As filed with the Securities and Exchange Registration No. 33-76004*
Commission on June 25, 1996 Registration No. 811-4536
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
- -------------------------------------------------------------------------------
FORM S-6
POST-EFFECTIVE AMENDMENT NO. 5 TO REGISTRATION STATEMENT
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF UNIT INVESTMENT TRUSTS
REGISTERED ON FORM N-8B-2
- -------------------------------------------------------------------------------
Variable Life Account B of Aetna Life Insurance and Annuity Company
(Exact Name of Trust)
Aetna Life Insurance and Annuity Company
(Name of Depositor)
151 Farmington Avenue, RE4C, Hartford, Connecticut 06l56
(Complete Address of Depositor's Principal Executive Offices)
- -------------------------------------------------------------------------------
Susan E. Bryant, Counsel
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, RE4C, Hartford, Connecticut 06l56
(Name and Complete Address of Agent for Service)
- -------------------------------------------------------------------------------
[X] immediately upon filing pursuant to paragraph (b) of Rule 485
[ ] on ______________ pursuant to paragraph (b) of Rule 485
[ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485
[ ] on ______________ pursuant to paragraph (a)(1) of Rule 485
[ ] This post-effective amendment designates a new effective date for a
previously filed post-effective amendment
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, Registrant has
registered an indefinite number of securities under the Securities Act of 1933.
Registrant filed a Rule 24f-2 Notice for the fiscal year ended December 31, 1995
on February 29, 1996.
*Pursuant to Rule 429(a) under the Securities Act of 1933, Registrant has
included a combined prospectus under this Registration Statement which includes
all the information which would currently be required in a prospectus relating
to the securities covered by Registration Statement No. 33-02339.
<PAGE>
VARIABLE LIFE ACCOUNT B
OF
AETNA LIFE INSURANCE AND ANNUITY COMPANY
Cross Reference Sheet
Form N-8B-2
Item No. Part I (Prospectus dated May 1, 1996, as amended by
Supplement dated June 25, 1996)
1 Cover Page; Description of the Company and the Separate
Accounts
2 Cover Page; Description of the Company and the Separate
Accounts
3 Not Applicable
4 Not Applicable
5 Description of the Company and the Separate Accounts
6 Description of the Company and the Separate Accounts
7 Not Applicable
8 Financial Statements
9 Legal Matters
10 "What Choices Do You Make When You Buy a Policy?"; "What
Charges or Deductions Are Made Under the Policy?"; "Right to
Instruct Voting of Fund Shares"; "How Might Your Policy
Lapse?"; "How is the Value of Your Policy Computed?"; "What
is an Accumulation Unit, and How is it Calculated?"; "What
is the Maturity Value of Your Policy?"; "Can You Borrow on
Your Policy?"; "What is the "Free-Look Period"?"; "How will
the Death Benefit be Paid?"; "Settlement Options";
"Additional Information"; "Miscellaneous Contract
Provisions"
11 "What Choices Do You Make When You Buy a Policy?"
12 Not Applicable
13 "What Choices Do You Make When You Buy a Policy?"
14 Miscellaneous Contract Provisions
<PAGE>
Form N-8B-2
Item No. Part I (Prospectus)
15 "What Choices Do You Make When You Buy a Policy?"
16 "How is the Value of Your Policy Computed?"
17 "What is the Cash Surrender Value of Your Policy?"; "When
Does the Surrender Charge Apply?"
18 "What Choices Do You Make When You Buy a Policy?"; "What is
the Maturity Value of Your Policy?"; "What is the Cash
Surrender Value of Your Policy?"; "Can You Borrow on Your
Policy?"; "What is the "Free-Look Period"?"
19 Reports to Policy Owners; Right to Instruct Voting of Fund
Shares
20 Not Applicable
21 "Can You Borrow on Your Policy?"
22 Not Applicable
23 Directors and Officers of the Company
24 Miscellaneous Contract Provisions
25 The Company
26 Not Applicable
27 The Company
28 The Company; Directors and Officers of the Company
29 The Company
30 Not Applicable
31 Not Applicable
32 Not Applicable
33 Not Applicable
34 Not Applicable
<PAGE>
Form N-8B-2
Item No. Part I (Prospectus)
35 Additional Information
36 Not Applicable
37 Not Applicable
38 Additional Information
39 Not Applicable
40 Not Applicable
41 Not Applicable
42 Not Applicable
43 Not Applicable
44 "How is the Value of Your Policy Computed?"; "What is an
Accumulation Unit, and How is it Calculated?"
45 Not Applicable
46 Illustrations of Death Benefits, Total Account Values and
Cash Surrender Values for AetnaVest Policies; Illustrations
of Death Benefits, Total Account Values and Cash Surrender
Values for AetnaVest II Policies
47 "What Choices Do You Make When You Buy a Policy?"; "How is
the Value of Your Policy Computed?"
48 Not Applicable
49 Not Applicable
50 Not Applicable
51 Not Applicable
52 The Separate Account
53 Tax Matters
54 Not Applicable
<PAGE>
Form N-8B-2
Item No. Part I (Prospectus)
55 Not Applicable
56 Not Applicable
57 Not Applicable
58 Not Applicable
59 Financial Statements
<PAGE>
PART I
The Prospectus is incorporated into Part I of this Post-Effective Amendment No.
5 by reference to Post-Effective Amendment No. 4 to the Registration Statement
on Form S-6 (File No. 33-76004), as filed electronically on April 29, 1996.
However, a supplement to the Prospectus is included herein.
<PAGE>
AetnaVest I & AetnaVest II
Flexible Premium Variable Life Insurance Policies
VARIABLE LIFE ACCOUNT B
Aetna Life Insurance and Annuity Company
Supplement dated June 25, 1996 to the Prospectus dated May 1, 1996
At a June 17, 1996 Special Meeting of the shareholders of Aetna Variable
Fund, Aetna Income Shares, Aetna Investment Advisers Fund, Inc., Aetna Ascent
Variable Portfolio, Aetna Crossroads Variable Portfolio and Aetna Legacy
Variable Portfolio ("Funds"), shareholders of the respective Funds approved a
proposal to increase the advisory fees for each of the Funds effective August
1, 1996. Accordingly, this Supplement amends certain sections of the May 1, 1996
Prospectus (the "Prospectus") that are impacted by such change.
(bullet) The following section is added following the subsection entitled
"Insurance and Administrative Charges" on page 12 of the Prospectus:
Charges Assessed Against the Underlying Funds
The following table illustrates the investment advisory fees, other expenses
and total expenses paid by each of the Funds as a percentage of average net
assets based on figures for the year ended December 31, 1995:
<TABLE>
<CAPTION>
Advisory Fees(1) Other Expenses Total Fund
(after expense (after expense Annual
reimbursement) reimbursement) Expenses
------------- ------------- ----------
<S> <C> <C> <C>
Aetna Variable Fund (2) (3) 0.25% 0.06% 0.31%
Aetna Income Shares (2) (3) 0.25% 0.08% 0.33%
Aetna Variable Encore Fund (3) 0.25% 0.10% 0.35%
Aetna Investment Advisers Fund, Inc. (2) (3) 0.25% 0.08% 0.33%
Aetna Ascent Variable Portfolio (2) (3) 0.50% 0.15% 0.65%
Aetna Crossroads Variable Portfolio (2) (3) 0.50% 0.15% 0.65%
Aetna Legacy Variable Portfolio (2) (3) 0.50% 0.15% 0.65%
Alger American Small Cap Portfolio 0.85% 0.07% 0.92%
Fidelity VIP II Contrafund Portfolio (4) 0.61% 0.11% 0.72%
Fidelity VIP Equity-Income Portfolio 0.51% 0.10% 0.61%
Janus Aspen Aggressive Growth Portfolio (5) 0.75% 0.11% 0.86%
Janus Aspen Balanced Portfolio (5) 0.82% 0.55% 1.37%
Janus Aspen Growth Portfolio (5) 0.65% 0.13% 0.78%
Janus Aspen Short-Term Bond Portfolio (5) 0.00% 0.70% 0.70%
Janus Aspen Worldwide Growth Portfolio (5) 0.68% 0.22% 0.90%
Scudder International Portfolio Class A Shares 0.88% 0.20% 1.08%
TCI Growth (6) 1.00% 0.00% 1.00%
</TABLE>
(1) Certain of the unaffiliated Fund advisers reimburse the Company for
administrative costs incurred in connection with administering the Funds
as variable funding options under the Policy. These reimbursements are
paid out of the investment advisory fees and are not charged to investors.
(2) As of August 1, 1996, the Investment Advisory Fees and, consequently, the
Total Fund Annual Expenses for these Funds will change as follows: Aetna
Variable Fund--0.50% and 0.56%, respectively; Aetna Income Shares--0.40%
and 0.48%, respectively; Aetna Investment Advisers Fund, Inc.--0.50% and
0.58%, respectively; Aetna Ascent, Crossroads and Legacy Variable
Portfolios--0.60% and 0.75%, respectively.
