11,353,054 5,448,219 5,747,658 21,760,456 34,858,928
Net assets beginning of
period........................ 16,482,798 5,129,744 8,184,725 2,437,067 60,069,001 25,210,073
----------- ----------- ----------- ----------- ----------- -----------
Net assets end of period*....... $24,287,314 $16,482,798 $13,632,944 $ 8,184,725 $81,829,457 $60,069,001
=========== =========== =========== =========== =========== ===========
Units outstanding beginning of
period........................ 821,090 319,002 449,403 191,743 2,954,670 1,532,486
Units issued during the
period........................ 371,149 647,931 264,383 326,703 966,250 1,945,611
Units redeemed during the
period........................ (107,856) (145,843) (57,474) (69,043) (313,247) (523,427)
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding end of
period........................ 1,084,383 821,090 656,312 449,403 3,607,673 2,954,670
=========== =========== =========== =========== =========== ===========
- ---------------
* Includes undistributed net
investment income of: $ 462,899 $ 538,907 $ 664,950 $ 705,833 $ 2,454,353 $ 2,719,621
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
---------------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
--------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss)...................... $ (18,787) $ 98,833 $ 81,959 $ 111,190
Net realized gain on
investments................. 93,102 135,511 20,606 35,931
Net increase (decrease) in
unrealized appreciation of
investments................. 500,168 (204,105) (8,414) 12,532
---------- ---------- ---------- ----------
Net increase in net assets
resulting from operations..... 574,483 30,239 94,151 159,653
---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance
of units.................... 1,952,718 3,034,936 928,475 1,268,282
Net asset value of units
redeemed or used to meet
contract obligations........ (616,760) (717,365) (250,716) (319,664)
---------- ---------- ---------- ----------
Net increase from unit
transactions.................. 1,335,958 2,317,571 677,759 948,618
---------- ---------- ---------- ----------
Net increase in net assets...... 1,910,441 2,347,810 771,910 1,108,271
Net assets beginning of
period........................ 4,079,254 1,731,444 1,939,719 831,448
---------- ---------- ---------- ----------
Net assets end of period*....... $5,989,695 $4,079,254 $2,711,629 $1,939,719
========== ========== ========== ==========
Units outstanding beginning of
period........................ 290,466 128,820 138,275 66,709
Units issued during the
period........................ 127,685 211,751 64,149 95,695
Units redeemed during the
period........................ (40,798) (50,105) (17,278) (24,129)
---------- ---------- ---------- ----------
Units outstanding end of
period........................ 377,353 290,466 185,146 138,275
========== ========== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 96,926 $ 115,713 $ 242,896 $ 160,937
</TABLE>
See notes to financial statements.
F-40
<PAGE> 93
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Flexible Premium Variable Life Insurance policies,
which include Variable Life Insurance (Strategist), Variable Universal Life
(MONYEquity Master) and Corporate Sponsored Variable Life Insurance policies.
These policies are issued by MONY America, which is a wholly-owned subsidiary of
The Mutual Life Insurance Company of New York ("MONY"). For presentation
purposes, the information related to the Variable Life and Variable Universal
Life Insurance policies are presented here.
There are currently six Variable Life Subaccounts and nine Variable
Universal Life Subaccounts within the Variable Account, each invests only in a
corresponding portfolio of the MONY Series Fund, Inc. (the "Fund") or the
Enterprise Accumulation Trust ("Enterprise") (collectively, the "Funds"). The
subaccounts of the Variable Universal Life commenced operations during 1995. The
Funds are registered under the 1940 Act as open end, diversified, management
investment companies.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise are contained on pages 60 to 93 and 95 to 126,
respectively, and should be read in conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment:
The investment in shares of each of the respective portfolios is stated at
value which is the net asset values of the Funds. Except for the Money Market
Portfolios, net asset values are based upon market quotations of the securities
held in each of the corresponding portfolios of the Funds. For the Money Market
Portfolios, the net asset values are based on amortized cost of the securities
held which approximates value.
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based on current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted on each monthly date from
the cash value of the contract to compensate MONY America. These deductions are
treated as contractholder redemptions by the Variable Account. The amount
deducted for the Variable Life and Variable Universal Subaccounts for 1998
aggregated $7,530,394.
F-41
<PAGE> 94
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .60 percent (for the Variable
Life Subaccounts) and .75 percent (for the Variable Universal Life Subaccounts)
of aggregate average daily net assets. As investment adviser to the Fund, it
receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in Variable Life at cost, at June 30, 1998 consist of the
following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
--------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares........................ 22,121 26,039 14,077 5,245 53,914 75,563
Amount........................ $546,247 $487,414 $148,164 $ 63,055 $ 806,595 $ 75,563
-------- -------- -------- -------- ---------- --------
Shares acquired:
Shares........................ 796 654 423 100 1,963 3,404
Amount........................ $ 28,051 $ 17,599 $ 4,686 $ 1,334 $ 37,814 $ 3,404
Shares received for reinvestment
of dividends:
Shares........................ 4,089 4,582 759 300 14,780 1,905
Amount........................ $138,442 $118,315 $ 8,132 $ 3,912 $ 261,166 $ 1,905
Shares redeemed:
Shares........................ (1,073) (1,135) (922) (551) (5,233) (7,713)
Amount........................ $(22,002) $(17,866) $ (9,532) $ (6,660) $ (66,788) $ (7,713)
-------- -------- -------- -------- ---------- --------
Net change:
Shares........................ 3,812 4,101 260 (151) 11,510 (2,404)
Amount........................ $144,491 $118,048 $ 3,286 $ (1,414) $ 232,192 $ (2,404)
-------- -------- -------- -------- ---------- --------
Shares end of period:
Shares........................ 25,933 30,140 14,337 5,094 65,424 73,159
Amount........................ $690,738 $605,462 $151,450 $ 61,641 $1,038,787 $ 73,159
======== ======== ======== ======== ========== ========
</TABLE>
F-42
<PAGE> 95
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at June 30, 1998 consist of
the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
-----------------------------------------------------
INTERMEDIATE LONG
TERM TERM GOVERNMENT MONEY
BOND BOND SECURITIES MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ---------- ---------- ------------
<S> <C> <C> <C> <C>
Shares beginning of
period:
Shares............. 21,076 $ 69,535 45,767 3,698,674
Amount............. $229,105 $ 870,461 $ 482,067 $ 3,698,674
-------- ---------- --------- ------------
Shares acquired:
Shares............. 11,212 32,608 13,757 11,089,287
Amount............. $124,009 $ 440,071 $ 148,924 $ 11,089,287
Shares received for
reinvestment of
dividends:
Shares............. 1,372 4,085 1,728 71,134
Amount............. $ 14,696 $ 53,185 $ 18,282 $ 71,134
Shares redeemed:
Shares............. (3,684) (20,234) (15,763) (11,544,812)
Amount............. $(40,118) $ (245,997) $(163,607) $(11,544,812)
-------- ---------- --------- ------------
Net change:
Shares............. 8,900 16,459 (278) (384,391)
Amount............. $ 98,587 $ 247,259 $ 3,599 $ (384,391)
-------- ---------- --------- ------------
Shares end of period:
Shares............. 29,976 85,994 45,489 3,314,283
Amount............. $327,692 $1,117,720 $ 485,666 $ 3,314,283
======== ========== ========= ============
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------
HIGH
INTERNATIONAL YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of
period:
Shares............. 469,730 306,544 1,473,001 660,074 339,706
Amount............. $15,117,468 $ 7,542,179 $54,701,619 $4,186,777 $1,900,963
----------- ----------- ----------- ---------- ----------
Shares acquired:
Shares............. 218,389 192,950 499,841 303,244 179,136
Amount............. $ 8,217,427 $ 5,553,977 $21,877,939 $2,042,440 $1,038,343
Shares received for
reinvestment of
dividends:
Shares............. 0 0 0 0 15,654
Amount............. $ 0 $ 0 $ 0 $ 0 $ 90,721
Shares redeemed:
Shares............. (69,964) (53,390) (180,695) (108,867) (63,727)
Amount............. $(1,977,458) $(1,054,122) $(5,512,846) $ (632,167) $ (348,740)
----------- ----------- ----------- ---------- ----------
Net change:
Shares............. 148,425 139,560 319,146 194,377 131,063
Amount............. $ 6,239,969 $ 4,499,855 $16,365,093 $1,410,273 $ 780,324
----------- ----------- ----------- ---------- ----------
Shares end of period:
Shares............. 618,155 446,104 1,792,147 854,451 470,769
Amount............. $21,357,437 $12,042,034 $71,066,712 $5,597,050 $2,681,287
=========== =========== =========== ========== ==========
</TABLE>
F-43
<PAGE> 96
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF DIRECTORS OF
MONY LIFE INSURANCE COMPANY OF AMERICA:
We have audited the accompanying statutory statements of admitted assets,
liabilities, capital and surplus of MONY Life Insurance Company of America ("the
Company") as of December 31, 1997 and 1996, and the related statutory statements
of operations, capital and surplus, and cash flows for the years then ended.
These statutory financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
The Company presents its financial statements in conformity with the
accounting practices prescribed or permitted by the Insurance Department of the
State of Arizona ("statutory"), which is a comprehensive basis of accounting
other than generally accepted accounting principles ("GAAP"). As explained in
Note 2 to the financial statements, the accounting practices used by the Company
vary from generally accepted accounting principles, and the effects of these
variances are material.
In our opinion, because of the effects of the matter discussed in the
preceding paragraph, the statutory financial statements referred to above do not
present fairly, in conformity with GAAP, the financial position of the Company
as of December 31, 1997 and 1996, or the results of its operations and its cash
flows, for the years then ended.
In our opinion, however, the statutory financial statements referred to
above present fairly, in all material respects, the admitted assets,
liabilities, capital and surplus of the Company as of December 31, 1997 and
1996, and the results of its operations and its cash flows for the years then
ended on the basis of accounting described in Note 2.
Our audits were conducted for the purpose of expressing an opinion on the
financial statements taken as a whole. The Supplemental Schedule of Selected
Financial Data is presented to comply with the National Association of Insurance
Commissioners' Annual Statement Instructions and is not a required part of the
basic financial statements. The Supplemental Schedule of Selected Financial Data
has been subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, is fairly stated, in all material
respects, in relation to the basic financial statements taken as a whole.
COOPERS & LYBRAND L.L.P.
New York, New York
February 27, 1998
F-44
<PAGE> 97
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF ADMITTED ASSETS, LIABILITIES, CAPITAL
AND SURPLUS -- STATUTORY BASIS
(IN THOUSANDS)
<TABLE>
<CAPTION>
DECEMBER 31,
-----------------------
1997 1996
---- ----
<S> <C> <C>
ASSETS
Cash and invested assets:
Cash and short-term investments........................ $ 45,956 $ 90,207
Bonds.................................................. 1,074,724 1,047,957
Common stocks.......................................... 981 1,235
Mortgage loans......................................... 134,828 158,847
Real estate............................................ 22,627 40,725
Policy loans........................................... 45,892 41,464
Other invested assets.................................. 7,001 8,518
---------- ----------
Total cash and invested assets.................... 1,332,009 1,388,953
Investment income due and accrued........................... 22,402 20,401
Other assets................................................ 247 2,511
Separate account assets..................................... 3,606,711 2,529,992
---------- ----------
Total assets...................................... $4,961,369 $3,941,857
========== ==========
LIABILITIES, CAPITAL AND SURPLUS
Liabilities:
Life insurance and annuity reserves.................... $1,241,979 $1,284,529
Deposits left with the Company......................... 23,197 23,525
Policy claims in process of settlement................. 8,331 6,085
Federal income taxes due or accrued.................... 17,837 29,077
Transfers from separate accounts....................... (128,943) (97,477)
Other liabilities...................................... 32,869 18,842
Separate account liabilities........................... 3,606,711 2,529,992
Interest maintenance reserve........................... 3,965 3,583
Investment reserves.................................... 6,000 4,000
Asset valuation reserve................................ 16,272 17,887
---------- ----------
Total liabilities................................. 4,828,218 3,820,043
Capital and surplus:
Capital stock, $1.00 par value; authorized, 5,000,000
shares issued and outstanding, 2,500,000 shares....... 2,500 2,500
Additional paid-in capital............................. 133,500 133,500
Unassigned funds....................................... (2,849) (14,186)
---------- ----------
Total capital and surplus......................... 133,151 121,814
---------- ----------
Total liabilities, capital and surplus............ $4,961,369 $3,941,857
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-45
<PAGE> 98
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF OPERATIONS -- STATUTORY BASIS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
--------------------
1997 1996
---- ----
<S> <C> <C>
Premiums, annuity considerations and fund deposits.......... $799,035 $741,870
Net investment income....................................... 99,006 102,092
Other income (net).......................................... 332 22
-------- --------
898,373 843,984
Policyholder and contractholder benefits.................... 407,381 336,731
Change in policy and contract reserves...................... (42,879) (35,010)
Commissions................................................. 40,860 36,793
Operating expenses.......................................... 64,866 53,212
Transfer to separate accounts............................... 397,492 428,101
-------- --------
867,720 819,827
Net gain from operations before federal income taxes........ 30,653 24,157
Federal income taxes........................................ 17,390 14,407
-------- --------
Net gain from operations.................................... 13,263 9,750
Net realized capital losses (See Note 7).................. (3,544) (1,720)
-------- --------
Net Income.................................................. $ 9,719 $ 8,030
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-46
<PAGE> 99
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CAPITAL AND SURPLUS -- STATUTORY BASIS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
--------------------
1997 1996
---- ----
<S> <C> <C>
Capital and surplus, beginning of year...................... $121,814 $115,630
-------- --------
Net income.................................................. 9,719 8,030
Change in net unrealized capital gains...................... 2,774 1,618
Change in non-admitted assets............................... (771) 384
Change in asset valuation reserve........................... 1,615 (3,848)
Increase in investment reserve.............................. (2,000) 0
-------- --------
Net change in capital and surplus for the year.............. 11,337 6,184
-------- --------
Capital and surplus, end of year............................ $133,151 $121,814
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-47
<PAGE> 100
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CASH FLOWS -- STATUTORY BASIS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
----------------------
1997 1996
---- ----
<S> <C> <C>
CASH FROM OPERATIONS:
Premiums, annuity considerations and fund deposits..... $ 799,751 $ 741,905
Investment income, net of investment expenses.......... 97,589 104,606
Other income........................................... 833 985
Policy benefits paid................................... (405,289) (336,206)
Transfers to separate accounts......................... (428,958) (460,502)
Commissions, other expenses and taxes paid............. (105,188) (91,150)
Federal income taxes (excluding tax on capital
gains)................................................ (27,516) 0
--------- ---------
Net cash from operations..................... (68,778) (40,362)
--------- ---------
CASH FROM INVESTMENTS:
Proceeds from investments sold, matured or repaid:
Bonds............................................. 130,649 134,846
Stocks............................................ 1,050 0
Mortgage loans.................................... 37,670 53,226
Real estate....................................... 18,453 19,790
Other invested assets............................. 1,512 18
Other............................................. 361 88
Taxes paid on net capital gains................... (1,564) 0
--------- ---------
Total investment proceeds.................... 188,131 207,968
--------- ---------
Cost of investments acquired:
Bonds............................................. 157,583 163,792
Stocks............................................ 68 40
Mortgage loans.................................... 13,641 38,651
Real estate....................................... 1,180 3,392
Other invested assets............................. 574 1,388
Change in policy loans............................ 4,428 3,339
--------- ---------
Total investments acquired................... 177,474 210,602
--------- ---------
Net cash from investments.................... 10,657 (2,634)
--------- ---------
CASH FROM FINANCING AND MISCELLANEOUS SOURCES:
Cash provided:
Other sources..................................... 13,870 8,041
--------- ---------
Net cash from financing and miscellaneous
sources.................................... 13,870 8,041
--------- ---------
Net change in cash and short-term investments.......... (44,251) (34,955)
Cash and short-term investments, beginning of year.......... 90,207 125,162
--------- ---------
Cash and short-term investments, end of year................ $ 45,956 $ 90,207
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-48
<PAGE> 101
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION:
MONY Life Insurance Company of America (the "Company"), an Arizona
corporation, is a wholly owned subsidiary of The Mutual Life Insurance Company
of New York ("MONY"), a mutual life insurance company. The Company's primary
business is to provide interest-sensitive life insurance and asset accumulation
products to business owners, growing families, and pre-retirees. The Company's
insurance and financial products are marketed and distributed directly to
individuals primarily through MONY's career agency sales force. These products
are sold throughout the United States (except New York) and Puerto Rico.
On September 8, 1997, MONY announced that it is pursuing converting to a
stock life insurance company through demutualization. In connection with the
demutualization, MONY has prepared a Plan of Reorganization ("the Plan") which
is subject to approval by the Insurance Department of the State of New York as
well as adoption by MONY's Board of Trustees and approval by MONY's
policyholders.
In accordance with the Plan, subject to the approvals indicated above,
among other things, MONY will convert from a New York mutual life insurance
company to a New York stock life insurance company (the "Plan of
Demutualization") and become a wholly owned subsidiary of MONY Financial
Services Corporation (the "Holding Company"), a holding company organized in
Delaware for the purpose of becoming the parent holding company of MONY.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The accompanying statutory financial statements have been prepared in
conformity with accounting practices prescribed or permitted by the Insurance
Department of the State of Arizona ("statutory"), which is a comprehensive basis
of accounting other than generally accepted accounting principles ("GAAP").
The preparation of statutory financial statements requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of results of operations and
changes in surplus during the reporting period. Actual results could differ
significantly from those estimates. The most significant estimates made in
conjunction with the preparation of the Company's financial statements include
those used in determining (i) valuation reserves for mortgage loans and real
estate investments, and (ii) the liability for future policy benefits.
In financial statements prepared in conformity with statutory accounting,
the accounting treatment of certain items is different than for financial
statements prepared in conformity with GAAP. Some of the general differences
include:
- Policy acquisition costs, such as commissions and other costs incurred
in connection with acquiring new and renewal business, are expensed when
incurred; under GAAP, such costs are deferred and amortized over the
present value of expected gross margins.
- Premiums for universal life and investment-type products are recognized
as revenue when due; under GAAP, they are reported as deposits to
policyholders' account balances. Revenues from these contracts under
GAAP consist of amounts assessed during the period against
policyholders' account balances for mortality, policy administration and
surrender charges.
- Policy reserves are based on statutory mortality and interest
requirements, without consideration of withdrawals, and are reported net
of reinsurance reserve credits; under GAAP, the reserves for interest
sensitive life and annuity products are equal to the fund value and are
reported gross of reinsurance reserve credits.
F-49
<PAGE> 102
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
- No provision is made for deferred income taxes; under GAAP, deferred
income taxes result from temporary differences between the tax bases of
assets and liabilities and their reported amounts in the financial
statements.
- An interest maintenance reserve ("IMR") is established as a liability to
capture realized investment gains and losses, net of tax, on the sale of
fixed maturities and mortgage loans resulting from changes in the
general level of interest rates, and is amortized into income over the
remaining years to expected maturity of the assets sold; under GAAP,
assets are carried on the balance sheet, net of appropriate valuation
allowances.
- An asset valuation reserve ("AVR"), based upon a formula prescribed by
the NAIC, is established as a liability to offset potential non-interest
related investment losses, and changes in the AVR are charged or
credited to surplus; under GAAP, no such reserve is required.
- Bonds in good standing are generally carried at amortized cost; under
GAAP, bonds which are classified as available for sale are carried at
fair value and the related change in unrealized gains and losses, net of
related deferred taxes and an adjustment for deferred policy acquisition
costs, is reported as a component of other comprehensive income in
equity.
- Certain assets designated as "non-admitted," are excluded from assets by
a direct charge to surplus; under GAAP, such assets are carried on the
balance sheet, net of appropriate valuation allowances.
- Methods used for calculating real estate and mortgage loan values and
real estate depreciation under statutory reporting are different from
those used for GAAP.
- Cash equivalents are defined as all highly liquid debt securities with
original maturities of twelve months or less; under GAAP, cash
equivalents are defined as short-term, highly liquid investments, which
generally have original maturities of three months or less.
The following is a description of the Company's principal statutory
accounting policies:
a. Premiums and Insurance Expenses
Premiums are included in revenue over the premium payment periods of the
related policies. Annuity considerations and fund deposits are included in
revenue as received.
The costs of acquiring new business, primarily commissions, underwriting,
agency and other costs related to issuance, maintenance and settlement of
policies are charged to operations in the year incurred.
b. Investments
Bonds are stated at amortized cost, except those bonds not in good
standing, which are carried at NAIC-designated values, which approximate fair
value. Loan-backed bonds and structured securities are valued at amortized cost
using the effective interest method considering anticipated prepayments at the
date of purchase; significant changes in the estimated cash flows from the
original purchase assumptions are accounted for using the retrospective method.
Common stocks are carried at fair value. Policy loans are carried at their
unpaid principal balances. Short-term investments are carried at amortized cost
and consist of securities with original maturities of twelve months or less.
