<PAGE> 1
REGISTRATION NOS. 333-06071
811-4235
FISCAL YEAR END DECEMBER 31
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM S-6
POST - EFFECTIVE AMENDMENT NO. 5
------------------------
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF SECURITIES
OF UNIT INVESTMENT TRUSTS REGISTERED ON FORMS N-8B-2
MONY AMERICA VARIABLE ACCOUNT L
(EXACT NAME OF TRUST)
MONY LIFE INSURANCE COMPANY OF AMERICA
(NAME OF DEPOSITOR)
1740 BROADWAY
NEW YORK, NEW YORK 10019
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)
EDWARD P. BANK
VICE PRESIDENT AND DEPUTY GENERAL COUNSEL
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
1740 BROADWAY
NEW YORK, NEW YORK 10019
(NAME AND ADDRESS OF AGENT FOR SERVICE)
- - ---------------
It is proposed that this filing will become effective on March 10, 1998
pursuant to Rule 485(b).
The Registrant has registered an indefinite amount of securities pursuant
to Rule 24f-2 under the Investment Company Act of 1940. The Rule 24f-2 Notice
will be filed on or before March 30, 1998.
================================================================================
<PAGE> 2
CROSS REFERENCE TO ITEMS REQUIRED BY FORM N-8B-2
<TABLE>
<CAPTION>
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
- - ----------- --------------------------------------------------------------------------------
<C> <S>
1 Cover Page
2 Cover Page
3 Not Applicable
4 DISTRIBUTION OF THE POLICY
5 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
6 MONY America Variable Account L
7 Not required
8 Not required
9 Legal Proceedings
10 THE POLICY; INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT; CHARGES AND
DEDUCTIONS; OTHER INFORMATION; VOTING OF FUND SHARES; MORE ABOUT THE POLICY
11 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT; THE FUNDS; PURCHASE OF
PORTFOLIO SHARES BY THE VARIABLE ACCOUNT
12 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT; THE FUNDS; PURCHASE OF
PORTFOLIO SHARES BY THE VARIABLE ACCOUNT
13 THE POLICY; CHARGES AND DEDUCTIONS; THE FUNDS
14 THE POLICY
15 THE POLICY
16 THE FUNDS; THE POLICY; INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
17 THE POLICY
18 THE FUNDS; THE POLICY; INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
19 VOTING OF FUND SHARES; MORE ABOUT THE POLICY
20 Not applicable
21 THE POLICY
22 Not applicable
23 Not applicable
24 IMPORTANT TERMS; MORE ABOUT THE POLICY
25 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
26 Not applicable
27 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
28 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
29 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
30 Not applicable
31 Not applicable
32 Not applicable
33 Not applicable
34 Not applicable
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
- - ----------- --------------------------------------------------------------------------------
<C> <S>
35 MORE ABOUT THE POLICY
36 Not applicable
37 Not applicable
38 INFORMATION ABOUT THE COMPANY AND THE ACCOUNT; MORE ABOUT THE POLICY
39 MORE ABOUT THE POLICY
40 Not applicable
41 MORE ABOUT THE POLICY
42 Not applicable
43 Not applicable
44 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT; THE POLICY; MORE ABOUT
THE POLICY
45 Not applicable
46 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT; THE POLICY; MORE ABOUT
THE POLICY
47 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT; THE POLICY; MORE ABOUT
THE POLICY
48 Not applicable
49 Not applicable
50 INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
51 Cover Page; INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT; THE POLICY;
MORE ABOUT THE POLICY
52 OTHER INFORMATION
53 OTHER INFORMATION
54 Not applicable
55 Not applicable
56 Not required
57 Not required
58 Not required
59 FINANCIAL STATEMENTS
</TABLE>
<PAGE> 4
PART I
(INFORMATION REQUIRED IN A PROSPECTUS)
<PAGE> 5
PROSPECTUS
DATED , 1998
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
ISSUED BY
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY AMERICA VARIABLE ACCOUNT L
This prospectus describes a flexible premium variable 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
The Mutual Life Insurance Company of New York ("Mutual of New York"). The Policy
is designed primarily for situations where one or more Policies are purchased
each insuring the life of an individual, who shares a common employment,
business or other relationship with other individuals also insured under a
Policy. The Policy may be owned individually, or by a corporation, trust,
association or similar organization. Each Policy must be a part of a Case, which
is a grouping of one or more Policies connected by a non-arbitrary factor, such
as a common employer of the Insureds, and the sum of the premiums to be received
by the Company in the first Policy year for the Policies representing the Case
must be at least $100,000. 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 Surrender Value.
For so long as the Policy remains in force, the Company will, upon proof of
the death of an Insured, pay the death benefit proceeds to the named
Beneficiary. Death benefit proceeds will consist of the Base Death Benefit under
the Policy, plus any amount provided by the Term Insurance Rider, reduced by any
Outstanding Debt (and, if in the Grace Period, further reduced by any overdue
charges). The Policy will remain in force as long as the Account Value less
Outstanding Debt is sufficient to cover any Monthly Deductions. If the
Guaranteed Death Benefit Rider is purchased, the Specified Amount of the Policy
will remain in force if the required premiums (less Partial Surrenders taken and
their fees) have been paid and Account Value exceeds Outstanding Debt. The
Guaranteed Death Benefit Rider is not available in all states.
The Policy permits the choice of two death benefits: under Option I, the
Base Death Benefit remains fixed at the Specified Amount chosen; under Option
II, the Base Death Benefit equals the Specified Amount plus Account Value. Under
Option II, the Base 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 Base Death Benefit will always equal or exceed a multiple
of the Cash Value and will never be less than the current Specified Amount.
The Policy Owner may choose which of the two tests for compliance with the
Federal income tax law definition of life insurance will be applied to the
Policy. These tests are the Cash Value Accumulation Test and the Guideline
Premium/Cash Value Corridor Test. If the Guideline Premium/Cash Value Corridor
Test is chosen, premium payments may be limited.
The Policy also permits an owner of the Policy to obtain loans from the
Company in amounts up to 90% of the Account Value of the Policy (less any
Outstanding Debt), and it permits an Owner to surrender a part of the Policy and
receive a part of the Account Value of the Policy.
Net premiums may be allocated at the Policy Owner's discretion to one or
more of the available 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 invested in the corresponding
Portfolios of the MONY Series Fund, Inc., the Enterprise Accumulation Trust, the
T. Rowe Price Equity Series, Inc., the
<PAGE> 6
T. Rowe Price Fixed Income Series, Inc., the T. Rowe Price International Series,
Inc., the Dreyfus Variable Insurance Fund, the Dreyfus Stock Index Fund, and the
Van Eck Worldwide Insurance Trust. Not all portfolios of the Funds are available
to the Subaccounts of the Variable Account for purchase. Amounts set aside as
collateral for any Outstanding Debt are held in the Loan Account, which is part
of the General Account of the Company.
To the extent that all or a portion of net premiums are allocated to the
Variable Account, the Account Value under the Policy will vary based upon the
investment performance of the Subaccounts to which the Account Value is
allocated. Net premiums allocated to the Guaranteed Interest Account are assets
of the General Account of the Company and will accrue interest at an interest
rate that is guaranteed by the Company. No minimum amount of Account Value is
guaranteed, except to the extent premiums are allocated to the Guaranteed
Interest Account.
A Policy may be returned during the Free Look Period (see "Right to Examine
a Policy -- Free Look Period," page 19), during which time net premium payments
will be invested in the Money Market Subaccount.
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 46.
In pursuing its investment objective, the High Yield Bond Subaccount
purchases shares of the High Yield 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.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
COMMISSION NOR 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 THE MONY
SERIES FUND, INC., THE ENTERPRISE ACCUMULATION TRUST, THE T. ROWE PRICE EQUITY
SERIES, INC., THE T. ROWE PRICE FIXED INCOME SERIES, INC., THE T. ROWE PRICE
INTERNATIONAL SERIES, INC., THE DREYFUS VARIABLE INSURANCE FUND, THE DREYFUS
STOCK INDEX FUND, AND THE VAN ECK WORLDWIDE INSURANCE TRUST. THESE PROSPECTUSES
SHOULD BE READ CAREFULLY AND RETAINED FOR FUTURE REFERENCE.
MONY LIFE INSURANCE COMPANY OF AMERICA
1740 BROADWAY
NEW YORK, NEW YORK 10019
1-800-487-6669
<PAGE> 7
TABLE OF CONTENTS
<TABLE>
<S> <C>
IMPORTANT TERMS....................................................................... 1
SUMMARY OF THE POLICY................................................................. 4
Purpose of the Policy............................................................... 4
Explanation of a Case............................................................... 4
Policy Values....................................................................... 4
The Death Benefit................................................................... 5
Premium Features.................................................................... 5
Allocation Options.................................................................. 6
Transfer of Account Value........................................................... 7
Policy Owner Services............................................................... 7
Dollar Cost Averaging............................................................ 7
Automatic Rebalancing............................................................ 7
Right to Exchange Policy............................................................ 7
Policy Loans........................................................................ 8
Full Surrender...................................................................... 8
Partial Surrender................................................................... 8
Free Look Period.................................................................... 8
Grace Period and Lapse.............................................................. 8
Charges and Deductions.............................................................. 9
Deductions from Premiums......................................................... 9
Deductions from Account Value.................................................... 9
Transaction and Other Charges.................................................... 10
Tax Treatment of Increases in Account Value......................................... 10
Tax Treatment of Death Benefit...................................................... 10
The Guaranteed Interest Account..................................................... 10
Contacting the Company.............................................................. 10
INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT................................ 10
MONY Life Insurance Company of America.............................................. 10
Year 2000 Issue.................................................................. 11
MONY America Variable Account L..................................................... 12
The Funds........................................................................... 12
Purchase of Portfolio Shares by the Variable Account................................ 15
The Money Market Portfolio....................................................... 15
The Prime Reserve Portfolio...................................................... 15
The Government Securities Portfolio.............................................. 16
The Intermediate Bond Portfolio.................................................. 16
The Limited Term Bond Portfolio.................................................. 16
The Long Term Bond Portfolio..................................................... 16
The Worldwide Bond Fund.......................................................... 16
The Stock Index Fund............................................................. 16
The Equity Income Portfolio...................................................... 16
The Equity Portfolio............................................................. 16
The Capital Appreciation Portfolio............................................... 16
The Managed Portfolio............................................................ 17
The Personal Strategy Balanced Portfolio......................................... 17
The Mid-Cap Growth Portfolio..................................................... 17
The New America Growth Portfolio................................................. 17
The Small Cap Portfolio.......................................................... 17
The Small Company Stock Portfolio................................................ 17
The International Growth Portfolio............................................... 17
The International Stock Portfolio................................................ 17
The Worldwide Emerging Markets Fund.............................................. 18
The Worldwide Hard Assets Fund................................................... 18
The High Yield Bond Portfolio.................................................... 18
THE POLICY............................................................................ 18
Application for a Policy............................................................ 18
</TABLE>
i
<PAGE> 8
<TABLE>
<S> <C>
Temporary Insurance Coverage..................................................... 19
Initial Premium Payment.......................................................... 19
Policy Date...................................................................... 19
Risk Classification and Evidence of Insurability................................. 20
Right to Examine a Policy -- Free Look Period....................................... 20
Premiums............................................................................ 20
Case Premiums.................................................................... 20
Premium Flexibility.............................................................. 20
Scheduled Premiums............................................................... 20
Choice of Definition of Life Insurance Tests..................................... 21
Guaranteed Death Benefit Rider Premiums.......................................... 21
Modified Endowment Contracts..................................................... 21
Unscheduled Premium Payments..................................................... 22
Premium Payments Affect the Continuation of the Policy........................... 22
Allocation of Net Premiums.......................................................... 22
Death Benefits Under the Policy..................................................... 23
Death Benefit Options............................................................ 23
Option I......................................................................... 23
Option II........................................................................ 24
Changes in Death Benefit Option.................................................. 24
Changes in Death Benefit Amounts.................................................... 25
Scheduled Increases in Death Benefits............................................ 25
Unscheduled Increases in Death Benefit........................................... 25
Decreases in Death Benefits...................................................... 26
Guaranteed Death Benefit Rider...................................................... 26
Other Optional Insurance Benefits................................................... 27
Term Insurance Rider............................................................. 27
Benefits at Maturity................................................................ 28
Policy Values....................................................................... 28
Account Value.................................................................... 28
Surrender Value.................................................................. 28
Determination of Account Value...................................................... 29
Calculating Unit Values for Each Subaccount......................................... 29
Transfer of Account Value........................................................... 30
Policy Owner Services............................................................... 30
Dollar Cost Averaging............................................................ 30
Automatic Rebalancing............................................................ 31
Right to Exchange Policy............................................................ 31
Policy Loans........................................................................ 31
Full Surrender...................................................................... 33
Partial Surrender................................................................... 33
Grace Period and Lapse.............................................................. 34
If Guaranteed Death Benefit Rider Is Not in Effect............................... 34
If Guaranteed Death Benefit Rider Is in Effect................................... 34
Reinstatement....................................................................... 35
CHARGES AND DEDUCTIONS................................................................ 35
Deductions from Premiums............................................................ 35
Sales Charge..................................................................... 35
Tax Charges...................................................................... 36
Monthly Deductions from Account Value............................................... 36
Cost of Insurance................................................................ 36
Mortality and Expense Risk Charge................................................ 37
Administrative Charge............................................................ 37
Guaranteed Death Benefit Charge.................................................. 38
Other Optional Insurance Benefits Charges........................................ 38
Corporate Purchasers................................................................ 38
Transaction and Other Charges....................................................... 38
</TABLE>
ii
<PAGE> 9
<TABLE>
<S> <C>
Fees and Expenses of the Funds...................................................... 38
Guarantee of Certain Charges........................................................ 40
OTHER INFORMATION..................................................................... 40
Federal Income Tax Considerations................................................... 40
Definition of Life Insurance..................................................... 40
Diversification Requirements..................................................... 41
Tax Treatment of Policies........................................................ 41
Conventional Life Insurance Policies............................................. 42
Modified Endowment Contracts..................................................... 42
Reasonableness Requirement for Charges........................................... 43
Pension and Profit-Sharing Plans................................................. 43
Other Employee Benefit Programs.................................................. 44
Other............................................................................ 44
Charge for Company Income Taxes..................................................... 44
Voting of Fund Shares............................................................... 44
Disregard of Voting Instructions.................................................... 45
Report to Policy Owners............................................................. 45
Substitution of Investments and Right to Change Operations.......................... 45
Changes to Comply with Law.......................................................... 46
PERFORMANCE INFORMATION............................................................... 46
THE GUARANTEED INTEREST ACCOUNT....................................................... 47
General Description................................................................. 47
Limitations on Amounts in the Guaranteed Interest Account........................... 47
Policy Charges...................................................................... 48
Transfers........................................................................... 48
Surrenders and Policy Loans......................................................... 48
MORE ABOUT THE POLICY................................................................. 49
Ownership........................................................................... 49
Joint Owners..................................................................... 49
Beneficiary......................................................................... 49
The Policy.......................................................................... 49
Notification and Claims Procedures.................................................. 49
Payments............................................................................ 49
Payment Plan/Settlement Provisions.................................................. 50
Payment in Case of Suicide.......................................................... 50
Assignment.......................................................................... 50
Errors on The Application........................................................... 50
Incontestability.................................................................... 50
Policy Illustrations................................................................ 51
Distribution of The Policy.......................................................... 51
MORE ABOUT THE COMPANY................................................................ 52
Management.......................................................................... 52
State Regulation.................................................................... 52
Records and Accounts................................................................ 52
Legal Proceedings................................................................... 53
Legal Matters....................................................................... 53
Experts............................................................................. 53
Registration Statement.............................................................. 53
Independent Accountants............................................................. 53
Financial Statements................................................................ 53
</TABLE>
iii
<PAGE> 10
<TABLE>
<S> <C>
INDEX TO FINANCIAL STATEMENTS......................................................... F-1
APPENDIX A............................................................................ A-1
APPENDIX B............................................................................ B-1
APPENDIX C............................................................................ C-1
APPENDIX D............................................................................ D-1
APPENDIX E............................................................................ E-1
APPENDIX F............................................................................ F-1
APPENDIX G............................................................................ G-1
</TABLE>
iv
<PAGE> 11
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 12
IMPORTANT TERMS
ACCOUNT VALUE -- The Account 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.
AGE -- The Insured's age as of his or her nearest birthday on the Policy
Date, increased by the number of complete Policy Years elapsed.
AUTOMATIC REBALANCING -- The Policy feature which automatically
re-allocates each calendar quarter amounts in the Subaccounts of the Variable
Account to match the current Subaccount premium allocation percentages. This is
a service provided by the Company which may be discontinued at any time and is
not a benefit provided by the Policy.
BASE DEATH BENEFIT -- Initially this is the Specified Amount for Policies
under death benefit Option I, or the Specified Amount plus the Account Value for
Policies under death benefit Option II. The Base Death Benefit may subsequently
change depending on the death benefit Option and test for the Federal income tax
law definition of life insurance chosen.
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.
CASH VALUE -- The Cash Value of the Policy at any time is the Account
Value, plus any applicable refund of sales charge.
CASE -- A grouping of one or more Policies connected by a non-arbitrary
factor, presented to the Company as a group. (An example of such a factor is a
common employer for the Insureds under each Policy in the collection.) (See
"Explanation of a Case" on page 4.)
COMPANY, THE -- MONY Life Insurance Company of America.
CUSTOMER SERVICE CENTER -- The Company's administrative office located at
One MONY Plaza, Syracuse, New York 13202.
DEATH BENEFIT PERCENTAGE -- The factor used to calculate the applicable
increase in the Base Death Benefit under the Federal income tax law definition
of life insurance. The factor differs depending on whether the Cash Value
Accumulation Test or the Guideline Premium/Cash Value Corridor Test is chosen
for measuring compliance with the Federal income tax law definition of life
insurance. See "Choice of Definition of Life Insurance Tests", page 20 and
"Federal Income Tax Considerations -- Definition of Life Insurance", page 39.
The Policy Owner may elect to have an alternative Death Benefit Percentage apply
to the Policy which may increase the Base Death Benefit above the amount
required by the Federal income tax law definition of life insurance.
DOLLAR COST AVERAGING -- The Policy feature which allows amounts to be
automatically transferred on a monthly or quarterly basis from the Money Market
Subaccount to the other Subaccounts of the Variable Account. This is a service
provided by the Company which may be discontinued at any time and is not a
benefit provided by the Policy.
FREE LOOK PERIOD -- The period which follows the application for the Policy
and its issuance to the Policy Owner. the Free Look Period, the Policy Owner may
cancel the Policy and receive a refund.
FUNDS -- The MONY Series Fund, Inc., the Enterprise Accumulation Trust, the
T. Rowe Price Equity Series, Inc., the T. Rowe Price Fixed Income Series, Inc.,
the T. Rowe Price International Series, Inc., the Dreyfus Variable Investment
Fund, the Dreyfus Stock Index Fund, and the Van Eck Worldwide Insurance Trust.
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.
1
<PAGE> 13
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 4.0%)
declared by Company.
HOME OFFICE -- The Company's administrative office at 1740 Broadway, New
York, New York, 10019. "Home Office" also includes the Company's Syracuse
Operations Center at 1 MONY Plaza, Syracuse, NY 13202.
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 guaranteed rate of not less than 4.0%.
MATURITY DATE -- The Policy Anniversary on which the Insured is Age 95.
MINIMUM ANNUAL PREMIUM -- The annual premium amount determined by the
Company which is required to place the Policy in force. This Minimum Annual
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 35), and underwriting class of the Insured, and any Riders
added to the Policy.
MONTHLY ANNIVERSARY DAY -- The day each month on which the monthly
deduction is due against the Account Value. The first Monthly Anniversary Day is
the Policy Date.
MONTHLY GUARANTEE PREMIUM -- The premium amount stated in the Policy as the
amount required to maintain the Guaranteed Minimum Death Benefit Rider.
NET AMOUNT AT RISK -- The difference between the current Base Death Benefit
and the Account Value on any Monthly Anniversary Day.
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 Account Value less Outstanding Debt must remain after a Partial
Surrender, or a full surrender of the Policy will be required.
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 -- The person, individual, corporation, trust, association,
partnership, or other similar organization 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.
SALES CHARGE -- The charge deducted from premium payments to cover the
costs of distributing the Policy. The Sales Charge is equal to 9% of each
premium up to the Target Premium paid during the first ten Policy Years, or the
ten Policy Years following an unscheduled increase in the Specified Amount. The
Sales Charge does not apply to premium amounts in excess of the Target Premium
paid during the first ten Policy years, nor any premium paid after the tenth
Policy year.
SCHEDULED PREMIUMS -- 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
2
<PAGE> 14
excess of the Scheduled Premiums may be paid. Scheduled Premiums may be changed
at any time subject to our rules.
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 VALUE -- The Surrender Value of the Policy is the Cash Value less
any Debt.
TARGET DEATH BENEFIT -- If a Term Insurance Rider is attached to the
Policy, the Target Death Benefit is the amount specified in the application for
the Policy, or as changed by the Policy Owner from time to time. The difference
between the Target Death Benefit and the Base Death Benefit is equal to the Term
Insurance Rider's benefit amount.
TARGET PREMIUM -- The maximum amount of premium paid in a Policy year
against which the Sales Charge may be applied.
TERM INSURANCE RIDER -- The Rider which adds term life insurance to the
Insured's Age 95 to the Policy. The Term Insurance Rider benefit is equal to the
difference, if any, between the Target Death Benefit and the Base Death Benefit.
The Rider adjusts over time for changes in the Base Death Benefit to keep the
Target Death Benefit at the desired amount. The Term Insurance Rider is not
guaranteed under the Guaranteed Death Benefit Rider.
TRANSACTION DATE -- The date the Company receives a premium or acceptable
written or telephone request at the Customer Service Center. If the premium or
request reaches the Customer Service Center on a day which is not a Valuation
Date or after the close of business on a Valuation Date (i.e., after 4:00 p.m.
Eastern Time), the Transaction Date will be the next Valuation Date.
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 Valuation Date.
VALUATION DATE -- Each date on which the Variable Account is valued, which
currently includes each day that the New York Stock Exchange is open for trading
and 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.
VALUATION PERIOD -- The period that starts at the close of a Valuation Date
and ends at the close of the next succeeding Valuation Date.
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.
3
<PAGE> 15
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 46 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. The
Policy is designed primarily for situations where one or more Policies are
purchased each insuring the life of an individual, who shares a common
employment, business or other relationship with other individuals also insured
under a Policy. The Policy may be owned individually, or by a corporation,
trust, association or similar organization. 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, accumulation of cash value, and surrender and loan
privileges. Unlike traditional fixed life insurance, the Policy offers a Policy
Owner the opportunity to allocate premium payments and Account Values to
subaccounts of the Variable Account which offer a variety of investment
objectives and an opportunity for the Policy's Account Value and its death
benefit to grow based on investment results. The Policy also offers the Policy
Owner the opportunity to allocate premium payments and Account Values, subject
to certain restrictions, to the Guaranteed Interest Account which is part of the
Company's General Account. 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.
EXPLANATION OF A CASE
Each Policy must be a part of a Case, which is a grouping of one or more
Policies connected by a non-arbitrary factor, such as a common employer of the
Insureds, and the sum of the premiums to be received by the Company in the first
Policy year for the Policies representing the Case must be at least $100,000.
The Company at its sole discretion will determine what constitutes a Case. A
Case may have one Policy Owner (e.g., a single entity that owns all the Policies
in the Case) or as many Policy Owners as there are Policies in the Case.
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, Inc. ("MONY Series Fund), the Enterprise
Accumulation Trust ("Accumulation Trust"), the T. Rowe Price Equity Series, Inc.
("Price Equity Series"), the T. Rowe Price Fixed Income Series, Inc. ("Price
Fixed Income Series"), the T. Rowe Price International Series, Inc. ("Price
International Series"), the Dreyfus Variable Insurance Fund ("Dreyfus Variable
Fund"), the Dreyfus Stock Index Fund ("Dreyfus Index Fund"), and the Van Eck
Worldwide Insurance Trust ("Van Eck Trust"). A Policy Owner may also allocate
net premium payments to the Guaranteed Interest Account. The Loan Account holds
amounts set aside in the General Account of the Company as collateral for
Outstanding Debt.
The Cash Value of the Policy is the Account Value (which is the sum of
amounts allocated to the Subaccounts of the Variable Account, the Guaranteed
Interest Account and the Loan Account) plus any applicable refund of the Sales
Charge. The Surrender Value of the Policy is the Cash Value less any Outstanding
Debt.
Depending on the investment experience of the selected Subaccounts, the
Account Value may increase or decrease on any day. The death benefit may or may
not increase or decrease depending upon several factors, but will never decrease
below the Specified Amount provided the Policy is in force. There is no
guarantee that the Policy's death benefit will increase or, unless the
Guaranteed Death Benefit Rider is purchased, that it will continue for any
period of time. There is also no guarantee of any Account Value, except to the
extent that net premium payments and cash values are allocated to the Guaranteed
Interest Account. Accordingly, the Policy
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<PAGE> 16
Owner bears the investment risk on that portion of the net premiums and Account
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 payment by the Policy Owner.
Generally, the Policy will remain in force only as long as the Account
Value less Outstanding Debt is sufficient to pay all the monthly deductions. If
the Guaranteed Death Benefit Rider is purchased, the Specified Amount of the
Policy will remain in force if the required premiums (reduced by any Partial
Surrenders taken and any Partial Surrender fees) have been paid and Account
Value exceeds Outstanding Debt. The amount by which the Base Death Benefit may
exceed the Specified Amount, including any amount payable under the Term
Insurance Rider, is not guaranteed to remain in force under the Guaranteed Death
Benefit Rider.
THE DEATH BENEFIT
The Target Death Benefit and the Specified Amount will be shown on the
specifications page of the Policy. The minimum Target Death Benefit is generally
$100,000. The minimum Specified Amount is $100,000, although the Specified
Amount may be reduced to $50,000 if at least $50,000 in face amount provided by
the Term Insurance Rider is added to the Policy.
A Policy Owner may elect one of two Options to calculate the amount of Base
Death Benefit payable under the Policy, which may increase the death benefit
payable. Under Option I, the Base Death Benefit will be equal to the Specified
Amount of the Policy on the date of death plus the increase in the Account Value
since the last Monthly Anniversary Day, or, if greater, the Cash Value
(determined as of the date of the Insured's death) multiplied by the Death
Benefit Percentage. Under Option II, the Base Death Benefit will be equal to the
Specified Amount of the Policy plus the Account Value on the date of the
Insured's death, or if greater, the Cash Value (determined as of the date of the
Insured's death) multiplied by the Death Benefit Percentage. The Death Benefit
Percentage is the factor defined by the applicable test for compliance with the
Federal tax law definition of life insurance. See "Choice of Definition of Life
Insurance Tests," page 20. Alternatively, the Policy Owner may elect to have an
alternative Death Benefit Percentage apply to the Policy which may increase the
Base Death Benefit above the amount required by the Federal income tax law
definition of life insurance. Policy Owners seeking to have favorable investment
performance reflected in increasing Account Value should choose Option I; Policy
Owners seeking to have favorable investment performance reflected in increasing
insurance coverage should choose Option II. 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 21.
The Policy Owner may, at time of application, choose to purchase the
Guaranteed Death Benefit Rider. This Rider provides a guarantee that the
Specified Amount will remain in force regardless of the amount of the Policy's
Account Value, provided that a cumulative minimum premium requirement is met. An
extra charge will also be deducted from the Account Value each month the Rider
is in effect. See "Guaranteed Death Benefit Rider," page 25.
The Policy owner may also choose to purchase one or more of the optional
insurance benefits other than the Guaranteed Death Benefit which are also added
to the Policy by Rider. See "Other Optional Insurance Benefits," page 26.
PREMIUM FEATURES
Each Policy is issued in conjunction with a Case. The sum of initial annual
Scheduled Premiums for each Case as well as the premiums to be received by the
Company in the first policy year must be at least $100,000.
The Company requires a Policy Owner to pay an initial premium for each
Policy equal to at least one fourth of the Minimum Annual 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.
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<PAGE> 17
When applying for a Policy, a Policy Owner will determine Scheduled
Premiums that provide 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 on either an annual, semiannual,
quarterly, or monthly basis, at the option of the Policy Owner; however, the
Policy Owner may not be required to pay Scheduled Premiums.
When applying for a Policy, the Policy Owner will also choose which of the
two tests for compliance with the tax law definition of life insurance will be
applied to the Policy. These tests are the Cash Value Accumulation Test and the
Guideline Premium/Cash Value Corridor Test. The Guideline Premium/Cash Value
Corridor Test may limit the amount of premiums which may be paid. See "Choice of
Definition of Life Insurance Tests" page 20, and "Federal Income Tax
Considerations -- Definition of Life Insurance," page 39.
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 -- Modified Endowment Contracts," page 41.
Payment of the Scheduled Premiums will not guarantee that a Policy will
remain in force. See "Grace Period and Lapse," page 33. The Company also may
reject or 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
The Subaccounts invest in portfolios of eight mutual funds which offer the
Policy Owner the opportunity to direct the Company to invest in diversified
portfolios of stocks, bonds, money market instruments, or a combination of these
securities. Each of the Subaccounts invests exclusively in shares of a
designated portfolio (a "Portfolio") of the MONY Series Fund, the Accumulation
Trust, the Price Equity Series, the Price Fixed Income Series, the Price
International Series, the Dreyfus Variable Fund, the Dreyfus Stock Index Fund,
and the Van Eck Trust (collectively the "Funds"). The available Portfolios of
the Funds, each of which has a different investment objective, are the Money
Market Portfolio, the Prime Reserve Portfolio, the Government Securities
Portfolio, the Intermediate Term Bond Portfolio, the Limited Term Bond
Portfolio, the Long Term Bond Portfolio, the Worldwide Bond Fund, the Stock
Index Fund, the Equity Income Portfolio, the Equity Portfolio, the Capital
Appreciation Portfolio, the Managed Portfolio, the Personal Strategy Balance
Portfolio, the Mid-Cap Growth Portfolio, the New America Growth Portfolio, the
Small Cap Portfolio, the Small Company Stock Portfolio, the International Growth
Portfolio, the International Stock Portfolio, the Worldwide Emerging Markets
Fund, the Worldwide Hard Assets (formerly the Gold and Natural Resources Fund)
Fund, and the High Yield Bond Portfolio. See "The Funds," page 12.
The Company is the investment adviser of the MONY Series Fund. Enterprise
Capital Management,
Inc., a subsidiary of The Mutual Life Insurance Company of New York, is the
investment adviser of the Accumulation Trust. OpCap Advisors, a subsidiary of
Oppenheimer Capital, is the sub-investment adviser, of the Equity and Managed
Portfolios; GAMCO Investors, Inc. is the sub-investment adviser of the Small Cap
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. T. Rowe Price
Associates, Inc. is the investment adviser of the Price Equity Series and the
Price Fixed Income Series. Rowe Price-Fleming International, Inc. is the
investment advisor of the Price International Series. Van Eck Associates
Corporation is the investment adviser of the Van Eck Trust. The Dreyfus
Corporation is the investment adviser of the Dreyfus Variable Fund and the
Dreyfus Stock Index Fund.
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.
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<PAGE> 18
TRANSFER OF ACCOUNT VALUE
The Policy Owner may transfer Account Value among the Subaccounts, and,
subject to certain other limitations, between the Subaccounts and the Guaranteed
Interest Account. See "Transfer of Account Value," page 29.
POLICY OWNER SERVICES
The Company currently offers Policy Owners two services: Dollar Cost
Averaging and Automatic Rebalancing. These services may be terminated at any
time. Owners of Policies in force at the time of termination utilizing these
services, will receive 30 days prior notice. There currently are no charges for
these services and any transfers as a result of operation of these services are
not counted toward the limit of 12 transfers per Policy year without transfer
charge. If the Company elects to impose a charge for these services, Owners of
Policies in force at that time utilizing these services will receive 30 days
prior notice. These services involve the sale of Units in one or more
Subaccounts and the purchase of Units in one or more other Subaccounts. This may
result in the loss of Account Value.
DOLLAR COST AVERAGING
Dollar Cost Averaging may be elected at any time by the Policy Owner by
completing the form required. Dollar Cost Averaging is available for any Policy
with at least $5,000 in the Money Market Subacccount. Under Dollar Cost
Averaging, a designated dollar amount of the amount in the Money Market
Subaccount will be transferred automatically to one or more other Subaccounts.
The monthly or quarterly transfer may be no less than $250 per transfer. The
transfer will be made on the tenth day of the month or the 10 day of the last
month of each calendar quarter, or the next succeeding Valuation Date if the
10th is not a Valuation Date, as the case may be.
If both Dollar Cost Averaging and Automatic Rebalancing are elected, Dollar
Cost Averaging will occur first. Automatic Rebalancing will begin only after
Dollar Cost Averaging has been completed. See "Dollar Cost Averaging," page 29.
AUTOMATIC REBALANCING
Automatic Rebalancing may also be elected at any time by the Policy Owner.
Automatic Rebalancing matches Subaccount Account Value allocations over time to
the Subaccount allocation percentages for new premiums. On the 10th day of the
last month of each calendar quarter (or the next succeeding Valuation Date, if
the 10th is not a Valuation Date), the Company will automatically re-allocate
the amounts in each of the Subaccounts into which premiums are allocated to
match the current Subaccount premium allocation percentages. This will rebalance
Subaccount Account Values that may be out of line with the allocation
percentages indicated, which may result, for example, from Subaccounts which
underperform other Subaccounts in certain quarters. Allocations to the
Guaranteed Interest Account will not be rebalanced.
Automatic Rebalancing provides a method for maintaining a balanced approach
to investing Account Values and simplifies the process of asset allocation over
time.
If both Dollar Cost Averaging and Automatic Rebalancing are elected, Dollar
Cost Averaging will occur first. Automatic Rebalancing will begin only after
Dollar Cost Averaging has been completed. See "Automatic Rebalancing," page 30.
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 Account Value is
not guaranteed to a Policy the cash values and death benefits of which contain
minimum guarantees. A Policy Owner so electing will have all Account Values
transferred to the Guaranteed Interest Account.
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<PAGE> 19
POLICY LOANS
The Policy Owner may borrow from the Company an amount up to 90% of the
Policy's Account Value less any existing Outstanding Debt. The minimum loan is
$250. The Policy will be the only security required for a loan. See "Policy
Loans," page 31.
The amount of any Outstanding Debt is subtracted from the death benefit or
from the Cash Value upon surrender. See "Full Surrender," page 32. Outstanding
Debt may also impact the continuation of the Policy. See "Grace Period and
Lapse," page 33.
FULL SURRENDER
The Owner can surrender the Policy during the life of the Insured and
receive its Surrender Value. The value upon surrender is equal to the Account
Value plus any applicable refund of Sales Charges less any Outstanding Debt. See
"Full Surrender," page 32.
PARTIAL SURRENDER
Partial Surrenders are available under the Policy at any time so long as
the Account Value less Outstanding Debt remaining after the requested surrender
and any applicable fees 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. Partial Surrenders generally
reduce the Target Death Benefit, if applicable. If the Owner has elected death
benefit Option I, a Partial Surrender will reduce the Base Death Benefit and may
decrease the Specified Amount of a Policy. Under death benefit Option II, it
will decrease the Base Death Benefit but the Specified Amount will not be
reduced. See "Partial Surrender," page 32.
Among other restrictions, Partial Surrenders must be for at least $500, and
the Policy's Account Value less Outstanding Debt after the surrender must be at
least $500. A Partial Surrender Fee of $25 or 2% of the amount surrendered,
whichever is less, will be assessed against the remaining Account Value.
FREE LOOK 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, within 10 days after the Company mails or delivers the notice of
withdrawal right, or 45 days after Part 1 of the application for the Policy is
completed, whichever is later. During the Free Look Period, net premiums will be
allocated to the Money Market Subaccount, which invests in the Money Market
Portfolio of the MONY Series Fund. See "Right to Examine a Policy -- Free Look
Period", page 19.
GRACE PERIOD AND LAPSE
Payment of Scheduled Premiums 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 Account Value less Outstanding Debt. Even if Scheduled Premium amounts
are paid, if the Guaranteed Death Benefit provision does not apply, the Policy
will lapse any time the Account Value less Outstanding Debt 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 Account Value less Outstanding Debt is insufficient to pay
the current monthly deduction and the total premiums received less any Partial
Surrenders and any related fees do not exceed the premiums required under the
Guaranteed Death Benefit Rider (See "Guaranteed Death Benefit Rider", page 26),
a notice will be sent which will give the Policy Owner 61 days from the date
thereof to make additional payments to the Policy. See "Grace Period and Lapse",
page 33.
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<PAGE> 20
The Guaranteed Death Benefit Rider is not available on Policies offered or
issued for delivery to residents of the Commonwealth of Massachusetts or the
State of Texas, and, therefore, the Grace Period and Lapse will be determined as
if the Guaranteed Death Benefit Rider is not in effect.
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 Account Value. These charges consist of the
following items:
SALES CHARGE -- A Sales Charge equal to 9% of each premium paid in each
Policy year up to the Target Premium paid during the first ten Policy Years, or
the ten Policy Years following an Unscheduled Increase in the Specified Amount.
The Sales Charge does not apply to premium amounts in excess of the Target
Premium paid during the first ten Policy years, nor any premium paid after the
tenth Policy year.
TAX CHARGES -- A state and local premium tax charge based on the actual tax
imposed by the state or local jurisdiction, currently equal to a percentage of
each premium, and a charge related to the Federal tax treatment of deferred
acquisition costs currently equal to 1.25% of each premium will be deducted from
each premium payment 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 "Deductions from Premiums -- Tax Charges",
page 35.)
The Tax Charge may be increased or decreased to reflect any legislative
changes in the applicable tax based on premiums. In addition, if an insured
person changes his or her place of residence, the Company should be notified of
the change. Any change in the tax rate will be effective on the next policy
anniversary.
DEDUCTIONS FROM ACCOUNT VALUE
A charge called the Monthly Deduction is deducted from the Account 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 under the Base Death Benefit.
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.
MORTALITY AND EXPENSE RISK CHARGE -- A charge is deducted monthly for
mortality and expense risks assumed by the Company. For the first 10 Policy
years, this charge is equivalent to an annual rate of 0.60% of Subaccount value.
Each month the Policy remains in force after the tenth Policy Anniversary, it is
expected that this will be an amount equivalent to 0.30% of the Subaccount
value. The reduction of the Mortality and Expense Risk Charge below 0.45% on an
annualized basis after the tenth Policy Anniversary is not guaranteed.
ADMINISTRATIVE CHARGES -- An administrative charge of $7.50 is deducted
monthly from the Account Value in all Policy years. In addition, for Policies
subject to medical underwriting, an issue charge of $5.00 is deducted monthly
from the Account Value for the first three Policy years only. For Policies
underwritten on a guaranteed issue basis, the charge is $3.00 per month for the
first three Policy years.
GUARANTEED DEATH BENEFIT CHARGE -- If the Guaranteed Death Benefit Rider
has been elected, a charge of $0.01 per thousand of Policy Specified Amount per
month will be charged while the Rider is in force. This rider is not available
on Policies offered or issued for delivery in the Commonwealth of Massachusetts
or the State of Texas.
OTHER OPTIONAL INSURANCE BENEFITS CHARGES -- The monthly deduction will
include charges for any other optional insurance benefits added to the Policy by
Rider, including the Term Insurance Rider.
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<PAGE> 21
TRANSACTION AND OTHER CHARGES
A Partial Surrender Fee of the lesser of 2% of the amount surrendered and
$25 will be assessed against the remaining Account Value for any Partial
Surrender. In addition, the Company charges a fee of $25 on transfers which
exceed twelve in any Policy year.
The operating expenses of the Variable Account are paid by the Company and
certain charges, deductions, and fees, all of which are disclosed in the
Prospectus and in the Policy, are made or imposed to compensate the Company for
these expenses. For a more complete description of these charges, see "Charges
and Deductions", pages 34-39. Investment advisory fees and operating expenses of
each of the Funds are paid by the respective Fund. These fees and expenses vary
by portfolio and range from 0.00% to 1.55% of average daily net assets, and
reflect voluntary reimbursements of expenses or waiver of fees. For a more
complete description of these charges, see "The Funds", pages 12-14,
"Transaction and Other Charges," page 37 and the accompanying prospectuses for
each of the Funds.
TAX TREATMENT OF INCREASES IN ACCOUNT VALUE
The Account 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 receipt of the Account
Value unless and until the Policy Owner has actually received 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 38.
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 38.
THE GUARANTEED INTEREST ACCOUNT
The Policy Owner may allocate all or a portion of net premium payments and
transfer Account 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 Account Value
allocated to the Guaranteed Interest Account will be credited interest daily at
a rate equivalent to an effective annual rate of 4%. In addition, the Company
may in its sole discretion pay interest in excess of the guaranteed amount.
After the tenth Policy anniversary, the annual interest rates that apply to the
Account Value in the Guaranteed Interest Account is expected to be 0.3% higher
than otherwise applicable, without taking into account a rate set by the minimum
4% guarantee. See "The Guaranteed Interest Account," pages 45-47.
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 Customer Service
Center at One 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 US 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 The Mutual Life Insurance
Company of New York ("Mutual of New York"), a mutual life insurance company
organized under the laws of the state of New York in 1842. The principal office
of Mutual of New York is located at 1740 Broadway, New York, New York
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<PAGE> 22
10019. It is admitted to do business in all states, as well as the District of
Columbia, and Puerto Rico. As of the end of 1997, Mutual of New York $72.7
billion of life insurance in force and consolidated assets of approximately
$22.0 billion.
At December 31, 1997, Mutual of New York had approximately $133.2 million
invested in the Company to support its insurance operations. Mutual of New York
intends from time to time to make additional capital contributions to the
Company as needed to enable it to meet its reserve requirements and expenses in
connection with its business. Generally, Mutual of New York is under no
obligation to make such contributions, and its assets do not back the benefits
paid under the Policies.
In September 1997, the Company announced that it had begun the process of
demutualization. If completed, it is not expected that demutualization will have
any material effect on MONY America Variable Account L or the Policies.
At May 1, 1997, 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 1995. At the same date, Mutual of New York 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 Mutual of New York whereby Mutual
of New York 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 Mutual of New York and
Andesa TPA, Inc. to meet its obligations under the Policies.
MONY Securities Corp., a wholly owned subsidiary of Mutual of New York, 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
major system 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 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, the Accumulation Trust, the Van Eck Trust, the Dreyfus
Variable Investment Fund, the Dreyfus Stock Index Fund, the Price Equity Series,
the Price Fixed Income Series, and the Price International Series have reviewed
with their respective investment advisers and other suppliers of services the
status of their Year 2000 issue. The prospectuses of the respective funds, which
are included in the Prospectus Portfolio, contain the results of those status
reviews. See MONY Series Fund prospectus at page 20; Accumulation Trust
prospectus at page , Van Eck Trust prospectus at pages , Dreyfus Variable
Investment Fund prospectuses at pages , Dreyfus Stock Index Fund prospectus at
page , Price Equity Series prospectuses at pages , Price Fixed Income Series
prospectuses at pages , and Price International Series prospectus at page .
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<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. 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.
The Variable Account was established on March 27, 1987 under Arizona law
under the authority of the Board of Directors of the 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 seventeen 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. ("MONY Series Fund"),
the Enterprise Accumulation Trust ("Accumulation Trust"), the T. Rowe Price
Equity Series, Inc. ("Price Equity Series"), the T. Rowe Price Fixed Income
Series, Inc. ("Price Fixed Income Series"), the T. Rowe Price International
Series, Inc. ("Price International Series"), the Dreyfus Variable Investment
Fund ("Dreyfus Variable Fund"), the Dreyfus Stock Index Fund ("Dreyfus Index
Fund"), and the Van Eck Worldwide Insurance Trust ("Van Eck Trust")(collectively
the "Funds") The Funds, except for the Dreyfus Stock Fund, are diversified,
open-end management investment companies of the series type. The Dreyfus Stock
Fund is a non-diversified, open-end management investment company. 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 for amounts in
excess of $800 million of the average daily net assets of each of the
Intermediate Term Bond, Long Term Bond and Government Securities Portfolios of
the MONY Series Fund, and as investment adviser to the MONY Series Fund, the
Company receives a daily investment advisory fee equivalent to an annual rate of
0.40 percent of the first $400 million, 0.35 percent of the next $400
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million, and 0.30 percent for amounts in excess of $800 million of the 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,
subject to certain limitations imposed by state law. The Company has entered
into a Services Agreement with Mutual of New York for the provision of
personnel, equipment, facilities and other services, in order to carry out its
duties as investment adviser to the Fund. The portfolios of the MONY Series Fund
bear the operating expenses of the portfolios.
