<PAGE> 1
SUPPLEMENT DATED JANUARY 1, 2001
to
PROSPECTUS DATED MAY 1, 2000
for
Last Survivor 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 15 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. 14430 SL (Supp 1/01/01) Registration No. 333-64417
<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-5
Statement of changes in net assets for the periods ended
September 30, 2000 and December 31, 1999 (unaudited)... F-8
Notes to financial statements............................. F-14
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-17
Unaudited interim condensed consolidated statements of
income and comprehensive income for the three-month
periods ended September 30, 2000 and 1999.............. F-18
Unaudited interim condensed consolidated statements of
income and comprehensive income for the nine-month
periods ended September 30, 2000 and 1999.............. F-19
Unaudited interim condensed consolidated statement of
changes in shareholders' equity for the nine-month
period ended September 30, 2000........................ F-20
Unaudited interim condensed consolidated statements of
cash flows for the nine-month period ended September
30, 2000 and 1999...................................... F-21
Notes to unaudited interim condensed consolidated
financial statements................................... F-22
</TABLE>
F-1
<PAGE> 4
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------- ---------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds... 12,544 13,849 7,220 611,277 14,169 15,323 43,845
======== ======== ======= ======== ======== ======== ==========
Investments at cost............... $132,659 $170,871 $77,430 $611,277 $552,250 $459,944 $1,356,463
======== ======== ======= ======== ======== ======== ==========
Investments in respective Funds,
at net asset value.............. $133,342 $172,968 $78,621 $611,277 $484,567 $400,849 $1,040,431
Amount due from MONY America...... 909 0 1,338 0 4,289 1,333 2,033
Amount due from respective
Funds........................... 0 21 12 0 131 16 107
-------- -------- ------- -------- -------- -------- ----------
Total assets.............. 134,251 172,989 79,971 611,277 488,987 402,198 1,042,571
-------- -------- ------- -------- -------- -------- ----------
LIABILITIES
Amount due to MONY America........ 140 201 93 573 577 409 1,094
Amount due to respective Funds.... 909 0 1,338 0 4,289 1,333 2,033
-------- -------- ------- -------- -------- -------- ----------
Total liabilities......... 1,049 201 1,431 573 4,866 1,742 3,127
-------- -------- ------- -------- -------- -------- ----------
Net assets........................ $133,202 $172,788 $78,540 $610,704 $484,121 $400,456 $1,039,444
======== ======== ======= ======== ======== ======== ==========
Net assets consist of:
Contractholders' net payments... $127,682 $163,745 $74,164 $586,473 $422,181 $367,400 $1,008,207
Undistributed net investment
income........................ 11,704 15,978 3,841 24,231 125,469 86,471 411,361
Accumulated net realized gain
(loss) on investments......... (6,867) (9,032) (656) 0 4,154 5,680 (64,092)
Net unrealized appreciation
(depreciation) of
investments................... 683 2,097 1,191 0 (67,683) (59,095) (316,032)
-------- -------- ------- -------- -------- -------- ----------
Net assets........................ $133,202 $172,788 $78,540 $610,704 $484,121 $400,456 $1,039,444
======== ======== ======= ======== ======== ======== ==========
Number of units outstanding*...... 12,663 16,870 7,395 56,094 36,191 32,052 95,920
-------- -------- ------- -------- -------- -------- ----------
Net asset value per unit
outstanding*.................... $ 10.52 $ 10.24 $ 10.62 $ 10.89 $ 13.38 $ 12.49 $ 10.84
======== ======== ======= ======== ======== ======== ==========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements.
F-2
<PAGE> 5
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY
GROWTH BOND GROWTH INCOME GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds............... 126,250 42,873 367,660 147,646 47,773 84,555
========== ======== ========== ======== ======== ========
Investments at cost........................... $1,059,534 $208,351 $2,269,544 $892,643 $380,257 $447,481
========== ======== ========== ======== ======== ========
Investments in respective Funds, at net asset
value....................................... $ 897,638 $204,934 $2,117,721 $936,072 $449,069 $459,133
Amount due from MONY America.................. 956 812 7,066 2,594 1,381 756
Amount due from respective Funds.............. 23 21 536 93 18 59
---------- -------- ---------- -------- -------- --------
Total assets.......................... 898,617 205,767 2,125,323 938,759 450,468 459,948
---------- -------- ---------- -------- -------- --------
LIABILITIES
Amount due to MONY America.................... 578 221 2,672 1,032 414 503
Amount due to respective Funds................ 956 812 7,066 2,594 1,381 756
---------- -------- ---------- -------- -------- --------
Total liabilities..................... 1,534 1,033 9,738 3,626 1,795 1,259
---------- -------- ---------- -------- -------- --------
Net assets.................................... $ 897,083 $204,734 $2,115,585 $935,133 $448,673 $458,689
========== ======== ========== ======== ======== ========
Net assets consist of:
Contractholders' net payments............... $ 963,466 $199,785 $2,185,814 $868,962 $361,112 $446,776
Undistributed net investment income
(loss).................................... 87,783 10,633 14,444 (45) 2,082 793
Accumulated net realized gain (loss) on
investments............................... 7,730 (2,267) 67,150 22,787 16,667 (532)
Net unrealized appreciation (depreciation)
of investments............................ (161,896) (3,417) (151,823) 43,429 68,812 11,652
---------- -------- ---------- -------- -------- --------
Net assets.................................... $ 897,083 $204,734 $2,115,585 $935,133 $448,673 $458,689
========== ======== ========== ======== ======== ========
Number of units outstanding*.................. 76,858 19,643 191,759 76,663 25,890 42,807
---------- -------- ---------- -------- -------- --------
Net asset value per unit outstanding*......... $ 11.67 $ 10.42 $ 11.03 $ 12.20 $ 17.33 $ 10.72
========== ======== ========== ======== ======== ========
<CAPTION>
MONY CUSTOM ESTATE MASTER
--------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------
CAPITAL MUTI-CAP
APPRECIATION GROWTH BALANCED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ----------
<S> <C> <C> <C>
ASSETS
Shares held in respective Funds............... 36,566 24,516 25,444
======== ======== ========
Investments at cost........................... $279,605 $348,322 $129,611
======== ======== ========
Investments in respective Funds, at net asset
value....................................... $288,506 $319,199 $125,440
Amount due from MONY America.................. 83 0 1,514
Amount due from respective Funds.............. 26 7 0
-------- -------- --------
Total assets.......................... 288,615 319,206 126,954
-------- -------- --------
LIABILITIES
Amount due to MONY America.................... 292 270 126
Amount due to respective Funds................ 83 0 1,514
-------- -------- --------
Total liabilities..................... 375 270 1,640
-------- -------- --------
Net assets.................................... $288,240 $318,936 $125,314
======== ======== ========
Net assets consist of:
Contractholders' net payments............... $250,573 $346,347 $128,766
Undistributed net investment income
(loss).................................... 13,320 (306) 692
Accumulated net realized gain (loss) on
investments............................... 15,446 2,018 27
Net unrealized appreciation (depreciation)
of investments............................ 8,901 (29,123) (4,171)
-------- -------- --------
Net assets.................................... $288,240 $318,936 $125,314
======== ======== ========
Number of units outstanding*.................. 19,337 28,151 12,795
-------- -------- --------
Net asset value per unit outstanding*......... $ 14.91 $ 11.33 $ 9.79
======== ======== ========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements.
