<PAGE> 1
REGISTRATION NO. 333-56969
REGISTRATION NO. 811-4235
--------------------------------------------------------------------------------
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-6
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933 [X]
OF SECURITIES OF UNIT
INVESTMENT TRUSTS REGISTERED ON FORM N-8B-2
PRE-EFFECTIVE AMENDMENT NO.
POST-EFFECTIVE AMENDMENT NO. 7
MONY AMERICA VARIABLE ACCOUNT L
(Exact Name of Trust)
MONY LIFE INSURANCE COMPANY OF AMERICA
(Name of Depositor)
1740 BROADWAY
NEW YORK, NEW YORK 10019
(Address of Principal Executive Office)
FREDERICK C. TEDESCHI, ESQ.
VICE PRESIDENT AND CHIEF COUNSEL-OPERATIONS
MONY LIFE INSURANCE COMPANY
1740 BROADWAY
NEW YORK, NEW YORK 10019
(Name and Address of Agent for Service)
It is proposed that this filing become effective on March 1, 2001 pursuant
to Rule 485(a).
---------------
STATEMENT PURSUANT TO RULE 24f-2
The Registrant registers an indefinite number or amount of its variable
life insurance contracts under the Securities Act of 1933 pursuant to Rule 24f-2
under the Investment Company Act of 1940. The Rule 24f-2 notice for Registrant's
fiscal year ending December 31, 1999 was filed on March 29, 2000.
--------------------------------------------------------------------------------
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<PAGE> 2
CROSS REFERENCE TO ITEMS REQUIRED BY FORM N-8B-2
<TABLE>
<CAPTION>
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
----------- ---------------------
<S> <C>
1.......................................... Cover Page
2.......................................... Cover Page
3.......................................... Not Applicable
4.......................................... DISTRIBUTION OF THE POLICY
5.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
6.......................................... MONY America Variable Account L
7.......................................... Not required
8.......................................... Not required
9.......................................... Legal Proceedings
10.......................................... THE POLICY; INFORMATION ABOUT THE COMPANY AND THE
VARIABLE ACCOUNT; CHARGES AND DEDUCTIONS; OTHER
INFORMATION; VOTING OF FUND SHARES; MORE ABOUT THE
POLICY
11.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE FUNDS; PURCHASE OF PORTFOLIO SHARES BY THE
VARIABLE ACCOUNT
12.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE FUNDS; PURCHASE OF PORTFOLIO SHARES BY THE
VARIABLE ACCOUNT
13.......................................... THE POLICY; CHARGES AND DEDUCTIONS; THE FUNDS
14.......................................... THE POLICY
15.......................................... THE POLICY
16.......................................... THE FUNDS; THE POLICY; INFORMATION ABOUT THE COMPANY AND
THE VARIABLE ACCOUNT
17.......................................... THE POLICY
18.......................................... THE FUNDS; THE POLICY; INFORMATION ABOUT COMPANY AND THE
VARIABLE ACCOUNT
19.......................................... VOTING OF FUND SHARES; MORE ABOUT THE POLICY
20.......................................... Not applicable
21.......................................... THE POLICY
22.......................................... Not applicable
23.......................................... Not applicable
24.......................................... IMPORTANT TERMS; MORE ABOUT THE POLICY
25.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
26.......................................... Not applicable
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
----------- ---------------------
<S> <C>
27.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
28.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
29.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
30.......................................... Not applicable
31.......................................... Not applicable
32.......................................... Not applicable
33.......................................... Not applicable
34.......................................... Not applicable
35.......................................... MORE ABOUT THE POLICY
36.......................................... Not applicable
37.......................................... Not applicable
38.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
MORE ABOUT THE POLICY
39.......................................... MORE ABOUT THE POLICY
40.......................................... Not applicable
41.......................................... MORE ABOUT THE POLICY
42.......................................... Not applicable
43.......................................... Not applicable
44.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE POLICY; MORE ABOUT THE POLICY
45.......................................... Not applicable
46.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE POLICY; MORE ABOUT THE POLICY
47.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE POLICY; MORE ABOUT THE POLICY
48.......................................... Not applicable
49.......................................... Not applicable
50.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
51.......................................... Cover Page; INFORMATION ABOUT THE COMPANY AND THE
VARIABLE ACCOUNT; THE POLICY; MORE ABOUT THE POLICY
52.......................................... OTHER INFORMATION
53.......................................... OTHER INFORMATION
54.......................................... Not applicable
55.......................................... Not applicable
56.......................................... Not required
57.......................................... Not required
58.......................................... Not required
59.......................................... FINANCIAL STATEMENTS
</TABLE>
2
<PAGE> 4
PART I
(INFORMATION REQUIRED IN A PROSPECTUS)
<PAGE> 5
SUPPLEMENT DATED MARCH 1, 2000
TO
PROSPECTUS DATED MAY 1, 2000
FOR
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY AMERICA VARIABLE ACCOUNT L
Effective March 1, 2000 this Supplement updates certain information contained in
your Prospectus. Please read it and keep it with your prospectus for future
reference.
1. THE ADDITION OF AN ADDITIONAL TERM LIFE INSURANCE RIDER REVISES THE
DESCRIPTION OF THE TWO DEATH BENEFIT OPTIONS ON PAGES 7 AND 8 TO READ AS
FOLLOWS:
Option 1 -- The death benefit equals the greater of
(a) the Specified Amount plus Additional Term Life Insurance, if any, or
(b) Fund Value multiplied by a death benefit percentage.
The death benefit percentage varies according to the definition of life
insurance chosen. If the Guideline Premium/Cash Value Corridor Test is
chosen, the death benefit percentages vary according to age. If the Cash
Value Accumulation Test is chosen, the death benefit percentages vary
according to age, gender and smoking status.
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 plus the Additional Term Life Insurance, if
any, plus the Fund Value, or
(b) the Fund Value multiplied by a death benefit percentage.
The death benefit percentage varies according to the definition of life
insurance chosen. If the Guideline Premium/Cash Value Corridor Test is
chosen, the death benefit percentages vary according to age. If the Cash
Value Accumulation Test is chosen, the death benefit percentages vary
according to age, gender and smoking status.
If you choose Option 2, favorable investment performance will increase
the Fund Value of the policy which in turn increases insurance coverage.
2. THE SECOND AND THIRD PARAGRAPHS ON PAGE 10 ARE AMENDED TO READ AS FOLLOWS:
In addition, we calculate each month whether you have paid the premiums
required to be paid by your Guaranteed Death Benefit Rider or your Guaranteed
Death Benefit to Age 100 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 policy.
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
premium payments required by the Guaranteed Death Benefit Rider or the
Guaranteed Death Benefit to Age 100 Rider.
1
<PAGE> 6
3. THE SECTION ENTITLED "RIDERS" ON PAGE 10 IS AMENDED TO READ AS FOLLOWS:
Additional optional insurance benefits may be added to the policy by an
addendum called a rider. There are eleven riders available with this policy:
- Guaranteed Death Benefit Rider
- Guaranteed Death Benefit to Age 100 Rider
- Spouse's Yearly Renewable Term Rider
- Additional Term Life Insurance Rider
- Children's Term Life Insurance Rider
- Accidental Death and Dismemberment Rider
- Purchase Option Rider
- Waiver of Monthly Deduction Rider
- Waiver of Specified Premium Rider
- Term Life Term Rider
- Maturity Extension Rider
4. A NEW SECOND PARAGRAPH IS ADDED TO THE SECTION ENTITLED "SCHEDULED PREMIUM
PAYMENTS" ON PAGE 27 TO READ AS FOLLOWS:
You must specify the subaccounts and/or Guaranteed Interest Account and
the percentage of scheduled premium payments to be allocated to those
subaccounts and/or Guaranteed Interest Account. If we do not receive a valid
set of allocation instructions from you, scheduled premiums will be allocated
to the Money Market Subaccount.
5. A NEW SECTION IS ADDED ABOVE THE SECTION ENTITLED "GUARANTEED DEATH BENEFIT"
ON PAGE 27 TO READ AS FOLLOWS:
CHOICE OF DEFINITION OF LIFE INSURANCE
When applying for the policy, you will choose one of two tests to apply
to the policy for compliance with the Federal tax law definition of life
insurance. These tests are the Cash Value Accumulation Test and the Guideline
Premium/Cash Value Corridor Test. The death benefit percentage applied to the
policy varies according to the definition of life insurance chosen. See
"Federal Income Tax Considerations -- Definition of Life Insurance," on page
48. If you elect the Guaranteed Death Benefit to Age 100 Rider, you do not
get to choose your definition of life insurance. Electing this rider will
automatically give you the Cash Value Accumulation Test definition of life
insurance.
6. THE LAST PARAGRAPH UNDER "GUARANTEED DEATH BENEFIT" ON PAGE 27 IS DELETED AND
THE AMENDED SECTION BECOMES A SUBSECTION UNDER THE HEADING "GUARANTEED DEATH
BENEFIT RIDER" ON PAGE 32.
7. NUMBERS (2) AND (3) UNDER "PREMIUM PAYMENTS AFFECT THE CONTINUATION OF THE
POLICY" ON PAGE 28 ARE AMENDED TO READ AS FOLLOWS:
(2) you have purchased the Guaranteed Death Benefit Rider or the
Guaranteed Death Benefit to Age 100 Rider and you have met all the
requirements of the applicable rider; or
(3) 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.
If you elected the Guaranteed Death Benefit to Age 100 Rider, this provision
does not apply.
2
<PAGE> 7
8. THE DESCRIPTION OF OPTION 1 AND OPTION 2 ON PAGE 29 IS REVISED TO READ AS
FOLLOWS:
Option 1 -- The death benefit equals the greater of
(a) the Specified Amount plus Additional Term Life Insurance, if any, or
(b) the Fund Value on the date of death multiplied by the death benefit
percentage.
The death benefit percentage varies according to the definition of life
insurance chosen. If the Guideline Premium/Cash Value Corridor Test is
chosen, the death benefit percentages vary according to attained age. If the
Cash Value Accumulation Test is chosen, the death benefit percentages vary
according to attained age, gender and smoking status. See "Federal Income Tax
Considerations -- Definition of Life Insurance," page 48. 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 plus Additional Term Life Insurance, if any,
plus the Fund Value, or
(b) the Fund Value on the date of death multiplied by the death benefit
percentage.
The death benefit percentage varies according to the definition of life
insurance chosen. If the Guideline Premium/Cash Value Corridor Test is
chosen, the death benefit percentages vary according to attained age. If the
Cash Value Accumulation Test is chosen, the death benefit percentages vary
according to attained age, gender and smoking status. 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.
9. "EXAMPLES OF OPTIONS 1 AND 2" ON PAGES 29-30 ARE AMENDED TO READ AS FOLLOWS:
Examples of Options 1 and 2
The following examples demonstrate the determination of death benefits
under Options 1 and 2. The examples show four policies with the same
Specified Amount, but Fund Values and the Additional Term Life Insurance vary
as shown. It is assumed that the insured is a male age 35, standard class,
non-smoker at issue. It is also assumed that the insured is age 65 at the
time of death and that there is no Outstanding Debt. The date of death is
also assumed to be on a monthly anniversary day.
Cash Value Accumulation Test
<TABLE>
<CAPTION>
Policy 1 Policy 2 Policy 3 Policy 4
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Specified Amount $100,000 $100,000 $100,000 $100,000
Additional Term Life Insurance Rider $ 0 $ 0 $ 0 $ 75,000
Fund Value on Date of Death $ 35,000 $ 60,000 $ 85,000 $ 60,000
Death Benefit Percentage 178.4% 178.4% 178.4% 178.4%
Death Benefit under Option 1 $100,000 $107,040 $151,640 $175,000
Death Benefit under Option 2 $135,000 $160,000 $185,000 $235,000
</TABLE>
<TABLE>
<S> <C>
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 178.4% = $62,440).
Option 1, Policy 2 and 3: The death benefit is equal to the Fund Value multiplied by
the death benefit percentage since
($60,000 X 178.4% = $107,040) for Policy 2;
$85,000 X 178.4% = $151,640 for Policy 3) is greater than
the Specified Amount ($100,000).
</TABLE>
3
<PAGE> 8
<TABLE>
<S> <C>
Option 1, Policy 4: The Death Benefit is equals $175,000 (the sum of the Specified Amount plus the
Additional Term Life Insurance), since the death benefit is the greater of the
Specified Amount plus the Additional Term Life Insurance
($100,000 + $75,000 = $175,000) or the Fund Value multiplied by the death benefit
percentage ($60,000 X 178.4% = $107,040).
Option 2, Policy 1, 2, and 3: The death benefit equals the Specified Amount plus the Fund Value
($100,000 + $35,000 = $135,000 for Policy 1; $100,000 + $60,000 = $160,000 for
Policy 2; and $100,000 + $85,000 = $185,000 for Policy 3) since it is greater than
the Fund Value multiplied by the death benefit percentage
($35,000 X 178.4% = $62,440 for Policy 1; $60,000 X 178.4% = $107,040 for Policy 2;
and $85,000 X 178.4% = $151,640 for Policy 3).
Option 2, Policy 4: The death benefit equals the Specified Amount plus the Additional Term Life
Insurance plus the Fund Value ($100,000 + $75,000 + $60,000 = $235,000) since it is
greater than the Fund Value multiplied by the death benefit percentage
($60,000 X 178.4% = $107,040).
</TABLE>
Guideline Premium/Cash Value Corridor Test
Cash Value Accumulation Test
<TABLE>
<CAPTION>
Policy 1 Policy 2 Policy 3 Policy 4
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Specified Amount $100,000 $100,000 $100,000 $100,000
Additional Term Life Insurance Rider $ 0 $ 0 $ 0 $ 75,000
Fund Value on Date of Death $ 35,000 $ 60,000 $ 85,000 $ 60,000
Death Benefit Percentage 120% 120% 120% 120%
Death Benefit under Option 1 $100,000 $100,000 $102,000 $175,000
Death Benefit under Option 2 $135,000 $160,000 $185,000 $235,000
</TABLE>
<TABLE>
<S> <C>
Option 1, Policy 1 and 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 120% = $42,000 for Policy 1 and
$60,000 X 120% = $72,000 for Policy 2).
Option 1, Policy 3: The death benefit is equal to the Fund Value multiplied by
the death benefit percentage since
($85,000 X 120% = $102,000) is greater than the Specified
Amount ($100,000).
Option 1, Policy 4: The Death Benefit equals $175,000 (the sum of the Specified
Amount plus the Additional Term Life Insurance), since the
death benefit is the greater of the Specified Amount plus
the Additional Term Life Insurance
($100,000 + $75,000 = $175,000) or the Fund Value multiplied
by the death benefit percentage ($60,000 X 120% = $72,000).
Option 2, Policy 1, 2, and 3: The death benefit equals the Specified Amount plus the Fund
Value ($100,000 + $35,000 = $135,000 for Policy 1;
$100,000 + $60,000 = $160,000 for Policy 2; and
$100,000 + $85,000 = $185,000 for Policy 3) since it is
greater than the Fund Value multiplied by the death benefit
percentage ($35,000 X 120% = $42,000 for Policy 1;
$60,000 X 120% = $72,000 for Policy 2; and
$85,000 X 120% = $102,000 for Policy 3).
Option 2, Policy 4: The death benefit equals the Specified Amount plus the
Additional Term Life Insurance plus the Fund Value
($100,000 + $75,000 + $60,000 = $235,000) since it is
greater than the Fund Value multiplied by the death benefit
percentage ($60,000 X 120% = $72,000).
</TABLE>
4
<PAGE> 9
10. THE FIFTH SENTENCE IN THE SECOND PARAGRAPH UNDER THE HEADING "INCREASES" ON
PAGE 31 IS AMENDED TO READ AS FOLLOWS:
The Minimum Monthly Premium and the required premiums under the Guaranteed
Death Benefit Rider or the Guaranteed Death Benefit to Age 100 Rider, if
applicable, will also be adjusted.
11. THE SECOND SENTENCE IN THE SECOND PARAGRAPH UNDER THE HEADING "DECREASES" ON
PAGE 31 IS AMENDED TO READ AS FOLLOWS:
If you have a Guaranteed Death Benefit Rider or a Guaranteed Death Benefit
to Age 100 Rider, it will be adjusted for the decrease in Specified Amount.
12. A NEW SECTION IS ADDED ON PAGE 32 IMMEDIATELY ABOVE THE HEADING "GUARANTEED
DEATH BENEFIT RIDERS" TO READ AS FOLLOWS:
CHANGES IN ADDITIONAL TERM LIFE INSURANCE AMOUNT
A change in the Additional Term Life Insurance amount may be made at any
time after your policy is issued. Changes will become effective on the
monthly anniversary day following the approval of the request to change the
Additional Term Life Insurance amount. Increases in the Additional Term Life
Insurance amount will be subject to evidence of insurability and will not be
permitted after the insured's age 85 (70 for qualified plans). Decreases on
a policy with the Additional Term Life Insurance Rider will be applied in
the following order:
- Against the most recent increase, regardless if it is Specified Amount
increase or Additional Term Life Insurance increase;
- Against the next most recent increases successively, regardless if it
is Specified Amount increase or Additional Term Life Insurance
increase
- Against Additional Term Life Insurance provided under the original
application; and
- Against insurance provided by the Specified Amount under the original
application.
13. THE SECTION HEADING ON PAGE 32 ENTITLED "GUARANTEED DEATH BENEFIT RIDER" IS
AMENDED TO "GUARANTEED DEATH BENEFIT RIDERS." THE FIRST PARAGRAPH UNDER THIS
HEADING IS AMENDED TO READ AS FOLLOWS:
When you apply for your policy you may be able to apply for the
Guaranteed Death Benefit Rider or the Guaranteed Death Benefit to Age 100
Rider. These Riders provide a death benefit (equal to the Specified Amount
only of your policy) and may keep certain rider coverages in effect under
certain circumstances, even if the Cash Value of the policy is zero on any
monthly anniversary date.
14. A NEW SUBHEADING ENTITLED "GUARANTEED DEATH BENEFIT RIDER" IS INSERTED AFTER
THE FIRST PARAGRAPH UNDER THE HEADING "GUARANTEED DEATH BENEFIT RIDERS."
15. THE LAST PARAGRAPH UNDER THE HEADING "GUARANTEED DEATH BENEFIT RIDER" ON
PAGE 32 IS REVISED BY THE ADDITION OF A SENTENCE TO THE LAST LINE TO READ AS
FOLLOWS:
This rider is also not available if coverage under the Term Life Term Rider
or the Additional Term Life Insurance Rider has been elected.
16. A NEW SUBSECTION IS ADDED AFTER THE SUBSECTION ENTITLED "GUARANTEED DEATH
BENEFIT RIDER" ON PAGE 32 TO READ AS FOLLOWS:
Guaranteed Death Benefit to Age 100 Rider
The Guaranteed Death Benefit to Age 100 Rider guarantees that during the
insured's lifetime, the policy will not lapse regardless of the cash value.
Provided that certain conditions are met, a minimum death benefit equal to
the Specified Amount will be paid. To maintain the benefit, total premiums
paid less partial surrenders (excluding any partial surrender fees) less
outstanding debt must equal or exceed the cumulative required minimum
monthly premium to date. This rider is not available if you elect coverage
under the Guaranteed Death Benefit Rider, Term Life Term Rider and/or
Additional Term Life Insurance Rider.
5
<PAGE> 10
17. A NEW SUBSECTION IS ADDED UNDER THE SECTION ENTITLED "OTHER OPTIONAL
INSURANCE BENEFITS" ON PAGE 33 TO READ AS FOLLOWS:
Additional Term Life Insurance Rider
The Additional Term Life Insurance Rider provides you with a level death
benefit to age 100. The Additional Term Life Insurance Rider, unlike the
Term Life Term Rider, is combined with the Specified Amount of the policy
for purposes of determining if the minimum "corridor" is required to
maintain the definition of life insurance under the Internal Revenue Code
section 7702 (See "Definition of Life Insurance" on page 48).
18. THE SIXTH SENTENCE UNDER THE HEADING "CHILDREN'S TERM LIFE INSURANCE RIDER"
ON PAGE 33 IS REVISED TO READ AS FOLLOWS:
Coverage is limited to the lesser of 1/5(th) of the initial Specified Amount
plus the Term Life Term Rider plus the Additional Term Life Insurance Rider
or $10,000.
19. THE SECOND PARAGRAPH UNDER THE HEADING "ACCIDENTAL DEATH AND DISMEMBERMENT
RIDER" ON PAGE 33 IS REVISED TO READ AS FOLLOWS:
The maximum amount of coverage is the initial Specified Amount plus term
insurance coverage, plus the Additional Term Life Insurance Rider but not
more than the greater of
(1) $100,000 total coverage of all such insurance in the Company or
its affiliates, or
(2) $200,000 of all such coverages regardless of insurance companies
issuing such coverages.
20. THE FIRST PARAGRAPH UNDER THE HEADING "GRACE PERIOD AND LAPSE" ON PAGE 40 IS
AMENDED TO READ AS FOLLOWS:
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 or the
Guaranteed Death Benefit to Age 100 Rider, and you have met all the
requirements of the applicable rider, and
(3) you make any required additional premium payments during the
61-day Grace Period.
Form No. 14428 SL (Supp 3/1/00) Registration No. 333-56969
6
<PAGE> 11
PROSPECTUS
Dated May 1, 2000
Variable Universal Life Insurance Policy
MONY Life Insurance Company of America (the "Company") issues a variable
universal life insurance policy described in this Prospectus. Among the policy's
many terms are:
Allocation of Premiums and Cash Values:
- You can tell us what to do with your premium payments. You can also tell us
what to do with the cash values your policy may create for you resulting from
those premium payments.
- You can tell us to place them into a separate account. That separate
account is called MONY America Variable Account L.
- If you do, you can also tell us to place your premium payments and
cash values into any 20 of 25 different subaccounts. Each of these
subaccounts seeks to achieve a different investment objective. If you
tell us to place your premium payments and cash values into one or
more subaccounts of the separate account, you bear the risk that the
investment objectives will not be met. That risk includes your not
earning any money on your premium payments and cash values and also
that your premium payments and cash values may lose some or all of
their value.
- You can also tell us to place some or all of your premium payments and
cash values into our account. Our account is called the Guaranteed
Interest Account. If you do, we will guarantee that those premium
payments and cash values will not lose any value. We also guarantee that
we will pay not less than 4.5% interest annually. We may pay more than
4.5% if we choose. Premium payments and cash values you place into the
Guaranteed Interest Account become part of our assets.
Death Benefit:
- We will pay a death benefit if you die before you reach age 100 while the
policy is in effect. That death benefit will never be less than the amount
specified in the policy. It may be greater than the amount specified if the
policy's cash values increase.
Living Benefits:
- You may ask for some or all of the policy's cash value at any time. If you do,
we may deduct a surrender charge. You may borrow up to 90% of the policy's
cash value from us at any time. You will have to pay interest to us on the
amount borrowed.
Charges and Fees:
- The policy allows us to deduct certain charges from the cash value. These
charges are detailed in the policy and in this prospectus.
THESE ARE ONLY SOME OF THE TERMS OF THE POLICY.
PLEASE READ THE PROSPECTUS CAREFULLY FOR MORE COMPLETE DETAILS OF THE POLICY.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or passed upon the
adequacy or accuracy of the prospectus. Any representation to the contrary is a
criminal offense. This prospectus comes with prospectuses for the MONY Series
Fund, Inc. 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
<PAGE> 12
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 13
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Summary of the Policy....................................... 1
Important Policy Terms.................................... 1
Purpose of the Policy..................................... 1
Policy Premium Payments and Values........................ 1
Charges and Deductions.................................... 2
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.................................... 9
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.................................... 10
Understanding the Policy.................................. 11
Detailed 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................................................... 18
MONY Series Fund, Inc. ................................... 18
Enterprise Accumulation Trust............................. 19
Dreyfus Stock Index Fund.................................. 21
The Dreyfus Socially Responsible Growth Fund, Inc. ....... 21
Fidelity Variable Insurance Products Fund................. 22
Fidelity Variable Insurance Products Fund II.............. 22
Fidelity Variable Insurance Products Fund III............. 22
Janus Aspen Series........................................ 23
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
Changes in Specified Amount............................... 30
Guaranteed Death Benefit Rider............................ 32
Other Optional Insurance Benefits......................... 33
Benefits at Maturity and Maturity Extension Rider......... 34
</TABLE>
i
<PAGE> 14
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Policy Values............................................. 35
Determination of Fund Value............................... 35
Calculating Unit Values for Each Subaccount............... 36
Transfer of Fund Value.................................... 37
Right to Exchange Policy.................................. 38
Policy Loans.............................................. 38
Full Surrender............................................ 39
Partial Surrender......................................... 39
Grace Period and Lapse.................................... 40
Charges and Deductions...................................... 43
Deductions from Premiums.................................. 44
Daily Deduction from MONY America Variable Account L...... 44
Deductions from Fund Value................................ 45
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............................... 56
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 Privileges............................. 62
Legal Proceedings......................................... 62
</TABLE>
ii
<PAGE> 15
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Legal Matters............................................. 62
Registration Statement.................................... 63
Independent Accountants................................... 63
Financial Statements...................................... 63
Index to Financial Statements............................. F-1
Appendix A.................................................. A-1
Appendix B.................................................. B-1
Appendix C.................................................. C-1
Appendix D.................................................. D-1
</TABLE>
iii
<PAGE> 16
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 17
SUMMARY OF THE POLICY
This summary provides you with a brief overview of the more important
aspects of your policy. It is not intended to be complete. More detailed
information is contained in this prospectus on the pages following this Summary
and in your policy. This summary and the entire prospectus will describe the
part of the policy involving MONY America Variable Account L. The prospectus
also briefly will describe the Guaranteed Interest Account on page 55. The
Guaranteed Interest Account is also described in your policy. BEFORE PURCHASING
A POLICY, WE URGE YOU TO READ THE ENTIRE PROSPECTUS CAREFULLY.
IMPORTANT POLICY TERMS
We are providing you with definitions for the following terms to make the
description of the policy provisions easier for you to understand.
Outstanding Debt -- The unpaid balance of any loan which you request on the
policy. The unpaid balance includes accrued loan interest which is due and has
not been paid by you.
Loan Account -- An account to which amounts are transferred from the
subaccounts of MONY America Variable Account L and the Guaranteed Interest
Account as collateral for any loan you request. We will credit interest to the
Loan Account at a rate not less than 4.5%. The Loan Account is part of the
Company's General Account.
Fund Value -- The sum of the amounts under the policy held in each
subaccount of MONY America Variable Account L, the Guaranteed Interest Account,
and the Loan Account.
Cash Value -- The Fund Value of the policy less any surrender charge and
any Outstanding Debt.
Minimum Monthly Premium -- The amount the Company determines is necessary
to keep the policy in effect for the first three policy years, regardless of
subaccount cash values. In certain cases, this also applies to the first three
policy years following an increase in the Specified Amount.
Guaranteed Interest Account -- This account is part of the general account
of MONY Life Insurance Company of America (the "Company"). You may allocate all
or a part of your net premium payments to this account. This account will credit
you with a fixed interest rate (which will not be less than 4.5%) declared by
the Company. (For more detailed information, see "The Guaranteed Interest
Account," page 51.)
Specified Amount -- The minimum 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 life of the insured. If the
insured is alive on the anniversary of the policy date when the insured is age
100, a maturity benefit will be paid instead of a death benefit. The policy
provides a death benefit equal to your choice of (a) its Specified Amount, or
(b) its Specified Amount plus accumulated Fund Value. The policy also provides
surrender and loan privileges. The policy offers a choice of investment
alternatives and an opportunity for the policy's Fund Value and its death
benefit, to grow based on investment results. In addition, you, as owner of the
policy, choose the amount and frequency of premium payments, within certain
limits.
POLICY PREMIUM PAYMENTS AND VALUES
The premium payments you make for the policy are received by the Company.
From those premium payments, the Company makes deductions to pay premium and
other taxes imposed by state and local governments. The Company makes deductions
to cover the cost to the Company of a deferred acquisition tax imposed by the
United States government. The Company will also deduct a Sales Charge to cover
the costs of making the policies available to the public. After deduction of
these charges, the amount remaining is called the net premium payment.
1
<PAGE> 18
You may allocate net premium payments among the various subaccounts of MONY
America Variable Account L and/or the Guaranteed Interest Account. As owner of
the policy, you may give the right to allocate net premium payments to someone
else.
The net premium payments you allocate among the various subaccounts of MONY
America Variable Account L may increase or decrease in value on any day
depending on the investment experience of the subaccounts you select. Your death
benefit may or may not increase or decrease depending on several factors
including the death benefit option you 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 fifteen 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 Fund Value and are described
in further detail below.
The policy remains in effect until the earliest of
(1) a grace period expires without the payment of sufficient additional
premium to cover policy charges or repayment of the Outstanding Debt,
(2) age 100,
(3) death of the insured, or
(4) full surrender of the policy.
Generally, the policy remains in effect only as long as the Cash Value is
sufficient to pay all monthly deductions. However, during the first three years
the policy is in effect, the Company will determine an amount which if paid
during those first three policy years will keep the policy and all rider
coverages in effect for the first three policy years even if the Cash Value of
the policy is zero. This amount is called the Minimum Monthly Premium. If you
increase the Specified Amount during the first three policy years, you must pay
the Minimum Monthly Premium for three more years after the increase. A
Guaranteed Death Benefit Rider is also available at the time you purchase the
policy. It will extend the time during which the Specified Amount of the policy
and most riders will not lapse. The Guaranteed Death Benefit Rider requires the
payment of an agreed upon amount of premiums and is discussed below.
CHARGES AND DEDUCTIONS
The policy provides for the deduction of the various charges, costs, and
expenses from the Fund Value of the policy. These deductions are summarized in
the table below. Additional details can be found on pages 43 - 47.
2
<PAGE> 19
--------------------------------------------------------------------------------
DEDUCTIONS FROM PREMIUMS
<TABLE>
<CAPTION>
<S> <C> <C>
-----------------------------------------------------------------------------------------------
Sales Charge -- Varies based on Specified Specified Amounts less than $500,000 -- 4%
Amount plus Term Life Term Specified Amounts of $500,000 or more -- 3%
Rider amount in effect. It
is a % of Premium paid.
-----------------------------------------------------------------------------------------------
Tax Charge State and local -- 2.25%
Federal -- 1.5% (0% for individual
qualified plan issues)
</TABLE>
--------------------------------------------------------------------------------
DAILY DEDUCTION FROM MONY AMERICA VARIABLE ACCOUNT L
<TABLE>
<S> <C> <C>
----------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge -- Maximum .35% of subaccount value (0.000959% daily)
Annual Rate
</TABLE>
--------------------------------------------------------------------------------
DEDUCTIONS FROM FUND VALUE
<TABLE>
<S> <C> <C>
----------------------------------------------------------------------------------------------
Cost of Insurance Charge Current cost of insurance rate x net amount
at risk at the beginning of the policy
month
----------------------------------------------------------------------------------------------
Administrative Charge -- monthly $5.00
----------------------------------------------------------------------------------------------
Monthly per $1,000 Specified Amount Charge See Appendix B. This charge applies for the
Based on issue age. first 15 policy years (or for 15 years from
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 80% to 0 over 15 years (10 46 for grading schedule.
years for issue ages 76-85) based 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> 20
MONY America 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 its operations. Those expenses
are also shown in the table below.
FEES AND EXPENSES OF THE FUNDS
The Funds and each of their 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 below. 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%(2) 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>
4
<PAGE> 21
<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
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)
Aggressive Growth.............. 0.65% 0.02% N/A 0.67%(4)
</TABLE>
---------------
(1) Expenses do not include custodial credit. 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>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C> <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> <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
<PAGE> 22
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C> <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> 23
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C> <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> <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 $50,000. You may elect one of two
options to compute the amount of death benefit payable under the policy. Your
selection may increase the death benefit.
Option 1 -- The death benefit equals the greater of
(a) the Specified Amount, or
(b) fund Value multiplied by a death benefit percentage required by
the federal tax law definition of life insurance.
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.
7
<PAGE> 24
Option 2 -- The death benefit equals the greater of
(a) the Specified Amount of the policy, plus the Fund Value, or
(b) the Fund Value multiplied by a death benefit percentage required
by the federal tax law definition of life insurance.
If you choose Option 2, favorable investment performance will increase
the Fund Value of the Policy which in turn increases insurance coverage.
The Fund Value used in these calculations is the Fund Value as of the date of
the insured's death.
You may change the death benefit option and increase or decrease the
Specified Amount, subject to certain conditions. See "Death Benefits Under the
Policy," page 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 financial situation and needs change.
When you apply for a policy, you determine the level amount you intend to
pay at fixed intervals over a specified period of time. You elect to receive a
premium notice on an annual, semiannual, or quarterly basis. However, you may
choose to skip or stop making premium payments, your policy continues in effect
until the Cash Value can no longer cover (1) the monthly deductions from the
Fund Value for your policy, and (2) any optional insurance benefits added by
rider. You may pay premiums under the electronic funds transfer program. Under
this program, you authorize the Company to withdraw the amount you determine
from your checking account each month.
The amount, frequency and period of time over which you pay premiums may
affect whether or not the policy will be classified as a modified endowment
contract. You will find more information on the tax treatment of life insurance
contracts, including modified endowment contracts under "Federal Income Tax
Considerations," page 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
13.
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 Trust, the Dreyfus Stock Index
Fund, The Dreyfus Socially Responsible Growth Fund, Inc., the Fidelity Variable
Insurance Products Fund, the Fidelity Variable Insurance Products Fund II, the
Fidelity Variable Insurance Products Fund III, or the Janus Aspen Series (the
"Funds"). The subaccounts available to you and the investment objectives of each
available subaccount are described in detail beginning on page 13.
8
<PAGE> 25
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.
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 when due, the amount due will be
borrowed from the policy's Cash Value and will become part of the Outstanding
Debt.
FULL SURRENDER
You can surrender the policy during the insured's lifetime and receive its
Cash Value, which equals (a) Fund Value, minus (b) any surrender charge, and
minus (c) any Outstanding Debt. See "Full Surrender," page 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 your request and
return it to you. A partial surrender will decrease the Specified Amount. See
"Partial Surrender," at page 39.
Partial surrenders must be for at least $500. A partial surrender fee of
$10 will be assessed against the remaining Fund Value. There is no surrender
charge assessed on a partial surrender.
RIGHT TO RETURN POLICY PERIOD
You have the right to examine the policy when you receive it. You may
return the policy for any reason and obtain a full refund of the premium you
paid if you return your policy within 10 days (or longer in some states) after
you receive it. You may also return the policy within 45 days after the date you
sign the application for the policy. During the Right to Return Policy Period,
net premiums will be kept in the general account of the Company and will earn
interest at an annual rate of 4.5%. See "Right to Examine a Policy -- Right to
Return Policy Period", page 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 times the number of months your policy has been in
effect. If you increase the Specified Amount during the first three policy
years, you must continue paying the Minimum Monthly Premium for an
additional three policy years from the date of the increase.
9
<PAGE> 26
If the policy is about to terminate (or Lapse), we will give you notice
that you must pay additional premiums. That notice will tell you what the
minimum amount you must pay is if the policy is to remain in effect and the date
by which we must receive that amount (this period is called the "grace period").
In addition, we calculate each month whether you have paid the premiums
required to be paid by your Guaranteed Death Benefit Rider. See "Guaranteed
Death 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 premium payments are made unless you have made all
the premium payments required by the Guaranteed Death Benefit Rider.
TAX TREATMENT OF INCREASES IN FUND VALUE
The federal income tax laws generally tie the taxation of Fund Values to
your receipt of those Fund Values. This policy is currently subject to the same
federal income tax treatment as fixed life insurance. Certain policy loans may
be taxable. You can find information on the tax treatment of the policy under
"Federal Income Tax 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 nine riders available with this policy:
- Guaranteed Death Benefit Rider
- Spouse's Yearly Renewable Term Rider
- Children's Term Life Insurance Rider
- Accidental Death and Dismemberment Rider
- Purchase Option Rider
- Waiver of Monthly Deduction Rider
- Waiver of Specified Premiums Rider
- Term Life Term Rider
- Maturity Extension Rider
CONTACTING THE COMPANY
All written requests, notices, and forms required by the policies, and any
questions or inquiries should be directed to the Company's Operations Center at
1 MONY Plaza, Syracuse, New York 13202.
10
<PAGE> 27
UNDERSTANDING THE POLICY
The following chart may help you to understand how the policy works.
[HOW THE POLICY WORKS FLOW CHART]
11
<PAGE> 28
DETAILED INFORMATION ABOUT THE COMPANY
AND MONY AMERICA VARIABLE ACCOUNT L
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY Life Insurance Company of America issues the policy. In this
prospectus MONY Life Insurance Company of America is called the "Company". The
Company is a stock life insurance company organized in the State of Arizona. The
Company is the corporate successor of VICO Credit Life Insurance Company
incorporated in Arizona on March 6, 1969. The Company is currently licensed to
sell life insurance and annuities in 49 states (not including New York), the
District of Columbia, Puerto Rico, and the Virgin Islands.
The Company is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). MONY was organized as a mutual life insurance company under the laws
of the State of New York in 1842 under the name The Mutual Life Insurance
Company of New York. In 1998, The Mutual Life Insurance Company of New York
converted to a stock company through demutualization and was renamed MONY Life
Insurance Company. The demutualization did not have any material effect on the
obligations of the Company under the policy or on MONY America Variable Account
L. The principal offices of both MONY and the Company are located at 1740
Broadway, New York, New York 10019.
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.
The Company intends to administer the policies itself.
MONY Securities Corporation, a wholly-owned subsidiary of the Company, is
the principal underwriter for the policies.
YEAR 2000 ISSUE
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 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-
12
<PAGE> 29
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.
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 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> <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.
--------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 30
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
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.
--------------------------------------------------------------------------------------------
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 Invests in a combination of growth and
income. Seeks to achieve an above average
This subaccount purchases shares of the and consistent total return, primarily
Enterprise Accumulation Trust Equity from investments in dividend paying U.S.
Income Portfolio. common 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.
--------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 31
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
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.
--------------------------------------------------------------------------------------------
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 percentages 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.
--------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE> 32
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
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 Portfolio. 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.
--------------------------------------------------------------------------------------------
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. To pursue this goal, the fund
Dreyfus Stock Index Fund. generally invests in all 500 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. To
pursue these goals, the fund invests
This subaccount purchases shares of The primarily in common stock of companies
Dreyfus Socially Responsible Growth Fund, that, in the opinion of its management,
Inc. meet traditional investment standards and
conduct their business in a manner that
contributes to the enhancement of the
quality of life in America.
--------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE> 33
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
FIDELITY VIP 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) -- with higher than average price/earnings
Growth Portfolio. 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 VIP II CONTRAFUND(R) SUBACCOUNT Seeks long-term capital appreciation by
investing mainly in equity securities of
This subaccount purchases shares of companies whose value it believes is not
Fidelity Variable Insurance Products Fund fully recognized by the public. Typically,
II (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.
--------------------------------------------------------------------------------------------
FIDELITY VIP III GROWTH OPPORTUNITIES Seeks to provide capital growth by
SUBACCOUNT investing primarily in common stocks. May
also invest in other types of securities,
This subaccount purchases shares of including bonds, which may be
Fidelity Variable Insurance Products Fund lower-quality debt securities. May invest
III (VIP III) -- Growth Opportunities in securities of foreign issuers in
Portfolio. 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 equity assets in medium-sized companies
Portfolio. 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.
--------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE> 34
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
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 companies of any size throughout the
Portfolio. 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. The Funds are registered with the SEC under the Investment
Company Act of 1940. The SEC does not supervise the investments or investment
policy of the Funds.
MONY SERIES FUND, INC.
Only shares of four of the seven portfolios of the MONY Series Fund, Inc.
can be purchased by a subaccount available to you. Each of the portfolios has
different investment objectives and policies. The Company is a registered
investment adviser under the Investment Advisers Act of 1940. The Company, as
investment adviser, 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 adviser 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> <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% of assets in excess of $800
million of the portfolio's aggregate
average daily net assets.
----------------------------------------------------------------------------------------
</TABLE>
18
<PAGE> 35
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 adviser fee to Enterprise
Capital which in turn pays the sub-investment advisers. Fees are deducted daily
and paid to Enterprise Capital on a monthly basis. The daily investment adviser
fees and sub-investment adviser fees for each portfolio purchased by subaccounts
available to you are shown in the chart below.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT
SUB-ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
----------------------------------------------------------------------------------------------
<S> <C> <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. are the 0.70% in excess of $800 0.40% up to $1 billion,
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 Advisers, 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.
----------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE> 36
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT
SUB-ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
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 the portfolio's
sub-investment adviser. average daily net assets.
----------------------------------------------------------------------------------------------
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.
----------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE> 37
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT
SUB-ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
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.
----------------------------------------------------------------------------------------------
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 adviser fees and sub-investment adviser 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> <C>
DREYFUS STOCK INDEX FUND Annual rate of 0.245% of the The Dreyfus Corporation pays
fund's average daily net the sub-investment adviser
Mellon Equity Associates assets. an annual rate of 0.095% of
is the sub-investment the value of the fund's
adviser. average daily net assets.
----------------------------------------------------------------------------------------------
THE DREYFUS SOCIALLY Annual rate of 0.75% of the The Dreyfus Corporation pays
RESPONSIBLE GROWTH FUND, fund's average daily net the sub-investment adviser
INC. assets. an annual rate of 0.10% of
the first $32 million, 0.15%
NCM Capital Management in excess of $32 million up
Group, Inc. is the sub- to $150 million, 0.20% in
investment adviser. excess 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>
21
<PAGE> 38
FIDELITY VARIABLE INSURANCE PRODUCTS FUND -- SERVICE CLASS -- GROWTH PORTFOLIO
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II -- SERVICE CLASS -- CONTRAFUND(R)
PORTFOLIO
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III -- SERVICE CLASS -- GROWTH
OPPORTUNITIES PORTFOLIO
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. Affiliates assist FMR with foreign
investments. The daily investment adviser 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>
22
<PAGE> 39
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 adviser 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.
----------------------------------------------------------------------------------------
JANUS ASPEN SERIES -- CAPITAL APPRECIATION Annual rate of 0.65% of the portfolio's
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, 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.
