As filed with the Securities and Exchange Commission on December 21, 1999
FILE NO. 333-
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF
1933 OF SECURITIES OF UNIT INVESTMENT
TRUSTS REGISTERED ON FORM N-8B-2
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A. Exact name of trust:
JPF SEPARATE ACCOUNT A
B. Name of depositor:
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
C. Complete address of depositor's principal executive offices:
One Granite Place
Concord, NH 03301
D. Name and complete address of agent for service:
Ronald R. Angarella
President
Jefferson Pilot Securities Corporation
One Granite Place
Concord, NH 03301
Copies to:
Charlene Grant, Esq. Joan E. Boros, Esq.
Jefferson Pilot Financial 1025 Thomas Jefferson Street, N.W.
Company Suite 400 East
One Granite Place Washington, D.C. 20007-0805
Concord, NH 03301
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E. Title of securities being registered:
Units of Interest in the Separate Account under Individual Flexible Premium
Variable Life Insurance Policies.
F. Approximate date of proposed public offering:
As soon as practicable after the effective date.
The Registrant is registering an indefinite amount of securities pursuant to
Section 24(f) of the Investment Company Act of 1940.
Registrant hereby amends this Registration Statement under the Securities Act
of 1933 on such date or dates as may be necessary to delay its effective date
until Registrant shall file a further amendment which specifically states that
this Registration Statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933 or until the Registration Statement
shall become effective on such date as the Commission, acting pursuant to
Section 8(a), may determine.
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May 1, 2000
ENSEMBLE III
JPF Separate Account A
Flexible Premium Variable Life Insurance Policy
Jefferson Pilot Financial Insurance Company
One Granite Place Concord, New Hampshire 03301 800-258-3648
This Prospectus describes the Ensemble III Variable Life Insurance Policy
("Ensemble III" or "the Policy"), a flexible premium variable life insurance
policy issued and underwritten by Jefferson Pilot Financial Insurance Company
("We" or "JP Financial" or "the Company"). The Policy provides life insurance
and pays a benefit, as described in this Prospectus, upon the Insured's death or
surrender of the Policy. The Policy allows flexible premium payments, Policy
Loans, Withdrawals, and a choice of Death Benefit Options. Your account values
may be invested on either a fixed or variable or combination of fixed and
variable basis. You may allocate Your Net Premiums to JPF Separate Account A
("Separate Account A" or the "Separate Account"), and/or the General Account, or
both Accounts. The Divisions of Separate Account A support the benefits provided
by the variable portion of the Policy. The Accumulation Value allocated to each
Division is not guaranteed and will vary with the investment performance of the
associated Fund. Net Premiums allocated to the General Account will accumulate
at rates of interest We determine; such rates will not be less than 4% per year.
Your Policy may lapse if the Surrender Value is insufficient to pay a Monthly
Deduction. For the first five Policy Years, however, if you pay the Minimum
Annual Premium, Your Policy will not lapse, regardless of changes in the
Surrender Value. We will send premium reminder notices for Planned Premiums
and for premiums required to continue the Policy in force. If the Policy lapses,
You may reinstate it.
The Policy has a free look period during which You may return the Policy. We
will refund Your Premium (See "Right of Policy Examination").
This Prospectus also describes the Divisions used to fund the Policy through the
Separate Account. Each Division invests exclusively in one of the following
Portfolios:
JPVF International Equity Portfolio
JPVF World Growth Stock Portfolio
JPVF Global Hard Assets Portfolio
JPVF Emerging Growth Portfolio
JPVF Capital Growth Portfolio
JPVF Small Company Portfolio
JPVF Growth Portfolio
JPVF Growth and Income Portfolio
JPVF Balanced Portfolio
JPVF High Yield Bond Portfolio
JPVF S&P 500 Index Portfolio
JPVF Money Market Portfolio
Fidelity VIP Growth Portfolio
Fidelity VIP Equity-Income Portfolio
Fidelity VIP II Contrafund Portfolio
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MFS Research Series
MFS Utilities Series
Oppenheimer Strategic Bond Fund/VA
Oppenheimer Bond Fund/VA
Templeton International Fund: Class 2
Not all Divisions may be available under all Policies or in all jurisdictions.
You may obtain the current Prospectus and Statement of Additional Information
("SAI") for any of the Portfolios by calling (800) 258-3648 x7719.
Replacing existing insurance or supplementing an existing flexible premium
variable life insurance policy with the Policy may not be to your advantage.
THIS PROSPECTUS IS VALID ONLY WHEN ACCOMPANIED BY THE CURRENT PROSPECTUSES FOR
THE FUNDS. BOTH THIS PROSPECTUS AND THE UNDERLYING FUND PROSPECTUSES SHOULD BE
READ AND RETAINED FOR FUTURE REFERENCE.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved these securities or determined if this
prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.
Ensemble III insurance policies and shares of the funds are not deposits or
obligations of or guaranteed by any bank. They are not federally insured by the
FDIC or any other government agency. Investing in the contracts involves certain
investment risks, including possible loss of principal invested.
THIS PROSPECTUS AND OTHER INFORMATION ABOUT JPF SEPARATE ACCOUNT A REQUIRED TO
BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CAN BE FOUND IN THE SEC'S
WEB SITE AT http://www.sec.gov.
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TABLE OF CONTENTS
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Page
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Definitions ............................................................... 3
Policy Summary ............................................................ 4
The Separate Account ...................................................... 5
Charges & Fees ............................................................ 6
Charges & Fees Assessed Against Premium .................................. 6
Charges & Fees Assessed Against the Accumulation Value ................... 6
Charges & Fees Assessed Against the Separate Account ..................... 7
Charges Assessed Against the Underlying Funds ............................ 8
Charges Deducted Upon Surrender ........................................... 9
Allocation of Premiums .................................................... 10
The Portfolios ........................................................... 10
Investment Advisers for each of the Funds ................................ 11
Mixed and Shared Funding; Conflicts of Interest .......................... 12
Fund Additions, Deletions or Substitutions ............................... 12
General Account .......................................................... 13
Policy Choices ............................................................ 13
General .................................................................. 13
Premium Payments .......................................................... 13
Modified Endowment ....................................................... 14
Compliance with the Internal Revenue Code ................................ 14
Death Benefit Options .................................................... 15
Transfers and Allocations to Funding Options ............................. 15
Telephone Transfers, Loans and Reallocations ............................. 16
Automated Transfers (Dollar Cost Averaging and Portfolio Rebalancing) ..... 16
Policy Values ............................................................. 17
Accumulation Value ....................................................... 17
Unit Values .............................................................. 18
Net Investment Factor .................................................... 18
Surrender Value .......................................................... 18
Policy Rights ............................................................. 19
Surrenders ............................................................... 19
Withdrawals .............................................................. 19
Grace Period ............................................................. 19
Reinstatement of a Lapsed or Terminated Policy ........................... 19
Right to Defer Payment ................................................... 20
Policy Loans ............................................................. 20
Policy Changes ............................................................ 21
Right of Policy Examination .............................................. 22
Supplemental Benefits .................................................... 22
Death Benefit ............................................................. 22
Policy Settlement ......................................................... 22
Settlement Options ....................................................... 23
The Company ............................................................... 23
Directors & Officers ...................................................... 25
Additional Information .................................................... 26
Reports to Policyowners .................................................. 26
Right to Instruct Voting of Fund Shares .................................. 26
Disregard of Voting Instructions ......................................... 26
State Regulation ......................................................... 27
Legal Matters ............................................................ 27
The Registration Statement ............................................... 27
Financial Statements ..................................................... 27
Employment Benefit Plans ................................................. 27
Distribution of the Policy ............................................... 27
Independent Auditors ..................................................... 28
Year 2000 ................................................................ 28
Group or Sponsored Arrangements .......................................... 29
Tax Matters ............................................................... 29
General .................................................................. 29
Federal Tax Status of the Company ........................................ 29
Life Insurance Qualification ............................................. 29
Charges for JP Financial Income Taxes ..................................... 32
Miscellaneous Policy Provisions ........................................... 33
The Policy ............................................................... 33
Payment of Benefits ...................................................... 33
Suicide and Incontestability ............................................. 33
Protection of Proceeds ................................................... 33
Nonparticipation ......................................................... 33
Changes in Owner and Beneficiary; Assignment ............................. 33
Misstatements ............................................................ 33
Illustrations of Accumulation Values, Cash Values and Death Benefits ...... A-1
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This prospectus does not constitute an offer in any jurisdiction in which such
offering may not be lawfully made. No dealer, salesman or other person is
authorized to give any information or make any representations in connection
with this offering other than those contained in this prospectus, and, if given
or made, such other information or representations must not be relied upon. The
purpose of this variable life insurance policy is to provide insurance
protection. Life insurance is a long-term investment. Policyowners should
consider their need for insurance coverage and the policy's long-term investment
potential. No claim is made that the policy is any way similar or comparable to
an investment in a mutual fund.
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Definitions
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Accumulation Value: The total amount that a Policy provides for investment plus
the amount held as collateral for Policy Debt.
Age: The Insured's age at his/her nearest birthday.
Allocation Date: The date when the initial Net Premium is placed in the
Divisions and the General Account as instructed by the Policyowner in the
application. The Allocation Date is 25 days from the date the Company mails the
Policy to the agent for delivery to the Policyowner. However, if the insured is
in a substandard risk class and all administrative items needed to activate the
Policy were not received within the 25-day period, the Allocation Date will be
the date the Company receives from You all such administrative items.
Attained Age: The Insured's age at the last Policy Anniversary.
Beneficiary: The person You designate in the application to receive the Death
Benefit proceeds. If changed, the Beneficiary is as shown in the latest change
filed with the Company. If no Beneficiary survives the Insured, You or Your
estate will be the Beneficiary. The Beneficiary's interest may be subject to
that of any assignee.
Cash Value: The Accumulation Value less any Surrender Charge. This amount less
any Policy Debt is payable to the Policyowner on surrender of the Policy.
Code: The Internal Revenue Code of 1986, as amended.
Company: Jefferson Pilot Financial Insurance Company.
Cost of Insurance: A charge related to Our expected mortality cost for Your
basic insurance coverage under the Policy, not including any supplemental
benefit provision that You may elect through a Policy rider.
Cumulative Minimum Premium: An amount equal to the Minimum Annual Premium
divided by 12 and multiplied by the number of completed policy months.
Date of Receipt: Any Company business day, prior to 4:00 p.m. Eastern time, on
which a notice or premium payment is received at Our home office.
Death Benefit: The amount which is payable on the Death of the Insured, adjusted
as provided in the Policy.
Death Benefit Options: The methods for determining the Death Benefit.
Division: A separate division of Separate Account A which invests only in the
shares of a specified Portfolio of a Fund.
Fund: An open-end management investment company whose shares are purchased by
the Separate Account to fund the benefits provided by the Policy.
General Account: A non-variable funding option available in the Policy that
guarantees a minimum interest rate of 4% per year.
Grace Period: The 61-day period beginning on the Monthly Anniversary Day on
which the Policy's Surrender Value less any Policy Debt is insufficient to cover
the current Monthly Deduction, unless the cumulative minimum premium requirement
has been met. The Policy will lapse without value at the end of the 61-day
period unless We receive a sufficient payment.
Insured: The person on whose life the Policy is issued.
Issue Age: The Age of the Insured on the Policy's Issue Date.
Issue Date: The effective date on which coverage begins under the Policy.
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Load Basis Amount: An amount per $1,000 of Specified Amount which varies by sex,
Issue Age and rating class of the Insured. This amount is used to calculate the
Acquisition Charge.
Loan Value: Generally, 100% of the Policy's Cash Value on the date of a loan.
Minimum Annual Premium: The amount of premium that you must pay each year to
assure that the Policy remains in force for at least 5 Policy Years from the
Issue Date, even if the Surrender Value is insufficient to satisfy the current
Monthly Deduction.
Monthly Anniversary Date: The same day in each month as the Policy Date.
Net Premium: The gross premium less a 2.5% State Premium Tax Charge, a 1.25%
Federal DAC Tax Charge and a 3% Premium Load. We currently do not intend to
assess the Premium Load beginning in the 11th Policy Year.
Policy: The life insurance contract described in this Prospectus.
Policy Date: The date set forth in the Policy from which policy years, policy
months and policy anniversaries will be determined. If the Policy Date falls on
the 29th, 30th or 31st of a month, the Policy Date will be the 28th of such
month. You may request the Policy Date. If You do not request a date, it is the
date the Policy is issued.
Policy Debt: The sum of all unpaid policy loans and accrued interest thereon.
Portfolio: A separate investment series of one of the Funds.
Proof of Death: One or more of: a) a copy of a certified death certificate; b) a
copy of a certified decree of a court of competent jurisdiction as to the
finding of death; c) a written statement by a medical doctor who attended the
Insured; or d) any other proof satisfactory to the Company.
SEC: Securities and Exchange Commission.
Separate Account A or the Separate Account: JPF Separate Account A, a separate
investment account We established for the purpose of funding the Policy.
Service Office: Our principal executive offices at One Granite Place, Concord,
New Hampshire 03301.
Specified Amount: The amount You choose at application, which may subsequently
be increased or decreased, as provided in the Policy. The Specified Amount is
used in determining the Death Benefit.
State: Any State of the United States, the District of Columbia, Puerto Rico,
Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands or
any other possession of the United States.
Surrender Charge: An amount We retain upon the Surrender of the Policy, a
Withdrawal or a decrease in Specified Amount.
Surrender Value: Cash Value less any Policy Debt.
Target Premium: The premium from which first year commissions will be determined
and which varies by sex, Issue Age, rating class of the Insured and Specified
Amount.
Valuation Date: The date and time at which the Accumulation Value of a variable
investment option is calculated. Currently, this calculation occurs after the
close of business of the New York Stock Exchange on any normal business day,
Monday through Friday, that the New York Stock Exchange and the Company are
open. In addition to being closed on all federal holidays, the Company will also
be closed on Good Friday, the Friday following Thanksgiving and the day before
or following Christmas.