(3) As of May 1, 1996, the Company provides administrative services to the Fund
and assumes the Fund's ordinary recurring direct costs under an
Administrative Services Agreement. The "Other Expenses" shown are not
based on figures for the year ended December 31, 1995, but reflect the fee
payable under this Agreement.
(4) A portion of the brokerage commissions the Fund paid was used to reduce its
expenses. Without this reduction, total operating expenses would have been
0.73% for the Contrafund Portfolio.
Form No. X76004.1 Page 1 June 1996
<PAGE>
(5) The information for each Portfolio is net of fee waivers or reductions from
Janus Capital. Fee reductions for the Aggressive Growth, Balanced, Growth
and Worldwide Growth Portfolios reduce the management fee to the level of
the corresponding Janus retail fund. Other waivers, if applicable, are
first applied against the management fee and then against other expenses.
Without such waivers or reductions, the Management Fee, Other Expenses and
Total Portfolio Operating Expenses would have been 0.82%, 0.11% and 0.93%
for Aggressive Growth Portfolio; 1.00%, 0.55% and 1.55% for Balanced
Portfolio; 0.85%, 0.13% and 0.98% for Growth Portfolio; 0.65%, 0.72% and
1.37% for Short-Term Bond Portfolio; and 0.87%, 0.22% and 1.09% for
Worldwide Growth Portfolio, respectively. Janus Capital may modify or
terminate the waivers or reductions at any time upon 90 days' notice to the
Portfolio's Board of Trustees.
(6) The Portfolio's investment adviser pays all expenses of the Portfolio
except brokerage commissions, taxes, interest, fees, expenses of the non-
interested person directors (including counsel fees) and extraordinary
expenses. These expenses have historically represented a very small
percentage (less than 0.01%) of total net assets in a fiscal year.
For further details on each Fund's expenses, please refer to that Fund's
prospectus.
(bullet) The following is added at the end of the section entitled "Directors
and Officers of the Company" on page 23 of the Prospectus:
Directors, officers and employees of the Company are covered by a blanket
fidelity bond in the amount of $60 million issued by Aetna Casualty and
Surety Company.
Form No. X76004.1 Page 2 June 1996
<PAGE>
(bullet) The following replaces Tables I through IV of Appendix A for
AetnaVest Policies contained on pages 30 through 33 of the
Prospectus. For the purposes of the illustrations, the advisory fees
used for the Aetna funds are the fees that will be effective beginning
August 1, 1996:
AetnaVest Policy
Table I
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
MALE ISSUE AGE 25
$408.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $100,000
DEATH BENEFIT OPTION 1
<TABLE>
<CAPTION>
Premiums Death Benefit
Accumulated Gross Annual Investment Total Account Value Cash Surrender Value
at Return of Annual Investment Return of Annual Investment Return of
Policy 5% Interest ------------------------------- ------------------------------- ------------------------------
Year Per Year Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12%
---------- ---------- -------- -------- --------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 408 100000 100000 100000 182 199 216 0 0 0
2 836 100000 100000 100000 365 411 459 17 63 111
3 1286 100000 100000 100000 547 634 729 199 286 381
4 1759 100000 100000 100000 728 869 1030 380 521 682
5 2254 100000 100000 100000 906 1115 1362 558 767 1014
6 2775 100000 100000 100000 1094 1384 1742 810 1100 1458
7 3322 100000 100000 100000 1275 1661 2157 1060 1446 1942
8 3896 100000 100000 100000 1451 1948 2614 1306 1803 2469
9 4499 100000 100000 100000 1619 2243 3113 1544 2168 3038
10 5132 100000 100000 100000 1779 2545 3657 1773 2539 3651
15 8804 100000 100000 100000 2426 4143 7229 2426 4143 7229
20 13491 100000 100000 100000 2731 5804 12757 2731 5804 12757
25 19473 100000 100000 100000 2497 7308 21306 2497 7308 21306
30 27107 100000 100000 100000 1442 8299 34720 1442 8299 34720
40 (Age 65) 49286 0 100000 111373 0 4485 91289 0 4485 91289
</TABLE>
(1) Assumes no Policy loan has been made. Current cost of insurance rates
assumed. Current mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those
illustrated.
These investment results are illustrative only and should not be considered a
representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be
different from those shown if the actual investment rates of return averaged
0%, 6%, and 12% over a period of years, but fluctuated above or below those
averages for individual Policy Years. No representations can be made that
these rates of return will definitely be achieved for any one year or
sustained over a period of time.
Form No. X76004.1 Page 3 June 1996
<PAGE>
AetnaVest Policy
Table II
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
MALE ISSUE AGE 25
$408.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $100,000
DEATH BENEFIT OPTION 1
<TABLE>
<CAPTION>
Premiums Death Benefit
Accumulated Gross Annual Investment Total Account Value Cash Surrender Value
at Return of Annual Investment Return of Annual Investment Return of
Policy 5% Interest ------------------------------- ------------------------------- ------------------------------
Year Per Year Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12%
---------- ---------- -------- -------- --------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 408 100000 100000 100000 181 198 216 0 0 0
2 836 100000 100000 100000 363 409 457 15 61 109
3 1286 100000 100000 100000 544 631 726 196 283 378
4 1759 100000 100000 100000 724 864 1024 376 516 676
5 2254 100000 100000 100000 900 1107 1353 552 759 1005
6 2775 100000 100000 100000 1085 1373 1728 801 1089 1444
7 3322 100000 100000 100000 1264 1647 2139 1049 1432 1924
8 3896 100000 100000 100000 1437 1929 2588 1292 1784 2443
9 4499 100000 100000 100000 1602 2219 3079 1527 2144 3004
10 5132 100000 100000 100000 1758 2515 3613 1752 2509 3607
15 8804 100000 100000 100000 2363 4045 7070 2363 4045 7070
20 13491 100000 100000 100000 2616 5596 12347 2616 5596 12347
25 19473 100000 100000 100000 2273 6877 20333 2273 6877 20333
30 27107 100000 100000 100000 1057 7505 32629 1057 7505 32629
40 (Age 65) 49286 0 100000 101201 0 1958 82952 0 1958 82952
</TABLE>
(1) Assumes no Policy loan has been made. Guaranteed cost of insurance rates
assumed. Maximum mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those
illustrated.
These investment results are illustrative only and should not be considered a
representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be
different from those shown if the actual investment rates of return averaged
0%, 6%, and 12% over a period of years, but fluctuated above or below those
averages for individual Policy Years. No representations can be made that
these rates of return will definitely be achieved for any one year or
sustained over a period of time.
Form No. X76004.1 Page 4 June 1996
<PAGE>
AetnaVest Policy
Table III
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
MALE ISSUE AGE 40
$744.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $100,000
DEATH BENEFIT OPTION 1
<TABLE>
<CAPTION>
Premiums Death Benefit
Accumulated Gross Annual Investment Total Account Value Cash Surrender Value
at Return of Annual Investment Return of Annual Investment Return of
Policy 5% Interest ------------------------------- ------------------------------- ------------------------------
Year Per Year Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12%
---------- ---------- -------- -------- --------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 744 100000 100000 100000 455 490 525 0 0 0
2 1525 100000 100000 100000 887 985 1088 214 312 415
3 2345 100000 100000 100000 1296 1486 1694 623 813 1021
4 3207 100000 100000 100000 1682 1993 2346 1009 1320 1673
5 4111 100000 100000 100000 2045 2504 3047 1372 1831 2374
6 5061 100000 100000 100000 2384 3020 3804 1835 2471 3255
7 6058 100000 100000 100000 2694 3534 4615 2279 3119 4200
8 7105 100000 100000 100000 2971 4044 5484 2691 3764 5204
9 8204 100000 100000 100000 3217 4549 6417 3071 4403 6271
10 9358 100000 100000 100000 3430 5046 7419 3419 5035 7408
15 16054 100000 100000 100000 3904 7326 13684 3904 7326 13684
20 24601 100000 100000 100000 2713 8424 22352 2713 8424 22352
25 35509 0 100000 100000 0 7308 34860 0 7308 34860
30 49431 0 100000 100000 0 2084 54214 0 2084 54214
25 (Age 65) 35509 0 100000 100000 0 7308 34860 0 7308 34860
</TABLE>
(1) Assumes no Policy loan has been made. Current cost of insurance rates
assumed. Current mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those
illustrated.
These investment results are illustrative only and should not be considered a
representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be
different from those shown if the actual investment rates of return averaged
0%, 6%, and 12% over a period of years, but fluctuated above or below those
averages for individual Policy Years. No representations can be made that
these rates of return will definitely be achieved for any one year or
sustained over a period of time.
