<PAGE> 1
SUPPLEMENT DATED JANUARY 1, 2001
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 January 1, 2001 this Supplement updates certain information contained
in your Prospectus. Please read it and keep it with your prospectus for future
reference.
1. THE DESCRIPTION OF THE MANAGED PORTFOLIO ON PAGE 19 IS AMENDED TO READ
AS FOLLOWS:
<TABLE>
<S> <C> <C>
--------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT
SUB-ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
MANAGED PORTFOLIO Annual rate of 0.80% of the Wellington Management
Wellington Management first $400 million, 0.75% of Company's fee for the assets
Company, LLP and Sanford C. the next $400 million and of the portfolio it manages
Bernstein & Co., LLC 0.70% in excess of $800 is an annual rate of 0.40%
million of the average daily up to $500 million, 0.35% of
net assets the next $500 million, 0.30%
of the next $1 billion and
0.25% in excess of $2
billion of the portfolio's
average daily net assets.
Sanford C. Bernstein & Co.'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.
--------------------------------------------------------------------------------------------
</TABLE>
Form No. 14428 SL (Supp 1/01/01) Registration No. 333-56969
<PAGE> 2
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 3
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
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-21
Unaudited interim condensed consolidated statements of
income and comprehensive income for the three-month
periods ended September 30, 2000 and 1999.............. F-22
Unaudited interim condensed consolidated statements of
income and comprehensive income for the nine-month
periods ended September 30, 2000 and 1999.............. F-23
Unaudited interim condensed consolidated statement of
changes in shareholders' equity for the nine-month
period ended September 30, 2000........................ F-24
Unaudited interim condensed consolidated statements of
cash flows for the nine-month periods ended September
30, 2000 and 1999...................................... F-25
Notes to unaudited interim condensed consolidated
financial statements................................... F-26
</TABLE>
F-1
<PAGE> 4
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> 5
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> 6
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> 7
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> 8
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> 9
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> 10
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> 11
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> 12
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> 13
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> 14
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> 15
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> 16
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> 17
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> 18
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> 19
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> 20
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> 21
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> 22
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> 23
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 $6,170.5
======== ========
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-21
<PAGE> 24
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
------ ------
($ 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-22
<PAGE> 25
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-23
<PAGE> 26
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) $322.4
==== ====== ====== ===== ======
</TABLE>
---------------
(1) Represents unrealized losses on investments, net of unrealized gains,
reclassification adjustments, and taxes.
See accompanying notes to unaudited interim condensed financial statements.
F-24
<PAGE> 27
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF CASH FLOWS
NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
--------- -------
($ 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-25
<PAGE> 28
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-26
<PAGE> 29
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-27
<PAGE> 30
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-28