F-3
<PAGE> 6
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE
PRODUCTS FUNDS
DREYFUS ---------------------------------------
DREYFUS SOCIALLY VIP III
STOCK RESPONSIBLE VIP VIP II GROWTH
INDEX GROWTH GROWTH CONTRA OPPORTUNITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ----------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds.... 7,328 191 3,836 4,053 1,110
======== ====== ======== ======== =======
Investments at cost................ $275,247 $7,331 $195,147 $103,151 $22,997
======== ====== ======== ======== =======
Investments in respective Funds, at
net asset value.................. $275,169 $7,592 $190,348 $102,708 $22,106
Amount due from MONY America....... 1,401 0 95 95 95
Amount due from respective Funds... 18 22 9 14 0
-------- ------ -------- -------- -------
Total assets............... 276,588 7,614 190,452 102,817 22,201
-------- ------ -------- -------- -------
LIABILITIES
Amount due to MONY America......... 260 29 175 102 17
Amount due to respective Funds..... 1,401 0 95 95 95
-------- ------ -------- -------- -------
Total liabilities.......... 1,661 29 270 197 112
-------- ------ -------- -------- -------
Net assets......................... $274,927 $7,585 $190,182 $102,620 $22,089
======== ====== ======== ======== =======
Net assets consist of:
Contractholders' net payments.... $264,640 $7,226 $173,920 $100,899 $23,127
Undistributed net investment
income (loss).................. 1,447 (16) 19,460 4,560 509
Accumulated net realized gain
(loss) on investments.......... 8,918 114 1,601 (2,396) (656)
Net unrealized appreciation
(depreciation) of
investments.................... (78) 261 (4,799) (443) (891)
-------- ------ -------- -------- -------
Net assets......................... $274,927 $7,585 $190,182 $102,620 $22,089
======== ====== ======== ======== =======
Number of units outstanding*....... 26,149 701 16,879 9,717 2,300
-------- ------ -------- -------- -------
Net asset value per unit
outstanding*..................... $ 10.51 $10.81 $ 11.27 $ 10.56 $ 9.60
======== ====== ======== ======== =======
<CAPTION>
MONY CUSTOM ESTATE 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.... 9,268 2,405 8,399 4,873
======== ======= ======== ========
Investments at cost................ $535,928 $65,068 $287,468 $229,601
======== ======= ======== ========
Investments in respective Funds, at
net asset value.................. $489,796 $60,434 $273,882 $206,900
Amount due from MONY America....... 142 1,609 0 95
Amount due from respective Funds... 18 0 23 18
-------- ------- -------- --------
Total assets............... 489,956 62,043 273,905 207,013
-------- ------- -------- --------
LIABILITIES
Amount due to MONY America......... 406 53 239 180
Amount due to respective Funds..... 142 1,609 0 95
-------- ------- -------- --------
Total liabilities.......... 548 1,662 239 275
-------- ------- -------- --------
Net assets......................... $489,408 $60,381 $273,666 $206,738
======== ======= ======== ========
Net assets consist of:
Contractholders' net payments.... $513,616 $59,882 $285,128 $217,624
Undistributed net investment
income (loss).................. 21,599 5,132 1,054 10,956
Accumulated net realized gain
(loss) on investments.......... 325 1 1,070 859
Net unrealized appreciation
(depreciation) of
investments.................... (46,132) (4,634) (13,586) (22,701)
-------- ------- -------- --------
Net assets......................... $489,408 $60,381 $273,666 $206,738
======== ======= ======== ========
Number of units outstanding*....... 42,739 5,786 22,177 18,561
-------- ------- -------- --------
Net asset value per unit
outstanding*..................... $ 11.45 $ 10.44 $ 12.34 $ 11.14
======== ======= ======== ========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-4
<PAGE> 7
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------- ---------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend investment income........ $ 8,535 $11,858 $3,808 $20,581 $ 3,096 $ 579 $ 20,708
Distribution from capital gains... 0 0 4 0 111,543 74,248 321,001
Mortality and expense risk
charges......................... (337) (429) (188) (1,218) (891) (875) (2,187)
------- ------- ------ ------- -------- -------- ---------
Net investment income............. 8,198 11,429 3,624 19,363 113,748 73,952 339,522
------- ------- ------ ------- -------- -------- ---------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments.................. (6,299) (6,998) (391) 0 5,702 3,027 (58,227)
Net change in unrealized
appreciation (depreciation)
of investments............... 3,900 9,499 934 0 (79,237) (68,244) (274,423)
------- ------- ------ ------- -------- -------- ---------
Net realized and unrealized gain
(loss) on investments........... (2,399) 2,501 543 0 (73,535) (65,217) (332,650)
------- ------- ------ ------- -------- -------- ---------
Net increase in net assets
resulting from operations....... $ 5,799 $13,930 $4,167 $19,363 $ 40,213 $ 8,735 $ 6,872
======= ======= ====== ======= ======== ======== =========
</TABLE>
See notes to financial statements.