Of the five separate portfolios of the Accumulation Trust, currently all
five 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 Mutual of New York, 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, Small Cap and Managed Portfolios that it advises at an annual rate of
0.80 percent of the average daily net assets of each of those portfolios up to
$400 million of each Portfolio, 0.75 percent of the average daily net assets of
each of those portfolios from $400 million to $800 million of each Portfolio,
and 0.70 percent of the average daily net assets of each of those portfolios in
excess of $800 million of each Portfolio. OpCap Advisors, a subsidiary of
Oppenheimer Capital, as sub-investment adviser to the Equity and Managed
Portfolios of the Enterprise Accumulation Trust, will receive from Enterprise
Capital and not the Accumulation Trust 0.30 percent of the aggregate average
daily net assets of the Equity and Managed Portfolios. GAMCO Investors, Inc., as
sub-investment adviser to the Small Cap portfolio of the Accumulation Trust,
will receive from Enterprise Capital and not the Accumulation Trust, 0.30
percent of the average daily net assets of the Small Cap Portfolio. Enterprise
Capital, as investment adviser to the Accumulation Trust, will receive from the
Accumulation Trust with respect to the International Growth Portfolio monthly
compensation at an annual rate of 0.85 percent of the average daily net assets
of the International Growth Portfolio, and Brinson Partners, as sub-investment
adviser to the International Growth Portfolio, will receive from Enterprise
Capital and not the Accumulation Trust, .4495 percent (53 percent 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 with respect to the High Yield Bond Portfolio
monthly compensation at an annual rate of 0.60 percent of the 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 from the Accumulation Trust, 0.30 percent of the
average daily net assets (.252 percent for assets in excess of $100 million) of
the High Yield Bond Portfolio. The investment advisers will reimburse the Funds
for the amount, if any, by which the aggregate ordinary operating expenses of
any of these Portfolios incurred by the Funds in any calendar year in which the
shares are being offered exceed the most restrictive expense limitations then in
effect under any state securities law or regulation. Currently, the most
restrictive expense limitation in effect limits the expenses of each Fund
Portfolio to an amount equal to 2.5 percent of the first $30 million of average
daily net assets of the Portfolio, 2.0 percent of the next $70 million of
average daily net assets of the Portfolio, and 1.5 percent of the average daily
net assets of the Portfolio in excess of $100 million. The portfolios of the
Accumulation Trust bear the operating expenses of the portfolios.
Each of the four separate portfolios of the Price Equity Series, each of
which pursues different investment objectives and policies, are available for
purchase by corresponding Subaccounts of the Variable Account. T. Rowe Price
Associates, Inc. acts as the investment manager of the Price Equity Series.
Price Associates, as investment adviser to the Price Equity Series, will receive
from the Price Equity Series monthly compensation with respect to the Equity
Income Portfolio, the Mid-Cap Growth Portfolio, and the New America Growth
portfolio that it advises at an annual rate of 0.85 percent of the average daily
net assets of each of those portfolios, and at an annual rate of 0.90 percent of
the average daily net assets of the Personal Strategy Balanced Portfolio. The
portfolios of the Price Equity Series bear the operating expenses of the
portfolios.
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Each of the two separate portfolios of the Price Fixed Income Series, each
of which pursues different investment objectives and policies, are available for
purchase by corresponding Subaccounts of the Variable Account. T. Rowe Price
Associates, Inc. acts as the investment manager of the Price Fixed Income
Series. Price Associates, as investment adviser to the Price Fixed Income
Series, will receive from the Price Fixed Income Series monthly compensation
with respect to the Limited Term Bond Portfolio that it advises at an annual
rate of 0.70 percent of the average daily net assets of each of those
portfolios, and at an annual rate of 0.55 percent of the average daily net
assets of the Prime Reserve Portfolio. The portfolios of the Price Fixed Income
Series bear the operating expenses of the portfolios.
The International Stock Portfolio of the Price International is available
for purchase by corresponding Subaccount of the Variable Account. Rowe
Price-Fleming International, Inc. acts as the investment manager of the Price
International Series. Price-Fleming, as investment adviser to the Price
International Series, will receive from the Price International Series monthly
compensation with respect to the Limited Term Bond Portfolio that it advises at
an annual rate of 1.05 percent of the average daily net assets of the
International Stock Portfolio. The Price International Series bears the
operating expenses of the portfolio.
Of the five separate portfolios of the Van Eck Trust, currently only three
separate portfolios, each of which pursues different investment objectives and
policies, are available for purchase by corresponding Subaccounts of the
Variable Account. Van Eck Associates Corporation acts as the investment manager
of the Van Eck Trust. Van Eck Associates, as investment adviser to the Van Eck
Trust, will receive from the Van Eck Trust monthly compensation with respect to
the Worldwide Bond Fund and the Worldwide Hard Assets Fund that it advises at an
annual rate of 1.00 percent of the first $500 million of the average daily net
assets of each of those portfolios, .90 percent of the next $250 million of the
average daily net assets of each of those portfolios, and .70 percent of the
average daily net assets in excess of $750 million. The Worldwide Emerging
Assets Fund will pay Van Eck Associates monthly compensation at the annual rate
of 1.00 percent of its average daily net assets. Peregrine Asset Management
(Hong Kong) Limited acts as investment subadviser to the Worldwide Emerging
Assets Fund and will receive from Van Eck Associates and not the Van Eck Trust
monthly compensation at an annual rate of .50 percent of the average daily net
assets of the World Wide Emerging Assets Fund. The portfolios of the Van Eck
Trust bear the operating expenses of the portfolios.
Of the thirteen separate portfolios of the Dreyfus Variable Fund, currently
only two separate portfolios, each of which pursues different investment
objectives and policies, are available for purchase by corresponding Subaccounts
of the Variable Account. The Dreyfus Corporation, as investment adviser to the
Dreyfus Variable Investment Fund, will receive from the Dreyfus Variable
Investment Fund monthly compensation with respect to Capital Appreciation
Portfolio that it advises at an annual rate of 0.55 percent of the first $150
million of average daily net assets of that Portfolio. 0.50 percent of the next
$150 million of average daily net assets, and 0.375 percent of average daily net
assets of $300 million or more. The Dreyfus Corporation, as investment adviser
of the Small Company Stock Portfolio, will receive from the Dreyfus Variable
Investment Fund monthly compensation with respect to the Small Company Stock
Portfolio that it advises at an annual rate of 0.75 percent of average daily net
assets. Fayez Sarofim & Co. acts as sub-investment adviser to the Capital
Appreciation Portfolio and will receive from The Dreyfus Corporation and not the
Dreyfus Variable Investment Fund, .20% of the first $150 million of average
daily net assets, .25% of the next $150 million of average daily net assets, and
.375% of the average daily net assets $300 million or more. The portfolios of
the Dreyfus Variable Investment Fund bear the operating expenses of the
portfolios.
The Dreyfus Corporation acts as investment adviser to the Dreyfus Stock
Index Fund. Dreyfus Corporation, as investment adviser to the Dreyfus Stock
Index Fund, will receive from the Dreyfus Stock Index Fund monthly compensation
at an annual rate of 0.245 percent of the average daily net assets. The Dreyfus
Stock Index Fund bears the operating expenses of the Fund.
The fees and expenses set forth above are in addition to the fees and
charges imposed by the Policy. These fees and expenses of the Policy are
detailed beginning at page 34. The chart on page 37 provides information as to
the fees and expenses of each of the Funds which has been provided by the
respective Fund. None of the Funds imposes a 12b-1 fee.
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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 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 Board of Directors of the Company, the MONY Series Fund,
the Price Equity Series, the Price Fixed Income Series and the Price
International Series, the Dreyfus Stock Index Fund, and the Board of Trustees of
the Accumulation Trust, the Dreyfus Variable Investment Fund, and the Van Eck
Trust and the Boards of Directors or Trustees of 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' PROSPECTUS 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 PRIME RESERVE PORTFOLIO
The investment objective of the Prime Reserve Portfolio is to seek
preservation of capital, liquidity, and the highest possible income consistent
with these goals. The Prime Reserve Portfolio attempts to achieve this objective
by investing in money market securities. Price Fixed Income Series offers this
portfolio.
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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, US
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 BOND PORTFOLIO
The investment objective of the Intermediate 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, US 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 LIMITED TERM BOND PORTFOLIO
The investment objective of the Limited Term Bond Portfolio is to provide a
high level of income consistent with moderate fluctuation in principal value.
The Portfolio seeks to achieve this objective by investing primarily in
investment-grade corporate bonds. The Price Fixed Income Series 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, US Government obligations, and money market instruments, together
having a dollar-weighted average life of more than 8 years. MONY Series Fund
offers this portfolio.
THE WORLDWIDE BOND FUND
The investment objective of the Worldwide Bond Fund is to seek high total
return through a flexible policy of investing globally, primarily in debt
securities. The Van Eck Trust offers this fund.
THE STOCK INDEX FUND
The investment objective of the Stock Index Fund is to provide investment
results that correspond to the price and yield performance of publicly traded
stocks in the aggregate, as represented by the Standard & Poor's 500 Composite
Stock Price Index. The Dreyfus Stock Index Fund offers this fund.
THE EQUITY INCOME PORTFOLIO
The investment objective of the Equity Income Portfolio is to provide
substantial dividend income and also long-term capital appreciation. The Price
Equity Series 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 to
provide long-term capital growth consistent with the preservation of capital;
current income is a secondary goal. The Dreyfus Variable Investment Fund offers
this portfolio.
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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 PERSONAL STRATEGY BALANCE PORTFOLIO
The investment objective of the Personal Strategy Balanced Portfolio is to
provide the highest total return over time consistent with an emphasis on both
capital appreciation and income. The Portfolio seeks to achieve this investment
objective by investing in a diversified portfolio of stocks, bonds, and money
market securities determined by the portfolio manager's outlook for the economy
and the financial markets. The Price Equity Series offers this portfolio.
THE MID-CAP GROWTH PORTFOLIO
The investment objective of the Mid-Cap Growth Portfolio is to provide
long-term capital appreciation by investing primarily in common stocks of medium
sized (mid-cap) growth companies. The Price Equity Series offers this portfolio.
THE NEW AMERICA GROWTH PORTFOLIO
The investment objective of the New America Growth Portfolio is to provide
long-term capital growth by investing primarily in common stocks of U.S. growth
companies operating in service industries. The Price Equity Series offers this
portfolio.
THE SMALL CAP PORTFOLIO
The Small Cap 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 SMALL COMPANY STOCK PORTFOLIO
The investment objective of the Small Company Stock Portfolio is to provide
investment results that are greater than the total return performance of
publicly-traded common stocks in the aggregate, as represented by the Russell
2500(TM) Index. This Portfolio invests primarily in a portfolio of equity
securities of small- to medium-sized domestic issuers, while attempting to
maintain volatility and diversification similar to the Russell 2500(TM) Index.
The Dreyfus Variable Investment Fund 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 INTERNATIONAL STOCK PORTFOLIO
The investment objective of the International Stock Portfolio is to provide
capital appreciation through investment primarily in established companies based
outside the United States. The Price International Series offers this portfolio.
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THE WORLDWIDE EMERGING MARKETS FUND
The investment objective of the Worldwide Emerging Markets Fund is to seek
long-term capital appreciation by investing primarily in equity securities in
emerging markets around the world, The Van Eck Trust offers this fund.
THE WORLDWIDE HARD ASSETS FUND
The investment objective of the Worldwide Hard Assets Fund (formerly the
Gold and Natural Resources Fund) is to seek long-term capital appreciation by
investing in equity and debt securities of companies engaged, directly or
indirectly, to a significant extent in the exploration, development, production,
or distribution of one or more of the following: (i) precious metals; (ii)
ferrous and non-ferrous metals; (iii) gas, petroleum, petrochemicals or other
hydrocarbons; (iv) forest products; (v) real estate; and (vi) other basic
non-agricultural commodities. Income is a secondary consideration. The Van Eck
Trust offers this fund.
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.
The trademarked terms "Standard & Poor's 500" and "S&P 500" are trademarks of
The McGraw Hill Companies, Inc The trademarked term "Russell 2500(TM) Index" is
a trademark of Frank Russell Company. The Dreyfus Stock Index Fund and the
Dreyfus Variable Investment Fund are not sponsored, endorsed, sold, or promoted
by The McGraw Hill Companies, Inc. or Frank Russell Company.
THE POLICY
The variable life insurance benefits of the Policies are funded through the
Policy Owner's Account 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 a flexible premium variable life insurance contract that
provides insurance on the life of an Insured. A Policy may be sold together with
other related Policies forming a Case. A Policy may be owned individually, or by
a corporation, trust, association, partnership or similar organization. As such
it is designed to meet the needs of individuals and for corporations that wish
to purchase life insurance benefits on the lives of key employees. Each
applicant wishing to purchase 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. Except for policies offered to residents of, or issued for delivery in, the
State of Maryland, a Policy can be issued on the life of an Insured not less
than Age 18 up to and including Age 80 with evidence of insurability
satisfactory to the Company. The Insured's Age is calculated as of the Insured's
birthday nearest 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 Target Death Benefit is generally $100,000. The minimum
Specified Amount is $100,000, although the Specified Amount may be reduced to
$50,000 if at least $50,000 face amount of Term Insurance Rider is added to the
Policy. However, the Company also reserves the right to revise its rules from
time to time to specify a different minimum Specified Amount and Target Death
Benefit 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
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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 a specified amount of premium is paid with the application for a Policy,
temporary term coverage may be available prior to the time that coverage under
the Policy takes effect. Temporary term coverage is subject to the terms and
conditions described in the application for the Policy.
During the period of temporary term coverage, premiums paid with the
application 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 2.75 percent per year (or such higher
rate as may be required by the state in which the Policy is issued.) If the
Policy is issued and accepted, these amounts will be applied to the Policy.
Premiums will be returned with interest to the applicant within 5 days after the
date the Company sends notice to the applicant declining to issue any Policy on
the Insured. Premiums will be returned without interest to the applicant in
certain instances where the applicant refuses the Policy prior to completion of
the underwriting process or if the Company declines to issue any Policy on the
Insured where any required medical exams are not completed on a timely basis.
See the Policy for details.
INITIAL PREMIUM PAYMENT
If the application is approved and the Policy is subsequently issued, the
balance due (if any) of the first Scheduled Premium, 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 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 be transferred to the
Money Market Subaccount of the Variable Account on the Policy Release Date
pending expiration of the applicable Free Look Period. After such transfer, the
monthly deduction due prior to or on the Policy Release Date will be made. Upon
expiration of the Free Look 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 -- Free Look Period," page 19.)
POLICY DATE
If a specific Policy Date for the Policies forming a Case has been
requested which is later than the Policy Release Date, the amount attributable
to any such Policy will be initially held in the General Account until the
Policy Date. On the Policy Date, the amount attributable to a Policy less any
deductions from premiums for the period commencing with the Policy Date will be
transferred to the Money Market Subaccount pending expiration of the applicable
Free Look Period. Upon the expiration of the applicable Free Look Period,
amounts allocated to the Subaccounts 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 -- Free Look Period," page 19.
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 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.
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<PAGE> 31
RISK CLASSIFICATION AND EVIDENCE OF INSURABILITY
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 use the medical or
paramedical underwriting method, which may require a medical examination of a
proposed Insured, for any contract that does not meet the Company's guaranteed
issue standards. Guaranteed issue underwriting may be used when deemed
appropriate by the Company. See "Charges and Deductions -- Cost of Insurance,"
page 35.
RIGHT TO EXAMINE A POLICY -- FREE LOOK PERIOD
The Free Look Period follows the application for a Policy and its issuance
to the Policy Owner. The period runs to the latest of the date which is (a) 45
days after Part I of the application is signed, (b) 10 days (or longer in
certain states) after the Policy Owner receives the Policy or (c) 10 days after
the Company mails or personally delivers a notice of withdrawal right to the
Policy Owner. During the Free Look Period, the Policy Owner may cancel the
Policy and receive a refund of the full amount of the premium paid. During the
Free Look Period, net premiums will be allocated to the Money Market Subaccount,
which invests in the Money Market Portfolio of the MONY Series Fund. See
"Allocation of Net Premiums," page 21.
PREMIUMS
The Policy is a flexible premium Policy, which allows the Policy Owner to
determine, subject to the limitations described below, the amount and frequency
of premium payments.
CASE PREMIUMS
Generally, the Company will not issue a Policy unless the sum of the
premiums to be received by the Company in the first Policy year for the Policy
and any other Policies representing a Case equal or exceed $100,000. The Company
may, in its sole discretion, allow a reduced minimum Case premium in Cases which
meet our rules for exceptions.
PREMIUM FLEXIBILITY
The Company requires a Policy Owner to pay an amount equal to at least one
fourth the Minimum Annual Premium to place a Policy in force. If the premiums
are to be paid less often than annually, the premium required to place the
Policy in force is equal to the lesser of the Minimum Annual Premium divided by
the frequency of Scheduled Premiums, or 25% of the Minimum Annual Premium. This
Minimum Annual 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 35), and underwriting class of the Insured, and any
Riders added to 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.
SCHEDULED PREMIUMS
When applying for a Policy, a Policy Owner will determine a Scheduled
Premium 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 amount on either an annual, semiannual,
quarterly or monthly basis, at the option of the Policy Owner. After the Minimum
Annual Premium has been paid, the minimum Scheduled Premium for any Policy is
equal to $100. Although reminder notices will be sent, the Policy Owner may not
be required to pay Scheduled Premiums.
Payment of the Scheduled Premiums 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 Account Value less Outstanding Debt. Even if the Scheduled
Premiums are paid, if the Guaranteed Death Benefit provision does not apply, the
Policy will lapse any time the Account
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Value less Outstanding Debt is insufficient to pay the current monthly deduction
and a Grace Period expires without sufficient payment.
CHOICE OF DEFINITION OF LIFE INSURANCE TESTS
When applying for the Policy, the Policy Owner will choose which of the two
tests for compliance with the Federal tax law definition of life insurance will
apply to the Policy. These tests are the Cash Value Accumulation Test and the
Guideline Premium/Cash Value Corridor Test. See "Federal Income Tax
Considerations -- Definition of Life Insurance," page 39. The Death Benefit
Percentage applied to the Policy varies according to the definition of life
insurance chosen. If the Guideline Premium/Cash Value Corridor Test is chosen,
the Death Benefit Percentage varies according to the attained Age of the
Insured. See Appendices A and B. If the Cash Value Accumulation Test is chosen,
the Death Benefit Percentage varies according to the attained Age, gender
(unless unisex cost of insurance rates apply) and smoking status of the Insured.
See Appendices C, D, E, and F.
If the Guideline Premium/Cash Value Corridor Test is chosen, premium
payments that may be made for the death benefit of the Policy may be limited. On
the other hand, if the Cash Value Accumulation Test is chosen, premiums are not
limited for the death benefit of the Policy. Generally speaking, however, the
Cash Value Accumulation Test may require higher amounts of death benefit in the
future compared to the Guideline Premium/Cash Value Corridor Test, since the
Death Benefit Percentage related to the Cash Value Accumulation Test is greater
than that of the Guideline Premium/Cash Value Corridor Test. This may ultimately
translate into higher cost of insurance charges in the future which may reduce
the long-term performance of the Policy.
GUARANTEED DEATH BENEFIT RIDER PREMIUMS
When application for the Policy is made, the applicant will also have the
opportunity to elect the Guaranteed Death Benefit Rider, which may extend the
period that the Specified Amount of the Policy will remain in effect. An extra
charge will be deducted from the Account Value each month and premiums at least
equal to the cumulative Monthly Guarantee Premium must have been paid. See
"Guaranteed Death Benefit Rider," page 26.
If on each Monthly Anniversary Day the Account Value exceeds Outstanding
Debt, the Guaranteed Death Benefit Rider will keep the Policy in force to the
Maturity Date provided that the cumulative Monthly Guarantee Premium due to date
has been paid. The Monthly Guarantee Premium 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 (including the cost of Term
Insurance Rider, if any). For Policies with no Rider coverage other than the
Guaranteed Death Benefit Rider, the Monthly Guarantee Premium times 12 will be
equal to the guideline annual premium for Death Benefit Option I determined in
accordance with the Federal income tax law definition of life insurance. See
"Federal Income Tax Considerations -- Definition of Life Insurance," page 39.
Adding other optional insurance benefits by Rider to the Policy will increase
the Monthly Guarantee Premium above those indicated.
It is important to consider the Guaranteed Death Benefit Rider premium
requirements when setting the amount of the Scheduled Premium for the Policy.
The Guaranteed Death Benefit Rider is not available on Policies offered or
issued for delivery to residents of the Commonwealth of Massachusetts or the
State of 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 41.
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<PAGE> 33
UNSCHEDULED PREMIUM PAYMENTS
Generally, the Policy Owner can make unscheduled premium payments at any
time and in any amount as long as each payment is at least $250. 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, or upon
acceptance of the premium would be, equal to a Policy Owner's Cash 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 22
and "Federal Income Tax Considerations -- Definition of Life Insurance," page
39. 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 Guideline Premium/Cash Value
Corridor Test under Federal income tax law definition of life insurance, if
applicable.
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 Account Value as a Scheduled Premium
Payment. 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.
PREMIUM PAYMENTS AFFECT THE CONTINUATION OF THE POLICY
If premium payments are stopped, temporarily or permanently, the Policy
will continue in effect until the Account Value less any Outstanding Debt can no
longer cover the monthly deductions from the Account 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 33. If the Guaranteed Death Benefit
Rider is in effect, the Specified Amount of the Policy will remain in force
until the Maturity Date if premium payments required by the Rider have been made
and Account Value exceeds Outstanding Debt. See "Guaranteed Death Benefit
Rider," page 26.
Certain charges will be deducted from each premium payment. See "Charges
and Deductions," page 34. 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 Free Look Period, net premiums will be
allocated to the Money Market Subaccount, which invests in the Money Market
Portfolio of the MONY Series Fund. The Account Value related to the net premiums
will be automatically allocated according to the Policy Owner's instructions
contained in the application at the end of the Free Look Period. Net premiums
received after the Free Look 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. If instructions for
allocation of premiums are not included in the application or are incomplete,
all allocations will be made to the Money Market Subaccount until a subsequent
notification of allocation percentages is received.
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 available Subaccounts and
the Guaranteed Interest Account.
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<PAGE> 34
A Policy Owner may change the allocation of net premiums at any time by
submitting a proper written request to the Customer Service Center. The revised
allocation percentages will be applied within seven days from receipt of
notification.
Unscheduled premium payments may be allocated 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. The death
benefit consists of a "Specified Amount" of insurance coverage and, if desired,
an additional amount of insurance coverage which is added by Term Insurance
Rider. The amount of the Term Insurance Rider is defined by the Target Death
Benefit. The Specified Amount is level until the Maturity Date unless changed by
the Policy Owner. The Target Death Benefit can be scheduled at issue in level,
increasing or decreasing amounts over the lifetime of the Insured. The minimum
Target Death Benefit is generally $100,000. The minimum Specified Amount is
$100,000, although the Specified Amount may be reduced to $50,000 if at least
$50,000 of Term Insurance Rider is added to the Policy. The Target Death Benefit
and the Specified Amount will be shown on the specifications page of the Policy.
As described below, over time the Base Death Benefit may vary from the
Specified Amount. This may result from the operation of a death benefit Option,
increases to comply with the Federal income tax law definition of life
insurance, changes in the death benefit Option or increases or decreases
requested by the Policy Owner.
The Term Insurance Rider provides term insurance coverage which adjusts
automatically to equal the difference between the Target Death Benefit and the
Base Death Benefit. The Term Insurance Rider does not have a separate premium;
the cost is included in the monthly deductions discussed below. See "Term
Insurance Rider," page 27.
For so long as the Policy remains in force, the Company will, upon proof of
the death of an Insured, pay the death benefit proceeds to the named
Beneficiary. Death benefit proceeds will consist of the Base Death Benefit under
the Policy, plus any amount provided by the Term Insurance Rider, reduced by any
Outstanding Debt (and, if in the Grace Period, further reduced by any overdue
charges). 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.
DEATH BENEFIT OPTIONS
Each Policy Owner may select one of two death benefit Options: Option I, or
Option II. Generally the applicant designates the death benefit Option in the
application. Subject to certain restrictions, the Policy Owner can change the
death benefit Option selected. So long as the Policy remains in force, the Base
Death Benefit under any Option will never be less than the Specified Amount of
the Policy, as adjusted from time to time.
OPTION I
Under Option I, the Base Death Benefit will be equal to the Specified
Amount of the Policy on the date of death plus the increase, if any, in the
Account Value since the last Monthly Anniversary Day, or, if greater, the Cash
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, if the Cash
Value Accumulation Test is chosen, the smoking status and gender (except for
unisex Policies) of the Insured) and the choice of definition of life insurance
test chosen by the Policy Owner at the time of application for the Policy, 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 39.
Policy Owners who are seeking to have favorable investment performance reflected
in increasing Account Value, and not in increasing insurance coverage should
choose Option I.
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<PAGE> 35
OPTION II
Under Option II, the Base Death Benefit will be equal to the Specified
Amount of the Policy plus the Account Value on the date of death, or, if
greater, the Cash 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 I. The death benefit under Option II will vary as Account Value
varies. Therefore, Policy Owners who seek to have favorable investment
performance reflected in increased insurance coverage should choose Option II.
Federal income tax law requires the Base Death Benefit to be at least as
great as the Cash Value times a Death Benefit Percentage which is defined in the
law. These percentages are determined based upon the Insured's Age and premium
class at any point in time as well as the test for compliance selected in the
original application for this Policy. See "Federal Income Tax
Considerations -- Definition of Life Insurance," page 39. We will adjust the
Base Death Benefit if necessary to qualify the death benefit of the policy as
life insurance under the applicable provisions of the Federal income tax laws in
existence at the time the Policy is issued.
In addition, the Policy Owner has the option at issue to select an
alternate Death Benefit Percentage that may produce a higher Base Death Benefit
amount beginning the later of the Insured's age 55 or 10 years following Policy
issue. This alternate Death Benefit Percentage grades back to the Federal income
tax law Death Benefit Percentage at the Maturity Date. Use of the alternate
Death Benefit Percentage results in a higher ratio of Base Death Benefit to
Account Value than that resulting from the use of the IRS' Death Benefit
Percentage beginning the later of the Insured's age 55 or 10 years following
Policy issue. This higher percentage then gradually reduces until, by the
Maturity Date, it is equal to the ratio produced by the use of the IRS' Death
Benefit Percentage. Although use of the alternate Death Benefit Percentage
results in a higher Base Death Benefit than the IRS' Death Benefit Percentage,
this higher Base Death Benefit results in higher cost of insurance charges which
has the effect of reducing the Account Value and consequently future Base Death
Benefits. The election of the alternate Death Benefit Percentage may be
eliminated at any time; once eliminated, it cannot be reinstated. (See Appendix
B, E, and F for alternate death benefit percentages.)
CHANGES IN DEATH BENEFIT OPTION
A Policy Owner may request that the death benefit under the Policy be
changed from Option I to Option II, or from Option II to Option I. Changes in
the death benefit Option may be made on any Monthly Anniversary Day and should
be made in writing to the Customer Service Center. A change from Option II to
Option I may be made without evidence of insurability; a change from Option I to
Option II 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 Option from Option I to Option II is
accomplished by reducing the Specified Amount of the Policy by the amount of the
Policy's Account Value at the date of the change. This maintains the Base Death
Benefit payable under Option II at the amount that would have been payable under
Option I immediately prior to the change. Although there is no immediate change
in the Base Death Benefit, the change to Option II will affect the determination
of the Base Death Benefit from that point on since the Account Value will then
be added to the new Specified Amount, and the Base Death Benefit will then vary
with Account Value. This change will not be permitted if it would result in a
new Specified Amount of less than the minimum the Company requires to issue the
Policy at the time of the change.
A change in the death benefit Option from Option II to Option I is
accomplished by increasing the Specified Amount of the Policy. The new Specified
Amount will be an amount equal to the Specified Amount before the change plus
the Account Value on the date of the change. From that point on, the Base Death
Benefit will be based on the new Specified Amount. Although the Base Death
Benefit at the time of the Option change remains the same, the change from
Option II to Option I will generally reduce the Base Death Benefit in the future
below the amount that would have been payable under Option II.
Although these increases and decreases in the Specified Amount are made so
that the Base Death Benefit remains the same on the date of the change, the
change in Option may affect the monthly cost of insurance
24
<PAGE> 36
charge in the future since this charge varies with the Net Amount at Risk, which
generally is the amount by which the Base Death Benefit exceeds Account Value.
See "Cost of Insurance," page 35. Assuming that the Policy's Base Death Benefit
is not based on the Death Benefit Percentage under either Option, changing from
Option II to Option I will generally decrease the future Net Amount at Risk, and
therefore decrease the prospective cost of insurance charges. Changing from
Option I to Option II will generally result in a Net Amount at Risk that remains
level in the future. 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 DEATH BENEFIT AMOUNTS
The Target Death Benefit and Specified Amount of a Policy may be increased
or decreased after issue, subject to the rules defined below. Increases and
decreases may be scheduled at issue ("scheduled increases" or "scheduled
decreases", respectively) or may be requested after issue by the Policy Owner
("unscheduled increases" or "unscheduled decreases", respectively). Scheduled
increases or decreases will be effective on the requested date. Any request for
an unscheduled increase or decrease in death benefits must be made by written
application to the Customer Service Center. Unscheduled increases or decreases
will become effective on the Monthly Anniversary Day which follows the Company's
approval of the requested change. A change in death benefit amounts may be made
at any time, provided that increases in death benefits are not permitted on or
after the Insured's Age 81. Any change in death benefits may not be for an
amount less than $10,000.
SCHEDULED INCREASES IN DEATH BENEFITS
Increases in the Target Death Benefit may be scheduled at the time of
application for the Policy or made at the time of an application for an
Unscheduled Increase. Scheduled increases in the Specified Amount are not
allowed, therefore the entire increase in the Target Death Benefit will be
reflected as an increase in the amount of Term Insurance Rider. Since these
increases are scheduled (and therefore underwritten) at issue, evidence of
insurability will not be required at the time of the increase. Scheduled
increases do not create new coverage segments. See "Unscheduled Increases in
Death Benefits," below.
UNSCHEDULED INCREASES IN DEATH BENEFIT
A Policy Owner may request an unscheduled increase in the Target Death
Benefit or Specified Amount of a Policy at any time prior to the Insured's Age
81 (at any time prior to the Insured's Age 65 for Policies which have been
issued on a guaranteed issue basis) subject to approval from the Company.
Additional evidence of insurability satisfactory to the Company will be required
for an increase. An unscheduled increase will not be given for increments of
less than $10,000.
An unscheduled increase in the Specified Amount will increase the Target
Death Benefit by an equal amount so the Term Insurance Rider amount will remain
unchanged after the increase. An unscheduled increase in the Target Death
Benefit may consist of any combination of increases in Specified Amount and/or
Term Insurance Rider. Unless otherwise indicated, any request for an unscheduled
increase to the Target Death Benefit will be assumed to also be a request for an
increase to the Specified Amount so that the amount of Term Insurance Rider, if
included on the Policy at the time of the increase, will not change.
An unscheduled increase in the death benefits will create a new "coverage
segment" for which cost of insurance and other charges will be computed
separately. See "Charges and Deductions," page 34. In addition, if the Specified
Amount is increased, additional Sales Charges associated with the Policy will be
incurred. The Sales Charge for the increase in Specified Amount is calculated in
a similar manner as for the original Specified Amount. The Target Premiums, and
the required premiums under the Guaranteed Death Benefit Rider, if applicable,
will also be adjusted prospectively to reflect the increase in death benefits.
If the death benefits are increased at the same time that a premium payment is
received, the increase will be processed before the premium payment is
processed.
If an unscheduled increase creates a new coverage segment of Specified
Amount, premiums paid after the increase will be allocated to the original and
the new coverage segments in the same proportion that the
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<PAGE> 37
guideline annual premiums defined by the Federal income tax laws for each
segment bear to the sum of the guideline annual premiums for all segments.
Increases in Specified Amount resulting from a change in death benefit
Option do not create new coverage segments, rather, they increase the size of
the oldest coverage segments of Specified Amount. Therefore, cost of insurance
and other charges are not computed separately for increases resulting from a
death benefit Option change.
Increasing the Specified Amount will generally increase the Base Death
Benefit of the Policy. The amount of change in the Base Death Benefit will
depend, among other things, upon the death benefit Option chosen by the Policy
Owner and whether the Base Death Benefit under the Policy is being calculated
using a Death Benefit Percentage at the time of the change. Changing the
Specified Amount could affect the subsequent level of the Base 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.
DECREASES IN DEATH BENEFITS
Any decrease in death benefits (whether scheduled or unscheduled) will
reduce the Target Death Benefit of the Policy and may reduce the Specified
Amount. Decreases due to a death benefit Option change will not reduce the
Target Death Benefit but may reduce the Specified Amount. Any decrease, not
associated with an Option change, will first be applied to reduce the coverage
segments of Term Insurance Rider associated with the most recent increases, then
the next most recent increases successively, and finally to the original
coverage segment of Term Insurance Rider. After all coverage segments of Term
Insurance Rider have been entirely eliminated, then coverage segments of the
Specified Amount will be reduced in a similar order. Any decrease associated
with an Option change will maintain the net amount at risk for each coverage
layer at the time of the change. A decrease other than one related to a Partial
Surrender or death benefit Option change will not be permitted if less than
$10,000. In addition, no transaction will be permitted if the Specified Amount
would fall below the minimum we require to issue the Policy at the time of the
reduction.
The required premiums under the Guaranteed Death Benefit Rider, if
applicable, will be adjusted for the decrease in death benefits. If the Target
or Specified Amount is decreased, Target premiums will also be adjusted for the
decrease. If the death benefits are decreased at the same time that a premium
payment is received, the decrease will be processed before the premium payment
is processed.
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 Account Value for compliance with the guideline premium limitations,
and the amount of such payments would exceed the Account 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 39.
Decreasing the Specified Amount will generally decrease the Base Death
Benefit. The amount of change in the Base Death Benefit will depend, among other
things, upon the death benefit Option chosen by the Policy Owner and whether the
Base Death Benefit under the Policy is being calculated using a Death Benefit
Percentage at the time of the change. Changing the Specified Amount could affect
the subsequent level of the Base Death Benefit while the Policy is in force and
the subsequent level of Policy values. For example, a decrease in Specified
Amount may decrease the Net Amount at Risk, which will decrease a Policy Owner's
cost of insurance charges over time.
GUARANTEED DEATH BENEFIT RIDER
Generally, the length of time the Policy remains in force depends on the
Account Value less Outstanding Debt. Because the charges that maintain the
Policy are deducted monthly from the Account Value, coverage
26
<PAGE> 38
will last as long as the Account Value less Outstanding Debt is sufficient to
pay these charges. See "Grace Period and Lapse," page 33. 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
Account 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 elect the Guaranteed Death Benefit Rider, which may extend to the
Maturity Date the period that the Specified Amount of the Policy will remain in
effect if the Subaccounts suffer adverse investment experience. Premiums
required by the Rider vary depending on the Specified Amount as well as other
factors. See "Guaranteed Death Benefit Rider Premiums," page 20.
Determination as to whether the Guaranteed Death Benefit Rider will remain
in effect is made as follows: On each Monthly Anniversary Day, two tests will be
performed: under the first test Account Value must exceed Outstanding Debt; and
under the second test (i) the actual premiums paid, less the amount of any
Partial Surrenders (and any fees imposed as a result of the Partial Surrender)
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
either test on any Monthly Anniversary Day, the Guaranteed Death Benefit Rider
will enter a grace period, and unless sufficient payment is received by the
Company, the Rider will lapse. See "Grace Period and Lapse -- If Guaranteed
Death Benefit Rider Is in Effect," page 34. Once it has lapsed, the Guaranteed
Death Benefit Rider can not be reinstated. Thereafter the normal test for lapse
will apply.
Coverage provided by the Term Insurance Rider and any amount by which the
Base Death Benefit exceeds the Specified Amount are not protected by the
Guaranteed Death Benefit Rider.
There is a charge for the Guaranteed Death Benefit Rider. See "Guaranteed
Death Benefit Charge," page 37. This charge will end if at any time the Policy
fails the monthly tests.
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 or
issued for delivery to residents of the Commonwealth of Massachusetts or the
State of 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. 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 41. 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 that listed
below. Contact an insurance agent authorized to sell the Policy for a complete
list of the Riders available.
TERM INSURANCE RIDER
The Policy can be issued with a Term Insurance Rider as a portion of the
total death benefit. This Rider provides term life insurance on the life of the
Insured, which is annually renewable to attained Age 95. As described below, the
amount of the coverage provided under the Rider varies over time.
At issue, a schedule of death benefit amount called the "Target Death
Benefit" is established. The Target Death Benefit may be varied as often as each
Policy year, and, subject to the Company's rules, may be changed after issue.
See "Death Benefits Under the Policy," page 22.
The amount of Term Insurance Rider in force at any time is equal to the
difference between the scheduled Target Death Benefit and the Base Death Benefit
in effect. The Rider is dynamic in that it adjusts
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<PAGE> 39
for variations in the Base Death Benefit under the Policy (e.g., changes
resulting from the Federal income tax law definition of life insurance). The
Company generally restricts the amount of the Target Death Benefit at issue to
an amount not more than 900% of the Specified Amount. For example, if the
Specified Amount is $100,000 then the maximum amount of Target Death Benefit
allowed is $900,000.
For example, assume the Base Death Benefit varies according to the
following schedule. The Term Insurance Rider will adjust to provide death
proceeds equal to the Target Death Benefit each year:
<TABLE>
<CAPTION>
BASE DEATH BENEFIT TARGET DEATH BENEFIT TERM INSURANCE RIDER AMOUNT
- - ------------------ -------------------- ---------------------------
<S> <C> <C>
$500,000 $550,000 $50,000
$501,500 $550,000 $48,500
$501,250 $550,000 $48,750
</TABLE>
Since the Term Insurance Rider is dynamic, it is possible that the Rider
may be eliminated entirely as a result of increases in the Base Death Benefit.
Using the above example, if the Base Death Benefit grew to $550,000, the Term
Insurance Rider would be reduced to zero. (It can never be reduced below zero.)
Even though the Rider amount is reduced to zero, the Rider will remain in effect
until it is removed from the Policy. Therefore, if the Base Death Benefit is
subsequently reduced below the Target Death Benefit, a Rider amount will
reappear as needed to maintain the Target Death Benefit at the requested level.
There is no defined premium for the Term Insurance Rider, instead, the cost
of the Rider is added to the monthly deductions, and is based on the Insured's
attained Age and premium class. The Company may adjust the rate charged for the
Rider from time to time, but the rate will never exceed the guaranteed cost of
insurance rates for the Rider for that Policy Year. The cost for the Rider is
added to the Company's calculation of the Monthly Guarantee Premium and to the
calculation of the Minimum Annual Premium.
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 Account Value of the Policy less
Outstanding Debt. Payment ordinarily will be made within seven days of the
Policy Anniversary, although payments may be postponed in certain circumstances.
See "Payments," page 49.
POLICY VALUES
ACCOUNT VALUE
The Account 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 Valuation Date, the portion of the Account Value allocated to any
particular Subaccount will be adjusted to reflect the investment experience of
that Subaccount. On each Monthly Anniversary Day, the portion of the Account
Value allocated to a particular Subaccount also will be adjusted to reflect the
assessment of the monthly deduction. See "Determination of Account Value," page
28. No minimum amount of Account Value is guaranteed. A Policy Owner bears the
risk for the investment experience of Account Value allocated to the
Subaccounts.
SURRENDER VALUE
The Owner can surrender a Policy at any time while the Insured is living
and receive its Cash Value less any Outstanding Debt. The Cash Value of the
Policy equals the Account Value plus any applicable refund of Sales Charges.
Thus, the Cash Value will exceed the Policy's Account Value by the refund amount
in the three years following Policy issuance. Once the refund of Sales Charges
has expired, the Surrender Value will equal the Account Value (less any
Outstanding Debt). See "Full Surrender," page 32.
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<PAGE> 40
DETERMINATION OF ACCOUNT VALUE
Although the death benefit under a Policy can never be less than the
Policy's Specified Amount, the Account Value will vary depending upon several
factors, including the investment performance of the Subaccounts to which
Account Value has been allocated, payment of premiums, the amount of any
Outstanding Debt, Partial Surrenders, and the charges assessed in connection
with the Policy.
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.
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 Surrenders, to
transfer amounts from a Subaccount (including transfers to the Loan Account),
upon a full surrender, and to pay the death benefit when the Insured dies. Units
are also redeemed to pay monthly deductions from the Policy's Account Value and
for Policy transaction charges. 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 request is received at the
Customer Service Center. If the premium or request reaches the Customer Service
Center on a day which is not a Valuation Date, or after the close of business on
a Valuation Date (that is, after 4:00 p.m. Eastern Time), the Transaction Date
will be the next succeeding Valuation Date. All Policy transactions are
performed as of a Valuation Date. If a Transaction Date or Monthly Anniversary
Day occurs on a day other than a Valuation Date (e.g., on a Saturday), the
calculation will take place on the next Valuation Date (e.g., on the following
Monday).
CALCULATING UNIT VALUES FOR EACH SUBACCOUNT
The Unit Value of a Subaccount on any Valuation Date is calculated by the
Company on every Valuation Date as follows:
1. Calculate the value of the shares of the Portfolio belonging to the
Subaccount as of the close of business that Valuation Date (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. Divide the resulting amount by the number of Units held in the
Subaccount on the Valuation Date before the purchase or redemption of any
Units on that Date.
The Unit Value of each Subaccount on its first Valuation Date was set at
$10.00.
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TRANSFER OF ACCOUNT VALUE
Account Value may be transferred after the Free Look Period among the
Subaccounts by the Policy Owner upon proper written request to the Customer
Service Center. 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 33. A charge of
$50 is imposed on Policy transfers in excess of twelve in any Policy year.
Account Value may also be transferred after the Free Look Period and within
specified limits from the Subaccounts to the Guaranteed Interest Account;
however, such a transfer will only be permitted in the Policy month following a
Policy Anniversary and the total amount allocated or transferred to the
Guaranteed Interest Account cannot exceed $250,000. Transfers from the
Guaranteed Interest Account to the Subaccounts are also restricted as described
in "The Guaranteed Interest Account," page 46.
POLICY OWNER SERVICES
The Company currently offers Policy Owners two services: Dollar Cost
Averaging and Automatic Rebalancing. These services may be terminated at any
time; Owners of Policies in force at the time of termination utilizing these
services will receive 30 days prior notice. There currently are no charges for
these services and any transfers as a result of the operation of these services
are not counted toward the limit of 12 transfers per Policy Year without a
transfer charge. If the Company elects to impose a charge for these services,
Owners of Policies in force at that time utilizing these services will receive
30 days prior notice. These services involve the sale of Units in one or more
Subaccounts and the purchase of Units in one or more other Subaccounts. This may
result in a loss of Account Value.
DOLLAR COST AVERAGING
Dollar Cost Averaging is available to Owners of Policies with at least
$5,000 of Account Value allocated to the Money Market Subaccount. The main
objective of Dollar Cost Averaging is to protect the Account Value from
short-term price fluctuations. Since under Dollar Cost Averaging the same dollar
amount is transferred to other Subaccounts each period, more units are purchased
in a Subaccount if the value per unit that period is low, and fewer units are
purchased if the value per unit that period is high. This plan of investing
keeps the Policy Owner from investing too much when the price of shares is high
and too little when the price of shares is low. There is no guarantee that this
service will generate a profit or avoid a loss.
If Dollar Cost Averaging is elected by completing and returning to the
Company at the Customer Service Center the form provided by the Company, a
designated dollar amount of Account Value will be transferred automatically from
the Money Market Subaccount to one or more other Subaccounts of the Variable
Account each period. Dollar Cost Averaging allocations may be made either
monthly or quarterly. (Dollar Cost Averaging transfers may not be made to the
Guaranteed Interest Account.) Dollar Cost Averaging may be terminated at a
designated date or when the Money Market Subaccount reaches a pre-defined
minimum balance.
Each transfer under Dollar Cost Averaging must be at least $250. Each
automatic monthly transfer will take place on the 10th day of each calendar
month; automatic quarterly transfers take place on the 10th day of the last
month of each calendar quarter. If Dollar Cost Averaging is elected at the time
of application, transfers will begin in the appropriate calendar month following
completion of the Free Look Period. If elected after issuance of the Policy,
transfers will begin in the appropriate calendar month which is at least 30 days
following our receipt of the request for Dollar Cost Averaging. If, at the time
of any transfer, the amount in the Money Market Subaccount is equal to or less
than the amount elected to be transferred, the entire remaining balance will be
transferred and Dollar Cost Averaging will end. The amount to be transferred or
the Subaccounts to which transfers are to be made may be changed once each
Policy year. Dollar Cost Averaging may be canceled at any time by sending notice
to our Customer Service Center which is received at the Center at least 10 days
before the next transfer date.
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If both Dollar Cost Averaging and Automatic Rebalancing are elected, Dollar
Cost Averaging will take place first. Automatic Rebalancing will begin only
after a monthly or quarterly Dollar Cost Averaging transfer has been completed.
AUTOMATIC REBALANCING
Automatic Rebalancing provides a method for maintaining a balanced approach
to allocating Account Values among Subaccounts and simplifies the process of
asset allocation over time.
Automatic Rebalancing may be elected when application for a Policy is made
or at any subsequent time by completing and returning to the Company at the
Customer Service Center the form provided by the Company. Automatic Rebalancing
matches Subaccount Account Value allocations over time to the most recently
filed allocation percentages for new premiums allocated to the Subaccounts. As
of the 10th day of the last month of each calendar quarter, the Company will
automatically re-allocate the amounts in each of the Subaccounts into which
premiums are allocated to match the premium allocation percentages. This will
rebalance Subaccount Account Values that may be out of line with the allocation
percentages indicated, which may result, for example, from Subaccounts which
underperform other Subaccounts in certain quarters. Allocations to the
Guaranteed Interest Account will not be rebalanced.
If Automatic Rebalancing is elected with the application, the first
transfer will occur on the 10th day of the last month of the calendar quarter
which begins after the end of the Free Look Period. If elected after Policy
issue, transfers will begin as of the 10th day of the last month of the calendar
quarter which follows the Company's receipt of notification at the Customer
Service Center.
The Automatic Rebalancing feature percentages may be adjusted by changing
the Policy's premium allocation percentages. If the Automatic Rebalancing
feature is active on a Policy and a premium allocation which does not meet the
Company's requirement is received, the Company will notify the Policy Owner that
the allocation must be changed; any such request will not be processed unless a
request for discontinuance of Automatic Rebalancing is received.