Mortgage loans other than those in process of foreclosure are carried at
their unpaid principal balances adjusted for unamortized premium or discount.
Real estate owned for investment is carried at depreciated cost, less
encumbrances, if any. There were no encumbrances in 1997 or 1996. Joint ventures
in real estate are
F-50
<PAGE> 103
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
included in Other Invested Assets and are carried principally at their equity
value. Other investments are generally carried at cost.
Real estate acquired through foreclosure is carried at the lower of cost,
less accumulated depreciation and encumbrances, if any, or estimated fair value
at the time of foreclosure. There were no encumbrances in 1997 or 1996. Mortgage
loans in process of foreclosure are carried at the lower of the current carrying
value or estimated fair value. Fair value is determined by using the estimated
discounted cash flows expected from the underlying real estate properties. These
projected cash flows are based on estimates regarding future operating expenses,
lease rates, occupancy levels and investors' targeted yields.
The Company provides, through a direct charge to surplus, an investment
valuation reserve for permanent impairment of real estate investments, joint
ventures in real estate, mortgage loans delinquent for more than 60 days and
restructured mortgage loans. This reserve reflects, in part, the excess of the
carrying value of such assets over the estimated undiscounted cash flows
expected from the underlying real estate properties. These projected cash flows
are based on estimates similar to those described in the preceding paragraph. As
of December 31, 1997 and 1996, the Company's investment valuation reserve was $6
million and $4 million, respectively.
Derivative instruments are valued consistently with the items being hedged.
Hedges of fixed income assets and/or liabilities are valued at amortized cost.
Derivatives that cease to be effective hedges are valued at market value.
Realized capital gains and losses on sales of investments are determined on
the basis of specific identification. Unrealized capital gains and losses are
recorded directly to surplus. Investment income is recognized as earned.
Investment income earned includes the amortization of premium and accretion of
discount relative to bonds acquired at other than their par value and excludes
certain overdue due and accrued interest income.
c. Interest Maintenance Reserve and Asset Valuation Reserve
Realized investment gains and losses (net of tax) for bonds and mortgage
loans resulting from changes in interest rates are deferred, and credited or
charged to the IMR. These amounts are amortized into net income over the
remaining years to expected maturity of the assets sold.
The AVR is based upon a formula prescribed by the NAIC and functions as a
reserve for potential non-interest related investment losses. In addition,
realized investment gains and losses (not subject to the IMR) and unrealized
gains and losses result in changes in the AVR which are recorded directly to
surplus.
d. Policy Reserves
Policy reserves for deferred annuity contracts are computed by using the
Commissioners' Annuity Reserve Valuation Method by using the 1971 IAM Table for
contracts issued before 1984 and the 1983 Table A for contracts issued since
1983 and prescribed statutory interest rates. Policy reserves for universal life
and single premium whole life contracts are computed by using the Commissioners'
Reserve Valuation Method and by using the 1958 and 1980 CSO Tables, and
prescribed statutory interest rates.
e. Non-admitted Assets
Certain assets designated as "non-admitted" assets (principally
miscellaneous receivables) are excluded from the statements of admitted assets,
liabilities, capital and surplus.
F-51
<PAGE> 104
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
f. Separate Account Assets and Liabilities
Separate account assets and liabilities represent primarily segregated
funds administered and invested by the Company for the benefit of certain
contractholders. Assets consist of securities reported at market value.
Premiums, benefits and expenses of the separate accounts are included in the
Company's statements of operations.
g. Depreciation
The Company uses the constant-yield method of depreciation for
substantially all investments in real estate and real estate joint ventures and
limited partnerships acquired prior to January 1, 1991. Acquisitions subsequent
to January 1, 1991 and foreclosed real estate are depreciated on the
straight-line method. Real estate assets and improvements are generally
depreciated over ten to forty-year periods and leasehold improvements are
depreciated over the lives of the leases. Depreciation expense related to
investments in real estate was $1.1 million and $1.4 million in 1997 and 1996,
respectively; accumulated depreciation was $4.4 million at December 31, 1997 and
1996.
h. Cash Flows
Short-term investments are characterized as cash equivalents for purposes
of the statements of cash flows.
Certain amounts for 1996 have been reclassified to conform to the 1997
presentation.
3. CAPITAL AND SURPLUS:
MONY guaranteed to the states who requested it, pursuant to conditions
imposed by such states as a prerequisite for the licensing of new subsidiaries,
that the Company's capital and surplus would be maintained at a level at least
equivalent to the minimum capital and surplus required for admission to conduct
business in those states. As of December 31, 1997 and 1996, this guarantee was
outstanding in the state of New Jersey.
4. RELATED PARTY TRANSACTIONS:
At both December 31, 1997 and 1996, approximately 26 percent of the
Company's investments in mortgages were held through joint participation with
MONY. In addition, approximately 100 percent and 87 percent of the Company's
real estate and joint venture investments were held through joint participation
with MONY at December 31, 1997 and 1996, respectively.
In 1997 the New York City Industrial Development Agency issued bonds in the
total amount of $16.0 million for the benefit of MONY related to MONY's
consolidation of site locations to New York City. Debt service under the bonds
is funded by lease payments by MONY to the bond trustee for the benefit of the
Company, which is the sole bondholder. The bonds are listed as affiliated bonds
on Schedule D.
The Company and MONY are parties to an agreement whereby MONY agrees to
reimburse the Company to the extent that the Company's recognized loss as a
result of mortgage loan default or foreclosure or subsequent sale of the
underlying collateral exceeds 75 percent of the appraised value of the loan at
origination for each such mortgage loan. Pursuant to the agreement, the Company
received payments from MONY totaling $0.1 million in both 1997 and 1996.
The Company has a service agreements with MONY whereby MONY provides
personnel services, facilities, supplies and equipment to the Company to conduct
its business as well as for the Company to
F-52
<PAGE> 105
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
4. RELATED PARTY TRANSACTIONS (CONTINUED):
provide services to MONY Series Fund, Inc. ("the Fund"), an affiliate of the
Company, as an investment advisor. Services rendered by MONY under these
agreements are provided on a cost reimbursable basis.
The Company has an investment advisory agreement with the Fund with respect
to the investment and management of the Fund's invested assets. The Company is
compensated for such services with an investment management fee computed in
accordance with the terms of the agreement.
The Company has three underwriting agreements with the Fund and MONY
Securities Corporation ("MSC"). The agreements provide for MSC to act as the
principal underwriter for the sale of the Company's flexible premium variable
annuity contracts and as the broker for the sale of the Fund's shares. These
agreements may be terminated at any time by either MSC or the Company upon sixty
days prior notice.
In addition, the Company has an investment advisory agreement with MONY
whereby MONY provides investment advisory services with respect to the
investment and management of the Company's investment portfolio. The agreement
provides for scheduled fees for actual cost reimbursement and may be terminated
by either party upon 60 days written notice.
5. FIXED MATURITY SECURITIES AND COMMON STOCKS:
Fixed Maturity Securities by Investment Type and Common Stocks:
The cost and estimated fair value (see Note 8) of investments in fixed
maturity securities (including short-term investments and bonds) and common
stocks as of December 31, 1997 and December 31, 1996 are presented in the table
below. Cost is amortized cost for fixed maturity securities and original cost
for common stocks.
<TABLE>
<CAPTION>
GROSS GROSS ESTIMATED
UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
------------------- ------------- ----------- -------------------
1997 1996 1997 1996 1997 1996 1997 1996
---- ---- ---- ---- ---- ---- ---- ----
(DOLLARS IN MILLIONS)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Treasury securities & obligations of
U.S. government agencies................ $ 5.9 $ 5.9 $ 0.0 $ 0.0 $0.0 $0.0 $ 5.9 $ 5.9
Collateralized mortgage obligations:
Government agency backed................ 123.7 126.4 2.2 1.3 0.1 1.0 125.8 126.7
Non-agency backed....................... 34.5 35.0 2.0 1.5 0.0 0.2 36.5 36.3
Other asset backed securities:
Government agency backed................ 0.2 0.2 0.0 0.0 0.0 0.0 0.2 0.2
Non-agency backed....................... 93.8 98.5 2.1 1.3 0.2 0.7 95.7 99.1
Public utilities.......................... 123.8 129.0 3.1 2.3 0.2 1.0 126.7 130.3
Corporate bonds........................... 676.8 653.0 18.0 13.2 2.2 4.8 692.6 661.4
Affiliates................................ 16.0 0.0 0.0 0.0 0.0 0.0 16.0 0.0
-------- -------- ----- ----- ---- ---- -------- --------
Total bonds............................. 1,074.7 1,048.0 27.4 19.6 2.7 7.7 1,099.4 1,059.9
Commercial paper.......................... 25.7 86.5 0.0 0.0 0.0 0.0 25.7 86.5
-------- -------- ----- ----- ---- ---- -------- --------
Total bonds and short-term
investments........................... $1,100.4 $1,134.5 $27.4 $19.6 $2.7 $7.7 $1,125.1 $1,146.4
======== ======== ===== ===== ==== ==== ======== ========
Common stocks............................. $ 0.8 $ 1.1 $ 0.2 $ 0.1 $0.0 $0.0 $ 1.0 $ 1.2
======== ======== ===== ===== ==== ==== ======== ========
</TABLE>
Amortized cost represents the principal amount of the fixed maturity
securities adjusted by unamortized premium or discount and reduced by writedowns
of $0.4 million and $3.4 million at December 31, 1997 and 1996, respectively, as
required by the NAIC for securities which are in or near default.
F-53
<PAGE> 106
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
5. FIXED MATURITY SECURITIES AND COMMON STOCKS (CONTINUED):
At December 31, 1997, 78.2% of the Company's Collateralized Mortgage
Obligation (CMO) portfolio was held in U.S. government and government
agency-backed securities. The remainder of the CMO portfolio consisted of NAIC
category 1 investment grade securities.
Maturities of Fixed Maturity Securities:
The amortized cost and estimated fair value of fixed maturity securities by
maturity date as of December 31, 1997 are as follows:
<TABLE>
<CAPTION>
ESTIMATED
AMORTIZED FAIR
COST VALUE
--------- ---------
($ IN MILLIONS)
<S> <C> <C>
Due in one year or less................................. $ 48.9 $ 49.0
Due after one year through five years................... 411.4 418.1
Due after five years through ten years.................. 380.4 391.3
Due after ten years..................................... 259.7 266.7
-------- --------
$1,100.4 $1,125.1
======== ========
</TABLE>
Fixed maturity securities that are not due at a single maturity date have
been included in the preceding table in the year of final maturity. Actual
maturities may differ from contractual maturities because borrowers may have the
right to call or prepay obligations with or without call or prepayment
penalties.
Proceeds from sales of investments in fixed maturity securities during 1997
and 1996 were $31.3 million and $13.3 million, respectively. Gross gains of $0.5
million in 1997 and $0.2 million in 1996, and gross losses of $4.3 million in
1997 and $0.3 million in 1996 were realized on these sales.
Proceeds from sales of investments in common stocks during 1997 and 1996
were $1.0 million and $0, respectively. Gross gains of $0.7 million in 1997 and
$0 in 1996, and gross losses of $0 in 1997 and $0 in 1996 were realized on these
sales.
There were no non-income producing bonds and redeemable preferred stocks
for the twelve months preceding December 31, 1997. The carrying values of fixed
maturity securities which were non-income producing for the twelve months
preceding December 31, 1996 were $1.0 million.
6. MORTGAGE LOANS AND REAL ESTATE:
The Company invests in mortgage loans collateralized by commercial and
agricultural real estate. Such mortgage loans consist primarily of first
mortgage liens on completed income-producing properties, including agricultural
properties. As of December 31, 1997, $55.3 million of mortgage loans have terms
that require amortization, and $79.5 million of mortgage loans require partial
amortization or are non-amortizing. Mortgage loans delinquent over 90 days or in
process of foreclosure were $0.6 million at December 31, 1997 and there were no
mortgage loans delinquent over 90 days or in process of foreclosure at December
31, 1996. There were no properties acquired through foreclosure during 1997 or
1996.
The Company has performing restructured mortgage loans of $14.1 million as
of December 31, 1997 and $15.0 million as of December 31, 1996. The new terms
typically reduce the contract rate of interest. Interest is recognized in income
based on the modified rate of the loan. Gross interest income on restructured
loans that would have been recorded in accordance with the loans' original terms
was approximately $1.4 million in 1997 and $1.5 million in 1996. Gross interest
income recognized in net income for the period from these loans was $1.0 million
in 1997 and $1.1 million in 1996. There are no commitments to lend additional
funds to any debtor involved in a restructuring.
F-54
<PAGE> 107
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
6. MORTGAGE LOANS AND REAL ESTATE (CONTINUED):
At both December 31, 1997 and 1996, there were no mortgage loans that were
non-income producing for the preceding twelve months.
At both December 31, 1997 and 1996, there were no real estate properties
that were non-income producing for the preceding twelve months.
7. INVESTMENT INCOME, REALIZED AND UNREALIZED CAPITAL GAINS (LOSSES):
Net investment income for the years ended December 31, 1997 and 1996 was
derived from the following sources:
<TABLE>
<CAPTION>
1997 1996
---- ----
($ IN MILLIONS)
<S> <C> <C>
NET INVESTMENT INCOME
- ------------------------------------------------------------
Bonds and common stock...................................... $ 79.0 $ 77.5
Mortgage loans.............................................. 12.0 14.4
Real estate (net of property expenses)...................... 1.2 3.0
Policy loans................................................ 3.5 2.7
Other investments (including cash & short-term
investments).............................................. 6.6 7.5
------ ------
Total investment income................................ 102.3 105.1
Investment expenses......................................... 3.3 3.0
------ ------
Net investment income.................................. $ 99.0 $102.1
====== ======
</TABLE>
Net realized capital gains (losses) on investments for the years ended
December 31, 1997 and 1996 are summarized as follows:
<TABLE>
<CAPTION>
1997 1996
---- ----
($ IN MILLIONS)
<S> <C> <C>
REALIZED CAPITAL GAINS (LOSSES)
- ------------------------------------------------------------
Bonds and common stock...................................... $(2.4) $ 0.9
Real estate and mortgage loans.............................. 0.4 (0.1)
Derivative instruments...................................... 0.0 (0.8)
Other....................................................... (0.2) 0.0
----- -----
(2.2) 0.0
Taxes....................................................... (0.5) (0.8)
Transferred to IMR, net of taxes............................ (0.8) (0.9)
----- -----
Net realized capital losses............................ $(3.5) $(1.7)
===== =====
</TABLE>
During 1997 and 1996, realized capital losses resulting from changes in
interest rates on bonds of $0.8 million (net of $0.5 million tax) and $0.9
million (net of $0.5 million tax), respectively, were transferred to the
Company's IMR for future amortization into net income.
Net unrealized capital gains were $2.8 million in 1997 and $1.6 million in
1996. The 1997 and 1996 net unrealized gains include writedowns of approximately
$0.2 million in 1997 and $0 in 1996 on real estate acquired through foreclosure
and mortgage loans in process of foreclosure. These gains and losses are
detailed by asset type in the table below.
F-55
<PAGE> 108
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
7. INVESTMENT INCOME, REALIZED AND UNREALIZED CAPITAL GAINS (LOSSES)
(CONTINUED):
<TABLE>
<CAPTION>
1997 1996
---- ----
($ IN MILLIONS)
<S> <C> <C>
UNREALIZED CAPITAL GAINS (LOSSES)
- ------------------------------------------------------------
Bonds and stocks............................................ $ 3.0 $1.6
Real estate and mortgage loans.............................. (0.2) 0.0
----- ----
Total net unrealized capital gains..................... $ 2.8 $1.6
===== ====
</TABLE>
8. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS:
The estimated fair values of mortgage loans, common stocks, cash,
short-term investments, separate account assets and liabilities, and
investment-type contracts approximate their carrying amounts. The carrying
values of bonds were $1,074.7 million and $1,048.0 million at December 31, 1997
and 1996, respectively. The estimated fair values of bonds were $1,099.4 million
and $1,059.9 million at December 31, 1997 and 1996, respectively.
The methods and assumptions utilized in estimating these fair values of
financial instruments are summarized as follows:
Fixed maturity securities (See Note 5)
The estimated fair values of fixed maturity securities are based upon
quoted market prices, where available. The fair values of fixed maturity
securities not actively traded and other non-publicly traded securities are
estimated using values obtained from independent pricing services or, in the
case of private placements, by discounting expected future cash flows using a
current market interest rate commensurate with the credit quality and term of
the investments.
Mortgage loans
The fair value of mortgage loans is estimated by discounting expected
future cash flows, using current interest rates for similar loans to borrowers
with similar credit risk. Loans with similar characteristics are aggregated for
purposes of the calculations. The fair value of mortgage loans in process of
foreclosure is the estimated fair value of the underlying collateral.
Policy loans
Policy loans are an integral component of insurance contracts and have no
maturity dates. Management has determined that it is not practicable to estimate
the fair value of policy loans.
Separate account assets and liabilities
The estimated fair value of assets held in separate accounts is based
principally on quoted market prices. The fair value of liabilities related to
separate accounts is the amount payable on demand, net of surrender charges.
Investment-type Contract Liabilities
The fair values of annuities are based on estimates of the value of
payments available upon full surrender. The fair values of the Company's
liabilities under guaranteed investment contracts are estimated by discounting
expected cash outflows using interest rates currently offered for similar
contracts with maturities consistent with those remaining for the contracts
being valued, where appropriate.
F-56
<PAGE> 109
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
9. OFF BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK:
Financial Instruments with Off-Balance Sheet Risk:
In 1992, the Company entered into an agreement with a bank to lend
securities to approved borrowers. There were $65,000 of loaned securities as of
December 31, 1997. The minimum collateral on securities loaned is 102% of the
market value of loaned securities. Such securities are marked to market on a
daily basis, adjusting required collateral values accordingly.
Concentrations of Credit Risk:
As of December 31, 1997 and 1996, the Company had no single investment or
series of investments with a single issuer (excluding U.S. Government Agency
securities) exceeding 1.4 percent and 1.3 percent, respectively, of total cash
and invested assets.
The bond portfolio is diversified by industry type. The industries
comprising 10 percent or more of the carrying value of the bond portfolio at
December 31, 1997 are Financial Services of $133.5 million (12.4 percent),
Government and Agencies of $129.8 million (12.1 percent), Energy of $128.3
million (11.9 percent), Non-Government Asset/Mortgage-Backed of $128.3 million
(11.9 percent), Public Utilities of $123.8 million (11.5 percent), and Consumer
Goods and Services of $112.5 million (10.5 percent). At December 31, 1996, the
industries comprising 10 percent or more of the carrying value of the bond
portfolio were Government and Agencies of $132.5 million (12.7 percent),
Non-Government Asset/Mortgage-Backed of $133.5 million (12.7 percent), Public
Utilities of $129.0 million (12.3 percent), Energy of $119.7 million (11.4
percent), and Other Manufacturing of $116.9 million (11.2 percent).
The Company holds below investment grade bonds of $79.7 million at December
31, 1997. Below, investment grade bonds are defined as those securities rated in
categories 3 through 6 by the NAIC, which are approximately equivalent to bonds
rated below BBB by rating agencies. These bonds consist mostly of privately
issued bonds, which are monitored by the Company through extensive internal
analysis of the financial condition of the borrowers, and which include
protective debt covenants. Of these bonds, $66.6 million are in category 3,
which is considered to be medium quality by the NAIC. At December 31, 1996, the
Company's investments in below investment grade bonds were $59.4 million.
The Company has investments in commercial and agricultural mortgage loans
and real estate (including joint ventures). The locations of property
collateralizing mortgage loans and real estate investment carrying values at
December 31, 1997 and 1996 are as follows:
<TABLE>
<CAPTION>
1997 1996
-------------- --------------
$ % $ %
- - - -
($ IN MILLIONS)
<S> <C> <C> <C> <C>
GEOGRAPHIC REGION
- ------------------------------------------
West...................................... 54.0 32.9 71.3 34.3
Mountain.................................. 41.2 25.1 48.3 23.3
Northeast................................. 25.3 15.4 25.6 12.3
Southwest................................. 16.8 10.2 20.9 10.1
Midwest................................... 14.7 8.9 25.5 12.3
Southeast................................. 12.4 7.5 16.1 7.7
----- ----- ----- -----
Total........................... 164.4 100.0 207.7 100.0
===== ===== ===== =====
</TABLE>
The states with the largest concentrations of mortgage loans and real
estate investments at December 31, 1997 are: California, $33.8 million (20.6%);
New York, $19.1 million (11.6%); Texas, $16.2 million (9.9%); Arizona, $13.6
million (8.3%); Washington, $11.6 million (7.1%) and Idaho, $10.7 million
(6.5%).