F-5
<PAGE> 8
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------------------------
INTERNATIONAL
GROWTH
SUBACCOUNT HIGH YIELD GROWTH AND SMALL COMPANY EQUITY
------------- BOND GROWTH INCOME GROWTH INCOME
FOR THE NINE SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
MONTHS ------------- ------------- ------------- ------------- -------------
ENDED FOR THE NINE FOR THE NINE FOR THE NINE FOR THE NINE FOR THE NINE
SEPTEMBER MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED
30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 2000 2000 2000 2000 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Dividend investment income........ $ 1,748 $ 8,471 $ 2,162 $ 2,403 $ 0 $ 2,035
Distribution from capital gains... 85,056 0 18,536 29 3,130 0
Mortality and expense risk
charges......................... (1,028) (311) (4,574) (1,920) (817) (1,065)
--------- ------- --------- ------- ------- -------
Net investment income (loss)...... 85,776 8,160 16,124 512 2,313 970
--------- ------- --------- ------- ------- -------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................... 6,765 (1,726) 62,325 9,954 14,056 (1,188)
Net change in unrealized
appreciation (depreciation) of
investments................... (188,308) (2,445) (288,106) 21,285 19,787 11,467
--------- ------- --------- ------- ------- -------
Net realized and unrealized gain
(loss) on investments........... (181,543) (4,171) (225,781) 31,239 33,843 10,279
--------- ------- --------- ------- ------- -------
Net increase (decrease) in net
assets resulting from
operations...................... $ (95,767) $ 3,989 $(209,657) $31,751 $36,156 $11,249
========= ======= ========= ======= ======= =======
<CAPTION>
MONY CUSTOM ESTATE MASTER
--------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------
CAPITAL MULTI-CAP
APPRECIATION GROWTH BALANCED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- ------------------
FOR THE NINE FOR THE NINE FOR THE PERIOD **
MONTHS ENDED MONTHS ENDED MAY 4, 2000
SEPTEMBER 30, SEPTEMBER 30, THROUGH
2000 2000 SEPTEMBER 30, 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED)
------------- ------------- ------------------
<S> <C> <C> <C>
Dividend investment income........ $ 0 $ 0 $ 310
Distribution from capital gains... 14,096 143 519
Mortality and expense risk
charges......................... (584) (441) (137)
-------- -------- -------
Net investment income (loss)...... 13,512 (298) 692
-------- -------- -------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................... 13,104 1,983 27
Net change in unrealized
appreciation (depreciation) of
investments................... (32,790) (33,972) (4,171)
-------- -------- -------
Net realized and unrealized gain
(loss) on investments........... (19,686) (31,989) (4,144)
-------- -------- -------
Net increase (decrease) in net
assets resulting from
operations...................... $ (6,174) $(32,287) $(3,452)
======== ======== =======
</TABLE>
---------------
** Commencement of operations
See notes to financial statements.
F-6
<PAGE> 9
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS
DREYFUS --------------------------------------------------
DREYFUS SOCIALLY VIP III
STOCK RESPONSIBLE VIP VIP II GROWTH
INDEX GROWTH GROWTH CONTRA FUND OPPORTUNITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------------ ------------- ------------- ------------------
FOR THE PERIOD ** FOR THE PERIOD **
FOR THE NINE JANUARY 7, 2000 FOR THE NINE FOR THE NINE JANUARY 7, 2000
MONTHS ENDED THROUGH MONTHS ENDED MONTHS ENDED THROUGH
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 2000 2000 2000 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
------------- ------------------ ------------- ------------- ------------------
<S> <C> <C> <C> <C> <C>
Dividend investment income..... $1,517 $ 1 $ 165 $ 127 $ 87
Distribution from capital
gains........................ 166 0 19,688 4,598 455
Mortality and expense risk
charges...................... (542) (17) (393) (163) (33)
------ ---- ------- ------- -------
Net investment income (loss)... 1,141 (16) 19,460 4,562 509
------ ---- ------- ------- -------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................ 8,891 114 1,601 (2,393) (656)
Net change in unrealized
appreciation (depreciation)
of investments............. (1,315) 261 (4,962) (1,093) (891)
------ ---- ------- ------- -------
Net realized and unrealized
gain (loss) on investments... 7,576 375 (3,361) (3,486) (1,547)
------ ---- ------- ------- -------
Net increase (decrease) in net
assets resulting from
operations................... $8,717 $359 $16,099 $ 1,076 $(1,038)
====== ==== ======= ======= =======
<CAPTION>
MONY CUSTOM ESTATE MASTER
-------------------------------------------------------------
JANUS ASPEN SERIES
-------------------------------------------------------------
AGGRESSIVE CAPITAL WORLDWIDE
GROWTH BALANCED APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- ------------- -------------
FOR THE NINE FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 2000 2000 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Dividend investment income..... $ 18,903 $2,802 $ 1,362 $ 9,927
Distribution from capital
gains........................ 3,203 2,306 74 1,275
Mortality and expense risk
charges...................... (506) (108) (383) (243)
-------- ------ -------- --------
Net investment income (loss)... 21,600 5,000 1,053 10,959
-------- ------ -------- --------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................ 321 1 1,069 850
Net change in unrealized
appreciation (depreciation)
of investments............. (46,557) (5,016) (13,845) (24,348)
-------- ------ -------- --------
Net realized and unrealized
gain (loss) on investments... (46,236) (5,015) (12,776) (23,498)
-------- ------ -------- --------
Net increase (decrease) in net
assets resulting from
operations................... $(24,636) $ (15) $(11,723) $(12,539)
======== ====== ======== ========
</TABLE>
---------------
** Commencement of operations
See notes to financial statements.
