<PAGE> 1
REGISTRATION NO. 333-56969
REGISTRATION NO. 811-4235
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- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-6
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933 [X]
OF SECURITIES OF UNIT
INVESTMENT TRUSTS REGISTERED ON FORM N-8B-2
PRE-EFFECTIVE AMENDMENT NO.
POST-EFFECTIVE AMENDMENT NO. 1
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)
FREDERICK C. TEDESCHI, ESQ.
VICE PRESIDENT AND CHIEF COUNSEL-OPERATIONS
MONY LIFE INSURANCE COMPANY
1740 BROADWAY
NEW YORK, NEW YORK 10019
(Name and Address of Agent for Service)
It is proposed that this filing become effective on May 1, 1999 pursuant to
Rule 485(b).
- ---------------
STATEMENT PURSUANT TO RULE 24f-2
The Registrant registers an indefinite number or amount of its variable
life insurance contracts under the Securities Act of 1933 pursuant to Rule 24f-2
under the Investment Company Act of 1940. The Rule 24f-2 notice for Registrant's
fiscal year ending December 31, 1998 was filed on March 29, 1999.
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<PAGE> 2
CROSS REFERENCE TO ITEMS REQUIRED BY FORM N-8B-2
<TABLE>
<CAPTION>
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
- ----------- ---------------------
<S> <C>
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 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
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
- ----------- ---------------------
<S> <C>
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
35.......................................... MORE ABOUT THE POLICY
36.......................................... Not applicable
37.......................................... Not applicable
38.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE 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>
2
<PAGE> 4
PART I
(INFORMATION REQUIRED IN A PROSPECTUS)
<PAGE> 5
PROSPECTUS
Dated May 1, 1999
Variable Universal Life Insurance Policy
MONY Life Insurance Company of America issues a variable universal life
insurance policy described in this Prospectus. Among the policy's many terms
are:
Allocation of Premiums and Cash Values:
- - You can tell us what to do with your premium payments. You can also tell us
what to do with the cash values your policy may create for you resulting from
those premium payments.
- You can tell us to place them into a separate account. That separate
account is called MONY America Variable Account L.
- If you do, you can also tell us to place your premium payments and
cash values into any or all of 14 different subaccounts. Each of these
subaccounts seeks to achieve a different investment objective. If you
tell us to place your premium payments and cash values into one or
more subaccounts of the separate account, you bear the risk that the
investment objectives will not be met. That risk includes your not
earning any money on your premium payments and cash values and also
that your premium payments and cash values may lose some or all of
their value.
- You can also tell us to place some or all of your premium payments and
cash values into our account. Our account is called the Guaranteed
Interest Account. If you do, we will guarantee that those premium
payments and cash values will not lose any value. We also guarantee that
we will pay not less than 4.5% interest annually. We may pay more than
4.5% if we choose. Premium payments and cash values you place into the
Guaranteed Interest Account become part of our assets.
Death Benefit:
- - We will pay a death benefit if you die before you reach age 100 while the
policy is in effect. That death benefit will never be less than the amount
specified in the policy. It may be greater than the amount specified if the
policy's cash values increase.
Living Benefits:
- - You may ask for some or all of the policy's cash value at any time. If you do,
we may deduct a surrender charge. You may borrow up to 90% of the policy's
cash value from us at any time. You will have to pay interest to us on the
amount borrowed.
Charges and Fees:
- - The policy allows us to deduct certain charges from the cash value. These
charges are detailed in the policy and in this prospectus.
THESE ARE ONLY SOME OF THE TERMS OF THE POLICY.
PLEASE READ THE PROSPECTUS CAREFULLY FOR MORE COMPLETE DETAILS OF THE POLICY.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or passed upon the
adequacy or accuracy of the prospectus. Any representation to the contrary is a
criminal offense. This prospectus comes with prospectuses for the MONY Series
Fund, Inc. and Enterprise Accumulation Trust. You should read these prospectuses
carefully and keep them for future reference.
MONY America Variable Account L
MONY Life Insurance Company of America
1740 Broadway, New York, New York 10019
1-800-487-6669
<PAGE> 6
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
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<S> <C>
Summary of the Policy....................................... 1
Important Policy Terms.................................... 1
Purpose of the Policy..................................... 1
Policy Premium Payments and Values........................ 1
Charges and Deductions.................................... 2
The Death Benefit......................................... 3
Premium Features.......................................... 4
MONY America Variable Account L........................... 4
Allocation Options........................................ 4
Transfer of Fund Value.................................... 5
Policy Loans.............................................. 5
Full Surrender............................................ 5
Partial Surrender......................................... 5
Right to Return Policy Period............................. 5
Grace Period and Lapse.................................... 5
Tax Treatment of Increases in Fund Value.................. 6
Tax Treatment of Death Benefit............................ 6
Riders.................................................... 6
Contacting the Company.................................... 7
Understanding the Policy.................................. 7
Detailed Information about the Company and MONY America
Variable Account L........................................ 8
MONY Life Insurance Company of America.................... 8
Year 2000 Issue........................................... 8
MONY America Variable Account L........................... 10
The Funds................................................... 13
MONY Series Fund, Inc. ................................... 13
Enterprise Accumulation Trust............................. 14
Purchase of Portfolio Shares by MONY America Variable
Account L.............................................. 16
Detailed Information About The Policy....................... 16
Application for a Policy.................................. 17
Right to Examine a Policy -- Right to Return Policy
Period................................................. 18
Premiums.................................................. 18
Guaranteed Death Benefit.................................. 19
Allocation of Net Premiums................................ 21
Death Benefits under the Policy........................... 21
Changes in Specified Amount............................... 23
Other Optional Insurance Benefits......................... 25
Benefits at Maturity and Maturity Extension Rider......... 27
Policy Values............................................. 27
Determination of Fund Value............................... 27
Calculating Unit Values for Each Subaccount............... 29
Transfer of Fund Value.................................... 30
Right to Exchange Policy.................................. 31
Policy Loans.............................................. 31
Full Surrender............................................ 32
Partial Surrender......................................... 32
</TABLE>
i
<PAGE> 7
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Grace Period and Lapse.................................... 33
Charges and Deductions...................................... 36
Deductions from Premiums.................................. 37
Transaction and Other Charges............................. 40
Fees and Expenses of the Funds............................ 40
Guarantee of Certain Charges.............................. 42
Other Information........................................... 42
Federal Income Tax Considerations......................... 42
Charge for Company Income Taxes........................... 46
Voting of Fund Shares..................................... 46
Disregard of Voting Instructions.......................... 47
Report to Policy Owners................................... 47
Substitution of Investments and Right to Change
Operations............................................. 47
Changes to Comply with Law................................ 48
Performance Information..................................... 48
The Guaranteed Interest Account............................. 49
General Description....................................... 49
Death Benefit............................................. 50
Policy Charges............................................ 50
Transfers................................................. 50
Surrenders and Policy Loans............................... 51
More About the Policy....................................... 51
Ownership................................................. 51
Beneficiary............................................... 51
Notification and Claims Procedures........................ 51
Payments.................................................. 52
Payment Plan/Settlement Provisions........................ 52
Payment in Case of Suicide................................ 52
Assignment................................................ 52
Errors on the Application................................. 53
Incontestability.......................................... 53
Policy Illustrations...................................... 53
Distribution of the Policy................................ 53
More About the Company...................................... 54
Management................................................ 54
State Regulation.......................................... 56
Telephone Transfer Privileges............................. 56
Legal Proceedings......................................... 56
Legal Matters............................................. 56
Registration Statement.................................... 57
Independent Accountants................................... 57
Financial Statements...................................... 57
</TABLE>
ii
<PAGE> 8
SUMMARY OF THE POLICY
This summary provides you with a brief overview of the more important
aspects of your policy. It is not intended to be complete. More detailed
information is contained in this prospectus on the pages following this Summary
and in your policy. This summary and the entire prospectus will describe the
part of the policy involving MONY America Variable Account L. The prospectus
also briefly will describe the Guaranteed Interest Account on page . The
Guaranteed Interest Account is also described in your policy. BEFORE PURCHASING
A POLICY, WE URGE YOU TO READ THE ENTIRE PROSPECTUS CAREFULLY.
IMPORTANT POLICY TERMS
We are providing you with definitions for the following terms to make the
description of the policy provisions easier for you to understand.
Outstanding Debt -- The unpaid balance of any loan which you request on the
policy. The unpaid balance includes accrued loan interest which is due and has
not been paid by you.
Loan Account -- An account to which amounts are transferred from the
subaccounts of MONY America Variable Account L and the Guaranteed Interest
Account as collateral for any loan you request. We will credit interest to the
Loan Account at a rate not less than 4.5%. The Loan Account is part of the
Company's General Account.
Fund Value -- The sum of the amounts under the policy held in each
subaccount of MONY America Variable Account L the Guaranteed Interest Account,
and the Loan Account.
Cash Value -- The Fund Value of the policy less any surrender charge and
any Outstanding Debt.
Minimum Monthly Premium -- The amount the Company determines is necessary
to keep the policy in effect for the first three policy years. In certain cases,
this also applies to the first three policy years following an increase in the
Specified Amount.
Guaranteed Interest Account -- This account is part of the general account
of MONY Life Insurance Company of America (the "Company"). You may allocate all
or a part of your net premium payments to this account. This account will credit
you with a fixed interest rate (which will not be less than 4.5%) declared by
the Company. (For more detailed information, see "The Guaranteed Interest
Account," page .)
Specified Amount -- The minimum death benefit for as long as the policy
remains in effect.
Business Day -- Each day that the New York Stock Exchange is open for
trading. It is also any other day on which there is sufficient trading in the
securities owned by a portfolio of the Funds to materially affect the unit value
of the corresponding subaccount of MONY America Variable Account L.
PURPOSE OF THE POLICY
The policy offers insurance protection on the life of the insured. If the
insured is alive on the anniversary of the policy date when the insured is age
100, a maturity benefit will be paid instead of a death benefit The policy
provides a death benefit equal to (a) its Specified Amount, or (b) its Specified
Amount plus accumulated of Cash Value. The policy also provides surrender and
loan privileges. The policy offers a choice of investment alternatives and an
opportunity for the policy's Fund Value and its death benefit, to grow based on
investment results. In addition, you, as owner of the policy, choose the amount
and frequency of premium payments, within certain limits.
POLICY PREMIUM PAYMENTS AND VALUES
The premium payments you make for the policy are received by the Company.
From those premium payments, the Company makes deductions to pay premium and
other taxes imposed by state and local governments. The Company makes deductions
to cover the cost to the Company of a deferred acquisition tax imposed by the
United States government. The Company will also deduct a Sales Charge to cover
the
1
<PAGE> 9
costs of making the policies available to the public. After deduction of these
charges, the amount remaining is called the net premium payment.
You may allocate net premium payments among the various subaccounts of MONY
America Variable Account L and/or the Guaranteed Interest Account. As owner of
the policy, you may give the right to allocate net premium payments to someone
else.
The net premium payments you allocate among the various subaccounts of MONY
America Variable Account L may increase or decrease in value on any day
depending on the investment experience of the subaccounts you select. Your death
benefit may or may not increase or decrease depending on several factors
including the death benefit option you choose. The death benefit will never
decrease below the Specified Amount of your policy.
Net premium payments you allocate to the Guaranteed Interest Account will
be credited with interest at a rate determined by the Company. That rate will
not be less than 4.5%.
The value of the net premium payments you allocate to MONY America Variable
Account L and to the Guaranteed Interest Account are called the Fund Value.
There is no guarantee that the policy's Fund Value and death benefit will
increase. You bear the risk that the net premiums and Fund Value allocated to
MONY America Variable Account L may be worth more or less while the policy
remains in effect.
If you cancel the policy and return it to the Company during the Right to
Return Period, your premium payments will be returned by the Company. After the
Right to Return Period, you may cancel your policy by surrendering it to the
Company. The Company will pay you the Fund Value minus a charge if you cancel
your policy during the first fifteen years since the policy was issued or the
Specified Amount increased. The Company will also deduct any amount you have
borrowed from it from the amount it will pay you. The Fund Value minus Surrender
Charges and minus the amount of debt outstanding from loans you have received is
called the Cash Value of the policy.
Charges and fees such as the cost of insurance, administrative charges, and
mortality and expense risk charges are imposed by the policy. These charges and
fees are deducted by the Company from the policy's Cash Value and are described
in further detail below.
The policy remains in effect until the earliest of:
- A grace period expires without the payment of sufficient additional
premium to cover policy charges or repayment of the Outstanding Debt.
- Age 100.
- Death of the insured.
- Full surrender of the policy.
Generally, the policy remains in effect only as long as the Cash Value is
sufficient to pay all monthly deductions. However, during the first three years
the policy is in effect, the Company will determine an amount which if paid
during those first three policy years will keep the policy and all rider
coverages in effect for the first three policy years even if the Cash Value of
the policy is zero. This amount is called the Minimum Monthly Premium. If you
increase the Specified Amount during the first three policy years, you must pay
the Minimum Monthly Premium for three more years after the increase. A
Guaranteed Death Benefit Rider is also available at the time you purchase the
policy. It will extend the time during which the Specified Amount of the policy
and most riders may remain in effect The Guaranteed Death Benefit Rider requires
the payment of an agreed upon amount of premiums and is discussed below.
CHARGES AND DEDUCTIONS
The policy provides for the deduction of the various charges, costs, and
expenses from the Fund Value of the policy. These deductions are summarized in
the table below. Additional details can be found on pages - .
2
<PAGE> 10
- --------------------------------------------------------------------------------
DEDUCTIONS FROM PREMIUMS
<TABLE>
<CAPTION>
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
Sales Charge -- Varies based on Specified Specified Amounts less than $500,000 -- 4%
Amount plus Term Life Term Specified Amounts of $500,000 or more -- 3%
Rider amount in effect. It
is a % of Premium paid.
- -----------------------------------------------------------------------------------------------
Tax Charge State and local -- 2.25%
Federal -- 1.5%
</TABLE>
- --------------------------------------------------------------------------------
DAILY DEDUCTION FROM MONY AMERICA VARIABLE ACCOUNT L
<TABLE>
<S> <C> <C>
- ----------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge -- Maximum .35% of subaccount value (0.000959% daily)
Annual Rate
</TABLE>
- --------------------------------------------------------------------------------
DEDUCTIONS FROM FUND VALUE
<TABLE>
<S> <C> <C>
- ----------------------------------------------------------------------------------------------
Cost of Insurance Charge Current cost of insurance rate x net amount
at risk at the beginning of the policy
month
- ----------------------------------------------------------------------------------------------
Administrative Charge -- monthly $5.00
- ----------------------------------------------------------------------------------------------
Monthly per $1,000 Specified Amount Charge See Appendix B. This charge applies for the
Based on issue age, gender and smoking first 15 policy years (or for 15 years from
Status. the date of any increase in Specified
Amount)
- ----------------------------------------------------------------------------------------------
Guaranteed Death Benefit Charge $0.01 per $1,000 of Specified Amount and
Monthly Charge for Death Benefit Rider certain Rider amounts. Please note that the
Rider requires that premiums on the policy
itself be paid in order to remain in
effect.
- ----------------------------------------------------------------------------------------------
Optional Insurance Benefits Charge As applicable.
Monthly Deduction for any other Optional
Insurance Benefits added by rider.
- ----------------------------------------------------------------------------------------------
Transaction and Other Charges
-Partial Surrender Fee $10
-Transfer of Fund Value $25
(at Company's Option)
- ----------------------------------------------------------------------------------------------
Surrender Charge See discussion of Surrender Charge for
Grades from 80% to 0 over 15 years based on grading schedule.
a schedule. Factors per $1,000 of Specified
Amount vary based on issue age, gender, and
underwriting class.
- ----------------------------------------------------------------------------------------------
</TABLE>
THE DEATH BENEFIT
The minimum initial Specified Amount is $50,000. You may elect one of two
options to compute the amount of death benefit payable under the policy. Your
selection may increase the death benefit.
Option 1 -- The death benefit equals the greater of:
(a) The Specified Amount, or
(b) Fund Value multiplied by a death benefit percentage required by
the federal tax law definition of life insurance.
3
<PAGE> 11
If you choose Option 1, favorable investment performance will reduce
the cost you pay for the death benefit. This reduction will decrease the
deduction from Fund Value and
Option 2 -- The death benefit equals the greater of:
(a) The Specified Amount of the policy, plus the Fund Value, or
(b) The Fund Value multiplied by a death benefit percentage required
by the federal tax law definition of life insurance.
If you choose Option 2, favorable investment performance will increase
the Fund Value of the Policy which in turn increases insurance coverage.
The Fund Value used in these calculations is the Fund Value as of the date of
the insured's death.
You may change the death benefit option and increase or decrease the
Specified Amount, subject to certain conditions. See "Death Benefits Under the
Policy," page .
When you apply for insurance, you can purchase the Guaranteed Death Benefit
Rider. This rider provides a guarantee that the Specified Amount under the
policy and most rider coverages will remain in effect until the later of (a) the
insured's age 70, or (b) ten years from the date of the policy, regardless of
the policy's Cash Value. See "Guaranteed Death Benefit Rider," page .
PREMIUM FEATURES
You must pay premiums equal to at least the amount necessary to keep the
policy in effect for the first three policy years. After that, subject to
certain limitations, you may choose the amount and frequency of premium payments
as your financial situation and needs change.
When you apply for a policy, you determine the level amount you intend to
pay at fixed intervals over a specified period of time. You elect to receive a
premium notice on an annual, semiannual, or quarterly basis. However, you may
choose to skip or stop making premium payments, your policy continues in effect
until the Cash Value can no longer cover (1) the monthly deductions from the
Fund Value for your policy, and (2) any optional insurance benefits added by
rider. You may pay premiums under the electronic funds transfer program. Under
this program, you authorize the Company to withdraw the amount you determine
from your checking account each month.
The amount, frequency and period of time over which you pay premiums may
affect whether or not the policy will be classified as a modified endowment
contract. You will find more information on the tax treatment of life insurance
contracts, including modified endowment contracts under "Federal Income Tax
Considerations," page .
The payment of premiums you specified on the application will not guarantee
that your policy will remain in effect. See "Grace Period and Lapse," page .
If any premium payment would result in an immediate increase in the net amount
at risk, the Company may, (1) reject a part of the premium payment, or (2) limit
the premium payment, unless you provide satisfactory evidence of insurability.
MONY AMERICA VARIABLE ACCOUNT L
MONY America Variable Account L is a separate investment account whose
assets are owned by the Company. See "MONY America Variable Account L" on page
.
ALLOCATION OPTIONS
You may allocate premium payments and Fund Values among the various
subaccounts of MONY America Variable Account L. Each of the subaccounts uses
premium payments and Fund Values to purchase shares of a designated portfolio of
the MONY Series Fund or the Enterprise Accumulation Trust. The subaccounts
available to you and the investment objectives of each available subaccount are
described in detail beginning on page .
4
<PAGE> 12
TRANSFER OF FUND VALUE
You may transfer Fund Value among the subaccounts. Subject to certain
limitations, you may also transfer between the subaccounts and the Guaranteed
Interest Account. Transfers may be made by telephone if the proper form has been
completed, signed and filed at the Company's Syracuse Operations Center. See
Transfer of Fund Value," page .
POLICY LOANS
You may borrow up to 90% of your policy's Cash Value from the Company. Your
policy will be the only security required for a loan. See "Policy Loans," page
.
The amount of Outstanding Debt is subtracted from your death benefit. Your
Outstanding Debt is repaid from the proceeds of a full surrender. See "Full
Surrender," page . Outstanding Debt may also affect the continuation of the
policy. See "Grace Period and Lapse," page . The Company charges interest on
policy loans. If you do not pay the interest when due, the amount due will be
borrowed from the policy's Cash Value and will become part of the Outstanding
Debt.
FULL SURRENDER
You can surrender the policy during the insured's lifetime and receive its
Cash Value, which equals (a) Fund Value, minus (b) any surrender charge, and
minus (c) any Outstanding Debt. See "Full Surrender," page .
PARTIAL SURRENDER
You may request a partial surrender if your Cash Value after the deduction
of the requested surrender amount and any fees is greater than $500. If the
requested amount exceeds the amount available, we will reject your request and
return it to you. A partial surrender will decrease the Specified Amount. See
"Partial Surrender," at page .
Partial surrenders must be for at least $500. A partial surrender fee of
$10 will be assessed against the remaining Fund Value. There is no surrender
charge assessed on a partial surrender.
RIGHT TO RETURN POLICY PERIOD
You have the right to examine the policy when you receive it. You may
return the policy for any reason and obtain a full refund of the premium you
paid if you return your policy within 10 days (or longer in some states) after
you receive it. You may also return the policy within 45 days after the date you
sign the application for the policy. During the Right to Return Policy Period,
net premiums will be kept in the general account of the Company and will earn
interest at an annual rate of 4.5%. See "Right to Examine a Policy -- Right to
Return Policy Period", page .
GRACE PERIOD AND LAPSE
Your policy will remain in effect as long as:
(1) it has a Cash Value greater than zero;
(2) you have purchased the Guaranteed Death Benefit Rider, and you
have met all the requirements of that Rider; or
(3) during the first three policy years if on each monthly anniversary
the sum of the premiums paid minus the sum of partial surrenders (excluding
related fees) and any Outstanding Debt, is greater than or equal to the
Minimum Monthly Premium times the number of months your policy has been in
effect. If you increase the Specified Amount during the first three policy
years, you must continue paying the Minimum Monthly Premium for an
additional three policy years from the date of the increase.
5
<PAGE> 13
If the policy is about to terminate (or Lapse), we will give you notice
that you must pay additional premiums. That notice will tell you what the
minimum amount you must pay is if the policy is to remain in effect and the date
by which we must receive that amount (this period is called the "grace period").
In addition, we calculate each month whether you have paid the premiums
required to be paid by your Guaranteed Death Benefit Rider. See "Guaranteed
Death Benefits," page . If your policy does not meet the test on that date, a
notice will be sent to you giving you 61 days from its date to make additional
payments to the Rider. See "Grace Period and Lapse", page .
You must understand that after the first three policy years, the policy can
lapse even if the scheduled premium payments are made unless you have made all
the premium payments required by the Guaranteed Death Benefit Rider.
TAX TREATMENT OF INCREASES IN FUND VALUE
The federal income tax laws generally tie the taxation of Fund Values to
your receipt of those Fund Values. This policy is currently subject to the same
federal income tax treatment as fixed life insurance. Certain policy loans may
be taxable. You can find information on the tax treatment of the policy under
"Federal Income Tax Consideration," on page .
TAX TREATMENT OF DEATH BENEFIT
Generally, the death benefit will be fully excludable from the gross income
of the beneficiary under the Internal Revenue Code. Thus the death benefit
received by the beneficiary at the death of the insured will not be subject to
federal income taxes when received by the beneficiary. Also a death benefit paid
by this policy is currently subject to federal income tax treatment as a death
benefit paid by a fixed life insurance policy. See "Federal Income Tax
Considerations," page .
RIDERS
Additional optional insurance benefits may be added to the policy by an
addendum called a rider. There are nine riders available with this policy:
- Guaranteed Death Benefit Rider
- Spouse's Yearly Renewable Term Rider
- Children's Term Life Insurance Rider
- Accidental Death and Dismemberment Rider
- Purchase Option Rider
- Waiver of Monthly Deduction Rider
- Waiver of Specified Premiums Rider
- Term Life Term Rider
- Maturity Extension Rider
6
<PAGE> 14
CONTACTING THE COMPANY
All written requests, notices, and forms required by the policies, and any
questions or inquiries should be directed to the Company's Operations Center at
1 MONY Plaza, Syracuse, New York 13202.
UNDERSTANDING THE POLICY
The following chart may help you to understand how the policy works.
[HOW THE POLICY WORKS FLOW CHART]
7
<PAGE> 15
DETAILED INFORMATION ABOUT THE COMPANY
AND MONY AMERICA VARIABLE ACCOUNT L
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY Life Insurance Company of America issues the policy. In this
prospectus MONY Life Insurance Company of America is called the "Company". The
Company is a stock life insurance company organized in the State of Arizona. The
Company is the corporate successor of VICO Credit Life Insurance Company
incorporated in Arizona on March 6, 1969. The Company is currently licensed to
sell life insurance and annuities in 49 states (not including New York), the
District of Columbia, Puerto Rico, and the Virgin Islands.
The Company is a wholly owned subsidiary of MONY Life Insurance Company
("MONY"). MONY was organized as a mutual life insurance company under the laws
of the State of New York in 1842 under the name The Mutual Life Insurance
Company of New York. In 1998, The Mutual Life Insurance Company of New York
converted to a stock company through demutualization and was renamed MONY Life
Insurance Company. The demutualization did not have any material effect on the
Company, MONY America Variable Account L, or the Contract. The principal offices
of both MONY and the Company are located at 1740 Broadway, New York, New York
10019. The Company's financial statements may be found in the Statement of
Additional Information.
At January 1, 1999, the rating assigned to the Company by A.M. Best
Company, Inc., an independent insurance company rating organization, was A-
(Excellent). This rating is based upon an analysis of financial condition and
operating performance through the end of 1996. 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 intends to administer the policies itself.
MONY Securities Corporation, a wholly owned subsidiary of the Company, 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 a year. By use of a two-digit
field, the industry avoided the greater cost of additional mainframe capacity.
As a result, any of the Company's computer systems that have time-sensitive
software may recognize a date using "00" as the year 1900 rather than the year
2000. This could result in a major system failure or in miscalculations.
State of Readiness
The Company has a service agreement with MONY whereby MONY provides
services and equipment including computer and information systems to the Company
to conduct its business.
In 1996, the Company initiated in conjunction with MONY and its affiliates
(hereafter collectively referred to as "MONY and its subsidiaries") a formal
Year 2000 Project to resolve the Year 2000 issue. The scope of the Project was
identified, and funding was established. In early 1997, MONY and its
subsidiaries retained Command Systems, Inc., and Keane, Inc. to assist the
Company in bringing its computer and information systems into Year 2000
compliance. MONY and its subsidiaries' overall goal for information technology
("IT") related items is to have business-critical hardware and software
compliant by December 31, 1998, with additional testing and enterprise
end-to-end testing occurring in 1999. MONY and its subsidiaries has also
retained Technology Resource Solutions to assist in the evaluation of Year 2000
issues affecting its non-IT systems in facilities and equipment which may
contain date logic in embedded chips. MONY's overall goal is to have these
non-IT systems compliant by mid-1999.
8
<PAGE> 16
The scope of the Project includes:
- ensuring the compliance of all applications, operating systems and
hardware on mainframe, PC and LAN platforms;
- ensuring the compliance of voice and data network software and hardware;
addressing issues related to non-IT systems in buildings, facilities and
equipment which may contain date logic in embedded chips; and
- addressing the compliance of key vendors and other third parties.
The phases of the Project are:
1 inventorying Year 2000 items and assigning priorities; assessing the Year
2000 compliance of items;
2 remediating or replacing items that are determined not to be Year 2000
compliant;
3 testing items for Year 2000 compliance; and
4 designing and implementing Year 2000 contingency and business continuity
plans.
To determine that all IT systems (whether internally developed or
purchased) are Year 2000 compliant, each system is tested using a standard
testing methodology which includes unit testing, baseline testing, and future
date testing. Future date testing includes critical dates near the end of 1999
and into the year 2000, including leap year testing.
The inventory and assessment phases of the Project were completed prior to
mid 1998. At December 31, 1998, all of MONY and its subsidiaries' application
systems had been remediated, and current date tested. In addition, approximately
94% of MONY and its subsidiaries' applications had been future date tested, with
future date testing for the remaining 6% scheduled for completion by mid-1999.
New implemented applications and new releases of software packages will be
tested in 1999 as part of the implementation process. Approximately 87% of the
operating systems, systems software, and hardware for mainframe, PC and LAN
platforms were deemed compliant based on information supplied by vendors
verbally, in writing, or on the vendor's Internet site. Of the IT business
critical items, essentially all were compliant and tested by December 31, 1998.
The remaining items will be resolved and tested in the first quarter of 1999.
Approximately 50% of non-IT business critical items had been remediated as of
December 31, 1998. Ongoing testing for Year 2000 compliance will continue in
1999, and is expected to be completed by mid-1999.
As part of the Project, significant service and information providers,
external vendors, suppliers, and other third parties that are believed to be
critical to business operations after January 1, 2000, have been identified and
steps are being undertaken in an attempt to reasonably ascertain their stage of
Year 2000 readiness through questionnaires, interviews, on-site visits, and
other available means.
Costs
The estimated total cost of the Year 2000 Project for the Company is
approximately $2.0 million. The total amount expended on the Project through
December 31, 1998 was $1.8 million. The estimated future cost of completing the
Year 2000 Project is estimated to be approximately $0.2 million. These amounts
include costs associated with the current development of contingency plans.
Risks
The Company believes that completed and planned modifications and
conversions of its internal systems and equipment will allow it to be Year 2000
compliant in a timely manner. There can be no assurance, however, that the
Company's internal systems or equipment or those third parties on which the
Company relies will be Year 2000 compliant in a timely manner or that the
Company's or third parties' contingency plans will mitigate the effects of any
noncompliance. The failure of the systems or equipment of the Company or third
parties (which the Company believes is the most reasonable likely worst case
scenario) could affect the distribution and sale of life insurance, annuity and
investment products and could have a material effect on the Company's financial
position and results of operations.
9
<PAGE> 17
Contingency Plans
MONY and its subsidiaries has retained outside consultants to assist in the
development of Business Continuity Plans, which includes identification of third
party service providers, information systems, equipment, facilities, and other
items which are mission critical to the operation of the business. In
conjunction with this effort, the Company is developing a Year 2000 Contingency
Plan to address failures due to the Year 2000 problem of third parties and other
items, which are critical to the ongoing operation of the business. The
Contingency Plan includes the performance of alternate processing as well as
consideration for changing third party service providers, vendors, and suppliers
if necessary. The scheduled date for completion of the Contingency Plan is mid
1999. The Company believes that due to the pervasive nature of potential Year
2000 issues, the contingency planning process is an ongoing one that will
require further modifications as the Company obtains additional information
regarding the status of third party Year 2000 readiness.
MONY Series Fund and the Accumulation Trust have reviewed their investment
advisers and other suppliers of services with respect to the Year 2000 issue.
MONY Series Fund and the Accumulation Trust prospectuses, which are included in
the Prospectus Portfolio, contain the results of these reviews. See MONY Series
Fund prospectus at page . Accumulation Trust prospectus at page .
MONY AMERICA VARIABLE ACCOUNT L
MONY America Variable Account L is a separate investment account of the
Company. Presently, only premium payments and cash values of flexible premium
variable life insurance policies are permitted to be allocated to MONY America
Variable Account L. The assets in MONY America Variable Account L are kept
separate from the general account assets and other separate accounts of the
Company.
The Company owns the assets in MONY America Variable Account L. The Company
is required to keep assets in MONY America Variable Account L that equal the
total market value of the policy liabilities funded by MONY America Variable
Account L. Realized or unrealized income gains or losses of MONY America
Variable Account L are credited or charged against MONY America Variable Account
L assets without regard to the other income, gains or losses of the Company.
Reserves and other liabilities under the policies are assets of MONY America
Variable Account L. MONY America Variable Account L assets are not chargeable
with liabilities of the Company's other businesses.
Fund Values of the policy during the Right to Return Period and Fund Values
allocated to the Guaranteed Interest Account are held in the Company's general
account. The Company's general account assets are subject to the liabilities
from the businesses the Company conducts. In addition, the Company may transfer
to its general account any assets that exceed anticipated obligations of MONY
America Variable Account L. All obligations of the Company under the policy are
general corporate obligations of the Company. The Company may accumulate in MONY
America Variable Account L proceeds from various policy charges and investment
results applicable to those assets.
MONY America Variable Account L was authorized by the Board of Directors of
the Company and established under Arizona law on February 19, 1985. MONY America
Variable Account L is registered with the SEC as a unit investment trust. The
SEC does not supervise the administration or investment practices or policies of
MONY America Variable Account L.
MONY America Variable Account L is divided into subdivisions called
subaccounts. There are currently fourteen subaccounts available to you. Each
subaccount invests exclusively in shares of a designated portfolio of MONY
Series Fund, Inc. and Enterprise Accumulation Trust (collectively called 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 serve only
as the underlying investment for variable annuity and variable life insurance
contracts issued through separate accounts of the Company or other life
insurance companies. The portfolios may also be available to certain pension
accounts. The portfolios are not available directly to individual investors. In
the future, the Company may establish
10
<PAGE> 18
additional subaccounts within MONY America Variable Account L. Future
subaccounts may invest in other portfolios of the Funds or in other securities.
Not all subaccounts are available to you.
The following table lists the subaccounts of MONY America Variable Account
L that are available to you, their respective investment objectives, and which
Fund portfolio shares are purchased:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C>
THE MONEY MARKET SUBACCOUNT Maximum current income consistent with
preservation of capital and maintenance of
This subaccount purchases shares of the liquidity. Attempts to achieve objective
MONY Series Fund, Inc. Money Market by investing in money market instruments.
Portfolio.
--------------------------------------------------------------------------------------------
THE GOVERNMENT SECURITIES SUBACCOUNT Maximum current income over the
intermediate term consistent with the
This subaccount purchases shares of the preservation of capital. Attempts to
MONY Series Fund, Inc. Government achieve objective through investment in
Securities Portfolio. highly-rated debt securities, U.S.
government obligations, and money market
instruments, with a dollar weighted
average life of up to ten years at the
time of purchase.
--------------------------------------------------------------------------------------------
THE INTERMEDIATE TERM BOND SUBACCOUNT Maximize income over the intermediate term
consistent with the preservation of
This subaccount purchases shares of the capital. Seeks to achieve objective by
MONY Series Fund, Inc. Intermediate Term investing in highly rated debt securities,
Bond Portfolio. U.S. Government obligations, and money
market instruments, together having a
dollar-weighted average life of between 4
and 8 years.
--------------------------------------------------------------------------------------------
THE LONG TERM BOND SUBACCOUNT Maximize income over the longer term
consistent with preservation of capital.
This subaccount purchases shares of the Seeks to achieve objective by investing in
MONY Series Fund, Inc. Long Term Bond highly-rated debt securities, U.S.
Portfolio. Government obligations, and money market
instruments, together having a
dollar-weighted average life of more than
8 years.
--------------------------------------------------------------------------------------------
THE EQUITY INCOME SUBACCOUNT Invests in a combination of growth and
income. Seeks to achieve an above average
This subaccount purchases shares of the and consistent total return, primarily
Enterprise Accumulation Trust Equity from investments in dividend paying common
Income Portfolio. stocks.
--------------------------------------------------------------------------------------------
THE GROWTH AND INCOME SUBACCOUNT Seeks total return in excess of the total
return of the Lipper Growth and Income
This subaccount purchases shares of the Mutual Funds Average measured over anew
Enterprise Accumulation Trust Growth and period of three to five years, by
Income Portfolio. investing in a broadly diversified group
of large capitalization stocks.
--------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 19
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C>
THE GROWTH SUBACCOUNT Seeks capital appreciation, primarily from
investments in common stocks.
This subaccount purchases shares of the
Enterprise Accumulation Trust Growth
Portfolio.
--------------------------------------------------------------------------------------------
THE EQUITY SUBACCOUNT Long-term capital appreciation. Seeks to
achieve this objective by investing in a
This subaccount purchases shares of the diversified portfolio of primarily equity
Enterprise Accumulation Trust Equity securities selected on the basis of a
Portfolio. value-oriented approach to investing.
--------------------------------------------------------------------------------------------
THE CAPITAL APPRECIATION SUBACCOUNT Seeks maximum capital appreciation,
primarily through investment in common
This subaccount purchases shares of the stocks of companies that demonstrate
Enterprise Accumulation Trust Capital accelerating earnings momentum and
Appreciation Portfolio. consistently strong financial
characteristics.
--------------------------------------------------------------------------------------------
THE MANAGED SUBACCOUNT Provide growth of capital over time. Seeks
to achieve investment objective by
This subaccount purchases shares of the investing in a portfolio consisting of
Enterprise Accumulation Trust Managed common stocks, bonds and cash equivalents,
Portfolio. the percentage of which vary over time
based on the investment manager's
assessment of the relative investment
values.
--------------------------------------------------------------------------------------------
THE SMALL COMPANY GROWTH SUBACCOUNT Seeks capital appreciation by investing
primarily in common stocks of small
This subaccount purchases shares of the capitalization companies believed by the
Enterprise Accumulation Trust Small portfolio manager to have an outlook for
Company Growth Portfolio. strong earnings growth and potential for
significant capital appreciation.
--------------------------------------------------------------------------------------------
THE SMALL COMPANY VALUE SUBACCOUNT Capital appreciation. Pursues its
investment objective by investing in a
This subaccount purchases shares of the diversified portfolio of primarily equity
Enterprise Accumulation Trust Small securities of companies with market
Company Value Portfolio. capitalization of under $1 billion.
--------------------------------------------------------------------------------------------
THE INTERNATIONAL GROWTH SUBACCOUNT Capital appreciation. Pursues its
investment objective primarily through a
This subaccount purchases shares of the diversified portfolio of non-United States
Enterprise Accumulation Trust equity securities.
International Growth Portfolio.
--------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 20
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C>
THE HIGH YIELD BOND SUBACCOUNT Maximum current income. Seeks to meet its
investment objective primarily by
This subaccount purchases shares of the investing in debt securities that are
Enterprise Accumulation Trust High Yield rated Ba or lower by Moody's Investors
Bond Portfolio. Service, Inc. or BB or lower by Standard &
Poor's Corporation. These lower rated
bonds are 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 has 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.
----------------------------------------------------------------------------------------
</TABLE>
THE FUNDS
The Funds are diversified, open-end management investment companies of the
series type. The Funds are registered with the SEC under the Investment Company
Act of 1940. The SEC does not supervise the investments or investment policy of
the Funds.
MONY SERIES FUND, INC.
Only shares of four of the seven portfolios of the MONY Series Fund, Inc.
can be purchased by a subaccount available to you. Each of the portfolios has
different investment objectives and policies. The Company is a registered
investment adviser under the Investment Advisers Act of 1940. The Company, as
investment adviser, paid all expenses associated with organizing the MONY Series
Fund, Inc. when it was organized in 1985. Those expenses also included the costs
of the initial registration of its securities. The Company, as investment
adviser, currently pays the compensation of the Fund's directors, officers and
employees who are affiliated in some way with the Company. The MONY Series Fund,
Inc. pays for all other expenses including, for example, the calculation of the
net asset value of the portfolios. To carry out its duties as investment
adviser, The Company has entered into a Services Agreement with MONY to provide
personnel, equipment, facilities and other services. As the investment adviser
to the MONY Series Fund, Inc., the Company receives a daily investment advisory
fee for each portfolio (See chart below). Fees are deducted daily and paid to
the Company monthly.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT ADVISER INVESTMENT ADVISORY FEE
--------------------------------------------------------------------------------------------
<S> <C>
GOVERNMENT SECURITIES PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million,
MONY Life Insurance Company of America is and 0.30% in excess of $800 million of the
the Investment Adviser. portfolio's aggregate average daily net
assets
--------------------------------------------------------------------------------------------
LONG TERM BOND PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million,
MONY Life Insurance Company of America is and 0.30% in excess of $800 million of the
the Investment Adviser. portfolio's aggregate average daily net
assets
--------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 21
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT ADVISER INVESTMENT ADVISORY FEE
--------------------------------------------------------------------------------------------
<S> <C>
INTERMEDIATE TERM BOND PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million,
MONY Life Insurance Company of America is and 0.30% in excess of $800 million of the
the Investment Adviser. portfolio's aggregate average daily net
assets
--------------------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO Annual rate of 0.40% of the first $400
million, 0.35% of the next $400 million,
MONY Life Insurance Company of America is and 0.30% of assets in excess of $800
the Investment Adviser. million of the portfolio's aggregate
average daily net assets.
----------------------------------------------------------------------------------------
</TABLE>
ENTERPRISE ACCUMULATION TRUST
Enterprise Accumulation Trust has ten portfolios, the shares of which can
all be purchased by subaccounts available to you. Enterprise Capital Management,
Inc. ("Enterprise Capital"), a wholly owned subsidiary of MONY, is the
investment adviser of Enterprise Accumulation Trust. Enterprise Capital is
responsible for the overall management of the portfolios, including meeting the
investment objectives and policies of the portfolios. Enterprise Capital
contracts with sub-investment advisers to assist in managing the portfolios. For
information on the sub-advisers for each portfolio, see page of the
Enterprise Accumulation Trust prospectus included in this prospectus portfolio.
Enterprise Accumulation Trust pays an investment advisory fee to Enterprise
Capital which in turn pays the sub-investment advisers. Fees are deducted daily
and paid to Enterprise Capital on a monthly basis. The daily investment advisory
fees and sub-investment advisory fees for each portfolio are shown in the chart
below.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT
SUB-ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
EQUITY PORTFOLIO Annual rate of 0.80% of the Annual rate of 0.40% up to
first $400 million, 0.75% of $1 billion, and 0.30% in
OpCap Advisors is the sub- the next $400 million and excess of $1 billion of the
investment adviser. 0.70% in excess of $800 portfolio's aggregate
million of the portfolio's average daily net assets.
aggregate average daily net
assets.
- ----------------------------------------------------------------------------------------------
MANAGED PORTFOLIO Annual rate of 0.80% of the Annual rate of 0.40% up to
first $400 million, 0.75% of $1 billion, 0.30% in excess
OpCap Advisors is the sub- the next $400 million and of $1 billion, and 0.25% in
investment adviser. 0.70% in excess of $800 excess of $2 billion of the
million of the portfolio's portfolio's aggregate
aggregate average daily net average daily net assets.
assets.