F-57
<PAGE> 110
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
9. OFF BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK (CONTINUED):
As of December 31, 1997 and 1996, the real estate and mortgage loan
portfolio was also diversified as follows:
<TABLE>
<CAPTION>
1997 1996
-------------- --------------
$ % $ %
- - - -
($ IN MILLIONS)
<S> <C> <C> <C> <C>
PROPERTY TYPE
- --------------------------------------------
Agriculture................................. 99.5 60.5 117.8 56.7
Office Building............................. 24.5 14.9 34.9 16.8
Hotel....................................... 15.0 9.1 21.5 10.4
Retail...................................... 10.3 6.3 12.3 5.9
Industrial.................................. 7.3 4.5 9.4 4.5
Other....................................... 4.4 2.6 4.4 2.1
Apartments.................................. 3.4 2.1 7.4 3.6
----- ----- ----- -----
Total............................. 164.4 100.0 207.7 100.0
===== ===== ===== =====
</TABLE>
10. RESERVES:
The withdrawal characteristics of the Company's annuity actuarial reserves
and deposit liabilities as of December 31, 1997 were as follows:
<TABLE>
<CAPTION>
($ IN MILLIONS)
<S> <C>
Not subject to discretionary withdrawal provision........... $ 77.1
Subject to discretionary withdrawal -- with adjustment:
- at book value less surrender charges of 5% or
more................................................. 180.9
- at market value..................................... 3,403.3
--------
Subtotal..................................... 3,584.2
Subject to discretionary withdrawal -- without adjustment:
- at book value (minimal or no charge or
adjustment).......................................... 475.1
--------
Total annuity actuarial reserves and deposit
liabilities -- gross and net of
reinsurance................................ $4,136.4
========
</TABLE>
The amounts above are included in the Company's statements of admitted
assets, liabilities, capital and surplus as life insurance and annuity reserves
($0.7) billion and separate account liabilities ($3.4) billion.
11. REINSURANCE:
Life insurance business is ceded on a yearly renewable term basis to MONY
and other insurance companies under various reinsurance contracts. The Company's
general practice is to retain no more than $0.5 million of risk on any one
person. The total amount of reinsured life insurance in force on this basis was
$2.7 billion and $2.6 billion at December 31, 1997 and 1996, respectively.
Premiums ceded under these contracts were $16.1 million and $14.6 million;
benefit payments recovered were $11.6 million and $17.3 million; policy reserve
credits recorded were $11.1 million and $10.6 million; and recoverable amounts
on paid and unpaid losses were $2.4 million and $3.5 million in 1997 and 1996,
respectively.
The Company is contingently liable with respect to ceded insurance should
any reinsurer be unable to meet its obligations under these agreements. To limit
the possibility of such losses, the Company evaluates the financial condition of
its reinsurers and monitors concentration of credit risk.
F-58
<PAGE> 111
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
12. FEDERAL INCOME TAXES:
The Company is included in the consolidated federal income tax return with
its parent, MONY, and the parent's non-life subsidiaries. The allocation of
federal income taxes is based upon separate return calculations with current
credit for net losses and other federal income tax credits provided to the life
insurance members of the affiliated group. Intercompany tax balances are settled
annually in the fourth quarter.
The Company's federal income tax returns for years through 1991 have been
examined with no proposed material adjustments. In the opinion of management,
adequate provision has been made for any additional taxes that may become due
with respect to open years.
Pre-tax operating gains and pre-tax realized gains, as reported in the
accompanying statements of operations, differ from taxable income reported for
tax purposes. Significant differences include the deferral and amortization of
policy acquisition costs for tax purposes, the difference between statutory and
tax reserves, depreciation expense and related recapture, capital gains deferred
to the IMR, and equity in joint ventures.
13. COMMITMENTS AND CONTINGENCIES:
In late 1995 and during 1996, a number of purported class actions were
commenced in various state and federal courts against the Company and MONY ("the
Companies") alleging that the Companies engaged in deceptive sales practices in
connection with the sale of whole and universal life insurance policies during
the period 1980 to the present. Although the claims asserted in each case are
not identical, they seek substantially the same relief under essentially the
same theories of recovery (i.e. breach of contract, fraud, negligent
misrepresentation, negligent supervision and training, breach of fiduciary duty,
unjust enrichment and violation of state insurance and/or deceptive business
practice laws). The Companies have answered the complaints in each action
(except for one being voluntarily held in abeyance), have denied any wrongdoing,
and have asserted numerous affirmative defenses.
On June 7, 1996, the New York State Supreme Court certified the Goshen
case, being the first of the aforementioned class actions filed, as a nationwide
class consisting of all persons or entities who have, or at the time of the
policy's termination, had an ownership interest in a whole or universal life
insurance policy issued by the Companies and sold on an alleged "vanishing
premium" basis during the period January 1, 1982 to December 31, 1995. On March
27, 1997, the Companies filed a motion to dismiss or, alternatively, motion for
summary judgment on all counts of the complaint.
The Massachusetts District Court in the Multidistrict Litigation has
entered an order recognizing the Goshen case as the lead case and essentially
holding all of the federal cases in abeyance pending the action of the Goshen
case. Consequently, all other putative class actions have been either
consolidated and transferred by the Judicial Panel on Multidistrict Litigation
to the United States District Court for the District of Massachusetts, or are
being voluntarily held in abeyance pending the outcome of the Goshen case.
On October 21, 1997, the New York State Supreme Court granted the
Companies' motion for summary judgment and dismissed all claims filed in the
Goshen case against the Companies. The order by the New York State Supreme Court
has been appealed to the Appellate Division by plaintiffs and all actions before
the United States District Court for the District of Massachusetts are still
pending.
In addition to the matters discussed above, the Company is involved in
various other legal actions and proceedings in connection with its businesses.
The claimants in certain of these actions and proceedings seek damages of
unspecified amounts. In addition, insurance companies are subject to
assessments, up to statutory limits, by state guaranty funds for losses of
policyholders of insolvent insurance companies.
F-59
<PAGE> 112
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
13. COMMITMENTS AND CONTINGENCIES (CONTINUED):
In the opinion of management of the Company, resolution of contingent
liabilities arising from litigation, income taxes and other matters will not
have a material adverse effect on the Company's statutory surplus or results of
operations.
At December 31, 1997, the Company had a commitment to issue a $1.9 million
fixed rate farm loan with an interest rate of 7.8% and a duration of 10 years.
There were no outstanding bond commitments as of December 31, 1997.
14. YEAR 2000:
The Year 2000 issue is the result of the widespread use of computer
programs written using two digits (rather than four) to define the applicable
year. Such programming was a common industry practice designed to avoid the
significant costs associated with additional mainframe capacity necessary to
accommodate a four-digit year field. As a result, any of the Company's computer
systems that have time-sensitive software may recognize a date using "00" as the
year 1900 rather than the year 2000. This could result in a major systems
failure or miscalculations. The Company has conducted a comprehensive review of
its computer systems to identify the systems that could be affected by the Year
2000 issue and has developed and implemented a plan to resolve the issue. The
Company currently believes that, with modifications to existing software and
converting to new software, the Year 2000 issue will not pose significant
operational problems for the Company's computer systems. However, if such
modifications and conversions are not completed on a timely basis, the Year 2000
issue may have a material impact on the operations of the Company. Furthermore,
even if the Company completes such modifications and conversions on a timely
basis, there can be no assurance that the failure by vendors or other third
parties to solve the Year 2000 problem will not have a material impact on the
operations of the Company.
F-60
<PAGE> 113
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA
FOR THE YEAR ENDED DECEMBER 31, 1997
(AMOUNTS IN $ THOUSANDS)
The following is a summary of certain financial data from the Company's
Annual Statement included in other exhibits and schedules subjected to audit
procedures by independent accountants and utilized by the Company's actuaries in
the determination of reserves:
<TABLE>
<S> <C>
INVESTMENT INCOME EARNED:
- ------------------------------------------------------------
U.S. Government bonds................................... 387
Other bonds (unaffiliated).............................. 77,378
Bonds of affiliates..................................... 602
Preferred stocks (unaffiliated)......................... 0
Preferred stocks of affiliates.......................... 0
Common stocks (unaffiliated)............................ 1
Common stocks of affiliates............................. 0
Mortgage loans.......................................... 12,097
Real estate............................................. 8,565
Premium notes, policy loans and liens................... 3,465
Collateral loans........................................ 0
Cash on hand and on deposit............................. 117
Short-term investments.................................. 4,652
Other invested assets................................... 571
Derivative instruments.................................. 0
Aggregate write-ins for investment income............... 1,355
----------
Gross investment income............................. 109,190
==========
REAL ESTATE OWNED -- BOOK VALUE LESS ENCUMBRANCES........... 22,627
MORTGAGE LOANS -- BOOK VALUE:
- ------------------------------------------------------------
Farm mortgages.......................................... 99,492
Residential mortgages................................... 0
Commercial mortgages.................................... 35,336
----------
Total mortgage loans................................ 134,828
==========
MORTGAGE LOANS BY STANDING -- BOOK VALUE:
- ------------------------------------------------------------
Good standing........................................... 120,120
Good standing with restructured terms................... 14,126
Interest overdue more than three months, not in
foreclosure............................................ 0
Foreclosure in process.................................. 582
----------
Total mortgage loans................................ 134,828
==========
OTHER LONG TERM ASSETS -- STATEMENT VALUE................... 52,824
COLLATERAL LOANS............................................ 0
BONDS AND STOCKS OF PARENTS, SUBSIDIARIES AND
AFFILIATES -- BOOK VALUE:
- ------------------------------------------------------------
Bonds................................................... 16,000
Preferred Stocks........................................ 0
Common Stocks........................................... 0
</TABLE>
F-61
<PAGE> 114
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA -- (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997
(AMOUNTS IN $ THOUSANDS)
<TABLE>
<S> <C>
BONDS AND SHORT-TERM INVESTMENTS BY CLASS AND MATURITY:
- ------------------------------------------------------------
BONDS AND SHORT-TERM INVESTMENTS BY MATURITY -- STATEMENT
VALUE:
- ------------------------------------------------------------
Due within one year or less............................. 84,300
Over 1 year through 5 years............................. 573,903
Over 5 years through 10 years........................... 344,927
Over 10 years through 20 years.......................... 68,716
Over 20 years........................................... 28,578
----------
Total by Maturity................................... 1,100,424
==========
BONDS AND SHORT-TERM INVESTMENTS BY MATURITY -- STATEMENT
VALUE:
- ------------------------------------------------------------
Class 1................................................. 579,042
Class 2................................................. 441,677
Class 3................................................. 66,571
Class 4................................................. 12,524
Class 5................................................. 0
Class 6................................................. 610
----------
Total by Class...................................... 1,100,424
==========
TOTAL BONDS AND SHORT-TERM INVESTMENTS -- PUBLICLY TRADED... 645,558
TOTAL BONDS AND SHORT-TERM INVESTMENTS -- PRIVATELY
PLACED.................................................... 454,866
PREFERRED STOCKS -- STATEMENT VALUE......................... 0
COMMON STOCKS -- MARKET VALUE............................... 981
SHORT-TERM INVESTMENTS -- BOOK VALUE........................ 25,700
FINANCIAL OPTIONS OWNED -- STATEMENT VALUE.................. 0
FINANCIAL OPTIONS WRITTEN AND IN FORCE -- STATEMENT VALUE... 0
FINANCIAL FUTURES CONTRACTS OPEN -- CURRENT PRICE........... 0
CASH ON HAND AND ON DEPOSIT................................. 20,256
LIFE INSURANCE IN FORCE:
- ------------------------------------------------------------
Industrial.............................................. 0
Ordinary................................................ 11,744,853
Credit Life............................................. 0
Group Life.............................................. 1,875,204
AMOUNT OF ACCIDENTAL DEATH INSURANCE IN FORCE UNDER ORDINARY
POLICIES.................................................. 158,466
LIFE INSURANCE POLICIES WITH DISABILITY PROVISIONS IN FORCE:
- ------------------------------------------------------------
Industrial.............................................. 0
Ordinary................................................ 3,671,469
Credit Life............................................. 0
Group Life.............................................. 199,912
SUPPLEMENTARY CONTRACTS IN FORCE:
- ------------------------------------------------------------
Ordinary -- Not Involving Life Contingencies
Amount on Deposit................................... 19,131
Income Payable...................................... 969
Ordinary -- Involving Life Contingencies
Income Payable...................................... 2,996
Group -- Not Involving Life Contingencies
Amount on Deposit................................... 28
Income Payable...................................... 0
Group -- Involving Life Contingencies
Income Payable...................................... 15
</TABLE>
F-62
<PAGE> 115
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA -- (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997
(AMOUNTS IN $ THOUSANDS)
<TABLE>
<S> <C>
ANNUITIES:
- ------------------------------------------------------------
Ordinary
- ------------------------------------------------------------
Immediate -- Amount of Income Payable............... 0
Deferred -- Fully Paid -- Account Balance........... 0
Deferred -- Not Fully Paid -- Account Balance....... 0
Group
- ------------------------------------------------------------
Amount of Income Payable............................ 0
Fully Paid -- Account Balance....................... 61,031
Not Fully Paid -- Account Balance................... 0
ACCIDENT AND HEALTH INSURANCE -- PREMIUMS IN FORCE:
- ------------------------------------------------------------
Ordinary................................................ 0
Group................................................... 0
Credit.................................................. 0
DEPOSIT FUNDS AND DIVIDEND ACCUMULATIONS:
- ------------------------------------------------------------
Deposit Funds -- Account Balance........................ 632,579
Dividend Accumulations -- Account Balance............... 0
CLAIM PAYMENTS 1997:
- ------------------------------------------------------------
Group Accident and Health -- Year Ended December 31,
1997................................................... 0
1997................................................ 0
1996................................................ 0
1995................................................ 0
1994................................................ 0
1993................................................ 0
Prior............................................... 0
CLAIM PAYMENTS 1997:
- ------------------------------------------------------------
Other Accident and Health -- Year Ended December 31,
1997
1997................................................ 0
1996................................................ 0
1995................................................ 0
1994................................................ 0
1993................................................ 0
Prior............................................... 0
Other coverages that use developmental methods to
calculate claims reserves -- Year Ended December 31,
1997
1997................................................ 0
1996................................................ 0
1995................................................ 0
1994................................................ 0
1993................................................ 0
Prior............................................... 0
</TABLE>
F-63
<PAGE> 116
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM STATEMENT OF ADMITTED ASSETS, LIABILITIES,
CAPITAL AND SURPLUS -- STATUTORY BASIS
JUNE 30, 1998
(IN THOUSANDS)
<TABLE>
<S> <C>
ASSETS
Cash and invested assets:
Cash and short-term investments........................ $ 25,974
Bonds.................................................. 1,095,489
Common stocks.......................................... 76
Mortgage loans......................................... 138,017
Real estate............................................ 9,536
Policy loans........................................... 48,674
Other invested assets.................................. 7,443
----------
Total cash and invested assets.................... 1,325,209
Investment income due and accrued........................... 23,042
Other assets................................................ 6
Separate account assets..................................... 4,211,882
----------
Total assets...................................... $5,560,139
==========
LIABILITIES, CAPITAL AND SURPLUS
Liabilities:
Life insurance and annuity reserves.................... $1,216,022
Deposits left with the Company......................... 23,292
Policy claims in process of settlement................. 7,268
Federal income taxes due or accrued.................... 26,802
Transfers from separate accounts....................... (140,762)
Other liabilities...................................... 48,211
Separate account liabilities........................... 4,211,882
Interest maintenance reserve........................... 4,579
Investment reserves.................................... 6,000
Asset valuation reserve................................ 15,041
----------
Total liabilities................................. 5,418,335
Capital and surplus:
Capital stock, $1.00 par value; authorized, 5,000,000
shares
Issued and outstanding, 2,500,000 shares............. 2,500
Additional paid-in capital............................. 133,500
Unassigned funds....................................... 5,804
----------
Total capital and surplus......................... 141,804
----------
Total liabilities, capital and surplus............ $5,560,139
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-64
<PAGE> 117
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM STATEMENTS OF OPERATIONS -- STATUTORY BASIS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JUNE 30,
------------------------
1998 1997
---- ----
(IN THOUSANDS)
<S> <C> <C>
Premiums, annuity considerations and fund deposits.......... $442,820 $395,251
Net investment income....................................... 48,222 49,739
Other income (net).......................................... (14) 118
-------- --------
491,028 445,108
-------- --------
Policyholder and contractholder benefits.................... 263,826 191,859
Change in policy and contract reserves...................... (25,861) (21,816)
Commissions................................................. 19,101 17,868
Operating expenses.......................................... 44,066 30,022
Transfer to separate accounts............................... 175,055 206,407
-------- --------
476,187 424,340
-------- --------
Net gain from operations before federal income tax.......... 14,841 20,768
Federal income taxes........................................ 7,587 10,390
-------- --------
Net gain from operations.................................... 7,254 10,378
Net realized capital losses............................ (78) (1,897)
-------- --------
Net income.................................................. $ 7,176 $ 8,481
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-65
<PAGE> 118
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM STATEMENTS OF CAPITAL AND SURPLUS -- STATUTORY BASIS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JUNE 30,
------------------------
1998 1997
---- ----
(IN THOUSANDS)
<S> <C> <C>
Capital and surplus, beginning of period.................... $133,151 $121,814
-------- --------
Net income.................................................. 7,176 8,482
Change in net unrealized capital gains...................... (124) (37)
Change in non-admitted assets............................... 371 142
Change in asset valuation reserve........................... 1,230 149
-------- --------
Net change in capital and surplus for the period............ 8,653 8,736
-------- --------
Capital and surplus, end of period.......................... $141,804 $130,550
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-66
<PAGE> 119
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM STATEMENTS OF CASH FLOWS -- STATUTORY BASIS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JUNE 30,
------------------------
1998 1997
---- ----
(IN THOUSANDS)
<S> <C> <C>
CASH FROM OPERATIONS:
Premiums, annuity considerations and fund deposits..... $442,792 $395,250
Investment income, net of investment expenses.......... 47,250 45,364
Other income........................................... (14) 141
Policy benefits paid................................... (264,718) (191,539)
Transfers to separate accounts......................... (186,874) (220,565)
Commissions, other expenses and taxes paid............. (61,795) (46,757)
Federal income taxes (excluding tax on capital
gains)................................................ 0 (3)
-------- --------
Net cash from operations..................... (23,359) (18,109)
-------- --------
CASH FROM INVESTMENTS:
Proceeds from investments sold, matured or repaid:
Bonds............................................. 89,715 66,670
Stocks............................................ 955 0
Mortgage loans.................................... 10,704 14,640
Real estate....................................... 14,017 11,451
Other invested assets............................. 357 1,356
Other............................................. (2) 3,318
-------- --------
Total investment proceeds.................... 115,746 97,435
-------- --------
Cost of investments acquired:
Bonds............................................. 109,190 88,935
Stocks............................................ 0 68
Mortgage loans.................................... 13,517 6,378
Real estate....................................... 355 777
Other invested assets............................. 800 6,517
Change in policy loans............................ 2,781 2,865
-------- --------
Total investments acquired................... 126,643 105,540
-------- --------
Net cash from investments.................... (10,897) (8,105)
-------- --------
CASH FROM FINANCING AND MISCELLANEOUS SOURCES:
Cash provided:
Other sources..................................... 14,274 (2,452)
-------- --------
Net cash from financing and miscellaneous
sources................................... 14,274 (2,452)
-------- --------
Net change in cash and short-term investments.......... (19,982) (28,666)
Cash and short-term investments, beginning of period........ 45,956 90,207
-------- --------
Cash and short-term investments, end of period.............. $ 25,974 $ 61,541
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-67
<PAGE> 120
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS
1. ORGANIZATION:
MONY Life Insurance Company of America (the "Company"), an Arizona
corporation, is a wholly owned subsidiary of The Mutual Life Insurance Company
of New York ("MONY"), a mutual life insurance company. The Company's primary
business is to provide interest-sensitive life insurance and asset accumulation
products to business owners, growing families, and pre-retirees. The Company's
insurance and financial products are marketed and distributed directly to
individuals primarily through MONY's career agency sales force. These products
are sold throughout the United States (except New York) and Puerto Rico.
On September 8, 1997, MONY announced that it is pursuing converting to a
stock life insurance company through demutualization. In connection with the
demutualization, MONY has prepared a Plan of Reorganization ("the Plan") which
is subject to approval by the Insurance Department of the State of New York as
well as adoption by MONY's Board of Trustees and approval by MONY's
policyholders.
In accordance with the Plan, subject to the approvals indicated above,
among other things, MONY will convert from a New York mutual life insurance
company to a New York stock life insurance company (the "Plan of
Demutualization") and become a wholly owned subsidiary of MONY Group, Inc. (the
"Holding Company"), a holding company organized in Delaware for the purpose of
becoming the parent holding company of MONY.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The unaudited interim financial statements of MONY Life Insurance Company
of America have been prepared on the basis of accounting practices and
procedures prescribed or permitted by the Insurance Department of the State of
Arizona, which are currently considered generally accepted accounting principles
for stock life insurance subsidiaries (domiciled in Arizona) of mutual life
insurance companies.
The accompanying unaudited interim financial statements, in the opinion of
the Company's management, reflect all normal recurring adjustments necessary for
a fair presentation of the interim financial position and results of operations.