Automatic Rebalancing may be terminated at any time, so long as notice of
the termination is received at the Customer Service Center at least 10 days
prior to the next scheduled transfer.
If both Dollar Cost Averaging and Automatic Rebalancing are elected, Dollar
Cost Averaging will take place first. Automatic Rebalancing will begin only
after Dollar Cost Averaging has ended.
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. No charge will be imposed on the transfer in exercising this
exchange privilege. If the right to exchange is exercised, the restriction on
amounts which may be held in the Guaranteed Interest Account is waived, but the
limitations on transfers from the Guaranteed Interest Account to the Subaccounts
will continue. See "The Guaranteed Interest Account," page 46. The owner of a
Policy offered or issued for delivery in the State of Connecticut will have the
right to exchange the Policy for a policy made available by the Company at the
time, the cash values and death benefits of which are not dependent upon the
investment experience of a separate account.
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 Customer Service Center. A loan may be taken any time a Policy is in
force. The minimum loan that can be taken is $250 (except that the minimum loan
that can be taken on a Policy offered or issued for delivery in the State of
Connecticut is $200). The
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maximum amount that can be borrowed at any time is 90% of the Account Value of
the Policy less any Outstanding Debt. (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 accrued loan interest payable to the Company at any time.
Loan interest is payable at a guaranteed annual rate of 4.6%. Interest on a
Policy loan is accrued daily and is due for the Policy year on each Policy
Anniversary, until the Outstanding Debt is repaid. If interest is not paid when
due, it will be added to the principal 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 designated as loan or interest payments
will be treated as such. Loan repayments reduce the Outstanding Debt by the
amount of the payment. If a loan repayment is made which exceeds the Outstanding
Debt, the excess will be applied as a Scheduled Premium.
When a Policy Owner takes a loan, an amount equal to the loan is
transferred out of the Policy Owner's Account Value in the Subaccounts and the
Guaranteed Interest Account into the Loan Account to secure the loan. Loan
amounts will be deducted from the Subaccounts and the Guaranteed Interest
Account in the proportion that each bears to the Account Value less Outstanding
Debt. 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 daily with a fixed rate of interest equal to an
annualized rate of 4.0%. After the tenth Policy anniversary, the annual interest
rate that applies to the Loan Account is expected be 0.3% higher than otherwise
applicable.
Loan repayments release funds from the Loan Account. 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
allocation instructions for Scheduled Premium Payments, subject to the
limitation of maintaining no more than $250,000 in the Guaranteed Interest
Account. In addition, any interest earned on the amount held in the Loan Account
will be transferred each Policy Anniversary to each of the Subaccounts and
Guaranteed Interest Account on the same basis.
While the amount to secure the Outstanding Debt is held in the Loan
Account, the Policy Owner forgoes 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 Cash Value
paid upon surrender or maturity.
Outstanding Debt may affect the length of time the Policy remains in force.
Unless the Guaranteed Death Benefit Rider is in force, the Policy will lapse
when Account Value minus Outstanding Debt is insufficient to cover the monthly
deduction against the Policy's Account 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 Debt exists,
because the Outstanding Debt is not available to cover the monthly deduction. In
addition, the Guaranteed Death Benefit Rider may end if Outstanding Debt exceeds
the Account Value of the Policy. Additional payments or repayment of a portion
of Outstanding Debt may be required to keep the Policy or the Rider in force.
See "Grace Period and Lapse," page 33.
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. In the event that a Policy lapses or is
surrendered under circumstances where the Loan is effectively repaid from the
cash surrender value proceeds, such proceeds are includible in the amount
received by the Policy Owner for income tax purposes and may be partially or
fully taxable as ordinary income to the Policy Owner. For more information on
the tax treatment of loans, see "Federal Income Tax Considerations," page 39.
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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 Surrender Value on the date the surrender request is received, which is
equal to its Account Value plus any applicable refund of Sales Charge, reduced
by any Outstanding Debt.
A Policy Owner may surrender a Policy by sending a written request together
with the Policy to the Customer Service Center. 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 49. For information on the tax effects of a
surrender of a Policy, see "Federal Income Tax Considerations," page 39.
PARTIAL SURRENDER
A Partial Surrender allows the Policy Owner to obtain a portion of the
Account Value of the Policy without having to surrender the Policy in full. A
Partial Surrender may be made after the first Policy anniversary. There is
currently no limit on the number of Partial Surrenders allowed in a Policy year,
but the Company reserves the right to limit the number of Partial Surrenders to
12 per year.
A Partial Surrender must be for at least $500 (plus the applicable fee),
and the Policy's Account Value less Outstanding Debt after the Partial Surrender
must be at least $500 of Account Value less Outstanding Debt. In addition, the
Partial Surrender must not reduce the Target Death Benefit or Specified Amount
at the time of the reduction below the minimum we require to issue the Policy.
The Policy Owner may make a Partial Surrender by submitting a proper
written request to the Customer Service Center. As of the effective date of any
Partial Surrender, the Policy Owner's Account Value and Surrender Value will be
reduced by the amount surrendered (plus the applicable fee). The amount of the
Partial Surrender (plus the applicable fee) will be deducted proportionately
from the Policy Owner's Account Value in the Subaccounts and the Guaranteed
Interest Account.
When a Partial Surrender is made on a Policy on which the Owner has
selected death benefit Option I, the Target Death Benefit and the Base Death
Benefit are generally reduced by the amount of the Partial Surrender (plus the
amount of the Partial Surrender fee). The Specified Amount under the Policy is
decreased by the lesser of (i) the amount of the Partial Surrender or (ii) if
the Base Death Benefit prior to the Partial Surrender is greater than the
Specified Amount, the amount, if any, by which the Specified Amount exceeds the
difference between the Base Death Benefit less the amount of the Partial
Surrender. The Target Death Benefit under the policy is reduced by the lesser of
(1) the amount of the Partial Surrender or (2) if the Base Death Benefit prior
to the Partial Surrender is greater than the Target Death Benefit, the amount,
if any, by which the Target Death Benefit exceeds the difference between the
Base Death Benefit and the amount of the Partial Surrender.
When a Partial Surrender is made on a Policy on which the Owner has
selected death benefit Option II, the Target Death Benefit is generally reduced
by the amount of the Partial Surrender (plus the amount of the Partial Surrender
fee). The Partial Surrender will not change the Specified Amount of the Policy.
However, assuming that the Base Death Benefit under Option II is not equal to
Cash Value times the applicable Death Benefit Percentage, the Partial Surrender
will reduce the Base Death Benefit by the amount of the Partial Surrender. If
the Option II death benefit is based upon the Cash Value times the Death Benefit
Percentage, a Partial Surrender may cause the Base Death Benefit to decrease by
an amount greater than the amount of the Partial Surrender. The Target Death
Benefit under the policy is reduced by the lesser of (1) the amount of the
Partial Surrender or (2) if the Base Death Benefit prior to the Partial
Surrender is greater than the Target Death Benefit, the amount, if any, by which
the Target Death Benefit exceeds the difference between the Base Death Benefit
and the amount of the Partial Surrender. See "Death Benefits under the Policy,"
page 22.
A fee of $25 or 2% of the Partial Surrender amount, whichever is less, will
be assessed for each Partial Surrender. See "Charges and
Deductions -- Transaction and Other Charges", page 37.
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For information on the tax treatment of Partial Surrenders, see "Federal
Income Tax Considerations," page 39.
GRACE PERIOD AND LAPSE
In general, the Policy and all Riders attached to it will continue in force
as long as the Account Value less Outstanding Debt of the Policy is sufficient
to pay all the monthly deductions. The Policy will lapse only when the Account
Value less Outstanding Debt is insufficient to cover the current monthly
deduction against the Policy's Account Value on any Monthly Anniversary Day, and
a 61-day Grace Period expires without the Policy Owner making a sufficient
payment.
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 is required to be paid 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.
If the Account Value less Outstanding Debt 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 will then have a Grace Period of 61 days, measured from the date
the notice is sent, to make the required payment. The payment required is the
amount of the monthly deduction not paid plus not less than two succeeding
monthly deductions (or the number of monthly deductions remaining until the next
Scheduled Premium due date, if more than two), grossed up by the amount of the
deductions from premiums (see "Charges and Deductions -- Deductions from
Premiums," page 34). 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
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 and any Outstanding Debt.
IF GUARANTEED DEATH BENEFIT RIDER IS IN EFFECT
If the Guaranteed Death Benefit Rider is in effect and the tests for
continuation of the Rider have been met, the Specified Amount of the Policy will
not lapse even if the Account Value less Outstanding Debt is not sufficient to
cover all the deductions from the Account Value on any Monthly Anniversary Day.
See "Guaranteed Death Benefit Rider", page 26.
While the Guaranteed Death Benefit Rider is in effect, the Account Value of
the Policy may be reduced by monthly deductions, but not below zero. Any monthly
deductions which would reduce the Account Value below zero will be waived.
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The Guaranteed Death Benefit Rider will be terminated if the Policy does
not meet the monthly tests, as explained in "Guaranteed Death Benefit Rider",
page 26, and the payment required under the Rider is not made within the Grace
Period. The payment required is the amount of the cumulative Monthly Guarantee
Premiums not paid plus not less than two additional Monthly Guarantee Premiums
(or the number of Monthly Guarantee Premiums remaining until the next Scheduled
Premium due date, if more than two). 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 or
issued for delivery to residents of the Commonwealth of Massachusetts and the
State of 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 Surrender 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 three months after the date of
reinstatement; (v) payment of due and unpaid interest on Outstanding Debt to the
next succeeding Policy Anniversary Day, and (vi) the reinstatement fee.
When the Policy is reinstated, the Account Value will be equal to the
Account Value on the date of the lapse, subject to the following: (i) any
Outstanding Debt on the date of lapse must be paid or reinstated; and, (ii) no
interest on amounts held in the Company's Loan Account to secure Outstanding
Debt will be paid or credited between lapse and reinstatement. Reinstatement
will be effective as of the Monthly Anniversary Day on or preceding the date of
approval by the Company, and Account 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 allocation
instructions.
The Company charges a fee of $150 to process a reinstatement.
CHARGES AND DEDUCTIONS
The Policy provides for the deduction of certain charges and expenses upon
the payment of premiums and from Account Values of the Policy. These charges and
expenses are in addition to the expenses borne by the Funds, which are explained
at page 12.
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 Account Value. These
charges consists of the following items:
SALES CHARGE
The Company deducts a Sales Charge equal to 9% from each premium up to the
"Target Premium" paid in each year during the first ten Policy Years and during
the first ten Policy Years following an increase in Specified Amount. The Sales
Charge does not apply to premium amounts in excess of the Target Premium paid
during the first ten Policy years, nor any premium paid after the tenth Policy
year. The Sales Charge is guaranteed not to exceed these amounts.
The Target Premium is an amount equal to the maximum amount of premium
which may be paid for a death benefit Option I Policy without violating the
limits imposed by the Federal income tax law definition of a modified endowment
contract. See "Modified Endowment Contracts," page 41. The Target Premium is not
based on the Scheduled Premium. The Target Premium for the Policy and Specified
Amount coverage segments added since the Policy Date will be stated in the
Policy.
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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. To the extent that sales and
distribution expenses exceed Sales Charges, such expenses may be recovered from
other charges, including amounts derived indirectly from the charge for
mortality and expense risks and from mortality gains.
Upon a full surrender in the first three Policy years, if the Policy is not
in default, a portion of the Sales Charges previously deducted from premium
payments may be refunded. For Policies surrendered in the first Policy year, the
refund will be equal to the sum of all Sales Charge deductions in that Policy
year. For Policies surrendered in the second Policy year, the refund will be
equal to 66.67% of the Sales Charge deductions in the first Policy year. For
Policies surrendered in the third Policy year, the refund will be equal to
33.33% of the Sales Charges deductions in the first Policy year. No refund will
be paid if the Policy is in default.
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
the actual premium tax imposed in the applicable jurisdiction to pay these
premium taxes. Currently, these taxes range from 0% to 4%. The Company does not
expect to make a profit from this charge.
A charge currently equal to 1.25% 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 does not expect to make a profit from this charge.
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 or
to reflect any legislative changes in the applicable tax based on premiums. In
addition, if an insured person changes his or her place of residence, the
Company should be notified of the change. Any change in the tax rate will be
effective on the next policy anniversary.
MONTHLY DEDUCTIONS FROM ACCOUNT VALUE
A charge called the monthly deduction is deducted from a Policy's Account
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 Account 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 Base Death Benefit payable at the beginning of the Policy Month less the
Account 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. These rates are based on the
Age, sex, duration 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 states of Montana and Massachusetts and
in Policies purchased by employers and employee organizations in connection with
certain 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
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Insured. In addition, they also vary with the Policy duration. The cost of
insurance rate generally increases with the Age of the Insured.
Lower cost of insurance rates are offered at most ages for insured who
qualify for the standard underwriting class and whose applications are fully
underwritten, i.e., subject to evidence of insurability on the part of the
Insured. On the other hand, current insurance rates are generally higher if the
Policies are issued on a guaranteed issue basis, where evidence of insurability
is not required. Policies issued to employers, trustees and similar entities are
often issued on a guaranteed issue basis. Because only limited underwriting
information is obtained in this alternative underwriting procedure, Policies in
this underwriting class may present an additional mortality expense to the
Company relative to Policies which are fully underwritten. The additional risk
is generally reflected in higher current insurance rates, which are nevertheless
guaranteed not to exceed the 1980 Commissioners' Standard Ordinary Mortality
Tables.
The Company may offer insurance coverage up to $2.5 million on a guaranteed
issue or simplified issue basis under Policies in a single Case that meet our
requirements at the time of Policy issue.
If there have been increases in the Specified Amount, then for purposes of
calculating the cost of insurance charge, the Account Value will first be
applied to the initial Specified Amount. If the Account 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 Base Death Benefit equals
the Surrender Value multiplied by the applicable Death Benefit Percentage, any
increase in Account Value will cause an automatic increase in the Base 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).
MORTALITY AND EXPENSE RISK CHARGE
Each month a charge is deducted for mortality and expense risks assumed by
the Company. During the first 10 Policy years, this charge is guaranteed not to
exceed 0.05% per month of the amount in the Subaccounts of the Variable Account,
which is equivalent to an annual rate of 0.60% of the portion of the Policy
Account Value allocated to the Variable Account. Each month the Policy remains
in force after the tenth Policy Anniversary, the Mortality and Expense Risk
Charge is expected to be reduced to an amount equal to 0.025% per month of the
Subaccount amount. This is equivalent to 0.30% on an annualized basis. A
reduction of the Mortality and Expense Risk Charge to at least 0.45% on an
annualized basis after the tenth Policy Anniversary is guaranteed.
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 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.
This charge is not assessed against the amount of the Account Value which
is allocated to the Guaranteed Interest Account, nor to amounts in the Loan
Account.
ADMINISTRATIVE CHARGE
An administrative charge of $7.50 is deducted monthly from the Account
Value. The administrative charge is assessed to reimburse the Company for the
expenses associated with administration and maintenance of the Policies. In
addition, a charge of $5.00 is deducted monthly from the Account Value for the
first three Policy years for Policies subject to medical underwriting. This
charge is $3.00 per month for the first three Policy years for Policies
underwritten on a guaranteed issue basis. This charge is assessed to reimburse
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<PAGE> 49
the Company for the expenses associated with the underwriting of the Policy.
This charge is guaranteed never to exceed these amounts. The Company does not
expect to profit from this charge.
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 is deducted each month the Rider
is in effect. This charge is guaranteed never to exceed this amount.
The Guaranteed Death Benefit Rider is not available on Polices offered or
issued for delivery to residents of the Commonwealth of Massachusetts or the
State of Texas.
OTHER OPTIONAL INSURANCE BENEFITS CHARGES
The monthly deduction will include charges for any other optional insurance
benefits added to the Policy by Rider, including the Term Insurance Rider. See
"Other Optional Insurance Benefits," page 26.
As with the Base Death Benefit, the Term Insurance Rider contains
guaranteed cost of insurance rates that may not be increased, and current rates
which are lower than the guaranteed rates. These rates also vary based on the
underwriting class.
CORPORATE PURCHASERS
The Policy is available for purchase by individuals and by corporations and
other institutions. For corporate or other group or sponsored arrangements
purchasing one or more Policies constituting a Case, the Company may reduce the
amount of the Sales Charge, mortality and expense risk charge, cost of insurance
charges, underwriting charge or issue charge 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 projected premium
payments. In addition, the Company may reduce the minimum Specified Amount,
Target Death Benefit, or Minimum Annual Premium for the Policies representing
the Case. Any reduction will be reasonable and will apply uniformly to all
prospective Policy purchasers in the class and will not be unfairly
discriminatory to the interests of any Policy Owner.
TRANSACTION AND OTHER CHARGES
A Partial Surrender fee will be deducted from the Account Value for each
Partial Surrender Transaction. The fee will equal the lesser of $25 and 2% of
the Partial Surrender amount. This charge is guaranteed not to exceed these
amounts.
The Company assesses a $50 charge on transfers of Account Value between the
Subaccounts which exceed twelve in any Policy year. The Company assesses a $150
charge on reinstatement of a lapsed Policy. The Company also assesses a fee of
$25 for more than two changes in the premium allocation percentages in any
Policy year. These charges are guaranteed not to exceed this amount.
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 43.
The Company will bear the direct operating expenses of the Variable
Account.
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
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<PAGE> 50
other expenses are summarized at pages 12-14 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, which are solely responsible for such information.
ANNUAL EXPENSES FOR THE YEAR ENDED
DECEMBER 31, 1997
<TABLE>
<CAPTION>
EXPENSES
MANAGEMENT (AFTER TOTAL
FUND/PORTFOLIO FEES REIMBURSEMENT) EXPENSES
----------------------------------------------- ---------- --------------------- --------
<S> <C> <C> <C>
MONY Series Fund, Inc.
Intermediate Term Bond Portfolio............. .42%(1) .09%(2) .51%
Long Term Bond Portfolio..................... .42(1) .07(2) .49
Government Securities Portfolio.............. .42(1) .14(2) .56
Money Market Portfolio....................... .40 .06(2) .46
Enterprise Accumulation Trust
Equity Portfolio............................. .80% .04%(3) .84%
Small Cap Portfolio.......................... .80 .06(3) .86
Managed Portfolio............................ .73 .03(3) .76
International Growth Portfolio............... .85 .34(3) 1.19
High Yield Bond Portfolio.................... .60 .17(3) .77
Van Eck Trust
Worldwide Bond Fund.......................... 1.00% .12 1.12%
Worldwide Hard Assets Fund................... 1.00 .18 1.18
Worldwide Emerging Markets Fund.............. 1.00 .34 1.34
Dreyfus Variable Investment Fund
Capital Appreciation Portfolio............... .55% .25 .80%
Small Company Stock Portfolio................ .75 .37 1.12
Dreyfus Stock Index Fund....................... .245% .035 .28%
Price Equity Series
Equity Income Portfolio...................... .85% -- .85%
Mid-Cap Growth Portfolio..................... .85 -- .85
New America Growth Portfolio................. .85 -- .85
Personal Strategy Balanced Portfolio......... .90 -- .90
Price Fixed Income Series
Limited Term Bond Portfolio.................. .70% -- .70%
Prime Reserve Portfolio...................... .55 -- .55%
Price International Series
International Stock Portfolio................ 1.05% -- 1.05%
</TABLE>
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<PAGE> 51
- - ---------------
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. Expenses reflect the reallocation of the fees and expenses associated with
the computation of the net asset value of the Fund from MONY America to the
Fund which became effective on and after October 14, 1997. Expenses also
include custodial credit percentages as follows: Intermediate Term
Bond -- .0080%; Long Term Bond -- .0043%; Government Securities -- .0169%;
and Money Market -- .0048%.
3. Reflects expense reimbursements in effect on May 1, 1996. Absent these
expense reimbursements, expenses would have been as follows: Equity -- .84%;
Small Cap -- .86%; Managed -- .76%; Institutional Growth -- 1.19%; and High
Yield Bond -- .77%. The Equity, Small Cap, and Managed Portfolio
reimbursements relate to mutual fund accounting expense.
GUARANTEE OF CERTAIN CHARGES
The Company guarantees that certain charges will not increase. This
includes the sales charge, the guaranteed cost of insurance rates, the mortality
and expense risk charge, the administrative charge, the Guaranteed Death Benefit
charge, and certain transaction charges. Any changes in the current cost of
insurance charge related to the Base Death Benefit or the monthly charge for the
Term Insurance Rider 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 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 "Guideline
Premium/Cash Value Corridor Test" and the "Cash Value Accumulation Test".
The Guideline Premium/Cash Value Corridor 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 Cash Value of the Policy, known as the
"Guideline Premium/Cash Value Corridor Test Death Benefit Percentage." In most
situations, the death benefit that results from the Guideline Premium/Cash Value
Corridor Test will ultimately be less than the amount required under the Cash
Value Accumulation Test. See Appendices A and B for a table of the Guideline
Premium/Cash Value Corridor Test factors.
40
<PAGE> 52
Under the Cash Value Accumulation Test, there is no limit to the amount
that may be paid in premiums as long as there is enough death benefit in
relation to the Policy Cash Value at all times. The death benefit at all times
must be at least equal to an actuarially determined factor, referred to as the
"Cash Value Accumulation Test", which depends on the Insured's Age, sex and
underwriting class at any point in time. See Appendices C, D, E, and F, for the
tables of the Cash Value Accumulation Test factors.
The policy allows the Policy Owner to choose, at issue, which definition of
life insurance test will apply to the Policy. Regardless of which test is
chosen, the Company will at all times assure the Policy meets the statutory
definition which qualifies the Policy as life insurance for Federal income tax
purposes. Therefore, the Company believes that the Policy will meet this Federal
tax law definition of life insurance and hence will receive federal income tax
treatment consistent with that of fixed life insurance. Thus, the death benefit
generally 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.
The favorable tax treatment of Section 101(a)(1) will not apply to benefits
paid at the maturity of the Policy (age 95). See "Benefits at Maturity," page
27. Also, any interest payment accrued on death proceeds paid either as a lump
sum or other than in one lump sum may be subject to tax. See "Payment
Plan/Settlement Provisions," page 49.
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 US 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 US or by an agency or instrumentality of the US is treated as a
security issued by the US 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 for Federal income tax purposes referred to as
modified endowment contracts. With the enactment of this legislation, the
Policies will be treated in one of two ways. Policies that are not classified as
modified endowment contracts will be subject to the same income tax treatment 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 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
41
<PAGE> 53
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 Surrender Value, the excess, if any, of the gross
Surrender Value without reduction for any Outstanding Debt paid if using
Surrender values 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 income tax free through
Partial Surrenders and other Policy distributions. 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 and other Policy distributions 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
until the Policy is surrendered or upon maturity of the Policy. Under current
law, Interest paid (or accrued by an accrual basis taxpayer) on a loan under a
Policy 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 accrued 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. Legislation
adopted in 1996 has further reduced the deductibility of loan interest on loans
relating to business-owned 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 generally equal
to the amount by which the Cash Value plus Outstanding Debt exceeds the
investment in the Policy (usually the premiums paid less any premiums previously
recovered that were excludable from gross income). Upon taking a Partial
Surrender or Policy loan, the Policy Owner would recognize ordinary income to
the extent allocable to income on the Policy. The amount allocated to income is
the amount by which the Cash 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.
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<PAGE> 54
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. Legislation
adopted in 1996 has further reduced the deductibility of loan interest on loans
relating to business-owned 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 tax purposes. This
provision also affects calculation of the seven-pay premium. 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 Surrender Value will not be subject to
Federal income tax. However, the Policy Surrender Value will generally be
taxable to the extent it exceeds 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.
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<PAGE> 55
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.
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.
Premium taxes levied by the states are deducted from premiums paid. (See
"Deductions from Premiums -- Tax Charges", page 35.)
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 Account Value in the Subaccount which
corresponds to the
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<PAGE> 56
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 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 Account 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 Target Death Benefit, Base Death Benefit, Specified Amount,
Account Value, Surrender Value, and any Outstanding Debt. In addition, the
statement will indicate the allocation of Account 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, and Partial and full 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.
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<PAGE> 57
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.
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 Account 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 Account Value over time or in terms of the average
annual compounded rate of return on the Policy Owner's Account 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 operations 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 refund of the Sales 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 refund of the Sales 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.
46
<PAGE> 58
Performance information for any Subaccount of the Variable Account reflects
only the performance of a hypothetical Policy whose Account 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 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 Account 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.
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 Account Value from the Subaccounts of the Variable Account to the
Guaranteed Interest Account, or from the Guaranteed Interest Account to the
Subaccounts, subject to the limitations described below. The Company guarantees
that the Account Value in the Guaranteed Interest Account will be credited with
a minimum interest rate of 0.010746% daily, compounded daily, for a minimum
effective annual rate of 4.0%. 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
4.0% annual rate. After the tenth Policy anniversary, it is expected the annual
interest rates that apply to the Account Value in the Guaranteed Interest
Account will be 0.3% higher than otherwise applicable.
The Company bears the full investment risk for the Account Value allocated
to the Guaranteed Interest Account.
LIMITATIONS ON AMOUNTS IN THE GUARANTEED INTEREST ACCOUNT
No net premium or transfer to the Guaranteed Interest Account will be
accepted which would cause the Guaranteed Interest Account to exceed $250,000 on
the date of payment or transfer. The Company reserves the right to increase or
decrease this limit in the future. For payments which exceed the limit, the
Company will accept the portion of the payment up to $250,000 and will return
the excess payment to the Policy Owner. For transfers which exceed the limit,
the Company will accept the portion of the transfer up to the $250,000. The
amount of the requested transfer which would otherwise cause the Guaranteed
Interest Account to exceed $250,000 will be retained in the Subaccounts in the
same proportion that the amount actually transferred bears to the total
requested transfer amount. These limits are waived in the event the Policy Owner
elects the Right to Exchange Policy. See "Right to Exchange Policy", page 30.
47
<PAGE> 59
POLICY CHARGES
Deductions from premium and all monthly deductions from the Account Value,
other than the mortality and expense risk fee, will be the same for Policy
Owners who allocate net premiums or transfer Account 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 and the charges for
the cost of insurance, administrative charge, issue charge and the charge for
the Term Insurance Rider. Fees for Partial Surrenders and transfer charges will
also be deducted from the Guaranteed Interest Account. The mortality and expense
risk fee will not be charged against the Account Value allocated to 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 Account Value is 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 Account Values are allocated to the
Guaranteed Interest Account.
TRANSFERS
Amounts may be transferred after the Free Look 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, subject to the $250,000 limit on total amounts allocated to the
Guaranteed Interest Account referenced above. These limits are waived in the
event the Policy Owner elects the Right to Exchange the Policy. See "Right to
Exchange Policy", page 30.
Transfers from the Guaranteed Interest Account to the Subaccounts are
limited to one in any Policy year. Further, transfers from the Guaranteed
Interest Account are limited to the greater of $5,000 and 25% of the Account
Value allocated to the Guaranteed Interest Account on the date of the transfer.
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 Valuation Date when it is received. 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.
The Company assesses a $50 charge on transfers of Account Value between the
Subaccounts or between the Guaranteed Interest Account and the Subaccounts which
exceed twelve in any Policy year. In addition, the Company reserves the right to
impose other limitations on the number of transfers, the amount of transfers,
and the amount remaining in the Guaranteed Interest Account or Subaccounts after
a transfer.
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 32, and "Partial
Surrender", page 32. 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.
48
<PAGE> 60
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 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 the
Customer Service Center. 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 at the Customer Service Center 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 Surrender 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.
49
<PAGE> 61
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; or
- - - The SEC by order permits postponement for the protection of Policy Owners.
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 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. 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 Customer Service Center 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 39.)
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 Account Value by the applicable 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 sex. See "Cost of
Insurance", page 35.
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;
50
<PAGE> 62
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 the Company, 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.
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 15 percent of Target Premiums paid in
Policy years 1 and 2, 12% of Target Premiums paid in Policy years 3 through 5,
and 10% of Target Premiums paid in Policy years 6 through 10. For premiums paid
in Policy years 1 through 10 in excess of the Target Premiums, and for all
premium amounts paid after the tenth Policy anniversary, commissions will equal
at most three percent (3%) of any premiums. In addition, for so long as the
Policy shall remain in force, a commission of up to .20 percent of the Account
Value allocated to the Subaccounts may be paid. Upon any subsequent unscheduled
increase in Specified Amount, the same commission rates will apply to the
premium amounts allocated to the new coverage segment. Further, registered
representatives may be eligible to receive certain bonuses and other benefits
based on the amount of earned commissions.
Commissions may be required to be repaid to the Company if Sales Charges
are refunded upon a Full Surrender or Partial Surrender of the Policy or upon
exercise of the exchange privileges during the first 24 months after the Policy
Date.
In addition, registered representatives who meet specified production
levels may qualify, under sales incentive programs adopted by the Company, to
receive noncash compensation such as expense-paid trips, expense-paid
educational seminars and merchandise. The Company makes no separate deductions,
other than previously described, from premiums to pay sales commissions or sales
expenses.
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<PAGE> 63
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
Richard E. Connors..................... Director
Richard Daddario....................... Director, Vice President, and Controller
Kenneth M. Levine...................... Director and Executive Vice President
Phillip A. Eisenberg................... Director, Vice President and Actuary
Stephen J. Hall........................ Director
Sam Chiodo............................. Vice President--Corporate and Strategic
Marketing
William D. Goodwin..................... Vice President
Margaret G. Gale....................... Director and Vice President
Edward E. Hill......................... Vice President--Compliance
Charles R. Leone....................... Director, Vice President and Chief Corporate
Compliance Officer
Michael Slipowitz...................... Vice President
Evelyn L. Peos......................... Vice President
Jacob Poleyeff......................... Vice President--Agency Operations
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.
RECORDS AND ACCOUNTS
Andesa, TPA, Inc., Suite 502, 1605 N. Cedar Crest Boulevard, Allentown,
Pennsylvania, 18104, will act as transfer agent on behalf of the Company as it
relates to the policies described in this Prospectus. In the role of transfer
agent, Andesa will perform administrative functions, such as decreases,
increases, surrenders, and partial surrenders, fund allocation changes and
transfers on behalf of the Company.
All records and accounts relating to the Separate Account and the Funds
will be maintained by the Company. All financial transactions will be handled by
the Company. All reports required to be made and information required to be
given will be provided by Andesa on behalf of the Company.
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<PAGE> 64
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 the Mutual of New York.
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 Mutual of New York.
EXPERTS
Actuarial matters included in this Prospectus have been examined by Evelyn
L. Peos, FSA, Vice President of MONY America, whose opinion is filed as an
exhibit to the Registration Statement.
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, DC, 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 Coopers & Lybrand L.L.P., independent accountants, as indicated in
their reports thereon, and are included in reliance upon the authority of said
firm as experts in accounting and auditing. Coopers & Lybrand L.L.P.'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-13.
The financial statements of the Variable Account of the Company have been
audited by Coopers & Lybrand L.L.P. 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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<PAGE> 65
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................................................. F-7
Notes to financial statements....................................................... F-8
With respect to MONY Life Insurance Company of America:
Report of Independent Accountants................................................... F-11
Statements of admitted assets, liabilities and surplus as of December 31, 1997 and
1996............................................................................. F-12
Statements of operations for the years ended December 31, 1997 and 1996............. F-13
Statements of capital and surplus for the years ended December 31, 1997 and 1996.... F-14
Statements of cash flows for the years ended December 31, 1997 and 1996............. F-15
Notes to financial statements....................................................... F-16
</TABLE>
F-1
<PAGE> 66
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF TRUSTEES
MONY LIFE INSURANCE COMPANY OF AMERICA AND THE CONTRACTHOLDERS OF
MONY AMERICA VARIABLE ACCOUNT L--CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE:
We have audited the accompanying statements of assets and liabilities of
MONY America Variable Account L--Corporate Sponsored Variable Universal Life
(comprising the MONY Series Fund, Inc.'s Money Market Subaccount; the Enterprise
Accumulation Trust's Equity, Small Cap, Managed, International Growth, and High
Yield Bond Subaccounts; the Dreyfus Capital Appreciation and Stock Index Fund
Subaccounts; and the Van Eck Insurance Trust Worldwide Emerging Markets
Subaccount) as of December 31, 1997, and the related statements of operations
and the statements of changes in net assets for the period from July 23, 1997
(commencement of operations) to December 31, 1997, except for the MONY Series
Fund, Inc.'s Money Market Subaccount for which the period is from July 10, 1997
(commencement of operations) to December 31, 1997. 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 audit.
We conducted our audit 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 audit provides 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-- Corporate Sponsored
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> 67
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------
MONEY INTERNATIONAL HIGH YIELD
MARKET EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)........ $843,855 $ 12,750 $220,732 $438,300 $ 112,775 $157,449
======== ======= ======== ======== ======== ========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)................................ $843,855 $ 0 $ 0 $ 0 $ 0 $ 0
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2).................... 0 13,000 209,725 421,630 109,846 156,825
Amount due from MONY Series Fund,
Inc............................... 2,432 0 0 0 0 0
-------- ------- -------- -------- -------- --------
Total assets.............. 846,287 13,000 209,725 421,630 109,846 156,825
-------- ------- -------- -------- -------- --------
LIABILITIES
Amount due to MONY America.......... 2,432 0 0 0 0 0
-------- ------- -------- -------- -------- --------
Net assets.......................... $843,855 $ 13,000 $209,725 $421,630 $ 109,846 $156,825
======== ======= ======== ======== ======== ========
Net assets consist of:
Contractholders' net
payments..................... $868,575 $ 12,812 $203,828 $421,745 $ 110,374 $156,573
Cost of insurance and mortality
& expense risk withdrawals
(Note 3)..................... (37,708) (534) (1,101) (2,693) (787) (947)
Undistributed net investment
income....................... 12,988 431 17,837 19,108 3,248 1,806
Accumulated net realized gain
(loss) on investments........ 0 41 168 140 (60) 17
Unrealized appreciation
(depreciation) of
investments.................. 0 250 (11,007) (16,670) (2,929) (624)
-------- ------- -------- -------- -------- --------
Net assets.......................... $843,855 $ 13,000 $209,725 $421,630 $ 109,846 $156,825
======== ======= ======== ======== ======== ========
Number of units outstanding*........ 83,085 1,232 18,628 40,391 12,091 14,882
-------- ------- -------- -------- -------- --------
Net asset value per unit
outstanding*...................... $ 10.16 $ 10.55 $ 11.26 $ 10.44 $ 9.08 $ 10.54
======== ======= ======== ======== ======== ========
</TABLE>
- - ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-3
<PAGE> 68
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL
LIFE
------------------------------------------
WORLDWIDE
CAPITAL STOCK EMERGING
APPRECIATION INDEX MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note 4)................................... $157,383 $ 12,915 $ 16,799
======== ======= =======
Investments in Dreyfus at net asset value (Note 2)............. $155,956 $ 12,969 $ 0
Investments in Van Eck Worldwide Trust at net asset value (Note
2)........................................................... 0 0 12,879
-------- ------- -------
Net assets..................................................... $155,956 $ 12,969 $ 12,879
======== ======= =======
Net assets consist of:
Contractholders' net payments............................. $157,033 $ 12,938 $ 17,328
Cost of insurance and mortality & expense risk withdrawals
(Note 3)................................................ (936) (533) (468)
Undistributed net investment income....................... 1,295 496 0
Accumulated net realized gain (loss) on investments....... (9) 14 (61)
Unrealized appreciation (depreciation) of investments..... (1,427) 54 (3,920)
-------- ------- -------
Net assets..................................................... $155,956 $ 12,969 $ 12,879
======== ======= =======
Number of units outstanding*................................... 15,519 1,244 1,829
-------- ------- -------
Net asset value per unit outstanding*.......................... $ 10.05 $ 10.42 $ 7.04
======== ======= =======
</TABLE>
- - ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-4
<PAGE> 69
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------------------------------
MONEY INTERNATIONAL HIGH YIELD
MARKET EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- -------------- -------------- -------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 10, 1997* JULY 23, 1997* JULY 23, 1997* JULY 23, 1997* JULY 23, 1997* JULY 23, 1997*
THROUGH THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1997 1997 1997 1997
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.......... $ 12,988 $ 431 $ 17,837 $ 19,108 $ 3,248 $1,806
--------- ------ -------- -------- ------- ------
Realized and unrealized
gain (loss) on
investments (Note 2):
Proceeds from sales.... 1,130,952 1,169 2,372 4,593 796 1,560
Cost of shares sold.... 1,130,952 1,128 2,204 4,453 856 1,543
--------- ------ -------- -------- ------- ------
Net realized gain (loss)
on investments......... 0 41 168 140 (60) 17
Net increase (decrease)
in unrealized
appreciation of
investments............ 0 250 (11,007) (16,670) (2,929) (624)
--------- ------ -------- -------- ------- ------
Net realized and
unrealized gain (loss)
on investments......... 0 291 (10,839) (16,530) (2,989) (607)
--------- ------ -------- -------- ------- ------
Net increase in net
assets resulting from
operations............. $ 12,988 $ 722 $ 6,998 $ 2,578 $ 259 $1,199
========= ====== ======== ======== ======= ======
</TABLE>
- - ---------------
*Commencement of operations.
See notes to financial statements.
F-5
<PAGE> 70
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------
CAPITAL STOCK WORLDWIDE
APPRECIATION INDEX EMERGING MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- -------------- ----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 23, 1997* JULY 23, 1997* JULY 23, 1997*
THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1997
-------------- -------------- ----------------
<S> <C> <C> <C>
Dividend income....................................... $ 1,295 $ 496 $ 0
------- ------ -------
Realized and unrealized gain (loss) on investments
(Note 2):
Proceeds from sales................................. 1,526 1,161 473
Cost of shares sold................................. 1,535 1,147 534
------- ------ -------
Net realized gain (loss) on investments............... (9) 14 (61)
Net increase (decrease) in unrealized appreciation of
investment.......................................... (1,427) 54 (3,920)
------- ------ -------
Net realized and unrealized gain (loss) on
investments......................................... (1,436) 68 (3,981)
------- ------ -------
Net increase (decrease) in net assets resulting from
operations.......................................... $ (141) $ 564 $ (3,981)
======= ====== =======
</TABLE>
- - ---------------
*Commencement of operations.
See notes to financial statements.
F-6
<PAGE> 71
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------------------
MONEY INTERNATIONAL
MARKET EQUITY SMALL CAP MANAGED GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- --------------- ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 10, 1997** JULY 23, 1997** JULY 23, 1997** JULY 23, 1997** JULY 23, 1997**
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1997 1997 1997
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income............... $ 12,988 $ 431 $ 17,837 $ 19,108 $ 3,248
Net realized gain (loss) on
investments....................... 0 41 168 140 (60)
Net increase (decrease) in
unrealized appreciation of
investments....................... 0 250 (11,007) (16,670) (2,929)
----------- ------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations........... 12,988 722 6,998 2,578 259
----------- ------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units............................. 1,961,819 13,447 205,099 423,645 110,383
Net asset value of units redeemed or
used to meet contract
obligations....................... (1,130,952) (1,169) (2,372) (4,593) (796)
----------- ------- -------- -------- --------
Net increase from unit transactions... 830,867 12,278 202,727 419,052 109,587
----------- ------- -------- -------- --------
Net increase in net assets............ 843,855 13,000 209,725 421,630 109,846
Net assets beginning of period........ 0 0 0 0 0
----------- ------- -------- -------- --------
Net assets end of period*............. $ 843,855 $13,000 $ 209,725 $ 421,630 $ 109,846
=========== ======= ======== ======== ========
Units outstanding beginning of
period.............................. 0 0 0 0 0
Units issued during the period........ 194,816 1,345 18,848 40,836 12,113
Units redeemed during the period...... (111,731) (113) (220) (445) (22)
----------- ------- -------- -------- --------
Units outstanding end of period....... 83,085 1,232 18,628 40,391 12,091
=========== ======= ======== ======== ========
- - ---------------
*Includes undistributed net
investment income of:............... $ 12,988 $ 431 $ 17,837 $ 19,108 $ 3,248
**Commencement of operations.
<CAPTION>
HIGH YIELD CAPITAL STOCK WORLDWIDE
BOND APPRECIATION INDEX EMERGING MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- ----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 23, 1997** JULY 23, 1997** JULY 23, 1997** JULY 23, 1997**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1997 1997
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
From operations:
Net investment income............... $ 1,806 $ 1,295 $ 496 $ 0
Net realized gain (loss) on
investments....................... 17 (9) 14 (61)
Net increase (decrease) in
unrealized appreciation of
investments....................... (624) (1,427) 54 (3,920)
--------
Net increase (decrease) in net assets
resulting from operations........... 1,199 (141) 564 (3,981)
--------
From unit transactions:
Net proceeds from the issuance of
units............................. 157,186 157,623 13,566 17,333
Net asset value of units redeemed or
used to meet contract
obligations....................... (1,560) (1,526) (1,161) (473)
--------
Net increase from unit transactions... 155,626 156,097 12,405 16,860
--------
Net increase in net assets............ 156,825 155,956 12,969 12,879
Net assets beginning of period........ 0 0 0 0
--------
Net assets end of period*............. $ 156,825 $ 155,956 $ 12,969 $ 12,879
========
Units outstanding beginning of
period.............................. 0 0 0 0
Units issued during the period........ 15,033 15,672 1,357 1,883
Units redeemed during the period...... (151) (153) (113) (54)
--------
Units outstanding end of period....... 14,882 15,519 1,244 1,829
========
- - ---------------
*Includes undistributed net
investment income of:............... $ 1,806 $ 1,295 $ 496 $ 0
**Commencement of operations.
</TABLE>
See notes to financial statements.
F-7
<PAGE> 72
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 only to the Corporate Sponsored Variable
Universal Life Insurance policies are presented here.
There are currently fifteen Corporate Sponsored Variable Universal
Subaccounts within the Variable Account. Six of the subaccounts have no assets
and nine invest only in a corresponding portfolio of the MONY Series Fund, Inc.
(the "Fund"), the Enterprise Accumulation Trust ("Enterprise"), the Dreyfus
Investment Fund ("Dreyfus Fund"), the Dreyfus Stock Index Fund ("Dreyfus Index
Fund"), and the Van Eck Insurance Trust ("Van Eck Trust") (collectively, the
"Funds"). The subaccounts of the Corporate Sponsored Variable Universal Life
commenced operations during 1997. 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 Funds are contained on pages hereinafter 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, mortality and expense risk
charge 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 Corporate Sponsored Variable Life
Subaccounts for 1997 aggregated $45,707.
F-8
<PAGE> 73
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
As investment adviser to the Fund, MONY America 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 Corporate Sponsored Variable Universal Life at cost, at
December 31, 1997 consist of the following:
<TABLE>
<CAPTION>
MONEY INTERNATIONAL HIGH YIELD
MARKET EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares..................... 0 0 0 0 0 0
Amount..................... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
-------- ------- -------- -------- -------- --------
Shares acquired:
Shares..................... 1,961,819 391 7,272 9,979 17,370 27,422
Amount..................... $ 1,961,819 $ 13,447 $205,099 $423,645 $ 110,383 $157,186
Shares received for
reinvestment of dividends:
Shares..................... 12,988 12 668 469 526 316
Amount..................... $ 12,988 $ 431 $ 17,837 $ 19,108 $ 3,248 $ 1,806
Shares redeemed:
Shares..................... (1,130,952) (33) (85) (109) (122) (273)
Amount..................... $(1,130,952) $ (1,128) $ (2,204) $ (4,453) $ (856) $ (1,543)
-------- ------- -------- -------- -------- --------
Net change:
Shares..................... 843,855 370 7,855 10,339 17,774 27,465
Amount..................... $ 843,855 $ 12,750 $220,732 $438,300 $ 112,775 $157,449
-------- ------- -------- -------- -------- --------
Shares end of period:
Shares..................... 843,855 370 7,855 10,339 17,774 27,465
Amount..................... $ 843,855 $ 12,750 $220,732 $438,300 $ 112,775 $157,449
======== ======= ======== ======== ======== ========
</TABLE>
F-9
<PAGE> 74
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Corporate Sponsored Variable Universal Life at cost, at
December 31, 1997 consist of the following:
<TABLE>
<CAPTION>
CAPITAL STOCK WORLDWIDE
APPRECIATION INDEX EMERGING MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ----------------
<S> <C> <C> <C>
Shares beginning of period:
Shares............................................ 0 0 0
Amount............................................ $ 0 $ 0 $ 0
-------- ------- -------
Shares acquired:
Shares............................................ 5,598 529 1,205
Amount............................................ $157,623 $ 13,566 $ 17,333
Shares received for reinvestment of dividends:
Shares............................................ 47 19 0
Amount............................................ $ 1,295 $ 496 $ 0
Shares redeemed:
Shares............................................ (55) (45) (34)
Amount............................................ $ (1,535) $ (1,147) $ (534)
-------- ------- -------
Net change:
Shares............................................ 5,590 503 1,171
Amount............................................ $157,383 $ 12,915 $ 16,799
-------- ------- -------
Shares end of period:
Shares............................................ 5,590 503 1,171
Amount............................................ $157,383 $ 12,915 $ 16,799
======== ======= =======
</TABLE>
F-10
<PAGE> 75
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-11
<PAGE> 76
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-12
<PAGE> 77
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-13
<PAGE> 78
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-14
<PAGE> 79
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-15
<PAGE> 80
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-16
<PAGE> 81
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-17
<PAGE> 82
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-18
<PAGE> 83
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 held by the Company and 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-19
<PAGE> 84
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 $3.4 million at December 31, 1997 and 1996, respectively, as
required by the NAIC for securities which are in or near default.
F-20
<PAGE> 85
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
5. FIXED MATURITY SECURITIES AND COMMON STOCKS (CONTINUED):
At December 31, 1997, 78.2% of the Company's Collateralized Mortgage
Obligation (CMO) portfolio was held in U.S. government and government
agency-backed securities. The remainder of the CMO portfolio consisted of NAIC
category 1 investment grade securities.