- ----------------------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO Annual rate of 0.75% of the Annual rate of 0.30% of the
portfolio's aggregate first $100 million, 0.25% of
1740 Advisers, Inc. is the average daily net assets. the next $100 million, and
sub-investment adviser. 0.20% in excess of $200
million of the portfolio's
aggregate average daily net
assets.
- ----------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 22
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT
SUB-ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
GROWTH AND INCOME Annual rate of 0.75% of the Annual rate of 0.30% of the
PORTFOLIO portfolio's aggregate first $100 million, 0.25% of
average daily net assets. the next $100 million, and
Retirement Systems 0.20% in excess of $200
Investors, Inc. is the million of the portfolio's
sub-investment adviser. aggregate average daily net
assets.
- ----------------------------------------------------------------------------------------------
GROWTH PORTFOLIO Annual rate of 0.75% of the Annual rate of 0.30% of the
portfolio's aggregate first $1 billion and 0.20%
Montag & Caldwell, Inc. is average daily net assets. in excess of $1 billion of
the sub-investment the portfolio's aggregate
adviser. average daily net assets.
- ----------------------------------------------------------------------------------------------
CAPITAL APPRECIATION Annual rate of 0.75% of the Annual rate of 0.50% of the
PORTFOLIO portfolio's aggregate first $100 million, 0.45% of
average daily net assets. the next $100 million, 0.35%
Provident Investment of the next $100 million,
Counsel, Inc. is the sub- and 0.30% in excess of $300
investment adviser. million of the portfolio's
aggregate average daily net
assets.
- ----------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH Annual rate of 1.00% of the Annual rate of 0.65% of the
PORTFOLIO portfolio's aggregate first $50 million, 0.55% of
average daily net assets. the next $50 million and
Pilgrim Baxter & 0.45% in excess of $100
Associates, Ltd. is the million of the portfolio's
sub-investment adviser. aggregate average daily net
assets.
- ----------------------------------------------------------------------------------------------
SMALL COMPANY VALUE Annual rate of 0.75% of the Annual rate of 0.40% of the
PORTFOLIO portfolio's aggregate first $1 billion and 0.30%
average daily net assets. in excess of $1 billion of
Gabelli Asset Management, the portfolio's aggregate
Inc. is the sub-investment average daily net assets.
adviser.
- ----------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH Annual rate of 0.85% of the Annual rate of 0.45% of the
PORTFOLIO portfolio's aggregate first $100 million of the
average daily net assets. portfolio's aggregate
Vontobel USA Inc. is the average daily net assets
sub-investment adviser. (fee declines as assets
exceed $100 million).
- ----------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE> 23
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT
SUB-ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
HIGH YIELD BOND PORTFOLIO Annual rate of 0.60% of the Annual rate of 0.30% of the
portfolio's aggregate first $100 million and 0.25%
Caywood-Scholl Capital average daily net assets. in excess of $100 million of
Corporation is the sub- the portfolio's aggregate
investment adviser. average daily net assets.
- ----------------------------------------------------------------------------------------------
</TABLE>
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 affected portfolio. For each of the Funds this means the lesser of
(1) 67% of the portfolio shares represented at a meeting at which more than 50%
of the outstanding portfolio shares are represented or (2) more than 50% of the
outstanding portfolio shares.
PURCHASE OF PORTFOLIO SHARES BY MONY AMERICA VARIABLE ACCOUNT L
The Company purchases shares of each portfolio for the corresponding
sub-account at net asset value, i.e. without a sales load. Generally, all
dividends and capital gains distributions received from a portfolio are
automatically reinvested in the portfolio at net asset value. The Company, on
behalf of MONY America Variable Account L, may elect not to reinvest dividends
and capital gains distributions. The Company redeems Fund shares at net asset
value to make payments under the Policies.
Fund shares are offered only to insurance company separate accounts. The
insurance companies may or may not be affiliated with the Company or with each
other. This is called "shared funding." Shares may also be sold to separate
accounts to serve as the underlying investments for variable life insurance
policies and variable annuity policies. This is called "mixed funding."
Currently, the Company does not foresee any disadvantages to policy owners due
to mixed or shared funding. However, differences in tax treatment or other
considerations may at some time create conflict of interests between owners of
various contracts. The Company and the Boards of Directors of the Funds, and any
other insurance companies that participate in the Funds are required to monitor
events to identify material conflicts. If there is a conflict because of mixed
or shared funding, 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.
The investment objectives of each of the portfolios is substantially
similar to the investment objectives of the subaccount which purchases shares of
that portfolio. A summary of the investment objective of each of the subaccounts
available to you is found in the chart on page . No portfolio can assure
you that its objective will be achieved. You will find more detailed information
in the prospectus of each Fund that you received with this prospectus. The
Funds' prospectuses include information on the risks of each portfolio's
investments and investment techniques.
THE FUNDS' PROSPECTUSES ACCOMPANY THIS PROSPECTUS AND SHOULD BE
READ CAREFULLY BEFORE INVESTING
DETAILED INFORMATION ABOUT THE POLICY
The Fund Value in MONY America Variable Account L and the Guaranteed
Interest Account provide many of the benefits of your policy. The information in
this section describes the benefits, features, charges, and other major
provisions of the policies and the extent to which those benefits depend upon
the Fund Value.
16
<PAGE> 24
APPLICATION FOR A POLICY
The policy design meets the needs of individuals as well as for
corporations who provide coverage and benefits for key employees. A purchaser
must complete an application and personally deliver it to a licensed agent of
the Company, who is also a registered representative of MONY Securities
Corporation ("MSC"). The licensed agent submits the application to the Company.
The policy may also be sold through other broker-dealers authorized under the
law and by MSC. A policy can be issued on the life of an insured for ages up to
and including 85 with evidence of insurability that satisfies the Company. If a
qualified plan will own the policy, the insured cannot be more than 70 years
old. The age of the insured is the age on his or her last birthday prior to the
date of the policy. The Company accepts the application subject to its
underwriting rules, and may request additional information or reject an
application.
The minimum Specified Amount you may apply for is $50,000. However, the
Company reserves the right to revise its rules at any time to require a
different minimum Specified Amount at issue for subsequently issued policies.
Each policy is issued with a policy date. The policy date is used to
determine the policy months and years, and policy monthly, quarterly,
semi-annual and annual anniversaries. The policy date is stated on page 1 of the
policy. The policy date will normally be the later of (1) the date that delivery
of the policy is authorized by the Company ("Policy Release Date"), or (2) the
policy date requested in the application. No premiums may be paid with the
application except under the temporary insurance procedures defined below.
Temporary Insurance Coverage
If you want insurance coverage before the Policy Release Date, and are more
than 15 days old and not more than 70 years old, you may be eligible for a
temporary insurance agreement. You must complete an application for the policy
and give it to the Company's licensed agent. The application contains a number
of questions about your health. Your eligibility for temporary coverage will
depend upon your answers to those questions. In addition, you must complete and
sign the Temporary Insurance Agreement Form. You must also submit payment for at
least one Minimum Monthly Premium for the Policy as applied for. Your coverage
under the Temporary Insurance Agreement starts on the date you sign the form and
pay the premium amount, or if later, the requested policy date. See "Premium
Flexibility," page .
Coverage under the Temporary Insurance Agreement ends on the earliest of:
- the Policy Release Date, if the policy is issued as applied for;
- the 15th day after the Policy Release Date or the date the policy takes
effect, if the policy is issued other than as applied for;
- no later than 90 days from the date the Temporary Insurance Agreement is
signed;
- the 45th day after the form is signed if you have not finished the last
required medical exam;
- 5 days after the Company sends notice to you that it declines to issue
any policy; and
- the date you tell the Company that the policy will be refused.
If the insured dies during the period of temporary coverage, the death
benefit will be:
(1) the insurance coverage applied for (including any optional riders)
up to $500,000, less
(2) the deductions from premium and the monthly deduction due prior to
the date of death.
Premiums paid for temporary insurance coverage are held in the Company's
general account until the Policy Release Date. Except as provided below,
interest is credited on the premiums (less any deductions from premiums) held in
the Company's general account. The interest rate will be set by the Company, but
17
<PAGE> 25
will not be less than 4.5 % per year. If the policy is issued and accepted,
these amounts will be applied to the policy. These premiums will be returned to
you (without interest) within 5 days after the earliest of:
(1) the date you tell the Company that the policy will be refused.
Your refusal must be (a) at or before the Policy Release Date, or (b) (if
the policy is authorized for delivery other than as applied for), on or
before the 15th day after the Policy Release Date; or
(2) 0 days after the application is signed, if any required medical
exams or tests have not been finished; or
(3) the date the Company sends notice to you declining to issue any
policy.
Initial Premium Payment
Once your application is approved and you are issued a policy, the balance
of the first scheduled premium payment is payable. The scheduled premium payment
specified in your policy must be paid in full when your policy is delivered.
Your policy is effective the later of (1) acceptance and payment of the
scheduled premium payment, or (2) the policy date requested in the application.
If you do not request a policy date or if the policy date you request is earlier
than the Policy Release Date, any premium balance remitted by you earns interest
until the Right to Return Policy Period has ended. The policy premium credited
with interest equals amounts in the general account under the Temporary
Insurance Agreement, plus interest credited minus deductions from premiums. The
monthly deduction due prior to or on the Policy Release Date will be made. If
you request a policy date which is later than the Policy Release Date, your
premium will be held in the general account until the policy date. Premium held
in the Company's general account earns an interest rate set by the Company, but
will not be less than 4.5% per year. When the Right to Return Policy Period
ends, the premium, plus any interest credited by the Company, is allocated to
the subaccounts of MONY America Variable Account L or the Guaranteed Interest
Account pursuant to your instructions. (See "Right to Examine a Policy -- Right
to Return Policy Period," below.)
Policy Date
The Company may approve the backdating of a policy. However, the policy may
be backdated for not more than 6 months (a shorter period is required in certain
states) prior to the date of the application. Backdating can be to your
advantage if it lowers the insured's issue age and results in lower cost of
insurance rates. If the policy is backdated, the initial scheduled premium
payment will include sufficient premium to cover the extra charges for the
backdating period. Extra charges equal the monthly deductions for the period
that the policy date is backdated.
Risk Classification
Insureds are assigned to underwriting (risk) classes. Risk classes are used
in calculating the cost of insurance and certain rider charges. In assigning
insureds to underwriting classes, the Company will normally use the medical or
paramedical underwriting method. This method may require a medical examination
of the proposed insured. The Company may use other forms of underwriting when it
is considered appropriate.
RIGHT TO EXAMINE A POLICY -- RIGHT TO RETURN POLICY PERIOD
The Right to Return Policy Period runs for 10 days (or longer in certain
states) after you receive the policy. During this period, you may cancel the
policy and receive a refund of the full amount of the premium paid.
PREMIUMS
The policy is a flexible premium policy. The policy provides considerable
flexibility, subject to the limitations described below, to pay premiums at your
discretion.
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<PAGE> 26
Premium Flexibility
The Company requires you to pay an amount equal to at least the Minimum
Monthly Premium to put the policy in effect. If you want to pay premiums less
often than monthly, the premium required to put the policy in effect is equal to
the Minimum Monthly Premium multiplied by 12 divided by the frequency of the
scheduled premium payments. This Minimum Monthly Premium will be based upon:
1) the policy's Specified Amount,
2) any riders added to the policy, and
3) the insured's
a) Age,
b) smoking status,
c) gender (unless unisex cost of insurance rates apply, see "Cost of
Insurance," page ), and
d) underwriting class.
The Minimum Monthly Premium will be shown in the policy. Thereafter,
subject to the limitations described below, you may choose the amount and
frequency of premium payments to reflect your varying financial conditions.
The policy is guaranteed not to lapse during the first three policy years
if on each monthly anniversary the conditions previously described in "Summary
of the Policy" on page are met. See also "Grace Period and Lapse," page .
Scheduled Premium Payments
When you apply for a policy, you determine a scheduled premium payment.
This scheduled premium payment provides for the payment of level premiums at
fixed intervals over a specified period of time. You will receive a premium
reminder notice for the scheduled premium payment amount on an annual,
semiannual or quarterly basis, at your option. The minimum scheduled premium
payment equals the Minimum Monthly Premium multiplied by 12 divided by the
scheduled premium payment frequency. Although reminder notices will be sent, you
may not be required to pay scheduled premium payments.
You may elect to make monthly premium payments by electronic funds
transfer. Based on your policy date, up to two Minimum Monthly Premiums may be
required to be paid in cash before premiums may be paid by electronic funds
transfer to the Company. Paying premiums by electronic funds transfer requires
you to authorize the Company to withdraw premiums from your checking account
each month.
Payment of the scheduled premium payments will not guarantee that your
policy will remain in effect. (See "Grace Period and Lapse" in the Summary and
on page .)
GUARANTEED DEATH BENEFIT
Generally, your policy remains in effect so long as your policy has Cash
Value. Charges that maintain your policy are deducted monthly from Fund Value.
The Cash Value of your policy is affected by,
(1) the investment experience of any amounts in the subaccounts of
MONY America Variable Account L,
(2) the interest earned in the Guaranteed Interest Account, and
(3) the deduction from Cash Value of the various charges, costs, and
expenses imposed by the policy provisions.
This in turn affects the length of time your policy remains in effect
without the payment of additional premiums. Therefore, coverage will last as
long as the Cash Value of your policy is sufficient to pay these charges. See
"Grace Period and Lapse," page .
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<PAGE> 27
When you apply for a policy, you will be able to choose the Guaranteed
Death Benefit Rider. This Rider may extend the period that the Specified Amount
of your policy and certain other rider coverages will remain in effect if the
subaccounts suffer adverse investment experience. See "Guaranteed Death Benefit
Rider," page . The Guaranteed Death Benefit Rider is not available on policies
offered to residents of, or issued for delivery in, the Commonwealth of
Massachusetts or the State of Texas.
Modified Endowment Contracts
The amount, frequency and period of time over which you pay premiums may
affect whether your policy will be classified as a modified endowment contract.
A modified endowment contract is a type of life insurance policy subject to
different tax treatment than that given to a conventional life insurance policy.
The difference in tax treatment occurs when you take certain pre-death
distributions from your policy. See "Federal Income Tax Considerations --
Modified Endowment Contracts," page .
Unscheduled Premium Payments
Generally, you may make premium payments at any time and in any amount.
However, if the premium payment you wish to make exceeds the Scheduled Premium
payments for the policy, the Company may reject or limit any unscheduled premium
payment that would result in an immediate increase in the death benefit payable.
An immediate increase would occur if the policy's death benefit exceeds the
Specified Amount for the policy. The policy's death benefit would exceed the
Specified Amount of the policy if your Fund Value multiplied by the death
benefit percentage determined in accordance with the federal income tax law
definition of life insurance exceeds the Specified Amount. See "Death Benefits
Under the Policy," page and "Federal Income Tax Considerations -- Definition
of Life Insurance," page . However, such a premium may be accepted if you
provide us with satisfactory evidence of insurability. If satisfactory evidence
of insurability is not received, the payment or a part of it may be returned. In
addition, all or a part of a premium payment will be rejected and returned to
you if it would exceed the maximum premium limitations prescribed by the federal
income tax law definition of life insurance.
Payments you send to us will be treated as premium payments, and not as
repayment of Outstanding Debt, unless you request otherwise. If you request that
the payment be treated as a repayment of Outstanding Debt, any part of a payment
that exceeds the amount of Outstanding Debt will be applied to the Fund Value.
Applicable taxes and sales charges are only deducted from any payment that
constitutes a premium payment.
Premium Payments Affect the Continuation of the Policy
If you skip or stop paying premiums, the policy will continue in effect
until the Cash Value can no longer cover (1) the monthly deductions from the
Fund Value for the policy, and (2) the charges for any optional insurance
benefits added by rider. See "Grace Period and Lapse" page .
Your policy is guaranteed to remain in effect as long as: if:
(a) the Cash Value is greater than zero; or
(b) you have purchased the Guaranteed Death Benefit Rider and you have
met all the requirements of that rider; or
(c) during the first three policy years, the Minimum Monthly Premium
requirements are satisfied, and if you increase the Specified Amount during
the first three policy the Minimum Monthly Premium requirements are
satisfied during the three policy years following the effective date of the
increase.
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<PAGE> 28
ALLOCATION OF NET PREMIUMS
Net premiums may be allocated to any number of the fourteen available
subaccounts and to the Guaranteed Interest Account. Allocations must be in whole
percentages, and no allocation may be for less than 10% of a net premium.
Allocation percentages must sum to 100%.
You may change the allocation of net premiums at any time by submitting a
proper written request to the Company's administrative office at 1740 Broadway,
New York, New York, 10019. In addition, you may make changes in net premium
allocation instructions by telephone if a properly completed and signed
telephone transfer authorization form has been received by us at our Syracuse
Operations Center at 1 MONY Plaza, Syracuse, New York, 13202. The Company may
stop making available the ability to give net premium allocation instructions by
telephone at any time, but it will give you notice before doing so if we have
received your telephone transfer authorization form. See "Telephone Transfer
Privileges," page . Whether you give us instructions in writing or by
telephone, the revised allocation percentages will be effective within seven
days from receipt of notification.
Unscheduled premium payments may be allocated either by percentage or by
dollar amount. If the allocation is expressed in dollar amounts, the 10% limit
on allocation percentages does not apply.
DEATH BENEFITS UNDER THE POLICY
When your policy is issued, the initial amount of insurance ("Specified
Amount") is shown on the specification page of your policy. The minimum
Specified Amount is $50,000.
As long as the policy is in effect, the Company will, upon proof of death
of an insured, pay death benefit proceeds to a named beneficiary. Death benefit
proceeds will consist of:
(1) The policy's death benefit, plus
(2) Any insurance proceeds provided by rider, less
(3) Any Outstanding Debt, (and, if in the Grace Period, less any
overdue charges).
You may select one of two death benefit Options: Option 1 or Option 2.
Generally, you designate the death benefit option in your application. If no
option is designated, the Company assumes Option 2 has been selected. Subject to
certain restrictions, you can change the death benefit option selected. As long
as your policy is in effect, the death benefit under either option will never be
less than the Specified Amount of your policy.
Option 1 -- The death benefit equals the greater of:
(a) The Specified Amount, or
(b) Fund Value multiplied by a death benefit percentage.
The death benefit percentages vary according to the age of the insured
and will be at least equal to the percentage defined in the Internal
Revenue Code. The Internal Revenue Code addresses the definition of a life
insurance policy for tax purposes. See "Federal Income Tax
Considerations -- Definition of Life Insurance," page . The death benefit
percentage is 250% for insureds 40 or under, and it declines for older
insureds. A table showing the death benefit percentages is in Appendix to
this prospectus and in your policy. If you seek to have favorable
investment performance reflected in increasing Fund Value, and not in
increasing insurance coverage, you should choose Option 1.
Option 2 -- The death benefit equals the greater of:
(a) The Specified Amount of the policy, plus the Fund Value, or
(b) The Fund Value multiplied by a death benefit percentage.
The Fund Value used in these calculations is determined as of the date
of the insured's death. The death benefit percentage is the same as that
used for Option 1 and is stated in Appendix . The
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<PAGE> 29
death benefit in Option 2 will always vary as Fund Value varies. If you
seek to have favorable investment performance reflected in increased
insurance coverage, you should choose Option 2.
Examples of Options 1 and 2
The following examples demonstrate the determination of death benefits
under Options 1 and 2. The examples show three policies with the same Specified
Amount, but Fund Values that vary as shown. It is assumed that the insured is
age 40 at the time of death and that there is no Outstanding Debt. The date of
death is also assumed to be on a monthly anniversary day.
<TABLE>
<CAPTION>
POLICY 1 POLICY 2 POLICY 3
-------- -------- --------
<S> <C> <C> <C>
Specified Amount........................................... $100,000 $100,000 $100,000
Fund Value on Date of Death................................ $ 35,000 $ 60,000 $ 85,000
Death Benefit Percentage................................... 250% 250% 250%
Death Benefit under Option 1............................... $100,000 $150,000 $212,500
Death Benefit under Option 2............................... $135,000 $160,000 $212,500
</TABLE>
Option 1, Policy 1: The death benefit equals $100,000 since the death benefit
is the greater of the Specified Amount ($100,000) or the Fund Value multiplied
by the death benefit percentage ($35,000 x 250% = $87,500).
Option 1, Policies 2 & 3: The death benefit is equal to the Fund Value
multiplied by the death benefit percentage since ($60,000 x 250% = $150,000 for
Policy 2; $85,000 x 250% = $212,500 for Policy 3) is greater than the Specified
Amount ($100,000).
Option 2, Policy 1: The death benefit equals $135,000 since the Specified
Amount plus the Fund Value ($100,000 + $35,000 = $135,000) is greater than the
Fund Value multiplied by the death benefit percentage ($35,000 x 250% =
$87,500).
Option 2, Policy 2: The death benefit equals the Specified Amount plus the Fund
Value ($100,000 + $60,000 = $160,000) since it is greater than the Fund Value
multiplied by the death benefit percentage ($60,000 x 250% = $150,000).
Option 2, Policy 3: The death benefit is the Fund Value multiplied by the death
benefit percentage ($85,000 x 250% = $212,500) since it is greater than the
Specified Amount plus the Fund Value ($100,000 + $85,000 = $185,000).
The Company pays death benefit proceeds to a beneficiary in a lump sum or under
a payment plan offered under the policy. The policy should be consulted for
details.
Changes in Death Benefit Option
You may request that the death benefit option under your policy be changed
from Option 1 to Option 2, or Option 2 to Option 1. You may make a change by
sending a written request to the Company's administrative office. A change from
Option 2 to Option 1 is made without providing evidence of insurability. A
change from Option 1 to Option 2 will require that you provide satisfactory
evidence of insurability. The effective date of a change requested between
monthly anniversaries will be the next monthly anniversary day after the change
is accepted by the Company.
If you change from Option 1 to Option 2 your policy's Specified Amount is
reduced by the amount of the policy's Fund Value at the date of the change. This
maintains the death benefit payable under Option 2 at the amount that would have
been payable under Option 1 immediately prior to the change. The total death
benefit will not change immediately. The change to Option 2 will affect the
determination of the death benefit from that point on. As of the date of the
change, the Fund Value will be added to the new specified Amount. The death
benefit will then vary with the Fund Value. This change will not be permitted if
it would result in a new Specified Amount of less than $100,000.
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<PAGE> 30
If you change from Option 2 to Option 1, the Specified Amount of the policy
will be increased by the amount of the policy's Fund Value at the date of the
change. This maintains the death benefit payable under Option 1 at the amount
that would have been payable under Option 2 immediately prior to the change. The
total death benefit will not change immediately. The change to Option 1 will
affect the determination of the death benefit from that point on. The death
benefit will equal the Specified Amount (or if higher, the Fund Value multiplied
by the death benefit percentage). The change to Option 1 will generally reduce
the death benefit payable in the future.
A change in the death benefit option may affect the monthly cost of
insurance charge since this charge varies with the net amount at risk.
Generally, the net amount at risk is the amount by which the death benefit
exceeds Fund Value. See "Cost of Insurance," page . If the policy's death
benefit is not based on the death benefit percentage under Option 1 or 2,
changing from Option 2 to Option 1 will generally decrease the net amount at
risk. Therefore, this change may decrease the cost of insurance charges.
Changing from Option 1 to Option 2 will generally result in a net amount at risk
that remains level. However, such a change will result in an increase in the
cost of insurance charges over time. This results because the cost of insurance
rates increase with the insured's age.
CHANGES IN SPECIFIED AMOUNT
You may request an increase or decrease in the Specified Amount under your
policy subject to Company approval. A change in the Specified Amount may be made
at any time after the policy is issued. Increases in Specified Amount are not
permitted on or after the insured's age 85. Increases are also not permitted if
monthly deductions are being waived under the Waiver of Monthly Deduction Rider
or premiums are being waived under the Waiver of Specified Premiums Rider.
Increasing the Specified Amount will generally increase the policy's death
benefit. Decreasing the Specified Amount will generally decrease the policy's
death benefit. The amount of change in the death benefit depends on (1) the
death benefit option chosen, and (2) whether the death benefit under the policy
is being computed using the death benefit percentage at the time of the change.
Changing the Specified Amount could affect the subsequent level of policy
values. For example, an increase in Specified Amount may increase the net amount
at risk, which will increase your cost of insurance charges over time.
Conversely, a decrease in Specified Amount may decrease the net amount at risk,
which may decrease your cost of insurance over time.
To increase or decrease the Specified Amount, send a written application to
the Company's administrative office. It will become effective on the monthly
anniversary day on or next following the Company's acceptance of your request.
If you are not the insured, the Company may also require the consent of the
insured before accepting a request.
Increases
An increase of Specified Amount requires that additional, satisfactory
evidence of insurability be provided to the Company.
When you request an increase in Specified Amount, a new "coverage segment"
is created for which cost of insurance and other charges are computed
separately. See "Charges and Deductions," page . In addition, the surrender
charge associated with your policy will increase. The surrender charge for the
increase is computed in a similar way as for the original Specified Amount. The
Minimum Monthly Premium and the required premiums under the Guaranteed Death
Benefit Rider, if applicable, will also be adjusted. The adjustment will be done
prospectively to reflect the increase. If the Specified Amount is increased when
a premium payment is received, the increase will be processed before the premium
payment is processed.
If an increase creates a new coverage segment of Specified Amount, Fund
Value after the increase will be allocated, (1) first to the original coverage
segment, and (2) second to each coverage segment in order of the increases.
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<PAGE> 31
Decreases
Any decrease in Specified Amount (whether requested by you or resulting
from a partial surrender or a death benefit option change) will be applied:
(1) To reduce the coverage segments of Specified Amount associated
with the most recent increases, then
(2) To the next most recent increases successively, and last
(3) To the original Specified Amount.
A decrease will not be permitted if the Specified Amount would fall below
$100,000. Any decrease in the Term Life Term Insurance Rider will be applied to
reduce the coverage segments of the Rider in the order of the most recent
increases successively and finally to the original Rider.
The Minimum Monthly Premium will not be adjusted for the decrease in the
Specified Amount. If you have a Guaranteed Death Benefit Rider, it will be
adjusted for the decrease in Specified Amount. If the Specified Amount is
decreased when a premium payment is received, the decrease will be processed
before the premium payment is processed. Rider coverages may also be affected by
a decrease in Specified Amount.
The Company reserves the right to reject a requested decrease. Decreases
will not be permitted if:
(1) Compliance with the guideline premium limitations under federal
tax law resulting from the decrease would result in immediate termination
of your policy, or
(2) To effect the decrease, payments to you would have to be made from
Fund Value for compliance with the guideline premium limitations, and the
amount of the payments would exceed the Cash Value of your policy.
If a requested change is not approved, we will send you a written notice of our
decision. See "Federal Income Tax Considerations -- Definition of Life
Insurance," page .
Guaranteed Death Benefit Rider
When you apply for your policy you may choose to apply for the Guaranteed
Death Benefit Rider. This rider provides under certain circumstances a death
benefit (equal to the Specified Amount only of your policy) and may keep certain
rider coverages in effect, even if the Cash Value of the policy is zero on any
monthly anniversary date.
In order to remain in effect, the Guaranteed Death Benefit Rider requires
that you have paid a certain amount of premiums during the time that the Rider
is in effect. This amount is described in the next paragraph. If the premiums
you have paid do not equal or exceed this amount, the rider will automatically
end. In addition, this rider will automatically end at the later of the
insured's age 70 or ten years from the policy date ("Guarantee Period"). An
extra charge will be deducted from your Fund Value each month during the
Guarantee Period. This charge will end at the conclusion of the Guarantee
Period, and it will end if on any monthly anniversary date you have not paid the
amount of premiums the rider requires you to pay. See "Guaranteed Death Benefit
Charge," page .
On each monthly anniversary day we test to determine whether you have paid
the amount of premiums you are required to pay in order to keep the Guaranteed
Death Benefit Rider in effect. To remain in effect, we make two calculations.
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<PAGE> 32
The first calculation shows the net premiums you have paid. We:
(1) total the actual premiums you have paid for the policy, and
(2) subtract the amount of:
(a) partial surrenders (and associated fees), and
(b) outstanding debt
The second calculation shows the amount of premiums the rider required you
to pay. We
(1) take the Minimum Monthly Premium specified by the policy and
(2) multiply it by the number of complete months since the policy
date.
If the net premiums you have paid equals or exceeds the amount of premiums
the rider required you to pay, the rider remains in effect until the next
monthly anniversary date. If the amount of premiums the rider required you to
pay exceeds the net premiums you have paid, we will send you a notice that
requires you to pay additional premiums within the time specified in the notice.
This time is called the grace period for the rider. If you fail to pay the
additional premiums required the Guarantee Period, and therefore the Rider, will
end. Once ended, the Rider can not be reinstated.
The grace period for this Rider is explained in the section called "Grace
Period and Lapse -- If Guaranteed Death Benefit Is in Effect" on page .
The Guaranteed Death Benefit Rider is not available on policies offered to
residents of, or issued for delivery in, the Commonwealth of Massachusetts or
the states of New Jersey and Texas. Because the Guaranteed Death Benefit Rider
is not available, the Grace Period and Lapse will be treated as if the
Guaranteed Death Benefit is not in effect.
It is important to consider the Guaranteed Death Benefit Rider premium
requirements when setting the amount of the scheduled premium payments for your
policy. (See Appendix .)
OTHER OPTIONAL INSURANCE BENEFITS
Subject to certain requirements, you may elect to add one or more of the
optional insurance benefits described below. Optional insurance benefits are
added when you apply for your policy. These other optional benefits are added to
your policy by an addendum called a rider. A charge is deducted monthly from the
Fund Value for each optional benefit added to your policy. See "Charges and
Deductions," page . You can cancel these benefits at any time. Certain
restrictions may apply and are described in the applicable rider. In addition,
adding or canceling these benefits may have an effect on your policy's status as
a modified endowment contract. See "Federal Income Tax Considerations --
Modified Endowment Contracts," page . An insurance agent authorized to
sell the policy can describe these extra benefits further. Samples
of the provisions are available from the Company upon written request.
From time to time we may make available riders other than those listed
below. Contact an insurance agent authorized to sell the policy for a complete
list of the riders available.
Spouse's Yearly Renewable Term Rider
This rider provides for term insurance benefits on the life of the
insured's spouse, to the spouse's age 80. The minimum amount of coverage is
$25,000. The rider coverage may be converted without evidence of insurability to
any level premium, level face amount permanent plan of insurance offered by the
Company at any time prior to the spouse's age 65 or 5 years from the issue of
the rider, if later.
Children's Term Life Insurance Rider
This rider provides term insurance coverage on the lives of the children of
the insured under age 18. The coverage continues to the policy anniversary after
the child's 22nd birthday. It provides coverage for
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<PAGE> 33
children upon birth or legal adoption without presenting evidence of
insurability, if the rider is applied for and issued at the same time as the
policy is applied for and issued. If applied for after the policy is issued,
different requirements may be imposed. Coverage is limited to the lesser of
1/5th of the initial Specified Amount or $10,000. Upon the expiration of the
rider coverage, it may be converted to any level premium, level face amount
permanent plan of insurance then offered by the Company, for up to three times
the rider coverage amount.
Accidental Death and Dismemberment Rider
This rider pays the benefit amount selected if the insured dies or suffers
a specified dismemberment as a result of an accident. The accident must occur
after the insured's age 5 and prior to insured's age 70. A benefit equal to
twice the rider amount is payable if:
(1) accidental death occurs as the result of riding as a passenger,
and
(2) the accidental death occurred while riding in a public conveyance,
and
(3) the public conveyance was being operated commercially to transport
passengers for hire.
The maximum amount of coverage is the initial specified amount but not more
than the greater of:
(1) $100,000 total coverage of all such insurance in the Company or
its affiliates, or
(2) $200,000 of all such coverages regardless of insurance companies
issuing such coverages.
Purchase Option Rider
This Rider provides the option to purchase up to $100,000 of additional
coverage without providing additional evidence that the insured remains
insurable. Coverage may be added on each policy anniversary when the insured's
age is 25, 28, 31, 34, 37, 40, 43, 46 and 49. In addition, the future right to
purchase new insurance on the next option date may be advanced and exercised
immediately upon the following events:
- Marriage of the insured.
- Birth of a child of the insured.
- Legal adoption of a child by insured.
A period of term insurance is automatically provided starting on the date
of the specified event. The interim term insurance, and the option to accelerate
the purchase of the coverage expires 60 days after the specified event.
Waiver of Monthly Deduction Rider
This rider provides for the waiver of certain charges while the insured has
a covered disability and the policy is in effect. While the insured is disabled,
no deductions are made for (1) monthly administrative charges, (2) per $1,000
Specified Amount charges, (3) cost of insurance charges, and rider charges.
During this period the charges are waived and therefore not deducted from the
Fund Value. This rider does not waive the payment of premiums required by the
Guaranteed Death Benefit Rider. However, the cumulative Minimum Monthly Premium
requirement does not change during the covered disability. It remains fixed at
the level at the beginning of the disability.
Waiver of Specified Premiums Rider
This rider provides for the waiver of the monthly specified premiums (shown
on the rider) while the insured has a covered disability and the policy is in
effect. The specified premiums will be added to the Fund Value on each monthly
anniversary. Net premiums will be allocated among the subaccounts and the
Guaranteed Interest Account according to your most recent instructions. This
rider does not waive the
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<PAGE> 34
monthly deductions of your policy nor does it waive the payment of premiums
required by the Guaranteed Death Benefit Rider.
Term Life Term Rider
This rider provides additional death benefits on the life of the insured
until the insured reaches age 80. The minimum amount of coverage is $25,000. You
may convert the rider coverage without evidence of insurability to any level
premium, level face amount permanent policy of insurance offered by the Company.
The conversion must occur prior to the insured's age 65 or 5 years from the
issue of the rider, whichever is later.
BENEFITS AT MATURITY AND MATURITY EXTENSION RIDER
The maturity date for this policy is the policy anniversary on which the
insured is age 100. If the insured is living on the maturity date, the Company
will pay to you, as an endowment benefit, the Cash Value of the policy.
Ordinarily, the Company pays within seven days of the policy anniversary.
Payments may be postponed in certain circumstances. See "Payments," page . At
your option, payment of the endowment benefit may be deferred until the date of
the insured's death (Maturity Extension Rider). Death proceeds payable
immediately after the maturity date equal the Cash Value of the policy
multiplied by the death benefit percentage at the insured's age 100. Premiums
will not be accepted, nor will monthly deductions be made, after the maturity
date.
Please refer to the policy for additional information on the Maturity
Extension Rider.
POLICY VALUES
Fund Value
The Fund Value is the sum of the amounts under the policy held in each
subaccount of MONY America Variable Account L and any Guaranteed Interest
Account. It also includes the amount set aside in the Company's Loan Account,
and any interest, to secure Outstanding Debt.
On each Business Day, the part of the Fund Value allocated to any
particular subaccount is adjusted to reflect the investment experience of that
subaccount. On each monthly anniversary day, the Fund Value also is adjusted to
reflect interest on the Guaranteed Interest Account and the Loan Account and the
assessment of the monthly deduction. See "Determination of Fund Value," page .
No minimum amount of Fund Value allocated to a particular subaccount is
guaranteed. You bear the risk for the investment experience of Fund Value
allocated to the subaccounts.
Cash Value
The Cash Value of the policy equals the Fund Value less any surrender
charge less any Outstanding Debt. Thus, the Fund Value exceeds your policy's
Cash Value by the amount of the surrender charge and any Outstanding Debt. Once
the surrender charge expires, the Cash Value equals the Fund Value less any
Outstanding Debt.
DETERMINATION OF FUND VALUE
Although the death benefit under a policy can never be less than the
policy's Specified Amount, the Fund Value will vary. The Fund Value varies
depending on several factors:
- Payment of premiums.
- Amount held in the Loan Account to secure any Outstanding Debt.
- Partial surrenders.
- The charges assessed in connection with the policy.
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<PAGE> 35
- Investment experience of the subaccounts
- Amounts credited to the Guaranteed Interest Account.
There is no guaranteed minimum Fund Value (except to the extent that you have
allocated net premium payments and cash values to the Guaranteed Interest
Account) and you bear the entire risk relating to the investment performance of
Fund Value allocated to the subaccounts.
The Company uses amounts allocated to the subaccounts to purchase shares of
the corresponding portfolios of the Funds. The values of the subaccounts reflect
the investment experience of the corresponding portfolio. The investment
experience reflects:
- The investment income.
- Realized and unrealized capital gains and losses.
- Expenses of a portfolio including the investment adviser fees.
- Any dividends or distributions declared by a portfolio.
Any dividends or distributions from any portfolio of the Funds are reinvested
automatically in shares of the same portfolio. However, the Company, on behalf
of MONY America Variable Account L, may elect otherwise. The subaccount value
will also reflect the mortality and expense risk charges the Company makes each
day to the Variable Account.
Amounts allocated to the subaccounts are measured in terms of units. Units
are a measure of value used for bookkeeping purposes. The value of amounts
invested in each subaccount is represented by the value of units credited to the
policy for that subaccount. (See "Calculating Unit Values for Each Subaccount,"
on page .) On any day, the amount in a subaccount of MONY America Variable
Account L is equal to the unit value times the number of units in that
subaccount credited to the policy. The units of each subaccount will have
different unit values.
Units of a subaccount are purchased (credited) whenever premiums or amounts
transferred (including transfers from the Loan Account) are allocated to that
subaccount. Units are redeemed (debited) to:
- Make partial surrenders.
- Make full surrenders.
- Transfer amounts from a subaccount (including transfers to the Loan
Account).
- Pay the death benefit when the insured dies.
- Pay monthly deductions from the policy's Fund Value.
- Pay policy transaction charges.
- Pay surrender charges.
The number of units purchased or redeemed is determined by dividing the dollar
amount of the transaction by the unit value of the affected subaccount, computed
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 later changes in unit value.
Transactions are processed when a premium or an acceptable written or
telephone request is received at the Company's administrative office. If the
premium or request reaches the administrative office on a day that is not a
Business Day, or after the close of business on a Business Day (after 4:00
Eastern Time), the transaction date will be the next Business Day. All policy
transactions are performed as of a Business Day. If a transaction date or
monthly anniversary day occurs on a day other than a Business Day (e.g.,
Saturday), the calculations will be done on the next day that the New York Stock
Exchange is open for trading.
28
<PAGE> 36
CALCULATING UNIT VALUES FOR EACH SUBACCOUNT
The Company calculates the unit value of a subaccount on any Business Day
as follows:
(1) Calculate the value of the shares of the portfolio belonging to
the subaccount as of the close of business that Business Day. This
calculation is done before giving effect to any policy transactions for
that day, such as premium payments or surrenders. For this purpose, the net
asset value per share reported to the Company by the managers of the
portfolio is used.
(2) Add the value of any dividends or capital gains distributions
declared and reinvested by the portfolio during the valuation period.
Subtract from this amount a charge for taxes, if any.
(3) Subtract a charge for the mortality and expense risk assumed by
the Company under the policy. See "Daily Deductions From the Variable
Account -- Mortality and Expense Risk Charge," page . If the previous day
was not a Business Day, then the charge is adjusted for the additional days
between valuations.
(4) Divide the resulting amount by the number of units held in the
subaccount on the Business Day before the purchase or redemption of any
units on that date.
The unit value of each subaccount on its first Business Day was set at
$10.00.
29
<PAGE> 37
DETERMINING FUND VALUE
[DETERMINING FUND VALUE FLOW CHART]
TRANSFER OF FUND VALUE
You may transfer Fund Value among the subaccounts after the Right to Return
Policy Period by sending a proper written request to the Company's
administrative office. Transfers may be made by telephone if you have proper
authorization. See "Telephone Transfer Privileges," page . Currently, there
are no limitations on the number of transfers between subaccounts. There is also
no minimum amount required: (1) to make a transfer, or (2) to remain in the
subaccount after a transfer. You may not make a transfer if your policy is in
the grace period and a payment required to avoid lapse is not paid. See "Grace
Period and Lapse," page . No charges are currently imposed upon these
transfers. However, the
30
<PAGE> 38
Company reserves the right to assess a $25 transfer charge in the future on
policy transfers and to discontinue telephone transfers.
After the Right to Return Policy Period, Fund Value may also be transferred
from the subaccounts to the Guaranteed Interest Account. Transfers from the
Guaranteed Interest Account to the subaccounts will only be permitted in the
policy month following a policy anniversary as described in "The Guaranteed
Interest Account," page .
RIGHT TO EXCHANGE POLICY
During the first 24 months following the policy date, you may exchange your
policy for a policy where the investment experience is guaranteed. To accomplish
this, the entire amount in the subaccounts of MONY America Variable Account L is
transferred to the Guaranteed Interest Account. All future premiums are
allocated to the Guaranteed Interest Account. This serves as an exchange of your
policy for the equivalent of a flexible premium universal life policy. See "The
Guaranteed Interest Account," page . No charge is imposed on the transfer when
you exercise the exchange privilege.
POLICY LOANS
You may borrow money from the Company at any time using your policy as
security for the loan. You take a loan by submitting a proper written request to
the Company's administrative office. You may take a loan any time your policy
has a positive Cash Value. The maximum amount you may borrow at any time is 90%
of the Cash Value of your policy. (If you request a loan on a monthly
anniversary day, the maximum loan is reduced by the monthly deduction due on
that day.) The Outstanding Debt is the cumulative amount of outstanding loans
and loan interest payable to the Company at any time.