Valuation Period: The period of time between two successive Valuation Dates,
beginning at the close of regular trading on the New York Stock Exchange
on each Valuation Date, and ending at the close of regular trading on the New
York Stock Exchange on the next succeeding Valuation Date.
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We, Our, Us, Company: Jefferson Pilot Financial Insurance Company, its
successors or assigns.
You, Your: Policyowner.
Policy Summary
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This Prospectus describes a flexible premium variable life insurance policy. The
Policy provides life insurance and pays a benefit (subject to adjustment under
the Policy's Age and/or Sex, Suicide and Incontestability, and Grace Period
provisions) upon surrender or Death of the Insured. The Policy allows flexible
premium payments, Policy Loans, Withdrawals and a choice of Death Benefit
Options. Account values may be either fixed or variable or a combination of
fixed and variable.
Charges and fees will be assessed against premium payments, Accumulation Value,
the Separate Account, the underlying Funds and upon surrender, partial
withdrawals or decreases in Specified Amount.
You must purchase Your variable life insurance policy from a registered
representative. The Policy, the initial application on the Insured, any
subsequent applications, endorsements and any riders constitute the entire
contract.
At the time of application, You must choose a Death Benefit Option, decide on
the amount of planned premium and determine how to allocate Net Premiums. You
may elect to supplement the benefits afforded by the Policy through the addition
of riders We make available.
The proceeds payable upon the Death of the Insured depend on the Death Benefit
Option chosen. Under Option 1 the Death Benefit equals the current Specified
Amount. Under Option 2, the Death Benefit equals the current Specified Amount
plus the Accumulation Value on the date of death. We may make other options
available. We will reduce the Death Benefit proceeds by any outstanding Policy
Debt.
Although the Policy is designed to allow flexible premiums, You must pay
sufficient premiums to continue the Policy in force. The initial premium must be
paid at issue. The initial premium must at least equal the minimum premium,
which is based on Issue Age, underwriting class and Specified Amount. No premium
payment may be less than $250 ($50 for electronic fund transfers). We will send
you premium reminder notices for Planned Premiums and for premiums required to
continue the Policy in force. Should Your Policy lapse, You may reinstate it.
You may allocate Your Net Premiums to the Separate Account, the General Account
or both Accounts. Net Premiums allocated to the Separate Account must be
allocated to one or more of the Divisions of the Separate Account and
allocations must be in whole percentages. The variable portion of the Policy is
supported by the Divisions You choose and will vary with the investment
performance of the associated Portfolios. Net Premiums allocated to the General
Account will accumulate at rates of interest We determine. The effective rate of
interest will not be less than 4% per year.
The Separate Account
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The Separate Account underlying the Policy is JPF Separate Account A. Amounts
allocated to the Separate Account are invested in the Portfolios. Each Portfolio
is a series of an open-end management investment company whose shares are
purchased by the Separate Account to fund the benefits provided by the Policy.
The Portfolios, including
5
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their investment objectives and their investment advisers, are described in this
Prospectus. Complete descriptions of the Portfolios' investment objectives and
restrictions and other material information relating to the Portfolios are
contained in the Portfolios' prospectuses, which are delivered with this
Prospectus.
Separate Account A was established under New Hampshire law on August 20, 1984.
Under New Hampshire Insurance Law, the income, gains or losses of the Separate
Account are credited without regard to the other income, gains or losses of the
Company. These assets are held for Our variable life insurance policies and
variable annuities. Any and all distributions made by the Portfolios with
respect to shares held by the Separate Account will be reinvested in additional
shares at net asset value. The assets maintained in the Separate Account will
not be charged with any liabilities arising out of any other business We
conduct. We are, however, responsible for meeting the obligations of the Policy
to the Policyowner.
No stock certificates are issued to the Separate Account for shares of the
Portfolios held in the Separate Account. Ownership of Portfolio shares is
documented on the books and records of the Portfolios and of the Company for the
Separate Account.
The Separate Account is registered with the SEC as a unit investment trust under
the Investment Company Act of 1940 and meets the definition of separate account
under the federal securities laws. Such registration does not involve any
approval or disapproval by the Commission of the Separate Account or Our
management or investment practices or policies. We do not guarantee the Separate
Account's investment performance.
Divisions. The Policies presently offer twenty Divisions but may add or delete
Divisions. You may invest in a total of 17 Divisions over the life of the
Policy. Each Division will invest exclusively in shares of a single Portfolio.
Charges & Fees
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> CHARGES & FEES ASSESSED AGAINST PREMIUM
Premium Charges
Before a premium is allocated to any of the Divisions of Separate Account A and
the General Account, We will deduct the following fees and charges:
o a state premium tax charge of 2.5% unless otherwise required by state law
(1.0% in Oregon and 2.35% in California).
o a federal income tax charge of 1.25% ("Federal DAC Tax Charge") which
reimburses Us for Our increased federal tax liability under the federal tax
laws. Subject to state law, We reserve the right to increase these tax
charges due to changes in the state or federal tax laws that increase Our tax
liability.
o a Premium Load, which is guaranteed not to exceed 3% of premium, and which We
currently do not intend to assess after the 10th Policy Year.
The state premium tax charge reimburses Us for taxes We pay to states and
municipalities in which the Policy is sold. The amount of tax assessed by a
state or municipality may be more or less than the charge. We may impose the
premium tax charge in states which do not themselves impose a premium tax.
> CHARGES & FEES ASSESSED AGAINST ACCUMULATION VALUE
Charges and fees assessed against the Policy's Accumulation Value can be
deducted from any one of the Divisions, the General Account, or pro rata from
each of the Divisions and
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the General Account. If You do not designate one Division, We will deduct the
charges pro rata from each of the Divisions and the General Account.
Monthly Deduction
On each Monthly Anniversary Date and on the Policy Date, We will deduct from the
Policy's Accumulation Value an amount to cover certain expenses associated with
start-up and maintenance of the Policy, administrative expenses, the cost of
insurance for the Policy and any optional benefits added by rider.
The Monthly Deduction equals:
i) the Cost of Insurance for the Policy (as described below), plus
ii) a Monthly Administrative Fee of $10, plus
iii) a monthly Acquisition Charge during the first two Policy Years equal to 2%
of the Load Basis Amount per month in Policy Year 1 and 1% of Load Basis Amount
per month in Policy Year 2, plus
iv) the cost of optional benefits provided by rider.
v) a one-time acquisition charge for any increase in Specified Amount. This
charge is an amount per $1,000 of increase in Specified Amount that varies by
sex, Attained Age and rating class of the Insured at the time of the increase.
Cost of Insurance. The Cost of Insurance charge is related to Our expected
mortality cost for Your basic insurance coverage under the Policy, not including
any supplemental benefit provisions that You may elect through a Policy rider.
The Cost of Insurance charge equals (i) multiplied by the result of (ii) minus
(iii) where:
i) is the current Cost of Insurance Rate as described in the Policy;
ii) is the death benefit at the beginning of the policy month divided by
1.0032737 (to arrive at the proper values for the beginning of the month
assuming the guaranteed interest rate of 4%); and
iii) is the Accumulation Value at the beginning of the policy month.
The current Cost of Insurance Rate is variable and is based on the Insured's
issue age, sex (where permitted by law), rating class, Policy Year and Specified
Amount. Because the Accumulation Value and the Death Benefit of the Policy may
vary from month to month, the Cost of Insurance charge may also vary on each day
a Monthly Deduction is taken. In addition, You should note that the Cost of
Insurance charge is related to the difference between the Death Benefit payable
under the Policy and the Accumulation Value of the Policy. An increase in the
Accumulation Value or a decrease in the Death Benefit may result in a smaller
Cost of Insurance charge while a decrease in the Accumulation Value or an
increase in the Death Benefit may result in a larger cost of insurance charge.
The Cost of Insurance rate for standard risks will not exceed those based on the
1980 Commissioners Standard Ordinary Mortality Tables Male or Female (1980
Tables). Substandard risks will have monthly deductions based on Cost of
Insurance rates which may be higher than those set forth in the 1980 Tables. A
table of guaranteed maximum Cost of Insurance rates per $1,000 of the Amount at
Risk will be included in each Policy. We may adjust the Monthly Cost of
Insurance rates from time to time. Adjustments will
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be on a class basis and will be based on Our estimates for future factors such
as mortality experience, investment earnings, expenses (including reinsurance
costs), taxes and the length of time Policies stay in force. Any adjustments
will be made on a nondiscriminatory basis. The current Cost of Insurance rate
will not exceed the applicable maximum Cost of Insurance rate shown in Your
Policy.
Monthly Administrative Expense Charge. The Monthly Deduction amount also
includes a monthly administration fee of $10.00. This fee may not be increased.
Acquisition Charge. We will deduct from the Accumulation Value a monthly
acquisition charge of 2% of the Load Basis Amount in the first Policy Year and
1% of the Load Basis Amount in the second Policy Year. This charge does not vary
with the amount of premium paid. We reserve the right to increase or decrease
this charge for policies not yet issued in order to correspond with changes in
distribution costs of the Policy. The charge compensates Us for the cost of
selling the Policy, including, among other things, agents' commissions,
advertising and printing of prospectuses and sales literature. Normally this
charge plus the Surrender Charge, discussed below, compensate Us for total sales
expenses for the year. To the extent sales expenses in any policy year are not
recovered by the Acquisition Charges and the Surrender Charges We collect, We
may recover sales expenses from other sources, including profits from the
Mortality Risk and Expense Risk Charges.
Charges for Optional Benefits. If You elect any optional benefits by adding
riders to the Policy, an optional benefits charge will be included in the
Monthly Deduction amount. The amount of the charge will vary depending upon the
actual optional benefits selected and is described on each applicable Policy
rider.
> CHARGES & FEES ASSESSED AGAINST THE SEPARATE ACCOUNT
Mortality and Expense Risk Charge
We will assess a charge on a daily basis against each Division at a current
annual rate of 0.60% in Policy Years 1 through 25 (0.85% guaranteed) and 0.35%
in Policy Years 26 and later (0.60% guaranteed) of the value of the Divisions to
compensate Us for mortality and expense risks We assume in connection with the
Policy. The mortality risk We assume is that Insureds, as a group, may live for
a shorter period of time than estimated and that We will, therefore, pay a Death
Benefit before collecting a sufficient Cost of Insurance charge. The expense
risk assumed is that expenses incurred in issuing and administering the Policies
and operating the Separate Account will be greater than the administrative
charges assessed for such expenses.
The Separate Account is not subject to any taxes. However, if taxes are assessed
against the Separate Account, We reserve the right to assess taxes against the
Separate Account Value.
Administrative Charge for Transfers or Withdrawal
We will impose an Administrative Fee of $50 for each transfer among the
Divisions of the Separate Account or the General Account, after the first 12
transfers in a Policy Year (up to a maximum of 20). We will also charge an
Administrative Fee on withdrawals equal to the lesser of 2% of the withdrawal
amount or $50.
> CHARGES ASSESSED AGAINST THE UNDERLYING FUNDS
Following are the investment advisory and sub-investment management fees, paid
by each of the Funds as a percentage of average net assets.
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Jefferson Pilot Variable Fund
World Growth Stock,
Global Hard Assets,
Small Company, S&P
Average Daily Money Growth and Income, Capital 500
Net Assets Market and Balanced Growth Index
---------- ------ ------------ ------ -----
First $200 million .50% .75% 1.00% .24%
Next $1.1 billion .45% .70% .95% .24%
Over $1.3 billion .40% .65% .90% .24%
Average Daily Emerging High Yield International
Net Assets Growth Bond and Growth Equity
---------- ------ --------------- ------
First $200 million .80% .75% 1.00%
Next $1.1 billion .75% .75% 1.00%
Over $1.3 billion .70% .75% 1.00%
The compensation of the Sub-Investment Managers is paid directly from the
investment management fees of JP Investment Advisory and is set forth in the
table below as an annual percentage of the average daily net assets of the
Portfolio managed:
Sub-Investment Manager Fees
---------------------------
Templeton Van Eck Lord
Janus World Global Abbett Barclays
Average Daily Capital Growth Hard Small S&P 500
Net Assets Growth Stock Assets Company Index
---------- ------ ----- ------ ------- ---------
First $200 million .70% .50% .50% .50% .05%
Next $1.1 billion .65% .45% .45% .45% .05%
Over $1.3 billion .60% .40% .40% .40% .05%
Warburg MFS MFS MFS
Growth Emerging Money High Janus
Net Assets & Income Growth Market Yield Balanced
---------- -------- ------ ------ ----- --------
First $100 Million .50% .40% .30% .40% .55%
Next $100 million .50% .40% .30% .40% .50%
Next $200 million .50% .40% .25% .40% .50%
Over $400 million .50% .40% .25% .40% .50%
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Lombard Odier
Strong International
Net Assets Growth Equity
---------- ------ ------
First $25 million .60% .50%
Next $75 million .50% .50%
Next $50 million .40% .50%
Over $150 million .30% .50%
Templeton International Fund: Class 2.
Average Daily
Net Assets
----------
First $200 million .75%
Next $1.1 billion .675%
Over $1.3 billion .60%
Class 2 of the Templeton International Fund has a distribution plan or "Rule
12b-1 Plan" under which it pays the Distributor 0.25% per year of average net
assets invested in the fund's Class 2 shares.
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Fidelity VIP and VIP II
Total
Management Other Annual
Fidelity VIP Fee Expenses Expenses
------------ --- -------- --------
Equity Income .49% .08% .57%
Growth .59% .07% .66%
Fidelity VIP II
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Contrafund .59% .07% .66%
MFS Research Series and MFS Utilities Series: 0.75% of average daily net assets.
Oppenheimer Strategic Bond Fund/VA: 0.74% of average daily net assets.