Maturities of Fixed Maturity Securities:
The amortized cost and estimated fair value of fixed maturity securities by
maturity date as of December 31, 1997 are as follows:
<TABLE>
<CAPTION>
ESTIMATED
AMORTIZED FAIR
COST VALUE
--------- ---------
($ 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 $1.1 million in 1996. There are no commitments to lend additional
funds to any debtor involved in a restructuring.
F-21
<PAGE> 86
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
6. MORTGAGE LOANS AND REAL ESTATE (CONTINUED):
At both December 31, 1997 and 1996, there were no mortgage loans that were
non-income producing for the preceding twelve months.
At both December 31, 1997 and 1996, there were no real estate properties
that were non-income producing for the preceding twelve months.
7. INVESTMENT INCOME, REALIZED AND UNREALIZED CAPITAL GAINS (LOSSES):
Net investment income for the years ended December 31, 1997 and 1996 was
derived from the following sources:
<TABLE>
<CAPTION>
1997 1996
------ ------
($ 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 $0 in 1996 on real estate acquired through foreclosure
and mortgage loans in process of foreclosure. These gains and losses are
detailed by asset type in the table below.
F-22
<PAGE> 87
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
7. INVESTMENT INCOME, REALIZED AND UNREALIZED CAPITAL GAINS (LOSSES)
(CONTINUED):
<TABLE>
<CAPTION>
1997 1996
----- ----
($ 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-23
<PAGE> 88
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-24
<PAGE> 89
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-25
<PAGE> 90
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-26
<PAGE> 91
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-27
<PAGE> 92
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-28
<PAGE> 93
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-29
<PAGE> 94
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-30
<PAGE> 95
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 96
APPENDIX A
DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
<TABLE>
<CAPTION>
ATTAINED AGE DEATH BENEFIT
-------------------------------------------------------- -------------
<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...................................................... 101
95...................................................... 100
</TABLE>
A-1
<PAGE> 97
APPENDIX B
ALTERNATE DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
<TABLE>
<CAPTION>
ATTAINED AGE APPLICABLE 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.............................................. 211
53.............................................. 210
54.............................................. 208
55.............................................. 206
56.............................................. 204
57.............................................. 203
58.............................................. 202
59.............................................. 203
60.............................................. 204
61.............................................. 205
62.............................................. 206
63.............................................. 207
64.............................................. 208
65.............................................. 209
66.............................................. 210
67.............................................. 211
68.............................................. 212
69.............................................. 213
70.............................................. 214
71.............................................. 215
72.............................................. 216
73.............................................. 217
74.............................................. 218
75.............................................. 214
76.............................................. 207
77.............................................. 199
78.............................................. 192
79.............................................. 186
80.............................................. 180
81.............................................. 174
82.............................................. 169
83.............................................. 164
84.............................................. 159
85.............................................. 145
86.............................................. 133
</TABLE>
B-1
<PAGE> 98
<TABLE>
<CAPTION>
ATTAINED AGE APPLICABLE PERCENTAGE
------------------------------------------------ ---------------------
<S> <C>
87.............................................. 120
88.............................................. 105
89.............................................. 105
90.............................................. 105
91.............................................. 104
92.............................................. 103
93.............................................. 102
94.............................................. 101
95.............................................. 100
</TABLE>
B-2
<PAGE> 99
APPENDIX C
DEATH BENEFIT PERCENTAGE FOR
CASH VALUE ACCUMULATION TEST
MALE
<TABLE>
<CAPTION>
APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
ATTAINED AGE NON-SMOKER SMOKER
--------------------------- --------------------- ---------------------
<S> <C> <C>
18......................... 728.68% 590.77%
19......................... 707.62 574.17
20......................... 687.37 558.07
21......................... 667.46 542.22
22......................... 647.92 526.63
23......................... 628.74 511.31
24......................... 609.54 496.26
25......................... 590.76 481.26
26......................... 572.38 466.56
27......................... 554.10 451.96
28......................... 536.27 437.70
29......................... 518.88 423.75
30......................... 501.92 410.14
31......................... 485.40 397.00
32......................... 469.31 384.18
33......................... 453.85 371.79
34......................... 438.80 359.81
35......................... 424.14 348.23
36......................... 410.04 337.03
37......................... 396.46 326.18
38......................... 383.38 315.76
39......................... 370.76 305.81
40......................... 358.57 296.22
41......................... 346.81 287.04
42......................... 335.54 278.22
43......................... 324.63 269.81
44......................... 314.16 261.75
45......................... 304.09 254.03
46......................... 294.39 246.61
47......................... 285.04 239.50
48......................... 276.02 232.68
49......................... 267.36 226.16
50......................... 259.04 219.90
51......................... 251.02 213.88
52......................... 243.33 208.11
53......................... 235.94 202.60
54......................... 228.86 197.34
55......................... 222.06 192.33
56......................... 215.56 187.55
57......................... 209.33 182.99
58......................... 203.37 178.63
59......................... 197.66 174.46
60......................... 192.20 170.45
61......................... 186.98 166.61
</TABLE>
C-1
<PAGE> 100
<TABLE>
<CAPTION>
APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
ATTAINED AGE NON-SMOKER SMOKER
--------------------------- --------------------- ---------------------
<S> <C> <C>
62......................... 181.99 162.94
63......................... 177.22 159.45
64......................... 172.68 156.13
65......................... 168.35 152.99
66......................... 164.24 150.02
67......................... 160.33 147.20
68......................... 156.60 144.52
69......................... 153.06 141.95
70......................... 149.67 139.49
71......................... 146.45 137.14
72......................... 143.43 134.90
73......................... 140.55 132.78
74......................... 137.83 130.79
75......................... 135.30 128.92
76......................... 132.92 127.18
77......................... 130.69 125.56
78......................... 128.59 124.03
79......................... 126.59 122.59
80......................... 124.70 121.20
81......................... 122.89 119.86
82......................... 121.17 118.59
83......................... 119.55 117.37
84......................... 118.03 116.23
85......................... 116.60 115.14
86......................... 115.26 114.11
87......................... 113.97 113.09
88......................... 112.72 112.05
89......................... 111.47 111.00
90......................... 110.17 109.86
91......................... 108.76 108.59
92......................... 107.18 107.09
93......................... 105.31 105.27
94......................... 103.00 102.99
95......................... 100.00 100.00
</TABLE>
C-2
<PAGE> 101
APPENDIX D
DEATH BENEFIT PERCENTAGE FOR
CASH VALUE ACCUMULATION TEST
FEMALE
<TABLE>
<CAPTION>
APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
ATTAINED AGE NON-SMOKER SMOKER
--------------------------- --------------------- ---------------------
<S> <C> <C>
18......................... 834.33% 734.20%
19......................... 807.96 710.85
20......................... 782.15 688.01
21......................... 756.99 666.21
22......................... 733.03 644.93
23......................... 709.65 624.17
24......................... 686.84 603.93
25......................... 664.60 584.56
26......................... 642.93 565.67
27......................... 621.82 547.24
28......................... 601.64 529.58
29......................... 581.97 512.35
30......................... 562.81 495.56
31......................... 544.16 479.44
32......................... 526.29 463.72
33......................... 508.89 448.60
34......................... 491.95 434.04
35......................... 475.69 420.02
36......................... 459.86 406.34
37......................... 444.65 393.15
38......................... 430.01 380.55
39......................... 415.92 368.49
40......................... 402.34 356.94
41......................... 389.25 345.85
42......................... 376.74 335.30
43......................... 364.65 325.13
44......................... 353.07 315.41
45......................... 341.85 306.10
46......................... 331.09 297.10
47......................... 320.73 288.44
48......................... 310.68 280.11
49......................... 300.99 272.07
50......................... 291.71 264.37
51......................... 282.75 256.96
52......................... 274.14 249.83
53......................... 265.85 242.95
54......................... 257.86 236.34
55......................... 250.15 229.97
56......................... 242.74 223.86
57......................... 235.60 217.95
58......................... 228.71 212.21
59......................... 222.05 206.64
60......................... 215.61 201.22
61......................... 209.36 195.96
</TABLE>
D-1
<PAGE> 102
<TABLE>
<CAPTION>
APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
ATTAINED AGE NON-SMOKER SMOKER
--------------------------- --------------------- ---------------------
<S> <C> <C>
62......................... 203.34 190.86
63......................... 197.56 185.95
64......................... 192.00 181.25
65......................... 186.70 176.77
66......................... 181.65 172.48
67......................... 176.83 168.37
68......................... 172.20 164.42
69......................... 167.73 160.60
70......................... 163.41 156.89
71......................... 159.25 153.30
72......................... 155.27 149.84
73......................... 151.47 146.54
74......................... 147.87 143.42
75......................... 144.48 140.48
76......................... 141.28 137.72
77......................... 138.27 135.12
78......................... 135.43 132.65
79......................... 132.74 130.32
80......................... 130.18 128.09
81......................... 127.75 125.96
82......................... 125.46 123.93
83......................... 123.30 122.01
84......................... 121.27 120.20
85......................... 119.37 118.50
86......................... 117.58 116.89
87......................... 115.88 115.36
88......................... 114.25 113.87
89......................... 112.64 112.39
90......................... 111.03 110.86
91......................... 109.35 109.25
92......................... 107.54 107.49
93......................... 105.49 105.47
94......................... 103.05 103.05
95......................... 100.00 100.00
</TABLE>
D-2
<PAGE> 103
APPENDIX E
ALTERNATE DEATH BENEFIT PERCENTAGE FOR
CASH VALUE ACCUMULATION TEST
MALE
<TABLE>
<CAPTION>
APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
ATTAINED NON-SMOKER SMOKER
- - -------- --------------------- ---------------------
<S> <C> <C>
18 728.68% 590.77%
19 707.62 574.17
20 687.37 558.07
21 667.46 542.22
22 647.92 526.63
23 628.74 511.31
24 609.54 496.26
25 590.76 481.26
26 572.38 466.56
27 554.10 451.96
28 536.27 437.70
29 518.88 423.75
30 501.92 410.14
31 485.40 397.00
32 469.31 384.18
33 453.85 371.79
34 438.80 359.81
35 424.14 348.23
36 410.04 337.03
37 396.46 326.18
38 383.38 315.76
39 370.76 305.81
40 358.57 296.22
41 346.81 287.04
42 335.54 278.22
43 324.63 269.81
44 314.16 261.75
45 304.09 254.03
46 294.39 246.61
47 285.04 239.50
48 276.02 232.68
49 267.36 226.16
50 259.04 219.90
51 251.02 213.88
52 247.00 211.25
53 244.00 209.53
54 241.00 207.81
55 238.00 206.14
56 235.00 204.47
57 232.00 202.80
58 230.00 202.03
</TABLE>
E-1
<PAGE> 104
<TABLE>
<CAPTION>
APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
ATTAINED NON-SMOKER SMOKER
- - -------- ------ ------
<S> <C> <C>
59 230.00 203.00
60 230.00 203.98
61 230.00 204.95
62 230.00 205.93
63 230.00 206.95
64 230.00 207.96
65 230.00 209.01
66 230.00 210.08
67 230.00 211.17
68 230.00 212.25
69 230.00 213.31
70 230.00 214.36
71 230.00 215.38
72 230.00 216.32
73 230.00 217.29
74 230.00 218.24
75 221.89 211.43
76 214.00 204.76
77 205.18 197.13
78 196.74 189.77
79 189.89 183.88
80 183.31 178.16
81 176.96 172.61
82 170.85 167.21
83 164.98 161.98
84 159.34 156.91
85 145.75 143.93
86 132.55 131.22
87 119.67 118.74
88 112.72 112.05
89 111.47 111.00
90 110.17 109.86
91 108.76 108.59
92 107.18 107.09
93 105.31 105.27
94 103.00 102.99
95 100.00 100.00
</TABLE>
E-2
<PAGE> 105
APPENDIX F
ALTERNATE DEATH BENEFIT PERCENTAGE FOR
CASH VALUE ACCUMULATION TEST
FEMALE
<TABLE>
<CAPTION>
ATTAINED APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
AGE NON-SMOKER SMOKER
- - -------- --------------------- ---------------------
<S> <C> <C>
18 834.33% 734.20%
19 807.96 710.85
20 782.15 688.01
21 756.99 666.21
22 733.03 644.93
23 709.65 624.17
24 686.84 603.93
25 664.60 584.56
26 642.93 565.67
27 621.82 547.24
28 601.64 529.58
29 581.97 512.35
30 562.81 495.56
31 544.16 479.44
32 526.29 463.72
33 508.89 448.60
34 491.95 434.04
35 475.69 420.02
36 459.86 406.34
37 444.65 393.15
38 430.01 380.55
39 415.92 368.49
40 402.34 356.94
41 389.25 345.85
42 376.74 335.30
43 364.65 325.13
44 353.07 315.41
45 341.85 306.10
46 331.09 297.10
47 320.73 288.44
48 310.68 280.11
49 300.99 272.07
50 291.71 264.37
51 282.75 256.96
52 278.27 253.60
53 274.93 251.25
54 271.54 248.87
55 268.10 246.47
56 264.63 244.05
57 261.11 241.54
58 258.66 240.00
59 258.39 240.05
</TABLE>
F-1
<PAGE> 106
<TABLE>
<CAPTION>
ATTAINED APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
AGE NON-SMOKER SMOKER
- - -------- --------------------- ---------------------
<S> <C> <C>
60 258.02 240.80
61 257.53 241.05
62 256.99 241.22
63 256.40 241.34
64 255.74 241.41
65 255.07 241.50
66 254.38 241.53
67 253.67 241.53
68 252.90 241.48
69 252.06 241.33
70 251.12 241.10
71 250.12 240.76
72 248.99 240.27
73 247.88 239.81
74 246.75 239.32
75 236.94 230.39
76 227.46 221.72
77 217.08 212.13
78 207.21 202.96
79 199.11 195.47
80 191.37 188.29
81 183.97 181.38
82 176.90 174.74
83 170.15 168.37
84 163.72 162.26
85 149.21 148.13
86 135.22 134.43
87 121.68 121.13
88 114.25 113.87
89 112.64 112.39
90 111.03 110.86
91 109.35 109.25
92 107.54 107.49
93 105.49 105.47
94 103.05 103.05
95 100.00 100.00
</TABLE>
F-2
<PAGE> 107
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 108
APPENDIX G
ILLUSTRATIONS OF DEATH BENEFITS, ACCOUNT VALUES AND
SURRENDER VALUES, AND ACCUMULATED PREMIUMS
The following tables illustrate how the key financial elements of the
Policy work, specifically, how the death benefits, Account Values and Surrender
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>
DEF. OF DEATH TARGET
LIFE INS. BENEFIT SPECIFIED DEATH SEE
SEX AGE UNDERWRITING METHOD SMOKER TEST OPTION AMOUNT BENEFIT PAGES
- - ----- --- -------------------- ----------------------- --------- ------- --------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Male 45 Guaranteed Issue Non-smoker CVAT 1 $ 500,000 $500,000 G-5, G-11
Male 45 Guaranteed Issue Non-smoker CVAT 1 $ 250,000 $500,000 G-17, G-23
Male 45 Medical Issue Preferred Non-smoker CVAT 1 $ 500,000 $500,000 G-29, G-35
Male 45 Medical Issue Standard Smoker CVAT 1 $ 500,000 $500,000 G-41, G-47
Male 45 Guaranteed Issue Non-smoker CVAT 1 $ 500,000 $500,000 G-53, G-59
Male 45 Guaranteed Issue Non-smoker GPT 1 $ 500,000 $500,000 G-65, G-71
Male 45 Guaranteed Issue Non-smoker CVAT 1 $ 500,000 $500,000 G-77, G-83
</TABLE>
The tables show how death benefits, Account Values and Surrender 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, Account Values
and Surrender 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 fourth column of each table shows what would happen if an amount equal to
the premiums (shown in the third column) were invested to earn interest, after
taxes, of 5% compounded annually. All premium payments are illustrated as if
they were made a the beginning of the year.
The amounts shown for death benefits, Account Values, and Surrender Values
sections reflect the fact that 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, including the premium loads,
administrative charges, mortality and expense risk charges, and Sales Charges.
The difference between the Account Value and the Surrender Value in the first
three years is the refund of Sales Charges.
The tables illustrate cost of insurance and expense charges at both current
rates (which are described under Cost of Insurance, page 35) 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. These charges include the charge
to Portfolio assets for investment management and direct expenses. The initial
mortality and expense risk charge is .60% annually on a guaranteed basis;
illustrations showing current rates reflect a reduction of .30% of the Account
Value beginning after the tenth Policy Anniversary; and illustrations showing
guaranteed rates reflect a mortality and expense risk charge of .45% annually
beginning on and after the tenth Policy Anniversary.
The tables also reflect a deduction for a daily investment advisory fee and for
other expenses of the Portfolio at a rate equivalent to 0.70% of the aggregate
average daily net assets of the Portfolio. This hypothetical rate is
representative of the average investment advisory fee charged 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 in the tables.
The effect of these investment management and direct expenses on a 0% gross rate
of return would result in a net rate of return of -0.70%, on 6% it would be
5.30%, and on 12% it would be 11.30%.
G-1
<PAGE> 109
The tables assume the deduction of charges including administrative and sales
charges. For each age, there are tables using current and guaranteed 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%, and 12%.
The Company will furnish, upon request, a comparable illustration based on the
age and sex of the proposed insured, underwriting and premium class assumptions
and an initial Specified Amount, Target Death Benefit, and Scheduled Premium
Payments of the applicant's choice. In addition, the individual chosen
Definition of Life Insurance Test will be illustrated. 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 Disclosure and Notes to Illustration which precede each of
the flexible premium variable life to age 95 standard ledger statements which
follow and which begin on pages G-5
THESE ILLUSTRATIONS ARE NOT VALID IN FLORIDA
G-2
<PAGE> 110
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
DISCLOSURE
BRIEF DESCRIPTION
The Death Benefit, Account Value and Surrender Value of Flexible Premium
Variable Life Insurance may vary up and down to reflect the investment
experience of the subaccounts of the Separate Account and are based on
hypothetical investment return assumptions. Each illustration assumes that the
combination of the amounts allocated by a policyowner to the subaccounts
experienced hypothetical gross rate of investment return equivalent to 0% and
any other rate specified to a maximum of 12%.
These illustrations of Death Benefit, Account Value and Surrender Value are
designed to show the way in which Flexible Premium Variable Life Insurance
operates and help make it possible to compare it with other variable life
insurance illustrations. The hypothetical returns are not intended as estimates
of the future performance of any subaccounts. MONY Life Insurance Company of
America is not able to predict the future performance of the subaccounts.
Illustrations based on assumed constant rates of return do not show
fluctuation in the Death Benefit, Account Value and Surrender Value that can
occur with an actual policy. Since the values of the subaccounts vary up and
down, variable life insurance benefits will also vary. Depending on investment
allocations made to the subaccounts, benefits may vary up and down, unless the
actual rates of return are identical for all subaccounts.
If the illustration reflects loan or partial surrenders the amounts there
of will be shown in columns headed "ANNUAL LOAN" and "PARTIAL SURRENDERS fr
INSUR CONTRACT".
The policy is a Flexible Premium Variable Life Insurance policy. The
initial premium is due on or before delivery of the policy. You can choose the
amount and frequency of premium payments within certain limits.
The maximum loan value is equal to 90% of the Account Value.
DISTRIBUTED BY: MONY SECURITIES CORPORATION, MEMBER NASD, SIPC
1740 BROADWAY
NEW YORK, NEW YORK 10019
1-800-736-0166
ILLUSTRATIONS MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS. READ THE
PROSPECTUS CAREFULLY BEFORE INVESTING.
NOTES TO ILLUSTRATION
The Death Benefit, Account Value and Surrender Value under the policy are
discussed in the prospectus and in your policy. The amounts shown for the Death
Benefit, Account Value and Surrender Value are as of the end of the policy year
and take into consideration the operating charges and expense charges of the
underlying funds including the investment advisory services.
The daily charge for investment advisory services and operating expenses of
each of the Funds, after reimbursement, varies by subaccount and ranges from
0.00% to 1.52% on an annualized basis. Since a specific allocation amongst
subaccounts is not assumed in the illustration an average charge for investment
advisory services is used. The average charge assumed is equivalent to an annual
rate of 0.70%.
The charges assumed for investment advisory services and expenses is
effectively subtracted from the hypothetical gross investment rate of return.
The resulting net investment rate of return is shown in parenthesis next to the
hypothetical gross rate.
1. In Compliance Report 1 the "ASSUME USE OF GUARANTEED MORTALITY" columns,
guaranteed cost of insurance rates are charged.
G-3
<PAGE> 111
2. In Compliance Report 2 the "ASSUME USE OF CURRENT MORTALITY" columns, current
cost of insurance rates are charged.
3. In Compliance Reports 1 and 2, column (2) shows the amount to which the
premium paid for the policy to the end of a policy year would accumulate if
an amount equal to such premiums were invested to earn interest, after taxes
at 5% compounded annually.
4. In Compliance Reports 1 and 2, column (3) reflects any loans that have been
requested.
5. In Compliance Reports 1 and 2, column (4) reflects any partial surrender that
have been requested. A partial surrender could reduce the Death Benefit, and
will reduce the Account Value and Surrender Value by the amount surrendered
plus a transaction fee which is the lesser of $25 or 2% of the amount
surrendered.
6. The term "COST OF MONEY %" is the opportunity cost. The hypothetical rate
assumes the return of earned interest for other possible investments.
G-4
<PAGE> 112
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26,225 27,536 0 0 23,697 21,336 500,000 25,026 22,666
2 47 26,225 56,449 0 0 43,590 42,016 500,000 47,579 46,005
3 48 26,225 86,808 0 0 63,184 62,397 500,000 71,203 70,416
4 49 26,225 118,684 0 0 82,479 82,479 500,000 95,953 95,953
5 50 26,225 152,155 0 0 102,243 102,243 500,000 122,654 122,654
6 51 26,225 187,298 0 0 121,705 121,705 500,000 150,599 150,599
7 52 26,225 224,200 0 0 140,839 140,839 500,000 179,834 179,834
8 53 0 235,410 0 0 136,818 136,818 500,000 186,226 186,226
9 54 0 247,180 0 0 132,607 132,607 500,000 192,764 192,764
10 55 0 259,539 0 0 128,202 128,202 500,000 199,464 199,464
11 56 0 272,516 0 0 123,744 123,744 500,000 206,619 206,619
12 57 0 286,142 0 0 118,986 118,986 500,000 213,927 213,927
13 58 0 300,449 0 0 113,919 113,919 500,000 221,410 221,410
14 59 0 315,471 0 0 108,491 108,491 500,000 229,056 229,056
15 60 0 331,245 0 0 102,643 102,643 500,000 236,857 236,857
16 61 0 347,807 0 0 96,315 96,315 500,000 244,808 244,808
17 62 0 365,197 0 0 89,443 89,443 500,000 252,907 252,907
18 63 0 383,457 0 0 81,957 81,957 500,000 261,154 261,154
19 64 0 402,630 0 0 73,681 73,681 500,000 269,497 269,497
20 65 0 422,762 0 0 64,581 64,581 500,000 277,972 277,972
21 66 0 443,900 0 0 54,458 54,458 500,000 286,539 286,539
22 67 0 466,095 0 0 43,206 43,206 500,000 295,216 295,216
23 68 0 489,399 0 0 30,646 30,646 500,000 304,003 304,003
24 69 0 513,869 0 0 16,582 16,582 500,000 312,907 312,907
25 70 0 539,563 0 0 851 851 500,000 321,963 321,963
26 71 0 566,541 0 0 0 0 0 331,153 331,153
27 72 0 594,868 0 0 0 0 0 340,366 340,366
28 73 0 624,611 0 0 0 0 0 349,786 349,786
29 74 0 655,842 0 0 0 0 0 359,295 359,295
30 75 0 688,634 0 0 0 0 0 368,842 368,842
31 76 0 723,066 0 0 0 0 0 378,407 378,407
32 77 0 759,219 0 0 0 0 0 387,941 387,941
33 78 0 797,180 0 0 0 0 0 397,446 397,446
34 79 0 837,039 0 0 0 0 0 406,965 406,965
35 80 0 878,891 0 0 0 0 0 416,528 416,528
36 81 0 922,836 0 0 0 0 0 426,136 426,136
37 82 0 968,977 0 0 0 0 0 435,769 435,769
38 83 0 1,017,426 0 0 0 0 0 445,390 445,390
39 84 0 1,068,298 0 0 0 0 0 454,987 454,987
40 85 0 1,121,712 0 0 0 0 0 464,542 464,542
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR (GROSS)
- - ---- --------
<S> <C>
1 500,000
2 500,000
3 500,000
4 500,000
5 500,000
6 500,000
7 500,000
8 500,000
9 500,000
10 500,000
11 500,000
12 500,000
13 500,000
14 500,000
15 500,000
16 500,000
17 500,000
18 500,000
19 500,000
20 500,000
21 500,000
22 500,000
23 500,000
24 500,000
25 500,000
26 500,000
27 500,000
28 501,697
29 504,989
30 508,375
31 511,984
32 515,651
33 519,422
34 523,317
35 527,282
36 531,392
37 535,516
38 539,679
39 543,937
40 548,298
</TABLE>
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY THE DISCLOSURE
PAGE, CONTINUATION OF COMPLIANCE REPORT 1, AND SUPPLEMENTAL FOOTNOTE PAGE.
G-5
<PAGE> 113
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1 ...continuation
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR @ 0% @ 0% @ 0% @ 6% @ 6%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1,177,798 0 0 0 0 0 474,100 474,100
42 87 0 1,236,688 0 0 0 0 0 483,725 483,725
43 88 0 1,298,522 0 0 0 0 0 493,524 493,524
44 89 0 1,363,449 0 0 0 0 0 503,651 503,651
45 90 0 1,431,621 0 0 0 0 0 514,293 514,293
46 91 0 1,503,202 0 0 0 0 0 525,731 525,731
47 92 0 1,578,362 0 0 0 0 0 538,350 538,350
48 93 0 1,657,280 0 0 0 0 0 552,729 552,729
49 94 0 1,740,144 0 0 0 0 0 569,799 569,799
50 95 0 1,827,151 0 0 0 0 0 591,072 591,072
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR (GROSS)
- - ---- --------
<S> <C>
41 552,801
42 557,514
43 562,469
44 567,715
45 573,282
46 579,198
47 585,510
48 592,415
49 600,056
50 608,804
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s) and Date)
Illustration Delivered
(Signature of Representative and Date)
ASSUME GUARANTEED CHARGES AND A GROSS INVESTMENT RETURN OF 0.00%. CONTRACT
LAPSES AFTER AGE 70. ASSUMING GUARANTEED CHARGES AND A GROSS INVESTMENT RETURN
OF 6.00%, THIS CONTRACT MATURES AT ANNIVERSARY AT AGE 95. THIS IS AN
ILLUSTRATION, NOT A CONTRACT. FOR PRESENTATION IN ARIZONA 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 A POLICYHOLDER, AND THE DIFFERENT
INVESTMENT RATES OF RETURN ACHIEVED BY THE SUB ACCOUNT CHOSEN BY THE
POLICYHOLDER. THE SURRENDER VALUE, ACCOUNT VALUE AND BENEFIT PAYABLE AT DEATH
FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE CONTRACT AVERAGED 0.00% OR 6.00% OVER A
PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THOSE AVERAGES FOR
INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER
ANY PERIOD OF TIME.
PREPARED BY: AGENT DATE PREPARED: 11/6/1996
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY DISCLOSURE PAGE
AND SUPPLEMENTAL FOOTNOTE PAGE.
G-6
<PAGE> 114
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26,225 27,536 0 0 23,697 21,336 500,000 25,026 22,666
2 47 26,225 56,449 0 0 43,862 42,289 500,000 47,858 46,285
3 48 26,225 86,808 0 0 63,663 62,876 500,000 71,709 70,922
4 49 26,225 118,684 0 0 83,152 83,152 500,000 96,684 96,684
5 50 26,225 152,155 0 0 103,052 103,052 500,000 123,563 123,563
6 51 26,225 187,298 0 0 122,731 122,731 500,000 151,772 151,772
7 52 26,225 224,200 0 0 142,198 142,198 500,000 181,387 181,387
8 53 0 235,410 0 0 138,640 138,640 500,000 188,289 189,289
9 54 0 247,180 0 0 135,068 135,068 500,000 195,509 195,509
10 55 0 259,539 0 0 131,482 131,482 500,000 203,064 203,064
11 56 0 272,516 0 0 128,270 128,270 500,000 211,612 211,612
12 57 0 286,142 0 0 124,985 124,985 500,000 220,560 220,560
13 58 0 300,449 0 0 121,490 121,490 500,000 229,833 229,833
14 59 0 315,471 0 0 117,783 117,783 500,000 239,460 239,460
15 60 0 331,245 0 0 113,813 113,813 500,000 249,441 249,441
16 61 0 347,807 0 0 109,483 109,483 500,000 259,751 259,751
17 62 0 365,197 0 0 104,833 104,833 500,000 270,453 270,453
18 63 0 383,457 0 0 99,806 99,806 500,000 281,540 281,540
19 64 0 402,630 0 0 94,394 94,394 500,000 293,024 293,024
20 65 0 422,762 0 0 88,635 88,635 500,000 304,946 304,946
21 66 0 443,900 0 0 82,420 82,420 500,000 317,282 317,282
22 67 0 466,095 0 0 75,783 75,783 500,000 330,089 330,089
23 68 0 489,399 0 0 68,609 68,609 500,000 343,353 343,353
24 69 0 513,869 0 0 60,720 60,720 500,000 357,035 357,035
25 70 0 539,563 0 0 51,874 51,874 500,000 371,081 371,081
26 71 0 566,541 0 0 42,081 42,081 500,000 385,556 385,556
27 72 0 594,868 0 0 31,070 31,070 500,000 400,417 400,417
28 73 0 624,611 0 0 18,831 18,831 500,000 415,728 415,728
29 74 0 655,842 0 0 4,993 4,993 500,000 431,435 431,435
30 75 0 688,634 0 0 0 0 0 447,531 447,531
31 76 0 723,066 0 0 0 0 0 464,067 464,067
32 77 0 759,219 0 0 0 0 0 480,983 480,983
33 78 0 797,180 0 0 0 0 0 498,249 498,249
34 79 0 837,039 0 0 0 0 0 515,239 515,239
35 80 0 878,891 0 0 0 0 0 532,399 532,399
36 81 0 922,836 0 0 0 0 0 549,833 549,833
37 82 0 968,977 0 0 0 0 0 567,457 567,457
38 83 0 1,017,426 0 0 0 0 0 586,066 586,066
39 84 0 1,068,298 0 0 0 0 0 605,173 605,173
40 85 0 1,121,712 0 0 0 0 0 624,661 624,661
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR (GROSS)
- - ---- --------
<S> <C>
1 500,000
2 500,000
3 500,000
4 500,000
5 500,000
6 500,000
7 500,000
8 500,000
9 500,000
10 500,000
11 500,000
12 500,000
13 500,000
14 500,000
15 500,000
16 500,000
17 505,693
18 512,374
19 519,298
20 526,581
21 534,144
22 542,139
23 550,497
24 559,117
25 567,976
26 557,062
27 586,410
28 596,278
29 606,382
30 616,832
31 627,882
32 639,323
33 651,161
34 662,546
35 673,963
36 685,642
37 697,347
38 710,136
39 723,484
40 737,287
</TABLE>
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY COMPLIANCE
REPORT 1, THE DISCLOSURE PAGE, THE CONTINUATION OF COMPLIANCE REPORT 2, AND THE
SUPPLEMENTAL FOOTNOTE PAGE.
G-7
<PAGE> 115
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2 ...continuation
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR @ 0% @ 0% @ 0% @ 6% @ 6%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1,177,798 0 0 0 0 0 644,675 644,675
42 87 0 1,236,688 0 0 0 0 0 665,098 665,098
43 88 0 1,298,522 0 0 0 0 0 686,116 686,116
44 89 0 1,363,449 0 0 0 0 0 707,822 707,822
45 90 0 1,431,621 0 0 0 0 0 730,387 730,387
46 91 0 1,503,202 0 0 0 0 0 753,952 753,952
47 92 0 1,578,362 0 0 0 0 0 779,116 779,116
48 93 0 1,657,280 0 0 0 0 0 806,529 806,529
49 94 0 1,740,144 0 0 0 0 0 837,245 837,245
50 95 0 1,827,151 0 0 0 0 0 872,930 872,930
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR (GROSS)
- - ---- --------
<S> <C>
41 751,691
42 766,592
43 781,966
44 797,857
45 814,163
46 830,629
47 847,366
48 864,438
49 881,703
50 899,118
</TABLE>
ASSUME CURRENT CHARGES AND A GROSS INVESTMENT RETURN OF 0.00%, CONTRACT LAPSES
AFTER AGE 74. ASSUMING CURRENT CHARGES AND A GROSS INVESTMENT RETURN OF 6.00%,
THIS CONTRACT MATURES AT ANNIVERSARY AT AGE 95. THIS IS AN ILLUSTRATION, NOT A
CONTRACT. FOR PRESENTATION IN ARIZONA 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 A POLICYHOLDER, AND THE DIFFERENT INVESTMENT RATES OF RETURN
ACHIEVED BY THE SUB ACCOUNT CHOSEN BY THE POLICYHOLDER. THE SURRENDER VALUE,
ACCOUNT VALUE AND BENEFIT PAYABLE AT DEATH FOR A CONTRACT WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO THE
CONTRACT AVERAGED 0.00% OR 6.00% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS
CAN BE MADE THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE
YEAR, OR SUSTAINED OVER ANY PERIOD OF TIME.
PREPARED BY: AGENT DATE PREPARED: 11/6/96
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY COMPLIANCE
REPORT 1, DISCLOSURE PAGE, AND SUPPLEMENTAL FOOTNOTE PAGE.
G-8
<PAGE> 116
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------
NONE
------------------------------------------------
From Year 0 to Year 0
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 LAW RELATING TO THE
DEFINITION OF LIFE INSURANCE AND IS IN COMPLIANCE BASED ON PROPOSED PREMIUM
PAYMENTS AND COVERAGES. ANY DECREASE IN SPECIFIED AMOUNT AND/OR TARGET DEATH
BENEFIT AND/OR A CHANGE IN DEATH BENEFIT 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 CONTRACT, 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.
VALUES SHOWN ON THIS ILLUSTRATION ARE BASED ON A POLICY OWNER TAX BRACKET OF
0.00%.
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 BENEFIT , ACCOUNT VALUE AND
SURRENDER VALUE WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS,
FREQUENCIES, OR NOT ON THE DUE DATE.
THE POLICY'S SURRENDER VALUE INCLUDES ANY SALES CHARGE REFUND ON FULL SURRENDER.
THE SALES CHARGE REFUND EQUALS THE SALES CHARGE COLLECTED IN THE FIRST POLICY
YEAR OR THE FIRST POLICY YEAR OF AN INCREASE ADJUSTED BY THE FOLLOWING SCHEDULE:
YEAR 1-100%
YEAR 2-66.67%
YEAR 3-33.33%
PREMIUMS LESS THE FOLLOWING DEDUCTIONS ARE ADDED TO THE ACCOUNT VALUE. (1) A
PREMIUM TAX CHARGE OF 2.00% OF GROSS PREMIUMS IN ALL YEARS. (2) A SALES CHARGE
ON THE GROSS PREMIUM EQUALS TO 9% UP TO THE TARGET PREMIUM IN YEAR 1-10, 0% IN
POLICY YEARS 11 AND AFTER AND 0% OF PREMIUM IN EXCESS OF THE TARGET PREMIUM IN
ALL YEARS. (3) A DAC TAX CHARGE OF 1.25% OF GROSS PREMIUMS IN ALL YEARS.
REFER TO PROSPECTUS
G-9
<PAGE> 117
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE ...continuation
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
THOSE COLUMNS ASSUMING GUARANTEED CHARGES USE THE CURRENT MONTHLY MORTALITY
CHARGES AND CURRENT CHARGES FOR RIDER BENEFITS IF ANY, FOR THE FIRST YEAR AS
WELL AS THE ASSUMED HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN INDICATED.
THEREAFTER THESE COLUMNS USE GUARANTEED CHARGES FOR MONTHLY MORTALITY CHARGES,
RIDER BENEFITS IF ANY, 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 ARE DECLARED BY MONY LIFE INSURANCE COMPANY OF AMERICA, ARE
GUARANTEED FOR THE FIRST POLICY YEAR, AND APPLY TO POLICIES ISSUED AS OF THE
PREPARATION DATE SHOWN. AFTER THE FIRST POLICY YEAR, CURRENT CHARGES ARE NOT
GUARANTEED, AND MAY BE CHANGED AT THE DISCRETION OF MONY LIFE INSURANCE COMPANY
OF AMERICA.
THE DIFFERENCE BETWEEN THE ACCOUNT VALUE AND THE VALUE UPON SURRENDER IS ANY
OUTSTANDING DEBT PLUS ANY APPLICABLE SALES CHARGE REFUND. A PARTIAL SURRENDER
AMOUNT AND THE PARTIAL SURRENDER FEE ($25.00 OR 2% OF THE AMOUNT SURRENDERED, IF
LESS) COULD BE DEDUCTED FROM THE BENEFIT PAYABLE AT DEATH, AND WILL BE DEDUCTED
FROM THE ACCOUNT VALUE AND THE VALUE UPON SURRENDER.
A POLICY LOAN WILL HAVE A PERMANENT EFFECT ON BENEFITS UNDER THE POLICY. LOAN
INTEREST AT AN ANNUAL RATE OF 4.6% WILL BE CHARGED IN ARREARS. AMOUNTS BORROWED
WILL EARN INTEREST AT AN ANNUAL RATE OF 4%. AFTER THE 10TH POLICY ANNIVERSARY
THE ANNUAL INTEREST RATE APPLICABLE TO THE LOAN ACCOUNT WILL BE 0.30% HIGHER
THAN THE RATE APPLICABLE TO POLICIES OF THE SAME TYPE WHICH HAVE NOT REACHED
THEIR 10TH POLICY ANNIVERSARY. THIS INCREASE IS ANTICIPATED BUT NOT GUARANTEED.
THIS INCREASE IS BASED ON CURRENT EXPECTATIONS AS TO MORTALITY, INVESTMENT
EARNINGS, PERSISTENCY AND EXPENSES AND IS NOT GUARANTEED. ADVERSE TAX
CONSEQUENCES COULD OCCUR IF A POLICY SUBJECT TO LOANS IS SURRENDERED OR
PERMITTED TO LAPSE. IN ADDITION, LOAN INTEREST MAY NOT BE DEDUCTIBLE. PLEASE
CONSULT YOUR TAX ADVISOR FOR ADVICE SURROUNDING THE DEDUCTIBILITY OF LOAN
INTEREST AND OTHER TAX CONSEQUENCES.
AN ADMINISTRATIVE CHARGE IS DEDUCTED EACH MONTH. DURING THE FIRST 36 POLICY
MONTHS THE CHARGE IS $10.50 PER MONTH, THEREAFTER, THE CHARGE IS $7.50 PER
MONTH.
REFER TO PROSPECTUS
G-10
<PAGE> 118
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 12.0% (11.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANUAL FR INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26,225 27,536 0 0 23,697 21,336 500,000 26,356 23,996
2 47 26,225 56,449 0 0 43,590 42,016 500,000 51,729 50,155
3 48 26,225 86,808 0 0 63,184 62,397 500,000 79,880 79,093
4 49 26,225 118,684 0 0 82,479 82,479 500,000 111,118 111,118
5 50 26,225 152,155 0 0 102,243 102,243 500,000 146,561 146,561
6 51 26,225 187,298 0 0 121,705 121,705 500,000 185,829 185,829
7 52 26,225 224,200 0 0 140,839 140,839 500,000 229,078 229,078
8 53 0 235,410 0 0 136,818 136,818 500,000 251,216 251,216
9 54 0 247,180 0 0 132,607 132,607 500,000 275,397 275,397
10 55 0 259,539 0 0 128,202 128,202 500,000 301,820 301,820
11 56 0 272,516 0 0 123,744 123,744 500,000 331,153 331,153
12 57 0 286,142 0 0 118,986 118,986 500,000 363,176 363,176
13 58 0 300,449 0 0 113,919 113,919 500,000 398,155 398,155
14 59 0 315,471 0 0 108,491 108,491 500,000 436,324 436,324
15 60 0 331,245 0 0 102,643 102,643 500,000 477,942 477,942
16 61 0 347,807 0 0 96,315 96,315 500,000 523,289 523,289
17 62 0 365,197 0 0 89,443 89,443 500,000 572,669 572,669
18 63 0 383,457 0 0 81,957 81,957 500,000 626,418 626,418
19 64 0 402,630 0 0 73,681 73,681 500,000 684,772 684,772
20 65 0 422,762 0 0 64,581 64,581 500,000 748,180 748,180
21 66 0 443,900 0 0 54,458 54,458 500,000 816,935 816,935
22 67 0 466,095 0 0 43,206 43,206 500,000 891,489 891,489
23 68 0 489,399 0 0 30,646 30,646 500,000 972,270 972,270
24 69 0 513,869 0 0 16,582 16,582 500,000 1,059,753 1,059,750
25 70 0 539,563 0 0 851 851 500,000 1,154,528 1,154,528
26 71 0 566,541 0 0 0 0 0 1,257,037 1,257,037
27 72 0 594,868 0 0 0 0 0 1,367,377 1,367,377
28 73 0 624,611 0 0 0 0 0 1,486,703 1,486,703
29 74 0 655,842 0 0 0 0 0 1,615,161 1,615,161
30 75 0 688,634 0 0 0 0 0 1,753,209 1,753,209
31 76 0 723,066 0 0 0 0 0 1,901,557 1,901,557
32 77 0 759,219 0 0 0 0 0 2,060,939 2,060,939
33 78 0 797,180 0 0 0 0 0 2,232,162 2,232,162
34 79 0 837,039 0 0 0 0 0 2,416,308 2,416,308
35 80 0 878,891 0 0 0 0 0 2,614,477 2,614,477
36 81 0 922,836 0 0 0 0 0 2,827,711 2,827,711
37 82 0 968,977 0 0 0 0 0 3,056,937 3,056,937
38 83 0 1,017,426 0 0 0 0 0 3,303,040 3,303,040
39 84 0 1,068,298 0 0 0 0 0 3,567,100 3,567,100
40 85 0 1,121,712 0 0 0 0 0 3,850,188 3,850,188
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR (GROSS)
- - ---- --------
<S> <C>
1 500,000
2 500,000
3 500,000
4 500,000
5 500,000
6 500,000
7 575,032
8 611,284
9 649,772
10 690,746
11 735,358
12 782,863
13 833,457
14 887,352
15 944,701
16 1,005,761
17 1,070,777
18 1,140,017
19 1,213,554
20 1,291,957
21 1,375,310
22 1,464,181
23 1,558,841
24 1,659,573
25 1,767,120
26 1,881,408
27 2,002,524
28 2,132,378
29 2,270,109
30 2,416,448
31 2,572,807
32 2,739,401
33 2,917,212
34 3,107,131
35 3,309,666
36 3,526,155
37 3,756,670
38 4,002,293
39 4,264,468
40 4,544,377
</TABLE>
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY THE DISCLOSURE
PAGE, CONTINUATION OF COMPLIANCE REPORT 1, AND SUPPLEMENTAL FOOTNOTE PAGE.
G-11
<PAGE> 119
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1 ...continuation
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 12.0% (11.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR @ 0% @ 0% @ 0% @ 12% @ 12%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- ---------- ---------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1,177,798 0 0 0 0 0 4,154,013 4,154,013
42 87 0 1,236,688 0 0 0 0 0 4,480,591 4,480,591
43 88 0 1,298,522 0 0 0 0 0 4,832,631 4,832,631
44 89 0 1,363,449 0 0 0 0 0 5,213,656 5,213,656
45 90 0 1,431,621 0 0 0 0 0 5,628,072 5,628,072
46 91 0 1,503,202 0 0 0 0 0 6,082,031 6,082,031
47 92 0 1,578,362 0 0 0 0 0 6,583,909 6,583,909
48 93 0 1,657,280 0 0 0 0 0 7,146,017 7,146,017
49 94 0 1,740,144 0 0 0 0 0 7,787,620 7,787,620
50 95 0 1,827,151 0 0 0 0 0 8,539,903 8,539,903
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR (GROSS)
- - ---- --------
<S> <C>
41 4,843,579
42 5,164,330
43 5,507,750
44 5,876,833
45 6,273,611
46 6,700,574
47 7,160,659
48 7,659,101
49 8,201,143
50 8,796,100
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s) and Date)
Illustration Delivered
(Signature of Representative and Date)
ASSUME GUARANTEED CHARGES AND A GROSS INVESTMENT RETURN OF 0.00%, CONTRACT
LAPSES AFTER AGE 70. ASSUMING GUARANTEED CHARGES AND A GROSS INVESTMENT RETURN
OF 12.00%, THIS CONTRACT MATURES AT ANNIVERSARY AT AGE 95. THIS IS AN
ILLUSTRATION, NOT A CONTRACT. FOR PRESENTATION IN ARIZONA 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 A POLICYHOLDER, AND THE DIFFERENT
INVESTMENT RATES OF RETURN ACHIEVED BY THE SUB ACCOUNT CHOSEN BY THE
POLICYHOLDER. THE SURRENDER VALUE, ACCOUNT VALUE AND BENEFIT PAYABLE AT DEATH
FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE CONTRACT AVERAGED 0.00% OR 12.00% OVER A
PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THOSE AVERAGES FOR
INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER
ANY PERIOD OF TIME.