Loan interest is payable in arrears on each policy anniversary at an annual
rate which varies by the number of years since your policy was issued. For the
first ten policy years, the loan rate is 5.25%. After the tenth policy
anniversary, the loan rate is 4.75%. Interest on the full amount of any
Outstanding Debt is due on the policy anniversary, until the Outstanding Debt is
repaid. If interest is not paid when due, it will be added to the amount of the
Outstanding Debt.
You may repay all or part of the Outstanding Debt at any time while your
policy is in effect. Only payments shown as loan or interest payments will be
treated as such. If a loan repayment is made which exceeds the Outstanding Debt,
the excess will be applied as a scheduled premium payment. The payment will be
subject to the rules on acceptance of premium payments.
When you take a loan, an amount equal to the loan is transferred out of the
subaccounts and the Guaranteed Interest Account into the Loan Account to secure
the loan. Within certain limits, you may specify the amount or the percentage of
the loan amount to be deducted from the subaccounts and the Guaranteed Interest
Account. The request for a loan will not be accepted if (1) you do not specify
the source of the transfer, or (2) if the transfer instructions are incorrect.
On each policy anniversary, an amount equal to the loan interest due and unpaid
for the policy year will be transferred to the Loan Account. The transfer is
made from the subaccounts and the Guaranteed Interest Account on a proportional
basis.
The Fund Value in excess of the Outstanding Debt will be allocated to the
subaccounts and/or the Guaranteed Interest Account in a manner determined by the
Company.
The Loan Account is part of the Company's general account. Amounts held in
the Loan Account are credited monthly with an annual rate of interest not less
than 4.5%
Loan repayments release funds from the Loan Account. Unless you request
otherwise, amounts released from the Loan Account will be transferred into the
subaccounts and Guaranteed Interest Account pursuant to your most recent valid
allocation instructions for scheduled premium payments. In addition, Fund Value
in the Loan Account in excess of the outstanding loan is treated differently.
The treatment depends on (1) whether at the time the loan was made, Fund Values
were transferred from the
31
<PAGE> 39
subaccounts or the Guaranteed Interest Account, and (2) whether or not loan
interest due is paid when due or the amount of the interest is added to the loan
("capitalized"). If the loan is from the subaccounts and loan interest is
capitalized, this excess offsets the amount that must be transferred from the
subaccounts to the Loan Account on the policy anniversary. If the loan is from
the Guaranteed Interest Account and loan interest is capitalized, this excess is
allocated back to the Guaranteed Interest Account. The allocation back is on a
monthly basis proportionately to all interest crediting generations from which
the loan was taken.
Amounts held in the Loan Account to secure Outstanding Debt forego the
investment experience of the subaccounts and the current interest rate of the
Guaranteed Interest Account. Thus Outstanding Debt, whether or not repaid, has a
permanent effect on your policy 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 the death benefit upon the death of the insured, or
the value paid upon surrender or maturity.
Outstanding Debt may affect the length of time the policy remains in
effect. After the third policy anniversary (or, in some instances, the third
anniversary following an increase), your policy will lapse when (1) Cash Value
is insufficient to cover the monthly deduction against the policy's Fund Value
on any monthly anniversary day, and (2) 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 guarantee period
under the Guaranteed Death Benefit Rider may end if total premiums received less
(1) any partial surrenders and their fees, and (2) Outstanding Debt do not
exceed the premiums required under that Rider. Additional payments or repayments
of a part of Outstanding Debt may be required to keep the Policy or Rider in
effect. See "Grace Period and Lapse," page .
A loan will not be treated as a distribution from your policy and will not
result in taxable income to you unless your policy is a modified endowment
contract. If your policy is a modified endowment contract, a loan will be
treated as a distribution that may give rise to taxable income. If your policy
lapses with an outstanding loan balance there could be adverse federal income
tax consequences depending on the particular facts and circumstances. For
example, if (1) your policy lapses with an outstanding loan balance, and (2) it
does not lapse under a non-forfeiture option, you can have ordinary income to
the extent the outstanding loan exceeds your investment in the policy (i.e.
generally premiums paid less prior non-taxable distributions). For more
information on the tax treatment of loans, see "Federal Income Tax
Considerations," page .
FULL SURRENDER
You may fully surrender your policy at any time during the lifetime of the
insured. The amount received for a full surrender is the policy's Fund Value
less (1) any surrender charge, and (2) any Outstanding Debt.
You may surrender your policy by sending a written request together with
the policy to the Company's administrative office. The proceeds will be
determined as of the end of the valuation period during which the request for
surrender is received. You may elect to (1) have the proceeds paid in cash, or
(2) apply the proceeds under a payment plan offered under your policy. See
"Payment Plan Settlement Provisions," page . For information on the tax
effects of surrender of a policy, see "Federal Income Tax Consideration," page
.
PARTIAL SURRENDER
With a partial surrender, you obtain a part of the Cash Value of your
policy without having to surrender the policy in full. You may request a partial
surrender at any time. The partial surrender will take effect on (1) the
business day that we receive your request at our administrative office, or (2)
on the next business day if that day is not a business day. There is currently
no limit on the number of partial surrenders allowed in a policy year.
32
<PAGE> 40
A partial surrender must be for at least $500 (plus the applicable fee). In
addition, your policy's Cash Value must be at least $500 after the partial
surrender. If you have taken a loan on your policy, the amount of the partial
surrender is limited so that the loan amount, after the partial surrender, is
not greater than 90% of Cash Value.
You may make a partial surrender by submitting a proper written request to
the Company's administrative office. As of the effective date of any partial
surrender, your Fund Value and Cash Value are reduced by the amount surrendered
(plus the applicable fee). You allocate an amount or percent of your Fund Value
in the subaccounts and the Guaranteed Interest Account for your partial
surrender. Allocations by percentage must be in whole percentages and the
minimum percentage is 10% against any subaccount or the Guaranteed Interest
Account. Percentages must total 100%. We will reject an allocation which does
not comply with the rules or if there is not enough Fund Value in a subaccount
or the Guaranteed Interest Account to provide its share of the allocation. If
the insured dies after the request for a partial surrender is sent to the
Company and prior to it being effected, the amount of the partial surrender will
be deducted from the death benefit proceeds. The death benefit proceeds will be
determined taking into account the amount surrendered.
When you make a partial surrender and you selected death benefit Option 1,
the Specified Amount of your policy is decreased by the amount of the partial
surrender (excluding its fee). If you selected death benefit Option 2, a partial
surrender will not change the Specified Amount of your policy. However, if the
death benefit is not equal to the Fund Value times a death benefit percentage,
the death benefit will be reduced by the amount of the partial surrender. Under
either death benefit Option, if the death benefit is based on the Fund Value
times the applicable death benefit percentage, the death benefit may decrease by
an amount greater than the partial surrender. See "Death Benefits under the
Policy," page .
There is a fee for each partial surrender of $10.
For information on the tax treatment of partial surrenders, see "Federal
Income Tax Considerations," page .
GRACE PERIOD AND LAPSE
Your policy will remain in effect as long as:
(1) it has a Cash Value greater than zero,
(2) you have purchased the Guaranteed Death Benefit Rider, and you
have met all the requirements of that rider, and
(3) you make any required additional premium payments during a 61-day
Grace Period.
Special Rule for First Three Policy Years
During the first three policy years (or the first three policy years
following an increase in Specified Amount during that period), your policy and
any riders are guaranteed not to lapse if on each monthly anniversary day
either:
- Your policy's Cash Value is greater than zero, or
- The sum of the premiums paid minus all partial surrenders (excluding
related fees), minus any Outstanding Debt, is greater than or equal to
- The Minimum Monthly Premium times the number of months your policy has
been in effect (or number of months from the most recent increase in
Specified Amount).
33
<PAGE> 41
Your policy may be at risk of lapse depending on whether or not a
Guaranteed Death Benefit Rider is in effect if:
- The insufficiency occurs at any other time, or
- The Minimum Monthly Premium test has not been met during the first
three policy years (as described above).
See the explanation below.
If Guaranteed Death Benefit Rider Is Not in Effect
To avoid lapse if (1) the Cash Value is insufficient to pay the current
Monthly Deduction, and (2) the Guaranteed Death Benefit Rider is not in effect,
you must pay the necessary amount during the grace period. When an insufficiency
occurs, you may also be required to pay any unpaid loan interest accrued for the
policy year. The interest amount will also have to be paid prior to the end of
the grace period.
We will reject any payment if is means your total premium payments will
exceed the maximum permissible premium for your policy's Specified Amount under
the Internal Revenue Code. This may happen when you have Outstanding Debt. In
this event, you could repay enough of the Outstanding Debt to avoid termination.
You may also wish to repay an additional part of the Outstanding Debt to avoid
recurrence of the potential lapse. If premium payments have not exceeded the
maximum permissible premiums, you may wish to make larger or more frequent
premium payments to avoid recurrence of the potential lapse. However, we will
not reject any premium payments necessary to prevent lapse of your policy.
If the Cash Value of your policy will not cover the entire monthly
deduction on a monthly anniversary day, we will deduct the amount that is
available. We will notify you (and any assignee of record) of the payment
necessary to keep your policy in effect. You will then have a grace period of 61
days, from the date the notice was sent, to make the payment. During the first
three policy years (or within three years of an increase in Specified Amount
during that period), if the Cash Value of the policy is less than zero, you must
pay:
(1) The Minimum Monthly Premium not paid, plus
(2) One succeeding Minimum Monthly Premium.
After the third policy anniversary (or after three years from the most recent
increase in Specified Amount during that period), the payment required is:
(1) The monthly deduction not paid, plus
(2) Two succeeding monthly deductions plus the amount of the
deductions from premiums for various taxes and the sales charge.
(See "Charges and Deductions -- Deductions from Premiums," page ). The policy
will remain in effect through the grace period. If you fail to make the
necessary payment within the grace period, your coverage under the policy will
end and your policy will lapse. Necessary premium payments made during the grace
period will be allocated among the subaccounts and the Guaranteed Interest
Account. The allocation is made in according to your current scheduled premium
payment allocation instructions. Any monthly deduction due will be charged
proportionately to the subaccounts and the Guaranteed Interest Account. If the
insured dies during the grace period, the death benefit proceeds will equal:
(1) The amount of the death benefit immediately prior to the start of
the grace period, reduced by
(2) Any unpaid monthly deductions and any Outstanding Debt.
34
<PAGE> 42
If Guaranteed Death Benefit Rider Is in Effect
The Specified Amount of your policy and most rider coverages will not lapse
during the guarantee period even if the Cash Value is not enough to cover all
the deductions from the Fund Value on any monthly anniversary day if:
(1) Guaranteed Death Benefit Rider is in effect, and
(2) The test for continuation of the guarantee period has been met.
See "Guaranteed Death Benefit Rider," page .
While the Guaranteed Death Benefit Rider is in effect, the Fund Value of
your policy will be reduced by monthly deductions but not below zero. During the
guarantee period, we will waive any monthly deduction that will reduce the Fund
Value below zero. If the Guaranteed Death Benefit Rider is ended, the normal
test for lapse will resume.
Reinstatement
We will reinstate a lapsed policy at any time:
(1) Before the maturity date, and
(2) Within five years after the monthly anniversary day which precedes
the start of the grace period.
To reinstate a lapsed policy we must also receive:
(1) A written application from you
(2) Evidence of insurability satisfactory to us
(3) Payment of all monthly deductions that were due and unpaid during
the grace period
(4) Payment of an amount at least sufficient to keep your policy in
effect for one month after the reinstatement date
(5) Payment or reinstatement of any debt on the policy anniversary at
the start of the grace period
(6) Payment of interest on debt reinstated from the beginning of the
grace period to the end of the grace period at the rate that applies to
policy loans on the date of reinstatement
When your policy is reinstated, the Fund Value will be equal to the Fund
Value on the date of the lapse subject to the following:
(1) The surrender charge will be equal to the surrender charge that
would have existed had your policy been in effect since the original policy
date.
(2) The Fund Value will be reduced by the decrease, if any, in the
surrender charge during the period that the policy was not in effect.
(3) Any Outstanding Debt on the date of lapse will also be reinstated.
(4) No interest on amounts held in our 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 us. At that time, the Fund Value minus, if
applicable, Outstanding Debt will be allocated among the subaccounts and the
Guaranteed Interest Account pursuant to your most recent scheduled premium
payment allocation instructions.
35
<PAGE> 43
CHARGES AND DEDUCTIONS
The following chart is intended to provide an overview of the current
charges and deductions under the policy. Please see the discussion of each item
in this prospectus and in the policy for further details.
- --------------------------------------------------------------------------------
DEDUCTIONS FROM PREMIUMS
<TABLE>
<CAPTION>
<S> <C>
- -----------------------------------------------------------------------------------------------
Sales Charge -- Varies based on Specified Specified Amounts less than $500,000 -- 4%
Amount plus Term Life Term Specified Amounts of $500,000 or more -- 3%
Rider amount in effect. It
is a % of Premium paid
- -----------------------------------------------------------------------------------------------
Tax Charge State and local -- 2.25%
Federal -- 1.5%
- -----------------------------------------------------------------------------------------------
</TABLE>
DAILY DEDUCTION FROM MONY AMERICA VARIABLE ACCOUNT L
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Mortality & Expense Risk Charge -- Maximum .35% of subaccount value (0.000959% daily)
Annual Rate
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DEDUCTIONS FROM FUND VALUE
<TABLE>
<CAPTION>
<S> <C>
- ----------------------------------------------------------------------------------------------
Cost of Insurance Charge Current cost of insurance rate x net amount
at risk at the beginning of the policy
month
- ----------------------------------------------------------------------------------------------
Administrative Charge -- monthly $5.00
- ----------------------------------------------------------------------------------------------
Monthly per $1,000 Specified Amount Charge See Appendix B. This charge applies for the
Based on issue age, gender and smoking first 15 policy years (or for 15 years from
Status the date of any increase in Specified
Amount)
- ----------------------------------------------------------------------------------------------
Guaranteed Death Benefit Charge Monthly $0.01 per $1,000 of Specified Amount and
Charge for Death Benefit Rider certain Rider amounts. Please note that the
Rider requires that premiums on the policy
itself be paid in order to remain in
effect.
- ----------------------------------------------------------------------------------------------
Optional Insurance Benefits Charge Monthly As applicable.
Deduction for any other Optional Insurance
Benefits added by rider
- ----------------------------------------------------------------------------------------------
Transaction and Other Charges
- Partial Surrender Fee $10
- Transfer of Fund Value (at Company's $25
Option)
- ----------------------------------------------------------------------------------------------
Surrender Charge Grades from 80% to 0 over See discussion of Surrender Charge for
15 years based on a schedule. Factors per grading schedule.
$1,000 of Specified Amount vary based on
issue age, gender, and underwriting class
- ----------------------------------------------------------------------------------------------
</TABLE>
The following provides additional details of the deductions from premium
payments under a policy prior to allocating net premium payments to the
subaccounts of MONY America Variable Account L or to the Guaranteed Interest
Account and of the deductions from MONY America Variable Account L and from the
policy's Fund Value.
36
<PAGE> 44
DEDUCTIONS FROM PREMIUMS --
Deductions are made from each premium payment prior to applying the net
premium payment to the Fund Value.
Sales Charge -- This charge varies based on the total of the
Specified Amount plus the Term Life Term Insurance
Rider amount in effect on the policy date. The
charge is a percent of each premium paid.
Specified Amount plus any Term Life Term Insurance
amount in force less than $500,000 -- 4%
Specified Amount plus any Term Life Term Insurance
amount in force of $500,000 or more -- 3%
You should refer to your policy to determine your Specified Amount and the
amount of any Term Life Term Insurance in force.
The sales charge compensates us for the cost of distributing the policies.
This charge is not expected to be enough to cover sales and distribution
expenses for the policies. To the extent that sales and distribution expenses
exceed sales charges, amounts derived from surrender charges will be used.
Expenses in excess of the sales and surrender charges may be recovered from
other charges, including amount indirectly derived from the charge for mortality
and expense risks and mortality gains.
Tax Charge -- State and local premium tax -- currently 2.25%
Federal tax for deferred acquisition costs of the
Company -- currently 1.5%
All states levy taxes on life insurance premium payments. These taxes vary
from state to state and may vary from jurisdiction to jurisdiction within a
state. Currently, these taxes range from 0% to 4%. Therefore, the 2.25% current
deduction may be higher or lower than the actual premium tax imposed by a
jurisdiction. Our current tax charge is an approximate average of the actual
premium tax we expect to pay on premiums. We do not expect to profit from this
charge.
The 1.5% current charge against each premium covers our estimated cost for
the Federal income tax treatment of deferred acquisition costs. This is
determined solely by the amount of life insurance premiums received. We believe
this charge is reasonable in relation to our increased federal tax burden under
IRC Section 848 resulting from the receipt of premium payments. No charge will
be deducted where premiums received from you are not subject to this tax.
We reserve 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 us.
Daily Deduction From MONY
America Variable Account
L -- A charge is deducted daily from each subaccount of
MONY America Variable Account L for the mortality
and expense risks assumed by the Company.
Mortality and Expense Risk
Charge -- Maximum of .000959% of the amount in the
subaccount, which is equivalent to an annual rate
of .35% of subaccount value.
This charge compensates us 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. Therefore, the cost of insurance
charges specified in the policy will not be enough to meet our actual claims. We
assume an expense risk that other expenses incurred in issuing and administering
the policies and operating MONY America Variable Account L will be greater than
the amount estimated when setting the charges for these expenses. We will
realize a profit from this fee to the extent it is not needed to provide
benefits and pay expenses under the policies. We may use this profit for other
purposes. These purposes may include any distribution expenses not covered by
the sales charge or surrender charge.
37
<PAGE> 45
This charge is not assessed against the amount of the policy Fund Value
that is allocated to the Guaranteed Interest Account, nor to amounts in the Loan
Account.
Deductions from Fund
Value -- A charge called the Monthly Deduction is deducted
from the Fund Value on each monthly anniversary
day. The Monthly Deduction consists of the
following items:
Cost of Insurance -- This charge compensates us for the anticipated cost
of paying death benefits in excess of Fund Value to
insureds' beneficiaries. 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. Here,
net amount at risk equals the death benefit payable
at the beginning of the policy month less the Fund
Value at that time.
The policy contains guaranteed cost of insurance rates that may not be
increased. The guaranteed rates are based on the 1980 Commissioners Standard
Ordinary Smoker and Nonsmoker Mortality Tables. (For issue ages under 18, no
smoker/nonsmoker adjustment is made until attained age 15. Where unisex cost of
insurance rates apply, the 1980 Commissioners Ordinary Smoker and Nonsmoker
Mortality Table B applies.) These rates are based on the age and underwriting
class of the insured. They are also based on the gender of the insured, but
unisex rates are used where appropriate under applicable law. Unisex laws
include the State of Montana and in policies purchased by employers and employee
organizations in connection with employment related insurance or benefit
programs. As of the date of this prospectus, we charge "current rates" that are
lower (i.e.. less expensive) than the guaranteed rates. We may change current
rates in the future. Like the guaranteed rates, the current rates also vary with
the age, gender, smoking status, and underwriting class of the insured. In
addition, they also vary with the policy duration. The cost of insurance rate
generally increases with the age of the insured.
If there have been increases in the Specified Amount, then for purposes of
calculating the cost of insurance charge, the Fund Value will first be applied
to the initial Specified Amount. If the Fund Value exceeds the initial Specified
Amount, the excess will then be applied to any increase in Specified Amount in
the order of the increases. If the death benefit equals the Fund Value
multiplied by the applicable death benefit percentage, any increase in Fund
Value will cause an automatic increase in the death benefit. The underwriting
class and duration for such increase will be the same as that used for the most
recent increase in Specified Amount (that has not been eliminated through a
later decrease in Specified Amount.
Administrative Charge -- $5.00 per month
This charge reimburses us for expenses associated with administration and
maintenance of the policies. The charge is guaranteed never to exceed $5.00. We
do not expect to profit from this charge.
Monthly per $1,000
Specified Amount Charge -- This charge applies for the first 15 years
following the issuance of the policy or an increase
in the Specified Amount. The charge is made per
$1,000 of Specified Amount based on issue age,
gender, and smoking status. The monthly per $1,000
factors are shown in Appendix B.
Guaranteed Death Benefit
Charge -- If you elect the Guaranteed Death Benefit Rider,
you will be charged $0.01 per $1,000 of policy
Specified Amount and certain Rider amounts per
month during the term of the Guaranteed Death
Benefit Rider. This charge is guaranteed never to
exceed this amount.
Optional Insurance Benefits
Charge -- A monthly deduction for any other optional
insurance benefits added to the policy by rider.
38
<PAGE> 46
Surrender Charge -- The Company will assess a surrender charge against
Fund Value upon a full surrender of the policy. The
surrender charge is based on a factor per $1,000 of
initial Specified Amount (or upon an increase in
Specified Amount) and grades from 80% to zero over
15 years based on a schedule. The factors per
$1,000 vary by issue age, gender, and underwriting
class. The grading percentages (as shown below)
vary based on issue age and number of full years
since the Policy was issued (or since the increase
in Specified Amount).
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
GRADING PERCENTAGES PERCENT FOR ISSUE AGES PERCENT FOR ISSUE AGES
POLICY YEARS 0-75 76-85
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1-3 80% 80%
- -----------------------------------------------------------------------------------------------------------------------
4 80 70
- -----------------------------------------------------------------------------------------------------------------------
5 80 60
- -----------------------------------------------------------------------------------------------------------------------
6 80 50
- -----------------------------------------------------------------------------------------------------------------------
7 80 40
- -----------------------------------------------------------------------------------------------------------------------
8 70 30
- -----------------------------------------------------------------------------------------------------------------------
9 60 20
- -----------------------------------------------------------------------------------------------------------------------
10 50 10
- -----------------------------------------------------------------------------------------------------------------------
11 40 0
- -----------------------------------------------------------------------------------------------------------------------
12 30 0
- -----------------------------------------------------------------------------------------------------------------------
13 20 0
- -----------------------------------------------------------------------------------------------------------------------
14 10 0
- -----------------------------------------------------------------------------------------------------------------------
15+ 0 0
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: Issue ages for policies issued to Qualified Plans are limited to ages
18-70
The surrender charge is a contingent deferred load. It is a contingent load
because it is assessed only if the policy is surrendered or if the policy
lapses. It is a deferred load because it is not deducted from the premiums paid.
The purpose of the surrender charge is to reimburse us for some of the expenses
of distributing the policies.
Example: If a male insured age 35 purchases a policy with a Specified
Amount of $100,000, the per $1,000 of initial Specified Amount
surrender charge factor would be $7.25 (Preferred, nonsmoker).
The maximum surrender charge during the first seven policy years
would be 80% of (100 x 7.25) or $580.00.
The maximum surrender charge per $1,000 of initial Specified Amount factor
would be $64.00 based upon the assumptions described above and if the policy
were purchased by a male insured age 85, standard smoker.
Effect of Changes in
Specified Amount
on the Surrender
Charge -- The surrender charge will increase when a new
coverage segment of Specified Amount is created due
to a requested increase in coverage. The surrender
charge related to the increase will be computed in
the same manner as the surrender charge for the
original Specified Amount. It will reduce over the
15-year period following the increase. The new
surrender charge for the policy will equal:
(1) The remaining part of the surrender charge for
the original Specified Amount, plus
(2) The surrender charge related to the increase.
Decreases in Specified Amount have no effect on
surrender charges.
39
<PAGE> 47
TRANSACTION AND OTHER CHARGES
- Partial Surrender Fee -- $10
- Transfer of Fund Value -- $25 (at option of the Company)
The partial surrender fee is guaranteed not to exceed $10. Currently, we do
not charge for transfers of Fund Value between the subaccounts. However, we
reserve the right to assess a $25 charge on transfers. This would include
telephone transfers, if we permit them.
We may charge the subaccounts for federal income taxes that are incurred by
us and are attributable to MONY America Variable Account L and its subaccounts.
No such charge is currently assessed. See "Charge for Company Income Taxes,"
page .
We will bear the direct operating expenses of MONY America Variable Account
L. The subaccounts purchase shares of the corresponding portfolio of the
underlying Fund. The Fund's expenses are not fixed or specified under the terms
of the policy.
FEES AND EXPENSES OF THE FUNDS
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 and are set forth below. Their Boards govern the Funds. The
advisory fees are summarized at pages . Fees and expenses of the Funds are
described in more detail in the Funds' prospectuses.
40
<PAGE> 48
Information contained in the following table was provided by the respective
Funds and has not been independently verified by us.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1998
- ------------------------------------------------------------------------------------------------
OTHER EXPENSES
(AFTER
FUND/PORTFOLIO MANAGEMENT FEES REIMBURSEMENT) TOTAL EXPENSES
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MONY SERIES FUND, INC.
- ------------------------------------------------------------------------------------------------
Intermediate Term Bond
Portfolio .50% .11%(1) .61%
- ------------------------------------------------------------------------------------------------
Long Term Bond Portfolio .50% .07%(1) .57%
- ------------------------------------------------------------------------------------------------
Government Securities Portfolio .50% .13%(1) .63%
- ------------------------------------------------------------------------------------------------
Money Market Portfolio .40% .05%(1) .45%
- ------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
- ------------------------------------------------------------------------------------------------
Equity Portfolio .78% .05%(2) .83%
- ------------------------------------------------------------------------------------------------
Small Company Value Portfolio .80% .05%(2) .85%
- ------------------------------------------------------------------------------------------------
Managed Portfolio .72% .04%(2) .76%
- ------------------------------------------------------------------------------------------------
International Growth Portfolio .85% .37%(2) 1.22%
- ------------------------------------------------------------------------------------------------
High Yield Bond Portfolio .60% .12%(2) .72%
- ------------------------------------------------------------------------------------------------
Small Company Growth Portfolio 1.00% .40%(3) 1.40%
- ------------------------------------------------------------------------------------------------
Equity Income Portfolio .75% .30%(3) 1.05%
- ------------------------------------------------------------------------------------------------
Capital Appreciation Portfolio .75% .55%(3) 1.30%
- ------------------------------------------------------------------------------------------------
Growth and Income Portfolio .75% .30%(3) 1.05%
- ------------------------------------------------------------------------------------------------
Growth Portfolio .75% .40%(3) 1.15%
- ------------------------------------------------------------------------------------------------
</TABLE>
1. Expenses also include custodial credit percentages as follows:
Intermediate Term Bond -- .009%; Long Term Bond -- .005%; Government
Securities -- .012%; and Money Market -- .004%. Absent custodial
credits, expenses would have been as follows: Intermediate Term
Bond -- .62%; Long Term Bond -- .58%; Government Securities -- .64%; and
Money Market -- .45%.
2. Reflects expense reimbursements in effect since May 1, 1996. Absent
these expense reimbursements, expenses would have been as follows:
Equity -- .83%; Small Company Value -- .85%; Managed -- .76%;
International Growth -- 1.22%; and High Yield Bond -- .72%. The Equity,
Small Company Value, and Managed Portfolio reimbursements relate to
mutual fund accounting expense.
3. Subaccounts purchasing shares of the Small Company Growth, Equity
Income, Capital Appreciation, Growth and Income, and Growth Portfolios
commenced operations on December 1, 1998. Absent these expense
reimbursements, expenses would have been as follows: Small Company
Growth -- 60.67%; Equity Income -- 66.67%; Capital
Appreciation -- 63.71%; Growth and Income -- 60.68%; Growth -- 25.33%.
The Small Company Growth, Equity Income, Capital Appreciation, Growth,
and Growth and Income portfolio reimbursements relate to operating
expenses.
41
<PAGE> 49
GUARANTEE OF CERTAIN CHARGES
We guarantee that the following charges will not increase:
(1) Mortality and expense risk charge.
(2) Administrative charge.
(3) Per $1,000 Specified Amount charge.
(4) Sales charge.
(5) Guaranteed cost of insurance rates.
(6) Surrender charge.
Any changes in the current cost of insurance charges or charges for
optional insurance benefits will be made based on the class of the insured.
Changes will be based on changes in:
(1) Future expectations with respect to investment earnings,
(2) Mortality,
(3) Length of time policies will remain in effect,
(4) Expenses, and
(5) Taxes.
In no event will they exceed the guaranteed rates defined in the policy.
OTHER INFORMATION
FEDERAL INCOME TAX CONSIDERATIONS
The following provides a general description of the federal income tax
considerations relating to the policy. This discussion is based upon our
understanding of the present federal income tax laws as the Internal Revenue
Service ("IRS") currently interprets them. This discussion is not intended as
tax advice. Tax laws are very complex and tax results will vary according to
your individual circumstances. A person considering the purchase of the policy
may need tax advice. It should be understood that these comments on federal
income tax consequences are not an exhaustive discussion of all tax questions
that might arise under the policy. Special rules that are not discussed here may
apply in certain situations. We make no representation as to the likelihood of
continuation of federal income tax or estate or gift tax laws or of the current
interpretations of the IRS or the courts. Future legislation may adversely
affect the tax treatment of life insurance policies or other tax rules that we
describe here or that relate directly or indirectly to life insurance policies.
Our comments do not take into account any state or local income tax
considerations that may be involved in the purchase of the policy.
Definition of Life Insurance
Under section 7702 of the Internal Revenue Code (the "Code"), a policy will
be treated as a life insurance policy for federal tax purposes if one of two
alternate tests are met. These tests are:
(1) "Cash Value Accumulation Test"
(2) "Guideline Premium/Cash Value Corridor Test"
Your policy is tested under the Guideline Premium/Cash Value Corridor Test.
This test provides for, among other things:
(1) A maximum allowable premium per thousand dollars of death benefit,
known as the "guideline annual premium," and
42
<PAGE> 50
(2) A minimum ongoing "corridor" of death benefit in relation to the
Fund Value of the policy, known as the "death benefit percentage."
See Appendix A, for a table of the Guideline Premium/Cash Value Corridor Test
factors.
We believe that the policy meets this statutory definition of life
insurance and hence will receive federal income tax treatment consistent with
that of fixed life insurance. Thus, the death benefit should be excludable from
the gross income of the beneficiary (whether the beneficiary is a corporation,
individual or other entity) under Section 101 (a) (1) of the Code for purposes
of the regular federal income tax. You generally should not be considered to be
in constructive receipt of the cash values under the policy until a full
surrender, maturity of the policy, or a 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.
Tax Treatment of Policies
The Technical and Miscellaneous Revenue Act of 1988 established a new class
of life insurance contracts referred to as modified endowment contracts. 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, which if paid for each of the first seven years, will
fully pay for all future death and endowment benefits under a contract.
Example: "Seven-pay premium = $1,000
Maximum premium to avoid "modified endowment" treatment =
First year -- $1,000
Through first two years -- $2,000
Through first three years -- $3,000 etc.
Under this test, a policy may or may not be a modified endowment contract. The
outcome depends on the amount of premiums paid during each of the policy's first
seven contract years. Changes in benefits may require testing to determine if
the policy is to be classified as a modified endowment contract. A modified
endowment contract is treated differently for tax purposes then a conventional
life insurance contract.
Conventional Life Insurance Policies
If a policy is not a modified endowment contract distributions are treated
as follows. Upon a full surrender or maturity of a policy for its Cash Value,
the excess if any, of the Cash Value plus Outstanding Debt divided by cost basis
under a policy will be treated as ordinary income for federal income tax
purposes. A policy's cost basis will usually equal the premiums paid less any
premiums previously recovered through partial surrenders. Under Section 7702 of
the Code, special rules apply to determine whether part or all the cash received
through partial surrenders in the first 15 policy years is paid out of the
income of the policy and therefore subject to income tax. Cash distributed to a
policy owner on partial surrenders occurring more than 15 years after the policy
date will be taxable as ordinary income to the policy owner to the extent that
it exceeds the cost basis under a policy.
We believe that loans received under policies that are not modified
endowment contracts will be treated as indebtedness of the owner. Thus, no part
of any loan under the policy will constitute income to the owner until the
policy matures, unless the policy is surrendered before it matures. Interest
paid (or accrued by an accrual basis taxpayer) on a loan under a policy that is
not a modified endowment contract may be deductible. Deductibility will be
subject to several limitations, depending upon (1) the use to which the proceeds
are put and (2) the tax rules applicable to the policy owner. If, for example,
an individual who uses the proceeds of a loan for business or investment
purposes, may be able to deduct all
43
<PAGE> 51
or part of the interest expense. Generally, if an individual uses the policy
loan for personal purposes, the interest expense is not deductible. The
deductibility of loan interest (whether incurred under a policy loan or other
indebtedness) also may be subject to other limitations.
For example, the interest may be deductible to the extent that the interest
is attributable to the first $50,000 of the Outstanding Debt where:
- The interest is paid (or accrued by an accrual basis taxpayer) on a loan
under a policy, and
- The policy covers the life of an officer, employee, or person financially
interested in the trade or business of the policy owners.
Other tax law provisions may limit the deduction of interest payable on
loan proceeds that are used to purchase or carry certain life insurance
policies.
Modified Endowment Contracts
Pre-death distributions from modified endowment contracts may result in
taxable income. Upon full surrender or maturity of the policy, the policy owner
would recognize ordinary income for federal income tax purposes. Ordinary income
will equal the amount by which the Cash Value plus Outstanding Debt exceeds the
investment in the policy. (The investment in the policy is usually the premiums
paid plus certain pre-death distributions that were taxable less any premiums
previously recovered that were excludable from gross income.) Upon partial
surrenders and policy loans the policy owner would recognize ordinary income to
the extent allocable to income (which includes all previously non-taxed gains)
on the policy. The amount allocated to income is the amount by which the Fund
Value of the policy exceeds investment in the policy immediately before
distribution. The tax law provides for aggregation of two or more policies
classified as modified endowment contracts if:
(1) The policies are purchased from any one insurance company
(including the Company), and
(2) The purchases take place during a calendar year.
The policies are aggregated for the purpose of determining the part of the
pre-death distributions allocable to income on the policies and the part
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. This additional tax is 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:
(1) When the taxpayer is at least 59 1/2 years old;
(2) Which is attributable to the taxpayer becoming disabled; or
(3) 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.
A contract may not be a modified endowment contract originally but may
become one later. Treasury Department regulations, yet to be prescribed, cover
pre-death distributions received in anticipation of the policy's failure to meet
the seven-pay premium test. These distributions are to be treated as pre-death
distributions from a modified endowment contract (and, therefore, are to be
taxed as described above). This treatment is applied even though the policy was
not yet a modified endowment contract. The Code defines a distribution in
anticipation of failing the test as one made within two years of the policy
being classified as a modified endowment contract.
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, its deductibility will be subject to the same limitations as
conventional life insurance contracts (see "Conventional Life Insurance
Policies," page .)
44
<PAGE> 52
Reasonableness Requirement for Charges
The tax law also deals with allowable mortality costs and other expenses
used in the calculations to determine whether a contract qualifies as life
insurance for income tax purposes. For policies entered into on or after October
21, 1988, the calculations must be based upon, (1) reasonable mortality charges,
and (2) other charges reasonably expected to be paid. The Treasury Department is
expected to declare regulations governing reasonableness standards for mortality
charges. We believe our mortality costs and other expenses used in these
calculations meet the current requirements. It is possible that future
regulations will contain standards that would require us to modify our mortality
charges for these calculations. We reserve the right to make modifications to
retain the policy's qualification as life insurance for federal income tax
purposes.
Pension and Profit Sharing Plans
Policies purchased by a fund, which is part of a pension or profit sharing
plan (under Sections 401(a) or 403 of the Code), will be treated differently
from that described above. For participants in these plans, the current cost of
insurance for the net amount at risk is treated as a "current fringe benefit."
The current cost of insurance must be included annually in the plan
participant's gross income. This cost (referred to as the "P.S. 58" cost) is
reported to the participant annually. The excess of the death benefit over the
policy Fund Value will not be subject to federal income tax if:
(1) The plan participant dies while covered by the plan, and
(2) The policy proceeds are paid to the participant's beneficiary.
However, the policy Fund Value will generally be taxable to the extent it
exceeds the sum of (1) $5,000 plus (2) 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 has borrowed from his or her policy or was an
owner-employee under the plan.
There are limits on the amounts of life insurance that may be purchased on
behalf of a participant in a pension or profit sharing plan. Complex rules, in
addition to those discussed above, apply whenever life insurance is purchased by
a tax-qualified plan.
Other Employee Benefit Programs
Complex rules may apply when a policy is held by an employer or a trust, or
acquired by an employee, to provide for 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. The lack of insurable
interest may, among other things, affect the qualification of the policy as life
insurance for federal income tax purposes. It may also affect 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.
Diversification Requirements
To comply with regulations under Section 817(h) of the Code, each portfolio
is required to diversify its investments. Generally, on the last day of each
quarter of a calendar year,
(1) No more than 55% of the value of the portfolio's assets can be
represented by any one investment,
(2) No more than 70% can be represented by any two investments,
(3) No more than 80% can be represented by any three investments, and
(4) No more than 90% can be represented by any four investments.
45
<PAGE> 53
Securities of a single issuer generally are treated for purposes of Section
817(h) as a single investment. However, for this purpose, each U.S. Government
agency or instrumentality is treated as a separate issuer. Any security issued,
guaranteed, or insured (to the extent guaranteed and insured) by the U.S. or by
an agency or instrumentality of the U.S. is treated as a security issued by the
U.S. Government or its agency or instrumentality, as applicable.
Currently, for federal income tax purposes, the portfolio shares underlying
the subaccounts available under the policies are owned by the Company and not by
you or any beneficiary. However, no representation is or can be made regarding
the likelihood of the continuation of current interpretations by the IRS.
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:
(1) The tax treatment of the Company is ultimately determined to be
other than what the Company currently believes it to be,
(2) There are changes made in the federal income tax treatment of
variable life insurance at the insurance company level, or
(3) 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 any such taxes attributable to the Account.
VOTING OF FUND SHARES
Based on 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. We will exercise such rights at any regular and special
meetings of the shareholders of the Funds on matters requiring shareholder
voting under the Investment Company Act of 1940. Our will exercise of these
voting rights will be based on instructions received from persons having the
voting interest in corresponding subaccounts of MONY America Variable Account L.
We may elect to vote the shares of the Funds in our own right if:
(1) The Investment Company Act of 1940 or any regulations thereunder
is amended, or
(2) The present interpretation of the Act should change, and
(3) As a result we determine that it is permitted to vote the shares
of the Funds in our right.
46
<PAGE> 54
The person having the voting interest under a policy is the policy owner.
Unless otherwise required by applicable law, a policy owner will have the right
to instruct for the number of votes of any portfolio determined by dividing his
or her Fund Value in the subaccount that corresponds to the portfolio by $100.
Fractional votes will be counted. The number policy owner votes will be
determined as of the date set by the Company. However, such date will not be
more than 90 days prior to the date established by the corresponding Fund for
determining shareholders eligible to vote at that Fund's meeting. If required by
the Securities and Exchange Commission, the Company reserves the right to
determine the voting rights in a different fashion. Voting instructions may be
cast in person or by proxy.
If the Company does not receive voting instructions from the policy owner
on time, the Company will vote his or her votes. The Company will vote in the
same proportion as voting instructions received on time 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. These votes will be exercised in the same proportion as the
voting instructions that are received on time for all policies participating in
that subaccount. Generally, the Company will vote any voting rights attributable
to shares of portfolios of the Funds held in its General Account. These votes
will be exercised in the same proportion as the aggregate votes cast with
respect to shares of portfolios of the Funds held by MONY America Variable
Account L and other separate accounts of the Company.
DISREGARD OF VOTING INSTRUCTIONS
The Company may disregard voting instructions when required by state
insurance regulatory authorities, if, (1) the instructions require that voting
rights be exercised so as to cause a change in the subclassification or
investment objective of a Portfolio, or (2) 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. The
Company's disapproval of such change must be reasonable and must be 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. If 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:
(1) A summary of the transactions which occurred since the last
statement, and
(2) Indicating the death benefit, Specified Amount, Fund Value, Cash
Value, and any Outstanding Debt.
In addition, the statement will indicate the allocation of Fund Value among the
Guaranteed Interest Account, the Loan Account and the subaccounts, and any other
information required by law. Confirmations will be sent out upon premium
payments, transfers, loans, loan repayments, withdrawals, and surrenders.
Each policy owner will also receive an annual and a semiannual report
containing financial statements for MONY America Variable Account L and the
Funds. The Funds' statement 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 or may be purchased by MONY America Variable Account
L or any of its other separate accounts. The Company may substitute
47
<PAGE> 55
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 if:
(1) Shares of any or all of the portfolios of the Funds should no
longer be available for investment or,
(2) 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.
Where required, the Company will not substitute any shares attributable to
a policy owner's interest in MONY America Variable Account L without notice,
policy owner approval, or prior approval of the Securities and Exchange
Commission. The Company will also follow the filing or other procedures
established by applicable state insurance regulators. Applicable state insurance
regulators include the Commissioner of Insurance of the State of Arizona.
The Company also reserves the right to establish additional subaccounts of
MONY America Variable Account L. Each additional subaccount would invest in (1)
a new portfolio of the Funds, or (2) in shares of another investment company, a
portfolio thereof, or (3) 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.
If a substitution or change is made, the Company may make changes in this
and other policies as may be necessary or appropriate to reflect such
substitution or change. If the Company considers it to be in the best interests
of persons having voting rights under the policies, MONY America Variable
Account L may:
(1) Be operated as a management investment company under the
Investment Company Act of 1940 or any other form permitted by law,
(2) Be deregistered under that Act if such registration is no longer
required, or
(3) 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 MONY America Variable Account L.
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. Federal and State
laws include but not limited to requirements for life insurance contracts under
the Internal Revenue Code, and regulations of the United States Treasury
Department or any state.
PERFORMANCE INFORMATION
We may advertise the performance of the MONY America Variable Account L
subaccounts. We will also report performance to policy owners and may make
performance information available to prospective purchasers. This information
will be presented in compliance with applicable law.