23
<PAGE> 40
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 13-18. No portfolio can assure
you that its objective will be achieved. You will find more detailed information
in the prospectus of each Fund that you received with this prospectus. The
Funds' prospectuses include information on the risks of each portfolio's
investments and investment techniques.
THE FUNDS' PROSPECTUSES ACCOMPANY THIS PROSPECTUS AND SHOULD BE
READ CAREFULLY BEFORE INVESTING
DETAILED INFORMATION ABOUT THE POLICY
The Fund Value in MONY America Variable Account L and the Guaranteed
Interest Account provide many of the benefits of your policy. The information in
this section describes the benefits, features, charges, and other major
provisions of the policies and the extent to which those benefits depend upon
the Fund Value.
APPLICATION FOR A POLICY
The policy design meets the needs of individuals as well as for
corporations who provide coverage and benefits for key employees. A purchaser
must complete an application and personally deliver it to a licensed agent of
the Company, who is also a registered representative of MONY Securities
Corporation ("MSC"). The licensed agent submits the application to the Company.
The policy may also be sold through other broker-dealers authorized under the
law and by MSC. A policy can be issued on the life of an insured for ages up to
and including 85 with evidence of insurability that satisfies the Company. If a
qualified plan will own the policy, the insured cannot be more than 70 years
old. The age of the insured is the age on his or her last birthday prior to the
date of the policy. The Company accepts the application subject to its
underwriting rules, and may request additional information or reject an
application.
The minimum Specified Amount you may apply for is $50,000. However, the
Company reserves the right to revise its rules at any time to require a
different minimum Specified Amount at issue for subsequently issued policies.
Each policy is issued with a policy date. The policy date is used to
determine the policy months and years, and policy monthly, quarterly,
semi-annual and annual anniversaries. The policy date is stated on page 1 of the
policy. The policy date will normally be the later of (1) the date that delivery
of the policy is authorized by the Company ("Policy Release Date"), or (2) the
policy date requested in the application. No premiums may be paid with the
application except under the temporary insurance procedures defined below.
Temporary Insurance Coverage
If you want insurance coverage before the Policy Release Date, and are more
than 15 days old and not more than 70 years old, you may be eligible for a
temporary insurance agreement. You must complete an application for the policy
and give it to the Company's licensed agent. The application contains a number
of questions about your health. Your eligibility for temporary coverage will
depend upon your answers to those questions. In addition, you must complete and
sign the Temporary Insurance Agreement Form. You must also submit payment for at
least one Minimum Monthly Premium for the Policy as applied for. Your coverage
under the Temporary Insurance Agreement starts on the date you sign the form and
pay the premium amount, or if later, the requested policy date. See
"Premiums -- Premium Flexibility," page 26.
24
<PAGE> 41
Coverage under the Temporary Insurance Agreement ends (except for contracts
issued in Kansas) on the earliest of:
(1) the Policy Release Date, if the policy is issued as applied for;
(2) 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;
(3) no later than 90 days from the date the Temporary Insurance
Agreement is signed;
(4) the 45th day after the form is signed if you have not finished the
last required medical exam;
(5) 5 days after the Company sends notice to you that it declines to
issue any policy; and
(6) the date you tell the Company that the policy will be refused.
For contracts issued in Kansas, coverage under the Temporary Insurance
Agreement ends on the earliest of:
(1) the Policy Release Date, if the policy is issued as applied for;
(2) the 15(th) day after the Policy Release Date or the date the policy
takes effect, if the policy is issued other than as applied for;
(3) the date you tell the Company that the policy will be refused; and
(4) the day written notice of the declination and refund of premium is
provided to the applicant.
If the insured dies during the period of temporary coverage, the death
benefit will be:
(1) the insurance coverage applied for (including any optional riders)
up to $500,000, less
(2) the deductions from premium and the monthly deduction due prior to
the date of death.
Premiums paid for temporary insurance coverage are held in the Company's
general account until the Policy Release Date. Except as provided below,
interest is credited on the premiums (less any deductions from premiums) held in
the Company's general account. The interest rate will be set by the Company, but
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.
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
payments specified in your policy must be paid in full when your policy is
delivered. Your policy is effective the later of (1) acceptance and payment of
the scheduled premium payment, or (2) the policy date requested in the
application. 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
25
<PAGE> 42
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," page 26.
Policy Date
The Company may approve the backdating of a policy. The policy may be
backdated for not more than 6 months (a shorter period is required in certain
states) prior to the date of the application. Backdating can be to your
advantage if it lowers the insured's issue age and results in lower cost of
insurance rates. If the policy is backdated, the initial scheduled premium
payment will include sufficient premium to cover the extra charges for the
backdating period. Extra charges equal the monthly deductions for the period
that the policy date is backdated.
Risk Classification
Insureds are assigned to underwriting (risk) classes. Risk classes are used
in calculating the cost of insurance and certain rider charges. In assigning
insureds to underwriting classes, the Company will normally use the medical or
paramedical underwriting method. This method may require a medical examination
of the proposed insured. The Company may use other forms of underwriting when it
is considered appropriate.
RIGHT TO EXAMINE A POLICY -- RIGHT TO RETURN POLICY PERIOD
The Right to Return Policy Period runs for 10 days (or longer in certain
states) after you receive the policy. During this period, you may cancel the
policy and receive a refund of the full amount of the premium paid.
PREMIUMS
The policy is a flexible premium policy. The policy provides considerable
flexibility, subject to the limitations described below, to pay premiums at your
discretion.
Premium Flexibility
The Company requires you to pay an amount equal to at least the Minimum
Monthly Premium to put the policy in effect. If you want to pay premiums less
often than monthly, the premium required to put the policy in effect is equal to
the Minimum Monthly Premium multiplied by 12 divided by the frequency of the
scheduled premium payments. This Minimum Monthly Premium will be based upon
(1) the policy's Specified Amount,
(2) any riders added to the policy, and
(3) the insured's
(a) Age,
(b) smoking status,
(c) gender (unless unisex cost of insurance rates apply, see
"Deductions From Fund Value -- Cost of Insurance," page 45), 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.
26
<PAGE> 43
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.
You may elect to make monthly premium payments by electronic funds
transfer. Based on your policy date, up to two Minimum Monthly Premiums may be
required to be paid in cash before premiums may be paid by electronic funds
transfer to the Company. Paying premiums by electronic funds transfer requires
you to authorize the Company to withdraw premiums from your checking account
each month.
Payment of the scheduled premium payments will not guarantee that your
policy will remain in effect. (See "Grace Period and Lapse" in the Summary and
on page 40.)
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 effect
without the payment of additional premiums. Therefore, coverage will last as
long as the Cash Value of your policy is sufficient to pay these charges. See
"Grace Period and Lapse," page 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
27
<PAGE> 44
exceeds the Specified Amount for the policy. The policy's death benefit would
exceed the Specified Amount of the policy if your Fund Value multiplied by the
death benefit percentage determined in accordance with the federal income tax
law definition of life insurance exceeds the Specified Amount. See "Death
Benefits Under the Policy," page 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
(1) the Cash Value is greater than zero, or
(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, the Minimum Monthly Premium
requirements are satisfied, and if you increase the Specified Amount during
the first three policy the Minimum Monthly Premium requirements are
satisfied during the three policy years following the effective date of the
increase.
ALLOCATION OF NET PREMIUMS
Net premiums may be allocated to up to 20 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 62. Whether you give us instructions in writing or by
telephone, the revised allocation percentages will be effective within seven
days from receipt of notification.
Unscheduled premium payments may be allocated either by percentage or by
dollar amount. If the allocation is expressed in dollar amounts, the 10% limit
on allocation percentages does not apply.
DEATH BENEFITS UNDER THE POLICY
When your policy is issued, the initial amount of insurance ("Specified
Amount") is shown on the specification page of your policy. The minimum
Specified Amount is $50,000.
28
<PAGE> 45
As long as the policy is in effect, the Company will, upon proof of death
of an insured, pay death benefit proceeds to a named beneficiary. Death benefit
proceeds will consist of
(1) the policy's death benefit, plus
(2) any insurance proceeds provided by rider, less
(3) any Outstanding Debt (and, if in the Grace Period, less any
overdue charges).
You may select one of two death benefit Options: Option 1 or Option 2.
Generally, you designate the death benefit option in your application. If no
option is designated, the Company assumes Option 2 has been selected. Subject to
certain restrictions, you can change the death benefit option selected. As long
as your policy is in effect, the death benefit under either option will never be
less than the Specified Amount of your policy.
Option 1 -- The death benefit equals the greater of
(a) the Specified Amount, or
(b) Fund Value multiplied by a death benefit percentage.
The death benefit percentages vary according to the age of the insured
and will be at least equal to the percentage defined in the Internal
Revenue Code. The Internal Revenue Code addresses the definition of a life
insurance policy for tax purposes. See "Federal Income Tax
Considerations -- Definition of Life Insurance," page 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.
Examples of Options 1 and 2
The following examples demonstrate the determination of death benefits
under Options 1 and 2. The examples show three policies with the same Specified
Amount, but Fund Values that vary as shown. It is assumed that the insured is
age 40 at the time of death and that there is no Outstanding Debt. The date of
death is also assumed to be on a monthly anniversary day.
<TABLE>
<CAPTION>
POLICY 1 POLICY 2 POLICY 3
-------- -------- --------
<S> <C> <C> <C>
Specified Amount........................................... $100,000 $100,000 $100,000
Fund Value on Date of Death................................ $ 35,000 $ 60,000 $ 85,000
Death Benefit Percentage................................... 250% 250% 250%
Death Benefit under Option 1............................... $100,000 $150,000 $212,500
Death Benefit under Option 2............................... $135,000 $160,000 $212,500
</TABLE>
Option 1, Policy 1: The death benefit equals $100,000 since the death benefit
is the greater of the Specified Amount ($100,000) or the Fund Value multiplied
by the death benefit percentage ($35,000 x 250% = $87,500).
29
<PAGE> 46
Option 1, Policies 2 & 3: The death benefit is equal to the Fund Value
multiplied by the death benefit percentage since ($60,000 x 250% = $150,000 for
Policy 2; $85,000 x 250% = $212,500 for Policy 3) is greater than the Specified
Amount ($100,000).
Option 2, Policy 1: The death benefit equals $135,000 since the Specified
Amount plus the Fund Value ($100,000 + $35,000 = $135,000) is greater than the
Fund Value multiplied by the death benefit percentage ($35,000 x 250% =
$87,500).
Option 2, Policy 2: The death benefit equals the Specified Amount plus the Fund
Value ($100,000 + $60,000 = $160,000) since it is greater than the Fund Value
multiplied by the death benefit percentage ($60,000 x 250% = $150,000).
Option 2, Policy 3: The death benefit is the Fund Value multiplied by the death
benefit percentage ($85,000 x 250% = $212,500) since it is greater than the
Specified Amount plus the Fund Value ($100,000 + $85,000 = $185,000).
The Company pays death benefit proceeds to a beneficiary in a lump sum or under
a payment plan offered under the policy. The policy should be consulted for
details.
Changes in Death Benefit Option
You may request that the death benefit option under your policy be changed
from Option 1 to Option 2, or Option 2 to Option 1. You may make a change by
sending a written request to the Company's administrative office. A change from
Option 2 to Option 1 is made without providing evidence of insurability. A
change from Option 1 to Option 2 will require that you provide satisfactory
evidence of insurability. The effective date of a change requested between
monthly anniversaries will be the next monthly anniversary day after the change
is accepted by the Company.
If you change from Option 1 to Option 2 your policy's Specified Amount is
reduced by the amount of the policy's Fund Value at the date of the change. This
maintains the death benefit payable under Option 2 at the amount that would have
been payable under Option 1 immediately prior to the change. The total death
benefit will not change immediately. The change to Option 2 will affect the
determination of the death benefit from that point on. As of the date of the
change, the Fund Value will be added to the new specified Amount. The death
benefit will then vary with the Fund Value. This change will not be permitted if
it would result in a new Specified Amount of less than $100,000.
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 "Deductions From Fund Value -- Cost of Insurance," page
45. 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.
30
<PAGE> 47
Increases in Specified Amount are not permitted on or after the insured's age 85
(age 70 for individual qualified plans, i.e. plans qualified under 401(a),
including 401(k) plans, and 403(a) of the Internal Revenue Code. Increases are
also not permitted if monthly deductions are being waived under the Waiver of
Monthly Deduction Rider or premiums are being waived under the Waiver of
Specified Premiums Rider. Increasing the Specified Amount will generally
increase the policy's death benefit. Decreasing the Specified Amount will
generally decrease the policy's death benefit. The amount of change in the death
benefit depends on (1) the death benefit option chosen, and (2) whether the
death benefit under the policy is being computed using the death benefit
percentage at the time of the change. Changing the Specified Amount could affect
the subsequent level of policy values. For example, an increase in Specified
Amount may increase the net amount at risk, which will increase your cost of
insurance charges over time. Conversely, a decrease in Specified Amount may
decrease the net amount at risk, which may decrease your cost of insurance over
time.
To increase or decrease the Specified Amount, send a written application to
the Company's administrative office. It will become effective on the monthly
anniversary day on or next following the Company's acceptance of your request.
If you are not the insured, the Company may also require the consent of the
insured before accepting a request.
Increases
An increase of Specified Amount requires that additional, satisfactory
evidence of insurability be provided to the Company.
When you request an increase in Specified Amount, a new "coverage segment"
is created for which cost of insurance and other charges are computed
separately. See "Charges and Deductions," page 37. 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. Any decrease in the Term Life Term Insurance Rider will be applied to
reduce the coverage segments of the Rider in the order of the most recent
increases successively and finally to the original Rider.
The Minimum Monthly Premium will not be adjusted for the decrease in the
Specified Amount. If you have a Guaranteed Death Benefit Rider, it will be
adjusted for the decrease in Specified Amount. If the Specified Amount is
decreased when a premium payment is received, the decrease will be processed
before the premium payment is processed. Rider coverages may also be affected by
a decrease in Specified Amount.
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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 a death benefit (equal to the Specified
Amount only of your policy) and may keep certain rider coverages in effect under
certain circumstances, even if the Cash Value of the policy is zero on any
monthly anniversary date.
In order to remain in effect, the Guaranteed Death Benefit Rider requires
that you have paid a certain amount of premiums during the time that the Rider
is in effect. This amount is described in the next paragraph. If the premiums
you have paid do not equal or exceed this amount, the rider will automatically
end. In addition, this rider will automatically end at the later of the
insured's age 70 or ten years from the policy date ("Guarantee Period"). An
extra charge will be deducted from your Fund Value each month during the
Guarantee Period. This charge will end at the conclusion of the Guarantee
Period, and it will end if on any monthly anniversary date you have not paid the
amount of premiums the rider requires you to pay. See "Guaranteed Death
Benefit," 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.
The Guaranteed Death Benefit Rider is not available on policies offered to
residents of, or issued for delivery in, the Commonwealth of Massachusetts or
the states of New Jersey and Texas. Because the
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Guaranteed Death Benefit Rider is not available, the Grace Period and Lapse will
be treated as if the Guaranteed Death Benefit is not in effect.
It is important to consider the Guaranteed Death Benefit Rider premium
requirements when setting the amount of the scheduled premium payments for your
policy. (See Appendix 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 37. 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.
Spouse's Yearly Renewable Term Rider
This rider provides for term insurance benefits on the life of the
insured's spouse, to the spouse's age 80. The minimum amount of coverage is
$25,000. The rider coverage may be converted without evidence of insurability to
any level premium, level face amount permanent plan of insurance offered by the
Company at any time prior to the spouse's age 65 or 5 years from the issue of
the rider, if later.
Children's Term Life Insurance Rider
This rider provides term insurance coverage on the lives of the children of
the insured under age 18. The coverage continues to the policy anniversary after
the child's 22nd birthday. It provides coverage for children upon birth or legal
adoption without presenting evidence of insurability, if the rider is applied
for and issued at the same time as the policy is applied for and issued. If the
rider applied for after the policy is issued, different requirements may be
imposed. Children include children born to or adopted by the insured and
stepchildren of the insured. Coverage is limited to the lesser of 1/5th of the
initial Specified Amount or $10,000. Upon the expiration of the rider coverage,
it may be converted to any level premium, level face amount permanent plan of
insurance then offered by the Company, for up to five times the rider coverage
amount.
Accidental Death and Dismemberment Rider
This rider pays a benefit amount if the insured dies or suffers a specified
dismemberment as a result of an accident. The accident must occur after the
insured's age 5 and prior to insured's age 70. A benefit equal to twice the
rider amount is payable if
(1) accidental death occurs as the result of riding as a passenger,
and
(2) the accidental death occurred while riding in a public conveyance,
and
(3) the public conveyance was being operated commercially to transport
passengers for hire.
The maximum amount of coverage is the initial specified amount but not more
than the greater of
(1) $100,000 total coverage of all such insurance in the Company or
its affiliates, or
(2) $200,000 of all such coverages regardless of insurance companies
issuing such coverages.
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Purchase Option Rider
This Rider provides the option to purchase up to $100,000 of additional
coverage without providing additional evidence that the insured remains
insurable. This additional coverage may be added on each policy anniversary when
the insured's age is 25, 28, 31, 34, 37, 40, 43, 46 and 49. In addition, the
future right to purchase new insurance on the next option date may be advanced
and exercised immediately upon the following events:
- Marriage of the insured.
- Birth of a child of the insured.
- Legal adoption of a child by insured.
A period of term insurance is automatically provided starting on the date
of the specified event. The interim term insurance, and the option to accelerate
the purchase of the coverage expires 60 days after the specified event.
Waiver of Monthly Deduction Rider
This rider provides for the waiver of certain charges while the insured has
a covered disability and the policy is in effect. While the insured is disabled,
no deductions are made for (1) monthly administrative charges, (2) per $1,000
Specified Amount charges, (3) cost of insurance charges, and rider charges.
During this period the charges are waived and therefore not deducted from the
Fund Value. This rider does not waive the payment of premiums required by the
Guaranteed Death Benefit Rider. However, the cumulative Minimum Monthly Premium
requirement does not change during the covered disability. It remains fixed at
the level at the beginning of the disability.
Waiver of Specified Premiums Rider
This rider provides for the waiver of the monthly specified premiums (shown
on the rider) while the insured has a covered disability and the policy is in
effect. The specified premiums will be added to the Fund Value on each monthly
anniversary. Net premiums will be allocated among the subaccounts and the
Guaranteed Interest Account according to your most recent instructions. This
rider does not waive the monthly deductions of your policy nor does it waive the
payment of premiums required by the Guaranteed Death Benefit Rider.
Term Life Term Rider
This rider provides additional death benefits on the life of the insured
until the insured reaches age 80. The minimum amount of coverage is $25,000. You
may convert the rider coverage without evidence of insurability to any level
premium, level face amount permanent policy of insurance offered by the Company.
The conversion must occur prior to the insured's age 65 or 5 years from the
issue of the rider, whichever is later.
BENEFITS AT MATURITY AND MATURITY EXTENSION RIDER
The maturity date for this policy is the policy anniversary on which the
insured is age 100. If the insured is living on the maturity date, the Company
will pay to you, 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 54. At your option, payment of the
benefit may be deferred until the date of the insured's death (Maturity
Extension Rider). Death proceeds payable immediately after the maturity date
equal the Cash Value of the policy multiplied by the death benefit percentage at
the insured's age 100. Premiums will not be accepted, nor will monthly
deductions be made, after the maturity date.
Please refer to the policy for additional information on the Maturity
Extension Rider.
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POLICY VALUES
Fund Value
The Fund Value is the sum of the amounts under the policy held in each
subaccount of MONY America Variable Account L and the 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 the investment adviser fees.
- Any dividends or distributions declared by a portfolio.
Any dividends or distributions from any portfolio of the Funds are reinvested
automatically in shares of the same portfolio. However, the Company, on behalf
of MONY America Variable Account L, may elect otherwise. The subaccount value
will also reflect the mortality and expense risk charges the Company makes each
day to the Variable Account.
Amounts allocated to the subaccounts are measured in terms of units. Units
are a measure of value used for bookkeeping purposes. The value of amounts
invested in each subaccount is represented by the
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<PAGE> 52
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 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 MONY America
Variable Account L -- 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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DETERMINING FUND VALUE
[DETERMINING FUND VALUE FLOW CHART]
TRANSFER OF FUND VALUE
You may transfer Fund Value among the subaccounts after the Right to Return
Policy Period by sending a proper written request to the Company's
administrative office. Transfers may be made by telephone if you have proper
authorization. See "Telephone Transfer Privileges," page 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 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.
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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 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 the Company.
The Loan Account is part of the Company's general account. Amounts held in
the Loan Account are credited monthly with an annual rate of interest not less
than 4.5%
Loan repayments release funds from the Loan Account. Unless you request
otherwise, amounts released from the Loan Account will be transferred into the
subaccounts and Guaranteed Interest Account pursuant to your most recent valid
allocation instructions for scheduled premium payments. In addition, Fund Value
in the Loan Account in excess of the outstanding loan is treated differently.
The treatment depends on (1) whether at the time the loan was made, Fund Values
were transferred from the 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
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subaccounts to the Loan Account on the policy anniversary. If the loan is from
the Guaranteed Interest Account and loan interest is capitalized, this excess is
allocated back to the Guaranteed Interest Account. The allocation back is on a
monthly basis proportionately to all interest crediting generations from which
the loan was taken.
Amounts held in the Loan Account to secure Outstanding Debt forego the
investment experience of the subaccounts and the current interest rate of the
Guaranteed Interest Account. Thus Outstanding Debt, whether or not repaid, has a
permanent effect on your policy values and may have an effect on the amount and
duration of the death benefit. If not repaid, the Outstanding Debt will be
deducted from the amount of the death benefit upon the death of the insured, or
the value paid upon surrender or maturity.
Outstanding Debt may affect the length of time the policy remains in
effect. After the third policy anniversary (or, in some instances, the third
anniversary following an increase), your policy will lapse when (1) Cash Value
is insufficient to cover the monthly deduction against the policy's Fund Value
on any monthly anniversary day, and (2) the minimum payment required is not made
during the grace period. Moreover, the policy may enter the grace period more
quickly when Outstanding Debt exists, because the Outstanding Debt is not
available to cover the monthly deduction. In addition, the guarantee period
under the Guaranteed Death Benefit Rider may end if total premiums received less
(1) any partial surrenders and their fees, and (2) Outstanding Debt do not
exceed the premiums required under that Rider. Additional payments or repayments
of a part of Outstanding Debt may be required to keep the Policy or Rider in
effect. See "Grace Period and Lapse," page 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 the
insured. The amount received for a full surrender is the policy's Fund Value
less (1) any surrender charge, and (2) any Outstanding Debt.
You may surrender your policy by sending a written request together with
the policy to the Company's administrative office. The proceeds will be
determined as of the end of the valuation period during which the request for
surrender is received. You may elect to (1) have the proceeds paid in cash, or
(2) apply the proceeds under a payment plan offered under your policy. See
"Payment Plan/Settlement Provisions," page 58. For information on the tax
effects of surrender of a policy, see "Federal Income Tax Considerations," page
48.
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
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amount of the partial surrender is limited so that the loan amount 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 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 48.
GRACE PERIOD AND LAPSE
Your policy will remain in effect as long as
(1) it has a Cash Value greater than zero,
(2) you have purchased the Guaranteed Death Benefit Rider, and you
have met all the requirements of that rider, and
(3) you make any required additional premium payments during a 61-day
Grace Period.
Special Rule for First Three Policy Years
During the first three policy years (or the first three policy years
following an increase in Specified Amount during that period), your policy and
any riders are guaranteed not to lapse if on each monthly anniversary day either
(1) your policy's Cash Value is greater than zero, or
(2) the sum of the premiums paid minus all partial surrenders (excluding
related fees), minus any Outstanding Debt, is greater than or equal
to
(a) the Minimum Monthly Premium times the number of months your
policy has been in effect (or number of months from the most
recent increase in Specified Amount).
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.
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If Guaranteed Death Benefit Rider Is Not in Effect
To avoid lapse if (1) the Cash Value is insufficient to pay the current
Monthly Deduction, and (2) the Guaranteed Death Benefit Rider is not in effect,
you must pay the necessary amount during the grace period. When an insufficiency
occurs, you may also be required to pay any unpaid loan interest accrued for the
policy year. The interest amount will also have to be paid prior to the end of
the grace period.
We will reject any payment if is means your total premium payments will
exceed the maximum permissible premium for your policy's Specified Amount under
the Internal Revenue Code. This may happen when you have Outstanding Debt. In
this event, you could repay enough of the Outstanding Debt to avoid termination.
You may also wish to repay an additional part of the Outstanding Debt to avoid
recurrence of the potential lapse. If premium payments have not exceeded the
maximum permissible premiums, you may wish to make larger or more frequent
premium payments to avoid recurrence of the potential lapse. However, we will
not reject any premium payments necessary to prevent lapse of your policy.
If the Cash Value of your policy will not cover the entire monthly
deduction on a monthly anniversary day, we will deduct the amount that is
available. We will notify you (and any assignee of record) of the payment
necessary to keep your policy in effect. You will then have a grace period of 61
days, from the date the notice was sent, to make the payment. During the first
three policy years (or within three years of an increase in Specified Amount
during that period), if the Cash Value of the policy is less than zero, you must
pay
(1) the Minimum Monthly Premium not paid, plus
(2) one succeeding Minimum Monthly Premium.
After the third policy anniversary (or after three years from the most recent
increase in Specified Amount during that period), the payment required is
(1) the monthly deduction not paid, plus
(2) two succeeding monthly deductions plus the amount of the
deductions from premiums for various taxes and the sales charge.
(See "Charges and Deductions -- Deductions from Premiums," page 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
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) guaranteed Death Benefit Rider is in effect, and
(2) the test for continuation of the guarantee period has been met.
See "Guaranteed Death Benefit Rider," page 32.
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While the Guaranteed Death Benefit Rider is in effect, the Fund Value of
your policy will be reduced by monthly deductions but not below zero. During the
guarantee period, we will waive any monthly deduction that will reduce the Fund
Value below zero. If the Guaranteed Death Benefit Rider is ended, the normal
test for lapse will resume.
Reinstatement
We will reinstate a lapsed policy at any time
(1) before the maturity date, and
(2) within five years after the monthly anniversary day which precedes
the start of the grace period.
To reinstate a lapsed policy, we must also receive:
(1) A written application from you.
(2) Evidence of insurability satisfactory to us.
(3) Payment of all monthly deductions that were due and unpaid during
the grace period.
(4) Payment of an amount at least sufficient to keep your policy in
effect for one month after the reinstatement date.
(5) Payment or reinstatement of any debt on the policy anniversary at
the start of the grace period.
(6) Payment of interest on debt reinstated from the beginning of the
grace period to the end of the grace period at the rate that applies to
policy loans on the date of reinstatement.
When your policy is reinstated, the Fund Value will be equal to the Fund
Value on the date of the lapse subject to the following:
(1) The surrender charge will be equal to the surrender charge that
would have existed had your policy been in effect since the original policy
date.
(2) The Fund Value will be reduced by the decrease, if any, in the
surrender charge during the period that the policy was not in effect.
(3) Any Outstanding Debt on the date of lapse will also be reinstated.
(4) No interest on amounts held in our Loan Account to secure
Outstanding Debt will be paid or credited between lapse and reinstatement.
Reinstatement will be effective as of the monthly anniversary day on or
preceding the date of approval by us. At that time, the Fund Value minus, if
applicable, Outstanding Debt will be allocated among the subaccounts and the
Guaranteed Interest Account pursuant to your most recent scheduled premium
payment allocation instructions.
42
<PAGE> 59
CHARGES AND DEDUCTIONS
The following chart is intended to provide an overview of the current
charges and deductions under the policy. Please see the discussion of each item
in this prospectus and in the policy for further details.
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
DEDUCTIONS FROM PREMIUMS
<S> <C> <C> <C>
-------------------------------------------------------------------------------------------------
Sales Charge -- Varies based on Specified Specified Amounts less than
Amount plus Term Life Term $500,000 -- 4%
Rider amount in effect. It Specified Amounts of
is a % of Premium paid $500,000 or more -- 3%
-------------------------------------------------------------------------------------------------
Tax Charge State and local -- 2.25%
Federal -- 1.5% (0% for individual
qualified plans)
-------------------------------------------------------------------------------------------------
DAILY DEDUCTION FROM MONY AMERICA VARIABLE ACCOUNT L
-------------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge -- Maximum .35% of subaccount value (0.000959%
Annual Rate daily)
-------------------------------------------------------------------------------------------------
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 $5.00
-------------------------------------------------------------------------------------------------
Monthly per $1,000 Specified Amount Charge See Appendix B. This charge applies for the
Based on issue age first 15 policy years (or for 15 years from
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 certain Rider amounts. Please note that the
Death Benefit 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 (at Company's $25 (maximum per transfer)(1)
Option)
-------------------------------------------------------------------------------------------------
Surrender Charge See discussion of Surrender Charge on page 46
Grades from 80% to 0 over 15 years (11 for grading schedule.
years for issue ages 76-85) based 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.
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
43
<PAGE> 60
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 the total of the
Specified Amount plus the Term Life Term Insurance
Rider amount in effect on the policy date. The
charge is a percent of each premium paid.
Specified Amount plus any Term Life Term Insurance
amount in force less than $500,000 -- 4%
Specified Amount plus any Term Life Term Insurance
amount in force of $500,000 or more -- 3%
You should refer to your policy to determine your Specified Amount and the
amount of any Term Life Term Insurance in force.
The sales charge compensates us for the cost of distributing the policies.
This charge is not expected to be enough to cover sales and distribution
expenses for the policies. To the extent that sales and distribution expenses
exceed sales charges, amounts derived from surrender charges will be used.
Expenses in excess of the sales and surrender charges may be recovered from
other charges, including amounts 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% (0% for individual
qualified plans)
All states levy taxes on life insurance premium payments. These taxes vary
from state to state and may vary from jurisdiction to jurisdiction within a
state. Currently, these taxes range from 0% to 4%. Therefore, the 2.25% current
deduction may be higher or lower than the actual premium tax imposed by a
jurisdiction. Our current tax charge is an approximate average of the actual
premium tax we expect to pay on premiums. We do not expect to profit from this
charge.
The 1.5% current charge against each premium covers our estimated cost for
the Federal income tax treatment of deferred acquisition costs. This is
determined solely by the amount of life insurance premiums received. We believe
this charge is reasonable in relation to our increased federal tax burden under
IRC Section 848 resulting from the receipt of premium payments. No charge will
be deducted where premiums received from you are not subject to this tax, such
as premiums paid on policies issued to individual qualified plans.
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
44
<PAGE> 61
claims. We assume an expense risk that other expenses incurred in issuing and
administering the policies and operating MONY America Variable Account L will be
greater than the amount estimated when setting the charges for these expenses.
We will realize a profit from this fee to the extent it is not needed to provide
benefits and pay expenses under the policies. We may use this profit for other
purposes. These purposes may include any distribution expenses not covered by
the sales charge or surrender charge.
This charge is not assessed against the amount of the policy Fund Value
that is allocated to the Guaranteed Interest Account, nor to amounts in the Loan
Account.
DEDUCTIONS FROM FUND VALUE --
A charge called the Monthly Deduction is deducted from the Fund Value on
each monthly anniversary day. The Monthly Deduction consists of the following
items:
Cost of Insurance -- This charge compensates us for the anticipated cost
of paying death benefits in excess of Fund Value to
insureds' beneficiaries. The amount of the charge
is equal to a current cost of insurance rate
multiplied by the net amount at risk under the
policy at the beginning of each policy month. Here,
net amount at risk equals the death benefit payable
at the beginning of the policy month less the Fund
Value at that time.
The policy contains guaranteed cost of insurance rates that may not be
increased. The guaranteed rates are based on the 1980 Commissioners Standard
Ordinary Smoker and Nonsmoker Mortality Tables. (For issue ages under 18, no
smoker/nonsmoker adjustment is made until attained age 15. Where unisex cost of
insurance rates apply, the 1980 Commissioners Ordinary Smoker and Nonsmoker
Mortality Table B applies.) These rates are based on the age and underwriting
class of the insured. They are also based on the gender of the insured, but
unisex rates are used where appropriate under applicable law. Unisex rates apply
to policies issued for delivery in the State of Montana and to policies
purchased by employers and employee organizations in connection with employment
related insurance or benefit programs. As of the date of this prospectus, we
charge "current rates" that are lower (i.e. less expensive) than the guaranteed
rates. We may change current rates in the future. Like the guaranteed rates, the
current rates also vary with the age, gender, smoking status, and underwriting
class of the insured. In addition, they also vary with the policy duration. The
cost of insurance rate generally increases with the age of the insured.
If there have been increases in the Specified Amount, then for purposes of
calculating the cost of insurance charge, the Fund Value will first be applied
to the initial Specified Amount. If the Fund Value exceeds the initial Specified
Amount, the excess will then be applied to any increase in Specified Amount in
the order of the increases. If the death benefit equals the Fund Value
multiplied by the applicable death benefit percentage, any increase in Fund
Value will cause an automatic increase in the death benefit. The underwriting
class and duration for such increase will be the same as that used for the most
recent increase in Specified Amount (that has not been eliminated through a
later decrease in Specified Amount).
Administrative Charge -- $5.00 per month
This charge reimburses us for expenses associated with administration and
maintenance of the policies. The charge is guaranteed never to exceed $5.00. We
do not expect to profit from this charge.
Monthly per $1,000
Specified Amount Charge -- This charge applies for the first 15 years
following the issuance of the policy or an increase
in the Specified Amount. The charge is made per
$1,000 of Specified Amount based on issue age,
gender. The monthly per $1,000 factors are shown in
Appendix B.
45
<PAGE> 62
Guaranteed Death Benefit
Charge -- If you elect the Guaranteed Death Benefit Rider,
you will be charged $0.01 per $1,000 of policy
Specified Amount and certain Rider amounts per
month during the term of the Guaranteed Death
Benefit Rider. This charge is guaranteed never to
exceed this amount.
Optional Insurance Benefits
Charge -- A monthly deduction for any other optional
insurance benefits added to the policy by rider.
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 80%
to zero over 15 years (11 years for issue ages
76-85) based on a schedule. The factors per $1,000
vary by issue age, gender, and underwriting class.
The grading percentages (as shown below) vary based
on issue age and number of full years since the
Policy was issued (or since the increase in
Specified Amount).
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
GRADING PERCENTAGES PERCENT FOR ISSUE AGES PERCENT FOR ISSUE AGES
POLICY YEARS 0-75 76-85
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1-3 80% 80%
-----------------------------------------------------------------------------------------------------------------------
4 80 70
-----------------------------------------------------------------------------------------------------------------------
5 80 60
-----------------------------------------------------------------------------------------------------------------------
6 80 50
-----------------------------------------------------------------------------------------------------------------------
7 80 40
-----------------------------------------------------------------------------------------------------------------------
8 70 30
-----------------------------------------------------------------------------------------------------------------------
9 60 20
-----------------------------------------------------------------------------------------------------------------------
10 50 10
-----------------------------------------------------------------------------------------------------------------------
11 40 0
-----------------------------------------------------------------------------------------------------------------------
12 30 0
-----------------------------------------------------------------------------------------------------------------------
13 20 0
-----------------------------------------------------------------------------------------------------------------------
14 10 0
-----------------------------------------------------------------------------------------------------------------------
15+ 0 0
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: Issue ages for policies issued to Individual Qualified Plans are limited
to ages 18-70
The surrender charge is a contingent deferred load. It is a contingent load
because it is assessed only if the policy is surrendered or if the policy
lapses. It is a deferred load because it is not deducted from the premiums paid.
The purpose of the surrender charge is to reimburse us for some of the expenses
of distributing the policies.
Example: If a male insured age 35 purchases a policy with a Specified
Amount of $100,000, the per $1,000 of initial Specified Amount
surrender charge factor would be $7.25 (Preferred, nonsmoker).
The maximum surrender charge during the first seven policy years
would be 80% of (100 x 7.25) or $580.00.
The maximum surrender charge per $1,000 of initial Specified Amount factor
would be $64.00 based upon the assumptions described above and if the policy
were purchased by a male insured age 85, standard smoker.
46
<PAGE> 63
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
applicable 15-year or 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.
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 the following charges will not increase:
(1) Mortality and expense risk charge.
(2) Administrative charge.
(3) Per $1,000 Specified Amount charge.
(4) Sales charge.
(5) Guaranteed cost of insurance rates.
(6) Surrender charge.
(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,
47
<PAGE> 64
(3) length of time policies will remain in effect,
(4) expenses, and
(5) taxes.
In no event will they exceed the guaranteed rates defined in the policy.
OTHER INFORMATION
FEDERAL INCOME TAX CONSIDERATIONS
The following provides a general description of the federal income tax
considerations relating to the policy. This discussion is based upon our
understanding of the present federal income tax laws as the Internal Revenue
Service ("IRS") currently interprets them. This discussion is not intended as
tax advice. Tax laws are very complex and tax results will vary according to
your individual circumstances. A person considering the purchase of the policy
may need tax advice. It should be understood that these comments on federal
income tax consequences are not an exhaustive discussion of all tax questions
that might arise under the policy. Special rules that are not discussed here may
apply in certain situations. We make no representation as to the likelihood of
continuation of federal income tax or estate or gift tax laws or of the current
interpretations of the IRS or the courts. Future legislation may adversely
affect the tax treatment of life insurance policies or other tax rules that we
describe here or that relate directly or indirectly to life insurance policies.
Our comments do not take into account any state or local income tax
considerations that may be involved in the purchase of the policy.
Definition of Life Insurance
Under section 7702 of the Internal Revenue Code (the "Code"), a policy will
be treated as a life insurance policy for federal tax purposes if one of two
alternate tests are met. These tests are:
(1) "Cash Value Accumulation Test".
(2) "Guideline Premium/Cash Value Corridor Test".
Your policy is tested under the Guideline Premium/Cash Value Corridor Test.
This test provides for, among other things
(1) a maximum allowable premium per thousand dollars of death benefit,
known as the "guideline annual premium", and
(2) a minimum ongoing "corridor" of death benefit in relation to the
Fund Value of the policy, known as the "death benefit percentage".
See Appendix A, for a table of the Guideline Premium/Cash Value Corridor Test
factors.
We believe that the policy meets this statutory definition of life
insurance and hence will receive federal income tax treatment consistent with
that of fixed life insurance. Thus, the death benefit should be excludable from
the gross income of the beneficiary (whether the beneficiary is a corporation,
individual or other entity) under Section 101 (a) (1) of the Code for purposes
of the regular federal income tax. You generally should not be considered to be
in constructive receipt of the cash values under the policy until a full
surrender, maturity of the policy, or a partial surrender. In addition, certain
policy loans may be taxable in the case of policies that are modified endowment
contracts. Prospective policy owners that intend to use policies to fund
deferred compensation arrangements for their employees are urged to consult
their tax advisors with respect to the tax consequences of such arrangements.
Prospective corporate owners should consult their tax advisors about the
treatment of life insurance in their particular circumstances for purposes of
the alternative minimum tax applicable to corporations.
48
<PAGE> 65
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> 66
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.
Pension and Profit Sharing Plans
Policies purchased by a fund, which is part of a pension or profit sharing
plan (under Sections 401(a) or 403 of the Code), will be treated differently
from that described above. For participants in these plans, the current cost of
insurance for the net amount at risk is treated as a "current fringe benefit."
The current
50
<PAGE> 67
cost of insurance must be included annually in the plan participant's gross
income. This cost (referred to as the "P.S. 58" cost) is reported to the
participant annually. The excess of the death benefit over the policy Fund Value
will not be subject to federal income tax if
(1) the plan participant dies while covered by the plan, and
(2) the policy proceeds are paid to the participant's beneficiary.
However, the policy Fund Value will generally be taxable to the extent it
exceeds the sum of (1) $5,000 plus (2) the participant's cost basis in the
policy. The participant's cost basis will generally include the costs of
insurance previously reported as income to the participant. Special rules may
apply if the participant has borrowed from his or her policy or was an
owner-employee under the plan.
There are limits on the amounts of life insurance that may be purchased on
behalf of a participant in a pension or profit sharing plan. Complex rules, in
addition to those discussed above, apply whenever life insurance is purchased by
a tax-qualified plan.
Other Employee Benefit Programs
Complex rules may apply when a policy is held by an employer or a trust, or
acquired by an employee, to provide for employee benefits. These policy owners
also must consider whether the policy was applied for by or issued to a person
having an insurable interest under applicable state law. The lack of insurable
interest may, among other things, affect the qualification of the policy as life
insurance for federal income tax purposes. It may also affect the right of the
beneficiary to death benefits. Employers and employer-created trusts may be
subject to reporting, disclosure, and fiduciary obligations under the Employee
Retirement Income Security Act of 1974 (ERISA). The policy owner's legal advisor
should be consulted to address these issues.
Diversification Requirements
To comply with regulations under Section 817(h) of the Code, each portfolio
is required to diversify its investments. Generally, on the last day of each
quarter of a calendar year:
(1) No more than 55% of the value of the portfolio's assets can be
represented by any one investment;
(2) No more than 70% can be represented by any two investments;
(3) No more than 80% can be represented by any three investments; and
(4) No more than 90% can be represented by any four investments.
Securities of a single issuer generally are treated for purposes of Section
817(h) as a single investment. However, for this purpose, each U.S. Government
agency or instrumentality is treated as a separate issuer. Any security issued,
guaranteed, or insured (to the extent guaranteed and insured) by the U.S. or by
an agency or instrumentality of the U.S. is treated as a security issued by the
U.S. Government or its agency or instrumentality, as applicable.
Currently, for federal income tax purposes, the portfolio shares underlying
the subaccounts available under the policies are owned by the Company and not by
you or any beneficiary. However, no representation is or can be made regarding
the likelihood of the continuation of current interpretations by the IRS.
Other
Federal estate and gift and state and local estate, inheritance, and other
tax consequences of ownership or receipt of policy proceeds depend on the
jurisdiction and the circumstances of each owner or beneficiary.
For complete information on federal, state, local and other tax
considerations, a qualified tax advisor should be consulted.
51
<PAGE> 68
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, or
(2) there are changes made in the federal income tax treatment of
variable life insurance at the insurance company level, or
(3) there is a change in the Company's tax status.
Under current laws, the Company may incur state and local taxes (in
addition to premium taxes imposed by the states) in several states. At present,
these taxes are not significant. If there is a material change in applicable
state or local tax laws or in the cost to the Company, the Company reserves the
right to charge the Account for any such taxes attributable to the Account.