Form No. X76004.1 Page 5 June 1996
<PAGE>
AetnaVest Policy
Table IV
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
MALE ISSUE AGE 40
$744.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $100,000
DEATH BENEFIT OPTION 1
<TABLE>
<CAPTION>
Premiums Death Benefit
Accumulated Gross Annual Investment Total Account Value Cash Surrender Value
at Return of Annual Investment Return of Annual Investment Return of
Policy 5% Interest ------------------------------- ------------------------------- ------------------------------
Year Per Year Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12%
---------- ---------- -------- -------- --------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 744 100000 100000 100000 451 486 522 0 0 0
2 1525 100000 100000 100000 877 976 1078 204 303 405
3 2345 100000 100000 100000 1279 1468 1674 606 795 1001
4 3207 100000 100000 100000 1653 1961 2310 980 1288 1637
5 4111 100000 100000 100000 2001 2455 2991 1328 1782 2318
6 5061 100000 100000 100000 2320 2945 3718 1771 2396 3169
7 6058 100000 100000 100000 2607 3431 4493 2192 3016 4078
8 7105 100000 100000 100000 2862 3910 5320 2582 3630 5040
9 8204 100000 100000 100000 3084 4380 6204 2938 4234 6058
10 9358 100000 100000 100000 3268 4838 7147 3257 4827 7136
15 16054 100000 100000 100000 3563 6826 12922 3563 6826 12922
20 24601 100000 100000 100000 2138 7456 20604 2138 7456 20604
25 35509 0 100000 100000 0 5275 30909 0 5275 30909
30 49431 0 0 100000 0 0 44530 0 0 44530
25 (Age 65) 35509 0 100000 100000 0 5275 30909 0 5275 30909
</TABLE>
(1) Assumes no Policy loan has been made. Guaranteed cost of insurance rates
assumed. Maximum mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those
illustrated.
These investment results are illustrative only and should not be considered a
representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be
different from those shown if the actual investment rates of return averaged
0%, 6%, and 12% over a period of years, but fluctuated above or below those
averages for individual Policy Years. No representations can be made that
these rates of return will definitely be achieved for any one year or
sustained over a period of time.
Form No. X76004.1 Page 6 June 1996
<PAGE>
(bullet) The following replaces Tables V through XII of Appendix B for
AetnaVest II Policies contained on pages 35 through 42 of the
Prospectus:
AetnaVest II Policy
Table V
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
MALE ISSUE AGE 35
$1410.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $250,000
DEATH BENEFIT OPTION 1
<TABLE>
<CAPTION>
Premiums Death Benefit
Accumulated Gross Annual Investment Total Account Value Cash Surrender Value
at Return of Annual Investment Return of Annual Investment Return of
Policy 5% Interest ------------------------------- ------------------------------- ------------------------------
Year Per Year Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12%
---------- ---------- -------- -------- --------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1410 250000 250000 250000 684 745 805 0 0 0
2 2891 250000 250000 250000 1517 1686 1864 167 336 514
3 4445 250000 250000 250000 2309 2642 3005 959 1292 1655
4 6077 250000 250000 250000 3060 3611 4235 1710 2261 2885
5 7791 250000 250000 250000 3766 4588 5558 2416 3238 4208
6 9591 250000 250000 250000 4425 5572 6981 3199 4346 5755
7 11480 250000 250000 250000 5040 6566 8519 3949 5475 7428
8 13464 250000 250000 250000 5605 7563 10177 4649 6607 9221
9 15547 250000 250000 250000 6121 8563 11967 5300 7742 11146
10 17735 250000 250000 250000 6584 9562 13899 5898 8876 13213
15 30426 250000 250000 250000 7919 14329 26074 7908 14318 26063
20 46623 250000 250000 250000 7139 18054 43885 7139 18054 43885
25 67295 250000 250000 250000 3623 19739 70798 3623 19739 70798
30 93679 0 250000 250000 0 17716 113101 0 17716 113101
30 (Age 65) 93679 0 250000 250000 0 17716 113101 0 17716 113101
</TABLE>
(1) Assumes no Policy loan has been made. Current cost of insurance rates
assumed. Current mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those
illustrated.
These investment results are illustrative only and should not be considered a
representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be
different from those shown if the actual investment rates of return averaged
0%, 6%, and 12% over a period of years, but fluctuated above or below those
averages for individual Policy Years. No representations can be made that
these rates of return will definitely be achieved for any one year or
sustained over a period of time.
Form No. X76004.1 Page 7 June 1996
<PAGE>
AetnaVest II Policy
Table VI
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
MALE ISSUE AGE 35
$1410.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $250,000
DEATH BENEFIT OPTION 1
<TABLE>
<CAPTION>
Premiums Death Benefit
Accumulated Gross Annual Investment Total Account Value Cash Surrender Value
at Return of Annual Investment Return of Annual Investment Return of
Policy 5% Interest ------------------------------- ------------------------------- ------------------------------
Year Per Year Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12%
---------- ---------- -------- -------- --------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1410 250000 250000 250000 645 704 762 0 0 0
2 2891 250000 250000 250000 1437 1600 1770 87 250 420
3 4445 250000 250000 250000 2186 2504 2851 836 1154 1501
4 6077 250000 250000 250000 2892 3416 4010 1542 2066 2660
5 7791 250000 250000 250000 3549 4330 5250 2199 2980 3900
6 9591 250000 250000 250000 4158 5243 6577 2932 4017 5351
7 11480 250000 250000 250000 4712 6150 7993 3621 5059 6902
8 13464 250000 250000 250000 5213 7050 9507 4257 6094 8551
9 15547 250000 250000 250000 5653 7936 11122 4832 7115 10301
10 17735 250000 250000 250000 6035 8807 12850 5349 8121 12164
15 30426 250000 250000 250000 6868 12675 23375 6857 12664 23364
20 46623 250000 250000 250000 5274 14826 37767 5274 14826 37767
25 67295 0 250000 250000 0 12768 56817 0 12768 56817
30 93679 0 250000 250000 0 1986 81800 0 1986 81800
30 (Age 65) 93679 0 250000 250000 0 1986 81800 0 1986 81800
</TABLE>
(1) Assumes no Policy loan has been made. Guaranteed cost of insurance rates
assumed. Maximum mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those
illustrated.
These investment results are illustrative only and should not be considered a
representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be
different from those shown if the actual investment rates of return averaged
0%, 6%, and 12% over a period of years, but fluctuated above or below those
averages for individual Policy Years. No representations can be made that
these rates of return will definitely be achieved for any one year or
sustained over a period of time.
Form No. X76004.1 Page 8 June 1996
<PAGE>
AetnaVest II Policy
Table VII
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
MALE ISSUE AGE 55
$4380.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $250,000
DEATH BENEFIT OPTION 1
<TABLE>
<CAPTION>
Premiums Death Benefit
Accumulated Gross Annual Investment Total Account Value Cash Surrender Value
at Return of Annual Investment Return of Annual Investment Return of
Policy 5% Interest ------------------------------- ------------------------------- ------------------------------
Year Per Year Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12%
---------- ---------- -------- -------- --------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4380 250000 250000 250000 2269 2462 2656 0 0 0
2 8979 250000 250000 250000 4572 5106 5666 1116 1650 2210
3 13808 250000 250000 250000 6727 7756 8878 3271 4300 5422
4 18878 250000 250000 250000 8734 10409 12314 5278 6953 8858
5 24202 250000 250000 250000 10586 13059 15991 7130 9603 12535
6 29792 250000 250000 250000 12275 15696 19931 9136 12557 16792
7 35662 250000 250000 250000 13795 18315 24156 11001 15521 21362
8 41825 250000 250000 250000 15133 20900 28692 12685 18452 26244
9 48296 250000 250000 250000 16274 23437 33561 14172 21335 31459
10 55091 250000 250000 250000 17176 25882 38766 15419 24125 37009
15 94514 250000 250000 250000 17009 35451 70610 16980 35422 70581
20 144829 250000 250000 250000 6551 37761 118248 6551 37761 118248
25 209045 0 250000 250000 0 22193 196972 0 22193 196972
30 291002 0 0 359285 0 0 342176 0 0 342176
10 (Age 65) 55091 250000 250000 250000 17176 25882 38766 15419 24125 37009
</TABLE>
(1) Assumes no Policy loan has been made. Current cost of insurance rates
assumed. Current mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those
illustrated.
These investment results are illustrative only and should not be considered a
representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be
different from those shown if the actual investment rates of return averaged
0%, 6%, and 12% over a period of years, but fluctuated above or below those
averages for individual Policy Years. No representations can be made that
these rates of return will definitely be achieved for any one year or
sustained over a period of time.