Performance information may show the change in a policy owner's Fund Value
in one or more subaccounts, or as a change in a policy owner's death benefit.
Performance information may be expressed as a change in a policy owner's Fund
Value over time or in terms of the average annual compounded rate of return on
the policy owner's Fund Value. Such performance is based upon a hypothetical
policy in
48
<PAGE> 56
which premiums have been allocated to a particular subaccount of MONY America
Variable Account L over certain periods of time that will include one, five and
ten years, or from the commencement of operation of the subaccount of MONY
America Variable Account L if less than one, five, or ten years. Any such
quotation may reflect the deduction of all applicable charges to the policy
including premium load, the cost of insurance, the administrative charge, and
the mortality and expense risk charge. The quotation may also reflect the
deduction of the surrender charge, if applicable, by assuming surrender at the
end of the particular period. However, other quotations may simultaneously be
given that do not assume surrender and do not take into account deduction of the
surrender charge.
Performance information for MONY America Variable Account L may be compared
in advertisements, sales literature, and reports to policy owners to:
(1) 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
(2) The Consumer Price Index (measure for inflation) to assess the
real rate of return from the purchase of a policy.
Reports and promotional literature may also contain the Company's rating or a
rating of the Company's claim paying ability as determined by firms that analyze
and rate insurance companies and by nationally recognized statistical rating
organizations.
Performance information for any subaccount of MONY America Variable Account
L reflects only the performance of a hypothetical policy whose Fund Value is
allocated to MONY America Variable Account L 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 MONY America Variable Account L invests.
The market conditions during the given period of time should not be considered
as a representation of what may be achieved in the future.
THE GUARANTEED INTEREST ACCOUNT
You may allocate all or a portion of your net premiums and transfer Fund
Value to the Guaranteed Interest Account of the Company. Amounts allocated to
the Guaranteed Interest Account become part of the "General Account" of the
Company, which supports insurance and annuity obligations. The amounts allocated
to the General Account of the Company are subject to the liabilities arising
from the business the Company conducts. Descriptions of the Guaranteed Interest
Account are included in this Prospectus for the convenience of the purchaser.
The Guaranteed Interest Account and the General Account of the Company have not
been registered under the Securities Act of 1933 and the Investment Company Act
of 1940. Accordingly, neither the Guaranteed Interest Account nor any interest
therein is generally subject to the provisions of these Acts and, as a result,
the staff of the Securities and Exchange Commission has not reviewed the
disclosure in this prospectus relating to the Guaranteed Interest Account.
Disclosures regarding the Guaranteed Interest Account may, however, be subject
to certain generally applicable provisions of the federal securities laws
relating to the accuracy and completeness of statements made in the prospectus.
For more details regarding the Guaranteed Interest Account, see the policy.
GENERAL DESCRIPTION
Amounts allocated to the Guaranteed Interest Account become part of the
General Account of Company which consists of all assets owned by the Company
other than those in MONY America Variable Account L 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.
You may elect to allocate net premiums to the Guaranteed Interest Account,
MONY America Variable Account L, or both. You may also transfer Fund Value from
the subaccounts of MONY
49
<PAGE> 57
America Variable Account L to the Guaranteed Interest Account or from the
Guaranteed Interest Account to the subaccounts. The Company guarantees that the
Fund Value in the Guaranteed Interest Account will be credited with a minimum
interest rate of 0.0121% daily, compounded daily, for a minimum effective annual
rate of 4.5%. Such interest will be paid regardless of the actual investment
experience of the Guaranteed Interest Account. In addition, Company may in its
sole discretion declare current interest in excess of the 4.5% annual rate. (The
portion of a Policy Owner's Fund Value that has been used to secure Outstanding
Debt will be credited with a guaranteed interest rate of 0.0121% daily,
compounded daily, for a minimum effective annual rate of 4.5%.)
The Company bears the full investment risk for the Fund Value allocated to
the Guaranteed Interest Account.
DEATH BENEFIT
The death benefit under the policy will be determined in the same fashion
if you have Fund Value in the Guaranteed Interest Account or Fund Value in the
subaccounts. The death benefit under Option 1 will be equal to the Specified
Amount of the Policy or, if greater, Fund Value on the date of death multiplied
by a death benefit percentage. Under Option 2, the Death Benefit will be equal
to the Specified Amount of the Policy plus the Fund Value or, if greater, Fund
Value on the date of death multiplied by a death benefit percentage. See "Death
Benefits under the Policy," page .
POLICY CHARGES
Deductions from premium, monthly deductions from the Fund Value, and Fund
charges will be the same if you allocate net premiums or transfer Fund Value to
the Guaranteed Interest Account or allocate net premiums to the subaccounts.
These charges include the sales and tax charges; the charges for the cost of
insurance, administrative charge, per $1,000 of Specified Amount charge, the
charge for any optional insurance benefits added by Rider, and the surrender
charge. Fees for partial surrenders and, if applicable, transfer charges, will
also be deducted from the Guaranteed Interest Account.
You will not directly or indirectly pay charges applicable to the
portfolios, including the operating expenses of the portfolios, and the
investment advisory fee charged by the portfolio managers if your Fund Value is
allocated to the Guaranteed Interest Account. Likewise, the mortality and
expense risk charge applicable to the Fund Value allocated to the subaccounts is
not deducted from Fund Value allocated to the Guaranteed Interest Account. Any
amounts that the Company pays for income taxes allocable to the subaccounts will
not be charged against the Guaranteed Interest Account. However, it is important
to remember that you will not participate in the investment experience of the
subaccounts to the extent that Fund Values are allocated to the Guaranteed
Interest Account.
TRANSFERS
Amounts may be transferred after the Right to Return Policy Period from the
subaccounts to the Guaranteed Interest Account and from the Guaranteed Interest
Account to the subaccounts, subject to the following limitations.
- Transfers to the Guaranteed Interest Account may be made at any time and
in any amount.
- Transfers from the Guaranteed Interest Account to the subaccounts are
limited to:
- one in any policy year, and
- the 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 the transfer request is received
within 30 days after the policy anniversary, the transfer will be effective as
of the close of business on the day received if it is a Business Day. If it is
not a Business Day, then at the close of business on the next day which is a
Business Day. Any request received within
50
<PAGE> 58
10 days before the policy anniversary will be considered received on the policy
anniversary. Any transfer requests received at other times will not be honored,
and will be returned to the policy owner.
Currently there is no charge imposed upon transfers; however, the Company
reserves the right to assess such a charge in the future.
SURRENDERS AND POLICY LOANS
You may also make full surrenders and partial surrenders from the
Guaranteed Interest Account to the same extent as if you had allocated premiums
and cash values to the subaccounts. See "Full Surrender," page and "Partial
Surrender", page . Transfers and surrenders payable from the Guaranteed
Interest Account, and the payment of policy loans allocated to the Guaranteed
Interest Account, may be delayed for up to six months. However, the Company will
not delay payment of surrenders or loans, the proceeds of which will be used to
pay premiums on the policy.
MORE ABOUT THE POLICY
OWNERSHIP
The policy owner is the individual named as such in the application or in
any later change shown in the Company's records. While the insured is living,
the policy owner alone has the right to receive all benefits and exercise all
rights that the policy grants or the Company allows.
Joint Owners
If more than one person is named as policy owner, they are joint owners.
Any policy transaction requires the signature of all persons named jointly.
Unless otherwise provided, if a joint owner dies, ownership passes to 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. The Company must receive the request at its
administrative office. The change will be effective as of the date this form is
signed. Contingent and/or concurrent beneficiaries may be designated. The policy
owner may designate a permanent beneficiary, whose rights under the policy
cannot be changed without his or her consent. Unless otherwise provided, if no
designated beneficiary is living upon the death of the insured, the policy owner
or the policy owner's estate is the beneficiary.
The Company will pay the death benefit proceeds to the beneficiary. Unless
otherwise provided, the beneficiary must be living at the time of the insured's
death to receive the proceeds.
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 you 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
51
<PAGE> 59
received and recorded. The Company may require that the policy be returned for
any policy change or upon its surrender.
If an insured dies while the policy is in effect, notice should be given to
the Company as soon as possible. Claim procedure instructions will be sent
immediately. As due proof of death, the Company may require proof of age and a
certified copy of a death certificate. The Company may also require the
beneficiary and the insured's next of kin to sign authorizations as part of this
process. These authorization forms allow the Company to obtain information about
the insured, including but not limited to medical records of physicians and
hospitals used by the insured.
PAYMENTS
Within seven days after the Company receives all the information needed for
processing a payment, the Company will:
(1) Pay death benefit proceeds,
(2) Pay the Cash Value on surrender, partial surrenders and loan
proceeds based on allocations made to the subaccounts, and
(3) Effect a transfer between subaccounts or from the Variable Account
to the Guaranteed Interest Account.
However, the Company can postpone the calculation or payment of such a
payment or transfer of amounts based on investment performance of the
subaccounts if:
- The New York Stock Exchange is closed on other than customary weekend and
holiday closing or trading on the New York Stock Exchange is restricted
as determined by the SEC; or
- An emergency exists, as determined by the SEC, as a result of which
disposal of securities is not reasonably practicable or it is not
reasonably practicable to determine the value of the Account's net
assets.
PAYMENT PLAN/SETTLEMENT PROVISIONS
Maturity or surrender benefits may be used to purchase a payment plan
providing monthly income for the lifetime of the Insured. 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 or if the proceeds are less than $1,000. Maturity
or surrender benefits or death benefit proceeds may be used to purchase any
other payment plan that the Company makes available at that time.
PAYMENT IN CASE OF SUICIDE
If the insured dies by suicide, (1) while sane or insane, (2) 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 any Outstanding Debt. If an insured dies by
suicide, (1) while sane or insane, (2) 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
You may assign your policy as collateral security for a loan or other
obligation. No assignment will bind the Company unless the original, or a copy,
is received at the Company's administrative office. The assignment will be
effective only when recorded by the Company. An assignment does not change the
52
<PAGE> 60
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 .)
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:
(1) What would be purchased by the most recent cost of insurance
charge at the correct age and gender, or
(2) The death benefit derived by multiplying the Fund Value by the
death benefit percentage for the correct age and gender.
If unisex cost of insurance rates apply, no adjustment will be made for a
misstatement of gender. See "Cost of Insurance," page .
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:
(1) The initial Specified Amount cannot be contested after the policy
has been in force during the insured's lifetime for two years from the
policy date; and
(2) 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 you an illustration of future benefits
under the policy based on both guaranteed and current cost assumptions.
DISTRIBUTION OF THE POLICY
MONY Securities Corporation ("MSC"), a wholly owned subsidiary of MONY Life
Insurance Company, is principal underwriter (distributor) of the policies. MSC
is a New York corporation organized on September 26, 1969. 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 50 percent of premiums paid up to a
maximum amount. Thereafter, commissions will equal at most 3.0 percent of any
additional premiums plus, on the sixth and each succeeding quarterly anniversary
for so long as the policy shall remain in effect, an annualized rate of 0.15
percent of the Fund Value of the policy. Upon any subsequent increase in
Specified Amount, commissions will equal at most 50 percent of premiums paid on
or after the increase up to a maximum amount. Thereafter, commissions will
return to no more than the 3.0 percent level. Further, registered
representatives may be eligible to receive certain bonuses and other benefits
based on the amount of earned commissions.
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<PAGE> 61
In addition, registered representatives who meet specified production
levels may qualify, under sales incentive programs adopted by Company, to
receive non-cash compensation such as expense-paid trips, expense-paid
educational seminars and merchandise. Company makes no separate deductions,
other than previously described, from premiums to pay sales commissions or sales
expenses.
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 the Company are:
<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
- ---- -----------------------------------
<S> <C>
Michael I. Roth....................................... Director, Chairman and Chief Executive
Officer
Samuel J. Foti........................................ Director, President and Chief Operating
Officer
Kenneth M. Levine..................................... Director and Executive Vice President
Richard E. Connors.................................... Director
Richard Daddario...................................... Director, Vice President and Controller
Phillip A. Eisenberg.................................. Director, Vice President and Actuary
Margaret G. Gale...................................... Director, Vice President
Stephen J. Hall....................................... Director
Charles P. Leone...................................... Director, Vice President and Chief
Corporate Compliance Officer
Sam Chiodo............................................ Vice President
Edward E. Hill........................................ Vice President -- Chief Compliance
William D. Goodwin.................................... Vice President
Evelyn L. Peos........................................ Vice President
Michael Slipowitz..................................... Vice President
David S. Waldman...................................... Secretary
David V. Weigel....................................... Treasurer
</TABLE>
No officer or director listed above receives any compensation from MONY
America Variable Account L. The Company or any of its affiliates has paid no
separately allocable compensation to any person listed for services rendered to
the Account.
Biographical information for each of the individuals listed in the above
table is set forth below.
Set forth below is a description of the business positions during at least
the past five years for the directors and the executive officers of the Company.
Michael I. Roth is Director, Chairman of the Board and Chief Executive
Officer of the Company. He is Chairman of the Board (since July 1993) and Chief
Executive Officer (since January 1993) of MONY and has been a Trustee since May
1991. Mr. Roth is also a director of the following subsidiaries of MONY: 1740
Advisers, Inc. (since December 1992) and MONY CS, Inc. (since December 1989). He
has also served as MONY's President and Chief Executive Officer (from January
1993 to July 1993), President and Chief Operating Officer (from January 1991 to
January 1993) and Executive Vice President and Chief Financial Officer (from
March 1989 to January 1991). Mr. Roth has been with MONY for 9 years. Mr. Roth
also served on the board of directors of the American Council of Life Insurance
and serves on the boards of directors of the Life Insurance Council of New York,
Insurance Marketplace Standards Association, Enterprise Foundation (a charitable
foundation which develops housing not affiliated with the Enterprise Group of
Funds), Metropolitan Development Association of Syracuse and
54
<PAGE> 62
Central New York, Enterprise Group of Funds, Inc., Enterprise Accumulation
Trust, Pitney Bowes, Inc. and Promus Hotel Corporation.
Samuel J. Foti is Director, President and Chief Operating Officer of the
Company. He is President and Chief Operating Officer (since February 1994) of
MONY and has been a Trustee since January 1993. Mr. Foti is also a director of
the following subsidiaries of MONY: MONY Brokerage, Inc. (since January 1990),
MONY International Holdings, Inc. (since October 1994), MONY Life Insurance
Company of the Americas, Ltd., (since December 1994) and MONY Bank & Trust
Company of the Americas, Ltd. (since December 1994). He has also served as
MONY's Executive Vice President (from January 1991 to February 1994) and Senior
Vice President (from April 1989 to January 1991). Mr. Foti has been with MONY
for 10 years. Mr. Foti also serves on the board of directors of the Life
Insurance Marketing and Research Association, where he served as Chairman from
October 1996 through October 1997, Enterprise Group of Funds, Inc., Enterprise
Accumulation Trust and The American College.
Richard Daddario is Director, Vice President and Controller of the Company.
He is Executive Vice President and Chief Financial Officer (since April 1994) of
MONY. Mr. Daddario is also a director of the following subsidiaries of MONY:
MONY Brokerage, Inc. (since June 1997) and MONY Life Insurance Company of the
Americas, Ltd. (since December 1997). He has also served as MONY's Chief
Financial Officer (from January 1991 to present) and Senior Vice President (from
July 1989 to April 1994). Mr. Daddario has been with MONY for 9 years.
Kenneth M. Levine is Director and Executive Vice President of the Company.
He is Executive Vice President (since February 1990) and Chief Investment
Officer (since January 1991) of MONY and has been a Trustee since May 1994. Mr.
Levine is also a director of the following subsidiaries of MONY: 1740 Advisers,
Inc. (since December 1989), MONY Funding, Inc. (since October 1991), MONY Realty
Partners, Inc. (since October 1991) and 1740 Ventures, Inc. (since October
1991). He has also served as MONY's Senior Vice President -- Pensions (from
January 1988 to February 1990). Prior to that time, Mr. Levine held various
management positions within MONY. Mr. Levine has been with MONY for 25 years.
Richard E. Connors is Director of the Company. He is Senior Vice President
of MONY (since February 1994). Mr. Connors is also a director of the following
subsidiary of MONY: MONY Brokerage, Inc. (since May 1994). He has also served as
MONY's Regional Vice President -- Western Region (from June 1991 to February
1994), Vice President -- Small Business Marketing (from January 1990 to June
1991) and Vice President -- Manpower Development (from March 1988 to January
1990). Mr. Connors has been with MONY for 10 years.
Phillip A. Eisenberg is Director, Vice President and Actuary of the
Company. He is Senior Vice President and Chief Actuary of MONY (since April
1993). He has also served as MONY's Vice President -- Individual Financial
Affairs (from January 1989 to March 1993). Prior to that time, Mr. Eisenberg
held various positions within MONY. Mr. Eisenberg has been with MONY for 34
years.
Margaret G. Gale is Director and Vice President of the Company. She is Vice
President of MONY (since February 1991). She has also served as Vice
President -- Policyholder Services (from 1988 to 1991). Ms. Gale has been with
MONY for 20 years.
Stephen J. Hall is Director of the Company. He is Senior Vice President of
MONY (since February 1994). Mr. Hall is also a director of the following
subsidiary of MONY: MONY Brokerage, Inc. (since October 1991). He has also
served as MONY's Vice President & Chief Marketing Officer (from November 1990 to
February 1994) and prior to that time was manager of MONY's Boise, Idaho
insurance agency. Mr. Hall has been with MONY for 24 years.
Charles P. Leone is Director, Vice President and Chief Compliance Officer
of the Company. He is Vice President and Chief Corporate Compliance Officer of
MONY (since 1996). He has also served as Vice President of MONY (from 1987 to
1996). Mr. Leone has been with MONY for 35 years.
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<PAGE> 63
David S. Waldman is Secretary of the Company. He is Assistant Vice
President and Senior Counsel -- Operations (since 1992). He has also served as
Assistant General Counsel of MONY (from 1986 to 1992). Mr. Waldman has been with
MONY for 16 years.
David V. Weigel is Treasurer of the Company. He is Vice
President -- Treasurer of MONY (since 1994). He has also served as Assistant
Treasurer of MONY (from 1986 to 1994). Mr. Weigel has been with MONY for 25
years.
STATE REGULATION
The Company is subject to the laws of the state of Arizona governing
insurance companies and to regulation by the Commissioner of Insurance of
Arizona. In addition, it is subject to the insurance laws and regulations of the
other states and jurisdictions in which it is licensed or may become licensed to
operate. An annual statement in a prescribed form must be filed with the
Commissioner of Insurance of Arizona and with regulatory authorities of other
states on or before March 1st in each year. This statement covers the operations
of the Company for the preceding year and its financial condition as of December
31st of that year. The Company's affairs are subject to review and examination
at any time by the Commissioner of Insurance or his agents, and subject to full
examination of Company's operations at periodic intervals.
TELEPHONE TRANSFER PRIVILEGES
You may request a transfer of Fund Value or change allocation instructions
for future premiums by telephone if an authorization for telephone transfer form
has been completed, signed, and received at the Company's Syracuse Operations
Center. The Company may record all or part of any telephone conversation with
respect to transfer and allocation instructions. Telephone instructions received
by the Company by 4:00 p.m. Eastern time on any valuation date will be effected
as of the end of that valuation date in accordance with your instructions,
subject to the limitations stated in this prospectus (presuming that the Right
to Return Policy Period has expired). The Company reserves the right to deny any
telephone transfer or allocation request. If all telephone lines are busy (which
might occur, for example, during periods of substantial market fluctuations),
you might not be able to request transfers by telephone and would have to submit
written requests. Telephone transfer and allocation instructions will only be
accepted if complete and correct.
The Company has adopted guidelines (which it believes to be reasonable)
relating to telephone transfers and allocation instructions. These guidelines,
among other things, outline procedures to be followed which are designed to
prevent unauthorized instructions. If these procedures are followed, the Company
shall not be liable for, and you will therefore bear the entire risk of, any
loss as a result of the Company's following telephone instructions if such
instructions prove to be fraudulent. A copy of the guidelines and the Company's
form for electing telephone transfer privileges is available from licensed
agents of the Company who are also registered representatives of MSC or by
calling 1-800-487-6669. The Company's form must be signed and received at the
Company's Syracuse Operations Center before telephone transfers will be
accepted.
LEGAL PROCEEDINGS
There are no legal proceedings pending to which MONY America Variable
Account L is a party, or which would materially affect MONY America Variable
Account L.
LEGAL MATTERS
Legal matters have been passed on by the then Vice President and Deputy
General Counsel of The Mutual Life Insurance Company of New York (now MONY Life
Insurance Company) in connection with:
(1) The issue and sale of the policies described in this prospectus,
(2) The organization of the Company,
56
<PAGE> 64
(3) The Company's authority to issue the policies under Arizona law, and
(4) The validity of the forms of the policies under Arizona law.
Edward P. Bank, then Vice President and Deputy General Counsel of The
Mutual Life Insurance Company of New York (now MONY Life Insurance Company) has
passed upon legal matters relating to the federal income tax laws.
REGISTRATION STATEMENT
A Registration Statement under the Securities Act of 1933 has been filed
with the SEC relating to the offering described in this Prospectus. This
Prospectus does not include all of the information set forth in the Registration
Statement, as portions have been omitted pursuant to the rules and regulations
of the SEC. The omitted information may be obtained at the SEC's principal
office in Washington, D.C., upon payment of the SEC's prescribed fees.
INDEPENDENT ACCOUNTANTS
The audited financial statements for MONY America Variable Account L and
for the Company included in this Prospectus and in the Registration Statement
have been audited by PricewaterhouseCoopers LLP, independent accountants, as
indicated in their reports herein. The audited financial statements are included
in reliance upon the authority of said firm as experts in accounting and
auditing. PricewaterhouseCoopers LLP's office is located at 1177 Avenue of the
Americas, New York, New York, 10036.
FINANCIAL STATEMENTS
The audited financial statements for MONY America Variable Account L are
set forth herein, starting on page F-2. The audited financial statements of the
Company are set forth herein, starting on page F-12.
The financial statements of MONY America Variable Account L and of the
Company have been audited by PricewaterhouseCoopers LLP. The financial
statements of the Company should be distinguished from the financial statements
of MONY America Variable Account L and should be considered only as bearing upon
the ability of the Company to meet its obligations under the Policies.
57
<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,
1998................................................... F-3
Statements of operations for the periods ended December
31, 1998............................................... F-5
Statements of changes in net assets for the periods ended
December 31, 1998...................................... F-7
Notes to financial statements............................. F-9
With respect to MONY Life Insurance Company of America:
Report of Independent Accountants......................... F-12
Balance sheets as of December 31, 1998 and 1997........... F-13
Statements of income and comprehensive income for the
years ended December 31, 1998,
1997 and 1996.......................................... F-14
Statements of changes in shareholder's equity for the
years ended December 31, 1998,
1997 and 1996.......................................... F-15
Statements of cash flows for the years ended December 31,
1998, 1997 and 1996.................................... F-16
Notes to financial statements............................. F-18
</TABLE>
F-1
<PAGE> 66
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account L -- MONY Custom Equity Master:
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account L (comprising,
respectively, MONY Custom Equity Master's Intermediate Term Bond, Long Term
Bond, Government Securities, Money Market, Equity, Small Company Value, Managed,
International Growth, High Yield Bond, Growth, Growth and Income, Small Company
Growth, Equity Income, and Capital Appreciation Subaccounts) at December 31,
1998, and the results of each of their operations and the changes in each of
their net assets for the periods presented, in conformity with generally
accepted accounting principles. These financial statements are the
responsibility of the MONY Life Insurance Company of America's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which 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, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1998 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 12, 1999
F-2
<PAGE> 67
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------- ---------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...... $ 1,929 $1,536 $ 729 $64,655 $19,113 $7,807 $26,742
======= ====== ====== ======= ======= ====== =======
Investments in Enterprise
Accumulation Trust, at net asset
value (Note 2).................. $ 0 $ 0 $ 0 $ 0 $19,357 $8,087 $26,973
Investments in MONY Series Fund,
Inc., at net asset value (Note
2).............................. 1,931 1,541 729 64,655 0 0 0
Amount due from Enterprise
Accumulation Trust.............. 0 0 0 0 9 7 11
Amount due from MONY America...... 327 352 561 65,291 9,086 193 11,806
Amount due from MONY Series Fund,
Inc. ........................... 4 0 0 1,204 0 0 0
------- ------ ------ ------- ------- ------ -------
Total assets............ 2,262 1,893 1,290 131,150 28,452 8,287 38,790
------- ------ ------ ------- ------- ------ -------
LIABILITIES
Amount due to Enterprise
Accumulation Trust.............. 0 0 0 0 9,086 193 11,806
Amount due to MONY America........ 4 0 0 1,204 9 7 11
Amount due to MONY Series Fund,
Inc............................. 327 352 561 65,291 0 0 0
------- ------ ------ ------- ------- ------ -------
Total liabilities....... 331 352 561 66,495 9,095 200 11,817
------- ------ ------ ------- ------- ------ -------
Net assets........................ $ 1,931 $1,541 $ 729 $64,655 $19,357 $8,087 $26,973
======= ====== ====== ======= ======= ====== =======
Net assets consist of:
Contractholders' net
payments................... $ 1,934 $1,552 $ 737 $65,877 $19,495 $7,930 $27,260
Cost of insurance withdrawals
(Note 3)................... (5) (16) (8) (1,222) (389) (125) (533)
Undistributed net investment
loss....................... 0 0 0 0 (1) 0 (1)
Accumulated net realized gain
on investments............. 0 0 0 0 8 2 16
Unrealized appreciation of
investments................ 2 5 0 0 244 280 231
------- ------ ------ ------- ------- ------ -------
Net assets........................ $ 1,931 $1,541 $ 729 $64,655 $19,357 $8,087 $26,973
======= ====== ====== ======= ======= ====== =======
Number of units outstanding*...... 193 155 73 6,463 1,912 772 2,653
------- ------ ------ ------- ------- ------ -------
Net asset value per unit
outstanding*.................... $ 10.03 $ 9.97 $10.00 $ 10.00 $ 10.13 $10.48 $ 10.17
======= ====== ====== ======= ======= ====== =======
</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, 1998
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ---------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)... $1,344 $3,443 $52,128 $10,075 $1,396 $11,163 $8,099
====== ====== ======= ======= ====== ======= ======
Investments in Enterprise
Accumulation Trust at net
asset value (Note 2)......... $1,362 $3,446 $52,252 $10,138 $1,447 $11,181 $8,123
Amount due from Enterprise
Accumulation Trust........... 4 0 11 0 1 0 4
Amount due from MONY America... 27 4 36,606 6,909 0 0 6,961
------ ------ ------- ------- ------ ------- ------
Total assets.......... 1,393 3,450 88,869 17,047 1,448 11,181 15,088
------ ------ ------- ------- ------ ------- ------
LIABILITIES
Amount due to Enterprise
Accumulation Trust........... 27 4 36,606 6,909 0 0 6,961
Amount due to MONY America..... 4 0 11 0 1 0 4
------ ------ ------- ------- ------ ------- ------
Total liabilities..... 31 4 36,617 6,909 1 0 6,965
------ ------ ------- ------- ------ ------- ------
Net assets..................... $1,362 $3,446 $52,252 $10,138 $1,447 $11,181 $8,123
====== ====== ======= ======= ====== ======= ======
Net assets consist of:
Contractholders' net
payments................. $1,391 $3,474 $52,403 $10,095 $1,448 $11,178 $8,145
Cost of insurance
withdrawals (Note 3)..... (49) (33) (300) (20) (53) (15) (49)
Undistributed net
investment income
(loss)................... 0 2 (1) 0 0 0 0
Accumulated net realized
gain on investments...... 2 0 26 0 1 0 3
Unrealized appreciation of
investments.............. 18 3 124 63 51 18 24
------ ------ ------- ------- ------ ------- ------
Net assets..................... $1,362 $3,446 $52,252 $10,138 $1,447 $11,181 $8,123
====== ====== ======= ======= ====== ======= ======
Number of units outstanding*... 131 345 5,053 1,012 140 1,091 743
------ ------ ------- ------- ------ ------- ------
Net asset value per unit
outstanding*................. $10.37 $10.00 $ 10.34 $ 10.02 $10.34 $ 10.25 $10.93
====== ====== ======= ======= ====== ======= ======
</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>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 29, 1998** DECEMBER 16, 1998** DECEMBER 17, 1998** DECEMBER 28, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
Dividend income........... $ 0 $ 0 $ 0 $ 0
Mortality and expense risk
charges (Note 3)........ 0 0 0 0
--- ---- --- -------
Net investment loss....... 0 0 0 0
--- ---- --- -------
Realized and unrealized
gain on investments
(Note 2):
Proceeds from sales..... 5 23 8 1,222
Cost of shares sold..... (5) (23) (8) (1,222)
--- ---- --- -------
Net realized gain on
investments............. 0 0 0 0
Net increase in unrealized
appreciation of
investments............. 2 5 0 0
--- ---- --- -------
Net realized and
unrealized gain on
investments............. 2 5 0 0
--- ---- --- -------
Net increase in net assets
resulting from
operations.............. $ 2 $ 5 $ 0 $ 0
=== ==== === =======
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------ ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
Dividend income........... $ 0 $ 0 $ 0
Mortality and expense risk
charges (Note 3)........ (1) 0 (1)
----- ----- -----
Net investment loss....... (1) 0 (1)
----- ----- -----
Realized and unrealized
gain on investments
(Note 2):
Proceeds from sales..... 417 126 562
Cost of shares sold..... (409) (124) (546)
----- ----- -----
Net realized gain on
investments............. 8 2 16
Net increase in unrealized
appreciation of
investments............. 244 280 231
----- ----- -----
Net realized and
unrealized gain on
investments............. 252 282 247
----- ----- -----
Net increase in net assets
resulting from
operations.............. $ 251 $ 282 $ 246
===== ===== =====
</TABLE>
- ---------------
** Commencement of operations.
See notes to financial statements.
F-5
<PAGE> 70
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
----------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND
GROWTH BOND GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------- ------------------ ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 14, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------- ------------------ ------------------
<S> <C> <C> <C> <C>
Dividend income................. $ 0 $ 2 $ 0 $ 0
Mortality and expense risk
charges (Note 3).............. 0 0 (1) 0
---- ---- ----- ----
Net investment income (loss).... 0 2 (1) 0
---- ---- ----- ----
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales........... 54 40 656 20
Cost of shares sold........... (52) (40) (630) (20)
---- ---- ----- ----
Net realized gain on
investments................... 2 0 26 0
Net increase in unrealized
appreciation of investments... 18 3 124 63
---- ---- ----- ----
Net realized and unrealized gain
on investments................ 20 3 150 63
---- ---- ----- ----
Net increase in net assets
resulting from operations..... $ 20 $ 5 $ 149 $ 63
==== ==== ===== ====
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------
SMALL COMPANY EQUITY CAPITAL
GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------ ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
Dividend income................. $ 0 $ 0 $ 0
Mortality and expense risk
charges (Note 3).............. 0 0 0
---- ---- ----
Net investment income (loss).... 0 0 0
---- ---- ----
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales........... 68 15 51
Cost of shares sold........... (67) (15) (48)
---- ---- ----
Net realized gain on
investments................... 1 0 3
Net increase in unrealized
appreciation of investments... 51 18 24
---- ---- ----
Net realized and unrealized gain
on investments................ 52 18 27
---- ---- ----
Net increase in net assets
resulting from operations..... $ 52 $ 18 $ 27
==== ==== ====
</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>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 29, 1998** DECEMBER 16, 1998** DECEMBER 17, 1998** DECEMBER 28, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment loss......... $ 0 $ 0 $ 0 $ 0
Net realized gain on
investments............... 0 0 0 0
Net increase in unrealized
appreciation of
investments............... 2 5 0 0
------ ------ ---- -------
Net increase in net assets
resulting from operations... 2 5 0 0
------ ------ ---- -------
From unit transactions:
Net proceeds from the
issuance of units......... 1,933 1,559 737 65,877
Net asset value of units
redeemed or used to meet
contract obligations...... (4) (23) (8) (1,222)
------ ------ ---- -------
Net increase from unit
transactions................ 1,929 1,536 729 64,655
------ ------ ---- -------
Net increase in net assets.... 1,931 1,541 729 64,655
Net assets beginning of
period...................... 0 0 0 0
------ ------ ---- -------
Net assets end of period*..... $1,931 $1,541 $729 $64,655
====== ====== ==== =======
Units outstanding beginning of
period...................... 0 0 0 0
Units issued during the
period...................... 193 157 74 6,585
Units redeemed during the
period...................... 0 (2) (1) (122)
------ ------ ---- -------
Units outstanding end of
period...................... 193 155 73 6,463
====== ====== ==== =======
- ---------------
* Includes undistributed net
investment loss of: $ 0 $ 0 $ 0 $ 0
** Commencement of operations.
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- -------------------
<S> <C> <C> <C>
From operations:
Net investment loss......... $ (1) $ 0 $ (1)
Net realized gain on
investments............... 8 2 16
Net increase in unrealized
appreciation of
investments............... 244 280 231
------- ------ -------
Net increase in net assets
resulting from operations... 251 282 246
------- ------ -------
From unit transactions:
Net proceeds from the
issuance of units......... 19,516 7,930 27,281
Net asset value of units
redeemed or used to meet
contract obligations...... (410) (125) (554)
------- ------ -------
Net increase from unit
transactions................ 19,106 7,805 26,727
------- ------ -------
Net increase in net assets.... 19,357 8,087 26,973
Net assets beginning of
period...................... 0 0 0
------- ------ -------
Net assets end of period*..... $19,357 $8,087 $26,973
======= ====== =======
Units outstanding beginning of
period...................... 0 0 0
Units issued during the
period...................... 1,953 784 2,708
Units redeemed during the
period...................... (41) (12) (55)
------- ------ -------
Units outstanding end of
period...................... 1,912 772 2,653
======= ====== =======
- ---------------
* Includes undistributed net
investment loss of: $ (1) $ 0 $ (1)
** Commencement of operations.
</TABLE>
See notes to financial statements.
F-7
<PAGE> 72
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND
GROWTH BOND GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 14, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss).................... $ 0 $ 2 $ (1) $ 0
Net realized gain on
investments............... 2 0 26 0
Net increase in unrealized
appreciation of
investments............... 18 3 124 63
------ ------ ------- -------
Net increase in net assets
resulting from operations... 20 5 149 63
------ ------ ------- -------
From unit transactions:
Net proceeds from the
issuance of units......... 1,391 3,481 52,409 10,095
Net asset value of units
redeemed or used to meet
contract obligations...... (49) (40) (306) (20)
------ ------ ------- -------
Net increase from unit
transactions................ 1,342 3,441 52,103 10,075
------ ------ ------- -------
Net increase in net assets.... 1,362 3,446 52,252 10,138
Net assets beginning of
period...................... 0 0 0 0
------ ------ ------- -------
Net assets end of period*..... $1,362 $3,446 $52,252 $10,138
====== ====== ======= =======
Units outstanding beginning of
period...................... 0 0 0 0
Units issued during the
period...................... 136 349 5,083 1,014
Units redeemed during the
period...................... (5) (4) (30) (2)
------ ------ ------- -------
Units outstanding end of
period...................... 131 345 5,053 1,012
====== ====== ======= =======
- ---------------
* Includes undistributed net
investment income (loss)
of: $ 0 $ 2 $ (1) $ 0
** Commencement of operations.
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
SMALL COMPANY CAPITAL
GROWTH EQUITY INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- -------------------
<S> <C> <C> <C>
From operations:
Net investment income
(loss).................... $ 0 $ 0 $ 0
Net realized gain on
investments............... 1 0 3
Net increase in unrealized
appreciation of
investments............... 51 18 24
------ ------- ------
Net increase in net assets
resulting from operations... 52 18 27
------ ------- ------
From unit transactions:
Net proceeds from the
issuance of units......... 1,456 11,177 8,145
Net asset value of units
redeemed or used to meet
contract obligations...... (61) (14) (49)
------ ------- ------
Net increase from unit
transactions................ 1,395 11,163 8,096
------ ------- ------
Net increase in net assets.... 1,447 11,181 8,123
Net assets beginning of
period...................... 0 0 0
------ ------- ------
Net assets end of period*..... $1,447 $11,181 $8,123
====== ======= ======
Units outstanding beginning of
period...................... 0 0 0
Units issued during the
period...................... 146 1,092 748
Units redeemed during the
period...................... (6) (1) (5)
------ ------- ------
Units outstanding end of
period...................... 140 1,091 743
====== ======= ======
- ---------------
* Includes undistributed net
investment income (loss)
of: $ 0 $ 0 $ 0
** Commencement of operations.
</TABLE>
See notes to financial statements.
F-8
<PAGE> 73
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Flexible Premium Variable Life Insurance policies,
which include Variable Life (Strategist), Variable Universal Life (MONYEquity
Master and MONY Custom Equity Master) and Corporate Sponsored Variable Universal
Life Insurance policies. These policies are issued by MONY America, which is a
wholly-owned subsidiary of MONY Life Insurance Company ("MONY"). For
presentation purposes, the information related only to the Variable Universal
Life Insurance policies (MONY Custom Equity Master) is presented here.
There are currently fourteen MONY Custom Equity Master Subaccounts within
the Variable Account, each invests only in a corresponding portfolio of the MONY
Series Fund, Inc. (the "Fund") or the Enterprise Accumulation Trust
("Enterprise") (collectively, the "Funds"). The subaccounts of the MONY Custom
Equity Master commenced operations during 1998. The Funds are registered under
the 1940 Act as open end, diversified, management investment companies.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise are contained on pages 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 Funds' portfolios is
stated at value which is the net asset value of each portfolio. Except for the
Money Market Portfolio, net asset values are based upon market valuations of the
securities held in each of the corresponding portfolios of the Funds. For the
Money Market Portfolio, the net asset values are based on amortized cost of the
securities held which approximates value.
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based on current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for Federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted on each monthly date from
the cash value of the contract to compensate MONY America. These deductions are
treated as contractholder redemptions by the Variable Account. The amount
deducted for the MONY Custom Equity Master Subaccounts for 1998 aggregated
$2,817.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .35 percent (for the MONY
Custom Equity Master Subaccounts) of average daily net assets of the
subaccounts. As investment adviser to the Fund, it receives amounts paid by the
Fund for those services.
F-9
<PAGE> 74
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in MONY Series Fund, Inc. and Enterprise Accumulation Trust at
cost, at December 31, 1998 consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
------------------------------------------------- -------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ---------- --------- --------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of
period:
Shares............... 0 0 0 0 0 0 0
Amount............... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------ ------ ---- ------- ------- ------ -------
Shares acquired:
Shares............... 171 110 66 65,877 537 300 679
Amount............... $1,934 $1,559 $737 $65,877 $19,522 $7,931 $27,288
Shares received for
reinvestment of
dividends:
Shares............... 0 0 0 0 0 0 0
Amount............... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Shares redeemed:
Shares............... (1) (2) (1) (1,222) (12) (5) (14)
Amount............... $ (5) $ (23) $ (8) $(1,222) $ (409) $ (124) $ (546)
------ ------ ---- ------- ------- ------ -------
Net change:
Shares............... 170 108 65 64,655 525 295 665
Amount............... $1,929 $1,536 $729 $64,655 $19,113 $7,807 $26,742
------ ------ ---- ------- ------- ------ -------
Shares end of period:
Shares............... 170 108 65 64,655 525 295 665
Amount............... $1,929 $1,536 $729 $64,655 $19,113 $7,807 $26,742
====== ====== ==== ======= ======= ====== =======
</TABLE>
F-10
<PAGE> 75
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust at cost, at December 31, 1998
consist of the following:
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ---------- --------- ---------- ------------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of
period:
Shares............. 0 0 0 0 0 0 0
Amount............. $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------ ------ ------- ------- ------ ------- ------
Shares acquired:
Shares............. 210 649 10,040 1,988 278 2,200 1,468
Amount............. $1,396 $3,481 $52,758 $10,095 $1,463 $11,178 $8,147
Shares received for
reinvestment of
dividends:
Shares............. 0 0 0 0 0 0 0
Amount............. $ 0 $ 2 $ 0 $ 0 $ 0 $ 0 $ 0
Shares redeemed:
Shares............. (8) (7) (125) (4) (13) (3) (9)
Amount............. $ (52) $ (40) $ (630) $ (20) $ (67) $ (15) $ (48)
------ ------ ------- ------- ------ ------- ------
Net change:
Shares............. 202 642 9,915 1,984 265 2,197 1,459
Amount............. $1,344 $3,443 $52,128 $10,075 $1,396 $11,163 $8,099
------ ------ ------- ------- ------ ------- ------
Shares end of period:
Shares............. 202 642 9,915 1,984 265 2,197 1,459
Amount............. $1,344 $3,443 $52,128 $10,075 $1,396 $11,163 $8,099
====== ====== ======= ======= ====== ======= ======
</TABLE>
F-11
<PAGE> 76
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America
In our opinion, the accompanying balance sheets and the related statements
of income and comprehensive income, changes in shareholder's equity and cash
flows present fairly, in all material respects, the financial position of MONY
Life Insurance Company of America (the "Company") at December 31, 1998 and 1997,
and the results of its operations and its cash flows for each of the three years
in the period ended December 31, 1998, in conformity with generally accepted
accounting principles. These 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 of these
statements in accordance with generally accepted auditing standards which
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, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
As discussed in Note 2 to the financial statements, the Company adopted in
1996, Statements of Financial Accounting Standards No. 120 (SFAS 120) and
Statements of Financial Accounting Standards Board Interpretation No. 40 (FIN
40) which required implementation of several accounting pronouncements not
previously adopted. The effects of adopting SFAS 120 and FIN 40 were
retroactively applied to the Company's previously issued financial statements,
consistent with the implementation guidance of those standards.