VOTING OF FUND SHARES
Based on its view of present applicable law, the Company will exercise
voting rights attributable to the shares of each portfolio of the Funds held in
the subaccounts. We will exercise such rights at any regular and special
meetings of the shareholders of the Funds on matters requiring shareholder
voting under the Investment Company Act of 1940. Our will exercise of these
voting rights will be based on instructions received from persons having the
voting interest in corresponding subaccounts of MONY America Variable Account L.
We may elect to vote the shares of the Funds in our own right if
(1) the Investment Company Act of 1940 or any regulations thereunder
is amended, or
(2) the present interpretation of the Act should change, and
(3) as a result we determine that it is permitted to vote the shares
of the Funds in our right.
The person having the voting interest under a policy is the policy owner.
Unless otherwise required by applicable law, a policy owner will have the right
to instruct for the number of votes of any portfolio determined by dividing his
or her Fund Value in the subaccount that corresponds to the portfolio by $100.
Fractional votes will be counted. The number policy owner votes will be
determined as of the date set by the Company. However, such date will not be
more than 90 days prior to the date established by the corresponding Fund for
determining shareholders eligible to vote at that Fund's meeting. If required by
the Securities and Exchange Commission, the Company reserves the right to
determine the voting rights in a different fashion. Voting instructions may be
cast in person or by proxy.
If the Company does not receive voting instructions from the policy owner
on time, the Company will vote his or her votes. The Company will vote in the
same proportion as voting instructions received on time for all policies
participating in that subaccount. The Company will also exercise the voting
rights from assets in each subaccount, which are not otherwise attributable to
policy owners. These votes will be exercised in the same proportion as the
voting instructions that are received on time for all policies participating in
that subaccount. Generally, the Company will vote any voting rights attributable
to shares of portfolios of the Funds held in its General Account. These votes
will be exercised in the same proportion as the aggregate votes cast with
respect to shares of portfolios of the Funds held by MONY America Variable
Account L and other separate accounts of the Company.
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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
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
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<PAGE> 70
eliminate one or more subaccounts if, in its sole discretion, marketing, tax, or
investment conditions so warrant.
If a substitution or change is made, the Company may make changes in this
and other policies as may be necessary or appropriate to reflect such
substitution or change. If the Company considers it to be in the best interests
of persons having voting rights under the policies, MONY America Variable
Account L may
(1) be operated as a management investment company under the
Investment Company Act of 1940 or any other form permitted by law,
(2) be deregistered under that Act if such registration is no longer
required, or
(3) be combined with other separate accounts of the Company or an
affiliate thereof.
Subject to compliance with applicable law, the Company also may combine one or
more Subaccounts and may establish a committee, board, or other group to manage
one or more aspects of the operation of MONY America Variable Account L.
CHANGES TO COMPLY WITH LAW
The Company reserves the right to make any change without consent of policy
owners to the provisions of the policy to comply with, or give policy owners the
benefit of, any Federal or State statute, rule, or regulation. Federal and State
laws include but not limited to requirements for life insurance contracts under
the Internal Revenue Code, and regulations of the United States Treasury
Department or any state.
PERFORMANCE INFORMATION
We may advertise the performance of the MONY America Variable Account L
subaccounts. We will also report performance to policy owners and may make
performance information available to prospective purchasers. This information
will be presented in compliance with applicable law.
Performance information may show the change in a policy owner's Fund Value
in one or more subaccounts, or as a change in a policy owner's death benefit.
Performance information may be expressed as a change in a policy owner's Fund
Value over time or in terms of the average annual compounded rate of return on
the policy owner's Fund Value. Such performance is based upon a hypothetical
policy in which premiums have been allocated to a particular subaccount of MONY
America Variable Account L over certain periods of time that will include one,
five and ten years, or from the commencement of operation of the subaccount of
MONY America Variable Account L if less than one, five, or ten years. Any such
quotation may reflect the deduction of all applicable charges to the policy
including premium load, the cost of insurance, the administrative charge, and
the mortality and expense risk charge. The quotation may also reflect the
deduction of the surrender charge, if applicable, by assuming surrender at the
end of the particular period. However, other quotations may simultaneously be
given that do not assume surrender and do not take into account deduction of the
surrender charge.
Performance information for MONY America Variable Account L may be compared
in advertisements, sales literature, and reports to policy owners to:
(1) Other variable life separate accounts or investment products
tracked by research firms, ratings services, companies, publications, or
persons who rank separate accounts or investment products on overall
performance or other criteria; and
(2) The Consumer Price Index (measure for inflation) to assess the
real rate of return from the purchase of a policy.
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<PAGE> 71
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 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.
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DEATH BENEFIT
The death benefit under the policy will be determined in the same fashion
if you have Fund Value in the Guaranteed Interest Account or Fund Value in the
subaccounts. The death benefit under Option 1 will be equal to the Specified
Amount of the Policy or, if greater, Fund Value on the date of death multiplied
by a death benefit percentage. Under Option 2, the Death Benefit will be equal
to the Specified Amount of the Policy plus the Fund Value or, if greater, Fund
Value on the date of death multiplied by a death benefit percentage. See "Death
Benefits under the Policy," page 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:
(1) Transfers to the Guaranteed Interest Account may be made at any time
and in any amount.
(2) Transfers from the Guaranteed Interest Account to the subaccounts
are limited to
(a) one in any policy year, and
(b) the period which begins on the policy anniversary and which
ends 30 days after the policy anniversary.
If the transfer request is received on the policy anniversary, it will be
processed as of the policy anniversary. If the transfer request is received
within 30 days after the policy anniversary, the transfer will be effective as
of the close of business on the day received if it is a Business Day. If it is
not a Business Day, then at the close of business on the next day which is a
Business Day. Any request received within 10 days before the policy anniversary
will be considered received on the policy anniversary. Any transfer requests
received at other times will not be honored, and will be returned to the policy
owner.
Currently there is no charge imposed upon transfers; however, the Company
reserves the right to assess such a charge in the future.
SURRENDERS AND POLICY LOANS
You may also make full surrenders and partial surrenders from the
Guaranteed Interest Account to the same extent as if you had allocated premiums
and cash values to the subaccounts. See "Full Surrender," page 39 and "Partial
Surrender", page 39. Transfers and surrenders payable from the Guaranteed
Interest Account, and the payment of policy loans allocated to the Guaranteed
Interest
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Account, may be delayed for up to six months. However, the Company will not
delay payment of surrenders or loans, the proceeds of which will be used to pay
premiums on the policy.
MORE ABOUT THE POLICY
OWNERSHIP
The policy owner is the individual named as such in the application or in
any later change shown in the Company's records. While the insured is living,
the policy owner alone has the right to receive all benefits and exercise all
rights that the policy grants or the Company allows.
Joint Owners
If more than one person is named as policy owner, they are joint owners.
Any policy transaction requires the signature of all persons named jointly.
Unless otherwise provided, if a joint owner dies, ownership passes to the
surviving joint owner(s). When the last joint owner dies, ownership passes
through that person's estate, unless otherwise provided.
BENEFICIARY
The beneficiary is the individual named as such in the application or any
later change shown in the Company's records. The policy owner may change the
beneficiary at any time during the life of the insured by written request on
forms provided by the Company. The Company must receive the request at its
administrative office. The change will be effective as of the date this form is
signed. Contingent and/or concurrent beneficiaries may be designated. The policy
owner may designate a permanent beneficiary, whose rights under the policy
cannot be changed without his or her consent. Unless otherwise provided, if no
designated beneficiary is living upon the death of the insured, the policy owner
or the policy owner's estate is the beneficiary.
The Company will pay the death benefit proceeds to the beneficiary. Unless
otherwise provided, the beneficiary must be living at the time of the insured's
death to receive the proceeds.
The Policy
This Policy is a contract between the policy owner and the Company. The
entire contract consists of the policy, a copy of the initial application, all
subsequent applications to change the policy, any endorsements, all riders, and
all additional policy information sections (specification pages) added to the
policy.
NOTIFICATION AND CLAIMS PROCEDURES
Any election, designation, change, assignment, or request made by you must
be in writing on a form acceptable to the Company. The Company is not liable for
any action taken before such written notice is received and recorded. The
Company may require that the policy be returned for any policy change or upon
its surrender.
If an insured dies while the policy is in effect, notice should be given to
the Company as soon as possible. Claim procedure instructions will be sent
immediately. As due proof of death, the Company may require proof of age and a
certified copy of a death certificate. The Company may also require the
beneficiary and the insured's next of kin to sign authorizations as part of this
process. These authorization forms allow the Company to obtain information about
the insured, including but not limited to medical records of physicians and
hospitals used by the insured.
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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:
(1) 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
(2) An emergency exists, as determined by the SEC, as a result of which
disposal of securities is not reasonably practicable or it is not
reasonably practicable to determine the value of the Account's net
assets.
PAYMENT PLAN/SETTLEMENT PROVISIONS
Maturity or surrender benefits may be used to purchase a payment plan
providing monthly income for the lifetime of the Insured. Death benefit proceeds
may be used to purchase a payment plan providing monthly income for the lifetime
of the beneficiary. The monthly payments consisting of proceeds plus interest
will be paid in equal installments for at least ten years. The purchase rates
for the payment plan are guaranteed not to exceed those shown in the policy, but
current rates that are lower (i.e., providing greater income) may be established
by the Company from time to time. This benefit is not available if the income
would be less than $25 a month or if the proceeds are less than $1,000. Maturity
or surrender benefits or death benefit proceeds may be used to purchase any
other payment plan that the Company makes available at that time.
PAYMENT IN CASE OF SUICIDE
If the insured dies by suicide, (1) while sane or insane, (2) within two
years from the policy date or reinstatement date, the Company will limit the
death benefit proceeds to the premium payments less any partial surrender
amounts (and their fees) and any Outstanding Debt. If an insured dies by
suicide, (1) while sane or insane, (2) within two years of the effective date of
any increase in the Specified Amount, the Company will refund the cost of
insurance charges made with respect to such increase.
ASSIGNMENT
You may assign your policy as collateral security for a loan or other
obligation. No assignment will bind the Company unless the original, or a copy,
is received at the Company's administrative office. The assignment will be
effective only when recorded by the Company. An assignment does not change the
ownership of the policy. However, after an assignment, the rights of any policy
owner or beneficiary will be subject to the assignment. The entire policy,
including any attached payment option or rider, will be subject to the
assignment. The Company will rely solely on the assignee's statement as to the
amount of the assignee's interest. The Company will not be responsible for the
validity of any assignment. Unless otherwise provided, the assignee may exercise
all rights this policy grants except (a) the right to change the policy owner or
beneficiary, and (b) the right to elect a payment option. Assignment of a policy
that is a modified endowment contract may generate taxable income. (See "Federal
Income Tax Considerations", page 48.)
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ERRORS ON THE APPLICATION
If the age or gender of the insured has been misstated, the death benefit
under this policy will be the greater of
(1) what would be purchased by the most recent cost of insurance
charge at the correct age and gender, or
(2) the death benefit derived by multiplying the Fund Value by the
death benefit percentage for the correct age and gender.
If unisex cost of insurance rates apply, no adjustment will be made for a
misstatement of gender. See "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 the insured's lifetime for two years from the
policy date; and
(2) An increase in the Specified Amount or any reinstatement cannot be
contested after the increase or the reinstated policy has been in force
during an Insured's lifetime for two years from its effective date.
POLICY ILLUSTRATIONS
Upon request, the Company will send you an illustration of future benefits
under the policy based on both guaranteed and current cost assumptions.
DISTRIBUTION OF THE POLICY
MONY Securities Corporation ("MSC"), a wholly owned subsidiary of MONY Life
Insurance Company, is principal underwriter (distributor) of the policies. MSC
is a New York corporation organized on September 26, 1969. MSC is registered as
a broker-dealer under the Securities Exchange Act of 1934 and is a member of the
National Association of Securities Dealers. The policies are sold by individuals
who are registered representatives of MSC and who are also licensed as life
insurance agents for the Company. The policies may also be sold through other
broker/dealers authorized by MSC and applicable law to do so.
Except where MSC has authorized other broker/dealers to sell the policies
(as described in the preceding paragraph), compensation payable for the sale of
the policies will be based upon the following schedule. After issue of the
Contract, commissions will equal at most 50 percent of premiums paid up to a
maximum amount. Thereafter, commissions will equal at most 3.0 percent of any
additional premiums plus, on the sixth and each succeeding quarterly anniversary
for so long as the policy shall remain in effect, an annualized rate of 0.15
percent of the Fund Value of the policy. Upon any subsequent increase in
Specified Amount, commissions will equal at most 50 percent of premiums paid on
or after the increase up to a maximum amount. Thereafter, commissions will
return to no more than the 3.0 percent level. Further, registered
representatives may be eligible to receive certain bonuses and other benefits
based on the amount of earned commissions.
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.
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MORE ABOUT THE COMPANY
MANAGEMENT
The directors and officers of the Company are listed below. The business
address for all directors and officers of MONY Life Insurance Company of America
is 1740 Broadway, New York, New York 10019.
Current Officers and Directors of the Company are:
<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
---- -----------------------------------
<S> <C>
Michael I. Roth....................................... Director, Chairman and Chief Executive
Officer
Samuel J. Foti........................................ Director, President and Chief Operating
Officer
Kenneth M. Levine..................................... Director and Executive Vice President
Richard E. Connors.................................... Director
Richard Daddario...................................... Director, Vice President and Controller
Phillip A. Eisenberg.................................. Director, Vice President and Actuary
Margaret G. Gale...................................... Director and Vice President
Stephen J. Hall....................................... Director
Charles P. Leone...................................... Director, Vice President and Chief
Compliance Officer
Sam Chiodo............................................ Vice President
William D. Goodwin.................................... Vice President
Evelyn L. Peos........................................ Vice President
Michael Slipowitz..................................... Vice President
David S. Waldman...................................... Secretary
David V. Weigel....................................... Treasurer
</TABLE>
No officer or director listed above receives any compensation from MONY
America Variable Account L. The Company or any of its affiliates has paid no
separately allocable compensation to any person listed for services rendered to
the Account.
Biographical information for each of the individuals listed in the above
table is set forth below.
Set forth below is a description of the business positions during at least
the past five years for the directors and the executive officers of the Company.
Michael I. Roth is Director, Chairman of the Board and Chief Executive
Officer of the Company. He is Chairman of the Board (since July 1993) and Chief
Executive Officer (since January 1993) of MONY and has been a 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 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
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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 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.
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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.
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
62
<PAGE> 79
(4) the validity of the forms of the policies under Arizona law.
Edward P. Bank, then Vice President and Deputy General Counsel of The
Mutual Life Insurance Company of New York (now MONY Life Insurance Company) has
passed upon legal matters relating to the federal income tax laws.
REGISTRATION STATEMENT
A Registration Statement under the Securities Act of 1933 has been filed
with the SEC relating to the offering described in this Prospectus. This
Prospectus does not include all of the information set forth in the Registration
Statement, as portions have been omitted pursuant to the rules and regulations
of the SEC. The omitted information may be obtained at the SEC's principal
office in Washington, D.C., upon payment of the SEC's prescribed fees.
INDEPENDENT ACCOUNTANTS
The audited financial statements for MONY America Variable Account L and
for the Company for the year ended December 31, 1999 included in this Prospectus
and in the Registration Statement have been audited by PricewaterhouseCoopers
LLP, independent accountants, as indicated in their reports herein. The audited
financial statements are included in reliance upon the authority of said firm as
experts in accounting and auditing. PricewaterhouseCoopers LLP's office is
located at 1177 Avenue of the Americas, New York, New York, 10036.
FINANCIAL STATEMENTS
The audited financial statements for MONY America Variable Account L are
set forth herein, starting on page F-2. The audited financial statements of the
Company are set forth herein, starting on page F-12.
The financial statements of MONY America Variable Account L and of the
Company have been audited by PricewaterhouseCoopers LLP. The financial
statements of the Company should be distinguished from the financial statements
of MONY America Variable Account L and should be considered only as bearing upon
the ability of the Company to meet its obligations under the Policies.
63
<PAGE> 80
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 81
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
With respect to MONY America Variable Account L:
Statement of Assets and Liabilities as of September 30,
2000 (unaudited)....................................... F-2
Statement of Operations for the nine months ended
September 30, 2000 (unaudited)......................... F-6
Statement of Changes in Net Assets for the periods ended
September 30, 2000 and December 31, 1999 (unaudited)... F-10
Notes to Financial Statements............................. F-18
Report of Independent Accountants......................... F-21
Statements of Assets and Liabilities as of December 31,
1999................................................... F-22
Statements of Operations for the periods ended December
31, 1999............................................... F-26
Statements of Changes in Net Assets for the periods ended
December 31, 1999 and December 31, 1998................ F-30
Notes to Financial Statements............................. F-37
Report of Independent Accountants......................... F-40
Statements of Assets and Liabilities as of December 31,
1998................................................... F-41
Statements of Operations for the periods ended December
31, 1998............................................... F-43
Statements of Changes in Net Assets for the periods ended
December 31, 1998...................................... F-45
Notes to Financial Statements............................. F-47
With respect to MONY Life Insurance Company of America:
Unaudited interim condensed consolidated balance sheets as
of September 30, 2000 and December 31, 1999............ F-50
Unaudited interim condensed consolidated statements of
income and comprehensive income for the three-month
periods ended September 30, 2000 and 1999.............. F-51
Unaudited interim condensed consolidated statements of
income and comprehensive income for the nine-month
periods ended September 30, 2000 and 1999.............. F-52
Unaudited interim condensed consolidated statement of
changes in shareholders' equity for the nine-month
period ended September 30, 2000........................ F-53
Unaudited interim condensed consolidated statements of
cash flows for the nine-month period ended September
30, 2000 and 1999...................................... F-54
Notes to unaudited interim condensed consolidated
financial statements................................... F-55
Report of Independent Accountants......................... F-58
Balance sheets as of December 31, 1999 and 1998........... F-59
Statements of income and comprehensive income for the
years ended December 31, 1999,
1998 and 1997.......................................... F-60
Statements of changes in shareholder's equity for the
years ended December 31, 1999,
1998 and 1997.......................................... F-61
Statements of cash flows for the years ended December 31,
1999, 1998 and 1997.................................... F-62
Notes to financial statements............................. F-64
</TABLE>
F-1
<PAGE> 82
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------- ---------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds... 49,548 65,029 54,313 3,413,936 143,606 154,926 294,792
======== ======== ======== ========== ========== ========== ==========
Investments at cost............... $525,598 $799,952 $578,930 $3,413,936 $5,541,814 $4,638,359 $9,200,072
======== ======== ======== ========== ========== ========== ==========
Investments in respective Funds,
at net asset value.............. $526,700 $812,210 $591,466 $3,413,936 $4,911,342 $4,052,877 $6,995,409
Amount due from respective
Funds........................... 11 5,837 50 547 15,340 2,873 12,608
Amount due from MONY America...... 224 423 127 1,328 7,483 6,002 11,492
-------- -------- -------- ---------- ---------- ---------- ----------
Total assets............. 526,935 818,470 591,643 3,415,811 4,934,165 4,061,752 7,019,509
-------- -------- -------- ---------- ---------- ---------- ----------
LIABILITIES
Amount due to respective Funds.... 224 423 127 1,328 7,483 6,002 11,492
Amount due to MONY America........ 483 6,558 619 3,451 19,686 6,763 19,385
-------- -------- -------- ---------- ---------- ---------- ----------
Total liabilities........ 707 6,981 746 4,779 27,169 12,765 30,877
-------- -------- -------- ---------- ---------- ---------- ----------
Net assets........................ $526,228 $811,489 $590,897 $3,411,032 $4,906,996 $4,048,987 $6,988,632
======== ======== ======== ========== ========== ========== ==========
Net assets consist of:
Contractholders' net payments... $506,754 $777,720 $563,291 $3,286,392 $4,209,117 $3,711,262 $6,762,765
Undistributed net investment
income........................ 26,969 38,368 17,763 124,640 1,261,054 864,265 3,037,020
Accumulated net realized gain
(loss) on investments......... (8,597) (16,857) (2,693) 0 67,297 57,942 (606,490)
Net unrealized appreciation
(depreciation) of
investments................... 1,102 12,258 12,536 0 (630,472) (584,482) (2,204,663)
-------- -------- -------- ---------- ---------- ---------- ----------
Net assets........................ $526,228 $811,489 $590,897 $3,411,032 $4,906,996 $4,048,987 $6,988,632
======== ======== ======== ========== ========== ========== ==========
Number of units outstanding*...... 50,365 81,488 55,830 312,760 363,117 306,031 636,224
-------- -------- -------- ---------- ---------- ---------- ----------
Net asset value per unit
outstanding*.................... $ 10.45 $ 9.96 $ 10.58 $ 10.91 $ 13.51 $ 13.23 $ 10.98
======== ======== ======== ========== ========== ========== ==========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-2
<PAGE> 83
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ----------- ---------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective
Funds....................... 291,966 170,889 2,448,995 740,975 336,998 201,081 458,955
========== ======== =========== ========== ========== ========== ==========
Investments at cost........... $2,389,054 $844,068 $15,081,235 $4,529,123 $3,006,457 $1,051,037 $3,574,175
========== ======== =========== ========== ========== ========== ==========
Investments in respective
Funds, at net asset value... $2,075,879 $816,847 $14,106,214 $4,697,784 $3,167,777 $1,091,869 $3,621,156
Amount due from respective
Funds....................... 1,199 5,834 18,634 11,332 1,803 1,790 17,637
Amount due from MONY
America..................... 835 496 20,465 6,259 4,545 650 7,287
---------- -------- ----------- ---------- ---------- ---------- ----------
Total assets......... 2,077,913 823,177 14,145,313 4,715,375 3,174,125 1,094,309 3,646,080
---------- -------- ----------- ---------- ---------- ---------- ----------
LIABILITIES
Amount due to respective
Funds....................... 835 496 20,465 6,259 4,545 650 7,287
Amount due to MONY America.... 3,195 6,596 32,718 15,690 4,591 2,961 21,038
---------- -------- ----------- ---------- ---------- ---------- ----------
Total liabilities.... 4,030 7,092 53,183 21,949 9,136 3,611 28,325
---------- -------- ----------- ---------- ---------- ---------- ----------
Net assets.................... $2,073,883 $816,085 $14,092,130 $4,693,426 $3,164,989 $1,090,698 $3,617,755
========== ======== =========== ========== ========== ========== ==========
Net assets consist of:
Contractholders' net
payments.................. $2,022,512 $795,084 $14,498,501 $4,415,374 $2,678,252 $1,054,964 $3,135,437
Undistributed net investment
income (loss)............. 218,504 72,018 90,361 (627) 14,797 2,203 166,176
Accumulated net realized
gain (loss) on
investments............... 146,042 (23,796) 478,289 110,018 310,620 (7,301) 269,161
Net unrealized appreciation
(depreciation) of
investments............... (313,175) (27,221) (975,021) 168,661 161,320 40,832 46,981
---------- -------- ----------- ---------- ---------- ---------- ----------
Net assets.................... $2,073,883 $816,085 $14,092,130 $4,693,426 $3,164,989 $1,090,698 $3,617,755
========== ======== =========== ========== ========== ========== ==========
Number of units
outstanding*................ 166,988 77,889 1,242,412 378,832 177,683 99,732 223,643
---------- -------- ----------- ---------- ---------- ---------- ----------
Net asset value per unit
outstanding*................ $ 12.42 $ 10.48 $ 11.34 $ 12.39 $ 17.81 $ 10.94 $ 16.18
========== ======== =========== ========== ========== ========== ==========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-3
<PAGE> 84
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION FIDELITY VARIABLE INSURANCE PRODUCTS
TRUST FUNDS
----------------------- DREYFUS ----------------------------------------
DREYFUS SOCIALLY VIP III
MULTI-CAP STOCK RESPONSIBLE VIP VIP II GROWTH
GROWTH BALANCED INDEX GROWTH GROWTH CONTRA-FUND OPPORTUNITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ----------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds... 355,966 29,857 47,341 5,622 24,522 57,258 17,481
========== ======== ========== ======== ========== ========== ========
Investments at cost............... $5,053,310 $152,479 $1,795,527 $223,667 $1,249,517 $1,446,314 $359,902
========== ======== ========== ======== ========== ========== ========
Investments in respective Funds,
at net asset value.............. $4,634,672 $147,194 $1,777,649 $223,708 $1,216,802 $1,450,919 $348,230
Amount due from respective
Funds........................... 10,063 160 1,693 48 1,422 1,631 308
Amount due from MONY America...... 582 8 444 67 685 319 62
---------- -------- ---------- -------- ---------- ---------- --------
Total assets.............. 4,645,317 147,362 1,779,786 223,823 1,218,909 1,452,869 348,600
---------- -------- ---------- -------- ---------- ---------- --------
LIABILITIES
Amount due to respective Funds.... 582 8 444 67 685 319 62
Amount due to MONY America........ 14,339 294 3,203 256 2,366 2,836 602
---------- -------- ---------- -------- ---------- ---------- --------
Total liabilities......... 14,921 302 3,647 323 3,051 3,155 664
---------- -------- ---------- -------- ---------- ---------- --------
Net assets........................ $4,630,396 $147,060 $1,776,139 $223,500 $1,215,858 $1,449,714 $347,936
========== ======== ========== ======== ========== ========== ========
Net assets consist of:
Contractholders' net
payments.................... $5,083,043 $151,361 $1,781,087 $213,907 $1,239,394 $1,437,290 $360,943
Undistributed net investment
income (loss)............... (5,569) 762 8,203 2,530 13,077 28,368 4,935
Accumulated net realized gain
(loss) on investments....... (28,440) 222 4,727 7,022 (3,898) (20,549) (6,270)
Net unrealized appreciation
(depreciation) of
investments................. (418,638) (5,285) (17,878) 41 (32,715) 4,605 (11,672)
---------- -------- ---------- -------- ---------- ---------- --------
Net assets........................ $4,630,396 $147,060 $1,776,139 $223,500 $1,215,858 $1,449,714 $347,936
========== ======== ========== ======== ========== ========== ========
Number of units outstanding*...... 384,106 15,004 167,967 19,924 105,242 127,662 36,944
---------- -------- ---------- -------- ---------- ---------- --------
Net asset value per unit
outstanding*.................... $ 12.06 $ 9.80 $ 10.57 $ 11.22 $ 11.55 $ 11.36 $ 9.42
========== ======== ========== ======== ========== ========== ========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements.
F-4
<PAGE> 85
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------
JANUS ASPEN SERIES
---------------------------------------------------
AGGRESSIVE CAPITAL WORLDWIDE
GROWTH BALANCED APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------
<S> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds..................... 68,522 36,455 67,373 56,502
========== ======== ========== ==========
Investments at cost................................. $3,997,290 $968,434 $2,226,258 $2,705,930
========== ======== ========== ==========
Investments in respective Funds, at net asset
value............................................. $3,621,403 $916,103 $2,197,022 $2,399,055
Amount due from respective Funds.................... 4,220 737 2,374 3,893
Amount due from MONY America........................ 4,546 255 3,704 3,635
---------- -------- ---------- ----------
Total assets.............................. 3,630,169 917,095 2,203,100 2,406,583
---------- -------- ---------- ----------
LIABILITIES
Amount due to respective Funds...................... 4,546 255 3,704 3,635
Amount due to MONY America.......................... 7,383 1,442 4,266 6,002
---------- -------- ---------- ----------
Total liabilities......................... 11,929 1,697 7,970 9,637
---------- -------- ---------- ----------
Net assets.......................................... $3,618,240 $915,398 $2,195,130 $2,396,946
========== ======== ========== ==========
Net assets consist of:
Contractholders' net payments..................... $3,698,247 $919,168 $2,185,032 $2,532,883
Undistributed net investment income............... 295,712 57,708 9,955 146,892
Accumulated net realized gain (loss) on
investments.................................... 168 (9,147) 29,379 24,046
Net unrealized appreciation (depreciation) of
investments.................................... (375,887) (52,331) (29,236) (306,875)
---------- -------- ---------- ----------
Net assets.......................................... $3,618,240 $915,398 $2,195,130 $2,396,946
========== ======== ========== ==========
Number of units outstanding*........................ 261,928 86,145 168,524 189,468
---------- -------- ---------- ----------
Net asset value per unit outstanding*............... $ 13.81 $ 10.63 $ 13.03 $ 12.65
========== ======== ========== ==========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements.
F-5
<PAGE> 86
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
----------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------- ----------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income.................. $21,080 $33,822 $16,961 $99,988 $ 30,395 $ 5,844 $ 144,091
Distribution from capital
gains.......................... 0 0 4 0 1,095,083 749,948 2,233,624
Mortality and expense risk
charges........................ (1,135) (1,559) (1,153) (5,882) (9,248) (8,642) (16,077)
------- ------- ------- ------- ---------- --------- -----------
Net investment income............ 19,945 32,263 15,812 94,106 1,116,230 747,150 2,361,638
------- ------- ------- ------- ---------- --------- -----------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................. (956) (4,613) (778) 0 75,039 24,205 (492,221)
Net change in unrealized
appreciation (depreciation)
of investments.............. 491 19,333 11,571 0 (762,713) (695,105) (1,900,222)
------- ------- ------- ------- ---------- --------- -----------
Net realized and unrealized gain
(loss) on investments.......... (465) 14,720 10,793 0 (687,674) (670,900) (2,392,443)
------- ------- ------- ------- ---------- --------- -----------
Net increase (decrease) in net
assets resulting from
operations..................... $19,480 $46,983 $26,605 $94,106 $ 428,556 $ 76,250 $ (30,805)
======= ======= ======= ======= ========== ========= ===========
</TABLE>
See notes to financial statements.
F-6
<PAGE> 87
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ----------- ---------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income............... $ 4,046 $48,689 $ 14,350 $ 11,920 $ 0 $ 5,564 $ 0
Distribution from capital
gains....................... 196,830 0 123,004 145 22,063 0 175,772
Mortality and expense risk
charges..................... (4,615) (1,788) (32,311) (9,497) (5,912) (2,770) (7,399)
--------- ------- ----------- -------- -------- -------- ---------
Net investment income......... 196,261 46,901 105,043 2,568 16,151 2,794 168,373
--------- ------- ----------- -------- -------- -------- ---------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments.............. 110,163 (15,702) 319,161 80,072 271,180 (24,774) 224,209
Net change in unrealized
appreciation
(depreciation) of
investments.............. (587,346) (20,703) (1,980,594) 22,872 (88,475) 47,662 (456,055)
--------- ------- ----------- -------- -------- -------- ---------
Net realized and unrealized
gain (loss) on investments.. (477,183) (36,405) (1,661,433) 102,944 182,705 22,888 (231,846)
--------- ------- ----------- -------- -------- -------- ---------
Net increase (decrease) in net
assets resulting from
operations.................. $(280,922) $10,496 $(1,556,390) $105,512 $198,856 $ 25,682 $ (63,473)
========= ======= =========== ======== ======== ======== =========
</TABLE>
See notes to financial statements.
F-7
<PAGE> 88
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION
TRUST FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS
----------------------- DREYFUS -------------------------------------------
DREYFUS SOCIALLY VIP III
MULTI-CAP STOCK RESPONSIBLE VIP VIP II GROWTH
GROWTH BALANCED INDEX GROWTH GROWTH CONTRA FUND OPPORTUNITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ----------- ----------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income................ $ 0 $ 365 $ 9,186 $ 22 $ 121 $ 814 $ 869
Distribution from capital
gains........................ 2,110 611 910 0 14,478 29,542 4,576
Mortality and expense risk
charges...................... (7,552) (214) (2,705) (429) (1,509) (1,959) (498)
--------- ------- -------- ------- -------- -------- --------
Net investment income (loss)... (5,442) 762 7,391 (407) 13,090 28,397 4,947
--------- ------- -------- ------- -------- -------- --------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments............... (33,674) 222 4,322 7,012 (4,432) (20,795) (6,281)
Net change in unrealized
appreciation
(depreciation) of
investments............... (476,657) (5,305) (21,050) (1,802) (35,723) (2,461) (12,047)
--------- ------- -------- ------- -------- -------- --------
Net realized and unrealized
gain (loss) on investments... (510,331) (5,083) (16,728) 5,210 (40,155) (23,256) (18,328)
--------- ------- -------- ------- -------- -------- --------
Net increase (decrease) in net
assets resulting from
operations................... $(515,773) $(4,321) $ (9,337) $ 4,803 $(27,065) $ 5,141 $(13,381)
========= ======= ======== ======= ======== ======== ========
</TABLE>
See notes to financial statements.
F-8
<PAGE> 89
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------
JANUS ASPEN SERIES
---------------------------------------------------
AGGRESSIVE CAPITAL WORLDWIDE
GROWTH BALANCED APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------
<S> <C> <C> <C> <C>
Dividend income................................ $ 232,402 $34,381 $ 12,188 $ 130,678
Distribution from capital gains................ 68,874 24,116 641 19,925
Mortality and expense risk charges............. (5,456) (1,056) (3,195) (3,655)
--------- ------- -------- ---------
Net investment income.......................... 295,820 57,441 9,634 146,948
--------- ------- -------- ---------
Realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on investments...... (1,741) (9,177) 28,478 22,698
Net change in unrealized depreciation of
investments............................... (434,426) (53,156) (60,922) (329,805)
--------- ------- -------- ---------
Net realized and unrealized loss on
investments.................................. (436,167) (62,333) (32,444) (307,107)
--------- ------- -------- ---------
Net decrease in net assets resulting from
operations................................... $(140,347) $(4,892) $(22,810) $(160,159)
========= ======= ======== =========
</TABLE>
See notes to financial statements.
F-9
<PAGE> 90
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT
TERM BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
2000 DECEMBER 31, 2000 DECEMBER 31, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.............. $ 19,945 $ 7,024 $ 32,263 $ 6,105 $ 15,812 $ 1,951
Net realized loss on investments... (956) (7,641) (4,613) (12,244) (778) (1,915)
Net change in unrealized
appreciation (depreciation) of
investments...................... 491 609 19,333 (7,080) 11,571 965
--------- --------- --------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations.......... 19,480 (8) 46,983 (13,219) 26,605 1,001
--------- --------- --------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units............................ 243,031 711,966 506,014 534,080 372,660 305,134
Net asset value of units redeemed
or used to meet contract
obligations...................... (221,403) (228,769) (166,350) (97,560) (63,296) (51,936)
--------- --------- --------- -------- -------- --------
Net increase from unit
transactions....................... 21,628 483,197 339,664 436,520 309,364 253,198
--------- --------- --------- -------- -------- --------
Net increase in net assets........... 41,108 483,189 386,647 423,301 335,969 254,199
Net assets beginning of period....... 485,120 1,931 424,842 1,541 254,928 729
--------- --------- --------- -------- -------- --------
Net assets end of period*............ $ 526,228 $ 485,120 $ 811,489 $424,842 $590,897 $254,928
========= ========= ========= ======== ======== ========
Unit transactions:
Units outstanding beginning of
period........................... 48,440 193 46,303 155 25,422 73
Units issued during the period..... 23,923 71,100 52,538 56,509 36,600 30,541
Units redeemed during the period... (21,998) (22,853) (17,353) (10,361) (6,192) (5,192)
--------- --------- --------- -------- -------- --------
Units outstanding end of period...... 50,365 48,440 81,488 46,303 55,830 25,422
========= ========= ========= ======== ======== ========
---------------
* Includes undistributed net
investment income of: $ 26,969 $ 7,024 $ 38,368 $ 6,105 $ 17,763 $ 1,951
========= ========= ========= ======== ======== ========
</TABLE>
See notes to financial statements.
F-10
<PAGE> 91
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
---------------------------- -----------------------------------------------------------
MONEY SMALL COMPANY
MARKET EQUITY VALUE
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
2000 DECEMBER 31, 2000 DECEMBER 31, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.............. $ 94,106 $ 30,534 $1,116,230 $ 144,825 $ 747,150 $ 117,115
Net realized gain (loss) on
investments...................... 0 0 75,039 (7,750) 24,205 33,735
Net change in unrealized
appreciation (depreciation) of
investments...................... 0 0 (762,713) 131,997 (695,105) 110,343
----------- ----------- ---------- ---------- ----------- ----------
Net increase in net assets resulting
from operations.................... 94,106 30,534 428,556 269,072 76,250 261,193
----------- ----------- ---------- ---------- ----------- ----------
From unit transactions:
Net proceeds from the issuance of
units............................ 6,321,320 3,691,838 2,834,152 2,705,850 2,496,116 2,882,501
Net asset value of units redeemed
or used to meet contract
obligations...................... (4,532,434) (2,258,987) (833,241) (516,750) (1,066,131) (609,029)
----------- ----------- ---------- ---------- ----------- ----------
Net increase from unit
transactions....................... 1,788,886 1,432,851 2,000,911 2,189,100 1,429,985 2,273,472
----------- ----------- ---------- ---------- ----------- ----------
Net increase in net assets........... 1,882,992 1,463,385 2,429,467 2,458,172 1,506,235 2,534,665
Net assets beginning of period....... 1,528,040 64,655 2,477,529 19,357 2,542,752 8,087
----------- ----------- ---------- ---------- ----------- ----------
Net assets end of the period*........ $ 3,411,032 $ 1,528,040 $4,906,996 $2,477,529 $ 4,048,987 $2,542,752
=========== =========== ========== ========== =========== ==========
Unit transactions:
Units outstanding beginning of
period........................... 146,000 6,463 212,392 1,912 196,273 772
Units issued during the period..... 592,884 359,906 214,523 260,034 191,209 247,197
Units redeemed during the period... (426,124) (220,369) (63,798) (49,554) (81,451) (51,696)
----------- ----------- ---------- ---------- ----------- ----------
Units outstanding end of period...... 312,760 146,000 363,117 212,392 306,031 196,273
=========== =========== ========== ========== =========== ==========
---------------
* Includes undistributed net
investment income of: $ 124,640 $ 30,534 $1,261,054 $ 144,824 $ 864,265 $ 117,115
=========== =========== ========== ========== =========== ==========
</TABLE>
See notes to financial statements.
F-11
<PAGE> 92
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
2000 DECEMBER 31, 2000 DECEMBER 31, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income.............. $2,361,638 $ 675,383 $ 196,261 $ 22,243 $ 46,901 $ 25,115
Net realized gain (loss) on
investments...................... (492,221) (114,285) 110,163 35,877 (15,702) (8,094)
Net change in unrealized
appreciation (depreciation) of
investments...................... (1,900,222) (304,672) (587,346) 274,153 (20,703) (6,521)
---------- ----------- ---------- ---------- --------- ---------
Net increase (decrease) in net assets
resulting from operations.......... (30,805) 256,426 (280,922) 332,273 10,496 10,500
---------- ----------- ---------- ---------- --------- ---------
From unit transactions:
Net proceeds from the issuance of
units............................ 3,527,081 6,547,247 1,546,222 1,275,028 443,054 680,017
Net asset value of units redeemed
or used to meet contract
obligations...................... (1,923,384) (1,414,906) (547,440) (252,640) (220,777) (110,651)
---------- ----------- ---------- ---------- --------- ---------
Net increase from unit
transactions....................... 1,603,697 5,132,341 998,782 1,022,388 222,277 569,366
---------- ----------- ---------- ---------- --------- ---------
Net increase in net assets........... 1,572,892 5,388,767 717,860 1,354,661 232,773 579,866
Net assets beginning of period....... 5,415,740 26,973 1,356,023 1,362 583,312 3,446
---------- ----------- ---------- ---------- --------- ---------
Net assets end of period*............ $6,988,632 $ 5,415,740 $2,073,883 $1,356,023 $ 816,085 $ 583,312
========== =========== ========== ========== ========= =========
Unit transactions:
Units outstanding beginning of
period........................... 489,437 2,653 92,361 131 56,344 345
Units issued during the period..... 323,777 620,235 114,990 114,415 42,877 66,875
Units redeemed during the period... (176,990) (133,451) (40,363) (22,185) (21,332) (10,876)
---------- ----------- ---------- ---------- --------- ---------
Units outstanding end of period...... 636,224 489,437 166,988 92,361 77,889 56,344
========== =========== ========== ========== ========= =========
---------------
* Includes undistributed net
investment income of: $3,037,020 $ 675,382 $ 218,504 $ 22,243 $ 72,018 $ 25,117
========== =========== ========== ========== ========= =========
</TABLE>
See notes to financial statements.
F-12
<PAGE> 93
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------
GROWTH AND SMALL COMPANY
GROWTH INCOME GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
2000 DECEMBER 31, 2000 DECEMBER 31, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)....... $ 105,043 $ (14,681) $ 2,568 $ (3,195) $ 16,151 $ (1,354)
Net realized gain on investments... 319,161 159,102 80,072 29,946 271,180 39,439
Net change in unrealized
appreciation (depreciation) of
investments...................... (1,980,594) 1,005,449 22,872 145,726 (88,475) 249,744
----------- ----------- ----------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations.......... (1,556,390) 1,149,870 105,512 172,477 198,856 287,829
----------- ----------- ----------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of
units............................ 9,291,296 10,743,825 3,100,090 3,055,454 2,531,590 1,122,121
Net asset value of units redeemed
or used to meet contract
obligations...................... (3,424,554) (2,164,169) (1,157,125) (593,120) (804,440) (172,414)
----------- ----------- ----------- ---------- ---------- ----------
Net increase from unit
transactions....................... 5,866,742 8,579,656 1,942,965 2,462,334 1,727,150 949,707
----------- ----------- ----------- ---------- ---------- ----------
Net increase in net assets........... 4,310,352 9,729,526 2,048,477 2,634,811 1,926,006 1,237,536
Net assets beginning of period....... 9,781,778 52,252 2,644,949 10,138 1,238,983 1,447
----------- ----------- ----------- ---------- ---------- ----------
Net assets end of period*............ $14,092,130 $ 9,781,778 $ 4,693,426 $2,644,949 $3,164,989 $1,238,983
=========== =========== =========== ========== ========== ==========
Unit transactions:
Units outstanding beginning of
period........................... 762,612 5,053 219,728 1,012 77,266 140
Units issued during the period..... 761,053 943,048 255,593 271,176 147,985 91,095
Units redeemed during the period... (281,253) (185,489) (96,489) (52,460) (47,568) (13,969)
----------- ----------- ----------- ---------- ---------- ----------
Units outstanding end of period...... 1,242,412 762,612 378,832 219,728 177,683 77,266
=========== =========== =========== ========== ========== ==========
---------------
* Includes undistributed net
investment income (loss) of: $ 90,361 $ (14,682) $ (627) $ (3,195) $ 14,797 $ (1,354)
=========== =========== =========== ========== ========== ==========
</TABLE>
See notes to financial statements.