Oppenheimer Bond Fund/VA: 0.80% of average daily net assets.
Certain of the unaffiliated Portfolio advisers reimburse the Company for
administrative costs incurred in connection with administering the Funds as
variable funding options under the Policy (MFS--0.15%, Oppenheimer--0.10% for
the Bond Fund and 0.15% for the Strategic Bond Fund; all reimbursements are
expressed as a percentage of average daily net assets under management). These
reimbursements are paid by the advisers and are not charged to the Portfolios.
For further details on each Portfolio's expenses please refer to that
Portfolio's prospectus. Additional copies of each Portfolio's prospectus and the
Statement of Additional Information for each Portfolio may be obtained free of
charge by calling (800)-258-3648 x7719.
> CHARGES DEDUCTED UPON SURRENDER
If You surrender the Policy, reduce the Specified Amount, or the Policy lapses
during the first nine Policy Years, We will assess a contingent deferred sales
charge, which will be deducted from the Policy's Accumulation Value. This charge
is imposed in part to recover distribution expenses and in part to recover
certain first year administrative costs. The initial Surrender Charge is based
on the Specified Amount and varies with the Issue Age, risk classification and,
in most states, sex of the Insured. It will be specified in Your Policy and will
be in compliance with each state's nonforfeiture law.
The Surrender Charge in any given Policy Year will equal a percentage of the
initial Surrender Charge as follows:
Surrender Charge
as Percentage of
Initial Surrender
Policy Year Charge*
- ----------- -------
0-5 100%
6 80%
7 60%
8 40%
9 20%
10+ 0%
* May be lower at some ages
We will not assess a Surrender Charge after the ninth Policy Year. A pro rata
portion of any Surrender Charge will be assessed upon withdrawal or reduction in
the Specified Amount. The Policy's Accumulation Value will be reduced by the
amount of any withdrawal or reduction in Specified Amount plus any applicable
pro rata Surrender Charge.
> SURRENDER CHARGES ON SURRENDERS AND WITHDRAWALS
All applicable Surrender Charges are imposed on Surrenders.
We will impose a pro rata Surrender Charge on Withdrawals. The pro rata
Surrender Charge will equal the amount of the Specified Amount reduction
associated with the withdrawal divided by the Specified Amount before the
reduction. We will reduce any applicable remaining Surrender Charges by the same
proportion. A transaction charge equal to the lesser of 2% of the Withdrawal
Amount or $50 will be deducted from the amount of each Withdrawal. (See
"Withdrawals") The Surrender Charge does not apply to Policy loans.
We will also impose a pro rata Surrender Charge on Decreases in Specified
Amount. The pro rata portion will equal the amount of the Decrease in Specified
Amount divided by the Specified Amount before the Decrease.
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<PAGE>
Other Charges
We reserve the right to charge the assets of each Division to provide for any
income taxes or other taxes payable by Us on the assets attributable to that
Division. Although We currently make no charge, we reserve the right to charge
You an administrative fee, not to exceed $50, to cover the cost of preparing any
additional illustrations of current Cash Values and current mortality
assumptions which you may request after the Policy Date.
Allocation of Premiums
- --------------------------------------------------------------------------------
You may allocate all or a part of Your Net Premiums to the Divisions currently
available under Your Policy or You may allocate all or a part of Your Net
Premiums to the General Account.
THE PORTFOLIOS
The Separate Account currently invests in shares of the Portfolios listed below.
Net Premiums applied to the Separate Account will be invested in the Portfolios
in accordance with Your selection. Portfolios may be added or withdrawn as
permitted by applicable law. We reserve the right to limit the total number of
Portfolios You may elect to 17 over the lifetime of the Policy or to increase
the total number of Portfolios You may elect. Shares of the Portfolios are not
sold directly to the general public. Each of the Portfolios is available only
through the purchase of variable annuities or variable life insurance policies
(See Mixed and Shared Funding).
The investment results of the Portfolios, whose investment objectives are
described below, are likely to differ significantly. There is no assurance that
any of the Portfolios will achieve their respective investment objectives.
Investment in some of the Portfolios involves special risks, which are described
in their respective prospectuses. You should read the prospectuses for the
Portfolios and consider carefully, and on a continuing basis, which Portfolio or
combination of Portfolios is best suited to Your long-term investment
objectives. Except where otherwise noted, all of the Portfolios are diversified,
as defined in the Investment Company Act of 1940.
o JPVF International Equity Portfolio seeks long-term capital appreciation
through investments in securities whose primary trading markets are
outside the United States.
o JPVF World Growth Stock Portfolio seeks to achieve long-term capital
growth through a policy of investing primarily in stocks of companies
organized in the United States or in any foreign nation. A portion of the
Portfolio may also be invested in debt obligations of companies and
governments of any nation. Any income realized will be incidental.
o JPVF Global Hard Assets Portfolio seeks long-term capital appreciation by
investing globally, primarily in "Hard Asset Securities". Hard Asset
Securities include equity and debt securities of "Hard Asset Companies",
that are directly or indirectly engaged in the exploration, development,
production or distribution of one or more of the following: precious
metals; ferrous and non-ferrous metals; oil and gas, petroleum,
petrochemicals or other hydrocarbons; forest productions; real estate; and
other basic non-agricultural commodities. Income is a secondary
consideration.
o JPVF Emerging Growth Portfolio seeks to provide long-term growth of
capital. Dividend and interest income from portfolio securities, if any,
is incidental to the Portfolio's investment objective of long-term growth.
o JPVF Capital Growth Portfolio seeks capital growth. Realization of income
is not a significant investment consideration and any income realized will
be incidental.
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<PAGE>
o JPVF Small Company Portfolio seeks to achieve growth of capital. The
Portfolio pursues its objective by investing primarily in a diversified
portfolio of equity securities issued by small companies, which are
defined as companies with market capitalization equal to or less than the
largest company in the Russell 2000(R) Index.
o JPVF Growth Portfolio seeks capital growth by investing primarily in
equity securities that the Sub-Investment Manager believes have above-
average growth prospects.
o JPVF Growth and Income Portfolio seeks long-term growth of capital by
investing primarily in a wide range of equity issues that may offer
capital appreciation and, secondarily, seeks a reasonable level of current
income.
o JPVF Balanced Portfolio seeks reasonable current income and long-term
capital growth, consistent with conservation of capital, by investing
primarily in common stocks and fixed income securities.
o JPVF S&P 500 Index Portfolio seeks investment results that correspond to
the total return of common stocks publicly traded in the United States, as
represented by the S&P 500.
o JPVF High Yield Bond Portfolio seeks a high level of current income by
investing primarily in corporate obligations with emphasis on higher
yielding, higher risk, lower-rated or unrated securities. These securities
may be considered speculative and involve greater risks, including risk of
default, than higher rated securities.
o JPVF Money Market Portfolio seeks to achieve as high a level of current
income as is consistent with preservation of capital and liquidity. An
investment in the Money Market Portfolio is neither insured nor guaranteed
by the U.S. Government.
o Fidelity Variable Insurance Products Fund--Growth Portfolio seeks capital
appreciation by investing primarily in common stocks.
o Fidelity Variable Insurance Products Fund--Equity-Income Portfolio seeks
reasonable income by investing primarily in income-producing equity
securities. In choosing these securities, the Fund will also consider the
potential for capital appreciation.
o Fidelity Variable Insurance Products Fund II--Contrafund Portfolio seeks
maximum total return over the long term by investing its assets mainly in
equity securities of companies that are undervalued or out-of-favor.
o MFS Variable Insurance Trust--Research Series seeks to provide long-term
growth of capital and future income by investing a substantial proportion
of its assets in equity securities of companies believed to possess
better-than-average prospects for long-term growth.
o MFS Variable Insurance Trust--Utilities Series seeks capital growth and
current income (incomes above that available from a portfolio invested
entirely in equity securities) by investing, under normal circumstances,
at least 65% (but up to 100% at the discretion of the Adviser) of its
assets in equity and debt securities of both domestic and foreign
companies in the utilities industry.
o Oppenheimer Variable Account Funds--Strategic Bond Fund/VA seeks a high
level of current income principally derived from interest on debt
securities and seeks to enhance such income by writing covered call
options on debt securities. The Portfolio intends to invest principally
in: (i) foreign government and corporate debt securities, (ii) U.S.
Government securities, and (iii) lower-rated high yield domestic debt
securities, commonly known as "junk bonds", which are subject to a greater
risk of loss of principal and nonpayment of interest than higher-rated
securities. These securities may be considered to be speculative.
13
<PAGE>
o Oppenheimer Variable Account Funds--Bond Fund/VA primarily seeks a high
level of current income from investment in high yield, fixed-income
securities rated "Baa" or better by Moody's or "BBB" or better by Standard
& Poor's. Secondarily, this Portfolio seeks capital growth when consistent
with its primary objective.
o Templeton Variable Product Series Fund--Templeton International Fund:
Class 2 seeks long-term capital growth through a flexible policy of
investing in stocks and debt obligations of companies and governments
outside the United States. Any income realized will be incidental.
Although the Templeton International Fund generally invests in common
stock, it may also invest in preferred stocks and certain debt securities
such as convertible bonds which are rated in any category by Standard &
Poor's Corporation or Moody's Investors Service, Inc. or which are unrated
by any rating agency.
Some of the above Portfolios may use instruments known as derivatives as part of
their investment strategies, as described in their respective prospectuses. The
use of certain derivatives such as inverse floaters and principal on debt
instruments may involve higher risk of volatility to a Portfolio. The use of
leverage in connection with derivatives can also increase risk of losses. See
the prospectus for the Portfolio for a discussion of the risks associated with
an investment in those Portfolios. You should refer to the accompanying
prospectuses of the Portfolios for more complete information about their
investment policies and restrictions.
> INVESTMENT ADVISERS FOR EACH OF THE FUNDS:
Jefferson Pilot Variable Fund, Inc. ("JPVF")
The investment manager to JPVF is Jefferson Pilot Investment Advisory
Corporation ("JP Investment Advisory"), an affiliate of Ours. JP Investment
Advisory and JPVF have contracted with nine unaffiliated companies to act as
sub-investment managers to the Funds. They are:
o JPVF International Equity Portfolio: Lombard Odier International Portfolio
Management Limited ("Lombard Odier")
o JPVF World Growth Stock Portfolio: Templeton Global Advisors Limited
("Templeton")
o JPVF Global Hard Assets Portfolio: Van Eck Associates Corporation ("Van
Eck")
o JPVF Emerging Growth Portfolio: Massachusetts Financial Services Company
("MFS")
o JPVF Capital Growth Portfolio: Janus Capital Corporation ("Janus")
o JPVF Small Company Portfolio: Lord, Abbett & Co. ("Lord Abbett")
o JPVF Growth Portfolio: Strong Capital Management, Inc. ("Strong")
o JPVF Growth and Income Portfolio: Credit Suisse Asset Management, LLC
o JPVF Balanced Portfolio: Janus
o JPVF High Yield Bond: MFS
o JPVF S&P Index 500 Portfolio: Barclays Global Investors
o JPVF Money Market Portfolio: MFS
Fidelity Variable Insurance Products Fund - Fidelity Management & Research
Company ("FMR")
Fidelity Variable Insurance Products Fund II - FMR
MFS Variable Insurance Trust - Massachusetts Financial Services Company ("MFS")
Oppenheimer Variable Account Funds - OppenheimerFunds, Inc. ("Oppenheimer")
Templeton Variable Products Series Fund -Templeton Investment Counsel, Inc.
("TICI")
> MIXED AND SHARED FUNDING; CONFLICTS OF INTEREST
Shares of the Funds are available to insurance company separate accounts which
fund variable annuity contracts and variable life insurance policies, including
the Policy described in this Prospectus. Because Fund shares are offered to
separate accounts of both affiliated and unaffiliated insurance companies, it is
conceivable that, in the future, it may
14
<PAGE>
not be advantageous for variable life insurance separate accounts and variable
annuity separate accounts to invest in these Funds simultaneously, since the
interests of such Policyowners or contractholders may differ. Although neither
the Company nor the Funds currently foresees any such disadvantages either to
variable life insurance or to variable annuity Policyowners, each Fund's Board
of Trustees/Directors has agreed to monitor events in order to identify any
material irreconcilable conflicts which may possibly arise and to determine what
action, if any, should be taken in response thereto. If such a conflict were to
occur, one of the separate accounts might withdraw its investment in a Fund.
This might force that Fund to sell portfolio securities at disadvantageous
prices.
> FUND ADDITIONS, DELETIONS OR SUBSTITUTIONS
The Company reserves the right, subject to compliance with appropriate state and
federal laws, to add, delete or substitute shares of another Portfolio or Fund
for Portfolio shares already purchased or to be purchased in the future for the
Division in connection with the Policy. The Company may substitute shares of one
Portfolio for shares of another Portfolio if, among other things, (a) it is
determined that a Portfolio no longer suits the purpose of the Policy due to a
change in its investment objectives or restrictions; (b) the shares of a
Portfolio are no longer available for investment; or (c) in the Company's view,
it has become inappropriate to continue investing in the shares of the
Portfolio. Substitution may be made with respect to both existing investments
and the investment of any future premium payments. However, no substitution of
securities will be made without prior notice to Policyowners, and without such
prior approval of the SEC or other regulatory authorities as may be necessary,
all to the extent required and permitted by the Investment Company Act of 1940
or other applicable law.
We also reserve the right to make the following changes in the operation of the
Separate Account and the Divisions;
(a) to operate the Separate Account in any form permitted by law;
(b) to take any action necessary to comply with applicable law or obtain and
continue any exemption from applicable laws;
(c) to transfer assets from one Division to another, or from any Division to our
general account;
(d) to add, combine, or remove Divisions in the Separate Account;
(e) to assess a charge for taxes attributable to the operation of the Separate
Account or for other taxes, described in "Charges and Fees--Other Charges" on
page 10 above; and
(f) to change the way We assess other charges, as long as the total other
charges do not exceed the amount currently charged the Separate Account and the
Portfolios in connection with the Policies.