PricewaterhouseCoopers LLP
New York, New York
February 15, 1999, except for Note 12(b),
as to which the date is March 22, 1999.
F-12
<PAGE> 77
MONY LIFE INSURANCE COMPANY OF AMERICA
BALANCE SHEETS
DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
1998 1997
-------- --------
($ IN MILLIONS)
<S> <C> <C>
ASSETS
INVESTMENTS:
Fixed maturity securities available-for-sale, at fair
value..................................................... $1,044.2 $1,099.4
Mortgage loans on real estate (Note 8)...................... 120.1 132.5
Policy loans................................................ 52.1 45.9
Real estate to be disposed of (Note 8)...................... 0.0 19.2
Real estate held for investment (Note 8).................... 8.3 2.8
Other invested assets....................................... 4.7 5.1
-------- --------
1,229.4 1,304.9
======== ========
Cash and cash equivalents................................... 133.4 46.0
Accrued investment income................................... 19.5 22.4
Amounts due from reinsurers................................. 24.4 13.0
Deferred policy acquisition costs........................... 318.6 281.6
Other assets................................................ 15.3 16.9
Separate account assets..................................... 4,148.8 3,606.7
-------- --------
Total assets...................................... $5,889.4 $5,291.5
======== ========
LIABILITIES AND SHAREHOLDER'S EQUITY
Future policy benefits...................................... $ 112.0 $ 106.1
Policyholders' account balances............................. 1,187.1 1,215.7
Other policyholders' liabilities............................ 56.9 41.2
Accounts payable and other liabilities...................... 67.9 34.5
Current federal income taxes payable........................ 13.2 17.8
Deferred federal income taxes (Note 5)...................... 13.7 7.5
Separate account liabilities................................ 4,148.8 3,606.7
-------- --------
Total liabilities................................. 5,599.6 5,029.5
Commitments and contingencies (Note 12)
Common stock $1.00 par value; 5,000,000 shares authorized,
2,500,000 issued and outstanding.......................... 2.5 2.5
Capital in excess of par.................................... 189.7 177.2
Retained earnings........................................... 89.6 75.4
Accumulated other comprehensive income...................... 8.0 6.9
-------- --------
Total shareholder's equity........................ 289.8 262.0
-------- --------
Total liabilities and shareholder's equity........ $5,889.4 $5,291.5
======== ========
</TABLE>
See accompanying notes to financial statements.
F-13
<PAGE> 78
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 1998, 1997, AND 1996
<TABLE>
<CAPTION>
1998 1997 1996
------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
REVENUES:
Universal life and investment-type product policy fees...... $122.0 $100.8 $ 80.8
Premiums.................................................... 1.7 0.1 0.0
Net investment income (Note 6).............................. 94.6 99.1 102.0
Net realized gains on investments (Note 6).................. 7.1 2.7 0.9
Other income................................................ 7.6 5.5 4.8
------ ------ ------
233.0 208.2 188.5
------ ------ ------
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 34.9 30.6 26.4
Interest credited to policyholders' account balances........ 65.1 72.5 73.0
Amortization of deferred policy acquisition costs........... 35.5 46.3 36.6
Other operating costs and expenses.......................... 75.6 46.0 39.4
------ ------ ------
211.1 195.4 175.4
------ ------ ------
Income before income taxes.................................. 21.9 12.8 13.1
Income tax expense.......................................... 7.7 4.5 4.6
------ ------ ------
Net income.................................................. 14.2 8.3 8.5
Other comprehensive income, net (Note 6).................... 1.1 3.3 (5.8)
------ ------ ------
Comprehensive income........................................ $ 15.3 $ 11.6 $ 2.7
====== ====== ======
</TABLE>
See accompanying notes to financial statements.
F-14
<PAGE> 79
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
YEARS ENDED DECEMBER 31, 1998, 1997, AND 1996
<TABLE>
<CAPTION>
ACCUMULATED
CAPITAL OTHER TOTAL
COMMON IN EXCESS RETAINED COMPREHENSIVE SHAREHOLDER'S
STOCK OF PAR EARNINGS INCOME EQUITY
------ --------- -------- ------------- ---------------
($ IN MILLIONS)
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1995............. $2.5 $153.0 $ 58.6 $ 9.4 $223.5
Capital contribution................... 13.4 13.4
Comprehensive income
Net income........................... 8.5 8.5
Other comprehensive income:
Unrealized gains on investments,
net of unrealized losses,
reclassification adjustments,
and taxes (Note 6).............. (5.8) (5.8)
---- ------ ------ ----- ------
Comprehensive income................... 2.7
------
Balance, December 31, 1996............. 2.5 166.4 67.1 3.6 239.6
Capital contribution................... 10.8 10.8
Comprehensive income
Net income........................... 8.3 8.3
Other comprehensive income:
Unrealized losses on investments,
net of unrealized gains,
reclassification adjustments,
and taxes (Note 6).............. 3.3 3.3
---- ------ ------ ----- ------
Comprehensive income................... 11.6
------
Balance, December 31, 1997............. 2.5 177.2 75.4 6.9 262.0
Capital contribution................... 12.5 12.5
Comprehensive income
Net income........................... 14.2 14.2
Other comprehensive income:
Unrealized gains on investments,
net of unrealized losses,
reclassification adjustments,
and taxes (Note 6).............. 1.1 1.1
---- ------ ------ ----- ------
Comprehensive income................... 15.3
------
Balance, December 31, 1998............. $2.5 $189.7 $ 89.6 $ 8.0 $289.8
==== ====== ====== ===== ======
</TABLE>
See accompanying notes to financial statements.
F-15
<PAGE> 80
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1998, 1997, AND 1996
<TABLE>
<CAPTION>
1998 1997 1996
------- ------- -------
($ IN MILLIONS)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES (SEE NOTE 2):
Net income.................................................. $ 14.2 $ 8.3 $ 8.5
Adjustments to reconcile net income to net cash (used
in)/provided by operating activities:
Interest credited to policyholders' account balances...... 64.1 71.5 72.5
Universal life and investment-type product policy fee
income................................................. (107.0) (98.1) (85.3)
Capitalization of deferred policy acquisition costs....... (74.9) (73.8) (68.5)
Amortization of deferred policy acquisition costs......... 35.5 46.3 36.6
Provision for depreciation and amortization............... 1.0 0.4 1.4
Provision for deferred federal income taxes............... (1.1) (13.4) (10.6)
Net realized gains on investments......................... (7.1) (2.7) (0.9)
Change in other assets and accounts payable and other
liabilities............................................ 45.3 29.6 28.2
Change in future policy benefits.......................... 5.9 0.2 1.2
Change in other policyholders' liabilities................ 15.7 5.0 2.0
Change in current federal income taxes payable............ (4.6) (11.2) 15.0
------- ------- -------
Net cash (used in) provided by operating activities......... (13.0) (37.9) 0.1
------- ------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales, maturities or repayments of:
Fixed maturities.......................................... 171.4 130.6 134.8
Equity securities......................................... 0.8 1.0 0.0
Mortgage loans on real estate............................. 37.6 37.7 53.2
Real estate............................................... 17.0 18.6 19.8
Other invested assets..................................... 0.6 1.5 0.0
Acquisitions of investments:
Fixed maturities.......................................... (109.2) (157.6) (163.8)
Equity securities......................................... (0.1) (0.1) 0.0
Mortgage loans on real estate............................. (24.3) (13.6) (38.7)
Real estate............................................... (0.6) (1.5) (3.4)
Other invested assets..................................... (0.3) (0.1) (0.3)
Policy loans, net......................................... (6.2) (4.4) (3.3)
Other..................................................... (0.5) 0.3 (0.9)
------- ------- -------
Net cash provided by (used in) investing activities......... $ 86.2 $ 12.4 $ (2.6)
------- ------- -------
</TABLE>
See accompanying notes to financial statements.
F-16
<PAGE> 81
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CASH FLOWS -- (CONTINUED)
YEARS ENDED DECEMBER 31, 1998, 1997, AND 1996
<TABLE>
<CAPTION>
1998 1997 1996
------- ------- -------
($ IN MILLIONS)
<S> <C> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Receipts from annuity and universal life policies credited
to policyholders' account balances........................ $ 811.8 $ 810.4 $ 753.5
Return of policyholders' account balances on annuity
policies and universal life policies...................... (797.6) (829.1) (786.0)
------- ------- -------
Net cash provided by (used in) financing activities......... 14.2 (18.7) (32.5)
------- ------- -------
Net increase (decrease) in cash and cash equivalents........ 87.4 (44.2) (35.0)
Cash and cash equivalents, beginning of year................ 46.0 90.2 125.2
------- ------- -------
Cash and cash equivalents, end of year...................... $ 133.4 $ 46.0 $ 90.2
======= ======= =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes................................................ $ 13.4 $ 29.1 $ 0.0
</TABLE>
See accompanying notes to financial statements.
F-17
<PAGE> 82
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND DESCRIPTION OF BUSINESS:
MONY Life Insurance Company of America (the "Company"), an Arizona stock
life insurance company, is a wholly-owned subsidiary of MONY Life Insurance
Company of New York (MONY Life), a stock life insurance company. MONY Life is a
wholly owned subsidiary of The MONY Group, Inc. (the "MONY Group").
The Company's primary business is to provide asset accumulation and life
insurance 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 Life's career agency sales force. These
products are sold throughout the United States (except New York) and Puerto
Rico.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Presentation
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles ("GAAP"). Prior to 1996, the Company,
as a wholly-owned stock insurance subsidiary of a mutual life insurance company
(MONY Life), prepared its financial statements in conformity with accounting
practices prescribed or permitted by the Arizona State Insurance Department
("SAP"), which accounting practices were considered to be GAAP for mutual life
insurance companies and their wholly-owned stock insurance subsidiaries. As of
January 1, 1996, the Company adopted Financial Accounting Standards Board
("FASB") Interpretation No. 40, Applicability of Generally Accepted Accounting
Principles to Mutual Life Insurance and Other Enterprises (the
"Interpretation"), and Statement of Financial Accounting Standards ("SFAS") No.
120, Accounting and Reporting by Mutual Life Insurance Enterprises and by
Insurance Enterprises for Certain Long Duration Participating Policies (the
"Standard"). The Interpretation and the Standard require mutual life insurance
companies and their wholly-owned stock insurance subsidiaries to adopt all
applicable authoritative GAAP pronouncements in their general purpose financial
statements. Accordingly, the initial effect of applying the Interpretation and
the Standard has been reported retroactively through the restatement of
previously issued financial statements presented herein for comparative purposes
(see Note 13).
The preparation of financial statements in conformity with GAAP 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 revenues and
expenses 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) deferred policy acquisition costs, (ii) the liability for future
policy benefits, and (iii) valuation allowances for mortgage loans and real
estate to be disposed of, and impairment writedowns for real estate held for
investment.
During 1997, the Company adopted SFAS No. 130, Reporting Comprehensive
Income, which was issued by the FASB in June of 1997. SFAS No. 130 established
standards for reporting and display of comprehensive income and its components
in general purpose financial statements. All periods presented herein reflect
the provisions of SFAS No. 130.
Valuation of Investments and Realized Gains and Losses
All of the Company's fixed maturity securities are classified as
available-for-sale and are reported at estimated fair value. Unrealized gains
and losses on fixed maturity securities are reported as a separate component of
other comprehensive income, net of deferred income taxes and an adjustment for
the effect on deferred policy acquisition costs that would have occurred if such
gains and losses had been realized. The cost of fixed maturity securities is
adjusted for impairments in value deemed to be other than temporary. These
F-18
<PAGE> 83
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
adjustments are reflected as realized losses on investments. Realized gains and
losses on sales of investments are determined on the basis of specific
identification.
Mortgage loans on real estate are stated at their unpaid principal
balances, net of valuation allowances. Valuation allowances are established for
the excess of the carrying value of a mortgage loan over its estimated fair
value when the loan is considered to be impaired. Mortgage loans are considered
to be impaired when, based on current information and events, it is probable
that the Company will be unable to collect all amounts due according to the
contractual terms of the loan agreement. Estimated fair value is based on either
the present value of expected future cash flows discounted at the loan's
original effective interest rate, or the loan's observable market price (if
considered to be a practical expedient), or the fair value of the collateral if
the loan is collateral dependent and if foreclosure of the loan is considered
probable. The provision for loss is reported as a realized loss on investment.
Loans in foreclosure and loans considered to be impaired, other than
restructured loans, are placed on non-accrual status. Interest received on
non-accrual status mortgage loans is included in investment income in the period
received. Interest income on restructured mortgage loans is accrued at the
restructured loans' interest rate.
Real estate held for investment, as well as related improvements, are
generally stated at cost less depreciation. Depreciation is determined using the
straight-line method over the estimated useful life of the asset (which may
range from 5 to 40 years). Cost is adjusted for impairment whenever events or
changes in circumstances indicate that the carrying amount of the asset may not
be recoverable. In performing the review for recoverability, management
estimates the future cash flows expected from real estate investments, including
the proceeds on disposition. If the sum of the expected undiscounted future cash
flows is less than the carrying amount of the real estate, an impairment loss is
recognized. Impairment losses are based on the estimated fair value of the real
estate, which is generally computed using the present value of expected future
cash flows from the real estate discounted at a rate commensurate with the
underlying risks. Real estate acquired in satisfaction of debt is recorded at
estimated fair value at the date of foreclosure. Real estate that management
intends to sell is classified as "to be disposed of". Real estate to be disposed
of is reported at the lower of its current carrying value or estimated fair
value less estimated sales costs. Changes in reported values relating to real
estate to be disposed of and impairments of real estate held for investment are
reported as realized gains or losses on investments.
Policy loans are carried at their unpaid principal balances.
Cash and cash equivalents include cash on hand, amounts due from banks and
highly liquid debt instruments with an original maturity of three months or
less.
Recognition of Insurance Revenue and Related Benefits
Premiums from universal life and investment-type contracts are reported as
deposits to policyholders' account balances. Revenue from these types of
products consists of amounts assessed during the period against policyholders'
account balances for policy administration charges, cost of insurance and
surrender charges. Policy benefits charged to expense include benefit claims
incurred in the period in excess of the related policyholders' account balance.
Premiums from non-participating term life and annuity policies with life
contingencies are recognized as premium income when due. Benefits and expenses
are matched with such income so as to result in the recognition of profits over
the life of the contracts. This match is accomplished by means of the provision
for liabilities for future policy benefits and the deferral and subsequent
amortization of policy acquisition costs.
Deferred Policy Acquisition Costs ("DAC")
The costs of acquiring new business, principally commissions, underwriting,
agency, and policy issue expenses, all of which vary with and are primarily
related to the production of new business, are deferred.
F-19
<PAGE> 84
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
For universal life products and investment-type products, DAC is amortized
over the expected life of the contracts (ranging from 15 to 30 years) as a
constant percentage based on the present value of estimated gross profits
expected to be realized over the life of the contracts using the initial
locked-in contract rate. The contract rate for all products is 8 percent.
Estimated gross profits arise principally from investment results, mortality and
expense margins and surrender charges.
For non-participating term policies, DAC is amortized over the expected
life of the contracts (ranging from 5 to 20 years) based on the present value of
the estimated gross premiums.
DAC is subject to recoverability testing at the time of policy issuance and
loss recognition testing at the end of each accounting period. The effect on the
amortization of DAC of revisions in estimated experience is reflected in
earnings in the period such estimates are revised. In addition, the effect on
the DAC asset that would result from the realization of unrealized gains
(losses) is recognized through an offset to Other Comprehensive Income as of the
balance sheet date.
Policyholders' Account Balances and Future Policy Benefits
Policyholders' account balances for universal life and investment-type
contracts represent an accumulation of gross premium payments plus credited
interest less expense and mortality charges and withdrawals. The weighted
average interest crediting rate for universal life products was approximately
5.7%, 5.8%, and 5.8% for the years ended December 31, 1998, 1997, and 1996,
respectively. The weighted average interest crediting rate for investment-type
products was approximately 5.6% for each of the years ended December 31, 1998,
1997, and 1996, respectively.
GAAP reserves for non-participating term life policies are calculated using
a net level premium method on the basis of actuarial assumptions equal to
expected investment yields, mortality, terminations, and expenses applicable at
the time the insurance contracts are made, including a provision for the risk of
adverse deviation.
Federal Income Taxes
The Company files a consolidated federal income tax return with its parent,
MONY Life, along with MONY Life's other life and non-life subsidiaries. Deferred
income tax assets and liabilities are recognized based on the difference between
financial statement carrying amounts and income tax bases of assets and
liabilities using enacted income tax rates and laws.
The method of allocation between the companies is subject to written
agreement, approved by the Board of Directors. The allocation of federal income
taxes will be based upon separate return calculations with current credit for
losses and other federal income tax credits provided to the life insurance
members of the affiliated group. Intercompany balances are settled annually in
the fourth quarter of the year in which the return is filed.
Reinsurance
The Company has reinsured certain of its life insurance and annuity
business with life contingencies with MONY Life and other insurance companies
under various agreements. Amounts due from reinsurers are estimated based on
assumptions consistent with those used in establishing the liabilities related
to the underlying reinsured contracts. Policy and contract liabilities are
reported gross of reserve credits. Gains on reinsurance are deferred and
amortized into income over the remaining life of the underlying reinsured
contracts.
The reinsurer's investment in a reinsurance contract consists of amounts
paid to the ceding company at the inception of the contract (e.g. expense
allowances and the excess of liabilities assumed by the reinsurer
F-20
<PAGE> 85
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
over the assets transferred to the reinsurer under the contract) plus the amount
of capital required to support such business consistent with prudent business
practices, regulatory requirements, and the reinsurer's credit rating. The
Company estimates the capital required to support such business based on what it
considers to be an appropriate level of risk-based capital in light of
regulatory requirements and prudent business practices.
Separate Accounts
Separate accounts are established in conformity with insurance laws and are
generally not chargeable with liabilities that arise from any other business of
the Company. Separate account assets are subject to general account claims only
to the extent that the value of such assets exceeds the separate account
liabilities. Investments held in separate accounts and liabilities of the
separate accounts are reported separately as assets and liabilities.
Substantially all separate account assets are reported at estimated fair value.
Investment income and gains or losses on the investments of separate accounts
accrue directly to contractholders and, accordingly, are not reflected in the
Company's statements of income and cash flows. Fees charged to the separate
accounts by the Company (including mortality charges, policy administration fees
and surrender charges) are reflected in the Company's revenues.
Statements of Cash Flows -- Non-cash Transactions
For the years ended December 31, 1998, 1997, and 1996, respectively, real
estate of $0.5 million, $0.0 million, and $0.0 million was acquired in
satisfaction of debt. At December 31, 1998 and 1997, the Company owned real
estate acquired in satisfaction of debt of $8.0 million and $21.7 million,
respectively.
New Accounting Pronouncements
In January 1998, the American Institute of Certified Public Accountants
issued Statement of Position (SOP) 97-3, "Accounting by Insurance and Other
Enterprises for Insurance-Related Assessments". SOP 97-3 provides guidance for
determining when an entity should recognize a liability for guaranty fund and
other insurance-related assessments and when it may recognize an asset for a
portion or all of the assessment liability or paid assessment that can be
recovered through premium tax offsets or policy surcharges. SOP 97-3 is
effective for fiscal years beginning after December 15, 1998. Adoption of SOP
97-3 is not expected to have a material effect on the Company's financial
condition or results of operations.
In June 1998, The FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." SFAS 133 requires all derivatives to be
recognized in the statement of financial position as either assets or
liabilities and measured at fair value. The corresponding derivative gains and
losses should be reported based on the hedge relationship that exists, if there
is one. Changes in the fair value of derivatives that are not designated as
hedges or that do not meet the hedge accounting criteria in SFAS 133, are
required to be reported in earnings. SFAS 133 is effective for fiscal years
beginning after June 15, 1999. Adoption of SFAS 133 is not expected to have a
material effect on the Company's financial condition or results of operations.
3. RELATED PARTY TRANSACTIONS:
MONY Life has guaranteed to certain states that the statutory surplus of
the Company will be maintained at amounts at least equal to the minimum surplus
for admission to those states.
At December 31, 1998 and 1997, approximately 23% and 26% of the Company's
investments in mortgages were held through joint participation with MONY Life,
respectively. In addition, 100% of the Company's real estate and joint venture
investments were held through joint participation with MONY Life at December 31,
1998 and 1997.
F-21
<PAGE> 86
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
The Company and MONY Life are parties to an agreement whereby MONY Life
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 Life of $0.1 million in each of the years ending
December 31, 1998, 1997 and 1996.
The Company has a service agreement with MONY Life whereby MONY Life
provides personnel services, facilities, supplies and equipment to the Company
to conduct its business. The associated costs related to the service agreement
are allocated to the Company based on methods that management believes are
reasonable, including a review of the nature of such costs and time studies
analyzing the amount of employee compensation costs incurred by the Company. For
the years ended December 31, 1998, 1997, and 1996, the Company incurred expenses
of $63.6 million, $37.1 million and $32.3 million as a result of such
allocations. The allocated costs, however, are only partially reimbursable to
MONY Life by the Company. Accordingly, the Company recorded capital
contributions from MONY Life of $12.5 million, $10.8 million, and $13.4 million
during 1998, 1997 and 1996 respectively. At December 31, 1998 and 1997 the
Company had a payable to MONY Life in connection with this service agreement of
$9.0 million and $10.7 million, respectively, which is reflected in Accounts
Payable and Other Liabilities.
The Company has an investment advisory agreement with MONY Life whereby
MONY Life provides investment advisory services with respect to the investment
and management of the Company's investment portfolio. The amount of expenses
incurred by the Company related to this agreement was $0.9 million; $1.0 million
and $0.7 million for 1998, 1997 and 1996, respectively. In addition, the Company
recorded an intercompany payable of $88,401 and $81,414 at December 31, 1998 and
1997, respectively, related to this agreement which is included in Accounts
payable and other liabilities in the balance sheet.
In addition to the agreements discussed above, the Company has various
other service and investment advisory agreements with MONY Life and affiliates
of the Company. The amount of expenses incurred by the Company related to these
agreements was $2.0 million, $2.6 million and $2.6 million for 1998, 1997 and
1996, respectively. In addition, the Company recorded an intercompany
(receivable)/payable of $(0.2) million and $0.3 million at December 31, 1998 and
1997, respectively, related to these agreements.
4. DEFERRED POLICY ACQUISITION COSTS:
Policy acquisition costs deferred and amortized in 1998, 1997 and 1996 are
as follows ($ in millions):
<TABLE>
<CAPTION>
1998 1997 1996
------ ------ ------
<S> <C> <C> <C>
Balance, beginning of year.................................. $281.6 $262.3 $219.4
Costs deferred during the year.............................. 75.0 73.8 68.5
Amortized to expense during the year........................ (35.5) (46.3) (36.6)
Effect on DAC from unrealized gains (losses) (see Note 2)... (2.5) (8.2) 11.0
------ ------ ------
Balance, end of year........................................ $318.6 $281.6 $262.3
====== ====== ======
</TABLE>
5. FEDERAL INCOME TAXES:
The Company files a consolidated federal income tax return with MONY Life
and MONY Life's other subsidiaries. Federal income taxes have been calculated in
accordance with the provisions of the Internal
F-22
<PAGE> 87
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
Revenue Code of 1986, as amended. A summary of the Federal income tax expense
(benefit) is presented below ($ in millions):
<TABLE>
<CAPTION>
1998 1997 1996
----- ----- -----
<S> <C> <C> <C>
Federal income tax expense (benefit):
Current................................................... $ 8.8 $17.9 $15.2
Deferred.................................................. (1.1) (13.4) (10.6)
----- ----- -----
Total............................................. $ 7.7 $ 4.5 $ 4.6
===== ===== =====
</TABLE>
Federal income taxes reported in the statements of income may be different
from the amounts determined by multiplying the earnings before federal income
taxes by the statutory federal income tax rate of 35%. The sources of the
difference and the tax effects of each are as follows ($ in millions):
<TABLE>
<CAPTION>
1998 1997 1996
----- ----- -----
<S> <C> <C> <C>
Tax at statutory rate....................................... $ 7.7 $ 4.5 $ 4.6
Dividends received deduction................................ (1.1) (1.2) (0.8)
Other....................................................... 1.1 1.2 0.8
----- ----- -----
Provision for income taxes.................................. $ 7.7 $ 4.5 $ 4.6
===== ===== =====
</TABLE>
The Company's federal income tax returns for years through 1991 have been
examined by the Internal Revenue Service ("IRS"). No material adjustments were
proposed by the IRS as a result of these examinations. In the opinion of
management, adequate provision has been made for any additional taxes which may
become due with respect to open years.
The components of deferred tax liabilities and assets at December 31, 1998
and 1997 are as follows ($ in millions):
<TABLE>
<CAPTION>
1998 1997
------ -----
<S> <C> <C>
Deferred policy acquisition costs........................... $ 91.8 $81.7
Fixed maturities............................................ 12.0 9.6
Other (net)................................................. 4.4 5.1
------ -----
Total deferred tax liabilities.............................. 108.2 96.4
------ -----
Policyholder and separate account liabilities............... 93.7 88.8
Real estate and mortgages................................... 0.8 0.1
------ -----
Total deferred tax assets................................... 94.5 88.9
------ -----
Net deferred tax liability.................................. $ 13.7 $ 7.5
====== =====
</TABLE>
The Company is required to establish a valuation allowance for any portion
of the deferred tax asset that management believes will not be realized. In the
opinion of management, it is more likely than not that it will realize the
benefit of the deferred tax assets and, therefore, no such valuation allowance
has been established.
F-23
<PAGE> 88
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
6. INVESTMENT INCOME, REALIZED AND UNREALIZED INVESTMENT GAINS (LOSSES), AND
OTHER COMPREHENSIVE INCOME:
Net investment income for the years ended December 31, 1998, 1997 and 1996
was derived from the following sources ($ in millions):
<TABLE>
<CAPTION>
1998 1997 1996
----- ------ ------
<S> <C> <C> <C>
NET INVESTMENT INCOME
Fixed maturities............................................ $77.2 $ 78.4 $ 76.7
Mortgage loans.............................................. 11.0 12.1 14.7
Real estate................................................. 0.5 2.0 3.7
Policy loans................................................ 3.6 3.5 2.7
Other investments (including cash & cash equivalents)....... 5.3 6.4 7.3
----- ------ ------
Total investment income..................................... 97.6 102.4 105.1
Investment expenses......................................... 3.0 3.3 3.1
----- ------ ------
Net investment income....................................... $94.6 $ 99.1 $102.0
===== ====== ======
</TABLE>
Net realized gains (losses) on investments for the years ended December 31,
1998, 1997 and 1996 are summarized as follows ($ in millions):
<TABLE>
<CAPTION>
1998 1997 1996
----- ------ ------
<S> <C> <C> <C>
NET REALIZED GAINS (LOSSES) ON INVESTMENTS
Fixed maturities............................................ $ 2.6 $ (0.7) $ 0.1
Mortgage loans.............................................. 1.4 2.4 0.7
Real estate................................................. 2.5 0.5 0.8
Other invested assets....................................... 0.6 0.5 (0.7)
----- ------ ------
Net realized gains on investments........................... $ 7.1 $ 2.7 $ 0.9
===== ====== ======
</TABLE>
The net change in unrealized investment gains (losses) represents the only
component of other comprehensive income for the years ended December 31, 1998,
1997, and 1996. Following is a summary of the change in unrealized investment
gains (losses) net of related deferred income taxes and adjustment for deferred
policy acquisition costs (see Note 2), which are reflected in Accumulated Other
Comprehensive Income for the periods presented ($ in millions):
<TABLE>
<CAPTION>
1998 1997 1996
----- ----- ------
<S> <C> <C> <C>
CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Fixed maturities............................................ $ 4.8 $13.2 $(20.4)
Other....................................................... (0.6) 0.1 0.5
----- ----- ------
Subtotal.................................................... 4.2 13.3 (19.9)
Effect on unrealized gains (losses) on investments
attributable to:
DAC....................................................... (2.5) (8.2) 11.0
Deferred federal income taxes............................. (0.6) (1.8) 3.1
----- ----- ------
Change in unrealized gains (losses) on investments, net..... $ 1.1 $ 3.3 $ (5.8)
===== ===== ======
</TABLE>
F-24
<PAGE> 89
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
The following table sets forth the reclassification adjustments required
for the years ended December 31, 1998, 1997, and 1996 to avoid double-counting
in comprehensive income items that are included as part of net income for a
period that also had been part of other comprehensive income in earlier periods
($ in millions):
<TABLE>
<CAPTION>
1998 1997 1996
----- ----- ------
<S> <C> <C> <C>
RECLASSIFICATION ADJUSTMENTS
Unrealized gains (losses) on investments arising during
period.................................................... $ 1.9 $ 3.3 $ (5.8)
Reclassification adjustment for gains included in net
income.................................................... (0.8) 0.0 0.0
----- ----- ------
Unrealized gains (losses) on investments, net of
reclassification adjustments.............................. $ 1.1 $ 3.3 $ (5.8)
===== ===== ======
</TABLE>
Unrealized gains (losses) on investments arising during the period reported
in the above table for the years ended December 31, 1998, 1997 and 1996 are net
of income tax expense (benefit) of $0.1 million, $1.8 million, and ($3.1)
million, respectively, and ($0.5) million, ($8.2) million, and $11.0 million,
respectively, relating to the effect of such unrealized gains (losses) on DAC.
Reclassification adjustments reported in the above table for the years
ended December 31, 1998, 1997 and 1996 are net of income tax expense (benefit)
of $0.5 million, $0.0 million and $0.0 million, respectively, and ($2.0)
million, $0.0 million and $0.0 million, respectively, relating to the effect of
such amounts on DAC.
7. INVESTMENTS:
Fixed Maturity Securities Available-For-Sale:
The amortized cost, gross unrealized gains and losses, and estimated fair
value of fixed maturity securities available for sale as of December 31, 1998
and December 31, 1997 are as follows ($ in millions):
<TABLE>
<CAPTION>
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
------------------- ------------- ----------- -------------------
1998 1997 1998 1997 1998 1997 1998 1997
-------- -------- ----- ----- ---- ---- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
US Treasury securities and obligations of
U.S government agencies................. $ 5.3 $ 5.9 $ 0.0 $ 0.0 $0.0 $0.0 $ 5.3 $ 5.9
Collateralized mortgage obligations:
Government agency-backed................ 106.3 123.7 1.9 2.2 0.0 0.1 108.2 125.8
Non-agency backed....................... 37.7 40.6 1.8 2.0 0.0 0.1 39.5 42.5
Other asset-backed securities:
Government agency-backed................ 0.1 0.2 0.0 0.0 0.0 0.0 0.1 0.2
Non-agency backed....................... 83.4 87.5 1.9 2.1 0.3 0.1 85.0 89.5
Utilities................................. 120.9 123.8 5.0 3.1 2.7 0.2 123.2 126.7
Corporate bonds........................... 645.8 676.5 23.2 18.0 0.8 1.7 668.2 692.8
Affiliates................................ 14.7 16.0 0.0 0.0 0.0 0.0 14.7 16.0
-------- -------- ----- ----- ---- ---- -------- --------
Total............................ $1,014.2 $1,074.2 $33.8 $27.4 $3.8 $2.2 $1,044.2 $1,099.4
======== ======== ===== ===== ==== ==== ======== ========
</TABLE>
The carrying value of the Company's fixed maturity securities at December
31, 1998 and 1997 is net of adjustments for impairments in value deemed to be
other than temporary of $0.5 million and $0.9 million, respectively.
At December 31, 1998 and 1997, there were no fixed maturity securities
which were non-income producing for the twelve months preceding such dates.
The Company classifies fixed maturity securities which, (i) are in default
as to principal or interest payments, (ii) are to be restructured pursuant to
commenced negotiations, (iii) went into bankruptcy subsequent to acquisition or
(iv) are deemed to have other than temporary impairments to value, as "problem
F-25
<PAGE> 90
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
fixed maturity securities." At December 31, 1998 and 1997, the carrying value of
problem fixed maturities held by the Company was $4.4 million and $4.6 million,
respectively. In addition, at December 31, 1998, the Company held $2.7 million
of fixed maturity securities which had been restructured. There were no fixed
maturity securities which were restructured at December 31, 1997. Gross interest
income that would have been recorded in accordance with the original terms of
restructured fixed maturity securities amounted to $0.3 million for the year
ended December 31, 1998. Gross interest income on these fixed maturity
securities included in net investment income aggregated $0.5 million for the
year ended December 31, 1998.
The amortized cost and estimated fair value of fixed maturity securities,
by contractual maturity dates, (excluding scheduled sinking funds) as of
December 31, 1998 are as follows ($ in millions):
<TABLE>
<CAPTION>
1998
-----------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
--------- ----------
<S> <C> <C>
Due in one year or less..................................... $ 90.0 $ 90.4
Due after one year through five years....................... 306.8 315.5
Due after five years through ten years...................... 284.7 299.2
Due after ten years......................................... 105.2 106.3
-------- --------
Subtotal.......................................... 786.7 811.4
Mortgage- and asset-backed securities....................... 227.5 232.8
-------- --------
Total............................................. $1,014.2 $1,044.2
======== ========
</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 fixed maturity securities during 1998, 1997 and 1996
were $45.1 million, $31.3 million and $13.3 million, respectively. Gross gains
of $0.7 million, $0.5 million, and $0.2 million and gross losses of $0.1
million, $1.1 million, and $0.3 million were realized on these sales,
respectively.
8. MORTGAGE LOANS ON REAL ESTATE AND REAL ESTATE:
Mortgage loans on real estate at December 31, 1998 and 1997 consist of the
following ($ in millions):
<TABLE>
<CAPTION>
1998 1997
------ ------
<S> <C> <C>
Commercial mortgage loans................................... $ 28.5 $ 35.5
Agricultural and other loans................................ 93.5 99.5
------ ------
Total loans................................................. 122.0 135.0
Less: valuation allowances.................................. (1.9) (2.5)
------ ------
Mortgage loans, net of valuation allowances................. $120.1 $132.5
====== ======
</TABLE>
An analysis of the valuation allowances for 1998, 1997 and 1996 is as
follows ($ in millions):
<TABLE>
<CAPTION>
1998 1997 1996
----- ----- -----
<S> <C> <C> <C>
Balance, beginning of year.................................. $ 2.5 $ 4.6 $ 5.1
Increase (decrease) in allowance............................ (0.4) (0.3) (0.5)
Reduction due to pay downs and pay offs..................... 0.0 (1.8) 0.0
Transfers to real estate.................................... (0.2) 0.0 0.0
----- ----- -----
Balance, end of year........................................ $ 1.9 $ 2.5 $ 4.6
===== ===== =====
</TABLE>
F-26
<PAGE> 91
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
Impaired mortgage loans along with related valuation allowances were as
follows ($ in millions):
<TABLE>
<CAPTION>
1998 1997
----- -----
<S> <C> <C>
Investment in impaired mortgage loans (before valuation
allowances):
Loans that have valuation allowances........................ $ 9.4 $ 9.9
Loans that do not have valuation allowances................. 5.8 6.5
----- -----
Subtotal.......................................... 15.2 16.4
Valuation allowances........................................ (0.5) (0.9)
----- -----
Impaired mortgage loans, net of valuation
allowances....................................... $14.7 $15.5
===== =====
</TABLE>
Impaired mortgage loans that do not have valuation allowances are loans
where the net present value of the expected future cash flows related to the
loan or the fair value of the collateral equals or exceeds the recorded
investment in the loan. Such loans primarily consist of restructured loans or
loans on which impairment writedowns were taken prior to the adoption of SFAS
No. 114, "Accounting by Creditors for Impairment of a Loan".
During 1998 and 1997, the average recorded investment in impaired mortgage
loans was approximately $15.1 million and $16.3 million, respectively. During
1998, 1997, and 1996, the Company recognized $1.1 million, $1.1 million, and
$1.4 million, respectively, of interest income on impaired loans.
At December 31, 1998 and 1997, there were no mortgage loans which were
non-income producing for the twelve months preceding such dates.
At December 31, 1998 and 1997, the Company had restructured mortgage loans
of $14.3 million and $13.5 million, respectively. Interest income of $1.0
million, $1.0 million, and $1.2 million was recognized on restructured mortgage
loans in 1998, 1997, and 1996, respectively. Gross interest income on these
loans that would have been recorded in accordance with the original terms of
such loans amounted to approximately $1.4 million in 1998, 1997 and 1996.
The following table summarizes the Company's real estate at December 31,
1998 and 1997 ($ in millions):
<TABLE>
<CAPTION>
AS OF DECEMBER 31,
------------------
1998 1997
------ ------
<S> <C> <C>
Real estate to be disposed of(1)............................ $ -- $30.3
Impairment writedowns....................................... -- (8.9)
Valuation allowance......................................... -- (2.2)
----- -----
Carrying value of real estate to be disposed of............. $ -- $19.2
===== =====
Real estate held for investment(2).......................... $10.2 $ 3.3
Impairment writedowns....................................... (1.9) (0.5)
----- -----
Carrying value of real estate held for investment........... $ 8.3 $ 2.8
===== =====
</TABLE>
- ---------------
(1) Amounts presented as of December 31, 1998 and 1997 are net of $0.0 million
and $8.9 million, respectively, relating to impairments taken upon
foreclosure of mortgage loans.
(2) Amounts presented as of December 31, 1998 and 1997 are net of $1.6 million
and $0.6 million, respectively, relating to impairments taken upon
foreclosure of mortgage loans.
F-27
<PAGE> 92
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
An analysis of the valuation allowances relating to real estate classified
as to be disposed of for the years ended December 31, 1998, 1997 and 1996 is as
follows ($ in millions):
<TABLE>
<CAPTION>
1998 1997 1996
----- ----- -----
<S> <C> <C> <C>
Balance, beginning of year.................................. $ 2.2 $ 2.2 $ 2.5
Increase (decrease) due to/from transfers of properties to
real estate to be disposed of during the year............. (0.3) 1.2 0.6
Increases (decreases) in valuation allowances from the end
of the prior period on properties still held for
disposal.................................................. 0.0 (0.2) (0.2)
Decreases as a result of sales.............................. (1.9) (1.0) (0.7)
----- ----- -----
Balance, end of year........................................ $ 0.0 $ 2.2 $ 2.2
===== ===== =====
</TABLE>
Real estate is net of accumulated depreciation of $1.9 million and $2.8
million for 1998 and 1997, respectively, and depreciation expense recorded was
$0.6 million, $0.4 million and $0.8 million for the years ended December 31,
1998, 1997 and 1996, respectively.
At December 31, 1998 and 1997, there was no real estate which was
non-income producing for the twelve months preceding such dates.
The carrying value of impaired real estate as of December 31, 1998 and 1997
was $8.3 million and $2.8 million, respectively. The depreciated cost of such
real estate as of December 31, 1998 and 1997 was $10.2 million and $3.3 million
before impairment writedowns of $1.9 million and $0.5 million, respectively. The
aforementioned impairments occurred primarily as a result of low occupancy
levels and other market related factors. There were no losses recorded during
1998, 1997, and 1996 related to impaired real estate.
9. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS:
The estimated fair values of the Company's financial instruments
approximate their carrying amounts. The methods and assumptions utilized in
estimating the fair values of the Company's financial instruments are summarized
as follows:
Fixed Maturities
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 values of mortgage loans are 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 mortgages 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.
F-28
<PAGE> 93
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
Separate Account Assets and Liabilities
The estimated fair value of assets held in Separate Accounts is based on
quoted market prices. The fair value of liabilities related to Separate Accounts
is the amount payable on demand, which includes surrender charges.
Investment-Type Contracts
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.
10. REINSURANCE:
Life insurance business is ceded on a yearly renewable term basis under
various reinsurance contracts. The Company's general practice is to retain no
more than $0.5 million of risk on any one person for individual products and
$0.5 million for last survivor products.
The following table summarizes the effect of reinsurance for the years
indicated ($ in millions):
<TABLE>
<CAPTION>
1998 1997 1996
----- ----- -----
<S> <C> <C> <C>
Direct premiums............................................. $ 2.5 $ 0.1 $ 0.0
Reinsurance ceded........................................... (0.8) 0.0 0.0
----- ----- -----
Net premiums........................................... $ 1.7 $ 0.1 $ 0.0
===== ===== =====
Universal life and investment type product policy fee income
ceded..................................................... $17.4 $16.1 $14.6
===== ===== =====
Policyholders' benefits ceded............................... $21.8 $12.1 $17.6
===== ===== =====
</TABLE>
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.
11. OFF-BALANCE SHEET RISK AND CONCENTRATION OF CREDIT RISK:
Financial Instruments with Off-Balance Sheet Risk:
Pursuant to a securities lending agreement with a major financial
institution, the Company from time to time lends securities to approved
borrowers. At December 31, 1998 and 1997, securities loaned by the Company under
this agreement had a carrying value of approximately $4.1 million and $0.1
million, respectively. The minimum collateral on securities loaned is 102
percent of the market value of the loaned securities. Such securities are marked
to market on a daily basis and the collateral is correspondingly increased or
decreased.
Concentration of Credit Risk:
At December 31, 1998 and 1997, the Company had no single investment or
series of investments with a single issuer, (excluding US Treasury securities
and obligations of U.S. government agencies) exceeding 1.5% of total cash and
invested assets.
The Company's fixed maturity securities are diversified by industry type.