F-13
<PAGE> 94
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------------
EQUITY CAPITAL MULTI-CAP
INCOME APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- ----------------------------------
FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE PERIOD
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, NOVEMBER 2, 1999**
2000 DECEMBER 31, 2000 DECEMBER 31, 2000 THROUGH
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) DECEMBER 31, 1999
------------- ------------ ------------- ------------ ------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)..................... $ 2,794 $ (591) $ 168,373 $ (2,197) $ (5,442) $ (127)
Net realized gain (loss) on
investments................ (24,774) 17,473 224,209 44,949 (33,674) 5,234
Net change in unrealized
appreciation (depreciation)
of investments............. 47,662 (6,848) (456,055) 503,012 (476,657) 58,019
---------- ---------- ---------- ---------- ---------- --------
Net increase (decrease) in net
assets resulting from
operations................... 25,682 10,034 (63,473) 545,764 (515,773) 63,126
---------- ---------- ---------- ---------- ---------- --------
From unit transactions:
Net proceeds from the
issuance of units.......... 719,175 1,095,411 2,347,957 1,762,597 5,586,674 423,841
Net asset value of units
redeemed or used to meet
contract obligations....... (520,426) (250,359) (706,698) (276,515) (880,832) (46,640)
---------- ---------- ---------- ---------- ---------- --------
Net increase from unit
transactions................. 198,749 845,052 1,641,259 1,486,082 4,705,842 377,201
---------- ---------- ---------- ---------- ---------- --------
Net increase in net assets..... 224,431 855,086 1,577,786 2,031,846 4,190,069 440,327
Net assets beginning of
period....................... 866,267 11,181 2,039,969 8,123 440,327 0
---------- ---------- ---------- ---------- ---------- --------
Net assets end of period*...... $1,090,698 $ 866,267 $3,617,755 $2,039,969 $4,630,396 $440,327
========== ========== ========== ========== ========== ========
Unit transactions:
Units outstanding beginning
of period.................. 80,262 1,091 120,616 743 32,431 0
Units issued during the
period..................... 68,933 101,978 146,770 141,549 420,128 36,551
Units redeemed during the
period..................... (49,463) (22,807) (43,743) (21,676) (68,453) (4,120)
---------- ---------- ---------- ---------- ---------- --------
Units outstanding end of
period....................... 99,732 80,262 223,643 120,616 384,106 32,431
========== ========== ========== ========== ========== ========
---------------
* Includes undistributed net
investment income (loss) of: $ 2,203 $ (591) $ 166,176 $ (2,197) $ (5,569) $ (127)
========== ========== ========== ========== ========== ========
** Commencement of operations
</TABLE>
See notes to financial statements.
F-14
<PAGE> 95
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------- DREYFUS
STOCK
BALANCED INDEX
SUBACCOUNT SUBACCOUNT
----------------------------------- ----------------------------------
FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE PERIOD MONTHS ENDED FOR THE PERIOD
SEPTEMBER 30, NOVEMBER 15, 1999** SEPTEMBER 30, NOVEMBER 9, 1999**
2000 THROUGH 2000 THROUGH
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999
------------- ------------------- ------------- ------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)..... $ 762 $ 0 $ 7,391 $ 812
Net realized gain on
investments.................... 222 0 4,322 405
Net change in unrealized
appreciation (depreciation) of
investments.................... (5,305) 20 (21,050) 3,172
-------- ------ ---------- --------
Net increase (decrease) in net
assets resulting from
operations....................... (4,321) 20 (9,337) 4,389
-------- ------ ---------- --------
From unit transactions:
Net proceeds from the issuance of
units.......................... 175,603 2,295 1,868,527 136,922
Net asset value of units redeemed
or used to meet contract
obligations.................... (26,496) (41) (219,402) (4,960)
-------- ------ ---------- --------
Net increase from unit
transactions..................... 149,107 2,254 1,649,125 131,962
-------- ------ ---------- --------
Net increase in net assets......... 144,786 2,274 1,639,788 136,351
Net assets beginning of period..... 2,274 0 136,351 0
-------- ------ ---------- --------
Net assets end of period*.......... $147,060 $2,274 $1,776,139 $136,351
======== ====== ========== ========
Unit transactions:
Units outstanding beginning of
period......................... 221 0 12,662 0
Units issued during the period... 17,409 225 175,880 13,142
Units redeemed during the
period......................... (2,626) (4) (20,575) (480)
-------- ------ ---------- --------
Units outstanding end of period.... 15,004 221 167,967 12,662
======== ====== ========== ========
---------------
* Includes undistributed net
investment income (loss) of: $ 762 $ 0 $ 8,203 $ 812
======== ====== ========== ========
** Commencement of operations
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------
DREYFUS
SOCIALLY
RESPONSIBLE
SUBACCOUNT
-----------------------------------
FOR THE NINE
MONTHS ENDED FOR THE PERIOD
SEPTEMBER 30, NOVEMBER 10, 1999**
2000 THROUGH
(UNAUDITED) DECEMBER 31, 1999
------------- -------------------
<S> <C> <C>
From operations:
Net investment income (loss)..... $ (407) $ 2,937
Net realized gain on
investments.................... 7,012 10
Net change in unrealized
appreciation (depreciation) of
investments.................... (1,802) 1,843
-------- -------
Net increase (decrease) in net
assets resulting from
operations....................... 4,803 4,790
-------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 158,883 86,547
Net asset value of units redeemed
or used to meet contract
obligations.................... (31,203) (320)
-------- -------
Net increase from unit
transactions..................... 127,680 86,227
-------- -------
Net increase in net assets......... 132,483 91,017
Net assets beginning of period..... 91,017 0
-------- -------
Net assets end of period*.......... $223,500 $91,017
======== =======
Unit transactions:
Units outstanding beginning of
period......................... 8,243 0
Units issued during the period... 14,660 8,273
Units redeemed during the
period......................... (2,979) (30)
-------- -------
Units outstanding end of period.... 19,924 8,243
======== =======
---------------
* Includes undistributed net
investment income (loss) of: $ 2,530 $ 2,937
======== =======
** Commencement of operations
</TABLE>
See notes to financial statements.
F-15
<PAGE> 96
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
--------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS
--------------------------------------------------
VIP VIP
GROWTH CONTRA-FUND
SUBACCOUNT SUBACCOUNT
---------------------------------- -------------
FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE PERIOD MONTHS ENDED
SEPTEMBER 30, NOVEMBER 9, 1999** SEPTEMBER 30,
2000 THROUGH 2000
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED)
------------- ------------------ -------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)................. $ 13,090 $ (13) $ 28,397
Net realized gain (loss) on investments...... (4,432) 534 (20,795)
Net change in unrealized appreciation
(depreciation) of investments.............. (35,723) 3,008 (2,461)
---------- ------- ----------
Net increase (decrease) in net assets resulting
from operations.............................. (27,065) 3,529 5,141
---------- ------- ----------
From unit transactions:
Net proceeds from the issuance of units...... 1,347,803 56,705 1,512,484
Net asset value of units redeemed or used to
meet contract obligations.................. (162,208) (2,906) (184,620)
---------- ------- ----------
Net increase from unit transactions............ 1,185,595 53,799 1,327,864
---------- ------- ----------
Net increase in net assets..................... 1,158,530 57,328 1,333,005
Net assets beginning of period................. 57,328 0 116,709
---------- ------- ----------
Net assets end of period*...................... $1,215,858 $57,328 $1,449,714
========== ======= ==========
Unit transactions:
Units outstanding beginning of period........ 5,021 0 10,237
Units issued during the period............... 113,977 5,291 133,708
Units redeemed during the period............. (13,756) (270) (16,283)
---------- ------- ----------
Units outstanding end of period................ 105,242 5,021 127,662
========== ======= ==========
---------------
* Includes undistributed net investment income
(loss) of: $ 13,077 $ (13) $ 28,368
========== ======= ==========
** Commencement of operations
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS
-------------------------------------------------------
VIP VIP
CONTRA-FUND GROWTH OPPORTUNITIES
SUBACCOUNT SUBACCOUNT
------------------ ----------------------------------
FOR THE NINE
FOR THE PERIOD MONTHS ENDED FOR THE PERIOD
NOVEMBER 9, 1999** SEPTEMBER 30, NOVEMBER 9, 1999**
THROUGH 2000 THROUGH
DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999
------------------ ------------- ------------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)................. $ (29) $ 4,947 $ (12)
Net realized gain (loss) on investments...... 246 (6,281) 11
Net change in unrealized appreciation
(depreciation) of investments.............. 7,066 (12,047) 375
-------- -------- -------
Net increase (decrease) in net assets resulting
from operations.............................. 7,283 (13,381) 374
-------- -------- -------
From unit transactions:
Net proceeds from the issuance of units...... 111,883 370,542 33,785
Net asset value of units redeemed or used to
meet contract obligations.................. (2,457) (42,857) (527)
-------- -------- -------
Net increase from unit transactions............ 109,426 327,685 33,258
-------- -------- -------
Net increase in net assets..................... 116,709 314,304 33,632
Net assets beginning of period................. 0 33,632 0
-------- -------- -------
Net assets end of period*...................... $116,709 $347,936 $33,632
======== ======== =======
Unit transactions:
Units outstanding beginning of period........ 0 3,320 0
Units issued during the period............... 10,466 38,065 3,373
Units redeemed during the period............. (229) (4,441) (53)
-------- -------- -------
Units outstanding end of period................ 10,237 36,944 3,320
======== ======== =======
---------------
* Includes undistributed net investment income
(loss) of: $ (29) $ 4,935 $ (12)
======== ======== =======
** Commencement of operations
</TABLE>
See notes to financial statements.
F-16
<PAGE> 97
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------------------------------
JANUS ASPEN SERIES
-----------------------------------------------------------------------------------------
AGGRESSIVE CAPITAL
GROWTH BALANCED APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------------- ------------------------------------ -------------
FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE PERIOD MONTHS ENDED FOR THE PERIOD MONTHS ENDED
SEPTEMBER 30, NOVEMBER 2, 1999** SEPTEMBER 30, NOVEMBER 15, 1999** SEPTEMBER 30,
2000 THROUGH 2000 THROUGH 2000
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999 (UNAUDITED)
------------- ------------------ -------------- ------------------- -------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)..................... $ 295,820 $ (108) $ 57,441 $ 267 $ 9,634
Net realized gain (loss) on
investments................ (1,741) 1,909 (9,177) 30 28,478
Net change in unrealized
appreciation (depreciation)
of investments............. (434,426) 58,539 (53,156) 825 (60,922)
---------- -------- ---------- ------- ----------
Net increase (decrease) in net
assets resulting from
operations................... (140,347) 60,340 (4,892) 1,122 (22,810)
---------- -------- ---------- ------- ----------
From unit transactions:
Net proceeds from the
issuance of units.......... 3,918,320 355,366 1,016,598 30,519 2,234,985
Net asset value of units
redeemed or used to meet
contract obligations....... (564,996) (10,443) (126,964) (985) (236,941)
---------- -------- ---------- ------- ----------
Net increase from unit
transactions................. 3,353,324 344,923 889,634 29,534 1,998,044
---------- -------- ---------- ------- ----------
Net increase in net assets..... 3,212,977 405,263 884,742 30,656 1,975,234
Net assets beginning of
period....................... 405,263 0 30,656 0 219,896
---------- -------- ---------- ------- ----------
Net assets end of period*...... $3,618,240 $405,263 $ 915,398 $30,656 $2,195,130
========== ======== ========== ======= ==========
Unit transactions:
Units outstanding beginning
of period.................. 29,042 0 2,882 0 16,682
Units issued during the
period..................... 273,208 29,886 95,179 2,978 169,926
Units redeemed during the
period..................... (40,322) (844) (11,916) (96) (18,084)
---------- -------- ---------- ------- ----------
Units outstanding end of
period....................... 261,928 29,042 86,145 2,882 168,524
========== ======== ========== ======= ==========
---------------
* Includes undistributed net
investment income (loss) of: $ 295,712 $ (108) $ 57,708 $ 267 $ 9,955
========== ======== ========== ======= ==========
** Commencement of operations
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------
JANUS ASPEN SERIES
-------------------------------------------------------
CAPITAL WORLDWIDE
APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT
------------------ ----------------------------------
FOR THE NINE
FOR THE PERIOD MONTHS ENDED FOR THE PERIOD
NOVEMBER 2, 1999** SEPTEMBER 30, NOVEMBER 3, 1999**
THROUGH 2000 THROUGH
DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999
------------------ ------------- ------------------
<S> <C> <C> <C>
From operations:
Net investment income
(loss)..................... $ 321 $ 146,948 $ (56)
Net realized gain (loss) on
investments................ 901 22,698 1,348
Net change in unrealized
appreciation (depreciation)
of investments............. 31,686 (329,805) 22,930
-------- ---------- --------
Net increase (decrease) in net
assets resulting from
operations................... 32,908 (160,159) 24,222
-------- ---------- --------
From unit transactions:
Net proceeds from the
issuance of units.......... 192,015 2,711,915 201,994
Net asset value of units
redeemed or used to meet
contract obligations....... (5,027) (374,228) (6,798)
-------- ---------- --------
Net increase from unit
transactions................. 186,988 2,337,687 195,196
-------- ---------- --------
Net increase in net assets..... 219,896 2,177,528 219,418
Net assets beginning of
period....................... 0 219,418 0
-------- ---------- --------
Net assets end of period*...... $219,896 $2,396,946 219,418
======== ========== ========
Unit transactions:
Units outstanding beginning
of period.................. 0 16,721 0
Units issued during the
period..................... 17,128 200,216 17,285
Units redeemed during the
period..................... (446) (27,469) (564)
-------- ---------- --------
Units outstanding end of
period....................... 16,682 189,468 16,721
======== ========== ========
---------------
* Includes undistributed net
investment income (loss) of: $ 321 $ 146,892 $ (56)
======== ========== ========
** Commencement of operations
</TABLE>
See notes to financial statements.
F-17
<PAGE> 98
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Flexible Premium Variable Life Insurance policies,
which include Variable Life (Strategist), Variable Universal Life (MONY Equity
Master, MONY Custom Equity Master and MONY Custom Estate Master) and Corporate
Sponsored Variable Life Insurance policies. These policies are issued by MONY
America, which is a wholly owned subsidiary of MONY Life Insurance Company
("MONY"). For presentation purposes, the information related only to the
Variable Universal Life Insurance policies (MONY Custom Equity Master) is
presented here.
There are twenty five MONY Custom Equity 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"). 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 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 value is 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 the
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 gains received from the respective portfolios of the
Funds. Dividend income received is reinvested in additional shares of the
respective portfolios of the Funds.
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.
F-18
<PAGE> 99
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 Equity Master Subaccounts for the nine months ended September 30,
2000 aggregated $8,954,599.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 0.35% of 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 the proceeds from redemption of shares by each
subaccount during the nine months ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
MONY CUSTOM EQUITY MASTER SUBACCOUNTS SHARES ACQUIRED SHARES REDEEMED
------------------------------------- --------------- ---------------
<S> <C> <C>
MONY Series Funds, Inc.
Intermediate Term Bond Portfolio........................ $ 257,136 $ 236,241
Long Term Bond Portfolio................................ 528,395 189,633
Government Securities Portfolio......................... 408,832 100,088
Money Market Portfolio.................................. 7,356,774 5,571,087
Enterprise Accumulation Trust
Equity Portfolio........................................ 2,997,543 1,001,895
Small Company Value Portfolio........................... 2,697,264 1,272,401
Managed Portfolio....................................... 3,756,716 2,163,119
International Growth Portfolio.......................... 1,699,329 703,359
High Yield Bond Portfolio............................... 483,753 262,589
Growth Portfolio........................................ 10,477,774 4,630,705
Growth and Income Portfolio............................. 3,278,309 1,340,866
Small Company Growth Portfolio.......................... 2,702,262 978,410
Equity Income Portfolio................................. 790,648 593,624
Capital Appreciation Portfolio.......................... 2,485,397 848,427
Multi Cap Growth Portfolio.............................. 5,894,291 1,191,781
Balanced Portfolio...................................... 187,146 38,119
</TABLE>
F-19
<PAGE> 100
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENT TRANSACTIONS: (CONTINUED)
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
MONY CUSTOM EQUITY MASTER SUBACCOUNTS SHARES ACQUIRED SHARES REDEEMED
------------------------------------- --------------- ---------------
<S> <C> <C>
Dreyfus
Dreyfus Stock Index Fund................................ $ 1,923,042 $ 275,128
The Dreyfus Socially Responsible Growth Fund, Inc....... 249,877 122,431
Fidelity Variable Insurance Product Funds
VIP Growth Portfolio.................................... 1,473,608 288,584
VIP II Contrafund Portfolio............................. 1,598,820 271,722
VIP III Growth Opportunities Portfolio.................. 405,156 77,679
Janus Aspen Series Fund
Aggressive Growth Portfolio............................. 4,235,307 884,325
Balanced Portfolio...................................... 1,064,169 174,889
Capital Appreciation Portfolio.......................... 2,373,944 377,231
World-wide Growth Portfolio............................. 2,920,277 584,164
</TABLE>
F-20
<PAGE> 101
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account L -- MONY Custom Equity Master:
In our opinion, the accompanying 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 Equity
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 each of 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 audits. We conducted our audits 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 audits, which included
confirmation of securities at December 31, 1999 by correspondence with the fund
transfer agents, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 11, 2000
F-21
<PAGE> 102
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------- ---------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective
Funds......................... 44,842 34,489 23,370 1,528,261 64,161 80,862 149,216
======== ======== ======== ========== ========== ========== ==========
Investments at cost............. $484,580 $431,981 $253,999 $1,528,261 $2,345,649 $2,432,499 $5,720,982
======== ======== ======== ========== ========== ========== ==========
Investments in respective Funds,
at net asset value............ $485,191 $424,906 $254,964 $1,528,261 $2,477,890 $2,543,122 $5,416,541
Amount due from respective
Funds......................... 24 34 47 170 566 296 1,340
Amount due from MONY America.... 8,056 3,769 16,135 2,078 8,642 8,392 25,849
-------- -------- -------- ---------- ---------- ---------- ----------
Total assets.......... 493,271 428,709 271,146 1,530,509 2,487,098 2,551,810 5,443,730
-------- -------- -------- ---------- ---------- ---------- ----------
LIABILITIES
Amount due to respective
Funds......................... 8,056 3,769 16,135 2,078 8,642 8,392 25,849
Amount due to MONY America...... 95 98 83 391 927 666 2,141
-------- -------- -------- ---------- ---------- ---------- ----------
Total liabilities..... 8,151 3,867 16,218 2,469 9,569 9,058 27,990
-------- -------- -------- ---------- ---------- ---------- ----------
Net assets...................... $485,120 $424,842 $254,928 $1,528,040 $2,477,529 $2,542,752 $5,415,740
======== ======== ======== ========== ========== ========== ==========
Net assets consist of:
Contractholders' net
payments................. $485,126 $438,056 $253,927 $1,497,506 $2,208,206 $2,281,277 $5,159,068
Undistributed net
investment income........ 7,024 6,105 1,951 30,534 144,824 117,115 675,382
Accumulated net realized
gain (loss) on
investments.............. (7,641) (12,244) (1,915) 0 (7,742) 33,737 (114,269)
Net unrealized appreciation
(depreciation) of
investments.............. 611 (7,075) 965 0 132,241 110,623 (304,441)
-------- -------- -------- ---------- ---------- ---------- ----------
Net assets...................... $485,120 $424,842 $254,928 $1,528,040 $2,477,529 $2,542,752 $5,415,740
======== ======== ======== ========== ========== ========== ==========
Number of units outstanding*.... 48,440 46,303 25,422 146,000 212,392 196,273 489,437
-------- -------- -------- ---------- ---------- ---------- ----------
Net asset value per unit
outstanding*.................. $ 10.01 $ 9.18 $ 10.03 $ 10.47 $ 11.66 $ 12.96 $ 11.07
======== ======== ======== ========== ========== ========== ==========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-22
<PAGE> 103
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ---------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective
Funds........................ 145,987 115,296 1,491,345 429,437 145,783 161,339 235,868
========== ======== ========== ========== ========== ======== ==========
Investments at cost............ $1,082,045 $589,917 $8,777,650 $2,499,543 $ 989,362 $873,223 $1,537,225
========== ======== ========== ========== ========== ======== ==========
Investments in respective
Funds, at net asset value.... $1,356,216 $583,399 $9,783,223 $2,645,332 $1,239,157 $866,393 $2,040,261
Amount due from respective
Funds........................ 162 97 2,690 420 709 139 212
Amount due from MONY America... 3,448 3,055 63,253 16,824 5,791 12,724 6,497
---------- -------- ---------- ---------- ---------- -------- ----------
Total assets......... 1,359,826 586,551 9,849,166 2,662,576 1,245,657 879,256 2,046,970
---------- -------- ---------- ---------- ---------- -------- ----------
LIABILITIES
Amount due to respective
Funds........................ 3,448 3,055 63,253 16,824 5,791 12,724 6,497
Amount due to MONY America..... 355 184 4,135 803 883 265 504
---------- -------- ---------- ---------- ---------- -------- ----------
Total liabilities.... 3,803 3,239 67,388 17,627 6,674 12,989 7,001
---------- -------- ---------- ---------- ---------- -------- ----------
Net assets..................... $1,356,023 $583,312 $9,781,778 $2,644,949 $1,238,983 $866,267 $2,039,969
========== ======== ========== ========== ========== ======== ==========
Net assets consist of:
Contractholders' net
payments................ $1,023,730 $572,807 $8,631,759 $2,472,409 $ 951,102 $856,215 $1,494,178
Undistributed net
investment income
(loss).................. 22,243 25,117 (14,682) (3,195) (1,354) (591) (2,197)
Accumulated net realized
gain (loss) on
investments............. 35,879 (8,094) 159,128 29,946 39,440 17,473 44,952
Net unrealized
appreciation
(depreciation) of
investments............. 274,171 (6,518) 1,005,573 145,789 249,795 (6,830) 503,036
---------- -------- ---------- ---------- ---------- -------- ----------
Net assets..................... $1,356,023 $583,312 $9,781,778 $2,644,949 $1,238,983 $866,267 $2,039,969
========== ======== ========== ========== ========== ======== ==========
Number of units outstanding*... 92,361 56,344 762,612 219,728 77,266 80,262 120,616
---------- -------- ---------- ---------- ---------- -------- ----------
Net asset value per unit
outstanding*................. $ 14.68 $ 10.35 $ 12.83 $ 12.04 $ 16.04 $ 10.79 $ 16.91
========== ======== ========== ========== ========== ======== ==========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-23
<PAGE> 104
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION FIDELITY VARIABLE INSURANCE PRODUCTS
TRUST FUNDS
----------------------- DREYFUS ----------------------------------------
DREYFUS SOCIALLY VIP III
MULTI-CAP STOCK RESPONSIBLE VIP VIP II GROWTH
GROWTH BALANCED INDEX GROWTH GROWTH CONTRA-FUND OPPORTUNITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ----------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds... 30,101 437 3,547 2,330 1,046 4,011 1,455
========= ====== ======== ======= ======= ======== =======
Investments at cost............... $ 382,365 $2,254 $133,195 $89,187 $54,326 $109,657 $33,261
========= ====== ======== ======= ======= ======== =======
Investments in respective Funds,
at net asset value.............. $ 440,384 $2,274 $136,367 $91,030 $57,334 $116,723 $33,636
Amount due from respective
Funds........................... 18 0 19 0 1 19 4
Amount due from MONY America...... 5,908 0 12,190 87 4,202 827 430
--------- ------ -------- ------- ------- -------- -------
Total assets............ 446,310 2,274 148,576 91,117 61,537 117,569 34,070
--------- ------ -------- ------- ------- -------- -------
LIABILITIES
Amount due to respective Funds.... 5,908 0 12,190 87 4,202 827 430
Amount due to MONY America........ 75 0 35 13 7 33 8
--------- ------ -------- ------- ------- -------- -------
Total liabilities....... 5,983 0 12,225 100 4,209 860 438
--------- ------ -------- ------- ------- -------- -------
Net assets........................ $ 440,327 $2,274 $136,351 $91,017 $57,328 $116,709 $33,632
========= ====== ======== ======= ======= ======== =======
Net assets consist of:
Contractholders' net
payments................... $ 377,201 $2,254 $131,962 $86,227 $53,799 $109,426 $33,258
Undistributed net investment
income (loss).............. (127) 0 812 2,937 (13) (29) (12)
Accumulated net realized gain
(loss) on investments...... 5,234 0 405 10 534 246 11
Net unrealized appreciation
(depreciation) of
investments................ 58,019 20 3,172 1,843 3,008 7,066 375
--------- ------ -------- ------- ------- -------- -------
Net assets........................ $ 440,327 $2,274 $136,351 $91,017 $57,328 $116,709 $33,632
========= ====== ======== ======= ======= ======== =======
Number of units outstanding*...... 32,431 221 12,662 8,243 5,021 10,237 3,320
--------- ------ -------- ------- ------- -------- -------
Net asset value per unit
outstanding*.................... $ 13.58 $10.29 $ 10.77 $ 11.04 $ 11.42 $ 11.40 $ 10.13
========= ====== ======== ======= ======= ======== =======
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-24
<PAGE> 105
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------
JANUS ASPEN SERIES
---------------------------------------------------
AGGRESSIVE CAPITAL WORLDWIDE
GROWTH BALANCED APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ----------
<S> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds............................. 6,790 1,098 6,630 4,596
======== ======= ======== ========
Investments at cost......................................... $346,773 $29,834 $188,238 $196,516
======== ======= ======== ========
Investments in respective Funds, at net asset value......... $405,312 $30,659 $219,924 $219,446
Amount due from respective Funds............................ 53 0 61 0
Amount due from MONY America................................ 33,263 3,804 1,146 936
-------- ------- -------- --------
Total assets...................................... 438,628 34,463 221,131 220,382
-------- ------- -------- --------
LIABILITIES
Amount due to respective Funds.............................. 33,263 3,804 1,146 936
Amount due to MONY America.................................. 102 3 89 28
-------- ------- -------- --------
Total liabilities................................. 33,365 3,807 1,235 964
-------- ------- -------- --------
Net assets.................................................. $405,263 $30,656 $219,896 $219,418
======== ======= ======== ========
Net assets consist of:
Contractholders' net payments.......................... $344,923 $29,534 $186,988 $195,196
Undistributed net investment income (loss)............. (108) 267 321 (56)
Accumulated net realized gain (loss) on investments.... 1,909 30 901 1,348
Net unrealized appreciation (depreciation) of
investments........................................... 58,539 825 31,686 22,930
-------- ------- -------- --------
Net assets.................................................. $405,263 $30,656 $219,896 $219,418
======== ======= ======== ========
Number of units outstanding*................................ 29,042 2,882 16,682 16,721
-------- ------- -------- --------
Net asset value per unit outstanding*....................... $ 13.95 $ 10.64 $ 13.18 $ 13.12
======== ======= ======== ========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-25
<PAGE> 106
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------- ---------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income................... $ 7,708 $ 6,796 $ 2,391 $32,810 $148,555 $120,895 $ 684,610
Mortality and expense risk
charges......................... (684) (691) (440) (2,276) (3,730) (3,780) (9,227)
------- -------- ------- ------- -------- -------- ----------
Net investment income............. 7,024 6,105 1,951 30,534 144,825 117,115 675,383
------- -------- ------- ------- -------- -------- ----------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments.................. (7,641) (12,244) (1,915) 0 (7,750) 33,735 (114,285)
Net change in unrealized
appreciation (depreciation)
of investments............... 609 (7,080) 965 0 131,997 110,343 (304,672)
------- -------- ------- ------- -------- -------- ----------
Net realized and unrealized gain
(loss) on investments........... (7,032) (19,324) (950) 0 124,247 144,078 (418,957)
------- -------- ------- ------- -------- -------- ----------
Net increase (decrease) in net
assets resulting from
operations...................... $ (8) $(13,219) $ 1,001 $30,534 $269,072 $261,193 $ 256,426
======= ======== ======= ======= ======== ======== ==========
</TABLE>
See notes to financial statements.
F-26
<PAGE> 107
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ---------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income................ $ 23,944 $ 25,972 $ 0 $ 7 $ 0 $ 855 $ 0
Mortality and expense risk
charges...................... (1,701) (857) (14,681) (3,202) (1,354) (1,446) (2,197)
-------- -------- ---------- -------- -------- ------- ------------
Net investment income (loss)... 22,243 25,115 (14,681) (3,195) (1,354) (591) (2,197)
-------- -------- ---------- -------- -------- ------- ------------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments............... 35,877 (8,094) 159,102 29,946 39,439 17,473 44,949
Net change in unrealized
appreciation
(depreciation) of
investments............... 274,153 (6,521) 1,005,449 145,726 249,744 (6,848) 503,012
-------- -------- ---------- -------- -------- ------- ------------
Net realized and unrealized
gain (loss) on investments... 310,030 (14,615) 1,164,551 175,672 289,183 10,625 547,961
-------- -------- ---------- -------- -------- ------- ------------
Net increase in net assets
resulting from operations.... $332,273 $ 10,500 $1,149,870 $172,477 $287,829 $10,034 $ 545,764
======== ======== ========== ======== ======== ======= ============
</TABLE>
See notes to financial statements.
F-27
<PAGE> 108
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------- DREYFUS
SOCIALLY
MULTI-CAP DREYFUS STOCK RESPONSIBLE
GROWTH BALANCED INDEX GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- -------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 2, NOVEMBER 15, NOVEMBER 9, NOVEMBER 10,
1999(**) 1999(**) 1999(**) 1999(**)
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1999 1999 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Dividend income.............................. $ 0 $ 0 $ 845 $2,964
Mortality and expense risk charges........... (127) 0 (33) (27)
------- --- ------ ------
Net investment income (loss)................. (127) 0 812 2,937
------- --- ------ ------
Realized and unrealized gain (loss) on
investments:
Net realized gain on investments........... 5,234 0 405 10
Net change in unrealized appreciation of
investments............................. 58,019 20 3,172 1,843
------- --- ------ ------
Net realized and unrealized gain on
investments................................ 63,253 20 3,577 1,853
------- --- ------ ------
Net increase in net assets resulting from
operations................................. $63,126 $20 $4,389 $4,790
======= === ====== ======
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS
------------------------------------------------
VIP III
VIP VIP II GROWTH
GROWTH CONTRA FUND OPPORTUNITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 9, NOVEMBER 3, NOVEMBER 10,
1999(**) 1999(**) 1999(**)
THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1999 1999
-------------- -------------- --------------
<S> <C> <C> <C>
Dividend income.............................. $ 0 $ 0 $ 0
Mortality and expense risk charges........... (13) (29) (12)
------ ------ ----
Net investment income (loss)................. (13) (29) (12)
------ ------ ----
Realized and unrealized gain (loss) on
investments:
Net realized gain on investments........... 534 246 11
Net change in unrealized appreciation of
investments............................. 3,008 7,066 375
------ ------ ----
Net realized and unrealized gain on
investments................................ 3,542 7,312 386
------ ------ ----
Net increase in net assets resulting from
operations................................. $3,529 $7,283 $374
====== ====== ====
</TABLE>
---------------
(**) Commencement of operations
See notes to financial statements.
F-28
<PAGE> 109
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------
JANUS ASPEN SERIES
-----------------------------------------------------------------
AGGRESSIVE CAPITAL WORLDWIDE
GROWTH BALANCED APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- -------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 2, NOVEMBER 15, NOVEMBER 2, NOVEMBER 3,
1999(**) 1999(**) 1999(**) 1999(**)
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1999 1999 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Dividend income............................................. $ 0 $ 273 $ 390 $ 0
Mortality and expense risk charges.......................... (108) (6) (69) (56)
------- ------ ------- -------
Net investment income (loss)................................ (108) 267 321 (56)
------- ------ ------- -------
Realized and unrealized gain (loss) on investments:
Net realized gain on investments.......................... 1,909 30 901 1,348
Net change in unrealized appreciation of investments...... 58,539 825 31,686 22,930
------- ------ ------- -------
Net realized and unrealized gain on investments............. 60,448 855 32,587 24,278
------- ------ ------- -------
Net increase in net assets resulting from operations........ $60,340 $1,122 $32,908 $24,222
======= ====== ======= =======
</TABLE>
---------------
(**) Commencement of operations
See notes to financial statements.
F-29
<PAGE> 110
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------------------------
INTERMEDIATE LONG TERM
TERM BOND BOND
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD
YEAR ENDED DECEMBER 29, 1998** YEAR ENDED DECEMBER 16, 1998**
DECEMBER 31, THROUGH DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------- ------------ -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income...................... $ 7,024 $ 0 $ 6,105 $ 0
Net realized loss on investments........... (7,641) 0 (12,244) 0
Net change in unrealized appreciation
(depreciation) of investments........... 609 2 (7,080) 5
--------- ------ -------- ------
Net increase (decrease) in net assets
resulting from operations.................. (8) 2 (13,219) 5
--------- ------ -------- ------
From unit transactions:
Net proceeds from the issuance of units.... 711,966 1,933 534,080 1,559
Net asset value of units redeemed or used
to meet contract obligations............ (228,769) (4) (97,560) (23)
--------- ------ -------- ------
Net increase from unit transactions.......... 483,197 1,929 436,520 1,536
--------- ------ -------- ------
Net increase in net assets................... 483,189 1,931 423,301 1,541
Net assets beginning of period............... 1,931 0 1,541 0
--------- ------ -------- ------
Net assets end of period*.................... $ 485,120 $1,931 $424,842 $1,541
========= ====== ======== ======
Unit transactions:
Units outstanding beginning of period........ 193 0 155 0
Units issued during the period............... 71,100 193 56,509 157
Units redeemed during the period............. (22,853) 0 (10,361) (2)
--------- ------ -------- ------
Units outstanding end of period.............. 48,440 193 46,303 155
========= ====== ======== ======
---------------
* Includes undistributed net investment
income of: $ 7,024 $ 0 $ 6,105 $ 0
========= ====== ======== ======
** Commencement of operations
<CAPTION>
MONY CUSTOM EQUITY MASTER
----------------------------------
MONY SERIES FUND, INC.
----------------------------------
GOVERNMENT
SECURITIES
SUBACCOUNT
----------------------------------
FOR THE FOR THE PERIOD
YEAR ENDED DECEMBER 17, 1998**
DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998
------------ -------------------
<S> <C> <C>
From operations:
Net investment income...................... $ 1,951 $ 0
Net realized loss on investments........... (1,915) 0
Net change in unrealized appreciation
(depreciation) of investments........... 965 0
-------- ----
Net increase (decrease) in net assets
resulting from operations.................. 1,001 0
-------- ----
From unit transactions:
Net proceeds from the issuance of units.... 305,134 737
Net asset value of units redeemed or used
to meet contract obligations............ (51,936) (8)
-------- ----
Net increase from unit transactions.......... 253,198 729
-------- ----
Net increase in net assets................... 254,199 729
Net assets beginning of period............... 729 0
-------- ----
Net assets end of period*.................... $254,928 $729
======== ====
Unit transactions:
Units outstanding beginning of period........ 73 0
Units issued during the period............... 30,541 74
Units redeemed during the period............. (5,192) (1)
-------- ----
Units outstanding end of period.............. 25,422 73
======== ====
---------------
* Includes undistributed net investment
income of: $ 1,951 $ 0
======== ====
** Commencement of operations
</TABLE>
See notes to financial statements.
F-30
<PAGE> 111
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
---------------------------------- ----------------------------------
MONEY MARKET EQUITY
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD
YEAR ENDED DECEMBER 28, 1998** YEAR ENDED DECEMBER 9, 1998**
DECEMBER 31, THROUGH DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------- ------------ -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss).............. $ 30,534 $ 0 $ 144,825 $ (1)
Net realized gain (loss) on investments... 0 0 (7,750) 8
Net change in unrealized appreciation
(depreciation) of investments.......... 0 0 131,997 244
----------- ------- ---------- -------
Net increase in net assets resulting from
operations................................ 30,534 0 269,072 251
----------- ------- ---------- -------
From unit transactions:
Net proceeds from the issuance of units... 3,691,838 65,877 2,705,850 19,516
Net asset value of units redeemed or used
to meet contract obligations........... (2,258,987) (1,222) (516,750) (410)
----------- ------- ---------- -------
Net increase from unit transactions......... 1,432,851 64,655 2,189,100 19,106
----------- ------- ---------- -------
Net increase in net assets.................. 1,463,385 64,655 2,458,172 19,357
Net assets beginning of period.............. 64,655 0 19,357 0
----------- ------- ---------- -------
Net assets end of the period*............... $ 1,528,040 $64,655 $2,477,529 $19,357
=========== ======= ========== =======
Unit transactions:
Units outstanding beginning of period....... 6,463 0 1,912 0
Units issued during the period.............. 359,906 6,585 260,034 1,953
Units redeemed during the period............ (220,369) (122) (49,554) (41)
----------- ------- ---------- -------
Units outstanding end of period............. 146,000 6,463 212,392 1,912
=========== ======= ========== =======
---------------
* Includes undistributed net investment
income (loss) of: $ 30,534 $ 0 $ 144,824 $ (1)
=========== ======= ========== =======
** Commencement of operations
*** Formerly Small Cap subaccount
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------
SMALL COMPANY VALUE
SUBACCOUNT***
---------------------------------
FOR THE FOR THE PERIOD
YEAR ENDED DECEMBER 9, 1998**
DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998
------------ ------------------
<S> <C> <C>
From operations:
Net investment income (loss).............. $ 117,115 $ 0
Net realized gain (loss) on investments... 33,735 2
Net change in unrealized appreciation
(depreciation) of investments.......... 110,343 280
---------- ------
Net increase in net assets resulting from
operations................................ 261,193 282
---------- ------
From unit transactions:
Net proceeds from the issuance of units... 2,882,501 7,930
Net asset value of units redeemed or used
to meet contract obligations........... (609,029) (125)
---------- ------
Net increase from unit transactions......... 2,273,472 7,805
---------- ------
Net increase in net assets.................. 2,534,665 8,087
Net assets beginning of period.............. 8,087 0
---------- ------
Net assets end of the period*............... $2,542,752 $8,087
========== ======
Unit transactions:
Units outstanding beginning of period....... 772 0
Units issued during the period.............. 247,197 784
Units redeemed during the period............ (51,696) (12)
---------- ------
Units outstanding end of period............. 196,273 772
========== ======
---------------
* Includes undistributed net investment
income (loss) of: $ 117,115 $ 0
========== ======
** Commencement of operations
*** Formerly Small Cap subaccount
</TABLE>
See notes to financial statements.
F-31
<PAGE> 112
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------
MANAGED INTERNATIONAL GROWTH
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD
YEAR ENDED DECEMBER 9, 1998** YEAR ENDED DECEMBER 9, 1998**
DECEMBER 31, THROUGH DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------- ------------ -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)............. $ 675,383 $ (1) $ 22,243 $ 0
Net realized gain (loss) on
investments........................... (114,285) 16 35,877 2
Net change in unrealized appreciation
(depreciation) of investments......... (304,672) 231 274,153 18
----------- ------- ---------- ------
Net increase in net assets resulting from
operations............................... 256,426 246 332,273 20
----------- ------- ---------- ------
From unit transactions:
Net proceeds from the issuance of
units................................. 6,547,247 27,281 1,275,028 1,391
Net asset value of units redeemed or used
to meet contract obligations.......... (1,414,906) (554) (252,640) (49)
----------- ------- ---------- ------
Net increase from unit transactions........ 5,132,341 26,727 1,022,388 1,342
----------- ------- ---------- ------
Net increase in net assets................. 5,388,767 26,973 1,354,661 1,362
Net assets beginning of period............. 26,973 0 1,362 0
----------- ------- ---------- ------
Net assets end of period*.................. $ 5,415,740 $26,973 $1,356,023 $1,362
=========== ======= ========== ======
Unit transactions:
Units outstanding beginning of period...... 2,653 0 131 0
Units issued during the period............. 620,235 2,708 114,415 136
Units redeemed during the period........... (133,451) (55) (22,185) (5)
----------- ------- ---------- ------
Units outstanding end of period............ 489,437 2,653 92,361 131
=========== ======= ========== ======
---------------
* Includes undistributed net investment
income (loss) of: $ 675,382 $ (1) $ 22,243 $ 0
=========== ======= ========== ======
** Commencement of operations
<CAPTION>
MONY CUSTOM EQUITY MASTER
----------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------
HIGH YIELD BOND
SUBACCOUNT
----------------------------------
FOR THE FOR THE PERIOD
YEAR ENDED DECEMBER 14, 1998**
DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998
------------ -------------------
<S> <C> <C>
From operations:
Net investment income (loss)............. $ 25,115 $ 2
Net realized gain (loss) on
investments........................... (8,094) 0
Net change in unrealized appreciation
(depreciation) of investments......... (6,521) 3
--------- ------
Net increase in net assets resulting from
operations............................... 10,500 5
--------- ------
From unit transactions:
Net proceeds from the issuance of
units................................. 680,017 3,481
Net asset value of units redeemed or used
to meet contract obligations.......... (110,651) (40)
--------- ------
Net increase from unit transactions........ 569,366 3,441
--------- ------
Net increase in net assets................. 579,866 3,446
Net assets beginning of period............. 3,446 0
--------- ------
Net assets end of period*.................. $ 583,312 $3,446
========= ======
Unit transactions:
Units outstanding beginning of period...... 345 0
Units issued during the period............. 66,875 349
Units redeemed during the period........... (10,876) (4)
--------- ------
Units outstanding end of period............ 56,344 345
========= ======
---------------
* Includes undistributed net investment
income (loss) of: $ 25,117 $ 2
========= ======
** Commencement of operations
</TABLE>
See notes to financial statements.