F-7
<PAGE> 10
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT
TERM BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------------- ----------------------------- -----------------------------
FOR THE FOR THE FOR THE
PERIOD PERIOD PERIOD
FOR THE NINE JANUARY 11, FOR THE NINE FEBRUARY 12, FOR THE NINE FEBRUARY 12,
MONTHS ENDED 1999** MONTHS ENDED 1999** MONTHS ENDED 1999**
SEPTEMBER 30, THROUGH SEPTEMBER 30, THROUGH SEPTEMBER 30, THROUGH
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............ $ 8,198 $ 3,506 $ 11,429 $ 4,549 $ 3,624 $ 217
Net realized gain (loss) on
investments.................... (6,299) (568) (6,998) (2,034) (391) (265)
Net change in unrealized
appreciation (depreciation) of
investments.................... 3,900 (3,217) 9,499 (7,402) 934 257
-------- ------- -------- -------- -------- -------
Net increase (decrease) in net
assets resulting from
operations....................... 5,799 (279) 13,930 (4,887) 4,167 209
-------- ------- -------- -------- -------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 53,305 97,805 63,495 131,515 41,443 57,178
Net asset value of units redeemed
or used to meet contract
obligations.................... (16,154) (7,274) (17,933) (13,332) (16,999) (7,458)
-------- ------- -------- -------- -------- -------
Net increase from unit
transactions..................... 37,151 90,531 45,562 118,183 24,444 49,720
-------- ------- -------- -------- -------- -------
Net increase in net assets......... 42,950 90,252 59,492 113,296 28,611 49,929
Net assets beginning of period..... 90,252 0 113,296 0 49,929 0
-------- ------- -------- -------- -------- -------
Net assets end of period*.......... $133,202 $90,252 $172,788 $113,296 $ 78,540 $49,929
======== ======= ======== ======== ======== =======
Unit transactions:
Units outstanding beginning of
period......................... 8,951 0 12,005 0 4,962 0
Units issued during the period... 5,479 9,671 6,707 13,368 4,070 5,703
Units redeemed during the
period......................... (1,767) (720) (1,842) (1,363) (1,637) (741)
-------- ------- -------- -------- -------- -------
Units outstanding end of period.... 12,663 8,951 16,870 12,005 7,395 4,962
======== ======= ======== ======== ======== =======
---------------
* Includes undistributed net
investment income of: $ 11,704 $ 3,506 $ 15,978 $ 4,549 $ 3,841 $ 217
======== ======= ======== ======== ======== =======
** Commencement of operations
<CAPTION>
MONY CUSTOM ESTATE MASTER
-----------------------------
MONY SERIES FUND, INC.
-----------------------------
MONEY
MARKET
SUBACCOUNT
-----------------------------
FOR THE
PERIOD
FOR THE NINE JANUARY 11,
MONTHS ENDED 1999**
SEPTEMBER 30, THROUGH
2000 DECEMBER 31,
(UNAUDITED) 1999
------------- -------------
<S> <C> <C>
From operations:
Net investment income............ $ 19,363 $ 4,868
Net realized gain (loss) on
investments.................... 0 0
Net change in unrealized
appreciation (depreciation) of
investments.................... 0 0
---------- ---------
Net increase (decrease) in net
assets resulting from
operations....................... 19,363 4,868
---------- ---------
From unit transactions:
Net proceeds from the issuance of
units.......................... 1,295,176 486,468
Net asset value of units redeemed
or used to meet contract
obligations.................... (930,229) (264,942)
---------- ---------
Net increase from unit
transactions..................... 364,947 221,526
---------- ---------
Net increase in net assets......... 384,310 226,394
Net assets beginning of period..... 226,394 0
---------- ---------
Net assets end of period*.......... $ 610,704 $ 226,394
========== =========
Unit transactions:
Units outstanding beginning of
period......................... 21,669 0
Units issued during the period... 123,935 46,291
Units redeemed during the
period......................... (89,510) (24,622)
---------- ---------
Units outstanding end of period.... 56,094 21,669
========== =========
---------------
* Includes undistributed net
investment income of: $ 24,231 $ 4,868
========== =========
** Commencement of operations
</TABLE>
See notes to financial statements.
F-8
<PAGE> 11
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------------- ----------------------------- -----------------------------
FOR THE FOR THE FOR THE
PERIOD PERIOD PERIOD
FOR THE NINE JANUARY 11, FOR THE NINE JANUARY 7, FOR THE NINE JANUARY 4,
MONTHS ENDED 1999** MONTHS ENDED 1999** MONTHS ENDED 1999**
SEPTEMBER 30, THROUGH SEPTEMBER 30, THROUGH SEPTEMBER 30, THROUGH
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........... $113,748 $ 11,721 $ 73,952 $ 12,519 $ 339,522 $ 71,839
Net realized gain (loss) on
investments................... 5,702 (1,548) 3,027 2,653 (58,227) (5,865)
Net change in unrealized
appreciation (depreciation) of
investments................... (79,237) 11,554 (68,244) 9,149 (274,423) (41,609)
-------- -------- -------- -------- ---------- --------
Net increase (decrease) in net
assets resulting from
operations...................... 40,213 21,727 8,735 24,321 6,872 24,365
-------- -------- -------- -------- ---------- --------
From unit transactions:
Net proceeds from the issuance
of units...................... 258,157 228,368 186,246 243,690 522,639 677,394
Net asset value of units
redeemed or used to meet
contract obligations.......... (36,941) (27,403) (43,433) (19,103) (123,620) (68,206)
-------- -------- -------- -------- ---------- --------
Net increase from unit
transactions.................... 221,216 200,965 142,813 224,587 399,019 609,188
-------- -------- -------- -------- ---------- --------
Net increase in net assets........ 261,429 222,692 151,548 248,908 405,891 633,553
Net assets beginning of period.... 222,692 0 248,908 0 633,553 0
-------- -------- -------- -------- ---------- --------
Net assets end of period*......... $484,121 $222,692 $400,456 $248,908 $1,039,444 $633,553
======== ======== ======== ======== ========== ========
Unit transactions:
Units outstanding beginning of
period........................ 19,286 0 20,346 0 58,038 0
Units issued during the
period........................ 19,771 21,811 15,234 22,000 49,467 64,524
Units redeemed during the
period........................ (2,866) (2,525) (3,528) (1,654) (11,585) (6,486)
-------- -------- -------- -------- ---------- --------
Units outstanding end of period... 36,191 19,286 32,052 20,346 95,920 58,038
======== ======== ======== ======== ========== ========
---------------
* Includes undistributed net
investment income of: $125,469 $ 11,721 $ 86,471 $ 12,519 $ 411,361 $ 71,839
======== ======== ======== ======== ========== ========
** Commencement of operations
</TABLE>
See notes to financial statements.