Portfolio shares are subject to certain investment restrictions which may not be
changed without the approval of the majority of the Portfolios' shareholders.
See accompanying Prospectus for the Portfolios.
> GENERAL ACCOUNT
Interests in the General Account have not been registered with the SEC in
reliance upon exemptions under the Securities Act of 1933, as amended and the
General Account has not been registered as an investment company under the 1940
Act. However, disclosure in this Prospectus regarding the General Account may be
subject to certain generally
15
<PAGE>
applicable provisions of the federal securities laws relating to the accuracy
and completeness of the statements. Disclosure in this Prospectus relating to
the Fixed Account has not been reviewed by the SEC.
The General Account is a fixed funding option available under the Policy. We
guarantee a minimum interest rate of 4.0% on amounts in the General Account and
assume the risk of investment gain or loss. The investment gain or loss of the
Separate Account or any of the Portfolios does not affect the General Account
Value.
The General Account is secured by the general assets of the Company. The general
assets of the Company include all assets of the Company other than those held in
separate accounts sponsored by the Company or its affiliates. The Company will
invest the assets of the General Account in those assets chosen by the Company,
as allowed by applicable law. Investment income of such General Account assets
will be allocated by the Company between itself and those policies participating
in the General Account.
The Company guarantees that, at any time, the General Account Value of Your
Policy will not be less than the amount of the Net Premiums allocated to the
General Account, plus any monthly accumulation value adjustment, plus interest
at an annual rate of not less than 4.0%, less the amount of any Withdrawals,
Policy Loans or Monthly Deductions, plus interest at an annual rate of not less
than 4.0%.
If You do not accept the Policy issued as applied for or you exercise Your "free
look" option, no interest will be credited and We will retain any interest
earned on the Initial Net Premium.
Policy Choices
- --------------------------------------------------------------------------------
> GENERAL
The Policy is designed to provide the Insured with lifetime insurance protection
and to provide You with flexibility in amount and frequency of premium payments
and level of life insurance proceeds payable under the Policy. It provides life
insurance coverage on the Insured with a Death Benefit payable on the Insured's
Death. You are not required to pay scheduled premiums to keep the Policy in
force and You may, subject to certain limitations, vary the frequency and amount
of premium payments.
To purchase a Policy, You must complete an application and submit it to Us
through the agent selling the Policy. You must furnish satisfactory evidence of
insurability. The Insured under the Policy must generally be under age 85 at the
time the application for the Policy is submitted. For ages 15 and over, the
Insured's smoking status is reflected in the current cost of insurance rates.
Policies issued in certain States will not directly reflect the Insured's sex in
either the premium rates or the charges or values under the Policy. We may
reject an application for any reason.
The minimum Specified Amount at issue is $25,000. We reserve the right to revise
Our rules to specify different minimum Specified Amounts at issue. We may
reinsure all or a portion of the Policy.
> PREMIUM PAYMENTS
The Policy is a flexible premium life insurance policy. This means that You may
decide when to make premium payments and in what amounts. You must pay your
premiums to Us at our home office or through one of Our authorized agents for
forwarding to Us. There is no fixed schedule of premium payment on the Policy
either as to amount or frequency. You may determine, within certain limits, Your
own premium payment schedule. No payment may be less than $250 ($50 for
electronic fund transfers). The Policy has a minimum premium period of 5 years.
16
<PAGE>
If You pay the Minimum Annual Premium, We guarantee that the Policy will stay in
force throughout the minimum premium period, even if the Surrender Value is
insufficient to pay a Monthly Deduction. The minimum initial premium will equal
the Minimum Annual Premium, divided by 4.
In order to help You obtain the insurance benefits You desire, We will state a
Planned Periodic Premium and Premium Frequency in the Policy. This premium will
generally be based on Your insurance needs and financial abilities, the
Specified Amount of the Policy and the Insured's age, sex and risk class. You
are not required to pay Planned Periodic Premiums. If you do not pay a Planned
Periodic Premium, Your Policy will not lapse, so long as the Policy's Surrender
Value is sufficient to pay the Monthly Deduction. Payment of the Planned
Periodic Premiums will not guarantee that Your Policy will remain in force. (See
"Grace Period")
> MODIFIED ENDOWMENT CONTRACT
The Policy will be allowed to become a Modified Endowment contract under the
Internal Revenue Code only with Your consent. Otherwise, if at any time the
premiums paid under the Policy exceed the limit for avoiding modified endowment
contract status, We will refund the excess premium to You with interest within
60 days after the end of the Policy Year in which the premium was received. If,
for any reason, We do not refund the excess premium within that 60-day period,
We will hold the excess premium in a separate deposit fund and credit it with
interest until refunded to You. The interest rate used on any refund, or
credited to the separate deposit fund created by this provision, will be the
excess premium's pro rata rate of return on the contract until the date We
notify You that the excess premium and the earnings on such excess premium have
been removed from the Policy. After the date of such notice, the interest rate
paid on the separate deposit fund will be such rate as We may declare from time
to time on advance premium deposit funds. We may also notify You of other
options available to You to keep the Policy in compliance.
> COMPLIANCE WITH THE INTERNAL REVENUE CODE
The Policy is intended to qualify as life insurance under the Internal Revenue
Code. The Death Benefit provided by the Policy is intended to qualify for the
federal income tax exclusion. If at any time the premium paid under the Policy
exceeds the amount allowable for such qualification, We will refund the excess
premium to You with interest within 60 days after the end of the Policy Year in
which it was received. If, for any reason, We do not refund the excess premium
within the 60-day period, such amount will be held in a separate deposit fund
and will be credited with interest until refunded to You. The interest rate used
on any refund, or credited to the separate deposit fund created by this
provision, will be the excess premium's pro rata rate of return on the contract
until the date We notify You that the excess premium and the earnings on such
excess premium have been removed from the Policy. After the date of such notice,
the interest rate paid on the separate deposit fund will be such rate as We may
declare from time to time on advance premium deposit funds.
We also reserve the right to refuse to make any change in the Specified Amount
or the Death Benefit Option or any other change if such change would cause the
policy to fail to qualify as life insurance under the Code.
17
<PAGE>
Backdating
Under limited circumstances, We may backdate a Policy, upon request, by
assigning a Policy Date earlier than the date the application is signed but no
earlier than six months prior to state approval of the Policy. Backdating may be
desirable so that You can purchase a particular Policy Specified Amount for
lower Cost of Insurance Rate based on a younger insurance age. For a backdated
Policy, We will assess policy fees and charges from the Policy Date. Backdating
of Your Policy will not affect the date on which Your premium payments are
credited to the Separate Account.
Allocation of Premiums
We will allocate premium payments, net of the premium tax charge, Federal DAC
tax charge and Premium Load, plus interest earned prior to the Allocation Date,
among the General Account and the divisions of the Separate Account in
accordance with Your directions to Us. The minimum percentage of any net premium
payment allocated to any division or the General Account is 5% and allocation
percentages must be in whole numbers only. Your initial premium (including any
interest) will be allocated, as You instructed, on the Allocation Date. Your
subsequent premiums will be allocated as of the date they are received in Our
Home Office. Prior to the Allocation Date, the initial net premium, and any
other premiums received, will be allocated to the General Account. (See "Right
of Policy Examination")
You may change Your premium allocation instructions at any time. Your request
may be written or by telephone, so long as the proper telephone authorization is
on file with Us. Allocations must be changed in whole percentages. The change
will be effective as of the date of the next premium payment after You notify
Us. We will send You confirmation of the change. (See "Transfers and Allocations
to Funding Options")
> DEATH BENEFIT OPTIONS
At the time of purchase, You must choose between the available Death Benefit
Options. The amount payable upon the Death of the Insured depends upon which
Death Benefit Option You choose.
Option 1: The Death Benefit will be the greater of the current Specified
Amount or the Accumulation Value on the Death of the Insured multiplied by the
corridor percentage, as described below.
Option 2: The Death Benefit equals the greater of the current Specified
Amount plus the Accumulation Value on the Death of the Insured or the
Accumulation Value on the date of death multiplied by the corridor percentage,
as described below.
The corridor percentage is used to determine a minimum ratio of Death Benefit to
Accumulation Value. This is required to qualify the Policy as life insurance
under the federal tax laws.
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<PAGE>
Death Benefit Qualification Test
You will also choose between the two Death Benefit qualification tests, the cash
value accumulation test and the guideline premium test. Once You have made your
choice, the Death Benefit qualification test cannot be changed.
The guideline premium test limits the amount of premium payable for an Insured
of a particular age and sex. It also applies a prescribed corridor percentage to
determine a minimum ratio of Death Benefit to Accumulation Value.
Following are the Corridor Percentages under the Guideline Premium Test:
Corridor Percentages (Attained Age of the Insured at the Beginning of the
Contract Year)
Age % Age % Age % Age %
--- --- --- --- --- --- --- ---
0-40 250% 50 185% 60 130% 70 115%
41 243 51 178 61 128 71 113
42 236 52 171 62 126 72 111
43 229 53 164 63 124 73 109
44 222 54 157 64 122 74 107
45 215 55 150 65 120 75-90 105
46 209 56 146 66 119 91 104
47 203 57 142 67 118 92 103
48 197 58 138 68 117 93 102
49 191 59 134 69 116 94+ 101
The cash value accumulation test requires that the Death Benefit be sufficient
to prevent the Accumulation Value, as defined in Section 7702 of the Code, from
ever exceeding the net single premium required to fund the future benefits under
the Policy. If the Accumulation Value is ever greater than the net single
premium at the Insured's age and sex for the proposed Death Benefit, the Death
Benefit will be automatically increased by multiplying the Accumulation Value by
a corridor percentage that is defined as $1000 divided by the net single
premium.
The tests differ as follows:
(1) the guideline premium test limits the amount of premium that You can pay
into Your Policy; the cash value accumulation test does not.
(2) the factors that determine the minimum Death Benefit relative to the
Policy's Accumulation Value are different. Required increases in the
minimum Death Benefit due to growth in Accumulation Value will generally
be greater under the cash value accumulation test.
(3) If You wish to pay premiums in excess of the guideline premium test
limitation, You should elect the cash value accumulation test. If you do
not wish to pay premiums in excess of the guideline premium test
limitations, You should consider the guideline premium test.
You should consult with a qualified tax adviser before choosing the Death
Benefit Qualification Test.
The following example demonstrates the Death Benefits under Options 1 and 2 for
the cash value accumulation test and the guideline premium test. The example
shows an Ensemble III Policy issued to a male, non-smoker, Age 45, at the time
of calculation of the Death Benefit. The Policy is in its 10th Policy Year and
there is no outstanding Policy Debt.
<TABLE>
<CAPTION>
Cash Value Accumulation Guideline Premium
Test Test
----------------------- -----------------
<S> <C> <C>
Specified Amount ....................... 100,000 100,000
Accumulation Value ..................... 52,500 52,500
Corridor Percentage .................... 294% 215%
Death Benefit Option I ................. 154,088 112,875
Death Benefit Option II ................ 154,088 152,500
</TABLE>
Under any of the Death Benefit Options, the Death Benefit will be reduced by a
Withdrawal. (See "Withdrawals") The Death Benefit payable under any of the
Options will also be reduced by the amount necessary to repay the Policy Debt in
full and, if the Policy is within the Grace Period, any payment required to keep
the Policy in force.
The Death Benefit will be set at 101% of the Cash Value on the Policy
Anniversary Date nearest the Insured's Attained Age 100.
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<PAGE>
After We issue the Policy, You may, subject to certain restrictions, change the
Death Benefit selection by sending Us a request in writing. If you change the
Death Benefit option from Option 2 to Option 1, the Specified Amount will be
increased by the Policy's Accumulation Value on the effective date of the
change. If you change the Death Benefit option from Option 1 to Option 2, the
Specified Amount will be decreased by the Policy's Accumulation Value on the
effective date of the change. We will require evidence of insurability on a
request for a change from Option 1 to Option 2.
> TRANSFERS AND ALLOCATIONS TO FUNDING OPTIONS
You may transfer all or part of the Accumulation Value to any other Portfolio or
to the General Account at any time. Funds may be transferred between the
Portfolios or from the Portfolios to the General Account. We currently permit 12
transfers per year without imposing any transfer charge. For transfers over 12
in any Policy Year, We will impose a transfer charge of $50, which We will
deduct on a pro rata basis from the Division or Divisions or the General Account
into which the amount is transferred, unless You specify otherwise. We will not
impose a Transfer Charge on the transfer of any Net Premium payments received
prior to the Allocation Date, plus interest earned, from the General Account to
the Divisions on the Allocation Date, or on loan repayments. We will not impose
a Transfer Charge for transfers under the Dollar Cost Averaging or Portfolio
Rebalancing features. You may currently make up to 20 transfers per Policy Year.
We reserve the right to modify transfer privileges and charges.
You may at any time transfer 100% of the Policy's Accumulation Value to the
General Account and choose to have all future premium payments allocated to the
General Account. After You do this, the minimum period the Policy will be in
force will be fixed and guaranteed. The minimum period will depend on the amount
of Accumulation Value, the Specified Amount, the sex, Attained Age and rating
class of the Insured at the time of transfer. The minimum period will decrease
if You choose to surrender the Policy or make a withdrawal. The minimum period
will increase if You choose to decrease the Specified Amount, make additional
premium payments, or We credit a higher interest rate or charge a lower cost of
insurance rate than those guaranteed for the General Account.
Except for transfers in connection with Dollar Cost Averaging, Automatic
Portfolio Rebalancing and loan repayments, We allow transfers out of the General
Account to the Divisions only once in every 180 days and limit their amount to
the lesser of (a) 25% of the Accumulation Value in the General Account not being
held as loan collateral, or (b) $100,000. Any other transfer rules, including
minimum transfer amounts, also apply. We reserve the right to modify these
restrictions.