F-32
<PAGE> 113
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------
GROWTH AND
GROWTH INCOME
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD
YEAR ENDED DECEMBER 9, 1998** YEAR ENDED DECEMBER 9, 1998**
DECEMBER 31, THROUGH DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------- ------------ -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment loss...................... $ (14,681) $ (1) $ (3,195) $ 0
Net realized gain on investments......... 159,102 26 29,946 0
Net change in unrealized appreciation
(depreciation) of investments......... 1,005,449 124 145,726 63
----------- ------- ---------- -------
Net increase in net assets resulting from
operations............................... 1,149,870 149 172,477 63
----------- ------- ---------- -------
From unit transactions:
Net proceeds from the issuance of
units................................. 10,743,825 52,409 3,055,454 10,095
Net asset value of units redeemed or used
to meet contract obligations.......... (2,164,169) (306) (593,120) (20)
----------- ------- ---------- -------
Net increase from unit transactions........ 8,579,656 52,103 2,462,334 10,075
----------- ------- ---------- -------
Net increase in net assets................. 9,729,526 52,252 2,634,811 10,138
Net assets beginning of period............. 52,252 0 10,138 0
----------- ------- ---------- -------
Net assets end of period*.................. $ 9,781,778 $52,252 $2,644,949 $10,138
=========== ======= ========== =======
Unit transactions:
Units outstanding beginning of period...... 5,053 0 1,012 0
Units issued during the period............. 943,048 5,083 271,176 1,014
Units redeemed during the period........... (185,489) (30) (52,460) (2)
----------- ------- ---------- -------
Units outstanding end of period............ 762,612 5,053 219,728 1,012
=========== ======= ========== =======
---------------
* Includes undistributed net investment
loss of: $ (14,682) $ (1) $ (3,195) $ 0
=========== ======= ========== =======
** Commencement of operations
<CAPTION>
MONY CUSTOM EQUITY MASTER
----------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------
SMALL COMPANY
GROWTH
SUBACCOUNT
----------------------------------
FOR THE FOR THE PERIOD
YEAR ENDED DECEMBER 9, 1998**
DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998
------------ -------------------
<S> <C> <C>
From operations:
Net investment loss...................... $ (1,354) $ 0
Net realized gain on investments......... 39,439 1
Net change in unrealized appreciation
(depreciation) of investments......... 249,744 51
---------- ------
Net increase in net assets resulting from
operations............................... 287,829 52
---------- ------
From unit transactions:
Net proceeds from the issuance of
units................................. 1,122,121 1,456
Net asset value of units redeemed or used
to meet contract obligations.......... (172,414) (61)
---------- ------
Net increase from unit transactions........ 949,707 1,395
---------- ------
Net increase in net assets................. 1,237,536 1,447
Net assets beginning of period............. 1,447 0
---------- ------
Net assets end of period*.................. $1,238,983 $1,447
========== ======
Unit transactions:
Units outstanding beginning of period...... 140 0
Units issued during the period............. 91,095 146
Units redeemed during the period........... (13,969) (6)
---------- ------
Units outstanding end of period............ 77,266 140
========== ======
---------------
* Includes undistributed net investment
loss of: $ (1,354) $ 0
========== ======
** Commencement of operations
</TABLE>
See notes to financial statements.
F-33
<PAGE> 114
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------
EQUITY CAPITAL
INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD
YEAR ENDED DECEMBER 9, 1998** YEAR ENDED DECEMBER 9, 1998**
DECEMBER 31, THROUGH DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------- ------------ -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment loss...................... $ (591) $ 0 $ (2,197) $ 0
Net realized gain on investments......... 17,473 0 44,949 3
Net change in unrealized appreciation
(depreciation) of investments......... (6,848) 18 503,012 24
---------- ------- ---------- ------
Net increase in net assets resulting from
operations............................... 10,034 18 545,764 27
---------- ------- ---------- ------
From unit transactions:
Net proceeds from the issuance of
units................................. 1,095,411 11,177 1,762,597 8,145
Net asset value of units redeemed or used
to meet contract obligations.......... (250,359) (14) (276,515) (49)
---------- ------- ---------- ------
Net increase from unit transactions........ 845,052 11,163 1,486,082 8,096
---------- ------- ---------- ------
Net increase in net assets................. 855,086 11,181 2,031,846 8,123
Net assets beginning of period............. 11,181 0 8,123 0
---------- ------- ---------- ------
Net assets end of period*.................. $ 866,267 $11,181 $2,039,969 $8,123
========== ======= ========== ======
Unit transactions:
Units outstanding beginning of period...... 1,091 0 743 0
Units issued during the period............. 101,978 1,092 141,549 748
Units redeemed during the period........... (22,807) (1) (21,676) (5)
---------- ------- ---------- ------
Units outstanding end of period............ 80,262 1,091 120,616 743
========== ======= ========== ======
---------------
* Includes undistributed net investment
(loss) of: $ (591) $ 0 $ (2,197) $ 0
========== ======= ========== ======
** Commencement of operations
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------
MULTI-CAP
GROWTH BALANCED
SUBACCOUNT SUBACCOUNT
------------------- ---------------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 2, 1999** NOVEMBER 15, 1999**
THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999
------------------- ---------------------
<S> <C> <C>
From operations:
Net investment loss...................... $ (127) $ 0
Net realized gain on investments......... 5,234 0
Net change in unrealized appreciation
(depreciation) of investments......... 58,019 20
-------- ------
Net increase in net assets resulting from
operations............................... 63,126 20
-------- ------
From unit transactions:
Net proceeds from the issuance of
units................................. 423,841 2,295
Net asset value of units redeemed or used
to meet contract obligations.......... (46,640) (41)
-------- ------
Net increase from unit transactions........ 377,201 2,254
-------- ------
Net increase in net assets................. 440,327 2,274
Net assets beginning of period............. 0 0
-------- ------
Net assets end of period*.................. $440,327 $2,274
======== ======
Unit transactions:
Units outstanding beginning of period...... 0 0
Units issued during the period............. 36,551 225
Units redeemed during the period........... (4,120) (4)
-------- ------
Units outstanding end of period............ 32,431 221
======== ======
---------------
* Includes undistributed net investment
(loss) of: $ (127) $ 0
======== ======
** Commencement of operations
</TABLE>
See notes to financial statements.
F-34
<PAGE> 115
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------
DREYFUS DREYFUS
STOCK SOCIALLY
INDEX RESPONSIBLE
SUBACCOUNT SUBACCOUNT
------------------- ---------------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 9, 1999** NOVEMBER 10, 1999**
THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999
------------------- ---------------------
<S> <C> <C>
From operations:
Net investment income (loss)................ $ 812 $ 2,937
Net realized gain on investments............ 405 10
Net change in unrealized appreciation
(depreciation) of investments............ 3,172 1,843
-------- -------
Net increase in net assets resulting from
operations.................................. 4,389 4,790
-------- -------
From unit transactions:
Net proceeds from the issuance of units..... 136,922 86,547
Net asset value of units redeemed or used to
meet contract obligations................ (4,960) (320)
-------- -------
Net increase from unit transactions........... 131,962 86,227
-------- -------
Net increase in net assets.................... 136,351 91,017
Net assets beginning of period................ 0 0
-------- -------
Net assets end of period*..................... $136,351 $91,017
======== =======
Unit transactions:
Units outstanding beginning of period......... 0 0
Units issued during the period................ 13,142 8,273
Units redeemed during the period.............. (480) (30)
-------- -------
Units outstanding end of period............... 12,662 8,243
======== =======
---------------
* Includes undistributed net investment
income (loss) of: $ 812 $ 2,937
======== =======
** Commencement of operations
<CAPTION>
MONY CUSTOM EQUITY MASTER
-----------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS
-----------------------------------------------------------------
VIP VIP II VIP III
GROWTH CONTRA-FUND GROWTH OPPORTUNITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ---------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 9, 1999** NOVEMBER 3, 1999** NOVEMBER 10, 1999**
THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
------------------- ------------------- ---------------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)................ $ (13) $ (29) $ (12)
Net realized gain on investments............ 534 246 11
Net change in unrealized appreciation
(depreciation) of investments............ 3,008 7,066 375
------- -------- -------
Net increase in net assets resulting from
operations.................................. 3,529 7,283 374
------- -------- -------
From unit transactions:
Net proceeds from the issuance of units..... 56,705 111,883 33,785
Net asset value of units redeemed or used to
meet contract obligations................ (2,906) (2,457) (527)
------- -------- -------
Net increase from unit transactions........... 53,799 109,426 33,258
------- -------- -------
Net increase in net assets.................... 57,328 116,709 33,632
Net assets beginning of period................ 0 0 0
------- -------- -------
Net assets end of period*..................... $57,328 $116,709 $33,632
======= ======== =======
Unit transactions:
Units outstanding beginning of period......... 0 0 0
Units issued during the period................ 5,291 10,466 3,373
Units redeemed during the period.............. (270) (229) (53)
------- -------- -------
Units outstanding end of period............... 5,021 10,237 3,320
======= ======== =======
---------------
* Includes undistributed net investment
income (loss) of: $ (13) $ (29) $ (12)
======= ======== =======
** Commencement of operations
</TABLE>
See notes to financial statements.
F-35
<PAGE> 116
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
--------------------------------------------------------------------------------------
JANUS ASPEN SERIES
--------------------------------------------------------------------------------------
AGGRESSIVE CAPITAL WORLDWIDE
GROWTH BALANCED APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- -------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 2, 1999** NOVEMBER 15, 1999** NOVEMBER 2, 1999** NOVEMBER 3, 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)........... $ (108) $ 267 $ 321 $ (56)
Net realized gain on investments....... 1,909 30 901 1,348
Net change in unrealized appreciation
(depreciation) of
investments......................... 58,539 825 31,686 22,930
-------- ------- -------- --------
Net increase in net assets resulting from
operations............................. 60,340 1,122 32,908 24,222
-------- ------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units............................... 355,366 30,519 192,015 201,994
Net asset value of units redeemed or
used to meet contract obligations... (10,443) (985) (5,027) (6,798)
-------- ------- -------- --------
Net increase from unit transactions...... 344,923 29,534 186,988 195,196
-------- ------- -------- --------
Net increase in net assets............... 405,263 30,656 219,896 219,418
Net assets beginning of period........... 0 0 0 0
-------- ------- -------- --------
Net assets end of period*................ $405,263 $30,656 $219,896 $219,418
======== ======= ======== ========
Unit transactions:
Units outstanding beginning of period.... 0 0 0 0
Units issued during the period........... 29,886 2,978 17,128 17,285
Units redeemed during the period......... (844) (96) (446) (564)
-------- ------- -------- --------
Units outstanding end of period.......... 29,042 2,882 16,682 16,721
======== ======= ======== ========
---------------
* Includes undistributed net investment
income (loss) of: $ (108) $ 267 $ 321 $ (56)
======== ======= ======== ========
** Commencement of operations
</TABLE>
See notes to financial statements.
F-36
<PAGE> 117
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 (MONY Equity
Master, MONY Custom Equity Master and MONY Custom Estate Master) and Corporate
Sponsored Variable Life Insurance policies. These policies are issued by MONY
America, which is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). For presentation purposes, the information related only to the
Variable Universal Life Insurance policies (MONY Custom Equity Master) is
presented here.
There are twenty-five MONY Custom Equity 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"). 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 value is 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 the
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 gains received from the respective portfolios of the
Funds. Dividend income received is reinvested in additional shares of the
respective portfolios of the Funds.
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.
F-37
<PAGE> 118
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 Equity Master Subaccounts for the period ended December 31, 1999
aggregated $3,541,665.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 0.35% of average daily net
assets of each of the MONY Custom Equity 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 the proceeds from redemption of shares by each
subaccount during the period ended December 31, 1999 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
MONY CUSTOM EQUITY MASTER SUBACCOUNTS SHARES ACQUIRED SHARES REDEEMED
------------------------------------- --------------- ---------------
<S> <C> <C>
MONY Series Fund, Inc.
Intermediate Term Bond Portfolio........................ $ 781,350 $ 298,766
Long Term Bond Portfolio................................ 581,222 145,329
Government Securities Portfolio......................... 340,466 87,672
Money Market Portfolio.................................. 4,888,528 4,921,338
Enterprise Accumulation Trust
Equity Portfolio........................................ 2,899,545 713,815
Small Company Value Portfolio........................... 3,187,697 917,635
Managed Portfolio....................................... 7,015,238 1,891,324
International Growth Portfolio.......................... 1,547,477 526,596
High Yield Bond Portfolio............................... 774,444 205,848
Growth Portfolio........................................ 11,692,982 3,126,562
Growth and Income Portfolio............................. 3,261,369 801,854
Small Company Growth Portfolio.......................... 1,198,826 250,299
Equity Income Portfolio................................. 1,196,877 353,146
Capital Appreciation Portfolio.......................... 1,888,370 404,193
Multi-Cap Growth Portfolio.............................. 431,496 54,365
Balanced Portfolio...................................... 2,313 59
Dreyfus
Dreyfus Stock Index Fund................................ 143,504 11,560
The Dreyfus Socially Responsible Growth Fund, Inc....... 86,558 345
</TABLE>
F-38
<PAGE> 119
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
MONY CUSTOM EQUITY MASTER SUBACCOUNTS SHARES ACQUIRED SHARES REDEEMED
------------------------------------- --------------- ---------------
<S> <C> <C>
Fidelity Variable Insurance Product Funds
VIP Growth Portfolio.................................... $ 62,332 $ 8,540
VIP II Contrafund Portfolio............................. 117,295 7,884
VIP III Growth Opportunities Portfolio.................. 36,413 3,162
Janus Aspen Series Fund
Aggressive Growth Portfolio............................. 358,664 13,800
Balanced Portfolio...................................... 30,532 1,001
Capital Appreciation Portfolio.......................... 197,721 10,774
Worldwide Growth Portfolio.............................. 203,431 8,263
</TABLE>
F-39
<PAGE> 120
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account L -- MONY Custom Equity Master:
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account L (comprising,
respectively, MONY Custom Equity Master's Intermediate Term Bond, Long Term
Bond, Government Securities, Money Market, Equity, Small Company Value, Managed,
International Growth, High Yield Bond, Growth, Growth and Income, Small Company
Growth, Equity Income, and Capital Appreciation Subaccounts) at December 31,
1998, and the results of each of their operations and the changes in each of
their net assets for the periods presented, in conformity with generally
accepted accounting principles. These financial statements are the
responsibility of the MONY Life Insurance Company of America's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1998 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 12, 1999
F-40
<PAGE> 121
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------- ---------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...... $ 1,929 $1,536 $ 729 $64,655 $19,113 $7,807 $26,742
======= ====== ====== ======= ======= ====== =======
Investments in Enterprise
Accumulation Trust, at net asset
value (Note 2).................. $ 0 $ 0 $ 0 $ 0 $19,357 $8,087 $26,973
Investments in MONY Series Fund,
Inc., at net asset value (Note
2).............................. 1,931 1,541 729 64,655 0 0 0
Amount due from Enterprise
Accumulation Trust.............. 0 0 0 0 9 7 11
Amount due from MONY America...... 327 352 561 65,291 9,086 193 11,806
Amount due from MONY Series Fund,
Inc. ........................... 4 0 0 1,204 0 0 0
------- ------ ------ ------- ------- ------ -------
Total assets............ 2,262 1,893 1,290 131,150 28,452 8,287 38,790
------- ------ ------ ------- ------- ------ -------
LIABILITIES
Amount due to Enterprise
Accumulation Trust.............. 0 0 0 0 9,086 193 11,806
Amount due to MONY America........ 4 0 0 1,204 9 7 11
Amount due to MONY Series Fund,
Inc............................. 327 352 561 65,291 0 0 0
------- ------ ------ ------- ------- ------ -------
Total liabilities....... 331 352 561 66,495 9,095 200 11,817
------- ------ ------ ------- ------- ------ -------
Net assets........................ $ 1,931 $1,541 $ 729 $64,655 $19,357 $8,087 $26,973
======= ====== ====== ======= ======= ====== =======
Net assets consist of:
Contractholders' net
payments................... $ 1,934 $1,552 $ 737 $65,877 $19,495 $7,930 $27,260
Cost of insurance withdrawals
(Note 3)................... (5) (16) (8) (1,222) (389) (125) (533)
Undistributed net investment
loss....................... 0 0 0 0 (1) 0 (1)
Accumulated net realized gain
on investments............. 0 0 0 0 8 2 16
Unrealized appreciation of
investments................ 2 5 0 0 244 280 231
------- ------ ------ ------- ------- ------ -------
Net assets........................ $ 1,931 $1,541 $ 729 $64,655 $19,357 $8,087 $26,973
======= ====== ====== ======= ======= ====== =======
Number of units outstanding*...... 193 155 73 6,463 1,912 772 2,653
------- ------ ------ ------- ------- ------ -------
Net asset value per unit
outstanding*.................... $ 10.03 $ 9.97 $10.00 $ 10.00 $ 10.13 $10.48 $ 10.17
======= ====== ====== ======= ======= ====== =======
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-41
<PAGE> 122
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ---------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)... $1,344 $3,443 $52,128 $10,075 $1,396 $11,163 $8,099
====== ====== ======= ======= ====== ======= ======
Investments in Enterprise
Accumulation Trust at net
asset value (Note 2)......... $1,362 $3,446 $52,252 $10,138 $1,447 $11,181 $8,123
Amount due from Enterprise
Accumulation Trust........... 4 0 11 0 1 0 4
Amount due from MONY America... 27 4 36,606 6,909 0 0 6,961
------ ------ ------- ------- ------ ------- ------
Total assets.......... 1,393 3,450 88,869 17,047 1,448 11,181 15,088
------ ------ ------- ------- ------ ------- ------
LIABILITIES
Amount due to Enterprise
Accumulation Trust........... 27 4 36,606 6,909 0 0 6,961
Amount due to MONY America..... 4 0 11 0 1 0 4
------ ------ ------- ------- ------ ------- ------
Total liabilities..... 31 4 36,617 6,909 1 0 6,965
------ ------ ------- ------- ------ ------- ------
Net assets..................... $1,362 $3,446 $52,252 $10,138 $1,447 $11,181 $8,123
====== ====== ======= ======= ====== ======= ======
Net assets consist of:
Contractholders' net
payments................. $1,391 $3,474 $52,403 $10,095 $1,448 $11,178 $8,145
Cost of insurance
withdrawals (Note 3)..... (49) (33) (300) (20) (53) (15) (49)
Undistributed net
investment income
(loss)................... 0 2 (1) 0 0 0 0
Accumulated net realized
gain on investments...... 2 0 26 0 1 0 3
Unrealized appreciation of
investments.............. 18 3 124 63 51 18 24
------ ------ ------- ------- ------ ------- ------
Net assets..................... $1,362 $3,446 $52,252 $10,138 $1,447 $11,181 $8,123
====== ====== ======= ======= ====== ======= ======
Number of units outstanding*... 131 345 5,053 1,012 140 1,091 743
------ ------ ------- ------- ------ ------- ------
Net asset value per unit
outstanding*................. $10.37 $10.00 $ 10.34 $ 10.02 $10.34 $ 10.25 $10.93
====== ====== ======= ======= ====== ======= ======
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-42
<PAGE> 123
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 29, 1998** DECEMBER 16, 1998** DECEMBER 17, 1998** DECEMBER 28, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
Dividend income........... $ 0 $ 0 $ 0 $ 0
Mortality and expense risk
charges (Note 3)........ 0 0 0 0
--- ---- --- -------
Net investment loss....... 0 0 0 0
--- ---- --- -------
Realized and unrealized
gain on investments
(Note 2):
Proceeds from sales..... 5 23 8 1,222
Cost of shares sold..... (5) (23) (8) (1,222)
--- ---- --- -------
Net realized gain on
investments............. 0 0 0 0
Net increase in unrealized
appreciation of
investments............. 2 5 0 0
--- ---- --- -------
Net realized and
unrealized gain on
investments............. 2 5 0 0
--- ---- --- -------
Net increase in net assets
resulting from
operations.............. $ 2 $ 5 $ 0 $ 0
=== ==== === =======
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------ ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
Dividend income........... $ 0 $ 0 $ 0
Mortality and expense risk
charges (Note 3)........ (1) 0 (1)
----- ----- -----
Net investment loss....... (1) 0 (1)
----- ----- -----
Realized and unrealized
gain on investments
(Note 2):
Proceeds from sales..... 417 126 562
Cost of shares sold..... (409) (124) (546)
----- ----- -----
Net realized gain on
investments............. 8 2 16
Net increase in unrealized
appreciation of
investments............. 244 280 231
----- ----- -----
Net realized and
unrealized gain on
investments............. 252 282 247
----- ----- -----
Net increase in net assets
resulting from
operations.............. $ 251 $ 282 $ 246
===== ===== =====
</TABLE>
---------------
** Commencement of operations.
See notes to financial statements.
F-43
<PAGE> 124
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
----------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND
GROWTH BOND GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------- ------------------ ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 14, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------- ------------------ ------------------
<S> <C> <C> <C> <C>
Dividend income................. $ 0 $ 2 $ 0 $ 0
Mortality and expense risk
charges (Note 3).............. 0 0 (1) 0
---- ---- ----- ----
Net investment income (loss).... 0 2 (1) 0
---- ---- ----- ----
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales........... 54 40 656 20
Cost of shares sold........... (52) (40) (630) (20)
---- ---- ----- ----
Net realized gain on
investments................... 2 0 26 0
Net increase in unrealized
appreciation of investments... 18 3 124 63
---- ---- ----- ----
Net realized and unrealized gain
on investments................ 20 3 150 63
---- ---- ----- ----
Net increase in net assets
resulting from operations..... $ 20 $ 5 $ 149 $ 63
==== ==== ===== ====
<CAPTION>
MONY CUSTOM EQUITY MASTER
------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------
SMALL COMPANY EQUITY CAPITAL
GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------ ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
Dividend income................. $ 0 $ 0 $ 0
Mortality and expense risk
charges (Note 3).............. 0 0 0
---- ---- ----
Net investment income (loss).... 0 0 0
---- ---- ----
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales........... 68 15 51
Cost of shares sold........... (67) (15) (48)
---- ---- ----
Net realized gain on
investments................... 1 0 3
Net increase in unrealized
appreciation of investments... 51 18 24
---- ---- ----
Net realized and unrealized gain
on investments................ 52 18 27
---- ---- ----
Net increase in net assets
resulting from operations..... $ 52 $ 18 $ 27
==== ==== ====
</TABLE>
---------------
** Commencement of operations.
See notes to financial statements.
F-44
<PAGE> 125
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 29, 1998** DECEMBER 16, 1998** DECEMBER 17, 1998** DECEMBER 28, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment loss......... $ 0 $ 0 $ 0 $ 0
Net realized gain on
investments............... 0 0 0 0
Net increase in unrealized
appreciation of
investments............... 2 5 0 0
------ ------ ---- -------
Net increase in net assets
resulting from operations... 2 5 0 0
------ ------ ---- -------
From unit transactions:
Net proceeds from the
issuance of units......... 1,933 1,559 737 65,877
Net asset value of units
redeemed or used to meet
contract obligations...... (4) (23) (8) (1,222)
------ ------ ---- -------
Net increase from unit
transactions................ 1,929 1,536 729 64,655
------ ------ ---- -------
Net increase in net assets.... 1,931 1,541 729 64,655
Net assets beginning of
period...................... 0 0 0 0
------ ------ ---- -------
Net assets end of period*..... $1,931 $1,541 $729 $64,655
====== ====== ==== =======
Units outstanding beginning of
period...................... 0 0 0 0
Units issued during the
period...................... 193 157 74 6,585
Units redeemed during the
period...................... 0 (2) (1) (122)
------ ------ ---- -------
Units outstanding end of
period...................... 193 155 73 6,463
====== ====== ==== =======
---------------
* Includes undistributed net
investment loss of: $ 0 $ 0 $ 0 $ 0
** Commencement of operations.
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- -------------------
<S> <C> <C> <C>
From operations:
Net investment loss......... $ (1) $ 0 $ (1)
Net realized gain on
investments............... 8 2 16
Net increase in unrealized
appreciation of
investments............... 244 280 231
------- ------ -------
Net increase in net assets
resulting from operations... 251 282 246
------- ------ -------
From unit transactions:
Net proceeds from the
issuance of units......... 19,516 7,930 27,281
Net asset value of units
redeemed or used to meet
contract obligations...... (410) (125) (554)
------- ------ -------
Net increase from unit
transactions................ 19,106 7,805 26,727
------- ------ -------
Net increase in net assets.... 19,357 8,087 26,973
Net assets beginning of
period...................... 0 0 0
------- ------ -------
Net assets end of period*..... $19,357 $8,087 $26,973
======= ====== =======
Units outstanding beginning of
period...................... 0 0 0
Units issued during the
period...................... 1,953 784 2,708
Units redeemed during the
period...................... (41) (12) (55)
------- ------ -------
Units outstanding end of
period...................... 1,912 772 2,653
======= ====== =======
---------------
* Includes undistributed net
investment loss of: $ (1) $ 0 $ (1)
** Commencement of operations.
</TABLE>
See notes to financial statements.
F-45
<PAGE> 126
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM EQUITY MASTER
-------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND
GROWTH BOND GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 14, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income
(loss).................... $ 0 $ 2 $ (1) $ 0
Net realized gain on
investments............... 2 0 26 0
Net increase in unrealized
appreciation of
investments............... 18 3 124 63
------ ------ ------- -------
Net increase in net assets
resulting from operations... 20 5 149 63
------ ------ ------- -------
From unit transactions:
Net proceeds from the
issuance of units......... 1,391 3,481 52,409 10,095
Net asset value of units
redeemed or used to meet
contract obligations...... (49) (40) (306) (20)
------ ------ ------- -------
Net increase from unit
transactions................ 1,342 3,441 52,103 10,075
------ ------ ------- -------
Net increase in net assets.... 1,362 3,446 52,252 10,138
Net assets beginning of
period...................... 0 0 0 0
------ ------ ------- -------
Net assets end of period*..... $1,362 $3,446 $52,252 $10,138
====== ====== ======= =======
Units outstanding beginning of
period...................... 0 0 0 0
Units issued during the
period...................... 136 349 5,083 1,014
Units redeemed during the
period...................... (5) (4) (30) (2)
------ ------ ------- -------
Units outstanding end of
period...................... 131 345 5,053 1,012
====== ====== ======= =======
---------------
* Includes undistributed net
investment income (loss)
of: $ 0 $ 2 $ (1) $ 0
** Commencement of operations.
<CAPTION>
MONY CUSTOM EQUITY MASTER
---------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------
SMALL COMPANY CAPITAL
GROWTH EQUITY INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
DECEMBER 9, 1998** DECEMBER 9, 1998** DECEMBER 9, 1998**
THROUGH THROUGH THROUGH
DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31, 1998
------------------- ------------------- -------------------
<S> <C> <C> <C>
From operations:
Net investment income
(loss).................... $ 0 $ 0 $ 0
Net realized gain on
investments............... 1 0 3
Net increase in unrealized
appreciation of
investments............... 51 18 24
------ ------- ------
Net increase in net assets
resulting from operations... 52 18 27
------ ------- ------
From unit transactions:
Net proceeds from the
issuance of units......... 1,456 11,177 8,145
Net asset value of units
redeemed or used to meet
contract obligations...... (61) (14) (49)
------ ------- ------
Net increase from unit
transactions................ 1,395 11,163 8,096
------ ------- ------
Net increase in net assets.... 1,447 11,181 8,123
Net assets beginning of
period...................... 0 0 0
------ ------- ------
Net assets end of period*..... $1,447 $11,181 $8,123
====== ======= ======
Units outstanding beginning of
period...................... 0 0 0
Units issued during the
period...................... 146 1,092 748
Units redeemed during the
period...................... (6) (1) (5)
------ ------- ------
Units outstanding end of
period...................... 140 1,091 743
====== ======= ======
---------------
* Includes undistributed net
investment income (loss)
of: $ 0 $ 0 $ 0
** Commencement of operations.
</TABLE>
See notes to financial statements.
F-46
<PAGE> 127
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Flexible Premium Variable Life Insurance policies,
which include Variable Life (Strategist), Variable Universal Life (MONYEquity
Master and MONY Custom Equity Master) and Corporate Sponsored Variable Universal
Life Insurance policies. These policies are issued by MONY America, which is a
wholly-owned subsidiary of MONY Life Insurance Company ("MONY"). For
presentation purposes, the information related only to the Variable Universal
Life Insurance policies (MONY Custom Equity Master) is presented here.
There are currently fourteen MONY Custom Equity Master Subaccounts within
the Variable Account, each invests only in a corresponding portfolio of the MONY
Series Fund, Inc. (the "Fund") or the Enterprise Accumulation Trust
("Enterprise") (collectively, the "Funds"). The subaccounts of the MONY Custom
Equity Master commenced operations during 1998. The Funds are registered under
the 1940 Act as open end, diversified, management investment companies.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise are contained on pages hereinafter and should be read in
conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of each portfolio. Except for the
Money Market Portfolio, net asset values are based upon market valuations of the
securities held in each of the corresponding portfolios of the Funds. For the
Money Market Portfolio, the net asset values are based on amortized cost of the
securities held which approximates value.
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based on current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for Federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted on each monthly date from
the cash value of the contract to compensate MONY America. These deductions are
treated as contractholder redemptions by the Variable Account. The amount
deducted for the MONY Custom Equity Master Subaccounts for 1998 aggregated
$2,817.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .35 percent (for the MONY
Custom Equity Master Subaccounts) of average
F-47
<PAGE> 128
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
daily net assets of the 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 Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in MONY Series Fund, Inc. and Enterprise Accumulation Trust at
cost, at December 31, 1998 consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
------------------------------------------------- -------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ---------- --------- --------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of
period:
Shares............... 0 0 0 0 0 0 0
Amount............... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------ ------ ---- ------- ------- ------ -------
Shares acquired:
Shares............... 171 110 66 65,877 537 300 679
Amount............... $1,934 $1,559 $737 $65,877 $19,522 $7,931 $27,288
Shares received for
reinvestment of
dividends:
Shares............... 0 0 0 0 0 0 0
Amount............... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Shares redeemed:
Shares............... (1) (2) (1) (1,222) (12) (5) (14)
Amount............... $ (5) $ (23) $ (8) $(1,222) $ (409) $ (124) $ (546)
------ ------ ---- ------- ------- ------ -------
Net change:
Shares............... 170 108 65 64,655 525 295 665
Amount............... $1,929 $1,536 $729 $64,655 $19,113 $7,807 $26,742
------ ------ ---- ------- ------- ------ -------
Shares end of period:
Shares............... 170 108 65 64,655 525 295 665
Amount............... $1,929 $1,536 $729 $64,655 $19,113 $7,807 $26,742
====== ====== ==== ======= ======= ====== =======
</TABLE>
F-48
<PAGE> 129
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Enterprise Accumulation Trust at cost, at December 31, 1998
consist of the following:
<TABLE>
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ---------- --------- ---------- ------------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of
period:
Shares............. 0 0 0 0 0 0 0
Amount............. $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------ ------ ------- ------- ------ ------- ------
Shares acquired:
Shares............. 210 649 10,040 1,988 278 2,200 1,468
Amount............. $1,396 $3,481 $52,758 $10,095 $1,463 $11,178 $8,147
Shares received for
reinvestment of
dividends:
Shares............. 0 0 0 0 0 0 0
Amount............. $ 0 $ 2 $ 0 $ 0 $ 0 $ 0 $ 0
Shares redeemed:
Shares............. (8) (7) (125) (4) (13) (3) (9)
Amount............. $ (52) $ (40) $ (630) $ (20) $ (67) $ (15) $ (48)
------ ------ ------- ------- ------ ------- ------
Net change:
Shares............. 202 642 9,915 1,984 265 2,197 1,459
Amount............. $1,344 $3,443 $52,128 $10,075 $1,396 $11,163 $8,099
------ ------ ------- ------- ------ ------- ------
Shares end of period:
Shares............. 202 642 9,915 1,984 265 2,197 1,459
Amount............. $1,344 $3,443 $52,128 $10,075 $1,396 $11,163 $8,099
====== ====== ======= ======= ====== ======= ======
</TABLE>
F-49
<PAGE> 130
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED BALANCE SHEETS
SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------- ------------
($ IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair
value..................................................... $ 994.3 $1,048.8
Mortgage loans on real estate............................... 115.1 165.0
Policy loans................................................ 67.7 58.8
Real estate................................................. 7.5 6.9
Other invested assets....................................... 8.1 2.3
-------- --------
1,192.7 1,281.8
-------- --------
Cash and cash equivalents................................... 71.6 28.9
Accrued investment income................................... 21.4 20.4
Amounts due from reinsurers................................. 17.3 18.6
Deferred policy acquisition costs........................... 471.8 406.4
Current federal income taxes receivable..................... 12.8 2.3
Other assets................................................ 7.2 24.9
Separate account assets..................................... 4,252.6 4,387.2
-------- --------
Total assets...................................... $6,047.4 $6,170.5
======== ========
LIABILITIES AND SHAREHOLDER'S EQUITY
Future policy benefits...................................... $ 133.6 $ 123.4
Policyholders' account balances............................. $1,157.2 1,154.1
Other policyholders' liabilities............................ 57.7 54.0
Accounts payable and other liabilities...................... 38.0 79.5
Note payable to affiliate (Note 5).......................... 47.4 49.0
Deferred federal income taxes............................... 38.5 19.4
Separate account liabilities................................ 4,252.6 4,387.2
-------- --------
Total liabilities................................. $5,725.0 $5,866.6
======== ========
Commitments and contingencies (Note 4)
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.................................... 199.7 199.7
Retained earnings........................................... 126.3 109.0
Accumulated other comprehensive loss........................ (6.1) (7.3)
-------- --------
Total shareholder's equity........................ 322.4 303.9
-------- --------
Total liabilities and shareholder's equity........ $6,047.4 $6,170.5
======== ========
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-50
<PAGE> 131
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
------ ------
($ IN MILLIONS)
<S> <C> <C>
REVENUES:
Universal life and investment-type product policy fees...... $44.2 $33.7
Premiums.................................................... 7.2 1.1
Net investment income....................................... 22.3 23.1
Net realized (losses)/gains on investments.................. (1.1) 0.0
Other income................................................ 2.2 1.3
----- -----
Total revenues.................................... 74.8 59.2
----- -----
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 18.7 12.0
Interest credited to policyholders' account balances........ 15.9 15.5
Amortization of deferred policy acquisition costs........... 8.9 12.3
Other operating costs and expenses.......................... 17.3 12.9
----- -----
Total benefits and expense........................ 60.8 52.7
----- -----
Income before income taxes.................................. 14.0 6.5
Income tax expense.......................................... 4.7 2.3
----- -----
Net income.................................................. 9.3 4.2
Other comprehensive income (loss), net...................... 2.5 (2.3)
----- -----
Comprehensive income........................................ $11.8 $ 1.9
===== =====
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-51
<PAGE> 132
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
------ ------
($ IN MILLIONS)
<S> <C> <C>
REVENUES:
Universal life and investment-type product policy fees...... $126.2 $105.0
Premiums.................................................... 19.5 3.4
Net investment income....................................... 69.3 71.4
Net realized (losses)/gains on investments.................. (2.9) 1.2
Other Income................................................ 9.7 4.4
------ ------
Total revenues.............................................. 221.8 185.4
------ ------
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 51.0 32.0
Interest credited to policyholders' account balances........ 46.8 48.1
Amortization of deferred policy acquisition costs........... 37.0 32.3
Other operating costs and expenses.......................... 61.6 52.1
------ ------
Total benefited and expenses................................ 196.4 164.5
------ ------
Income before income taxes.................................. 25.4 20.9
Income tax expense.......................................... 8.1 7.3
------ ------
Net income.................................................. 17.3 13.6
Other comprehensive income (loss), net...................... 1.2 (11.8)
------ ------
Comprehensive income........................................ $ 18.5 $ 1.8
====== ======
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-52
<PAGE> 133
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENT
OF CHANGES IN SHAREHOLDER'S EQUITY
NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
ACCUMULATED
CAPITAL OTHER TOTAL
COMMON IN EXCESS RETAINED COMPREHENSIVE SHAREHOLDER'S
STOCK OF PAR EARNINGS INCOME/(LOSS) EQUITY
------ --------- -------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1999............... $2.5 $199.7 $109.0 $(7.3) $303.9
Comprehensive income:
Net income............................. 17.3 17.3
Other comprehensive income(1).......... 1.2 1.2
------
Comprehensive income................ 18.5
---- ------ ------ ----- ------
Balance, September 30, 2000.............. $2.5 $199.7 $126.3 $(6.1) $322.4
==== ====== ====== ===== ======
</TABLE>
---------------
(1) Represents unrealized losses on investments, net of unrealized gains,
reclassification adjustments, and taxes.
See accompanying notes to unaudited interim condensed financial statements.
F-53
<PAGE> 134
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF CASH FLOWS
NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
--------- -------
($ IN MILLIONS)
<S> <C> <C>
NET CASH (USED IN) OPERATING ACTIVITIES..................... $ (71.6) $ (45.6)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales, maturities or repayments of:
Fixed maturities.......................................... 151.7 209.9
Mortgage loans on real estate............................. 60.6 15.5
Real Estate............................................... 0.0 1.2
Other invested assets..................................... 0.0 3.8
Acquisitions of investments:
Fixed maturities.......................................... (100.7) (267.8)
Equity securities......................................... (0.3) 0.0
Mortgage loans on real estate............................. (10.6) (63.7)
Real estate............................................... (0.7) (0.3)
Other invested assets..................................... (0.9) (0.7)
Policy loans, net......................................... (9.0) (4.6)
Other, net................................................ 0.0 0.3
--------- -------
Net cash provided by/(used in) investing activities......... $ 90.1 $(106.4)
--------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Note payable to affiliate................................... -- 50.5
Repayment of note to affiliate.............................. (1.6) (1.0)
Receipts from annuity and universal life policies credited
to policyholders' account balances........................ 1,257.2 929.3
Return of policyholders' account balances on annuity and
universal life policies................................... (1,231.4) (912.2)
--------- -------
Net cash provided by financing activities................... 24.2 66.6
--------- -------
Net decrease in cash and cash equivalents................... 42.7 (85.4)
Cash and cash equivalents, beginning of year................ 28.9 133.4
--------- -------
Cash and cash equivalents, end of period.................... $ 71.6 $ 48.0
========= =======
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-54
<PAGE> 135
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO UNAUDITED INTERIM CONDENSED 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 in 49 states (not including New York), the District of
Columbia, the U.S. Virgin Islands and Puerto Rico.
2. BASIS OF PRESENTATION
The accompanying unaudited interim condensed financial statements are
prepared in conformity with generally accepted accounting principles ("GAAP")
which 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. In the opinion of
management, these statements include all adjustments which were normal recurring
adjustments necessary to present fairly the financial position, results of
operations and cash flows for the periods presented. These statements should be
read in conjunction with the financial statements of the Company for the year
ended December 31, 1999 in the Company's 1999 Annual Report on Form 10-K. The
results of operations for the three-month and nine-month periods ended September
30, 2000 are not necessarily indicative of the results to be expected for the
full year.
3. FEDERAL INCOME TAXES
Federal income taxes for interim periods have been computed using an
estimated annual effective tax rate. This rate is revised, if necessary, at the
end of each successive interim period to reflect the current estimate of the
annual effective tax rate. In 2000, the effective tax rate was revised to
reflect higher dividends received deductions.
4. COMMITMENTS AND CONTINGENCIES
Since late 1995 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 seek primarily
equitable relief (e.g., reformation, specific performance, mandatory injunctive
relief prohibiting the Company from canceling policies for failure to make
required premium payments, imposition of a constructive trust and 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), 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, the Goshen v. The Mutual Life Insurance Company of New York and MONY Life
Insurance Company of America, (now
F-55
<PAGE> 136
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS (CONTINUED)
known as DeFilippo, et al v. The Mutual Life Insurance Company of New York and
MONY Life Insurance Company), the first of the class actions filed, as a
nationwide class consisting of all persons or entities who have, or at the time
of the policy's termination had, an ownership interest in a whole or universal
life insurance policy issued by MONY and sold on an alleged "vanishing premium"
basis during the period January 1, 1982 to December 31, 1995. On March 27, 1997,
MONY filed a motion to dismiss or, alternatively, for summary judgment 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, and/or
are being held in abeyance pending the outcome of the Goshen case.
On October 21, 1997, the New York State Supreme Court granted MONY's motion
for summary judgment and dismissed all claims filed in the Goshen case against
us. 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 New York
State Supreme Court has subsequently reaffirmed that, for purposes of the
remaining New York General Business Law claim, the class is now limited to New
York purchasers only (and plaintiffs have appealed this aspect of the ruling),
and has further held that the New York General Business Law claims of all class
members whose claims accrued prior to November 29, 1992 are barred by the
applicable statute of limitations. MONY intends to defend itself vigorously
against the sole remaining claim.
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 liability resulting from the resolution of these
matters will not have a material adverse effect on the Company's financial
position or results of operations. There can be no assurance, however, that the
present litigation relating to sales practices will not have a material effect
on MONY.
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 September 30, 2000, the Company had commitments outstanding of $4.4
million for fixed rate agricultural loans with periodic interest rate reset
dates. The initial interest rates on the agricultural loans range from 7.9% to
8.3%. There was a fixed rate commercial mortgage commitment of $5.8 million
outstanding as of September 30, 2000. The interest rate on this commercial loan
is 8.0%. The Company had commitments outstanding to purchase $24.5 million of
private fixed maturity securities as of September 30, 2000 with interest rates
ranging from 7.6% to 9.1%.
5. NOTE PAYABLE TO AFFILIATE
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 6.8% per annum and matures on March 5,
2014. Principal and interest are payable quarterly to MBMC. The carrying value
of the note as of September 30, 2000 is $47.4 million.
6. INTERCOMPANY REINSURANCE AGREEMENTS
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%
F-56
<PAGE> 137
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS (CONTINUED)
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. In the third quarter of 2000 the treaty
was amended to include new sales of universal life business written by USFL. At
September 30, 2000 the Company recorded a payable of $5.6 million to USFL in
connection with this agreement which is included in Accounts Payable and Other
Liabilities in the balance sheet.
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.
7. 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.
F-57
<PAGE> 138
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-58
<PAGE> 139
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 $5,889.4
======== ========
</TABLE>
See accompanying notes to financial statements.
F-59
<PAGE> 140
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ 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-60
<PAGE> 141
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) $303.9
==== ====== ====== ====== ======
</TABLE>
See accompanying notes to financial statements.