Results of operations for the six months ended June 30, 1998 are not necessarily
indicative of results to be expected for the full year. These interim financial
statements should be read in conjunction with the Company's annual audited
financial statements.
3. ESTIMATED FAIR VALUE OF FIXED INCOME AND MORTGAGE INVESTMENTS:
The Company's fixed income securities are carried at amortized cost which
represents the principal amount adjusted by unamortized premium or discount. The
carrying value of securities which are not in good standing was reduced by
write-downs required by the National Association of Insurance Commissioners
(NAIC) of $0.4 million at June 30, 1998.
Fair values of fixed income securities are based upon quoted market prices,
where available. The fair values of fixed income securities not actively traded
and other non-publicly traded securities are estimated using values obtained
from independent pricing services or, in the case private placements, by
discounting expected future cash flows using a current market interest rate
commensurate with the credit, quality and term of the investments. Fixed income
securities, which include short-term investments and bonds, had an estimated
fair value of $1,136.1 million and an amortized cost of $1,109.0 million at June
30, 1998.
Mortgage loans are collateralized by commercial and agricultural real
estate and consist primarily of first mortgage liens on completed income
producing properties or agricultural properties. The fair value of mortgage
loans is estimated by discounting expected future cash flows, using current
interest rates for similar loans to borrowers with similar credit risk. Loans
with similar characteristics are aggregated for purposes of the calculations.
The resulting estimated fair values are not necessarily indicative of the values
that could be negotiated in an actual sale. The estimated fair value of the
Company's investment in mortgage loans at June 30, 1998 approximates its
carrying value of $138.0 million.
F-68
<PAGE> 121
APPENDIX A
DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
<TABLE>
<CAPTION>
APPLICABLE
ATTAINED AGE PERCENTAGE
- ------------ ----------
<S> <C>
40 and Under................................................ 250%
41.......................................................... 243
42.......................................................... 236
43.......................................................... 229
44.......................................................... 222
45.......................................................... 215
46.......................................................... 209
47.......................................................... 203
48.......................................................... 197
49.......................................................... 191
50.......................................................... 185
51.......................................................... 178
52.......................................................... 171
53.......................................................... 164
54.......................................................... 157
55.......................................................... 150
56.......................................................... 146
57.......................................................... 142
58.......................................................... 138
59.......................................................... 134
60.......................................................... 130
61.......................................................... 128
62.......................................................... 126
63.......................................................... 124
64.......................................................... 122
65.......................................................... 120
66.......................................................... 119
67.......................................................... 118
68.......................................................... 117
69.......................................................... 116
70.......................................................... 115
71.......................................................... 113
72.......................................................... 111
73.......................................................... 109
74.......................................................... 107
75-90....................................................... 105
91.......................................................... 104
92.......................................................... 103
93.......................................................... 102
94-100...................................................... 101
</TABLE>
A-1
<PAGE> 122
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 123
APPENDIX B
MONTHLY PER $1,000 SPECIFIED AMOUNT FACTORS
<TABLE>
<CAPTION>
ISSUE FACTOR
AGE PER $1,000
- ----- ----------
<S> <C>
0-17........................................................ $0.07
18-36....................................................... 0.08
37.......................................................... 0.09
38.......................................................... 0.09
39.......................................................... 0.10
40.......................................................... 0.10
41.......................................................... 0.10
42.......................................................... 0.11
43.......................................................... 0.11
44.......................................................... 0.12
45.......................................................... 0.12
46.......................................................... 0.12
47.......................................................... 0.13
48.......................................................... 0.13
49.......................................................... 0.14
50.......................................................... 0.14
51.......................................................... 0.14
52.......................................................... 0.15
53.......................................................... 0.15
54.......................................................... 0.16
55.......................................................... 0.16
56.......................................................... 0.16
57.......................................................... 0.17
58.......................................................... 0.17
59.......................................................... 0.18
60.......................................................... 0.18
61.......................................................... 0.18
62.......................................................... 0.19
63.......................................................... 0.19
64.......................................................... 0.20
65.......................................................... 0.20
66.......................................................... 0.20
67.......................................................... 0.21
68.......................................................... 0.21
69.......................................................... 0.22
70.......................................................... 0.22
71.......................................................... 0.22
72.......................................................... 0.23
73.......................................................... 0.23
74.......................................................... 0.24
75.......................................................... 0.24
76.......................................................... 0.24
77.......................................................... 0.25
78.......................................................... 0.25
79.......................................................... 0.26
80.......................................................... 0.26
81.......................................................... 0.26
82.......................................................... 0.27
83.......................................................... 0.27
84.......................................................... 0.28
85.......................................................... 0.28
</TABLE>
B-1
<PAGE> 124
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 125
APPENDIX C
GUARANTEED DEATH BENEFIT RIDER
MONTHLY GUARANTEE PREMIUM FOR GUARANTEED DEATH
BENEFIT RIDER WITH TEN YEAR/AGE 70 GUARANTEE PERIOD
<TABLE>
<CAPTION>
MONTHLY GUARANTEE
PREMIUM
-----------------
<S> <C>
Specified Amount = $200,000
Male age 45 Preferred Nonsmoker Death Benefit Option 1...... $229.17
Female age 45 Preferred Nonsmoker Death Benefit Option 1.... $174.00
Male age 45 Standard Smoker Death Benefit Option 1.......... $379.83
Male age 45 Preferred Nonsmoker Death Benefit Option 2...... $229.17
Male age 35 Preferred Nonsmoker Death Benefit Option 1...... $155.83
Male age 55 Preferred Nonsmoker Death Benefit Option 1...... $370.83
</TABLE>
C-1
<PAGE> 126
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 127
APPENDIX D
ILLUSTRATIONS OF DEATH PROCEEDS, FUND VALUES AND
CASH VALUES, AND PREMIUM OUTLAYS
The following tables illustrate how the key financial elements of the
Policy work, specifically, how the death benefits, Fund Values and Cash Values
could vary over an extended period of time. In addition, each table compares
these values with premiums paid accumulated with interest.
The Policies illustrated include the following:
<TABLE>
<CAPTION>
BENEFIT SPECIFIED SEE
SEX AGE SMOKER OPTION AMOUNT PAGE
--- --- ------ ------- --------- ----
<S> <C> <C> <C> <C> <C>
Male 45 Preferred Non-smoker 1 $200,000 D- 5
Female 45 Preferred Non-smoker 1 $200,000 D-15
Male 45 Standard Smoker 1 $200,000 D-25
Male 45 Preferred Non-smoker 2 $200,000 D-34
Male 35 Preferred Non-smoker 1 $200,000 D-44
Male 55 Preferred Non-smoker 1 $200,000 D-54
</TABLE>
The tables show how Death Proceeds, Fund Values and Cash Values of a
hypothetical Policy could vary over an extended period of time if the
Subaccounts of the Variable Account had constant hypothetical gross annual
investment returns of 0%, 6% or 12% over the periods indicated in each table.
The values will differ from those shown in the tables if the annual investment
returns are not absolutely constant. That is, the death benefits, Fund Values
and Cash Values will be different if the returns averaged 0%, 6% or 12% over a
period of years but went above or below those figures in individual Policy
years. These illustrations assume that no Policy Loan has been taken. The
amounts shown would differ if unisex rates were used.
The amounts shown for Death Proceeds, Fund Values and Cash Values reflect
the fact the net investment return on the Policy is lower than the gross
investment return on the Subaccounts of the Variable Account. This results from
the charges levied against the Subaccounts of the Variable Account (i.e., the
mortality and expense risk charge) as well as the premium loads, administrative
charges and Surrender Charges. The difference between the Fund Value and the
Cash Value in the first 14 years is the Surrender Charge.
The tables illustrate cost of insurance and expense charges at both current
rates (which are described under Cost of Insurance, page ) and at the maximum
rates guaranteed in the Policies. The amounts shown at the end of each Policy
year reflect a daily charge against the Funds as well as those assessed against
the Subaccounts. These charges include the charge against the Subaccounts for
mortality and expense risks and the effect on each Subaccount's investment
experience of the charge to Portfolio assets for investment management and
direct expenses. The mortality and expense risk fee is .35% annually on a
guaranteed basis.
The tables also reflect a deduction for a daily investment advisory fee and
for other expenses of the Portfolio at a rate equivalent to an annual rate of
0.75% of the aggregate average daily net assets of the Portfolio. This
hypothetical rate is representative of the average maximum investment advisory
fee and other expenses of the Portfolios applicable to the Subaccounts of the
Variable Account. Actual fees and other expenses vary by Portfolio and may be
subject to agreements by the sponsor to waive or otherwise reimburse each
Portfolio for operating expenses which exceed certain limits. There can be no
assurance that the expense reimbursement arrangements will continue in the
future, and any unreimbursed expenses would be reflected in the values included
on the tables.
The effect of these investment management, direct expenses and mortality
and expense risk charges on a 0% gross rate of return would result in a net rate
of return of -.75%, on 6% it would be 5.25%, and on 12% it would be 11.25%.
The tables assume the deduction of charges including administrative and
sales charges. For each age, there are tables for death benefit Options 1 and 2
and each option is illustrated using current and guaranteed
D-1
<PAGE> 128
policy cost factors. The tables reflect the fact that the Company does not
currently make any charge against the Variable Account for state or federal
taxes. If such a charge is made in the future, it will take a higher rate of
return to produce after-tax returns of 0%, 6% or 12%.
The following are descriptions of Table columns and key terms:
Age: Insured's attained age at the end of the policy year
Premium Outlay: The annualized out-of-pocket premium payments for each
policy year including scheduled and any anticipated unscheduled premium
payments. Premium payments are assumed to be paid at the beginning of each
premium paying period. Amounts of surrenders and loans plus loan interest if
any, are shown on the pages captioned "Premiums, Surrenders and Loans".
Premium Accumulated at 5%: is equal to the premiums compounded at an
annual effective rate of 5% and is shown at the end of the year.
GUARANTEED CHARGES AT 0.00%, 6.00% OR 12.00%
Cash Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds, less
all charges, fees and deductions at their guaranteed maximum. The cash value
also takes into account any loans illustrated, as well as, the applicable
surrender charges that would apply if the policy were surrendered prior to the
end of the first fourteen years.
Fund Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds, less
all charges, fees and deductions at their guaranteed maximum. The Fund Value
DOES NOT take into account the applicable surrender charges that would apply if
the policy were surrendered prior to the end of the first fourteen years.
Death Proceeds: The benefit payable if the insured's death occurs at the
end of the policy year, assuming a 0.00%, 6.00% or 12,00% hypothetical rate of
return on the Funds, less all charges, fees and deductions at their guaranteed
maximums.
CURRENT CHARGES AT 0.00%, 6.00% OR 12.00%
Cash Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds, less
all charges, fees and deductions at the current, non-guaranteed rates. The cash
value also takes into account any loans illustrated, as well as, the applicable
surrender charges that would apply if the policy were surrendered prior to the
end of the first fourteen years.
Fund Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds, less
all charges, fees and deductions at the current, non-guaranteed rates. The Fund
Value DOES NOT take into account the applicable surrender charges that would
apply if the policy were surrendered prior to the end of the first fourteen
years.
Death Proceeds: The benefit payable if the insured's death occurs at the
end of the policy year assuming a 0.00%, 6.00% or 12.00% hypothetical rate of
return on the Funds, less all charges, fees and deductions at the current,
non-guaranteed rates.
The Company will furnish, upon request, a comparable illustration based on
the age and sex of the proposed Insured, standard Premium Class assumptions and
an initial Specified Amount and Scheduled Premium Payments of the applicant's
choice. If a Policy is purchased, an individualized illustration will be
delivered reflecting the Scheduled Premium Payment chosen and the Insured's
actual risk class. After issuance, the Company will provide upon request an
illustration of future Policy benefits based on both guaranteed and current cost
factor assumptions and actual Account Value.
The following is the page of supplemental footnotes to each of the flexible
premium variable life to age 100 numeric summary and standard ledger statements
which follow and which begin on pages B-4.
D-2
<PAGE> 129
STANDARD LEDGER STATEMENT -- SUPPLEMENTAL FOOTNOTE PAGE
MONY CUSTOM EQUITYMASTER
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
MONY LIFE INSURANCE COMPANY OF AMERICA
ADDITIONAL INFORMATION
This policy has been tested for the possibility of classification as a
modified endowment. This test is not a guarantee that a policy will not be
classified as a modified endowment.
This illustration has been checked against federal tax laws relating to
their definition of life insurance and is in compliance based on proposed
premium payments and coverages. Any decrease in specified amount and/or a change
in death benefit option 2 to death benefit option 1 and/or surrenders occurring
in the first 15 years may cause a taxable event. In addition, if the policy is
defined as a modified endowment policy, a loan, surrender, or assignment or
pledge (unless such assignment or pledge is for burial expenses and the maximum
death benefit is not in excess of $25,000) may be considered a taxable
distribution and a ten percent penalty may be added to any tax on the
distribution. Please consult your tax advisor for advice.
GUIDELINE PREMIUMS
<TABLE>
<CAPTION>
AGE, GENDER, UNDERWRITING CLASSIFICATION INITIAL GUIDELINE INITIAL GUIDELINE
AND DEATH BENEFIT OPTION SINGLE PREMIUM ANNUAL PREMIUM
---------------------------------------- ----------------- -----------------
<S> <C> <C>
Age 45, Male, Non-Smoker Preferred, Option 1 $47,689.19 $ 3,998.48
Age 45, Female, Non-Smoker Preferred, Option 1 $41,065.27 $ 3,374.75
Age 45, Male, Smoker Standard, Option 1 $60,522.27 $ 5,271.13
Age 45, Male, Non-Smoker, Preferred, Option 2 $47,689.19 $12,671.23
Age 35, Male, Non-Smoker, Preferred, Option 1 $30,537.53 $ 2,489.50
Age 55, Male, Non-Smoker, Preferred, Option 1 $72,459.17 $ 6,673.55
</TABLE>
Values shown on this illustration are based on a policyowner tax bracket of
0%.
Premiums are assumed to be paid at the beginning of the payment period.
Policy values and ages are shown as of the end of the policy year and reflect
the effect of all loans and surrenders. The death proceeds, fund value and value
upon surrender will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's cash value is net of any applicable surrender charge.
Premiums less the following deductions are added to the fund value:
1. A premium tax charge of 2.25% of gross premiums in all policy years.
2. A sales charge on the gross premiums. The sales charges equal 4% of
each premium dollar paid for amounts less than $500,000, and 3% for
total amounts of $500,000 or more.
3. A DAC tax charge of 1.50% of gross premiums in all policy years.
Those columns assuming guaranteed charges use the current monthly mortality
charges, current monthly administrative charges, current charges for mortality
and expense risks, current charges for rider benefits, if any, and current
premium sales charge ("current charges" for the first year) as well as the
assumed hypothetical gross annual investment return indicated. Thereafter these
columns use guaranteed monthly mortality charges, guaranteed monthly
administrative charges, guaranteed charges for mortality and expense risks,
guaranteed charges for rider benefits if any, guaranteed maximum premium sales
charge, and the assumed hypothetical gross annual investment return indicated.
Those columns assuming current charges are based upon "current charges" and the
assumed hypothetical gross annual investment return indicated.
The current charges declared by MONY Life Insurance Company of America are
guaranteed for the first policy year and apply to policies issued as of the
illustration preparation date and could change between the preparation date and
the date the policy is issued. After the first policy year, current charges are
not guaranteed, and may be changed at the discretion of MONY Life Insurance
Company of America.
