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MONY Custom Estate Master
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Prospectus Portfolio
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Last Survivor Flexible Premium
Variable Universal Life Insurance Policy
Issued by
MONY Life Insurance Company of America
<TABLE>
<S> <C>
MONY Series Fund, Inc. Fidelity Variable Insurance Products Fund
Enterprise Accumulation Trust Fidelity Variable Insurance Products Fund II
Dreyfus Stock Index Fund Fidelity Variable Insurance Products Fund III
The Dreyfus Socially Responsible Janus Aspen Series
Growth Fund, Inc.
</TABLE>
May 1, 2000
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<PAGE> 2
PROSPECTUS
Dated May 1, 2000
Last Survivor Flexible Premium Variable
Universal Life Insurance Policy
Issued By
MONY Life Insurance Company of America
MONY America Variable Account L
MONY Life Insurance Company of America (the "Company") issues the last survivor
variable universal life insurance policy described in this prospectus. Among the
policy's many terms are:
Allocation of Premium 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 some or all of them into a separate account.
That separate account is called the MONY America Variable Account L.
- If you do, you can also tell us to place your premium payments and
cash values into up to 20 of 25 different subaccounts of MONY America
Variable Account L. 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 not earning any money on your premium payments
and cash values and also that 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 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 the last surviving insured dies before reaching
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., Enterprise Accumulation Trust, Dreyfus Stock Index Fund, The Dreyfus
Socially Responsible Growth Fund, Inc., Fidelity Variable Insurance Products
Fund, Fidelity Variable Insurance Products Fund II, Fidelity Variable Insurance
Products Fund III and Janus Aspen Series. 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
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TABLE OF CONTENTS
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PAGE
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Summary Of The Policy....................................... 1
Important Policy Terms.................................... 1
Purpose of the Policy..................................... 1
Policy Premium Payments and Values........................ 1
Charges and Deductions.................................... 3
Fees and Expenses of the Funds............................ 4
The Death Benefit......................................... 7
Premium Features.......................................... 8
MONY America Variable Account L........................... 8
Allocation Options........................................ 8
Transfer of Fund Value.................................... 8
Policy Loans.............................................. 9
Full Surrender............................................ 9
Partial Surrender......................................... 9
Right to Return Policy Period............................. 9
Grace Period and Lapse.................................... 9
Tax Treatment of Increases in Fund Value.................. 10
Tax Treatment of Death Benefit............................ 10
Riders.................................................... 10
Contacting the Company.................................... 11
Understanding the Policy.................................. 11
Information About The Company And MONY America Variable
Account L................................................. 12
MONY Life Insurance Company of America.................... 12
Year 2000 Issue........................................... 12
MONY America Variable Account L........................... 13
The Funds................................................... 17
MONY Series Fund, Inc..................................... 18
Enterprise Accumulation Trust............................. 18
Dreyfus Stock Index Fund.................................. 21
The Dreyfus Socially Responsible Growth Fund, Inc......... 21
Fidelity Variable Insurance Products Fund................. 21
Fidelity Variable Insurance Products Fund II.............. 21
Fidelity Variable Insurance Products Fund III............. 21
Janus Aspen Series........................................ 22
Purchase of Portfolio Shares by MONY America Variable
Account L.............................................. 23
Detailed Information About The Policy....................... 24
Application for a Policy.................................. 24
Right to Examine a Policy -- Right to Return Policy
Period................................................. 26
Premiums.................................................. 26
Guaranteed Death Benefit.................................. 27
Allocation of Net Premiums................................ 28
Death Benefits under the Policy........................... 28
Death Benefit Options..................................... 29
Changes in Specified Amount............................... 31
Guaranteed Death Benefit Rider............................ 32
Other Optional Insurance Benefits......................... 33
Benefits at Maturity and Maturity Extension Rider......... 34
Policy Values............................................. 35
Determination of Fund Value............................... 35
Calculating Unit Values for Each Subaccount............... 36
</TABLE>
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<TABLE>
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Determining Fund Value.................................... 37
Transfer of Fund Value.................................... 37
Right to Exchange Policy.................................. 38
Policy Loans.............................................. 38
Full Surrender............................................ 39
Partial Surrender......................................... 40
Grace Period and Lapse.................................... 40
Charges And Deductions...................................... 43
Deductions from Premiums.................................. 44
Daily Deduction from MONY America Variable Account L...... 44
Monthly Deductions from Fund Value........................ 45
Surrender Charge.......................................... 46
Corporate Purchasers...................................... 47
Transaction and Other Charges............................. 47
Fees and Expenses of the Funds............................ 47
Guarantee of Certain Charges.............................. 47
Other Information........................................... 48
Federal Income Tax Considerations......................... 48
Charge for Company Income Taxes........................... 52
Voting of Fund Shares..................................... 52
Disregard of Voting Instructions.......................... 53
Report to Policy Owners................................... 53
Substitution of Investments and Right to Change
Operations............................................. 53
Changes to Comply with Law................................ 54
Performance Information..................................... 54
The Guaranteed Interest Account............................. 55
General Description....................................... 55
Death Benefit............................................. 56
Policy Charges............................................ 56
Transfers................................................. 56
Surrenders and Policy Loans............................... 57
More About The Policy....................................... 57
Ownership................................................. 57
Beneficiary............................................... 57
Notification and Claims Procedures........................ 57
Payments.................................................. 58
Payment Plan/Settlement Provisions........................ 58
Payment in Case of Suicide................................ 58
Assignment................................................ 58
Errors on the Application................................. 59
Incontestability.......................................... 59
Policy Illustrations...................................... 59
Distribution of the Policy................................ 59
More About The Company...................................... 60
Management................................................ 60
State Regulation.......................................... 62
Telephone Transfer Privilege.............................. 62
Legal Proceedings......................................... 62
</TABLE>
ii
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Legal Matters............................................. 63
Registration Statement.................................... 62
Independent Accountants................................... 62
Financial Statements...................................... 62
Index to Financial Statements............................. F-1
Appendix A................................................ A-1
Appendix B................................................ B-1
Appendix C................................................ C-1
Appendix D................................................ D-1
</TABLE>
iii
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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. 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 and 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, regardless of
subaccount cash values.
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 55.)
Loan Account -- An account set up by the Company to which amounts are
transferred from the subaccounts and the Guaranteed Interest Account as
collateral for any Outstanding Debt.
Specified Amount -- The death benefit requested by the policy owner.
Business Day -- Each day that the New York Stock Exchange is open for
trading.
PURPOSE OF THE POLICY
The policy offers insurance protection on the lives of the insureds. If
either or both insureds are alive on the anniversary of the policy date when the
younger insured is (or would have been) age 100, a maturity benefit will be paid
instead of a death benefit. The policy provides a benefit equal to your choice
of (a) its Specified Amount (under Option 1) or (b) its Specified Amount plus
the Fund Value (under Option 2). 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 the 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
1
<PAGE> 9
tax imposed by the United States government. The Company will also deduct a
sales charge to cover the 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 the 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 chose. Except in certain circumstances
described later (See "Death Benefits Under the Policy" at page 28), 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 ten years since the policy was issued or the
Specified Amount increased. The Company will also deduct any amount you have
borrowed 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;
- One or both insureds reaches age 100 (or the date on which the younger
insured would have been age 100);
- Death of the last surviving insured; and
- 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 increased Minimum Monthly Premium for the remainder of the first three
policy years. 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 will not lapse. The Guaranteed Death Benefit Rider
requires the payment of an agreed upon amount of premium and is discussed below.
2
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CHARGES AND DEDUCTIONS
The policy provides for the deduction of the various charges, costs, and
expenses imposed by the policy provisions from the Fund Value of the Policy.
These deductions are summarized in the table below. Additional details can be
found on pages 44-48.
CHARGES AND DEDUCTIONS
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DEDUCTIONS FROM PREMIUMS
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Sales Charge -- Varies based on the First 10 policy years -- 6% of premiums
Specified Amount in effect. It is a % of paid up to Target Premium and 3% of premium
premium paid. paid in excess of Target Premium.
Years 11 and later -- 3% of all premiums.
- -----------------------------------------------------------------------------------------------
Tax Charge State and local -- 2.25%
Federal -- 1.5%
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</TABLE>
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DAILY DEDUCTION FROM MONY AMERICA VARIABLE ACCOUNT L
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<TABLE>
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Mortality & Expense Risk Charge -- Maximum .35% of subaccount value (0.000959% daily)
Annual Rate
</TABLE>
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MONTHLY DEDUCTIONS FROM FUND VALUE
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<S> <C> <C>
- ----------------------------------------------------------------------------------------------
Cost of Insurance Charge Current cost of insurance rate x net amount
at risk at the beginning of the policy
month
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Administrative Charge -- Monthly $7.50
- ----------------------------------------------------------------------------------------------
Monthly per $1,000 Specified Amount Charge See Appendix B. This charge applies for the
Based on issue age and smoking Status of first 10 policy years (or for 10 years from
the younger insured and Specified Amount. the date of any increase in Specified
Amount)
- ----------------------------------------------------------------------------------------------
Guaranteed Death Benefit Charge $0.01 per $1,000 of Specified Amount and
Monthly Charge for Guaranteed Death Benefit certain Rider amounts. Please note that the
Rider* Rider requires that at least the amount of
premiums set forth in 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 maximum per transfer(1)
(at Company's Option)
- ----------------------------------------------------------------------------------------------
Surrender Charge See discussion of Surrender Charge on page
Grades from 100% to 0 over 11 years based 46 for grading schedule.
on a schedule. Factors per $1,000 of
Specified Amount vary based on issue age,
gender, and underwriting class.
- ----------------------------------------------------------------------------------------------
</TABLE>
* The Guaranteed Death Benefit Rider is not available in all states.
(1) Currently no charge on any transfers.
3
<PAGE> 11
MONY Variable Account L is divided into subdivisions called subaccounts.
Each subaccount invests exclusively in shares of a designated portfolio. Each
portfolio pays a fee to its investment adviser to manage the portfolio. The
investment adviser fees for each portfolio are listed in the table below. Each
portfolio also incurs expenses in its operations. Those expenses are also shown
in the table below.
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 5-7. Fees and expenses of the Funds are
described in more detail in the Funds' prospectuses.
Information contained in the following table was provided by the respective
Funds and has not been independently verified by us.
ANNUAL EXPENSES FOR THE YEAR
ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
DISTRIBUTION AND
FUND/PORTFOLIO MANAGEMENT FEES OTHER EXPENSES SERVICE (12-B-1) FEE TOTAL EXPENSES
-------------- --------------- -------------- -------------------- --------------
<S> <C> <C> <C> <C>
MONY SERIES FUND, INC.
Intermediate Term Bond
Portfolio.................... 0.50% 0.07% N/A 0.57%
Long Term Bond Portfolio....... 0.50% 0.05% N/A 0.55%
Government Securities
Portfolio.................... 0.50% 0.08% N/A 0.58%(1)
Money Market Portfolio......... 0.40% 0.04% N/A 0.44%
ENTERPRISE ACCUMULATION TRUST
Equity Portfolio............... 0.78% 0.04% N/A 0.82%
Small Company Value
Portfolio.................... 0.80% 0.04% N/A 0.84%
Managed Portfolio.............. 0.72% 0.04% N/A 0.76%
International Growth
Portfolio.................... 0.85% 0.16% N/A 1.01%
High Yield Bond Portfolio...... 0.60% 0.09% N/A 0.69%
Small Company Growth
Portfolio.................... 1.00% 0.40% N/A 1.40%(2)
Equity Income Portfolio........ 0.75% 0.30% N/A 1.05%(2)
Capital Appreciation
Portfolio.................... 0.75% 0.41% N/A 1.16%
Growth and Income Portfolio.... 0.75% 0.19% N/A 0.94%
Growth Portfolio............... 0.75% 0.09% N/A 0.84%
Multi-Cap Growth Portfolio..... 1.00% 0.40% N/A 1.40%(2)
Balanced Portfolio............. 0.75% 0.20% N/A 0.95%(2)
DREYFUS STOCK INDEX FUND....... 0.245% 0.015% N/A 0.26%
THE DREYFUS SOCIALLY
RESPONSIBLE GROWTH FUND,
INC.......................... 0.75% 0.04% N/A 0.79%
FIDELITY VARIABLE INSURANCE
PRODUCTS FUND (VIP)
Growth Portfolio............... 0.58% 0.09% 0.10% 0.77%(3)
FIDELITY VARIABLE INSURANCE
PRODUCTS FUND II (VIP II)
Contrafund(R) Portfolio........ 0.58% 0.10% 0.10% 0.78%(3)
FIDELITY VARIABLE INSURANCE
PRODUCTS FUND III (VIP III)
Growth Opportunities
Portfolio.................... 0.58% 0.11% 0.10% 0.79%(3)
</TABLE>
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<TABLE>
<CAPTION>
DISTRIBUTION AND
FUND/PORTFOLIO MANAGEMENT FEES OTHER EXPENSES SERVICE (12-b-1) FEE TOTAL EXPENSES
-------------- --------------- -------------- -------------------- --------------
<S> <C> <C> <C> <C>
JANUS ASPEN SERIES
Aggressive Growth Portfolio.... 0.65% 0.02% N/A 0.67%(4)
Balanced Portfolio............. 0.65% 0.02% N/A 0.67%(4)
Capital Appreciation
Portfolio.................... 0.65% 0.04% N/A 0.69%(4)
Worldwide Growth Portfolio..... 0.65% 0.05% N/A 0.70%(4)
</TABLE>
- ---------------
(1) Expenses do not include custodial credits. With custodial credits,
expenses would have been 0.57%.
(2) Enterprise Capital Management, Inc. has contractually agreed to limit
expenses on these Portfolios to the amount shown. This contractual
limitation is in effect until April 30, 2001. Without the contractual
limitation, the total expenses would have been as follows: Small Company
Growth -- 1.55%; Equity Income -- 1.20%; Balanced -- 1.89%; and
Multi-Cap Growth -- 1.52%.
(3) Expenses do not include reimbursements. With reimbursements, expenses
would have been Growth -- 0.75%; Contrafund -- 0.75%; and Growth
Opportunities -- 0.78%.
(4) Expenses are based upon expenses for the fiscal year ended December 31,
1999, restated to reflect a reduction in management fee.
- --------------------------------------------------------------------------------
FUND INVESTMENT ADVISER FEES
- --------------------------------------------------------------------------------
MONY SERIES FUND, INC.
<TABLE>
<CAPTION>
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PORTFOLIO INVESTMENT ADVISER FEE
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<S> <C>
Government Securities Portfolio Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million,
and 0.30% in excess of $800 million of the
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,
and 0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets.
--------------------------------------------------------------------------------------------
Intermediate Term Bond Portfolio Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million,
and 0.30% in excess of $800 million of the
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,
and 0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets.
----------------------------------------------------------------------------------------
</TABLE>
ENTERPRISE ACCUMULATION TRUST
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C>
Equity Portfolio Annual rate of 0.80% of the first $400
million, 0.75% of the next $400 million,
and 0.70% in excess of $800 million of the
portfolio's aggregate average daily net
assets.
--------------------------------------------------------------------------------------------
Managed Portfolio Annual rate of 0.80% of the first $400
million, 0.75% of the next $400 million,
and 0.70% in excess of $800 million of the
portfolio's aggregate average daily net
assets.
--------------------------------------------------------------------------------------------
</TABLE>
5
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<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C>
Equity Income Portfolio Annual rate of 0.75% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
Growth and Income Portfolio Annual rate of 0.75% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
Growth Portfolio Annual rate of 0.75% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
Capital Appreciation Portfolio Annual rate of 0.75% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
Small Company Growth Portfolio Annual rate of 1.00% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
Small Company Value Portfolio Annual rate of 0.80% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
International Growth Portfolio Annual rate of 0.85% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
High Yield Bond Portfolio Annual rate of 0.60% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
Balanced Portfolio Annual rate of 0.75% of the aggregate
average daily net assets.
--------------------------------------------------------------------------------------------
Multi-Cap Growth Portfolio Annual rate of 1.00% of the aggregate
average daily net assets.
--------------------------------------------------------------------------------------------
DREYFUS STOCK INDEX FUND Annual rate of 0.25% of the fund's average
daily net assets.
--------------------------------------------------------------------------------------------
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH Annual rate of 0.75% of the fund's average
FUND, INC. daily net assets.
--------------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS The fee is calculated by adding a group
FUND -- Growth Portfolio fee rate to an individual fee rate,
dividing by twelve, and multiplying the
result by the fund's average net assets
throughout the month. The group fee rate
is based on the average net assets of all
the mutual funds advised by FMR. This
group rate cannot rise above 0.52% for
this fund, and it drops as total assets
under management increase. The individual
fee rate for this fund is 0.30% of the
fund's average net assets.
--------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 14
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C>
FIDELITY VARIABLE INSURANCE PRODUCTS FUND The fee is calculated by adding a group
II -- Contrafund(R) Portfolio fee rate to an individual fee rate,
dividing by twelve, and multiplying the
result by the fund's average net assets
throughout the month. The group fee rate
is based on the average net assets of all
the mutual funds advised by FMR. This
group rate cannot rise above 0.52% for
this fund, and it drops as total assets
under management increase. The individual
fee rate for this fund is 0.30% of the
fund's average net assets.
--------------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUND The fee is calculated by adding a group
III -- Growth Opportunities Portfolio fee rate to an individual fee rate,
dividing by twelve, and multiplying the
result by the fund's average net assets
throughout the month. The group fee rate
is based on the average net assets of all
the mutual funds advised by FMR. This
group rate cannot rise above 0.52% for
this fund, and it drops as total assets
under management increase. The individual
fee rate for this fund is 0.30% of the
fund's average net assets.
----------------------------------------------------------------------------------------
</TABLE>
JANUS ASPEN SERIES
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C>
Aggressive Growth Portfolio Annual rate of 0.65% of the portfolio's
average daily net assets.
--------------------------------------------------------------------------------------------
Balanced Portfolio Annual rate of 0.65% of the portfolio's
average daily net assets.
--------------------------------------------------------------------------------------------
Capital Appreciation Portfolio Annual rate of 0.65% of the portfolio's
average daily net assets.
--------------------------------------------------------------------------------------------
Worldwide Growth Portfolio Annual rate of 0.65% of the portfolio's
average daily net assets.
--------------------------------------------------------------------------------------------
</TABLE>
THE DEATH BENEFIT
The minimum initial Specified Amount is $100,000. 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.
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.
Option 2 -- The death benefit equals the greater of:
(a) The Specified Amount of the policy, plus the Fund Value, or
7
<PAGE> 15
(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 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 28.
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 32.
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 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 48.
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 40.
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
8.
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, the Enterprise Accumulation Dreyfus Stock Index Fund, The
Dreyfus Socially Responsible Growth Fund, Inc., Fidelity Variable Insurance
Products Fund, Fidelity Variable Insurance Products Fund II, Fidelity Variable
Insurance Products Fund III and Janus Aspen Series (collectively called the
"Funds"). Trust. The subaccounts available to you and the investment objectives
of each available subaccount are described in detail beginning on page 13.
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 37.
8
<PAGE> 16
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
38.
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 39. Outstanding Debt may also affect the continuation of the
policy. See "Grace Period and Lapse," page 40. The Company charges interest on
policy loans. If you do not pay the interest 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 lifetime of either or both insureds
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 39.
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 the request and
return it to you. A partial surrender will decrease the Specified Amount. See
"Partial Surrender," at page 40.
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 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 26.
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 for the remainder of the first three policy years.
If you increase the Specified Amount during the first three policy years,
the Minimum Monthly Premium will be increased and you must continue paying
the Minimum Monthly Premium for an additional three policy years from the
date of the increase.
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").
9
<PAGE> 17
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 Benefit," page 27. 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 40.
You must understand that after the first three policy years, the policy can
lapse even if the scheduled premiums 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 Considerations," on page 48.
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 48.
RIDERS
Additional optional insurance benefits may be added to the policy by an
addendum called a rider. There are five riders available with this policy:
- Guaranteed Death Benefit Rider
- Waiver of Monthly Deduction Rider
- Four Year Term Insurance Rider
- Waiver of Specified Premiums Rider
- Maturity Extension Rider
10
<PAGE> 18
CONTACTING THE COMPANY
All written requests, notices, and forms required by the policies, and any
questions or inquiries should be directed to the Company 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]
11
<PAGE> 19
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 currently licensed to sell life insurance and annuities in 49 states
(not including New York), the District of Columbia, Puerto Rico, and the U.S.
Virgin Islands.
The Company is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). The principal offices of both MONY and the Company are located at 1740
Broadway, New York, New York 10019. MONY was organized as a mutual life
insurance company under the laws of the State of New York in 1842 as 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 does not have any material
effect on the Company under the policies or on MONY America Variable Account L.
At August 16, 1999, the rating assigned to the Company by A.M. Best
Company, Inc., an independent insurance company rating organization, was
upgraded to A (Excellent). This rating is based upon an analysis of financial
condition and operating performance. 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.
MONY Securities Corporation, a wholly-owned subsidiary of the Company, is
the principal underwriter for the policies.
YEAR 2000 ISSUE
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 in conjunction with MONY and affiliates (hereafter
collectively referred to as "MONY and its subsidiaries") initiated a formal Year
2000 Project (the "Project") to resolve the Year 2000 issue. The scope of the
Project was identified, and funding was established.
The Company, in conjunction with MONY and affiliates, successfully
completed its Year 2000 Project (the "Project") to ensure Year 2000 readiness.
The Company developed and implemented an enterprise-wide plan to prepare for the
Year 2000 issue by ensuring compliance of all applications, operating systems
and hardware on mainframe, PC and local area network ("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 total cost of the Project was $2.4 million. The Company does not expect
to incur any material future costs on the Project.
The Company has not experienced any material (or significant) Year 2000
related problems post-December 31, 1999 with its operations or with any external
parties with which business is conducted. Based on this experience and the
amount of work and testing the Company has previously performed, the Company
believes the likelihood of a Year 2000 issue that would have a material effect
on the Company's financial position and results of its operations continues to
be remote as the Company performs month-end, leap year, quarter-end, and
year-end processing. However, there is still the possibility that future Year
2000 related failures in the Company's systems or equipment and/or failure of
external parties to achieve Year 2000 compliance could have a material adverse
effect on the Company's financial position and results of its operations.
12
<PAGE> 20
MONY AMERICA VARIABLE ACCOUNT L
MONY America Variable Account L is a separate investment account of the
Company. Presently, only premium payments and fund 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. Each subaccount invests exclusively in shares of a designated
portfolio of the Funds. For example, the Long Term Bond Subaccount invests
solely in shares of the MONY Series Fund, Inc. Long Term Bond Portfolio. These
portfolios 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 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>
MONY MONEY MARKET SUBACCOUNT Seeks to maximize current income
consistent with preservation of capital
This subaccount purchases shares of the and maintenance of liquidity by investing
MONY Series Fund, Inc. Money Market primarily in high quality, short-term
Portfolio. money market instruments.
--------------------------------------------------------------------------------------------
MONY GOVERNMENT SECURITIES SUBACCOUNT Seeks to maximize income and capital
appreciation by investing in bonds, notes
This subaccount purchases shares of the and other obligations either issued or
MONY Series Fund, Inc. Government guaranteed by the U.S. Government, its
Securities Portfolio. agencies or instrumentalities, together
having a weighted average maturity of
between 4 to 8 years.
--------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 21
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C>
MONY INTERMEDIATE TERM BOND SUBACCOUNT Seeks to maximize income and capital
appreciation over the intermediate term by
This subaccount purchases shares of the investing in highly rated fixed-income
MONY Series Fund, Inc. Intermediate Term securities, issued by a diverse mix of
Bond Portfolio. corporations, the U.S. Government and its
agencies or instrumentalities, as well as
mortgage-backed and asset-backed
securities, together having a
dollar-weighted average maturity of
between 4 and 8 years.
--------------------------------------------------------------------------------------------
MONY LONG TERM BOND SUBACCOUNT Seeks to maximize income and capital
appreciation over the longer term by
This subaccount purchases shares of the investing in highly-rated fixed-income
MONY Series Fund, Inc. Long Term Bond securities, issued by a diverse mix of
Portfolio. corporations, the U.S. Government and its
agencies or instrumentalities, as well as
mortgage-backed and asset-backed
securities, together having a
dollar-weighted average maturity of more
than 8 years.
--------------------------------------------------------------------------------------------
ENTERPRISE EQUITY INCOME SUBACCOUNT Seeks a combination of growth and income.
Seeks to achieve an above average and
This subaccount purchases shares of the consistent total return, primarily from
Enterprise Accumulation Trust Equity investments in dividend paying U.S. common
Income Portfolio. stocks.
--------------------------------------------------------------------------------------------
ENTERPRISE GROWTH AND INCOME SUBACCOUNT Seeks total return through capital
appreciation with income as a secondary
This subaccount purchases shares of the consideration by investing in a broadly
Enterprise Accumulation Trust Growth and diversified group of U.S. common stocks of
Income Portfolio. large capitalization companies.
--------------------------------------------------------------------------------------------
ENTERPRISE GROWTH SUBACCOUNT Seeks capital appreciation, primarily from
investments in U.S. common stocks of large
This subaccount purchases shares of the capitalization companies. Pursues goal by
Enterprise Accumulation Trust Growth investing in companies with long-term
Portfolio. earnings potential but which are currently
selling at a discount to their estimated
long-term value.
--------------------------------------------------------------------------------------------
ENTERPRISE EQUITY SUBACCOUNT Seeks long-term capital appreciation by
investing primarily in U.S. common stock
This subaccount purchases shares of the of companies that meet the portfolio
Enterprise Accumulation Trust Equity manager's criteria of high return on
Portfolio. investment capital, strong positions
within their industries, sound financial
fundamentals and management committed to
shareholder interests.
--------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 22
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C>
ENTERPRISE CAPITAL APPRECIATION SUBACCOUNT Seeks maximum capital appreciation,
primarily through investment in common
This subaccount purchases shares of the stocks of U.S. companies that demonstrate
Enterprise Accumulation Trust Capital accelerating earnings momentum and
Appreciation Portfolio. consistently strong financial
characteristics.
--------------------------------------------------------------------------------------------
ENTERPRISE MANAGED SUBACCOUNT Seeks growth of capital over time by
investing in a portfolio consisting of
This subaccount purchases shares of the common stocks, bonds and cash equivalents,
Enterprise Accumulation Trust Managed the percentage of which vary over time
Portfolio. based on the investment manager's
assessment of economic and market trends
and its perception of the relative
investment values available from such
types of securities at any given time.
--------------------------------------------------------------------------------------------
ENTERPRISE 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.
--------------------------------------------------------------------------------------------
ENTERPRISE SMALL COMPANY VALUE SUBACCOUNT Seeks maximum capital appreciation by
investing primarily in common stocks of
This subaccount purchases shares of the small capitalization companies that the
Enterprise Accumulation Trust Small portfolio manager believes are
Company Value Portfolio. undervalued -- that is the stock's market
price does not fully reflect the company's
value.
--------------------------------------------------------------------------------------------
ENTERPRISE INTERNATIONAL GROWTH SUBACCOUNT Seeks capital appreciation by investing
primarily in a diversified portfolio of
This subaccount purchases shares of the non-United States equity securities that
Enterprise Accumulation Trust the portfolio manager believes are
International Growth Portfolio. undervalued.