F-61
<PAGE> 142
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
------- ------- -------
($ 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-62
<PAGE> 143
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-63
<PAGE> 144
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
F-64
<PAGE> 145
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
received on non-accrual status mortgage loans is included in investment income
in the period received. Interest income on restructured mortgage loans is
accrued at the restructured loans' interest rate.
Real estate held for investment, as well as related improvements, 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
F-65
<PAGE> 146
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
experience is reflected in earnings in the period such estimates are revised. In
addition, the effect on the DAC asset that would result from the realization of
unrealized gains (losses) is recognized through an offset to Other Comprehensive
Income as of the balance sheet date.
Policyholders' Account Balances and Future Policy Benefits
Policyholders' account balances for universal life and investment-type
contracts represent an accumulation of gross premium payments plus credited
interest less expense and mortality charges and withdrawals. The weighted
average interest crediting rate for universal life products was approximately
5.8%, 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-66
<PAGE> 147
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
F-67
<PAGE> 148
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
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 $49.0 million.
F-68
<PAGE> 149
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. DEFERRED POLICY ACQUISITION COSTS:
Policy acquisition costs deferred and amortized in 1999, 1998 and 1997 are
as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ 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-69
<PAGE> 150
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-70
<PAGE> 151
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 $0.0 million, respectively, relating to the effect of such
amounts on DAC.
F-71
<PAGE> 152
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. INVESTMENTS:
Fixed Maturity Securities Available-for-Sale:
The amortized cost, gross unrealized gains and losses, and estimated fair
value of fixed maturity securities available-for-sale as of December 31, 1999
and December 31, 1998 are as follows:
<TABLE>
<CAPTION>
GROSS GROSS
UNREALIZED UNREALIZED ESTIMATED
AMORTIZED COST GAINS LOSSES FAIR VALUE
-------------------- ------------- ------------- ----------------------
1999 1998 1999 1998 1999 1998 1999 1998
-------- -------- ---- ----- ----- ---- -------- ----------
($ 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 $0.5 million for the year ended
December 31, 1999 and 1998.
F-72
<PAGE> 153
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The amortized cost and estimated fair value of fixed maturity securities,
by contractual maturity dates, (excluding scheduled sinking funds) as of
December 31, 1999 are as follows:
<TABLE>
<CAPTION>
1999
-----------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
--------- ----------
($ 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-73
<PAGE> 154
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-74
<PAGE> 155
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
$0.5 million for last survivor products.
F-75
<PAGE> 156
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The following table summarizes the effect of reinsurance for the years
indicated:
<TABLE>
<CAPTION>
1999 1998 1997
----- ----- -----
($ 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-76
<PAGE> 157
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
F-77
<PAGE> 158
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
discussed below) seek primarily equitable relief (e.g., reformation, specific
performance, mandatory injunctive relief prohibiting the Company from canceling
policies for failure to make required premium payments, imposition of a
constructive trust and 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.
F-78
<PAGE> 159
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
In March 1998, the National Association of Insurance Commissioners ("NAIC")
voted to adopt its Codification of Statutory Accounting Principles project
(referred to hereafter as "codification"). Codification is a modified form of
statutory accounting principles that will result in changes to the current NAIC
Accounting Practices and Procedures Manual applicable to insurance enterprises.
Although adoption of codification by all states is not a certainty, the NAIC has
recommended that all states enact codification as soon as practicable with an
effective date of January 1, 2001. It is currently anticipated that codification
will become a NAIC state accreditation requirement starting in 2002. In
addition, the American Institute of Certified Public Accountants and the NAIC
have agreed to continue to allow the use of certain permitted 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-79
<PAGE> 160
APPENDIX A
DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
<TABLE>
<CAPTION>
APPLICABLE
ATTAINED AGE PERCENTAGE
------------ ----------
<S> <C>
40 and Under................................................ 250%
41.......................................................... 243
42.......................................................... 236
43.......................................................... 229
44.......................................................... 222
45.......................................................... 215
46.......................................................... 209
47.......................................................... 203
48.......................................................... 197
49.......................................................... 191
50.......................................................... 185
51.......................................................... 178
52.......................................................... 171
53.......................................................... 164
54.......................................................... 157
55.......................................................... 150
56.......................................................... 146
57.......................................................... 142
58.......................................................... 138
59.......................................................... 134
60.......................................................... 130
61.......................................................... 128
62.......................................................... 126
63.......................................................... 124
64.......................................................... 122
65.......................................................... 120
66.......................................................... 119
67.......................................................... 118
68.......................................................... 117
69.......................................................... 116
70.......................................................... 115
71.......................................................... 113
72.......................................................... 111
73.......................................................... 109
74.......................................................... 107
75-90....................................................... 105
91.......................................................... 104
92.......................................................... 103
93.......................................................... 102
94-100...................................................... 101
</TABLE>
A-1
<PAGE> 161
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 162
APPENDIX B
MONTHLY PER $1,000 SPECIFIED AMOUNT FACTORS
<TABLE>
<CAPTION>
ISSUE FACTOR
AGE PER $1,000
----- ----------
<S> <C>
0-17........................................................ $0.07
18-36....................................................... 0.08
37.......................................................... 0.09
38.......................................................... 0.09
39.......................................................... 0.10
40.......................................................... 0.10
41.......................................................... 0.10
42.......................................................... 0.11
43.......................................................... 0.11
44.......................................................... 0.12
45.......................................................... 0.12
46.......................................................... 0.12
47.......................................................... 0.13
48.......................................................... 0.13
49.......................................................... 0.14
50.......................................................... 0.14
51.......................................................... 0.14
52.......................................................... 0.15
53.......................................................... 0.15
54.......................................................... 0.16
55.......................................................... 0.16
56.......................................................... 0.16
57.......................................................... 0.17
58.......................................................... 0.17
59.......................................................... 0.18
60.......................................................... 0.18
61.......................................................... 0.18
62.......................................................... 0.19
63.......................................................... 0.19
64.......................................................... 0.20
65.......................................................... 0.20
66.......................................................... 0.20
67.......................................................... 0.21
68.......................................................... 0.21
69.......................................................... 0.22
70.......................................................... 0.22
71.......................................................... 0.22
72.......................................................... 0.23
73.......................................................... 0.23
74.......................................................... 0.24
75.......................................................... 0.24
76.......................................................... 0.24
77.......................................................... 0.25
78.......................................................... 0.25
79.......................................................... 0.26
80.......................................................... 0.26
81.......................................................... 0.26
82.......................................................... 0.27
83.......................................................... 0.27
84.......................................................... 0.28
85.......................................................... 0.28
</TABLE>
B-1
<PAGE> 163
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 164
APPENDIX C
GUARANTEED DEATH BENEFIT RIDER
MONTHLY GUARANTEE PREMIUM FOR GUARANTEED DEATH
BENEFIT RIDER WITH TEN YEAR/AGE 70 GUARANTEE PERIOD
<TABLE>
<CAPTION>
MONTHLY GUARANTEE
PREMIUM
-----------------
<S> <C>
SPECIFIED AMOUNT = $200,000
Male age 45 Preferred Nonsmoker Death Benefit Option 1...... $229.17
Female age 45 Preferred Nonsmoker Death Benefit Option 1.... $174.00
Male age 45 Standard Smoker Death Benefit Option 1.......... $379.83
Male age 45 Preferred Nonsmoker Death Benefit Option 2...... $229.17
Male age 35 Preferred Nonsmoker Death Benefit Option 1...... $155.83
Male age 55 Preferred Nonsmoker Death Benefit Option 1...... $370.83
</TABLE>
C-1
<PAGE> 165
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 166
APPENDIX D
ILLUSTRATIONS OF DEATH PROCEEDS, FUND VALUES AND
CASH VALUES, AND PREMIUM OUTLAYS
The following tables illustrate how the key financial elements of the
Policy work, specifically, how the death benefits, Fund Values and Cash Values
could vary over an extended period of time. In addition, each table compares
these values with premiums paid accumulated with interest.
The Policies illustrated include the following:
<TABLE>
<CAPTION>
BENEFIT SPECIFIED SEE
SEX AGE SMOKER OPTION AMOUNT PAGE
--- --- ------ ------- --------- ----
<S> <C> <C> <C> <C> <C>
Male 45 Preferred Non-smoker 1 $200,000 D- 5
Female 45 Preferred Non-smoker 1 $200,000 D-15
Male 45 Standard Smoker 1 $200,000 D-25
Male 45 Preferred Non-smoker 2 $200,000 D-34
Male 35 Preferred Non-smoker 1 $200,000 D-44
Male 55 Preferred Non-smoker 1 $200,000 D-54
</TABLE>
The tables show how Death Proceeds, Fund Values and Cash Values of a
hypothetical Policy could vary over an extended period of time if the
Subaccounts of the Variable Account had constant hypothetical gross annual
investment returns of 0%, 6% or 12% over the periods indicated in each table.
The values will differ from those shown in the tables if the annual investment
returns are not absolutely constant. That is, the death benefits, Fund Values
and Cash Values will be different if the returns averaged 0%, 6% or 12% over a
period of years but went above or below those figures in individual Policy
years. These illustrations assume that no Policy Loan has been taken. The
amounts shown would differ if unisex rates were used.
The amounts shown for Death Proceeds, Fund Values and Cash Values reflect
the fact the net investment return on the Policy is lower than the gross
investment return on the Subaccounts of the Variable Account. This results from
the charges levied against the Subaccounts of the Variable Account (i.e., the
mortality and expense risk charge) as well as the premium loads, administrative
charges and Surrender Charges. The difference between the Fund Value and the
Cash Value in the first 14 years is the Surrender Charge.
The tables illustrate cost of insurance and expense charges at both current
rates (which are described under Cost of Insurance, page 45) and at the maximum
rates guaranteed in the Policies. The amounts shown at the end of each Policy
year reflect a daily charge against the Funds as well as those assessed against
the Subaccounts. These charges include the charge against the Subaccounts for
mortality and expense risks and the effect on each Subaccount's investment
experience of the charge to Portfolio assets for investment management and
direct expenses. The mortality and expense risk fee is .35% annually on a
guaranteed basis.
The tables also reflect a deduction for a daily investment advisory fee and
for other expenses of the Portfolio at a rate equivalent to an annual rate of
0.75% of the aggregate average daily net assets of the Portfolio. This
hypothetical rate is representative of the average maximum investment advisory
fee and other expenses of the Portfolios applicable to the Subaccounts of the
Variable Account. Actual fees and other expenses vary by Portfolio and may be
subject to agreements by the sponsor to waive or otherwise reimburse each
Portfolio for operating expenses which exceed certain limits. There can be no
assurance that the expense reimbursement arrangements will continue in the
future, and any unreimbursed expenses would be reflected in the values included
on the tables.
The effect of these investment management, direct expenses and mortality
and expense risk charges on a 0% gross rate of return would result in a net rate
of return of -.75%, on 6% it would be 5.25%, and on 12% it would be 11.25%.
The tables assume the deduction of charges including administrative and
sales charges. For each age, there are tables for death benefit Options 1 and 2
and each option is illustrated using current and guaranteed
D-1
<PAGE> 167
policy cost factors. The tables reflect the fact that the Company does not
currently make any charge against the Variable Account for state or federal
taxes. If such a charge is made in the future, it will take a higher rate of
return to produce after-tax returns of 0%, 6% or 12%.
The following are descriptions of Table columns and key terms:
Age: Insured's attained age at the end of the policy year
Premium Outlay: The annualized out-of-pocket premium payments for each
policy year including scheduled and any anticipated unscheduled premium
payments. Premium payments are assumed to be paid at the beginning of each
premium paying period. Amounts of surrenders and loans plus loan interest if
any, are shown on the pages captioned "Premiums, Surrenders and Loans".
Premium Accumulated at 5%: is equal to the premiums compounded at an
annual effective rate of 5% and is shown at the end of the year.
GUARANTEED CHARGES AT 0.00%, 6.00% OR 12.00%
Cash Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds, less
all charges, fees and deductions at their guaranteed maximum. The cash value
also takes into account any loans illustrated, as well as, the applicable
surrender charges that would apply if the policy were surrendered prior to the
end of the first fourteen years.
Fund Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds, less
all charges, fees and deductions at their guaranteed maximum. The Fund Value
DOES NOT take into account the applicable surrender charges that would apply if
the policy were surrendered prior to the end of the first fourteen years.
Death Proceeds: The benefit payable if the insured's death occurs at the
end of the policy year, assuming a 0.00%, 6.00% or 12,00% hypothetical rate of
return on the Funds, less all charges, fees and deductions at their guaranteed
maximums.
CURRENT CHARGES AT 0.00%, 6.00% OR 12.00%
Cash Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds, less
all charges, fees and deductions at the current, non-guaranteed rates. The cash
value also takes into account any loans illustrated, as well as, the applicable
surrender charges that would apply if the policy were surrendered prior to the
end of the first fourteen years.
Fund Value: The value of the subaccounts at the end of each policy year
assuming a 0.00%, 6.00% or 12.00% hypothetical rate of return on the Funds, less
all charges, fees and deductions at the current, non-guaranteed rates. The Fund
Value DOES NOT take into account the applicable surrender charges that would
apply if the policy were surrendered prior to the end of the first fourteen
years.
Death Proceeds: The benefit payable if the insured's death occurs at the
end of the policy year assuming a 0.00%, 6.00% or 12.00% hypothetical rate of
return on the Funds, less all charges, fees and deductions at the current,
non-guaranteed rates.
The Company will furnish, upon request, a comparable illustration based on
the age and sex of the proposed Insured, standard Premium Class assumptions and
an initial Specified Amount and Scheduled Premium Payments of the applicant's
choice. If a Policy is purchased, an individualized illustration will be
delivered reflecting the Scheduled Premium Payment chosen and the Insured's
actual risk class. After issuance, the Company will provide upon request an
illustration of future Policy benefits based on both guaranteed and current cost
factor assumptions and actual Account Value.
The following is the page of supplemental footnotes to each of the flexible
premium variable life to age 100 numeric summary and standard ledger statements
which follow and which begin on pages B-4.
D-2
<PAGE> 168
STANDARD LEDGER STATEMENT -- SUPPLEMENTAL FOOTNOTE PAGE
MONY CUSTOM EQUITY MASTER
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
MONY LIFE INSURANCE COMPANY OF AMERICA
ADDITIONAL INFORMATION
This policy has been tested for the possibility of classification as a
modified endowment. This test is not a guarantee that a policy will not be
classified as a modified endowment.
This illustration has been checked against federal tax laws relating to
their definition of life insurance and is in compliance based on proposed
premium payments and coverages. Any decrease in specified amount and/or a change
in death benefit option 2 to death benefit option 1 and/or surrenders occurring
in the first 15 years may cause a taxable event. In addition, if the policy is
defined as a modified endowment policy, a loan, surrender, or assignment or
pledge (unless such assignment or pledge is for burial expenses and the maximum
death benefit is not in excess of $25,000) may be considered a taxable
distribution and a ten percent penalty may be added to any tax on the
distribution. Please consult your tax advisor for advice.
GUIDELINE PREMIUMS
<TABLE>
<CAPTION>
AGE, GENDER, UNDERWRITING CLASSIFICATION INITIAL GUIDELINE INITIAL GUIDELINE
AND DEATH BENEFIT OPTION SINGLE PREMIUM ANNUAL PREMIUM
---------------------------------------- ----------------- -----------------
<S> <C> <C>
Age 45, Male, Non-Smoker Preferred, Option 1 $48,612.51 $ 4,061.34
Age 45, Female, Non-Smoker Preferred, Option 1 $41,861.02 $ 3,427.79
Age 45, Male, Smoker Standard, Option 1 $61,692.34 $ 5,353.98
Age 45, Male, Non-Smoker, Preferred, Option 2 $48,612.51 $12,870.41
Age 35, Male, Non-Smoker, Preferred, Option 1 $31,129.31 $ 2,528.64
Age 55, Male, Non-Smoker, Preferred, Option 1 $73,860.30 $ 6,778.45
</TABLE>
Values shown on this illustration are based on a policyowner tax bracket of
0%.
Premiums are assumed to be paid at the beginning of the payment period.
Policy values and ages are shown as of the end of the policy year and reflect
the effect of all loans and surrenders. The death proceeds, fund value and value
upon surrender will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The policy's cash value is net of any applicable surrender charge.
Premiums less the following deductions are added to the fund value:
1. A premium tax charge of 2.25% of gross premiums in all policy years.
2. A sales charge on the gross premiums. The sales charges equal 4% of
each premium dollar paid for amounts less than $500,000, and 3% for
total amounts of $500,000 or more.
3. A DAC tax charge of 1.50% of gross premiums in all policy years.
Those columns assuming guaranteed charges use the current monthly mortality
charges, current monthly administrative charges, current charges for mortality
and expense risks, current charges for rider benefits, if any, and current
premium sales charge ("current charges" for the first year) as well as the
assumed hypothetical gross annual investment return indicated. Thereafter these
columns use guaranteed monthly mortality charges, guaranteed monthly
administrative charges, guaranteed charges for mortality and expense risks,
guaranteed charges for rider benefits if any, guaranteed maximum premium sales
charge, and the assumed hypothetical gross annual investment return indicated.
Those columns assuming current charges are based upon "current charges" and the
assumed hypothetical gross annual investment return indicated.
The current charges declared by MONY Life Insurance Company of America are
guaranteed for the first policy year and apply to policies issued as of the
illustration preparation date and could change between the preparation date and
the date the policy is issued. After the first policy year, current charges are
not guaranteed, and may be changed at the discretion of MONY Life Insurance
Company of America.
D-3
<PAGE> 169
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
NET 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,813 200,000 0 1,813 200,000 0 1,813 200,000
5 2,650 4,585 6,705 200,000 4,585 6,705 200,000 6,251 8,371 200,000
10 2,650 9,413 10,738 200,000 9,413 10,738 200,000 14,628 15,953 200,000
20 2,650 6,766 6,766 200,000 6,766 6,766 200,000 23,937 23,937 200,000
@ Age 70 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 21,026 21,026 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 22 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand that any
ACKNOWLEDGEMENT not-guaranteed elements are subject to change and could be either
higher or lower. The agent has told me that they are not guaranteed.
---------------------------------------- -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the applicant
ACKNOWLEDGEMENT 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: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-4
<PAGE> 170
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,813 200,000 0 1,813 200,000 0 1,813 200,000
2 47 2,650 5,704 1,022 3,142 200,000 1,022 3,142 200,000 1,419 3,539 200,000
3 48 2,650 8,772 2,272 4,392 200,000 2,272 4,392 200,000 3,059 5,179 200,000
4 49 2,650 11,993 3,467 5,587 200,000 3,467 5,587 200,000 4,662 6,782 200,000
5 50 2,650 15,375 4,585 6,705 200,000 4,585 6,705 200,000 6,251 8,371 200,000
6 51 2,650 18,926 5,605 7,725 200,000 5,605 7,725 200,000 7,825 9,945 200,000
7 52 2,650 22,655 6,528 8,648 200,000 6,528 8,648 200,000 9,386 11,506 200,000
8 53 2,650 26,570 7,621 9,476 200,000 7,621 9,476 200,000 11,176 13,031 200,000
9 54 2,650 30,681 8,574 10,164 200,000 8,574 10,164 200,000 12,930 14,520 200,000
10 55 2,650 34,998 9,413 10,738 200,000 9,413 10,738 200,000 14,628 15,953 200,000
11 56 2,650 39,530 10,093 11,153 200,000 10,093 11,153 200,000 16,249 17,309 200,000
12 57 2,650 44,289 10,615 11,410 200,000 10,615 11,410 200,000 17,773 18,568 200,000
13 58 2,650 49,286 10,980 11,510 200,000 10,980 11,510 200,000 19,181 19,711 200,000
14 59 2,650 54,533 11,144 11,409 200,000 11,144 11,409 200,000 20,432 20,697 200,000
15 60 2,650 60,042 11,107 11,107 200,000 11,107 11,107 200,000 21,487 21,487 200,000
16 61 2,650 65,827 10,846 10,846 200,000 10,846 10,846 200,000 22,371 22,371 200,000
17 62 2,650 71,901 10,336 10,336 200,000 10,336 10,336 200,000 23,062 23,062 200,000
18 63 2,650 78,278 9,509 9,509 200,000 9,509 9,509 200,000 23,542 23,542 200,000
19 64 2,650 84,975 8,336 8,336 200,000 8,336 8,336 200,000 23,834 23,834 200,000
20 65 2,650 92,006 6,766 6,766 200,000 6,766 6,766 200,000 23,937 23,937 200,000
21 66 2,650 99,389 4,742 4,742 200,000 4,742 4,742 200,000 23,853 23,853 200,000
22 67 2,650 107,141 2,226 2,226 200,000 2,226 2,226 200,000 23,517 23,517 200,000
23 68 2,650 115,280 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 22,929 22,929 200,000
24 69 2,650 123,827 22,107 22,107 200,000
25 70 2,650 132,801 21,026 21,026 200,000
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-5
<PAGE> 171
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 19,637 19,637 200,000
27 72 2,650 152,117 18,000 18,000 200,000
28 73 2,650 162,505 15,996 15,996 200,000
29 74 2,650 173,413 13,550 13,550 200,000
30 75 2,650 184,866 10,597 10,597 200,000
31 76 2,650 196,892 7,091 7,091 200,000
32 77 2,650 209,519 2,957 2,957 200,000
33 78 0 219,995 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-6
<PAGE> 172
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- ----------------------------
NET 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,813 200,000 0 1,940 200,000 0 1,940 200,000
5 2,650 4,585 6,705 200,000 6,162 8,282 200,000 8,027 10,147 200,000
10 2,650 9,413 10,738 200,000 14,857 16,182 200,000 21,335 22,660 200,000
20 2,650 6,766 6,766 200,000 26,375 26,375 200,000 52,689 52,689 200,000
@ Age 70 2,650 LAPSED LAPSED LAPSED 20,215 20,215 200,000 68,802 68,802 200,000
@ Age 85 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 110,745 110,745 200,000
@ Age 90 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 105,660 105,660 200,000
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 29 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 22 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------------------ -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------------------ -------------------------
Signature of Representative Date
</TABLE>
Age 45 Male Non-Smoker Preferred Prepared On: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-7
<PAGE> 173
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,813 200,000 0 1,940 200,000 0 1,940 200,000
2 47 2,650 5,704 1,022 3,142 200,000 1,376 3,496 200,000 1,785 3,905 200,000
3 48 2,650 8,772 2,272 4,392 200,000 2,942 5,062 200,000 3,778 5,898 200,000
4 49 2,650 11,993 3,467 5,587 200,000 4,544 6,664 200,000 5,850 7,970 200,000
5 50 2,650 15,375 4,585 6,705 200,000 6,162 8,282 200,000 8,027 10,147 200,000
6 51 2,650 18,926 5,605 7,725 200,000 7,772 9,892 200,000 10,315 12,435 200,000
7 52 2,650 22,655 6,528 8,648 200,000 9,378 11,498 200,000 12,720 14,840 200,000
8 53 2,650 26,570 7,621 9,476 200,000 11,245 13,100 200,000 15,491 17,346 200,000
9 54 2,650 30,681 8,574 10,164 200,000 13,064 14,654 200,000 18,367 19,957 200,000
10 55 2,650 34,998 9,413 10,738 200,000 14,857 16,182 200,000 21,335 22,660 200,000
11 56 2,650 39,530 10,093 11,153 200,000 16,580 17,640 200,000 24,377 25,437 200,000
12 57 2,650 44,289 10,615 11,410 200,000 18,232 19,027 200,000 27,480 28,275 200,000
13 58 2,650 49,286 10,980 11,510 200,000 19,810 20,340 200,000 30,627 31,157 200,000
14 59 2,650 54,533 11,144 11,409 200,000 21,269 21,534 200,000 33,785 34,050 200,000
15 60 2,650 60,042 11,107 11,107 200,000 22,604 22,604 200,000 36,918 36,918 200,000
16 61 2,650 65,827 10,846 10,846 200,000 23,800 23,800 200,000 40,063 40,063 200,000
17 62 2,650 71,901 10,336 10,336 200,000 24,834 24,834 200,000 43,211 43,211 200,000
18 63 2,650 78,278 9,509 9,509 200,000 25,634 25,634 200,000 46,351 46,351 200,000
19 64 2,650 84,975 8,336 8,336 200,000 26,168 26,168 200,000 49,507 49,507 200,000
20 65 2,650 92,006 6,766 6,766 200,000 26,375 26,375 200,000 52,689 52,689 200,000
21 66 2,650 99,389 4,742 4,742 200,000 26,192 26,192 200,000 55,905 55,905 200,000
22 67 2,650 107,141 2,226 2,226 200,000 25,567 25,567 200,000 59,111 59,111 200,000
23 68 2,650 115,280 LAPSED LAPSED LAPSED 24,421 24,421 200,000 62,317 62,317 200,000
24 69 2,650 123,827 22,686 22,686 200,000 65,549 65,549 200,000
25 70 2,650 132,801 20,215 20,215 200,000 68,802 68,802 200,000
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-8
<PAGE> 174
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 16,864 16,864 200,000 72,053 72,053 200,000
27 72 2,650 152,117 12,435 12,435 200,000 75,362 75,362 200,000
28 73 2,650 162,505 6,651 6,651 200,000 78,667 78,667 200,000
29 74 2,650 173,413 LAPSED LAPSED LAPSED 81,934 81,934 200,000
30 75 2,650 184,866 85,151 85,151 200,000
31 76 2,650 196,892 88,313 88,313 200,000
32 77 2,650 209,519 91,409 91,409 200,000
33 78 2,650 222,777 94,412 94,412 200,000
34 79 2,650 236,699 97,307 97,307 200,000
35 80 2,650 251,316 100,081 100,081 200,000
36 81 2,650 266,665 102,708 102,708 200,000
37 82 2,650 282,780 105,161 105,161 200,000
38 83 2,650 299,702 107,431 107,431 200,000
39 84 2,650 317,469 109,328 109,328 200,000
40 85 2,650 336,125 110,745 110,745 200,000
41 86 2,650 355,714 111,600 111,600 200,000
42 87 2,650 376,282 111,745 111,745 200,000
43 88 2,650 397,879 110,924 110,924 200,000
44 89 2,650 420,555 108,999 108,999 200,000
45 90 2,650 444,366 105,660 105,660 200,000
46 91 2,650 469,366 100,322 100,322 200,000
47 92 2,650 495,617 92,511 92,511 200,000
48 93 2,650 523,181 81,392 81,392 200,000
49 94 2,650 552,122 66,036 66,036 200,000
50 95 2,650 582,511 44,890 44,890 200,000
51 96 2,650 614,419 16,275 16,275 200,000
52 97 0 645,140 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-9
<PAGE> 175
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- --------------------------------- ---------------------------------
NET 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,813 200,000 0 2,067 200,000 0 2,067 200,000
5 2,650 4,585 6,705 200,000 8,035 10,155 200,000 10,118 12,238 200,000
10 2,650 9,413 10,738 200,000 22,931 24,256 200,000 31,033 32,358 200,000
20 2,650 6,766 6,766 200,000 76,011 76,011 200,000 118,193 118,193 200,000
@ Age 70 2,650 LAPSED LAPSED LAPSED 125,872 125,872 200,000 209,703 209,703 243,256
@ Age 85 2,650 LAPSED LAPSED LAPSED 620,636 620,636 651,668 1,039,762 1,039,762 1,091,750
@ Age 90 2,650 LAPSED LAPSED LAPSED 1,007,251 1,007,251 1,057,613 1,717,929 1,717,929 1,803,826
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand that any
ACKNOWLEDGEMENT not-guaranteed elements are subject to change and could be either
higher or lower. The agent has told me that they are not guaranteed.
---------------------------------------- -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the applicant
ACKNOWLEDGEMENT 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-10
<PAGE> 176
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------------ ------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,813 200,000 0 2,067 200,000 0 2,067 200,000
2 47 2,650 5,704 1,022 3,142 200,000 1,746 3,866 200,000 2,167 4,287 200,000
3 48 2,650 8,772 2,272 4,392 200,000 3,674 5,794 200,000 4,559 6,679 200,000
4 49 2,650 11,993 3,467 5,587 200,000 5,771 7,891 200,000 7,192 9,312 200,000
5 50 2,650 15,375 4,585 6,705 200,000 8,035 10,155 200,000 10,118 12,238 200,000
6 51 2,650 18,926 5,605 7,725 200,000 10,461 12,581 200,000 13,368 15,488 200,000
7 52 2,650 22,655 6,528 8,648 200,000 13,070 15,190 200,000 16,979 19,099 200,000
8 53 2,650 26,570 7,621 9,476 200,000 16,152 18,007 200,000 21,233 23,088 200,000
9 54 2,650 30,681 8,574 10,164 200,000 19,423 21,013 200,000 25,909 27,499 200,000
10 55 2,650 34,998 9,413 10,738 200,000 22,931 24,256 200,000 31,033 32,358 200,000
11 56 2,650 39,530 10,093 11,153 200,000 26,665 27,725 200,000 36,637 37,697 200,000
12 57 2,650 44,289 10,615 11,410 200,000 30,657 31,452 200,000 42,758 43,555 200,000
13 58 2,650 49,286 10,980 11,510 200,000 34,945 35,475 200,000 49,441 49,971 200,000
14 59 2,650 54,533 11,144 11,409 200,000 39,531 39,796 200,000 56,722 56,987 200,000
15 60 2,650 60,042 11,107 11,107 200,000 44,459 44,459 200,000 64,645 64,645 200,000
16 61 2,650 65,827 10,846 10,846 200,000 49,787 49,787 200,000 73,311 73,311 200,000
17 62 2,650 71,901 10,336 10,336 200,000 55,568 55,568 200,000 82,805 82,805 200,000
18 63 2,650 78,278 9,509 9,509 200,000 61,822 61,822 200,000 93,239 93,239 200,000
19 64 2,650 84,975 8,336 8,336 200,000 68,616 68,616 200,000 104,799 104,799 200,000
20 65 2,650 92,006 6,766 6,766 200,000 76,011 76,011 200,000 117,652 117,652 200,000
21 66 2,650 99,389 4,742 4,742 200,000 84,089 84,089 200,000 132,699 132,699 200,000
22 67 2,650 107,141 2,226 2,226 200,000 92,967 92,967 200,000 148,897 148,897 200,000
23 68 2,650 115,280 LAPSED LAPSED LAPSED 102,773 102,773 200,000 167,044 167,044 200,000
24 69 2,650 123,827 113,681 113,681 200,000 187,309 187,309 219,151
25 70 2,650 132,801 125,872 125,872 200,000 209,703 209,703 243,256
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-11
<PAGE> 177
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 139,592 139,592 200,000 234,444 234,444 269,611
27 72 2,650 152,117 155,152 155,152 200,000 261,854 261,854 295,895
28 73 2,650 162,505 172,947 172,947 200,000 292,224 292,224 324,368
29 74 2,650 173,413 193,381 193,381 210,785 325,896 325,896 355,227
30 75 2,650 184,866 216,209 216,209 231,343 363,268 363,268 388,696
31 76 2,650 196,892 241,624 241,624 253,705 404,798 404,798 425,038
32 77 2,650 209,519 269,630 269,630 283,112 450,714 450,714 473,250
33 78 2,650 222,777 300,477 300,477 315,501 501,464 501,464 526,538
34 79 2,650 236,699 334,432 334,432 351,154 557,542 557,542 585,419
35 80 2,650 251,316 371,783 371,783 390,372 619,488 619,488 650,462
36 81 2,650 266,665 412,834 412,834 433,476 687,894 687,894 722,288
37 82 2,650 282,780 457,904 457,904 480,799 763,405 763,405 801,575
38 83 2,650 299,702 507,325 507,325 532,692 846,737 846,737 889,074
39 84 2,650 317,469 561,445 561,445 589,518 938,592 938,592 985,522
40 85 2,650 336,125 620,635 620,635 651,667 1,039,762 1,039,762 1,091,750
41 86 2,650 355,714 685,286 685,286 719,550 1,151,125 1,151,125 1,208,681
42 87 2,650 376,282 755,816 755,816 793,606 1,273,604 1,273,604 1,337,284
43 88 2,650 397,879 832,674 832,674 874,307 1,408,139 1,408,139 1,478,546
44 89 2,650 420,555 916,324 916,324 962,140 1,555,866 1,555,866 1,633,659
45 90 2,650 444,366 1,007,248 1,007,248 1,057,611 1,717,929 1,717,929 1,803,826
46 91 2,650 469,366 1,105,923 1,105,923 1,161,220 1,895,412 1,895,412 1,990,183
47 92 2,650 495,617 1,216,212 1,216,212 1,264,861 2,092,779 2,092,779 2,176,490
48 93 2,650 523,181 1,340,153 1,340,153 1,380,358 2,312,983 2,312,983 2,382,372
49 94 2,650 552,122 1,480,257 1,480,257 1,509,862 2,559,651 2,559,651 2,610,844
50 95 2,650 582,511 1,639,784 1,639,784 1,656,182 2,836,991 2,836,991 2,865,361
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-12
<PAGE> 178
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 96 2,650 614,419 1,815,474 1,815,474 1,833,629 3,143,885 3,143,885 3,175,324
52 97 2,650 647,922 2,008,218 2,008,218 2,028,300 3,483,473 3,483,473 3,518,308
53 98 2,650 683,101 2,217,711 2,217,711 2,239,888 3,859,097 3,859,097 3,897,688
54 99 2,650 720,038 2,445,767 2,445,767 2,470,224 4,274,491 4,274,491 4,317,236
55 100 2,650 758,823 2,697,004 2,697,004 2,723,974 4,733,575 4,733,575 4,780,911
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-13
<PAGE> 179
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
NET 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,050 0 1,336 200,000 0 1,336 200,000 0 1,336 200,000
5 2,050 2,839 4,479 200,000 2,839 4,479 200,000 4,632 6,272 200,000
10 2,050 5,905 6,930 200,000 5,905 6,930 200,000 10,755 11,780 200,000
20 2,050 5,669 5,669 200,000 5,669 5,669 200,000 18,121 18,121 200,000
@ Age 70 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 17,992 17,992 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 33 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand that any
ACKNOWLEDGEMENT not-guaranteed elements are subject to change and could be either
higher or lower. The agent has told me that they are not guaranteed.