D-3
<PAGE> 130
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,813 200,000 0 1,813 200,000 0 1,813 200,000
5 2,650 4,585 6,705 200,000 4,585 6,705 200,000 6,251 8,371 200,000
10 2,650 9,413 10,738 200,000 9,413 10,738 200,000 14,628 15,953 200,000
20 2,650 6,766 6,766 200,000 6,766 6,766 200,000 23,225 23,225 200,000
@ Age 70 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 18,754 18,754 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 32 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------------ -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------------ -------------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-4
<PAGE> 131
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,813 200,000 0 1,813 200,000 0 1,813 200,000
2 47 2,650 5,704 1,022 3,142 200,000 1,022 3,142 200,000 1,419 3,539 200,000
3 48 2,650 8,772 2,272 4,392 200,000 2,272 4,392 200,000 3,059 5,179 200,000
4 49 2,650 11,993 3,467 5,587 200,000 3,467 5,587 200,000 4,662 6,782 200,000
5 50 2,650 15,375 4,585 6,705 200,000 4,585 6,705 200,000 6,251 8,371 200,000
6 51 2,650 18,926 5,605 7,725 200,000 5,605 7,725 200,000 7,825 9,945 200,000
7 52 2,650 22,655 6,528 8,648 200,000 6,528 8,648 200,000 9,386 11,506 200,000
8 53 2,650 26,570 7,621 9,476 200,000 7,621 9,476 200,000 11,176 13,031 200,000
9 54 2,650 30,681 8,574 10,164 200,000 8,574 10,164 200,000 12,930 14,520 200,000
10 55 2,650 34,998 9,413 10,738 200,000 9,413 10,738 200,000 14,628 15,953 200,000
11 56 2,650 39,530 10,093 11,153 200,000 10,093 11,153 200,000 16,249 17,309 200,000
12 57 2,650 44,289 10,615 11,410 200,000 10,615 11,410 200,000 17,773 18,568 200,000
13 58 2,650 49,286 10,980 11,510 200,000 10,980 11,510 200,000 19,181 19,711 200,000
14 59 2,650 54,533 11,144 11,409 200,000 11,144 11,409 200,000 20,432 20,697 200,000
15 60 2,650 60,042 11,107 11,107 200,000 11,107 11,107 200,000 21,487 21,487 200,000
16 61 2,650 65,827 10,846 10,846 200,000 10,846 10,846 200,000 22,329 22,329 200,000
17 62 2,650 71,901 10,336 10,336 200,000 10,336 10,336 200,000 22,915 22,915 200,000
18 63 2,650 78,278 9,509 9,509 200,000 9,509 9,509 200,000 23,228 23,228 200,000
19 64 2,650 84,975 8,336 8,336 200,000 8,336 8,336 200,000 23,331 23,331 200,000
20 65 2,650 92,006 6,766 6,766 200,000 6,766 6,766 200,000 23,225 23,225 200,000
21 66 2,650 99,389 4,742 4,742 200,000 4,742 4,742 200,000 22,888 22,888 200,000
22 67 2,650 107,141 2,226 2,226 200,000 2,226 2,226 200,000 22,276 22,276 200,000
23 68 2,650 115,280 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 21,386 21,386 200,000
24 69 2,650 123,827 20,214 20,214 200,000
25 70 2,650 132,801 18,754 18,754 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 1.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-5
<PAGE> 132
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 16,956 16,956 200,000
27 72 2,650 152,117 14,852 14,852 200,000
28 73 2,650 162,505 12,344 12,344 200,000
29 74 2,650 173,413 9,326 9,326 200,000
30 75 2,650 184,866 5,703 5,703 200,000
31 76 2,650 196,892 1,396 1,396 200,000
32 77 2,650 209,519 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-6
<PAGE> 133
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,813 200,000 0 1,940 200,000 0 1,940 200,000
5 2,650 4,585 6,705 200,000 6,162 8,282 200,000 8,027 10,147 200,000
10 2,650 9,413 10,738 200,000 14,857 16,182 200,000 21,335 22,660 200,000
20 2,650 6,766 6,766 200,000 26,375 26,375 200,000 51,993 51,993 200,000
@ Age 70 2,650 LAPSED LAPSED LAPSED 20,215 20,215 200,000 66,449 66,449 200,000
@ Age 85 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 83,915 83,915 200,000
@ Age 90 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 27,677 27,677 200,000
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 29 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 46 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------------ -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------------ -------------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-7
<PAGE> 134
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,813 200,000 0 1,940 200,000 0 1,940 200,000
2 47 2,650 5,704 1,022 3,142 200,000 1,376 3,496 200,000 1,785 3,905 200,000
3 48 2,650 8,772 2,272 4,392 200,000 2,942 5,062 200,000 3,778 5,898 200,000
4 49 2,650 11,993 3,467 5,587 200,000 4,544 6,664 200,000 5,850 7,970 200,000
5 50 2,650 15,375 4,585 6,705 200,000 6,162 8,282 200,000 8,027 10,147 200,000
6 51 2,650 18,926 5,605 7,725 200,000 7,772 9,892 200,000 10,315 12,435 200,000
7 52 2,650 22,655 6,528 8,648 200,000 9,378 11,498 200,000 12,720 14,840 200,000
8 53 2,650 26,570 7,621 9,476 200,000 11,245 13,100 200,000 15,491 17,346 200,000
9 54 2,650 30,681 8,574 10,164 200,000 13,064 14,654 200,000 18,367 19,957 200,000
10 55 2,650 34,998 9,413 10,738 200,000 14,857 16,182 200,000 21,335 22,660 200,000
11 56 2,650 39,530 10,093 11,153 200,000 16,580 17,640 200,000 24,377 25,437 200,000
12 57 2,650 44,289 10,615 11,410 200,000 18,232 19,027 200,000 27,480 28,275 200,000
13 58 2,650 49,286 10,980 11,510 200,000 19,810 20,340 200,000 30,627 31,157 200,000
14 59 2,650 54,533 11,144 11,409 200,000 21,269 21,534 200,000 33,785 34,050 200,000
15 60 2,650 60,042 11,107 11,107 200,000 22,604 22,604 200,000 36,918 36,918 200,000
16 61 2,650 65,827 10,846 10,846 200,000 23,800 23,800 200,000 40,023 40,023 200,000
17 62 2,650 71,901 10,336 10,336 200,000 24,834 24,834 200,000 43,073 43,073 200,000
18 63 2,650 78,278 9,509 9,509 200,000 25,634 25,634 200,000 46,052 46,052 200,000
19 64 2,650 84,975 8,336 8,336 200,000 26,168 26,168 200,000 49,023 49,023 200,000
20 65 2,650 92,006 6,766 6,766 200,000 26,375 26,375 200,000 51,993 51,993 200,000
21 66 2,650 99,389 4,742 4,742 200,000 26,192 26,192 200,000 54,950 54,950 200,000
22 67 2,650 107,141 2,226 2,226 200,000 25,567 25,567 200,000 57,868 57,868 200,000
23 68 2,650 115,280 LAPSED LAPSED LAPSED 24,421 24,421 200,000 60,752 60,752 200,000
24 69 2,650 123,827 22,686 22,686 200,000 63,610 63,610 200,000
25 70 2,650 132,801 20,215 20,215 200,000 66,449 66,449 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-8
<PAGE> 135
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 16,864 16,864 200,000 69,245 69,245 200,000
27 72 2,650 152,117 12,435 12,435 200,000 72,037 72,037 200,000
28 73 2,650 162,505 6,651 6,651 200,000 74,771 74,771 200,000
29 74 2,650 173,413 LAPSED LAPSED LAPSED 77,394 77,394 200,000
30 75 2,650 184,866 79,866 79,866 200,000
31 76 2,650 196,892 82,161 82,161 200,000
32 77 2,650 209,519 84,234 84,234 200,000
33 78 2,650 222,777 86,025 86,025 200,000
34 79 2,650 236,699 87,495 87,495 200,000
35 80 2,650 251,316 88,569 88,569 200,000
36 81 2,650 266,665 89,177 89,177 200,000
37 82 2,650 282,780 89,218 89,218 200,000
38 83 2,650 299,702 88,602 88,602 200,000
39 84 2,650 317,469 86,933 86,933 200,000
40 85 2,650 336,125 83,915 83,915 200,000
41 86 2,650 355,714 79,162 79,162 200,000
42 87 2,650 376,282 72,114 72,114 200,000
43 88 2,650 397,879 61,883 61,883 200,000
44 89 2,650 420,555 47,569 47,569 200,000
45 90 2,650 444,366 27,677 27,677 200,000
46 91 2,650 469,366 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-9
<PAGE> 136
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- --------------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,813 200,000 0 2,067 200,000 0 2,067 200,000
5 2,650 4,585 6,705 200,000 8,035 10,155 200,000 10,118 12,238 200,000
10 2,650 9,413 10,738 200,000 22,931 24,256 200,000 31,033 32,358 200,000
20 2,650 6,766 6,766 200,000 76,011 76,011 200,000 117,652 117,652 200,000
@ Age 70 2,650 LAPSED LAPSED LAPSED 125,872 125,872 200,000 208,225 208,225 241,541
@ Age 85 2,650 LAPSED LAPSED LAPSED 620,636 620,636 651,668 1,028,180 1,028,180 1,079,589
@ Age 90 2,650 LAPSED LAPSED LAPSED 1,007,251 1,007,251 1,057,613 1,689,957 1,689,957 1,774,455
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------------ -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------------ -------------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-10
<PAGE> 137
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES
------------------------------------------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,813 200,000 0 2,067 200,000
2 47 2,650 5,704 1,022 3,142 200,000 1,746 3,866 200,000
3 48 2,650 8,772 2,272 4,392 200,000 3,674 5,794 200,000
4 49 2,650 11,993 3,467 5,587 200,000 5,771 7,891 200,000
5 50 2,650 15,375 4,585 6,705 200,000 8,035 10,155 200,000
6 51 2,650 18,926 5,605 7,725 200,000 10,461 12,581 200,000
7 52 2,650 22,655 6,528 8,648 200,000 13,070 15,190 200,000
8 53 2,650 26,570 7,621 9,476 200,000 16,152 18,007 200,000
9 54 2,650 30,681 8,574 10,164 200,000 19,423 21,013 200,000
10 55 2,650 34,998 9,413 10,738 200,000 22,931 24,256 200,000
11 56 2,650 39,530 10,093 11,153 200,000 26,665 27,725 200,000
12 57 2,650 44,289 10,615 11,410 200,000 30,657 31,452 200,000
13 58 2,650 49,286 10,980 11,510 200,000 34,945 35,475 200,000
14 59 2,650 54,533 11,144 11,409 200,000 39,531 39,796 200,000
15 60 2,650 60,042 11,107 11,107 200,000 44,459 44,459 200,000
16 61 2,650 65,827 10,846 10,846 200,000 49,787 49,787 200,000
17 62 2,650 71,901 10,336 10,336 200,000 55,568 55,568 200,000
18 63 2,650 78,278 9,509 9,509 200,000 61,822 61,822 200,000
19 64 2,650 84,975 8,336 8,336 200,000 68,616 68,616 200,000
20 65 2,650 92,006 6,766 6,766 200,000 76,011 76,011 200,000
21 66 2,650 99,389 4,742 4,742 200,000 84,090 84,090 200,000
22 67 2,650 107,141 2,226 2,226 200,000 92,967 92,967 200,000
23 68 2,650 115,280 LAPSED LAPSED LAPSED 102,774 102,774 200,000
24 69 2,650 123,827 113,682 113,682 200,000
25 70 2,650 132,801 125,872 125,872 200,000
<CAPTION>
CURRENT CHARGES
------------------------------
END 12.00% (11.25% NET)
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
1 0 2,067 200,000
2 2,167 4,287 200,000
3 4,559 6,679 200,000
4 7,192 9,312 200,000
5 10,118 12,238 200,000
6 13,368 15,488 200,000
7 16,979 19,099 200,000
8 21,233 23,088 200,000
9 25,909 27,499 200,000
10 31,033 32,358 200,000
11 36,637 37,697 200,000
12 42,758 43,555 200,000
13 49,441 49,971 200,000
14 56,722 56,987 200,000
15 64,645 64,645 200,000
16 73,311 73,311 200,000
17 82,805 82,805 200,000
18 93,239 93,239 200,000
19 104,799 104,799 200,000
20 117,652 117,652 200,000
21 131,979 131,979 200,000
22 147,989 147,989 200,000
23 165,946 165,946 200,000
24 186,031 186,031 217,657
25 208,225 208,225 241,541
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-11
<PAGE> 138
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 139,593 139,593 200,000 232,737 232,737 267,648
27 72 2,650 152,117 155,153 155,153 200,000 259,888 259,888 293,673
28 73 2,650 162,505 172,947 172,947 200,000 289,972 289,972 321,868
29 74 2,650 173,413 193,381 193,381 210,786 323,328 323,328 352,427
30 75 2,650 184,866 216,209 216,209 231,344 360,352 360,352 385,576
31 76 2,650 196,892 241,625 241,625 253,706 401,503 401,503 421,578
32 77 2,650 209,519 269,631 269,631 283,112 446,981 446,981 469,330
33 78 2,650 222,777 300,478 300,478 315,501 497,219 497,219 522,080
34 79 2,650 236,699 334,433 334,433 351,155 552,700 552,700 580,335
35 80 2,650 251,316 371,783 371,783 390,372 613,944 613,944 644,641
36 81 2,650 266,665 412,835 412,835 433,476 681,524 681,524 715,600
37 82 2,650 282,780 457,905 457,905 480,800 756,059 756,059 793,862
38 83 2,650 299,702 507,326 507,326 532,693 838,234 838,234 880,145
39 84 2,650 317,469 561,446 561,446 589,519 928,693 928,693 975,128
40 85 2,650 336,125 620,636 620,636 651,668 1,028,180 1,028,180 1,079,589
41 86 2,650 355,714 685,287 685,287 719,552 1,137,487 1,137,487 1,194,361
42 87 2,650 376,282 755,817 755,817 793,608 1,257,438 1,257,438 1,320,310
43 88 2,650 397,879 832,675 832,675 874,309 1,388,844 1,388,844 1,458,286
44 89 2,650 420,555 916,326 916,326 962,142 1,532,696 1,532,696 1,609,331
45 90 2,650 444,366 1,007,251 1,007,251 1,057,613 1,689,957 1,689,957 1,774,455
46 91 2,650 469,366 1,105,926 1,105,926 1,161,222 1,861,454 1,861,454 1,954,527
47 92 2,650 495,617 1,216,215 1,216,215 1,264,863 2,052,200 2,052,200 2,134,288
48 93 2,650 523,181 1,340,156 1,340,156 1,380,361 2,265,302 2,265,302 2,333,261
49 94 2,650 552,122 1,480,260 1,480,260 1,509,866 2,504,705 2,504,705 2,554,799
50 95 2,650 582,511 1,639,788 1,639,788 1,656,186 2,775,067 2,775,067 2,802,817
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-12
<PAGE> 139
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 96 2,650 614,419 1,815,479 1,815,479 1,833,633 3,074,052 3,074,052 3,104,793
52 97 2,650 647,922 2,008,223 2,008,223 2,028,305 3,404,680 3,404,680 3,438,727
53 98 2,650 683,101 2,217,716 2,217,716 2,239,893 3,770,117 3,770,117 3,807,818
54 99 2,650 720,038 2,445,773 2,445,773 2,470,230 4,173,909 4,173,909 4,215,648
55 100 2,650 758,823 2,697,011 2,697,011 2,723,981 4,619,706 4,619,706 4,665,903
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-13
<PAGE> 140
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,050 0 1,336 200,000 0 1,336 200,000 0 1,336 200,000
5 2,050 2,839 4,479 200,000 2,839 4,479 200,000 4,632 6,272 200,000
10 2,050 5,905 6,930 200,000 5,905 6,930 200,000 10,755 11,780 200,000
20 2,050 5,669 5,669 200,000 5,669 5,669 200,000 16,392 16,392 200,000
@ Age 70 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 14,469 14,469 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 33 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------------ -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------------ -------------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-14
<PAGE> 141
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,050 2,153 0 1,336 200,000 0 1,336 200,000 0 1,336 200,000
2 47 2,050 4,413 549 2,189 200,000 549 2,189 200,000 971 2,611 200,000
3 48 2,050 6,786 1,373 3,013 200,000 1,373 3,013 200,000 2,211 3,851 200,000
4 49 2,050 9,278 2,144 3,784 200,000 2,144 3,784 200,000 3,439 5,079 200,000
5 50 2,050 11,894 2,839 4,479 200,000 2,839 4,479 200,000 4,632 6,272 200,000
6 51 2,050 14,641 3,484 5,124 200,000 3,484 5,124 200,000 5,814 7,454 200,000
7 52 2,050 17,526 4,055 5,695 200,000 4,055 5,695 200,000 6,962 8,602 200,000
8 53 2,050 20,554 4,758 6,193 200,000 4,758 6,193 200,000 8,281 9,716 200,000
9 54 2,050 23,735 5,367 6,597 200,000 5,367 6,597 200,000 9,545 10,775 200,000
10 55 2,050 27,074 5,905 6,930 200,000 5,905 6,930 200,000 10,755 11,780 200,000
11 56 2,050 30,580 6,349 7,169 200,000 6,349 7,169 200,000 11,933 12,753 200,000
12 57 2,050 34,262 6,701 7,316 200,000 6,701 7,316 200,000 13,059 13,674 200,000
13 58 2,050 38,127 6,962 7,372 200,000 6,962 7,372 200,000 14,111 14,521 200,000
14 59 2,050 42,186 7,130 7,335 200,000 7,130 7,335 200,000 14,981 15,186 200,000
15 60 2,050 46,448 7,207 7,207 200,000 7,207 7,207 200,000 15,672 15,672 200,000
16 61 2,050 50,923 7,253 7,253 200,000 7,253 7,253 200,000 16,223 16,223 200,000
17 62 2,050 55,621 7,161 7,161 200,000 7,161 7,161 200,000 16,533 16,533 200,000
18 63 2,050 60,555 6,886 6,886 200,000 6,886 6,886 200,000 16,558 16,558 200,000
19 64 2,050 65,735 6,405 6,405 200,000 6,405 6,405 200,000 16,518 16,518 200,000
20 65 2,050 71,174 5,669 5,669 200,000 5,669 5,669 200,000 16,392 16,392 200,000
21 66 2,050 76,886 4,655 4,655 200,000 4,655 4,655 200,000 16,178 16,178 200,000
22 67 2,050 82,882 3,357 3,357 200,000 3,357 3,357 200,000 15,898 15,898 200,000
23 68 2,050 89,179 1,770 1,770 200,000 1,770 1,770 200,000 15,532 15,532 200,000
24 69 2,050 95,791 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 15,056 15,056 200,000
25 70 2,050 102,733 14,469 14,469 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-15
<PAGE> 142
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,050 110,022 13,705 13,705 200,000
27 72 2,050 117,675 12,784 12,784 200,000
28 73 2,050 125,712 11,704 11,704 200,000
29 74 2,050 134,150 10,305 10,305 200,000
30 75 2,050 143,010 8,535 8,535 200,000
31 76 2,050 152,313 6,317 6,317 200,000
32 77 2,050 162,081 3,401 3,401 200,000
33 78 2,050 172,337 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-16
<PAGE> 143
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,050 0 1,336 200,000 0 1,432 200,000 0 1,432 200,000
5 2,050 2,839 4,479 200,000 3,955 5,595 200,000 5,964 7,604 200,000
10 2,050 5,905 6,930 200,000 9,611 10,636 200,000 15,764 16,789 200,000
20 2,050 5,669 5,669 200,000 18,519 18,519 200,000 37,338 37,338 200,000
@ Age 70 2,050 LAPSED LAPSED LAPSED 16,541 16,541 200,000 48,218 48,218 200,000
@ Age 85 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 55,511 55,511 200,000
@ Age 90 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 31 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 45 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------------ -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------------ -------------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-17
<PAGE> 144
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,050 2,153 0 1,336 200,000 0 1,432 200,000 0 1,432 200,000
2 47 2,050 4,413 549 2,189 200,000 811 2,451 200,000 1,246 2,886 200,000
3 48 2,050 6,786 1,373 3,013 200,000 1,859 3,499 200,000 2,750 4,390 200,000
4 49 2,050 9,278 2,144 3,784 200,000 2,915 4,555 200,000 4,329 5,969 200,000
5 50 2,050 11,894 2,839 4,479 200,000 3,955 5,595 200,000 5,964 7,604 200,000
6 51 2,050 14,641 3,484 5,124 200,000 5,002 6,642 200,000 7,681 9,321 200,000
7 52 2,050 17,526 4,055 5,695 200,000 6,035 7,675 200,000 9,461 11,101 200,000
8 53 2,050 20,554 4,758 6,193 200,000 7,258 8,693 200,000 11,513 12,948 200,000
9 54 2,050 23,735 5,367 6,597 200,000 8,442 9,672 200,000 13,613 14,843 200,000
10 55 2,050 27,074 5,905 6,930 200,000 9,611 10,636 200,000 15,764 16,789 200,000
11 56 2,050 30,580 6,349 7,169 200,000 10,739 11,559 200,000 17,993 18,813 200,000
12 57 2,050 34,262 6,701 7,316 200,000 11,828 12,443 200,000 20,281 20,896 200,000
13 58 2,050 38,127 6,962 7,372 200,000 12,874 13,284 200,000 22,612 23,022 200,000
14 59 2,050 42,186 7,130 7,335 200,000 13,876 14,081 200,000 24,880 25,085 200,000
15 60 2,050 46,448 7,207 7,207 200,000 14,833 14,833 200,000 27,088 27,088 200,000
16 61 2,050 50,923 7,253 7,253 200,000 15,812 15,812 200,000 29,284 29,284 200,000
17 62 2,050 55,621 7,161 7,161 200,000 16,712 16,712 200,000 31,374 31,374 200,000
18 63 2,050 60,555 6,886 6,886 200,000 17,487 17,487 200,000 33,315 33,315 200,000
19 64 2,050 65,735 6,405 6,405 200,000 18,107 18,107 200,000 35,308 35,308 200,000
20 65 2,050 71,174 5,669 5,669 200,000 18,519 18,519 200,000 37,338 37,338 200,000
21 66 2,050 76,886 4,655 4,655 200,000 18,691 18,691 200,000 39,408 39,408 200,000
22 67 2,050 82,882 3,357 3,357 200,000 18,606 18,606 200,000 41,543 41,543 200,000