F-9
<PAGE> 12
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
-----------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------------- ----------------------------- -------------
FOR THE FOR THE
PERIOD PERIOD
FOR THE NINE JANUARY 4, FOR THE NINE JANUARY 6, FOR THE NINE
MONTHS ENDED 1999** MONTHS ENDED 1999** MONTHS ENDED
SEPTEMBER 30, THROUGH SEPTEMBER 30, THROUGH SEPTEMBER 30,
2000 DECEMBER 31, 2000 DECEMBER 31, 2000
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED)
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)..... $ 85,776 $ 2,007 $ 8,160 $ 2,473 $ 16,124
Net realized gain (loss) on
investments.................... 6,765 965 (1,726) (541) 62,325
Net change in unrealized
appreciation (depreciation) of
investments.................... (188,308) 26,412 (2,445) (972) (288,106)
--------- -------- -------- ------- ----------
Net increase (decrease) in net
assets resulting from
operations....................... (95,767) 29,384 3,989 960 (209,657)
--------- -------- -------- ------- ----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 873,348 117,483 161,039 56,495 1,308,072
Net asset value of units redeemed
or used to meet contract
obligations.................... (23,600) (3,765) (10,968) (6,781) (288,266)
--------- -------- -------- ------- ----------
Net increase from unit
transactions..................... 849,748 113,718 150,071 49,714 1,019,806
--------- -------- -------- ------- ----------
Net increase in net assets......... 753,981 143,102 154,060 50,674 810,149
Net assets beginning of period..... 143,102 0 50,674 0 1,305,436
--------- -------- -------- ------- ----------
Net assets end of period*.......... $ 897,083 $143,102 $204,734 $50,674 $2,115,585
========= ======== ======== ======= ==========
Unit transactions:
Units outstanding beginning of
period......................... 10,372 0 4,921 0 104,634
Units issued during the period... 68,397 10,713 15,698 5,588 111,101
Units redeemed during the
period......................... (1,911) (341) (976) (667) (23,976)
--------- -------- -------- ------- ----------
Units outstanding end of period.... 76,858 10,372 19,643 4,921 191,759
========= ======== ======== ======= ==========
---------------
* Includes undistributed net
investment income (loss) of: $ 87,783 $ 2,007 $ 10,633 $ 2,473 $ 14,444
========= ======== ======== ======= ==========
** Commencement of operations
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------
GROWTH AND
GROWTH INCOME
SUBACCOUNT SUBACCOUNT
------------- -----------------------------
FOR THE FOR THE
PERIOD PERIOD
JANUARY 4, FOR THE NINE JANUARY 11,
1999** MONTHS ENDED 1999**
THROUGH SEPTEMBER 30, THROUGH
DECEMBER 31, 2000 DECEMBER 31,
1999 (UNAUDITED) 1999
------------- ------------- -------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)..... $ (1,680) $ 512 $ (557)
Net realized gain (loss) on
investments.................... 4,825 9,954 12,833
Net change in unrealized
appreciation (depreciation) of
investments.................... 136,283 21,285 22,144
---------- -------- ---------
Net increase (decrease) in net
assets resulting from
operations....................... 139,428 31,751 34,420
---------- -------- ---------
From unit transactions:
Net proceeds from the issuance of
units.......................... 1,261,158 536,945 554,185
Net asset value of units redeemed
or used to meet contract
obligations.................... (95,150) (71,571) (150,597)
---------- -------- ---------
Net increase from unit
transactions..................... 1,166,008 465,374 403,588
---------- -------- ---------
Net increase in net assets......... 1,305,436 497,125 438,008
Net assets beginning of period..... 0 438,008 0
---------- -------- ---------
Net assets end of period*.......... $1,305,436 $935,133 $ 438,008
========== ======== =========
Unit transactions:
Units outstanding beginning of
period......................... 0 36,957 0
Units issued during the period... 113,122 45,736 49,867
Units redeemed during the
period......................... (8,488) (6,030) (12,910)
---------- -------- ---------
Units outstanding end of period.... 104,634 76,663 36,957
========== ======== =========
---------------
* Includes undistributed net
investment income (loss) of: $ (1,680) $ (45) $ (557)
========== ======== =========
** Commencement of operations
</TABLE>
See notes to financial statements.