We will not impose a transfer charge for a transfer of all Accumulation Value in
the Separate Account to the General Account. A transfer from the General Account
to the Divisions of the Separate Account will be subject to the transfer charge
unless it is one of the first 12 transfers in a Policy Year and except for the
transfer of any Net Premium payments received prior to the Allocation Date, plus
interest earned, from the General Account and loan repayments.
We reserve the right to refuse or restrict transfers made by third-party agents
on behalf of Policyowner or pursuant to market timing services when We determine
that such transfers will be detrimental to the Portfolios, Policyowner or You.
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<PAGE>
> TELEPHONE TRANSFERS, LOANS AND REALLOCATIONS
You, your authorized representative, or a member of his/her administrative staff
may request a transfer of Accumulation Value or reallocation of premiums
(including allocation changes relating to existing Dollar Cost Averaging and
Automatic Portfolio Rebalancing programs) either in writing or by telephone. In
order to make telephone transfers, You must complete a written telephone
transfer authorization form and return it to Us at our Home Office. All
transfers must be in accordance with the terms of the Policy. If the transfer
instructions are not in good order, the Company will not execute the transfer
and You will be notified.
We may also permit loans to be made by telephone, provided that Your
authorization form is on file with Us. Only You may request loans by telephone.
We will use reasonable procedures, such as requiring identifying information
from callers, recording telephone instructions, and providing written
confirmation of transactions, in order to confirm that telephone instructions
are genuine. Any telephone instructions which We reasonably believe to be
genuine will be Your responsibility, including losses arising from any errors in
the communication of instructions. As a result of this procedure, You will bear
the risk of loss. If We do not use reasonable procedures, as described above, We
may be liable for losses due to unauthorized instructions.
> AUTOMATED TRANSFERS (DOLLAR COST AVERAGING AND PORTFOLIO REBALANCING)
Dollar Cost Averaging describes a system of investing a uniform sum of money at
regular intervals over an extended period of time. Dollar Cost Averaging is
based on the economic fact that buying a security with a constant sum of money
at fixed intervals results in acquiring more of the item when prices are low and
less of it when prices are high.
You may establish automated transfers of a specific dollar amount (the "Periodic
Transfer Amount") on a monthly, quarterly or semi-annual basis from the Money
Market Division or the General Account to any other Portfolio or to the General
Account. You must have a minimum of $3,000 allocated to either the Money Market
Division or the General Account in order to enroll in the Dollar Cost Averaging
program. The minimum Periodic Transfer Amount is $250. A minimum of 5% of the
Periodic Transfer Amount must be transferred to any specified Division. There is
no additional charge for the program. You may start or stop participation in the
Dollar Cost Averaging program at any time, but You must give Us at least 30
days' notice to change any automated transfer instructions that are currently in
place. We reserve the right to suspend or modify automated transfer privileges
at any time.
You may elect an Automatic Portfolio Rebalancing feature which provides a method
for reestablishing fixed proportions between various types of investments on a
systematic basis. Under this feature, We will automatically readjust the
allocation between the Divisions and the General Account to the desired
allocation, subject to a minimum of 5% per Division or General Account, on a
quarterly, semi-annual or annual basis. There is no additional charge for the
program.
You may not elect Dollar Cost Averaging and Automatic Portfolio Rebalancing at
the same time. We will make transfers and adjustments pursuant to these features
on the Policy's Monthly Anniversary Date in the month when the transaction is to
take place, or
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<PAGE>
the next succeeding business day if the Monthly Anniversary Date falls on a
holiday or weekend. We must have an authorization form on file before either
feature may begin. Transfers under these features are not subject to the
transfer fee and do not count toward the 12 free transfers or the 20 transfer
maximum currently allowed per year.
Before participating in the Dollar Cost Averaging or Automatic Portfolio
Rebalancing programs, You should consider the risks involved in switching
between investments available under the Policy. Dollar Cost Averaging requires
regular investments regardless of fluctuating price levels, and does not
guarantee profits or prevent losses. Automatic Portfolio Rebalancing is
consistent with maintaining your allocation of investments among market
segments, although it is accomplished by reducing your Accumulation Value
allocated to the better performing segments. Therefore, You should carefully
consider market conditions and each Fund's investment policies and related risks
before electing to participate in the Dollar Cost Averaging or Automatic
Portfolio Rebalancing programs.
Policy Values
- --------------------------------------------------------------------------------
> ACCUMULATION VALUE
The Accumulation Value of Your Policy is determined on a daily basis.
Accumulation Value is the sum of the values in the Divisions plus the value in
the General Account. We calculate Your Policy's Accumulation Value in the
Divisions by units and unit values under the Policies. Your Policy's
Accumulation Value will reflect the investment experience of the Divisions
investing in the Portfolios, any additional net premiums paid, any withdrawals,
any policy loans, and any charges assessed in connection with the Policy. We do
not guarantee Accumulation Values in the Separate Account as to dollar amount.
On the Allocation Date, the Accumulation Value in the Separate Account (the
"Separate Account Value") equals the initial premium payments, less the premium
load and the State Premium Tax and Federal DAC Tax Charges, plus interest earned
prior to the Allocation Date, and less the Monthly Deduction for the first
policy month. We will establish the initial number of units credited to the
Separate Account for Your Policy on the Allocation Date. At the end of each
Valuation Period thereafter, the Accumulation Value in a Division is
(i) the Accumulation Value in the Division on the preceding Valuation Date
multiplied by the net investment factor, described below, for the current
Valuation Period, plus
(ii) any Net Premium We receive during the current Valuation Period which is
allocated to the Division, plus
(iii) all Accumulation Value transferred to the Division from another Division
or the General Account during the current Valuation Period, minus
(iv) the Accumulation Value transferred from the Division to another Division or
the General Account and Accumulation Value transferred to secure a Policy Debt
during the current Valuation Period, minus
(v) all withdrawals from the Division during the current Valuation Period.
Whenever a Valuation Period includes the Monthly Anniversary Date, the Separate
Account Value at the end of such period is reduced by the portion of the monthly
deduction and increased by any Accumulation Value Adjustment allocated to the
Divisions.
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<PAGE>
We will calculate a guaranteed monthly Accumulation Value Adjustment at the
beginning of the second Policy Year and every Policy Year thereafter. The
adjustment will be allocated among the General Account and the Divisions in the
same proportion as premium payments. The adjustment is calculated as (i)
multiplied by the total of (ii) plus (iii) minus (iv), but not less than zero,
where:
(i) is the lesser of .40% and the excess of the mortality and expense risk
charge currently assessed over .20% in Policy Years 2 through 25 and the lesser
of .25% and the excess of the mortality and expense risk charge currently
assessed over .10% in Policy Years 26 and thereafter;
(ii) is the amount allocated to the Divisions at the beginning of the Policy
Year;
(iii) is the Type B loan balance at the beginning of the Policy Year; and
(iv) is the Guideline Single Premium at issue under Section 7702 of the Code.
See "Policy Loans" for a description of Type B loans.
> Unit Values
We credit Units to You upon allocation of Net Premiums to a Division. Each Net
Premium payment you allocate to a Division will increase the number of units in
that Division. We credit both full and fractional units. We determine the number
of units and fractional units by dividing the Net Premium payment by the unit
value of the Division to which You have allocated the payment. We determine each
Division's unit value on each Valuation Date. The number of units credited to
Your Policy will not change because of subsequent changes in unit value. The
number is increased by subsequent contributions or transfers allocated to a
Division, and decreased by charges and withdrawals from that Division. The
dollar value of each Division's units will vary depending on the investment
performance of the corresponding Portfolio, as well as any expenses charged
directly to the Separate Account.
The initial Unit Value of each Division's units was $10.00. Thereafter, the Unit
Value of a Division on any Valuation Date is calculated by multiplying the
Division's Unit Value on the previous Valuation Date by the Net Investment
Factor for the Valuation Period then ended.
> Net Investment Factor
The Net Investment Factor measures each Division's investment experience and is
used to determine changes in Unit Value from one Valuation Period to the next.
We calculate the Net Investment Factor by dividing (1) by (2) and subtracting
(3) from the result, where:
(1) is the sum of:
(a) the Net Asset Value of a Fund share held in the Separate Account for that
Division determined at the end of the current Valuation Period; plus
(b) the per share amount of any dividend or capital gain distributions made for
shares held in the Separate Account for that Division if the ex-dividend date
occurs during the Valuation Period;
(2) is the Net Asset Value of a Fund share held in the Separate Account for that
Division determined as of the end of the preceding Valuation Period; and
(3) is the daily charge representing the Mortality & Expense Risk Charge. This
charge is equal, on an annual basis, to a percentage of the average daily Net
Asset Value of Fund shares held in the Separate Account for that Division.
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<PAGE>
Because the Net Investment Factor may be greater than, less than or equal to 1,
values in a Division may increase or decrease from Valuation Period to Valuation
Period.
The General Account Value reflects amounts allocated to the General Account
through payment of premiums or transfers from the Separate Account, plus
interest credited to those amounts. Amounts allocated to the General Account,
and interest thereon, are guaranteed; however there is no assurance that the
Separate Account Value of the Policy will equal or exceed the Net Premiums paid
and allocated to the Separate Account.
You will be advised at least annually as to the number of Units which remain
credited to the Policy, the current Unit Values, the Separate Account Value, the
General Account Value, and the Accumulation Value.
> SURRENDER VALUE
The Surrender Value of the Policy is the amount You can receive in cash by
surrendering the Policy. The Surrender Value will equal (a) the Accumulation
Value on the date of surrender; less (b) the Surrender Charge; less (c) the
Policy Debt. (See Charges Deducted Upon Surrender)
24
<PAGE>
Policy Rights
- --------------------------------------------------------------------------------
> SURRENDERS
By Written Request, You may surrender the Policy for its Surrender Value at any
time while the Insured is alive. All insurance coverage under the Policy will
end on the date of the Surrender. All or part of the Surrender Value may be
applied to one or more of the Settlement Options described in this Prospectus or
in any manner to which We agree and that We make available. (See Right to Defer
Payment, Policy Settlement and Payment of Benefits)
WITHDRAWALS
By Written Request, You may, at any time after the expiration of the Free Look
Period, make withdrawals from the Policy. A $50 Charge will be deducted from the
amount of the Cash Value which You withdraw. We will also deduct a pro rata
Surrender Charge. The minimum amount of any withdrawal after the $50 charge is
applied is $500. The amount You withdraw cannot exceed the Surrender Value.
Withdrawals will generally affect the Policy's Accumulation Value, Cash Value
and the life insurance proceeds payable under the Policy as follows.
o The Policy's Cash Value will be reduced by the amount of the withdrawal;
o The Policy's Accumulation Value will be reduced by the amount of the
withdrawal plus any applicable pro rata Surrender Charge;
o Life insurance proceeds payable under the Policy will generally be reduced
by the amount of the withdrawal plus any applicable pro rata Surrender
Charge, unless the withdrawal is combined with a request to maintain the
Specified Amount.
The withdrawal will reduce the Policy's values as described in the "Charges
Deducted Upon Surrender" section.
If the Death Benefit Option for the Policy is Option 1, a withdrawal will reduce
the Specified Amount. However, We will not allow a withdrawal if the Specified
Amount will be reduced below $25,000.
If the Death Benefit Option for the Policy is Option 2, a withdrawal will reduce
the Accumulation Value, usually resulting in a dollar-per-dollar reduction in
the life insurance proceeds payable under the Policy.
You may allocate a withdrawal among the Divisions and the General Account. If
you do not make such an allocation, We will allocate the withdrawal among the
Divisions and the General Account in the same proportion that the Accumulation
Value in each Division and the General Account Value, less any Policy Debt,
bears to the total Accumulation Value of the Policy, less any Policy Debt. (See
Right to Defer Payment, Policy Changes and Payment of Benefits)
> GRACE PERIOD
Generally, on any Monthly Anniversary Date, if Your Policy's Surrender Value is
insufficient to satisfy the Monthly Deduction, we will allow you 61 days of
grace for payment of an amount sufficient to continue coverage. We call this
"lapse pending status". During the first five policy years, however, if you have
paid the required cummulative minimum premiums, Your Policy will not enter the
Grace Period regardless of declines in the Surrender Value.
Written notice will be mailed to Your last known address, according to Our
records, not less than 61 days before termination of the Policy. This notice
will also be mailed to the last known address of any assignee of record.
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<PAGE>
The Policy will stay in force during the Grace Period. If the Insured dies
during the Grace Period, we will reduce the Death Benefit by the amount of any
Monthly Deduction due and the amount of any outstanding Policy Debt.
If payment is not made within 61 days after the Monthly Anniversary Day, the
Policy will terminate without value at the end of the Grace Period.
> REINSTATEMENT OF A LAPSED OR TERMINATED POLICY
If the Policy terminates as provided in its Grace Period provision, it may be
reinstated. To reinstate the Policy, the following conditions must be met:
o The Policy has not been fully surrendered.
o You must apply for reinstatement within 5 years after the date of
termination and before the Insured's Attained Age 100.
o We must receive evidence of insurability satisfactory to Us.
o We must receive a premium payment sufficient to keep the Policy in force
for the current month plus two additional months.
o If a loan was outstanding at the time of lapse, We will require that
either You repay or reinstate the loan.
o Supplemental Benefits will be reinstated only with Our consent. (See Grace
Period and Premium Payments)
> COVERAGE BEYOND INSURED'S ATTAINED AGE 100
At the Insured's Attained Age 100, We will make several changes to Your Policy.
At that point and thereafter, the Specified Amount will equal the current
Accumulation Value. The Death Benefit will be set to Option 1 and will equal
101% of the Specified Amount less Policy Debt. We will no longer deduct any Cost
of Insurance charges, the Monthly Accumulation Value Adjustment will cease and
no new premiums will be accepted.