--------------------------------------------------------------------------------------------
ENTERPRISE HIGH YIELD BOND SUBACCOUNT Seeks maximum current income by primarily
investing in high yield, income-producing
This subaccount purchases shares of the U.S. corporate bonds rated B3 or better by
Enterprise Accumulation Trust High Yield Moody's Investors Service, Inc., or B- or
Bond Subaccount. better 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>
15
<PAGE> 23
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C>
ENTERPRISE BALANCED SUBACCOUNT Seeks long-term total return. Generally,
between 55% and 75% of its total assets
This subaccount purchases shares of the will be invested in equity securities, and
Enterprise Accumulation Trust Balanced between 45% and 25% in fixed income
Portfolio. securities to provide a stable flow of
income. Allocation will vary based on the
manager's assessment of the return
potential of each asset class.
--------------------------------------------------------------------------------------------
ENTERPRISE MULTI-CAP GROWTH SUBACCOUNT Seeks long-term capital appreciation by
primarily investing in growth stocks.
This subaccount purchases shares of the Companies will tend to fall into one of
Enterprise Accumulation Trust Multi-Cap two categories: companies that offer goods
Growth Portfolio. or services to a rapidly expanding
marketplace or companies experiencing a
major change that is expected to produce
advantageous results.
--------------------------------------------------------------------------------------------
DREYFUS STOCK INDEX SUBACCOUNT Seeks to match the total return of the
Standard & Poor's 500 Composite Stock
This subaccount purchases shares of the Price Index. Generally invests in all 500
Dreyfus Stock Index Fund. stocks in the S&P 500 in proportion to
their weighting in the index.
--------------------------------------------------------------------------------------------
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH Seeks to provide capital growth, with
SUBACCOUNT current income as a secondary goal. Invest
primarily in common stock of companies
This subaccount purchases shares of The that, in the opinion of its management,
Dreyfus Socially Responsible Growth Fund, meet traditional investment standards and
Inc. conduct their business in a manner that
contributes to the enhancement of the
quality of life in America.
--------------------------------------------------------------------------------------------
FIDELITY GROWTH SUBACCOUNT Seeks to achieve capital appreciation by
investing its assets primarily in common
This subaccount purchases shares of stocks that it believes have above-average
Fidelity Variable Insurance Products Fund growth potential. Tends to be companies
(VIP) Growth Portfolio. with higher than average price/earnings
ratios, and with new products,
technologies, distribution channels or
other opportunities, or with a strong
industry or market position. May invest in
securities of foreign issuers in addition
to those of domestic issuers.
--------------------------------------------------------------------------------------------
FIDELITY CONTRAFUND(R) SUBACCOUNT Seeks long-term capital appreciation by
investing mainly in equity securities of
This subaccount purchases shares of companies whose value is not fully
Fidelity Variable Insurance Products Fund recognized by the public. Typically,
(VIP II) Contrafund(R) Portfolio. includes companies in turnaround
situations, companies experiencing
transitory difficulties, and undervalued
companies. May invest in securities of
foreign issuers in addition to those of
domestic issuers.
--------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE> 24
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C>
FIDELITY GROWTH OPPORTUNITIES SUBACCOUNT Seeks to provide capital growth by
investing primarily in common stocks. May
This subaccount purchases shares of also invest in other types of securities,
Fidelity Variable Insurance Products Fund including bonds, which may be
(VIP III) Growth Opportunities Portfolio. lower-quality debt securities. May invest
in securities of foreign issuers in
addition to those of domestic issuers.
--------------------------------------------------------------------------------------------
JANUS ASPEN SERIES AGGRESSIVE GROWTH Seeks long-term growth of capital by
SUBACCOUNT investing primarily in common stocks
selected for their growth potential.
This subaccount purchases shares of Janus Normally, it invests at least 50% of its
Aspen Series Aggressive Growth Portfolio. equity assets in medium-sized companies
with market capitalizations falling within
the range of companies in the S&P MidCap
400 Index.
--------------------------------------------------------------------------------------------
JANUS ASPEN SERIES BALANCED SUBACCOUNT Seeks long-term capital growth, consistent
with preservation of capital and balanced
This subaccount purchases shares of Janus by current income. Normally invests 40-60%
Aspen Series Balanced Portfolio. of its assets in securities selected
primarily for their growth potential, and
40-60% in securities selected primarily
for their income potential and at least
25% of its assets in fixed-income
securities.
--------------------------------------------------------------------------------------------
JANUS ASPEN SERIES CAPITAL APPRECIATION Seeks long-term growth of capital. It
SUBACCOUNT pursues its objective by investing
primarily in common stocks selected for
This subaccount purchases shares of Janus their growth potential. The portfolio may
Aspen Series Capital Appreciation invest in companies of any size, from
Portfolio. larger, well-established companies to
smaller, emerging growth companies.
--------------------------------------------------------------------------------------------
JANUS ASPEN SERIES WORLDWIDE GROWTH Seeks long-term growth of capital in a
SUBACCOUNT manner consistent with the preservation of
capital. It pursues this objective by
This subaccount purchases shares of Janus investing primarily in common stocks of
Aspen Series Worldwide Growth Portfolio. companies of any size throughout the
world. Normally invests in issuers from at
least five different countries, including
the United States but may at times invest
in fewer than five countries or even in a
single country.
--------------------------------------------------------------------------------------------
</TABLE>
THE FUNDS
Each available subaccount of MONY America Variable Account L will invest
only in the shares of the designated portfolio of the Funds. The Funds (except
for the Dreyfus Stock Index Fund and Janus Aspen Series Aggressive Growth and
Capital Appreciation Portfolios) are diversified, open-end management investment
companies. The Dreyfus Stock Index Fund and Janus Aspen Series Aggressive Growth
and Capital Appreciation Portfolios are non-diversified, open-end management
investment companies.
17
<PAGE> 25
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, 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 INVESTMENT ADVISER FEE
- --------------------------------------------------------------------------------------------
<S> <C>
GOVERNMENT SECURITIES PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
MONY Life Insurance Company of America is 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, and
MONY Life Insurance Company of America is 0.30% in excess of $800 million of the
the Investment Adviser. portfolio's aggregate average daily net
assets.
- --------------------------------------------------------------------------------------------
INTERMEDIATE TERM BOND PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
MONY Life Insurance Company of America is 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, and
MONY Life Insurance Company of America is 0.30% of assets in excess of $800 million of
the Investment Adviser. the portfolio's aggregate average daily net
assets.
- --------------------------------------------------------------------------------------------
</TABLE>
ENTERPRISE ACCUMULATION TRUST
Enterprise Accumulation Trust has a number of portfolios; the shares of
some of these portfolios can 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 the
Enterprise Accumulation Trust prospectus included in this Prospectus Portfolio.
Enterprise Accumulation Trust pays an investment advisory fee to Enterprise
Capital who in turn pays the sub-investment advisers. Fees are deducted daily
and paid to Enterprise Capital on a monthly basis. The daily investment advisory
18
<PAGE> 26
fees and sub-advisory fees for each portfolio purchased by subaccounts available
to you are shown in the chart below.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
PORTFOLIO 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
TCW Investment Management the next $400 million and excess of $1 billion of the
Company is the 0.70% in excess of $800 portfolio's average daily
sub-investment adviser. million of the portfolio's net assets.
average daily net assets.
- ----------------------------------------------------------------------------------------------
MANAGED PORTFOLIO Annual rate of 0.80% of the OpCap Advisors' fee for the
first $400 million, 0.75% of assets of the portfolio it
OpCap Advisors and Sanford the next $400 million and manages is an annual rate of
C. Bernstein & Co., Inc. 0.70% in excess of $800 0.40% up to $1 billion,
are the co-sub-investment million of the portfolio's 0.30% from $1 billion to $2
advisers. average daily net assets. billion, and 0.25% in excess
of $2 billion of the
portfolio's average daily
net assets. Sanford C.
Bernstein & Co., Inc.'s fee
for the assets of the
portfolio it manages is an
annual rate of 0.40% up to
$10 million, 0.30% from $10
million to $50 million,
0.20% from $50 million to
$100 million, and 0.10% in
excess of $100 million of
the portfolio's average
daily net assets.
- ----------------------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO Annual rate of 0.75% of the Annual rate of 0.30% of the
portfolio's average daily first $100 million, 0.25% of
1740 Advisors, Inc. is the net assets. the next $100 million, and
sub-investment adviser. 0.20% in excess of $200
million of the portfolio's
average daily net assets.
- ----------------------------------------------------------------------------------------------
GROWTH AND INCOME Annual rate of 0.75% of the Annual rate of 0.30% of the
PORTFOLIO portfolio's average daily first $100 million, 0.25% of
net assets. the next $100 million, and
Retirement Systems 0.20% in excess of $200
Investors, Inc. is the million of portfolio's
sub-investment adviser. average daily net assets.
- ----------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE> 27
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
GROWTH PORTFOLIO Annual rate of 0.75% of the Annual rate of 0.30% of the
portfolio's average daily first $1 billion and 0.20%
Montag & Caldwell, Inc. is net assets. in excess of $1 billion of
the sub-investment the portfolio's average
adviser. daily net assets.
- ----------------------------------------------------------------------------------------------
CAPITAL APPRECIATION Annual rate of 0.75% of the Annual rate of 0.45% of the
PORTFOLIO portfolio's average daily portfolio's average daily
net assets. net assets.
Marsico Capital
Management, LLC is the
sub-investment adviser.
- ----------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH Annual rate of 1.00% of the Annual rate of 0.65% of the
PORTFOLIO portfolio's average daily first $50 million, 0.55% of
net assets. the next $50 million and
William D. Witter, Inc. is 0.45% in excess of $100
the sub-investment million of the portfolio's
adviser. average daily net assets.
- ----------------------------------------------------------------------------------------------
SMALL COMPANY VALUE Annual rate of 0.80% of the Annual rate of 0.40% of the
PORTFOLIO first $400 million, 0.75% of first $1 billion and 0.30%
the next $400 million and in excess of $1 billion of
Gabelli Asset Management 0.70% in excess of $800 the portfolio's average
Company is the sub- million of the portfolio's daily net assets.
investment adviser. average daily net assets.
- ----------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH Annual rate of 0.85% of the Annual rate of 0.40% of the
PORTFOLIO portfolio's average daily first $100 million, 0.35% of
net assets. $100 million to $200
Vontobel USA Inc. is the million, 0.30% of $200
sub-investment adviser. million to $500 million and
0.25% in excess of $500
million of the portfolio's
average daily net assets.
- ----------------------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO Annual rate of 0.60% of the Annual rate of 0.30% of the
portfolio's average daily first $100 million and 0.25%
Caywood-Scholl Capital net assets. in excess of $100 million of
Management is the sub- the portfolio's average
investment adviser. daily net assets.
- ----------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE> 28
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
BALANCED PORTFOLIO Annual rate of 0.75% of the Annual rate of 0.30% up to
average daily net assets. $100 million, 0.25% of $100
Montag & Caldwell, Inc. is million to $200 million and
the sub-investment 0.20% in excess of $200
adviser. million of the portfolio's
average daily net assets.
- ----------------------------------------------------------------------------------------------
MULTI-CAP GROWTH PORTFOLIO Annual rate of 1.00% of the Annual rate of 0.40% of the
average daily net assets. average daily net assets.
Fred Alger Management Inc.
is the sub-investment
adviser.
- ----------------------------------------------------------------------------------------------
</TABLE>
DREYFUS STOCK INDEX FUND
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
The Dreyfus Corporation is the investment adviser of the Dreyfus Stock
Index Fund and The Dreyfus Socially Responsible Growth Fund, Inc. As described
below, The Dreyfus Corporation contracts with sub-investment advisers to assist
in managing the portfolios as noted below. Fees are deducted on a monthly basis.
The daily investment advisory fees and sub-investment advisory fees for each
portfolio are shown in the table below.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
PORTFOLIO AND SUB-INVESTMENT ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DREYFUS STOCK INDEX FUND Annual rate of 0.245% of the Annual rate of 0.095% of the
fund's average daily net value of the fund's average
Mellon Equity Associates is the assets. daily net assets.
sub-investment adviser.
- ------------------------------------------------------------------------------------------------------------
THE DREYFUS SOCIALLY RESPONSIBLE Annual rate of 0.75% of the Annual rate of 0.10% of the
GROWTH FUND, INC. fund's average daily net first $32 million, 0.15% in
assets. excess of $32 million up to
NCM Capital Management Group, Inc. $150 million, 0.20% in excess
is the sub-investment adviser. of $150 million up to $300
million, 0.25% in excess of
$300 million of the value of
the fund's average daily net
assets.
- ------------------------------------------------------------------------------------------------------------
</TABLE>
FIDELITY VARIABLE INSURANCE PRODUCTS FUND -- GROWTH PORTFOLIO -- Service Class
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II -- CONTRAFUND(R)
PORTFOLIO -- Service Class
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III -- GROWTH OPPORTUNITIES
PORTFOLIO -- Service Class
Fidelity Management & Research ("FMR") is each fund's investment manager.
As the manager, FMR is responsible for choosing investments for the funds and
handling the funds' business affairs.
21
<PAGE> 29
Affiliates assist FMR with foreign investments. The daily investment advisory
fee for each portfolio is shown in the table below.
<TABLE>
<CAPTION>
PORTFOLIO AND SUB-INVESTMENT ADVISERS INVESTMENT ADVISER FEE
<S> <C>
FIDELITY VARIABLE INSURANCE PRODUCTS The fee is calculated by adding a group
FUND -- GROWTH PORTFOLIO fee rate to an individual fee rate,
dividing by twelve, and multiplying the
result by the Fund's average net assets
throughout the month. The group fee rate
is based on the average net assets of all
the mutual funds advised by FMR. This
group rate cannot rise above 0.52% for
this Fund, and it drops as total assets
under management increase. The individual
fee rate for this Fund is 0.30% of the
Fund's average net assets.
- ------------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUND The fee is calculated by adding a group
II -- CONTRAFUND(R) PORTFOLIO fee rate to an individual fee rate,
dividing by twelve, and multiplying the
Fidelity Management & Research (U.K.) Inc. result by the Fund's average net assets
and Fidelity Management & Research Far throughout the month. The group fee rate
East Inc. are the sub-investment advisers. is based on the average net assets of all
the mutual funds advised by FMR. This
group rate cannot rise above 0.52% for
this Fund, and it drops as total assets
under management increase. The individual
fee rate for this Fund is 0.30% of the
Fund's average net assets.
- ------------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUND The fee is calculated by adding a group
III -- GROWTH OPPORTUNITIES PORTFOLIO fee rate to an individual fee rate,
dividing by twelve, and multiplying the
Fidelity Management & Research (U.K.) Inc. result by the Fund's average net assets
and Fidelity Management & Research Far throughout the month. The group fee rate
East Inc. are the sub-investment advisers. is based on the average net assets of all
the mutual funds advised by FMR. This
group rate cannot rise above 0.52% for
this Fund, and it drops as total assets
under management increase. The individual
fee rate for this Fund is 0.30% of the
Fund's average net assets.
</TABLE>
- -------------------------------------------------------------------------------
JANUS ASPEN SERIES
Janus Aspen Series has several portfolios. The shares of four of the
portfolios can be purchased by the subaccounts available to you. Janus Capital
is the investment adviser to each of the portfolios and is responsible for the
day-to-day management of the investment portfolios and other business affairs of
the portfolios. The daily investment advisory fee for each portfolio is shown in
the table below.
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT ADVISER FEE
<S> <C>
JANUS ASPEN SERIES -- AGGRESSIVE GROWTH Annual rate of 0.65% of the portfolio's
PORTFOLIO average daily net assets.
JANUS ASPEN SERIES -- BALANCED PORTFOLIO Annual rate of 0.65% of the portfolio's
average daily net assets.
</TABLE>
22
<PAGE> 30
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT ADVISER FEE
<S> <C>
JANUS ASPEN SERIES -- CAPITAL Annual rate of 0.65% of the portfolio's
APPRECIATION PORTFOLIO average daily net assets.
JANUS ASPEN SERIES -- WORLDWIDE GROWTH Annual rate of 0.65% of the portfolio's
PORTFOLIO average daily net assets.
</TABLE>
The investment objectives of each portfolio (except for the Janus
portfolios) are fundamental and may not be changed without the approval of the
holders of a majority of the outstanding shares of the portfolio affected. For
each of the Funds a majority 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.
The investment objectives of the Janus portfolios are non-fundamental and may be
changed by the Fund's Trustees without a shareholder vote.
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 and qualified plans. 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 pages 13-17. 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
23
<PAGE> 31
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.
APPLICATION FOR A POLICY
The policy design meets the needs of individuals by providing life
insurance coverage on two Insureds. A death benefit is payable when the last
surviving insured dies while the policy is in effect. 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 lives of two insureds, each of whom is no older than age 85
with evidence of insurability that satisfies the Company. Each insured's age is
calculated as of 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 $100,000. Subsequent to
issue, the minimum Specified Amount is also $100,000. 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 on 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
Premiums -- "Premium Flexibility," page 26.
Coverage under the Temporary Insurance Agreement ends (except for contracts
issued in Kansas) 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 the insureds 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.
24
<PAGE> 32
For contracts issued in Kansas, 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;
- the date you tell the Company that the policy will be refused; and
- the day written notice of the declination and refund of premium is
provided to the applicant.
If both insureds die 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 of the last surviving insured.
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 premium (less any deductions from premiums) held in
the Company's general account. The interest rate will be set by the Company, but
will not be less than 4.5 % 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) the date on which coverage under the Temporary Insurance Agreement
ends other than because the applicant has died or the policy applied for is
issued or refused; or
(3) The date the Company sends notice to you declining to issue any
policy on the insureds.
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
is specified in your policy and 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. 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,"
on page 26.)
Policy Date
The Company may approve the backdating of a policy. The policy may
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
25
<PAGE> 33
the extra charges for the backdating period. Extra charges equal the monthly
deductions for the period that the policy date is backdated.
Risk Classification
Each insured is assigned to an underwriting (risk) class. 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.
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) Each insured's
a) Age,
b) Smoking status,
c) Gender (unless unisex cost of insurance rates apply, see "Monthly
Deductions From Fund Value -- Cost of Insurance," page 40), 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 2 are met. See also "Grace Period and Lapse," page 40.
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.
26
<PAGE> 34
You may elect to make monthly premium payments by the electronic funds
transfer program. 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 35.)
Choice of Tests for Compliance with IRS Definition of Life Insurance
When you apply for a policy, you will irrevocably choose which of two tests
will be applied to your policy for compliance with the Federal income tax law
definition of life insurance. These tests are the Cash Value Accumulation Test
and the Guideline Premium/Cash Value Corridor Test. See "Federal Income Tax
Considerations -- Definition of Life Insurance," page 48. If the Guideline
Premium/Cash Value Corridor Test is chosen, the premium payments that may be
made relative to the policy may be limited.
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 Fund 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 force 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 40.
When you apply for a policy, you may 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 32. 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 49.
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
27
<PAGE> 35
"Death Benefits Under the Policy," page 28 and "Federal Income Tax
Considerations -- Definition of Life Insurance," page 48. 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 treated as a premium
payment. 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 40.
Your policy is guaranteed to remain in effect as long as:
(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 years the increased minimum Monthly Premium
requirements are satisfied for the remainder of the first three policy
years.
ALLOCATION OF NET PREMIUMS
Net premiums may be allocated to up to twenty of the twenty-five 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 59. 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 $100,000.
28
<PAGE> 36
As long as the policy is in effect, the Company will, upon proof of death
of the surviving 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).
DEATH BENEFIT OPTIONS
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 younger
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 48. 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 A 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 A. The 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.
The Fund Value used in these calculations is the value as of the date of
the surviving insured's death.
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 both insureds are
age 35, standard class, non-smoker at issue. It is also assumed that the last
surviving insured (also the youngest insured) is age 70 when he or she dies and
that there is no Outstanding Debt. The date of death is also assumed to be on a
monthly anniversary day.
29
<PAGE> 37
CASH VALUE ACCUMULATION TEST
<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 Last Surviving Insured's Death....... $ 35,000 $ 60,000 $ 90,000
Death Benefit Percentage................................... 183.6% 183.6% 183.6%
Death Benefit under Option 1............................... $100,000 $110,160 $165,240
Death Benefit under Option 2............................... $135,000 $160,000 $190,000
</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 183.6% = $64,260).
Option 1, Policy 2 & 3: The death benefit is equal to the Fund Value multiplied
by the death benefit percentage since ($60,000 X 183.6% = $110,160 for Policy 2;
$90,000 X 183.6% = $165,240 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 183.6% =
$64,260).
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 183.6% = $110,160).
Option 2, Policy 3: The death benefit equals the Specified Amount plus the Fund
Value ($100,000 + $90,000 = $190,000) since it is greater than the Fund Value
multiplied by the death benefit percentage ($90,000 X 183.6% = $165,240).
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
<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 Last Surviving Insured's Death....... $ 35,000 $ 60,000 $ 90,000
Death Benefit Percentage................................... 115% 115% 115%
Death Benefit under Option 1............................... $100,000 $100,000 $103,500
Death Benefit under Option 2............................... $135,000 $160,000 $190,000
</TABLE>
Option 1, Policies 1 & 2: 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 115% = $40,250 for Policy
1; $60,000 X 115% = $69,000 for Policy 2).
Option 1, Policy 3: The death benefit is equal to the Fund Value multiplied by
the death benefit percentage since ($90,000 X 115% = $103,500 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 115% =
$40,250).
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 ($35,000 X 115% = $69,000).
Option 2, Policy 3: The death benefit is the Specified Amount plus the Fund
Value ($100,000 + $90,000 = $190,000) since it is greater than the Fund Value
multiplied by the death benefit percentage ($90,000 X 115% = $103,500).
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<PAGE> 38
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.
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 "Monthly Deductions From Fund Value -- Cost of
Insurance," page 40. 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 older 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
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
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<PAGE> 39
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 38. 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.
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.
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 48.
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.
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<PAGE> 40
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 younger
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," page 27.
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.
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 surrender charges),
and
(b) outstanding debt
The second calculation shows the amount of premiums the rider required you
to pay. We
(1) take the Monthly Guarantee 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 41.
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 C.)
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 38. 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 49. 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.
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<PAGE> 41
Waiver of Monthly Deduction Rider
This rider provides for the waiver of certain charges while the selected
insured has a covered disability and the policy is in effect. While the selected
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 selected 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 monthly deductions of your policy nor does it waive the
payment of premiums required by the Guaranteed Death Benefit Rider.
Four Year Term Insurance Rider
This benefit provides non-renewable, non-convertible term insurance. The
insurance is payable if the second death occurs within the first four policy
years. If the policy owner makes any changes to the Specified Amount, the amount
of this rider will be adjusted.
Option to Split Policy
This benefit provides that the policy may be split into two other
individual life insurance policies within the 6 month period following:
- Certain major changes in Federal income tax laws
- Divorce (if the insureds are married when the policy is issued)
- Business dissolution (if the insureds are employees of one organization
at the time the policy is issued).
Evidence of insurability at the time the option is exercised will not be
required if as a result of a tax law change, but will be required in all other
instances. Certain conditions, as described in the policy, must be met before
this option can be exercised. This benefit is guaranteed by the Guaranteed Death
Benefit Rider. There is no charge for this benefit. This benefit is not
available in all states.
BENEFITS AT MATURITY AND MATURITY EXTENSION RIDER
If one or both of the insureds is living on the maturity date, the Company
will pay to the policy owner 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 58. At your option,
payment of the benefit may be deferred until the date of the last surviving
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 younger insured's age 100. Premiums will not be
accepted, nor will monthly deductions be made, after the maturity date.
Please refer to the policy for additional information on the Maturity
Extension Rider.
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<PAGE> 42
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 35.
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.
- 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 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
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<PAGE> 43
value of units credited to the policy for that subaccount. (See "Calculating
Unit Values for Each Subaccount," on page 36.) 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 last surviving 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.
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 44. 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.
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<PAGE> 44
DETERMINING FUND VALUE
[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 62. 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
37
<PAGE> 45
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 40. No charges are
currently imposed upon these transfers. However, the 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 55.
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 last survivor flexible premium universal life
policy. See "The Guaranteed Interest Account," page 55. 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 the Loan Account in excess of the Outstanding Debt will
be allocated to the subaccounts and/or the Guaranteed Interest Account in a
manner determined by us.
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,
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<PAGE> 46
Fund Value in the Loan Account in excess of the outstanding loan is treated
differently. The treatment depends on (1) whether when the loan was made, Fund
Values were transferred from the 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 last
surviving 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, 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 40.
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 48.
FULL SURRENDER
You may fully surrender your policy at any time during the lifetime of
either or both 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 58. For information on the tax
effects of surrender of a policy, see "Federal Income Tax Considerations," page
48.
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<PAGE> 47
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.
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 after the partial surrender.
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 last surviving 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 28.
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, and
(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, 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.
40
<PAGE> 48
If the insufficiency occurs at any other time, your policy may be at risk
of lapse depending on whether or not a Guaranteed Death Benefit Rider is in
effect.
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, 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, the payment required is:
(1) The monthly deduction not paid, plus
(2) Two succeeding monthly deductions plus by the amount of the
deductions from premiums for various taxes and sales charges.
(See "Charges and Deductions -- Deductions from Premiums," page 44). 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
last surviving 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.
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) A Guaranteed Death Benefit Rider is in effect, and
(2) The test for continuation of the guarantee period has been met.
41
<PAGE> 49
See "Guaranteed Death Benefit Rider," page 32.
While the Guaranteed Death Benefit Rider is in effect, the Fund Value of
your policy may 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 of both insureds that is 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.
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<PAGE> 50
CHARGES AND DEDUCTIONS
The following chart summarizes the current charges and deductions under the
policy:
- --------------------------------------------------------------------------------
DEDUCTIONS FROM PREMIUMS
<TABLE>
<CAPTION>
<S> <C> <C>
- -----------------------------------------------------------------------------------------------
Sales Charge -- Varies based on policy First 10 policy years -- 6% of premiums
year. It is a % of premium paid paid up to Target Premium and 3% if premium
paid in excess of Target Premium.
Years 11 and later -- 3% of all premiums.
- -----------------------------------------------------------------------------------------------
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
- ----------------------------------------------------------------------------------------------
MONTHLY DEDUCTIONS FROM FUND VALUE
- ----------------------------------------------------------------------------------------------
Cost of Insurance Charge Current cost of insurance rate x net amount
at risk at the beginning of the policy
month
- ----------------------------------------------------------------------------------------------
Administrative Charge -- Monthly $7.50
- ----------------------------------------------------------------------------------------------
Monthly per $1,000 Specified Amount Charge See Appendix B. This charge applies for the
Based on issue age of the younger insured first 10 policy years (or for 10 years from
smoking Status and Specified Amount. the date of any increase in Specified
Amount)
- ----------------------------------------------------------------------------------------------
Guaranteed Death Benefit Charge $0.01 per $1,000 of Specified Amount and
Monthly Charge for Guaranteed Death Benefit certain Rider amounts. Please note that the
Rider (Guaranteed Death Benefit Rider is Rider requires that at least the amount of
not available in all states) premiums set forth in 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 maximum per transfer(1)
(at Company's Option)
- ----------------------------------------------------------------------------------------------
Surrender Charge See the discussion of Surrender Charge on
Grades from 100% to 0 over 11 years based page 46 for grading schedule.
on a schedule. Factors per $1,000 of
Specified Amount vary based on issue age,
gender, and underwriting class.
- ----------------------------------------------------------------------------------------------
</TABLE>
(1) Currently no charge on any transfers.
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<PAGE> 51
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.
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 a target premium. The
target premium is actuarially determined based upon
the Specified Amount of the policy and the age,
gender, underwriting class and smoking status of
each of the insureds. The target premium is
established at issue, and will be adjusted if the
Specified Amount is increased or decreased. The
charge is a percent of each premium paid.