F-10
<PAGE> 13
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------------------------
SMALL COMPANY EQUITY CAPITAL
GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------------- ----------------------------- -----------------------------
FOR THE FOR THE FOR THE
PERIOD PERIOD PERIOD
FOR THE NINE JANUARY 4, FOR THE NINE JANUARY 4, FOR THE NINE JANUARY 11,
MONTHS ENDED 1999** MONTHS ENDED 1999** MONTHS ENDED 1999**
SEPTEMBER 30, THROUGH SEPTEMBER 30, THROUGH SEPTEMBER 30, THROUGH
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).... $ 2,313 $ (231) $ 970 $ (177) $ 13,512 $ (192)
Net realized gain (loss) on
investments................... 14,056 2,611 (1,188) 656 13,104 2,342
Net change in unrealized
appreciation (depreciation) of
investments................... 19,787 49,025 11,467 185 (32,790) 41,691
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net
assets resulting from
operations...................... 36,156 51,405 11,249 664 (6,174) 43,841
-------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance
of units...................... 229,228 166,044 107,098 396,878 150,739 131,349
Net asset value of units
redeemed or used to meet
contract obligations.......... (19,972) (14,188) (44,913) (12,287) (23,490) (8,025)
-------- -------- -------- -------- -------- --------
Net increase from unit
transactions.................... 209,256 151,856 62,185 384,591 127,249 123,324
-------- -------- -------- -------- -------- --------
Net increase in net assets........ 245,412 203,261 73,434 385,255 121,075 167,165
Net assets beginning of period.... 203,261 0 385,255 0 167,165 0
-------- -------- -------- -------- -------- --------
Net assets end of period*......... $448,673 $203,261 $458,689 $385,255 $288,240 $167,165
======== ======== ======== ======== ======== ========
Unit transactions:
Units outstanding beginning of
period........................ 13,029 0 36,431 0 10,726 0
Units issued during the
period........................ 14,068 14,338 10,713 37,590 10,199 11,402
Units redeemed during the
period........................ (1,207) (1,309) (4,337) (1,159) (1,588) (676)
-------- -------- -------- -------- -------- --------
Units outstanding end of period... 25,890 13,029 42,807 36,431 19,337 10,726
======== ======== ======== ======== ======== ========
---------------
* Includes undistributed net
investment income (loss) of: $ 2,082 $ (231) $ 793 $ (177) $ 13,320 $ (192)
======== ======== ======== ======== ======== ========
** Commencement of operations
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------
MULTI-CAP
GROWTH BALANCED
SUBACCOUNT SUBACCOUNT
----------------------------- -------------
FOR THE FOR THE
PERIOD PERIOD
FOR THE NINE NOVEMBER 10, MAY 4, 2000**
MONTHS ENDED 1999** THROUGH
SEPTEMBER 30, THROUGH SEPTEMBER 30,
2000 DECEMBER 31, 2000
(UNAUDITED) 1999 (UNAUDITED)
------------- ------------- -------------
<S> <C> <C> <C>
From operations:
Net investment income (loss).... $ (298) $ (8) $ 692
Net realized gain (loss) on
investments................... 1,983 35 27
Net change in unrealized
appreciation (depreciation) of
investments................... (33,972) 4,849 (4,171)
-------- ------- --------
Net increase (decrease) in net
assets resulting from
operations...................... (32,287) 4,876 (3,452)
-------- ------- --------
From unit transactions:
Net proceeds from the issuance
of units...................... 325,252 39,067 131,414
Net asset value of units
redeemed or used to meet
contract obligations.......... (17,734) (238) (2,648)
-------- ------- --------
Net increase from unit
transactions.................... 307,518 38,829 128,766
-------- ------- --------
Net increase in net assets........ 275,231 43,705 125,314
Net assets beginning of period.... 43,705 0 0
-------- ------- --------
Net assets end of period*......... $318,936 $43,705 $125,314
======== ======= ========
Unit transactions:
Units outstanding beginning of
period........................ 3,425 0 0
Units issued during the
period........................ 26,188 3,445 13,057
Units redeemed during the
period........................ (1,462) (20) (262)
-------- ------- --------
Units outstanding end of period... 28,151 3,425 12,795
======== ======= ========
---------------
* Includes undistributed net
investment income (loss) of: $ (306) $ (8) $ 692
======== ======= ========
** Commencement of operations
</TABLE>
See notes to financial statements.
F-11
<PAGE> 14
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
--------------------------------------------
DREYFUS
DREYFUS SOCIALLY
STOCK RESPONSIBLE
INDEX GROWTH
SUBACCOUNT SUBACCOUNT
---------------------------- -------------
FOR THE
FOR THE PERIOD
PERIOD JANUARY 7,
FOR THE NINE NOVEMBER 10, 2000**
MONTHS ENDED 1999** THROUGH
SEPTEMBER 30, THROUGH SEPTEMBER 30,
2000 DECEMBER 31, 2000
(UNAUDITED) 1999 (UNAUDITED)
------------- ------------ -------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)..... $ 1,141 $ 306 $ (16)
Net realized gain (loss) on
investments.................... 8,891 27 114
Net change in unrealized
appreciation (depreciation) of
investments.................... (1,315) 1,237 261
--------- ------- -------
Net increase in net assets
resulting from operations........ 8,717 1,570 359
--------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 355,810 48,446 9,376
Net asset value of units redeemed
or used to meet contract
obligations.................... (138,704) (912) (2,150)
--------- ------- -------
Net increase from unit
transactions..................... 217,106 47,534 7,226
--------- ------- -------
Net increase in net assets......... 225,823 49,104 7,585
Net assets beginning of period..... 49,104 0 0
--------- ------- -------
Net assets end of period*.......... $ 274,927 $49,104 $ 7,585
========= ======= =======
Unit transactions:
Units outstanding beginning of
period......................... 4,587 0 0
Units issued during the period... 34,124 4,675 901
Units redeemed during the
period......................... (12,562) (88) (200)
--------- ------- -------
Units outstanding end of
period......................... 26,149 4,587 701
========= ======= =======
---------------
* Includes undistributed net
investment income (loss) of: $ 1,447 $ 306 $ (16)
========= ======= =======
** Commencement of operations
<CAPTION>
MONY CUSTOM ESTATE MASTER
---------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS
---------------------------------------------------------------------------