> RIGHT TO DEFER PAYMENT
Payments of any Separate Account Value will be made within 7 days after Our
receipt of Your Written Request. However, We reserve the right to suspend or
postpone the date of any payment of any benefit or values for any Valuation
Period (1) when the New York Stock Exchange is closed (except holidays or
weekends); (2) when trading on the Exchange is restricted; (3) when an emergency
exists as determined by the SEC so that disposal of the securities held in the
Funds is not reasonably practicable or it is not reasonably practicable to
determine the value of the Funds' net assets; or (4) during any other period
when the SEC, by order, so permits for the protection of security holders. For
payment from the Separate Account in such instances, We may defer payment of
Full Surrender and Withdrawal Values, any Death Benefit in excess of the current
Specified Amount, transfers and any portion of the Loan Value.
Payment of any General Account Value may be deferred for up to six months,
except when used to pay amounts due Us.
> POLICY LOANS
We will grant loans at any time after the expiration of the Right of Policy
Examination. The amount of the loan will not be more than the Loan Value. Unless
otherwise required by state law, the Loan Value for this Policy is 100% of Cash
Value at the end of the Valuation Period during which the loan request is
received. The maximum amount You can borrow at any time is the Loan Value
reduced by any outstanding Policy Debt.
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<PAGE>
We will usually disburse loan proceeds within seven days from the Date of
Receipt of a loan request, although we reserve the right to postpone payments
under certain circumstances. See "OTHER MATTERS--Postponement of Payments". We
may, in our sole discretion, allow You to make loans by telephone if You have
filed a proper telephone authorization form with Us. So long as your Policy is
in force and the Insured is living, You may repay your loan in whole or in part
at any time without penalty.
Accumulation Value equal to the loan amount will be maintained in the General
Account to secure the loan. You may allocate a policy loan among the Divisions
of the Separate Account and the existing General Account value that is not
already allocated to secure a Policy Loan, and We will transfer Separate Account
Value as You have indicated. If you do not make this allocation, the loan will
be allocated among the Divisions and the General Account in the same proportion
that the Accumulation Value in each Division and the Accumulation Value in the
General Account less Policy Debt bears to the total Accumulation Value of the
Policy, less Policy Debt, on the date of the loan. We will make a similar
allocation for unpaid loan interest due. A policy loan removes Accumulation
Value from the investment experience of the Separate Account, which will have a
permanent effect on the Accumulation Value and Death Benefit even if the loan is
repaid. General Account Value equal to Policy Debt will accrue interest daily at
an annual rate of 4%.
We will charge interest on any outstanding Policy Debt with the interest
compounded annually. There are two types of loans available. A Type A loan is
charged the same interest rate as the interest credited to the amount of the
Accumulation Value held in the General Account to secure loans, which is an
effective annual rate of 4%. The amount available at any time for a Type A loan
is the maximum loan amount, less the Guideline Single Premium at issue, adjusted
on a pro rata basis for increases in Specified Amount, as set forth in the Code,
less any outstanding Type A loans. Any other loans are Type B loans. A Type B
loan is charged an effective annual interest rate of 5%. One loan request can
result in both a Type A and a Type B loan. A loan request will first be granted
as a Type A loan, to the extent available, and then as a Type B loan. Once a
loan is granted, it remains a Type A or Type B loan until it is repaid. Interest
is due and payable at the end of each Policy Year and any unpaid interest due
becomes loan principal.
If Policy Debt exceeds Cash Value, We will notify You and any assignee of
record. You must make a payment within 61 days from the date Policy Debt exceeds
Cash Value or the Policy will lapse and terminate without value (See "Grace
Period"). If this happens, You may be taxed on the total appreciation under the
Policy. However, You may reinstate the Policy, subject to proof of insurability
and payment of a reinstatement premium. See "Reinstatement of a Lapsed Policy".
You may repay the Policy Debt, in whole or in part, at any time during the
Insured's life, so long as the Policy is in force. The amount necessary to repay
all Policy Debt in full will include any accrued interest. If there is any
Policy Debt, We will apply payments received from you as follows: We will apply
payments as premium in the amount of the Planned Periodic Premium, received at
the Premium Frequency, unless You specifically designate the payment as a loan
repayment. We will apply payments in excess of the Planned Periodic Premium or
payments received other than at the Premium Frequency, first as policy loan
repayments, then as premium when you have repaid the Policy Debt.
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<PAGE>
If You have both a Type A and a Type B loan, we will apply repayments first to
the Type B loan and then to the Type A loan. Upon repayment of all or part of
the Policy Debt, We will transfer the Policy's Accumulation Value securing the
repaid portion of the debt in the General Account to the Divisions and the
General Account in the same proportion in which the loan was taken.
An outstanding loan amount will decrease the Surrender Value available under the
Policy. For example, if a Policy has a Surrender Value of $10,000, You may take
a loan of 100% or $10,000, leaving a new Surrender Value of $0. If a loan is not
repaid, the decrease in the Surrender Value could cause the Policy to lapse. In
addition, the Death Benefit will be decreased because of an outstanding Policy
Loan. Furthermore, even if You repay the loan, the amount of the Death Benefit
and the Policy's Surrender Value may be permanently affected since the Loan
Value is not credited with the investment experience of the Funds.
> POLICY CHANGES
You may make changes to Your Policy, as described below, by submitting a Written
Request to Our Home Office. Supplemental Policy Specification pages and/or a
notice confirming the change will be sent to You once the change is completed.
Increase or Decrease in Specified Amount
You may increase the Specified Amount at any time after the Policy has been
issued or you may decrease the Specified Amount of this Policy after the 1st
Policy Year, so long as You are under attained age 100 and You send Us a written
request and the Policy to Our home office. However:
o Any increase or decrease must be at least $25,000
o Any increase or decrease will affect Your cost of insurance charge
o Any increase or decrease may affect the monthly Accumulation Value
Adjustment
o We may require evidence of insurability for an increase
o Any increase will affect the amount available for a Type A loan, but a
decrease will not have any such effect
o Any increase will be effective on the Monthly Anniversary Date after the
Date of Receipt of the request
o We will assess a charge against the Accumulation Value on the Monthly
Anniversary Date that an increase takes effect. This charge is an amount
per $1000 of increase in Specified Amount, which varies by sex, attained
age, and rating class of the Insured at the time of the increase
o We will assess a pro rata surrender charge on decreases
o Any decrease may result in federal tax implications (See "Federal Tax
Matters")
o No decrease may decrease the Specified Amount below $25,000.
o Any decrease will first apply to coverage provided by the most recent
increase, then to the next most recent, and so on, and finally to the
coverage under the original application
Change in Death Benefit Option
Any change in the Death Benefit Option is subject to the following conditions:
o The change will take effect on the Monthly Anniversary Date on or next
following the date on which Your Written Request is received.
o There will be no change in the Surrender Charge.
o Evidence of insurability may be required.
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<PAGE>
o Changes from Option 1 to 2 will be allowed at any time while this Policy
is in force, subject to evidence of insurability satisfactory to Us. The
Specified Amount will be reduced to equal the Specified Amount less the
Accumulation Value at the time of the change.
If the change decreases the Specified Amount below the minimum of $25,000, We
will increase the Specified Amount to $25,000.
Changes from Option 2 to 1 will be allowed at any time while this Policy is in
force. The new Specified Amount will be increased to equal the Specified Amount
plus the Accumulation Value as of the date of the change. (See Surrender Charge
and Right of Policy Examination)
> RIGHT OF POLICY EXAMINATION ("FREE LOOK PERIOD")
The Policy has a free look period during which You may examine the Policy. If
for any reason You are dissatisfied, You may return the Policy to Us at Our
Service Office or to Our representative within 10 days of delivery of the Policy
to You (or within a different period if required by State law). Return the
Policy to Jefferson Pilot Financial Insurance Company at One Granite Place,
Concord, New Hampshire 03301. Upon its return, the Policy will be deemed void
from its beginning. We will return to You within seven days all payments We
received on the Policy. Prior to the Allocation Date, We will hold the initial
Net Premium, and any other premiums we receive, in Our General Account. We will
retain any interest earned if the Free Look right is exercised, unless otherwise
required by State law.
> SUPPLEMENTAL BENEFITS
The supplemental benefits currently available as riders to the Policy include
the following:
o Supplemental Coverage Rider--allows for scheduled annual increases in
Specified Amount, subject to the terms of the rider.
o Additional Specified Amount Rider--provides added protection benefit on
the Insured, subject to the terms of the rider.
These riders may not be available in all states.
Other riders for supplemental benefits may become available under the Policy
from time to time. The charges for each of these riders are described in Your
Policy.
Death Benefit
- --------------------------------------------------------------------------------
The Death Benefit under the Policy will be paid in a lump sum unless You or the
beneficiary have elected that they be paid under one or more of the available
Settlement Options.
Payment of the Death Benefit may be delayed if the Policy is being contested.
You may elect a Settlement Option for the beneficiary and deem it irrevocable.
You may revoke or change a prior election. The beneficiary may make or change an
election within 90 days of the Death of the Insured, unless You have made an
irrevocable election.
All or part of the Death Benefit may be applied under one of the Settlement
Options, or such options as We may choose to make available in the future.
If the Policy is assigned as collateral security, We will pay any amount due the
assignee in a lump sum. Any excess Death Benefit due will be paid as elected.
(See "Right to Defer Payment" and "Policy Settlement")
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<PAGE>
Policy Settlement
- --------------------------------------------------------------------------------
We will pay proceeds in whole or in part in the form of a lump sum or the
Settlement Options available under the Policy upon the death of the Insured or
upon Surrender.
A Written Request may be made to elect, change or revoke a Settlement Option
before payments begin under any Settlement Option. This request will take effect
upon its filing at Our Home Office. If no Settlement Option has been elected by
You when the Death Benefit becomes payable to the beneficiary, that beneficiary
may make the election.
> SETTLEMENT OPTIONS
The following Settlement Options are available under the Policy:
Option A--Installments of a specified amount. Payments of an agreed amount to be
made monthly until the proceeds and interest are exhausted.
Option B--Installments for a specified period. Payments to be made monthly for
an agreed number of years.
Option C--Life Income. Payments to be made each month for the lifetime of the
payee. We guarantee that payments will be made for a minimum of 10, 15 or 20
years, as agreed upon.
Option D--Interest. We will pay interest on the proceeds We hold, calculated at
the compound rate of 3% per year. We will make interest payments at 12, 6, 3 or
1 month intervals.
Option E--Interest: Retained Asset Account (Performance Plus Account). We will
pay interest on the proceeds We hold, based on the floating 13-week U.S.
Treasury Bill rate fixed quarterly. The payee can write checks against such
account at any time and in any amount up to the total in the account. The checks
must be for a minimum of $250.
The interest rate for Options A, B and D will not be less than 3% per year. The
interest rate for Option C will not be less than 2.5% per year. The interest
rate for Option E will not be less than 2% per year.
Unless otherwise stated in the election of any option, the payee of the policy
benefits shall have the right to receive the withdrawal value under that option.
For Options A, D and E, the withdrawal value shall be any unpaid balance of
proceeds plus accrued interest. For Option B, the withdrawal value shall be the
commuted value of the remaining payments. We will calculate this withdrawal
value on the same basis as the original payments. For Option C, the withdrawal
value will be the commuted value of any remaining guaranteed payments. If the
payee is alive at the end of the guarantee period, We will resume the payment on
that date. The payment will then continue for the lifetime of the payee.
If the payee of policy benefits dies before the proceeds are exhausted or the
prescribed payments made, a final payment will be made in one sum to the estate
of the last surviving payee. The amount to be paid will be calculated as
described for the applicable option in the Withdrawal Value provision of the
Policy.
At least $25,000 of Policy proceeds must be applied to each settlement option
chosen. We reserve the right to change payment intervals to increase payments to
$250 each.
Calculation of Settlement Option Values
The value of the Settlement Options will be calculated as set forth in the
Policy.
The Company
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Jefferson Pilot Financial Insurance Company ("JP Financial" or "the Company") is
a stock life insurance company chartered in 1903 in Tennessee and redomesticated
to New Hampshire in 1991. Prior to May 1, 1998, JP Financial was known as Chubb
Life Insurance Company of America. In April 30, 1997, Chubb Life, formerly a
wholly-owned subsidiary of The Chubb Corporation, became a wholly-owned
subsidiary of Jefferson-Pilot Corporation, a North Carolina corporation. The
principal offices of Jefferson-Pilot Corporation are located at 100 North Greene
Street, Greensboro, North Carolina 27401; its telephone number is 336-691-3000.
Chubb Life changed its name to Jefferson Pilot Financial Insurance Company
effective May 1, 1998. JP Financial's home office and service center are located
at One Granite Place, Concord, New Hampshire 03301; its telephone number is
800-258-3648.
The Company is licensed to do life insurance business in forty-nine states of
the United States, the District of Columbia, Puerto Rico, the U.S. Virgin
Islands, Guam and the Commonwealth of the Northern Mariana Islands.
At December 31, 1998 the Company and its subsidiaries had total assets of
approximately $5.5 billion and had over $68 billion of insurance in force, while
total assets of Jefferson-Pilot Corporation and its subsidiaries (including the
Company) were approximately $24 billion.
The Company writes individual life insurance and annuities. It is subject to New
Hampshire law governing insurance.
The Company is currently rated AAA (Superior) by Duff & Phelps, AAA (Superior)
by Standard & Poor's Corporation and A+ (Superior) by A.M. Best and Company.
These ratings do not apply to JPF Separate Account A, but reflect the opinion of
the rating companies as to the Company's relative financial strength and ability
to meet its contractual obligations to its policyowners.