First 10 policy years -- 6% of premiums paid up to
target premium and 3% of premium paid in excess of
target premium in that year.
Years 11 and later -- 3% of all premiums.
You should refer to your policy to determine the amount of the target
premium.
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. The Company currently deducts an amount equal to 2.25% of each premium to
pay applicable premium taxes. Currently, these taxes range from 0% to 4%. 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.
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
44
<PAGE> 52
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.
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.
MONTHLY 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. Where unisex cost of insurance
rates apply, the 1980 Commissioners Ordinary Smoker and Nonsmoker Mortality
Table D applies.) These rates are based on the age and underwriting class of
each insured. They are also based on the gender of the insured, but unisex rates
are used where appropriate under applicable law. Unisex rates apply to policies
issued for delivery in the State of Montana. 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 each insured. In addition, they also vary with the policy
duration. The cost of insurance rate generally increases with the age of each
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 -- $7.50 per month
This charge reimburses us for expenses associated with administration and
maintenance of the policies. The charge is guaranteed never to exceed $7.50. We
do not expect to profit from this charge.
Monthly per $1,000
Specified Amount Charge -- This charge applies for the first 10 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 of
the younger insured, smoking status and Specified
Amount. 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
45
<PAGE> 53
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.
Surrender Charge -- The Company will assess a surrender charge against
Fund Value upon a surrender of all or part 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 100%
to zero over 11 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 number of full years
since the Policy was issued (or since the increase
in Specified Amount). The maximum level of
surrender charge is $53.31 per $1,000 of Specified
Amount.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
POLICY YEAR PERCENT
- ----------------------------------------------------------------------------------------------
1 100%
- ----------------------------------------------------------------------------------------------
2 90
- ----------------------------------------------------------------------------------------------
3 80
- ----------------------------------------------------------------------------------------------
4 70
- ----------------------------------------------------------------------------------------------
5 60
- ----------------------------------------------------------------------------------------------
6 50
- ----------------------------------------------------------------------------------------------
7 40
- ----------------------------------------------------------------------------------------------
8 30
- ----------------------------------------------------------------------------------------------
9 20
- ----------------------------------------------------------------------------------------------
10 10
- ----------------------------------------------------------------------------------------------
11 and later 0
- ----------------------------------------------------------------------------------------------
</TABLE>
SURRENDER CHARGE
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.
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
11-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.
46
<PAGE> 54
CORPORATE PURCHASERS
The policy is available for purchase by individuals, trusts, corporations
and other organizations. Corporate or other group or sponsored arrangements
purchasing one or more policies may receive a reduction in charges. The Company
may reduce the amount of the sales charge, surrender charge, or other charges
where the expenses associated with the policy or policies are reduced. Sales,
underwriting or other administrative expenses may be reduced for reasons such as
expected economies resulting from a corporate purchase or a group or sponsored
arrangement, from the amount of the initial premium payment or payments, or the
amount of projected premium payments.
TRANSACTION AND OTHER CHARGES
- Partial Surrender Fee -- $10
- Transfer of Fund Value -- $25 (at option of the Company) currently $0
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 52.
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 on page 4. Their Boards govern the Funds.
Fees and expenses of the Funds are described in more detail in the Funds'
prospectuses.
GUARANTEE OF CERTAIN CHARGES
We guarantee that certain charges will not increase. This includes:
(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.
(7) Partial surrender fee.
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
47
<PAGE> 55
(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 (a) a policy
is considered to be life insurance under applicable law and (b) one of two
alternate tests are met. The two alternative tests are:
(1) "Cash Value Accumulation Test"
(2) "Guideline Premium/Cash Value Corridor Test"
When you apply for a policy you will irrevocably choose which of these two
tests will be applied to your policy.
If 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
(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. If your policy is tested under the Cash Value Accumulation Test, a
table of factors will be shown in your policy.
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.
48
<PAGE> 56
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 minus the cost basis
under a policy will be treated as ordinary income for federal income tax
purposes. A policy's cost basis will usually equal the premiums paid less any
premiums previously recovered through partial surrenders. Under Section 7702 of
the Code, special rules apply to determine whether part or all 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 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
49
<PAGE> 57
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 "Federal Income Tax
Considerations -- Conventional Life Insurance Policies," page 49.)
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.
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Riders, Policy Changes, and Transfers
Certain benefits permit the splitting of the policy into two other
individual policies upon:
- Divorce
- Business Dissolution
- Certain changes in the Federal estate tax law
The splitting of a policy could have adverse tax consequences. Consequences
include, but are not limited to, the recognition of taxable income in an amount
up to any gain in the policy at the time of the split.
In order for the Beneficiary to receive certain tax treatment discussed in
the previous sections above, the policy must initially qualify and continue to
qualify as life insurance under Sections 7702 and 817(h) of the Code. To qualify
the policy as life insurance for tax purposes the Company may:
- Make changes in the policy or Riders, or
- Make distributions from the policy to the extent considered necessary.
Any such change will uniformly apply to all policies that are affected. The
policy owner will be given advance notice of such changes.
Special tax rules may apply to the transfer of ownership of a policy.
Consult a qualified tax adviser before any transfer of the policy.
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.
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 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.
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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 own right.
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
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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 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
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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 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 which premiums have been allocated to a particular subaccount of the
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 the 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.
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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.
We may also use non-standard performance in cases where we add new
subaccounts which purchase shares of underlying funds in existence prior to the
formation of such subaccounts. In such cases we will use the historical
performance of the underlying fund with the current expenses of the applicable
subaccount under the Contract.
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 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
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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 of the last
surviving insured 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 of the last surviving
insured multiplied by a death benefit percentage. See "Death Benefits under the
Policy," page 28.
POLICY CHARGES
Deductions from premium, monthly deductions from the Fund Value, and
surrender 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.
- Transfers from the Guaranteed Interest Account may only be made during
the time period which begins on the policy anniversary and which ends 30
days after the policy anniversary.
If the transfer request is received on the policy anniversary, it will be
processed as of the policy anniversary. If 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 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.
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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 invested in the
subaccounts. See "Full Surrender," page 39 and "Partial Surrender", page 40.
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 either or both of the
insureds 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 last surviving 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 when the last surviving
insured dies 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 received and recorded. The
Company may require that the policy be returned for any policy change or upon
its surrender.
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If the last surviving 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 last surviving 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 per payment 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 either 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.
This provision may not be applicable in all states.
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
ownership of the policy. However, after an assignment, the rights of any policy
owner or beneficiary will be
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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 48.)
ERRORS ON THE APPLICATION
If the age or gender of an 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 "Monthly Deductions From Fund Value -- Cost of
Insurance," page 45.
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 an 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.
This provision may not be applicable in all states.
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 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.
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Further, registered representatives may be eligible to receive certain bonuses
and other benefits based on the amount of earned commissions.
In addition, registered representatives who meet specified production
levels may qualify, under sales incentive programs adopted by Company, to
receive 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. All of the officers and directors
have held their respective positions listed below for five or more years.
Current Officers and Directors are:
<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
- ---- -----------------------------------
<S> <C>
Michael I. Roth......................................... Director, Chairman and Chief Executive
Officer
Samuel J. Foti.......................................... Director, President and Chief Operating
Officer
Richard E. Connors...................................... Director
Richard Daddario........................................ Director, Vice President and Controller
Phillip A. Eisenberg.................................... Director, Vice President and Actuary
Margaret G. Gale........................................ Director, Vice President
Michael Slipowitz....................................... Vice President
Stephen J. Hall......................................... Director
Evelyn L. Peos.......................................... Vice President
Kenneth M. Levine....................................... Director and Executive Vice President
David S. Waldman........................................ Secretary
David V. Weigel......................................... Treasurer
Sam Chiodo.............................................. Vice President
Charles P. Leone........................................ Director, Vice President and Chief
Corporate Compliance Officer
</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.
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 Director since May
1991. Mr. Roth is also a director of the following subsidiaries of MONY: 1740
Advisers, Inc. (since December 1992), MONY Benefits Management Corp. (since
March 1999). Mr. Roth has been with MONY for 11 years. Mr. Roth serves on the
board of directors of the American Council of Life Insurance, The Life Insurance
Council of New York, Enterprise Foundation (a charitable foundation which
develops housing not affiliated with the Enterprise Group of Funds),
Metropolitan Development Association of Syracuse and Central New York,
Enterprise Group of Funds, Inc., Enterprise Accumulation Trust, Pitney Bowes,
Inc., Lincoln Center for the Performing Arts Leadership Committee, Life Office
Management Association, New York City Partnership and Chamber of
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Commerce, and Committee for Economic Development. He is also Chairman of the
Board of Insurance Marketplace Standards Association.
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 Director 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 Benefits Management
Corp. (since March 1999), MONY Life Insurance Company of the Americas, Ltd.,
(since December 1994) and MONY Bank & Trust Company of the Americas, Ltd. (since
December 1994). Mr. Foti has been with MONY for 11 years. Mr. Foti serves on the
board of directors of Enterprise Group of Funds, Inc., Enterprise Accumulation
Trust and The American College of which he is Chairman.
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 International Holdings, Inc. (since 1998), MONY Brokerage, Inc. (since June
1997) and MONY Life Insurance Company of the Americas, Ltd. (since December
1997). He also serves as MONY's Chief Financial Officer (from January 1991 to
present). Mr. Daddario has been with MONY for 10 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 Benefits Management Corp. (since October 1991),
MONY Realty Partners, Inc. (since October 1991) and 1740 Ventures, Inc. (since
October 1991). He is also Chairman of the Board and President of MONY Series
Fund, Inc. (since December 1991). Mr. Levine has been with MONY for 27 years.
Sam Chiodo is Vice President of the Company. He is Vice
President -- Corporate & Strategic Marketing of MONY (since 1993). Mr. Chiodo
has been with MONY for 27 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). Mr. Connors has been
with MONY for 11 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). Mr. Eisenberg is a director of the following subsidiary of MONY: MONY
Benefits Management Corp. Mr. Eisenberg has been with MONY for 35 years.
Margaret G. Gale is Director and Vice President of the Company. She is Vice
President of MONY (since February 1991). Ms. Gale has been with MONY for 21
years.
William D. Goodwin is Vice President of the Company. He is Senior Vice
President of MONY (since November 1998). He has also served as Senior Managing
Director (from 1989 to 1998). Mr. Goodwin has been with MONY for 25 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). Mr. Hall has been
with MONY for 26 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 is a director of the following subsidiary of MONY: MONY
Securities Corporation (since May 1999). Mr. Leone has been with MONY for 35
years.
Steven G. Orluck is Vice President of the Company. He is Senior Vice
President, Complementary Distribution of MONY (since March 2000) and has also
served as Vice President (from July 1998 to
61
<PAGE> 69
March 2000). Prior to 1998, Mr. Orluck had been a Vice President of Metropolitan
Life Insurance Company where he worked for 24 years.
Evelyn L. Peos is Vice President of the Company. She is Vice President of
MONY. Ms. Peos has been with MONY for 22 years.
Michael Slipowitz is Vice President of the Company. He is Vice President of
MONY. Mr. Slipowitz has been with MONY for 19 years.
David S. Waldman is Secretary of the Company. He is Assistant Vice
President and Senior Counsel -- Operations (since 1992). Mr. Waldman has been
with MONY for 17 years.
David V. Weigel is Treasurer of the Company. He is Vice
President -- Treasurer of MONY (since 1994). Mr. Weigel has been with MONY for
26 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.
62
<PAGE> 70
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,
(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
the Company included for the periods ended December 31, 1999 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 of MONY America Variable Account L and the
Company are set forth herein.
The financial statements of MONY America Variable Account L and the Company
have been audited by PricewaterhouseCoopers LLP. The financial statements of the
Company should be considered only as bearing upon the ability of the Company to
meet its obligations under the Policies.
63
<PAGE> 71
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 72
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,
1999................................................... F-3
Statements of operations for the periods ended December
31, 1999............................................... F-6
Statements of changes in net assets for the periods ended
December 31, 1999...................................... F-9
Notes to financial statements............................. F-12
With respect to MONY Life Insurance Company of America:
Report of Independent Accountants......................... F-15
Balance sheets as of December 31, 1999 and 1998........... F-16
Statements of income and comprehensive income for the
years ended December 31, 1999, 1998 and 1997........... F-17
Statements of changes in shareholder's equity for the
years ended December 31, 1999, 1998 and 1997........... F-18
Statements of cash flows for the years ended December 31,
1999, 1998 and 1997.................................... F-19
Notes to financial statements............................. F-21
</TABLE>
F-1
<PAGE> 73
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 Estate Master:
In our opinion, the accompanying statement 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 MONY Custom Estate
Master's Subaccounts of MONY America Variable Account L at December 31, 1999,
and the results of each of their operations and the changes in each of their net
assets for the periods presented, in conformity with accounting principles
generally accepted in the United States. These financial statements are the
responsibility of MONY Life Insurance Company of America's management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these financial statements in accordance
with auditing standards generally accepted in the United States, 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 audit, which included confirmation
of securities at December 31, 1999 by correspondence with the fund transfer
agents, provides a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 11, 2000
F-2
<PAGE> 74
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE 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
Shares held in respective Funds... 8,343 9,197 4,577 226,425 5,767 7,915 17,456
======= ======== ======= ======== ======== ======== ========
Investments at cost............... $93,483 $120,715 $49,679 $226,425 $211,170 $239,796 $675,257
======= ======== ======= ======== ======== ======== ========
Investments in respective Funds,
at net asset value.............. $90,266 $113,313 $49,936 $226,425 $222,724 $248,945 $633,648
Amount due from MONY America...... 0 0 0 7,738 361 0 0
------- -------- ------- -------- -------- -------- --------
Total assets............. 90,266 113,313 49,936 234,163 223,085 248,945 633,648
------- -------- ------- -------- -------- -------- --------
LIABILITIES
Amount due to respective Funds.... 0 0 0 7,738 361 0 0
Amount due to MONY America........ 14 17 7 31 32 37 95
------- -------- ------- -------- -------- -------- --------
Total liabilities........ 14 17 7 7,769 393 37 95
------- -------- ------- -------- -------- -------- --------
Net assets........................ $90,252 $113,296 $49,929 $226,394 $222,692 $248,908 $633,553
======= ======== ======= ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments... $90,531 $118,183 $49,720 $221,526 $200,965 $224,587 $609,188
Undistributed net investment
income........................ 3,506 4,549 217 4,868 11,721 12,519 71,839
Accumulated net realized gain
(loss) on investments......... (568) (2,034) (265) 0 (1,548) 2,653 (5,865)
Net unrealized appreciation
(depreciation) of
investments................... (3,217) (7,402) 257 0 11,554 9,149 (41,609)
------- -------- ------- -------- -------- -------- --------
Net assets........................ $90,252 $113,296 $49,929 $226,394 $222,692 $248,908 $633,553
======= ======== ======= ======== ======== ======== ========
Number of units outstanding*...... 8,951 12,005 4,962 21,669 19,286 20,346 58,038
------- -------- ------- -------- -------- -------- --------
Net asset value per unit
outstanding*.................... $ 10.08 $ 9.44 $ 10.06 $ 10.45 $ 11.55 $ 12.23 $ 10.92
======= ======== ======= ======== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
** Formerly Small Cap Subaccount.
See notes to financial statements.
F-3
<PAGE> 75
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
--------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY
GROWTH BOND GROWTH INCOME GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds.............. 15,406 10,017 199,027 71,116 23,916
======== ======= ========== ======== ========
Investments at cost.......................... $116,708 $51,653 $1,169,336 $415,929 $154,263
======== ======= ========== ======== ========
Investments in respective Funds, at net asset
value...................................... $143,120 $50,681 $1,305,619 $438,073 $203,288
Amount due from MONY America................. 0 0 361 361 0
-------- ------- ---------- -------- --------
Total assets........................ 143,120 50,681 1,305,980 438,434 203,288
-------- ------- ---------- -------- --------
LIABILITIES
Amount due to respective Funds............... 0 0 361 361 0
Amount due to MONY America................... 18 7 183 65 27
-------- ------- ---------- -------- --------
Total liabilities................... 18 7 544 426 27
-------- ------- ---------- -------- --------
Net assets................................... $143,102 $50,674 $1,305,436 $438,008 $203,261
======== ======= ========== ======== ========
Net assets consist of:
Contractholders' net payments.............. $113,718 $49,714 $1,166,008 $403,588 $151,856
Undistributed net investment income
(loss)................................... 2,007 2,473 (1,680) (557) (231)
Accumulated net realized gain (loss) on
investments.............................. 965 (541) 4,825 12,833 2,611
Net unrealized appreciation (depreciation)
of investments........................... 26,412 (972) 136,283 22,144 49,025
-------- ------- ---------- -------- --------
Net assets................................... $143,102 $50,674 $1,305,436 $438,008 $203,261
======== ======= ========== ======== ========
Number of units outstanding*................. 10,372 4,921 104,634 36,957 13,029
-------- ------- ---------- -------- --------
Net asset value per unit outstanding*........ $ 13.80 $ 10.30 $ 12.48 $ 11.85 $ 15.60
======== ======= ========== ======== ========
<CAPTION>
MONY CUSTOM ESTATE MASTER
--------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------
EQUITY CAPITAL MULTI-CAP
INCOME APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ----------
<S> <C> <C> <C>
ASSETS
Shares held in respective Funds.............. 71,752 19,328 2,988
======== ======== =======
Investments at cost.......................... $385,123 $125,496 $38,860
======== ======== =======
Investments in respective Funds, at net asset
value...................................... $385,308 $167,187 $43,709
Amount due from MONY America................. 361 361 0
-------- -------- -------
Total assets........................ 385,669 167,548 43,709
-------- -------- -------
LIABILITIES
Amount due to respective Funds............... 361 361 0
Amount due to MONY America................... 53 22 4
-------- -------- -------
Total liabilities................... 414 383 4
-------- -------- -------
Net assets................................... $385,255 $167,165 $43,705
======== ======== =======
Net assets consist of:
Contractholders' net payments.............. $384,591 $123,324 $38,829
Undistributed net investment income
(loss)................................... (177) (192) (8)
Accumulated net realized gain (loss) on
investments.............................. 656 2,342 35
Net unrealized appreciation (depreciation)
of investments........................... 185 41,691 4,849
-------- -------- -------
Net assets................................... $385,255 $167,165 $43,705
======== ======== =======
Number of units outstanding*................. 36,431 10,726 3,425
-------- -------- -------
Net asset value per unit outstanding*........ $ 10.57 $ 15.59 $ 12.76
======== ======== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-4
<PAGE> 76
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
--------------------------------------------------------------------------------------------
FIDELITY VARIABLE
INSURANCE PRODUCTS FUNDS JANUS ASPEN SERIES
DREYFUS ------------------------- ---------------------------------------------------
STOCK VIP VIP II AGGRESSIVE CAPITAL WORLDWIDE
INDEX GROWTH CONTRA GROWTH BALANCED APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ----------- ----------- ---------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds.... 1,277 183 392 178 456 40 268
======= ======= ======= ======= ======= ====== =======
Investments at cost................ $47,872 $ 9,851 $10,750 $10,220 $12,359 $1,053 $11,140
======= ======= ======= ======= ======= ====== =======
Investments in respective Funds, at
net asset value.................. $49,109 $10,014 $11,400 $10,645 $12,741 $1,312 $12,787
Amount due from MONY America....... 0 0 0 0 0 0 0
------- ------- ------- ------- ------- ------ -------
Total assets.............. 49,109 10,014 11,400 10,645 12,741 1,312 12,787
------- ------- ------- ------- ------- ------ -------
LIABILITIES
Amount due to MONY America......... 5 1 2 1 2 0 1
------- ------- ------- ------- ------- ------ -------
Total liabilities......... 5 1 2 1 2 0 1
------- ------- ------- ------- ------- ------ -------
Net assets......................... $49,104 $10,013 $11,398 $10,644 $12,739 $1,312 $12,786
======= ======= ======= ======= ======= ====== =======
Net assets consist of:
Contractholders' net payments.... $47,534 $ 9,850 $10,753 $10,216 $12,225 $1,051 $11,133
Undistributed net investment
income (loss).................. 306 0 (2) (1) 132 1 (3)
Accumulated net realized gain
(loss) on investments.......... 27 0 (3) 4 0 1 9
Net unrealized appreciation of
investments.................... 1,237 163 650 425 382 259 1,647
------- ------- ------- ------- ------- ------ -------
Net assets......................... $49,104 $10,013 $11,398 $10,644 $12,739 $1,312 $12,786
======= ======= ======= ======= ======= ====== =======
Number of units outstanding*....... 4,587 899 1,075 920 1,220 105 1,107
------- ------- ------- ------- ------- ------ -------
Net asset value per unit
outstanding*..................... $ 10.71 $ 11.14 $ 10.60 $ 11.57 $ 10.44 $12.49 $ 11.55
======= ======= ======= ======= ======= ====== =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-5
<PAGE> 77
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE 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
JANUARY 11, 1999** FEBRUARY 12, 1999** FEBRUARY 12, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
------------------ ------------------- ------------------- ------------------
<S> <C> <C> <C> <C>
Dividend income............... $ 3,711 $ 4,775 $ 303 $5,232
Mortality and expense risk
charges..................... (205) (226) (86) (364)
------- ------- ----- ------
Net investment income......... 3,506 4,549 217 4,868
------- ------- ----- ------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments.............. (568) (2,034) (265) 0
Net change in unrealized
appreciation
(depreciation) of
investments.............. (3,217) (7,402) 257 0
------- ------- ----- ------
Net realized and unrealized
gain (loss) on
investments................. (3,785) (9,436) (8) 0
------- ------- ----- ------
Net increase (decrease) in net
assets resulting from
operations.................. $ (279) $(4,887) $ 209 $4,868
======= ======= ===== ======
<CAPTION>
MONY CUSTOM ESTATE MASTER
-------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------
SMALL COMPANY MANAGED
EQUITY VALUE SUBACCOUNT
SUBACCOUNT SUBACCOUNT* ------------------
------------------ ------------------- FOR THE PERIOD
FOR THE PERIOD FOR THE PERIOD JANUARY 4, 1999**
JANUARY 11, 1999** JANUARY 7, 1999** THROUGH
THROUGH THROUGH DECEMBER 31,
DECEMBER 31, 1999 DECEMBER 31, 1999 1999
------------------ ------------------- ------------------
<S> <C> <C> <C>
Dividend income............... $12,012 $12,889 $ 72,768
Mortality and expense risk
charges..................... (291) (370) (929)
------- ------- --------
Net investment income......... 11,721 12,519 71,839
------- ------- --------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments.............. (1,548) 2,653 (5,865)
Net change in unrealized
appreciation
(depreciation) of
investments.............. 11,554 9,149 (41,609)
------- ------- --------
Net realized and unrealized
gain (loss) on
investments................. 10,006 11,802 (47,474)
------- ------- --------
Net increase (decrease) in net
assets resulting from
operations.................. $21,727 $24,321 $ 24,365
======= ======= ========
</TABLE>
- ---------------
* Formerly Small Cap Subaccount
** Commencement of operations
See notes to financial statements.
F-6
<PAGE> 78
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
----------------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY
GROWTH BOND GROWTH INCOME GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- ------------------ -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 4, 1999** JANUARY 6, 1999** JANUARY 4, 1999** JANUARY 11, 1999** JANUARY 4, 1999**
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
------------------- ------------------- ------------------- ------------------ -------------------
<S> <C> <C> <C> <C> <C>
Dividend income...... $ 2,165 $ 2,558 $ 0 $ 1 $ 0
Mortality and expense
risk charges....... (158) (85) (1,680) (558) (231)
------- ------- -------- ------- -------
Net investment income
(loss)............. 2,007 2,473 (1,680) (557) (231)
------- ------- -------- ------- -------
Realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss) on
investments........ 965 (541) 4,825 12,833 2,611
Net change in
unrealized
appreciation
(depreciation) of
investments........ 26,412 (972) 136,283 22,144 49,025
------- ------- -------- ------- -------
Net realized and
unrealized gain
(loss) on
investments........ 27,377 (1,513) 141,108 34,977 51,636
------- ------- -------- ------- -------
Net increase in net
assets resulting
from operations.... $29,384 $ 960 $139,428 $34,420 $51,405
======= ======= ======== ======= =======
<CAPTION>
MONY CUSTOM ESTATE MASTER
----------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------
EQUITY CAPITAL MULTI-CAP
INCOME APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- --------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 4, 1999** JANUARY 11, 1999** NOVEMBER 10, 1999**
THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
------------------- ------------------- --------------------
<S> <C> <C> <C>
Dividend income...... $ 312 $ 0 $ 0
Mortality and expense
risk charges....... (489) (192) (8)
----- ------- ------
Net investment income
(loss)............. (177) (192) (8)
----- ------- ------
Realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss) on
investments........ 656 2,342 35
Net change in
unrealized
appreciation
(depreciation) of
investments........ 185 41,691 4,849
----- ------- ------
Net realized and
unrealized gain
(loss) on
investments........ 841 44,033 4,884
----- ------- ------
Net increase in net
assets resulting
from operations.... $ 664 $43,841 $4,876
===== ======= ======
</TABLE>
- ---------------
** Commencement of operations
See notes to financial statements.
F-7
<PAGE> 79
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
-------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS JANUS ASPEN SERIES
DREYFUS ------------------------------------------ ------------------
STOCK VIP VIP II AGGRESSIVE
INDEX GROWTH CONTRA FUND GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- -------------------- ------------------- ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 10, 1999** NOVEMBER 15, 1999** DECEMBER 8, 1999** DECEMBER 6, 1999**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
------------------- -------------------- ------------------- ------------------
<S> <C> <C> <C> <C>
Dividend income.............. $ 314 $ 0 $ 0 $ 0
Mortality and expense risk
charges.................... (8) 0 (2) (1)
------ ---- ---- ----
Net investment income
(loss)..................... 306 0 (2) (1)
------ ---- ---- ----
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments.............. 27 0 (3) 4
Net change in unrealized
appreciation of
investments.............. 1,237 163 650 425
------ ---- ---- ----
Net realized and unrealized
gain on investments........ 1,264 163 647 429
------ ---- ---- ----
Net increase in net assets
resulting from
operations................. $1,570 $163 $645 $428
====== ==== ==== ====
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------
JANUS ASPEN SERIES
---------------------------------------------------------------
CAPITAL WORLDWIDE
BALANCED APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------- --------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 6, 1999** NOVEMBER 10, 1999** NOVEMBER 30, 1999**
THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
------------------ ------------------- --------------------
<S> <C> <C> <C>
Dividend income.............. $135 $ 2 $ 0
Mortality and expense risk
charges.................... (3) (1) (3)
---- ---- ------
Net investment income
(loss)..................... 132 1 (3)
---- ---- ------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments.............. 0 1 9
Net change in unrealized
appreciation of
investments.............. 382 259 1,647
---- ---- ------
Net realized and unrealized
gain on investments........ 382 260 1,656
---- ---- ------
Net increase in net assets
resulting from
operations................. $514 $261 $1,653
==== ==== ======
</TABLE>
- ---------------
** Commencement of operations
See notes to financial statements.