Form No. X76004.1 Page 9 June 1996
<PAGE>
AetnaVest II Policy
Table VIII
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
MALE ISSUE AGE 55
$4380.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $250,000
DEATH BENEFIT OPTION 1
<TABLE>
<CAPTION>
Premiums Death Benefit
Accumulated Gross Annual Investment Total Account Value Cash Surrender Value
at Return of Annual Investment Return of Annual Investment Return of
Policy 5% Interest ------------------------------- ------------------------------- ------------------------------
Year Per Year Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12%
---------- ---------- -------- -------- --------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4380 250000 250000 250000 1890 2067 2246 0 0 0
2 8979 250000 250000 250000 3736 4214 4716 280 758 1260
3 13808 250000 250000 250000 5352 6249 7233 1896 2793 3777
4 18878 250000 250000 250000 6726 8155 9791 3270 4699 6335
5 24202 250000 250000 250000 7834 9899 12368 4378 6443 8912
6 29792 250000 250000 250000 8654 11448 14943 5515 8309 11804
7 35662 250000 250000 250000 9158 12762 17491 6364 9968 14697
8 41825 250000 250000 250000 9308 13791 19970 6860 11343 17522
9 48296 250000 250000 250000 9055 14471 22332 6953 12369 20230
10 55091 250000 250000 250000 8350 14731 24517 6593 12974 22760
15 94514 0 250000 250000 0 7055 30532 0 7026 30503
20 144829 0 0 250000 0 0 15785 0 0 15785
25 209045 0 0 0 0 0 0 0 0 0
30 291002 0 0 0 0 0 0 0 0 0
10 (Age 65) 55091 250000 250000 250000 8350 14731 24517 6593 12974 22760
</TABLE>
(1) Assumes no Policy loan has been made. Guaranteed cost of insurance rates
assumed. Maximum mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those
illustrated.
These investment results are illustrative only and should not be considered a
representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be
different from those shown if the actual investment rates of return averaged
0%, 6%, and 12% over a period of years, but fluctuated above or below those
averages for individual Policy Years. No representations can be made that
these rates of return will definitely be achieved for any one year or
sustained over a period of time.
Form No. X76004.1 Page 10 June 1996
<PAGE>
AetnaVest II Policy
Table IX
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
UNISEX ISSUE AGE 35
$1350.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $250,000
DEATH BENEFIT OPTION 1
<TABLE>
<CAPTION>
Premiums Death Benefit
Accumulated Gross Annual Investment Total Account Value Cash Surrender Value
at Return of Annual Investment Return of Annual Investment Return of
Policy 5% Interest ------------------------------- ------------------------------- ------------------------------
Year Per Year Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12%
---------- ---------- -------- -------- --------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1350 250000 250000 250000 639 697 754 0 0 0
2 2768 250000 250000 250000 1426 1586 1755 136 296 465
3 4256 250000 250000 250000 2175 2490 2833 885 1200 1543
4 5819 250000 250000 250000 2882 3402 3992 1592 2112 2702
5 7460 250000 250000 250000 3543 4320 5236 2253 3030 3946
6 9183 250000 250000 250000 4159 5242 6573 2987 4070 5401
7 10992 250000 250000 250000 4729 6168 8012 3686 5125 6969
8 12891 250000 250000 250000 5249 7094 9560 4335 6180 8646
9 14886 250000 250000 250000 5721 8020 11228 4936 7235 10443
10 16980 250000 250000 250000 6140 8942 13026 5484 8286 12370
15 29131 250000 250000 250000 7392 13400 24426 7381 13389 24415
20 44639 250000 250000 250000 6847 17078 41293 6847 17078 41293
25 64432 250000 250000 250000 3866 19033 66869 3866 19033 66869
30 89692 0 250000 250000 0 17545 106823 0 17545 106823
30 (Age 65) 89692 0 250000 250000 0 17545 106823 0 17545 106823
</TABLE>
(1) Assumes no Policy loan has been made. Current cost of insurance rates
assumed. Current mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those
illustrated.
These investment results are illustrative only and should not be considered a
representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be
different from those shown if the actual investment rates of return averaged
0%, 6%, and 12% over a period of years, but fluctuated above or below those
averages for individual Policy Years. No representations can be made that
these rates of return will definitely be achieved for any one year or
sustained over a period of time.
Form No. X76004.1 Page 11 June 1996
<PAGE>
AetnaVest II Policy
Table X
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
UNISEX ISSUE AGE 35
$1350.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $250,000
DEATH BENEFIT OPTION 1
<TABLE>
<CAPTION>
Premiums Death Benefit
Accumulated Gross Annual Investment Total Account Value Cash Surrender Value
at Return of Annual Investment Return of Annual Investment Return of
Policy 5% Interest ------------------------------- ------------------------------- ------------------------------
Year Per Year Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12%
---------- ---------- -------- -------- --------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1350 250000 250000 250000 602 658 713 0 0 0
2 2768 250000 250000 250000 1349 1503 1665 59 213 375
3 4256 250000 250000 250000 2057 2358 2686 767 1068 1396
4 5819 250000 250000 250000 2719 3215 3776 1429 1925 2486
5 7460 250000 250000 250000 3335 4072 4941 2045 2782 3651
6 9183 250000 250000 250000 3903 4926 6185 2731 3754 5013
7 10992 250000 250000 250000 4416 5771 7509 3373 4728 6466
8 12891 250000 250000 250000 4879 6609 8925 3965 5695 8011
9 14886 250000 250000 250000 5282 7430 10431 4497 6645 9646
10 16980 250000 250000 250000 5630 8236 12041 4974 7580 11385
15 29131 250000 250000 250000 6338 11774 21808 6327 11763 21797
20 44639 250000 250000 250000 4761 13654 35089 4761 13654 35089
25 64432 0 250000 250000 0 11623 52591 0 11623 52591
30 89692 0 250000 250000 0 1690 75435 0 1690 75435
30 (Age 65) 89692 0 250000 250000 0 1690 75435 0 1690 75435
</TABLE>
(1) Assumes no Policy loan has been made. Guaranteed cost of insurance rates
assumed. Maximum mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those
illustrated.
These investment results are illustrative only and should not be considered a
representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be
different from those shown if the actual investment rates of return averaged
0%, 6%, and 12% over a period of years, but fluctuated above or below those
averages for individual Policy Years. No representations can be made that
these rates of return will definitely be achieved for any one year or
sustained over a period of time.
Form No. X76004.1 Page 12 June 1996
<PAGE>
AetnaVest II Policy
Table XI
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
UNISEX ISSUE AGE 55
$4,200.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $250,000
DEATH BENEFIT OPTION 1
<TABLE>
<CAPTION>
Premiums Death Benefit
Accumulated Gross Annual Investment Total Account Value Cash Surrender Value
at Return of Annual Investment Return of Annual Investment Return of
Policy 5% Interest ------------------------------- ------------------------------- ------------------------------
Year Per Year Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12%
---------- ---------- -------- -------- --------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4200 250000 250000 250000 2250 2438 2626 0 0 0
2 8610 250000 250000 250000 4533 5054 5601 1221 1742 2289
3 13241 250000 250000 250000 6683 7690 8789 3371 4378 5477
4 18103 250000 250000 250000 8687 10331 12199 5375 7019 8887
5 23208 250000 250000 250000 10538 12969 15849 7226 9657 12537
6 28568 250000 250000 250000 12231 15597 19760 9223 12589 16752
7 34196 250000 250000 250000 13760 18212 23959 11083 15535 21282
8 40106 250000 250000 250000 15113 20799 28468 12767 18453 26122
9 46312 250000 250000 250000 16282 23348 33317 14267 21333 31302
10 52827 250000 250000 250000 17229 25822 38513 15545 24138 36829
15 90630 250000 250000 250000 17629 35907 70573 17601 35879 70545
20 138877 250000 250000 250000 8241 39324 118603 8241 39324 118603
25 200454 0 250000 250000 0 27042 198168 0 27042 198168
30 279043 0 0 360760 0 0 343581 0 0 343581
10 (Age 65) 52827 250000 250000 250000 17229 25822 38513 15545 24138 36829
</TABLE>
(1) Assumes no Policy loan has been made. Current cost of insurance rates
assumed. Current mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those
illustrated.
These investment results are illustrative only and should not be considered a
representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be
different from those shown if the actual investment rates of return averaged
0%, 6%, and 12% over a period of years, but fluctuated above or below those
averages for individual Policy Years. No representations can be made that
these rates of return will definitely be achieved for any one year or
sustained over a period of time.