PREPARED BY: AGENT DATE PREPARED: 11/6/1996
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY DISCLOSURE PAGE
AND SUPPLEMENTAL FOOTNOTE PAGE.
G-12
<PAGE> 120
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 12.0% (11.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION I DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26,225 27,536 0 0 23,697 21,336 500,000 26,356 23,996
2 47 26,225 56,449 0 0 43,862 42,289 500,000 52,016 50,442
3 48 26,225 86,808 0 0 63,663 62,876 500,000 80,414 79,627
4 49 26,225 118,684 0 0 83,152 83,152 500,000 111,912 111,912
5 50 26,225 152,155 0 0 103,052 103,052 500,000 147,580 147,580
6 51 26,225 187,298 0 0 122,731 122,731 500,000 187,167 187,167
7 52 26,225 224,200 0 0 142,198 142,198 500,000 230,881 230,881
8 53 0 235,410 0 0 138,640 138,640 500,000 253,673 253,673
9 54 0 247,180 0 0 135,068 135,068 500,000 278,774 278,774
10 55 0 259,539 0 0 131,482 131,482 500,000 306,422 306,422
11 56 0 272,516 0 0 128,270 128,270 500,000 337,895 337,895
12 57 0 286,142 0 0 124,985 124,985 500,000 372,625 372,625
13 58 0 300,449 0 0 121,490 121,490 500,000 410,798 410,798
14 59 0 315,471 0 0 117,783 117,783 500,000 452,766 452,766
15 60 0 331,245 0 0 113,813 113,813 500,000 498,861 498,861
16 61 0 347,807 0 0 109,483 109,483 500,000 549,348 549,348
17 62 0 365,197 0 0 104,833 104,833 500,000 604,846 604,846
18 63 0 383,457 0 0 99,806 99,806 500,000 665,687 665,687
19 64 0 402,630 0 0 94,394 94,394 500,000 732,458 732,458
20 65 0 422,762 0 0 88,635 88,635 500,000 805,839 805,839
21 66 0 443,900 0 0 82,420 82,420 500,000 886,374 886,374
22 67 0 466,095 0 0 75,783 75,783 500,000 974,874 974,874
23 68 0 489,399 0 0 68,609 68,609 500,000 1,072,010 1,072,010
24 69 0 513,869 0 0 60,720 60,720 500,000 1,178,465 1,178,465
25 70 0 539,563 0 0 51,874 51,874 500,000 1,294,842 1,294,842
26 71 0 566,541 0 0 42,081 42,081 500,000 1,422,255 1,422,255
27 72 0 594,868 0 0 31,070 31,070 500,000 1,561,500 1,561,500
28 73 0 624,611 0 0 18,831 18,831 500,000 1,713,868 1,713,868
29 74 0 655,842 0 0 4,993 4,993 500,000 1,880,275 1,880,275
30 75 0 688,634 0 0 0 0 0 2,061,888 2,061,888
31 76 0 723,066 0 0 0 0 0 2,260,250 2,260,250
32 77 0 759,219 0 0 0 0 0 2,476,505 2,476,505
33 78 0 797,180 0 0 0 0 0 2,711,983 2,711,983
34 79 0 837,039 0 0 0 0 0 2,964,694 2,964,694
35 80 0 878,891 0 0 0 0 0 3,238,449 3,238,449
36 81 0 922,836 0 0 0 0 0 3,535,563 3,535,563
37 82 0 968,977 0 0 0 0 0 3,857,323 3,857,323
38 83 0 1,017,426 0 0 0 0 0 4,211,388 4,211,388
39 84 0 1,068,298 0 0 0 0 0 4,597,077 4,597,077
40 85 0 1,121,712 0 0 0 0 0 5,016,132 5,016,132
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR (GROSS)
- - ---- --------
<S> <C>
1 500,000
2 500,000
3 500,000
4 500,000
5 500,000
6 500,000
7 579,557
8 617,263
9 657,739
10 701,277
11 750,329
12 803,213
13 859,924
14 920,790
15 986,048
16 1,055,916
17 1,130,941
18 1,211,483
19 1,298,062
20 1,391,523
21 1,492,210
22 1,601,134
23 1,718,967
24 1,845,476
25 1,981,885
26 2,128,690
27 2,286,816
28 2,458,201
29 2,642,727
30 2,841,901
31 3,058,119
32 3,291,770
33 3,544,291
34 3,812,300
35 4,099,552
36 4,408,847
37 4,740,270
38 5,102,938
39 5,495,808
40 5,920,541
</TABLE>
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY COMPLIANCE
REPORT 1, THE DISCLOSURE PAGE, THE CONTINUATION OF COMPLIANCE REPORT 2, AND THE
SUPPLEMENTAL FOOTNOTE PAGE.
G-13
<PAGE> 121
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2 ...continuation
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 12.0% (11.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR @ 0% @ 0% @ 0% @ 12% @ 12%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1,177,798 0 0 0 0 0 5,472,507 5,472,507
42 87 0 1,236,688 0 0 0 0 0 5,968,301 5,968,301
43 88 0 1,298,522 0 0 0 0 0 6,508,504 6,508,504
44 89 0 1,363,449 0 0 0 0 0 7,097,817 7,097,817
45 90 0 1,431,621 0 0 0 0 0 7,742,303 7,742,303
46 91 0 1,503,202 0 0 0 0 0 8,448,415 8,448,415
47 92 0 1,578,362 0 0 0 0 0 9,228,838 9,228,838
48 93 0 1,657,280 0 0 0 0 0 10,098,973 10,098,973
49 94 0 1,740,144 0 0 0 0 0 11,082,061 11,082,061
50 95 0 1,827,151 0 0 0 0 0 12,213,964 12,213,964
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR (GROSS)
- - ---- --------
<S> <C>
41 6,380,943
42 6,879,064
43 7,417,742
44 8,000,660
45 8,630,345
46 9,307,619
47 10,037,285
48 10,824,079
49 11,670,519
50 12,580,383
</TABLE>
ASSUME CURRENT CHARGES AND A GROSS INVESTMENT RETURN OF 0.00%. CONTRACT LAPSES
AFTER AGE 74. ASSUMING CURRENT CHARGES AND A GROSS INVESTMENT RETURN OF 12.00%
THIS CONTRACT MATURES AT ANNIVERSARY AT AGE 95. THIS IS AN ILLUSTRATION, NOT A
CONTRACT. FOR PRESENTATION IN ARIZONA 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 A POLICYHOLDER, AND THE DIFFERENT INVESTMENT RATES OF RETURN
ACHIEVED BY THE SUB ACCOUNT CHOSEN BY THE POLICYHOLDER. THE SURRENDER VALUE,
ACCOUNT VALUE AND BENEFIT PAYABLE AT DEATH FOR A CONTRACT WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO THE
CONTRACT AVERAGED 0.00% OR 12.00% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS
CAN BE MADE FLUCTUATED ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT
YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL RATES OF RETURN
CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF TIME.
PREPARED BY: AGENT DATE PREPARED: 11/6/1996
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY COMPLIANCE
REPORT 1, DISCLOSURE PAGE, AND SUPPLEMENTAL FOOTNOTE PAGE.
G-14
<PAGE> 122
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------
NONE
------------------------------------------------
From Year 0 to Year 0
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 LAW RELATING TO THE
DEFINITION OF LIFE INSURANCE AND IS IN COMPLIANCE BASED ON PROPOSED PREMIUM
PAYMENTS AND COVERAGES. ANY DECREASE IN SPECIFIED AMOUNT AND/OR TARGET DEATH
BENEFIT AND/OR A CHANGE IN DEATH BENEFIT 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 CONTRACT, 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.
VALUES SHOWN ON THIS ILLUSTRATION ARE BASED ON A POLICY OWNER TAX BRACKET OF
0.00%.
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 BENEFIT, ACCOUNT VALUE AND
SURRENDER VALUE WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS,
FREQUENCIES, OR NOT ON THE DUE DATE.
THE POLICY'S SURRENDER VALUE INCLUDES ANY SALES CHARGE REFUND ON FULL SURRENDER.
THE SALES CHARGE REFUND EQUALS THE SALES CHARGE COLLECTED IN THE FIRST POLICY
YEAR OR THE FIRST POLICY YEAR OF AN INCREASE ADJUSTED BY THE FOLLOWING SCHEDULE:
YEAR 1 - 100%
YEAR 2 - 66.67%
YEAR 3 - 33.33%
PREMIUMS LESS THE FOLLOWING DEDUCTIONS ARE ADDED TO THE ACCOUNT VALUE. (1) A
PREMIUM TAX CHARGE OF 2.00% OF GROSS PREMIUMS IN ALL YEARS. (2) A SALES CHARGE
ON THE GROSS PREMIUM EQUALS TO 9% UP TO THE TARGET PREMIUM IN YEARS 1-10, 0% IN
POLICY YEARS 11 AND AFTER, AND 0% OF PREMIUM IN EXCESS OF THE TARGET PREMIUM IN
ALL YEARS. (3) A DAC TAX CHARGE OF 1.25% OF GROSS PREMIUMS IN ALL YEARS.
REFER TO PROSPECTUS
G-15
<PAGE> 123
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE ...continuation
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 12.0% (11.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION I DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
THOSE COLUMNS ASSUMING GUARANTEED CHARGES USE THE CURRENT MONTHLY MORTALITY
CHARGES AND CURRENT CHARGES FOR RIDER BENEFITS IF ANY, FOR THE FIRST YEAR AS
WELL AS THE ASSUMED HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN INDICATED.
THEREAFTER THESE COLUMNS USE GUARANTEED CHARGES FOR MONTHLY MORTALITY CHARGES,
RIDER BENEFITS IF ANY, 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 ARE DECLARED BY MONY LIFE INSURANCE COMPANY OF AMERICA, ARE
GUARANTEED FOR THE FIRST POLICY YEAR, AND APPLY TO POLICIES ISSUED AS OF THE
PREPARATION DATE SHOWN. AFTER THE FIRST POLICY YEAR CURRENT CHARGES ARE NOT
GUARANTEED, AND MAY BE CHANGED AT THE DISCRETION OF MONY LIFE INSURANCE COMPANY
OF AMERICA.
THE DIFFERENCE BETWEEN THE ACCOUNT VALUE AND THE VALUE UPON SURRENDER IS ANY
OUTSTANDING DEBT PLUS ANY APPLICABLE SALES CHARGE REFUND. A PARTIAL SURRENDER,
THE SURRENDER AMOUNT AND THE PARTIAL SURRENDER FEE ($25.00 OR 2% OF THE AMOUNT
SURRENDERED, IF LESS) COULD BE DEDUCTED FROM THE BENEFIT PAYABLE AT DEATH, AND
WILL BE DEDUCTED FROM THE ACCOUNT VALUE AND THE VALUE UPON SURRENDER.
A POLICY LOAN WILL HAVE A PERMANENT EFFECT ON BENEFITS UNDER THIS POLICY. LOAN
INTEREST AT AN ANNUAL RATE OF 4.6% WILL BE CHARGED IN ARREARS. AMOUNTS BORROWED
WILL EARN INTEREST AT AN ANNUAL RATE OF 4%. AFTER THE 10TH POLICY ANNIVERSARY
THE ANNUAL INTEREST RATE APPLICABLE TO THE LOAN ACCOUNT WILL BE 0.30% HIGHER
THAN THE RATE APPLICABLE TO POLICIES OF THE SAME TYPE WHICH HAVE NOT REACHED
THEIR 10TH POLICY ANNIVERSARY. THIS INCREASE IS ANTICIPATED BUT NOT GUARANTEED.
THIS INCREASE IS BASED ON CURRENT EXPECTATIONS AS TO MORTALITY, INVESTMENT
EARNINGS, PERSISTENCY AND EXPENSES AND IS NOT GUARANTEED. ADVERSE TAX
CONSEQUENCES COULD OCCUR IF A POLICY SUBJECT TO LOANS IS SURRENDERED OR
PERMITTED TO LAPSE. IN ADDITION, THE LOAN INTEREST MAY NOT BE DEDUCTIBLE. PLEASE
CONSULT YOUR TAX ADVISOR FOR ADVICE SURROUNDING THE DEDUCTIBILITY OF LOAN
INTEREST AND OTHER TAX CONSEQUENCES.
AN ADMINISTRATIVE CHARGE IS DEDUCTED EACH MONTH. DURING THE FIRST 36 POLICY
MONTHS THE CHARGE IS $10.50 PER MONTH, THEREAFTER, THE CHARGE IS $7.50 PER
MONTH.
REFER TO PROSPECTUS
G-16
<PAGE> 124
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $250,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR @ 0% @ 0% @ 0% @ 6% @ 6%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- ---------- ---------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26,225 27,536 0 0 23,863 22,680 500,000 25,269 24,086
2 47 26,225 56,449 0 0 45,302 44,513 500,000 49,521 48,733
3 48 26,225 86,808 0 0 66,432 66,037 500,000 74,913 74,518
4 49 26,225 118,684 0 0 87,253 87,253 500,000 101,502 101,502
5 50 26,225 152,155 0 0 108,144 108,144 500,000 129,727 129,727
6 51 26,225 187,298 0 0 128,726 128,726 500,000 159,277 159,277
7 52 26,225 224,200 0 0 148,975 148,975 500,000 190,205 190,205
8 53 0 235,410 0 0 144,896 144,896 500,000 197,145 197,145
9 54 0 247,180 0 0 140,634 140,634 500,000 204,268 204,268
10 55 0 259,539 0 0 136,182 113,182 500,000 211,590 211,590
11 56 0 272,516 0 0 131,696 131,696 500,000 219,431 219,431
12 57 0 286,142 0 0 126,916 126,916 500,000 227,474 227,474
13 58 0 300,449 0 0 121,836 121,836 500,000 235,746 235,746
14 59 0 315,471 0 0 116,396 116,396 500,000 244,242 244,242
15 60 0 331,245 0 0 110,546 110,546 500,000 252,961 252,961
16 61 0 347,807 0 0 104,224 104,224 500,000 261,903 261,903
17 62 0 365,197 0 0 97,367 97,367 500,000 271,066 271,066
18 63 0 383,457 0 0 89,907 89,907 500,000 280,446 280,446
19 64 0 402,630 0 0 81,671 81,671 500,000 289,985 289,985
20 65 0 422,762 0 0 72,624 72,624 500,000 299,702 299,702
21 66 0 443,900 0 0 62,570 62,570 500,000 309,547 309,547
22 67 0 466,095 0 0 51,404 51,404 500,000 319,529 319,529
23 68 0 489,399 0 0 38,950 38,950 500,000 329,637 329,637
24 69 0 513,869 0 0 25,013 25,013 500,000 339,867 339,867
25 70 0 539,563 0 0 9,431 9,431 500,000 350,238 350,238
26 71 0 566,541 0 0 0 0 0 360,714 360,714
27 72 0 594,868 0 0 0 0 0 371,158 371,158
28 73 0 624,611 0 0 0 0 0 381,726 381,726
29 74 0 655,842 0 0 0 0 0 392,284 392,284
30 75 0 688,634 0 0 0 0 0 402,788 402,788
31 76 0 723,066 0 0 0 0 0 413,248 413,248
32 77 0 759,219 0 0 0 0 0 423,669 423,669
33 78 0 797,180 0 0 0 0 0 434,057 434,057
34 79 0 837,039 0 0 0 0 0 444,462 444,462
35 80 0 878,891 0 0 0 0 0 454,914 454,914
36 81 0 922,836 0 0 0 0 0 465,417 465,417
37 82 0 968,977 0 0 0 0 0 475,945 475,945
38 83 0 1,017,426 0 0 0 0 0 486,462 486,462
39 84 0 1,068,298 0 0 0 0 0 496,953 496,953
40 85 0 1,121,712 0 0 0 0 0 507,397 507,397
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR (GROSS)
- - ---- --------
<S> <C>
1 500,000
2 500,000
3 500,000
4 500,000
5 500,000
6 500,000
7 500,000
8 500,000
9 500,000
10 500,000
11 500,000
12 500,000
13 500,000
14 500,000
15 500,002
16 503,378
17 506,839
18 510,384
19 513,911
20 517,526
21 521,123
22 524,794
23 528,507
24 532,231
25 536,074
26 539,880
27 543,561
28 547,510
29 551,355
30 555,163
31 559,125
32 563,141
33 567,270
34 571,534
35 575,875
36 580,375
37 584,889
38 589,445
39 594,107
40 598,880
</TABLE>
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY THE DISCLOSURE
PAGE, CONTINUATION OF COMPLIANCE REPORT 1, AND SUPPLEMENTAL FOOTNOTE PAGE.
G-17
<PAGE> 125
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1 ...continuation
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $250,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1,177,798 0 0 0 0 0 517,845 517,845
42 87 0 1,236,688 0 0 0 0 0 528,366 528,366
43 88 0 1,298,522 0 0 0 0 0 539,078 539,078
44 89 0 1,363,449 0 0 0 0 0 550,148 550,148
45 90 0 1,431,621 0 0 0 0 0 561,781 561,781
46 91 0 1,503,202 0 0 0 0 0 574,285 574,285
47 92 0 1,578,362 0 0 0 0 0 588,077 588,077
48 93 0 1,657,280 0 0 0 0 0 603,793 603,793
49 94 0 1,740,144 0 0 0 0 0 622,448 622,448
50 95 0 1,827,151 0 0 0 0 0 645,695 645,696
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR (GROSS)
- - ---- --------
<S> <C>
41 603,808
42 608,995
43 614,387
44 620,127
45 626,217
46 632,689
47 639,593
48 647,145
49 655,500
50 665,066
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s) and Date)
Illustration Delivered
(Signature of Representative and Date)
ASSUME GUARANTEED CHARGES AND A GROSS INVESTMENT RETURN OF 0.00%. CONTRACT
LAPSES AFTER AGE 70. ASSUMING GUARANTEED CHARGES AND A GROSS INVESTMENT RETURN
OF 6.00%, THIS CONTRACT MATURES AT ANNIVERSARY AT AGE 95. THIS IS AN
ILLUSTRATION, NOT A CONTRACT. FOR PRESENTATION IN ARIZONA 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 A POLICYHOLDER, AND THE DIFFERENT
INVESTMENT RATES OF RETURN ACHIEVED BY THE SUB ACCOUNT CHOSEN BY THE
POLICYHOLDER. THE SURRENDER VALUE, ACCOUNT VALUE AND BENEFIT PAYABLE AT DEATH
FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE CONTRACT AVERAGED 0.00% OR 6.00% OVER A
PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THOSE AVERAGES FOR
INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER
ANY PERIOD OF TIME.
PREPARED BY: AGENT DATE PREPARED: 11/6/1996
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY DISCLOSURE PAGE
AND SUPPLEMENTAL FOOTNOTE PAGE.
G-18
<PAGE> 126
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $250,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26,225 27,536 0 0 23,863 22,680 500,000 25,269 24,086
2 47 26,225 56,449 0 0 45,722 44,933 500,000 49,954 49,165
3 48 26,225 86,808 0 0 67,204 66,809 500,000 75,731 75,337
4 49 26,225 118,684 0 0 88,364 88,364 500,000 102,696 102,696
5 50 26,225 152,155 0 0 109,506 109,506 500,000 131,215 131,215
6 51 26,225 187,298 0 0 130,391 130,391 500,000 161,110 161,110
7 52 26,225 224,200 0 0 151,043 151,043 500,000 192,461 192,461
8 53 0 235,410 0 0 147,524 147,524 500,000 199,954 199,954
9 54 0 247,180 0 0 144,009 144,009 500,000 207,793 207,793
10 55 0 259,539 0 0 140,434 140,434 500,000 215,992 215,992
11 56 0 272,516 0 0 137,223 137,223 500,000 225,254 225,254
12 57 0 286,142 0 0 133,895 133,895 500,000 234,953 234,953
13 58 0 300,449 0 0 130,363 130,363 500,000 245,011 245,011
14 59 0 315,471 0 0 126,624 126,624 500,000 255,445 255,445
15 60 0 331,245 0 0 122,627 122,627 500,000 266,237 266,237
16 61 0 347,807 0 0 118,278 118,278 500,000 277,350 277,350
17 62 0 365,197 0 0 113,616 113,616 500,000 288,842 288,842
18 63 0 383,457 0 0 108,586 108,586 500,000 300,710 300,710
19 64 0 402,630 0 0 103,178 103,178 500,000 312,984 312,984
20 65 0 422,762 0 0 97,431 97,431 500,000 325,724 325,724
21 66 0 443,900 0 0 91,235 91,235 500,000 338,907 338,907
22 67 0 466,095 0 0 84,627 84,627 500,000 352,593 352,593
23 68 0 489,399 0 0 77,491 77,491 500,000 366,767 366,767
24 69 0 513,869 0 0 69,654 69,654 500,000 381,389 381,389
25 70 0 539,563 0 0 60,876 60,876 500,000 396,399 396,399
26 71 0 566,541 0 0 51,168 51,168 500,000 411,869 411,869
27 72 0 594,868 0 0 40,263 40,263 500,000 427,749 427,749
28 73 0 624,611 0 0 28,150 28,150 500,000 444,112 444,112
29 74 0 655,842 0 0 14,464 14,464 500,000 460,898 460,898
30 75 0 688,634 0 0 0 0 0 478,099 478,099
31 76 0 723,066 0 0 0 0 0 495,770 495,770
32 77 0 759,219 0 0 0 0 0 513,849 513,849
33 78 0 797,180 0 0 0 0 0 532,300 532,300
34 79 0 837,039 0 0 0 0 0 550,458 550,458
35 80 0 878,891 0 0 0 0 0 568,797 568,797
36 81 0 922,836 0 0 0 0 0 587,430 587,430
37 82 0 968,977 0 0 0 0 0 606,265 606,265
38 83 0 1,017,426 0 0 0 0 0 626,153 626,153
39 84 0 1,068,298 0 0 0 0 0 646,573 646,573
40 85 0 1,121,712 0 0 0 0 0 667,401 667,401
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR (GROSS)
- - ---- --------
<S> <C>
1 500,000
2 500,000
3 500,000
4 500,000
5 500,000
6 500,000
7 500,000
8 500,000
9 500,000
10 500,000
11 500,200
12 506,464
13 512,882
14 519,498
15 526,244
16 533,068
17 540,077
18 547,262
19 554,671
20 562,460
21 570,549
22 579,099
23 588,038
24 597,255
25 606,729
26 616,444
27 626,439
28 636,989
29 647,792
30 658,964
31 670,777
32 683,008
33 695,663
34 707,834
35 720,040
36 732,525
37 745,039
38 758,709
39 772,978
40 787,733
</TABLE>
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY COMPLIANCE
REPORT 1. THE DISCLOSURE PAGE, THE CONTINUATION OF COMPLIANCE REPORT 2, AND
SUPPLEMENTAL FOOTNOTE PAGE.
G-19
<PAGE> 127
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2 ...continuation
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $250,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR @ 0% @ 0% @ 0% @ 6% @ 6%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- ---------- ---------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1,177,798 0 0 0 0 0 688,790 688,790
42 87 0 1,236,688 0 0 0 0 0 710,617 710,617
43 88 0 1,298,522 0 0 0 0 0 733,080 733,080
44 89 0 1,363,449 0 0 0 0 0 756,278 756,278
45 90 0 1,431,621 0 0 0 0 0 780,394 780,394
46 91 0 1,503,202 0 0 0 0 0 805,579 805,579
47 92 0 1,578,362 0 0 0 0 0 832,472 832,472
48 93 0 1,657,280 0 0 0 0 0 861,769 861,769
49 94 0 1,740,144 0 0 0 0 0 894,595 894,595
50 95 0 1,827,151 0 0 0 0 0 932,731 932,731
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR (GROSS)
- - ---- --------
<S> <C>
41 803,129
42 819,057
43 835,491
44 852,476
45 869,906
46 887,506
47 905,396
48 923,644
49 942,098
50 960,713
</TABLE>
ASSUME CURRENT CHARGES AND A GROSS INVESTMENT RETURN OF 0.00%, CONTRACT LAPSES
AFTER AGE 74. ASSUMING CURRENT CHARGES AND A GROSS INVESTMENT RETURN OF 6.00%
THIS CONTRACT MATURES AT ANNIVERSARY AT AGE 95. THIS IS AN ILLUSTRATION, NOT A
CONTRACT. FOR PRESENTATION IN ARIZONA 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 A POLICYHOLDER AND THE DIFFERENT INVESTMENT RATES OF RETURN
ACHIEVED BY THE SUB ACCOUNT CHOSEN BY THE POLICYHOLDER. THE SURRENDER VALUE,
ACCOUNT VALUE AND BENEFIT PAYABLE AT DEATH FOR A CONTRACT WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO THE
CONTRACT AVERAGED 0.00% OR 6.00% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS
CAN BE MADE THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE
YEAR, OR SUSTAINED OVER ANY PERIOD OF TIME.
PREPARED BY: AGENT DATE PREPARED: 11/6/1996
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY COMPLIANCE
REPORT 1, DISCLOSURE PAGE, AND SUPPLEMENTAL FOOTNOTE PAGE.
G-20
<PAGE> 128
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $250,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------
Adjustable Term Insurance Rider
------------------------------------------------
From Year 0 to Year 50
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 LAW RELATING TO THE
DEFINITION OF LIFE INSURANCE AND IS IN COMPLIANCE BASED ON PROPOSED PREMIUM
PAYMENTS AND COVERAGES. ANY DECREASE IN SPECIFIED AMOUNT AND/OR TARGET DEATH
BENEFIT AND/OR A CHANGE IN DEATH BENEFIT 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 CONTRACT, A LOAN, SURRENDER, OR ASSIGNMENT OR PLEDGE
(UNLESS SUCH ASSIGNMENT OR PLEDGE IS OF 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.
VALUES SHOWN ON THIS ILLUSTRATION ARE BASED ON A POLICY OWNER TAX BRACKET OF
0.00%.
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 BENEFIT, ACCOUNT VALUE AND
SURRENDER VALUE WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS,
FREQUENCIES, OR NOT ON THE DUE DATE.
THE POLICY'S SURRENDER VALUE INCLUDES ANY SALES CHARGE REFUND ON FULL SURRENDER.
THE SALES CHARGE REFUND EQUALS THE SALES CHARGE COLLECTED IN THE FIRST POLICY
YEAR OR THE FIRST POLICY YEAR OF AN INCREASE ADJUSTED BY THE FOLLOWING SCHEDULE:
YEAR 1-100%
YEAR 2-66.67%
YEAR 3-33.33%
PREMIUMS LESS THE FOLLOWING DEDUCTIONS ARE ADDED TO THE ACCOUNT VALUE. (1) A
PREMIUM TAX CHARGE OF 2.00% OF GROSS PREMIUMS IN ALL YEARS (2) A SALES CHARGE ON
THE GROSS PREMIUM EQUALS TO 9% UP TO THE TARGET PREMIUM IN YEARS 1-10, 0% IN
POLICY YEARS 11 AND AFTER, AND 0% OF PREMIUM IN EXCESS OF THE TARGET PREMIUM IN
ALL YEARS. (3) A DAC TAX CHARGE OF 1.25% OF GROSS PREMIUMS IN ALL YEARS.
REFER TO PROSPECTUS
G-21
<PAGE> 129
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE ...continuation
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $250,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
THOSE COLUMNS ASSUMING GUARANTEED CHARGES USE THE CURRENT MONTHLY MORTALITY
CHARGES AND CURRENT CHARGES FOR RIDER BENEFITS IF ANY, FOR THE FIRST YEAR AS
WELL AS THE ASSUMED HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN INDICATED.
THEREAFTER THESE COLUMNS USE GUARANTEED CHARGES FOR MONTHLY MORTALITY CHARGES,
RIDER BENEFITS IF ANY, 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 ARE DECLARED BY MONY LIFE INSURANCE COMPANY OF AMERICA, ARE
GUARANTEED FOR THE FIRST POLICY YEAR, AND APPLY TO POLICIES ISSUED AS OF THE
PREPARATION DATE SHOWN. AFTER THE FIRST POLICY YEAR, CURRENT CHARGES ARE NOT
GUARANTEED, AND MAY BE CHANGED AT THE DISCRETION OF MONY LIFE INSURANCE COMPANY
OF AMERICA.
THE DIFFERENCE BETWEEN THE ACCOUNT VALUE AND THE VALUE UPON SURRENDER IS ANY
OUTSTANDING DEBT PLUS ANY APPLICABLE SALES CHARGE REFUND. A PARTIAL SURRENDER,
THE SURRENDER AMOUNT AND THE PARTIAL SURRENDER FEE ($25.00 OR 2% OF THE AMOUNT
SURRENDERED, IF LESS) COULD BE DEDUCTED FROM THE BENEFIT PAYABLE AT DEATH, AND
WILL BE DEDUCTED FROM THE ACCOUNT VALUE AND THE VALUE UPON SURRENDER.
A POLICY LOAN WILL HAVE A PERMANENT EFFECT ON BENEFITS UNDER THIS POLICY. LOAN
INTEREST AT AN ANNUAL RATE OF 4.6% WILL BE CHARGED IN ARREARS. AMOUNTS BORROWED
WILL EARN INTEREST AT AN ANNUAL RATE OF 4%. AFTER THE 10TH POLICY ANNIVERSARY
THE ANNUAL INTEREST RATE APPLICABLE TO THE LOAN ACCOUNT WILL BE 0.30% HIGHER
THAN THE RATE APPLICABLE TO POLICIES OF THE SAME TYPE WHICH HAVE NOT REACHED
THEIR 10TH POLICY ANNIVERSARY. THIS INCREASE IS ANTICIPATED BUT NOT GUARANTEED.
THIS INCREASE IS BASED ON CURRENT EXPECTATIONS AS TO MORTALITY, INVESTMENT
EARNINGS, PERSISTENCY AND EXPENSES AND IS NOT GUARANTEED. ADVERSE TAX
CONSEQUENCES COULD OCCUR IF A POLICY SUBJECT TO LOANS IS SURRENDERED OR
PERMITTED TO LAPSE. IN ADDITION, LOAN INTEREST MAY NOT BE DEDUCTIBLE. PLEASE
CONSULT YOUR TAX ADVISOR FOR ADVICE SURROUNDING THE DEDUCTIBILITY OF LOAN
INTEREST AND OTHER TAX CONSEQUENCES.
AN ADMINISTRATIVE CHARGE IS DEDUCTED EACH MONTH. DURING THE FIRST 36 POLICY
MONTHS THE CHARGE IS $10.50 PER MONTH. THEREAFTER, THE CHARGE IS $7.50 PER
MONTH.
REFER TO PROSPECTUS
G-22
<PAGE> 130
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $250,000 GROSS RATE BASIS %: 12.0% (11.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANUAL FR INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26,225 27,536 0 0 23,863 22,680 500,000 26,675 25,492
2 47 26,225 56,449 0 0 45,302 44,513 500,000 53,912 53,123
3 48 26,225 86,808 0 0 66,432 66,037 500,000 84,089 83,695
4 49 26,225 118,684 0 0 87,253 87,253 500,000 117,540 117,540
5 50 26,225 152,155 0 0 108,144 108,144 500,000 155,006 155,006
6 51 26,225 187,298 0 0 128,726 128,726 500,000 196,524 196,524
7 52 26,225 224,200 0 0 148,975 148,975 500,000 242,105 242,105
8 53 0 235,410 0 0 144,896 144,896 500,000 265,508 265,508
9 54 0 247,180 0 0 140,634 140,634 500,000 291,070 291,070
10 55 0 259,539 0 0 136,182 113,182 500,000 319,002 319,002
11 56 0 272,516 0 0 131,696 131,696 500,000 350,010 350,010
12 57 0 286,142 0 0 126,916 126,916 500,000 383,863 383,863
13 58 0 300,449 0 0 121,836 121,836 500,000 420,838 420,838
14 59 0 315,471 0 0 116,396 116,396 500,000 461,188 461,188
15 60 0 331,245 0 0 110,546 110,546 500,000 505,183 505,183
16 61 0 347,807 0 0 104,224 104,224 500,000 553,120 553,120
17 62 0 365,197 0 0 97,367 97,367 500,000 605,321 605,321
18 63 0 383,457 0 0 89,907 89,907 500,000 662,139 662,139
19 64 0 402,630 0 0 81,671 81,671 500,000 723,826 723,826
20 65 0 422,762 0 0 72,624 72,624 500,000 790,855 790,855
21 66 0 443,900 0 0 62,570 62,570 500,000 863,538 863,538
22 67 0 466,095 0 0 51,404 51,404 500,000 942,350 942,350
23 68 0 489,399 0 0 38,950 38,950 500,000 1,027,746 1,027,746
24 69 0 513,869 0 0 25,013 25,013 500,000 1,120,225 1,120,225
25 70 0 539,563 0 0 9,431 9,431 500,000 1,220,414 1,220,414
26 71 0 566,541 0 0 0 0 0 1,328,778 1,328,778
27 72 0 594,868 0 0 0 0 0 1,445,421 1,445,421
28 73 0 624,611 0 0 0 0 0 1,571,562 1,571,562
29 74 0 655,842 0 0 0 0 0 1,707,358 1,707,358
30 75 0 688,634 0 0 0 0 0 1,853,292 1,853,292
31 76 0 723,066 0 0 0 0 0 2,010,114 2,010,114
32 77 0 759,219 0 0 0 0 0 2,178,600 2,178,600
33 78 0 797,180 0 0 0 0 0 2,359,603 2,359,603
34 79 0 837,039 0 0 0 0 0 2,554,269 2,554,269
35 80 0 878,891 0 0 0 0 0 2,763,757 2,763,757
36 81 0 922,836 0 0 0 0 0 2,989,172 2,989,172
37 82 0 968,977 0 0 0 0 0 3,231,492 3,231,492
38 83 0 1,017,426 0 0 0 0 0 3,491,653 3,491,653
39 84 0 1,068,298 0 0 0 0 0 3,770,797 3,770,797
40 85 0 1,121,712 0 0 0 0 0 4,070,056 4,070,056
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR (GROSS)
- - ---- --------
<S> <C>
1 500,000
2 500,000
3 500,000
4 500,000
5 500,000
6 509,076
7 607,773
8 646,060
9 686,751
10 730,069
11 777,232
12 827,454
13 880,941
14 937,918
15 998,545
16 1,063,096
17 1,131,828
18 1,205,026
19 1,282,765
20 1,365,649
21 1,453,766
22 1,547,716
23 1,647,785
24 1,754,273
25 1,867,965
26 1,988,783
27 2,116,819
28 2,254,092
29 2,399,692
30 2,554,393
31 2,719,684
32 2,895,796
33 3,083,766
34 3,284,534
35 3,498,640
36 3,727,497
37 3,971,180
38 4,230,836
39 4,507,988
40 4,803,887
</TABLE>
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY THE DISCLOSURE
PAGE, CONTINUATION OF COMPLIANCE REPORT 1, AND SUPPLEMENTAL FOOTNOTE PAGE.
G-23
<PAGE> 131
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1 ...continuation
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $250,000 GROSS RATE BASIS %: 12.0% (11.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANUAL FR INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1,177,798 0 0 0 0 0 4,391,237 4,391,237
42 87 0 1,236,688 0 0 0 0 0 4,736,470 4,736,470
43 88 0 1,298,522 0 0 0 0 0 5,108,620 5,108,620
44 89 0 1,363,449 0 0 0 0 0 5,511,410 5,511,410
45 90 0 1,431,621 0 0 0 0 0 5,949,498 5,949,498
46 91 0 1,503,202 0 0 0 0 0 6,429,390 6,429,390
47 92 0 1,578,362 0 0 0 0 0 6,959,936 6,959,936
48 93 0 1,657,280 0 0 0 0 0 7,554,153 7,554,153
49 94 0 1,740,144 0 0 0 0 0 8,232,407 8,232,407
50 95 0 1,827,151 0 0 0 0 0 9,027,661 9,027,661
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR (GROSS)
- - ---- --------
<S> <C>
41 5,120,182
42 5,459,256
43 5,822,294
44 6,212,461
45 6,631,906
46 7,083,259
47 7,569,627
48 8,096,541
49 8,669,547
50 9,298,491
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s) and Date)
Illustration Delivered
(Signature of Representative and Date)
ASSUME GUARANTEED CHARGES AND A GROSS INVESTMENT RETURN OF 0.00%. CONTRACT
LAPSES AFTER AGE 70. ASSUMING GUARANTEED CHARGES AND A GROSS INVESTMENT RETURN
OF 12.00%, THIS CONTRACT MATURES AT ANNIVERSARY AT AGE 95. THIS IS AN
ILLUSTRATION, NOT A CONTRACT. FOR PRESENTATION IN ARIZONA 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 A POLICYHOLDER, AND THE DIFFERENT
INVESTMENT RATES OF RETURN ACHIEVED BY THE SUB ACCOUNT CHOSEN BY THE
POLICYHOLDER. THE SURRENDER VALUE, ACCOUNT VALUE AND BENEFIT PAYABLE AT DEATH
FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE CONTRACT AVERAGED 0.00% OR 12.00% OVER A
PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THOSE AVERAGES FOR
INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER
ANY PERIOD OF TIME.
PREPARED BY: AGENT DATE PREPARED: 11/6/1996
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY DISCLOSURE PAGE
AND SUPPLEMENTAL FOOTNOTE PAGE.
G-24
<PAGE> 132
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $250,000 GROSS RATE BASIS %: 12.0% (11.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR @ 0% @ 0% @ 0% @ 12% @ 12%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26,225 27,536 0 0 23,863 22,680 500,000 26,675 25,492
2 47 26,225 56,449 0 0 45,722 44,933 500,000 54,356 54,356
3 48 26,225 86,808 0 0 67,204 66,809 500,000 84,955 84,560
4 49 26,225 118,684 0 0 88,364 88,364 500,000 118817 118817
5 50 26,225 152,155 0 0 109,506 109,506 500,000 156,624 156,624
6 51 26,225 187,298 0 0 130,391 130,391 500,000 198,525 198,525
7 52 26,225 224,200 0 0 151,043 151,043 500,000 244,656 244,656
8 53 0 235,410 0 0 147,524 147,524 500,000 268,814 268,814
9 54 0 247,180 0 0 144,009 144,009 500,000 295,419 295,419
10 55 0 259,539 0 0 140,434 140,434 500,000 324,723 324,723
11 56 0 272,516 0 0 137,223 137,223 500,000 358,081 358,081
12 57 0 286,142 0 0 133,895 133,895 500,000 394,892 394,892
13 58 0 300,449 0 0 130,363 130,363 500,000 435,352 435,352
14 59 0 315,471 0 0 126,624 126,624 500,000 479,834 479,834
15 60 0 331,245 0 0 122,627 122,627 500,000 528,690 528,690
16 61 0 347,807 0 0 118,278 118,278 500,000 582,240 582,240
17 62 0 365,197 0 0 113,616 113,616 500,000 641,025 641,025
18 63 0 383,457 0 0 108,586 108,586 500,000 705,510 705,510
19 64 0 402,630 0 0 103,178 103,178 500,000 776,282 776,282
20 65 0 422,762 0 0 97,431 97,431 500,000 854,059 854,059
21 66 0 443,900 0 0 91,235 91,235 500,000 939,418 939,418
22 67 0 466,095 0 0 84,627 74,627 500,000 1,033,221 1,033,221
23 68 0 489,399 0 0 77,491 77,491 500,000 1,136,185 1,136,185
24 69 0 513,869 0 0 69,654 69,654 500,000 1,249,009 1,249,009
25 70 0 539,563 0 0 60,876 60,876 500,000 1,372,358 1,372,358
26 71 0 566,541 0 0 51,168 51,168 500,000 1,507,404 1,507,404
27 72 0 594,868 0 0 40,263 40,263 500,000 1,654,991 1,654,991
28 73 0 624,611 0 0 28,150 28,150 500,000 1,816,488 1,816,488
29 74 0 655,842 0 0 14,464 14,464 500,000 1,992,864 1,992,864
30 75 0 688,634 0 0 0 0 0 2,185,357 2,185,357
31 76 0 723,066 0 0 0 0 0 2,395,603 2,295,603
32 77 0 759,219 0 0 0 0 0 2,624,814 2,624,814
33 78 0 797,180 0 0 0 0 0 2,874,400 2,874,400
34 79 0 837,039 0 0 0 0 0 3,142,251 3,142,251
35 80 0 878,891 0 0 0 0 0 3,432,406 3,432,406
36 81 0 922,836 0 0 0 0 0 3,747,321 3,747,321
37 82 0 968,977 0 0 0 0 0 4,088,363 4,088,363
38 83 0 1,017,426 0 0 0 0 0 4,463,635 4,463,635
39 84 0 1,068,298 0 0 0 0 0 4,872,431 4,872,431
40 85 0 1,121,712 0 0 0 0 0 5,316,593 5,316,593
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR (GROSS)
- - ---- --------
<S> <C>
1 500,000
2 500,000
3 500,000
4 500,000
5 500,000
6 514,260
7 614,136
8 654,106
9 697,011
10 743,161
11 795,155
12 851,230
13 911,323
14 975,838
15 1,045,009
16 1,119,066
17 1,198,588
18 1,283,958
19 1,375,726
20 1,474,789
21 1,581,511
22 1,696,962
23 1,821,645
24 1,955,947
25 2,100,531
26 2,256,132
27 2,423,734
28 2,605,388
29 2,800,970
30 3,012,078
31 3,241,251
32 3,488,902
33 3,756,553
34 4,040,620
35 4,345,083
36 4,672,910
37 5,024,189
38 5,408,587
39 5,824,992
40 6,275,175
</TABLE>
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY COMPLIANCE
REPORT 1, THE DISCLOSURE PAGE, THE CONTINUATION OF COMPLIANCE REPORT 2, AND THE
SUPPLEMENTAL FOOTNOTE PAGE.
G-25
<PAGE> 133
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1 ...continuation
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $250,000 GROSS RATE BASIS %: 12.0% (11.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- --------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1,177,798 0 0 0 0 0 5,800,309 5,800,309
42 87 0 1,236,688 0 0 0 0 0 6,325,808 6,325,808
43 88 0 1,298,522 0 0 0 0 0 6,898,375 6,898,375
44 89 0 1,363,449 0 0 0 0 0 7,522,995 7,522,995
45 90 0 1,431,621 0 0 0 0 0 8,206,092 8,206,092
46 91 0 1,503,202 0 0 0 0 0 8,954,509 8,954,509
47 92 0 1,578,362 0 0 0 0 0 9,781,688 9,78,1688
48 93 0 1,657,280 0 0 0 0 0 10,703,953 10,703,953
49 94 0 1,740,144 0 0 0 0 0 11,745,939 11,745,939
50 95 0 1,827,151 0 0 0 0 0 12,945,655 12,945,655
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR (GROSS)
- - ---- --------
<S> <C>
41 6,763,161
42 7,291,126
43 7,862,078
44 8,479,920
45 9,147,331
46 9,865,182
47 10,638,564
48 11,472,497
49 12,369,649
50 13,334,025
</TABLE>
ASSUME CURRENT CHARGES AND A GROSS INVESTMENT RETURN OF 0.00%, CONTRACT LAPSES
AFTER AGE 74. ASSUMING CURRENT CHARGES AND A GROSS INVESTMENT RETURN OF 12.00%
THIS CONTRACT MATURES AT ANNIVERSARY AT AGE 95. THIS IS AN ILLUSTRATION, NOT A
CONTRACT. FOR PRESENTATION IN ARIZONA 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 A POLICYHOLDER, AND THE DIFFERENT INVESTMENT RATES OF RETURN
ACHIEVED BY THE SUB ACCOUNT CHOSEN BY THE POLICYHOLDER. THE SURRENDER VALUE,
ACCOUNT VALUE AND BENEFIT PAYABLE AT DEATH FOR A CONTRACT WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN APPLICABLE TO THE
CONTRACT AVERAGED 0.00% OR 12.00% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED
ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS
CAN BE MADE THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE
YEAR, OR SUSTAINED OVER ANY PERIOD OF TIME.
PREPARED BY: AGENT DATE PREPARED: 11/6/96
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY COMPLIANCE
REPORT 1, DISCLOSURE PAGE, AND SUPPLEMENTAL FOOTNOTE PAGE.
G-26
<PAGE> 134
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $250,000 GROSS RATE BASIS %: 12.0% (11.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------
Adjustable Term Insurance Rider
------------------------------------------------
From Year 0 to Year 50
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 LAW RELATING TO THE
DEFINITION OF LIFE INSURANCE AND IS IN COMPLIANCE BASED ON PROPOSED PREMIUM
PAYMENTS AND COVERAGES. ANY DECREASE IN SPECIFIED AMOUNT AND/OR TARGET DEATH
BENEFIT AND/OR A CHANGE IN DEATH BENEFIT 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 CONTRACT, 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.
VALUES SHOWN ON THIS ILLUSTRATION ARE BASED ON A POLICY OWNER TAX BRACKET OF
0.00%.
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 BENEFIT, ACCOUNT VALUE AND
SURRENDER VALUE WILL DIFFER IF PREMIUMS ARE PAID IN DIFFERENT AMOUNTS,
FREQUENCIES, OR NOT ON THE DUE DATE.
THE POLICY'S SURRENDER VALUE INCLUDES ANY SALES CHARGE REFUND ON FULL
SURRENDERS. THE SALES CHARGE REFUND EQUALS THE SALES CHARGE COLLECTED IN THE
FIRST POLICY YEAR OR THE FIRST POLICY YEAR OF AN INCREASE ADJUSTED BY THE
FOLLOWING SCHEDULE:
YEAR 1-100%
YEAR 2-66.67%
YEAR 3-33.33%
PREMIUMS LESS THE FOLLOWING DEDUCTIONS ARE ADDED TO THE ACCOUNT VALUE. (1) A
PREMIUM TAX CHARGE OF 2.00% OF GROSS PREMIUMS IN ALL YEARS. (2) A SALES CHARGE
ON THE GROSS PREMIUM EQUALS TO 9% UP TO THE TARGET PREMIUM IN YEARS 1-10, 0% IN
POLICY YEARS 11 AND AFTER, AND 0% OF PREMIUM IN EXCESS OF THE TARGET PREMIUM IN
ALL YEARS. (3) A DAC TAX CHARGE OF 1.25% OF GROSS PREMIUMS IN ALL YEARS.