F-8
<PAGE> 80
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE 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
JANUARY 11, 1999** FEBRUARY 12, 1999** FEBRUARY 12, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income........ $ 3,506 $ 4,549 $ 217 $ 4,868
Net realized gain (loss) on
investments................ (568) (2,034) (265) 0
Net change in unrealized
appreciation (depreciation)
of investments............. (3,217) (7,402) 257 0
------- -------- ------- ---------
Net increase (decrease) in net
assets resulting from
operations................... (279) (4,887) 209 4,868
------- -------- ------- ---------
From unit transactions:
Net proceeds from the
issuance of units.......... 97,805 131,515 57,178 486,468
Net asset value of units
redeemed or used to meet
contract obligations....... (7,274) (13,332) (7,458) (264,942)
------- -------- ------- ---------
Net increase from unit
transactions................. 90,531 118,183 49,720 221,526
------- -------- ------- ---------
Net increase in net assets..... 90,252 113,296 49,929 226,394
Net assets beginning of
period....................... 0 0 0 0
------- -------- ------- ---------
Net assets end of period*...... $90,252 $113,296 $49,929 $ 226,394
======= ======== ======= =========
Unit transactions:
Units outstanding beginning of
period....................... 0 0 0 0
Units issued during the
period....................... 9,671 13,368 5,703 46,291
Units redeemed during the
period....................... (720) (1,363) (741) (24,622)
------- -------- ------- ---------
Units outstanding end of
period....................... 8,951 12,005 4,962 21,669
======= ======== ======= =========
- ---------------
* Includes undistributed net
investment income of: $ 3,506 $ 4,549 $ 217 $ 4,868
======= ======== ======= =========
** Commencement of operations
*** Formerly Small Cap
Subaccount
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT*** SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 11, 1999** JANUARY 7, 1999** JANUARY 4, 1999**
THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
------------------- ------------------- -------------------
<S> <C> <C> <C>
From operations:
Net investment income........ $ 11,721 $ 12,519 $ 71,839
Net realized gain (loss) on
investments................ (1,548) 2,653 (5,865)
Net change in unrealized
appreciation (depreciation)
of investments............. 11,554 9,149 (41,609)
-------- -------- --------
Net increase (decrease) in net
assets resulting from
operations................... 21,727 24,321 24,365
-------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units.......... 228,368 243,690 677,394
Net asset value of units
redeemed or used to meet
contract obligations....... (27,403) (19,103) (68,206)
-------- -------- --------
Net increase from unit
transactions................. 200,965 224,587 609,188
-------- -------- --------
Net increase in net assets..... 222,692 248,908 633,553
Net assets beginning of
period....................... 0 0 0
-------- -------- --------
Net assets end of period*...... $222,692 $248,908 $633,553
======== ======== ========
Unit transactions:
Units outstanding beginning of
period....................... 0 0 0
Units issued during the
period....................... 21,811 22,000 64,524
Units redeemed during the
period....................... (2,525) (1,654) (6,486)
-------- -------- --------
Units outstanding end of
period....................... 19,286 20,346 58,038
======== ======== ========
- ---------------
* Includes undistributed net
investment income of: $ 11,721 $ 12,519 $ 71,839
======== ======== ========
** Commencement of operations
*** Formerly Small Cap
Subaccount
</TABLE>
See notes to financial statements.
F-9
<PAGE> 81
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE 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
JANUARY 4, 1999** JANUARY 6, 1999** JANUARY 4, 1999** JANUARY 11, 1999**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss)................... $ 2,007 $ 2,473 $ (1,680) $ (557)
Net realized gain (loss) on
investments.............. 965 (541) 4,825 12,833
Net change in unrealized
appreciation
(depreciation) of
investments.............. 26,412 (972) 136,283 22,144
-------- ------- ---------- ---------
Net increase in net assets
resulting from
operations................. 29,384 960 139,428 34,420
-------- ------- ---------- ---------
From unit transactions:
Net proceeds from the
issuance of units........ 117,483 56,495 1,261,158 554,185
Net asset value of units
redeemed or used to meet
contract obligations..... (3,765) (6,781) (95,150) (150,597)
-------- ------- ---------- ---------
Net increase from unit
transactions............... 113,718 49,714 1,166,008 403,588
-------- ------- ---------- ---------
Net increase in net assets... 143,102 50,674 1,305,436 438,008
Net assets beginning of
period..................... 0 0 0 0
-------- ------- ---------- ---------
Net assets end of period*.... $143,102 $50,674 $1,305,436 $ 438,008
======== ======= ========== =========
Unit transactions:
Units outstanding beginning
of period.................. 0 0 0 0
Units issued during the
period..................... 10,713 5,588 113,122 49,867
Units redeemed during the
period..................... (341) (667) (8,488) (12,910)
-------- ------- ---------- ---------
Units outstanding end of
period..................... 10,372 4,921 104,634 36,957
======== ======= ========== =========
- ---------------
* Includes undistributed net
investment income (loss)
of:....................... $ 2,007 $ 2,473 $ (1,680) $ (557)
======== ======= ========== =========
** Commencement of operations
<CAPTION>
MONY CUSTOM ESTATE MASTER
-------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------------------------------
SMALL COMPANY EQUITY CAPITAL MULTI-CAP
GROWTH INCOME APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 4, 1999** JANUARY 4, 1999** JANUARY 11, 1999** NOVEMBER 10, 1999**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss)................... $ (231) $ (177) $ (192) $ (8)
Net realized gain (loss) on
investments.............. 2,611 656 2,342 35
Net change in unrealized
appreciation
(depreciation) of
investments.............. 49,025 185 41,691 4,849
-------- -------- -------- -------
Net increase in net assets
resulting from
operations................. 51,405 664 43,841 4,876
-------- -------- -------- -------
From unit transactions:
Net proceeds from the
issuance of units........ 166,044 396,878 131,349 39,067
Net asset value of units
redeemed or used to meet
contract obligations..... (14,188) (12,287) (8,025) (238)
-------- -------- -------- -------
Net increase from unit
transactions............... 151,856 384,591 123,324 38,829
-------- -------- -------- -------
Net increase in net assets... 203,261 385,255 167,165 43,705
Net assets beginning of
period..................... 0 0 0 0
-------- -------- -------- -------
Net assets end of period*.... $203,261 $385,255 $167,165 $43,705
======== ======== ======== =======
Unit transactions:
Units outstanding beginning
of period.................. 0 0 0 0
Units issued during the
period..................... 14,338 37,590 11,402 3,445
Units redeemed during the
period..................... (1,309) (1,159) (676) (20)
-------- -------- -------- -------
Units outstanding end of
period..................... 13,029 36,431 10,726 3,425
======== ======== ======== =======
- ---------------
* Includes undistributed net
investment income (loss)
of:....................... $ (231) $ (177) $ (192) $ (8)
======== ======== ======== =======
** Commencement of operations
</TABLE>
See notes to financial statements.
F-10
<PAGE> 82
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS JANUS ASPEN SERIES
DREYFUS ------------------------------------------- -------------------
STOCK VIP VIP II AGGRESSIVE
INDEX GROWTH CONTRA FUND GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- -------------------- -------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 10, 1999** NOVEMBER 15, 1999** DECEMBER 8, 1999** DECEMBER 6, 1999**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
------------------- -------------------- -------------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss).................... $ 306 $ 0 $ (2) $ (1)
Net realized gain (loss) on
investments............... 27 0 (3) 4
Net change in unrealized
appreciation
(depreciation) of
investments............... 1,237 163 650 425
------- ------- ------- -------
Net increase in net assets
resulting from operations... 1,570 163 645 428
------- ------- ------- -------
From unit transactions:
Net proceeds from the
issuance of units......... 48,446 9,854 11,394 10,287
Net asset value of units
redeemed or used to meet
contract obligations...... (912) (4) (641) (71)
------- ------- ------- -------
Net increase from unit
transactions................ 47,534 9,850 10,753 10,216
------- ------- ------- -------
Net increase in net assets.... 49,104 10,013 11,398 10,644
Net assets beginning of
period...................... 0 0 0 0
------- ------- ------- -------
Net assets end of period*..... $49,104 $10,013 $11,398 $10,644
======= ======= ======= =======
Unit transactions:
Units outstanding beginning of
period...................... 0 0 0 0
Units issued during the
period...................... 4,675 899 1,139 927
Units redeemed during the
period...................... (88) 0 (64) (7)
------- ------- ------- -------
Units outstanding end of
period...................... 4,587 899 1,075 920
======= ======= ======= =======
- ---------------
* Includes undistributed net
investment income (loss)
of: $ 306 $ 0 $ (2) $ (1)
======= ======= ======= =======
** Commencement of operations
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------
JANUS ASPEN SERIES
---------------------------------------------------------------
CAPITAL WORLDWIDE
BALANCED APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 6, 1999** NOVEMBER 10, 1999** NOVEMBER 30, 1999**
THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
------------------- ------------------- -------------------
<S> <C> <C> <C>
From operations:
Net investment income
(loss).................... $ 132 $ 1 $ (3)
Net realized gain (loss) on
investments............... 0 1 9
Net change in unrealized
appreciation
(depreciation) of
investments............... 382 259 1,647
------- ------ -------
Net increase in net assets
resulting from operations... 514 261 1,653
------- ------ -------
From unit transactions:
Net proceeds from the
issuance of units......... 12,929 1,062 11,276
Net asset value of units
redeemed or used to meet
contract obligations...... (704) (11) (143)
------- ------ -------
Net increase from unit
transactions................ 12,225 1,051 11,133
------- ------ -------
Net increase in net assets.... 12,739 1,312 12,786
Net assets beginning of
period...................... 0 0 0
------- ------ -------
Net assets end of period*..... $12,739 $1,312 $12,786
======= ====== =======
Unit transactions:
Units outstanding beginning of
period...................... 0 0 0
Units issued during the
period...................... 1,290 106 1,120
Units redeemed during the
period...................... (70) (1) (13)
------- ------ -------
Units outstanding end of
period...................... 1,220 105 1,107
======= ====== =======
- ---------------
* Includes undistributed net
investment income (loss)
of: $ 132 $ 1 $ (3)
======= ====== =======
** Commencement of operations
</TABLE>
See notes to financial statements.
F-11
<PAGE> 83
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Flexible Premium Variable Life Insurance policies,
which include Variable Life (Strategist), Variable Universal Life (MONYEquity
Master, MONY Custom Equity Master and MONY Custom Estate 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 Estate Master) is
presented here.
There are twenty-five MONY Custom Estate Master Subaccounts within the
Variable Account, each of which invests only in a corresponding portfolio of the
MONY Series Fund, Inc. (the "Fund"), the Enterprise Accumulation Trust
("Enterprise"), Dreyfus Stock Index Fund, The Dreyfus Socially Responsible
Growth Fund, Inc., Fidelity Variable Insurance Products Funds, or Janus Aspen
Series (collectively, the "Funds"). Twenty-two subaccounts of the MONY Custom
Estate Master commenced operations during 1999. The Funds are registered under
the 1940 Act as open end, diversified, management investment companies. The Fund
and Enterprise are affiliated with MONY.
A full presentation of the related financial statements and footnotes of
the Funds are contained on pages hereinafter and should be read in conjunction
with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
Investment:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset values are based upon market or fair
valuations of the securities held in each of the corresponding portfolios of the
Funds. For the money market portfolios, the net asset value is based on
amortized cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses on redemption of investments in the portfolios of the
Funds are determined on the identified cost basis. Dividend income is recorded
on ex-dividend date. Dividend income includes distributions of net investment
income and net realized capital gains received from the respective portfolios of
the Funds. Dividend income received is reinvested in additional shares of the
respective portfolios of the Funds.
F-12
<PAGE> 84
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY America. A
surrender charge may be imposed by MONY America when a full or partial surrender
is requested by the policyholders. These deductions are treated as
contractholder redemptions by the Variable Account. The amount deducted for the
MONY Custom Estate Master subaccounts for the period ended December 31, 1999
aggregated $192,318.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 0.35% of the average daily net
assets of each of the MONY Custom Estate Master subaccounts. As investment
adviser to the Fund, it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to the portfolios of Enterprise, and it receives
amounts paid by Enterprise for those services.
4. INVESTMENT TRANSACTIONS:
Cost of shares acquired and proceeds from shares redeemed by each
subaccount during the period ended December 31, 1999 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
MONY CUSTOM ESTATE MASTER SUBACCOUNTS SHARES ACQUIRED SHARES REDEEMED
------------------------------------- --------------- ---------------
<S> <C> <C>
MONY Series Fund, Inc.
Intermediate Term Bond Portfolio........................ $ 102,466 $ 12,126
Long Term Bond Portfolio................................ 137,644 19,671
Government Securities Portfolio......................... 61,464 11,823
Money Market Portfolio.................................. 532,087 310,893
Enterprise Accumulation Trust
Equity Portfolio........................................ 237,571 36,865
Small Company Value Portfolio........................... 248,728 24,474
Managed Portfolio....................................... 711,543 103,189
International Growth Portfolio.......................... 122,096 8,518
High Yield Bond Portfolio............................... 59,872 10,236
Growth Portfolio........................................ 1,312,675 148,164
</TABLE>
F-13
<PAGE> 85
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENT TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
MONY CUSTOM ESTATE MASTER SUBACCOUNTS SHARES ACQUIRED SHARES REDEEMED
------------------------------------- --------------- ---------------
<S> <C> <C>
Growth and Income Portfolio............................. $ 566,814 $163,719
Small Company Growth Portfolio.......................... 180,327 28,675
Equity Income Portfolio................................. 401,736 17,581
Capital Appreciation Portfolio.......................... 137,194 14,040
Multi-Cap Growth Subaccount............................. 39,067 242
Dreyfus
Stock Index Fund........................................ 48,446 915
Fidelity Variable Insurance Products Funds
VIP Growth Portfolio.................................... 9,854 4
VIP II Contra Fund Portfolio............................ 11,394 641
Janus Aspen Series
Aggressive Growth Portfolio............................. 10,287 71
Balanced Portfolio...................................... 12,929 705
Capital Appreciation Portfolio.......................... 1,062 12
Worldwide Growth Portfolio.............................. 11,276 145
</TABLE>
F-14
<PAGE> 86
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholder 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, 1999 and 1998,
and the results of its operations and its cash flows for each of the three years
in the period ended December 31, 1999, in conformity with accounting principles
generally accepted in the United States. 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 auditing standards generally
accepted in the United States, 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.
PricewaterhouseCoopers LLP
New York, New York
February 10, 2000
F-15
<PAGE> 87
MONY LIFE INSURANCE COMPANY OF AMERICA
BALANCE SHEETS
DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
-------- --------
($ IN MILLIONS)
<S> <C> <C>
ASSETS
INVESTMENTS:
Fixed maturity securities available-for-sale, at fair
value..................................................... $1,048.8 $1,044.2
Mortgage loans on real estate (Note 8)...................... 165.0 120.1
Policy loans................................................ 58.8 52.1
Real estate (Note 8)........................................ 6.9 8.3
Other invested assets....................................... 2.3 4.7
-------- --------
1,281.8 1,229.4
Cash and cash equivalents................................... 28.9 133.4
Accrued investment income................................... 20.4 19.5
Amounts due from reinsurers................................. 18.6 24.4
Deferred policy acquisition costs........................... 406.4 318.6
Other assets................................................ 24.9 15.3
Separate account assets..................................... 4,387.2 4,148.8
-------- --------
Total assets.............................................. $6,168.2 $5,889.4
======== ========
LIABILITIES AND SHAREHOLDER'S EQUITY
Future policy benefits...................................... $ 123.4 $ 112.0
Policyholders' account balances............................. 1,154.1 1,187.1
Other policyholders' liabilities............................ 54.0 56.9
Accounts payable and other liabilities...................... 79.5 67.9
Note payable to affiliate................................... 49.0 0.0
Current federal income taxes payable........................ (2.3) 13.2
Deferred federal income taxes (Note 5)...................... 19.4 13.7
Separate account liabilities................................ 4,387.2 4,148.8
-------- --------
Total liabilities......................................... 5,864.3 5,599.6
Commitments and contingencies (Notes 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.................................... 199.7 189.7
Retained earnings........................................... 109.0 89.6
Accumulated other comprehensive income/(loss)............... (7.3) 8.0
-------- --------
Total shareholder's equity................................ 303.9 289.8
-------- --------
Total liabilities and shareholder's equity................ $6,168.2 $5,889.4
======== ========
</TABLE>
See accompanying notes to financial statements.
F-16
<PAGE> 88
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
REVENUES:
Universal life and investment-type product policy fees...... $143.1 $122.0 $100.8
Premiums.................................................... 9.2 1.7 0.1
Net investment income (Note 6).............................. 94.7 94.6 99.1
Net realized gains (losses) on investments (Note 6)......... (0.3) 7.1 2.7
Other income................................................ 7.6 7.6 5.5
------ ------ ------
254.3 233.0 208.2
------ ------ ------
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 43.6 34.9 30.6
Interest credited to policyholders' account balances........ 63.5 65.1 72.5
Amortization of deferred policy acquisition costs........... 43.5 35.5 46.3
Other operating costs and expenses.......................... 73.8 75.6 46.0
------ ------ ------
224.4 211.1 195.4
------ ------ ------
Income before income taxes.................................. 29.9 21.9 12.8
Income tax expense.......................................... 10.5 7.7 4.5
------ ------ ------
Net income.................................................. 19.4 14.2 8.3
Other comprehensive income/(loss), net (Note 6)............. (15.3) 1.1 3.3
------ ------ ------
Comprehensive income........................................ $ 4.1 $ 15.3 $ 11.6
====== ====== ======
</TABLE>
See accompanying notes to financial statements.
F-17
<PAGE> 89
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<TABLE>
<CAPTION>
ACCUMULATED TOTAL
CAPITAL OTHER SHARE-
COMMON IN EXCESS RETAINED COMPREHENSIVE HOLDER'S
STOCK OF PAR EARNINGS INCOME/(LOSS) EQUITY
------ --------- -------- ------------- --------
<S> <C> <C> <C> <C> <C>
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 gains on investments,
net of unrealized losses,
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
Capital contribution................... 10.0 10.0
Comprehensive income:
Net income........................... 19.4 19.4
Other comprehensive income:
Unrealized losses on investments,
net of unrealized gains,
reclassification adjustments,
and taxes (Note 6).............. (15.3) (15.3)
---- ------ ------ ------ ------
Comprehensive income/(loss)............ (15.3)
------
Balance, December 31, 1999............. $2.5 $199.7 $109.0 $ (7.3) $303.9
==== ====== ====== ====== ======
</TABLE>
See accompanying notes to financial statements.
F-18
<PAGE> 90
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
------- ------- -------
($ IN MILLIONS)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES (SEE NOTE 2):
Net income.................................................. $ 19.4 $ 14.2 $ 8.3
Adjustments to reconcile net income to net cash (used in)
operating activities:
Interest credited to policyholders' account balances...... 65.5 64.1 71.5
Universal life and investment-type product policy fee
income................................................. (102.9) (107.0) (98.1)
Capitalization of deferred policy acquisition costs....... (96.8) (74.9) (73.8)
Amortization of deferred policy acquisition costs......... 43.5 35.5 46.3
Provision for depreciation and amortization............... 0.2 1.0 0.4
Provision for deferred federal income taxes............... 13.9 (1.1) (13.4)
Net realized gains on investments......................... 0.3 (7.1) (2.7)
Change in other assets and accounts payable and other
liabilities............................................ 6.3 45.3 29.6
Change in future policy benefits.......................... 4.4 5.9 0.2
Change in other policyholders' liabilities................ (2.8) 15.7 5.0
Change in current federal income taxes payable............ (15.6) (4.6) (11.2)
------- ------- -------
Net cash (used in) operating activities..................... (64.6) (13.0) (37.9)
------- ------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales, maturities or repayments of:
Fixed maturities.......................................... 289.6 171.4 130.6
Equity securities......................................... 0.0 0.8 1.0
Mortgage loans on real estate............................. 24.5 37.6 37.7
Real estate............................................... 1.2 17.0 18.6
Other invested assets..................................... 3.9 0.6 1.5
Acquisitions of investments:
Fixed maturities.......................................... (352.3) (109.2) (157.6)
Equity securities......................................... (0.2) (0.1) (0.1)
Mortgage loans on real estate............................. (69.7) (24.3) (13.6)
Real estate............................................... (0.7) (0.6) (1.5)
Other invested assets..................................... (0.5) (0.3) (0.1)
Policy loans, net......................................... (6.6) (6.2) (4.4)
Other, net................................................ 0.5 (0.5) 0.3
------- ------- -------
Net cash (used in)/provided by investing activities......... $(110.3) $ 86.2 $ 12.4
------- ------- -------
</TABLE>
See accompanying notes to financial statements.
F-19
<PAGE> 91
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CASH FLOWS -- (CONTINUED)
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
--------- ------- -------
($ IN MILLIONS)
<S> <C> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Note payable to affiliate.............................. $ 50.5 $ 0.0 $ 0.0
Repayments of note to affiliate........................ (1.5) 0.0 0.0
Receipts from annuity and universal life policies
credited to policyholders' account balances.......... 1,395.4 811.8 810.4
Return of policyholders' account balances on annuity
policies and universal life policies................. (1,384.0) (797.6) (829.1)
Capital contribution................................... 10.0 0.0 0.0
--------- ------- -------
Net cash provided by/(used in) financing activities......... 70.4 14.2 (18.7)
--------- ------- -------
Net increase/(decrease) in cash and cash equivalents........ (104.5) 87.4 (44.2)
Cash and cash equivalents, beginning of year................ 133.4 46.0 90.2
--------- ------- -------
Cash and cash equivalents, end of year...................... $ 28.9 $ 133.4 $ 46.0
========= ======= =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes................................................ $ 12.1 $ 13.4 $ 29.1
Interest.................................................... $ 2.5 $ -- $ --
</TABLE>
See accompanying notes to financial statements.
F-20
<PAGE> 92
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"), formerly The Mutual Life Insurance Company of
New York, which converted from a mutual life insurance company to a stock life
insurance company (the "Demutualization"). 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"). 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 Statement of Financial Accounting
Standards ("SFAS") No. 130, Reporting Comprehensive Income, which was issued by
the Financial Accounting Standards Board ("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
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
F-21
<PAGE> 93
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
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, is
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.
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 discount rate. The discount rate for all products is 8%. 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) in proportion to premium
revenue recognized.
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
F-22
<PAGE> 94
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
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
5.8%, 5.7%, and 5.8% for the years ended December 31, 1999, 1998, and 1997,
respectively. The weighted average interest crediting rate for investment-type
products was approximately 5.4%, 5.5% and 5.7% for each of the years ended
December 31, 1999, 1998, and 1997, 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.
In determining whether a reinsurance contract qualifies for reinsurance
accounting, SFAS No. 113 "Accounting and Reporting for Reinsurance of
Short-Duration and Long-Duration Contracts" requires that there be a "reasonable
possibility" that the reinsurer may realize a "significant loss" from assuming
insurance risk under the contract. In making this assessment, the Company
projects the results of the policies reinsured under the contract under various
scenarios and assesses the probability of such results actually occurring. The
projected results represent the present value of all the cash flows under the
reinsurance contract. The Company generally defines a "reasonable possibility"
as having a probability of at least 10%. In assessing whether the projected
results of the reinsured business constitute a "significant loss", the Company
considers: (i) the ratio of the aggregate projected loss, discounted at an
appropriate rate of interest (the "aggregate projected loss"), to an estimate of
the reinsurer's investment in the contract, as hereafter defined, and (ii) the
ratio of the aggregate projected loss to an estimate of the total premiums to be
received by the reinsurer under the contract discounted at an appropriate rate
of interest.
F-23
<PAGE> 95
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
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 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, 1999, 1998, and 1997, respectively, real
estate of $0.0 million, $0.5 million, and $0.0 million was acquired in
satisfaction of debt. At December 31, 1999 and 1998, the Company owned real
estate acquired in satisfaction of debt of $6.9 million and $8.0 million,
respectively.
New Accounting Pronouncements
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, as amended by SFAS 137, is
effective for all fiscal quarters of the fiscal years beginning after June 15,
2000. SFAS 137 delayed the effective date of SFAS 133 by one year. 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 a guarantee outstanding to one state that the statutory
surplus of the Company will be maintained at amounts at least equal to the
minimum surplus for admission to that states.
At December 31, 1999 and 1998, approximately 11% and 23% 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,
1999 and 1998.
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% 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 $0.0 million, $0.1 million and $0.1 million
for the years ending December 31, 1999, 1998 and 1997.
F-24
<PAGE> 96
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
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, 1999, 1998, and 1997, the Company incurred expenses
of $51.0 million, $59.8 million and $30.5 million as a result of such
allocations. Accordingly, the Company recorded capital contributions from MONY
Life of $10.0 million, $12.5 million, and $10.8 million during 1999, 1998 and
1997 respectively. At December 31, 1999 and 1998 the Company had a payable to
MONY Life in connection with this service agreement of $10.3 million and $9.0
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 $0.8 million, $0.9 million
and $1.0 million for 1999, 1998 and 1997, respectively. In addition, the Company
recorded an intercompany payable of $66,816 and $88,401 at December 31, 1999 and
1998, 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 $4.0 million, $2.0 million and $2.6 million for 1999, 1998 and
1997, respectively. In addition, the Company recorded an intercompany
(receivable)/payable of $0.2 million and $(0.2) million at December 31, 1999 and
1998, respectively, related to these agreements.
The Company has purchased bonds issued by the New York City Industrial
Development Agency for the benefit of MONY Life for its consolidation of site
locations to New York City in 1997, and subsequent spending on tenant
improvements, and furniture, fixtures, and equipment related to the New York
City site. Debt service under the bonds is funded by lease payments by MONY Life
to the bond trustee for the benefit of the fond holder (the Company). The bonds
are held by the Company and are listed as affiliated bonds. The carrying value
of these bonds is $10.9 million and $14.7 million as of December 31, 1999, and
December 31, 1998, respectively. The bonds outstanding as of December 31, 1999
mature on December 31, 2013, and have interest rates from 6.40% to 7.25%.
The Company entered into a modified coinsurance agreement with U.S.
Financial Life Insurance Company ("USFL"), an affiliate, effective January 1,
1999, whereby the Company agrees to reinsure 90% of all level term life
insurance policies written by USFL after January 1, 1999. Under the agreement,
the Company will share in all premiums and benefits for such policies based on
the 90% quota share percentage, after consideration of existing reinsurance
agreements previously in force on this business. In addition, the Company will
reimburse USFL for its quota share of expense allowances, as defined in the
agreement. At December 31, 1999, the Company recorded a payable of $7.8 million
to USFL in connection with this agreement which is included in Accounts Payable
and Other Liabilities in the balance sheet.
On March 5, 1999, the Company borrowed $50.5 million from MONY Benefits
Management Corp. ("MBMC"), an affiliate, in exchange for a note payable in the
same amount. The note bears interest at 6.75% per annum and matures on March 5,
2014. Principal and interest are payable quarterly to MBMC. The carrying value
of the note as of December 31, 1999 is $49.0 million.
F-25
<PAGE> 97
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
4. DEFERRED POLICY ACQUISITION COSTS:
Policy acquisition costs deferred and amortized in 1999, 1998 and 1997 are
as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year.................................. $318.6 $281.6 $262.3
Cost deferred during the year............................... 96.8 75.0 73.8
Amortized to expense during the year........................ (43.5) (35.5) (46.3)
Effect on DAC from unrealized gains (losses) (see Note 2)... 34.5 (2.5) (8.2)
------ ------ ------
Balance, end of year........................................ $406.4 $318.6 $281.6
====== ====== ======
</TABLE>
5. FEDERAL INCOME TAXES:
The Company files a consolidated federal income tax return with MONY Life
and MONY Life's other subsidiaries. Federal income taxes have been calculated in
accordance with the provisions of the Internal Revenue Code of 1986, as amended.