---------------------------------------- -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the applicant
ACKNOWLEDGEMENT 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 Female Non-Smoker Preferred Prepared On: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,050.00-Premium Mode:
Annual-Riders: None
D-14
<PAGE> 180
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,050 2,153 0 1,336 200,000 0 1,336 200,000 0 1,336 200,000
2 47 2,050 4,413 549 2,189 200,000 549 2,189 200,000 971 2,611 200,000
3 48 2,050 6,786 1,373 3,013 200,000 1,373 3,013 200,000 2,211 3,851 200,000
4 49 2,050 9,278 2,144 3,784 200,000 2,144 3,784 200,000 3,439 5,079 200,000
5 50 2,050 11,894 2,839 4,479 200,000 2,839 4,479 200,000 4,632 6,272 200,000
6 51 2,050 14,641 3,484 5,124 200,000 3,484 5,124 200,000 5,814 7,454 200,000
7 52 2,050 17,526 4,055 5,695 200,000 4,055 5,695 200,000 6,962 8,602 200,000
8 53 2,050 20,554 4,758 6,193 200,000 4,758 6,193 200,000 8,281 9,716 200,000
9 54 2,050 23,735 5,367 6,597 200,000 5,367 6,597 200,000 9,545 10,775 200,000
10 55 2,050 27,074 5,905 6,930 200,000 5,905 6,930 200,000 10,755 11,780 200,000
11 56 2,050 30,580 6,349 7,169 200,000 6,349 7,169 200,000 11,933 12,753 200,000
12 57 2,050 34,262 6,701 7,316 200,000 6,701 7,316 200,000 13,059 13,674 200,000
13 58 2,050 38,127 6,962 7,372 200,000 6,962 7,372 200,000 14,111 14,521 200,000
14 59 2,050 42,186 7,130 7,335 200,000 7,130 7,335 200,000 14,981 15,186 200,000
15 60 2,050 46,448 7,207 7,207 200,000 7,207 7,207 200,000 15,672 15,672 200,000
16 61 2,050 50,923 7,253 7,253 200,000 7,253 7,253 200,000 16,354 16,354 200,000
17 62 2,050 55,621 7,161 7,161 200,000 7,161 7,161 200,000 16,946 16,946 200,000
18 63 2,050 60,555 6,886 6,886 200,000 6,886 6,886 200,000 17,426 17,426 200,000
19 64 2,050 65,735 6,404 6,404 200,000 6,404 6,404 200,000 17,817 17,817 200,000
20 65 2,050 71,174 5,669 5,669 200,000 5,669 5,669 200,000 18,121 18,121 200,000
21 66 2,050 76,886 4,655 4,655 200,000 4,655 4,655 200,000 18,337 18,337 200,000
22 67 2,050 82,882 3,357 3,357 200,000 3,357 3,357 200,000 18,445 18,445 200,000
23 68 2,050 89,179 1,770 1,770 200,000 1,770 1,770 200,000 18,423 18,423 200,000
24 69 2,050 95,791 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 18,272 18,272 200,000
25 70 2,050 102,733 17,992 17,992 200,000
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
Age 45 Female Non-Smoker Preferred Prepared On: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,050.00-Premium Mode:
Annual-Riders: None
D-15
<PAGE> 181
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,050 110,022 17,517 17,517 200,000
27 72 2,050 117,675 16,868 16,868 200,000
28 73 2,050 125,712 16,044 16,044 200,000
29 74 2,050 134,150 14,867 14,867 200,000
30 75 2,050 143,010 13,308 13,308 200,000
31 76 2,050 152,313 11,360 11,360 200,000
32 77 2,050 162,081 8,784 8,784 200,000
33 78 2,050 172,337 5,579 5,579 200,000
34 79 2,050 183,107 1,716 1,716 200,000
35 80 0 192,262 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
Age 45 Female Non-Smoker Preferred Prepared On: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,050.00-Premium Mode:
Annual-Riders: None
D-16
<PAGE> 182
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
NET 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,050 0 1,336 200,000 0 1,432 200,000 0 1,432 200,000
5 2,050 2,839 4,479 200,000 3,955 5,595 200,000 5,964 7,604 200,000
10 2,050 5,905 6,930 200,000 9,611 10,636 200,000 15,764 16,789 200,000
20 2,050 5,669 5,669 200,000 18,519 18,519 200,000 39,121 39,121 200,000
@ Age 70 2,050 LAPSED LAPSED LAPSED 16,541 16,541 200,000 52,411 52,411 200,000
@ Age 85 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 77,243 77,243 200,000
@ Age 90 2,050 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 47,395 47,395 200,000
</TABLE>
* Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 31 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 23 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- -----------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- -----------------
Signature of Representative Date
</TABLE>
Age 45 Female Non-Smoker Preferred Prepared On: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,050.00-Premium Mode:
Annual-Riders: None
D-17
<PAGE> 183
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,050 2,153 0 1,336 200,000 0 1,432 200,000 0 1,432 200,000
2 47 2,050 4,413 549 2,189 200,000 811 2,451 200,000 1,246 2,886 200,000
3 48 2,050 6,786 1,373 3,013 200,000 1,859 3,499 200,000 2,750 4,390 200,000
4 49 2,050 9,278 2,144 3,784 200,000 2,915 4,555 200,000 4,329 5,969 200,000
5 50 2,050 11,894 2,839 4,479 200,000 3,955 5,595 200,000 5,964 7,604 200,000
6 51 2,050 14,641 3,484 5,124 200,000 5,002 6,642 200,000 7,681 9,321 200,000
7 52 2,050 17,526 4,055 5,695 200,000 6,035 7,675 200,000 9,461 11,101 200,000
8 53 2,050 20,554 4,758 6,193 200,000 7,258 8,693 200,000 11,513 12,948 200,000
9 54 2,050 23,735 5,367 6,597 200,000 8,442 9,672 200,000 13,613 14,843 200,000
10 55 2,050 27,074 5,905 6,930 200,000 9,611 10,636 200,000 15,764 16,789 200,000
11 56 2,050 30,580 6,349 7,169 200,000 10,739 11,559 200,000 17,993 18,813 200,000
12 57 2,050 34,262 6,701 7,316 200,000 11,828 12,443 200,000 20,281 20,896 200,000
13 58 2,050 38,127 6,962 7,372 200,000 12,874 13,284 200,000 22,612 23,022 200,000
14 59 2,050 42,186 7,130 7,335 200,000 13,876 14,081 200,000 24,880 25,085 200,000
15 60 2,050 46,448 7,207 7,207 200,000 14,833 14,833 200,000 27,088 27,088 200,000
16 61 2,050 50,923 7,253 7,253 200,000 15,812 15,812 200,000 29,410 29,410 200,000
17 62 2,050 55,621 7,161 7,161 200,000 16,712 16,712 200,000 31,777 31,777 200,000
18 63 2,050 60,555 6,886 6,886 200,000 17,487 17,487 200,000 34,170 34,170 200,000
19 64 2,050 65,735 6,404 6,404 200,000 18,107 18,107 200,000 36,617 36,617 200,000
20 65 2,050 71,174 5,669 5,669 200,000 18,519 18,519 200,000 39,121 39,121 200,000
21 66 2,050 76,886 4,655 4,655 200,000 18,691 18,691 200,000 41,688 41,688 200,000
22 67 2,050 82,882 3,357 3,357 200,000 18,606 18,606 200,000 44,306 44,306 200,000
23 68 2,050 89,179 1,770 1,770 200,000 18,248 18,248 200,000 46,962 46,962 200,000
24 69 2,050 95,791 LAPSED LAPSED LAPSED 17,576 17,576 200,000 49,661 49,661 200,000
25 70 2,050 102,733 16,541 16,541 200,000 52,411 52,411 200,000
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
Age 45 Female Non-Smoker Preferred Prepared On: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,050.00-Premium Mode:
Annual-Riders: None
D-18
<PAGE> 184
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,050 110,022 15,049 15,049 200,000 55,165 55,165 200,000
27 72 2,050 117,675 12,990 12,990 200,000 57,946 57,946 200,000
28 73 2,050 125,712 10,195 10,195 200,000 60,763 60,763 200,000
29 74 2,050 134,150 6,447 6,447 200,000 63,487 63,487 200,000
30 75 2,050 143,010 1,565 1,565 200,000 66,107 66,107 200,000
31 76 2,050 152,313 LAPSED LAPSED LAPSED 68,627 68,627 200,000
32 77 2,050 162,081 70,891 70,891 200,000
33 78 2,050 172,337 72,911 72,911 200,000
34 79 2,050 183,107 74,682 74,682 200,000
35 80 2,050 194,414 76,210 76,210 200,000
36 81 2,050 206,288 77,471 77,471 200,000
37 82 2,050 218,755 78,328 78,328 200,000
38 83 2,050 231,845 78,692 78,692 200,000
39 84 2,050 245,590 78,399 78,399 200,000
40 85 2,050 260,022 77,243 77,243 200,000
41 86 2,050 275,175 75,128 75,128 200,000
42 87 2,050 291,086 71,393 71,393 200,000
43 88 2,050 307,793 65,764 65,764 200,000
44 89 2,050 325,335 57,924 57,924 200,000
45 90 2,050 343,755 47,395 47,395 200,000
46 91 2,050 363,095 33,562 33,562 200,000
47 92 2,050 383,402 14,717 14,717 200,000
48 93 0 402,572 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
Age 45 Female Non-Smoker Preferred Prepared On: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,050.00-Premium Mode:
Annual-Riders: None
D-19
<PAGE> 185
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- ---------------------------- ---------------------------------
NET 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,050 0 1,336 200,000 0 1,528 200,000 0 1,528 200,000
5 2,050 2,839 4,479 200,000 5,286 6,926 200,000 7,531 9,171 200,000
10 2,050 5,905 6,930 200,000 15,152 16,177 200,000 23,012 24,037 200,000
20 2,050 5,669 5,669 200,000 50,980 50,980 200,000 86,963 86,963 200,000
@ Age 70 2,050 LAPSED LAPSED LAPSED 83,098 83,098 200,000 153,380 153,380 200,000
@ Age 85 2,050 LAPSED LAPSED LAPSED 388,228 388,228 407,640 770,877 770,877 809,421
@ Age 90 2,050 LAPSED LAPSED LAPSED 638,191 638,191 670,102 1,278,901 1,278,901 1,342,846
</TABLE>
* Policy lapses in policy year 24 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- -----------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- -----------------
Signature of Representative Date
</TABLE>
Age 45 Female Non-Smoker Preferred Prepared On: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,050.00-Premium Mode:
Annual-Riders: None
D-20
<PAGE> 186
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES
------------------------------------------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,050 2,153 0 1,336 200,000 0 1,528 200,000
2 47 2,050 4,413 549 2,189 200,000 1,085 2,725 200,000
3 48 2,050 6,786 1,373 3,013 200,000 2,392 4,032 200,000
4 49 2,050 9,278 2,144 3,784 200,000 3,796 5,436 200,000
5 50 2,050 11,894 2,839 4,479 200,000 5,286 6,926 200,000
6 51 2,050 14,641 3,484 5,124 200,000 6,895 8,535 200,000
7 52 2,050 17,526 4,055 5,695 200,000 8,615 10,255 200,000
8 53 2,050 20,554 4,758 6,193 200,000 10,665 12,100 200,000
9 54 2,050 23,735 5,367 6,597 200,000 12,831 14,061 200,000
10 55 2,050 27,074 5,905 6,930 200,000 15,152 16,177 200,000
11 56 2,050 30,580 6,349 7,169 200,000 17,624 18,444 200,000
12 57 2,050 34,262 6,701 7,316 200,000 20,268 20,883 200,000
13 58 2,050 38,127 6,962 7,372 200,000 23,105 23,515 200,000
14 59 2,050 42,186 7,130 7,335 200,000 26,161 26,366 200,000
15 60 2,050 46,448 7,207 7,207 200,000 29,465 29,465 200,000
16 61 2,050 50,923 7,253 7,253 200,000 33,128 33,128 200,000
17 62 2,050 55,621 7,161 7,161 200,000 37,101 37,101 200,000
18 63 2,050 60,555 6,886 6,886 200,000 41,385 41,385 200,000
19 64 2,050 65,735 6,404 6,404 200,000 46,007 46,007 200,000
20 65 2,050 71,174 5,669 5,669 200,000 50,980 50,980 200,000
21 66 2,050 76,886 4,655 4,655 200,000 56,343 56,343 200,000
22 67 2,050 82,882 3,357 3,357 200,000 62,162 62,162 200,000
23 68 2,050 89,179 1,770 1,770 200,000 68,510 68,510 200,000
24 69 2,050 95,791 LAPSED LAPSED LAPSED 75,461 75,461 200,000
25 70 2,050 102,733 83,098 83,098 200,000
<CAPTION>
CURRENT CHARGES
------------------------------------
END 12.00% (11.25% NET)
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
1 0 1,528 200,000
2 1,533 3,173 200,000
3 3,335 4,975 200,000
4 5,335 6,975 200,000
5 7,531 9,171 200,000
6 9,970 11,610 200,000
7 12,653 14,293 200,000
8 15,814 17,249 200,000
9 19,256 20,486 200,000
10 23,012 24,037 200,000
11 27,140 27,960 200,000
12 31,662 32,277 200,000
13 36,602 37,012 200,000
14 41,910 42,115 200,000
15 47,637 47,637 200,000
16 54,019 54,019 200,000
17 61,059 61,059 200,000
18 68,824 68,824 200,000
19 77,424 77,424 200,000
20 86,963 86,963 200,000
21 97,563 97,563 200,000
22 109,344 109,344 200,000
23 122,452 122,452 200,000
24 137,063 137,063 200,000
25 153,380 153,380 200,000
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
Age 45 Female Non-Smoker Preferred Prepared On: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,050.00-Premium Mode:
Annual-Riders: None
D-21
<PAGE> 187
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,050 110,022 91,497 91,497 200,000 171,620 171,620 200,000
27 72 2,050 117,675 100,758 100,758 200,000 191,980 191,980 216,938
28 73 2,050 125,712 110,985 110,985 200,000 214,557 214,557 238,158
29 74 2,050 134,150 122,316 122,316 200,000 239,574 239,574 261,136
30 75 2,050 143,010 134,974 134,974 200,000 267,319 267,319 286,031
31 76 2,050 152,213 149,221 149,221 200,000 298,117 298,117 313,023
32 77 2,050 162,081 165,441 165,441 200,000 332,180 332,180 348,789
33 78 2,050 172,337 184,113 184,113 200,000 369,850 369,850 388,342
34 79 2,050 183,107 205,553 205,553 215,830 411,502 411,502 432,077
35 80 2,050 194,414 229,235 229,235 240,697 457,552 457,552 480,430
36 81 2,050 206,288 255,322 255,322 268,088 508,456 508,456 533,879
37 82 2,050 218,755 284,030 284,030 298,231 564,691 564,691 592,926
38 83 2,050 231,845 315,588 315,588 331,367 626,789 626,789 658,128
39 84 2,050 245,590 350,235 350,235 367,747 695,315 695,315 730,081
40 85 2,050 260,022 388,228 388,228 407,639 770,877 770,877 809,421
41 86 2,050 275,175 429,834 429,834 451,325 854,174 854,174 896,883
42 87 2,050 291,086 475,337 475,337 499,104 945,797 945,797 993,087
43 88 2,050 307,793 525,030 525,030 551,281 1,046,531 1,046,531 1,098,858
44 89 2,050 325,335 579,212 579,212 608,173 1,157,253 1,157,253 1,215,116
45 90 2,050 343,755 638,191 638,191 670,100 1,278,901 1,278,901 1,342,846
46 91 2,050 363,095 702,261 702,261 737,374 1,412,505 1,412,505 1,483,131
47 92 2,050 383,402 773,601 773,601 804,545 1,560,807 1,560,807 1,623,240
48 93 2,050 404,725 853,463 853,463 879,067 1,725,938 1,725,938 1,777,716
49 94 2,050 427,113 943,430 943,430 962,299 1,910,652 1,910,652 1,948,865
50 95 2,050 450,622 1,045,591 1,045,591 1,056,046 2,117,990 2,117,990 2,139,170
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
Age 45 Female Non-Smoker Preferred Prepared On: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,050.00-Premium Mode:
Annual-Riders: None
D-22
<PAGE> 188
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 96 2,050 475,305 1,158,087 1,158,087 1,169,668 2,347,429 2,347,429 2,370,904
52 97 2,050 501,223 1,281,484 1,281,484 1,294,299 2,601,306 2,601,306 2,627,319
53 98 2,050 528,437 1,415,585 1,415,585 1,429,741 2,882,200 2,882,200 2,911,022
54 99 2,050 557,011 1,561,497 1,561,497 1,577,112 3,192,965 3,192,965 3,224,895
55 100 2,050 587,014 1,722,240 1,722,240 1,739,462 3,536,749 3,536,749 3,572,116
</TABLE>
This is an illustration, not a policy.
The maximum loan value is 90% of the Cash Value.
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., 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, or Janus Aspen Series that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
Age 45 Female Non-Smoker Preferred Prepared On: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $2,050.00-Premium Mode:
Annual-Riders: None
D-23
<PAGE> 189
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
NET 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 3,800 0 2,606 200,000 0 2,606 200,000 0 2,606 200,000
5 3,800 5,594 8,634 200,000 5,594 8,634 200,000 8,138 11,178 200,000
10 3,800 10,447 12,347 200,000 10,447 12,347 200,000 18,029 19,929 200,000
20 3,800 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 22,009 22,009 200,000
@ Age 70 3,800 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 9,375 9,375 200,000
@ Age 85 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 19 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------------- --------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------------- --------------
Signature of Applicant or Policyowner Date
</TABLE>
Age 45 Male Smoker Standard Prepared On: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $3,800.00-Premium Mode:
Annual-Riders: None
D-24
<PAGE> 190
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,800 3,990 0 2,606 200,000 0 2,606 200,000 0 2,606 200,000
2 47 3,800 8,180 1,270 4,310 200,000 1,270 4,310 200,000 1,943 4,983 200,000
3 48 3,800 12,578 2,853 5,893 200,000 2,853 5,893 200,000 4,119 7,159 200,000
4 49 3,800 17,197 4,293 7,333 200,000 4,293 7,333 200,000 6,168 9,208 200,000
5 50 3,800 22,047 5,594 8,634 200,000 5,594 8,634 200,000 8,138 11,178 200,000
6 51 3,800 27,140 6,735 9,775 200,000 6,735 9,775 200,000 10,031 13,071 200,000
7 52 3,800 32,487 7,695 10,735 200,000 7,695 10,735 200,000 11,871 14,911 200,000
8 53 3,800 38,101 8,856 11,516 200,000 8,856 11,516 200,000 14,017 16,677 200,000
9 54 3,800 43,996 9,773 12,053 200,000 9,773 12,053 200,000 16,069 18,349 200,000
10 55 3,800 50,186 10,447 12,347 200,000 10,447 12,347 200,000 18,029 19,929 200,000
11 56 3,800 56,685 10,878 12,398 200,000 10,878 12,398 200,000 19,835 21,355 200,000
12 57 3,800 63,509 11,020 12,160 200,000 11,020 12,160 200,000 21,428 22,568 200,000
13 58 3,800 70,675 10,870 11,630 200,000 10,870 11,630 200,000 22,747 23,507 200,000
14 59 3,800 78,199 10,403 10,783 200,000 10,403 10,783 200,000 23,733 24,113 200,000
15 60 3,800 86,098 9,589 9,589 200,000 9,589 9,589 200,000 24,368 24,368 200,000
16 61 3,800 94,393 8,307 8,307 200,000 8,307 8,307 200,000 24,579 24,579 200,000
17 62 3,800 103,103 6,573 6,573 200,000 6,573 6,573 200,000 24,459 24,459 200,000
18 63 3,800 112,248 4,302 4,302 200,000 4,302 4,302 200,000 23,984 23,984 200,000
19 64 3,800 121,851 1,449 1,449 200,000 1,449 1,449 200,000 23,170 23,170 200,000
20 65 3,800 131,933 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 22,009 22,009 200,000
21 66 3,800 142,520 20,491 20,491 200,000
22 67 3,800 153,636 18,499 18,499 200,000
23 68 3,800 165,308 15,970 15,970 200,000
24 69 3,800 177,563 12,923 12,923 200,000
25 70 3,800 190,431 9,375 9,375 200,000
26 71 3,800 203,943 5,181 5,181 200,000
27 72 3,800 218,130 394 394 200,000
28 73 0 229,036 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $3,800.00-Premium Mode:
Annual-Riders: None
D-25
<PAGE> 191
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
NET 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 3,800 0 2,606 200,000 0 2,788 200,000 0 2,788 200,000
5 3,800 5,594 8,634 200,000 7,760 10,800 200,000 10,618 13,658 200,000
10 3,800 10,447 12,347 200,000 17,648 19,548 200,000 27,092 28,992 200,000
20 3,800 LAPSED LAPSED LAPSED 21,958 21,958 200,000 59,880 59,880 200,000
@ Age 70 3,800 LAPSED LAPSED LAPSED 202 202 200,000 72,494 72,494 200,000
@ Age 85 3,800 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 44,312 44,312 LAPSED
@ Age 90 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 26 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 19 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
---------------------------------------- -----------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
---------------------------------------- -----------------
Signature of Applicant or Policyowner Date
</TABLE>
Age 45 Male Smoker Standard Prepared On: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $3,800.00-Premium Mode:
Annual-Riders: None
D-26
<PAGE> 192
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,800 3,990 0 2,606 200,000 0 2,788 200,000 0 2,788 200,000
2 47 3,800 8,180 1,270 4,310 200,000 1,773 4,813 200,000 2,466 5,506 200,000
3 48 3,800 12,578 2,853 5,893 200,000 3,794 6,834 200,000 5,139 8,179 200,000
4 49 3,800 17,197 4,293 7,333 200,000 5,789 8,829 200,000 7,839 10,879 200,000
5 50 3,800 22,047 5,594 8,634 200,000 7,760 10,800 200,000 10,618 13,658 200,000
6 51 3,800 27,140 6,735 9,775 200,000 9,687 12,727 200,000 13,481 16,521 200,000
7 52 3,800 32,487 7,695 10,735 200,000 11,545 14,585 200,000 16,458 19,498 200,000
8 53 3,800 38,101 8,856 11,516 200,000 13,716 16,376 200,000 19,914 22,574 200,000
9 54 3,800 43,996 9,773 12,053 200,000 15,752 18,032 200,000 23,456 25,736 200,000
10 55 3,800 50,186 10,447 12,347 200,000 17,648 19,548 200,000 27,092 28,992 200,000
11 56 3,800 56,685 10,878 12,398 200,000 19,400 20,920 200,000 30,769 32,289 200,000
12 57 3,800 63,509 11,020 12,160 200,000 20,958 22,098 200,000 34,433 35,573 200,000
13 58 3,800 70,675 10,870 11,630 200,000 22,314 23,074 200,000 38,033 38,793 200,000
14 59 3,800 78,199 10,403 10,783 200,000 23,435 23,815 200,000 41,517 41,897 200,000
15 60 3,800 86,098 9,589 9,589 200,000 24,284 24,284 200,000 44,871 44,871 200,000
16 61 3,800 94,393 8,307 8,307 200,000 24,743 24,743 200,000 48,036 48,036 200,000
17 62 3,800 103,103 6,573 6,573 200,000 24,827 24,827 200,000 51,118 51,118 200,000
18 63 3,800 112,248 4,302 4,302 200,000 24,444 24,444 200,000 54,106 54,106 200,000
19 64 3,800 121,851 1,449 1,449 200,000 23,533 23,533 200,000 57,025 57,025 200,000
20 65 3,800 131,933 LAPSED LAPSED LAPSED 21,958 21,958 200,000 59,880 59,880 200,000
21 66 3,800 142,520 19,650 19,650 200,000 62,678 62,678 200,000
22 67 3,800 153,636 16,460 16,460 200,000 65,343 65,343 200,000
23 68 3,800 165,308 12,282 12,282 200,000 67,845 67,845 200,000
24 69 3,800 177,563 6,941 6,941 200,000 70,218 70,218 200,000
25 70 3,800 190,431 202 202 200,000 72,494 72,494 200,000
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $3,800.00-Premium Mode:
Annual-Riders: None
D-27
<PAGE> 193
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 3,800 203,943 LAPSED LAPSED LAPSED 74,598 74,598 200,000
27 72 3,800 218,130 76,589 76,589 200,000
28 73 3,800 233,026 78,374 78,374 200,000
29 74 3,800 248,668 79,843 79,843 200,000
30 75 3,800 265,091 80,930 80,930 200,000
31 76 3,800 282,336 81,605 81,605 200,000
32 77 3,800 300,442 81,785 81,785 200,000
33 78 3,800 319,454 81,355 81,355 200,000
34 79 3,800 339,417 80,192 80,192 200,000
35 80 3,800 360,378 78,143 78,143 200,000
36 81 3,800 382,387 75,017 75,017 200,000
37 82 3,800 405,496 70,572 70,572 200,000
38 83 3,800 429,761 64,532 64,532 200,000
39 84 3,800 455,239 56,031 56,031 200,000
40 85 3,800 481,991 44,312 44,312 200,000
41 86 3,800 510,081 28,377 28,377 200,000
42 87 3,800 539,575 6,749 6,749 200,000
43 88 0 566,553 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $3,800.00-Premium Mode:
Annual-Riders: None
D-28
<PAGE> 194
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- --------------------------------- ---------------------------------
NET 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 3,800 0 2,606 200,000 0 2,971 200,000 0 2,971 200,000
5 3,800 5,594 8,634 200,000 10,347 13,387 200,000 13,547 16,587 200,000
10 3,800 10,447 12,347 200,000 28,505 30,405 200,000 40,353 42,253 200,000
20 3,800 LAPSED LAPSED LAPSED 88,705 88,705 200,000 150,732 150,732 200,000
@ Age 70 3,800 LAPSED LAPSED LAPSED 147,518 147,518 200,000 268,528 268,528 311,492
@ Age 85 3,800 LAPSED LAPSED LAPSED 744,890 744,890 782,135 1,309,263 1,309,263 1,374,726
@ Age 90 3,800 LAPSED LAPSED LAPSED 1,206,008 1,206,008 1,266,309 2,137,658 2,137,658 2,244,541
</TABLE>
* Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
---------------------------------------- -----------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
---------------------------------------- -----------------
Signature of Applicant or Policyowner Date
</TABLE>
Age 45 Male Smoker Standard Prepared On: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $3,800,00-Premium Mode:
Annual-Riders: None
D-29
<PAGE> 195
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------ ------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,800 3,990 0 2,606 200,000 0 2,971 200,000 0 2,971 200,000
2 47 3,800 8,180 1,270 4,310 200,000 2,299 5,339 200,000 3,012 6,052 200,000
3 48 3,800 12,578 2,853 5,893 200,000 4,822 7,862 200,000 6,248 9,288 200,000
4 49 3,800 17,197 4,293 7,333 200,000 7,497 10,537 200,000 9,733 12,773 200,000
5 50 3,800 22,047 5,594 8,634 200,000 10,347 13,387 200,000 13,547 16,587 200,000
6 51 3,800 27,140 6,735 9,775 200,000 13,372 16,412 200,000 17,731 20,771 200,000
7 52 3,800 32,487 7,695 10,735 200,000 16,576 19,616 200,000 22,354 25,394 200,000
8 53 3,800 38,101 8,856 11,516 200,000 20,368 23,028 200,000 27,825 30,485 200,000
9 54 3,800 43,996 9,773 12,053 200,000 24,334 26,614 200,000 33,803 36,083 200,000
10 55 3,800 50,186 10,447 12,347 200,000 28,505 30,405 200,000 40,353 42,253 200,000
11 56 3,800 56,685 10,878 12,398 200,000 32,917 34,437 200,000 47,489 49,009 200,000
12 57 3,800 63,509 11,020 12,160 200,000 37,572 38,712 200,000 55,237 56,377 200,000
13 58 3,800 70,675 10,870 11,630 200,000 42,514 43,274 200,000 63,636 64,396 200,000
14 59 3,800 78,199 10,403 10,783 200,000 47,776 48,156 200,000 72,743 73,123 200,000
15 60 3,800 86,098 9,589 9,589 200,000 53,400 53,400 200,000 82,664 82,664 200,000
16 61 3,800 94,393 8,307 8,307 200,000 59,364 59,364 200,000 93,484 93,484 200,000
17 62 3,800 103,103 6,573 6,573 200,000 65,810 65,810 200,000 105,484 105,484 200,000
18 63 3,800 112,248 4,302 4,302 200,000 72,786 72,786 200,000 118,855 118,855 200,000
19 64 3,800 121,851 1,449 1,449 200,000 80,392 80,392 200,000 133,845 133,845 200,000
20 65 3,800 131,933 LAPSED LAPSED LAPSED 88,705 88,705 200,000 150,732 150,732 200,000
21 66 3,800 142,520 97,888 97,888 200,000 169,840 169,840 203,808
22 67 3,800 153,636 108,100 108,100 200,000 191,068 191,068 227,371
23 68 3,800 165,308 119,582 119,582 200,000 214,432 214,432 253,030
24 69 3,800 177,563 132,608 132,608 200,000 240,166 240,166 280,994
25 70 3,800 190,431 147,518 147,518 200,000 268,528 268,528 311,492
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $3,800.00-Premium Mode:
Annual-Riders: None
D-30
<PAGE> 196
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 3,800 203,943 164,746 164,746 200,000 299,775 299,775 344,741
27 72 3,800 218,130 184,754 184,754 208,772 334,380 334,380 377,849
28 73 3,800 233,026 207,108 207,108 229,890 372,730 372,730 413,730
29 74 3,800 248,668 231,895 231,895 252,766 415,275 415,275 452,649
30 75 3,800 265,091 259,465 259,465 277,627 462,563 462,563 494,942
31 76 3,800 282,336 290,238 290,238 304,750 515,249 515,249 541,011
32 77 3,800 300,442 324,087 324,087 340,292 573,378 573,378 602,047
33 78 3,800 319,454 361,302 361,302 379,367 637,483 637,483 669,357
34 79 3,800 339,417 402,198 402,198 422,308 708,148 708,148 743,555
35 80 3,800 360,378 447,109 447,109 469,465 786,011 786,011 825,311
36 81 3,800 382,387 496,388 496,388 521,207 871,765 871,765 915,353
37 82 3,800 405,496 550,408 550,408 577,928 966,165 966,165 1,014,473
38 83 3,800 429,761 609,552 609,552 640,029 1,070,043 1,070,043 1,123,545
39 84 3,800 455,239 674,232 674,232 707,944 1,184,116 1,184,116 1,243,322
40 85 3,800 481,991 744,890 744,890 782,135 1,309,263 1,309,263 1,374,726
41 86 3,800 510,081 822,013 822,013 863,114 1,446,432 1,446,432 1,518,754
42 87 3,800 539,575 906,137 906,137 951,444 1,596,601 1,596,601 1,676,431
43 88 3,800 570,543 997,796 997,796 1,047,686 1,760,960 1,760,960 1,849,008
44 89 3,800 603,061 1,097,546 1,097,546 1,152,424 1,940,859 1,940,859 2,037,902
45 90 3,800 637,204 1,206,008 1,206,008 1,266,309 2,137,658 2,137,658 2,244,541
46 91 3,800 673,054 1,323,817 1,323,817 1,390,008 2,352,554 2,352,554 2,470,182
47 92 3,800 710,696 1,455,863 1,455,863 1,514,097 2,592,622 2,592,622 2,696,327
48 93 3,800 750,221 1,604,537 1,604,537 1,652,673 2,861,804 2,861,804 2,947,658
49 94 3,800 791,722 1,772,775 1,772,775 1,808,231 3,164,915 3,164,915 3,228,213
50 95 3,800 835,299 1,964,452 1,964,452 1,984,096 3,507,372 3,507,372 3,542,446
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $3,800.00-Premium Mode:
Annual-Riders: None
D-31
<PAGE> 197
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 96 3,800 881,053 2,175,578 2,175,578 2,197,334 3,886,215 3,886,215 3,925,077
52 97 3,800 929,096 2,407,201 2,407,201 2,431,273 4,305,282 4,305,282 4,348,335
53 98 3,800 979,541 2,658,962 2,658,962 2,685,552 4,768,818 4,768,818 4,816,506
54 99 3,800 1,032,508 2,933,039 2,933,039 2,962,370 5,281,503 5,281,503 5,334,318
55 100 3,800 1,088,123 3,234,975 3,234,975 3,267,325 5,848,510 5,848,510 5,906,995
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $3,800.00-Premium Mode:
Annual-Riders: None
D-32
<PAGE> 198
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
NET 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,810 201,810 0 1,810 201,810 0 1,810 201,810
5 2,650 4,488 6,608 206,608 4,488 6,608 206,608 6,196 8,316 208,316
10 2,650 9,006 10,331 210,331 9,006 10,331 210,331 14,422 15,747 215,747
20 2,650 4,947 4,947 204,947 4,947 4,947 204,947 22,234 22,234 222,234
@ Age 70 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 17,599 17,599 217,599
@ Age 85 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 21 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- ---------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- ---------------
Signature of Representative Date
</TABLE>
Age 45 Male Non-Smoker Preferred Prepared On: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 2 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-33
<PAGE> 199
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,810 201,810 0 1,810 201,810 0 1,810 201,810
2 47 2,650 5,704 1,006 3,126 203,126 1,006 3,126 203,126 1,410 3,530 203,530
3 48 2,650 8,772 2,235 4,355 204,355 2,235 4,355 204,355 3,039 5,159 205,159
4 49 2,650 11,993 3,404 5,524 205,524 3,404 5,524 205,524 4,626 6,746 206,746
5 50 2,650 15,375 4,488 6,608 206,608 4,488 6,608 206,608 6,196 8,316 208,316
6 51 2,650 18,926 5,466 7,586 207,586 5,466 7,586 207,586 7,749 9,869 209,869
7 52 2,650 22,655 6,337 8,457 208,457 6,337 8,457 208,457 9,285 11,405 211,405
8 53 2,650 26,570 7,369 9,224 209,224 7,369 9,224 209,224 11,045 12,900 212,900
9 54 2,650 30,681 8,250 9,840 209,840 8,250 9,840 209,840 12,766 14,356 214,356
10 55 2,650 34,998 9,006 10,331 210,331 9,006 10,331 210,331 14,422 15,747 215,747
11 56 2,650 39,530 9,590 10,650 210,650 9,590 10,650 210,650 15,992 17,052 217,052
12 57 2,650 44,289 10,004 10,799 210,799 10,004 10,799 210,799 17,453 18,248 218,248
13 58 2,650 49,286 10,250 10,780 210,780 10,250 10,780 210,780 18,782 19,312 219,312
14 59 2,650 54,533 10,282 10,547 210,547 10,282 10,547 210,547 19,933 20,198 220,198
15 60 2,650 60,042 10,103 10,103 210,103 10,103 10,103 210,103 20,860 20,860 220,860
16 61 2,650 65,827 9,689 9,689 209,689 9,689 9,689 209,689 21,588 21,588 221,588
17 62 2,650 71,901 9,017 9,017 209,017 9,017 9,017 209,017 22,094 22,094 222,094
18 63 2,650 78,278 8,021 8,021 208,021 8,021 8,021 208,021 22,356 22,356 222,356
19 64 2,650 84,975 6,679 6,679 206,679 6,679 6,679 206,679 22,402 22,402 222,402
20 65 2,650 92,006 4,947 4,947 204,947 4,947 4,947 204,947 22,234 22,234 222,234
21 66 2,650 99,389 2,783 2,783 202,783 2,783 2,783 202,783 21,853 21,853 221,853
22 67 2,650 107,141 166 166 200,166 166 166 200,166 21,192 21,192 221,192
23 68 2,650 115,280 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 20,252 20,252 220,252
24 69 2,650 123,827 19,062 19,062 219,062
25 70 2,650 132,801 17,599 17,599 217,599
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 2 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-34
<PAGE> 200
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 15,820 15,820 215,820
27 72 2,650 152,117 13,799 13,799 213,799
28 73 2,650 162,505 11,419 11,419 211,419
29 74 2,650 173,413 8,614 8,614 208,614
30 75 2,650 184,866 5,340 5,340 205,340
31 76 2,650 196,892 1,579 1,579 201,579
32 77 0 206,736 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 2 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-35
<PAGE> 201
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
NET 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,810 201,810 0 1,937 201,937 0 1,937 201,937
5 2,650 4,488 6,608 206,608 6,040 8,160 208,160 7,959 10,079 210,079
10 2,650 9,006 10,331 210,331 14,226 15,551 215,551 21,021 22,346 222,346
20 2,650 4,947 4,947 204,947 21,405 21,405 221,405 48,817 48,817 248,817
@ Age 70 2,650 LAPSED LAPSED LAPSED 9,907 9,907 209,907 58,522 58,522 258,522
@ Age 85 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 13,176 13,176 213,176
@ Age 90 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 27 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 22 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
------------------------------------- ---------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
------------------------------------- ---------------
Signature of Representative Date
</TABLE>
Age 45 Male Non-Smoker Preferred Prepared On: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 2 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-36
<PAGE> 202
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,810 201,810 0 1,937 201,937 0 1,937 201,937
2 47 2,650 5,704 1,006 3,126 203,126 1,358 3,478 203,478 1,775 3,895 203,895
3 48 2,650 8,772 2,235 4,355 204,355 2,900 5,020 205,020 3,755 5,875 205,875
4 49 2,650 11,993 3,404 5,524 205,524 4,469 6,589 206,589 5,807 7,927 207,927
5 50 2,650 15,375 4,488 6,608 206,608 6,040 8,160 208,160 7,959 10,079 210,079
6 51 2,650 18,926 5,466 7,586 207,586 7,590 9,710 209,710 10,216 12,336 212,336
7 52 2,650 22,655 6,337 8,457 208,457 9,118 11,238 211,238 12,584 14,704 214,704
8 53 2,650 26,570 7,369 9,224 209,224 10,888 12,743 212,743 15,307 17,162 217,162
9 54 2,650 30,681 8,250 9,840 209,840 12,583 14,173 214,173 18,126 19,716 219,716
10 55 2,650 34,998 9,006 10,331 210,331 14,226 15,551 215,551 21,021 22,346 222,346
11 56 2,650 39,530 9,590 10,650 210,650 15,764 16,824 216,824 23,971 25,031 225,031
12 57 2,650 44,289 10,004 10,799 210,799 17,193 17,988 217,988 26,954 27,749 227,749
13 58 2,650 49,286 10,250 10,780 210,780 18,507 19,037 219,037 29,946 30,476 230,476
14 59 2,650 54,533 10,282 10,547 210,547 19,652 19,917 219,917 32,901 33,166 233,166
15 60 2,650 60,042 10,103 10,103 210,103 20,618 20,618 220,618 35,765 35,765 235,765
16 61 2,650 65,827 9,689 9,689 209,689 21,380 21,380 221,380 38,567 38,567 238,567
17 62 2,650 71,901 9,017 9,017 209,017 21,909 21,909 221,909 41,285 41,285 241,285
18 63 2,650 78,278 8,021 8,021 208,021 22,121 22,121 222,121 43,891 43,891 243,891
19 64 2,650 84,975 6,679 6,679 206,679 21,975 21,975 221,975 46,403 46,403 246,403
20 65 2,650 92,006 4,947 4,947 204,947 21,405 21,405 221,405 48,817 48,817 248,817
21 66 2,650 99,389 2,783 2,783 202,783 20,340 20,340 220,340 51,129 51,129 251,129
22 67 2,650 107,141 166 166 200,166 18,734 18,734 218,734 53,259 53,259 253,259
23 68 2,650 115,280 LAPSED LAPSED LAPSED 16,508 16,508 216,508 55,199 55,199 255,199
24 69 2,650 123,827 13,610 13,610 213,610 56,965 56,965 256,965
25 70 2,650 132,801 9,907 9,907 209,907 58,522 58,522 258,522
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 2 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-37
<PAGE> 203
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 5,288 5,288 205,288 59,813 59,813 259,813
27 72 2,650 152,117 LAPSED LAPSED LAPSED 60,897 60,897 260,897
28 73 2,650 162,505 61,642 61,642 261,642
29 74 2,650 173,413 61,957 61,957 261,957
30 75 2,650 184,866 61,773 61,773 261,773
31 76 2,650 196,892 61,041 61,041 261,041
32 77 2,650 209,519 59,685 59,685 259,685
33 78 2,650 222,777 57,600 57,600 257,600
34 79 2,650 236,699 54,703 54,703 254,703
35 80 2,650 251,316 50,903 50,903 250,903
36 81 2,650 266,665 46,084 46,084 246,084
37 82 2,650 282,780 40,121 40,121 240,121
38 83 2,650 299,702 32,934 32,934 232,934
39 84 2,650 317,469 24,046 24,046 224,046
40 85 2,650 336,125 13,176 13,176 213,176
41 86 2,650 355,714 128 128 200,128
42 87 0 373,500 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 2 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-38
<PAGE> 204
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- ---------------------------
NET 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 2,650 0 1,810 201,810 0 2,064 202,064 0 2,064 202,064
5 2,650 4,488 6,608 206,608 7,884 10,004 210,004 10,034 12,154 212,154
10 2,650 9,006 10,331 210,331 21,959 23,284 223,284 30,558 31,883 231,883
20 2,650 4,947 4,947 204,947 63,084 63,084 263,084 109,248 109,248 309,248
@ Age 70 2,650 LAPSED LAPSED LAPSED 86,443 86,443 286,443 179,606 179,606 379,606
@ Age 85 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 695,617 695,617 895,617
@ Age 90 2,650 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 1,056,243 1,056,243 1,256,243
</TABLE>
* Policy lapses in policy year 23 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 40 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
---------------------------------------- -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
---------------------------------------- -------------------------
Signature of Representative Date
</TABLE>
Age 45 Male Non-Smoker Preferred Prepared On: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 2 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-39
<PAGE> 205
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,650 2,783 0 1,810 201,810 0 2,064 202,064 0 2,064 202,064
2 47 2,650 5,704 1,066 3,126 203,126 1,726 3,846 203,846 2,156 4,276 204,276
3 48 2,650 8,772 2,235 4,355 204,355 3,625 5,745 205,745 4,532 6,652 206,652
4 49 2,650 11,993 3,404 5,524 205,524 5,681 7,801 207,801 7,141 9,261 209,261
5 50 2,650 15,375 4,488 6,608 206,608 7,884 10,004 210,004 10,034 12,154 212,154
6 51 2,650 18,926 5,466 7,586 207,586 10,225 12,345 212,345 13,241 15,361 215,361
7 52 2,650 22,655 6,337 8,457 208,457 12,719 14,839 214,839 16,796 18,916 218,916
8 53 2,650 26,570 7,369 9,224 209,224 15,648 17,503 217,503 20,977 22,832 222,832
9 54 2,650 30,681 8,250 9,840 209,840 18,715 20,305 220,305 25,559 27,149 227,149
10 55 2,650 34,998 9,006 10,331 210,331 21,959 23,284 223,284 30,558 31,883 231,883
11 56 2,650 39,530 9,590 10,650 210,650 25,351 26,411 226.411 35,996 37,056 237,056
12 57 2,650 44,289 10,004 10,799 210,799 28,905 29,700 229,700 41,895 42,690 242,690
13 58 2,650 49,286 10,250 10,780 210,780 32,639 33,169 233,169 48,279 48,809 248,809
14 59 2,650 54,533 10,282 10,547 210,547 36,523 36,788 236,788 55,151 55,416 255,416
15 60 2,650 60,042 10,103 10,103 210,103 40,573 40,573 240,573 62,514 62,514 262,514
16 61 2,650 65,827 9,689 9,689 209,689 44,795 44,795 244,795 70,460 70,460 270,460
17 62 2,650 71,901 9,017 9,017 209,017 49,199 49,199 249,199 79,041 79,041 279,041
18 63 2,650 78,278 8,021 8,021 208,021 53,727 53,727 253,727 88,303 88,303 288,303
19 64 2,650 84,975 6,679 6,679 206,679 58,368 58,368 258,368 98,344 98,344 298,344
20 65 2,650 92,006 4,947 4,947 204,947 63,084 63,084 263,084 109,248 109,248 309,248
21 66 2,650 99,389 2,783 2,783 202,783 67,832 67,832 267,832 121,110 121,110 321,110
22 67 2,650 107,141 166 166 200,166 72,591 72,591 272,591 133,958 133,958 333,958
23 68 2,650 115,280 LAPSED LAPSED LAPSED 77,312 77,312 277,312 147,900 147,900 347,900
24 69 2,650 123,827 81,966 81,966 281,966 163,079 163,079 363,079
25 70 2,650 132,801 86,443 86,443 286,443 179,606 179,606 379,606
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 2 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-40
<PAGE> 206
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES
----------------------------------------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 71 2,650 142,223 90,649 90,649 290,649
27 72 2,650 152,117 94,455 94,455 294,455
28 73 2,650 162,505 97,664 97,664 297,664
29 74 2,650 173,413 100,086 100,086 300,086
30 75 2,650 184,866 101,509 101,509 301,509
31 76 2,650 196,892 101,723 101,723 301,723
32 77 2,650 209,519 100,496 100,496 300,496
33 78 2,650 222,777 97,621 97,621 297,621
34 79 2,650 236,699 92,815 92,815 292,815
35 80 2,650 251,316 85,718 85,718 285,718
36 81 2,650 266,665 75,903 75,903 275,903
37 82 2,650 282,780 62,793 62,793 262,793
38 83 2,650 299,702 45,726 45,726 245,726
39 84 2,650 317,469 23,939 23,939 223,939
40 85 2,650 336,125 LAPSED LAPSED LAPSED
41 86 2,650 355,714
42 87 2,650 376,282
43 88 2,650 397,879
44 89 2,650 420,555
45 90 2,650 444,366
46 91 2,650 469,366
47 92 2,650 495,617
48 93 2,650 523,181
49 94 2,650 552,122
50 95 2,650 582,511
<CAPTION>
CURRENT CHARGES
---------------------------------
END 12.00% (11.25% NET)
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
26 197,575 197,575 397,575
27 217,221 217,221 417,221
28 238,599 238,599 438,599
29 261,823 261,823 461,823
30 287,043 287,043 487,043
31 314,451 314,451 514,451
32 344,236 344,236 544,236
33 376,582 376,582 576,582
34 411,718 411,718 611,718
35 449,898 449,898 649,898
36 491,378 491,378 691,378
37 536,445 536,445 736,445
38 585,464 585,464 785,464
39 638,444 638,444 838,444
40 695,617 695,617 895,617
41 757,344 757,344 957,344
42 823,925 823,925 1,023,925
43 895,545 895,545 1,095,545
44 972,834 972,834 1,172,834
45 1,056,243 1,056,243 1,256,243
46 1,145,950 1,145,950 1,345,950
47 1,242,802 1,242,802 1,442,802
48 1,347,439 1,347,439 1,547,439
49 1,460,970 1,460,970 1,660,970
50 1,584,255 1,584,255 1,784,255
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 2 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-41
<PAGE> 207
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 96 2,650 614,419
52 97 2,650 647,922
53 98 2,650 683,101
54 99 2,650 720,038
55 100 2,650 758,823
<CAPTION>
CURRENT CHARGES
---------------------------------
END 12.00% (11.25% NET)
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
51 1,718,864 1,718,864 1,918,864
52 1,866,170 1,866,170 2,066,170
53 2,026,596 2,026,596 2,226,596
54 2,201,209 2,201,209 2,401,209
55 2,389,962 2,389,962 2,589,962
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 2 Form # B2-98
Initial Modal Premium: $2,650.00-Premium Mode:
Annual-Riders: None
D-42
<PAGE> 208
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
NET 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,450 0 907 200,000 0 907 200,000 0 907 200,000
5 1,450 2,407 3,567 200,000 2,407 3,567 200,000 3,030 4,190 200,000
10 1,450 5,271 5,996 200,000 5,271 5,996 200,000 7,025 7,750 200,000
20 1,450 7,114 7,114 200,000 7,114 7,114 200,000 13,405 13,405 200,000
@ Age 70 1,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 2,334 2,334 200,000
@ Age 85 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 27 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand that any
ACKNOWLEDGEMENT not-guaranteed elements are subject to change and could be either
higher or lower. The agent has told me that they are not guaranteed.
---------------------------------------- -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the applicant
ACKNOWLEDGEMENT 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: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $1,450.00-Premium Mode:
Annual-Riders: None
D-43
<PAGE> 209
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,450 1,523 0 907 200,000 0 907 200,000 0 907 200,000
2 37 1,450 3,121 456 1,616 200,000 456 1,616 200,000 645 1,805 200,000
3 38 1,450 4,800 1,136 2,296 200,000 1,136 2,296 200,000 1,487 2,647 200,000
4 39 1,450 6,562 1,786 2,946 200,000 1,786 2,946 200,000 2,274 3,434 200,000
5 40 1,450 8,413 2,407 3,567 200,000 2,407 3,567 200,000 3,030 4,190 200,000
6 41 1,450 10,356 2,975 4,135 200,000 2,975 4,135 200,000 3,755 4,915 200,000
7 42 1,450 12,396 3,516 4,676 200,000 3,516 4,676 200,000 4,474 5,634 200,000
8 43 1,450 14,539 4,151 5,166 200,000 4,151 5,166 200,000 5,331 6,346 200,000
9 44 1,450 16,788 4,736 5,606 200,000 4,736 5,606 200,000 6,181 7,051 200,000
10 45 1,450 19,150 5,271 5,996 200,000 5,271 5,996 200,000 7,025 7,750 200,000
11 46 1,450 21,630 5,757 6,337 200,000 5,757 6,337 200,000 7,862 8,442 200,000
12 47 1,450 24,234 6,195 6,630 200,000 6,195 6,630 200,000 8,693 9,128 200,000
13 48 1,450 26,968 6,562 6,852 200,000 6,562 6,852 200,000 9,472 9,762 200,000
14 49 1,450 29,839 6,881 7,026 200,000 6,881 7,026 200,000 10,177 10,322 200,000
15 50 1,450 32,853 7,131 7,131 200,000 7,131 7,131 200,000 10,810 10,810 200,000
16 51 1,450 36,019 7,334 7,334 200,000 7,334 7,334 200,000 11,441 11,441 200,000
17 52 1,450 39,342 7,446 7,446 200,000 7,446 7,446 200,000 12,022 12,022 200,000
18 53 1,450 42,832 7,465 7,465 200,000 7,465 7,465 200,000 12,531 12,531 200,000
19 54 1,450 46,496 7,347 7,347 200,000 7,347 7,347 200,000 12,992 12,992 200,000
20 55 1,450 50,343 7,114 7,114 200,000 7,114 7,114 200,000 13,405 13,405 200,000
21 56 1,450 54,383 6,723 6,723 200,000 6,723 6,723 200,000 13,771 13,771 200,000
22 57 1,450 58,624 6,171 6,171 200,000 6,171 6,171 200,000 14,046 14,046 200,000
23 58 1,450 63,078 5,459 5,459 200,000 5,459 5,459 200,000 14,232 14,232 200,000
24 59 1,450 67,754 4,538 4,538 200,000 4,538 4,538 200,000 14,284 14,284 200,000
25 60 1,450 72,665 3,408 3,408 200,000 3,408 3,408 200,000 14,181 14,181 200,000
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $1,450.00-Premium Mode:
Annual-Riders: None
D-44
<PAGE> 210
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 61 1,450 77,820 2,019 2,019 200,000 2,019 2,019 200,000 13,925 13,925 200,000
27 62 1,450 83,234 365 365 200,000 365 365 200,000 13,514 13,514 200,000
28 63 1,450 88,918 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 12,927 12,927 200,000
29 64 1,450 94,886 12,141 12,141 200,000
30 65 1,450 101,153 11,154 11,154 200,000
31 66 1,450 107,733 9,940 9,940 200,000
32 67 1,450 114,642 8,453 8,453 200,000
33 68 1,450 121,897 6,686 6,686 200,000
34 69 1,450 129,514 4,656 4,656 200,000
35 70 1,450 137,513 2,334 2,334 200,000
36 71 0 144,388 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $1,450.00-Premium Mode:
Annual-Riders: None
D-45
<PAGE> 211
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
NET 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,450 0 907 200,000 0 974 200,000 0 974 200,000
5 1,450 2,407 3,567 200,000 3,235 4,395 200,000 3,943 5,103 200,000
10 1,450 5,271 5,996 200,000 8,161 8,886 200,000 10,376 11,101 200,000
20 1,450 7,114 7,114 200,000 17,899 17,899 200,000 27,517 27,517 200,000
@ Age 70 1,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 54,003 54,003 200,000
@ Age 85 1,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 17,980 17,980 200,000
@ Age 90 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 35 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy lapses in policy year 27 based on current charges and a gross
investment return of 6.00%.