Form No. X76004.1 Page 13 June 1996
<PAGE>
AetnaVest II Policy
Table XII
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
UNISEX ISSUE AGE 55
$4,200.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $250,000
DEATH BENEFIT OPTION 1
<TABLE>
<CAPTION>
Premiums Death Benefit
Accumulated Gross Annual Investment Total Account Value Cash Surrender Value
at Return of Annual Investment Return of Annual Investment Return of
Policy 5% Interest ------------------------------- ------------------------------- ------------------------------
Year Per Year Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12%
---------- ---------- -------- -------- --------- -------- -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 4200 250000 250000 250000 1806 1976 2147 0 0 0
2 8610 250000 250000 250000 3589 4046 4527 277 734 1215
3 13241 250000 250000 250000 5157 6018 6961 1845 2706 3649
4 18103 250000 250000 250000 6505 7878 9448 3193 4566 6136
5 23208 250000 250000 250000 7620 9606 11979 4308 6294 8667
6 28568 250000 250000 250000 8474 11166 14531 5466 8158 11523
7 34196 250000 250000 250000 9044 12524 17083 6367 9847 14406
8 40106 250000 250000 250000 9292 13631 19599 6946 11285 17253
9 46312 250000 250000 250000 9168 14424 22028 7153 12409 20013
10 52827 250000 250000 250000 8626 14838 24321 6942 13154 22637
15 90630 0 250000 250000 0 8951 31924 0 8923 31896
20 138877 0 0 250000 0 0 22969 0 0 22969
25 200454 0 0 0 0 0 0 0 0 0
30 279043 0 0 0 0 0 0 0 0 0
10 (Age 65) 52827 250000 250000 250000 8626 14838 24321 6942 13154 22637
</TABLE>
(1) Assumes no Policy loan has been made. Guaranteed cost of insurance rates
assumed. Maximum mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those
illustrated.
These investment results are illustrative only and should not be considered a
representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be
different from those shown if the actual investment rates of return averaged
0%, 6%, and 12% over a period of years, but fluctuated above or below those
averages for individual Policy Years. No representations can be made that
these rates of return will definitely be achieved for any one year or
sustained over a period of time.
Form No. X76004.1 Page 14 June 1996
<PAGE>
(bullet) The following March 31, 1996 unaudited financial statements
supplement the December 31, 1995 audited financial statements of the
Separate Account contained in the Prospectus:
Variable Life Account B
Statement of Assets and Liabilities--March 31, 1996 (Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at net asset value: (Note 1)
Aetna Variable Fund; 2,467,158 shares at $30.77 per share (cost $71,754,094) $ 75,925,713
Aetna Income Shares; 924,931 shares at $12.80 per share (cost $11,848,313) 11,842,332
Aetna Variable Encore Fund; 407,333 shares at $13.47 per share (cost $5,308,191) 5,487,776
Aetna Investment Advisers Fund, Inc.; 817,516 shares at $14.87 per share (cost
$10,896,769) 12,155,981
Alger American Fund--Alger American Small Capitalization Portfolio; 172,781 shares at
$40.87 per share (cost $6,331,268) 7,061,577
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio; 86,791 shares at $19.20 per share (cost $1,651,470) 1,666,395
Growth Portfolio; 50,994 shares at $28.61 per share (cost $1,514,593) 1,458,950
Overseas Portfolio; 34,096 shares at $17.26 per share (cost $559,505) 588,494
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio; 130,336 shares at $15.21 per share (cost $1,969,788) 1,982,408
Contrafund Portfolio; 113,588 shares at $14.26 per share (cost $1,562,790) 1,619,768
Janus Aspen Series:
Aggressive Growth Portfolio; 230,297 shares at $18.70 per share (cost $3,607,738) 4,306,556
Balanced Portfolio; 159,805 shares at $13.55 per share (cost $2,084,064) 2,165,357
Growth Portfolio; 219,229 shares at $14.58 per share (cost $2,795,446) 3,196,358
Short-Term Bond Portfolio; 35,353 shares at $10.00 per share (cost $349,724) 353,526
Worldwide Growth Portfolio; 145,028 shares at $16.62 per share (cost $2,048,610) 2,410,364
Scudder Variable Life Investment Fund--International Portfolio; 638,445 shares at $12.09
per share (cost $7,135,942) 7,718,801
TCI Portfolios, Inc.--TCI Growth; 518,429 shares at $12.04 per share (cost $5,285,516) 6,241,887
------------
NET ASSETS $146,182,243
============
</TABLE>
Net assets represented by:
<TABLE>
<CAPTION>
Accumulation
Unit
Policyholders' account values: Units Value
----------- -----------
<S> <C> <C> <C>
Aetna Variable Fund:
AetnaVest 1,595,062.3 $29.954 $47,777,753
AetnaVest II 774,062.0 16.726 12,947,337
AetnaVest Plus 998,417.0 14.053 14,030,849
Corporate Specialty Market 92,142.8 12.695 1,169,774
Aetna Income Shares:
AetnaVest 293,192.0 20.928 6,136,014
AetnaVest II 87,325.2 14.071 1,228,739
AetnaVest Plus 115,930.9 11.267 1,306,250
Corporate Specialty Market 291,606.5 10.875 3,171,329
</TABLE>
See Notes to Financial
Statements.
Form No. X76004.1 Page 15 June 1996
<PAGE>
Variable Life Account B
<TABLE>
<CAPTION>
Accumulation
Unit
Policyholders' account values: Units Value
--------- -----------
<S> <C> <C> <C>
Aetna Variable Encore Fund:
AetnaVest 200,179.5 $16.060 $3,214,875
AetnaVest II 10,560.9 11.739 123,976
AetnaVest Plus 88,112.2 11.033 972,120
Corporate Specialty Market 111,493.2 10.555 1,176,805
Aetna Investment Advisers Fund, Inc.:
AetnaVest 114,756.9 15.740 1,806,290
AetnaVest II 229,085.2 15.915 3,646,002
AetnaVest Plus 384,450.3 13.347 5,131,406
Corporate Specialty Market 135,310.5 11.620 1,572,283
Alger American Fund--Alger American
Small Capitalization Portfolio:
AetnaVest 67,956.4 16.098 1,093,995
AetnaVest II 45,569.5 16.100 733,667
AetnaVest Plus 182,354.1 16.091 2,934,300
Corporate Specialty Market 173,686.5 13.240 2,299,615
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Corporate Specialty Market 144,783.0 11.510 1,666,395
Growth Portfolio:
Corporate Specialty Market 140,028.4 10.419 1,458,950
Overseas Portfolio:
Corporate Specialty Market 56,713.0 10.377 588,494
Fidelity Investments Variable Insurance Products Fund
II:
Asset Manager Portfolio:
Corporate Specialty Market 182,159.0 10.883 1,982,408
Contrafund Portfolio:
Corporate Specialty Market 150,594.8 10.756 1,619,768
Janus Aspen Series:
Aggressive Growth Portfolio:
AetnaVest 44,341.1 16.507 731,925
AetnaVest II 32,308.6 16.507 533,308
AetnaVest Plus 133,290.2 16.507 2,200,190
Corporate Specialty Market 67,915.0 12.385 841,133
Balanced Portfolio:
AetnaVest 6,564.3 12.595 82,678
AetnaVest II 2,834.5 12.693 35,980
AetnaVest Plus 51,133.8 12.589 643,741
Corporate Specialty Market 127,076.1 11.040 1,402,958
See Notes to Financial Statements.
Form No. X76004.1 Page 16 June 1996
<PAGE>
Variable Life Account B
Growth Portfolio:
AetnaVest 26,102.4 $13.737 $ 358,569
AetnaVest II 38,815.5 13.725 532,724
AetnaVest Plus 74,124.0 11.279 836,024
Corporate Specialty Market 107,189.1 13.705 1,469,041
Short-Term Bond Portfolio:
AetnaVest 1,296.7 10.907 14,143
AetnaVest II 20,289.0 10.895 221,049
AetnaVest Plus 10,739.7 10.866 116,692
Corporate Specialty Market 162.4 10.114 1,642
Worldwide Growth Portfolio:
AetnaVest 35,204.8 13.871 488,314
AetnaVest II 26,623.3 13.874 369,385
AetnaVest Plus 91,702.5 13.857 1,270,741
Corporate Specialty Market 24,710.9 11.409 281,924
Scudder Variable Life Investment Fund--International
Portfolio:
AetnaVest 136,306.8 13.360 1,821,019
AetnaVest II 75,216.9 13.277 998,681
AetnaVest Plus 318,410.2 13.203 4,204,079
Corporate Specialty Market 62,821.5 11.063 695,022
TCI Portfolios, Inc.--TCI Growth:
AetnaVest 94,052.6 13.193 1,240,859
AetnaVest II 34,581.5 13.252 458,286
AetnaVest Plus 302,971.3 13.072 3,960,295
Corporate Specialty Market 48,720.2 11.955 582,447
------------
$146,182,243
============
</TABLE>
See Notes to Financial Statements.