A summary of the Federal income tax expense (benefit) is presented below:
<TABLE>
<CAPTION>
1999 1998 1997
----- ----- ------
($ IN MILLIONS)
<S> <C> <C> <C>
Federal income tax expense (benefit):
Current................................................... $(3.4) $ 8.8 $ 17.9
Deferred.................................................. 13.9 (1.1) (13.4)
----- ----- ------
Total.................................................. $10.5 $ 7.7 $ 4.5
===== ===== ======
</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:
<TABLE>
<CAPTION>
1999 1998 1997
----- ----- -----
($ IN MILLIONS)
<S> <C> <C> <C>
Tax at statutory rate....................................... $10.5 $ 7.7 $ 4.5
Dividends received deduction................................ (1.1) (1.1) (1.2)
Other....................................................... 1.1 1.1 1.2
----- ----- -----
Provision for income taxes.................................. $10.5 $ 7.7 $ 4.5
===== ===== =====
</TABLE>
The Company's federal income tax returns for years through 1993 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.
F-26
<PAGE> 98
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
The components of deferred tax liabilities and assets at December 31, 1999
and 1998 are as follows:
<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
Deferred policy acquisition costs........................... $117.0 $ 91.8
Fixed maturities............................................ 0.0 12.0
Other, net.................................................. 7.8 4.4
------ ------
Total deferred tax liabilities.............................. 124.8 108.2
------ ------
Policyholder and separate account liabilities............... 96.5 93.7
Real estate and mortgages................................... 0.7 0.8
Fixed maturities............................................ 8.2 0.0
------ ------
Total deferred tax assets................................... 105.4 94.5
------ ------
Net deferred tax asset/(liability).......................... $(19.4) $(13.7)
====== ======
</TABLE>
The Company is required to establish a valuation allowance for any portion
of the deferred tax asset that management believes will not be realized. In the
opinion of management, it is more likely than not that it will realize the
benefit of the deferred tax assets and, therefore, no such valuation allowance
has been established.
6. INVESTMENT INCOME, REALIZED AND UNREALIZED INVESTMENT GAINS (LOSSES), AND
OTHER COMPREHENSIVE INCOME:
Net investment income for the years ended December 31, 1999, 1998 and 1997
was derived from the following sources:
<TABLE>
<CAPTION>
1999 1998 1997
----- ----- ------
($ IN MILLIONS)
<S> <C> <C> <C>
NET INVESTMENT INCOME
Fixed maturities............................................ $77.0 $77.2 $ 78.4
Mortgage loans.............................................. 11.6 11.0 12.1
Real estate................................................. 0.5 0.5 2.0
Policy loans................................................ 3.8 3.6 3.5
Other investments (including cash & cash equivalents)....... 6.6 5.3 6.4
----- ----- ------
Total investment income..................................... 99.5 97.6 102.4
Investment expenses......................................... 4.8 3.0 3.3
----- ----- ------
Net investment income....................................... $94.7 $94.6 $ 99.1
===== ===== ======
</TABLE>
Net realized gains (losses) on investments for the years ended December 31,
1999, 1998 and 1997 are summarized as follows:
<TABLE>
<CAPTION>
1999 1998 1997
----- ---- -----
($ IN MILLIONS)
<S> <C> <C> <C>
NET REALIZED GAINS (LOSSES) ON INVESTMENTS
Fixed maturities............................................ $(0.2) $2.6 $(0.7)
Mortgage loans.............................................. (0.3) 1.4 2.4
Real estate................................................. (0.5) 2.5 0.5
Other invested assets....................................... 0.7 0.6 0.5
----- ---- -----
Net realized gains/(losses) on investments.................. $(0.3) $7.1 $ 2.7
===== ==== =====
</TABLE>
F-27
<PAGE> 99
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
The net change in unrealized investment gains (losses) represents the only
component of other comprehensive income for the years ended December 31, 1999,
1998, and 1997. 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:
<TABLE>
<CAPTION>
1999 1998 1997
------ ----- -----
($ IN MILLIONS)
<S> <C> <C> <C>
CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS, NET
Fixed maturities............................................ $(58.0) $ 4.8 $13.2
Other....................................................... 0.0 (0.6) 0.1
------ ----- -----
Subtotal.................................................... (58.0) 4.2 13.3
Effect on unrealized gains (losses) on investments
attributable to:
DAC....................................................... 34.5 (2.5) (8.2)
Deferred federal income taxes............................. 8.2 (0.6) (1.8)
------ ----- -----
Change in unrealized gains (losses) on investments, net..... $(15.3) $ 1.1 $ 3.3
====== ===== =====
</TABLE>
The following table sets forth the reclassification adjustments required
for the years ended December 31, 1999, 1998, and 1997 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:
<TABLE>
<CAPTION>
1999 1998 1997
------ ----- ----
($ IN MILLIONS)
<S> <C> <C> <C>
RECLASSIFICATION ADJUSTMENTS
Unrealized gains (losses) on investments arising during
period.................................................... $(15.4) $ 1.9 $3.3
Reclassification adjustment for gains included in net
income.................................................... 0.1 (0.8) 0.0
------ ----- ----
Unrealized gains (losses) on investments, net of
reclassification adjustments.............................. $(15.3) $ 1.1 $3.3
====== ===== ====
</TABLE>
Unrealized gains (losses) on investments arising during the period reported
in the above table for the years ended December 31, 1999, 1998 and 1997 are net
of income tax expense (benefit) of $(8.2) million, $0.1 million, and $1.8
million, respectively, and $34.3 million, $(0.5) million, and $(8.2) 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, 1999, 1998 and 1997 are net of income tax expense (benefit)
of $0.0 million, $0.5 million and $0.0 million, respectively, and $0.2 million,
$(2.0) million and $0.0 million, respectively, relating to the effect of such
amounts on DAC.
F-28
<PAGE> 100
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
7. INVESTMENTS:
Fixed Maturity Securities Available-for-Sale:
The amortized cost, gross unrealized gains and losses, and estimated fair
value of fixed maturity securities available-for-sale as of December 31, 1999
and December 31, 1998 are as follows:
<TABLE>
<CAPTION>
GROSS GROSS
UNREALIZED UNREALIZED ESTIMATED
AMORTIZED COST GAINS LOSSES FAIR VALUE
-------------------- ------------- ------------- ----------------------
1999 1998 1999 1998 1999 1998 1999 1998
-------- -------- ---- ----- ----- ---- -------- ----------
($ IN MILLIONS)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
US Treasury securities and
obligations of US
government agencies...... $ 26.6 $ 5.3 $0.0 $ 0.0 $ 1.1 $0.0 $ 25.5 $ 5.3
Collateralized mortgage
obligations:
Government
agency-backed.......... 82.4 106.3 0.3 1.9 0.4 0.0 82.3 108.2
Non-agency backed........ 34.4 37.7 0.6 1.8 0.3 0.0 34.7 39.5
Other asset-backed
securities:
Government
agency-backed.......... 0.1 0.1 0.0 0.0 0.0 0.0 0.1 0.1
Non-agency backed........ 104.6 83.4 0.2 1.9 4.4 0.3 100.4 85.0
Utilities.................. 113.2 101.9 0.2 3.4 3.4 2.7 110.0 102.6
Corporate bonds............ 704.2 664.8 2.7 24.8 22.0 0.8 684.9 688.8
Affiliates................. 11.3 14.7 0.0 0.0 0.4 0.0 10.9 14.7
-------- -------- ---- ----- ----- ---- -------- --------
Total............. $1,076.8 $1,014.2 $4.0 $33.8 $32.0 $3.8 $1,048.8 $1,044.2
======== ======== ==== ===== ===== ==== ======== ========
</TABLE>
The carrying value of the Company's fixed maturity securities at December
31, 1999 and 1998 is net of adjustments for impairments in value deemed to be
other than temporary of $0.5 million and $0.5 million, respectively.
At December 31, 1999 and 1998, 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
fixed maturity securities." At December 31, 1999 and 1998, the carrying value of
problem fixed maturities held by the Company was $4.8 million and $4.4 million,
respectively. In addition, at December 31, 1999 and 1998, the Company held $0.0
million and $2.7 million of fixed maturity securities which had been
restructured. Gross interest income that would have been recorded in accordance
with the original terms of restructured fixed maturity securities amounted to
$0.0 million and $0.3 million for the year ended December 31, 1999 and 1998.
Gross interest income on these fixed maturity securities included in net
investment income aggregated $0.0 million and $0.5 million for the year ended
December 31, 1999 and 1998.
F-29
<PAGE> 101
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
The amortized cost and estimated fair value of fixed maturity securities,
by contractual maturity dates, (excluding scheduled sinking funds) as of
December 31, 1999 are as follows:
<TABLE>
<CAPTION>
1999
-----------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
--------- ----------
($ IN MILLIONS)
<S> <C> <C>
Due in one year or less..................................... $ 75.8 $ 76.2
Due after one year through five years....................... 275.8 274.9
Due after five years through ten years...................... 383.8 366.5
Due after ten years......................................... 119.9 113.7
-------- --------
Subtotal.......................................... 855.3 831.3
Mortgage-backed and other asset-backed securities........... 221.5 217.5
-------- --------
Total............................................. $1,076.8 $1,048.8
======== ========
</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 1999, 1998 and 1997
were $80.1 million, $45.1 million and $31.3 million, respectively. Gross gains
of $0.2 million, $0.7 million, and $0.5 million and gross losses of $2.0
million, $0.1 million, and $1.1 million were realized on these sales,
respectively.
8. MORTGAGE LOANS ON REAL ESTATE AND REAL ESTATE
Mortgage loans on real estate at December 31, 1999 and 1998 consist of the
following:
<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
Commercial mortgage loans................................... $ 53.9 $ 28.5
Agricultural and other loans................................ 113.4 93.5
------ ------
Total loans................................................. 167.3 122.0
Less: valuation allowances.................................. (2.3) (1.9)
------ ------
Mortgage loans, net of valuation allowances................. $165.0 $120.1
====== ======
</TABLE>
An analysis of the valuation allowances for 1999, 1998 and 1997 is as
follows:
<TABLE>
<CAPTION>
1999 1998 1997
---- ----- -----
($ IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year.................................. $1.9 $ 2.5 $ 4.6
Increase (decrease) in allowance............................ 0.4 (0.4) (0.3)
Reduction due to pay downs and pay offs..................... 0.0 0.0 (1.8)
Transfers to real estate.................................... 0.0 (0.2) 0.0
---- ----- -----
Balance, end of year........................................ $2.3 $ 1.9 $ 2.5
==== ===== =====
</TABLE>
F-30
<PAGE> 102
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
Impaired mortgage loans along with related valuation allowances were as
follows:
<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
Investment in impaired mortgage loans (before valuation
allowances):
Loans that have valuation allowances...................... $ 9.6 $ 9.4
Loans that do not have valuation allowances............... 4.3 5.8
----- -----
Subtotal............................................... 13.9 15.2
Valuation allowances........................................ (0.5) (0.5)
----- -----
Impaired mortgage loans, net of valuation allowances... $13.4 $14.7
===== =====
</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 1999 and 1998, the average recorded investment in impaired mortgage
loans was approximately $14.1 million and $15.1 million, respectively. During
1999, 1998, and 1997, the Company recognized $1.0 million, $1.1 million, and
$1.1 million, respectively, of interest income on impaired loans.
At December 31, 1999 and 1998, there were no mortgage loans which were
non-income producing for the twelve months preceding such dates.
At December 31, 1999 and 1998, the Company had restructured mortgage loans
of $11.9 million and $14.3 million, respectively. Interest income of $1.0
million, $1.0 million, and $1.0 million was recognized on restructured mortgage
loans in 1999, 1998, and 1997, respectively. Gross interest income on these
loans that would have been recorded in accordance with the original terms of
such loans amounted to approximately $1.2 million in 1999, 1998 and 1997.
The carrying value of real estate is $6.9 million and $8.3 million as of
December 31, 1999 and 1998, respectively. Real estate is categorized are either
real estate to be disposed of or real estate held for investment.
The carrying value of real estate to be disposed of as of December 31, 1999
was $1.6 million, net of $0.5 million relating to impairments taken upon
foreclosure of mortgage loans and $0.2 million of accumulated depreciation.
There was no real estate to be disposed of as of December 31, 1998.
The carrying value of real estate held for investment as of December 31,
1999 was $5.3 million, net of $0.7 million relating to impairments taken upon
foreclosure of mortgage loans and $1.9 million of accumulated depreciation. The
carrying value of real estate held for investment as of December 31, 1998 was
$8.3 million, net of $1.6 million relating to impairments taken upon foreclosure
of mortgage loans and $1.9 million of accumulated depreciation.
At December 31, 1999 and 1998, 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, 1999 and 1998
was $4.4 million and $8.3 million, respectively. The depreciated cost of such
real estate as of December 31, 1999 and 1998 was $5.8 million and $10.2 million
before impairment writedowns of $1.4 million and $1.9 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
1999, 1998, and 1997 related to impaired real estate.
F-31
<PAGE> 103
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
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.
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
$0.5 million for last survivor products.
F-32
<PAGE> 104
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
The following table summarizes the effect of reinsurance for the years
indicated:
<TABLE>
<CAPTION>
1999 1998 1997
----- ----- -----
($ IN MILLIONS)
<S> <C> <C> <C>
Direct premiums............................................. $ 7.1 $ 2.5 $ 0.1
Reinsurance assumed......................................... 4.0 0.0 0.0
Reinsurance ceded........................................... (1.9) (0.8) 0.0
----- ----- -----
Net premiums.............................................. $ 9.2 $ 1.7 $ 0.1
===== ===== =====
Universal life and investment type product policy fee income
ceded..................................................... $19.7 $17.4 $16.1
===== ===== =====
Policyholders' benefits ceded............................... $27.8 $21.8 $12.1
===== ===== =====
Policyholders' benefits assumed............................. $ 0.1 $ 0.0 $ 0.0
===== ===== =====
</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.
Effective September 1, 1999, the Company recaptured its reinsurance
agreements with MONY Life for all in force and new business. The Company
simultaneously entered into new reinsurance agreements with third party
reinsurers which reinsured the same block of business as that previously
reinsured by MONY Life. Under the new reinsurance agreements, the Company
increased its retention limits on new business for any one person for individual
products from $0.5 million to $4.0 million and on last survivor products from
$0.5 million to $6.0 million.
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, 1999 and 1998, securities loaned by the Company under
this agreement had a carrying value of approximately $18.0 million and $4.1
million, respectively. The minimum collateral on securities loaned is 102% 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, 1999 and 1998, the Company had no single investment or
series of investments with a single issuer, (excluding US Treasury securities
and obligations of US government agencies) exceeding 1.7% 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, 1999 are Consumer Goods and Services of
$173.0 million (16.5%), Energy of $137.9 million (13.2%), Non-Government Asset/
Mortgage-Backed of $135.1 million (12.9%), Public Utilities of $110.0 million
(10.5%) and Government and Agencies of $107.9 million (10.3%).
At December 31, 1998 the industries that comprise 10% or more of the
carrying value Company's fixed maturity securities were Consumer Goods and
Services of $138.5 million (13.3%), Non-Government Asset/ Mortgage Backed of
$124.5 million (11.9%), Financial Services of $119.8 million (11.5%), Other
Manufacturing $116.4 million (11.1%), Government and Agencies $113.6 million
(10.9%) and Energy $112.1 (10.7%).
F-33
<PAGE> 105
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
The Company holds below investment grade fixed maturity securities with a
carrying value of $55.0 million at December 31, 1999. 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, 1998, the carrying
value of the Company's investments in below investment grade fixed maturity
securities amounted to $52.3 million.
The Company has investments in commercial and agricultural mortgage loans
and real estate. The locations of property collateralizing mortgage loans and
real estate investment carrying values at December 31, 1999 and 1998 are as
follows ($ in millions):
<TABLE>
<CAPTION>
1999 1998
---------------- ---------------
<S> <C> <C> <C> <C>
GEOGRAPHIC REGION
West...................................................... $ 58.9 34.3% $ 54.9 42.7%
Southeast................................................. 45.4 26.4 5.9 4.6
Mountain.................................................. 28.4 16.5 25.9 20.2
Southwest................................................. 14.3 8.3 14.6 11.4
Midwest................................................... 14.2 8.3 13.2 10.3
Northeast................................................. 10.7 6.2 13.9 10.8
------ ------ ------ -----
Total................................................... $171.9 100.0% $128.4 100.0%
====== ====== ====== =====
</TABLE>
The states with the largest concentrations of mortgage loans and real
estate investments at December 31, 1999 are: California, $32.8 million (19.1%);
District of Columbia, $28.4 million (16.5%); Washington, $16.0 million (9.3%);
Texas, $11.5 million (6.7%); New York, $10.7 million (6.2%); Oregon, $10.1
million (5.9%); Arizona, $9.1 million (5.3%); Idaho, $8.9 million (5.2%); and
Missouri, $8.5 million (4.9%).
As of December 31, 1999 and 1998, the real estate and mortgage loan
portfolio by property type were as follows ($ in millions):
<TABLE>
<CAPTION>
1999 1998
---------------- ----------------
<S> <C> <C> <C> <C>
PROPERTY TYPE
Agricultural.............................................. $112.2 65.3% $ 92.5 72.0%
Office buildings.......................................... 46.9 27.3 14.9 11.6
Hotel..................................................... 5.3 3.1 5.1 4.0
Industrial................................................ 2.3 1.3 4.6 3.6
Retail.................................................... 2.0 1.2 6.0 4.7
Other..................................................... 1.8 1.0 3.9 3.0
Apartment buildings....................................... 1.4 0.8 1.4 1.1
------ ------ ------ ------
Total................................................... $171.9 100.0% $128.4 100.0%
====== ====== ====== ======
</TABLE>
12. COMMITMENTS AND CONTINGENCIES:
In late 1995 and thereafter a number of purported class actions have been
commenced in various state and federal courts against the Company alleging that
the Company engaged in deceptive sales practices in connection with the sale of
whole and 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 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
F-34
<PAGE> 106
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
from canceling policies for failure to make required premium payments,
imposition of a constructive trust and 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 being voluntarily held in abeyance). The Company has
denied any wrongdoing and has asserted numerous affirmative defenses.
On June 7, 1996, the New York State Supreme Court certified one of those
cases, Goshen v. The Mutual Life Insurance Company of New York and MONY Life
Insurance Company of America, 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 life or universal life insurance policy issued by
the Company 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 judgement on all counts of the
complaint. All of the other putative class actions 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.
On October 21, 1997, the New York State Supreme Court granted the Company's
motion for summary judgement and dismissed all claims filed in the Goshen case
against the Company. On December 20, 1999, the New York State Court of Appeals
affirmed the dismissal of all but one of the claims in the Goshen case (a claim
under New York's General Business Law), which has been remanded back to the New
York State Supreme Court for further proceedings consistent with the opinion.
The Company intends vigorously to defend that litigation. There can be no
assurance that the present or future litigation relating to sales practices will
not have a material adverse effect on the Company.
In addition to the matters discussed above, the Company is involved in
various other legal actions and proceedings in connection with its business. The
claimants in certain of these actions and proceedings seek damages of
unspecified amounts.
While the outcome of such matters cannot be predicted with certainty, in
the opinion of management, any additional liability beyond that recorded in the
financial statements at December 31, 1999, resulting from the resolution of
these matters will not have a material adverse effect on the Company's financial
position or results of operations.
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, 1999, the Company had commitments outstanding of $3.7
million for fixed rate agricultural loans with periodic interest rate reset
dates. The initial interest rates on such agricultural loans range from 7.90% to
8.44%. There were no outstanding commitments for private fixed maturity
securities or commercial mortgages as of December 31, 1999.
13. STATUTORY FINANCIAL INFORMATION AND REGULATORY RISK-BASED CAPITAL:
Statutory net income reported by the Company for the years ended December
31, 1999, 1998, and 1997 was $(18.2) million, $11.1 million, and $9.7 million,
respectively. The combined statutory surplus of the Company as of December 31,
1999 and 1998 was $140.2 million and $146.8 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
F-35
<PAGE> 107
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
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 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 Arizona State Insurance
Department completed an examination of the Company for each of the three years
in the period ended December 31, 1996. The report, which became available March
17, 1998, did not cite any matters which will result in a material effect on the
Company's financial condition or results of operations.
F-36
<PAGE> 108
APPENDIX A
DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
<TABLE>
<CAPTION>
APPLICABLE
ATTAINED AGE OF YOUNGER INSURED 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> 109
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 110
APPENDIX B
MONTHLY PER $1,000 SPECIFIED AMOUNT FACTORS
<TABLE>
<CAPTION>
PREFERRED NONSMOKER PREFERRED SMOKER
--------------------------------------------- ---------------------------------------------
SPECIFIED AMOUNT SPECIFIED AMOUNT
ISSUE AGE --------------------------------------------- ---------------------------------------------
OF YOUNGER 100,000- 500,000- 1 MILLION 100,000- 500,000- 1 MILLION
INSURED 499,999 999,999 AND OVER 499,999 999,999 AND OVER
- ------------ ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
18 0.050 0.050 0.040 0.060 0.050 0.040
- ----------------------------------------------------------------------------------------------------------------
20 0.050 0.050 0.040 0.060 0.050 0.040
25 0.060 0.050 0.040 0.060 0.050 0.050
- ----------------------------------------------------------------------------------------------------------------
30 0.060 0.050 0.050 0.070 0.060 0.050
35 0.070 0.060 0.050 0.070 0.060 0.060
- ----------------------------------------------------------------------------------------------------------------
40 0.060 0.070 0.060 0.060 0.070 0.060
45 0.090 0.080 0.070 0.090 0.090 0.080
- ----------------------------------------------------------------------------------------------------------------
50 0.110 0.100 0.090 0.120 0.110 0.100
55 0.140 0.130 0.110 0.140 0.130 0.120
- ----------------------------------------------------------------------------------------------------------------
60 0.170 0.160 0.140 0.180 0.170 0.150
65 0.220 0.210 0.180 0.230 0.220 0.190
- ----------------------------------------------------------------------------------------------------------------
70 0.270 0.270 0.240 0.270 0.270 0.250
75 0.310 0.300 0.280 0.310 0.300 0.280
- ----------------------------------------------------------------------------------------------------------------
80 0.360 0.350 0.340 0.360 0.350 0.340
85 0.360 0.350 0.340 0.360 0.350 0.340
</TABLE>
<TABLE>
<CAPTION>
STANDARD NONSMOKER STANDARD SMOKER
--------------------------------------------- ---------------------------------------------
SPECIFIED AMOUNT SPECIFIED AMOUNT
ISSUE AGE --------------------------------------------- ---------------------------------------------
OF YOUNGER 100,000- 500,000- 1 MILLION 100,000- 500,000- 1 MILLION
INSURED 499,999 999,999 AND OVER 499,999 999,999 AND OVER
- ------------ ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
18 0.060 0.050 0.040 0.060 0.050 0.040
- ----------------------------------------------------------------------------------------------------------------
20 0.060 0.050 0.040 0.060 0.050 0.040
25 0.060 0.060 0.050 0.060 0.050 0.050
- ----------------------------------------------------------------------------------------------------------------
30 0.070 0.060 0.050 0.070 0.060 0.050
35 0.070 0.060 0.060 0.070 0.060 0.060
- ----------------------------------------------------------------------------------------------------------------
40 0.080 0.070 0.060 0.080 0.070 0.060
45 0.090 0.090 0.080 0.090 0.080 0.080
- ----------------------------------------------------------------------------------------------------------------
50 0.120 0.110 0.100 0.120 0.110 0.100
55 0.140 0.140 0.120 0.150 0.140 0.130
- ----------------------------------------------------------------------------------------------------------------
60 0.180 0.170 0.150 0.190 0.180 0.160
65 0.230 0.220 0.190 0.250 0.240 0.210
- ----------------------------------------------------------------------------------------------------------------
70 0.270 0.270 0.250 0.300 0.290 0.260
75 0.310 0.300 0.280 0.310 0.310 0.300
- ----------------------------------------------------------------------------------------------------------------
80 0.360 0.350 0.340 0.370 0.360 0.350
85 0.360 0.350 0.340 0.370 0.360 0.350
</TABLE>
Factors for interim ages are available upon request.
B-1
<PAGE> 111
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 112
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, Female age 45 Preferred
Nonsmoker, Death Benefit Option 1......................... $112.00
Male age 45 Standard Smoker, Female age 45 Standard Smoker,
Death Benefit Option 1.................................... $162.83
Male age 45 Preferred Nonsmoker, Female age 45 Preferred
Nonsmoker, Death Benefit Option 2......................... $112.00
Male age 35 Preferred Nonsmoker, Female age 35 Preferred
Nonsmoker, Death Benefit Option 1......................... $ 64.60
Male age 55 Preferred Nonsmoker, Female age 55 Preferred
Nonsmoker, Death Benefit Option 1......................... $193.51
</TABLE>
C-1
<PAGE> 113
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 114
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>
DEATH
BENEFIT SPECIFIED SEE
SEX AGE UNDERWRITING CLASS SEX AGE UNDERWRITING CLASS OPTION AMOUNT PAGE
- --- --- ------------------ --- --- ------------------ ------- --------- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Male 45 Preferred Non-smoker Female 45 Preferred Non-smoker 1 $200,000 D-4
Male 45 Standard Smoker Female 45 Standard Smoker 1 $200,000 D-14
Male 45 Preferred Non-smoker Female 45 Preferred Non-smoker 2 $200,000 D-27
Male 35 Preferred Non-smoker Female 35 Preferred Non-smoker 1 $200,000 D-34
Male 55 Preferred Non-smoker Female 55 Preferred Non-smoker 1 $200,000 D-45
</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) 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 and direct expenses 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. There are tables for the Policies listed in the chart above for
death benefit Options 1 or 2 and each option is illustrated using current and
guaranteed policy cost factors. The tables reflect the fact that the Company
does not currently
D-1
<PAGE> 115
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: Younger 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, Full Surrender and Policy
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 ten 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 ten 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 ten 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 ten 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> 116
STANDARD LEDGER STATEMENT -- SUPPLEMENTAL FOOTNOTE PAGE
MONY CUSTOM ESTATE MASTER
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
MONY LIFE INSURANCE COMPANY OF AMERICA
ADDITIONAL INFORMATION
These policies have 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>
DEATH
BENEFIT INITIAL GUIDELINE INITIAL GUIDELINE
SEX AGE UNDERWRITING CLASS SEX AGE UNDERWRITING CLASS OPTION SINGLE PREMIUM ANNUAL PREMIUM
- --- --- ------------------ --- --- ------------------ ------- ----------------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Male 45 Preferred Non-smoker Female 45 Preferred Non-smoker 1 $28,330.66 $2,420.01
Male 45 Standard Smoker Female 45 Standard Smoker 1 $33,905.16 $2,881.48
Male 45 Preferred Non-smoker Female 45 Preferred Non-smoker 2 $28,330.66 $9,458.29
Male 35 Preferred Non-smoker Female 35 Preferred Non-smoker 1 $17,379.05 $1,518.57
Male 55 Preferred Non-smoker Female 55 Preferred Non-smoker 1 $46,771.69 $4,057.53
</TABLE>
Values shown on these illustrations are based on a Specified Amount of
$200,000 and 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 6% of
each premium dollar paid up to the Target Premium, in years 1-10, 3% of
premium paid in excess of Target Premium in years 1-10, and 3% of all
premiums after the tenth Policy year.
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> 117
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 1,323 0 876 200,000 0 876 200,000 0 876 200,000
5 1,323 3,428 4,221 200,000 3,428 4,221 200,000 3,479 4,272 200,000
10 1,323 7,817 7,949 200,000 7,817 7,949 200,000 8,101 8,233 200,000
20 1,323 14,448 14,448 200,000 14,448 14,448 200,000 16,065 16,065 200,000
@ Age 70 1,323 12,911 12,911 200,000 12,911 12,911 200,000 17,458 17,458 200,000
@ 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 31 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 0.00%.