DIRECTORS AND OFFICERS
- --------------------------------------------------------------------------------
MANAGEMENT OF JP FINANCIAL
Executive Officers and Directors of JP Financial
Directors
Principal Occupation and
Name Business Address
- --------------------------------------------------------------------------------
Dennis R. Glass ............. Executive Vice President (also serves
as Executive Vice President, Chief
Financial Officer and Treasurer of
Jefferson-Pilot Corporation and
Jefferson-Pilot Life Insurance Company)
100 North Greene Street Greensboro,
North Carolina 27401
Kenneth C. Mlekush .......... President (also serves as Executive
Vice President of Jefferson-Pilot Life
Insurance Company) 100 North Greene
Street Greensboro, North Carolina 27401
David A. Stonecipher ........ Chairman and Chief Executive Officer
(also serves as President and Chief
Executive Officer of Jefferson-Pilot
Life Insurance Company) 100 North
Greene Street Greensboro, North
Carolina 27401
E. Jay Yelton ............... Executive Vice President Also serves as
Executive Vice President of
Jefferson-Pilot Life Insurance Company
100 North Greene Street Greensboro,
North Carolina 27401
Executive Officers (Other Than Directors)
Name Position
- ---- --------
Charles C. Cornelio ......... Executive Vice President
Leslie L. Durland ........... Executive Vice President
John D. Hopkins ............. Executive Vice President, General Counsel
Reggie D. Adamson ........... Senior Vice President
Ronald R. Angarella ......... Senior Vice President
John C. Ingram .............. Senior Vice President
Hal B. Phillips, Jr. ........ Senior Vice President, Chief Life Actuary
Richard T. Stange ........... Senior Vice President, Deputy General Counsel
John W. Wells ............... Senior Vice President
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<PAGE>
Name Position
- ---- --------
James R. Abernathy .......... Vice President
Margaret O. Cain ............ Vice President
Rebecca M. Clark ............ Vice President
Kenneth S. Dwyer ............ Vice President
Richard C. Dielensnyder ..... Vice President
Peter N. Ellinwood .......... Vice President
Ronald H. Emery ............. Vice President
Donald M. Kane .............. Vice President
Patrick A. Lang ............. Vice President
Shari J. Lease .............. Vice President
Donna L. Metcalf ............ Vice President
Thomas E. Murphy, Jr. M.D. .. Vice President and Medical Director
Robert A. Reed .............. Vice President
James M. Sandelli ........... Vice President
Russell C. Simpson .......... Vice President and Treasurer
Francis A. Sutherland, Jr. .. Vice President
John A. Thomas .............. Vice President
John A. Weston .............. Vice President
The officers and employees of JP Financial who have access to the assets of
Separate Account A are covered by a fidelity bond issued by American
International Group in the amount of $20,000,000.
Additional Information
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> REPORTS TO POLICYOWNERS
We will maintain all records relating to the Separate Account. At least once in
each Policy Year, We will send You an Annual Summary containing the following
information:
1. A statement of the current Accumulation Value and Cash Value since the prior
report or since the Issue Date, if there has been no prior report;
2. A statement of all premiums paid and all charges incurred;
3. The balance of outstanding Policy Loans for the previous calendar year;
4. Any reports required by the 1940 Act.
We will promptly mail confirmation notices at the time of the following
transactions:
1. policy issue;
2. receipt of premium payments;
3. initial allocation among Divisions on the Allocation Date;
4. transfers among Divisions;
5. change of premium allocation;
6. change between Death Benefit Options;
7. increases or decreases in Specified Amount;
8. withdrawals, surrenders or loans;
9. receipt of loan repayments;
10. reinstatements; and
11. redemptions due to insufficient funds.
> RIGHT TO INSTRUCT VOTING OF FUND SHARES
In accordance with our view of present applicable law, We will vote the shares
of the Funds held in the Separate Account in accordance with instructions
received from Policyowners having a voting interest in the Funds. Policyowners
having such an interest will receive periodic reports relating to the Fund,
proxy material and a form for giving voting instructions. The number of shares
You have a right to vote will be determined as of a record date established by
the Fund. The number of votes that You are entitled to direct with respect to a
Fund will be determined by dividing Your Policy's Accumulation Value in a
Division by the net asset value per share of the corresponding Portfolio in
which the Division invests. We will solicit Your voting instructions by mail at
least 14 days before any shareholders meeting.
We will cast the votes at meetings of the shareholders of the Fund and will be
based on instructions received from Policyowners. However, if the Investment
Company Act of
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1940 or any regulations thereunder should be amended or if the present
interpretation should change, and as a result We determine that We are permitted
to vote the shares of the Fund in our right, We may elect to do so.
We will vote Fund shares for which We do not receive timely instructions and
Fund shares which are not otherwise attributable to Policyowners in the same
proportion as the voting instruction which We receive for all Policies
participating in each Fund through the Separate Account.
> DISREGARD OF VOTING INSTRUCTIONS
When required by state insurance regulatory authorities, We may disregard voting
instructions if the instructions require that the shares be voted so as to cause
a change in the sub-classification or investment objectives of a Fund or to
approve or disapprove an investment advisory contract for a Fund. We may also
disregard voting instructions initiated by a Policyowner in favor of changes in
the investment policy or the investment adviser of the Fund if We reasonably
disapprove of such changes.
We only disapprove a change if the proposed change is contrary to state law or
prohibited by state regulatory authorities or if We determine that the change
would have an adverse effect on the Separate Account if the proposed investment
policy for a fund would result in overly speculative or unsound investments. In
the event that We do disregard voting instructions, a summary of that action and
the reasons for such action will be included in the next annual report to
Policyowners.
> STATE REGULATION
The Policy will be offered for sale in all jurisdictions where the Company is
authorized to do business and where the Policy has been approved by the
appropriate Insurance Department or regulatory authorities.
> LEGAL MATTERS
We know of no pending material legal proceedings pending to which either the
Separate Account or the Company is a party or which would materially affect the
Separate Account. The legal validity of the securities described in the
prospectus has been passed on by Our Counsel. The law firm of Jorden Burt Boros
Cicchetti Berenson & Johnson, 1025 Thomas Jefferson Street, Suite 400, East
Lobby, Washington, DC 20007-5201, serve as Our Special Counsel with regard to
the federal securities laws.
> THE REGISTRATION STATEMENT
We have filed a Registration Statement under the Securities Act of 1933 relating
to the offering described in this Prospectus. This Prospectus does not include
all of the information set forth in the Registration Statement, certain portions
of which have been omitted pursuant to SEC rules and regulations. You should
refer to the instrument as filed to obtain any omitted information.
> FINANCIAL STATEMENTS
Our financial statements which are included in the Prospectus should be
considered only as bearing on Our ability to meet Our obligations under the
Policy. They should not be considered as bearing on the investment experience of
the assets held in the Separate Account. Our most current audited financial
statements are those as of the end of the most recent fiscal year. The Company
does not prepare financial statements more often than annually and believes that
any incremental benefit to prospective Policyowners that may result from
preparing and delivering more current financial statements, though unaudited,
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<PAGE>
does not justify the additional cost that would be incurred. In addition, the
Company represents that there has been no material adverse change in Our
financial position or operations since the dates of the audited financial
statements. [Financial Statements to be added by pre-effective amendment.]
> EMPLOYMENT BENEFIT PLANS
Employers and employee organizations should consider, in connection with
counsel, the impact of Title VII of the Civil Rights Act of 1964 on the purchase
of policy in connection with an employment-related insurance or benefit plan.
The U.S. Supreme Court held, in a 1983 decision, that, under Title VII, optional
annuity benefits under a deferred compensation plan could not vary on the basis
of sex.
> DISTRIBUTION OF THE POLICY
Jefferson Pilot Variable Corporation (JPVC), a North Carolina Corporation
incorporated on January 13, 1970, will serve as principal underwriter of the
securities offered under the Policy as defined by the federal securities laws.
The Policy will be sold by individuals who, in addition to being licensed as
life insurance agents for Us, are also registered representatives of
broker-dealers who have entered into written sales agreements with JPVC. Any
such broker-dealers will be registered with the SEC and will be members of the
National Association of Securities Dealers, Inc. We may also offer and sell
policies directly.
We will pay commissions under various schedules and accordingly commissions will
vary with the form of schedule selected. In any event, commissions to registered
representatives are not expected to exceed 95% of first year target premium and
5% of first year excess premium, and 5% of target premium for the second through
fifteenth policy years for both renewals and excess premium. Compensation
arrangements vary among broker-dealers. Override payments, expense allowances
and bonuses based on specific production levels may be paid. Alternative
Commission Schedules will reflect differences in up-front commissions versus
ongoing compensation. Except as previously described in this prospectus, no
separate deductions from premiums are made to pay sales commissions or sales
expenses.
> INDEPENDENT AUDITORS
________________________________________________________________________________
____________________ are the independent auditors for the Separate Account and
______________, are the independent auditors for the Company. The services
provided to the Separate Account include primarily the audits of the Separate
Account's financial statements.
Group or Sponsored Arrangements
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Policies may be purchased under group or sponsored arrangements. A group
arrangement includes a program under which a trustee, employer or similar entity
purchases individual Policies covering a group of individuals on a group basis.
A sponsored arrangement includes a program under which an employer permits group
solicitation of its employees or an association permits group solicitation of
its members for the purchase of Policies on an individual basis.
We may modify the following types of charges for Policies issued in connection
with group or sponsored arrangement: the cost of insurance charge, surrender or
withdrawal charges, administrative charges, charges for withdrawal or transfer
and charges for optional rider benefits. We may also issue Policies in
connection with group or sponsored
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arrangements on a "non-medical" or guaranteed issue basis; actual monthly cost
of insurance charges may be higher than the current cost of insurance charges
under otherwise identical Policies that are medically underwritten. We may also
specify different minimum Specified Amounts at issue for Policies issued in
connection with group or sponsored arrangements.
We may also modify or eliminate certain charges or underwriting requirements for
Policies issued in connection with an exchange of another JP Financial policy or
a policy of any JP Financial affiliate.
The amounts of any reduction, the charges to be reduced, the elimination or
modification of underwriting requirements and the criteria for applying a
reduction or modification will generally reflect the reduced sales and
administrative effort, costs and differing mortality experience appropriate to
the circumstances giving rise to the reduction or modification. Reductions and
modifications will not be made where prohibited by law and will not be unfairly
discriminatory.
Tax Matters
- --------------------------------------------------------------------------------
> GENERAL
Following is a discussion of the federal income tax considerations relating to
the Policy. This discussion is based on Our understanding of federal income tax
laws as they now exist and are currently interpreted by the Internal Revenue
Service. These laws are complex and tax results may vary among individuals.
Anyone contemplating the purchase of or the exercise of elections under the
Policy should seek competent tax advice.
> FEDERAL TAX STATUS OF THE COMPANY
We are taxed as a life insurance company in accordance with the Internal Revenue
Code of 1986 as amended ("Code"). For federal income tax purposes, the
operations of each Separate Account form a part of the Company's total
operations and are not taxed separately, although operations of each Separate
Account are treated separately for accounting and financial statement purposes.
Both investment income and realized capital gains of the Separate Account are
reinvested without tax since the Code does not impose a tax on the Separate
Account for these amounts. However, we reserve the right to make a deduction for
such tax should it be imposed in the future.
> LIFE INSURANCE QUALIFICATION
The Policy contains provisions not found in traditional life insurance policies.
However, we believe that it should qualify under the Code as a life insurance
contract for federal income tax purposes, with the result that all Death
Benefits paid under the Policy will generally be excludable from the gross
income of the Policy's Beneficiary.
Section 7702 of the Code includes a definition of life insurance for tax
purposes. The definition provides limitations on the relationship between the
death benefit and the account value. If necessary, we will increase your death
benefit to maintain compliance with Section 7702.
The Policy is intended to qualify as life insurance under the Code. The Death
Benefit provided by the Policy is intended to qualify for the federal income tax
exclusion. If at any time the premium paid under the Policy exceeds the amount
allowable for such qualification, We will refund the premium to You with
interest within 60 days after the
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<PAGE>
end of the Policy Year in which the premium was received. If, for any reason, We
do not refund the excess premium within such 60-day period, the excess premium
will be held in a separate deposit fund and credited with interest until
refunded to You. The interest rate used on any refund, or credited to the
separate deposit fund created by this provision will be the excess premiums. We
may notify You of other options available to You to keep Your policy in
compliance. You may also choose to have the Policy become a modified endowment
contract.
A modified endowment contract is a life insurance policy which fails to meet a
"seven-pay" test. In general, a policy will fail the seven-pay test if the
cumulative amount of premiums paid under the policy at any time during the first
seven policy years exceeds a calculated premium level. The calculated seven-pay
premium level is based on a hypothetical policy issued on the same insured and
for the same initial death benefit which, under specified conditions (which
include the absence of expense and administrative charges), would be fully paid
for after seven years. Your policy will be treated as a modified endowment
unless the cumulative premiums paid under Your policy, at all times during the
first seven policy years, are less than or equal to the cumulative seven-pay
premiums which would have been paid under the hypothetical policy on or before
such times.
Whenever there is a "material change" under a Policy, it will generally be
treated as a new contract for purposes of determining whether the Policy is a
modified endowment contract, and subject to a new seven-pay premium period and a
new seven-pay limit. The new seven-pay limit would be determined taking into
account, under a prospective adjustment formula, the Policy Account Value of the
policy at the time of such change. A materially changed Policy would be
considered a modified endowment if it failed to satisfy the new seven-pay limit.
A material change could occur as a result of a change in death benefit option,
the selection of additional benefits, the restoration of a terminated policy and
certain other changes.
If the benefits under your Policy are reduced, for example, by requesting a
decrease in Face Amount, or in some cases by making partial withdrawals,
terminating additional benefits under a rider, changing the death benefit
option, or as a result of policy termination, the calculated seven-pay premium
level will be redetermined based on the reduced level of benefits and applied
retroactively for purposes of the seven-pay test. If the premiums previously
paid are greater than the recalculated seven-pay premium level limit, the policy
will become a modified endowment unless You request a refund of the excess
premium, as outlined above. Generally, a life insurance policy which is received
in exchange for a modified endowment or a modified endowment which terminates
and is restored, will also be considered a modified endowment.