Form No. X76004.1 Page 17 June 1996
<PAGE>
Variable Life Account B
Statement of Operations--Three Month Period Ended March 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends: (Notes 1 and 3)
Fidelity Investments Variable Insurance Products Fund--
Equity-Income Portfolio $ 19,619
Fidelity Investments Variable Insurance Products Fund--
Growth Portfolio 85,627
Fidelity Investments Variable Insurance Products Fund--
Overseas Portfolio 14,172
Fidelity Investments Variable Insurance Products Fund II--
Asset Manager Portfolio 62,788
Fidelity Investments Variable Insurance Products Fund II--
Contrafund Portfolio 10,199
Scudder Variable Life Investment Fund--International
Portfolio 166,996
----------
Total investment income 359,401
Valuation period deductions (Note 2) (216,034)
----------
Net investment income 143,367
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on sales of investments: (Notes 1 and 4)
Proceeds from sales $3,428,998
Cost of investments sold 3,005,963
----------
Net realized gain 423,035
Net unrealized gain on investments:
Beginning of period 4,391,574
End of period 9,478,418
----------
Net unrealized gain 5,086,844
----------
Net realized and unrealized gain on investments 5,509,879
----------
Net increase in net assets resulting from operations $5,653,246
==========
</TABLE>
See Notes to Financial Statements.
Form No. X76004.1 Page 18 June 1996
<PAGE>
Variable Life Account B
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Three Months
Ended Year Ended
March 31, 1996 December 31,
(Unaudited) 1995
------------------------------------------------- --------------- ----------------
FROM OPERATIONS:
<S> <C> <C>
Net investment income $ 143,367 $ 11,815,436
Net realized and unrealized gain on investments 5,509,879 11,633,204
--------------- ----------------
Net increase in net assets resulting from
operations 5,653,246 23,448,640
--------------- ----------------
FROM UNIT TRANSACTIONS:
Variable life premium payments 21,128,211 44,310,537
Sales charges deducted by the Company (632,971) (1,381,985)
Premiums allocated to the fixed account (1,644,459) (3,260,098)
--------------- ----------------
Net premiums allocated to the variable account 18,850,781 39,668,454
Transfers from the Company for monthly deductions (3,306,575) (11,297,188)
Redemptions by policyholders (1,152,122) (3,238,332)
Transfers on account for policy loans (422,131) (2,076,373)
Other 43,265 41,863
--------------- ----------------
Net increase in net assets from unit
transactions 14,013,218 23,098,424
--------------- ----------------
Change in net assets 19,666,464 46,547,064
NET ASSETS:
Beginning of period 126,515,779 79,968,715
--------------- ----------------
End of period $146,182,243 $126,515,779
=============== ================
</TABLE>
See Notes to Financial Statements.
Form No. X76004.1 Page 19 June 1996
<PAGE>
Variable Life Account B
Notes to Financial Statements--March 31, 1996 (Unaudited)
1. Summary of Significant Accounting Policies
Variable Life Account B ("Account") is registered under the Investment
Company Act of 1940 as a unit investment trust. The Account is sold
exclusively for use with life insurance product contracts as defined under
the Internal Revenue Code of 1986, as amended.
The accompanying financial statements of the Account have been prepared in
accordance with generally accepted accounting principles.
a. Valuation of Investments
Investments in the following Funds are stated at the closing net asset
value per share as determined by each Fund on March 31, 1996
Aetna Variable Fund
Aetna Income Shares
Aetna Variable Encore Fund
Aetna Investment Advisers Fund, Inc.
Alger American Fund--Alger American Small
Capitalization Portfolio
Fidelity Investments Variable Insurance Products
Fund--
(bullet) Equity-Income Portfolio
(bullet) Growth Portfolio
(bullet) Overseas Portfolio
Fidelity Investments Variable Insurance Products
Fund II--
(bullet) Asset Manager Portfolio
(bullet) Contrafund Portfolio
Janus Aspen Series--
(bullet) Aggressive Growth Portfolio
(bullet) Balanced Portfolio
(bullet) Growth Portfolio
(bullet) Short-Term Bond Portfolio
(bullet) Worldwide Growth Portfolio
Scudder Variable Life Investment Fund--
International Portfolio
TCI Portfolios, Inc.--TCI Growth
b. Other
Investment transactions are accounted for on a trade date basis and
dividend income is recorded on the ex-dividend date. The cost of investments
sold is determined by specific identification.
c. Federal Income Taxes
The operations of the Account form a part of, and are taxed with, the total
operations of Aetna Life Insurance and Annuity Company ("Company") which is
taxed as a life insurance company under the Internal Revenue Code of 1986,
as amended.
2. Valuation Period Deductions
Deductions by the Account for mortality and expense risk charges are made in
accordance with the terms of the policies and are paid to the Company.
Form No. X76004.1 Page 20 June 1996
<PAGE>
Variable Life Account B
Notes to Financial Statements--March 31, 1996 (Unaudited) (continued)
3. Dividend Distributions
On an annual basis the Funds distribute substantially all of their taxable
income and realized capital gains to their shareholders. Distributions paid
to the Account are automatically reinvested in shares of the Funds. The
Account's proportionate share of each Fund's undistributed net investment
income and accumulated net realized gain on investments is included in net
unrealized gain on investments in the Statement of Operations.
4. Purchases and Sales of Investments
The cost of purchases and proceeds from sales of investments other than
short-term investments for the three month period ended March 31, 1996
aggregated $17,583,396 and $3,428,998, respectively.
5. Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect amounts reported therein. Although actual results could differ
from these estimates, any such differences are expected to be immaterial to
the net assets of the Account.
Form No. X76004.1 Page 21 June 1996
<PAGE>
(bullet) The following March 31, 1996 unaudited financial statements
supplement the December 31, 1995 audited financial statements of
Aetna Life Insurance and Annuity Company contained in the
Prospectus:
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Services, Inc.)
Consolidated Statements of Income
(millions)
(Unaudited)
<TABLE>
<CAPTION>
3 Months Ended
March 31,
--------------
1996 1995
----- ------
<S> <C> <C>
Revenue:
Premiums $ 14.1 $ 32.2
Charges assessed against policyholders 92.0 74.9
Net investment income 257.6 235.8
Net realized capital gains 14.9 5.1
Other income 12.2 12.7
----- ------
Total revenue 390.8 360.7
----- ------
Benefits and expenses:
Current and future benefits 217.0 215.1
Operating expenses 87.8 74.0
Amortization of deferred policy acquisition
costs 17.5 12.5
----- ------
Total benefits and expenses 322.3 301.6
----- ------
Income before federal income taxes 68.5 59.1
Federal income taxes 20.0 18.8
----- ------
Net income $ 48.5 $ 40.3
===== ======
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
Form No. X76004.1 Page 22 June 1996
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Services, Inc.)
Consolidated Balance Sheets
(millions, except share data)
<TABLE>
<CAPTION>
(Unaudited)
March 31, December 31,
Assets 1996 1995
-------------------------------------------------------------- --------- ------------
<S> <C> <C>
Investments:
Debt securities, available for sale:
(amortized cost: $12,030.4 and $11,923.7) $12,332.2 $12,720.8
Equity securities, available for sale:
Non-redeemable preferred stock (cost: $54.3 and $51.3) 59.1 57.6
Investment in affiliated mutual funds (cost: $160.3 and
$173.4) 182.0 191.8
Common stock (cost: $6.9) -- 8.2
Short-term investments 24.6 15.1
Mortgage loans 21.1 21.2
Policy loans 344.6 338.6
--------- ------------
Total investments 12,963.6 13,353.3
Cash and cash equivalents 554.6 568.8
Accrued investment income 186.4 175.5
Premiums due and other receivables 27.7 37.3
Deferred policy acquisition costs 1,375.6 1,341.3
Reinsurance loan to affiliate 646.0 655.5
Other assets 21.4 26.2
Separate Accounts assets 12,072.9 10,987.0
--------- ------------
Total assets $27,848.2 $27,144.9
========= ============
Liabilities and Shareholder's Equity
--------------------------------------------------------------
Liabilities:
Future policy benefits $ 3,545.1 $ 3,594.6
Unpaid claims and claim expenses 25.9 27.2
Policyholders' funds left with the Company 10,298.9 10,500.1
--------- ------------
Total insurance reserve liabilities 13,869.9 14,121.9
Other liabilities 188.6 259.2
Federal income taxes:
Current 35.7 24.2
Deferred 125.5 169.6
Separate Accounts liabilities 12,072.9 10,987.0
--------- ------------
Total liabilities 26,292.6 25,561.9
--------- ------------
Shareholder's equity:
Common stock, par value $50 (100,000 shares authorized; 55,000
shares issued and outstanding) 2.8 2.8
Paid-in capital 407.6 407.6
Net unrealized capital gains 56.6 132.5
Retained earnings 1,088.6 1,040.1
--------- ------------
Total shareholder's equity 1,555.6 1,583.0
--------- ------------
Total liabilities and shareholder's equity $27,848.2 $27,144.9
========= ============
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
Form No. X76004.1 Page 23 June 1996
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Services, Inc.)