<TABLE>
<S> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand
ACKNOWLEDGEMENT that any not-guaranteed elements are subject to change and
could be either higher or lower. The agent has told me that
they are not guaranteed.
---------------------------------------- -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the
ACKNOWLEDGEMENT applicant and that I have explained that any not-guaranteed
elements illustrated are subject to change. I have made no
statements that are inconsistent with the illustration.
---------------------------------------- -------------------------
Signature of Representative Date
</TABLE>
Age 35 Male Non-Smoker Preferred Prepared On: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $1,450.00-Premium Mode:
Annual-Riders: None
D-46
<PAGE> 212
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,450 1,523 0 907 200,000 0 974 200,000 0 974 200,000
2 37 1,450 3,121 456 1,616 200,000 641 1,801 200,000 835 1,995 200,000
3 38 1,450 4,800 1,136 2,296 200,000 1,487 2,647 200,000 1,860 3,020 200,000
4 39 1,450 6,562 1,786 2,946 200,000 2,351 3,511 200,000 2,887 4,047 200,000
5 40 1,450 8,413 2,407 3,567 200,000 3,235 4,395 200,000 3,943 5,103 200,000
6 41 1,450 10,356 2,975 4,135 200,000 4,117 5,277 200,000 5,027 6,187 200,000
7 42 1,450 12,396 3,516 4,676 200,000 5,020 6,180 200,000 6,166 7,326 200,000
8 43 1,450 14,539 4,151 5,166 200,000 6,067 7,082 200,000 7,508 8,523 200,000
9 44 1,450 16,788 4,736 5,606 200,000 7,114 7,984 200,000 8,910 9,780 200,000
10 45 1,450 19,150 5,271 5,996 200,000 8,161 8,886 200,000 10,376 11,101 200,000
11 46 1,450 21,630 5,757 6,337 200,000 9,208 9,788 200,000 11,908 12,488 200,000
12 47 1,450 24,234 6,195 6,630 200,000 10,257 10,692 200,000 13,510 13,945 200,000
13 48 1,450 26,968 6,562 6,852 200,000 11,283 11,573 200,000 15,141 15,431 200,000
14 49 1,450 29,839 6,881 7,026 200,000 12,310 12,455 200,000 16,779 16,924 200,000
15 50 1,450 32,853 7,131 7,131 200,000 13,316 13,316 200,000 18,427 18,427 200,000
16 51 1,450 36,019 7,334 7,334 200,000 14,329 14,329 200,000 20,160 20,160 200,000
17 52 1,450 39,342 7,446 7,446 200,000 15,306 15,306 200,000 21,939 21,939 200,000
18 53 1,450 42,832 7,465 7,465 200,000 16,247 16,247 200,000 23,745 23,745 200,000
19 54 1,450 46,496 7,347 7,347 200,000 17,105 17,105 200,000 25,603 25,603 200,000
20 55 1,450 50,343 7,114 7,114 200,000 17,899 17,899 200,000 27,517 27,517 200,000
21 56 1,450 54,383 6,723 6,723 200,000 18,582 18,582 200,000 29,489 29,489 200,000
22 57 1,450 58,624 6,171 6,171 200,000 19,148 19,148 200,000 31,483 31,483 200,000
23 58 1,450 63,078 5,459 5,459 200,000 19,593 19,593 200,000 33,502 33,502 200,000
24 59 1,450 67,754 4,538 4,538 200,000 19,865 19,865 200,000 35,509 35,509 200,000
25 60 1,450 72,665 3,408 3,408 200,000 19,954 19,954 200,000 37,486 37,486 200,000
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium:
$1,450.00-Premium Mode: Annual-Riders: None
D-47
<PAGE> 213
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 61 1,450 77,820 2,019 2,019 200,000 19,806 19,806 200,000 39,435 39,435 200,000
27 62 1,450 83,234 365 365 200,000 19,404 19,404 200,000 41,357 41,357 200,000
28 63 1,450 88,918 LAPSED LAPSED LAPSED 18,665 18,665 200,000 43,235 43,235 200,000
29 64 1,450 94,886 17,542 17,542 200,000 45,051 45,051 200,000
30 65 1,450 101,153 15,958 15,958 200,000 46,806 46,806 200,000
31 66 1,450 107,733 13,829 13,829 200,000 48,480 48,480 200,000
32 67 1,750 114,642 11,083 11,083 200,000 50,036 50,036 200,000
33 68 1,450 121,897 7,612 7,612 200,000 51,472 51,472 200,000
34 69 1,450 129,514 3,317 3,317 200,000 52,801 52,801 200,000
35 70 1,450 137,513 LAPSED LAPSED LAPSED 54,003 54,003 200,000
36 71 1,450 145,911 55,036 55,036 200,000
37 72 1,450 154,729 55,945 55,945 200,000
38 73 1,450 163,988 56,636 56,636 200,000
39 74 1,450 173,710 57,043 57,043 200,000
40 75 1,450 183,918 57,110 57,110 200,000
41 76 1,450 194,636 56,794 56,794 200,000
42 77 1,450 205,890 56,027 56,027 200,000
43 78 1,450 217,707 54,712 54,712 200,000
44 79 1,450 230,115 52,755 52,755 200,000
45 80 1,450 243,143 50,047 50,047 200,000
46 81 1,450 256,823 46,438 46,438 200,000
47 82 1,450 271,187 41,749 41,749 200,000
48 83 1,450 286,269 35,803 35,803 200,000
49 84 1,450 302,105 28,046 28,046 200,000
50 85 1,450 318,732 17,980 17,980 200,000
51 86 1,450 336,191 5,059 5,059 200,000
52 87 0 353,001 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $1,450.00-Premium Mode:
Annual-Riders: None
D-48
<PAGE> 214
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- --------------------------------- ---------------------------------
NET 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1,450 0 907 200,000 0 1,040 200,000 0 1,040 200,000
5 1,450 2,407 3,567 200,000 4,218 5,378 200,000 5,020 6,180 200,000
10 1,450 5,271 5,996 200,000 12,421 13,146 200,000 15,246 15,971 200,000
20 1,450 7,114 7,114 200,000 43,765 43,765 200,000 59,350 59,350 200,000
@ Age 70 1,450 LAPSED LAPSED LAPSED 200,642 200,642 232,745 305,552 305,552 354,440
@ Age 85 1,450 LAPSED LAPSED LAPSED 923,363 923,363 969,531 1,433,929 1,433,929 1,505,625
@ Age 90 1,450 LAPSED LAPSED LAPSED 1,483,406 1,483,406 1,557,576 2,355,546 2,355,546 2,473,323
</TABLE>
* Policy lapses in policy year 28 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy continues to age 100 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand that any
ACKNOWLEDGEMENT not-guaranteed elements are subject to change and could be either
higher or lower. The agent has told me that they are not guaranteed.
---------------------------------------- -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the applicant
ACKNOWLEDGEMENT 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $1,450.00-Premium Mode:
Annual-Riders: None
D-49
<PAGE> 215
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------- ----------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,450 1,523 0 907 200,000 0 1,040 200,000 0 1,040 200,000
2 37 1,450 3,121 456 1,616 200,000 834 1,994 200,000 1,035 2,195 200,000
3 38 1,450 4,800 1,136 2,296 200,000 1,869 3,029 200,000 2,266 3,426 200,000
4 39 1,450 6,562 1,786 2,946 200,000 2,994 4,154 200,000 3,582 4,742 200,000
5 40 1,450 8,413 2,407 3,567 200,000 4,218 5,378 200,000 5,020 6,180 200,000
6 41 1,450 10,356 2,975 4,135 200,000 5,530 6,690 200,000 6,591 7,751 200,000
7 42 1,450 12,396 3,516 4,676 200,000 6,963 8,123 200,000 8,335 9,495 200,000
8 43 1,450 14,539 4,151 5,166 200,000 8,652 9,667 200,000 10,417 11,432 200,000
9 44 1,450 16,788 4,736 5,606 200,000 10,467 11,337 200,000 12,713 13,583 200,000
10 45 1,450 19,150 5,271 5,996 200,000 12,421 13,146 200,000 15,246 15,971 200,000
11 46 1,450 21,630 5,757 6,337 200,000 14,530 15,110 200,000 18,043 18,623 200,000
12 47 1,450 24,234 6,195 6,630 200,000 16,815 17,250 200,000 21,132 21,567 200,000
13 48 1,450 26,968 6,562 6,852 200,000 19,272 19,562 200,000 24,502 24,792 200,000
14 49 1,450 29,839 6,881 7,026 200,000 21,945 22,090 200,000 28,163 28,308 200,000
15 50 1,450 32,853 7,131 7,131 200,000 24,838 24,838 200,000 32,149 32,149 200,000
16 51 1,450 36,019 7,334 7,334 200,000 28,015 28,015 200,000 36,581 36,581 200,000
17 52 1,450 39,342 7,446 7,446 200,000 31,469 31,469 200,000 41,466 41,466 200,000
18 53 1,450 42,832 7,465 7,465 200,000 35,235 35,235 200,000 46,840 46,840 200,000
19 54 1,450 46,496 7,347 7,347 200,000 39,313 39,313 200,000 52,779 52,779 200,000
20 55 1,450 50,343 7,114 7,114 200,000 43,765 43,765 200,000 59,350 59,350 200,000
21 56 1,450 54,383 6,723 6,723 200,000 48,601 48,601 200,000 66,629 66,629 200,000
22 57 1,450 58,624 6,171 6,171 200,000 53,875 53,875 200,000 74,666 74,666 200,000
23 58 1,450 63,078 5,459 5,459 200,000 59,649 59,649 200,000 83,556 83,556 200,000
24 59 1,450 67,754 4,538 4,538 200,000 65,958 65,958 200,000 93,377 93,377 200,000
25 60 1,450 72,665 3,408 3,408 200,000 72,881 72,881 200,000 104,238 104,238 200,000
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $1,450.00-Premium Mode:
Annual-Riders: None
D-50
<PAGE> 216
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 61 1,450 77,820 2,019 2,019 200,000 80,477 80,477 200,000 116,278 116,278 200,000
27 62 1,450 83,234 365 365 200,000 88,852 88,852 200,000 129,659 129,659 200,000
28 63 1,450 88,918 LAPSED LAPSED LAPSED 98,085 98,085 200,000 144,552 144,552 200,000
29 64 1,450 94,886 108,307 108,307 200,000 161,162 161,162 200,000
30 65 1,450 101,153 119,662 119,662 200,000 179,642 179,642 219,164
31 66 1,450 107,733 132,329 132,329 200,000 200,080 200,080 240,096
32 67 1,450 114,642 146,538 146,538 200,000 222,649 222,649 264,953
33 68 1,450 121,897 162,562 162,562 200,000 247,577 247,577 292,141
34 69 1,450 129,514 180,655 180,655 211,366 275,120 275,120 321,890
35 70 1,450 137,513 200,642 200,642 232,745 305,552 305,552 354,440
36 71 1,450 145,911 222,643 222,643 256,040 339,172 339,172 390,047
37 72 1,450 154,729 246,958 246,958 279,063 376,422 376,422 425,357
38 73 1,450 163,988 273,860 273,860 303,985 417,700 417,700 463,647
39 74 1,450 173,710 303,677 303,677 331,007 463,472 463,472 505,185
40 75 1,450 183,918 336,797 336,797 360,373 514,280 514,280 550,280
41 76 1,450 194,636 373,693 373,693 392,378 570,751 570,751 599,288
42 77 1,450 205,890 414,342 414,342 435,059 633,182 633,182 664,842
43 78 1,450 217,707 459,106 459,106 482,061 702,183 702,183 737,292
44 79 1,450 230,115 508,373 508,373 533,792 778,424 778,424 817,345
45 80 1,450 243,143 562,557 562,557 590,685 862,640 862,640 905,772
46 81 1,450 256,823 622,100 622,100 653,205 955,635 955,635 1,003,417
47 82 1,450 271,187 687,461 687,461 721,834 1,058,285 1,058,285 1,111,199
48 83 1,450 286,269 759,120 759,120 797,075 1,171,562 1,171,562 1,230,140
49 84 1,450 302,105 837,576 837,576 879,455 1,296,418 1,296,418 1,361,239
50 85 1,450 318,732 923,365 923,365 969,533 1,433,929 1,433,929 1,505,625
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $1,450.00-Premium Mode:
Annual-Riders: None
D-51
<PAGE> 217
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
51 86 1,450 336,191 1,017,051 1,017,051 1,067,903
52 87 1,450 354,524 1,119,239 1,119,239 1,175,201
53 88 1,450 373,772 1,230,577 1,230,577 1,292,106
54 89 1,450 393,983 1,351,734 1,351,734 1,419,321
55 90 1,450 415,205 1,483,406 1,483,406 1,557,576
56 91 1,450 437,488 1,626,279 1,626,279 1,707,593
57 92 1,450 460,885 1,786,013 1,786,013 1,857,454
58 93 1,450 485,451 1,965,574 1,965,574 2,024,541
59 94 1,450 511,246 2,168,612 2,168,612 2,211,984
60 95 1,450 538,331 2,399,871 2,399,871 2,423,870
61 96 1,450 566,770 2,654,552 2,654,552 2,681,097
62 97 1,450 596,631 2,933,936 2,933,936 2,963,275
63 98 1,450 627,985 3,237,563 3,237,563 3,269,938
64 99 1,450 660,907 3,568,065 3,568,065 3,603,745
65 100 1,450 695,475 3,932,162 3,932,162 3,971,483
<CAPTION>
CURRENT CHARGES
---------------------------------
END 12.00% (11.25% NET)
OF CASH FUND DEATH
YEAR VALUE VALUE PROCEEDS
<S> <C> <C> <C>
51 1,585,286 1,585,286 1,664,551
52 1,751,743 1,751,743 1,839,330
53 1,934,576 1,934,576 2,031,304
54 2,135,325 2,135,325 2,242,092
55 2,355,546 2,355,546 2,473,323
56 2,596,706 2,596,706 2,726,541
57 2,864,903 2,864,903 2,979,499
58 3,164,156 3,164,156 3,259,081
59 3,499,403 3,499,403 3,569,391
60 3,876,370 3,876,370 3,915,133
61 4,293,505 4,293,505 4,336,440
62 4,755,078 4,755,078 4,802,628
63 5,265,629 5,265,629 5,318,285
64 5,830,233 5,830,233 5,888,535
65 6,454,219 6,454,219 6,518,761
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $1,450.00-Premium Mode:
Annual-Riders: None
D-52
<PAGE> 218
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- --------------------------
NET 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4,450 0 3,082 200,000 0 3,082 200,000 0 3,082 200,000
5 4,450 5,750 9,310 200,000 5,750 9,310 200,000 10,867 14,427 200,000
10 4,450 9,214 11,439 200,000 9,214 11,439 200,000 24,879 27,104 200,000
20 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 34,588 34,588 200,000
@ Age 70 4,450 2,898 2,898 200,000 2,898 2,898 200,000 34,647 34,647 200,000
@ Age 85 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
@ Age 90 0 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED
</TABLE>
* Policy lapses in policy year 16 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 16 based on guaranteed charges and a gross
investment return of 0.00%.
*** Policy lapses in policy year 15 based on current charges and a gross
investment return of 0.00%.
<TABLE>
<S> <C> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand that any
ACKNOWLEDGEMENT not-guaranteed elements are subject to change and could be either
higher or lower. The agent has told me that they are not guaranteed.
---------------------------------------- -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the applicant
ACKNOWLEDGEMENT 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: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $4,450.00-Premium Mode:
Annual-Riders: None
D-53
<PAGE> 219
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 4,450 4,673 0 3,082 200,000 0 3,082 200,000 0 3,082 200,000
2 57 4,450 9,579 1,356 4,916 200,000 1,356 4,916 200,000 2,464 6,024 200,000
3 58 4,450 14,730 3,026 6,586 200,000 3,026 6,586 200,000 5,315 8,875 200,000
4 59 4,450 20,139 4,490 8,050 200,000 4,490 8,050 200,000 8,100 11,660 200,000
5 60 4,450 25,819 5,750 9,310 200,000 5,750 9,310 200,000 10,867 14,427 200,000
6 61 4,450 31,782 6,765 10,325 200,000 6,765 10,325 200,000 13,613 17,173 200,000
7 62 4,450 38,044 7,536 11,096 200,000 7,536 11,096 200,000 16,298 19,858 200,000
8 63 4,450 44,618 8,443 11,558 200,000 8,443 11,558 200,000 19,304 22,419 200,000
9 64 4,450 51,522 9,018 11,688 200,000 9,018 11,688 200,000 22,170 24,840 200,000
10 65 4,450 58,770 9,214 11,439 200,000 9,214 11,439 200,000 24,879 27,104 200,000
11 66 4,450 66,381 8,983 10,763 200,000 8,983 10,763 200,000 27,355 29,135 200,000
12 67 4,450 74,373 8,294 9,629 200,000 8,294 9,629 200,000 29,584 30,919 200,000
13 68 4,450 82,764 7,090 7,980 200,000 7,090 7,980 200,000 31,592 32,482 200,000
14 69 4,450 91,575 5,330 5,775 200,000 5,330 5,775 200,000 33,305 33,750 200,000
15 70 4,450 100,826 2,898 2,898 200,000 2,898 2,898 200,000 34,647 34,647 200,000
16 71 4,450 110,540 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 35,504 35,504 200,000
17 72 4,450 120,739 35,920 35,920 200,000
18 73 4,450 131,449 35,913 35,913 200,000
19 74 4,450 142,693 35,479 35,479 200,000
20 75 4,450 154,501 34,588 34,588 200,000
21 76 4,450 166,898 33,249 33,249 200,000
22 77 4,450 179,916 31,406 31,406 200,000
23 78 4,450 193,584 28,975 28,975 200,000
24 79 4,450 207,936 25,886 25,886 200,000
25 80 4,450 223,005 22,054 22,054 200,000
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $4,450.00-Premium Mode:
Annual-Riders: None
D-54
<PAGE> 220
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ --------------------------------
END PREMIUM 0.00% (-.75% NET) 0.00% (-.75% NET) 0.00% (-.75% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 81 4,450 238,828 17,361 17,361 200,000
27 82 4,450 255,441 11,670 11,670 200,000
28 83 4,450 272,886 4,864 4,864 200,000
29 84 0 286,530 LAPSED LAPSED LAPSED
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/08/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $4,450.00-Premium Mode:
Annual-Riders: None
D-55
<PAGE> 221
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- ----------------------------
NET 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4,450 0 3,082 200,000 0 3,296 200,000 0 3,296 200,000
5 4,450 5,750 9,310 200,000 8,213 11,773 200,000 13,907 17,467 200,000
10 4,450 9,214 11,439 200,000 17,081 19,306 200,000 36,480 38,705 200,000
20 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 86,014 86,014 200,000
@ Age 70 4,450 2,898 2,898 200,000 18,086 18,086 200,000 61,547 61,547 200,000
@ Age 85 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 143,070 143,070 200,000
@ Age 90 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 186,290 186,290 200,000
</TABLE>
* Policy lapses in policy year 16 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 20 based on guaranteed charges and a gross
investment return of 6.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 6.00%.
<TABLE>
<S> <C> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand that any
ACKNOWLEDGEMENT not-guaranteed elements are subject to change and could be either
higher or lower. The agent has told me that they are not guaranteed.
---------------------------------------- -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the applicant
ACKNOWLEDGEMENT 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: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $4,450.00-Premium Mode:
Annual-Riders: None
D-56
<PAGE> 222
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ ------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 4,450 4,673 0 3,082 200,000 0 3,296 200,000 0 3,296 200,000
2 57 4,450 9,579 1,356 4,916 200,000 1,943 5,503 200,000 3,084 6,644 200,000
3 58 4,450 14,730 3,026 6,586 200,000 4,114 7,674 200,000 6,538 10,098 200,000
4 59 4,450 20,139 4,490 8,050 200,000 6,204 9,764 200,000 10,127 13,687 200,000
5 60 4,450 25,819 5,750 9,310 200,000 8,213 11,773 200,000 13,907 17,467 200,000
6 61 4,450 31,782 6,765 10,325 200,000 10,095 13,655 200,000 17,888 21,448 200,000
7 62 4,450 38,044 7,536 11,096 200,000 11,846 15,406 200,000 22,036 25,596 200,000
8 63 4,450 44,618 8,443 11,558 200,000 13,841 16,956 200,000 26,746 29,861 200,000
9 64 4,450 51,522 9,018 11,688 200,000 15,604 18,274 200,000 31,563 34,233 200,000
10 65 4,450 58,770 9,214 11,439 200,000 17,081 19,306 200,000 36,480 38,705 200,000
11 66 4,450 66,381 8,983 10,763 200,000 18,212 19,992 200,000 41,433 43,213 200,000
12 67 4,450 74,373 8,294 9,629 200,000 18,952 20,287 200,000 46,417 47,752 200,000
13 68 4,450 82,764 7,090 7,980 200,000 19,230 20,120 200,000 51,466 52,356 200,000
14 69 4,450 91,575 5,330 5,775 200,000 18,986 19,431 200,000 56,527 56,972 200,000
15 70 4,450 100,826 2,898 2,898 200,000 18,086 18,086 200,000 61,547 61,547 200,000
16 71 4,450 110,540 LAPSED LAPSED LAPSED 16,353 16,353 200,000 66,449 66,449 200,000
17 72 4,450 120,739 13,692 13,692 200,000 71,313 71,313 200,000
18 73 4,450 131,449 9,855 9,855 200,000 76,179 76,179 200,000
19 74 4,450 142,693 4,569 4,569 200,000 81,075 81,075 200,000
20 75 4,450 154,501 LAPSED LAPSED LAPSED 86,014 86,014 200,000
21 76 4,450 166,898 91,043 91,043 200,000
22 77 4,450 179,916 96,170 96,170 200,000
23 78 4,450 193,584 101,398 101,398 200,000
24 79 4,450 207,936 106,747 106,747 200,000
25 80 4,450 223,005 112,246 112,246 200,000
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $4,450.00-Premium Mode:
Annual-Riders: None
D-57
<PAGE> 223
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------ ------------------------------
END PREMIUM 0.00% (-.75% NET) 6.00% (5.25% NET) 6.00% (5.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 81 4,450 238,828 117,920 117,920 200,000
27 82 4,450 255,441 123,807 123,807 200,000
28 83 4,450 272,886 129,975 129,975 200,000
29 84 4,450 291,203 136,377 136,377 200,000
30 85 4,450 310,436 143,070 143,070 200,000
31 86 4,450 330,630 150,173 150,173 200,000
32 87 4,450 351,834 157,819 157,819 200,000
33 88 4,450 374,098 166,170 166,170 200,000
34 89 4,450 397,475 175,538 175,538 200,000
35 90 4,450 422,022 186,290 186,290 200,000
36 91 4,450 447,795 198,397 198,397 208,317
37 92 4,450 474,857 211,202 211,202 219,650
38 93 4,450 503,273 224,810 224,810 231,555
39 94 4,450 533,109 239,357 239,357 244,144
40 95 4,450 564,437 254,988 254,988 257,538
41 96 4,450 597,331 271,346 271,346 274,059
42 97 4,450 631,870 288,463 288,463 291,347
43 98 4,450 668,136 306,364 306,364 309,427
44 99 4,450 706,216 325,078 325,078 328,329
45 100 4,450 746,199 344,623 344,623 348,069
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/07/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $4,450.00-Premium Mode:
Annual-Riders: None
D-58
<PAGE> 224
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
<TABLE>
<S> <C>
NUMERIC SUMMARY The following table shows how differences in investment
returns and policy charges would affect policy cash value
and death benefit.
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES* GUARANTEED CHARGES** CURRENT CHARGES***
-------------------------- -------------------------- ---------------------------------
NET 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
POLICY PREMIUM CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR OUTLAY VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4,450 0 3,082 200,000 0 3,511 200,000 0 3,511 200,000
5 4,450 5,750 9,310 200,000 11,164 14,724 200,000 17,487 21,047 200,000
10 4,450 9,214 11,439 200,000 29,131 31,356 200,000 53,271 55,496 200,000
20 4,450 LAPSED LAPSED LAPSED 70,123 70,123 200,000 206,052 206,052 220,476
@ Age 70 4,450 2,898 2,898 200,000 49,787 49,787 200,000 110,333 110,333 200,000
@ Age 85 4,450 LAPSED LAPSED LAPSED 78,946 78,946 200,000 638,616 638,616 670,546
@ Age 90 4,450 LAPSED LAPSED LAPSED LAPSED LAPSED LAPSED 1,072,642 1,072,642 1,126,274
</TABLE>
* Policy lapses in policy year 16 based on guaranteed charges and a gross
investment return of 0.00%.
** Policy lapses in policy year 35 based on guaranteed charges and a gross
investment return of 12.00%.
*** Policy continues to age 100 based on current charges and a gross investment
return of 12.00%.
<TABLE>
<S> <C> <C>
APPLICANT'S OR POLICYOWNER'S I have received a copy of this illustration and understand that any
ACKNOWLEDGEMENT not-guaranteed elements are subject to change and could be either
higher or lower. The agent has told me that they are not guaranteed.
---------------------------------------- -------------------------
Signature of Applicant or Policyowner Date
REPRESENTATIVE'S I certify that this illustration has been presented to the applicant
ACKNOWLEDGEMENT 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $4,450.00-Premium Mode:
Annual-Riders: None
D-59
<PAGE> 225
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
---------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 4,450 4,673 0 3,082 200,000 0 3,511 200,000 0 3,511 200,000
2 57 4,450 9,579 1,356 4,916 200,000 2,558 6,118 200,000 3,732 7,292 200,000
3 58 4,450 14,730 3,026 6,586 200,000 5,305 8,865 200,000 7,865 11,425 200,000
4 59 4,450 20,139 4,490 8,050 200,000 8,167 11,727 200,000 12,419 15,979 200,000
5 60 4,450 25,819 5,750 9,310 200,000 11,164 14,724 200,000 17,487 21,047 200,000
6 61 4,450 31,782 6,765 10,325 200,000 14,273 17,833 200,000 23,127 26,687 200,000
7 62 4,450 38,044 7,536 11,096 200,000 17,516 21,076 200,000 29,363 32,923 200,000
8 63 4,450 44,618 8,443 11,558 200,000 21,298 24,413 200,000 36,647 39,762 200,000
9 64 4,450 51,522 9,018 11,688 200,000 25,176 27,846 200,000 44,594 47,264 200,000
10 65 4,450 58,770 9,214 11,439 200,000 29,131 31,356 200,000 53,271 55,496 200,000
11 66 4,450 66,381 8,983 10,763 200,000 33,148 34,928 200,000 62,707 64,487 200,000
12 67 4,450 74,373 8,294 9,629 200,000 37,231 38,566 200,000 73,002 74,337 200,000
13 68 4,450 82,764 7,090 7,980 200,000 41,369 42,259 200,000 84,300 85,190 200,000
14 69 4,450 91,575 5,330 5,775 200,000 45,569 46,014 200,000 96,700 97,145 200,000
15 70 4,450 100,826 2,898 2,898 200,000 49,787 49,787 200,000 110,333 110,333 200,000
16 71 4,450 110,540 LAPSED LAPSED LAPSED 53,962 53,962 200,000 125,352 125,352 200,000
17 72 4,450 120,739 58,146 58,146 200,000 142,100 142,100 200,000
18 73 4,450 131,449 62,270 62,270 200,000 160,910 160,910 200,000
19 74 4,450 142,693 66,281 66,281 200,000 182,162 182,162 200,000
20 75 4,450 154,501 70,123 70,123 200,000 206,052 206,052 220,476
21 76 4,450 166,898 73,752 73,752 200,000 232,591 232,591 244,221
22 77 4,450 179,916 77,117 77,117 200,000 261,936 261,936 275,033
23 78 4,450 193,584 80,188 80,188 200,000 294,374 294,374 309,093
24 79 4,450 207,936 82,894 82,894 200,000 330,221 330,221 346,733
25 80 4,450 223,005 85,115 85,115 200,000 369,825 369,825 388,316
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option Form # B2-98
Initial Modal Premium: $4,450.00-Premium Mode:
Annual-Riders: None
D-60
<PAGE> 226
LIFE INSURANCE ILLUSTRATION
MONY Custom Equity Master
FLEXIBLE PREMIUM VARIABLE LIFE TO MATURITY POLICY
STANDARD LEDGER STATEMENT continued
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
-------------------------------------------------- ---------------------------------
END PREMIUM 0.00% (-.75% NET) 12.00% (11.25% NET) 12.00% (11.25% NET)
OF PREMIUM ACCUM'D CASH FUND DEATH CASH FUND DEATH CASH FUND DEATH
YEAR AGE OUTLAY AT 5% VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS VALUE VALUE PROCEEDS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26 81 4,450 238,828 86,685 86,685 200,000 413,564 413,564 434,242
27 82 4,450 255,441 87,325 87,325 200,000 461,850 461,850 484,943
28 83 4,450 272,886 86,648 86,648 200,000 515,144 515,144 540,901
29 84 4,450 291,203 84,103 84,103 200,000 573,896 573,896 602,591
30 85 4,450 310,436 78,947 78,947 200,000 638,616 638,616 670,546
31 86 4,450 330,630 70,091 70,091 200,000 709,866 709,866 745,359
32 87 4,450 351,834 55,932 55,932 200,000 788,238 788,238 827,650
33 88 4,450 374,098 34,066 34,066 200,000 874,339 874,339 918,056
34 89 4,450 397,475 719 719 200,000 968,896 968,896 1,017,340
35 90 4,450 422,022 LAPSED LAPSED LAPSED 1,072,642 1,072,642 1,126,274
36 91 4,450 447,795 1,186,276 1,186,276 1,245,590
37 92 4,450 474,857 1,312,618 1,312,618 1,365,122
38 93 4,450 503,273 1,453,548 1,453,548 1,497,154
39 94 4,450 533,109 1,611,378 1,611,378 1,643,606
40 95 4,450 564,437 1,788,790 1,788,790 1,806,678
41 96 4,450 597,331 1,985,109 1,985,109 2,004,960
42 97 4,450 631,870 2,202,344 2,202,344 2,224,368
43 98 4,450 668,136 2,442,634 2,442,634 2,467,060
44 99 4,450 706,216 2,708,367 2,708,367 2,735,451
45 100 4,450 746,199 3,002,054 3,002,054 3,032,075
</TABLE>
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Cash Value.
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., 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, or Janus Aspen Series 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: 09/06/00
Specified Amount: $200,000-Death Benefit Option: Version 2.01
Specified Amount for Option 1 Form # B2-98
Initial Modal Premium: $4,450.00-Premium Mode:
Annual-Riders: None
D-61
<PAGE> 227
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.
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[THIS PAGE INTENTIONALLY LEFT BLANK]
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PART II
(INFORMATION NOT REQUIRED IN A PROSPECTUS)
<PAGE> 230
PART II
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the Registrant hereby undertakes to file with the
Securities and Exchange Commission such supplementary and periodic information,
documents, and Reports as may be prescribed by any rule or regulation of the
Commission heretofore, or hereafter duly adopted pursuant to authority conferred
in that Section.
RULE 484 UNDERTAKING
The By-Laws of MONY Life Insurance Company of America ("MONY America")
provide, in Article VI as follows:
SECTION 1. The Corporation shall indemnify any existing or former
director, officer, employee or agent of the Corporation against all
expenses incurred by them and each of them which may arise or be incurred,
rendered or levied in any legal action brought or threatened against any of
them for or on account of any action or omission alleged to have been
committed while acting within the scope of employment as director, officer,
employee or agent of the Corporation, whether or not any action is or has
been filed against them and whether or not any settlement or compromise is
approved by a court, all subject and pursuant to the provisions of the
Articles of Incorporation of this Corporation.
SECTION 2. The indemnification provided in this By-Law shall not be
deemed exclusive of any other rights to which those seeking indemnification
may be entitled under By-Law, agreement, vote of stockholders or
disinterested directors or otherwise, both as to action in his official
capacity and as to action in another capacity while holding office, and
shall continue as to a person who has ceased to be a director, officer,
employee or agent and shall inure to the benefit of the heirs, executors,
and administrators of such a person.
Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification for such
liabilities (other than the payment by the Registrant of expense incurred or
paid by a director, officer, or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant, will (unless in the opinion of its counsel the
matter has been settled by controlling precedent) submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
REPRESENTATIONS RELATING TO SECTION 26 OF THE
INVESTMENT COMPANY ACT OF 1940
Registrant and MONY Life Insurance Company of America represent that the
fees and charges deducted under the contract, in the aggregate, are reasonable
in relation to the services rendered, the expenses expected to be incurred, and
the risks assumed by MONY Life Insurance Company of America.
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<PAGE> 231
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The Facing Sheet.
Cross-Reference to items required by Form N-8B-2.
Prospectus consisting of pages.
The Undertaking to file reports.
The signatures.
Written consents of the following persons:
a. Edward P. Bank, Vice President and Deputy General Counsel, The
Mutual Life Insurance Company of New York
b. PricewaterhouseCoopers LLP, Independent Accountants
The following exhibits:
1. The following exhibits correspond to those required by paragraph A
of the instructions as exhibits to Form N-8B2:
(1) Resolution of the Board of Directors of MONY America
authorizing establishment of MONY America Variable Account L, filed as
Exhibit 1 to Registration Statement on Form S-6, dated February 21, 1985
(Registration Nos. 2-95900 and 811-4235), is incorporated herein by
reference.
(2) Not applicable.
(3) (a) Underwriting Agreement between MONY Life Insurance Company
of America, MONY Series Fund, Inc., and MONY Securities Corp., filed as
Exhibit 3(a) to Pre-Effective Amendment No. 1 to Registration Statement
on Form S-6, dated January 6, 1995 (Registration Nos. 33-82570 and
811-4235), is incorporated by referenced herein.
(b) Proposed specimen agreement between MONY Securities Corp. and
registered representatives, filed as Exhibit 3(b) of Pre-Effective
Amendment No. 1, dated December 17, 1990, to Registration Statement on
Form N-4 (Registration Nos. 33-37722 and 811-6126) is incorporated
herein by reference.
(c) Commission schedule (with Commission Contract), filed as
Exhibit 3(c) to Pre-Effective Amendment No. 1 to Registration Statement
on Form S-6, dated January 6, 1995 (Registration Nos. 33-82570 and
811-4235), is incorporated by referenced herein.
(4) Not applicable.
(5) Form of policy, filed as Exhibit 1(5) to Registration Statement
on Form S-6, dated June 16, 1998 (Registration Nos. 333-56969 and
811-4235), is incorporated herein by reference.
(6) Articles of Incorporation and By-Laws of MONY America filed as
Exhibits 6(a) and 6(b), respectively, to Registration Statement
Registration No. 33-13183) dated April 6, 1987, is incorporated herein
by reference.
(7) Not applicable.
(8) (a) Form of agreement to purchase shares. Application Form for
Flexible Premium Variable Universal Life Insurance Policy, filed as
Exhibit 1.(10) to Pre-Effective Amendment No. 1, dated January 6, 1995,
to Registration Statement on Form S-6 (Registration No. 33-82570), is
incorporated herein by reference.
(b) Investment Advisory Agreement between MONY Life Insurance
Company of America and MONY Series Fund, Inc. filed as Exhibit 5(i) to
Post-Effective amendment No. 14 to Registration Statement (Registration
Nos. 2-95501 and 811-4209) dated February 27, 1998, is incorporated
herein by reference.
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<PAGE> 232
Portfolio Manager Agreement between Enterprise Capital Management,
Inc., ("Enterprise Capital") and The Enterprise Accumulation Trust
("Trust"), and Enterprise Capital, the Trust, and OpCap Advisors, as
sub-advisor, filed as Exhibit 5 to Post-Effective Amendment No. 8, dated
September 30, 1994, to Registration Statement on Form N-1A (Registration
No. 33-21534), is incorporated herein by reference.
Portfolio Manager Agreement between Enterprise Capital Management,
Inc., ("Enterprise Capital") and The Enterprise Accumulation Trust
("Trust"), and Enterprise Capital, the Trust, and Gabelli Asset
Management Co., as sub-adviser, filed as Exhibit 5 to Post-Effective
Amendment No. 8, dated September 30, 1994, to Registration Statement on
Form N-1A (Registration No. 33-21534), is incorporated herein by
reference.
Portfolio Manager Agreement between Enterprise Capital Management,
Inc., ("Enterprise Capital") and The Enterprise Accumulation Trust
("Trust"), and Enterprise Capital, the Trust, and Brinson Partners,
Inc., as sub-adviser, filed as Exhibit 5 to Post-Effective Amendment No.
8, dated September 30, 1994, to Registration Statement on Form N-1A
(Registration No. 33-21534), is incorporated herein by reference.
Portfolio Manager Agreement between Enterprise Capital Management,
Inc., ("Enterprise Capital") and The Enterprise Accumulation Trust
("Trust"), and Enterprise Capital, the Trust, and Caywood-Scholl Capital
Management, Inc., as sub-adviser, filed as Exhibit 5 to Post-Effective
Amendment No. 8, dated September 30, 1994, to Registration Statement on
Form N-1A (Registration No. 33-21534), is incorporated herein by
reference.
(c) Services Agreement between The Mutual Life Insurance Company of
New York and MONY Life Insurance Company of America filed as Exhibit
5(ii) to Pre-Effective Amendment to Registration Statement (Registration
Nos. 2-95501 and 811-4209) dated July 19, 1985, is incorporated herein
by reference.
(9) Not applicable.
(10) Application Form for Flexible Premium Variable Universal Life
Insurance Policy, filed as Exhibit 1.(10) to Pre-Effective Amendment No.
1, dated January 6, 1995, to Registration Statement on Form S-6
(Registration No. 33-82570), is incorporated herein by reference.
2. Opinion and consent of Edward P. Bank, Vice President and Deputy
General Counsel, The Mutual Life Insurance Company of New York, as to
legality of the securities being registered, is incorporated herein by
reference.
3. Not applicable.
4. Not applicable.
5. Not applicable.
6. Not Applicable.
7. Consent of PricewaterhouseCoopers LLP as to the inclusion of their
reports on the audits of the financial statements of MONY America Variable
Account L is filed herewith as Exhibit 7.
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<PAGE> 233
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
MONY America Variable Account L of MONY Life Insurance Company of America, has
duly caused this Post-Effective Amendment No. 7 to the Registration Statement to
be signed on its behalf by the undersigned, thereunto duly authorized, in the
City of New York and the State of New York, on this 15th day of December, 2000.
MONY AMERICA VARIABLE ACCOUNT L OF
MONY LIFE INSURANCE COMPANY OF AMERICA
By: /s/ MICHAEL I. ROTH
------------------------------------
Michael I. Roth, Director,
Chairman of the Board and Chief
Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 7 to this Registration Statement has been duly
signed below by the following persons in the capacities and on the date
indicated.
<TABLE>
<CAPTION>
SIGNATURE DATE
--------- ----
<C> <S> <C>
/s/ MICHAEL I. ROTH Director, Chairman of the Board December 15, 2000
------------------------------------------------ and Chief Executive Officer
Michael I. Roth
/s/ SAMUEL J. FOTI Director, President and Chief December 15, 2000
------------------------------------------------ Operating Officer
Samuel J. Foti
/s/ RICHARD DADDARIO Director, Vice President and December 15, 2000
------------------------------------------------ Controller
Richard Daddario (Principal Financial and
Accounting Officer)
/s/ KENNETH M. LEVINE Director and Executive Vice December 15, 2000
------------------------------------------------ President
Kenneth M. Levine
/s/ PHILLIP A. EISENBERG Director, Vice President and December 15, 2000
------------------------------------------------ Actuary
Phillip A. Eisenberg
/s/ MARGARET G. GALE Director and Vice President December 15, 2000
------------------------------------------------
Margaret G. Gale
/s/ CHARLES P. LEONE Director and Vice President December 15, 2000
------------------------------------------------
Charles P. Leone
/s/ RICHARD E. CONNORS Director December 15, 2000
------------------------------------------------
Richard E. Connors
/s/ STEPHEN J. HALL Director December 15, 2000
------------------------------------------------
Stephen J. Hall
</TABLE>
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<PAGE> 234
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
----------- -----------
<S> <C>
7. Consent of PricewaterhouseCoopers LLP
</TABLE>
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