REFER TO PROSPECTUS
G-27
<PAGE> 135
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $250,000 GROSS RATE BASIS %: 12.0% (11.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE
</TABLE>
THOSE COLUMNS ASSUMING GUARANTEED CHARGES USE THE CURRENT MONTHLY MORTALITY
CHARGES AND CURRENT CHARGES FOR RIDER BENEFITS IF ANY, FOR THE FIRST YEAR AS
WELL AS THE ASSUMED HYPOTHETICAL GROSS ANNUAL INVESTMENT RETURN INDICATED.
THEREAFTER THESE COLUMNS USE GUARANTEED CHARGES FOR MONTHLY MORTALITY CHARGES,
RIDER BENEFITS IF ANY, 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 ARE DECLARED BY MONY LIFE INSURANCE COMPANY OF AMERICA, ARE
GUARANTEED FOR THE FIRST POLICY YEAR, AND APPLY TO POLICIES ISSUED AS OF THE
PREPARATION DATE SHOWN. AFTER THE FIRST POLICY YEAR, CURRENT CHARGES ARE NOT
GUARANTEED, AND MAY BE CHANGED AT THE DISCRETION OF MONY LIFE INSURANCE COMPANY
OF AMERICA
THE DIFFERENCE BETWEEN THE ACCOUNT VALUE AND THE VALUE UPON SURRENDER IS ANY
OUTSTANDING DEBT PLUS ANY APPLICABLE SALES CHARGE REFUND. A PARTIAL SURRENDER,
THE SURRENDER AMOUNT AND THE PARTIAL SURRENDER FEE ($25.00 OR 2% OF THE AMOUNT
SURRENDERED, IF LESS) COULD BE DEDUCTED FROM THE BENEFIT PAYABLE AT DEATH, AND
WILL BE DEDUCTED FROM THE ACCOUNT VALUE AND THE VALUE UPON SURRENDER.
A POLICY LOAN WILL HAVE A PERMANENT EFFECT ON BENEFITS UNDER THIS POLICY. LOAN
INTEREST AT AN ANNUAL RATE OF 4.6% WILL BE CHARGED IN ARREARS. AMOUNTS BORROWED
WILL EARN INTEREST AT AN ANNUAL RATE OF 4%. AFTER THE 10TH POLICY ANNIVERSARY
THE ANNUAL INTEREST RATE APPLICABLE TO THE LOAN ACCOUNT WILL BE 0.30% HIGHER
THAN THE RATE APPLICABLE TO POLICIES OF THE SAME TYPE WHICH HAVE NOT REACHED
THEIR 10TH POLICY ANNIVERSARY. THIS INCREASE IS ANTICIPATED BUT NOT GUARANTEED.
THIS INCREASE IS BASED ON CURRENT EXPECTATIONS AS TO MORTALITY, INVESTMENT
EARNINGS, PERSISTENCY AND EXPENSES AND IS NOT GUARANTEED. ADVERSE TAX
CONSEQUENCES COULD OCCUR IF A POLICY SUBJECT TO LOANS IS SURRENDERED OR
PERMITTED TO LAPSE. IN ADDITION, THE LOAN INTEREST MAY NOT BE DEDUCTIBLE. PLEASE
CONSULT YOUR TAX ADVISOR FOR ADVICE SURROUNDING THE DEDUCTIBILITY OF LOAN
INTEREST AND OTHER TAX CONSEQUENCES.
AN ADMINISTRATIVE CHARGE IS DEDUCTED EACH MONTH. DURING THE FIRST 36 POLICY
MONTHS THE CHARGE IS $10.50 PER MONTHS, THEREAFTER THE CHARGE IS $7.50 PER
MONTH.
REFER TO PROSPECTUS
G-28
<PAGE> 136
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 TAX BRACKET %: 0.00% (ee)/0.00% (er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: FULLY UNDERWRITTEN
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR @ 0% @ 0% @ 0% @ 6% @ 6%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- ---------- ---------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26,225 27,526 0 0 24,125 21,760 500,000 25,472 23,111
2 47 26,225 56,449 0 0 43,994 42,420 500,000 48,022 46,445
3 48 26,225 96,808 0 0 53,581 52,774 500,000 71,544 70,858
4 49 26,225 118,684 0 0 82,853 82,853 500,000 96,416 96,416
5 50 26,225 152,155 0 0 102,613 102,613 500,000 123,141 123,141
6 51 26,225 167,398 0 0 122,072 122,072 500,000 151,212 151,212
7 52 26,225 224,200 0 0 141,203 141,203 500,000 180,374 180,374
8 53 0 235,410 0 0 137,179 137,179 500,000 186,794 186,794
9 54 0 247,100 0 0 132,966 132,966 500,000 193,363 193,363
10 55 0 259,539 0 0 128,559 128,559 500,000 200,095 200,095
11 56 0 273,516 0 0 124,100 124,100 500,000 207,286 207,286
12 57 0 286,142 0 0 119,341 119,341 500,000 214,632 214,632
13 58 0 300,449 0 0 114,274 114,274 500,000 222,156 222,156
14 59 0 315,472 0 0 108,845 108,845 500,000 229,846 229,846
15 60 0 331,246 0 0 102,997 102,997 500,000 237,695 237,695
16 61 0 347,807 0 0 96,670 96,670 500,000 245,698 245,698
17 62 0 365,197 0 0 89,796 89,796 500,000 253,853 253,853
18 63 0 383,457 0 0 82,313 82,313 500,000 262,161 262,161
19 64 0 402,530 0 0 74,039 74,039 500,000 270,571 270,571
20 65 0 422,762 0 0 64,942 64,942 500,000 279,119 279,119
21 66 0 443,900 0 0 54,823 54,823 500,000 287,767 287,767
22 67 0 466,098 0 0 43,575 43,575 500,000 296,535 296,535
23 68 0 488,399 0 0 31,021 31,021 500,000 305,422 305,422
24 69 0 513,869 0 0 16,964 16,964 500,000 314,427 314,427
25 70 0 539,863 0 0 1,240 1,240 500,000 323,619 323,619
26 71 0 566,541 0 0 0 0 0 332,951 332,951
27 72 0 594,868 0 0 0 0 0 342,326 342,326
28 73 0 624,611 0 0 0 0 0 351,909 351,909
29 74 0 655,842 0 0 0 0 0 361,565 361,565
30 75 0 688,534 0 0 0 0 0 371,227 371,227
31 76 0 723,066 0 0 0 0 0 380,861 380,861
32 77 0 759,229 0 0 0 0 0 390,457 390,457
33 78 0 797,180 0 0 0 0 0 400,024 400,024
34 79 0 837,039 0 0 0 0 0 409,606 409,606
35 80 0 878,891 0 0 0 0 0 419,221 419,221
36 81 0 322,036 0 0 0 0 0 428,903 428,903
37 82 0 968,977 0 0 0 0 0 428,598 428,598
38 83 0 1,017,426 0 0 0 0 0 448,282 448,282
39 84 0 1,068,298 0 0 0 0 0 457,943 457,943
40 85 0 1,122,712 0 0 0 0 0 467,560 467,560
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR (GROSS)
- - ---- --------
<S> <C>
1 500,000
2 500,000
3 500,000
4 500,000
5 500,000
6 500,000
7 500,000
8 500,000
9 500,000
10 500,000
11 500,000
12 500,000
13 500,000
14 500,000
15 500,000
16 500,000
17 500,000
18 500,000
19 500,000
20 500,000
21 500,000
22 500,000
23 500,000
24 500,000
25 500,000
26 500,000
27 502,336
28 504,742
29 506,179
30 511,662
31 515,204
32 518,996
33 522,792
34 526,712
35 530,704
36 534,842
37 538,993
38 543,183
39 547,470
40 551,861
</TABLE>
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY THE DISCLOSURE
PAGE, CONTINUATION OF COMPLIANCE REPORT 1, AND SUPPLEMENTAL FOOTNOTE PAGE.
G-29
<PAGE> 137
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1 ...continuation
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 TAX BRACKET %: 0.00%(ee)/0.00%(er)
INITIAL TARGET DEATH BENEFIT: $500,000 LOAN INTEREST %: 4.6 in arrears
INITIAL SPECIFIED AMOUNT: $500,000 GROSS RATE BASIS %: 6.0% (5.3% Initial NET)
ANNUAL PREMIUM: $26,224.90 COST OF MONEY %: 0.00%
INITIAL DEATH BENEFIT OPTION: OPTION 1 DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: FULLY UNDERWRITTEN
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL SURRENDR ACCOUNT DEATH SURRENDR ACCOUNT
TOTAL PREMIUM SURRENDR VALUE VALUE BENEFIT VALUE VALUE
POL AGE POLICY ACCUM. ANNUAL FR INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- ---- -------- -------- ------- ---------- ---------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1,177,798 0 0 0 0 0 477,181 477,181
42 87 0 1,236,688 0 0 0 0 0 486,868 486,868
43 88 0 1,298,522 0 0 0 0 0 496,732 496,732
44 89 0 1,363,449 0 0 0 0 0 506,925 506,925
45 90 0 1,431,622 0 0 0 0 0 527,627 527,627
46 91 0 1,503,202 0 0 0 0 0 529,151 529,151
47 92 0 1,578,362 0 0 0 0 0 541,852 541,852
48 93 0 1,657,280 0 0 0 0 0 556,325 556,325
49 94 0 1,740,144 0 0 0 0 0 572,807 572,807
50 95 0 1,827,151 0 0 0 0 0 594,919 594,919
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR (GROSS)
- - ---- --------
<S> <C>
41 556,292
42 561,168
43 566,125
44 572,406
45 577,010
46 542,965
47 589,318
48 596,269
49 603,360
50 612,767
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s) and Date)
Illustration Delivered
(Signature of Representative and Date)
ASSUME GUARANTEED CHARGES AND A GROSS INVESTMENT RETURN OF 0.00%. CONTRACT
LAPSES AFTER AGE 70. ASSUMING GUARANTEED CHARGES AND A GROSS INVESTMENT RETURN
OF 6.00%, THIS CONTRACT MATURES AT ANNIVERSARY AT AGE 95. THIS IS AN
ILLUSTRATION, NOT A CONTRACT. FOR PRESENTATION IN ARIZONA 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 A POLICYHOLDER, AND THE DIFFERENT
INVESTMENT RATES OF RETURN ACHIEVED BY THE SUB ACCOUNT CHOSEN BY THE
POLICYHOLDER. THE SURRENDER VALUE, ACCOUNT VALUE AND BENEFIT PAYABLE AT DEATH
FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
INVESTMENT RETURN APPLICABLE TO THE CONTRACT AVERAGED 0.00% OR 6.00% OVER A
PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THOSE AVERAGES FOR
INDIVIDUAL CONTRACT YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER
ANY PERIOD OF TIME.
PREPARED BY: AGENT DATE PREPARED: 11/6/1996
NOT VALID WITHOUT CURRENT PROSPECTUS AND MUST BE ACCOMPANIED BY DISCLOSURE PAGE
AND SUPPLEMENTAL FOOTNOTE PAGE.
G-30
<PAGE> 138
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26225 27536 0 0 24129 21768 500000 25472 23111
2 47 26225 56449 0 0 44702 43128 500000 48749 47175
3 48 26225 86808 0 0 64834 54047 500000 72930 72203
4 49 26225 118684 0 0 84668 64658 500000 98378 98378
5 50 26225 152155 0 0 104921 104921 500000 125715 125715
6 51 26225 187298 0 0 124986 124986 500000 154421 154421
7 52 26225 224200 0 0 144856 144856 500000 184566 184566
8 53 0 235410 0 0 141743 141743 500000 192055 192055
9 54 0 247180 0 0 138662 138662 500000 199920 199920
10 55 0 259539 0 0 135610 135610 500000 208179 208179
11 56 0 272516 0 0 132946 132946 500000 217470 217470
12 57 0 286142 0 0 130211 130211 500000 227189 227189
13 58 0 300449 0 0 127405 127405 500000 237363 237363
14 59 0 315471 0 0 124303 124303 500000 247861 247861
15 60 0 331245 0 0 120856 120856 500000 258677 258677
16 61 0 347807 0 0 116969 116969 500000 269768 269768
17 62 0 365197 0 0 112633 112633 500000 281149 281149
18 63 0 383457 0 0 107745 107745 500000 292785 292785
19 64 0 402630 0 0 102481 102481 500000 304818 304818
20 65 0 422762 0 0 96831 96831 500000 317278 317278
21 66 0 443900 0 0 90784 90784 500000 330198 330198
22 67 0 466095 0 0 84327 84327 500000 343610 343610
23 68 0 489399 0 0 77345 77345 500000 357498 357498
24 69 0 513869 0 0 69666 69666 500000 371824 371824
25 70 0 539563 0 0 61105 61105 500000 386554 386554
26 71 0 566541 0 0 51621 51621 500000 401733 401733
27 72 0 594868 0 0 41006 41006 500000 417336 417336
28 73 0 624611 0 0 29198 29198 500000 433411 433411
29 74 0 655842 0 0 15893 15893 500000 449922 449922
30 75 0 688634 0 0 815 815 500000 466861 466861
31 76 0 723066 0 0 0 0 0 484278 484278
32 77 0 759219 0 0 0 0 0 502114 502114
33 78 0 797180 0 0 0 0 0 520334 520334
34 79 0 837039 0 0 0 0 0 538285 538285
35 80 0 878891 0 0 0 0 0 556465 556465
36 81 0 922836 0 0 0 0 0 574948 574948
37 82 0 968977 0 0 0 0 0 593642 593642
38 83 0 1017426 0 0 0 0 0 613379 613379
39 84 0 1068298 0 0 0 0 0 633664 633664
40 85 0 1121712 0 0 0 0 0 654386 654386
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 6%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 504075
15 511300
16 518495
17 525692
18 532839
19 540198
20 547876
21 555888
22 564345
23 573176
24 582276
25 591659
26 601273
27 611189
28 621642
29 632366
30 643474
31 655228
32 667410
33 680025
34 692181
35 704429
36 716960
37 729627
38 743232
39 757545
40 772371
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, the Disclosure page, the continuation of Compliance Report 2, and the
Supplemental Footnote page.
Page 5 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-31
<PAGE> 139
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1177798 0 0 0 0 0 675666 675666
42 87 0 1236688 0 0 0 0 0 697407 697407
43 88 0 1298522 0 0 0 0 0 719802 719802
44 89 0 1363449 0 0 0 0 0 742941 742941
45 90 0 1431621 0 0 0 0 0 767001 767001
46 91 0 1503202 0 0 0 0 0 792129 792129
47 92 0 1578362 0 0 0 0 0 818933 818933
48 93 0 1657280 0 0 0 0 0 848096 848096
49 94 0 1740144 0 0 0 0 0 880686 880686
50 95 0 1827151 0 0 0 0 0 918410 918410
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR. (GROSS)
- - --- -------
<S> <C>
41 787827
42 803832
43 820358
44 837443
45 854976
46 872680
47 890672
48 908989
49 927451
50 945962
</TABLE>
Assume current charges and a gross investment return of 0.00%, contract lapses
after age 75. Assuming current charges and a gross investment return of 6.00%.
This contract matures at anniversary at age 95. This is an illustration, not a
contract. For presentation in Arizona, 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 a Policyholder, and the different investment rates of return
achieved by the sub account chosen by the Policyholder. The Surrender Value,
Account Value and Benefit Payable at Death for a contract would be different
from those shown if the actual rates of investment return applicable to the
contract averaged 0.00% or 6.00% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made that these hypothetical rates of return can be achieved for any one
year, or sustained over any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Compliance
Report 1, Disclosure page, and Supplemental Footnote page.
Page 6 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-32
<PAGE> 140
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,00 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option 1 Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------------
NONE
------------------------------------------------------
From Year 0 to Year 0
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 law relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or target death
benefit and/or a change in death benefit 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 contract, 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.
Values shown on this illustration are based on a policy owner tax bracket of
0.00%.
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 benefit, account value and
surrender value will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's surrender value includes any sales charge refund on full
surrender. The sales charge refund equals the sales charge collected in the
first policy year or the first policy year of an increase adjusted by the
following schedule:
Year 1-100%
Year 2-66.67%
Year 3-33.33%
Premiums less the following deductions are added to the account value. (1) A
premium tax charge of 2.00% of gross premiums in all years. (2) A sales charge
on the gross premium equals to 9% up to the target premium in Years 1-10.0% in
policy years 11 and after, and 0% of premium in excess of the target premium in
all years. (3) A DAC tax charge of 1.25% of gross premiums in all years.
Refer to Prospectus
Page 7 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-33
<PAGE> 141
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,00 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option 1 Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Those columns assuming guaranteed charges use the current monthly mortality
charges and current charges for rider benefits if any, for the first year as
well as the assumed hypothetical gross annual investment return indicated.
Thereafter these columns use guaranteed charges for monthly mortality charges,
rider benefits if any, 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 are declared by MONY Life Insurance Company of America,
are guaranteed for the first policy year, and apply to policies issued as of the
preparation date shown. After the first policy year, current charges are not
guaranteed, and may be changed at the discretion of MONY Life Insurance Company
of America.
The difference between the account value and the value upon surrender is any
outstanding debt plus any applicable sales charge refund. A partial surrender,
the surrender amount and the partial surrender fee ($25.00 or 2% of the amount
surrendered, if less) could be deducted from the benefit payable at death, and
will be deducted from the account value and the value upon surrender.
A policy loan will have a permanent effect on benefits under this policy.
Loan interest at an annual rate of 4.6% will be charged in arrears. Amounts
borrowed will earn interest at an annual rate of 4%. After the 10th policy
anniversary the annual interest rate applicable to the loan account will be
0.30% higher than the rate applicable to policies of the same type which have
not reached their 10th policy anniversary. This increase is anticipated but not
guaranteed. This increase is based on current expectations as to mortality,
investment earnings, persistency and expenses and is not guaranteed. Adverse tax
consequences could occur if a policy subject to loans is surrendered or
permitted to lapse. In addition, the loan interest may not be deductible. Please
consult your tax advisor for advice surrounding the deductibility of loan
interest and other tax consequences.
An administrative charge is deducted each month. During the first 36 policy
months the charge is $12.50 per month, thereafter, the charge is $7.50 per
month.
Refer to Prospectus
Page 8 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-34
<PAGE> 142
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26225 27536 0 0 24129 21768 500000 26815 24455
2 47 26225 56449 0 0 43994 42420 500000 52213 50639
3 48 26225 86808 0 0 63561 62774 500000 80391 79605
4 49 26225 118684 0 0 82853 82853 500000 111687 111687
5 50 26225 152155 0 0 102613 102613 500000 147194 147194
6 51 26225 187298 0 0 122072 122072 500000 186532 186532
7 52 26225 224200 0 0 141203 141203 500000 229849 229849
8 53 0 235410 0 0 137179 137179 500000 252062 252062
9 54 0 247180 0 0 132966 132966 500000 276325 276325
10 55 0 259539 0 0 128559 128559 500000 302838 302838
11 56 0 272516 0 0 124100 124100 500000 332269 332269
12 57 0 286142 0 0 119341 119341 500000 364401 364401
13 58 0 300449 0 0 114274 114274 500000 399498 399498
14 59 0 315471 0 0 108845 108845 500000 437796 437796
15 60 0 331245 0 0 102997 102997 500000 479555 479555
16 61 0 347807 0 0 96670 96670 500000 525055 525055
17 62 0 365197 0 0 89798 89798 500000 574603 574603
18 63 0 383457 0 0 82313 82313 500000 628532 628532
19 64 0 402630 0 0 74039 74039 500000 687085 687085
20 65 0 422762 0 0 64942 64942 500000 750706 750706
21 66 0 443900 0 0 54823 54823 500000 819694 819694
22 67 0 466095 0 0 43575 43575 500000 894500 894500
23 68 0 489399 0 0 31021 31021 500000 975555 975555
24 69 0 513869 0 0 16964 16964 500000 1063333 1063333
25 70 0 539563 0 0 1240 1240 500000 1158428 1158428
26 71 0 566541 0 0 0 0 0 1261285 1261285
27 72 0 594868 0 0 0 0 0 1371998 1371998
28 73 0 624611 0 0 0 0 0 1491727 1491727
29 74 0 655842 0 0 0 0 0 1620619 1620619
30 75 0 688634 0 0 0 0 0 1759135 1759135
31 76 0 723066 0 0 0 0 0 1907984 1907984
32 77 0 759219 0 0 0 0 0 2067905 2067905
33 78 0 797180 0 0 0 0 0 2239707 2239707
34 79 0 837039 0 0 0 0 0 2424476 2424476
35 80 0 878891 0 0 0 0 0 2623315 2623315
36 81 0 922836 0 0 0 0 0 2837270 2837270
37 82 0 968977 0 0 0 0 0 3067271 3067271
38 83 0 1017426 0 0 0 0 0 3314207 3314207
39 84 0 1068298 0 0 0 0 0 3579160 3579160
40 85 0 1121712 0 0 0 0 0 3863205 3863205
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 12%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 576968
8 613343
9 651962
10 693074
11 737837
12 785503
13 836268
14 890346
15 947888
16 1009156
17 1074392
18 1143866
19 1217651
20 1296320
21 1379955
22 1469127
23 1564107
24 1665180
25 1773091
26 1887765
27 2009291
28 2139584
29 2277781
30 2424615
31 2581503
32 2748660
33 2927073
34 3117634
35 3320654
36 3534076
37 3769370
38 4015824
39 4278886
40 4559741
</TABLE>
Not valid without current prospectus and must be accompanied by the Disclosure
page, continuation of Compliance Report 1, and Supplemental Footnote page.
Page 3 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-35
<PAGE> 143
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1177798 0 0 0 0 0 4168058 4168058
42 87 0 1236688 0 0 0 0 0 4495741 4495741
43 88 0 1298522 0 0 0 0 0 4848971 4848971
44 89 0 1363449 0 0 0 0 0 5231284 5231284
45 90 0 1431621 0 0 0 0 0 5647102 5647102
46 91 0 1503202 0 0 0 0 0 6102596 6102596
47 92 0 1578362 0 0 0 0 0 6606172 6606172
48 93 0 1657280 0 0 0 0 0 7170181 7170181
49 94 0 1740144 0 0 0 0 0 7813954 7813954
50 95 0 1827151 0 0 0 0 0 8558781 8558781
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR. (GROSS)
- - --- -------
<S> <C>
41 4859958
42 5181791
43 5526372
44 5896704
45 6294024
46 6723231
47 7104872
48 7685000
49 8228875
50 8825844
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s)
and Date)
Illustration Delivered
(Signature of Representative and Date)
Assume guaranteed charges and a gross investment return of 0.00%, contract
lapses after age 70. Assuming guaranteed charges and a gross investment return
of 12.00%, this contract matures at anniversary at age 95. This is an
illustration, not a contract. For presentation in Arizona, 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 a Policyholder, and the different
investment rates of return achieved by the sub account chosen by the
Policyholder. The Surrender Value, Account Value and Benefit Payable at Death
for a contract would be different from those shown if the actual rates of
investment return applicable to the contract averaged 0.00% or 12.00% over a
period of years, but also fluctuated above or below those averages for
individual contract years. No representations can be made that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Disclosure page
and Supplemental Footnote page.
Page 4 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-36
<PAGE> 144
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26225 27536 0 0 24129 21768 500000 26815 24455
2 47 26225 56449 0 0 44702 43128 500000 52958 51384
3 48 26225 86808 0 0 64834 64047 500000 81810 81023
4 49 26225 118684 0 0 84659 84659 500000 113811 113811
5 50 26225 152165 0 0 104921 104921 500000 150053 150053
6 51 26225 187298 0 0 124986 124986 500000 190280 190280
7 52 26225 224200 0 0 144856 144856 500000 234727 234727
8 53 0 235410 0 0 141743 141743 500000 258390 258390
9 54 0 247180 0 0 138662 138662 500000 284516 284516
10 55 0 259539 0 0 135610 135610 500000 313365 313365
11 56 0 272516 0 0 132946 132946 500000 346212 346212
12 57 0 286142 0 0 130211 130211 500000 382489 382489
13 58 0 300449 0 0 127405 127405 500000 422561 422561
14 59 0 315471 0 0 124303 124303 500000 466543 466543
15 60 0 331245 0 0 120856 120856 500000 514768 514768
16 61 0 347807 0 0 116969 116969 500000 567533 567533
17 62 0 365197 0 0 112633 112633 500000 625287 625287
18 63 0 383457 0 0 107745 107745 500000 680391 680391
19 64 0 402630 0 0 102481 102481 500000 757653 757653
20 65 0 422762 0 0 96831 96831 500000 833707 833707
21 66 0 443900 0 0 90784 90784 500000 917256 917256
22 67 0 466095 0 0 84327 84327 500000 1009077 1009077
23 68 0 489399 0 0 77345 77345 500000 1109874 1109874
24 69 0 513869 0 0 69666 69666 500000 1220332 1220332
25 70 0 539563 0 0 61105 61105 500000 1341189 1341189
26 71 0 566541 0 0 51621 51621 500000 1473517 1473517
27 72 0 594868 0 0 41006 41006 500000 1618235 1618235
28 73 0 624611 0 0 29198 29198 500000 1776607 1776607
29 74 0 655842 0 0 15893 15893 500000 1949678 1949678
30 75 0 688634 0 0 815 815 500000 2138679 2138679
31 76 0 723066 0 0 0 0 0 2345227 2345227
32 77 0 759219 0 0 0 0 0 2570530 2570530
33 78 0 797180 0 0 0 0 0 2815991 2815991
34 79 0 837039 0 0 0 0 0 3079560 3079560
35 80 0 878891 0 0 0 0 0 3365430 3365430
36 81 0 922836 0 0 0 0 0 3675834 3675834
37 82 0 968977 0 0 0 0 0 4012134 4012134
38 83 0 1017426 0 0 0 0 0 4382302 4382302
39 84 0 1068298 0 0 0 0 0 4785783 4785783
40 85 0 1121712 0 0 0 0 0 5224534 5224534
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 12%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 509213
8 628741
9 671287
10 717167
11 768798
12 824493
13 804548
14 948809
15 1017490
16 1090799
17 1169162
18 1252803
19 1342713
20 1439646
21 1544201
22 1657309
23 1779461
24 1911040
25 2052823
26 2205413
27 2369905
28 2548187
29 2740273
30 2947741
31 3173092
32 3416748
33 3680218
34 3960006
35 4260297
36 4503765
37 4930511
38 5310035
39 5721402
40 6166517
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, the Disclosure page, the continuation of Compliance Report 2, and
Supplemental Footnote page.
Page 5 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-37
<PAGE> 145
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1177798 0 0 0 0 0 5702488 5702488
42 87 0 1236688 0 0 0 0 0 6222049 6222049
43 88 0 1298522 0 0 0 0 0 6788871 6788871
44 89 0 1363449 0 0 0 0 0 7406869 7406869
45 90 0 1431621 0 0 0 0 0 8083319 8083319
46 91 0 1503202 0 0 0 0 0 8824742 8824742
47 92 0 1578362 0 0 0 0 0 9644195 9644195
48 93 0 1657280 0 0 0 0 0 10557775 10557775
49 94 0 1740144 0 0 0 0 0 11589299 11589299
50 95 0 1827151 0 0 0 0 0 12775545 12775545
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR. (GROSS)
- - --- --------
<S> <C>
41 6649101
42 7171579
43 7736934
44 8249022
45 9010476
46 9722218
47 10489027
48 11315823
49 12204591
50 13168812
</TABLE>
Assume current charges and a gross investment return of 0.00%, contract lapses
after age 75. Assuming current charges and a gross investment return of 12.00%.
This contract matures at anniversary at age 95. This is an illustration, not a
contract. For presentation in Arizona, 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 a Policyholder, and the different investment rates of return
achieved by the sub account chosen by the Policyholder. The Surrender Value,
Account Value and Benefit Payable at Death for a contract would be different
from those shown if the actual rates of investment return applicable to the
contract averaged 0.00% or 12.00% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made that these hypothetical rates of return can be achieved for any one
year, or sustained over any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Compliance
Report 1, Disclosure page, and Supplemental Footnote page.
Page 6 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-38
<PAGE> 146
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option 1 Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------------
NONE
------------------------------------------------------
From Year 0 to Year 0
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 law relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or target death
benefit and/or a change in death benefit 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 contract, 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.
Values shown on this illustration are based on a policy owner tax bracket of
0.00%.
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 benefit, account value and
surrender value will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's surrender value includes any sales charge refund on full
surrender. The sales charge refund equals the sales charge collected in the
first policy year or the first policy year of an increase adjusted by the
following schedule:
Year 1-100%
Year 2-66.67%
Year 3-33.33%
Premiums less the following deductions are added to the account value. (1) A
premium tax charge of 2.00% of gross premiums in all years. (2) A sales charge
on the gross premium equals to 9% up to the target premium in Years 1-10.0% in
policy years 11 and after, and 0% of premium in excess of the target premium in
all years. (3) A DAC tax charge of 1.25% of gross premiums in all years.
Refer to Prospectus
Page 7 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-39
<PAGE> 147
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option 1 Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Those columns assuming guaranteed charges use the current monthly mortality
charges and current charges for rider benefits if any, for the first year as
well as the assumed hypothetical gross annual investment return indicated.
Thereafter these columns use guaranteed charges for monthly mortality charges,
rider benefits if any, 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 are declared by MONY Life Insurance Company of America,
are guaranteed for the first policy year, and apply to policies issued as of the
preparation date shown. After the first policy year, current charges are not
guaranteed, and may be changed at the discretion of MONY Life Insurance Company
of America.
The difference between the account value and the value upon surrender is any
outstanding debt plus any applicable sales charge refund. A partial surrender,
the surrender amount and the partial surrender fee ($25.00 or 2% of the amount
surrendered, if less) could be deducted from the benefit payable at death, and
will be deducted from the account value and the value upon surrender.
A policy loan will have a permanent effect on benefits under this policy.
Loan interest at an annual rate of 4.6% will be charged in arrears. Amounts
borrowed will earn interest at an annual rate of 4%. After the 10th policy
anniversary the annual interest rate applicable to the loan account will be
0.30% higher than the rate applicable to policies of the same type which have
not reached their 10th policy anniversary. This increase is anticipated but not
guaranteed. This increase is based on current expectations as to mortality,
investment earnings, persistency and expenses and is not guaranteed. Adverse tax
consequences could occur if a policy subject to loans is surrendered or
permitted to lapse. In addition, the loan interest may not be deductible. Please
consult your tax advisor for advice surrounding the deductibility of loan
interest and other tax consequences.
An administrative charge is deducted each month. During the first 36 policy
months the charge is $12.50 per month, thereafter, the charge is $7.50 per
month.
Refer to Prospectus
Page 8 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-40
<PAGE> 148
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26225 27536 0 0 23330 20970 500000 24649 22288
2 47 26225 56449 0 0 41727 40153 500000 45642 44068
3 48 26225 86808 0 0 59743 58956 500000 67541 66755
4 49 26225 118684 0 0 77412 77412 500000 90436 90436
5 50 26225 152155 0 0 95490 95490 500000 115139 115139
6 51 26225 187298 0 0 113217 113217 500000 140960 140960
7 52 26225 224200 0 0 130575 130575 500000 167958 167958
8 53 0 235410 0 0 124536 124536 500000 171805 171805
9 54 0 247180 0 0 118097 118097 500000 175515 175515
10 55 0 259539 0 0 111153 111153 500000 179008 179008
11 56 0 272516 0 0 103847 103847 500000 182559 182559
12 57 0 286142 0 0 95937 95937 500000 185869 185869
13 58 0 300449 0 0 87349 87349 500000 188892 188892
14 59 0 315471 0 0 78051 78051 500000 191619 191619
15 60 0 331245 0 0 67958 67958 500000 194000 194000
16 61 0 347807 0 0 56973 56973 500000 195980 195980
17 62 0 365197 0 0 44885 44885 500000 197424 197424
18 63 0 383457 0 0 31515 31515 500000 198224 198224
19 64 0 402630 0 0 16662 16662 500000 198258 198258
20 65 0 422762 0 0 41 41 500000 197350 197350
21 66 0 443900 0 0 0 0 0 195303 195303
22 67 0 466095 0 0 0 0 0 192003 192003
23 68 0 489399 0 0 0 0 0 187234 187234
24 69 0 513869 0 0 0 0 0 180821 180821
25 70 0 539563 0 0 0 0 0 172431 172431
26 71 0 566541 0 0 0 0 0 161664 161664
27 72 0 594868 0 0 0 0 0 147991 147991
28 73 0 624611 0 0 0 0 0 130626 130626
29 74 0 655842 0 0 0 0 0 108679 108679
30 75 0 688634 0 0 0 0 0 81022 81022
31 76 0 723066 0 0 0 0 0 46097 46097
32 77 0 759219 0 0 0 0 0 2173 2173
33 78 0 0 0 0 0 0 0 0 0
34 79 0 0 0 0 0 0 0 0 0
35 80 0 0 0 0 0 0 0 0 0
36 81 0 0 0 0 0 0 0 0 0
37 82 0 0 0 0 0 0 0 0 0
38 83 0 0 0 0 0 0 0 0 0
39 84 0 0 0 0 0 0 0 0 0
40 85 0 0 0 0 0 0 0 0 0
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 6%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 500000
17 500000
18 500000
19 500000
20 500000
21 500000
22 500000
23 500000
24 500000
25 500000
26 500000
27 500000
28 500000
29 500000
30 500000
31 500000
32 500000
33 0
34 0
35 0
36 0
37 0
38 0
39 0
40 0
</TABLE>
Not valid without current prospectus and must be accompanied by the Disclosure
page, continuation of Compliance Report 1, and Supplemental Footnote page.
Page 3 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-41
<PAGE> 149
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 0 0 0 0 0 0 0 0
42 87 0 0 0 0 0 0 0 0 0
43 88 0 0 0 0 0 0 0 0 0
44 89 0 0 0 0 0 0 0 0 0
45 90 0 0 0 0 0 0 0 0 0
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR. (GROSS)
- - --- -------
<S> <C>
41 0
42 0
43 0
44 0
45 0
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s)
and Date)
Illustration Delivered
(Signature of Representative and Date)
Assume guaranteed charges and a gross investment return of 0.00%, contract
lapses after age 65. Assuming guaranteed charges and a gross investment return
of 6.00%, this contract lapses after age 77. This is an illustration, not a
contract. For presentation in Arizona, 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 a Policyholder, and the different investment rates of return
achieved by the sub account chosen by the Policyholder. The Surrender Value,
Account Value and Benefit Payable at Death for a contract would be different
from those shown if the actual rates of investment return applicable to the
contract averaged 0.00% or 6.00% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made that these hypothetical rates of return can be achieved for any one
year, or sustained over any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Disclosure page
and Supplemental Footnote page.
Page 4 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-42
<PAGE> 150
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26225 27536 0 0 23330 20970 500000 24649 22288
2 47 26225 56449 0 0 42766 41193 500000 46709 45135
3 48 26225 86808 0 0 61661 60774 500000 69466 68679
4 49 26225 118684 0 0 80071 80071 500000 93323 93323
5 50 26225 152155 0 0 99188 99188 500000 119228 119228
6 51 26225 187298 0 0 118176 118176 500000 146513 146513
7 52 26225 224200 0 0 136992 136992 500000 175210 175210
8 53 0 235410 0 0 132780 132780 500000 181159 181159
9 54 0 247180 0 0 126595 128595 500000 187425 187425
10 55 0 259539 0 0 124304 124304 500000 193913 193913
11 56 0 272516 0 0 119998 119998 500000 201022 201022
12 57 0 286142 0 0 115244 115244 500000 208178 208178
13 58 0 300449 0 0 109937 109937 500000 215332 215332
14 59 0 315471 0 0 103920 103920 500000 222399 222399
15 60 0 331245 0 0 97170 97170 500000 229399 229399
16 61 0 347807 0 0 89514 89514 500000 236256 236256
17 62 0 365197 0 0 80912 80912 500000 242990 242990
18 63 0 383457 0 0 71319 71319 500000 249623 249623
19 64 0 402630 0 0 60788 60788 500000 256239 256239
20 65 0 422762 0 0 49320 49320 500000 262893 262893
21 66 0 443900 0 0 36861 36861 500000 269613 269613
22 67 0 466095 0 0 23406 23406 500000 276458 276458
23 68 0 489399 0 0 8657 8657 500000 283351 283351
24 69 0 513869 0 0 0 0 0 290166 290166
25 70 0 539563 0 0 0 0 0 296809 296809
26 71 0 566541 0 0 0 0 0 303313 303313
27 72 0 594868 0 0 0 0 0 309565 309565
28 73 0 624611 0 0 0 0 0 315668 315668
29 74 0 655842 0 0 0 0 0 321449 321449
30 75 0 688634 0 0 0 0 0 326867 326867
31 76 0 723066 0 0 0 0 0 331964 331964
32 77 0 759219 0 0 0 0 0 336525 336525
33 78 0 797180 0 0 0 0 0 340400 340400
34 79 0 837039 0 0 0 0 0 342114 342114
35 80 0 878891 0 0 0 0 0 342279 342279
36 81 0 922836 0 0 0 0 0 340688 340688
37 82 0 968977 0 0 0 0 0 336576 336576
38 83 0 1017426 0 0 0 0 0 331202 331202
39 84 0 1068298 0 0 0 0 0 322819 322819
40 85 0 1121712 0 0 0 0 0 310014 310014
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 6%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 500000
17 500000
18 500000
19 500000
20 500000
21 500000
22 500000
23 500000
24 500000
25 500000
26 500000
27 500000
28 500000
29 500000
30 500000
31 500000
32 500000
33 500000
34 500000
35 500000
36 500000
37 500000
38 500000
39 500000
40 500000
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, the Disclosure page, the continuation of Compliance Report 2, and the
Supplemental Footnote page.
Page 5 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-43
<PAGE> 151
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1177798 0 0 0 0 0 291581 291581
42 87 0 1236688 0 0 0 0 0 264866 264866
43 88 0 1298522 0 0 0 0 0 227055 227055
44 89 0 1363449 0 0 0 0 0 173444 173444
45 90 0 1431621 0 0 0 0 0 97094 97094
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 6%
YR. (GROSS)
- - ---- -------
<S> <C>
41 500000
42 500000
43 500000
44 500000
45 500000
</TABLE>
Assume current charges and a gross investment return of 0.00%, contract lapses
after age 68. Assuming current charges and a gross investment return of 6.00%.
This contract matures at anniversary at age 95. This is an illustration, not a
contract. For presentation in Arizona, 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 a Policyholder, and the different investment rates of return
achieved by the sub account chosen by the Policyholder. The Surrender Value,
Account Value and Benefit Payable at Death for a contract would be different
from those shown if the actual rates of investment return applicable to the
contract averaged 0.00% or 6.00% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made that these hypothetical rates of return can be achieved for any one
year, or sustained over any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Compliance
Report 1, Disclosure page, and Supplemental Footnote page.
Page 6 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-44
<PAGE> 152
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,00 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option 1 Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------------
NONE
------------------------------------------------------
From Year 0 to Year 0
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 law relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or target death
benefit and/or a change in death benefit 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 contract, 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.
Values shown on this illustration are based on a policy owner tax bracket of
0.00%.
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 benefit, account value and
surrender value will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's surrender value includes any sales charge refund on full
surrender. The sales charge refund equals the sales charge collected in the
first policy year or the first policy year of an increase adjusted by the
following schedule:
Year 1-100%
Year 2-66.67%
Year 3-33.33%
Premiums less the following deductions are added to the account value. (1) A
premium tax charge of 2.00% of gross premiums in all years. (2) A sales charge
on the gross premium equals to 9% up to the target premium in Years 1-10.0% in
policy years 11 and after, and 0% of premium in excess of the target premium in
all years. (3) A DAC tax charge of 1.25% of gross premiums in all years.
Refer to Prospectus
Page 7 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-45
<PAGE> 153
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,00 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option 1 Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Those columns assuming guaranteed charges use the current monthly mortality
charges and current charges for rider benefits if any, for the first year as
well as the assumed hypothetical gross annual investment return indicated.
Thereafter these columns use guaranteed charges for monthly mortality charges,
rider benefits if any, 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 are declared by MONY Life Insurance Company of America,
are guaranteed for the first policy year, and apply to policies issued as of the
preparation date shown. After the first policy year, current charges are not
guaranteed, and may be changed at the discretion of MONY Life Insurance Company
of America.
The difference between the account value and the value upon surrender is any
outstanding debt plus any applicable sales charge refund. A partial surrender,
the surrender amount and the partial surrender fee ($25.00 or 2% of the amount
surrendered, if less) could be deducted from the benefit payable at death, and
will be deducted from the account value and the value upon surrender.
A policy loan will have a permanent effect on benefits under this policy.
Loan interest at an annual rate of 4.6% will be charged in arrears. Amounts
borrowed will earn interest at an annual rate of 4%. After the 10th policy
anniversary the annual interest rate applicable to the loan account will be
0.30% higher than the rate applicable to policies of the same type which have
not reached their 10th policy anniversary. This increase is anticipated but not
guaranteed. This increase is based on current expectations as to mortality,
investment earnings, persistency and expenses and is not guaranteed. Adverse tax
consequences could occur if a policy subject to loans is surrendered or
permitted to lapse. In addition, the loan interest may not be deductible. Please
consult your tax advisor for advice surrounding the deductibility of loan
interest and other tax consequences.
An administrative charge is deducted each month. During the first 36 policy
months the charge is $12.50 per month, thereafter, the charge is $7.50 per
month.
Refer to Prospectus
Page 8 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-46
<PAGE> 154
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26225 27536 0 0 23330 20970 500000 25968 23607
2 47 26225 56449 0 0 41727 40153 500000 49718 48145
3 48 26225 86808 0 0 59743 58956 500000 75993 75206
4 49 26225 118684 0 0 77412 77412 500000 105127 105127
5 50 26225 152155 0 0 95490 95490 500000 138221 138221
6 51 26225 187298 0 0 113217 113217 500000 174906 174906
7 52 26225 224200 0 0 130576 130576 500000 215620 215620
8 53 0 235410 0 0 124536 124536 500000 235094 235094
9 54 0 247180 0 0 118097 118097 500000 256550 256550
10 55 0 259539 0 0 111153 111153 500000 279915 279915
11 56 0 272516 0 0 103847 103847 500000 305716 305716
12 57 0 286142 0 0 95937 95937 500000 333726 333726
13 58 0 300449 0 0 87349 87349 500000 364116 364116
14 59 0 315471 0 0 76051 76051 500000 397110 397110
15 60 0 331245 0 0 67958 67958 500000 432918 432918
16 61 0 347807 0 0 56973 56973 500000 471772 471772
17 62 0 365197 0 0 44885 44885 500000 513840 513840
18 63 0 383457 0 0 31515 31515 500000 559345 559345
19 64 0 402630 0 0 16662 16662 500000 608524 608524
20 65 0 422762 0 0 41 41 500000 661590 661590
21 66 0 443900 0 0 0 0 0 718766 718766
22 67 0 466095 0 0 0 0 0 780432 780432
23 68 0 489399 0 0 0 0 0 846918 846918
24 69 0 513869 0 0 0 0 0 918680 918680
25 70 0 539563 0 0 0 0 0 996090 996090
26 71 0 566541 0 0 0 0 0 1079551 1079551
27 72 0 594868 0 0 0 0 0 1169457 1169457
28 73 0 624611 0 0 0 0 0 1266080 1266080
29 74 0 655842 0 0 0 0 0 1369810 1369810
30 75 0 688634 0 0 0 0 0 1481057 1481057
31 76 0 723066 0 0 0 0 0 1600160 1600160
32 77 0 759219 0 0 0 0 0 1727739 1727739
33 78 0 797180 0 0 0 0 0 1864468 1864468
34 79 0 837039 0 0 0 0 0 2011248 2011248
35 80 0 878891 0 0 0 0 0 2168944 2168944
36 81 0 922836 0 0 0 0 0 2338434 2338434
37 82 0 968977 0 0 0 0 0 2520529 2520529
38 83 0 1017426 0 0 0 0 0 2715951 2715951
39 84 0 1068298 0 0 0 0 0 2925528 2925528
40 85 0 1121712 0 0 0 0 0 3150294 3150294
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 12%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 519770
10 562385
11 587984
12 625903
13 666296
14 709358
15 755270
16 804135
17 854110
18 911397
19 970292
20 1032940
21 1099639
22 1170804
23 1246663
24 1327677
25 1413949
26 1505865
27 1603793
28 1707942
29 1818833
30 1937075
31 2062527
32 2197338
33 2341026
34 2494551
35 2658909
36 2834182
37 3021106
38 3220846
39 3433692
40 3661586
</TABLE>
Not valid without current prospectus and must be accompanied by the Disclosure
page, continuation of Compliance Report 1, and Supplemental Footnote page.