Consolidated Statements of Changes in Shareholder's Equity
(millions)
(Unaudited)
<TABLE>
<CAPTION>
3 Months Ended March
31,
--------------------
1996 1995
-------- ---------
<S> <C> <C>
Shareholder's equity, beginning of period $1,583.0 $1,088.5
Net change in unrealized capital gains and
losses (75.9) 156.7
Net income 48.5 40.3
-------- ---------
Shareholder's equity, end of period $1,555.6 $1,285.5
======== =========
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
Form No. X76004.1 Page 24 June 1996
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Services, Inc.)
Consolidated Statements of Cash Flows
(millions)
(Unaudited)
<TABLE>
<CAPTION>
3 Months Ended March 31,
----------------------
1996 1995
--------- ----------
<S> <C> <C>
Cash Flows from Operating Activities:
Net income $ 48.5 $ 40.3
Adjustments to reconcile net income to net cash
(used for) provided by operating activities:
Increase in accrued investment income (10.9) (6.3)
Decrease in premiums due and other receivables 0.5 10.9
Increase in policy loans (6.0) (26.0)
Increase in deferred policy acquisition costs (34.3) (31.7)
Decrease in reinsurance loan to affiliate 9.5 14.6
Net increase in universal life account balances 53.0 44.5
(Decrease) increase in other insurance reserve liabilities (52.4) 20.5
Net (decrease) increase in other liabilities and other
assets (81.8) 113.3
Increase in federal income taxes 8.3 16.3
Net accretion of discount on debt securities (16.9) (15.5)
Net realized capital gains (14.9) (5.1)
Other, net -- 1.5
--------- ----------
Net cash (used for) provided by operating activities (97.4) 177.3
--------- ----------
Cash Flows from Investing Activities:
Proceeds from sales of:
Debt securities available for sale 1,634.8 965.3
Equity securities 48.7 66.7
Investment maturities and collections of:
Debt securities available for sale 255.4 104.3
Short-term investments 10.0 30.0
Cost of investment purchases in:
Debt securities available for sale (1,918.0) (1,427.6)
Equity securities (26.1) (98.1)
Short-term investments (19.5) (0.5)
--------- ----------
Net cash used for investing activities (14.7) (359.9)
--------- ----------
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
Form No. X76004.1 Page 25 June 1996
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Services, Inc.)
Consolidated Statements of Cash Flows (continued)
(millions)
(Unaudited)
<TABLE>
<CAPTION>
3 Months Ended
March 31,
------------------
1996 1995
------- --------
<S> <C> <C>
Cash Flows from Financing Activities:
Deposits and interest credited for investment
contracts $ 429.9 $ 497.7
Withdrawals of investment contracts (332.0) (278.3)
------- --------
Net cash provided by financing activities 97.9 219.4
------- --------
Net (decrease) increase in cash and cash equivalents (14.2) 36.8
Cash and cash equivalents, beginning of period 568.8 623.3
------- --------
Cash and cash equivalents, end of period $ 554.6 $ 660.1
======= ========
Supplemental cash flow information:
Income taxes paid, net $ 11.7 $ 2.5
======= ========
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
Form No. X76004.1 Page 26 June 1996
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Services, Inc.)
Condensed Notes to Consolidated Financial Statements
(Unaudited)
1. Basis of Presentation
The consolidated financial statements include Aetna Life Insurance and
Annuity Company and its wholly owned subsidiaries, Aetna Insurance Company of
America and Aetna Private Capital, Inc. (collectively, the "Company"). Aetna
Life Insurance and Annuity Company is a wholly owned subsidiary of Aetna
Retirement Services, Inc. ("ARSI"). ARSI is a wholly owned subsidiary of
Aetna Life and Casualty Company ("Aetna").
These consolidated financial statements have been prepared in accordance with
generally accepted accounting principles and are unaudited. Certain
reclassifications have been made to 1995 financial information to conform to
1996 presentation. These interim statements necessarily rely heavily on
estimates, including assumptions as to annualized tax rates. In the opinion
of management, all adjustments necessary for a fair statement of results for
the interim periods have been made. All such adjustments are of a normal,
recurring nature.
Form No. X76004.1 Page 27 June 1996
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities Exchange
Act of 1934, the undersigned registrant hereby undertakes to file with the
Securities and Exchange Commission such supplementary and periodic information,
documents and reports as may be prescribed by any rule or regulation of the
Commission heretofore or hereafter duly adopted pursuant to authority conferred
in that section.
UNDERTAKING PURSUANT TO RULE 484
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question of whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
REPRESENTATIONS, DESCRIPTION AND UNDERTAKINGS
PURSUANT TO PARAGRAPH (B)(13)(iii)(F) OF RULE 6e-3(T)
UNDER THE INVESTMENT COMPANY ACT OF 1940
REGISTRANT MAKES THE FOLLOWING REPRESENTATIONS:
(1) Section 6e-3T(b)(13)(iii)(F) is being relied upon.
(2) The level of the mortality and expense risk charge is within the range of
industry practice for comparable flexible contracts.
(3) Aetna Life Insurance and Annuity Company has concluded that there is a
reasonable likelihood that the distribution financing arrangement of
Variable Life Account B (the "VUL Account") will benefit the VUL Account
and Policy Owners.
<PAGE>
(4) The VUL Account will invest only in management companies which if they
undertake a 12b-1 plan, the investment will undertake to have a board of
directors, a majority of whom are not interested persons of the Company,
formulate and approve any plan under Rule 12b-1 to finance distribution
expenses.
The methodology used to support the representation made in paragraph (2) above
is based on an analysis of selected variable life insurance policies declared
effective by the Commission, which contain similar guarantees and are sold in
similar markets. Registrant undertakes to keep and make available to the
Commission upon request the documents used to support the representation in
paragraph (2) above and a memorandum setting forth the basis for the
representation in paragraph (3) above.
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 5 TO
REGISTRATION STATEMENT
This Post-Effective Amendment No. 5 to Registration Statement No. 33-76004
comprises the following papers and documents:
(bullet) The facing sheet.
(bullet) Supplement to the Prospectus consisting of 27 pages.
(bullet) The undertaking to file reports
(bullet) The undertaking pursuant to Rule 484
(bullet) Representations pursuant to Rule 6e-3(T)
(bullet) The signatures.
(bullet) Written consents of the following persons:
A. Actuarial Opinion and Consent
B. Consent of Independent Auditors
C. Consent of Counsel
(bullet) The following Exhibits:
1. Exhibits required by paragraph A of instructions to exhibits for Form
N-8B-2:
(1) Resolution establishing Variable Life Account B(1)
(2) Not Applicable
(3)(i) Master General Agent Agreement(1)
(3)(ii) Life Insurance General Agent Agreement(1)
(3)(iii) Broker Agreement(1)
(3)(iv) Life Insurance Broker-Dealer Agreement(1)
(4) Not Applicable
(5)(i) Form of AetnaVest I Policy (Policy No. 38899)(2)
(5)(ii) Form of AetnaVest II Policy, including Term Rider (Policy
No. 38899-90)(3)
<PAGE>
(6) Certificate of Incorporation and By-laws of Aetna Life
Insurance and Annuity Company, Depositor(4)
(7) Not Applicable
(8)(i) Fund Participation Agreement (Amended and Restated) between
Aetna Life Insurance and Annuity Company, Alger American
Fund and Fred Alger Management, Inc., dated as of March 31,
1995(5)
(8)(ii) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company and Fidelity Distributors Corporation
(Variable Insurance Products Fund) dated February 1, 1994
and amended March 1, 1996(5)
(8)(iii) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company and Fidelity Distributors Corporation
(Variable Insurance Products Fund II) dated February 1,
1994 and amended March 1, 1996(5)
(8)(iv) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company and Janus Aspen Series dated April 19,
1994 and amended March 1, 1996(5)
(8)(v) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company and Scudder Variable Life Investment
Fund dated April 27, 1992 and amended February 19, 1993 and
August 13, 1993(5)
(8)(vi) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company, Investors Research Corporation and TCI
Portfolios, Inc., dated July 29, 1992 and amended December
22, 1992 and June 1, 1994(5)
(9) Not Applicable
(10)(i) Form of Application for AetnaVest I Policy(2)
(10)(ii) Form of Application for AetnaVest II Policy(6)
2. Opinion of Counsel(7)
3. Not Applicable
4. Not Applicable
5. Not Applicable
6. Copy of Power of Attorney(8)
(27) Financial Data Schedule(9)
1. Incorporated by reference to Post-Effective Amendment No. 2 to Registration
Statement on Form S-6 (File No. 33-76004), as filed electronically on
February 16, 1996.
2. Incorporated by reference to Post-Effective Amendment No. 25 to Registration
Statement on Form S-6 (File No. 33-2339), as filed on April 25, 1995.