23 68 2,050 89,179 1,770 1,770 200,000 18,248 18,248 200,000 43,729 43,729 200,000
24 69 2,050 95,791 LAPSED LAPSED LAPSED 17,575 17,575 200,000 45,953 45,953 200,000
25 70 2,050 102,733 16,541 16,541 200,000 48,218 48,218 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-18
<PAGE> 145
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,050 110,022 15,049 15,049 200,000 50,476 50,476 200,000
27 72 2,050 117,675 12,990 12,990 200,000 52,748 52,748 200,000
28 73 2,050 125,712 10,195 10,195 200,000 55,039 55,039 200,000
29 74 2,050 134,150 6,447 6,447 200,000 57,232 57,232 200,000
30 75 2,050 143,010 1,565 1,565 200,000 59,291 59,291 200,000
31 76 2,050 152,313 LAPSED LAPSED LAPSED 61,166 61,166 200,000
32 77 2,050 162,081 62,682 62,682 200,000
33 78 2,050 172,337 63,823 63,823 200,000
34 79 2,050 183,107 64,568 64,568 200,000
35 80 2,050 194,414 64,890 64,890 200,000
36 81 2,050 206,288 64,756 64,756 200,000
37 82 2,050 218,755 63,956 63,956 200,000
38 83 2,050 231,845 62,335 62,335 200,000
39 84 2,050 245,590 59,635 59,635 200,000
40 85 2,050 260,022 55,511 55,511 200,000
41 86 2,050 275,175 49,694 49,694 200,000
42 87 2,050 291,086 41,097 41,097 200,000
43 88 2,050 307,793 29,104 29,104 200,000
44 89 2,050 325,335 12,888 12,888 200,000
45 90 2,050 343,755 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-19
<PAGE> 146
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- ---------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,050 0 1,336 200,000 0 1,528 200,000 0 1,528 200,000
5 2,050 2,839 4,479 200,000 5,286 6,926 200,000 7,531 9,171 200,000
10 2,050 5,905 6,930 200,000 15,152 16,177 200,000 23,012 24,037 200,000
20 2,050 5,669 5,669 200,000 50,980 50,980 200,000 85,355 85,355 200,000
@ Age 70 2,050 LAPSED LAPSED LAPSED 83,098 83,098 200,000 149,335 149,335 200,000
@ Age 85 2,050 LAPSED LAPSED LAPSED 388,229 388,229 407,640 750,256 750,256 787,769
@ Age 90 2,050 LAPSED LAPSED LAPSED 638,192 638,192 670,102 1,241,404 1,241,404 1,303,474
</TABLE>
* Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------------ -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------------ -------------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-20
<PAGE> 147
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES
------------------------------------------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,050 2,153 0 1,336 200,000 0 1,528 200,000
2 47 2,050 4,413 549 2,189 200,000 1,085 2,725 200,000
3 48 2,050 6,786 1,373 3,013 200,000 2,392 4,032 200,000
4 49 2,050 9,278 2,144 3,784 200,000 3,796 5,436 200,000
5 50 2,050 11,894 2,839 4,479 200,000 5,286 6,926 200,000
6 51 2,050 14,641 3,484 5,124 200,000 6,895 8,535 200,000
7 52 2,050 17,526 4,055 5,695 200,000 8,615 10,255 200,000
8 53 2,050 20,554 4,758 6,193 200,000 10,665 12,100 200,000
9 54 2,050 23,753 5,367 6,597 200,000 12,831 14,061 200,000
10 55 2,050 27,074 5,905 6,930 200,000 15,152 16,177 200,000
11 56 2,050 30,580 6,349 7,169 200,000 17,624 18,444 200,000
12 57 2,050 34,262 6,701 7,316 200,000 20,268 20,883 200,000
13 58 2,050 38,127 6,962 7,372 200,000 23,105 23,515 200,000
14 59 2,050 42,186 7,130 7,335 200,000 26,161 26,366 200,000
15 60 2,050 46,448 7,207 7,207 200,000 29,465 29,465 200,000
16 61 2,050 50,923 7,253 7,253 200,000 33,128 33,128 200,000
17 62 2,050 55,621 7,161 7,161 200,000 37,101 37,101 200,000
18 63 2,050 60,555 6,886 6,886 200,000 41,385 41,385 200,000
19 64 2,050 65,735 6,405 6,405 200,000 46,007 46,007 200,000
20 65 2,050 71,174 5,669 5,669 200,000 50,980 50,980 200,000
21 66 2,050 76,886 4,655 4,655 200,000 56,343 56,343 200,000
22 67 2,050 82,882 3,357 3,357 200,000 62,162 62,162 200,000
23 68 2,050 89,179 1,770 1,770 200,000 68,510 68,510 200,000
24 69 2,050 95,791 LAPSED LAPSED LAPSED 75,461 75,461 200,000
25 70 2,050 102,733 83,098 83,098 200,000
<CAPTION>
CURRENT CHARGES
------------------------------------
END 12.00% (11.25% NET)
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
1 0 1,528 200,000
2 1,533 3,173 200,000
3 3,335 4,975 200,000
4 5,335 6,975 200,000
5 7,531 9,171 200,000
6 9,970 11,610 200,000
7 12,653 14,293 200,000
8 15,814 17,249 200,000
9 19,256 20,486 200,000
10 23,012 24,037 200,000
11 27,141 27,961 200,000
12 31,662 32,277 200,000
13 36,602 37,012 200,000
14 41,910 42,115 200,000
15 47,637 47,637 200,000
16 53,906 53,906 200,000
17 60,700 60,700 200,000
18 68,064 68,064 200,000
19 76,253 76,253 200,000
20 85,355 85,355 200,000
21 95,490 95,490 200,000
22 106,802 106,802 200,000
23 119,433 119,433 200,000
24 133,545 133,545 200,000
25 149,335 149,335 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-21
<PAGE> 148
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,050 110,022 91,498 91,498 200,000 167,014 167,014 200,000
27 72 2,050 117,675 100,758 100,758 200,000 186,818 186,818 211,104
28 73 2,050 125,712 110,985 110,985 200,000 208,813 208,813 231,782
29 74 2,050 134,150 122,316 122,316 200,000 233,193 233,193 254,181
30 75 2,050 143,010 134,974 134,974 200,000 260,237 260,237 278,453
31 76 2,050 152,313 149,222 149,222 200,000 290,257 290,257 304,769
32 77 2,050 162,081 165,442 165,442 200,000 323,454 323,454 339,626
33 78 2,050 172,337 184,114 184,114 200,000 360,157 360,157 378,165
34 79 2,050 183,107 205,553 205,553 215,831 400,731 400,731 420,767
35 80 2,050 194,414 229,235 229,235 240,697 445,575 445,575 467,854
36 81 2,050 206,288 255,322 255,322 268,088 495,131 495,131 519,887
37 82 2,050 218,755 284,031 284,031 298,232 549,854 549,854 577,346
38 83 2,050 231,845 315,589 315,589 331,368 610,251 610,251 640,764
39 84 2,050 245,590 350,236 350,236 367,748 676,862 676,862 710,705
40 85 2,050 260,022 388,229 388,229 407,640 750,256 750,256 787,769
41 86 2,050 275,175 429,835 429,835 451,326 831,084 831,084 872,639
42 87 2,050 291,086 475,338 475,338 499,105 919,862 919,862 965,855
43 88 2,050 307,793 525,031 525,031 551,283 1,017,309 1,017,309 1,068,175
44 89 2,050 325,335 579,214 579,214 608,174 1,124,211 1,124,211 1,180,421
45 90 2,050 343,755 638,192 638,192 670,102 1,241,404 1,241,404 1,303,474
46 91 2,050 363,095 702,263 702,263 737,376 1,369,799 1,369,799 1,438,289
47 92 2,050 383,402 773,603 776,603 804,547 1,512,258 1,512,258 1,572,749
48 93 2,050 404,725 853,465 853,465 879,069 1,670,952 1,670,952 1,721,080
49 94 2,050 427,113 943,433 943,433 962,301 1,848,763 1,848,763 1,885,738
50 95 2,050 450,622 1,045,593 1,045,593 1,056,049 2,048,915 2,048,915 2,069,404
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-22
<PAGE> 149
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 96 2,050 475,305 1,158,090 1,158,090 1,169,671 2,270,744 2,270,744 2,293,451
52 97 2,050 501,223 1,281,488 1,281,488 1,294,302 2,515,952 2,515,952 2,541,111
53 98 2,050 528,437 1,415,589 1,415,589 1,429,745 2,786,985 2,786,985 2,814,855
54 99 2,050 557,011 1,561,501 1,561,501 1,577,116 3,086,608 3,086,608 3,117,474
55 100 2,050 587,014 1,722,245 1,722,245 1,739,467 3,417,787 3,417,787 3,451,965
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-23
<PAGE> 150
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 3,800 0 2,606 200,000 0 2,606 200,000 0 2,606 200,000
5 3,800 5,594 8,634 200,000 5,594 8,634 200,000 8,138 11,178 200,000
10 3,800 10,447 12,347 200,000 10,447 12,347 200,000 18,029 19,929 200,000
20 3,800 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 20,748 20,748 200,000
@ Age 70 3,800 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 4,537 4,537 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 26 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------------ -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------------ -------------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-24
<PAGE> 151
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,800 3,990 0 2,606 200,000 0 2,606 200,000 0 2,606 200,000
2 47 3,800 8,180 1,270 4,310 200,000 1,270 4,310 200,000 1,943 4,983 200,000
3 48 3,800 12,578 2,853 5,893 200,000 2,853 5,893 200,000 4,119 7,159 200,000
4 49 3,800 17,197 4,293 7,333 200,000 4,293 7,333 200,000 6,168 9,208 200,000
5 50 3,800 22,047 5,594 8,634 200,000 5,594 8,634 200,000 8,138 11,178 200,000
6 51 3,800 27,140 6,735 9,775 200,000 6,735 9,775 200,000 10,031 13,071 200,000
7 52 3,800 32,487 7,695 10,735 200,000 7,695 10,735 200,000 11,871 14,911 200,000
8 53 3,800 38,101 8,856 11,516 200,000 8,856 11,516 200,000 14,017 16,677 200,000
9 54 3,800 43,996 9,773 12,053 200,000 9,773 12,053 200,000 16,069 18,349 200,000
10 55 3,800 50,186 10,447 12,347 200,000 10,447 12,347 200,000 18,029 19,929 200,000
11 56 3,800 56,685 10,878 12,398 200,000 10,878 12,398 200,000 19,835 21,355 200,000
12 57 3,800 63,509 11,020 12,160 200,000 11,020 12,160 200,000 21,428 22,568 200,000
13 58 3,800 70,675 10,870 11,630 200,000 10,870 11,630 200,000 22,747 23,507 200,000
14 59 3,800 78,199 10,403 10,783 200,000 10,403 10,783 200,000 23,733 24,113 200,000
15 60 3,800 86,098 9,589 9,589 200,000 9,589 9,589 200,000 24,368 24,368 200,000
16 61 3,800 94,393 8,307 8,307 200,000 8,307 8,307 200,000 24,496 24,496 200,000
17 62 3,800 103,103 6,573 6,573 200,000 6,573 6,573 200,000 24,209 24,209 200,000
18 63 3,800 112,248 4,302 4,302 200,000 4,302 4,302 200,000 23,481 23,481 200,000
19 64 3,800 121,851 1,449 1,449 200,000 1,449 1,449 200,000 22,345 22,345 200,000
20 65 3,800 131,933 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 20,748 20,748 200,000
21 66 3,800 142,520 18,675 18,675 200,000
22 67 3,800 153,636 16,063 16,063 200,000
23 68 3,800 165,308 12,818 12,818 200,000
24 69 3,800 177,563 8,973 8,973 200,000
25 70 3,800 190,431 4,537 4,537 200,000
26 71 3,800 203,943 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-25
<PAGE> 152
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 3,800 0 2,606 200,000 0 2,788 200,000 0 2,788 200,000
5 3,800 5,594 8,634 200,000 7,760 10,800 200,000 10,618 13,658 200,000
10 3,800 10,447 12,347 200,000 17,648 19,548 200,000 27,092 28,992 200,000
20 3,800 LAPSED LAPSED LAPSED 21,958 21,958 200,000 58,714 58,714 200,000
@ Age 70 3,800 LAPSED LAPSED LAPSED 202 202 200,000 67,863 67,863 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 26 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 39 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
-------------------------------------------- --------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
-------------------------------------------- --------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-26
<PAGE> 153
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,800 3,990 0 2,606 200,000 0 2,788 200,000 0 2,788 200,000
2 47 3,800 8,180 1,270 4,310 200,000 1,773 4,813 200,000 2,466 5,506 200,000
3 48 3,800 12,578 2,853 5,893 200,000 3,794 6,834 200,000 5,139 8,179 200,000
4 49 3,800 17,197 4,293 7,333 200,000 5,789 8,829 200,000 7,839 10,879 200,000
5 50 3,800 22,047 5,594 8,634 200,000 7,760 10,800 200,000 10,618 13,658 200,000
6 51 3,800 27,140 6,735 9,775 200,000 9,687 12,727 200,000 13,481 16,521 200,000
7 52 3,800 32,487 7,695 10,735 200,000 11,545 14,585 200,000 16,458 19,498 200,000
8 53 3,800 38,101 8,856 11,516 200,000 13,716 16,376 200,000 19,914 22,574 200,000
9 54 3,800 43,996 9,773 12,053 200,000 15,752 18,032 200,000 23,456 25,736 200,000
10 55 3,800 50,186 10,447 12,347 200,000 17,648 19,548 200,000 27,092 28,992 200,000
11 56 3,800 56,685 10,878 12,398 200,000 19,400 20,920 200,000 30,769 32,289 200,000
12 57 3,800 63,509 11,020 12,160 200,000 20,958 22,098 200,000 34,433 35,573 200,000
13 58 3,800 70,675 10,870 11,630 200,000 22,314 23,074 200,000 38,033 38,793 200,000
14 59 3,800 78,199 10,403 10,783 200,000 23,435 23,815 200,000 41,517 41,897 200,000
15 60 3,800 86,098 9,589 9,589 200,000 24,284 24,284 200,000 44,871 44,871 200,000
16 61 3,800 94,393 8,307 8,307 200,000 24,743 24,743 200,000 47,961 47,961 200,000
17 62 3,800 103,103 6,573 6,573 200,000 24,827 24,827 200,000 50,890 50,890 200,000
18 63 3,800 112,248 4,302 4,302 200,000 24,444 24,444 200,000 53,646 53,646 200,000
19 64 3,800 121,851 1,449 1,449 200,000 23,533 23,533 200,000 56,265 56,265 200,000
20 65 3,800 131,933 LAPSED LAPSED LAPSED 21,958 21,958 200,000 58,714 58,714 200,000
21 66 3,800 142,520 19,650 19,650 200,000 60,993 60,993 200,000
22 67 3,800 153,636 16,460 16,460 200,000 63,067 63,067 200,000
23 68 3,800 165,308 12,282 12,282 200,000 64,880 64,880 200,000
24 69 3,800 177,563 6,941 6,941 200,000 66,472 66,472 200,000
25 70 3,800 190,431 202 202 200,000 67,863 67,863 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-27
<PAGE> 154
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 3,800 203,943 LAPSED LAPSED LAPSED 68,946 68,946 200,000
27 72 3,800 218,130 69,779 69,779 200,000
28 73 3,800 233,026 70,230 70,230 200,000
29 74 3,800 248,668 70,150 70,150 200,000
30 75 3,800 265,091 69,418 69,418 200,000
31 76 3,800 282,336 67,887 67,887 200,000
32 77 3,800 300,442 65,379 65,379 200,000
33 78 3,800 319,454 61,674 61,674 200,000
34 79 3,800 339,417 56,476 56,476 200,000
35 80 3,800 360,378 49,409 49,409 200,000
36 81 3,800 382,387 40,025 40,025 200,000
37 82 3,800 405,496 27,699 27,699 200,000
38 83 3,800 429,761 11,670 11,670 200,000
39 84 3,800 455,239 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-28
<PAGE> 155
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- --------------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 3,800 0 2,606 200,000 0 2,971 200,000 0 2,971 200,000
5 3,800 5,594 8,634 200,000 10,347 13,387 200,000 13,547 16,587 200,000
10 3,800 10,447 12,347 200,000 28,505 30,405 200,000 40,353 42,253 200,000
20 3,800 LAPSED LAPSED LAPSED 88,705 88,705 200,000 150,017 150,017 200,000
@ Age 70 3,800 LAPSED LAPSED LAPSED 147,519 147,519 200,000 266,492 266,492 309,131
@ Age 85 3,800 LAPSED LAPSED LAPSED 744,892 744,892 782,136 1,289,177 1,289,177 1,353,636
@ Age 90 3,800 LAPSED LAPSED LAPSED 1,206,011 1,206,011 1,266,312 2,087,630 2,087,630 2,192,011
</TABLE>
* Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
-------------------------------------------- --------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
-------------------------------------------- --------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-29
<PAGE> 156
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------ ------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,800 3,990 0 2,606 200,000 0 2,971 200,000 0 2,971 200,000
2 47 3,800 8,180 1,270 4,310 200,000 2,299 5,339 200,000 3,012 6,052 200,000
3 48 3,800 12,578 2,853 5,893 200,000 4,822 7,862 200,000 6,248 9,288 200,000
4 49 3,800 17,197 4,293 7,333 200,000 7,497 10,537 200,000 9,733 12,773 200,000
5 50 3,800 22,047 5,594 8,634 200,000 10,347 13,387 200,000 13,547 16,587 200,000
6 51 3,800 27,140 6,735 9,775 200,000 13,372 16,412 200,000 17,731 20,771 200,000
7 52 3,800 32,487 7,695 10,735 200,000 16,576 19,616 200,000 22,354 25,394 200,000
8 53 3,800 38,101 8,856 11,516 200,000 20,368 23,028 200,000 27,825 30,485 200,000
9 54 3,800 43,996 9,773 12,053 200,000 24,334 26,614 200,000 33,804 36,084 200,000
10 55 3,800 50,186 10,447 12,347 200,000 28,505 30,405 200,000 40,353 42,253 200,000
11 56 3,800 56,685 10,878 12,398 200,000 32,917 34,437 200,000 47,489 49,009 200,000
12 57 3,800 63,509 11,020 12,160 200,000 37,572 38,712 200,000 55,237 56,377 200,000
13 58 3,800 70,675 10,870 11,630 200,000 42,514 43,274 200,000 63,636 64,396 200,000
14 59 3,800 78,199 10,403 10,783 200,000 47,776 48,156 200,000 72,743 73,123 200,000
15 60 3,800 86,098 9,589 9,589 200,000 53,400 53,400 200,000 82,664 82,664 200,000
16 61 3,800 94,393 8,307 8,307 200,000 59,364 59,364 200,000 93,428 93,428 200,000
17 62 3,800 103,103 6,573 6,573 200,000 65,810 65,810 200,000 105,320 105,320 200,000
18 63 3,800 112,248 4,302 4,302 200,000 72,786 72,786 200,000 118,536 118,536 200,000
19 64 3,800 121,851 1,449 1,449 200,000 80,392 80,392 200,000 133,344 133,344 200,000
20 65 3,800 131,933 LAPSED LAPSED LAPSED 88,705 88,705 200,000 150,017 150,017 200,000
21 66 3,800 142,520 97,888 97,888 200,000 168,904 168,904 202,685
22 67 3,800 153,636 108,100 108,100 200,000 189,922 189,922 226,007
23 68 3,800 165,308 119,582 119,582 200,000 213,034 213,034 251,380
24 69 3,800 177,563 132,609 132,609 200,000 238,472 238,472 279,012
25 70 3,800 190,431 147,519 147,519 200,000 266,492 266,492 309,131
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-30
<PAGE> 157
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 3,800 203,943 164,746 164,746 200,000 297,338 297,338 341,939
27 72 3,800 218,130 184,755 184,755 208,773 331,497 331,497 374,592
28 73 3,800 233,026 207,108 207,108 229,890 369,352 369,352 409,981
29 74 3,800 248,668 231,896 231,896 252,766 411,355 411,355 448,377
30 75 3,800 265,091 259,465 259,465 277,628 458,054 458,054 490,118
31 76 3,800 282,336 290,238 290,238 304,750 510,103 510,103 535,608
32 77 3,800 300,442 324,088 324,088 340,292 567,482 567,482 595,856
33 78 3,800 319,454 361,303 361,303 379,368 630,705 630,705 662,240
34 79 3,800 339,417 402,199 402,199 422,309 700,325 700,325 735,342
35 80 3,800 360,378 447,110 447,110 469,465 776,944 776,944 815,791
36 81 3,800 382,387 496,389 496,389 521,208 861,218 861,218 904,279
37 82 3,800 405,496 550,409 550,409 577,929 953,851 953,851 1,001,543
38 83 3,800 429,761 609,553 609,553 640,030 1,055,617 1,055,617 1,108,398
39 84 3,800 455,239 674,233 674,233 707,945 1,167,136 1,167,136 1,225,492
40 85 3,800 481,991 744,892 744,892 782,136 1,289,177 1,289,177 1,353,636
41 86 3,800 510,081 822,015 822,015 863,116 1,422,533 1,422,533 1,493,660
42 87 3,800 539,575 906,139 906,139 951,446 1,568,005 1,568,005 1,646,405
43 88 3,800 570,543 997,798 997,798 1,047,688 1,726,586 1,726,586 1,812,916
44 89 3,800 603,061 1,097,549 1,097,549 1,152,426 1,899,433 1,899,433 1,994,405
45 90 3,800 637,204 1,206,011 1,206,011 1,266,312 2,087,630 2,087,630 2,192,011
46 91 3,800 673,054 1,323,820 1,323,820 1,390,011 2,292,001 2,292,001 2,406,601
47 92 3,800 710,696 1,455,866 1,455,866 1,514,101 2,520,624 2,520,624 2,621,449
48 93 3,800 750,221 1,604,541 1,604,541 1,652,677 2,777,683 2,777,683 2,861,013
49 94 3,800 791,722 1,772,779 1,772,779 1,808,235 3,068,447 3,068,447 3,129,816
50 95 3,800 835,299 1,964,456 1,964,456 1,984,101 3,398,929 3,398,929 3,432,918
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-31
<PAGE> 158
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 96 3,800 881,053 2,175,583 2,175,583 2,197,339 3,765,214 3,765,214 3,802,866
52 97 3,800 929,096 2,407,207 2,407,207 2,431,279 4,169,958 4,169,958 4,211,658
53 98 3,800 979,541 2,658,969 2,658,969 2,685,559 4,616,941 4,616,941 4,663,111
54 99 3,800 1,032,508 2,933,047 2,933,047 2,962,377 5,110,713 5,110,713 5,161,820