The industries that comprise 10% or more of the carrying value of the fixed
maturity securities at December 31, 1998 are Consumer Goods and Services of
$138.5 million (13.3%), Non-Government Asset/Mortgage-Backed of $124.5 million
F-29
<PAGE> 94
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
(11.9%), Public Utilities of $123.2 million (11.8%), Financial Services of
$119.8 million (11.5%), Other Manufacturing of $116.4 million (11.1%),
Government and Agencies of $113.6 million (10.9%), and Energy of $112.1 million
(10.7%).
At December 31, 1997 the industries that comprise 10% or more of the
carrying value Company's fixed maturity securities were Financial Services of
$136.1 million (12.4%), Non-Government Asset/Mortgage Backed of $132.0 million
(12.0%), Government and Agencies of $131.9 million (12.0%), Energy of $131.2
million (11.9%), Public Utilities of $126.7 million (11.5%), and Consumer Goods
and Services of $121.4 million (11.1%).
The Company holds below investment grade fixed maturity securities with a
carrying value of $52.3 million at December 31, 1998. These investments consist
mostly of privately issued bonds which are monitored by the Company through
extensive internal analysis of the financial condition of the issuers and which
generally include protective debt covenants. At December 31, 1997, the carrying
value of the Company's investments in below investment grade fixed maturity
securities amounted to $79.2 million.
The Company has investments in commercial and agricultural mortgage loans
and real estate (including partnerships). The locations of property
collateralizing mortgage loans and real estate investment carrying values at
December 31, 1998 and 1997 are as follows ($ in millions):
<TABLE>
<CAPTION>
1998 1997
--------------- ---------------
<S> <C> <C> <C> <C>
GEOGRAPHIC REGION
West.................................................... $ 54.9 42.7% $ 53.4 34.5%
Mountain................................................ 25.9 20.2 34.1 22.1
Southwest............................................... 14.6 11.4 16.2 10.5
Northeast............................................... 13.9 10.8 24.0 15.5
Midwest................................................. 13.2 10.3 14.5 9.4
Southeast............................................... 5.9 4.6 12.3 8.0
------ ----- ------ -----
Total.............................................. $128.4 100.0% $154.5 100.0%
====== ===== ====== =====
</TABLE>
The states with the largest concentrations of mortgage loans and real
estate investments at December 31, 1998 are: California, $31.3 million (24.4%);
Washington, $17.0 million (13.2%); New York, $13.9 million (10.8%); Texas, $9.7
million (7.6%); Idaho, $8.1 million (6.3%); Missouri, $7.4 million (5.8%); and
Oregon, $6.6 million (5.1%).
As of December 31, 1998 and 1997, the real estate and mortgage loan
portfolio was also diversified as follows ($ in millions):
<TABLE>
<CAPTION>
1998 1997
--------------- ---------------
<S> <C> <C> <C> <C>
PROPERTY TYPE
Agricultural.............................................. $ 92.5 72.0% $ 98.5 63.7%
Office buildings.......................................... 14.9 11.6 23.1 15.0
Retail.................................................... 6.0 4.7 9.5 6.1
Hotel..................................................... 5.1 4.0 8.6 5.6
Industrial................................................ 4.6 3.6 7.2 4.7
Other..................................................... 3.9 3.0 4.3 2.8
Apartment Buildings....................................... 1.4 1.1 3.3 2.1
------ ----- ------ -----
Total................................................ $128.4 100.0% $154.5 100.0%
====== ===== ====== =====
</TABLE>
F-30
<PAGE> 95
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
12. COMMITMENTS AND CONTINGENCIES:
(a) In late 1995 and thereafter, a number of purported class actions were
commenced in various state and federal courts against MONY Life and the Company
("the Companies") alleging that the Companies engaged in deceptive sales
practices in connection with the sale of whole and/or universal life insurance
policies in the 1980s and 1990s. 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/or violation of state insurance and/or deceptive business
practice laws). Plaintiffs in these cases (including the Goshen case discussed
below) seek primarily equitable relief (e.g., reformation, specific performance,
mandatory injunctive relief prohibiting the Company from canceling policies for
failure to make required premium payments, imposition of a constructive trust
and/or creation of a claims resolution facility to adjudicate any individual
issues remaining after resolution of all class-wide issues) as opposed to
compensatory damages, although they also seek compensatory damages in
unspecified amounts. The Company has answered the complaints in each action
(except for one recently filed action and another being voluntarily held in
abeyance), has denied any wrongdoing and has 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 Company filed a motion to dismiss or, alternatively, for summary
judgment on all counts of the complaint. All of the other putative class actions
(with one exception discussed below) have been 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. The Massachusetts District
Court in the Multidistrict Litigation has entered an order essentially holding
all of the federal cases 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' on the merits.
In addition to the foregoing, from time to time the Company is a party to
litigation and arbitration proceedings in the ordinary course of its business,
none of which is expected to have a material adverse effect on the Company.
Insurance companies are subject to assessments, up to statutory limits, by
state guaranty funds for losses of policyholders of insolvent insurance
companies. In the opinion of management, such assessments will not have a
material adverse effect on the financial position and the results of operations
of the Company.
At December 31, 1998, the Company had commitments to issue $9.7 million of
fixed rate agricultural loans with periodic interest rate reset dates. The
initial interest rates on such loans range from approximately 6.75% to 7.50%.
The Company had no private fixed maturity securities commitments outstanding as
of December 31, 1998. In addition, at that date the Company had no outstanding
commitments to issue any fixed rate commercial mortgage loans.
(b) The order, referred to above, by the New York State Supreme Court on
October 21, 1997 was affirmed by the New York State Appellate Division, First
Department on March 18, 1999. All actions before the United States District
Court for the District of Massachusetts are still pending. In addition, on or
about February 25, 1999, a purported class action was filed against the Company
in Kentucky State Court covering policyholders who purchased individual
universal life insurance policies from the Company after January 1, 1988
claiming breach of contract and violations of the Kentucky Consumer Protection
Act. On March 26, 1999, the Company removed that action to the United States
District Court for the Eastern District of Kentucky, requested the Judicial
Panel on the multidistrict litigation to transfer the action to the
multidistrict
F-31
<PAGE> 96
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
litigation in the District of Massachusetts and sought a stay of further
proceedings in the Kentucky District Court pending a determination on the
multidistrict transfer. The Company intends vigorously to defend that
litigation. Due to the early stage of this litigation no determination can be
made as to whether the Company will incur any loss with respect to this matter.
13. STATUTORY FINANCIAL INFORMATION AND REGULATORY RISK-BASED CAPITAL
DISCLOSURE:
Financial statements of the Company prepared in accordance with SAP for
filing with the Arizona State Insurance Department (the "Department") differ
from financial statements of the Company prepared in accordance with GAAP. The
principal differences result from the following: (i) acquisition costs are
charged to operations as incurred under SAP rather than being amortized over the
expected life of the contracts under GAAP; (ii) certain assets designated as
"non-admitted assets" are charged directly to statutory surplus under SAP but
are reflected as assets under GAAP; (iii) federal income taxes are provided only
on taxable income for which income taxes are currently payable under SAP,
whereas under GAAP deferred income taxes are recognized; (iv) an interest
maintenance reserve ("IMR") and asset valuation reserve ("AVR") are computed
based on specific statutory requirements and recorded under SAP, whereas under
GAAP, such reserves are not recognized; (v) premiums for universal life and
investment-type products are recognized as revenue when due under SAP, whereas
under GAAP, such amounts are recorded as deposits and not included in the
Company's revenues; (vi) future policy benefit reserves are based on specific
statutory requirements regarding mortality and interest, without consideration
of withdrawals, and are reported net of reinsurance under SAP, whereas, under
GAAP, such reserves are calculated using a net level premium method based on
actuarial assumptions equal to guaranteed mortality rates and are reported gross
of reinsurance; (vii) investments in bonds are generally carried at amortized
cost under SAP, whereas under GAAP, such investments are classified as
"available for sale" and reported at estimated fair value; and (viii) methods
used for calculating real estate and mortgage loan impairments, valuation
allowances, and real estate depreciation under GAAP are different from those
permitted under SAP.
The Company is restricted as to the amounts it may pay as dividends to MONY
Life. Under the Arizona Insurance Law, the Arizona Superintendent has broad
discretion to determine whether the financial condition of a stock life
insurance company would support the payment of dividends to its shareholders.
Under the insurance laws of the State of Arizona, the Company's state of
domicile, dividends or distributions in a twelve-month period exceeding the
lesser of either 10 percent of an insurance company's surplus or 100% of net
income, excluding realized gains, for the previous calendar year are generally
considered extraordinary and require such approval. Insurance Department has
established informal guidelines for the Superintendent's determinations which
focus upon, among other things, the overall financial condition and
profitability of the insurer under SAP.
Set forth below are reconciliations of the Company's combined capital and
surplus and the net change in capital and surplus, determined in accordance with
SAP, with its equity and net income reported in accordance with GAAP as of and
for each year ended December 31, 1998, 1997, and 1996, respectively. The
reconciliations for 1996 also present the effect of restating previously
reported amounts as of and for the year ended December 31, 1996 for the adoption
of the Interpretation and the Standard (see Note 2).
<TABLE>
<CAPTION>
1998 1997 1996
-------- -------- --------
($ IN MILLIONS)
<S> <C> <C> <C>
Capital and surplus......................................... $ 146.8 $ 133.2 $ 121.8
AVR......................................................... 15.0 16.3 17.9
-------- -------- --------
Capital and surplus, and AVR................................ 161.8 149.5 139.7
</TABLE>
F-32
<PAGE> 97
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
1998 1997 1996
-------- -------- --------
($ IN MILLIONS)
<S> <C> <C> <C>
Adjustments:
Future policy benefits and policyholders' account
balances............................................... (226.3) (207.3) (173.2)
Deferred policy acquisition costs......................... 318.6 281.6 262.3
Valuation of investments:
Real estate............................................ 2.7 2.4 (0.5)
Mortgage loans......................................... (1.8) (2.3) (4.7)
Fixed maturity securities.............................. 29.5 24.7 12.0
Other.................................................. 5.4 4.0 3.6
Deferred federal income taxes............................. (13.7) (7.5) (13.3)
Other, net................................................ 13.6 16.9 13.7
-------- -------- --------
GAAP equity................................................. $ 289.8 $ 262.0 $ 239.6
======== ======== ========
Net change in capital and surplus........................... $ 13.6 $ 11.4 $ 6.2
Change in AVR............................................... (1.3) (1.6) 3.9
-------- -------- --------
Net change in capital and surplus, and AVR.................. 12.3 9.8 10.1
Adjustments:
Future policy benefits and policyholders' account
balances............................................... (19.0) (34.1) (25.7)
Deferred policy acquisition costs......................... 39.4 27.5 31.9
Valuation of investments
Real estate............................................ 0.3 2.9 1.5
Mortgage loans......................................... 0.5 2.4 0.4
Fixed maturity securities.............................. 0.0 (0.5) (1.8)
Other.................................................. 1.4 0.4 0.5
Deferred federal income taxes............................. 1.1 13.4 10.6
Other, net................................................ (21.8) (13.5) (19.0)
-------- -------- --------
Net income.................................................. $ 14.2 $ 8.3 $ 8.5
======== ======== ========
</TABLE>
The difference between statutory basis "net income" and the "net change in
capital and surplus, and AVR" reflected in the reconciliation above primarily
relates to the AVR, unrealized gains (losses) on equity securities, non-admitted
assets, and certain contingency provisions. which for statutory reporting
purposes are charged directly to surplus and are not reflected in statutory
basis net income. Statutory net income reported by the Company for the years
ended December 31, 1998, 1997, and 1996 was $11.1 million, $9.7 million, and
$8.0 million, respectively.
In March 1998, the National Association of Insurance Commissioners ("NAIC")
voted to adopt its Codification of Statutory Accounting Principles project
(referred to hereafter as "codification"). Codification is a modified form of
statutory accounting principles that will result in changes to the current NAIC
Accounting Practices and Procedures Manual applicable to insurance enterprises.
Although adoption of codification by all states is not a certainty, the NAIC has
recommended that all states enact codification as soon as practicable with an
effective date of January 1, 2001. It is currently anticipated that codification
will become a NAIC state accreditation requirement starting in 2002. In
addition, the American Institute of Certified Public Accountants and the NAIC
have agreed to continue to allow the use of certain permitted
F-33
<PAGE> 98
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
accounting practices when codification becomes effective in 2001. Any accounting
differences from codification principles, however, must be disclosed and
quantified in the footnotes to the audited financial statements. Therefore,
codification will likely result in changes to what are currently considered
prescribed statutory insurance accounting practices.
Each insurance company's state of domicile imposes minimum risk-based
capital requirements. The formulas for determining the amount of risk-based
capital specify various weighting factors that are applied to financial balances
or various levels of activity based on the perceived degree of risk. Regulatory
compliance is determined by a ratio of the Company's regulatory total adjusted
capital, as defined by the NAIC, to its authorized control level risk-based
capital, as defined by the NAIC. Companies below specific trigger points or
ratios are classified within certain levels, each of which requires specified
corrective action. The Company exceeded the minimum risk based capital
requirements.
As part of their routine regulatory oversight, the Department recently
completed an examination of the Company for each of the three years in the
period ended December 31, 1996. The report did not cite any matters which will
result in a material effect on the Company's financial condition or results of
operations.
F-34
<PAGE> 99
APPENDIX A
DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
<TABLE>
<CAPTION>
APPLICABLE
ATTAINED AGE PERCENTAGE
- ------------ ----------
<S> <C>
40 and Under................................................ 250%
41.......................................................... 243
42.......................................................... 236
43.......................................................... 229
44.......................................................... 222
45.......................................................... 215
46.......................................................... 209
47.......................................................... 203
48.......................................................... 197
49.......................................................... 191
50.......................................................... 185
51.......................................................... 178
52.......................................................... 171
53.......................................................... 164
54.......................................................... 157
55.......................................................... 150
56.......................................................... 146
57.......................................................... 142
58.......................................................... 138
59.......................................................... 134
60.......................................................... 130
61.......................................................... 128
62.......................................................... 126
63.......................................................... 124
64.......................................................... 122
65.......................................................... 120
66.......................................................... 119
67.......................................................... 118
68.......................................................... 117
69.......................................................... 116
70.......................................................... 115
71.......................................................... 113
72.......................................................... 111
73.......................................................... 109
74.......................................................... 107
75-90....................................................... 105
91.......................................................... 104
92.......................................................... 103
93.......................................................... 102
94-100...................................................... 101
</TABLE>
A-1
<PAGE> 100
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 101
APPENDIX B
MONTHLY PER $1,000 SPECIFIED AMOUNT FACTORS
<TABLE>
<CAPTION>
ISSUE FACTOR
AGE PER $1,000
- ----- ----------
<S> <C>
0-17........................................................ $0.07
18-36....................................................... 0.08
37.......................................................... 0.09
38.......................................................... 0.09
39.......................................................... 0.10
40.......................................................... 0.10
41.......................................................... 0.10
42.......................................................... 0.11
43.......................................................... 0.11
44.......................................................... 0.12
45.......................................................... 0.12
46.......................................................... 0.12
47.......................................................... 0.13
48.......................................................... 0.13
49.......................................................... 0.14
50.......................................................... 0.14
51.......................................................... 0.14
52.......................................................... 0.15
53.......................................................... 0.15
54.......................................................... 0.16
55.......................................................... 0.16
56.......................................................... 0.16
57.......................................................... 0.17
58.......................................................... 0.17
59.......................................................... 0.18
60.......................................................... 0.18
61.......................................................... 0.18
62.......................................................... 0.19
63.......................................................... 0.19
64.......................................................... 0.20
65.......................................................... 0.20
66.......................................................... 0.20
67.......................................................... 0.21
68.......................................................... 0.21
69.......................................................... 0.22
70.......................................................... 0.22
71.......................................................... 0.22
72.......................................................... 0.23
73.......................................................... 0.23
74.......................................................... 0.24
75.......................................................... 0.24
76.......................................................... 0.24
77.......................................................... 0.25
78.......................................................... 0.25
79.......................................................... 0.26
80.......................................................... 0.26
81.......................................................... 0.26
82.......................................................... 0.27
83.......................................................... 0.27
84.......................................................... 0.28
85.......................................................... 0.28
</TABLE>
B-1
<PAGE> 102
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 103
APPENDIX C
GUARANTEED DEATH BENEFIT RIDER
MONTHLY GUARANTEE PREMIUM FOR GUARANTEED DEATH
BENEFIT RIDER WITH TEN YEAR/AGE 70 GUARANTEE PERIOD
<TABLE>
<CAPTION>
MONTHLY GUARANTEE
PREMIUM
-----------------
<S> <C>
Specified Amount = $200,000
Male age 45 Preferred Nonsmoker Death Benefit Option 1...... $229.17
Female age 45 Preferred Nonsmoker Death Benefit Option 1.... $174.00
Male age 45 Standard Smoker Death Benefit Option 1.......... $379.83
Male age 45 Preferred Nonsmoker Death Benefit Option 2...... $229.17
Male age 35 Preferred Nonsmoker Death Benefit Option 1...... $155.83
Male age 55 Preferred Nonsmoker Death Benefit Option 1...... $370.83
</TABLE>
C-1
<PAGE> 104
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 105
APPENDIX D
ILLUSTRATIONS OF DEATH PROCEEDS, FUND VALUES AND
CASH VALUES, AND PREMIUM OUTLAYS
The following tables illustrate how the key financial elements of the
Policy work, specifically, how the death benefits, Fund Values and Cash Values
could vary over an extended period of time. In addition, each table compares
these values with premiums paid accumulated with interest.
The Policies illustrated include the following:
<TABLE>
<CAPTION>
BENEFIT SPECIFIED SEE
SEX AGE SMOKER OPTION AMOUNT PAGE
--- --- ------ ------- --------- ----
<S> <C> <C> <C> <C> <C>
Male 45 Preferred Non-smoker 1 $200,000 D- 5
Female 45 Preferred Non-smoker 1 $200,000 D-15
Male 45 Standard Smoker 1 $200,000 D-25
Male 45 Preferred Non-smoker 2 $200,000 D-34
Male 35 Preferred Non-smoker 1 $200,000 D-44
Male 55 Preferred Non-smoker 1 $200,000 D-54
</TABLE>
The tables show how Death Proceeds, Fund Values and Cash Values of a
hypothetical Policy could vary over an extended period of time if the
Subaccounts of the Variable Account had constant hypothetical gross annual
investment returns of 0%, 6% or 12% over the periods indicated in each table.
The values will differ from those shown in the tables if the annual investment
returns are not absolutely constant. That is, the death benefits, Fund Values
and Cash Values will be different if the returns averaged 0%, 6% or 12% over a
period of years but went above or below those figures in individual Policy
years. These illustrations assume that no Policy Loan has been taken. The
amounts shown would differ if unisex rates were used.
The amounts shown for Death Proceeds, Fund Values and Cash Values reflect
the fact the net investment return on the Policy is lower than the gross
investment return on the Subaccounts of the Variable Account. This results from
the charges levied against the Subaccounts of the Variable Account (i.e., the
mortality and expense risk charge) as well as the premium loads, administrative
charges and Surrender Charges. The difference between the Fund Value and the
Cash Value in the first 14 years is the Surrender Charge.
The tables illustrate cost of insurance and expense charges at both current
rates (which are described under Cost of Insurance, page ) and at the maximum
rates guaranteed in the Policies. The amounts shown at the end of each Policy
year reflect a daily charge against the Funds as well as those assessed against
the Subaccounts. These charges include the charge against the Subaccounts for
mortality and expense risks and the effect on each Subaccount's investment
experience of the charge to Portfolio assets for investment management and
direct expenses. The mortality and expense risk fee is .35% annually on a
guaranteed basis.
The tables also reflect a deduction for a daily investment advisory fee and
for other expenses of the Portfolio at a rate equivalent to an annual rate of
0.75% of the aggregate average daily net assets of the Portfolio. This
hypothetical rate is representative of the average maximum investment advisory
fee and other expenses of the Portfolios applicable to the Subaccounts of the
Variable Account. Actual fees and other expenses vary by Portfolio and may be
subject to agreements by the sponsor to waive or otherwise reimburse each
Portfolio for operating expenses which exceed certain limits. There can be no
assurance that the expense reimbursement arrangements will continue in the
future, and any unreimbursed expenses would be reflected in the values included
on the tables.
The effect of these investment management, direct expenses and mortality
and expense risk charges on a 0% gross rate of return would result in a net rate
of return of -.75%, on 6% it would be 5.25%, and on 12% it would be 11.25%.
The tables assume the deduction of charges including administrative and
sales charges. For each age, there are tables for death benefit Options 1 and 2
and each option is illustrated using current and guaranteed
D-1
<PAGE> 106
policy cost factors. The tables reflect the fact that the Company does not
currently make any charge against the Variable Account for state or federal
taxes. If such a charge is made in the future, it will take a higher rate of
return to produce after-tax returns of 0%, 6% or 12%.
The following are descriptions of Table columns and key terms:
Age: Insured's attained age at the end of the policy year
Premium Outlay: The annualized out-of-pocket premium payments for each
policy year including scheduled and any anticipated unscheduled premium
payments. Premium payments are assumed to be paid at the beginning of each
premium paying period. Amounts of surrenders and loans plus loan interest if
any, are shown on the pages captioned "Premiums, Surrenders and Loans".
Premium Accumulated at 5%: is equal to the premiums compounded at an
annual effective rate of 5% and is shown at the end of the year.
GUARANTEED CHARGES AT 0.00%, 6.00% OR 12.00%
Cash Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds, less
all charges, fees and deductions at their guaranteed maximum. The cash value
also takes into account any loans illustrated, as well as, the applicable
surrender charges that would apply if the policy were surrendered prior to the
end of the first fourteen years.
Fund Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds, less
all charges, fees and deductions at their guaranteed maximum. The Fund Value
DOES NOT take into account the applicable surrender charges that would apply if
the policy were surrendered prior to the end of the first fourteen years.
Death Proceeds: The benefit payable if the insured's death occurs at the
end of the policy year, assuming a 0.00%, 6.00% or 12,00% hypothetical rate of
return on the Funds, less all charges, fees and deductions at their guaranteed
maximums.
CURRENT CHARGES AT 0.00%, 6.00% OR 12.00%
Cash Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds, less
all charges, fees and deductions at the current, non-guaranteed rates. The cash
value also takes into account any loans illustrated, as well as, the applicable
surrender charges that would apply if the policy were surrendered prior to the
end of the first fourteen years.
Fund Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds, less
all charges, fees and deductions at the current, non-guaranteed rates. The Fund
Value DOES NOT take into account the applicable surrender charges that would
apply if the policy were surrendered prior to the end of the first fourteen
years.
Death Proceeds: The benefit payable if the insured's death occurs at the
end of the policy year assuming a 0.00%, 6.00% or 12.00% hypothetical rate of
return on the Funds, less all charges, fees and deductions at the current,
non-guaranteed rates.
The Company will furnish, upon request, a comparable illustration based on
the age and sex of the proposed Insured, standard Premium Class assumptions and
an initial Specified Amount and Scheduled Premium Payments of the applicant's
choice. If a Policy is purchased, an individualized illustration will be
delivered reflecting the Scheduled Premium Payment chosen and the Insured's
actual risk class. After issuance, the Company will provide upon request an
illustration of future Policy benefits based on both guaranteed and current cost
factor assumptions and actual Account Value.
The following is the page of supplemental footnotes to each of the flexible
premium variable life to age 100 numeric summary and standard ledger statements
which follow and which begin on pages B-4.
D-2
<PAGE> 107
STANDARD LEDGER STATEMENT -- SUPPLEMENTAL FOOTNOTE PAGE
MONY CUSTOM EQUITY MASTER
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
MONY LIFE INSURANCE COMPANY OF AMERICA
ADDITIONAL INFORMATION
This policy has been tested for the possibility of classification as a
modified endowment. This test is not a guarantee that a policy will not be
classified as a modified endowment.
This illustration has been checked against federal tax laws relating to
their definition of life insurance and is in compliance based on proposed
premium payments and coverages. Any decrease in specified amount and/or a change
in death benefit option 2 to death benefit option 1 and/or surrenders occurring
in the first 15 years may cause a taxable event. In addition, if the policy is
defined as a modified endowment policy, a loan, surrender, or assignment or
pledge (unless such assignment or pledge is for burial expenses and the maximum
death benefit is not in excess of $25,000) may be considered a taxable
distribution and a ten percent penalty may be added to any tax on the
distribution. Please consult your tax advisor for advice.
GUIDELINE PREMIUMS
<TABLE>
<CAPTION>
AGE, GENDER, UNDERWRITING CLASSIFICATION INITIAL GUIDELINE INITIAL GUIDELINE
AND DEATH BENEFIT OPTION SINGLE PREMIUM ANNUAL PREMIUM
---------------------------------------- ----------------- -----------------
<S> <C> <C>
Age 45, Male, Non-Smoker Preferred, Option 1 $47,689.19 $ 3,998.48
Age 45, Female, Non-Smoker Preferred, Option 1 $41,065.27 $ 3,374.75
Age 45, Male, Smoker Standard, Option 1 $60,522.27 $ 5,271.13
Age 45, Male, Non-Smoker, Preferred, Option 2 $47,689.19 $12,671.23
Age 35, Male, Non-Smoker, Preferred, Option 1 $30,537.53 $ 2,489.50
Age 55, Male, Non-Smoker, Preferred, Option 1 $72,459.17 $ 6,673.55
</TABLE>
Values shown on this illustration are based on a policyowner tax bracket of
0%.
Premiums are assumed to be paid at the beginning of the payment period.
Policy values and ages are shown as of the end of the policy year and reflect
the effect of all loans and surrenders. The death proceeds, fund value and value
upon surrender will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's cash value is net of any applicable surrender charge.
Premiums less the following deductions are added to the fund value:
1. A premium tax charge of 2.25% of gross premiums in all policy years.
2. A sales charge on the gross premiums. The sales charges equal 4% of
each premium dollar paid for amounts less than $500,000, and 3% for
total amounts of $500,000 or more.
3. A DAC tax charge of 1.50% of gross premiums in all policy years.
Those columns assuming guaranteed charges use the current monthly mortality
charges, current monthly administrative charges, current charges for mortality
and expense risks, current charges for rider benefits, if any, and current
premium sales charge ("current charges" for the first year) as well as the
assumed hypothetical gross annual investment return indicated. Thereafter these
columns use guaranteed monthly mortality charges, guaranteed monthly
administrative charges, guaranteed charges for mortality and expense risks,
guaranteed charges for rider benefits if any, guaranteed maximum premium sales
charge, and the assumed hypothetical gross annual investment return indicated.
Those columns assuming current charges are based upon "current charges" and the
assumed hypothetical gross annual investment return indicated.
The current charges declared by MONY Life Insurance Company of America are
guaranteed for the first policy year and apply to policies issued as of the
illustration preparation date and could change between the preparation date and
the date the policy is issued. After the first policy year, current charges are
not guaranteed, and may be changed at the discretion of MONY Life Insurance
Company of America.
D-3
<PAGE> 108
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,813 200,000 0 1,813 200,000 0 1,813 200,000
5 2,650 4,585 6,705 200,000 4,585 6,705 200,000 6,251 8,371 200,000
10 2,650 9,413 10,738 200,000 9,413 10,738 200,000 14,628 15,953 200,000
20 2,650 6,766 6,766 200,000 6,766 6,766 200,000 23,225 23,225 200,000
@ Age 70 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 18,754 18,754 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 32 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- ------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- -------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-4
<PAGE> 109
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,813 200,000 0 1,813 200,000 0 1,813 200,000
2 47 2,650 5,704 1,022 3,142 200,000 1,022 3,142 200,000 1,419 3,539 200,000
3 48 2,650 8,772 2,272 4,392 200,000 2,272 4,392 200,000 3,059 5,179 200,000
4 49 2,650 11,993 3,467 5,587 200,000 3,467 5,587 200,000 4,662 6,782 200,000
5 50 2,650 15,375 4,585 6,705 200,000 4,585 6,705 200,000 6,251 8,371 200,000
6 51 2,650 18,926 5,605 7,725 200,000 5,605 7,725 200,000 7,825 9,945 200,000
7 52 2,650 22,655 6,528 8,648 200,000 6,528 8,648 200,000 9,386 11,506 200,000
8 53 2,650 26,570 7,621 9,476 200,000 7,621 9,476 200,000 11,176 13,031 200,000
9 54 2,650 30,681 8,574 10,164 200,000 8,574 10,164 200,000 12,930 14,520 200,000
10 55 2,650 34,998 9,413 10,738 200,000 9,413 10,738 200,000 14,628 15,953 200,000
11 56 2,650 39,530 10,093 11,153 200,000 10,093 11,153 200,000 16,249 17,309 200,000
12 57 2,650 44,289 10,615 11,410 200,000 10,615 11,410 200,000 17,773 18,568 200,000
13 58 2,650 49,286 10,980 11,510 200,000 10,980 11,510 200,000 19,181 19,711 200,000
14 59 2,650 54,533 11,144 11,409 200,000 11,144 11,409 200,000 20,432 20,697 200,000
15 60 2,650 60,042 11,107 11,107 200,000 11,107 11,107 200,000 21,487 21,487 200,000
16 61 2,650 65,827 10,846 10,846 200,000 10,846 10,846 200,000 22,329 22,329 200,000
17 62 2,650 71,901 10,336 10,336 200,000 10,336 10,336 200,000 22,915 22,915 200,000
18 63 2,650 78,278 9,509 9,509 200,000 9,509 9,509 200,000 23,228 23,228 200,000
19 64 2,650 84,975 8,336 8,336 200,000 8,336 8,336 200,000 23,331 23,331 200,000
20 65 2,650 92,006 6,766 6,766 200,000 6,766 6,766 200,000 23,225 23,225 200,000
21 66 2,650 99,389 4,742 4,742 200,000 4,742 4,742 200,000 22,888 22,888 200,000
22 67 2,650 107,141 2,226 2,226 200,000 2,226 2,226 200,000 22,276 22,276 200,000
23 68 2,650 115,280 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 21,386 21,386 200,000
24 69 2,650 123,827 20,214 20,214 200,000
25 70 2,650 132,801 18,754 18,754 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 1.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-5
<PAGE> 110
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 16,956 16,956 200,000
27 72 2,650 152,117 14,852 14,852 200,000
28 73 2,650 162,505 12,344 12,344 200,000
29 74 2,650 173,413 9,326 9,326 200,000
30 75 2,650 184,866 5,703 5,703 200,000
31 76 2,650 196,892 1,396 1,396 200,000
32 77 2,650 209,519 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-6
<PAGE> 111
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,813 200,000 0 1,940 200,000 0 1,940 200,000
5 2,650 4,585 6,705 200,000 6,162 8,282 200,000 8,027 10,147 200,000
10 2,650 9,413 10,738 200,000 14,857 16,182 200,000 21,335 22,660 200,000
20 2,650 6,766 6,766 200,000 26,375 26,375 200,000 51,993 51,993 200,000
@ Age 70 2,650 LAPSED LAPSED LAPSED 20,215 20,215 200,000 66,449 66,449 200,000
@ Age 85 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 83,915 83,915 200,000
@ Age 90 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 27,677 27,677 200,000
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 29 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 46 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- -------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- -------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-7
<PAGE> 112
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,813 200,000 0 1,940 200,000 0 1,940 200,000
2 47 2,650 5,704 1,022 3,142 200,000 1,376 3,496 200,000 1,785 3,905 200,000
3 48 2,650 8,772 2,272 4,392 200,000 2,942 5,062 200,000 3,778 5,898 200,000
4 49 2,650 11,993 3,467 5,587 200,000 4,544 6,664 200,000 5,850 7,970 200,000
5 50 2,650 15,375 4,585 6,705 200,000 6,162 8,282 200,000 8,027 10,147 200,000
6 51 2,650 18,926 5,605 7,725 200,000 7,772 9,892 200,000 10,315 12,435 200,000
7 52 2,650 22,655 6,528 8,648 200,000 9,378 11,498 200,000 12,720 14,840 200,000
8 53 2,650 26,570 7,621 9,476 200,000 11,245 13,100 200,000 15,491 17,346 200,000
9 54 2,650 30,681 8,574 10,164 200,000 13,064 14,654 200,000 18,367 19,957 200,000
10 55 2,650 34,998 9,413 10,738 200,000 14,857 16,182 200,000 21,335 22,660 200,000