3. Incorporated by reference to Pre-Effective Amendment No. 1 to Registration
Statement on Form S-6 (File No. 33-76004) filed on April 23, 1994.
<PAGE>
4. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form S-1 (File No. 33-60477), as filed electronically on
April 15, 1996.
5. Incorporated by reference to Post-Effective Amendment No. 5 to Registration
Statement on Form N-4 (File No. 33-75986), as filed electronically on
April 12, 1996.
6. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form S-6 (File No. 33-76004), as filed on April 25, 1995.
7. Incorporated by reference to Registrant's 24f-2 Notice for fiscal year ended
December 31, 1995, as filed electronically on February 29, 1996.
8. Incorporated by reference to Post-Effective Amendment No. 3 to Registration
Statement on Form N-4 (File No. 33-75974), as filed electronically on April
9, 1996. In addition, a certified copy of the resolution adopted by the
Depositor's Board of Directors authorizing filings pursuant to a power of
attorney as required by Rule 478 under the Securities Act of 1933 is
incorporated by reference to Post-Effective Amendment No. 5 to Registration
Statement on Form N-4 (File No. 33-75986), as filed electronically on
April 12, 1996.
9. Incorporated by reference to Post-Effective Amendment No. 4 to Registration
Statement on Form S-6 (File No. 33-76004), as filed electronically on
April 29, 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the
Registrant, Variable Life Account B of Aetna Life Insurance and Annuity Company,
certifies that it meets the requirements of Securities Act Rule 485(b) for
effectiveness of this Post-Effective Amendment No. 5 to its Registration
Statement on Form S-6 (File No 33-76004) and, has duly caused this
Post-Effective Amendment No. 5 to its Registration Statement on Form S-6 (File
No. 33-76004) to be signed on its behalf by the undersigned, thereunto duly
authorized, and the seal of the Depositor to be hereunto affixed and attested,
all in the City of Hartford, and State of Connecticut, on this 21st day of June,
1996.
VARIABLE LIFE ACCOUNT B OF AETNA LIFE
INSURANCE AND ANNUITY COMPANY
(Registrant)
(SEAL)
ATTEST: /s/ Susan E. Schechter
--------------------------
Susan E. Schechter
Corporate Secretary
By: AETNA LIFE INSURANCE AND ANNUITY COMPANY
(Depositor)
By: Daniel P. Kearney*
----------------------------------------
Daniel P. Kearney
Principal Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this Post-Effective
Amendment No. 5 to the Registration Statement No. 33-76004 has been signed below
by the following persons in the capacities indicated and on the dates indicated.
Signature Title Date
Daniel P. Kearney* Director and President )
- ----------------------------- (Principal Executive Officer) )
Daniel P. Kearney ) June 21,
) 1996
)
Christopher J. Burns* Director )
- ----------------------------- )
Christopher J. Burns )
)
<PAGE>
Laura R. Estes* Director )
- ----------------------------- )
Laura R. Estes )
)
Timothy A. Holt* Director )
- ----------------------------- )
Timothy A. Holt )
)
Gail P. Johnson* Director )
- ----------------------------- )
Gail P. Johnson )
)
John Y. Kim* Director )
- ----------------------------- )
John Y. Kim )
)
Shaun P. Mathews* Director )
- ----------------------------- )
Shaun P. Mathews )
)
Glen Salow* Director )
- ----------------------------- )
Glen Salow )
)
Creed R. Terry* Director )
- ----------------------------- )
Creed R. Terry )
)
Eugene M Trovato* Vice President and Treasurer, )
- ----------------------------- Corporate Controller )
Eugene M. Trovato )
By: /s/ Julie E. Rockmore
---------------------------
Julie E. Rockmore
*Attorney-in-Fact
<PAGE>
VARIABLE LIFE ACCOUNT B
EXHIBIT INDEX
Exhibit No. Exhibit Page
99-1.1 Resolution of the Board of Directors of Aetna *
Life Insurance and Annuity Company establishing
Variable Life Account B
99-1.3(i) Master General Agent Agreement *
99-1.3(ii) Life Insurance General Agent Agreement *
99-1.3(iii) Broker-Dealer Agreement *
99-1.3(iv) Life Insurance Broker-Dealer Agreement *
99-1.5(i) Form of AetnaVest I Policy (Policy No. 38899) *
99-1.5(ii) Form of AetnaVest II Policy, including Term *
Rider (Policy No. 38899-90)
99-1.6 Certification of Incorporation and By-Laws of *
Depositor
99-1.8(i) Fund Participation Agreement (Amended and *
Restated) between Aetna Life Insurance and
Annuity Company, Alger American Fund and Fred
Alger Management, Inc. dated as of March 31,
1995
99-1.8(ii) Fund Participation Agreement between Aetna Life *
Insurance and Annuity Company and Variable
Insurance Products Fund, Fidelity Distributors
Corporation (Variable Insurance Products Fund)
dated February 1, 1994 and amended March 1,
1996
99-1.8(iii) Fund Participation Agreement between Aetna Life *
Insurance and Annuity Company and Variable
Insurance Products Fund II, Fidelity
Distributors Corporation (Variable Insurance
Products Fund II) dated February 1, 1994 and
amended March 1, 1996
99-1.8(iv) Fund Participation Agreement between Aetna Life *
Insurance and Annuity Company and Janus Aspen
Series dated April 19, 1994 and amended
March 1, 1996
*Incorporated by reference
<PAGE>
Exhibit No. Exhibit Page
99-1.8(v) Fund Participation Agreement between Aetna Life *
Insurance and Annuity Company and Scudder
Variable Life Investment Fund dated April 27,
1992 and amended February 19, 1993 and
August 13, 1993
99-1.8(vi) Fund Participation Agreement between Aetna Life *
Insurance and Annuity Company, Investors
Research Corporation and TCI Portfolios, Inc.
dated July 29, 1992 and amended December 22,
1992 and June 1, 1994
99-1.10(i) Form of Application for AetnaVest I Policy *
99-1.10(ii) Form of Application for AetnaVest II Policy *
99-2 Opinion of Counsel
99-6 Copy of Power of Attorney *
27 Financial Data Schedule *
*Incorporated by reference
John B. Dinius
Vice President and Actuary
[AETNA LOGO] Product Management, YFAC
151 Farmington Avenue
Hartford, Connecticut 06156
Phone 860-275-2773
Fax 860-275-4749
June 19, 1996
Re: Aetna Vest and Aetna Vest II (File No. 33-76004)
Dear Sir or Madam:
This opinion is furnished in connection with registration by Aetna Life
Insurance and Annuity Company on Form S-6 of its flexible premium variable
universal life insurance product (the "Policies") under the Securities Act of
1933. The prospectus included in the Registration Statement was prepared under
my direction, and I am familiar with the Registration Statement, as amended, and
Exhibits thereto.
In my opinion, the illustrations of benefits under the Policies included in the
prospectus under the caption "Illustrations of Death Benefits, Total Account
Values and Surrender Values," based on the assumptions stated in the
illustrations, are consistent with the provisions of the respective forms of the
Policies. Also in my opinion, the age selected in the illustrations is
representative of the manner in which the Policies operate.
I hereby consent to the use of this opinion as an exhibit to the Registration
Statement.
Very truly yours,
/s/ John B. Dinius
John B. Dinius
Vice President and Actuary
Consent of Independent Auditors
The Board of Directors of Aetna Life Insurance and Annuity Company and
Contract Owners of Aetna Variable Life Account B:
We consent to the use of our reports incorporated herein by
reference.
/s/ KPMG Peat Marwick LLP
Hartford, Connecticut
June 25, 1996
[Aetna Letterhead]
151 Farmington Avenue Susan E. Bryant
Hartford, CT 06156 Counsel
Law and Regulatory Affairs,
RE4C
(860) 273-7834
Fax: (860) 273-8340
June 24, 1996
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Attention: Filing Desk
Re: Variable Life Account B of Aetna Life Insurance and Annuity Company
Post-Effective Amendment No. 5 to the Registration Statement on
Form S-6 File Nos. 33-76004 and 811-4536
Gentlemen:
As Counsel of Aetna Life Insurance and Annuity Company (the "Company"), I hereby
consent to the use of my opinion dated February 28, 1996 (incorporated herein by
reference to the 24f-2 Notice for the fiscal year ended December 31, 1995 filed
on behalf of Variable Life Account B of Aetna Life Insurance and Annuity Company
on February 29, 1996) as an exhibit to this Post-Effective Amendment No. 5 to
the Registration Statement on Form S-6 (File No. 33-76004) and to my being named
under the caption "Legal Matters" therein.
Very truly yours,
/s/ Susan E. Bryant
Susan E. Bryant
Counsel
Aetna Life Insurance and Annuity Company