*** Policy lapses in policy year 37 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
------------------------------------------------------ -------------------------
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>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-4
<PAGE> 118
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,323 1,389 0 876 200,000 0 876 200,000 0 876 200,000
2 1,323 2,847 546 1,736 200,000 546 1,736 200,000 552 1,742 200,000
3 1,323 4,379 1,523 2,581 200,000 1,523 2,581 200,000 1,539 2,597 200,000
4 1,323 5,986 2,484 3,410 200,000 2,484 3,410 200,000 2,514 3,440 200,000
5 1,323 7,675 3,428 4,221 200,000 3,428 4,221 200,000 3,479 4,272 200,000
6 1,323 9,447 4,352 5,014 200,000 4,352 5,014 200,000 4,431 5,092 200,000
7 1,323 11,309 5,256 5,785 200,000 5,256 5,785 200,000 5,370 5,899 200,000
8 1,323 13,263 6,137 6,534 200,000 6,137 6,534 200,000 6,296 6,693 200,000
9 1,323 15,315 6,992 7,256 200,000 6,992 7,256 200,000 7,206 7,471 200,000
10 1,323 17,470 7,817 7,949 200,000 7,817 7,949 200,000 8,101 8,233 200,000
11 1,323 19,732 8,863 8,863 200,000 8,863 8,863 200,000 9,229 9,229 200,000
12 1,323 22,108 9,737 9,737 200,000 9,737 9,737 200,000 10,200 10,200 200,000
13 1,323 24,602 10,566 10,566 200,000 10,566 10,566 200,000 11,141 11,141 200,000
14 1,323 27,221 11,347 11,347 200,000 11,347 11,347 200,000 12,035 12,035 200,000
15 1,323 29,971 12,072 12,072 200,000 12,072 12,072 200,000 12,867 12,867 200,000
16 1,323 32,858 12,732 12,732 200,000 12,732 12,732 200,000 13,642 13,642 200,000
17 1,323 35,890 13,317 13,317 200,000 13,317 13,317 200,000 14,353 14,353 200,000
18 1,323 39,074 13,811 13,811 200,000 13,811 13,811 200,000 14,991 14,991 200,000
19 1,323 42,416 14,195 14,195 200,000 14,195 14,195 200,000 15,555 15,555 200,000
20 1,323 45,926 14,448 14,448 200,000 14,448 14,448 200,000 16,065 16,065 200,000
21 1,323 49,611 14,549 14,549 200,000 14,549 14,549 200,000 16,527 16,527 200,000
22 1,323 53,481 14,473 14,473 200,000 14,473 14,473 200,000 16,906 16,906 200,000
23 1,323 57,544 14,196 14,196 200,000 14,196 14,196 200,000 17,186 17,186 200,000
24 1,323 61,810 13,689 13,689 200,000 13,689 13,689 200,000 17,371 17,371 200,000
25 1,323 66,289 12,911 12,911 200,000 12,911 12,911 200,000 17,458 17,458 200,000
</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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-5
<PAGE> 119
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 1,323 70,992 11,807 11,807 200,000 11,807 11,807 200,000 17,425 17,425 200,000
27 1,323 75,931 10,303 10,303 200,000 10,303 10,303 200,000 17,257 17,257 200,000
28 1,323 81,116 8,300 8,300 200,000 8,300 8,300 200,000 16,930 16,930 200,000
29 1,323 86,561 5,674 5,674 200,000 5,674 5,674 200,000 16,381 16,381 200,000
30 1,323 92,278 2,288 2,288 200,000 2,288 2,288 200,000 15,569 15,569 200,000
31 1,323 98,281 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 14,436 14,436 200,000
32 1,323 104,584 12,919 12,919 200,000
33 1,323 111,202 10,938 10,938 200,000
34 1,323 118,151 8,397 8,397 200,000
35 1,323 125,448 5,182 5,182 200,000
36 1,323 133,109 1,154 1,154 200,000
37 1,323 141,153 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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-6
<PAGE> 120
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 1,323 0 876 200,000 0 938 200,000 0 938 200,000
5 1,323 3,428 4,221 200,000 4,305 5,099 200,000 4,361 5,155 200,000
10 1,323 7,817 7,949 200,000 11,137 11,270 200,000 11,472 11,604 200,000
20 1,323 14,448 14,448 200,000 29,129 29,129 200,000 31,345 31,345 200,000
@ Age 70 1,323 12,911 12,911 200,000 37,182 37,182 200,000 43,076 43,076 200,000
@ Age 85 1,323 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 59,917 59,917 200,000
@ Age 90 1,323 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 7,383 7,383 200,000
</TABLE>
* Policy lapses in policy year 31 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 37 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
\
------------------------------------------------------ -------------------------
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 Applicant or Policyowner Date
</TABLE>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-7
<PAGE> 121
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,323 1,389 0 876 200,000 0 938 200,000 0 938 200,000
2 1,323 2,847 546 1,736 200,000 724 1,915 200,000 730 1,920 200,000
3 1,323 4,379 1,523 2,581 200,000 1,875 2,933 200,000 1,891 2,950 200,000
4 1,323 5,986 2,484 3,410 200,000 3,068 3,994 200,000 3,101 4,027 200,000
5 1,323 7,675 3,428 4,221 200,000 4,305 5,099 200,000 4,361 5,155 200,000
6 1,323 9,447 4,352 5,014 200,000 5,585 6,247 200,000 5,673 6,334 200,000
7 1,323 11,309 5,256 5,785 200,000 6,910 7,439 200,000 7,039 7,568 200,000
8 1,323 13,263 6,137 6,534 200,000 8,277 8,674 200,000 8,459 8,856 200,000
9 1,323 15,315 6,992 7,256 200,000 9,687 9,951 200,000 9,937 10,201 200,000
10 1,323 17,470 7,817 7,949 200,000 11,137 11,270 200,000 11,472 11,604 200,000
11 1,323 19,732 8,863 8,863 200,000 12,890 12,890 200,000 13,328 13,328 200,000
12 1,323 22,108 9,737 9,737 200,000 14,560 14,560 200,000 15,121 15,121 200,000
13 1,323 24,602 10,566 10,566 200,000 16,277 16,277 200,000 16,983 16,983 200,000
14 1,323 27,221 11,347 11,347 200,000 18,040 18,040 200,000 18,899 18,899 200,000
15 1,323 29,971 12,072 12,072 200,000 19,843 19,843 200,000 20,859 20,859 200,000
16 1,323 32,858 12,732 12,732 200,000 21,680 21,680 200,000 22,867 22,867 200,000
17 1,323 35,890 13,317 13,317 200,000 23,542 23,542 200,000 24,921 24,921 200,000
18 1,323 39,074 13,811 13,811 200,000 25,416 25,416 200,000 27,014 27,014 200,000
19 1,323 42,416 14,195 14,195 200,000 27,285 27,285 200,000 29,148 29,148 200,000
20 1,323 45,926 14,448 14,448 200,000 29,129 29,129 200,000 31,345 31,345 200,000
21 1,323 49,611 14,549 14,549 200,000 30,929 30,929 200,000 33,613 33,613 200,000
22 1,323 53,481 14,473 14,473 200,000 32,660 32,660 200,000 35,925 35,925 200,000
23 1,323 57,544 14,196 14,196 200,000 34,301 34,301 200,000 38,269 38,269 200,000
24 1,323 61,810 13,689 13,689 200,000 35,821 35,821 200,000 40,652 40,652 200,000
25 1,323 66,289 12,911 12,911 200,000 37,182 37,182 200,000 43,076 43,076 200,000
</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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-8
<PAGE> 122
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 1,323 70,992 11,807 11,807 200,000 38,332 38,332 200,000 45,526 45,526 200,000
27 1,323 75,931 10,303 10,303 200,000 39,200 39,200 200,000 47,991 47,991 200,000
28 1,323 81,116 8,300 8,300 200,000 39,691 39,691 200,000 50,457 50,457 200,000
29 1,323 86,561 5,674 5,674 200,000 39,691 39,691 200,000 52,876 52,876 200,000
30 1,323 92,278 2,288 2,288 200,000 39,066 39,066 200,000 55,216 55,216 200,000
31 1,323 98,281 LAPSED LAPSED LAPSED 37,661 37,661 200,000 57,438 57,438 200,000
32 1,323 104,584 35,301 35,301 200,000 59,494 59,494 200,000
33 1,323 111,202 31,773 31,773 200,000 61,328 61,328 200,000
34 1,323 118,151 26,810 26,810 200,000 62,872 62,872 200,000
35 1,323 125,448 20,053 20,053 200,000 64,046 64,046 200,000
36 1,323 133,109 11,003 11,003 200,000 64,753 64,753 200,000
37 1,323 141,153 LAPSED LAPSED LAPSED 64,888 64,888 200,000
38 1,323 149,600 64,320 64,320 200,000
39 1,323 158,469 62,769 62,769 200,000
40 1,323 167,781 59,917 59,917 200,000
41 1,323 177,559 55,447 55,447 200,000
42 1,323 187,826 48,831 48,831 200,000
43 1,323 198,606 39,388 39,388 200,000
44 1,323 209,925 26,043 26,043 200,000
45 1,323 221,811 7,383 7,383 200,000
46 1,323 234,290 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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-9
<PAGE> 123
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 1,323 0 876 200,000 0 999 200,000 0 999 200,000
5 1,323 3,428 4,221 200,000 5,336 6,130 200,000 5,398 6,191 200,000
10 1,323 7,817 7,949 200,000 15,927 16,059 200,000 16,324 16,456 200,000
20 1,323 14,448 14,448 200,000 61,553 61,553 200,000 64,679 64,679 200,000
@ Age 70 1,323 12,911 12,911 200,000 105,845 105,845 200,000 113,582 113,582 200,000
@ Age 85 1,323 LAPSED LAPSED LAPSED 508,652 508,652 534,085 563,513 563,513 591,688
@ Age 90 1,323 LAPSED LAPSED LAPSED 828,345 828,345 869,763 933,169 933,169 979,828
</TABLE>
* Policy lapses in policy year 31 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
------------------------------------------------------ -------------------------
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 Applicant or Policyowner Date
</TABLE>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-10
<PAGE> 124
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,323 1,389 0 876 200,000 0 999 200,000 0 999 200,000
2 1,323 2,847 546 1,736 200,000 910 2,100 200,000 916 2,107 200,000
3 1,323 4,379 1,523 2,581 200,000 2,257 3,315 200,000 2,274 3,332 200,000
4 1,323 5,986 2,484 3,410 200,000 3,728 4,654 200,000 3,763 4,689 200,000
5 1,323 7,675 3,428 4,221 200,000 5,336 6,130 200,000 5,398 6,191 200,000
6 1,323 9,447 4,352 5,014 200,000 7,094 7,756 200,000 7,192 7,853 200,000
7 1,323 11,309 5,256 5,785 200,000 9,017 9,546 200,000 9,162 9,691 200,000
8 1,323 13,263 6,137 6,534 200,000 11,118 11,515 200,000 11,328 11,725 200,000
9 1,323 15,315 6,992 7,256 200,000 13,416 13,680 200,000 13,708 13,972 200,000
10 1,323 17,470 7,817 7,949 200,000 15,927 16,059 200,000 16,324 16,456 200,000
11 1,323 19,732 8,863 8,863 200,000 18,945 18,945 200,000 19,471 19,471 200,000
12 1,323 22,108 9,737 9,737 200,000 22,115 22,115 200,000 22,800 22,800 200,000
13 1,323 24,602 10,566 10,566 200,000 25,597 25,597 200,000 26,472 26,472 200,000
14 1,323 27,221 11,347 11,347 200,000 29,422 29,422 200,000 30,508 30,508 200,000
15 1,323 29,971 12,072 12,072 200,000 33,623 33,623 200,000 34,937 34,937 200,000
16 1,323 32,858 12,732 12,732 200,000 38,232 38,232 200,000 39,805 39,805 200,000
17 1,323 35,890 13,317 13,317 200,000 43,289 43,289 200,000 45,157 45,157 200,000
18 1,323 39,074 13,811 13,811 200,000 48,832 48,832 200,000 51,041 51,041 200,000
19 1,323 42,416 14,195 14,195 200,000 54,903 54,903 200,000 57,520 57,520 200,000
20 1,323 45,926 14,448 14,448 200,000 61,553 61,553 200,000 64,679 64,679 200,000
21 1,323 49,611 14,549 14,549 200,000 68,836 68,836 200,000 72,601 72,601 200,000
22 1,323 53,481 14,473 14,473 200,000 76,822 76,822 200,000 81,352 81,352 200,000
23 1,323 57,544 14,196 14,196 200,000 85,587 85,587 200,000 91,019 91,019 200,000
24 1,323 61,810 13,689 13,689 200,000 95,227 95,227 200,000 101,720 101,720 200,000
25 1,323 66,289 12,911 12,911 200,000 105,845 105,845 200,000 113,582 113,582 200,000
</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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-11
<PAGE> 125
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 1,323 70,992 11,807 11,807 200,000 117,566 117,566 200,000 126,739 126,739 200,000
27 1,323 75,931 10,303 10,303 200,000 130,537 130,537 200,000 141,352 141,352 200,000
28 1,323 81,116 8,300 8,300 200,000 144,939 144,939 200,000 157,604 157,604 200,000
29 1,323 86,561 5,674 5,674 200,000 161,005 161,005 200,000 175,706 175,706 200,000
30 1,323 92,278 2,288 2,288 200,000 179,042 179,042 200,000 195,901 195,901 209,614
31 1,323 98,281 LAPSED LAPSED LAPSED 199,406 199,406 209,376 218,335 218,335 229,252
32 1,323 104,584 222,003 222,003 233,103 243,170 243,170 255,328
33 1,323 111,202 246,953 246,953 259,300 270,654 270,654 284,186
34 1,323 118,151 274,483 274,483 288,208 301,060 301,060 316,113
35 1,323 125,448 304,840 304,840 320,083 334,686 334,686 351,421
36 1,323 133,109 338,285 338,285 355,200 371,859 371,859 390,452
37 1,323 141,153 375,094 375,094 393,848 412,933 412,933 433,579
38 1,323 149,600 415,553 415,553 436,331 458,295 458,295 481,209
39 1,323 158,469 459,967 459,967 482,966 508,345 508,345 533,762
40 1,323 167,781 508,652 508,652 534,085 563,513 563,513 591,688
41 1,323 177,559 561,942 561,942 590,039 624,272 624,272 655,485
42 1,323 187,826 620,186 620,186 651,195 691,105 691,105 725,661
43 1,323 198,606 683,749 683,749 717,937 764,525 764,525 802,752
44 1,323 209,925 753,009 753,009 790,660 845,035 845,035 887,287
45 1,323 221,811 828,345 828,345 869,763 933,169 933,169 979,828
46 1,323 234,290 910,133 910,133 955,639 1,029,472 1,029,472 1,080,946
47 1,323 247,393 1,001,198 1,001,198 1,041,246 1,136,221 1,136,221 1,181,670
48 1,323 261,152 1,103,166 1,103,166 1,136,261 1,255,059 1,255,059 1,292,711
49 1,323 275,599 1,218,081 1,218,081 1,242,443 1,388,172 1,388,172 1,415,935
50 1,323 290,767 1,348,624 1,348,624 1,362,110 1,538,085 1,538,085 1,553,466
</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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-12
<PAGE> 126
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 1,323 306,695 1,492,374 1,492,374 1,507,298 1,703,795 1,703,795 1,720,833
52 1,323 323,418 1,650,054 1,650,054 1,666,555 1,886,851 1,886,851 1,905,720
53 1,323 340,978 1,821,428 1,821,428 1,839,642 2,089,117 2,089,117 2,110,009
54 1,323 359,416 2,007,836 2,007,836 2,027,914 2,312,558 2,312,558 2,335,684
55 1,323 378,776 2,213,192 2,213,192 2,235,324 2,559,344 2,559,344 2,584,937
</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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-13
<PAGE> 127
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 1,932 0 1,419 200,000 0 1,419 200,000 0 1,419 200,000
5 1,932 5,593 6,752 200,000 5,593 6,752 200,000 5,673 6,833 200,000
10 1,932 12,196 12,389 200,000 12,196 12,389 200,000 12,536 12,730 200,000
20 1,932 18,908 18,908 200,000 18,908 18,908 200,000 20,182 20,182 200,000
@ Age 70 1,932 13,304 13,304 200,000 13,304 13,304 200,000 17,644 17,644 200,000
@ 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 29 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 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
------------------------------------------------------ -------------------------
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 Applicant or Policyowner Date
</TABLE>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Age 45 Female Smoker Standard Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,932.08-Premium Mode: Annual-Riders: None
D-14
<PAGE> 128
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,932 2,029 0 1,419 200,000 0 1,419 200,000 0 1,419 200,000
2 1,932 4,159 1,064 2,803 200,000 1,064 2,803 200,000 1,077 2,815 200,000
3 1,932 6,395 2,610 4,156 200,000 2,610 4,156 200,000 2,640 4,186 200,000
4 1,932 8,744 4,121 5,473 200,000 4,121 5,473 200,000 4,174 5,526 200,000
5 1,932 11,210 5,593 6,752 200,000 5,593 6,752 200,000 5,673 6,833 200,000
6 1,932 13,799 7,023 7,989 200,000 7,023 7,989 200,000 7,136 8,102 200,000
7 1,932 16,518 8,404 9,177 200,000 8,404 9,177 200,000 8,558 9,331 200,000
8 1,932 19,372 9,732 10,312 200,000 9,732 10,312 200,000 9,936 10,515 200,000
9 1,932 22,369 10,999 11,385 200,000 10,999 11,385 200,000 11,264 11,650 200,000
10 1,932 25,517 12,196 12,389 200,000 12,196 12,389 200,000 12,536 12,730 200,000
11 1,932 28,821 13,587 13,587 200,000 13,587 13,587 200,000 14,009 14,009 200,000
12 1,932 32,291 14,698 14,698 200,000 14,698 14,698 200,000 15,207 15,207 200,000
13 1,932 35,934 15,712 15,712 200,000 15,712 15,712 200,000 16,309 16,309 200,000
14 1,932 39,759 16,623 16,623 200,000 16,623 16,623 200,000 17,286 17,286 200,000
15 1,932 43,776 17,418 17,418 200,000 17,418 17,418 200,000 18,148 18,148 200,000
16 1,932 47,994 18,083 18,083 200,000 18,083 18,083 200,000 18,881 18,881 200,000
17 1,932 52,422 18,596 18,596 200,000 18,596 18,596 200,000 19,464 19,464 200,000
18 1,932 57,072 18,927 18,927 200,000 18,927 18,927 200,000 19,878 19,878 200,000
19 1,932 61,954 19,042 19,042 200,000 19,042 19,042 200,000 20,122 20,122 200,000
20 1,932 67,080 18,908 18,908 200,000 18,908 18,908 200,000 20,182 20,182 200,000
21 1,932 72,463 18,489 18,489 200,000 18,489 18,489 200,000 20,134 20,134 200,000
22 1,932 78,115 17,753 17,753 200,000 17,753 17,753 200,000 19,851 19,851 200,000
23 1,932 84,049 16,670 16,670 200,000 16,670 16,670 200,000 19,349 19,349 200,000
24 1,932 90,280 15,205 15,205 200,000 15,205 15,205 200,000 18,622 18,622 200,000
25 1,932 96,823 13,304 13,304 200,000 13,304 13,304 200,000 17,644 17,644 200,000
</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.
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Age 45 Female Smoker Standard Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,932.08-Premium Mode: Annual-Riders: None
D-15
<PAGE> 129
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 1,932 103,693 10,888 10,888 200,000 10,888 10,888 200,000 16,361 16,361 200,000
27 1,932 110,906 7,843 7,843 200,000 7,843 7,843 200,000 14,769 14,769 200,000
28 1,932 118,480 4,022 4,022 200,000 4,022 4,022 200,000 12,813 12,813 200,000
29 1,932 126,433 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 10,336 10,336 200,000
30 1,932 134,783 7,237 7,237 200,000
31 1,932 143,551 3,407 3,407 200,000
32 1,932 152,757 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.
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Age 45 Female Smoker Standard Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,932.08-Premium Mode: Annual-Riders: None
D-16
<PAGE> 130
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 1,932 0 1,419 200,000 0 1,513 200,000 0 1,513 200,000
5 1,932 5,593 6,752 200,000 6,978 8,137 200,000 7,066 8,226 200,000
10 1,932 12,196 12,389 200,000 17,429 17,623 200,000 17,837 18,031 200,000
20 1,932 18,908 18,908 200,000 41,265 41,265 200,000 43,114 43,114 200,000
@ Age 70 1,932 13,304 13,304 200,000 49,957 49,957 200,000 55,342 55,342 200,000
@ Age 85 1,932 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 30,895 30,895 200,000
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 29 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 37 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 42 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
------------------------------------- -------------
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>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Age 45 Female Smoker Standard Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,932.08-Premium Mode: Annual-Riders: None
D-17
<PAGE> 131
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,932 2,029 0 1,419 200,000 0 1,513 200,000 0 1,513 200,000
2 1,932 4,159 1,064 2,803 200,000 1,342 3,081 200,000 1,354 3,093 200,000
3 1,932 6,395 2,610 4,156 200,000 3,162 4,708 200,000 3,194 4,740 200,000
4 1,932 8,744 4,121 5,473 200,000 5,041 6,394 200,000 5,098 6,451 200,000
5 1,932 11,210 5,593 6,752 200,000 6,978 8,137 200,000 7,066 8,226 200,000
6 1,932 13,799 7,023 7,989 200,000 8,970 9,936 200,000 9,098 10,064 200,000
7 1,932 16,518 8,404 9,177 200,000 11,016 11,789 200,000 11,193 11,966 200,000
8 1,932 19,372 9,732 10,312 200,000 13,112 13,692 200,000 13,349 13,929 200,000
9 1,932 22,369 10,999 11,385 200,000 15,251 15,638 200,000 15,565 15,952 200,000
10 1,932 25,517 12,196 12,389 200,000 17,429 17,623 200,000 17,837 18,031 200,000
11 1,932 28,821 13,587 13,587 200,000 19,922 19,922 200,000 20,435 20,435 200,000
12 1,932 32,291 14,698 14,698 200,000 22,262 22,262 200,000 22,891 22,891 200,000
13 1,932 35,934 15,712 15,712 200,000 24,636 24,636 200,000 25,389 25,389 200,000
14 1,932 39,759 16,623 16,623 200,000 27,040 27,040 200,000 27,901 27,901 200,000
15 1,932 43,776 17,418 17,418 200,000 29,465 29,465 200,000 30,441 30,441 200,000
16 1,932 47,994 18,083 18,083 200,000 31,899 31,899 200,000 32,996 32,996 200,000
17 1,932 52,422 18,596 18,596 200,000 34,323 34,323 200,000 35,551 35,551 200,000
18 1,932 57,072 18,927 18,927 200,000 36,712 36,712 200,000 38,090 38,090 200,000
19 1,932 61,954 19,042 19,042 200,000 39,036 39,036 200,000 40,614 40,614 200,000
20 1,932 67,080 18,908 18,908 200,000 41,265 41,265 200,000 43,114 43,114 200,000
21 1,932 72,463 18,489 18,489 200,000 43,369 43,369 200,000 45,660 45,660 200,000
22 1,932 78,115 17,753 17,753 200,000 45,318 45,318 200,000 48,147 48,147 200,000
23 1,932 84,049 16,670 16,670 200,000 47,090 47,090 200,000 50,593 50,593 200,000
24 1,932 90,280 15,205 15,205 200,000 48,651 48,651 200,000 52,996 52,996 200,000
25 1,932 96,823 13,304 13,304 200,000 49,957 49,957 200,000 55,342 55,342 200,000
</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.
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Age 45 Female Smoker Standard Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,932.08-Premium Mode: Annual-Riders: None
D-18
<PAGE> 132
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 1,932 103,693 10,888 10,888 200,000 50,943 50,943 200,000 57,593 57,593 200,000
27 1,932 110,906 7,843 7,843 200,000 51,513 51,513 200,000 59,750 59,750 200,000
28 1,932 118,480 4,022 4,022 200,000 51,547 51,547 200,000 61,779 61,779 200,000
29 1,932 126,433 LAPSED LAPSED LAPSED 50,899 50,899 200,000 63,567 63,567 200,000
30 1,932 134,783 49,397 49,397 200,000 65,050 65,050 200,000
31 1,932 143,551 46,848 46,848 200,000 66,154 66,154 200,000
32 1,932 152,757 43,035 43,035 200,000 66,773 66,773 200,000
33 1,932 162,424 37,705 37,705 200,000 66,783 66,783 200,000
34 1,932 172,574 30,529 30,529 200,000 66,034 66,034 200,000
35 1,932 183,281 21,055 21,055 200,000 64,347 64,347 200,000
36 1,932 194,421 8,651 8,651 200,000 61,529 61,529 200,000
37 1,932 206,171 LAPSED LAPSED LAPSED 57,284 57,284 200,000
38 1,932 218,508 51,265 51,265 200,000
39 1,932 231,463 42,765 42,765 200,000
40 1,932 245,064 30,895 30,895 200,000
41 1,932 259,346 14,791 14,791 200,000
42 1,932 274,342 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.
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Age 45 Female Smoker Standard Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,932.08-Premium Mode: Annual-Riders: None
D-19
<PAGE> 133
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 1,932 0 1,419 200,000 0 1,608 200,000 0 1,608 200,000
5 1,932 5,593 6,752 200,000 8,603 9,762 200,000 8,701 9,860 200,000
10 1,932 12,196 12,389 200,000 24,984 25,178 200,000 25,476 25,669 200,000
20 1,932 18,908 18,908 200,000 91,845 91,845 200,000 94,631 94,631 200,000
@ Age 70 1,932 13,304 13,304 200,000 158,601 158,601 200,000 165,137 165,137 200,000
@ Age 85 1,932 LAPSED LAPSED LAPSED 768,788 768,788 807,228 811,134 811,134 851,691
@ Age 90 1,932 LAPSED LAPSED LAPSED 1,246,739 1,246,739 1,309,076 1,326,609 1,326,609 1,392,939
</TABLE>
* Policy lapses in policy year 29 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
------------------------------------------------------
-------------------------
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>
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Age 45 Female Smoker Standard Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,932.08-Premium Mode: Annual-Riders: None
D-20
<PAGE> 134
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,932 2,029 0 1,419 200,000 0 1,608 200,000 0 1,608 200,000
2 1,932 4,159 1,064 2,803 200,000 1,631 3,370 200,000 1,644 3,383 200,000
3 1,932 6,395 2,610 4,156 200,000 3,760 5,306 200,000 3,794 5,340 200,000
4 1,932 8,744 4,121 5,473 200,000 6,079 7,431 200,000 6,140 7,493 200,000
5 1,932 11,210 5,593 6,752 200,000 8,603 9,762 200,000 8,701 9,860 200,000
6 1,932 13,799 7,023 7,989 200,000 11,351 12,317 200,000 11,495 12,461 200,000
7 1,932 16,518 8,404 9,177 200,000 14,342 15,115 200,000 14,544 15,317 200,000
8 1,932 19,372 9,732 10,312 200,000 17,596 18,176 200,000 17,874 18,453 200,000
9 1,932 22,369 10,999 11,385 200,000 21,136 21,522 200,000 21,508 21,895 200,000
10 1,932 25,517 12,196 12,289 200,000 24,984 25,178 200,000 25,476 25,669 200,000
11 1,932 28,821 13,587 13,587 200,000 29,462 29,462 200,000 30,091 30,091 200,000
12 1,932 32,291 14,698 14,698 200,000 34,148 34,148 200,000 34,933 34,933 200,000
13 1,932 35,934 15,712 15,712 200,000 39,273 39,273 200,000 40,232 40,232 200,000
14 1,932 39,759 16,623 16,623 200,000 44,883 44,883 200,000 46,015 46,015 200,000
15 1,932 43,776 17,418 17,418 200,000 51,028 51,028 200,000 52,350 52,350 200,000
16 1,932 47,994 18,083 18,083 200,000 57,761 57,761 200,000 59,295 59,295 200,000
17 1,932 52,422 18,596 18,596 200,000 65,140 65,140 200,000 66,911 66,911 200,000
18 1,932 57,072 18,927 18,927 200,000 73,229 73,229 200,000 75,271 75,271 200,000
19 1,932 61,954 19,042 19,042 200,000 82,100 82,100 200,000 84,475 84,475 200,000
20 1,932 67,080 18,908 18,908 200,000 91,845 91,845 200,000 94,631 94,631 200,000
21 1,932 72,463 18,489 18,489 200,000 102,576 102,576 200,000 105,916 105,916 200,000
22 1,932 78,115 17,753 17,753 200,000 114,429 114,429 200,000 118,412 118,412 200,000
23 1,932 84,049 16,670 16,670 200,000 127,577 127,577 200,000 132,308 132,308 200,000
24 1,932 90,280 15,205 15,205 200,000 142,220 142,220 200,000 147,805 147,805 200,000
25 1,932 96,823 13,304 13,304 200,000 158,601 158,601 200,000 165,137 165,137 200,000
</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.