11 56 2,650 39,530 10,093 11,153 200,000 16,580 17,640 200,000 24,377 25,437 200,000
12 57 2,650 44,289 10,615 11,410 200,000 18,232 19,027 200,000 27,480 28,275 200,000
13 58 2,650 49,286 10,980 11,510 200,000 19,810 20,340 200,000 30,627 31,157 200,000
14 59 2,650 54,533 11,144 11,409 200,000 21,269 21,534 200,000 33,785 34,050 200,000
15 60 2,650 60,042 11,107 11,107 200,000 22,604 22,604 200,000 36,918 36,918 200,000
16 61 2,650 65,827 10,846 10,846 200,000 23,800 23,800 200,000 40,023 40,023 200,000
17 62 2,650 71,901 10,336 10,336 200,000 24,834 24,834 200,000 43,073 43,073 200,000
18 63 2,650 78,278 9,509 9,509 200,000 25,634 25,634 200,000 46,052 46,052 200,000
19 64 2,650 84,975 8,336 8,336 200,000 26,168 26,168 200,000 49,023 49,023 200,000
20 65 2,650 92,006 6,766 6,766 200,000 26,375 26,375 200,000 51,993 51,993 200,000
21 66 2,650 99,389 4,742 4,742 200,000 26,192 26,192 200,000 54,950 54,950 200,000
22 67 2,650 107,141 2,226 2,226 200,000 25,567 25,567 200,000 57,868 57,868 200,000
23 68 2,650 115,280 LAPSED LAPSED LAPSED 24,421 24,421 200,000 60,752 60,752 200,000
24 69 2,650 123,827 22,686 22,686 200,000 63,610 63,610 200,000
25 70 2,650 132,801 20,215 20,215 200,000 66,449 66,449 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-8
<PAGE> 113
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 16,864 16,864 200,000 69,245 69,245 200,000
27 72 2,650 152,117 12,435 12,435 200,000 72,037 72,037 200,000
28 73 2,650 162,505 6,651 6,651 200,000 74,771 74,771 200,000
29 74 2,650 173,413 LAPSED LAPSED LAPSED 77,394 77,394 200,000
30 75 2,650 184,866 79,866 79,866 200,000
31 76 2,650 196,892 82,161 82,161 200,000
32 77 2,650 209,519 84,234 84,234 200,000
33 78 2,650 222,777 86,025 86,025 200,000
34 79 2,650 236,699 87,495 87,495 200,000
35 80 2,650 251,316 88,569 88,569 200,000
36 81 2,650 266,665 89,177 89,177 200,000
37 82 2,650 282,780 89,218 89,218 200,000
38 83 2,650 299,702 88,602 88,602 200,000
39 84 2,650 317,469 86,933 86,933 200,000
40 85 2,650 336,125 83,915 83,915 200,000
41 86 2,650 355,714 79,162 79,162 200,000
42 87 2,650 376,282 72,114 72,114 200,000
43 88 2,650 397,879 61,883 61,883 200,000
44 89 2,650 420,555 47,569 47,569 200,000
45 90 2,650 444,366 27,677 27,677 200,000
46 91 2,650 469,366 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-9
<PAGE> 114
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- --------------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,813 200,000 0 2,067 200,000 0 2,067 200,000
5 2,650 4,585 6,705 200,000 8,035 10,155 200,000 10,118 12,238 200,000
10 2,650 9,413 10,738 200,000 22,931 24,256 200,000 31,033 32,358 200,000
20 2,650 6,766 6,766 200,000 76,011 76,011 200,000 117,652 117,652 200,000
@ Age 70 2,650 LAPSED LAPSED LAPSED 125,872 125,872 200,000 208,225 208,225 241,541
@ Age 85 2,650 LAPSED LAPSED LAPSED 620,636 620,636 651,668 1,028,180 1,028,180 1,079,589
@ Age 90 2,650 LAPSED LAPSED LAPSED 1,007,251 1,007,251 1,057,613 1,689,957 1,689,957 1,774,455
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- ------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- ------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-10
<PAGE> 115
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES
------------------------------------------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,813 200,000 0 2,067 200,000
2 47 2,650 5,704 1,022 3,142 200,000 1,746 3,866 200,000
3 48 2,650 8,772 2,272 4,392 200,000 3,674 5,794 200,000
4 49 2,650 11,993 3,467 5,587 200,000 5,771 7,891 200,000
5 50 2,650 15,375 4,585 6,705 200,000 8,035 10,155 200,000
6 51 2,650 18,926 5,605 7,725 200,000 10,461 12,581 200,000
7 52 2,650 22,655 6,528 8,648 200,000 13,070 15,190 200,000
8 53 2,650 26,570 7,621 9,476 200,000 16,152 18,007 200,000
9 54 2,650 30,681 8,574 10,164 200,000 19,423 21,013 200,000
10 55 2,650 34,998 9,413 10,738 200,000 22,931 24,256 200,000
11 56 2,650 39,530 10,093 11,153 200,000 26,665 27,725 200,000
12 57 2,650 44,289 10,615 11,410 200,000 30,657 31,452 200,000
13 58 2,650 49,286 10,980 11,510 200,000 34,945 35,475 200,000
14 59 2,650 54,533 11,144 11,409 200,000 39,531 39,796 200,000
15 60 2,650 60,042 11,107 11,107 200,000 44,459 44,459 200,000
16 61 2,650 65,827 10,846 10,846 200,000 49,787 49,787 200,000
17 62 2,650 71,901 10,336 10,336 200,000 55,568 55,568 200,000
18 63 2,650 78,278 9,509 9,509 200,000 61,822 61,822 200,000
19 64 2,650 84,975 8,336 8,336 200,000 68,616 68,616 200,000
20 65 2,650 92,006 6,766 6,766 200,000 76,011 76,011 200,000
21 66 2,650 99,389 4,742 4,742 200,000 84,090 84,090 200,000
22 67 2,650 107,141 2,226 2,226 200,000 92,967 92,967 200,000
23 68 2,650 115,280 LAPSED LAPSED LAPSED 102,774 102,774 200,000
24 69 2,650 123,827 113,682 113,682 200,000
25 70 2,650 132,801 125,872 125,872 200,000
<CAPTION>
CURRENT CHARGES
------------------------------
12.00% (11.25% NET)
END
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
1 0 2,067 200,000
2 2,167 4,287 200,000
3 4,559 6,679 200,000
4 7,192 9,312 200,000
5 10,118 12,238 200,000
6 13,368 15,488 200,000
7 16,979 19,099 200,000
8 21,233 23,088 200,000
9 25,909 27,499 200,000
10 31,033 32,358 200,000
11 36,637 37,697 200,000
12 42,758 43,555 200,000
13 49,441 49,971 200,000
14 56,722 56,987 200,000
15 64,645 64,645 200,000
16 73,311 73,311 200,000
17 82,805 82,805 200,000
18 93,239 93,239 200,000
19 104,799 104,799 200,000
20 117,652 117,652 200,000
21 131,979 131,979 200,000
22 147,989 147,989 200,000
23 165,946 165,946 200,000
24 186,031 186,031 217,657
25 208,225 208,225 241,541
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-11
<PAGE> 116
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 139,593 139,593 200,000 232,737 232,737 267,648
27 72 2,650 152,117 155,153 155,153 200,000 259,888 259,888 293,673
28 73 2,650 162,505 172,947 172,947 200,000 289,972 289,972 321,868
29 74 2,650 173,413 193,381 193,381 210,786 323,328 323,328 352,427
30 75 2,650 184,866 216,209 216,209 231,344 360,352 360,352 385,576
31 76 2,650 196,892 241,625 241,625 253,706 401,503 401,503 421,578
32 77 2,650 209,519 269,631 269,631 283,112 446,981 446,981 469,330
33 78 2,650 222,777 300,478 300,478 315,501 497,219 497,219 522,080
34 79 2,650 236,699 334,433 334,433 351,155 552,700 552,700 580,335
35 80 2,650 251,316 371,783 371,783 390,372 613,944 613,944 644,641
36 81 2,650 266,665 412,835 412,835 433,476 681,524 681,524 715,600
37 82 2,650 282,780 457,905 457,905 480,800 756,059 756,059 793,862
38 83 2,650 299,702 507,326 507,326 532,693 838,234 838,234 880,145
39 84 2,650 317,469 561,446 561,446 589,519 928,693 928,693 975,128
40 85 2,650 336,125 620,636 620,636 651,668 1,028,180 1,028,180 1,079,589
41 86 2,650 355,714 685,287 685,287 719,552 1,137,487 1,137,487 1,194,361
42 87 2,650 376,282 755,817 755,817 793,608 1,257,438 1,257,438 1,320,310
43 88 2,650 397,879 832,675 832,675 874,309 1,388,844 1,388,844 1,458,286
44 89 2,650 420,555 916,326 916,326 962,142 1,532,696 1,532,696 1,609,331
45 90 2,650 444,366 1,007,251 1,007,251 1,057,613 1,689,957 1,689,957 1,774,455
46 91 2,650 469,366 1,105,926 1,105,926 1,161,222 1,861,454 1,861,454 1,954,527
47 92 2,650 495,617 1,216,215 1,216,215 1,264,863 2,052,200 2,052,200 2,134,288
48 93 2,650 523,181 1,340,156 1,340,156 1,380,361 2,265,302 2,265,302 2,333,261
49 94 2,650 552,122 1,480,260 1,480,260 1,509,866 2,504,705 2,504,705 2,554,799
50 95 2,650 582,511 1,639,788 1,639,788 1,656,186 2,775,067 2,775,067 2,802,817
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-12
<PAGE> 117
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 96 2,650 614,419 1,815,479 1,815,479 1,833,633 3,074,052 3,074,052 3,104,793
52 97 2,650 647,922 2,008,223 2,008,223 2,028,305 3,404,680 3,404,680 3,438,727
53 98 2,650 683,101 2,217,716 2,217,716 2,239,893 3,770,117 3,770,117 3,807,818
54 99 2,650 720,038 2,445,773 2,445,773 2,470,230 4,173,909 4,173,909 4,215,648
55 100 2,650 758,823 2,697,011 2,697,011 2,723,981 4,619,706 4,619,706 4,665,903
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-13
<PAGE> 118
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,050 0 1,336 200,000 0 1,336 200,000 0 1,336 200,000
5 2,050 2,839 4,479 200,000 2,839 4,479 200,000 4,632 6,272 200,000
10 2,050 5,905 6,930 200,000 5,905 6,930 200,000 10,755 11,780 200,000
20 2,050 5,669 5,669 200,000 5,669 5,669 200,000 16,392 16,392 200,000
@ Age 70 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 14,469 14,469 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 33 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- ------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- ------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-14
<PAGE> 119
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,050 2,153 0 1,336 200,000 0 1,336 200,000 0 1,336 200,000
2 47 2,050 4,413 549 2,189 200,000 549 2,189 200,000 971 2,611 200,000
3 48 2,050 6,786 1,373 3,013 200,000 1,373 3,013 200,000 2,211 3,851 200,000
4 49 2,050 9,278 2,144 3,784 200,000 2,144 3,784 200,000 3,439 5,079 200,000
5 50 2,050 11,894 2,839 4,479 200,000 2,839 4,479 200,000 4,632 6,272 200,000
6 51 2,050 14,641 3,484 5,124 200,000 3,484 5,124 200,000 5,814 7,454 200,000
7 52 2,050 17,526 4,055 5,695 200,000 4,055 5,695 200,000 6,962 8,602 200,000
8 53 2,050 20,554 4,758 6,193 200,000 4,758 6,193 200,000 8,281 9,716 200,000
9 54 2,050 23,735 5,367 6,597 200,000 5,367 6,597 200,000 9,545 10,775 200,000
10 55 2,050 27,074 5,905 6,930 200,000 5,905 6,930 200,000 10,755 11,780 200,000
11 56 2,050 30,580 6,349 7,169 200,000 6,349 7,169 200,000 11,933 12,753 200,000
12 57 2,050 34,262 6,701 7,316 200,000 6,701 7,316 200,000 13,059 13,674 200,000
13 58 2,050 38,127 6,962 7,372 200,000 6,962 7,372 200,000 14,111 14,521 200,000
14 59 2,050 42,186 7,130 7,335 200,000 7,130 7,335 200,000 14,981 15,186 200,000
15 60 2,050 46,448 7,207 7,207 200,000 7,207 7,207 200,000 15,672 15,672 200,000
16 61 2,050 50,923 7,253 7,253 200,000 7,253 7,253 200,000 16,223 16,223 200,000
17 62 2,050 55,621 7,161 7,161 200,000 7,161 7,161 200,000 16,533 16,533 200,000
18 63 2,050 60,555 6,886 6,886 200,000 6,886 6,886 200,000 16,558 16,558 200,000
19 64 2,050 65,735 6,405 6,405 200,000 6,405 6,405 200,000 16,518 16,518 200,000
20 65 2,050 71,174 5,669 5,669 200,000 5,669 5,669 200,000 16,392 16,392 200,000
21 66 2,050 76,886 4,655 4,655 200,000 4,655 4,655 200,000 16,178 16,178 200,000
22 67 2,050 82,882 3,357 3,357 200,000 3,357 3,357 200,000 15,898 15,898 200,000
23 68 2,050 89,179 1,770 1,770 200,000 1,770 1,770 200,000 15,532 15,532 200,000
24 69 2,050 95,791 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 15,056 15,056 200,000
25 70 2,050 102,733 14,469 14,469 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-15
<PAGE> 120
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,050 110,022 13,705 13,705 200,000
27 72 2,050 117,675 12,784 12,784 200,000
28 73 2,050 125,712 11,704 11,704 200,000
29 74 2,050 134,150 10,305 10,305 200,000
30 75 2,050 143,010 8,535 8,535 200,000
31 76 2,050 152,313 6,317 6,317 200,000
32 77 2,050 162,081 3,401 3,401 200,000
33 78 2,050 172,337 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-16
<PAGE> 121
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,050 0 1,336 200,000 0 1,432 200,000 0 1,432 200,000
5 2,050 2,839 4,479 200,000 3,955 5,595 200,000 5,964 7,604 200,000
10 2,050 5,905 6,930 200,000 9,611 10,636 200,000 15,764 16,789 200,000
20 2,050 5,669 5,669 200,000 18,519 18,519 200,000 37,338 37,338 200,000
@ Age 70 2,050 LAPSED LAPSED LAPSED 16,541 16,541 200,000 48,218 48,218 200,000
@ Age 85 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 55,511 55,511 200,000
@ Age 90 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 31 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 45 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- ------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- ------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-17
<PAGE> 122
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,050 2,153 0 1,336 200,000 0 1,432 200,000 0 1,432 200,000
2 47 2,050 4,413 549 2,189 200,000 811 2,451 200,000 1,246 2,886 200,000
3 48 2,050 6,786 1,373 3,013 200,000 1,859 3,499 200,000 2,750 4,390 200,000
4 49 2,050 9,278 2,144 3,784 200,000 2,915 4,555 200,000 4,329 5,969 200,000
5 50 2,050 11,894 2,839 4,479 200,000 3,955 5,595 200,000 5,964 7,604 200,000
6 51 2,050 14,641 3,484 5,124 200,000 5,002 6,642 200,000 7,681 9,321 200,000
7 52 2,050 17,526 4,055 5,695 200,000 6,035 7,675 200,000 9,461 11,101 200,000
8 53 2,050 20,554 4,758 6,193 200,000 7,258 8,693 200,000 11,513 12,948 200,000
9 54 2,050 23,735 5,367 6,597 200,000 8,442 9,672 200,000 13,613 14,843 200,000
10 55 2,050 27,074 5,905 6,930 200,000 9,611 10,636 200,000 15,764 16,789 200,000
11 56 2,050 30,580 6,349 7,169 200,000 10,739 11,559 200,000 17,993 18,813 200,000
12 57 2,050 34,262 6,701 7,316 200,000 11,828 12,443 200,000 20,281 20,896 200,000
13 58 2,050 38,127 6,962 7,372 200,000 12,874 13,284 200,000 22,612 23,022 200,000
14 59 2,050 42,186 7,130 7,335 200,000 13,876 14,081 200,000 24,880 25,085 200,000
15 60 2,050 46,448 7,207 7,207 200,000 14,833 14,833 200,000 27,088 27,088 200,000
16 61 2,050 50,923 7,253 7,253 200,000 15,812 15,812 200,000 29,284 29,284 200,000
17 62 2,050 55,621 7,161 7,161 200,000 16,712 16,712 200,000 31,374 31,374 200,000
18 63 2,050 60,555 6,886 6,886 200,000 17,487 17,487 200,000 33,315 33,315 200,000
19 64 2,050 65,735 6,405 6,405 200,000 18,107 18,107 200,000 35,308 35,308 200,000
20 65 2,050 71,174 5,669 5,669 200,000 18,519 18,519 200,000 37,338 37,338 200,000
21 66 2,050 76,886 4,655 4,655 200,000 18,691 18,691 200,000 39,408 39,408 200,000
22 67 2,050 82,882 3,357 3,357 200,000 18,606 18,606 200,000 41,543 41,543 200,000
23 68 2,050 89,179 1,770 1,770 200,000 18,248 18,248 200,000 43,729 43,729 200,000
24 69 2,050 95,791 LAPSED LAPSED LAPSED 17,575 17,575 200,000 45,953 45,953 200,000
25 70 2,050 102,733 16,541 16,541 200,000 48,218 48,218 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-18
<PAGE> 123
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,050 110,022 15,049 15,049 200,000 50,476 50,476 200,000
27 72 2,050 117,675 12,990 12,990 200,000 52,748 52,748 200,000
28 73 2,050 125,712 10,195 10,195 200,000 55,039 55,039 200,000
29 74 2,050 134,150 6,447 6,447 200,000 57,232 57,232 200,000
30 75 2,050 143,010 1,565 1,565 200,000 59,291 59,291 200,000
31 76 2,050 152,313 LAPSED LAPSED LAPSED 61,166 61,166 200,000
32 77 2,050 162,081 62,682 62,682 200,000
33 78 2,050 172,337 63,823 63,823 200,000
34 79 2,050 183,107 64,568 64,568 200,000
35 80 2,050 194,414 64,890 64,890 200,000
36 81 2,050 206,288 64,756 64,756 200,000
37 82 2,050 218,755 63,956 63,956 200,000
38 83 2,050 231,845 62,335 62,335 200,000
39 84 2,050 245,590 59,635 59,635 200,000
40 85 2,050 260,022 55,511 55,511 200,000
41 86 2,050 275,175 49,694 49,694 200,000
42 87 2,050 291,086 41,097 41,097 200,000
43 88 2,050 307,793 29,104 29,104 200,000
44 89 2,050 325,335 12,888 12,888 200,000
45 90 2,050 343,755 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-19
<PAGE> 124
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- ---------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,050 0 1,336 200,000 0 1,528 200,000 0 1,528 200,000
5 2,050 2,839 4,479 200,000 5,286 6,926 200,000 7,531 9,171 200,000
10 2,050 5,905 6,930 200,000 15,152 16,177 200,000 23,012 24,037 200,000
20 2,050 5,669 5,669 200,000 50,980 50,980 200,000 85,355 85,355 200,000
@ Age 70 2,050 LAPSED LAPSED LAPSED 83,098 83,098 200,000 149,335 149,335 200,000
@ Age 85 2,050 LAPSED LAPSED LAPSED 388,229 388,229 407,640 750,256 750,256 787,769
@ Age 90 2,050 LAPSED LAPSED LAPSED 638,192 638,192 670,102 1,241,404 1,241,404 1,303,474
</TABLE>
* Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------------ -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------------ -------------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-20
<PAGE> 125
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES
------------------------------------------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,050 2,153 0 1,336 200,000 0 1,528 200,000
2 47 2,050 4,413 549 2,189 200,000 1,085 2,725 200,000
3 48 2,050 6,786 1,373 3,013 200,000 2,392 4,032 200,000
4 49 2,050 9,278 2,144 3,784 200,000 3,796 5,436 200,000
5 50 2,050 11,894 2,839 4,479 200,000 5,286 6,926 200,000
6 51 2,050 14,641 3,484 5,124 200,000 6,895 8,535 200,000
7 52 2,050 17,526 4,055 5,695 200,000 8,615 10,255 200,000
8 53 2,050 20,554 4,758 6,193 200,000 10,665 12,100 200,000
9 54 2,050 23,753 5,367 6,597 200,000 12,831 14,061 200,000
10 55 2,050 27,074 5,905 6,930 200,000 15,152 16,177 200,000
11 56 2,050 30,580 6,349 7,169 200,000 17,624 18,444 200,000
12 57 2,050 34,262 6,701 7,316 200,000 20,268 20,883 200,000
13 58 2,050 38,127 6,962 7,372 200,000 23,105 23,515 200,000
14 59 2,050 42,186 7,130 7,335 200,000 26,161 26,366 200,000
15 60 2,050 46,448 7,207 7,207 200,000 29,465 29,465 200,000
16 61 2,050 50,923 7,253 7,253 200,000 33,128 33,128 200,000
17 62 2,050 55,621 7,161 7,161 200,000 37,101 37,101 200,000
18 63 2,050 60,555 6,886 6,886 200,000 41,385 41,385 200,000
19 64 2,050 65,735 6,405 6,405 200,000 46,007 46,007 200,000
20 65 2,050 71,174 5,669 5,669 200,000 50,980 50,980 200,000
21 66 2,050 76,886 4,655 4,655 200,000 56,343 56,343 200,000
22 67 2,050 82,882 3,357 3,357 200,000 62,162 62,162 200,000
23 68 2,050 89,179 1,770 1,770 200,000 68,510 68,510 200,000
24 69 2,050 95,791 LAPSED LAPSED LAPSED 75,461 75,461 200,000
25 70 2,050 102,733 83,098 83,098 200,000
<CAPTION>
CURRENT CHARGES
------------------------------------
12.00% (11.25% NET)
END
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
1 0 1,528 200,000
2 1,533 3,173 200,000
3 3,335 4,975 200,000
4 5,335 6,975 200,000
5 7,531 9,171 200,000
6 9,970 11,610 200,000
7 12,653 14,293 200,000
8 15,814 17,249 200,000
9 19,256 20,486 200,000
10 23,012 24,037 200,000
11 27,141 27,961 200,000
12 31,662 32,277 200,000
13 36,602 37,012 200,000
14 41,910 42,115 200,000
15 47,637 47,637 200,000
16 53,906 53,906 200,000
17 60,700 60,700 200,000
18 68,064 68,064 200,000
19 76,253 76,253 200,000
20 85,355 85,355 200,000
21 95,490 95,490 200,000
22 106,802 106,802 200,000
23 119,433 119,433 200,000
24 133,545 133,545 200,000
25 149,335 149,335 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-21
<PAGE> 126
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,050 110,022 91,498 91,498 200,000 167,014 167,014 200,000
27 72 2,050 117,675 100,758 100,758 200,000 186,818 186,818 211,104
28 73 2,050 125,712 110,985 110,985 200,000 208,813 208,813 231,782
29 74 2,050 134,150 122,316 122,316 200,000 233,193 233,193 254,181
30 75 2,050 143,010 134,974 134,974 200,000 260,237 260,237 278,453
31 76 2,050 152,313 149,222 149,222 200,000 290,257 290,257 304,769
32 77 2,050 162,081 165,442 165,442 200,000 323,454 323,454 339,626
33 78 2,050 172,337 184,114 184,114 200,000 360,157 360,157 378,165
34 79 2,050 183,107 205,553 205,553 215,831 400,731 400,731 420,767
35 80 2,050 194,414 229,235 229,235 240,697 445,575 445,575 467,854
36 81 2,050 206,288 255,322 255,322 268,088 495,131 495,131 519,887
37 82 2,050 218,755 284,031 284,031 298,232 549,854 549,854 577,346
38 83 2,050 231,845 315,589 315,589 331,368 610,251 610,251 640,764
39 84 2,050 245,590 350,236 350,236 367,748 676,862 676,862 710,705
40 85 2,050 260,022 388,229 388,229 407,640 750,256 750,256 787,769
41 86 2,050 275,175 429,835 429,835 451,326 831,084 831,084 872,639
42 87 2,050 291,086 475,338 475,338 499,105 919,862 919,862 965,855
43 88 2,050 307,793 525,031 525,031 551,283 1,017,309 1,017,309 1,068,175
44 89 2,050 325,335 579,214 579,214 608,174 1,124,211 1,124,211 1,180,421
45 90 2,050 343,755 638,192 638,192 670,102 1,241,404 1,241,404 1,303,474
46 91 2,050 363,095 702,263 702,263 737,376 1,369,799 1,369,799 1,438,289
47 92 2,050 383,402 773,603 776,603 804,547 1,512,258 1,512,258 1,572,749
48 93 2,050 404,725 853,465 853,465 879,069 1,670,952 1,670,952 1,721,080
49 94 2,050 427,113 943,433 943,433 962,301 1,848,763 1,848,763 1,885,738
50 95 2,050 450,622 1,045,593 1,045,593 1,056,049 2,048,915 2,048,915 2,069,404
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-22
<PAGE> 127
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 96 2,050 475,305 1,158,090 1,158,090 1,169,671 2,270,744 2,270,744 2,293,451
52 97 2,050 501,223 1,281,488 1,281,488 1,294,302 2,515,952 2,515,952 2,541,111
53 98 2,050 528,437 1,415,589 1,415,589 1,429,745 2,786,985 2,786,985 2,814,855
54 99 2,050 557,011 1,561,501 1,561,501 1,577,116 3,086,608 3,086,608 3,117,474
55 100 2,050 587,014 1,722,245 1,722,245 1,739,467 3,417,787 3,417,787 3,451,965
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Female Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $2,050.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-23
<PAGE> 128
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 3,800 0 2,606 200,000 0 2,606 200,000 0 2,606 200,000
5 3,800 5,594 8,634 200,000 5,594 8,634 200,000 8,138 11,178 200,000
10 3,800 10,447 12,347 200,000 10,447 12,347 200,000 18,029 19,929 200,000
20 3,800 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 20,748 20,748 200,000
@ Age 70 3,800 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 4,537 4,537 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 26 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- ------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- ------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-24
<PAGE> 129
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,800 3,990 0 2,606 200,000 0 2,606 200,000 0 2,606 200,000
2 47 3,800 8,180 1,270 4,310 200,000 1,270 4,310 200,000 1,943 4,983 200,000
3 48 3,800 12,578 2,853 5,893 200,000 2,853 5,893 200,000 4,119 7,159 200,000
4 49 3,800 17,197 4,293 7,333 200,000 4,293 7,333 200,000 6,168 9,208 200,000
5 50 3,800 22,047 5,594 8,634 200,000 5,594 8,634 200,000 8,138 11,178 200,000
6 51 3,800 27,140 6,735 9,775 200,000 6,735 9,775 200,000 10,031 13,071 200,000
7 52 3,800 32,487 7,695 10,735 200,000 7,695 10,735 200,000 11,871 14,911 200,000
8 53 3,800 38,101 8,856 11,516 200,000 8,856 11,516 200,000 14,017 16,677 200,000
9 54 3,800 43,996 9,773 12,053 200,000 9,773 12,053 200,000 16,069 18,349 200,000
10 55 3,800 50,186 10,447 12,347 200,000 10,447 12,347 200,000 18,029 19,929 200,000
11 56 3,800 56,685 10,878 12,398 200,000 10,878 12,398 200,000 19,835 21,355 200,000
12 57 3,800 63,509 11,020 12,160 200,000 11,020 12,160 200,000 21,428 22,568 200,000
13 58 3,800 70,675 10,870 11,630 200,000 10,870 11,630 200,000 22,747 23,507 200,000
14 59 3,800 78,199 10,403 10,783 200,000 10,403 10,783 200,000 23,733 24,113 200,000
15 60 3,800 86,098 9,589 9,589 200,000 9,589 9,589 200,000 24,368 24,368 200,000
16 61 3,800 94,393 8,307 8,307 200,000 8,307 8,307 200,000 24,496 24,496 200,000
17 62 3,800 103,103 6,573 6,573 200,000 6,573 6,573 200,000 24,209 24,209 200,000
18 63 3,800 112,248 4,302 4,302 200,000 4,302 4,302 200,000 23,481 23,481 200,000
19 64 3,800 121,851 1,449 1,449 200,000 1,449 1,449 200,000 22,345 22,345 200,000
20 65 3,800 131,933 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 20,748 20,748 200,000
21 66 3,800 142,520 18,675 18,675 200,000
22 67 3,800 153,636 16,063 16,063 200,000
23 68 3,800 165,308 12,818 12,818 200,000
24 69 3,800 177,563 8,973 8,973 200,000
25 70 3,800 190,431 4,537 4,537 200,000
26 71 3,800 203,943 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-25
<PAGE> 130
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 3,800 0 2,606 200,000 0 2,788 200,000 0 2,788 200,000
5 3,800 5,594 8,634 200,000 7,760 10,800 200,000 10,618 13,658 200,000
10 3,800 10,447 12,347 200,000 17,648 19,548 200,000 27,092 28,992 200,000
20 3,800 LAPSED LAPSED LAPSED 21,958 21,958 200,000 58,714 58,714 200,000
@ Age 70 3,800 LAPSED LAPSED LAPSED 202 202 200,000 67,863 67,863 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 26 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 39 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- ------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- ------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-26
<PAGE> 131
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,800 3,990 0 2,606 200,000 0 2,788 200,000 0 2,788 200,000
2 47 3,800 8,180 1,270 4,310 200,000 1,773 4,813 200,000 2,466 5,506 200,000
3 48 3,800 12,578 2,853 5,893 200,000 3,794 6,834 200,000 5,139 8,179 200,000
4 49 3,800 17,197 4,293 7,333 200,000 5,789 8,829 200,000 7,839 10,879 200,000
5 50 3,800 22,047 5,594 8,634 200,000 7,760 10,800 200,000 10,618 13,658 200,000
6 51 3,800 27,140 6,735 9,775 200,000 9,687 12,727 200,000 13,481 16,521 200,000
7 52 3,800 32,487 7,695 10,735 200,000 11,545 14,585 200,000 16,458 19,498 200,000
8 53 3,800 38,101 8,856 11,516 200,000 13,716 16,376 200,000 19,914 22,574 200,000
9 54 3,800 43,996 9,773 12,053 200,000 15,752 18,032 200,000 23,456 25,736 200,000
10 55 3,800 50,186 10,447 12,347 200,000 17,648 19,548 200,000 27,092 28,992 200,000
11 56 3,800 56,685 10,878 12,398 200,000 19,400 20,920 200,000 30,769 32,289 200,000
12 57 3,800 63,509 11,020 12,160 200,000 20,958 22,098 200,000 34,433 35,573 200,000
13 58 3,800 70,675 10,870 11,630 200,000 22,314 23,074 200,000 38,033 38,793 200,000
14 59 3,800 78,199 10,403 10,783 200,000 23,435 23,815 200,000 41,517 41,897 200,000
15 60 3,800 86,098 9,589 9,589 200,000 24,284 24,284 200,000 44,871 44,871 200,000
16 61 3,800 94,393 8,307 8,307 200,000 24,743 24,743 200,000 47,961 47,961 200,000
17 62 3,800 103,103 6,573 6,573 200,000 24,827 24,827 200,000 50,890 50,890 200,000
18 63 3,800 112,248 4,302 4,302 200,000 24,444 24,444 200,000 53,646 53,646 200,000
19 64 3,800 121,851 1,449 1,449 200,000 23,533 23,533 200,000 56,265 56,265 200,000
20 65 3,800 131,933 LAPSED LAPSED LAPSED 21,958 21,958 200,000 58,714 58,714 200,000
21 66 3,800 142,520 19,650 19,650 200,000 60,993 60,993 200,000
22 67 3,800 153,636 16,460 16,460 200,000 63,067 63,067 200,000
23 68 3,800 165,308 12,282 12,282 200,000 64,880 64,880 200,000
24 69 3,800 177,563 6,941 6,941 200,000 66,472 66,472 200,000
25 70 3,800 190,431 202 202 200,000 67,863 67,863 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-27
<PAGE> 132
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 3,800 203,943 LAPSED LAPSED LAPSED 68,946 68,946 200,000
27 72 3,800 218,130 69,779 69,779 200,000
28 73 3,800 233,026 70,230 70,230 200,000
29 74 3,800 248,668 70,150 70,150 200,000
30 75 3,800 265,091 69,418 69,418 200,000
31 76 3,800 282,336 67,887 67,887 200,000
32 77 3,800 300,442 65,379 65,379 200,000
33 78 3,800 319,454 61,674 61,674 200,000
34 79 3,800 339,417 56,476 56,476 200,000
35 80 3,800 360,378 49,409 49,409 200,000
36 81 3,800 382,387 40,025 40,025 200,000
37 82 3,800 405,496 27,699 27,699 200,000
38 83 3,800 429,761 11,670 11,670 200,000
39 84 3,800 455,239 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-28
<PAGE> 133
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- --------------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 3,800 0 2,606 200,000 0 2,971 200,000 0 2,971 200,000
5 3,800 5,594 8,634 200,000 10,347 13,387 200,000 13,547 16,587 200,000
10 3,800 10,447 12,347 200,000 28,505 30,405 200,000 40,353 42,253 200,000
20 3,800 LAPSED LAPSED LAPSED 88,705 88,705 200,000 150,017 150,017 200,000
@ Age 70 3,800 LAPSED LAPSED LAPSED 147,519 147,519 200,000 266,492 266,492 309,131
@ Age 85 3,800 LAPSED LAPSED LAPSED 744,892 744,892 782,136 1,289,177 1,289,177 1,353,636
@ Age 90 3,800 LAPSED LAPSED LAPSED 1,206,011 1,206,011 1,266,312 2,087,630 2,087,630 2,192,011
</TABLE>
* Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- ------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- ------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-29
<PAGE> 134
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------ ------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,800 3,990 0 2,606 200,000 0 2,971 200,000 0 2,971 200,000
2 47 3,800 8,180 1,270 4,310 200,000 2,299 5,339 200,000 3,012 6,052 200,000
3 48 3,800 12,578 2,853 5,893 200,000 4,822 7,862 200,000 6,248 9,288 200,000
4 49 3,800 17,197 4,293 7,333 200,000 7,497 10,537 200,000 9,733 12,773 200,000
5 50 3,800 22,047 5,594 8,634 200,000 10,347 13,387 200,000 13,547 16,587 200,000
6 51 3,800 27,140 6,735 9,775 200,000 13,372 16,412 200,000 17,731 20,771 200,000
7 52 3,800 32,487 7,695 10,735 200,000 16,576 19,616 200,000 22,354 25,394 200,000
8 53 3,800 38,101 8,856 11,516 200,000 20,368 23,028 200,000 27,825 30,485 200,000
9 54 3,800 43,996 9,773 12,053 200,000 24,334 26,614 200,000 33,804 36,084 200,000
10 55 3,800 50,186 10,447 12,347 200,000 28,505 30,405 200,000 40,353 42,253 200,000
11 56 3,800 56,685 10,878 12,398 200,000 32,917 34,437 200,000 47,489 49,009 200,000
12 57 3,800 63,509 11,020 12,160 200,000 37,572 38,712 200,000 55,237 56,377 200,000
13 58 3,800 70,675 10,870 11,630 200,000 42,514 43,274 200,000 63,636 64,396 200,000
14 59 3,800 78,199 10,403 10,783 200,000 47,776 48,156 200,000 72,743 73,123 200,000
15 60 3,800 86,098 9,589 9,589 200,000 53,400 53,400 200,000 82,664 82,664 200,000
16 61 3,800 94,393 8,307 8,307 200,000 59,364 59,364 200,000 93,428 93,428 200,000
17 62 3,800 103,103 6,573 6,573 200,000 65,810 65,810 200,000 105,320 105,320 200,000
18 63 3,800 112,248 4,302 4,302 200,000 72,786 72,786 200,000 118,536 118,536 200,000
19 64 3,800 121,851 1,449 1,449 200,000 80,392 80,392 200,000 133,344 133,344 200,000
20 65 3,800 131,933 LAPSED LAPSED LAPSED 88,705 88,705 200,000 150,017 150,017 200,000
21 66 3,800 142,520 97,888 97,888 200,000 168,904 168,904 202,685
22 67 3,800 153,636 108,100 108,100 200,000 189,922 189,922 226,007
23 68 3,800 165,308 119,582 119,582 200,000 213,034 213,034 251,380
24 69 3,800 177,563 132,609 132,609 200,000 238,472 238,472 279,012
25 70 3,800 190,431 147,519 147,519 200,000 266,492 266,492 309,131
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-30
<PAGE> 135
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 3,800 203,943 164,746 164,746 200,000 297,338 297,338 341,939
27 72 3,800 218,130 184,755 184,755 208,773 331,497 331,497 374,592
28 73 3,800 233,026 207,108 207,108 229,890 369,352 369,352 409,981
29 74 3,800 248,668 231,896 231,896 252,766 411,355 411,355 448,377
30 75 3,800 265,091 259,465 259,465 277,628 458,054 458,054 490,118
31 76 3,800 282,336 290,238 290,238 304,750 510,103 510,103 535,608
32 77 3,800 300,442 324,088 324,088 340,292 567,482 567,482 595,856
33 78 3,800 319,454 361,303 361,303 379,368 630,705 630,705 662,240
34 79 3,800 339,417 402,199 402,199 422,309 700,325 700,325 735,342
35 80 3,800 360,378 447,110 447,110 469,465 776,944 776,944 815,791
36 81 3,800 382,387 496,389 496,389 521,208 861,218 861,218 904,279
37 82 3,800 405,496 550,409 550,409 577,929 953,851 953,851 1,001,543
38 83 3,800 429,761 609,553 609,553 640,030 1,055,617 1,055,617 1,108,398
39 84 3,800 455,239 674,233 674,233 707,945 1,167,136 1,167,136 1,225,492
40 85 3,800 481,991 744,892 744,892 782,136 1,289,177 1,289,177 1,353,636
41 86 3,800 510,081 822,015 822,015 863,116 1,422,533 1,422,533 1,493,660
42 87 3,800 539,575 906,139 906,139 951,446 1,568,005 1,568,005 1,646,405
43 88 3,800 570,543 997,798 997,798 1,047,688 1,726,586 1,726,586 1,812,916
44 89 3,800 603,061 1,097,549 1,097,549 1,152,426 1,899,433 1,899,433 1,994,405
45 90 3,800 637,204 1,206,011 1,206,011 1,266,312 2,087,630 2,087,630 2,192,011
46 91 3,800 673,054 1,323,820 1,323,820 1,390,011 2,292,001 2,292,001 2,406,601
47 92 3,800 710,696 1,455,866 1,455,866 1,514,101 2,520,624 2,520,624 2,621,449
48 93 3,800 750,221 1,604,541 1,604,541 1,652,677 2,777,683 2,777,683 2,861,013
49 94 3,800 791,722 1,772,779 1,772,779 1,808,235 3,068,447 3,068,447 3,129,816
50 95 3,800 835,299 1,964,456 1,964,456 1,984,101 3,398,929 3,398,929 3,432,918
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-31
<PAGE> 136
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 96 3,800 881,053 2,175,583 2,175,583 2,197,339 3,765,214 3,765,214 3,802,866
52 97 3,800 929,096 2,407,207 2,407,207 2,431,279 4,169,958 4,169,958 4,211,658
53 98 3,800 979,541 2,658,969 2,658,969 2,685,559 4,616,941 4,616,941 4,663,111
54 99 3,800 1,032,508 2,933,047 2,933,047 2,962,377 5,110,713 5,110,713 5,161,820
55 100 3,800 1,088,123 3,234,984 3,234,984 3,267,334 5,656,140 5,656,140 5,712,702
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $3,800.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-32
<PAGE> 137
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,810 201,810 0 1,810 201,810 0 1,810 201,810
5 2,650 4,488 6,608 206,608 4,488 6,608 206,608 6,196 8,316 208,316
10 2,650 9,006 10,331 210,331 9,006 10,331 210,331 14,422 15,747 215,747
20 2,650 4,947 4,947 204,947 4,947 4,947 204,947 21,438 21,438 221,438
@ Age 70 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 15,169 15,169 215,169
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 31 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- ------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- ------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-33
<PAGE> 138
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,810 201,810 0 1,810 201,810 0 1,810 201,810
2 47 2,650 5,704 1,006 3,126 203,126 1,006 3,126 203,126 1,410 3,530 203,530
3 48 2,650 8,772 2,235 4,355 204,355 2,235 4,355 204,355 3,039 5,159 205,159
4 49 2,650 11,993 3,404 5,524 205,524 3,404 5,524 205,524 4,626 6,746 206,746
5 50 2,650 15,375 4,488 6,608 206,608 4,488 6,608 206,608 6,196 8,316 208,316
6 51 2,650 18,926 5,466 7,586 207,586 5,466 7,586 207,586 7,749 9,869 209,869
7 52 2,650 22,655 6,337 8,457 208,457 6,337 8,457 208,457 9,285 11,405 211,405
8 53 2,650 26,570 7,369 9,224 209,224 7,369 9,224 209,224 11,045 12,900 212,900
9 54 2,650 30,681 8,250 9,840 209,840 8,250 9,840 209,840 12,766 14,356 214,356
10 55 2,650 34,998 9,006 10,331 210,331 9,006 10,331 210,331 14,422 15,747 215,747
11 56 2,650 39,530 9,590 10,650 210,650 9,590 10,650 210,650 15,992 17,052 217,052
12 57 2,650 44,289 10,004 10,799 210,799 10,004 10,799 210,799 17,453 18,248 218,248
13 58 2,650 49,286 10,250 10,780 210,780 10,250 10,780 210,780 18,782 19,312 219,312
14 59 2,650 54,533 10,282 10,547 210,547 10,282 10,547 210,547 19,933 20,198 220,198
15 60 2,650 60,042 10,103 10,103 210,103 10,103 10,103 210,103 20,860 20,860 220,860
16 61 2,650 65,827 9,689 9,689 209,689 9,689 9,689 209,689 21,540 21,540 221,540
17 62 2,650 71,901 9,017 9,017 209,017 9,017 9,017 209,017 21,928 21,928 221,928
18 63 2,650 78,278 8,021 8,021 208,021 8,021 8,021 208,021 22,002 22,002 222,002
19 64 2,650 84,975 6,679 6,679 206,679 6,679 6,679 206,679 21,838 21,838 221,838
20 65 2,650 92,006 4,947 4,947 204,947 4,947 4,947 204,947 21,438 21,438 221,438
21 66 2,650 99,389 2,783 2,783 202,783 2,783 2,783 202,783 20,781 20,781 220,781
22 67 2,650 107,141 166 166 200,166 166 166 200,166 19,823 19,823 219,823
23 68 2,650 115,280 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 18,566 18,566 218,566
24 69 2,650 123,827 17,013 17,013 217,013
25 70 2,650 132,801 15,169 15,169 215,169
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-34
<PAGE> 139
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 12,989 12,989 212,989
27 72 2,650 152,117 10,523 10,523 210,523
28 73 2,650 162,505 7,680 7,680 207,680
29 74 2,650 173,413 4,368 4,368 204,368
30 75 2,650 184,866 523 523 200,523
31 76 2,650 196,892 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-35
<PAGE> 140
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,810 201,810 0 1,937 201,937 0 1,937 201,937
5 2,650 4,488 6,608 206,608 6,040 8,160 208,160 7,959 10,079 210,079
10 2,650 9,006 10,331 210,331 14,226 15,551 215,551 21,021 22,346 222,346
20 2,650 4,947 4,947 204,947 21,405 21,405 221,405 47,924 47,924 247,924
@ Age 70 2,650 LAPSED LAPSED LAPSED 9,907 9,907 209,907 55,458 55,458 255,458
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 27 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 39 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- ------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- ------------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-36
<PAGE> 141
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,810 201,810 0 1,937 201,937 0 1,937 201,937
2 47 2,650 5,704 1,006 3,126 203,126 1,358 3,478 203,478 1,775 3,895 203,895
3 48 2,650 8,772 2,235 4,355 204,355 2,900 5,020 205,020 3,755 5,875 205,875
4 49 2,650 11,993 3,404 5,524 205,524 4,469 6,589 206,589 5,807 7,927 207,927
5 50 2,650 15,375 4,488 6,608 206,608 6,040 8,160 208,160 7,959 10,079 210,079
6 51 2,650 18,926 5,466 7,586 207,586 7,590 9,710 209,710 10,216 12,336 212,336
7 52 2,650 22,655 6,337 8,457 208,457 9,118 11,238 211,238 12,584 14,704 214,704
8 53 2,650 26,570 7,369 9,224 209,224 10,888 12,743 212,743 15,307 17,162 217,162
9 54 2,650 30,681 8,250 9,840 209,840 12,583 14,173 214,173 18,126 19,716 219,716
10 55 2,650 34,998 9,006 10,331 210,331 14,226 15,551 215,551 21,021 22,346 222,346
11 56 2,650 39,530 9,590 10,650 210,650 15,764 16,824 216,824 23,971 25,031 225,031
12 57 2,650 44,289 10,004 10,799 210,799 17,193 17,988 217,988 26,954 27,749 227,749
13 58 2,650 49,286 10,250 10,780 210,780 18,507 19,037 219,037 29,946 30,476 230,476
14 59 2,650 54,533 10,282 10,547 210,547 19,652 19,917 219,917 32,901 33,166 233,166
15 60 2,650 60,042 10,103 10,103 210,103 20,618 20,618 220,618 35,765 35,765 235,765
16 61 2,650 65,827 9,689 9,689 209,689 21,380 21,380 221,380 38,518 38,518 238,518
17 62 2,650 71,901 9,017 9,017 209,017 21,909 21,909 221,909 41,111 41,111 241,111
18 63 2,650 78,278 8,021 8,021 208,021 22,121 22,121 222,121 43,512 43,512 243,512
19 64 2,650 84,975 6,679 6,679 206,679 21,975 21,975 221,975 45,785 45,785 245,785
20 65 2,650 92,006 4,947 4,947 204,947 21,405 21,405 221,405 47,924 47,924 247,924
21 66 2,650 99,389 2,783 2,783 202,783 20,340 20,340 220,340 49,897 49,897 249,897
22 67 2,650 107,141 166 166 200,166 18,734 18,734 218,734 51,649 51,649 251,649
23 68 2,650 115,280 LAPSED LAPSED LAPSED 16,508 16,508 216,508 53,167 53,167 253,167
24 69 2,650 123,827 13,610 13,610 213,610 54,441 54,441 254,441
25 70 2,650 132,801 9,907 9,907 209,907 55,458 55,458 255,458
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-37
<PAGE> 142
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 5,287 5,287 205,287 56,158 56,158 256,158
27 72 2,650 152,117 LAPSED LAPSED LAPSED 56,573 56,573 256,573
28 73 2,650 162,505 56,591 56,591 256,591
29 74 2,650 173,413 56,096 56,096 256,096
30 75 2,650 184,866 54,988 54,988 254,988
31 76 2,650 196,892 53,188 53,188 253,188
32 77 2,650 209,519 50,590 50,590 250,590
33 78 2,650 222,777 47,054 47,054 247,054
34 79 2,650 236,699 42,488 42,488 242,488
35 80 2,650 251,316 36,741 36,741 236,741
36 81 2,650 266,665 29,683 29,683 229,683
37 82 2,650 282,780 21,150 21,150 221,150
38 83 2,650 299,702 11,021 11,021 211,021
39 84 2,650 317,469 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-38
<PAGE> 143
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- ---------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,810 201,810 0 2,064 202,064 0 2,064 202,064
5 2,650 4,488 6,608 206,608 7,884 10,004 210,004 10,034 12,154 212,154
10 2,650 9,006 10,331 210,331 21,959 23,284 223,284 30,558 31,883 231,883
20 2,650 4,947 4,947 204,947 63,084 63,084 263,084 108,247 108,247 308,247
@ Age 70 2,650 LAPSED LAPSED LAPSED 86,443 86,443 286,443 175,713 175,713 375,713
@ Age 85 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 644,519 644,519 844,519
@ Age 90 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 941,666 941,666 1,141,666