Page 5 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-47
<PAGE> 155
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1177798 0 0 0 0 0 3391733 3391733
42 87 0 1236688 0 0 0 0 0 3651691 3651691
43 88 0 1298522 0 0 0 0 0 3932686 3932686
44 89 0 1363449 0 0 0 0 0 4237083 4237083
45 90 0 1431621 0 0 0 0 0 4568643 4568643
46 91 0 1503202 0 0 0 0 0 4932525 4932525
47 92 0 1578362 0 0 0 0 0 5335931 5335931
48 93 0 1657280 0 0 0 0 0 5789419 5789419
49 94 0 1740144 0 0 0 0 0 6307913 6307913
50 95 0 1827151 0 0 0 0 0 6916756 6916756
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR. (GROSS)
- - --- -------
<S> <C>
41 3905242
42 4166945
43 4447474
44 4747651
45 5071194
46 5418871
47 5794288
48 6199889
49 6640340
50 7123567
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s)
and Date)
Illustration Delivered
(Signature of Representative and Date)
Assume guaranteed charges and a gross investment return of 0.00%, contract
lapses after age 65. Assuming guaranteed charges and a gross investment return
of 12.00%, this contract matures at anniversary at age 95. This is an
illustration, not a contract. For presentation in Arizona, 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 a Policyholder, and the different
investment rates of return achieved by the sub account chosen by the
Policyholder. The Surrender Value, Account Value and Benefit Payable at Death
for a contract would be different from those shown if the actual rates of
investment return applicable to the contract averaged 0.00% or 12.00% over a
period of years, but also fluctuated above or below those averages for
individual contract years. No representations can be made that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Disclosure page
and Supplemental Footnote page.
Page 4 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-48
<PAGE> 156
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 26225 27536 0 0 23330 20970 500000 25968 23607
2 47 26225 56449 0 0 42766 41193 500000 50812 49236
3 48 26225 86808 0 0 61561 60774 500000 78024 77236
4 49 26225 118684 0 0 80071 80071 500000 108252 108252
5 50 26225 152155 0 0 99188 99188 500000 142728 142728
6 51 26225 187298 0 0 118176 118176 500000 181109 181109
7 52 26225 224200 0 0 136992 136992 500000 223800 223800
8 53 0 235410 0 0 132780 132780 500000 245672 245672
9 54 0 247180 0 0 128595 128595 500000 269899 269899
10 55 0 259539 0 0 124304 124304 500000 296523 296523
11 56 0 272516 0 0 119998 119998 500000 326549 326549
12 57 0 286142 0 0 115244 115244 500000 359382 359382
13 58 0 300449 0 0 109937 109937 500000 395218 395218
14 59 0 315471 0 0 103920 103920 500000 434222 434222
15 60 0 331245 0 0 97170 97170 500000 476691 476691
16 61 0 347807 0 0 89514 89514 500000 522823 522823
17 62 0 365197 0 0 80912 80912 500000 572962 572962
18 63 0 383457 0 0 71319 71319 500000 627492 627492
19 64 0 402630 0 0 60788 60788 500000 686930 686930
20 65 0 422762 0 0 49320 49320 500000 751810 751810
21 66 0 443900 0 0 36861 36861 500000 822672 822672
22 67 0 466095 0 0 23406 23406 500000 900164 900164
23 68 0 489399 0 0 8657 8657 500000 984734 984734
24 69 0 513869 0 0 0 0 0 1076743 1076743
25 70 0 539563 0 0 0 0 0 1176632 1176632
26 71 0 566541 0 0 0 0 0 1285179 1285179
27 72 0 594868 0 0 0 0 0 1402873 1402873
28 73 0 624611 0 0 0 0 0 1530810 1530810
29 74 0 655842 0 0 0 0 0 1669425 1669425
30 75 0 688634 0 0 0 0 0 1819551 1819551
31 76 0 723066 0 0 0 0 0 1982380 1982380
32 77 0 759219 0 0 0 0 0 2158369 2158359
33 78 0 797180 0 0 0 0 0 2348223 2348223
34 79 0 837039 0 0 0 0 0 2548082 2548082
35 80 0 878891 0 0 0 0 0 2761982 2761982
36 81 0 922836 0 0 0 0 0 2991526 2991526
37 82 0 968977 0 0 0 0 0 3236836 3236836
38 83 0 1017426 0 0 0 0 0 3506203 3506203
39 84 0 1068298 0 0 0 0 0 3797105 3797105
40 85 0 1121712 0 0 0 0 0 4109735 4109735
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 12%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 511267
9 546815
10 585159
11 628051
12 674021
13 723210
14 775661
15 831635
16 891151
17 954613
18 1022435
19 1095309
20 1173801
21 1258606
22 1350427
23 1449529
24 1556108
25 1670229
26 1792696
27 1923899
28 2068063
29 2216662
30 2379791
31 2555684
32 2745001
33 2948429
34 3160386
35 3385914
36 3625729
37 3879671
38 4158006
39 4456662
40 4776745
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, the Disclosure page, the continuation of Compliance Report 2, and the
Supplemental Footnote page.
Page 5 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-49
<PAGE> 157
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 1177798 0 0 0 0 0 4446980 4446980
42 87 0 1236688 0 0 0 0 0 4809297 4809297
43 88 0 1298522 0 0 0 0 0 5200586 5200586
44 89 0 1363449 0 0 0 0 0 5624347 5624347
45 90 0 1431621 0 0 0 0 0 6085021 6085021
46 91 0 1503202 0 0 0 0 0 6587459 6587459
47 92 0 1578362 0 0 0 0 0 7143215 7143215
48 93 0 1657280 0 0 0 0 0 7767064 7767064
49 94 0 1740144 0 0 0 0 0 8481320 8481320
50 95 0 1827151 0 0 0 0 0 9320631 9320631
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR. (GROSS)
- - --- -------
<S> <C>
41 5120252
42 5487889
43 5881343
44 6302081
45 6754373
46 7236982
47 7756817
48 8317749
49 8928286
50 9599318
</TABLE>
Assume current charges and a gross investment return of 0.00%, contract lapses
after age 68. Assuming current charges and a gross investment return of 12.00%.
This contract matures at anniversary at age 95. This is an illustration, not a
contract. For presentation in Arizona, 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 a Policyholder, and the different investment rates of return
achieved by the sub account chosen by the Policyholder. The Surrender Value,
Account Value and Benefit Payable at Death for a contract would be different
from those shown if the actual rates of investment return applicable to the
contract averaged 0.00% or 12.00% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made that these hypothetical rates of return can be achieved for any one
year, or sustained over any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Compliance
Report 1, Disclosure page, and Supplemental Footnote page.
Page 6 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-50
<PAGE> 158
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------------
NONE
------------------------------------------------------
From Year 0 to Year 0
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 law relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or target death
benefit and/or a change in death benefit 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 contract, 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.
Values shown on this illustration are based on a policy owner tax bracket of
0.00%.
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 benefit, account value and
surrender value will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's surrender value includes any sales charge refund on full
surrender. The sales charge refund equals the sales charge collected in the
first policy year or the first policy year of an increase adjusted by the
following schedule:
Year 1-100%
Year 2-66.67%
Year 3-33.33%
Premiums less the following deductions are added to the account value. (1) A
premium tax charge of 2.00% of gross premiums in all years. (2) A sales charge
on the gross premium equals to 9% up to the target premium in Years 1-10.0% in
policy years 11 and after, and 0% of premium in excess of the target premium in
all years. (3) A DAC tax charge of 1.25% of gross premiums in all years.
Refer to Prospectus
Page 7 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-51
<PAGE> 159
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $26,224.90 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Fully Underwritten
</TABLE>
Those columns assuming guaranteed charges use the current monthly mortality
charges and current charges for rider benefits if any, for the first year as
well as the assumed hypothetical gross annual investment return indicated.
Thereafter these columns use guaranteed charges for monthly mortality charges,
rider benefits if any, 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 are declared by MONY Life Insurance Company of America,
are guaranteed for the first policy year, and apply to policies issued as of the
preparation date shown. After the first policy year, current charges are not
guaranteed, and may be changed at the discretion of MONY Life Insurance Company
of America.
The difference between the account value and the value upon surrender is any
outstanding debt plus any applicable sales charge refund. A partial surrender,
the surrender amount and the partial surrender fee ($25.00 or 2% of the amount
surrendered, if less) could be deducted from the benefit payable at death, and
will be deducted from the account value and the value upon surrender.
A policy loan will have a permanent effect on benefits under this policy.
Loan interest at an annual rate of 4.6% will be charged in arrears. Amounts
borrowed will earn interest at an annual rate of 4%. After the 10th policy
anniversary the annual interest rate applicable to the loan account will be
0.30% higher than the rate applicable to policies of the same type which have
not reached their 10th policy anniversary. This increase is anticipated but not
guaranteed. This increase is based on current expectations as to mortality,
investment earnings, persistency and expenses and is not guaranteed. Adverse tax
consequences could occur if a policy subject to loans is surrendered or
permitted to lapse. In addition, the loan interest may not be deductible. Please
consult your tax advisor for advice surrounding the deductibility of loan
interest and other tax consequences.
An administrative charge is deducted each month. During the first 36 policy
months the charge is $12.50 per month, thereafter, the charge is $7.50 per
month.
Refer to Prospectus
Page 8 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-52
<PAGE> 160
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Guarantee Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 10005 10605 0 0 8151 7250 500000 8629 7729
2 47 10005 21536 0 0 14563 13963 500000 15963 15363
3 48 10005 33118 0 0 20758 20498 500000 23565 23265
4 49 10005 45279 0 0 26840 26840 500000 31431 31431
5 50 10005 58048 0 0 32960 32960 500000 39845 39845
6 51 10005 71456 0 0 38864 38864 500000 48525 48525
7 52 10005 85534 0 0 44502 44502 500000 57437 57437
8 53 10005 100316 0 0 49884 49884 500000 66601 66601
9 54 10005 115836 0 0 54962 54962 500000 75988 75988
10 55 10005 132135 0 0 59746 59746 500000 85621 85621
11 56 10005 149247 0 0 65187 65187 500000 96573 96573
12 57 10005 167214 0 0 70249 70249 500000 107803 107803
13 58 10005 186080 0 0 74942 74942 500000 119348 119348
14 59 10005 205890 0 0 79226 79226 500000 131199 131199
15 60 10005 226690 0 0 83058 83058 500000 143353 143353
16 61 10005 248529 0 0 86399 86399 500000 155813 155813
17 62 10005 271461 0 0 89205 89205 500000 168588 168588
18 63 10005 295540 0 0 91437 91437 500000 181693 181693
19 64 10005 320822 0 0 92951 92951 500000 195073 195073
20 65 10005 347368 0 0 93749 93749 500000 208796 208796
21 66 10005 375242 0 0 93686 93686 500000 222833 222833
22 67 10005 404509 0 0 92702 92702 500000 237236 237236
23 68 10005 435240 0 0 90686 90686 500000 252038 252038
24 69 10005 467507 0 0 87514 87514 500000 267286 267286
25 70 10005 501388 0 0 83100 83100 500000 283077 283077
26 71 10005 536963 0 0 77192 77192 500000 299446 299446
27 72 10005 574316 0 0 69255 69255 500000 316347 316347
28 73 10005 613537 0 0 59421 59421 500000 334092 334092
29 74 10005 654720 0 0 47018 47018 500000 352711 352711
30 75 10005 697961 0 0 31488 31488 500000 372084 372084
31 76 10005 743364 0 0 12341 12341 500000 391674 391674
32 77 10005 791038 0 0 0 0 0 411471 411471
33 78 10005 841095 0 0 0 0 0 431477 431477
34 79 10005 893655 0 0 0 0 0 451734 451734
35 80 10005 948843 0 0 0 0 0 472267 472267
36 81 10005 1006791 0 0 0 0 0 493080 493080
37 82 10005 1067635 0 0 0 0 0 514140 514140
38 83 10005 1131522 0 0 0 0 0 535403 535403
39 84 10005 1198604 0 0 0 0 0 556850 556850
40 85 10005 1269039 0 0 0 0 0 578446 578446
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 6%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 500000
17 500000
18 500000
19 500000
20 500000
21 500000
22 500000
23 500000
24 500000
25 500000
26 500000
27 500000
28 500000
29 500000
30 512844
31 529934
32 546928
33 563898
34 580885
35 597843
36 614870
37 631827
38 648748
39 665714
40 682743
</TABLE>
Not valid without current prospectus and must be accompanied by the Disclosure
page, Continuation of Compliance Report 1, and Supplemental Footnote page.
Page 3 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-53
<PAGE> 161
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 10005 1342997 0 0 0 0 0 600254 600254
42 87 10005 1420652 0 0 0 0 0 622342 622342
43 88 10005 1502190 0 0 0 0 0 644853 644853
44 89 10005 1587805 0 0 0 0 0 667993 667993
45 90 10005 1677700 0 0 0 0 0 692024 692024
46 91 10005 1772090 0 0 0 0 0 717344 717344
47 92 10005 1871200 0 0 0 0 0 744509 744509
48 93 10005 1975266 0 0 0 0 0 774370 774370
49 94 10005 2084534 0 0 0 0 0 808302 808302
50 95 10005 2199266 0 0 0 0 0 848560 848560
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR. (GROSS)
- - --- -------
<S> <C>
41 699896
42 717312
43 734939
44 762962
45 771399
46 790298
47 809728
48 829969
49 851222
50 874017
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s)
and Date)
Illustration Delivered
(Signature of Representative and Date)
Assume guaranteed charges and a gross investment return of 0.00%, contract
lapses after age 76. Assuming guaranteed charges and a gross investment return
of 6.00%, this contract matures at anniversary at age 95. This is an
illustration, not a contract. For presentation in Arizona, 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 a Policyholder, and the different
investment rates of return achieved by the sub account chosen by the
Policyholder. The Surrender Value, Account Value and Benefit Payable at Death
for a contract would be different from those shown if the actual rates of
investment return applicable to the contract averaged 0.00% or 6.00% over a
period of years, but also fluctuated above or below those averages for
individual contract years. No representations can be made that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Disclosure page
and Supplemental Footnote page.
Page 4 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-54
<PAGE> 162
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (eve)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $10,005,06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 10005 10505 500000 8151 7250 500000 8629 7729
2 47 10005 21536 500000 14853 14252 500000 16262 15661
3 48 10005 33118 500000 21313 21013 500000 24113 23813
4 49 10005 45279 500000 27576 27576 500000 32238 32238
5 50 10005 58048 500000 33856 33856 500000 40863 40863
6 51 10005 71456 500000 40026 40026 500000 49874 49874
7 52 10005 85534 500000 46089 46089 500000 59291 59291
8 53 10005 100316 500000 52046 52046 500000 69139 69139
9 54 10005 115838 500000 57901 57901 500000 79442 79442
10 55 10005 132135 500000 63655 63655 500000 90226 90266
11 56 10005 149247 500000 70419 70419 500000 102778 102778
12 57 10005 167214 500000 77047 77047 500000 115926 115926
13 58 10005 186080 500000 83395 83395 500000 129569 129569
14 59 10005 205890 500000 89472 89472 500000 143754 143754
15 60 10005 226690 500000 95237 95237 500000 158486 158486
16 61 10005 248529 500000 100605 100605 500000 173736 173736
17 62 10005 271461 500000 105633 105633 500000 189603 189603
18 63 10005 295540 500000 110285 110285 500000 206115 206115
19 64 10005 320822 500000 114568 114568 500000 223344 223344
20 65 10005 347368 500000 118537 118537 500000 241399 241399
21 66 10005 375242 500000 122108 122108 500000 260303 260303
22 67 10005 404509 500000 125332 125332 500000 280179 280179
23 68 10005 435240 500000 128125 128125 500000 301079 301079
24 69 10005 467507 500000 130361 130361 500000 323042 323042
25 70 10005 501388 500000 131867 131867 500000 345805 345805
26 71 10005 536963 500000 132687 132687 500000 369349 369349
27 72 10005 574316 500000 132644 132644 500000 393635 393635
28 73 10005 613537 500000 131768 131768 500000 418738 418738
29 74 10005 654720 500000 129825 129825 500000 444608 444608
30 75 10005 697961 500000 126651 126651 500000 471241 471241
31 76 10005 743364 500000 122199 122199 500000 498697 498697
32 77 10005 791038 0 116135 116135 500000 526917 526917
33 78 10005 841095 0 108131 108131 500000 555869 555869
34 79 10005 893655 0 96186 96186 500000 584847 584847
35 80 10005 948843 0 80902 80902 500000 614341 614341
36 81 10005 1006791 0 61951 61951 500000 644472 644472
37 82 10005 1067835 0 38208 38208 500000 675136 675136
38 83 10005 1131522 0 11632 11632 500000 707293 707293
39 84 10005 1198604 0 0 0 500000 740368 740368
40 85 10005 1269039 0 0 0 500000 774224 774224
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 6%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 500000
17 500000
18 500000
19 500000
20 500000
21 500000
22 500000
23 500000
24 505884
25 529290
26 552804
27 576479
28 600596
29 624896
30 649511
31 674737
32 700378
33 726466
34 752955
35 777695
36 803657
37 829675
38 857027
39 885110
40 913816
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, the Disclosure page, the continuation of Compliance Report 2, and the
Supplemental Footnote page.
Page 5 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-55
<PAGE> 163
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 10005 1342997 0 0 0 0 0 809043 809043
42 87 10005 1420652 0 0 0 0 0 844694 844684
43 88 10005 1502190 0 0 0 0 0 881389 881389
44 89 10005 1587805 0 0 0 0 0 919286 919286
45 90 10005 1677700 0 0 0 0 0 958610 958610
46 91 10005 1772090 0 0 0 0 0 999560 999560
47 92 10005 1871200 0 0 0 0 0 1042956 1042956
48 93 10005 1975246 0 0 0 0 0 1089705 1089705
49 94 10005 2084534 0 0 0 0 0 1141287 1141287
50 95 10005 2199256 0 0 0 0 0 1200058 1200058
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR. (GROSS)
- - --- -------
<S> <C>
41 943344
42 973583
43 1004519
44 1036219
45 1068563
46 1101216
47 1134318
48 1167946
49 1201890
50 1236060
</TABLE>
Assume current charges and a gross investment return of 0.00%, contract lapses
after age 83. Assuming current charges and a gross investment return of 6.00%.
This contract matures at anniversary at age 95. This is an illustration, not a
contract. For presentation in Arizona, 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 a Policyholder, and the different investment rates of return
achieved by the sub account chosen by the Policyholder. The Surrender Value,
Account Value and Benefit Payable at Death for a contract would be different
from those shown if the actual rates of investment return applicable to the
contract averaged 0.00% or 6.00% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made that these hypothetical rates of return can be achieved for any one
year, or sustained over any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Compliance
Report 1, Disclosure page, and Supplemental Footnote page.
Page 6 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-56
<PAGE> 164
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker Preferred, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,00 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option 1 Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------------
NONE
------------------------------------------------------
From Year 0 to Year 0
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 law relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or target death
benefit and/or a change in death benefit 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 contract, 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.
Values shown on this illustration are based on a policy owner tax bracket of
0.00%.
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 benefit, account value and
surrender value will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's surrender value includes any sales charge refund on full
surrender. The sales charge refund equals the sales charge collected in the
first policy year or the first policy year of an increase adjusted by the
following schedule:
Year 1-100%
Year 2-66.67%
Year 3-33.33%
Premiums less the following deductions are added to the account value. (1) A
premium tax charge of 2.00% of gross premiums in all years. (2) A sales charge
on the gross premium equals to 9% up to the target premium in Years 1-10.0% in
policy years 11 and after, and 0% of premium in excess of the target premium in
all years. (3) A DAC tax charge of 1.25% of gross premiums in all years.
Refer to Prospectus
Page 7 of 8 Page Illustration. This illustration is not valid without all 8
pages.
G-57
<PAGE> 165
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Those columns assuming guaranteed charges use the current monthly mortality
charges and current charges for rider benefits if any, for the first year as
well as the assumed hypothetical gross annual investment return indicated.
Thereafter these columns use guaranteed charges for monthly mortality charges,
rider benefits if any, 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 are declared by MONY Life Insurance Company of America,
are guaranteed for the first policy year, and apply to policies issued as of the
preparation date shown. After the first policy year, current charges are not
guaranteed, and may be changed at the discretion of MONY Life Insurance Company
of America.
The difference between the account value and the value upon surrender is any
outstanding debt plus any applicable sales charge refund. A partial surrender,
the surrender amount and the partial surrender fee ($25.00 or 2% of the amount
surrendered, if less) could be deducted from the benefit payable at death, and
will be deducted from the account value and the value upon surrender.
A policy loan will have a permanent effect on benefits under this policy.
Loan interest at an annual rate of 4.6% will be charged in arrears. Amounts
borrowed will earn interest at an annual rate of 4%. After the 10th policy
anniversary the annual interest rate applicable to the loan account will be
0.30% higher than the rate applicable to policies of the same type which have
not reached their 10th policy anniversary. This increase is anticipated but not
guaranteed. This increase is based on current expectations as to mortality,
investment earnings, persistency and expenses and is not guaranteed. Adverse tax
consequences could occur if a policy subject to loans is surrendered or
permitted to lapse. In addition, the loan interest may not be deductible. Please
consult your tax advisor for advice surrounding the deductibility of loan
interest and other tax consequences.
An administrative charge is deducted each month. During the first 36 policy
months the charge is $10.50 per month, thereafter, the charge is $7.50 per
month.
Refer to Prospectus
Page 8 of 8 Page Illustration. This illustration is not valid without all 8
pages.
G-58
<PAGE> 166
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 10005 10505 0 0 8151 7250 500000 9109 8208
2 47 10005 21536 0 0 14563 13963 500000 17422 16822
3 48 10005 33118 0 0 20798 20498 500000 26566 26266
4 49 10005 45279 0 0 26840 26840 500000 36615 36615
5 50 10005 58048 0 0 32960 32960 500000 47941 47941
6 51 10005 71456 0 0 38864 38864 500000 60359 60359
7 52 10005 85534 0 0 44502 44502 500000 73948 73948
8 53 10005 100316 0 0 49884 49884 500000 88852 88852
9 54 10005 115838 0 0 54962 54962 500000 105184 105184
10 55 10005 132135 0 0 59746 59746 500000 123127 123127
11 56 10005 149247 0 0 65187 65187 500000 144066 144066
12 57 10005 167214 0 0 70249 70249 500000 167144 167144
13 58 10005 186080 0 0 74942 74942 500000 192654 192654
14 59 10005 205890 0 0 79226 79226 500000 220892 220892
15 60 10005 226690 0 0 83058 83058 500000 252210 252210
16 61 10005 248529 0 0 86399 86399 500000 286695 286695
17 62 10005 271461 0 0 89205 89205 500000 324302 324302
18 63 10005 295540 0 0 91437 91437 500000 365288 365288
19 64 10005 320822 0 0 32951 92951 500000 409861 409861
20 65 10005 347368 0 0 93749 93749 500000 458352 458352
21 66 10005 375242 0 0 93686 93686 500000 511007 511007
22 67 10005 404509 0 0 92702 92702 500000 568171 568171
23 68 10005 435240 0 0 90686 90686 500000 630180 630180
24 69 10005 467507 0 0 87514 87514 500000 697400 697400
25 70 10005 501388 0 0 83100 83100 500000 770284 770284
26 71 10005 536963 0 0 77192 77192 500000 849185 849185
27 72 10005 574316 0 0 69255 69255 500000 934224 934224
28 73 10005 613537 0 0 59421 59421 500000 1026246 1026246
29 74 10005 654720 0 0 47018 47018 500000 1125406 1125406
30 75 10005 697961 0 0 31488 31488 500000 1232074 1232074
31 76 10005 743364 0 0 12341 12341 500000 1346798 1346798
32 77 10005 791038 0 0 0 0 0 1470146 1470146
33 78 10005 841095 0 0 0 0 0 1602743 1602743
34 79 10005 893655 0 0 0 0 0 1745417 1745417
35 80 10005 948843 0 0 0 0 0 1899012 1899012
36 81 10005 1006791 0 0 0 0 0 2064337 2064337
37 82 10005 1067635 0 0 0 0 0 2242121 2242121
38 83 10005 1131522 0 0 0 0 0 2433060 2433060
39 84 10005 1198604 0 0 0 0 0 2638000 2638000
40 85 10005 1269039 0 0 0 0 0 2857777 2857777
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 12%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 551028
17 606380
18 664788
19 726356
20 791483
21 860281
22 933165
23 1010367
24 1092129
25 1178996
26 1270975
27 1368172
28 1471944
29 1581758
30 1698168
31 1822218
32 1954118
33 2094625
34 2244432
35 2403959
36 2574229
37 2755342
38 2948139
39 3153729
40 3373035
</TABLE>
Not valid without current prospectus and must be accompanied by the Disclosure
page, continuation of Compliance Report 1, and Supplemental Footnote page.
Page 3 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-59
<PAGE> 167
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 10005 1342997 0 0 0 0 0 3093709 3093709
42 87 10005 1420652 0 0 0 0 0 3347346 3347346
43 88 10005 1502190 0 0 0 0 0 3620764 3620764
44 89 10005 1587805 0 0 0 0 0 3916660 3916660
45 90 10005 1677700 0 0 0 0 0 4238408 4238408
46 91 10005 1772090 0 0 0 0 0 4590715 4590715
47 92 10005 1871200 0 0 0 0 0 4979988 4979988
48 93 10005 1975266 0 0 0 0 0 5415643 5415643
49 94 10005 2084534 0 0 0 0 0 5912412 5912412
50 95 10005 2199266 0 0 0 0 0 6494142 6494142
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR. (GROSS)
- - --- -------
<S> <C>
41 3607265
42 3858151
43 4126585
44 4414859
45 4724553
46 5057591
47 5416235
48 5804486
49 6226361
50 6688966
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s)
and Date)
Illustration Delivered
(Signature of Representative and Date)
Assume guaranteed charges and a gross investment return of 0.00%, contract
lapses after age 76. Assuming guaranteed charges and a gross investment return
of 12.00%. This contract matures at anniversary at age 95. This is an
illustration, not a contract. For presentation in Arizona, 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 a Policyholder, and the different
investment rates of return achieved by the sub account chosen by the
Policyholder. The Surrender Value, Account Value and Benefit Payable at Death
for a contract would be different from those shown if the actual rates of
investment return applicable to the contract averaged 0.00% or 12.00% over a
period of years, but also fluctuated above or below those averages for
individual contract years. No representations can be made that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Disclosure page
and Supplemental Footnote page.
Page 4 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-60
<PAGE> 168
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 10005 10505 0 0 8151 7250 500000 9109 9208
2 47 10005 21536 0 0 14863 14252 500000 17729 17129
3 48 10005 33118 0 0 21313 21013 500000 27148 26848
4 49 10005 45279 0 0 27576 27576 500000 37497 37497
5 50 10005 58048 0 0 33856 33856 500000 49094 49094
6 51 10005 71456 0 0 40026 40026 500000 61921 61921
7 52 10005 85534 0 0 46089 46089 500000 76119 76119
8 53 10005 100316 0 0 52046 52046 500000 91845 91845
9 54 10005 115838 0 0 57901 57901 500000 109272 109272
10 55 10005 132135 0 0 63655 63655 500000 128595 128595
11 56 10005 149247 0 0 70419 70419 500000 151490 151490
12 57 10005 167214 0 0 77047 77047 500000 176936 176936
13 58 10005 186080 0 0 83395 83395 500000 205124 205124
14 59 10005 205890 0 0 89472 89472 500000 236409 236409
15 60 10005 226690 0 0 95237 95237 500000 271079 271079
16 61 10005 248529 0 0 100605 100605 500000 309152 309152
17 62 10005 271461 0 0 105633 105633 500000 350979 350979
18 63 10005 295540 0 0 110285 110285 500000 396899 396899
19 64 10005 320822 0 0 114568 114568 500000 447323 447323
20 65 10005 347368 0 0 118537 118537 500000 502752 502752
21 66 10005 375242 0 0 122108 122108 500000 563609 563609
22 67 10005 404509 0 0 125332 125332 500000 630496 630496
23 68 10005 435240 0 0 128125 128125 500000 703936 703936
24 69 10005 467507 0 0 130361 130361 500000 784443 784443
25 70 10005 501388 0 0 131867 131867 500000 872614 872514
26 71 10005 536963 0 0 132687 132687 500000 968972 968972
27 72 10005 574316 0 0 132644 132644 500000 1074436 1074436
28 73 10005 613537 0 0 131768 131768 500000 1189874 1189874
29 74 10005 654720 0 0 129825 129825 500000 1315995 1315995
30 75 10005 697961 0 0 126651 126651 500000 1453692 1453692
31 76 10005 743364 0 0 122199 122199 500000 1604127 1604127
32 77 10005 791038 0 0 116136 116136 500000 1768184 1768184
33 78 10005 841095 0 0 108131 108131 500000 1946885 1946885
34 79 10005 893655 0 0 96186 96186 500000 2138858 2138858
35 80 10005 948843 0 0 80902 80902 500000 2346904 2346904
36 81 10005 1006791 0 0 61951 61951 500000 2572765 2572765
37 82 10005 1067635 0 0 38208 38208 500000 2817442 2817442
38 83 10005 1131522 0 0 11632 11632 500000 3086596 3086596
39 84 10005 1198604 0 0 0 0 0 3379815 3379815
40 85 10005 1269039 0 0 0 0 0 3698446 3698446
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 12%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 535814
16 594190
17 656260
18 722316
19 792746
20 868152
21 948836
22 1035527
23 1128620
24 1228430
25 1335470
26 1450261
27 1573512
28 1706636
29 1849631
30 2003623
31 2170383
32 2350270
33 2544385
34 2750357
35 2970945
36 3208238
37 3462355
38 3740028
39 4040569
40 4365276
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, the Disclosure page, the Continuation of Compliance Report 2, and the
Supplemental Footnote page.
Page 5 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-61
<PAGE> 169
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 10005 1342997 0 0 0 0 0 4045471 4045471
42 87 10005 1420652 0 0 0 0 0 4422513 4422513
43 88 10005 1502190 0 0 0 0 0 4833335 4833335
44 89 10005 1587805 0 0 0 0 0 5281502 5281502
45 90 10005 1677700 0 0 0 0 0 5771600 5771600
46 91 10005 1772090 0 0 0 0 0 6308520 6309520
47 92 10005 1871200 0 0 0 0 0 6901820 6901820
48 93 10005 1975266 0 0 0 0 0 7563122 7563122
49 94 10005 2084534 0 0 0 0 0 8309956 8309956
50 95 10005 2199266 0 0 0 0 0 9169365 9169365
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR. (GROSS)
- - --- -------
<S> <C>
41 4717020
42 5027308
43 5608552
44 5952309
45 6433603
46 6950096
47 7506419
48 8106154
49 8751214
50 9444446
</TABLE>
Assume current charges and a gross investment return of 0.00%, contract lapses
after age 83. Assuming current charges and a gross investment return of 12.00%.
This contract matures at anniversary at age 95. This is an illustration, not a
contract. For presentation in Arizona, 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 a Policyholder, and the different investment rates of return
achieved by the sub account chosen by the Policyholder. The Surrender Value,
Account Value and Benefit Payable at Death for a contract would be different
from those shown if the actual rates of investment return applicable to the
contract averaged 0.00% or 12.00% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made that these hypothetical rates of return can be achieved for any one
year, or sustained over any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Compliance
Report 1, Disclosure page, and Supplemental Footnote page.
Page 6 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-62
<PAGE> 170
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------------
NONE
------------------------------------------------------
From Year 0 to Year 0
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 law relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or target death
benefit and/or a change in death benefit 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 contract, 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.
Values shown on this illustration are based on a policy owner tax bracket of
0.00%.
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 benefit, account value and
surrender value will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's surrender value includes any sales charge refund on full
surrender. The sales charge refund equals the sales charge collected in the
first policy year or the first policy year of an increase adjusted by the
following schedule:
Year 1-100%
Year 2-66.67%
Year 3-33.33%
Premiums less the following deductions are added to the account value. (1) A
premium tax charge of 2.00% of gross premiums in all years. (2) A sales charge
on the gross premium equals to 9% up to the target premium in Years 1-10.0% in
policy years 11 and after, and 0% of premium in excess of the target premium in
all years. (3) A DAC tax charge of 1.25% of gross premiums in all years.
Refer to Prospectus
Page 7 of 8 Page Illustration. This illustration is not valid without all 8
pages.
G-63
<PAGE> 171
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Those columns assuming guaranteed charges use the current monthly mortality
charges and current charges for rider benefits if any, for the first year as
well as the assumed hypothetical gross annual investment return indicated.
Thereafter these columns use guaranteed charges for monthly mortality charges,
rider benefits if any, 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 are declared by MONY Life Insurance Company of America,
are guaranteed for the first policy year, and apply to policies issued as of the
preparation date shown. After the first policy year, current charges are not
guaranteed, and may be changed at the discretion of MONY Life Insurance Company
of America.
The difference between the account value and the value upon surrender is any
outstanding debt plus any applicable sales charge refund. A partial surrender,
the surrender amount and the partial surrender fee ($25.00 or 2% of the amount
surrendered, if less) could be deducted from the benefit payable at death, and
will be deducted from the account value and the value upon surrender.
A policy loan will have a permanent effect on benefits under this policy.
Loan interest at an annual rate of 4.6% will be charged in arrears. Amounts
borrowed will earn interest at an annual rate of 4%. After the 10th policy
anniversary the annual interest rate applicable to the loan account will be
0.30% higher than the rate applicable to policies in the same type which have
not reached their 10th policy anniversary. This increase is anticipated but not
guaranteed. This increase is based on current expectations as to mortality,
investment earnings, persistency and expenses and is not guaranteed. Adverse tax
consequences could occur if a policy subject to loans is surrendered or
permitted to lapse. In addition, the loan interest may not be deductible. Please
consult your tax advisor for advice surrounding the deductibility of loan
interest and other tax consequences.
An administrative charge is deducted each month. During the first 36 policy
months the charge is $10.50 per month, thereafter, the charge is $7.50 per
month.
Refer to Prospectus
Page 8 of 8 Page Illustration. This illustration is not valid without all 8
pages.
G-64
<PAGE> 172
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issues
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 10005 10505 0 0 8151 7250 500000 8629 7729
2 47 10005 21536 0 0 14562 13963 500000 15963 15363
3 48 10005 33118 0 0 20798 20498 500000 23565 23265
4 49 10005 45279 0 0 26840 26840 500000 31431 31431
5 50 10005 58048 0 0 32960 32960 500000 39845 39845
6 51 10005 71456 0 0 38864 38864 500000 48525 48525
7 52 10005 85534 0 0 44502 44502 500000 57437 57437
8 53 10005 100316 0 0 49884 49884 500000 66601 66601
9 54 10005 115838 0 0 54962 54962 500000 75988 75988
10 55 10005 132135 0 0 59746 59746 500000 85621 85621
11 56 10005 149247 0 0 65187 65187 500000 96573 96573
12 57 10005 167214 0 0 70249 70249 500000 107803 107803
13 58 10005 186080 0 0 74942 74942 500000 119348 119348
14 59 10005 205890 0 0 79226 79226 500000 131199 131199
15 60 10005 226690 0 0 83058 83058 500000 143353 143353
16 61 10005 248529 0 0 86399 86399 500000 155813 155813
17 62 10005 271461 0 0 89205 89205 500000 168588 168588
18 63 10005 295540 0 0 91437 91437 500000 181693 181693
19 64 10005 320822 0 0 92951 92951 500000 195073 195073
20 65 10005 347368 0 0 93749 93749 500000 208796 208796
21 66 10005 375242 0 0 93686 93686 500000 222833 222833
22 67 10005 404509 0 0 92702 92702 500000 237236 237236
23 68 10005 435240 0 0 90686 90686 500000 252038 252038
24 69 10005 467507 0 0 87514 87514 500000 267286 267286
25 70 10005 501388 0 0 83100 83100 500000 283077 283077
26 71 10005 536963 0 0 77192 77192 500000 299446 299446
27 72 10005 574316 0 0 69255 69255 500000 316347 316347
28 73 10005 613537 0 0 59421 59421 500000 334092 334092
29 74 10005 654720 0 0 47018 47018 500000 352711 352711
30 75 10005 697961 0 0 31488 31488 500000 372388 372388
31 76 10005 743364 0 0 12341 12341 500000 393430 393430
32 77 10005 791038 0 0 0 0 0 416219 416219
33 78 10005 841095 0 0 0 0 0 441248 441248
34 79 10005 893655 0 0 0 0 0 469171 469171
35 80 10005 948843 0 0 0 0 0 499643 499643
36 81 10005 1006791 0 0 0 0 0 531218 531218
37 82 10005 1067535 0 0 0 0 0 563882 563882
38 83 10005 1131522 0 0 0 0 0 597605 597605
39 84 10005 1198604 0 0 0 0 0 632353 632353
40 85 10005 1269039 0 0 0 0 0 668070 668070
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 6%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 500000
17 500000
18 500000
19 500000
20 500000
21 500000
22 500000
23 500000
24 500000
25 500000
26 500000
27 500000
28 500000
29 500000
30 500000
31 500000
32 500000
33 500000
34 500000
35 524625
36 557779
37 592076
38 627485
39 663970
40 701474
</TABLE>
Not valid without current prospectus and must be accompanied by the Disclosure
page, continuation of Compliance Report 1, and Supplemental Footnote page.
Page 3 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-65
<PAGE> 173
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: GPT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 10005 1342997 0 0 0 0 0 704713 704713
42 87 10005 1420652 0 0 0 0 0 742229 742229
43 88 10005 1502190 0 0 0 0 0 780565 780565
44 89 10005 1587805 0 0 0 0 0 819673 819673
45 90 10005 1677700 0 0 0 0 0 859482 859482
46 91 10005 1772090 0 0 0 0 0 899914 899914
47 92 10005 1871200 0 0 0 0 0 943344 943344
48 93 10005 1975266 0 0 0 0 0 990370 990370
49 94 10005 2084534 0 0 0 0 0 1041714 1041714
50 95 10005 2199266 0 0 0 0 0 1098265 1098265
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR. (GROSS)
- - --- -------
<S> <C>
41 739940
42 779341
43 819594
44 860656
45 902456
46 944910
47 981077
48 1020081
49 1062548
50 1109248
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s)
and Date)
Illustration Delivered
(Signature of Representative and Date)
Assume guaranteed charges and a gross investment return of 0.00%, contract
lapses after age 76. Assuming guaranteed charges and a gross investment return
of 6.00%. This contract matures at anniversary at age 95. This is an
illustration, not a contract. For presentation in Arizona, 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 a Policyholder, and the different
investment rates of return achieved by the sub account chosen by the
Policyholder. The Surrender Value, Account Value and Benefit Payable at Death
for a contract would be different from those shown if the actual rates of
investment return applicable to the contract averaged 0.00% or 6.00% over a
period of years, but also fluctuated above or below those averages for
individual contract years. No representations can be made that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C>
Initial Guideline Single: $108,829.00 Initial Guideline Annual: $10,005.00
Prepared by: Agent Date prepared: 11/6/96
</TABLE>
Not valid without current prospectus and must be accompanied by Disclosure page
and Supplemental Footnote page.
Page 4 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-66
<PAGE> 174
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: GPT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 10005 10505 0 0 8151 7250 500000 8629 7729
2 47 10005 21536 0 0 14853 14252 500000 16262 15661
3 48 10005 33118 0 0 21313 21013 500000 24113 23813
4 49 10005 45279 0 0 27576 27576 500000 32238 32238
5 50 10005 58048 0 0 33856 33856 500000 40863 40863
6 51 10005 71456 0 0 40026 40026 500000 49874 49874
7 52 10005 85534 0 0 46089 46089 500000 59291 59291
8 53 10005 100316 0 0 52046 52046 500000 69139 69139
9 54 10005 115838 0 0 57901 57901 500000 79442 79442
10 55 10005 132135 0 0 63655 63655 500000 90226 90226
11 56 10005 149247 0 0 70419 70419 500000 102778 102778
12 57 10005 167214 0 0 77047 77047 500000 115926 115926
13 58 10005 186080 0 0 83395 83395 500000 129569 129569
14 59 10005 205890 0 0 89472 89472 500000 143754 143754
15 60 10005 226690 0 0 95237 95237 500000 158486 158486
16 61 10005 248529 0 0 100605 100605 500000 173736 173736
17 62 10005 271461 0 0 105633 105633 500000 189603 189603
18 63 10005 295540 0 0 110285 110285 500000 206115 206115
19 64 10005 320822 0 0 114568 114568 500000 223344 223344
20 65 10005 347368 0 0 118537 118537 500000 241399 241399
21 66 10005 375242 0 0 122108 122108 500000 260303 260303
22 67 10005 404509 0 0 125332 125332 500000 280179 280179
23 68 10005 435240 0 0 128125 128125 500000 301079 301079
24 69 10005 467507 0 0 130361 130361 500000 323053 323053
25 70 10005 501388 0 0 131867 131867 500000 346163 346163
26 71 10005 536963 0 0 132687 132687 500000 370604 370604
27 72 10005 574316 0 0 132644 132644 500000 396512 396512
28 73 10005 613627 0 0 131768 131768 500000 424134 424134
29 74 10005 654720 0 0 129825 129825 500000 453697 453697
30 75 10005 697961 0 0 126651 126651 500000 485300 485300
31 76 10005 743364 0 0 122199 122199 500000 518666 518666
32 77 10005 791038 0 0 116135 116125 500000 553525 553525
33 78 10005 841095 0 0 108131 108131 500000 589917 589917
34 79 10005 893655 0 0 96186 96186 500000 627751 627751
35 80 10005 948843 0 0 80902 80902 500000 667139 667139
36 81 10005 1006791 0 0 61951 61951 500000 708130 708130
37 82 10005 1067635 0 0 38208 38208 500000 750716 750716
38 83 10005 1131522 0 0 11632 11632 500000 795156 795156
39 84 10005 1198604 0 0 0 0 0 841324 841324
40 85 10005 1269039 0 0 0 0 0 889179 889179
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 6%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 500000
17 500000
18 500000
19 500000
20 500000
21 500000
22 500000
23 500000
24 500000
25 500000
26 500000
27 500000
28 500000
29 500000
30 519271
31 544599
32 581201
33 619413
34 659138
35 700496
36 743536
37 788252
38 834914
39 883390
40 933638
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, the Disclosure page, the continuation of Compliance Report 2, and the
Supplemental Footnote page.
Page 5 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-67
<PAGE> 175
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $10,005.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: GPT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 10005 1342997 0 0 0 0 0 938764 938764
42 87 10005 1420652 0 0 0 0 0 989996 989996
43 88 10005 1502190 0 0 0 0 0 1042901 1042901
44 89 10005 1587805 0 0 0 0 0 1097440 1097440
45 90 10005 1677700 0 0 0 0 0 1153567 1153567
46 91 10005 1772090 0 0 0 0 0 1211115 1211115
47 92 10005 1871200 0 0 0 0 0 1272405 1272405
48 93 10005 1975266 0 0 0 0 0 1338080 1338080
49 94 10005 2084534 0 0 0 0 0 1408916 1408916
50 95 10005 2199266 0 0 0 0 0 1485843 1485843
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR. (GROSS)
- - --- -------
<S> <C>
41 985702
42 1039496
43 1095047
44 1152313
45 1211246
46 1271671
47 1323302
48 1378222
49 1437094
50 1500701
</TABLE>
Assume current charges and a gross investment return of 0.00%, contract lapses
after age 83. Assuming current charges and a gross investment return of 6.00%.
This contract matures at anniversary at age 95. This is an illustration, not a
contract. For presentation in Arizona, 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 a Policyholder, and the different investment rates of return
achieved by the sub account chosen by the Policyholder. The Surrender Value,
Account Value and Benefit Payable at Death for a contract would be different
from those shown if the actual rates of investment return applicable to the
contract averaged 0.00% or 6.00% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made that these hypothetical rates of return can be achieved for any one
year, or sustained over any period of time.
<TABLE>
<S> <C>
Initial Guideline Single: $108,829.00 Initial Guideline Annual: $10,005.00
Prepared by: Agent Date prepared: 11/6/96
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, the Disclosure page, and Supplemental Footnote page.
Page 6 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-68
<PAGE> 176
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $10,005.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: GPT
Underwriting Class: Guaranteed Issue
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------------
NONE
------------------------------------------------------
From Year 0 to Year 0
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 law relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or target death
benefit and/or a change in death benefit 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 contract, 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.
Values shown on this illustration are based on a policy owner tax bracket of
0.00%.
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 benefit, account value and
surrender value will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's surrender value includes any sales charge refund on full
surrender. The sales charge refund equals the sales charge collected in the
first policy year or the first policy year of an increase adjusted by the
following schedule:
Year 1-100%
Year 2-66.67%
Year 3-33.33%
Premiums less the following deductions are added to the account value. (1) A
premium tax charge of 2.00% of gross premiums in all years. (2) A sales charge
on the gross premium equals to 9% up to the target premium in Years 1-10.0% in
policy years 11 and after, and 0% of premium in excess of the target premium in
all years. (3) A DAC tax charge of 1.25% of gross premiums in all years.
Refer to Prospectus
Page 7 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-69
<PAGE> 177
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $10,005.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: GPT
Underwriting Class: Guaranteed Issue
</TABLE>
Those columns assuming guaranteed charges use the current monthly mortality
charges and current charges for rider benefits if any, for the first year as
well as the assumed hypothetical gross annual investment return indicated.
Thereafter these columns use guaranteed charges for monthly mortality charges,
rider benefits if any, 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 are declared by MONY Life Insurance Company of America,
are guaranteed for the first policy year, and apply to policies issued as of the
preparation date shown. After the first policy year, current charges are not
guaranteed, and may be changed at the discretion of MONY Life Insurance Company
of America.
The difference between the account value and the value upon surrender is any
outstanding debt plus any applicable sales charge refund. A partial surrender,
the surrender amount and the partial surrender fee ($25.00 or 2% of the amount
surrendered, if less) could be deducted from the benefit payable at death, and
will be deducted from the account value and the value upon surrender.
A policy loan will have a permanent effect on benefits under this policy.