VIP III
VIP VIP II GROWTH
GROWTH CONTRA FUND OPPORTUNITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- -------------
FOR THE
FOR THE FOR THE PERIOD
PERIOD PERIOD JANUARY 7,
FOR THE NINE NOVEMBER 15, FOR THE NINE DECEMBER 8, 2000**
MONTHS ENDED 1999** MONTHS ENDED 1999** THROUGH
SEPTEMBER 30, THROUGH SEPTEMBER 30, THROUGH SEPTEMBER 30,
2000 DECEMBER 31, 2000 DECEMBER 31, 2000
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED)
------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)..... $ 19,460 $ 0 $ 4,562 $ (2) $ 509
Net realized gain (loss) on
investments.................... 1,601 0 (2,393) (3) (656)
Net change in unrealized
appreciation (depreciation) of
investments.................... (4,962) 163 (1,093) 650 (891)
--------- ------- -------- ------- -------
Net increase in net assets
resulting from operations........ 16,099 163 1,076 645 (1,038)
--------- ------- -------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 293,432 9,854 97,190 11,394 27,745
Net asset value of units redeemed
or used to meet contract
obligations.................... (129,362) (4) (7,044) (641) (4,618)
--------- ------- -------- ------- -------
Net increase from unit
transactions..................... 164,070 9,850 90,146 10,753 23,127
--------- ------- -------- ------- -------
Net increase in net assets......... 180,169 10,013 91,222 11,398 22,089
Net assets beginning of period..... 10,013 0 11,398 0 0
--------- ------- -------- ------- -------
Net assets end of period*.......... $ 190,182 $10,013 $102,620 $11,398 $22,089
========= ======= ======== ======= =======
Unit transactions:
Units outstanding beginning of
period......................... 899 0 1,075 0 0
Units issued during the period... 26,754 899 9,315 1,139 2,765
Units redeemed during the
period......................... (10,774) 0 (673) (64) (465)
--------- ------- -------- ------- -------
Units outstanding end of
period......................... 16,879 899 9,717 1,075 2,300
========= ======= ======== ======= =======
---------------
* Includes undistributed net
investment income (loss) of: $ 19,460 $ 0 $ 4,560 $ (2) $ 509
========= ======= ======== ======= =======
** Commencement of operations
</TABLE>
See notes to financial statements.
F-12
<PAGE> 15
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM ESTATE MASTER
------------------------------------------------------------------------------------------
JANUS ASPEN SERIES
------------------------------------------------------------------------------------------
AGGRESSIVE CAPITAL
GROWTH BALANCED APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE FOR THE FOR THE
PERIOD PERIOD PERIOD
FOR THE NINE DECEMBER 6, FOR THE NINE DECEMBER 6, FOR THE NINE NOVEMBER 10,
MONTHS ENDED 1999** MONTHS ENDED 1999** MONTHS ENDED 1999**
SEPTEMBER 30, THROUGH SEPTEMBER 30, THROUGH SEPTEMBER 30, THROUGH
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)..... $ 21,600 $ (1) $ 5,000 $ 132 $ 1,053 $ 1
Net realized gain (loss) on
investments.................... 321 4 1 0 1,069 1
Net change in unrealized
appreciation (depreciation) of
investments.................... (46,557) 425 (5,016) 382 (13,845) 259
-------- ------- ------- ------- -------- ------
Net increase in net assets
resulting from operations........ (24,636) 428 (15) 514 (11,723) 261
-------- ------- ------- ------- -------- ------
From unit transactions:
Net proceeds from the issuance of
units.......................... 520,045 10,287 52,061 12,929 297,295 1,062
Net asset value of units redeemed
or used to meet contract
obligations.................... (16,645) (71) (4,404) (704) (13,218) (11)
-------- ------- ------- ------- -------- ------
Net increase from unit
transactions..................... 503,400 10,216 47,657 12,225 284,077 1,051
-------- ------- ------- ------- -------- ------
Net increase in net assets......... 478,764 10,644 47,642 12,739 272,354 1,312
Net assets beginning of period..... 10,644 0 12,739 0 1,312 0
-------- ------- ------- ------- -------- ------
Net assets end of period*.......... $489,408 $10,644 $60,381 $12,739 $273,666 $1,312
======== ======= ======= ======= ======== ======
Unit transactions:
Units outstanding beginning of
period......................... 920 0 1,220 0 105 0
Units issued during the period... 43,233 927 4,987 1,290 23,127 106
Units redeemed during the
period......................... (1,414) (7) (421) (70) (1,055) (1)
-------- ------- ------- ------- -------- ------
Units outstanding end of
period......................... 42,739 920 5,786 1,220 22,177 105
======== ======= ======= ======= ======== ======
---------------
* Includes undistributed net
investment income (loss) of: $ 21,599 $ (1) $ 5,132 $ 132 $ 1,054 $ 1
======== ======= ======= ======= ======== ======
** Commencement of operations
<CAPTION>
MONY CUSTOM ESTATE MASTER
----------------------------
JANUS ASPEN SERIES
----------------------------
WORLDWIDE
GROWTH
SUBACCOUNT
----------------------------
FOR THE
PERIOD
FOR THE NINE NOVEMBER 30,
MONTHS ENDED 1999**
SEPTEMBER 30, THROUGH
2000 DECEMBER 31,
(UNAUDITED) 1999
------------- ------------
<S> <C> <C>
From operations:
Net investment income (loss)..... $ 10,959 $ (3)
Net realized gain (loss) on
investments.................... 850 9
Net change in unrealized
appreciation (depreciation) of
investments.................... (24,348) 1,647
-------- -------
Net increase in net assets
resulting from operations........ (12,539) 1,653
-------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 219,215 11,276
Net asset value of units redeemed
or used to meet contract
obligations.................... (12,724) (143)
-------- -------
Net increase from unit
transactions..................... 206,491 11,133
-------- -------
Net increase in net assets......... 193,952 12,786
Net assets beginning of period..... 12,786 0
-------- -------
Net assets end of period*.......... $206,738 $12,786
======== =======
Unit transactions:
Units outstanding beginning of
period......................... 1,107 0
Units issued during the period... 18,528 1,120
Units redeemed during the
period......................... (1,074) (13)
-------- -------
Units outstanding end of
period......................... 18,561 1,107
======== =======
---------------
* Includes undistributed net
investment income (loss) of: $ 10,956 $ (3)
======== =======
** Commencement of operations
</TABLE>
See notes to financial statements.