55 100 3,800 1,088,123 3,234,984 3,234,984 3,267,334 5,656,140 5,656,140 5,712,702
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-32
<PAGE> 159
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,810 201,810 0 1,810 201,810 0 1,810 201,810
5 2,650 4,488 6,608 206,608 4,488 6,608 206,608 6,196 8,316 208,316
10 2,650 9,006 10,331 210,331 9,006 10,331 210,331 14,422 15,747 215,747
20 2,650 4,947 4,947 204,947 4,947 4,947 204,947 21,438 21,438 221,438
@ Age 70 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 15,169 15,169 215,169
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 31 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------------ -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------------ -------------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-33
<PAGE> 160
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,810 201,810 0 1,810 201,810 0 1,810 201,810
2 47 2,650 5,704 1,006 3,126 203,126 1,006 3,126 203,126 1,410 3,530 203,530
3 48 2,650 8,772 2,235 4,355 204,355 2,235 4,355 204,355 3,039 5,159 205,159
4 49 2,650 11,993 3,404 5,524 205,524 3,404 5,524 205,524 4,626 6,746 206,746
5 50 2,650 15,375 4,488 6,608 206,608 4,488 6,608 206,608 6,196 8,316 208,316
6 51 2,650 18,926 5,466 7,586 207,586 5,466 7,586 207,586 7,749 9,869 209,869
7 52 2,650 22,655 6,337 8,457 208,457 6,337 8,457 208,457 9,285 11,405 211,405
8 53 2,650 26,570 7,369 9,224 209,224 7,369 9,224 209,224 11,045 12,900 212,900
9 54 2,650 30,681 8,250 9,840 209,840 8,250 9,840 209,840 12,766 14,356 214,356
10 55 2,650 34,998 9,006 10,331 210,331 9,006 10,331 210,331 14,422 15,747 215,747
11 56 2,650 39,530 9,590 10,650 210,650 9,590 10,650 210,650 15,992 17,052 217,052
12 57 2,650 44,289 10,004 10,799 210,799 10,004 10,799 210,799 17,453 18,248 218,248
13 58 2,650 49,286 10,250 10,780 210,780 10,250 10,780 210,780 18,782 19,312 219,312
14 59 2,650 54,533 10,282 10,547 210,547 10,282 10,547 210,547 19,933 20,198 220,198
15 60 2,650 60,042 10,103 10,103 210,103 10,103 10,103 210,103 20,860 20,860 220,860
16 61 2,650 65,827 9,689 9,689 209,689 9,689 9,689 209,689 21,540 21,540 221,540
17 62 2,650 71,901 9,017 9,017 209,017 9,017 9,017 209,017 21,928 21,928 221,928
18 63 2,650 78,278 8,021 8,021 208,021 8,021 8,021 208,021 22,002 22,002 222,002
19 64 2,650 84,975 6,679 6,679 206,679 6,679 6,679 206,679 21,838 21,838 221,838
20 65 2,650 92,006 4,947 4,947 204,947 4,947 4,947 204,947 21,438 21,438 221,438
21 66 2,650 99,389 2,783 2,783 202,783 2,783 2,783 202,783 20,781 20,781 220,781
22 67 2,650 107,141 166 166 200,166 166 166 200,166 19,823 19,823 219,823
23 68 2,650 115,280 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 18,566 18,566 218,566
24 69 2,650 123,827 17,013 17,013 217,013
25 70 2,650 132,801 15,169 15,169 215,169
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-34
<PAGE> 161
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 12,989 12,989 212,989
27 72 2,650 152,117 10,523 10,523 210,523
28 73 2,650 162,505 7,680 7,680 207,680
29 74 2,650 173,413 4,368 4,368 204,368
30 75 2,650 184,866 523 523 200,523
31 76 2,650 196,892 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-35
<PAGE> 162
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,810 201,810 0 1,937 201,937 0 1,937 201,937
5 2,650 4,488 6,608 206,608 6,040 8,160 208,160 7,959 10,079 210,079
10 2,650 9,006 10,331 210,331 14,226 15,551 215,551 21,021 22,346 222,346
20 2,650 4,947 4,947 204,947 21,405 21,405 221,405 47,924 47,924 247,924
@ Age 70 2,650 LAPSED LAPSED LAPSED 9,907 9,907 209,907 55,458 55,458 255,458
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 27 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 39 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------------ -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------------ -------------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-36
<PAGE> 163
\
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,810 201,810 0 1,937 201,937 0 1,937 201,937
2 47 2,650 5,704 1,006 3,126 203,126 1,358 3,478 203,478 1,775 3,895 203,895
3 48 2,650 8,772 2,235 4,355 204,355 2,900 5,020 205,020 3,755 5,875 205,875
4 49 2,650 11,993 3,404 5,524 205,524 4,469 6,589 206,589 5,807 7,927 207,927
5 50 2,650 15,375 4,488 6,608 206,608 6,040 8,160 208,160 7,959 10,079 210,079
6 51 2,650 18,926 5,466 7,586 207,586 7,590 9,710 209,710 10,216 12,336 212,336
7 52 2,650 22,655 6,337 8,457 208,457 9,118 11,238 211,238 12,584 14,704 214,704
8 53 2,650 26,570 7,369 9,224 209,224 10,888 12,743 212,743 15,307 17,162 217,162
9 54 2,650 30,681 8,250 9,840 209,840 12,583 14,173 214,173 18,126 19,716 219,716
10 55 2,650 34,998 9,006 10,331 210,331 14,226 15,551 215,551 21,021 22,346 222,346
11 56 2,650 39,530 9,590 10,650 210,650 15,764 16,824 216,824 23,971 25,031 225,031
12 57 2,650 44,289 10,004 10,799 210,799 17,193 17,988 217,988 26,954 27,749 227,749
13 58 2,650 49,286 10,250 10,780 210,780 18,507 19,037 219,037 29,946 30,476 230,476
14 59 2,650 54,533 10,282 10,547 210,547 19,652 19,917 219,917 32,901 33,166 233,166
15 60 2,650 60,042 10,103 10,103 210,103 20,618 20,618 220,618 35,765 35,765 235,765
16 61 2,650 65,827 9,689 9,689 209,689 21,380 21,380 221,380 38,518 38,518 238,518
17 62 2,650 71,901 9,017 9,017 209,017 21,909 21,909 221,909 41,111 41,111 241,111
18 63 2,650 78,278 8,021 8,021 208,021 22,121 22,121 222,121 43,512 43,512 243,512
19 64 2,650 84,975 6,679 6,679 206,679 21,975 21,975 221,975 45,785 45,785 245,785
20 65 2,650 92,006 4,947 4,947 204,947 21,405 21,405 221,405 47,924 47,924 247,924
21 66 2,650 99,389 2,783 2,783 202,783 20,340 20,340 220,340 49,897 49,897 249,897
22 67 2,650 107,141 166 166 200,166 18,734 18,734 218,734 51,649 51,649 251,649
23 68 2,650 115,280 LAPSED LAPSED LAPSED 16,508 16,508 216,508 53,167 53,167 253,167
24 69 2,650 123,827 13,610 13,610 213,610 54,441 54,441 254,441
25 70 2,650 132,801 9,907 9,907 209,907 55,458 55,458 255,458
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-37
<PAGE> 164
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 5,287 5,287 205,287 56,158 56,158 256,158
27 72 2,650 152,117 LAPSED LAPSED LAPSED 56,573 56,573 256,573
28 73 2,650 162,505 56,591 56,591 256,591
29 74 2,650 173,413 56,096 56,096 256,096
30 75 2,650 184,866 54,988 54,988 254,988
31 76 2,650 196,892 53,188 53,188 253,188
32 77 2,650 209,519 50,590 50,590 250,590
33 78 2,650 222,777 47,054 47,054 247,054
34 79 2,650 236,699 42,488 42,488 242,488
35 80 2,650 251,316 36,741 36,741 236,741
36 81 2,650 266,665 29,683 29,683 229,683
37 82 2,650 282,780 21,150 21,150 221,150
38 83 2,650 299,702 11,021 11,021 211,021
39 84 2,650 317,469 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-38
<PAGE> 165
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- ---------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,810 201,810 0 2,064 202,064 0 2,064 202,064
5 2,650 4,488 6,608 206,608 7,884 10,004 210,004 10,034 12,154 212,154
10 2,650 9,006 10,331 210,331 21,959 23,284 223,284 30,558 31,883 231,883
20 2,650 4,947 4,947 204,947 63,084 63,084 263,084 108,247 108,247 308,247
@ Age 70 2,650 LAPSED LAPSED LAPSED 86,443 86,443 286,443 175,713 175,713 375,713
@ Age 85 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 644,519 644,519 844,519
@ Age 90 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 941,666 941,666 1,141,666
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 40 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------------ -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------------ -------------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-39
<PAGE> 166
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,810 201,810 0 2,064 202,064 0 2,064 202,064
2 47 2,650 5,704 1,066 3,126 203,126 1,726 3,846 203,846 2,156 4,276 204,276
3 48 2,650 8,772 2,235 4,355 204,355 3,625 5,745 205,745 4,532 6,652 206,652
4 49 2,650 11,993 3,404 5,524 205,524 5,681 7,801 207,801 7,141 9,261 209,261
5 50 2,650 15,375 4,488 6,608 206,608 7,884 10,004 210,004 10,034 12,154 212,154
6 51 2,650 18,926 5,466 7,586 207,586 10,225 12,345 212,345 13,241 15,361 215,361
7 52 2,650 22,655 6,337 8,457 208,457 12,719 14,839 214,839 16,796 18,916 218,916
8 53 2,650 26,570 7,369 9,224 209,224 15,648 17,503 217,503 20,977 22,832 222,832
9 54 2,650 30,681 8,250 9,840 209,840 18,715 20,305 220,305 25,559 27,149 227,149
10 55 2,650 34,998 9,006 10,331 210,331 21,959 23,284 223,284 30,558 31,883 231,883
11 56 2,650 39,530 9,590 10,650 210,650 25,351 26,411 226.411 35,996 37,056 237,056
12 57 2,650 44,289 10,004 10,799 210,799 28,905 29,700 229,700 41,895 42,690 242,690
13 58 2,650 49,286 10,250 10,780 210,780 32,639 33,169 233,169 48,279 48,809 248,809
14 59 2,650 54,533 10,282 10,547 210,547 36,523 36,788 236,788 55,151 55,416 255,416
15 60 2,650 60,042 10,103 10,103 210,103 40,573 40,573 240,573 62,514 62,514 262,514
16 61 2,650 65,827 9,689 9,689 209,689 44,795 44,795 244,795 70,409 70,409 270,409
17 62 2,650 71,901 9,017 9,017 209,017 49,199 49,199 249,199 78,859 78,859 278,859
18 63 2,650 78,278 8,021 8,021 208,021 53,727 53,727 253,727 87,899 87,899 287,899
19 64 2,650 84,975 6,679 6,679 206,679 58,368 58,368 258,368 97,668 97,668 297,668
20 65 2,650 92,006 4,947 4,947 204,947 63,084 63,084 263,084 108,247 108,247 308,247
21 66 2,650 99,389 2,783 2,783 202,783 67,832 67,832 267,832 119,697 119,697 319,697
22 67 2,650 107,141 166 166 200,166 72,591 72,591 272,591 132,064 132,064 332,064
23 68 2,650 115,280 LAPSED LAPSED LAPSED 77,312 77,312 277,312 145,446 145,446 345,446
24 69 2,650 123,827 81,966 81,966 281,966 159,955 159,955 359,955
25 70 2,650 132,801 86,443 86,443 286,443 175,713 175,713 375,713
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-40
<PAGE> 167
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES
----------------------------------------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 90,649 90,649 290,649
27 72 2,650 152,117 94,455 94,455 294,455
28 73 2,650 162,505 297,664 97,664 297,664
29 74 2,650 173,413 100,086 100,086 300,086
30 75 2,650 184,866 101,509 101,509 301,509
31 76 2,650 196,892 101,723 101,723 301,723
32 77 2,650 209,519 100,496 100,496 300,496
33 78 2,650 222,777 97,621 97,621 297,621
34 79 2,650 236,699 92,815 92,815 292,815
35 80 2,650 251,316 85,718 85,718 285,718
36 81 2,650 266,665 75,903 75,903 275,903
37 82 2,650 282,780 62,793 62,793 262,793
38 83 2,650 299,702 45,726 45,726 245,726
39 84 2,650 317,469 23,939 23,939 223,939
40 85 2,650 336,125 LAPSED LAPSED LAPSED
41 86 2,650 355,714
42 87 2,650 376,282
43 88 2,650 397,879
44 89 2,650 420,555
45 90 2,650 444,366
46 91 2,650 469,366
47 92 2,650 495,617
48 93 2,650 523,181
49 94 2,650 552,122
50 95 2,650 582,511
<CAPTION>
CURRENT CHARGES
---------------------------------
END 12.00% (11.25% NET)
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
26 192,806 192,806 392,806
27 211,429 211,429 411,429
28 231,649 231,649 431,649
29 253,537 253,537 453,537
30 277,202 277,202 477,202
31 302,786 302,786 502,786
32 330,422 330,422 530,422
33 360,235 360,235 560,235
34 392,411 392,411 592,411
35 427,110 427,110 627,110
36 464,530 464,530 664,530
37 504,869 504,869 704,869
38 548,398 548,398 748,398
39 594,913 594,913 794,913
40 644,519 644,519 844,519
41 697,331 697,331 897,331
42 753,403 753,403 953,403
43 812,622 812,622 1,012,622
44 875,338 875,338 1,075,338
45 941,666 941,666 1,141,666
46 1,011,312 1,011,312 1,211,312
47 1,084,749 1,084,749 1,284,749
48 1,162,104 1,162,104 1,362,104
49 1,244,066 1,244,066 1,444,066
50 1,330,905 1,330,905 1,530,905
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-41
<PAGE> 168
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 96 2,650 614,419
52 97 2,650 647,922
53 98 2,650 683,101
54 99 2,650 720,038
55 100 2,650 758,823
<CAPTION>
CURRENT CHARGES
---------------------------------
END 12.00% (11.25% NET)
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
51 1,424,351 1,424,351 1,624,351
52 1,525,313 1,525,313 1,725,313
53 1,633,324 1,633,324 1,833,324
54 1,748,657 1,748,657 1,948,657
55 1,869,936 1,869,936 2,069,936
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-42
<PAGE> 169
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,450 0 907 200,000 0 907 200,000 0 907 200,000
5 1,450 2,407 3,567 200,000 2,407 3,567 200,000 3,030 4,190 200,000
10 1,450 5,271 5,996 200,000 5,271 5,996 200,000 7,025 7,750 200,000
20 1,450 7,114 7,114 200,000 7,114 7,114 200,000 12,943 12,943 200,000
@ Age 70 1,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 35 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
---------------------------------------------- -------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
---------------------------------------------- -------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-43
<PAGE> 170
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,450 1,523 0 907 200,000 0 907 200,000 0 907 200,000
2 37 1,450 3,121 456 1,616 200,000 456 1,616 200,000 645 1,805 200,000
3 38 1,450 4,800 1,136 2,296 200,000 1,136 2,296 200,000 1,487 2,647 200,000
4 39 1,450 6,562 1,786 2,946 200,000 1,786 2,946 200,000 2,274 3,434 200,000
5 40 1,450 8,413 2,407 3,567 200,000 2,407 3,567 200,000 3,030 4,190 200,000
6 41 1,450 10,356 2,975 4,135 200,000 2,975 4,135 200,000 3,755 4,915 200,000
7 42 1,450 12,396 3,516 4,676 200,000 3,516 4,676 200,000 4,474 5,634 200,000
8 43 1,450 14,539 4,151 5,166 200,000 4,151 5,166 200,000 5,331 6,346 200,000
9 44 1,450 16,788 4,736 5,606 200,000 4,736 5,606 200,000 6,181 7,051 200,000
10 45 1,450 19,150 5,271 5,996 200,000 5,271 5,996 200,000 7,025 7,750 200,000
11 46 1,450 21,630 5,757 6,337 200,000 5,757 6,337 200,000 7,862 8,442 200,000
12 47 1,450 24,234 6,195 6,630 200,000 6,195 6,630 200,000 8,693 9,128 200,000
13 48 1,450 26,968 6,562 6,852 200,000 6,562 6,852 200,000 9,472 9,762 200,000
14 49 1,450 29,839 6,881 7,026 200,000 6,881 7,026 200,000 10,177 10,322 200,000
15 50 1,450 32,853 7,131 7,131 200,000 7,131 7,131 200,000 10,810 10,810 200,000
16 51 1,450 36,019 7,334 7,334 200,000 7,334 7,334 200,000 11,396 11,396 200,000
17 52 1,450 39,342 7,446 7,446 200,000 7,446 7,446 200,000 11,910 11,910 200,000
18 53 1,450 42,832 7,465 7,465 200,000 7,465 7,465 200,000 12,331 12,331 200,000
19 54 1,450 46,496 7,347 7,347 200,000 7,347 7,347 200,000 12,682 12,682 200,000
20 55 1,450 50,343 7,114 7,114 200,000 7,114 7,114 200,000 12,943 12,943 200,000
21 56 1,450 54,383 6,723 6,723 200,000 6,723 6,723 200,000 13,135 13,135 200,000
22 57 1,450 58,624 6,171 6,171 200,000 6,171 6,171 200,000 13,214 13,214 200,000
23 58 1,450 63,078 5,459 5,459 200,000 5,459 5,459 200,000 13,183 13,183 200,000
24 59 1,450 67,754 4,538 4,538 200,000 4,538 4,538 200,000 13,041 13,041 200,000
25 60 1,450 72,665 3,408 3,408 200,000 3,408 3,408 200,000 12,744 12,744 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-44
<PAGE> 171
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 61 1,450 77,820 2,019 2,019 200,000 2,019 2,019 200,000 12,292 12,292 200,000
27 62 1,450 83,234 365 365 200,000 365 365 200,000 11,685 11,685 200,000
28 63 1,450 88,918 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 10,877 10,877 200,000
29 64 1,450 94,886 9,867 9,867 200,000
30 65 1,450 101,153 8,629 8,629 200,000
31 66 1,450 107,733 7,138 7,138 200,000
32 67 1,450 114,642 5,342 5,342 200,000
33 68 1,450 121,897 3,235 3,235 200,000
34 69 1,450 129,514 807 807 200,000
35 70 1,450 137,513 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-45
<PAGE> 172
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,450 0 907 200,000 0 974 200,000 0 974 200,000
5 1,450 2,407 3,567 200,000 3,235 4,395 200,000 3,943 5,103 200,000
10 1,450 5,271 5,996 200,000 8,161 8,886 200,000 10,376 11,101 200,000
20 1,450 7,114 7,114 200,000 17,899 17,899 200,000 27,027 27,027 200,000
@ Age 70 1,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 47,940 47,940 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 35 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 49 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
-------------------------------------------- ----------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
-------------------------------------------- ----------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-46
<PAGE> 173
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,450 1,523 0 907 200,000 0 974 200,000 0 974 200,000
2 37 1,450 3,121 456 1,616 200,000 641 1,801 200,000 835 1,995 200,000
3 38 1,450 4,800 1,136 2,296 200,000 1,487 2,647 200,000 1,860 3,020 200,000
4 39 1,450 6,562 1,786 2,946 200,000 2,351 3,511 200,000 2,887 4,047 200,000
5 40 1,450 8,413 2,407 3,567 200,000 3,235 4,395 200,000 3,943 5,103 200,000
6 41 1,450 10,356 2,975 4,135 200,000 4,117 5,277 200,000 5,027 6,187 200,000
7 42 1,450 12,396 3,516 4,676 200,000 5,020 6,180 200,000 6,166 7,326 200,000
8 43 1,450 14,539 4,151 5,166 200,000 6,067 7,082 200,000 7,508 8,523 200,000
9 44 1,450 16,788 4,736 5,606 200,000 7,114 7,984 200,000 8,910 9,780 200,000
10 45 1,450 19,150 5,271 5,996 200,000 8,161 8,886 200,000 10,376 11,101 200,000
11 46 1,450 21,630 5,757 6,337 200,000 9,208 9,788 200,000 11,908 12,488 200,000
12 47 1,450 24,234 6,195 6,630 200,000 10,257 10,692 200,000 13,510 13,945 200,000
13 48 1,450 26,968 6,562 6,852 200,000 11,283 11,573 200,000 15,141 15,431 200,000
14 49 1,450 29,839 6,881 7,026 200,000 12,310 12,455 200,000 16,779 16,924 200,000
15 50 1,450 32,853 7,131 7,131 200,000 13,316 13,316 200,000 18,427 18,427 200,000
16 51 1,450 36,019 7,334 7,334 200,000 14,329 14,329 200,000 20,116 20,116 200,000
17 52 1,450 39,342 7,446 7,446 200,000 15,306 15,306 200,000 21,827 21,827 200,000
18 53 1,450 42,832 7,465 7,465 200,000 16,247 16,247 200,000 23,540 23,540 200,000
19 54 1,450 46,496 7,347 7,347 200,000 17,105 17,105 200,000 25,280 25,280 200,000
20 55 1,450 50,343 7,114 7,114 200,000 17,899 17,899 200,000 27,027 27,027 200,000
21 56 1,450 54,383 6,723 6,723 200,000 18,582 18,582 200,000 28,805 28,805 200,000
22 57 1,450 58,624 6,171 6,171 200,000 19,148 19,148 200,000 30,575 30,575 200,000
23 58 1,450 63,078 5,459 5,459 200,000 19,593 19,593 200,000 32,339 32,339 200,000
24 59 1,450 67,754 4,538 4,538 200,000 19,865 19,865 200,000 34,098 34,098 200,000
25 60 1,450 72,665 3,408 3,408 200,000 19,954 19,954 200,000 35,814 35,814 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-47
<PAGE> 174
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 61 1,450 77,820 2,019 2,019 200,000 19,806 19,806 200,000 37,488 37,488 200,000
27 62 1,450 83,234 365 365 200,000 19,404 19,404 200,000 39,120 39,120 200,000
28 63 1,450 88,918 LAPSED LAPSED LAPSED 18,665 18,665 200,000 40,671 40,671 200,000
29 64 1,450 94,886 17,542 17,542 200,000 42,139 42,139 200,000