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Age 45 Female Smoker Standard Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,932.08-Premium Mode: Annual-Riders: None
D-21
<PAGE> 135
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 1,932 103,693 10,888 10,888 200,000 177,010 177,010 203,562 184,526 184,526 212,205
27 1,932 110,906 7,843 7,843 200,000 197,525 197,525 223,203 206,026 206,026 232,809
28 1,932 118,480 4,022 4,022 200,000 220,217 220,217 244,441 229,842 229,842 255,124
29 1,932 126,433 LAPSED LAPSED LAPSED 245,343 245,343 267,424 256,229 256,229 279,289
30 1,932 134,783 273,204 273,204 292,329 285,492 285,492 305,476
31 1,932 143,551 304,163 304,163 319,372 317,985 317,985 333,884
32 1,932 152,757 338,316 338,316 355,232 353,892 353,892 371,587
33 1,932 162,424 375,973 375,973 394,771 393,552 393,552 413,230
34 1,932 172,574 417,469 417,469 438,342 437,332 437,332 459,199
35 1,932 183,231 463,165 463,165 486,323 485,631 485,631 509,913
36 1,932 194,421 513,444 513,444 539,117 538,887 538,887 565,831
37 1,932 206,171 568,712 568,712 597,148 597,563 597,563 627,442
38 1,932 218,508 629,394 629,394 660,863 662,165 662,165 695,273
39 1,932 231,463 695,927 695,927 730,724 733,182 733,182 769,841
40 1,932 245,064 768,788 768,788 807,228 811,134 811,134 851,691
41 1,932 259,346 848,483 848,483 890,907 896,638 896,638 941,470
42 1,932 274,342 935,549 935,549 982,327 990,242 990,242 1,039,754
43 1,932 290,088 1,030,553 1,030,553 1,082,081 1,092,691 1,092,691 1,147,326
44 1,932 306,621 1,134,078 1,134,078 1,190,782 1,204,585 1,204,585 1,264,814
45 1,932 323,981 1,246,739 1,246,739 1,309,076 1,326,609 1,326,609 1,392,939
46 1,932 342,209 1,369,104 1,369,104 1,437,559 1,459,602 1,459,602 1,532,582
47 1,932 361,348 1,505,603 1,505,603 1,565,827 1,607,612 1,607,612 1,671,917
48 1,932 381,444 1,658,671 1,658,671 1,708,432 1,773,174 1,773,174 1,826,370
49 1,932 402,545 1,831,347 1,831,347 1,867,974 1,959,662 1,959,662 1,998,855
50 1,932 424,700 2,027,591 2,027,591 2,047,866 2,170,759 2,170,759 2,192,467
</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.
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Age 45 Female Smoker Standard Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,932.08-Premium Mode: Annual-Riders: None
D-22
<PAGE> 136
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 1,932 447,964 2,243,695 2,243,695 2,266,131 2,404,174 2,404,174 2,428,216
52 1,932 472,391 2,480,740 2,480,740 2,505,547 2,662,241 2,662,241 2,688,863
53 1,932 498,039 2,738,370 2,738,370 2,765,754 2,947,523 2,947,523 2,976,998
54 1,932 524,970 3,018,609 3,018,609 3,048,795 3,262,832 3,262,832 3,295,460
55 1,932 553,247 3,327,334 3,327,334 3,360,607 3,611,251 3,611,251 3,647,364
</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.
Age 45 Male Smoker Standard Prepared On: 09/11/1998
Age 45 Female Smoker Standard Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,932.08-Premium Mode: Annual-Riders: None
D-23
<PAGE> 137
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 1,323 0 876 200,876 0 876 200,876 0 876 200,876
5 1,323 3,426 4,220 204,220 3,426 4,220 204,220 3,478 4,272 204,272
10 1,323 7,803 7,936 207,936 7,803 7,936 207,936 8,096 8,229 208,229
20 1,323 14,189 14,189 214,189 14,189 14,189 214,189 15,897 15,897 215,897
@ Age 70 1,323 12,166 12,166 212,166 12,166 12,166 212,166 16,981 16,981 216,981
@ 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 31 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 0.00%.
*** Policy lapses in policy year 36 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
------------------------------------------------------
-------------------------
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>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-24
<PAGE> 138
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,323 1,389 0 876 200,876 0 876 200,876 0 876 200,876
2 1,323 2,847 546 1,736 201,736 546 1,736 201,736 552 1,742 201,742
3 1,323 4,379 1,523 2,581 202,581 1,523 2,581 202,581 1,539 2,597 202,597
4 1,323 5,986 2,483 3,409 203,409 2,483 3,409 203,409 2,514 3,440 203,440
5 1,323 7,675 3,426 4,220 204,220 3,426 4,220 204,220 3,478 4,272 204,272
6 1,323 9,447 4,350 5,011 205,011 4,350 5,011 205,011 4,430 5,092 205,092
7 1,323 11,309 5,253 5,782 205,782 5,253 5,782 205,782 5,369 5,898 205,898
8 1,323 13,263 6,131 6,528 206,528 6,131 6,528 206,528 6,294 6,691 206,691
9 1,323 15,315 6,983 7,247 207,247 6,983 7,247 207,247 7,204 7,468 207,468
10 1,323 17,470 7,803 7,936 207,936 7,803 7,936 207,936 8,096 8,229 208,229
11 1,323 19,732 8,843 8,843 208,843 8,843 8,843 208,843 9,223 9,223 209,223
12 1,323 22,108 9,709 9,709 209,709 9,709 9,709 209,709 10,191 10,191 210,191
13 1,323 24,602 10,528 10,528 210,528 10,528 10,528 210,528 11,128 11,128 211,128
14 1,323 27,221 11,295 11,295 211,295 11,295 11,295 211,295 12,014 12,014 212,014
15 1,323 29,971 12,002 12,002 212,002 12,002 12,002 212,002 12,835 12,835 212,835
16 1,323 32,858 12,639 12,639 212,639 12,639 12,639 212,639 13,594 13,594 213,594
17 1,323 35,890 13,195 13,195 213,195 13,195 13,195 213,195 14,284 14,284 214,284
18 1,323 39,074 13,653 13,653 213,653 13,653 13,653 213,653 14,895 14,895 214,895
19 1,323 42,416 13,992 13,992 213,992 13,992 13,992 213,992 15,425 15,425 215,425
20 1,323 45,926 14,189 14,189 214,189 14,189 14,189 214,189 15,897 15,897 215,897
21 1,323 49,611 14,221 14,221 214,221 14,221 14,221 214,221 16,315 16,315 216,315
22 1,323 53,481 14,063 14,063 214,063 14,063 14,063 214,063 16,642 16,642 216,642
23 1,323 57,544 13,689 13,689 213,689 13,689 13,689 213,689 16,860 16,860 216,860
24 1,323 61,810 13,070 13,070 213,070 13,070 13,070 213,070 16,974 16,974 216,974
25 1,323 66,289 12,166 12,166 212,166 12,166 12,166 212,166 16,981 16,981 216,981
</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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-25
<PAGE> 139
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 1,323 70,992 10,924 10,924 210,924 10,924 10,924 210,924 16,856 16,856 216,856
27 1,323 75,931 9,273 9,273 209,273 9,273 9,273 209,273 16,585 16,585 216,585
28 1,323 81,116 7,121 7,121 207,121 7,121 7,121 207,121 16,141 16,141 216,141
29 1,323 86,561 4,361 4,361 204,361 4,361 4,361 204,361 15,459 15,459 215,459
30 1,323 92,278 879 879 200,879 879 879 200,879 14,496 14,496 214,496
31 1,323 98,281 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 13,197 13,197 213,197
32 1,323 104,584 11,500 11,500 211,500
33 1,323 111,202 9,334 9,334 209,334
34 1,323 118,151 6,614 6,614 206,614
35 1,323 125,448 3,251 3,251 203,251
36 1,323 133,109 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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-26
<PAGE> 140
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 1,323 0 876 200,876 0 938 200,938 0 938 200,938
5 1,323 3,426 4,220 204,220 4,304 5,097 205,097 4,361 5,154 205,154
10 1,323 7,803 7,936 207,936 11,118 11,250 211,250 11,466 11,598 211,598
20 1,323 14,189 14,189 214,189 28,580 28,580 228,580 30,999 30,999 230,999
@ Age 70 1,323 12,166 12,166 212,166 35,153 35,153 235,153 41,853 41,853 241,853
@ Age 85 1,323 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 33,741 33,741 233,741
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 31 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 36 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 43 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
------------------------------------------------------
-------------------------
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>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
2 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-27
<PAGE> 141
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,323 1,389 0 876 200,876 0 938 200,938 0 938 200,938
2 1,323 2,847 546 1,736 201,736 724 1,914 201,914 730 1,920 201,920
3 1,323 4,379 1,523 2,581 202,581 1,875 2,933 202,933 1,891 2,950 202,950
4 1,323 5,986 2,483 3,409 203,409 3,068 3,993 203,993 3,101 4,027 204,027
5 1,323 7,675 3,426 4,220 204,220 4,304 5,097 205,097 4,361 5,154 205,154
6 1,323 9,447 4,350 5,011 205,011 5,583 6,244 206,244 5,672 6,334 206,334
7 1,323 11,309 5,253 5,782 205,782 6,905 7,434 207,434 7,037 7,566 207,566
8 1,323 13,263 6,131 6,528 206,528 8,269 8,666 208,666 8,457 8,854 208,854
9 1,323 15,315 6,983 7,247 207,247 9,674 9,939 209,939 9,933 10,198 210,198
10 1,323 17,470 7,803 7,936 207,936 11,118 11,250 211,250 11,466 11,598 211,598
11 1,323 19,732 8,843 8,843 208,843 12,860 12,860 212,860 13,319 13,319 213,319
12 1,323 22,108 9,709 9,709 209,709 14,516 14,516 214,516 15,107 15,107 215,107
13 1,323 24,602 10,528 10,528 210,528 16,215 16,215 216,215 16,961 16,961 216,961
14 1,323 27,221 11,295 11,295 211,295 17,951 17,951 217,951 18,864 18,864 218,864
15 1,323 29,971 12,002 12,002 212,002 19,720 19,720 219,720 20,803 20,803 220,803
16 1,323 32,858 12,639 12,639 212,639 21,511 21,511 221,511 22,782 22,782 222,782
17 1,323 35,890 13,195 13,195 213,195 23,313 23,313 223,313 24,795 24,795 224,795
18 1,323 39,074 13,653 13,653 213,653 25,107 25,107 225,107 26,832 26,832 226,832
19 1,323 42,416 13,992 13,992 213,992 26,871 26,871 226,871 28,893 28,893 228,893
20 1,323 45,926 14,189 14,189 214,189 28,580 28,580 228,580 30,999 30,999 230,999
21 1,323 49,611 14,221 14,221 214,221 30,203 30,203 230,203 33,159 33,159 233,159
22 1,323 53,481 14,063 14,063 214,063 31,710 31,710 231,710 35,335 35,335 235,335
23 1,323 57,544 13,689 13,689 213,689 33,067 33,067 233,067 37,508 37,508 237,508
24 1,323 61,810 13,070 13,070 213,070 34,232 34,232 234,232 39,682 39,682 239,682
25 1,323 66,289 12,166 12,166 212,166 35,153 35,153 235,153 41,853 41,853 241,853
</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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
2 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-28
<PAGE> 142
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 1,323 70,992 10,924 10,924 210,924 35,760 35,760 235,760 43,995 43,995 243,995
27 1,323 75,931 9,273 9,273 209,273 35,961 35,961 235,961 46,089 46,089 246,089
28 1,323 81,116 7,121 7,121 207,121 35,636 35,636 235,636 48,103 48,103 248,103
29 1,323 86,561 4,361 4,361 204,361 34,643 34,643 234,643 49,966 49,966 249,966
30 1,323 92,278 879 879 200,879 32,826 32,826 232,826 51,622 51,622 251,622
31 1,323 98,281 LAPSED LAPSED LAPSED 30,017 30,017 230,017 53,001 53,001 253,001
32 1,323 104,584 26,044 26,044 226,044 54,023 54,023 254,023
33 1,323 111,202 20,721 20,721 220,721 54,591 54,591 254,591
34 1,323 118,151 13,842 13,842 213,842 54,592 54,592 254,592
35 1,323 125,448 5,156 5,156 205,156 53,899 53,899 253,899
36 1,323 133,109 LAPSED LAPSED LAPSED 52,361 52,361 252,361
37 1,323 141,153 49,827 49,827 249,827
38 1,323 149,600 46,123 46,123 246,123
39 1,323 158,469 40,883 40,883 240,883
40 1,323 167,781 33,741 33,741 233,741
41 1,323 177,559 24,417 24,417 224,417
42 1,323 187,826 12,460 12,460 212,460
43 1,323 198,606 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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
2 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-29
<PAGE> 143
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 1,323 0 876 200,876 0 999 200,999 0 999 200,999
5 1,323 3,426 4,220 204,220 5,335 6,128 206,128 5,397 6,191 206,191
10 1,323 7,803 7,936 207,936 15,898 16,030 216,030 16,315 16,447 216,447
20 1,323 14,189 14,189 214,189 60,350 60,350 260,350 63,941 63,941 263,941
@ Age 70 1,323 12,166 12,166 212,166 100,148 100,148 300,148 110,276 110,276 310,276
@ Age 85 1,323 LAPSED LAPSED LAPSED 268,483 268,483 468,483 453,642 453,642 653,642
@ Age 90 1,323 LAPSED LAPSED LAPSED 252,535 252,535 452,535 661,426 661,426 861,426
</TABLE>
* Policy lapses in policy year 31 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 51 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
------------------------------------------------------
-------------------------
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>
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
2 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-30
<PAGE> 144
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,323 1,389 0 876 200,876 0 999 200,999 0 999 200,999
2 1,323 2,847 546 1,736 201,736 910 2,100 202,100 916 2,107 202,107
3 1,323 4,379 1,523 2,581 202,581 2,256 3,315 203,315 2,274 3,332 203,332
4 1,323 5,986 2,483 3,409 203,409 3,727 4,653 204,653 3,763 4,689 204,689
5 1,323 7,675 3,426 4,220 204,220 5,335 6,128 206,128 5,397 6,191 206,191
6 1,323 9,447 4,350 5,011 205,011 7,091 7,752 207,752 7,191 7,852 207,852
7 1,323 11,309 5,253 5,782 205,782 9,010 9,539 209,539 9,161 9,690 209,690
8 1,323 13,263 6,131 6,528 206,528 11,107 11,504 211,504 11,325 11,722 211,722
9 1,323 15,315 6,983 7,247 207,247 13,397 13,662 213,662 13,702 13,967 213,967
10 1,323 17,470 7,803 7,936 207,936 15,898 16,030 216,030 16,315 16,447 216,447
11 1,323 19,732 8,843 8,843 208,843 18,899 18,899 218,899 19,457 19,457 219,457
12 1,323 22,108 9,709 9,709 209,709 22,045 22,045 222,045 22,777 22,777 222,777
13 1,323 24,602 10,528 10,528 210,528 25,494 25,494 225,494 26,436 26,436 226,436
14 1,323 27,221 11,295 11,295 211,295 29,271 29,271 229,271 30,450 30,450 230,450
15 1,323 29,971 12,002 12,002 212,002 33,404 33,404 233,404 34,840 34,840 234,840
16 1,323 32,858 12,639 12,639 212,639 37,920 37,920 237,920 39,652 39,652 239,652
17 1,323 35,890 13,195 13,195 213,195 42,847 42,847 242,847 44,921 44,921 244,921
18 1,323 39,074 13,653 13,653 213,653 48,212 48,212 248,212 50,686 50,686 250,686
19 1,323 42,416 13,992 13,992 213,992 54,037 54,037 254,037 56,998 56,998 256,998
20 1,323 45,926 14,189 14,189 214,189 60,350 60,350 260,350 63,941 63,941 263,941
21 1,323 49,611 14,221 14,221 214,221 67,174 67,174 267,174 71,586 71,586 271,586
22 1,323 53,481 14,063 14,063 214,063 74,538 74,538 274,538 79,970 79,970 279,970
23 1,323 57,544 13,689 13,689 213,689 82,471 82,471 282,471 89,152 89,152 289,152
24 1,323 61,810 13,070 13,070 213,070 91,001 91,001 291,001 99,223 99,223 299,223
25 1,323 66,289 12,166 12,166 212,166 100,148 100,148 300,148 110,276 110,276 310,276
</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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
2 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-31
<PAGE> 145
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 1,323 70,992 10,924 10,924 210,924 109,919 109,919 309,919 122,391 122,391 322,391
27 1,323 75,931 9,273 9,273 209,273 120,303 120,303 320,303 135,664 135,664 335,664
28 1,323 81,116 7,121 7,121 207,121 131,264 131,264 331,264 150,192 150,192 350,192
29 1,323 86,561 4,361 4,361 204,361 142,745 142,745 342,745 166,042 166,042 366,042
30 1,323 92,278 879 879 200,879 154,677 154,677 354,677 183,307 183,307 383,307
31 1,323 98,281 LAPSED LAPSED LAPSED 166,977 166,977 366,977 202,081 202,081 402,081
32 1,323 104,584 179,559 179,559 379,559 222,457 222,457 422,457
33 1,323 111,202 192,321 192,321 392,321 244,531 244,531 444,531
34 1,323 118,151 205,140 205,140 405,140 268,392 268,392 468,392
35 1,323 125,448 217,845 217,845 417,845 294,135 294,135 494,135
36 1,323 133,109 230,195 230,195 430,195 321,844 321,844 521,844
37 1,323 141,153 241,869 241,869 441,869 351,621 351,621 551,621
38 1,323 149,600 252,459 252,459 452,459 383,564 383,564 583,564
39 1,323 158,469 261,498 261,498 461,498 417,593 417,593 617,593
40 1,323 167,781 268,483 268,483 468,483 453,642 453,642 653,642
41 1,323 177,559 272,882 272,882 472,882 491,740 491,740 691,740
42 1,323 187,826 274,131 274,131 474,131 531,762 531,762 731,762
43 1,323 198,606 271,620 271,620 471,620 573,582 573,582 773,582
44 1,323 209,925 264,682 264,682 464,682 616,885 616,885 816,885
45 1,323 221,811 252,535 252,535 452,535 661,426 661,426 861,426
46 1,323 234,290 234,269 234,269 434,269 706,924 706,924 906,924
47 1,323 247,393 208,749 208,749 408,749 753,017 753,017 953,017
48 1,323 261,152 174,502 174,502 374,502 799,280 799,280 999,280
48 1,323 275,599 129,375 129,375 329,375 846,275 846,275 1,046,275
50 1,323 290,767 69,777 69,777 269,777 893,821 893,821 1,093,821
</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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
2 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-32
<PAGE> 146
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 1,323 306,695 LAPSED LAPSED LAPSED 941,638 941,638 1,141,638
51 1,323 323,418 988,262 988,262 1,188,262
53 1,323 340,978 1,034,946 1,034,946 1,234,946
54 1,323 359,416 1,081,483 1,081,483 1,281,483
55 1,323 378,776 1,127,792 1,127,792 1,327,792
</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.
Age 45 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 45 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
2 Form # B1-98
Initial Modal Premium: $1,322.78-Premium Mode: Annual-Riders: None
D-33
<PAGE> 147
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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>
1 752 0 415 200,000 0 415 200,000 0 415 200,000
5 752 1,561 2,013 200,000 1,561 2,013 200,000 1,573 2,024 200,000
10 752 3,779 3,855 200,000 3,779 3,855 200,000 3,835 3,910 200,000
20 752 8,456 8,456 200,000 8,456 8,456 200,000 8,793 8,793 200,000
@ Age 70 752 4,569 4,569 200,000 4,569 4,569 200,000 9,758 9,758 200,000
@ 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 38 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 38 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 43 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
------------------------------------------------------
-------------------------
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>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 35 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $751.91-Premium Mode: Annual-Riders: None
D-34
<PAGE> 148
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 752 790 0 415 200,000 0 415 200,000 0 415 200,000
2 752 1,618 146 823 200,000 146 823 200,000 148 824 200,000
3 752 2,489 624 1,226 200,000 624 1,226 200,000 628 1,229 200,000
4 752 3,403 1,096 1,622 200,000 1,096 1,622 200,000 1,103 1,629 200,000
5 752 4,363 1,561 2,013 200,000 1,561 2,013 200,000 1,573 2,024 200,000
6 752 5,370 2,020 2,396 200,000 2,020 2,396 200,000 2,037 2,413 200,000
7 752 6,428 2,472 2,772 200,000 2,472 2,772 200,000 2,496 2,797 200,000
8 752 7,539 2,916 3,141 200,000 2,916 3,141 200,000 2,949 3,174 200,000
9 752 8,706 3,352 3,502 200,000 3,352 3,502 200,000 3,395 3,545 200,000
10 752 9,930 3,779 3,855 200,000 3,779 3,855 200,000 3,835 3,910 200,000
11 752 11,216 4,387 4,387 200,000 4,387 4,387 200,000 4,458 4,458 200,000
12 752 12,567 4,907 4,907 200,000 4,907 4,907 200,000 4,996 4,996 200,000
13 752 13,985 5,414 5,414 200,000 5,414 5,414 200,000 5,525 5,525 200,000
14 752 15,473 5,906 5,906 200,000 5,906 5,906 200,000 6,041 6,041 200,000
15 752 17,036 6,383 6,383 200,000 6,383 6,383 200,000 6,543 6,543 200,000
16 752 18,678 6,843 6,843 200,000 6,843 6,843 200,000 7,028 7,028 200,000
17 752 20,401 7,283 7,283 200,000 7,283 7,283 200,000 7,495 7,495 200,000
18 752 22,211 7,701 7,701 200,000 7,701 7,701 200,000 7,942 7,942 200,000
19 752 24,111 8,093 8,093 200,000 8,093 8,093 200,000 8,374 8,374 200,000
20 752 26,106 8,456 8,456 200,000 8,456 8,456 200,000 8,793 8,793 200,000
21 752 28,201 8,786 8,786 200,000 8,786 8,786 200,000 9,199 9,199 200,000
22 752 30,400 9,078 9,078 200,000 9,078 9,078 200,000 9,580 9,580 200,000
23 752 32,710 9,329 9,329 200,000 9,329 9,329 200,000 9,934 9,934 200,000
24 752 35,135 9,533 9,533 200,000 9,533 9,533 200,000 10,255 10,255 200,000
25 752 37,681 9,683 9,683 200,000 9,683 9,683 200,000 10,540 10,540 200,000
</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.
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 35 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $751.91-Premium Mode: Annual-Riders: None
D-35
<PAGE> 149
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 752 40,355 9,768 9,768 200,000 9,768 9,768 200,000 10,782 10,782 200,000
27 752 43,162 9,778 9,778 200,000 9,778 9,778 200,000 10,973 10,973 200,000
28 752 46,109 9,695 9,695 200,000 9,695 9,695 200,000 11,105 11,105 200,000
29 752 49,204 9,499 9,499 200,000 9,499 9,499 200,000 11,171 11,171 200,000
30 752 52,454 9,167 9,167 200,000 9,167 9,167 200,000 11,168 11,168 200,000
31 752 55,866 8,675 8,675 200,000 8,675 8,675 200,000 11,075 11,075 200,000
32 752 59,449 8,000 8,000 200,000 8,000 8,000 200,000 10,898 10,898 200,000
33 752 63,211 7,113 7,113 200,000 7,113 7,113 200,000 10,618 10,618 200,000
34 752 67,161 5,984 5,984 200,000 5,984 5,984 200,000 10,238 10,238 200,000
35 752 71,309 4,569 4,569 200,000 4,569 4,569 200,000 9,758 9,758 200,000
36 752 75,664 2,809 2,809 200,000 2,809 2,809 200,000 9,152 9,152 200,000
37 752 80,236 622 622 200,000 622 622 200,000 8,404 8,404 200,000
38 752 85,038 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 7,487 7,487 200,000
39 752 90,079 6,333 6,333 200,000
40 752 95,373 4,896 4,896 200,000
41 752 100,931 3,115 3,115 200,000
42 752 106,767 918 918 200,000
43 752 112,895 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.
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 35 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $751.91-Premium Mode: Annual-Riders: None
D-36
<PAGE> 150
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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>
1 752 0 415 200,000 0 447 200,000 0 447 200,000
5 752 1,561 2,013 200,000 1,995 2,446 200,000 2,008 2,459 200,000
10 752 3,779 3,855 200,000 5,405 5,481 200,000 5,472 5,547 200,000
20 752 8,456 8,456 200,000 15,963 15,963 200,000 16,429 16,429 200,000
@ Age 70 752 4,569 4,569 200,000 33,240 33,240 200,000 40,010 40,010 200,000
@ Age 85 752 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 33,873 33,873 200,000
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 38 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 46 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 53 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
------------------------------------------------------
-------------------------
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>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 35 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $751.91-Premium Mode: Annual-Riders: None
D-37
<PAGE> 151
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 752 790 0 415 200,000 0 447 200,000 0 447 200,000
2 752 1,618 146 823 200,000 237 914 200,000 239 915 200,000
3 752 2,489 624 1,226 200,000 801 1,402 200,000 805 1,406 200,000
4 752 3,403 1,096 1,622 200,000 1,387 1,913 200,000 1,394 1,920 200,000
5 752 4,363 1,561 2,013 200,000 1,995 2,446 200,000 2,008 2,459 200,000
6 752 5,370 2,020 2,396 200,000 2,628 3,004 200,000 2,647 3,023 200,000
7 752 6,428 2,472 2,772 200,000 3,284 3,585 200,000 3,311 3,612 200,000
8 752 7,539 2,916 3,141 200,000 3,965 4,191 200,000 4,003 4,229 200,000
9 752 8,706 3,352 3,502 200,000 4,672 4,823 200,000 4,723 4,874 200,000
10 752 9,930 3,779 3,855 200,000 5,405 5,481 200,000 5,472 5,547 200,000
11 752 11,216 4,387 4,387 200,000 6,361 6,361 200,000 6,447 6,447 200,000
12 752 12,567 4,907 4,907 200,000 7,278 7,278 200,000 7,387 7,387 200,000
13 752 13,985 5,414 5,414 200,000 8,232 8,232 200,000 8,371 8,371 200,000
14 752 15,473 5,906 5,906 200,000 9,224 9,224 200,000 9,395 9,395 200,000
15 752 17,036 6,383 6,383 200,000 10,255 10,255 200,000 10,460 10,460 200,000
16 752 18,678 6,843 6,843 200,000 11,323 11,323 200,000 11,566 11,566 200,000
17 752 20,401 7,283 7,283 200,000 12,430 12,430 200,000 12,713 12,713 200,000
18 752 22,211 7,701 7,701 200,000 13,573 13,573 200,000 13,902 13,902 200,000
19 752 24,111 8,093 8,093 200,000 14,751 14,751 200,000 15,140 15,140 200,000
20 752 26,106 8,456 8,456 200,000 15,963 15,963 200,000 16,429 16,429 200,000
21 752 28,201 8,786 8,786 200,000 17,206 17,206 200,000 17,773 17,773 200,000
22 752 30,400 9,078 9,078 200,000 18,477 18,477 200,000 19,164 19,164 200,000
23 752 32,710 9,329 9,329 200,000 19,774 19,774 200,000 20,601 20,601 200,000
24 752 35,135 9,533 9,533 200,000 21,093 21,093 200,000 22,082 22,082 200,000
25 752 37,681 9,683 9,683 200,000 22,428 22,428 200,000 23,604 23,604 200,000
</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.