F-13
<PAGE> 16
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 (MONYEquity
Master, MONY Custom Equity Master and MONY Custom Estate Master) and Corporate
Sponsered Variable Universal Life insurance policies. These policies are issued
by MONY America, which is a wholly-owned subsidiary of MONY Life Insurance
Company ("MONY"). For presentation purposes, the information related only to the
Variable Universal Life Insurance policies (MONY Custom Estate Master) is
presented here.
There are twenty-five MONY Custom Estate Master Subaccounts within the
Variable Account, each of which invests only in a corresponding portfolio of the
MONY Series Fund, Inc. (the "Fund"), the Enterprise Accumulation Trust
("Enterprise"), Dreyfus Stock Index Fund, The Dreyfus Socially Responsible
Growth Fund, Inc., Fidelity Variable Insurance Products Funds, or Janus Aspen
Series (collectively, the "Funds"). during 1999. The Funds are registered under
the 1940 Act as an open end, diversified, management investment companies. The
Fund and Enterprise are affiliated with MONY.
A full presentation of the related financial statements and footnotes of
the Funds are contained on pages hereinafter and should be read in conjunction
with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
Investment:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset values are based upon market or fair
valuations of the securities held in each of the corresponding portfolios of the
Funds. For the money market portfolios, the net asset value is based on
amortized cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses on redemption of investments in the portfolios of the
Funds are determined on the identified cost basis. Dividend income is recorded
on ex-dividend date. Dividend income includes distributions of net investment
income and net realized capital gains received from the respective portfolios of
the Funds. Dividend income received is reinvested in additional shares of the
respective portfolios of the Funds.
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.
F-14
<PAGE> 17
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Based on this expectation, no charges are currently being deducted from the
Variable Account for Federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY America. A
surrender charge may be imposed by MONY America when a full or partial surrender
is requested by the policyholders. These deductions are treated as
contractholder redemptions by the Variable Account. The amount deducted for the
MONY Custom Estate Master subaccounts for the nine months ended September 30,
2000 aggregated $614,132.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 0.35% of the average daily net
assets of each of the MONY Custom Estate Master subaccounts. As investment
adviser to the Fund, it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to the portfolios of Enterprise, and it receives
amounts paid by Enterprise for those services.
4. INVESTMENT TRANSACTIONS:
Cost of shares acquired and proceeds from shares redeemed by each
subaccount during the nine months ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
MONY CUSTOM ESTATE MASTER SUBACCOUNTS SHARES ACQUIRED SHARES REDEEMED
------------------------------------- --------------- ---------------
<S> <C> <C>
MONY Series Fund, Inc.
Intermediate Term Bond Portfolio........................ $ 120,336 $ 83,396
Long Term Bond Portfolio................................ 130,924 85,627
Government Securities Portfolio......................... 52,740 28,410
Money Market Portfolio.................................. 1,643,231 1,278,961
Enterprise Accumulation Trust
Equity Portfolio........................................ 289,092 68,353
Small Company Value Portfolio........................... 197,995 55,701
Managed Portfolio....................................... 708,654 310,927
International Growth Portfolio.......................... 885,498 36,242
High Yield Bond Portfolio............................... 170,759 20,806
Growth Portfolio........................................ 1,714,031 696,846
Growth and Income Portfolio............................. 606,531 142,203
Small Company Growth Portfolio.......................... 241,674 32,866
Equity Income Portfolio................................. 187,973 126,462
</TABLE>
F-15
<PAGE> 18
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENT TRANSACTIONS: (CONTINUED)
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
MONY CUSTOM ESTATE MASTER SUBACCOUNTS SHARES ACQUIRED SHARES REDEEMED
------------------------------------- --------------- ---------------
<S> <C> <C>
Capital Appreciation Portfolio.......................... $ 171,221 $ 44,312
Multi-Cap Growth Subaccount............................. 350,538 43,202
Balanced Portfolio...................................... 131,414 2,659
Dreyfus
Stock Index Portfolio................................... 384,055 167,254
Socially Responsible Growth Portfolio................... 9,338 2,122
Fidelity Variable Insurance Products Funds
VIP Growth Portfolio.................................... 326,764 162,922
VIP II Contra Fund Portfolio............................ 116,493 26,424
VIP III Growth Opportunities Portfolio.................. 29,209 6,098
Janus Aspen Series
Aggressive Growth Portfolio............................. 527,301 24,019
Balanced Portfolio...................................... 53,363 5,764
Capital Appreciation Portfolio.......................... 329,960 46,051
Worldwide Growth Portfolio.............................. 262,402 55,993
</TABLE>
F-16
<PAGE> 19
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 $6,170.5
======== ========
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-17
<PAGE> 20
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
------ ------
($ 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-18
<PAGE> 21
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-19
<PAGE> 22
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) $322.4
==== ====== ====== ===== ======
</TABLE>
---------------
(1) Represents unrealized losses on investments, net of unrealized gains,
reclassification adjustments, and taxes.
See accompanying notes to unaudited interim condensed financial statements.
F-20
<PAGE> 23
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF CASH FLOWS
NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
--------- -------
($ 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-21
<PAGE> 24
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-22
<PAGE> 25
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-23
<PAGE> 26
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-24