30 65 1,450 101,153 15,958 15,958 200,000 43,505 43,505 200,000
31 66 1,450 107,733 13,829 13,829 200,000 44,744 44,744 200,000
32 67 1,750 114,642 11,083 11,083 200,000 45,816 45,816 200,000
33 68 1,450 121,897 7,612 7,612 200,000 46,712 46,712 200,000
34 69 1,450 129,514 3,317 3,317 200,000 47,423 47,423 200,000
35 70 1,450 137,513 LAPSED LAPSED LAPSED 47,940 47,940 200,000
36 71 1,450 145,911 48,212 48,212 200,000
37 72 1,450 154,729 48,261 48,261 200,000
38 73 1,450 163,988 47,996 47,996 200,000
39 74 1,450 173,710 47,315 47,315 200,000
40 75 1,450 183,918 46,126 46,126 200,000
41 76 1,450 194,636 44,343 44,343 200,000
42 77 1,450 205,890 41,843 41,843 200,000
43 78 1,450 217,707 38,467 38,467 200,000
44 79 1,450 230,115 34,065 34,065 200,000
45 80 1,450 243,143 28,412 28,412 200,000
46 81 1,450 256,823 21,258 21,258 200,000
47 82 1,450 271,187 12,275 12,275 200,000
48 83 1,450 286,269 1,099 1,099 200,000
49 84 1,450 302,105 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-48
<PAGE> 175
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- --------------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,450 0 907 200,000 0 1,040 200,000 0 1,040 200,000
5 1,450 2,407 3,567 200,000 4,218 5,378 200,000 5,020 6,180 200,000
10 1,450 5,271 5,996 200,000 12,421 13,146 200,000 15,246 15,971 200,000
20 1,450 7,114 7,114 200,000 43,765 43,765 200,000 58,872 58,872 200,000
@ Age 70 1,450 LAPSED LAPSED LAPSED 200,642 200,642 232,745 299,404 299,404 347,309
@ Age 85 1,450 LAPSED LAPSED LAPSED 923,365 923,365 969,533 1,399,298 1,399,298 1,469,263
@ Age 90 1,450 LAPSED LAPSED LAPSED 1,483,409 1,483,409 1,557,580 2,286,647 2,286,647 2,400,980
</TABLE>
* Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
---------------------------------------------- ------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
---------------------------------------------- ------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-49
<PAGE> 176
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------- ----------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,450 1,523 0 907 200,000 0 1,040 200,000 0 1,040 200,000
2 37 1,450 3,121 456 1,616 200,000 834 1,994 200,000 1,035 2,195 200,000
3 38 1,450 4,800 1,136 2,296 200,000 1,869 3,029 200,000 2,266 3,426 200,000
4 39 1,450 6,562 1,786 2,946 200,000 2,994 4,154 200,000 3,582 4,742 200,000
5 40 1,450 8,413 2,407 3,567 200,000 4,218 5,378 200,000 5,020 6,180 200,000
6 41 1,450 10,356 2,975 4,135 200,000 5,530 6,690 200,000 6,591 7,751 200,000
7 42 1,450 12,396 3,516 4,676 200,000 6,963 8,123 200,000 8,335 9,495 200,000
8 43 1,450 14,539 4,151 5,166 200,000 8,652 9,667 200,000 10,417 11,432 200,000
9 44 1,450 16,788 4,736 5,606 200,000 10,467 11,337 200,000 12,713 13,583 200,000
10 45 1,450 19,150 5,271 5,996 200,000 12,421 13,146 200,000 15,246 15,971 200,000
11 46 1,450 21,630 5,757 6,337 200,000 14,530 15,110 200,000 18,043 18,623 200,000
12 47 1,450 24,234 6,195 6,630 200,000 16,815 17,250 200,000 21,132 21,567 200,000
13 48 1,450 26,968 6,562 6,852 200,000 19,272 19,562 200,000 24,502 24,792 200,000
14 49 1,450 29,839 6,881 7,026 200,000 21,945 22,090 200,000 28,163 28,308 200,000
15 50 1,450 32,853 7,131 7,131 200,000 24,838 24,838 200,000 32,149 32,149 200,000
16 51 1,450 36,019 7,334 7,334 200,000 28,015 28,015 200,000 36,539 36,539 200,000
17 52 1,450 39,342 7,446 7,446 200,000 31,469 31,469 200,000 41,359 41,359 200,000
18 53 1,450 42,832 7,465 7,465 200,000 35,235 35,235 200,000 46,641 46,641 200,000
19 54 1,450 46,496 7,347 7,347 200,000 39,313 39,313 200,000 52,463 52,463 200,000
20 55 1,450 50,343 7,114 7,114 200,000 43,765 43,765 200,000 58,872 58,872 200,000
21 56 1,450 54,383 6,723 6,723 200,000 48,601 48,601 200,000 65,958 65,958 200,000
22 57 1,450 58,624 6,171 6,171 200,000 53,875 53,875 200,000 73,771 73,771 200,000
23 58 1,450 63,078 5,459 5,459 200,000 59,649 59,649 200,000 82,404 82,404 200,000
24 59 1,450 67,754 4,538 4,538 200,000 65,958 65,958 200,000 91,964 91,964 200,000
25 60 1,450 72,665 3,408 3,408 200,000 72,881 72,881 200,000 102,544 102,544 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-50
<PAGE> 177
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 61 1,450 77,820 2,019 2,019 200,000 80,477 80,477 200,000 114,283 114,283 200,000
27 62 1,450 83,234 365 365 200,000 88,852 88,852 200,000 127,338 127,338 200,000
28 63 1,450 88,918 LAPSED LAPSED LAPSED 98,085 98,085 200,000 141,873 141,873 200,000
29 64 1,450 94,886 108,307 108,307 200,000 158,098 158,098 200,000
30 65 1,450 101,153 119,662 119,662 200,000 176,191 176,191 214,954
31 66 1,450 107,733 132,329 132,329 200,000 196,208 196,208 235,450
32 67 1,450 114,642 146,538 146,538 200,000 218,305 218,305 259,783
33 68 1,450 121,897 162,562 162,562 200,000 242,703 242,703 286,389
34 69 1,450 129,514 180,655 180,655 211,366 269,645 269,645 315,485
35 70 1,450 137,513 200,642 200,642 232,745 299,404 299,404 347,309
36 71 1,450 145,911 222,643 222,643 256,040 332,272 332,272 382,112
37 72 1,450 154,729 246,958 246,958 279,063 368,682 368,682 416,610
38 73 1,450 163,988 273,860 273,860 303,985 409,031 409,031 454,024
39 74 1,450 173,710 303,677 303,677 331,007 453,775 453,775 494,614
40 75 1,450 183,918 336,797 336,797 360,373 503,445 503,445 538,686
41 76 1,450 194,636 373,693 373,693 392,378 558,663 558,663 586,596
42 77 1,450 205,890 414,342 414,342 435,059 619,683 619,683 650,667
43 78 1,450 217,707 459,106 459,106 482,061 687,086 687,086 721,441
44 79 1,450 230,115 508,373 508,373 533,792 761,520 761,520 799,596
45 80 1,450 243,143 562,557 562,557 590,685 843,681 843,681 885,865
46 81 1,450 256,823 622,100 622,100 653,205 934,337 934,337 981,054
47 82 1,450 271,187 687,461 687,461 721,834 1,034,318 1,034,318 1,086,034
48 83 1,450 286,269 759,120 759,120 797,075 1,144,542 1,144,542 1,201,770
49 84 1,450 302,105 837,576 837,576 879,455 1,265,871 1,265,871 1,329,164
50 85 1,450 318,732 923,365 923,365 969,533 1,399,298 1,399,298 1,469,263
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-51
<PAGE> 178
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 86 1,450 336,191 1,017,053 1,017,053 1,067,906
52 87 1,450 354,524 1,119,241 1,119,241 1,175,203
53 88 1,450 373,772 1,230,580 1,230,580 1,292,109
54 89 1,450 393,983 1,351,737 1,351,737 1,419,324
55 90 1,450 415,205 1,483,409 1,483,409 1,557,580
56 91 1,450 437,488 1,626,283 1,626,283 1,707,597
57 92 1,450 460,885 1,786,018 1,786,018 1,857,458
58 93 1,450 485,451 1,965,579 1,965,579 2,024,546
59 94 1,450 511,246 2,168,618 2,168,618 2,211,990
60 95 1,450 538,331 2,399,877 2,399,877 2,423,876
61 96 1,450 566,770 2,654,559 2,654,559 2,681,104
62 97 1,450 596,631 2,933,944 2,933,944 2,963,283
63 98 1,450 627,985 3,237,572 3,237,572 3,269,947
64 99 1,450 660,907 3,568,075 3,568,075 3,603,756
65 100 1,450 695,475 3,932,173 3,932,173 3,971,495
<CAPTION>
CURRENT CHARGES
---------------------------------
END 12.00% (11.25% NET)
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
51 1,545,887 1,545,887 1,623,181
52 1,706,738 1,706,738 1,792,074
53 1,882,936 1,882,936 1,977,083
54 2,075,810 2,075,810 2,179,600
55 2,286,647 2,286,647 2,400,980
56 2,516,552 2,516,552 2,642,379
57 2,772,282 2,772,282 2,883,174
58 3,058,014 3,058,014 3,149,754
59 3,379,046 3,379,046 3,446,627
60 3,741,639 3,741,639 3,779,055
61 4,142,617 4,142,617 4,184,043
62 4,586,031 4,586,031 4,631,891
63 5,076,124 5,076,124 5,126,885
64 5,617,655 5,617,655 5,673,831
65 6,215,513 6,215,513 6,277,668
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-52
<PAGE> 179
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4,450 0 3,082 200,000 0 3,082 200,000 0 3,082 200,000
5 4,450 5,750 9,310 200,000 5,750 9,310 200,000 10,867 14,427 200,000
10 4,450 9,214 11,439 200,000 9,214 11,439 200,000 24,879 27,104 200,000
20 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 32,706 32,706 200,000
@ Age 70 4,450 2,898 2,898 200,000 2,898 2,898 200,000 34,647 34,647 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 16 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 16 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 28 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
----------------------------------------------- ------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
----------------------------------------------- ------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-53
<PAGE> 180
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 4,450 4,673 0 3,082 200,000 0 3,082 200,000 0 3,082 200,000
2 57 4,450 9,579 1,356 4,916 200,000 1,356 4,916 200,000 2,464 6,024 200,000
3 58 4,450 14,730 3,026 6,586 200,000 3,026 6,586 200,000 5,315 8,875 200,000
4 59 4,450 20,139 4,490 8,050 200,000 4,490 8,050 200,000 8,100 11,660 200,000
5 60 4,450 25,819 5,750 9,310 200,000 5,750 9,310 200,000 10,867 14,427 200,000
6 61 4,450 31,782 6,765 10,325 200,000 6,765 10,325 200,000 13,613 17,173 200,000
7 62 4,450 38,044 7,536 11,096 200,000 7,536 11,096 200,000 16,298 19,858 200,000
8 63 4,450 44,618 8,443 11,558 200,000 8,443 11,558 200,000 19,304 22,419 200,000
9 64 4,450 51,522 9,018 11,688 200,000 9,018 11,688 200,000 22,170 24,840 200,000
10 65 4,450 58,770 9,214 11,439 200,000 9,214 11,439 200,000 24,879 27,104 200,000
11 66 4,450 66,381 8,983 10,763 200,000 8,983 10,763 200,000 27,355 29,135 200,000
12 67 4,450 74,373 8,294 9,629 200,000 8,294 9,629 200,000 29,584 30,919 200,000
13 68 4,450 82,764 7,090 7,980 200,000 7,090 7,980 200,000 31,592 32,482 200,000
14 69 4,450 91,575 5,330 5,775 200,000 5,330 5,775 200,000 33,305 33,750 200,000
15 70 4,450 100,826 2,898 2,898 200,000 2,898 2,898 200,000 34,647 34,647 200,000
16 71 4,450 110,540 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 35,368 35,368 200,000
17 72 4,450 120,739 35,510 35,510 200,000
18 73 4,450 131,449 35,050 35,050 200,000
19 74 4,450 142,693 34,133 34,133 200,000
20 75 4,450 154,501 32,706 32,706 200,000
21 76 4,450 166,898 30,730 30,730 200,000
22 77 4,450 179,916 28,120 28,120 200,000
23 78 4,450 193,584 24,756 24,756 200,000
24 79 4,450 207,936 20,547 20,547 200,000
25 80 4,450 223,005 15,340 15,340 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-54
<PAGE> 181
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 81 4,450 238,828 8,977 8,977 200,000
27 82 4,450 255,441 1,248 1,248 200,000
28 83 4,450 272,886 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-55
<PAGE> 182
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- ----------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4,450 0 3,082 200,000 0 3,296 200,000 0 3,296 200,000
5 4,450 5,750 9,310 200,000 8,213 11,773 200,000 13,907 17,467 200,000
10 4,450 9,214 11,439 200,000 17,081 19,306 200,000 36,480 38,705 200,000
20 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 84,411 84,411 200,000
@ Age 70 4,450 2,898 2,898 200,000 18,086 18,086 200,000 61,547 61,547 200,000
@ Age 85 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 128,434 128,434 200,000
@ Age 90 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 146,039 146,039 200,000
</TABLE>
* Policy lapses in policy year 16 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
--------------------------------------------- -------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
--------------------------------------------- -------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-56
<PAGE> 183
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ ------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 4,450 4,673 0 3,082 200,000 0 3,296 200,000 0 3,296 200,000
2 57 4,450 9,579 1,356 4,916 200,000 1,943 5,503 200,000 3,084 6,644 200,000
3 58 4,450 14,730 3,026 6,586 200,000 4,114 7,674 200,000 6,538 10,098 200,000
4 59 4,450 20,139 4,490 8,050 200,000 6,204 9,764 200,000 10,127 13,687 200,000
5 60 4,450 25,819 5,750 9,310 200,000 8,213 11,773 200,000 13,907 17,467 200,000
6 61 4,450 31,782 6,765 10,325 200,000 10,095 13,655 200,000 17,888 21,448 200,000
7 62 4,450 38,044 7,536 11,096 200,000 11,846 15,406 200,000 22,036 25,596 200,000
8 63 4,450 44,618 8,443 11,558 200,000 13,841 16,956 200,000 26,746 29,861 200,000
9 64 4,450 51,522 9,018 11,688 200,000 15,604 18,274 200,000 31,563 34,233 200,000
10 65 4,450 58,770 9,214 11,439 200,000 17,081 19,306 200,000 36,480 38,705 200,000
11 66 4,450 66,381 8,983 10,763 200,000 18,212 19,992 200,000 41,433 43,213 200,000
12 67 4,450 74,373 8,294 9,629 200,000 18,952 20,287 200,000 46,417 47,752 200,000
13 68 4,450 82,764 7,090 7,980 200,000 19,230 20,120 200,000 51,466 52,356 200,000
14 69 4,450 91,575 5,330 5,775 200,000 18,986 19,431 200,000 56,527 56,972 200,000
15 70 4,450 100,826 2,898 2,898 200,000 18,086 18,086 200,000 61,547 61,547 200,000
16 71 4,450 110,540 LAPSED LAPSED LAPSED 16,353 16,353 200,000 66,333 66,333 200,000
17 72 4,450 120,739 13,692 13,692 200,000 70,965 70,965 200,000
18 73 4,450 131,449 9,855 9,855 200,000 75,451 75,451 200,000
19 74 4,450 142,693 4,569 4,569 200,000 79,934 79,934 200,000
20 75 4,450 154,501 LAPSED LAPSED LAPSED 84,411 84,411 200,000
21 76 4,450 166,898 88,895 88,895 200,000
22 77 4,450 179,916 93,376 93,376 200,000
23 78 4,450 193,584 97,836 97,836 200,000
24 79 4,450 207,936 102,285 102,285 200,000
25 80 4,450 223,005 106,715 106,715 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-57
<PAGE> 184
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ ------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 81 4,450 238,828 111,134 111,134 200,000
27 82 4,450 255,441 115,545 115,545 200,000
28 83 4,450 272,886 119,979 119,979 200,000
29 84 4,450 291,203 124,283 124,283 200,000
30 85 4,450 310,436 128,434 128,434 200,000
31 86 4,450 330,630 132,418 132,418 200,000
32 87 4,450 351,834 136,204 136,204 200,000
33 88 4,450 374,098 139,710 139,710 200,000
34 89 4,450 397,475 142,994 142,994 200,000
35 90 4,450 422,022 146,039 146,039 200,000
36 91 4,450 447,795 148,714 148,714 200,000
37 92 4,450 474,857 151,067 151,067 200,000
38 93 4,450 503,273 153,040 153,040 200,000
39 94 4,450 533,109 154,671 154,671 200,000
40 95 4,450 564,437 155,866 155,866 200,000
41 96 4,450 597,331 156,805 156,805 200,000
42 97 4,450 631,870 157,466 157,466 200,000
43 98 4,450 668,136 157,473 157,473 200,000
44 99 4,450 706,216 156,443 156,443 200,000
45 100 4,450 746,199 153,332 153,332 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-58
<PAGE> 185
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4,450 0 3,082 200,000 0 3,511 200,000 0 3,511 200,000
5 4,450 5,750 9,310 200,000 11,164 14,724 200,000 17,487 21,047 200,000
10 4,450 9,214 11,439 200,000 29,131 31,356 200,000 53,271 55,496 200,000
20 4,450 LAPSED LAPSED LAPSED 70,123 70,123 200,000 205,461 205,461 219,843
@ Age 70 4,450 2,898 2,898 200,000 49,787 49,787 200,000 110,334 110,334 200,000
@ Age 85 4,450 LAPSED LAPSED LAPSED 78,947 78,947 200,000 634,824 634,824 666,566
@ Age 90 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 1,060,805 1,060,805 1,113,845
</TABLE>
* Policy lapses in policy year 16 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 35 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------- ---------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------- ---------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-59
<PAGE> 186
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
---------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 4,450 4,673 0 3,082 200,000 0 3,511 200,000 0 3,511 200,000
2 57 4,450 9,579 1,356 4,916 200,000 2,558 6,118 200,000 3,732 7,292 200,000
3 58 4,450 14,730 3,026 6,586 200,000 5,305 8,865 200,000 7,865 11,425 200,000
4 59 4,450 20,139 4,490 8,050 200,000 8,167 11,727 200,000 12,419 15,979 200,000
5 60 4,450 25,819 5,750 9,310 200,000 11,164 14,724 200,000 17,487 21,047 200,000
6 61 4,450 31,782 6,765 10,325 200,000 14,273 17,833 200,000 23,127 26,687 200,000
7 62 4,450 38,044 7,536 11,096 200,000 17,516 21,076 200,000 29,363 32,923 200,000
8 63 4,450 44,618 8,443 11,558 200,000 21,298 24,413 200,000 36,647 39,762 200,000
9 64 4,450 51,522 9,018 11,688 200,000 25,176 27,846 200,000 44,594 47,264 200,000
10 65 4,450 58,770 9,214 11,439 200,000 29,131 31,356 200,000 53,271 55,496 200,000
11 66 4,450 66,381 8,983 10,763 200,000 33,148 34,928 200,000 62,707 64,487 200,000
12 67 4,450 74,373 8,294 9,629 200,000 37,231 38,566 200,000 73,002 74,337 200,000
13 68 4,450 82,764 7,090 7,980 200,000 41,369 42,259 200,000 84,300 85,190 200,000
14 69 4,450 91,575 5,330 5,775 200,000 45,569 46,014 200,000 96,700 97,145 200,000
15 70 4,450 100,826 2,898 2,898 200,000 49,787 49,787 200,000 110,334 110,334 200,000
16 71 4,450 110,540 LAPSED LAPSED LAPSED 53,962 53,962 200,000 125,280 125,280 200,000
17 72 4,450 120,739 58,146 58,146 200,000 141,904 141,904 200,000
18 73 4,450 131,449 62,270 62,270 200,000 160,549 160,549 200,000
19 74 4,450 142,693 66,281 66,281 200,000 181,668 181,668 200,000
20 75 4,450 154,501 70,123 70,123 200,000 205,461 205,461 219,843
21 76 4,450 166,898 73,752 73,752 200,000 231,898 231,898 243,493
22 77 4,450 179,916 77,117 77,117 200,000 261,118 261,118 274,174
23 78 4,450 193,584 80,188 80,188 200,000 293,402 293,402 308,073
24 79 4,450 207,936 82,894 82,894 200,000 329,061 329,061 345,514
25 80 4,450 223,005 85,115 85,115 200,000 368,428 368,428 386,850
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
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<PAGE> 187
LIFE INSURANCE ILLUSTRATION
MONY Custom EquityMaster
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 81 4,450 238,828 86,685 86,685 200,000 411,875 411,875 432,468
27 82 4,450 255,441 87,325 87,325 200,000 459,799 459,799 482,789
28 83 4,450 272,886 86,648 86,648 200,000 512,643 512,643 538,275
29 84 4,450 291,203 84,103 84,103 200,000 570,825 570,825 599,366
30 85 4,450 310,436 78,947 78,947 200,000 634,824 634,824 666,566
31 86 4,450 330,630 70,091 70,091 200,000 705,154 705,154 740,412
32 87 4,450 351,834 55,932 55,932 200,000 782,347 782,347 821,464
33 88 4,450 374,098 34,066 34,066 200,000 866,930 866,930 910,276
34 89 4,450 397,475 719 719 200,000 959,541 959,541 1,007,518
35 90 4,450 422,022 LAPSED LAPSED LAPSED 1,060,805 1,060,805 1,113,845
36 91 4,450 447,795 1,171,260 1,171,260 1,229,823
37 92 4,450 474,857 1,294,083 1,294,083 1,345,847
38 93 4,450 503,273 1,431,265 1,431,265 1,474,203
39 94 4,450 533,109 1,585,329 1,585,329 1,617,036
40 95 4,450 564,437 1,759,260 1,759,260 1,776,853
41 96 4,450 597,331 1,951,608 1,951,608 1,971,124
42 97 4,450 631,870 2,164,314 2,164,314 2,185,957
43 98 4,450 668,136 2,399,418 2,399,418 2,423,412
44 99 4,450 706,216 2,659,201 2,659,201 2,685,793
45 100 4,450 746,199 2,946,013 2,946,013 2,975,473
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-61