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 40 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------- -------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------- -------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-39
<PAGE> 144
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,810 201,810 0 2,064 202,064 0 2,064 202,064
2 47 2,650 5,704 1,066 3,126 203,126 1,726 3,846 203,846 2,156 4,276 204,276
3 48 2,650 8,772 2,235 4,355 204,355 3,625 5,745 205,745 4,532 6,652 206,652
4 49 2,650 11,993 3,404 5,524 205,524 5,681 7,801 207,801 7,141 9,261 209,261
5 50 2,650 15,375 4,488 6,608 206,608 7,884 10,004 210,004 10,034 12,154 212,154
6 51 2,650 18,926 5,466 7,586 207,586 10,225 12,345 212,345 13,241 15,361 215,361
7 52 2,650 22,655 6,337 8,457 208,457 12,719 14,839 214,839 16,796 18,916 218,916
8 53 2,650 26,570 7,369 9,224 209,224 15,648 17,503 217,503 20,977 22,832 222,832
9 54 2,650 30,681 8,250 9,840 209,840 18,715 20,305 220,305 25,559 27,149 227,149
10 55 2,650 34,998 9,006 10,331 210,331 21,959 23,284 223,284 30,558 31,883 231,883
11 56 2,650 39,530 9,590 10,650 210,650 25,351 26,411 226.411 35,996 37,056 237,056
12 57 2,650 44,289 10,004 10,799 210,799 28,905 29,700 229,700 41,895 42,690 242,690
13 58 2,650 49,286 10,250 10,780 210,780 32,639 33,169 233,169 48,279 48,809 248,809
14 59 2,650 54,533 10,282 10,547 210,547 36,523 36,788 236,788 55,151 55,416 255,416
15 60 2,650 60,042 10,103 10,103 210,103 40,573 40,573 240,573 62,514 62,514 262,514
16 61 2,650 65,827 9,689 9,689 209,689 44,795 44,795 244,795 70,409 70,409 270,409
17 62 2,650 71,901 9,017 9,017 209,017 49,199 49,199 249,199 78,859 78,859 278,859
18 63 2,650 78,278 8,021 8,021 208,021 53,727 53,727 253,727 87,899 87,899 287,899
19 64 2,650 84,975 6,679 6,679 206,679 58,368 58,368 258,368 97,668 97,668 297,668
20 65 2,650 92,006 4,947 4,947 204,947 63,084 63,084 263,084 108,247 108,247 308,247
21 66 2,650 99,389 2,783 2,783 202,783 67,832 67,832 267,832 119,697 119,697 319,697
22 67 2,650 107,141 166 166 200,166 72,591 72,591 272,591 132,064 132,064 332,064
23 68 2,650 115,280 LAPSED LAPSED LAPSED 77,312 77,312 277,312 145,446 145,446 345,446
24 69 2,650 123,827 81,966 81,966 281,966 159,955 159,955 359,955
25 70 2,650 132,801 86,443 86,443 286,443 175,713 175,713 375,713
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-40
<PAGE> 145
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES
----------------------------------------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 90,649 90,649 290,649
27 72 2,650 152,117 94,455 94,455 294,455
28 73 2,650 162,505 297,664 97,664 297,664
29 74 2,650 173,413 100,086 100,086 300,086
30 75 2,650 184,866 101,509 101,509 301,509
31 76 2,650 196,892 101,723 101,723 301,723
32 77 2,650 209,519 100,496 100,496 300,496
33 78 2,650 222,777 97,621 97,621 297,621
34 79 2,650 236,699 92,815 92,815 292,815
35 80 2,650 251,316 85,718 85,718 285,718
36 81 2,650 266,665 75,903 75,903 275,903
37 82 2,650 282,780 62,793 62,793 262,793
38 83 2,650 299,702 45,726 45,726 245,726
39 84 2,650 317,469 23,939 23,939 223,939
40 85 2,650 336,125 LAPSED LAPSED LAPSED
41 86 2,650 355,714
42 87 2,650 376,282
43 88 2,650 397,879
44 89 2,650 420,555
45 90 2,650 444,366
46 91 2,650 469,366
47 92 2,650 495,617
48 93 2,650 523,181
49 94 2,650 552,122
50 95 2,650 582,511
<CAPTION>
CURRENT CHARGES
---------------------------------
12.00% (11.25% NET)
END
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
26 192,806 192,806 392,806
27 211,429 211,429 411,429
28 231,649 231,649 431,649
29 253,537 253,537 453,537
30 277,202 277,202 477,202
31 302,786 302,786 502,786
32 330,422 330,422 530,422
33 360,235 360,235 560,235
34 392,411 392,411 592,411
35 427,110 427,110 627,110
36 464,530 464,530 664,530
37 504,869 504,869 704,869
38 548,398 548,398 748,398
39 594,913 594,913 794,913
40 644,519 644,519 844,519
41 697,331 697,331 897,331
42 753,403 753,403 953,403
43 812,622 812,622 1,012,622
44 875,338 875,338 1,075,338
45 941,666 941,666 1,141,666
46 1,011,312 1,011,312 1,211,312
47 1,084,749 1,084,749 1,284,749
48 1,162,104 1,162,104 1,362,104
49 1,244,066 1,244,066 1,444,066
50 1,330,905 1,330,905 1,530,905
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-41
<PAGE> 146
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 96 2,650 614,419
52 97 2,650 647,922
53 98 2,650 683,101
54 99 2,650 720,038
55 100 2,650 758,823
<CAPTION>
CURRENT CHARGES
---------------------------------
12.00% (11.25% NET)
END
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
51 1,424,351 1,424,351 1,624,351
52 1,525,313 1,525,313 1,725,313
53 1,633,324 1,633,324 1,833,324
54 1,748,657 1,748,657 1,948,657
55 1,869,936 1,869,936 2,069,936
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 2 Version 98.09.01
Initial Modal Premium: $2,650.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-42
<PAGE> 147
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,450 0 907 200,000 0 907 200,000 0 907 200,000
5 1,450 2,407 3,567 200,000 2,407 3,567 200,000 3,030 4,190 200,000
10 1,450 5,271 5,996 200,000 5,271 5,996 200,000 7,025 7,750 200,000
20 1,450 7,114 7,114 200,000 7,114 7,114 200,000 12,943 12,943 200,000
@ Age 70 1,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 35 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
---------------------------------------------- ----------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
---------------------------------------------- ----------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-43
<PAGE> 148
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
END PREMIUM
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,450 1,523 0 907 200,000 0 907 200,000 0 907 200,000
2 37 1,450 3,121 456 1,616 200,000 456 1,616 200,000 645 1,805 200,000
3 38 1,450 4,800 1,136 2,296 200,000 1,136 2,296 200,000 1,487 2,647 200,000
4 39 1,450 6,562 1,786 2,946 200,000 1,786 2,946 200,000 2,274 3,434 200,000
5 40 1,450 8,413 2,407 3,567 200,000 2,407 3,567 200,000 3,030 4,190 200,000
6 41 1,450 10,356 2,975 4,135 200,000 2,975 4,135 200,000 3,755 4,915 200,000
7 42 1,450 12,396 3,516 4,676 200,000 3,516 4,676 200,000 4,474 5,634 200,000
8 43 1,450 14,539 4,151 5,166 200,000 4,151 5,166 200,000 5,331 6,346 200,000
9 44 1,450 16,788 4,736 5,606 200,000 4,736 5,606 200,000 6,181 7,051 200,000
10 45 1,450 19,150 5,271 5,996 200,000 5,271 5,996 200,000 7,025 7,750 200,000
11 46 1,450 21,630 5,757 6,337 200,000 5,757 6,337 200,000 7,862 8,442 200,000
12 47 1,450 24,234 6,195 6,630 200,000 6,195 6,630 200,000 8,693 9,128 200,000
13 48 1,450 26,968 6,562 6,852 200,000 6,562 6,852 200,000 9,472 9,762 200,000
14 49 1,450 29,839 6,881 7,026 200,000 6,881 7,026 200,000 10,177 10,322 200,000
15 50 1,450 32,853 7,131 7,131 200,000 7,131 7,131 200,000 10,810 10,810 200,000
16 51 1,450 36,019 7,334 7,334 200,000 7,334 7,334 200,000 11,396 11,396 200,000
17 52 1,450 39,342 7,446 7,446 200,000 7,446 7,446 200,000 11,910 11,910 200,000
18 53 1,450 42,832 7,465 7,465 200,000 7,465 7,465 200,000 12,331 12,331 200,000
19 54 1,450 46,496 7,347 7,347 200,000 7,347 7,347 200,000 12,682 12,682 200,000
20 55 1,450 50,343 7,114 7,114 200,000 7,114 7,114 200,000 12,943 12,943 200,000
21 56 1,450 54,383 6,723 6,723 200,000 6,723 6,723 200,000 13,135 13,135 200,000
22 57 1,450 58,624 6,171 6,171 200,000 6,171 6,171 200,000 13,214 13,214 200,000
23 58 1,450 63,078 5,459 5,459 200,000 5,459 5,459 200,000 13,183 13,183 200,000
24 59 1,450 67,754 4,538 4,538 200,000 4,538 4,538 200,000 13,041 13,041 200,000
25 60 1,450 72,665 3,408 3,408 200,000 3,408 3,408 200,000 12,744 12,744 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-44
<PAGE> 149
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 61 1,450 77,820 2,019 2,019 200,000 2,019 2,019 200,000 12,292 12,292 200,000
27 62 1,450 83,234 365 365 200,000 365 365 200,000 11,685 11,685 200,000
28 63 1,450 88,918 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 10,877 10,877 200,000
29 64 1,450 94,886 9,867 9,867 200,000
30 65 1,450 101,153 8,629 8,629 200,000
31 66 1,450 107,733 7,138 7,138 200,000
32 67 1,450 114,642 5,342 5,342 200,000
33 68 1,450 121,897 3,235 3,235 200,000
34 69 1,450 129,514 807 807 200,000
35 70 1,450 137,513 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-45
<PAGE> 150
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,450 0 907 200,000 0 974 200,000 0 974 200,000
5 1,450 2,407 3,567 200,000 3,235 4,395 200,000 3,943 5,103 200,000
10 1,450 5,271 5,996 200,000 8,161 8,886 200,000 10,376 11,101 200,000
20 1,450 7,114 7,114 200,000 17,899 17,899 200,000 27,027 27,027 200,000
@ Age 70 1,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 47,940 47,940 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 35 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 49 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
---------------------------------------------- ------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
---------------------------------------------- ------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-46
<PAGE> 151
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,450 1,523 0 907 200,000 0 974 200,000 0 974 200,000
2 37 1,450 3,121 456 1,616 200,000 641 1,801 200,000 835 1,995 200,000
3 38 1,450 4,800 1,136 2,296 200,000 1,487 2,647 200,000 1,860 3,020 200,000
4 39 1,450 6,562 1,786 2,946 200,000 2,351 3,511 200,000 2,887 4,047 200,000
5 40 1,450 8,413 2,407 3,567 200,000 3,235 4,395 200,000 3,943 5,103 200,000
6 41 1,450 10,356 2,975 4,135 200,000 4,117 5,277 200,000 5,027 6,187 200,000
7 42 1,450 12,396 3,516 4,676 200,000 5,020 6,180 200,000 6,166 7,326 200,000
8 43 1,450 14,539 4,151 5,166 200,000 6,067 7,082 200,000 7,508 8,523 200,000
9 44 1,450 16,788 4,736 5,606 200,000 7,114 7,984 200,000 8,910 9,780 200,000
10 45 1,450 19,150 5,271 5,996 200,000 8,161 8,886 200,000 10,376 11,101 200,000
11 46 1,450 21,630 5,757 6,337 200,000 9,208 9,788 200,000 11,908 12,488 200,000
12 47 1,450 24,234 6,195 6,630 200,000 10,257 10,692 200,000 13,510 13,945 200,000
13 48 1,450 26,968 6,562 6,852 200,000 11,283 11,573 200,000 15,141 15,431 200,000
14 49 1,450 29,839 6,881 7,026 200,000 12,310 12,455 200,000 16,779 16,924 200,000
15 50 1,450 32,853 7,131 7,131 200,000 13,316 13,316 200,000 18,427 18,427 200,000
16 51 1,450 36,019 7,334 7,334 200,000 14,329 14,329 200,000 20,116 20,116 200,000
17 52 1,450 39,342 7,446 7,446 200,000 15,306 15,306 200,000 21,827 21,827 200,000
18 53 1,450 42,832 7,465 7,465 200,000 16,247 16,247 200,000 23,540 23,540 200,000
19 54 1,450 46,496 7,347 7,347 200,000 17,105 17,105 200,000 25,280 25,280 200,000
20 55 1,450 50,343 7,114 7,114 200,000 17,899 17,899 200,000 27,027 27,027 200,000
21 56 1,450 54,383 6,723 6,723 200,000 18,582 18,582 200,000 28,805 28,805 200,000
22 57 1,450 58,624 6,171 6,171 200,000 19,148 19,148 200,000 30,575 30,575 200,000
23 58 1,450 63,078 5,459 5,459 200,000 19,593 19,593 200,000 32,339 32,339 200,000
24 59 1,450 67,754 4,538 4,538 200,000 19,865 19,865 200,000 34,098 34,098 200,000
25 60 1,450 72,665 3,408 3,408 200,000 19,954 19,954 200,000 35,814 35,814 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-47
<PAGE> 152
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 61 1,450 77,820 2,019 2,019 200,000 19,806 19,806 200,000 37,488 37,488 200,000
27 62 1,450 83,234 365 365 200,000 19,404 19,404 200,000 39,120 39,120 200,000
28 63 1,450 88,918 LAPSED LAPSED LAPSED 18,665 18,665 200,000 40,671 40,671 200,000
29 64 1,450 94,886 17,542 17,542 200,000 42,139 42,139 200,000
30 65 1,450 101,153 15,958 15,958 200,000 43,505 43,505 200,000
31 66 1,450 107,733 13,829 13,829 200,000 44,744 44,744 200,000
32 67 1,750 114,642 11,083 11,083 200,000 45,816 45,816 200,000
33 68 1,450 121,897 7,612 7,612 200,000 46,712 46,712 200,000
34 69 1,450 129,514 3,317 3,317 200,000 47,423 47,423 200,000
35 70 1,450 137,513 LAPSED LAPSED LAPSED 47,940 47,940 200,000
36 71 1,450 145,911 48,212 48,212 200,000
37 72 1,450 154,729 48,261 48,261 200,000
38 73 1,450 163,988 47,996 47,996 200,000
39 74 1,450 173,710 47,315 47,315 200,000
40 75 1,450 183,918 46,126 46,126 200,000
41 76 1,450 194,636 44,343 44,343 200,000
42 77 1,450 205,890 41,843 41,843 200,000
43 78 1,450 217,707 38,467 38,467 200,000
44 79 1,450 230,115 34,065 34,065 200,000
45 80 1,450 243,143 28,412 28,412 200,000
46 81 1,450 256,823 21,258 21,258 200,000
47 82 1,450 271,187 12,275 12,275 200,000
48 83 1,450 286,269 1,099 1,099 200,000
49 84 1,450 302,105 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-48
<PAGE> 153
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- --------------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,450 0 907 200,000 0 1,040 200,000 0 1,040 200,000
5 1,450 2,407 3,567 200,000 4,218 5,378 200,000 5,020 6,180 200,000
10 1,450 5,271 5,996 200,000 12,421 13,146 200,000 15,246 15,971 200,000
20 1,450 7,114 7,114 200,000 43,765 43,765 200,000 58,872 58,872 200,000
@ Age 70 1,450 LAPSED LAPSED LAPSED 200,642 200,642 232,745 299,404 299,404 347,309
@ Age 85 1,450 LAPSED LAPSED LAPSED 923,365 923,365 969,533 1,399,298 1,399,298 1,469,263
@ Age 90 1,450 LAPSED LAPSED LAPSED 1,483,409 1,483,409 1,557,580 2,286,647 2,286,647 2,400,980
</TABLE>
* Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
--------------------------------------------- ------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
--------------------------------------------- ------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-49
<PAGE> 154
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------- ----------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,450 1,523 0 907 200,000 0 1,040 200,000 0 1,040 200,000
2 37 1,450 3,121 456 1,616 200,000 834 1,994 200,000 1,035 2,195 200,000
3 38 1,450 4,800 1,136 2,296 200,000 1,869 3,029 200,000 2,266 3,426 200,000
4 39 1,450 6,562 1,786 2,946 200,000 2,994 4,154 200,000 3,582 4,742 200,000
5 40 1,450 8,413 2,407 3,567 200,000 4,218 5,378 200,000 5,020 6,180 200,000
6 41 1,450 10,356 2,975 4,135 200,000 5,530 6,690 200,000 6,591 7,751 200,000
7 42 1,450 12,396 3,516 4,676 200,000 6,963 8,123 200,000 8,335 9,495 200,000
8 43 1,450 14,539 4,151 5,166 200,000 8,652 9,667 200,000 10,417 11,432 200,000
9 44 1,450 16,788 4,736 5,606 200,000 10,467 11,337 200,000 12,713 13,583 200,000
10 45 1,450 19,150 5,271 5,996 200,000 12,421 13,146 200,000 15,246 15,971 200,000
11 46 1,450 21,630 5,757 6,337 200,000 14,530 15,110 200,000 18,043 18,623 200,000
12 47 1,450 24,234 6,195 6,630 200,000 16,815 17,250 200,000 21,132 21,567 200,000
13 48 1,450 26,968 6,562 6,852 200,000 19,272 19,562 200,000 24,502 24,792 200,000
14 49 1,450 29,839 6,881 7,026 200,000 21,945 22,090 200,000 28,163 28,308 200,000
15 50 1,450 32,853 7,131 7,131 200,000 24,838 24,838 200,000 32,149 32,149 200,000
16 51 1,450 36,019 7,334 7,334 200,000 28,015 28,015 200,000 36,539 36,539 200,000
17 52 1,450 39,342 7,446 7,446 200,000 31,469 31,469 200,000 41,359 41,359 200,000
18 53 1,450 42,832 7,465 7,465 200,000 35,235 35,235 200,000 46,641 46,641 200,000
19 54 1,450 46,496 7,347 7,347 200,000 39,313 39,313 200,000 52,463 52,463 200,000
20 55 1,450 50,343 7,114 7,114 200,000 43,765 43,765 200,000 58,872 58,872 200,000
21 56 1,450 54,383 6,723 6,723 200,000 48,601 48,601 200,000 65,958 65,958 200,000
22 57 1,450 58,624 6,171 6,171 200,000 53,875 53,875 200,000 73,771 73,771 200,000
23 58 1,450 63,078 5,459 5,459 200,000 59,649 59,649 200,000 82,404 82,404 200,000
24 59 1,450 67,754 4,538 4,538 200,000 65,958 65,958 200,000 91,964 91,964 200,000
25 60 1,450 72,665 3,408 3,408 200,000 72,881 72,881 200,000 102,544 102,544 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-50
<PAGE> 155
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 61 1,450 77,820 2,019 2,019 200,000 80,477 80,477 200,000 114,283 114,283 200,000
27 62 1,450 83,234 365 365 200,000 88,852 88,852 200,000 127,338 127,338 200,000
28 63 1,450 88,918 LAPSED LAPSED LAPSED 98,085 98,085 200,000 141,873 141,873 200,000
29 64 1,450 94,886 108,307 108,307 200,000 158,098 158,098 200,000
30 65 1,450 101,153 119,662 119,662 200,000 176,191 176,191 214,954
31 66 1,450 107,733 132,329 132,329 200,000 196,208 196,208 235,450
32 67 1,450 114,642 146,538 146,538 200,000 218,305 218,305 259,783
33 68 1,450 121,897 162,562 162,562 200,000 242,703 242,703 286,389
34 69 1,450 129,514 180,655 180,655 211,366 269,645 269,645 315,485
35 70 1,450 137,513 200,642 200,642 232,745 299,404 299,404 347,309
36 71 1,450 145,911 222,643 222,643 256,040 332,272 332,272 382,112
37 72 1,450 154,729 246,958 246,958 279,063 368,682 368,682 416,610
38 73 1,450 163,988 273,860 273,860 303,985 409,031 409,031 454,024
39 74 1,450 173,710 303,677 303,677 331,007 453,775 453,775 494,614
40 75 1,450 183,918 336,797 336,797 360,373 503,445 503,445 538,686
41 76 1,450 194,636 373,693 373,693 392,378 558,663 558,663 586,596
42 77 1,450 205,890 414,342 414,342 435,059 619,683 619,683 650,667
43 78 1,450 217,707 459,106 459,106 482,061 687,086 687,086 721,441
44 79 1,450 230,115 508,373 508,373 533,792 761,520 761,520 799,596
45 80 1,450 243,143 562,557 562,557 590,685 843,681 843,681 885,865
46 81 1,450 256,823 622,100 622,100 653,205 934,337 934,337 981,054
47 82 1,450 271,187 687,461 687,461 721,834 1,034,318 1,034,318 1,086,034
48 83 1,450 286,269 759,120 759,120 797,075 1,144,542 1,144,542 1,201,770
49 84 1,450 302,105 837,576 837,576 879,455 1,265,871 1,265,871 1,329,164
50 85 1,450 318,732 923,365 923,365 969,533 1,399,298 1,399,298 1,469,263
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-51
<PAGE> 156
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 86 1,450 336,191 1,017,053 1,017,053 1,067,906
52 87 1,450 354,524 1,119,241 1,119,241 1,175,203
53 88 1,450 373,772 1,230,580 1,230,580 1,292,109
54 89 1,450 393,983 1,351,737 1,351,737 1,419,324
55 90 1,450 415,205 1,483,409 1,483,409 1,557,580
56 91 1,450 437,488 1,626,283 1,626,283 1,707,597
57 92 1,450 460,885 1,786,018 1,786,018 1,857,458
58 93 1,450 485,451 1,965,579 1,965,579 2,024,546
59 94 1,450 511,246 2,168,618 2,168,618 2,211,990
60 95 1,450 538,331 2,399,877 2,399,877 2,423,876
61 96 1,450 566,770 2,654,559 2,654,559 2,681,104
62 97 1,450 596,631 2,933,944 2,933,944 2,963,283
63 98 1,450 627,985 3,237,572 3,237,572 3,269,947
64 99 1,450 660,907 3,568,075 3,568,075 3,603,756
65 100 1,450 695,475 3,932,173 3,932,173 3,971,495
<CAPTION>
CURRENT CHARGES
---------------------------------
END 12.00% (11.25% NET)
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
51 1,545,887 1,545,887 1,623,181
52 1,706,738 1,706,738 1,792,074
53 1,882,936 1,882,936 1,977,083
54 2,075,810 2,075,810 2,179,600
55 2,286,647 2,286,647 2,400,980
56 2,516,552 2,516,552 2,642,379
57 2,772,282 2,772,282 2,883,174
58 3,058,014 3,058,014 3,149,754
59 3,379,046 3,379,046 3,446,627
60 3,741,639 3,741,639 3,779,055
61 4,142,617 4,142,617 4,184,043
62 4,586,031 4,586,031 4,631,891
63 5,076,124 5,076,124 5,126,885
64 5,617,655 5,617,655 5,673,831
65 6,215,513 6,215,513 6,277,668
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $1,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-52
<PAGE> 157
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4,450 0 3,082 200,000 0 3,082 200,000 0 3,082 200,000
5 4,450 5,750 9,310 200,000 5,750 9,310 200,000 10,867 14,427 200,000
10 4,450 9,214 11,439 200,000 9,214 11,439 200,000 24,879 27,104 200,000
20 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 32,706 32,706 200,000
@ Age 70 4,450 2,898 2,898 200,000 2,898 2,898 200,000 34,647 34,647 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 16 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 16 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 28 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
----------------------------------------------- -------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
----------------------------------------------- -------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-53
<PAGE> 158
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 4,450 4,673 0 3,082 200,000 0 3,082 200,000 0 3,082 200,000
2 57 4,450 9,579 1,356 4,916 200,000 1,356 4,916 200,000 2,464 6,024 200,000
3 58 4,450 14,730 3,026 6,586 200,000 3,026 6,586 200,000 5,315 8,875 200,000
4 59 4,450 20,139 4,490 8,050 200,000 4,490 8,050 200,000 8,100 11,660 200,000
5 60 4,450 25,819 5,750 9,310 200,000 5,750 9,310 200,000 10,867 14,427 200,000
6 61 4,450 31,782 6,765 10,325 200,000 6,765 10,325 200,000 13,613 17,173 200,000
7 62 4,450 38,044 7,536 11,096 200,000 7,536 11,096 200,000 16,298 19,858 200,000
8 63 4,450 44,618 8,443 11,558 200,000 8,443 11,558 200,000 19,304 22,419 200,000
9 64 4,450 51,522 9,018 11,688 200,000 9,018 11,688 200,000 22,170 24,840 200,000
10 65 4,450 58,770 9,214 11,439 200,000 9,214 11,439 200,000 24,879 27,104 200,000
11 66 4,450 66,381 8,983 10,763 200,000 8,983 10,763 200,000 27,355 29,135 200,000
12 67 4,450 74,373 8,294 9,629 200,000 8,294 9,629 200,000 29,584 30,919 200,000
13 68 4,450 82,764 7,090 7,980 200,000 7,090 7,980 200,000 31,592 32,482 200,000
14 69 4,450 91,575 5,330 5,775 200,000 5,330 5,775 200,000 33,305 33,750 200,000
15 70 4,450 100,826 2,898 2,898 200,000 2,898 2,898 200,000 34,647 34,647 200,000
16 71 4,450 110,540 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 35,368 35,368 200,000
17 72 4,450 120,739 35,510 35,510 200,000
18 73 4,450 131,449 35,050 35,050 200,000
19 74 4,450 142,693 34,133 34,133 200,000
20 75 4,450 154,501 32,706 32,706 200,000
21 76 4,450 166,898 30,730 30,730 200,000
22 77 4,450 179,916 28,120 28,120 200,000
23 78 4,450 193,584 24,756 24,756 200,000
24 79 4,450 207,936 20,547 20,547 200,000
25 80 4,450 223,005 15,340 15,340 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-54
<PAGE> 159
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 81 4,450 238,828 8,977 8,977 200,000
27 82 4,450 255,441 1,248 1,248 200,000
28 83 4,450 272,886 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 0.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-55
<PAGE> 160
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- ----------------------------
0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4,450 0 3,082 200,000 0 3,296 200,000 0 3,296 200,000
5 4,450 5,750 9,310 200,000 8,213 11,773 200,000 13,907 17,467 200,000
10 4,450 9,214 11,439 200,000 17,081 19,306 200,000 36,480 38,705 200,000
20 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 84,411 84,411 200,000
@ Age 70 4,450 2,898 2,898 200,000 18,086 18,086 200,000 61,547 61,547 200,000
@ Age 85 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 128,434 128,434 200,000
@ Age 90 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 146,039 146,039 200,000
</TABLE>
* Policy lapses in policy year 16 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------- ---------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------- ---------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-56
<PAGE> 161
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ ------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 4,450 4,673 0 3,082 200,000 0 3,296 200,000 0 3,296 200,000
2 57 4,450 9,579 1,356 4,916 200,000 1,943 5,503 200,000 3,084 6,644 200,000
3 58 4,450 14,730 3,026 6,586 200,000 4,114 7,674 200,000 6,538 10,098 200,000
4 59 4,450 20,139 4,490 8,050 200,000 6,204 9,764 200,000 10,127 13,687 200,000
5 60 4,450 25,819 5,750 9,310 200,000 8,213 11,773 200,000 13,907 17,467 200,000
6 61 4,450 31,782 6,765 10,325 200,000 10,095 13,655 200,000 17,888 21,448 200,000
7 62 4,450 38,044 7,536 11,096 200,000 11,846 15,406 200,000 22,036 25,596 200,000
8 63 4,450 44,618 8,443 11,558 200,000 13,841 16,956 200,000 26,746 29,861 200,000
9 64 4,450 51,522 9,018 11,688 200,000 15,604 18,274 200,000 31,563 34,233 200,000
10 65 4,450 58,770 9,214 11,439 200,000 17,081 19,306 200,000 36,480 38,705 200,000
11 66 4,450 66,381 8,983 10,763 200,000 18,212 19,992 200,000 41,433 43,213 200,000
12 67 4,450 74,373 8,294 9,629 200,000 18,952 20,287 200,000 46,417 47,752 200,000
13 68 4,450 82,764 7,090 7,980 200,000 19,230 20,120 200,000 51,466 52,356 200,000
14 69 4,450 91,575 5,330 5,775 200,000 18,986 19,431 200,000 56,527 56,972 200,000
15 70 4,450 100,826 2,898 2,898 200,000 18,086 18,086 200,000 61,547 61,547 200,000
16 71 4,450 110,540 LAPSED LAPSED LAPSED 16,353 16,353 200,000 66,333 66,333 200,000
17 72 4,450 120,739 13,692 13,692 200,000 70,965 70,965 200,000
18 73 4,450 131,449 9,855 9,855 200,000 75,451 75,451 200,000
19 74 4,450 142,693 4,569 4,569 200,000 79,934 79,934 200,000
20 75 4,450 154,501 LAPSED LAPSED LAPSED 84,411 84,411 200,000
21 76 4,450 166,898 88,895 88,895 200,000
22 77 4,450 179,916 93,376 93,376 200,000
23 78 4,450 193,584 97,836 97,836 200,000
24 79 4,450 207,936 102,285 102,285 200,000
25 80 4,450 223,005 106,715 106,715 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-57
<PAGE> 162
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ ------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 81 4,450 238,828 111,134 111,134 200,000
27 82 4,450 255,441 115,545 115,545 200,000
28 83 4,450 272,886 119,979 119,979 200,000
29 84 4,450 291,203 124,283 124,283 200,000
30 85 4,450 310,436 128,434 128,434 200,000
31 86 4,450 330,630 132,418 132,418 200,000
32 87 4,450 351,834 136,204 136,204 200,000
33 88 4,450 374,098 139,710 139,710 200,000
34 89 4,450 397,475 142,994 142,994 200,000
35 90 4,450 422,022 146,039 146,039 200,000
36 91 4,450 447,795 148,714 148,714 200,000
37 92 4,450 474,857 151,067 151,067 200,000
38 93 4,450 503,273 153,040 153,040 200,000
39 94 4,450 533,109 154,671 154,671 200,000
40 95 4,450 564,437 155,866 155,866 200,000
41 96 4,450 597,331 156,805 156,805 200,000
42 97 4,450 631,870 157,466 157,466 200,000
43 98 4,450 668,136 157,473 157,473 200,000
44 99 4,450 706,216 156,443 156,443 200,000
45 100 4,450 746,199 153,332 153,332 200,000
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 6.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-58
<PAGE> 163
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- ---------------------------------
0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4,450 0 3,082 200,000 0 3,511 200,000 0 3,511 200,000
5 4,450 5,750 9,310 200,000 11,164 14,724 200,000 17,487 21,047 200,000
10 4,450 9,214 11,439 200,000 29,131 31,356 200,000 53,271 55,496 200,000
20 4,450 LAPSED LAPSED LAPSED 70,123 70,123 200,000 205,461 205,461 219,843
@ Age 70 4,450 2,898 2,898 200,000 49,787 49,787 200,000 110,334 110,334 200,000
@ Age 85 4,450 LAPSED LAPSED LAPSED 78,947 78,947 200,000 634,824 634,824 666,566
@ Age 90 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 1,060,805 1,060,805 1,113,845
</TABLE>
* Policy lapses in policy year 16 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 35 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
---------------------------------------------- -------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
---------------------------------------------- -------------
Signature of Representative Date
</TABLE>
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-59
<PAGE> 164
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
---------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 4,450 4,673 0 3,082 200,000 0 3,511 200,000 0 3,511 200,000
2 57 4,450 9,579 1,356 4,916 200,000 2,558 6,118 200,000 3,732 7,292 200,000
3 58 4,450 14,730 3,026 6,586 200,000 5,305 8,865 200,000 7,865 11,425 200,000
4 59 4,450 20,139 4,490 8,050 200,000 8,167 11,727 200,000 12,419 15,979 200,000
5 60 4,450 25,819 5,750 9,310 200,000 11,164 14,724 200,000 17,487 21,047 200,000
6 61 4,450 31,782 6,765 10,325 200,000 14,273 17,833 200,000 23,127 26,687 200,000
7 62 4,450 38,044 7,536 11,096 200,000 17,516 21,076 200,000 29,363 32,923 200,000
8 63 4,450 44,618 8,443 11,558 200,000 21,298 24,413 200,000 36,647 39,762 200,000
9 64 4,450 51,522 9,018 11,688 200,000 25,176 27,846 200,000 44,594 47,264 200,000
10 65 4,450 58,770 9,214 11,439 200,000 29,131 31,356 200,000 53,271 55,496 200,000
11 66 4,450 66,381 8,983 10,763 200,000 33,148 34,928 200,000 62,707 64,487 200,000
12 67 4,450 74,373 8,294 9,629 200,000 37,231 38,566 200,000 73,002 74,337 200,000
13 68 4,450 82,764 7,090 7,980 200,000 41,369 42,259 200,000 84,300 85,190 200,000
14 69 4,450 91,575 5,330 5,775 200,000 45,569 46,014 200,000 96,700 97,145 200,000
15 70 4,450 100,826 2,898 2,898 200,000 49,787 49,787 200,000 110,334 110,334 200,000
16 71 4,450 110,540 LAPSED LAPSED LAPSED 53,962 53,962 200,000 125,280 125,280 200,000
17 72 4,450 120,739 58,146 58,146 200,000 141,904 141,904 200,000
18 73 4,450 131,449 62,270 62,270 200,000 160,549 160,549 200,000
19 74 4,450 142,693 66,281 66,281 200,000 181,668 181,668 200,000
20 75 4,450 154,501 70,123 70,123 200,000 205,461 205,461 219,843
21 76 4,450 166,898 73,752 73,752 200,000 231,898 231,898 243,493
22 77 4,450 179,916 77,117 77,117 200,000 261,118 261,118 274,174
23 78 4,450 193,584 80,188 80,188 200,000 293,402 293,402 308,073
24 79 4,450 207,936 82,894 82,894 200,000 329,061 329,061 345,514
25 80 4,450 223,005 85,115 85,115 200,000 368,428 368,428 386,850
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-60
<PAGE> 165
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 81 4,450 238,828 86,685 86,685 200,000 411,875 411,875 432,468
27 82 4,450 255,441 87,325 87,325 200,000 459,799 459,799 482,789
28 83 4,450 272,886 86,648 86,648 200,000 512,643 512,643 538,275
29 84 4,450 291,203 84,103 84,103 200,000 570,825 570,825 599,366
30 85 4,450 310,436 78,947 78,947 200,000 634,824 634,824 666,566
31 86 4,450 330,630 70,091 70,091 200,000 705,154 705,154 740,412
32 87 4,450 351,834 55,932 55,932 200,000 782,347 782,347 821,464
33 88 4,450 374,098 34,066 34,066 200,000 866,930 866,930 910,276
34 89 4,450 397,475 719 719 200,000 959,541 959,541 1,007,518
35 90 4,450 422,022 LAPSED LAPSED LAPSED 1,060,805 1,060,805 1,113,845
36 91 4,450 447,795 1,171,260 1,171,260 1,229,823
37 92 4,450 474,857 1,294,083 1,294,083 1,345,847
38 93 4,450 503,273 1,431,265 1,431,265 1,474,203
39 94 4,450 533,109 1,585,329 1,585,329 1,617,036
40 95 4,450 564,437 1,759,260 1,759,260 1,776,853
41 96 4,450 597,331 1,951,608 1,951,608 1,971,124
42 97 4,450 631,870 2,164,314 2,164,314 2,185,957
43 98 4,450 668,136 2,399,418 2,399,418 2,423,412
44 99 4,450 706,216 2,659,201 2,659,201 2,685,793
45 100 4,450 746,199 2,946,013 2,946,013 2,975,473
</TABLE>
This is an illustration, not a policy.
Borrowed funds are credited at 4.50% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by policyowners, and the different
investment rates of return for MONY Series Fund, Inc. or Enterprise Accumulation
Trust portfolios. The Cash Value, Fund Value and Death Proceeds for a policy
would be different from those shown if the actual rates of investment return
applicable to the policy averaged 0.00% or 12.00% over a period of years, but
also fluctuated above or below those averages for individual policy years. No
representations can be made by MONY Life Insurance Company of America, MONY
Series Fund, Inc. or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option 1 Version 98.09.01
Initial Modal Premium: $4,450.00-Premium Mode: Annual-Riders: None Form # B2-98
</TABLE>
D-61
<PAGE> 166
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 167
PART II
(INFORMATION NOT REQUIRED IN A PROSPECTUS)
<PAGE> 168
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> 169
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The Facing Sheet.
Cross-Reference to items required by Form N-8B-2.
Prospectus consisting of pages.
The Undertaking to file reports.
The signatures.
Written consents of the following persons:
a. Edward P. Bank, Vice President and Deputy General Counsel, The
Mutual Life Insurance Company of New York
b. PricewaterhouseCoopers LLP, Independent Accountants
The following exhibits:
1. The following exhibits correspond to those required by paragraph A
of the instructions as exhibits to Form N-8B2:
(1) Resolution of the Board of Directors of MONY America
authorizing establishment of MONY America Variable Account L, filed as
Exhibit 1 to Registration Statement on Form S-6, dated February 21, 1985
(Registration Nos. 2-95900 and 811-4235), is incorporated herein by
reference.
(2) Not applicable.
(3) (a) Underwriting Agreement between MONY Life Insurance Company
of America, MONY Series Fund, Inc., and MONY Securities Corp., filed as
Exhibit 3(a) to Pre-Effective Amendment No. 1 to Registration Statement
on Form S-6, dated January 6, 1995 (Registration Nos. 33-82570 and
811-4235), is incorporated by referenced herein.
(b) Proposed specimen agreement between MONY Securities Corp. and
registered representatives, filed as Exhibit 3(b) of Pre-Effective
Amendment No. 1, dated December 17, 1990, to Registration Statement on
Form N-4 (Registration Nos. 33-37722 and 811-6126) is incorporated
herein by reference.
(c) Commission schedule (with Commission Contract), filed as
Exhibit 3(c) to Pre-Effective Amendment No. 1 to Registration Statement
on Form S-6, dated January 6, 1995 (Registration Nos. 33-82570 and
811-4235), is incorporated by referenced herein.
(4) Not applicable.
(5) Form of policy, filed as Exhibit 1(5) to Registration Statement
on Form S-6, dated June 16, 1998 (Registration Nos. 333-56969 and
811-4235), is incorporated herein by reference.
(6) Articles of Incorporation and By-Laws of MONY America filed as
Exhibits 6(a) and 6(b), respectively, to Registration Statement
Registration No. 33-13183) dated April 6, 1987, is incorporated herein
by reference.
(7) Not applicable.
(8) (a) Form of agreement to purchase shares. Application Form for
Flexible Premium Variable Universal Life Insurance Policy, filed as
Exhibit 1.(10) to Pre-Effective Amendment No. 1, dated January 6, 1995,
to Registration Statement on Form S-6 (Registration No. 33-82570), is
incorporated herein by reference.
(b) Investment Advisory Agreement between MONY Life Insurance
Company of America and MONY Series Fund, Inc. filed as Exhibit 5(i) to
Post-Effective amendment No. 14 to Registration Statement (Registration
Nos. 2-95501 and 811-4209) dated February 27, 1998, is incorporated
herein by reference.
II-2
<PAGE> 170
Portfolio Manager Agreement between Enterprise Capital Management,
Inc., ("Enterprise Capital") and The Enterprise Accumulation Trust
("Trust"), and Enterprise Capital, the Trust, and OpCap Advisors, as
sub-advisor, filed as Exhibit 5 to Post-Effective Amendment No. 8, dated
September 30, 1994, to Registration Statement on Form N-1A (Registration
No. 33-21534), is incorporated herein by reference.
Portfolio Manager Agreement between Enterprise Capital Management,
Inc., ("Enterprise Capital") and The Enterprise Accumulation Trust
("Trust"), and Enterprise Capital, the Trust, and Gabelli Asset
Management Co., as sub-adviser, filed as Exhibit 5 to Post-Effective
Amendment No. 8, dated September 30, 1994, to Registration Statement on
Form N-1A (Registration No. 33-21534), is incorporated herein by
reference.
Portfolio Manager Agreement between Enterprise Capital Management,
Inc., ("Enterprise Capital") and The Enterprise Accumulation Trust
("Trust"), and Enterprise Capital, the Trust, and Brinson Partners,
Inc., as sub-adviser, filed as Exhibit 5 to Post-Effective Amendment No.
8, dated September 30, 1994, to Registration Statement on Form N-1A
(Registration No. 33-21534), is incorporated herein by reference.
Portfolio Manager Agreement between Enterprise Capital Management,
Inc., ("Enterprise Capital") and The Enterprise Accumulation Trust
("Trust"), and Enterprise Capital, the Trust, and Caywood-Scholl Capital
Management, Inc., as sub-adviser, filed as Exhibit 5 to Post-Effective
Amendment No. 8, dated September 30, 1994, to Registration Statement on
Form N-1A (Registration No. 33-21534), is incorporated herein by
reference.
(c) Services Agreement between The Mutual Life Insurance Company of
New York and MONY Life Insurance Company of America filed as Exhibit
5(ii) to Pre-Effective Amendment to Registration Statement (Registration
Nos. 2-95501 and 811-4209) dated July 19, 1985, is incorporated herein
by reference.
(9) Not applicable.
(10) Application Form for Flexible Premium Variable Universal Life
Insurance Policy, filed as Exhibit 1.(10) to Pre-Effective Amendment No.
1, dated January 6, 1995, to Registration Statement on Form S-6
(Registration No. 33-82570), is incorporated herein by reference.
2. Opinion and consent of Edward P. Bank, Vice President and Deputy
General Counsel, The Mutual Life Insurance Company of New York, as to
legality of the securities being registered, is incorporated herein by
reference.
3. Not applicable.
4. Not applicable.
5. Not applicable.
6. Not Applicable.
7. Consent of PricewaterhouseCoopers LLP as to the inclusion of their
reports on the audits of the financial statements of MONY America Variable
Account L and the statutory financial statements of MONY Life Insurance
Company of America, is filed herewith as Exhibit 7.
II-3
<PAGE> 171
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
MONY America Variable Account L of MONY Life Insurance Company of America, has
duly caused this Post-Effective Amendment No. 1 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 1st day of April 1999.
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. 1 to this Registration Statement has been duly
signed below by the following persons in the capacities and on the date
indicated.
<TABLE>
<CAPTION>
SIGNATURE DATE
- --------- ----
<C> <S> <C>
/s/ MICHAEL I. ROTH Director, Chairman of the Board April 1, 1999
- ------------------------------------------------ and Chief Executive Officer
Michael I. Roth
/s/ SAMUEL J. FOTI Director, President and Chief April 1, 1999
- ------------------------------------------------ Operating Officer
Samuel J. Foti
/s/ RICHARD DADDARIO Director, Vice President and April 1, 1999
- ------------------------------------------------ Controller
Richard Daddario (Principal Financial and Accounting
Officer)
/s/ KENNETH M. LEVINE Director and Executive Vice President April 1, 1999
- ------------------------------------------------
Kenneth M. Levine
/s/ PHILLIP A. EISENBERG Director, Vice President and Chief April 1, 1999
- ------------------------------------------------ Actuary
Phillip A. Eisenberg
/s/ MARGARET G. GALE Director and Vice President April 1, 1999
- ------------------------------------------------
Margaret G. Gale
/s/ CHARLES P. LEONE Director and Vice President April 1, 1999
- ------------------------------------------------
Charles P. Leone
/s/ RICHARD E. CONNORS Director April 1, 1999
- ------------------------------------------------
Richard E. Connors
/s/ STEPHEN J. HALL Director April 1, 1999
- ------------------------------------------------
Stephen J. Hall
</TABLE>
II-4
<PAGE> 172
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
<S> <C>
7. Consent of PricewaterhouseCoopers LLP
</TABLE>
II-5
<PAGE> 1
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Prospectus constituting part of this
Post-Effective Amendment No. 1 to the registration statement on Form S-6
(Registration No. 333-56969)(the "Registration Statement") of our report dated
February 12, 1999 relating to the financial statements of MONY America Variable
Account L-MONY Custom Equity Master and our report dated February 15, 1999,
except for Note 12(b) as to which the date is March 22, 1999, relating to the
financial statements of MONY Life Insurance Company of America which appear in
such Prospectus. We also consent to the reference to our Firm under the headings
"Independent Accountants" and "Financial Statements" in such Prospectus.
PricewaterhouseCoopers LLP
New York, New York
March 29, 1999