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 35 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $751.91-Premium Mode: Annual-Riders: None
D-38
<PAGE> 152
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 752 40,355 9,768 9,768 200,000 23,770 23,770 200,000 25,163 25,163 200,000
27 752 43,162 9,778 9,778 200,000 25,110 25,110 200,000 26,754 26,754 200,000
28 752 46,109 9,695 9,695 200,000 26,431 26,431 200,000 28,373 28,373 200,000
29 752 49,204 9,499 9,499 200,000 27,714 27,714 200,000 30,012 30,012 200,000
30 752 52,454 9,167 9,167 200,000 28,937 28,937 200,000 31,672 31,672 200,000
31 752 55,866 8,675 8,675 200,000 30,076 30,076 200,000 33,336 33,336 200,000
32 752 59,449 8,000 8,000 200,000 31,107 31,107 200,000 35,009 35,009 200,000
33 752 63,211 7,113 7,113 200,000 32,002 32,002 200,000 36,677 36,677 200,000
34 752 67,161 5,984 5,984 200,000 32,728 32,728 200,000 38,344 38,344 200,000
35 752 71,309 4,569 4,569 200,000 33,240 33,240 200,000 40,010 40,010 200,000
36 752 75,664 2,809 2,809 200,000 33,479 33,479 200,000 41,656 41,656 200,000
37 752 80,236 622 622 200,000 33,364 33,364 200,000 43,269 43,269 200,000
38 752 85,038 LAPSED LAPSED LAPSED 32,788 32,788 200,000 44,827 44,827 200,000
39 752 90,079 31,621 31,621 200,000 46,276 46,276 200,000
40 752 95,373 29,708 29,708 200,000 47,577 47,577 200,000
41 752 100,931 26,869 26,869 200,000 48,680 48,680 200,000
42 752 106,767 22,898 22,898 200,000 49,525 49,525 200,000
43 752 112,895 17,543 17,543 200,000 50,041 50,041 200,000
44 752 119,329 10,485 10,485 200,000 50,140 50,140 200,000
45 752 126,085 1,295 1,295 200,000 49,720 49,720 200,000
46 752 133,179 LAPSED LAPSED LAPSED 48,652 48,652 200,000
47 752 140,627 46,793 46,793 200,000
48 752 148,448 43,964 43,964 200,000
49 752 156,660 39,798 39,798 200,000
50 752 165,282 33,873 33,873 200,000
</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.
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 35 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $751.91-Premium Mode: Annual-Riders: None
D-39
<PAGE> 153
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 752 174,336 25,743 25,743 200,000
52 752 183,842 14,688 14,688 200,000
53 752 193,824 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.
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 35 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $751.91-Premium Mode: Annual-Riders: None
D-40
<PAGE> 154
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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>
1 752 0 415 200,000 0 479 200,000 0 479 200,000
5 752 1,561 2,013 200,000 2,507 2,958 200,000 2,521 2,972 200,000
10 752 3,779 3,855 200,000 7,756 7,831 200,000 7,837 7,912 200,000
20 752 8,456 8,456 200,000 32,195 32,195 200,000 32,866 32,866 200,000
@ Age 70 752 4,569 4,569 200,000 163,025 163,025 200,000 171,179 171,179 200,000
@ Age 85 752 LAPSED LAPSED LAPSED 760,174 760,174 798,182 813,493 813,493 854,168
@ Age 90 752 LAPSED LAPSED LAPSED 1,230,455 1,230,455 1,291,978 1,339,849 1,339,849 1,406,841
</TABLE>
* Policy lapses in policy year 38 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
------------------------------------------------------
-------------------------
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>
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 35 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $751.91-Premium Mode: Annual-Riders: None
D-41
<PAGE> 155
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 752 790 0 415 200,000 0 479 200,000 0 479 200,000
2 752 1,618 146 823 200,000 332 1,009 200,000 334 1,010 200,000
3 752 2,489 624 1,226 200,000 993 1,595 200,000 997 1,599 200,000
4 752 3,403 1,096 1,622 200,000 1,716 2,242 200,000 1,724 2,250 200,000
5 752 4,363 1,561 2,013 200,000 2,507 2,958 200,000 2,521 2,972 200,000
6 752 5,370 2,020 2,396 200,000 3,373 3,749 200,000 3,394 3,770 200,000
7 752 6,428 2,472 2,772 200,000 4,322 4,623 200,000 4,353 4,654 200,000
8 752 7,539 2,916 3,141 200,000 5,363 5,588 200,000 5,407 5,632 200,000
9 752 8,706 3,352 3,502 200,000 6,504 6,654 200,000 6,564 6,715 200,000
10 752 9,930 3,779 3,855 200,000 7,756 7,831 200,000 7,837 7,912 200,000
11 752 11,216 4,387 4,387 200,000 9,334 9,334 200,000 9,439 9,439 200,000
12 752 12,567 4,907 4,907 200,000 10,992 10,992 200,000 11,129 11,129 200,000
13 752 13,985 5,414 5,414 200,000 12,824 12,824 200,000 12,999 12,999 200,000
14 752 15,473 5,906 5,906 200,000 14,846 14,846 200,000 15,065 15,065 200,000
15 752 17,036 6,383 6,383 200,000 17,077 17,077 200,000 17,347 17,347 200,000
16 752 18,678 6,843 6,843 200,000 19,540 19,540 200,000 19,866 19,866 200,000
17 752 20,401 7,283 7,283 200,000 22,256 22,256 200,000 22,647 22,647 200,000
18 752 22,211 7,701 7,701 200,000 25,252 25,252 200,000 25,716 25,716 200,000
19 752 24,111 8,093 8,093 200,000 28,555 28,555 200,000 29,110 29,110 200,000
20 752 26,106 8,456 8,456 200,000 32,195 32,195 200,000 32,866 32,866 200,000
21 752 28,201 8,786 8,786 200,000 36,207 36,207 200,000 37,024 37,024 200,000
22 752 30,400 9,078 9,078 200,000 40,628 40,628 200,000 41,618 41,618 200,000
23 752 32,710 9,329 9,329 200,000 45,500 45,500 200,000 46,694 46,694 200,000
24 752 35,135 9,533 9,533 200,000 50,872 50,872 200,000 52,302 52,302 200,000
25 752 37,681 9,683 9,683 200,000 56,793 56,793 200,000 58,497 58,497 200,000
</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.
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 35 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $751.91-Premium Mode: Annual-Riders: None
D-42
<PAGE> 156
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 752 40,355 9,768 9,768 200,000 63,321 63,321 200,000 65,341 65,341 200,000
27 752 43,162 9,778 9,778 200,000 70,518 70,518 200,000 72,902 72,902 200,000
28 752 46,109 9,695 9,695 200,000 78,452 78,452 200,000 81,259 81,259 200,000
29 752 49,204 9,499 9,499 200,000 87,201 87,201 200,000 90,500 90,500 200,000
30 752 52,454 9,167 9,167 200,000 96,852 96,852 200,000 100,726 100,726 200,000
31 752 55,866 8,675 8,675 200,000 107,511 107,511 200,000 112,045 112,045 200,000
32 752 59,449 8,000 8,000 200,000 119,300 119,300 200,000 124,593 124,593 200,000
33 752 63,211 7,113 7,113 200,000 132,364 132,364 200,000 138,512 138,512 200,000
34 752 67,161 5,984 5,984 200,000 146,872 146,872 200,000 153,977 153,977 200,000
35 752 71,309 4,569 4,569 200,000 163,025 163,025 200,000 171,179 171,179 200,000
36 752 75,664 2,809 2,809 200,000 181,046 181,046 208,203 190,289 190,289 218,832
37 752 80,236 622 622 200,000 201,035 201,035 227,170 211,463 211,463 238,953
38 752 85,038 LAPSED LAPSED LAPSED 223,156 223,156 247,703 234,925 234,925 260,767
39 752 90,079 247,651 247,651 269,939 260,926 260,926 284,410
40 752 95,373 274,799 274,799 294,035 289,752 289,752 310,035
41 752 100,931 304,931 304,931 320,178 321,726 321,726 337,813
42 752 106,767 338,214 338,214 355,125 357,119 357,119 374,975
43 752 112,895 374,958 374,958 393,705 396,285 396,285 416,100
44 752 119,329 415,497 415,497 436,272 439,612 439,612 461,593
45 752 126,085 460,195 460,195 483,204 487,525 487,525 511,902
46 752 133,179 509,433 509,433 534,904 540,487 540,487 567,511
47 752 140,627 563,616 563,616 591,797 599,003 599,003 628,953
48 752 148,448 623,168 623,168 654,327 663,624 663,624 696,805
49 752 156,660 688,532 688,532 722,959 734,917 734,917 771,663
50 752 165,282 760,174 760,174 798,182 813,493 813,493 854,168
</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.
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 35 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $751.91-Premium Mode: Annual-Riders: None
D-43
<PAGE> 157
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 752 174,336 838,582 838,582 880,511 900,025 900,025 945,027
52 752 183,842 924,272 924,272 970,485 995,200 995,200 1,044,960
53 752 193,824 1,017,777 1,017,777 1,068,666 1,099,744 1,099,744 1,154,731
54 752 204,305 1,119,652 1,119,652 1,175,635 1,214,374 1,214,374 1,275,092
55 752 215,309 1,230,455 1,230,455 1,291,978 1,339,849 1,339,849 1,406,841
56 752 226,864 1,350,734 1,350,734 1,418,270 1,476,940 1,476,940 1,550,787
57 752 238,997 1,484,677 1,484,677 1,544,065 1,628,917 1,628,917 1,694,074
58 752 251,737 1,634,684 1,634,684 1,683,724 1,798,125 1,798,125 1,852,069
59 752 265,113 1,803,765 1,803,765 1,839,840 1,987,683 1,987,683 2,027,437
60 752 279,158 1,995,876 1,995,876 2,015,834 2,201,195 2,201,195 2,223,207
61 752 293,905 2,207,418 2,207,418 2,229,492 2,437,203 2,437,203 2,461,575
62 752 309,390 2,439,451 2,439,451 2,463,846 2,697,915 2,697,915 2,724,894
63 752 325,649 2,691,617 2,691,617 2,718,533 2,985,983 2,985,983 3,015,843
64 752 342,721 2,965,892 2,965,892 2,995,551 3,304,205 3,304,205 3,337,247
65 752 360,647 3,268,046 3,268,046 3,300,726 3,655,673 3,655,673 3,692,230
</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.
Age 35 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 35 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $751.91-Premium Mode: Annual-Riders: None
D-44
<PAGE> 158
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 2,305 0 1,634 200,000 0 1,634 200,000 0 1,634 200,000
5 2,305 6,286 7,669 200,000 6,286 7,669 200,000 6,585 7,969 200,000
10 2,305 13,364 13,594 200,000 13,364 13,594 200,000 15,100 15,330 200,000
20 2,305 13,343 13,343 200,000 13,343 13,343 200,000 28,269 28,269 200,000
@ Age 70 2,305 17,750 17,750 200,000 17,750 17,750 200,000 23,530 23,530 200,000
@ Age 85 2,305 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 4,225 4,225 200,000
@ 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 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
------------------------------------------------------
-------------------------
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>
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 55 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $2,305.37-Premium Mode: Annual-Riders: None
D-45
<PAGE> 159
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,305 2,421 0 1,634 200,000 0 1,634 200,000 0 1,634 200,000
2 2,305 4,962 1,142 3,216 200,000 1,142 3,216 200,000 1,174 3,248 200,000
3 2,305 7,631 2,909 4,753 200,000 2,909 4,753 200,000 2,999 4,843 200,000
4 2,305 10,433 4,626 6,239 200,000 4,626 6,239 200,000 4,803 6,417 200,000
5 2,305 13,376 6,286 7,669 200,000 6,286 7,669 200,000 6,585 7,969 200,000
6 2,305 16,465 7,881 9,034 200,000 7,881 9,034 200,000 8,344 9,497 200,000
7 2,305 19,709 9,402 10,324 200,000 9,402 10,324 200,000 10,078 11,000 200,000
8 2,305 23,115 10,834 11,526 200,000 10,834 11,526 200,000 11,784 12,475 200,000
9 2,305 26,691 12,162 12,623 200,000 12,162 12,623 200,000 13,459 13,920 200,000
10 2,305 30,447 13,364 13,594 200,000 13,364 13,594 200,000 15,100 15,330 200,000
11 2,305 34,389 14,822 14,822 200,000 14,822 14,822 200,000 17,100 17,100 200,000
12 2,305 38,530 15,878 15,878 200,000 15,878 15,878 200,000 18,818 18,818 200,000
13 2,305 42,877 16,737 16,737 200,000 16,737 16,737 200,000 20,476 20,476 200,000
14 2,305 47,441 17,373 17,373 200,000 17,373 17,373 200,000 22,052 22,052 200,000
15 2,305 52,234 17,750 17,750 200,000 17,750 17,750 200,000 23,530 23,530 200,000
16 2,305 57,266 17,817 17,817 200,000 17,817 17,817 200,000 24,860 24,860 200,000
17 2,305 62,550 17,509 17,509 200,000 17,509 17,509 200,000 26,019 26,019 200,000
18 2,305 68,098 16,736 16,736 200,000 16,736 16,736 200,000 26,973 26,973 200,000
19 2,305 73,924 15,389 15,389 200,000 15,389 15,389 200,000 27,731 27,731 200,000
20 2,305 80,041 13,343 13,343 200,000 13,343 13,343 200,000 28,269 28,269 200,000
21 2,305 86,463 10,455 10,455 200,000 10,455 10,455 200,000 28,562 28,562 200,000
22 2,305 93,207 6,567 6,567 200,000 6,567 6,567 200,000 28,523 28,523 200,000
23 2,305 100,288 1,495 1,495 200,000 1,495 1,495 200,000 28,086 28,086 200,000
24 2,305 107,723 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 27,168 27,168 200,000
25 2,305 115,530 25,674 25,674 200,000
</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.
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 55 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $2,305.37-Premium Mode: Annual-Riders: None
D-46
<PAGE> 160
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 2,305 123,727 23,490 23,490 200,000
27 2,305 132,334 20,485 20,485 200,000
28 2,305 141,371 16,504 16,504 200,000
29 2,305 150,861 11,212 11,212 200,000
30 2,305 160,824 4,225 4,225 200,000
31 2,305 171,286 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.
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 55 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $2,305.37-Premium Mode: Annual-Riders: None
D-47
<PAGE> 161
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 2,305 0 1,634 200,000 0 1,745 200,000 0 1,745 200,000
5 2,305 6,286 7,669 200,000 7,882 9,265 200,000 8,208 9,592 200,000
10 2,305 13,364 13,594 200,000 19,314 19,545 200,000 21,338 21,568 200,000
20 2,305 13,343 13,343 200,000 37,968 37,968 200,000 56,620 56,620 200,000
@ Age 70 2,305 17,750 17,750 200,000 31,265 31,265 200,000 38,300 38,300 200,000
@ Age 85 2,305 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 83,867 83,867 200,000
@ Age 90 2,305 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 63,619 63,619 200,000
</TABLE>
* Policy lapses in policy year 24 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 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
------------------------------------------------------
-------------------------
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>
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 55 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $2,305.37-Premium Mode: Annual-Riders: None
D-48
<PAGE> 162
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,305 2,421 0 1,634 200,000 0 1,745 200,000 0 1,745 200,000
2 2,305 4,962 1,142 3,216 200,000 1,465 3,540 200,000 1,498 3,573 200,000
3 2,305 7,631 2,909 4,753 200,000 3,549 5,394 200,000 3,644 5,488 200,000
4 2,305 10,433 4,626 6,239 200,000 5,689 7,303 200,000 5,879 7,493 200,000
5 2,305 13,376 6,286 7,669 200,000 7,882 9,265 200,000 8,208 9,592 200,000
6 2,305 16,465 7,881 9,034 200,000 10,120 11,273 200,000 10,633 11,786 200,000
7 2,305 19,709 9,402 10,324 200,000 12,397 13,319 200,000 13,157 14,079 200,000
8 2,305 23,115 10,834 11,526 200,000 14,699 15,391 200,000 15,781 16,472 200,000
9 2,305 26,691 12,162 12,623 200,000 17,011 17,472 200,000 18,507 18,968 200,000
10 2,305 30,447 13,364 13,594 200,000 19,314 19,545 200,000 21,338 21,568 200,000
11 2,305 34,389 14,822 14,822 200,000 22,004 22,004 200,000 24,686 24,686 200,000
12 2,305 38,530 15,878 15,878 200,000 24,432 24,432 200,000 27,923 27,923 200,000
13 2,305 42,877 16,737 16,737 200,000 26,804 26,804 200,000 31,281 31,281 200,000
14 2,305 47,441 17,373 17,373 200,000 29,094 29,094 200,000 34,743 34,743 200,000
15 2,305 52,234 17,750 17,750 200,000 31,265 31,265 200,000 38,300 38,300 200,000
16 2,305 57,266 17,817 17,817 200,000 33,268 33,268 200,000 41,911 41,911 200,000
17 2,305 62,550 17,509 17,509 200,000 35,037 35,037 200,000 45,561 45,561 200,000
18 2,305 68,098 16,736 16,736 200,000 36,485 36,485 200,000 49,224 49,224 200,000
19 2,305 73,924 15,389 15,389 200,000 37,503 37,503 200,000 52,915 52,915 200,000
20 2,305 80,041 13,343 13,343 200,000 37,968 37,968 200,000 56,620 56,620 200,000
21 2,305 86,463 10,455 10,455 200,000 37,736 37,736 200,000 60,328 60,328 200,000
22 2,305 93,207 6,567 6,567 200,000 36,649 36,649 200,000 63,976 63,976 200,000
23 2,305 100,288 1,495 1,495 200,000 34,515 34,515 200,000 67,520 67,520 200,000
24 2,305 107,723 LAPSED LAPSED LAPSED 31,096 31,096 200,000 70,910 70,910 200,000
25 2,305 115,530 26,073 26,073 200,000 74,089 74,089 200,000
</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.
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 55 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $2,305.37-Premium Mode: Annual-Riders: None
D-49
<PAGE> 163
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 2,305 123,727 19,003 19,003 200,000 76,992 76,992 200,000
27 2,305 132,334 9,270 9,270 200,000 79,547 79,547 200,000
28 2,305 141,371 LAPSED LAPSED LAPSED 81,647 81,647 200,000
29 2,305 150,861 83,183 83,183 200,000
30 2,305 160,824 83,867 83,867 200,000
31 2,305 171,286 83,537 83,537 200,000
32 2,305 182,271 81,870 81,870 200,000
33 2,305 193,805 78,458 78,458 200,000
34 2,305 205,916 72,651 72,651 200,000
35 2,305 218,633 63,619 63,619 200,000
36 2,305 231,985 50,164 50,164 200,000
37 2,305 246,005 30,482 30,482 200,000
38 2,305 260,726 1,804 1,804 200,000
39 2,305 276,183 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.
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 55 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $2,305.37-Premium Mode: Annual-Riders: None
D-50
<PAGE> 164
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 2,305 0 1,634 200,000 0 1,855 200,000 0 1,855 200,000
5 2,305 6,286 7,669 200,000 9,757 11,140 200,000 10,113 11,496 200,000
10 2,305 13,364 13,594 200,000 27,938 28,169 200,000 30,303 30,533 200,000
20 2,305 13,343 13,343 200,000 95,873 95,873 200,000 118,811 118,811 200,000
@ Age 70 2,305 17,750 17,750 200,000 55,748 55,748 200,000 64,339 64,339 200,000
@ Age 85 2,305 LAPSED LAPSED LAPSED 269,847 269,847 283,339 363,140 363,140 381,297
@ Age 90 2,305 LAPSED LAPSED LAPSED 449,303 449,303 471,768 610,796 610,796 641,336
</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
------------------------------------------------------
-------------------------
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>
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 55 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $2,305.37-Premium Mode: Annual-Riders: None
D-51
<PAGE> 165
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,305 2,421 0 1,634 200,000 0 1,855 200,000 0 1,855 200,000
2 2,305 4,962 1,142 3,216 200,000 1,802 3,877 200,000 1,836 3,911 200,000
3 2,305 7,631 2,909 4,753 200,000 4,244 6,088 200,000 4,343 6,187 200,000
4 2,305 10,433 4,626 6,239 200,000 6,890 8,504 200,000 7,093 8,707 200,000
5 2,305 13,376 6,286 7,669 200,000 9,757 11,140 200,000 10,113 11,496 200,000
6 2,305 16,465 7,881 9,034 200,000 12,861 14,013 200,000 13,429 14,582 200,000
7 2,305 19,709 9,402 10,324 200,000 16,217 17,139 200,000 17,071 17,993 200,000
8 2,305 23,115 10,834 11,526 200,000 19,839 20,531 200,000 21,073 21,764 200,000
9 2,305 26,691 12,162 12,623 200,000 23,742 24,203 200,000 25,470 25,931 200,000
10 2,305 30,447 13,364 13,594 200,000 27,938 28,169 200,000 30,303 30,533 200,000
11 2,305 34,389 14,822 14,822 200,000 32,876 32,876 200,000 36,043 36,043 200,000
12 2,305 38,530 15,878 15,878 200,000 37,958 37,958 200,000 42,121 42,121 200,000
13 2,305 42,877 16,737 16,737 200,000 43,443 43,443 200,000 48,828 48,828 200,000
14 2,305 47,441 17,373 17,373 200,000 49,362 49,362 200,000 56,212 56,212 200,000
15 2,305 52,234 17,750 17,750 200,000 55,748 55,748 200,000 64,339 64,339 200,000
16 2,305 57,266 17,817 17,817 200,000 62,632 62,632 200,000 73,259 73,259 200,000
17 2,305 62,550 17,509 17,509 200,000 70,047 70,047 200,000 83,055 83,055 200,000
18 2,305 68,098 16,736 16,736 200,000 78,027 78,027 200,000 93,818 93,818 200,000
19 2,305 73,924 15,389 15,389 200,000 86,614 86,614 200,000 105,690 105,690 200,000
20 2,305 80,041 13,343 13,343 200,000 95,873 95,873 200,000 118,811 118,811 200,000
21 2,305 86,463 10,455 10,455 200,000 105,903 105,903 200,000 133,348 133,348 200,000
22 2,305 93,207 6,567 6,567 200,000 116,842 116,842 200,000 149,483 149,483 200,000
23 2,305 100,288 1,495 1,495 200,000 128,887 128,887 200,000 167,456 167,456 200,000
24 2,305 107,723 LAPSED LAPSED LAPSED 142,302 142,302 200,000 187,572 187,572 200,000
25 2,305 115,530 157,441 157,441 200,000 210,048 210,048 220,550
</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.
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 55 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $2,305.37-Premium Mode: Annual-Riders: None
D-52
<PAGE> 166
LIFE INSURANCE ILLUSTRATION
MONY Custom Estate Master
LAST SURVIVOR 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 OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 2,305 123,727 174,786 174,786 200,000 234,902 234,902 246,647
27 2,305 132,334 194,991 194,991 204,740 262,373 262,373 275,491
28 2,305 141,371 217,658 217,658 228,541 292,719 292,719 307,355
29 2,305 150,861 242,550 242,550 254,678 326,211 326,211 342,522
30 2,305 160,824 269,847 269,847 283,339 363,140 363,140 381,297
31 2,305 171,286 299,736 299,736 314,723 403,822 403,822 424,013
32 2,305 182,271 332,418 332,418 349,038 448,585 448,585 471,014
33 2,305 193,805 368,096 368,096 386,501 497,771 497,771 522,660
34 2,305 205,916 406,986 406,986 427,336 551,722 551,722 579,308
35 2,305 218,633 449,303 449,303 471,768 610,796 610,796 641,336
36 2,305 231,985 495,259 495,259 520,022 675,360 675,360 709,128
37 2,305 246,005 546,403 546,403 568,259 746,901 746,901 776,777
38 2,305 260,726 603,639 603,639 621,749 826,512 826,512 851,307
39 2,305 276,183 668,106 668,106 681,468 915,645 915,645 933,958
40 2,305 292,412 741,295 741,295 748,708 1,015,985 1,015,985 1,026,145
41 2,305 309,454 821,896 821,896 830,114 1,126,899 1,126,899 1,138,168
42 2,305 327,347 910,317 910,317 919,421 1,249,425 1,249,425 1,261,919
43 2,305 346,135 1,006,441 1,006,441 1,016,506 1,384,810 1,384,810 1,398,658
44 2,305 365,862 1,111,017 1,111,017 1,122,127 1,534,369 1,534,369 1,549,712
45 2,305 386,576 1,226,223 1,226,223 1,238,485 1,699,554 1,699,554 1,716,549
</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.
Age 55 Male Non-Smoker Preferred Prepared On: 09/11/1998
Age 55 Female Non-Smoker Preferred Version 98.09.01
Specified Amount: $200,000-Death Benefit Option: Specified Amount for Option
1 Form # B1-98
Initial Modal Premium: $2,305.37-Premium Mode: Annual-Riders: None
D-53
<PAGE> 167
The complete registration statement and other filed documents for MONY America
Variable Account L can be reviewed and copied at the Securities and Exchange
Commission's Public Reference Room in Washington, D.C. You may get information
on the operation of the public reference room by calling the Securities and
Exchange Commission at 1-800-SEC-0330. The registration statement and other
filed documents for MONY America Variable Account L are available on the
Securities and Exchange Commission's Internet site at http://www.sec.gov. You
may get copies of this information by paying a duplicating fee, and writing the
Public Reference Section of the Securities and Exchange Commission, Washington,
D.C. 20549-6009.
<PAGE> 168
Bulk Rate
U.S. Postage
P A I D
Permit No. 8048
New York,
New York
MONY Life Insurance Company of America
Administrative Offices
1740 Broadway, New York, NY 10019
[THE MONY GROUP LOGO]
MONY Life Insurance Company of America and
MONY
Securities Corporation are members of The
MONY Group
- --------------------------------------------------------------------------------
Form No. 14430 SL 5/00