Loan interest at an annual rate of 4.6% will be charged in arrears. Amounts
borrowed will earn interest at an annual rate of 4%. After the 10th policy
anniversary the annual interest rate applicable to the loan account will be
0.30% higher than the rate applicable to policies in the same type which have
not reached their 10th policy anniversary. This increase is anticipated but not
guaranteed. This increase is based on current expectations as to mortality,
investment earnings, persistency and expenses and is not guaranteed. Adverse tax
consequences could occur if a policy subject to loans is surrendered or
permitted to lapse. In addition, the loan interest may not be deductible. Please
consult your tax advisor for advice surrounding the deductibility of loan
interest and other tax consequences.
An administrative charge is deducted each month. During the first 36 policy
months the charge is $10.50 per month, thereafter, the charge is $7.50 per
month.
Refer to Prospectus
Page 8 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-70
<PAGE> 178
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: GPT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 10005 10505 0 0 8151 7250 500000 9109 8206
2 47 10005 21536 0 0 14563 13963 500000 17422 16822
3 48 10005 33118 0 0 20798 20498 500000 26566 26266
4 49 10005 45279 0 0 26840 26840 500000 36615 36615
5 50 10005 58048 0 0 32960 32960 500000 47941 47941
6 51 10005 71456 0 0 38864 38864 500000 60359 60359
7 52 10005 85534 0 0 44502 44502 500000 73948 73948
8 53 10005 100316 0 0 49884 49884 500000 88852 88852
9 54 10005 115838 0 0 54962 54962 500000 105184 105184
10 55 10005 132135 0 0 59746 59746 500000 123127 123127
11 56 10005 149247 0 0 65187 65187 500000 144066 144066
12 57 10005 167214 0 0 70249 70249 500000 167144 167144
13 58 10005 186080 0 0 74942 74942 500000 192654 192654
14 59 10005 205890 0 0 79226 79226 500000 220892 220892
15 60 10005 226690 0 0 83058 83058 500000 252210 252210
16 61 10005 248529 0 0 86399 86399 500000 287023 287023
17 62 10005 271461 0 0 89205 89205 500000 325821 325821
18 63 10005 295540 0 0 91437 91437 500000 369186 369186
19 64 10005 320622 0 0 92951 92951 500000 417742 417742
20 65 10005 347368 0 0 93749 93749 500000 471505 471505
21 66 10005 375242 0 0 93686 93686 500000 530799 530799
22 67 10005 404509 0 0 92702 92702 500000 596086 596086
23 68 10005 435240 0 0 90686 90686 500000 667955 667955
24 69 10005 467507 0 0 87514 87514 500000 747058 747058
25 70 10005 501388 0 0 83100 83100 500000 834132 834132
26 71 10005 536963 0 0 77192 77192 500000 929948 929948
27 72 10005 574316 0 0 69255 69255 500000 1035684 1035684
28 73 10005 613637 0 0 59421 59421 500000 1152662 1152662
29 74 10005 654720 0 0 47018 47018 500000 1282188 1282188
30 75 10005 697961 0 0 31488 31488 500000 1425884 1425884
31 76 10005 743264 0 0 12341 12341 500000 1585728 1585728
32 77 10005 791038 0 0 0 0 0 1761721 1761721
33 78 10005 841098 0 0 0 0 0 1955379 1955379
34 79 10005 893655 0 0 0 0 0 2168366 2168366
35 80 10005 948842 0 0 0 0 0 2402462 2402462
36 81 10005 1006791 0 0 0 0 0 2659554 2659554
37 82 10005 1067638 0 0 0 0 0 2941596 2941596
38 83 10005 1131522 0 0 0 0 0 3250612 3250612
39 84 10005 1198604 0 0 0 0 0 3588738 3588738
40 85 10005 1269039 0 0 0 0 0 3958157 3958157
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 12%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 500000
17 500000
18 500000
19 518000
20 575236
21 636958
22 709342
23 788187
24 874058
25 967593
26 1069440
27 1170323
28 1279455
29 1397585
30 1525696
31 1665015
32 1849807
33 2053148
34 2276784
35 2522585
36 2792632
37 3088676
38 3413143
39 3768175
40 4156065
</TABLE>
Not valid without current prospectus and must be accompanied by the Disclosure
page, continuation of Compliance Report 1, and Supplemental Footnote page.
Page 3 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-71
<PAGE> 179
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: GPT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 10005 1342997 0 0 0 0 0 4361242 4361242
42 87 10005 1420662 0 0 0 0 0 4800496 4800496
43 88 10005 1502190 0 0 0 0 0 5278553 5278553
44 89 10005 1587805 0 0 0 0 0 5798258 5798258
45 90 10005 1677700 0 0 0 0 0 6362476 6362476
46 91 10005 1772090 0 0 0 0 0 6974163 6974163
47 92 10005 1871200 0 0 0 0 0 7656328 7656328
48 93 10005 1975266 0 0 0 0 0 8421031 8421031
49 94 10005 2084534 0 0 0 0 0 9283069 9283069
50 95 10005 2199266 0 0 0 0 0 10260896 10260896
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR. (GROSS)
- - --- --------
<S> <C>
41 4579304
42 5040521
43 5542401
44 6089171
45 6680600
46 7322871
47 7962581
48 8673662
49 9468731
50 10363505
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s)
and Date)
Illustration Delivered
(Signature of Representative and Date)
Assume current charges and a gross investment return of 0.00%, contract lapses
after age 76. Assuming current charges and a gross investment return of 12.00%.
This contract matures at anniversary at age 95. This is an illustration, not a
contract. For presentation in Arizona, 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 a Policyholder, and the different investment rates of return
achieved by the sub account chosen by the Policyholder. The Surrender Value,
Account Value and Benefit Payable at Death for a contract would be different
from those shown if the actual rates of investment return applicable to the
contract averaged 0.00% or 12.00% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made that these hypothetical rates of return can be achieved for any one
year, or sustained over any period of time.
<TABLE>
<S> <C>
Initial Guideline Single: $108,829.00 Initial Guideline Annual: $10,005.00
Prepared by: Agent Date prepared: 11/6/96
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, the Disclosure page, and Supplemental Footnote page.
Page 4 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-72
<PAGE> 180
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $10,005.06 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: GPT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 10005 10505 0 0 8151 7250 500000 9109 8208
2 47 10005 21536 0 0 14853 14252 500000 17729 17129
3 48 10005 33118 0 0 21313 21013 500000 27148 26848
4 49 10005 45279 0 0 27576 27576 500000 37497 37497
5 50 10005 58048 0 0 33856 33856 500000 49094 49094
6 51 10005 71456 0 0 40026 40026 500000 61921 61921
7 52 10005 85534 0 0 46089 46089 500000 76119 76119
8 53 10005 100316 0 0 52046 52046 500000 91845 91845
9 54 10005 115838 0 0 57901 57901 500000 109272 109272
10 55 10005 132135 0 0 63655 63655 500000 128595 128595
11 56 10005 149247 0 0 70419 70419 500000 151490 151490
12 57 10005 167216 0 0 77047 77047 500000 176936 176936
13 58 10005 186080 0 0 83395 83395 500000 205124 205124
14 59 10005 205890 0 0 89472 89472 500000 236409 236409
15 60 10005 226690 0 0 95237 95237 500000 271160 271160
16 61 10005 248529 0 0 100605 100605 500000 309785 309785
17 62 10005 271461 0 0 105633 105633 500000 352844 352844
18 63 10005 295540 0 0 110285 110285 500000 400928 400928
19 64 10005 320822 0 0 114568 114568 500000 454362 454362
20 65 10005 347368 0 0 118537 118537 500000 513519 513519
21 66 10005 375242 0 0 122108 122108 500000 579006 579006
22 67 10005 404509 0 0 125332 125332 500000 651453 651453
23 68 10005 435240 0 0 128125 128125 500000 731579 731579
24 69 10005 467507 0 0 130361 130361 500000 820158 820158
25 70 10005 501388 0 0 131867 131867 500000 918029 918029
26 71 10005 536963 0 0 132687 132687 500000 1026206 1026206
27 72 10005 574316 0 0 132644 132644 500000 1145989 1145989
28 73 10005 613537 0 0 131768 131768 500000 1278778 1278778
29 74 10005 654720 0 0 129825 129825 500000 1426068 1426068
30 75 10005 697961 0 0 126651 126651 500000 1589629 1589629
31 76 10005 743364 0 0 122199 122199 500000 1771549 1771549
32 77 10005 791038 0 0 116135 116135 500000 1972682 1972682
33 78 10005 841095 0 0 108131 108131 500000 2194943 2194943
34 79 10005 893655 0 0 96186 96186 500000 2439921 2439921
35 80 10005 948843 0 0 80902 80902 500000 2710130 2710130
36 81 10005 1006791 0 0 61951 61951 500000 3008076 3008076
37 82 10005 1067635 0 0 38208 38208 500000 3336249 3336249
38 83 10005 1131522 0 0 11632 11632 500000 3698579 3698579
39 84 10005 1198604 0 0 0 0 0 4097607 4097607
40 85 10005 1269039 0 0 0 0 0 4536444 4536444
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 12%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 500000
17 500000
18 505169
19 563409
20 626494
21 694807
22 775229
23 863263
24 959585
25 1064914
26 1180137
27 1294968
28 1419443
29 1554414
30 1700903
31 1860127
32 2071316
33 2304690
34 2561918
35 2845636
36 3158479
37 3503061
38 3883508
39 4302487
40 4763267
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, the Disclosure page, the continuation of Compliance Report 2, and the
Supplemental Footnote page.
Page 5 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-73
<PAGE> 181
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $10,005.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: GPT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 10005 1342997 0 0 0 0 0 5018885 5018885
42 87 10005 1420652 0 0 0 0 0 5548374 5548374
43 88 10005 1502190 0 0 0 0 0 6129220 6129220
44 89 10005 1587805 0 0 0 0 0 6765704 6765704
45 90 10005 1677700 0 0 0 0 0 7462390 7462390
46 91 10005 1772090 0 0 0 0 0 8223356 8223356
47 92 10005 1871200 0 0 0 0 0 9070608 9070608
48 93 10005 1975266 0 0 0 0 0 10017453 10017453
49 94 10005 2084534 0 0 0 0 0 11080027 11080027
50 95 10005 2199266 0 0 0 0 0 12277920 12277920
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR. (GROSS)
- - --- --------
<S> <C>
41 5269829
42 5825792
43 6436681
44 7103989
45 7835509
46 8634524
47 9433432
48 10317977
49 11301628
50 12400699
</TABLE>
Assume current charges and a gross investment return of 0.00%, contract lapses
after age 83. Assuming current charges and a gross investment return of 12.00%.
This contract matures at anniversary at age 95. This is an illustration, not a
contract. For presentation in Arizona, 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 a Policyholder, and the different investment rates of return
achieved by the sub account chosen by the Policyholder. The Surrender Value,
Account Value and Benefit Payable at Death for a contract would be different
from those shown if the actual rates of investment return applicable to the
contract averaged 0.00% or 12.00% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made that these hypothetical rates of return can be achieved for any one
year, or sustained over any period of time.
<TABLE>
<S> <C>
Initial Guideline Single: $108,829.00 Initial Guideline Annual: $10,005.00
Prepared by: Agent Date prepared: 11/6/96
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, Disclosure page, and Supplemental Footnote page.
Page 6 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-74
<PAGE> 182
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $10,005.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: GPT
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------------
NONE
------------------------------------------------------
From Year 0 to Year 0
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 law relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or target death
benefit and/or a change in death benefit 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 contract, 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.
Values shown on this illustration are based on a policy owner tax bracket of
0.00%.
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 benefit, account value and
surrender value will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's surrender value includes any sales charge refund on full
surrender. The sales charge refund equals the sales charge collected in the
first policy year or the first policy year of an increase adjusted by the
following schedule:
Year 1-100%
Year 2-66.67%
Year 3-33.33%
Premiums less the following deductions are added to the account value. (1) A
premium tax charge of 2.00% of gross premiums in all years. (2) A sales charge
on the gross premium equals to 9% up to the target premium in Years 1-10.0% in
policy years 11 and after, and 0% of premium in excess of the target premium in
all years. (3) A DAC tax charge of 1.25% of gross premiums in all years.
Refer to Prospectus
Page 7 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-75
<PAGE> 183
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $10,005.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: GPT
Underwriting Class: Guaranteed Issue
</TABLE>
Those columns assuming guaranteed charges use the current monthly mortality
charges and current charges for rider benefits if any, for the first year as
well as the assumed hypothetical gross annual investment return indicated.
Thereafter these columns use guaranteed charges for monthly mortality charges,
rider benefits if any, 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 are declared by MONY Life Insurance Company of America,
are guaranteed for the first policy year, and apply to policies issued as of the
preparation date shown. After the first policy year, current charges are not
guaranteed, and may be changed at the discretion of MONY Life Insurance Company
of America.
The difference between the account value and the value upon surrender is any
outstanding debt plus any applicable sales charge refund. A partial surrender,
the surrender amount and the partial surrender fee ($25.00 or 2% of the amount
surrendered, if less) could be deducted from the benefit payable at death, and
will be deducted from the account value and the value upon surrender.
A policy loan will have a permanent effect on benefits under this policy.
Loan interest at an annual rate of 4.6% will be charged in arrears. Amounts
borrowed will earn interest at an annual rate of 4%. After the 10th policy
anniversary the annual interest rate applicable to the loan account will be
0.30% higher than the rate applicable to policies in the same type which have
not reached their 10th policy anniversary. This increase is anticipated but not
guaranteed. This additional increase is based on current expectations as to
mortality, investment earnings, persistency and expenses and is not guaranteed.
Adverse tax consequences could occur if a policy subject to loans is surrendered
or permitted to lapse. In addition, the loan interest may not be deductible.
Please consult your tax advisor for advice surrounding the deductibility of loan
interest and other tax consequences.
An administrative charge is deducted each month. During the first 36 policy
months the charge is $10.50 per month, thereafter, the charge is $7.50 per
month.
Refer to Prospectus
Page 8 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-76
<PAGE> 184
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $5,000.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 5000 5250 0 0 3354 2904 500000 3570 3120
2 47 5000 10763 0 0 5606 5306 500000 6207 5907
3 48 5000 16551 0 0 7719 7569 500000 8865 8715
4 49 5000 22628 0 0 9672 9672 500000 11522 11522
5 50 5000 29010 0 0 11581 11581 500000 14292 14292
6 51 5000 35710 0 0 13301 13301 500000 17027 17027
7 52 5000 42746 0 0 14775 14775 500000 19668 19668
8 53 5000 50133 0 0 16008 16008 500000 22211 22211
9 54 5000 57889 0 0 16944 16944 500000 24596 24596
10 55 5000 66034 0 0 17587 17587 500000 26817 26817
11 56 5000 74586 0 0 18360 18360 500000 29332 29332
12 57 5000 83565 0 0 18729 18729 500000 31585 31585
13 58 5000 92993 0 0 18696 18696 500000 33566 33566
14 59 5000 102893 0 0 18203 18203 500000 35203 35203
15 60 5000 113287 0 0 17194 17194 500000 36423 36423
16 61 5000 124202 0 0 15608 15608 500000 37147 37147
17 62 5000 135662 0 0 13383 13383 500000 37288 37288
18 63 5000 147695 0 0 10453 10453 500000 36753 36753
19 64 5000 160330 0 0 6630 6630 500000 35325 35325
20 65 5000 173596 0 0 1897 1897 500000 32941 32941
21 66 5000 187526 0 0 0 0 0 29350 29350
22 67 5000 202152 0 0 0 0 0 24395 24395
23 68 5000 217510 0 0 0 0 0 17832 17832
24 69 5000 233635 0 0 0 0 0 9386 9386
25 70 0 0 0 0 0 0 0 0 0
26 71 0 0 0 0 0 0 0 0 0
27 72 0 0 0 0 0 0 0 0 0
28 73 0 0 0 0 0 0 0 0 0
29 74 0 0 0 0 0 0 0 0 0
30 75 0 0 0 0 0 0 0 0 0
31 76 0 0 0 0 0 0 0 0 0
32 77 0 0 0 0 0 0 0 0 0
33 78 0 0 0 0 0 0 0 0 0
34 79 0 0 0 0 0 0 0 0 0
35 80 0 0 0 0 0 0 0 0 0
36 81 0 0 0 0 0 0 0 0 0
37 82 0 0 0 0 0 0 0 0 0
38 83 0 0 0 0 0 0 0 0 0
39 84 0 0 0 0 0 0 0 0 0
40 85 0 0 0 0 0 0 0 0 0
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 6%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 500000
17 500000
18 500000
19 500000
20 500000
21 500000
22 500000
23 500000
24 500000
25 0
26 0
27 0
28 0
29 0
30 0
31 0
32 0
33 0
34 0
35 0
36 0
37 0
38 0
39 0
40 0
</TABLE>
Not valid without current prospectus and must be accompanied by the Disclosure
page, continuation of Compliance Report 1, and Supplemental Footnote page.
Page 3 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-77
<PAGE> 185
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $5,000.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 0 0 0 0 0 0 0 0
42 87 0 0 0 0 0 0 0 0 0
43 88 0 0 0 0 0 0 0 0 0
44 89 0 0 0 0 0 0 0 0 0
45 90 0 0 0 0 0 0 0 0 0
46 91 0 0 0 0 0 0 0 0 0
47 92 0 0 0 0 0 0 0 0 0
48 93 0 0 0 0 0 0 0 0 0
49 94 0 0 0 0 0 0 0 0 0
50 95 0 0 0 0 0 0 0 0 0
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR. (GROSS)
- - --- -------
<S> <C>
41 0
42 0
43 0
44 0
45 0
46 0
47 0
48 0
49 0
50 0
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s)
and Date)
Illustration Delivered
(Signature of Representative and Date)
Assume current charges and a gross investment return of 0.00%, contract lapses
after age 65. Assuming current charges and a gross investment return of 6.00%.
This contract lapses after age 69. This is an illustration, not a contract. For
presentation in Arizona, 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 a
Policyholder, and the different investment rates of return achieved by the sub
account chosen by the Policyholder. The Surrender Value, Account Value and
Benefit Payable at Death for a contract would be different from those shown if
the actual rates of investment return applicable to the contract averaged 0.00%
or 6.00% over a period of years, but also fluctuated above or below those
averages for individual contract years. No representations can be made that
these hypothetical rates of return can be achieved for any one year, or
sustained over any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Disclosure page
and Supplemental Footnote page.
Page 4 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-78
<PAGE> 186
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $5,000.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 5000 5250 0 0 3354 2904 500000 3570 3120
2 47 5000 10763 0 0 5901 5601 500000 6611 6211
3 48 5000 16551 0 0 8246 8096 500000 9426 9276
4 49 5000 22628 0 0 10427 10427 500000 12352 12352
5 50 5000 29010 0 0 12504 12504 500000 15344 15344
6 51 5000 35710 0 0 14506 14506 500000 18430 18430
7 52 5000 42746 0 0 16432 16432 500000 21615 21615
8 53 5000 50133 0 0 18285 18285 500000 24906 24906
9 54 5000 57889 0 0 20064 20064 500000 28307 28307
10 55 5000 66034 0 0 21772 21772 500000 31827 31827
11 56 5000 74586 0 0 23932 23932 500000 36507 36507
12 57 5000 83565 0 0 25967 25967 500000 40406 40406
13 58 5000 92993 0 0 27711 27711 500000 44714 44714
14 59 5000 102893 0 0 29167 29167 500000 48985 48985
15 60 5000 113287 0 0 30281 30281 500000 53166 53166
16 61 5000 124202 0 0 30945 30945 500000 57149 57149
17 62 5000 135662 0 0 31216 31216 500000 60985 60985
18 63 5000 147695 0 0 31040 31040 500000 64618 64618
19 64 5000 160330 0 0 30417 30417 500000 68042 68042
20 65 5000 173596 0 0 29400 29400 500000 71304 71304
21 66 5000 187526 0 0 27875 27875 500000 74296 74296
22 67 5000 202152 0 0 25895 25895 500000 77059 77059
23 68 5000 217510 0 0 23339 23339 500000 79480 79480
24 69 5000 233635 0 0 20028 20028 500000 81386 81386
25 70 5000 250567 0 0 15716 15716 500000 82544 82544
26 71 5000 268346 0 0 10434 10434 500000 82957 82957
27 72 5000 287013 0 0 3917 3917 500000 82368 82368
28 73 5000 306614 0 0 0 0 0 80752 80752
29 74 5000 327194 0 0 0 0 0 77761 77761
30 75 5000 348604 0 0 0 0 0 73111 73111
31 76 5000 371494 0 0 0 0 0 66633 66633
32 77 5000 398319 0 0 0 0 0 57798 57798
33 78 5000 420335 0 0 0 0 0 46039 46039
34 79 5000 446602 0 0 0 0 0 28711 28711
35 80 5000 474182 0 0 0 0 0 6101 6101
36 81 0 0 0 0 0 0 0 0 0
37 82 0 0 0 0 0 0 0 0 0
38 83 0 0 0 0 0 0 0 0 0
39 84 0 0 0 0 0 0 0 0 0
40 85 0 0 0 0 0 0 0 0 0
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 6%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 500000
17 500000
18 500000
19 500000
20 500000
21 500000
22 500000
23 500000
24 500000
25 500000
26 500000
27 500000
28 500000
29 500000
30 500000
31 500000
32 500000
33 500000
34 500000
35 500000
36 0
37 0
38 0
39 0
40 0
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, the Disclosure page, the continuation of Compliance Report 2, and the
Supplemental Footnote page.
Page 5 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-79
<PAGE> 187
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $5,000.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 6% @ 6%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 0 0 0 0 0 0 0 0 0
42 87 0 0 0 0 0 0 0 0 0
43 88 0 0 0 0 0 0 0 0 0
44 89 0 0 0 0 0 0 0 0 0
45 90 0 0 0 0 0 0 0 0 0
46 91 0 0 0 0 0 0 0 0 0
47 92 0 0 0 0 0 0 0 0 0
48 93 0 0 0 0 0 0 0 0 0
49 94 0 0 0 0 0 0 0 0 0
50 95 0 0 0 0 0 0 0 0 0
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 6%
YR. (GROSS)
- - --- -------
<S> <C>
41 0
42 0
43 0
44 0
45 0
46 0
47 0
48 0
49 0
50 0
</TABLE>
Assume current charges and a gross investment return of 0.00%, contract lapses
after age 72. Assuming current charges and a gross investment return of 6.00%.
This contract lapses after age 95. This is an illustration, not a contract. For
presentation in Arizona, 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 a
Policyholder, and the different investment rates of return achieved by the sub
account chosen by the Policyholder. The Surrender Value, Account Value and
Benefit Payable at Death for a contract would be different from those shown if
the actual rates of investment return applicable to the contract averaged 0.00%
or 6.00% over a period of years, but also fluctuated above or below those
averages for individual contract years. No representations can be made that
these hypothetical rates of return can be achieved for any one year, or
sustained over any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Compliance
Report 1, Disclosure page, and Supplemental Footnote page.
Page 6 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-80
<PAGE> 188
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $5,000.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------------
NONE
------------------------------------------------------
From Year 0 to Year 0
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 law relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or target death
benefit and/or a change in death benefit 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 contract, 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.
Values shown on this illustration are based on a policy owner tax bracket of
0.00%.
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 benefit, account value and
surrender value will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's surrender value includes any sales charge refund on full
surrender. The sales charge refund equals the sales charge collected in the
first policy year or the first policy year of an increase adjusted by the
following schedule:
Year 1-100%
Year 2-66.67%
Year 3-33.33%
Premiums less the following deductions are added to the account value. (1) A
premium tax charge of 2.00% of gross premiums in all years. (2) A sales charge
on the gross premium equals to 9% up to the target premium in Years 1-10.0% in
policy years 11 and after, and 0% of premium in excess of the target premium in
all years. (3) A DAC tax charge of 1.25% of gross premiums in all years.
Refer to Prospectus
Page 7 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-81
<PAGE> 189
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 6.0% (5.3% Initial NET)
Annual Premium: $5,000.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Those columns assuming guaranteed charges use the current monthly mortality
charges and current charges for rider benefits if any, for the first year as
well as the assumed hypothetical gross annual investment return indicated.
Thereafter these columns use guaranteed charges for monthly mortality charges,
rider benefits if any, 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 are declared by MONY Life Insurance Company of America,
are guaranteed for the first policy year, and apply to policies issued as of the
preparation date shown. After the first policy year, current charges are not
guaranteed, and may be changed at the discretion of MONY Life Insurance Company
of America.
The difference between the account value and the value upon surrender is any
outstanding debt plus any applicable sales charge refund. A partial surrender,
the surrender amount and the partial surrender fee ($25.00 or 2% of the amount
surrendered, if less) could be deducted from the benefit payable at death, and
will be deducted from the account value and the value upon surrender.
A policy loan will have a permanent effect on benefits under this policy.
Loan interest at an annual rate of 4.6% will be charged in arrears. Amounts
borrowed will earn interest at an annual rate of 4%. After the 10th policy
anniversary the annual interest rate applicable to the loan account will be
0.30% higher than the rate applicable to policies in the same type which have
not reached their 10th policy anniversary. This increase is anticipated but not
guaranteed. This increase is based on current expectations as to mortality,
investment earnings, persistency and expenses and is not guaranteed. Adverse tax
consequences could occur if a policy subject to loans is surrendered or
permitted to lapse. In addition, the loan interest may not be deductible. Please
consult your tax advisor for advice surrounding the deductibility of loan
interest and other tax consequences.
An administrative charge is deducted each month. During the first 36 policy
months the charge is $10.50 per month, thereafter, the charge is $7.50 per
month.
Refer to Prospectus
Page 8 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-82
<PAGE> 190
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $5,000.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 5000 5250 0 0 3354 2904 500000 3786 3336
2 47 5000 10763 0 0 5506 5306 500000 6836 6536
3 48 5000 16551 0 0 7719 7569 500000 10115 9965
4 49 5000 22628 0 0 9672 9672 500000 13626 13626
5 50 5000 29010 0 0 11581 11581 500000 17509 17509
6 51 5000 35710 0 0 13301 13301 500000 21642 21642
7 52 5000 42746 0 0 14775 14775 500000 25996 25996
8 53 5000 50133 0 0 16008 16008 500000 30601 30601
9 54 5000 57889 0 0 16944 16944 500000 35429 35429
10 55 5000 66034 0 0 17587 17587 500000 40513 40513
11 56 5000 74586 0 0 18360 18360 500000 46405 46405
12 57 5000 83565 0 0 18729 18729 500000 52585 52585
13 58 5000 92993 0 0 18696 18696 500000 59097 59097
14 59 5000 102893 0 0 18203 18203 500000 65937 65937
15 60 5000 113287 0 0 17194 17194 500000 73104 73104
16 61 5000 124202 0 0 15608 15608 500000 80600 80600
17 62 5000 135662 0 0 13383 13383 500000 88431 88431
18 63 5000 147695 0 0 10453 10453 500000 96608 96608
19 64 5000 160330 0 0 6630 6630 500000 105049 105049
20 65 5000 173596 0 0 1897 1897 500000 113818 113818
21 66 5000 187526 0 0 0 0 0 122846 122846
22 67 5000 202152 0 0 0 0 0 132161 132161
23 68 5000 217510 0 0 0 0 0 141755 141755
24 69 5000 233635 0 0 0 0 0 151627 151627
25 70 5000 250567 0 0 0 0 0 161830 161830
26 71 5000 268346 0 0 0 0 0 172304 172304
27 72 5000 287013 0 0 0 0 0 182793 182793
28 73 5000 306614 0 0 0 0 0 193599 193599
29 74 5000 327194 0 0 0 0 0 204475 204475
30 75 5000 348804 0 0 0 0 0 215325 215325
31 76 5000 371494 0 0 0 0 0 226171 226171
32 77 5000 395319 0 0 0 0 0 237020 237020
33 78 5000 420335 0 0 0 0 0 247893 247893
34 79 5000 446602 0 0 0 0 0 258899 258899
35 80 5000 474182 0 0 0 0 0 270119 270119
36 81 5000 503141 0 0 0 0 0 281616 281616
37 82 5000 533548 0 0 0 0 0 293385 293385
38 83 5000 565475 0 0 0 0 0 305426 305426
39 84 5000 598999 0 0 0 0 0 317831 317831
40 85 5000 614199 0 0 0 0 0 330738 330738
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 12%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 500000
17 500000
18 500000
19 500000
20 500000
21 500000
22 500000
23 500000
24 500000
25 500000
26 500000
27 500000
28 500000
29 500000
30 500000
31 500000
32 500000
33 500000
34 500000
35 500000
36 500000
37 500000
38 500000
39 500000
40 500000
</TABLE>
Not valid without current prospectus and must be accompanied by the Disclosure
page, continuation of Compliance Report 1, and Supplemental Footnote page.
Page 3 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-83
<PAGE> 191
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 1
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $5,000.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Guaranteed Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 5000 671159 0 0 0 0 0 344522 344522
42 87 5000 709967 0 0 0 0 0 359779 359779
43 88 5000 750715 0 0 0 0 0 377429 377429
44 89 5000 793501 0 0 0 0 0 398920 398920
45 90 5000 838426 0 0 0 0 0 426426 426426
46 91 5000 885597 0 0 0 0 0 463154 463154
47 92 5000 935127 0 0 0 0 0 506522 506522
48 93 5000 987133 0 0 0 0 0 554931 554931
49 94 5000 1041740 0 0 0 0 0 609940 609940
50 95 5000 1099077 0 0 0 0 0 674078 674078
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR. (GROSS)
- - --- -------
<S> <C>
41 500000
42 500000
43 500000
44 500000
45 500000
46 510257
47 550894
48 594775
49 642328
50 694300
</TABLE>
Illustration Received
(Signature of Applicant/Policyholder(s)
and Date)
Illustration Delivered
(Signature of Representative and Date)
Assume guaranteed charges and a gross investment return of 0.00%, contract
lapses after age 65. Assuming guaranteed charges and a gross investment return
of 12.00%. This contract matures at anniversary at age 95. This is an
illustration, not a contract. For presentation in Arizona, 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 a Policyholder, and the different
investment rates of return achieved by the sub account chosen by the
Policyholder. The Surrender Value, Account Value and Benefit Payable at Death
for a contract would be different from those shown if the actual rates of
investment return applicable to the contract averaged 0.00% or 12.00% over a
period of years, but also fluctuated above or below those averages for
individual contract years. No representations can be made that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Disclosure page
and Supplemental Footnote page.
Page 4 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-84
<PAGE> 192
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $5,000.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - ---- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 5000 5250 0 0 3354 2904 500000 3786 3336
2 47 5000 10763 0 0 5901 5601 500000 7149 6849
3 48 5000 16551 0 0 8246 8096 500000 10711 10561
4 49 5000 22628 0 0 10427 10427 500000 14535 14535
5 50 5000 29010 0 0 12504 12504 500000 18703 18703
6 51 5000 35710 0 0 14506 14506 500000 23273 23273
7 52 5000 42746 0 0 16432 16432 500000 28290 28290
8 53 5000 50133 0 0 18285 18285 500000 33807 33807
9 54 5000 57889 0 0 20064 20064 500000 39880 39880
10 55 5000 66034 0 0 21772 21772 500000 46572 46572
11 56 5000 74586 0 0 23932 23932 500000 54623 54623
12 57 5000 83565 0 0 25967 25967 500000 63488 63488
13 58 5000 92993 0 0 27711 27711 500000 73104 73104
14 59 5000 102893 0 0 29167 29167 500000 83568 83568
15 60 5000 113287 0 0 30281 30281 500000 94942 94942
16 61 5000 124202 0 0 30945 30945 500000 107247 107247
17 62 5000 135662 0 0 31216 31216 500000 120670 120670
18 63 5000 147695 0 0 31040 31040 500000 135319 135319
19 64 5000 160330 0 0 30417 30417 500000 151373 151373
20 65 5000 173596 0 0 29400 29400 500000 169078 169078
21 66 5000 187526 0 0 27875 27875 500000 188588 188588
22 67 5000 202152 0 0 25895 25895 500000 210208 210208
23 68 5000 217510 0 0 23339 23339 500000 234176 234176
24 69 5000 233635 0 0 20028 20028 500000 260753 260753
25 70 5000 250567 0 0 15716 15716 500000 290245 290245
26 71 5000 268346 0 0 10434 10434 500000 323187 323187
27 72 5000 287013 0 0 3917 3917 500000 359938 359938
28 73 5000 306614 0 0 0 0 0 400297 400297
29 74 5000 327194 0 0 0 0 0 444399 444399
30 75 5000 348804 0 0 0 0 0 492555 492555
31 76 5000 371494 0 0 0 0 0 545172 545172
32 77 5000 395319 0 0 0 0 0 602561 602561
33 78 5000 420335 0 0 0 0 0 665082 665082
34 79 5000 445602 0 0 0 0 0 732274 732274
35 80 5000 474182 0 0 0 0 0 805104 805104
36 81 5000 503141 0 0 0 0 0 884179 884179
37 82 5000 533548 0 0 0 0 0 969854 969854
38 83 5000 565475 0 0 0 0 0 1064086 1064086
39 84 5000 598999 0 0 0 0 0 1166748 1166748
40 85 5000 634199 0 0 0 0 0 1278313 1278313
<CAPTION>
(10)
DEATH
BENEFIT
POL. @ 12%
YR. (GROSS)
- - ---- -------
<S> <C>
1 500000
2 500000
3 500000
4 500000
5 500000
6 500000
7 500000
8 500000
9 500000
10 500000
11 500000
12 500000
13 500000
14 500000
15 500000
16 500000
17 500000
18 500000
19 500000
20 500000
21 500000
22 500000
23 500000
24 500000
25 500000
26 500000
27 527129
28 574146
29 624602
30 678889
31 737618
32 800925
33 869196
34 941630
35 1019181
36 1102571
37 1191853
38 1289353
39 1394847
40 1508793
</TABLE>
Not valid without current prospectus and must be accompanied by Compliance
Report 1, the Disclosure page, the continuation of Compliance Report 2, and the
Supplemental Footnote page.
Page 5 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-85
<PAGE> 193
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
COMPLIANCE REPORT 2
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $5,000.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Values Assume Use of Current Mortality with Assumed Interest Rates
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5) (6) (7) (8) (9)
PARTIAL
SURRENDER SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT
TOTAL PREMIUM FR. VALUE VALUE BENEFIT VALUE VALUE
POL. AGE POLICY ACCUM. ANNUAL INSUR. @ 0% @ 0% @ 0% @ 12% @ 12%
YR. EOY PREMIUM @ 5% LOAN CONTRACT (GROSS) (GROSS) (GROSS) (GROSS) (GROSS)
- - --- --- ------- ------- ------ --------- --------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 5000 671159 0 0 0 0 0 1399823 1399823
42 87 5000 709967 0 0 0 0 0 1531849 1531849
43 88 5000 750715 0 0 0 0 0 1675705 1675705
44 89 5000 793501 0 0 0 0 0 1832638 1832638
45 90 5000 838426 0 0 0 0 0 2004249 2004249
46 91 5000 885597 0 0 0 0 0 2192249 2192249
47 92 5000 935127 0 0 0 0 0 2399973 2399973
48 93 5000 987133 0 0 0 0 0 2631476 2631476
49 94 5000 1041740 0 0 0 0 0 2892877 2892877
50 95 5000 1099077 0 0 0 0 0 3193612 3193612
<CAPTION>
(10)
DEATH
BENEFIT
POL @ 12%
YR. (GROSS)
- - --- -------
<S> <C>
41 1632194
42 1765689
43 1909801
44 2065749
45 2234136
46 2415201
47 1610210
48 2820416
49 3046488
50 2289420
</TABLE>
Assume current charges and a gross investment return of 0.00%, contract lapses
after age 72. Assuming current charges and a gross investment return of 12.00%.
This contract matures at anniversary at age 95. This is an illustration, not a
contract. For presentation in Arizona, 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 a Policyholder, and the different investment rates of return
achieved by the sub account chosen by the Policyholder. The Surrender Value,
Account Value and Benefit Payable at Death for a contract would be different
from those shown if the actual rates of investment return applicable to the
contract averaged 0.00% or 12.00% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made that these hypothetical rates of return can be achieved for any one
year, or sustained over any period of time.
Prepared by: Agent Date prepared: 11/6/96
Not valid without current prospectus and must be accompanied by Compliance
Report 1, Disclosure page, and Supplemental Footnote page.
Page 6 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-86
<PAGE> 194
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $5,000.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
</TABLE>
Additional Riders and Benefits Included in This Proposal
------------------------------------------------------
NONE
------------------------------------------------------
From Year 0 to Year 0
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 law relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or target death
benefit and/or a change in death benefit 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 contract, 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.
Values shown on this illustration are based on a policy owner tax bracket of
0.00%.
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 benefit, account value and
surrender value will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's surrender value includes any sales charge refund on full
surrender. The sales charge refund equals the sales charge collected in the
first policy year or the first policy year of an increase adjusted by the
following schedule:
Year 1-100%
Year 2-66.67%
Year 3-33.33%
Premiums less the following deductions are added to the account value. (1) A
premium tax charge of 2.00% of gross premiums in all years. (2) A sales charge
on the gross premium equals to 9% up to the target premium in Years 1-10.0% in
policy years 11 and after, and 0% of premium in excess of the target premium in
all years. (3) A DAC tax charge of 1.25% of gross premiums in all years.
Refer to Prospectus
Page 7 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-87
<PAGE> 195
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL FOOTNOTE
...CONTINUATION
<TABLE>
<S> <C>
Insured Name, Male, Non-Smoker, Age 45 Tax Bracket %: 0.00% (ee)/0.00% (er)
Initial Target Death Benefit: $500,000 Loan Interest %: 4.6 in arrears
Initial Specified Amount: $500,000 Gross Rate Basis %: 12.0% (11.3% Initial NET)
Annual Premium: $5,000.00 Cost of Money %: 0.00%
Initial Death Benefit Option: Option I Definition of Life Insurance: CVAT
Underwriting Class: Guaranteed Issue
</TABLE>
Those columns assuming guaranteed charges use the current monthly mortality
charges and current charges for rider benefits if any, for the first year as
well as the assumed hypothetical gross annual investment return indicated.
Thereafter these columns use guaranteed charges for monthly mortality charges,
rider benefits if any, 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 are declared by MONY Life Insurance Company of America,
are guaranteed for the first policy year, and apply to policies issued as of the
preparation date shown. After the first policy year, current charges are not
guaranteed, and may be changed at the discretion of MONY Life Insurance Company
of America.
The difference between the account value and the value upon surrender is any
outstanding debt plus any applicable sales charge refund. A partial surrender,
the surrender amount and the partial surrender fee ($25.00 or 2% of the amount
surrendered, if less) could be deducted from the benefit payable at death, and
will be deducted from the account value and the value upon surrender.
A policy loan will have a permanent effect on benefits under this policy.
Loan interest at an annual rate of 4.6% will be charged in arrears. Amounts
borrowed will earn interest at an annual rate of 4%. After the 10th policy
anniversary the annual interest rate applicable to the loan account will be
0.30% higher than the rate applicable to policies in the same type which have
not reached their 10th policy anniversary. This increase is anticipated but not
guaranteed. This increase is based on current expectations as to mortality,
investment earnings, persistency and expenses and is not guaranteed. Adverse tax
consequences could occur if a policy subject to loans is surrendered or
permitted to lapse. In addition, the loan interest may not be deductible. Please
consult your tax advisor for advice surrounding the deductibility of loan
interest and other tax consequences.
An administrative charge is deducted each month. During the first 36 policy
months the charge is $10.50 per month, thereafter, the charge is $7.50 per
month.
Refer to Prospectus
Page 8 of 8 Page Illustration. This Illustration is not valid without all 8
pages.
G-88
<PAGE> 196
PART II
(INFORMATION NOT REQUIRED IN PROSPECTUS)
<PAGE> 197
PART II
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the Registrant hereby undertakes to file with the
Securities and Exchange Commission such supplementary and periodic information,
documents, and Reports as may be prescribed by any rule or regulation of the
Commission heretofore, or hereafter duly adopted pursuant to authority conferred
in that Section.
RULE 484 UNDERTAKING
The By-Laws of MONY Life Insurance Company of America ("MONY America")
provide, in Article VI as follows:
SECTION 1. The Corporation shall indemnify any existing or former
director, officer, employee or agent of the Corporation against all
expenses incurred by them and each of them which may arise or be incurred,
rendered or levied in any legal action brought or threatened against any of
them for or on account of any action or omission alleged to have been
committed while acting within the scope of employment as director, officer,
employee or agent of the Corporation, whether or not any action is or has
been filed against them and whether or not any settlement or compromise is
approved by a court, all subject and pursuant to the provisions of the
Articles of Incorporation of this Corporation.
SECTION 2. The indemnification provided in this By-Law shall not be
deemed exclusive of any other rights to which those seeking indemnification
may be entitled under By-Law, agreement, vote of stockholders or
disinterested directors or otherwise, both as to action in his official
capacity and as to action in another capacity while holding office, and
shall continue as to a person who has ceased to be a director, officer,
employee or agent and shall inure to the benefit of the heirs, executors
and administrators of such a person.
Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification for such
liabilities (other than the payment by the Registrant of expense incurred or
paid by a director, officer, or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant, will (unless in the opinion of its counsel the
matter has been settled by controlling precedent) submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
REPRESENTATIONS RELATING TO SECTION 26
OF THE INVESTMENT COMPANY ACT OF 1940
Registrant and MONY Life Insurance Company of America represent that the
fees and charges deducted under the contract, in the aggregate, are reasonable
in relation to the services rendered, the expenses expected to be incurred, and
the risks assumed by MONY Life Insurance Company of America.
II-1
<PAGE> 198
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THE REGISTRANT,
MONY LIFE INSURANCE COMPANY OF AMERICA, HAS DULY CAUSED THIS POST-EFFECTIVE
AMENDMENT NO. 5 TO THE REGISTRATION STATEMENT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED, THEREUNTO DULY AUTHORIZED, IN THE CITY OF NEW YORK AND THE STATE OF
NEW YORK, ON THIS 2ND DAY OF MARCH, 1998.
MONY America Variable Account L of
MONY LIFE INSURANCE COMPANY OF AMERICA
By: /s/ MICHAEL I. ROTH
-----------------------------------------
MICHAEL I. ROTH, DIRECTOR, CHAIRMAN OF
THE BOARD AND CHIEF EXECUTIVE OFFICER
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THIS
POST-EFFECTIVE AMENDMENT NO. 5 TO THE REGISTRATION STATEMENT HAS BEEN DULY
SIGNED BELOW BY THE FOLLOWING PERSONS IN THE CAPACITIES AND ON THE DATE
INDICATED.
<TABLE>
<CAPTION>
SIGNATURE DATE
--------- ----
<S> <C> <C>
/s/ MICHAEL I. ROTH Director, Chairman of the Board
- - ------------------------------------------------ and Chief Executive Officer
MICHAEL I. ROTH
/s/ SAMUEL J. FOTI Director, President and
- - ------------------------------------------------ Chief Operating Officer
SAMUEL J. FOTI
/s/ RICHARD DADDARIO Director, Vice President
- - ------------------------------------------------ and Controller
RICHARD DADDARIO (Principal Financial and
Accounting Officer)
/s/ KENNETH M. LEVINE Director and March 2, 1998
- - ------------------------------------------------ Executive Vice President
KENNETH M. LEVINE
/s/ RICHARD E. CONNORS Director
- - ------------------------------------------------
RICHARD E. CONNORS
/s/ STEPHEN J. HALL Director
- - ------------------------------------------------
STEPHEN J. HALL
</TABLE>
II-2
<PAGE> 199
EXHIBIT INDEX
<TABLE>
<C> <S>
7. Consent of Coopers & Lybrand L.L.P. as to financial
statements of MONY America Variable Account L. and MONY Life
Insurance Company of America.
27 Financial Date Schedule
</TABLE>
<PAGE> 1
EXHIBIT 7
(Coopers & Lybrand Letterhead)
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the inclusion in this Post-Effective Amendment No. 5 to the
Registration Statement of MONY America Variable Account L on Form S-6 (File No.
333-06071) of our reports dated February 11, 1998 and February 27, 1998 on our
audits of the financial statements of MONY America Variable Account L and MONY
Life Insurance Company of America, respectively.
We also consent to the references to our Firm under the captions
"Independent Accountants" and "Financial Statements" in the Prospectus.
Coopers & Lybrand L.L.P.
New York, New York
March 2, 1998
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MONY
LIFE INSURANCE COMPANY ANNUAL STATEMENT WHICH IS PREPARED IN CONFORMITY WITH
STATUTORY ACCOUNTING PRINCIPLES.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<DEBT-HELD-FOR-SALE> 0
<DEBT-CARRYING-VALUE> 1,074,724,142
<DEBT-MARKET-VALUE> 1,081,902,689
<EQUITIES> 981,115
<MORTGAGE> 134,828,204
<REAL-ESTATE> 22,626,801
<TOTAL-INVEST> 1,286,053,106
<CASH> 45,955,728
<RECOVER-REINSURE> 248,881
<DEFERRED-ACQUISITION> 0
<TOTAL-ASSETS> 4,961,369,195
<POLICY-LOSSES> 581,230,946
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 8,331,025
<POLICY-HOLDER-FUNDS> 683,944,239
<NOTES-PAYABLE> 0
0
0
<COMMON> 2,500,000
<OTHER-SE> 130,650,663
<TOTAL-LIABILITY-AND-EQUITY> 4,961,369,195
799,035,036
<INVESTMENT-INCOME> 99,006,242
<INVESTMENT-GAINS> (3,544,265)
<OTHER-INCOME> 332,438
<BENEFITS> 761,994,174
<UNDERWRITING-AMORTIZATION> 0
<UNDERWRITING-OTHER> 105,726,347
<INCOME-PRETAX> 27,108,931
<INCOME-TAX> 17,389,702
<INCOME-CONTINUING> 9,719,228
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,719,228
<EPS-PRIMARY> 3.89
<EPS-DILUTED> 0
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