If a Policy is deemed to be a modified endowment contract, any distribution from
the Policy will be taxed in a manner comparable to distributions from annuities
(i.e., on an "income first) basis); distributions for this purpose include a
loan, pledge, assignment or partial withdrawal. Any such distributions will be
considered taxable income to the extent Accumulation Value under the Policy
exceeds investment in the Policy.
A 10% penalty tax will apply to the taxable portion of such a distribution. No
penalty will apply to distributions (i) to taxpayers 59 1/2 years of age or
older, (ii) in the case of a disability which can be expected to result in death
or to be of indefinite duration or (iii)
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<PAGE>
received as part of a series of substantially equal periodic payments for the
life (or life expectancy) of the taxpayer or the joint lives (or joint life
expectancies) of the taxpayer and his beneficiary.
To the extent a Policy becomes a modified endowment contract, any distribution,
as defined above, which occurs in the policy year it becomes a modified
endowment contract and in any year thereafter, will be taxable income to You.
Also, any distributions within two years before a Policy becomes a modified
endowment contract will also be income taxable to You to the extent that
accumulation value exceeds investment in the Policy, as described above. The
Secretary of the Treasury has been authorized to prescribe rules which would
similarly treat other distributions made in anticipation of a policy becoming a
modified endowment contract. For purposes of determining the amount of any
distribution includible in income, all modified endowment contracts that
fail the above-described tests which are issued by the same insurer, or its
affiliates, to the same policyowner during any calendar year are treated as one
contract.
If the Insured reaches age 100, the Death Benefit will be set at 101% of the
Cash Value of the Policy. We believe the Policy will continue to qualify as life
insurance under the Code, however, there is some uncertainty regarding this
treatment. It is possible, therefore, that you would be viewed as constructively
receiving the Surrender Value in the year in which the Insured attains age 100
and would realize taxable income at that time, even if the Policy proceeds were
not distributed at that time.
The foregoing summary does not purport to be complete or to cover all
situations, and, as always, there is some degree of uncertainty with respect to
the application of the current tax laws. In addition to the provisions discussed
above, Congress may consider other legislation which, if enacted, could
adversely affect the tax treatment of life insurance policies. Also, the
Treasury Department may amend current regulations or adopt new regulations with
respect to this and other Code provisions. Therefore, You are advised to consult
a tax adviser for more complete tax information, specifically regarding the
applicability of the Code provisions to Your situation.
Under normal circumstances, if the Policy is not a modified endowment contract,
loans received under the Policy will be construed as Your indebtedness. You are
advised to consult a tax adviser or attorney regarding the deduction of interest
paid on loans.
Even if the Policy is not a modified endowment contract, a partial withdrawal
together with a reduction in death benefits during the first 15 Policy Years may
create taxable income for You. The amount of that taxable income is determined
under a complex formula and it may be equal to part or all of, but not greater
than, the income on the contract. A partial withdrawal made after the first 15
Policy Years will be taxed on a recovery of premium-first basis, and will only
be subject to federal income tax to the extent such proceeds exceed the total
amount of premiums You have paid that have not been previously withdrawn.
If You make a partial withdrawal, surrender, loan or exchange of the Policy, We
may be required to withhold federal income tax from the portion of the money You
receive that is includible in Your federal gross income. A Policyowner who is
not a corporation may elect not to have such tax withheld; however, such
election must be made before We
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<PAGE>
make the payment. In addition, if You fail to provide us with a correct taxpayer
identification number (usually a social security number) or if the Treasury
notifies Us that the taxpayer identification number which has been provided is
not correct, the election not to have such taxes withheld will not be effective.
In any case, You are liable for payment of the federal income tax on the taxable
portion of money received, whether or not an election to have federal income tax
withheld is made. If You elect not to have federal income tax withheld, or if
the amount withheld is insufficient, then You may be responsible for payment of
estimated tax. You may also incur penalties under the estimated tax rules if the
withholding and estimated tax payments are insufficient. We suggest that You
consult with a tax adviser as to the tax implications of these matters.
In the event that a Policy is owned by the trustee under a pension or profit
sharing plan, or similar deferred compensation arrangement, tax consequences of
ownership or receipt of proceeds under the Policy could differ from those stated
herein. However, if ownership of such a Policy is transferred from the plan to a
plan participant (upon termination of employment, for example), the Policy will
be subject to all of the federal tax rules described above. A Policy owned by a
trustee under such a plan may be subject to restrictions under ERISA and a tax
adviser should be consulted regarding any applicable ERISA requirements.
The Policy may also be used in various arrangements, including nonqualified
deferred compensation or salary continuation plans, split dollar insurance
plans, executive bonus plans and others, where the tax consequences may vary
depending on the particular facts and circumstances of each individual
arrangement. A tax adviser should be consulted regarding the tax attributes of
any particular arrangement where the value of it depends in part on its tax
consequences.
Federal estate and local estate, inheritance and other tax consequences of
ownership or receipt of policy proceeds depend upon the circumstances of each
Policyowner and Beneficiary.
Current Treasury regulations set standards for diversification of the
investments underlying variable life insurance policies in order for such
policies to be treated as life insurance. We believe We presently are and intend
to remain in compliance with the diversification requirements as set forth in
the regulations. If the diversification requirements are not satisfied, the
Policy would not be treated as a life insurance contract. As a consequence to
You, income earned on a Policy would be taxable to You in the calendar quarter
in which the diversification requirements were not satisfied, and for all
subsequent calendar quarters.
The Secretary of the Treasury may issue a regulation or a ruling which will
prescribe the circumstances in which a Policyowner's control of the investments
of a segregated account may cause the Policyowner, rather than the insurance
company, to be treated as the owner of the assets of the account. The regulation
or ruling could impose requirements that are not reflected in the Policy,
relating, for example, to such elements of Policyowner control as premium
allocation, investment selection, transfer privileges and investment in a
division focusing on a particular investment sector. Failure to comply with any
such regulation or ruling presumably would cause earnings on a Policyowner's
interest in Separate Account A to be includible in the Policyowner's gross
income in the
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<PAGE>
year earned. However, We have reserved certain rights to alter the Policy and
investment alternatives so as to comply with such regulation or ruling. We
believe that any such regulation or ruling would apply prospectively. Since the
regulation or ruling has not been issued, there can be no assurance as to the
content of such regulation or ruling or even whether application of the
regulation or ruling will be prospective. For these reasons, Policyowners are
urged to consult with their own tax advisers.
The foregoing summary does not purport to be complete or to cover all
situations, including the possible tax consequences of changes in ownership.
Counsel and other competent advisers should be consulted for more complete
information.
> CHARGES FOR JP FINANCIAL INCOME TAXES
We are presently taxed as a life insurance company under the provisions of the
Code. The Code specifically provides for adjustments in reserves for variable
policies, and We will include flexible premium life insurance operations in our
tax return in accordance with these rules.
Currently no charge is made against the Separate Account for Our federal income
taxes, or provisions for such taxes, that may be attributable to the Separate
Account. We may charge each Division for its portion of any income tax charged
to Us on the Division or its assets. Under present laws, We may incur state and
local taxes (in addition to premium taxes) in several states. At present these
taxes are not significant. However, if they increase, We may decide to make
charges for such taxes or provisions for such taxes against the Separate
Account. We would retain any investment earnings on any tax charges accumulated
in a Division. Any such charges against the Separate Account or its Divisions
could have an adverse effect on the investment experience of such Division.
MISCELLANEOUS POLICY PROVISIONS
- --------------------------------------------------------------------------------
> THE POLICY
The Policy which You receive, the application You make when You purchase the
Policy, any applications for any changes approved by Us and any riders
constitute the whole contract. Copies of all applications are attached to and
made a part of the Policy.
Application forms are completed by the applicants and forwarded to Us for
acceptance. Upon acceptance, the Policy is prepared, executed by duly authorized
officers of the Company and forwarded to You.
We reserve the right to make a change in the Policy; however, we will not change
any terms of the Policy beneficial to You.
> PAYMENT OF BENEFITS
All benefits are payable at Our Home Office. We may require submission of the
Policy before We grant Policy Loans, make changes or pay benefits.
> SUICIDE AND INCONTESTABILITY
Suicide Exclusion--In most states, if the Insured dies by suicide, while sane or
insane, within 2 years from the Issue Date of this Policy, this Policy will end
and We will refund premiums paid, without interest, less any Policy Debt and
less any withdrawal. If the Insured commits suicide within 2 years of the
effective date of any Increase in Specified Amount, Our only liability with
regard will be for the sum of the Monthly Deductions for such Increase in
Specified Amounts.
Incontestability--We will not contest or revoke the insurance coverage provided
under the Policy after the Policy has been in force during the lifetime of the
Insured for two years from the date of issue or reinstatement.
> PROTECTION OF PROCEEDS
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To the extent provided by law, the proceeds of the Policy are not subject to
claims by a Beneficiary's creditors or to any legal process against any
Beneficiary.
> NONPARTICIPATION
The Policy is not entitled to share in the divisible surplus of the Company. No
dividends are payable.
> CHANGES IN OWNER AND BENEFICIARY; ASSIGNMENT
Unless otherwise stated in the Policy, You may change the Policyowner and the
Beneficiary, or both, at any time while the Policy is in force. A request for
such change must be made in writing and sent to Us at Our Home Office. After We
have agreed, in writing, to the change, it will take effect as of the date on
which Your Written Request was signed.
The Policy may also be assigned. No assignment of Policy will be binding on Us
unless made in writing and sent to Us at Our Home Office. We will use reasonable
procedures to confirm that the assignment is authentic. Otherwise, we are not
responsible for the validity of any assignment. Your rights and the
Beneficiary's interest will be subject to the rights of any assignee of record.
> MISSTATEMENTS
If the age or sex of the Insured has been misstated in an application, including
a reinstatement application, We will adjust the benefits payable to reflect the
correct age or sex.
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appendix a
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ILLUSTRATIONS OF ACCUMULATION VALUES, CASH VALUES AND DEATH BENEFITS
Following are a series of tables that illustrate how the Accumulation Values,
Cash Values and death benefits of a policy change with the investment
performance of the Portfolios. The tables show how the Accumulation Values,
Cash Values and Death Benefits of a Policy issued to an Insured of a given age
and given premium would vary over time if the return on the assets held in each
Portfolio were a constant gross annual rate of 0%, 6%, and 12%. The tables on
pages A-3 through A-13 illustrate a Policy issued to a male, age 45, under a
standard rate non-smoker underwriting risk classification. The Accumulation
Values, Cash Values and death benefits would be different from those shown if
the returns averaged 0%, 6%, and 12% over a period of years, but fluctuated
above and below those averages for individual policy years.
The amount of the Accumulation Value exceeds the Cash Value during the first
nine policy years due to the surrender charge. For policy years ten and
after, the Accumulation Value and Cash Value are equal, since the surrender
charge has been reduced to zero.
The second column shows the Accumulation Value of the premiums paid at the
stated interest rate. The third and sixth columns illustrate the Accumulation
Values and the fourth and seventh columns illustrate the Cash Values of the
Policy over the designated period. The Accumulation Values shown in the third
column and the Cash Values shown in the fourth column assume the monthly charge
for cost of insurance is based upon the current cost of insurance rates as
discounted, and that the mortality and expense risk charge and sales load are
charged at current rates. The current cost of insurance rates are based on the
sex, issue age, policy year, and rating class of the Insured, and the Specified
Amount of the Policy. The Accumulation Values shown in the sixth column and the
Cash Values shown in the seventh column assume the monthly charge for cost of
insurance is based upon the maximum cost of insurance rates allowable, which are
based on the Commissioner's 1980 Standard Ordinary Mortality Table, and upon the
maximum mortality and expense risk charges and premium load provided in the
Policy, as described below. The current cost of insurance rates are different
for Specified Amounts below $100,000 and above $100,000; therefore, the values
shown would change for Specified Amounts below $100,000 and above $100,000. The
fifth and eighth columns illustrate the death benefit of a Policy over the
designated period. The illustrations of death benefits reflect the same
assumptions as the Accumulation Values and Cash Values. The death benefit values
also vary between tables, depending upon whether Option I or Option II death
benefits are illustrated.
The amounts shown for the death benefit, Accumulation Values, and Cash Values
reflect the fact that the net investment return of the dividends of Separate
Account A is lower than the gross return on the assets in the Portfolios, as a
result of expenses paid by the Portfolios and charges levied against the
divisions of Separate Account A.
The policy values shown take into account a daily investment advisory fee
equivalent to the maximum annual rate of .71% of the aggregate average daily net
assets of the Portfolios, plus a charge of .12% of the aggregate average daily
net assets to cover expenses incurred by the Portfolios for the twelve months
ended December 31, 1998. The .71% investment advisory fee is an average of the
individual investment advisory fees of the twenty Portfolios. The .12% expense
figure is based on a weighted average utilizing average net assets for the
Jefferson Pilot Variable Fund Portfolios, the Templeton International Fund, the
Fidelity VIP and VIP II Portfolios, the Oppenheimer Portfolios and the MFS
Portfolios. Expenses for the Templeton International Fund: Class 2, the Fidelity
Equity Income, Growth, and Contrafund Portfolios, the MFS Research and Utilities
Series, and the Oppenheimer Bond and Strategic Bond Portfolios were provided by
the investment managers for these portfolios and JP Financial has not
independently verified such information. The policy values also take into
account a daily charge to each division of Separate Account A for assuming
mortality and expense risks which is equivalent to a charge at an annual rate of
0.60% (0.85% guaranteed) of the average daily net assets of the divisions of
Separate Account A in Policy Years 1 through 25 and 0.35% (0.60% guaranteed)
thereafter. After deduction of these amounts, the illustrated gross investment
rates of 0%, 6%, and 12% correspond to approximate net annual rates of -1.43%,
4.57% and 10.57%, respectively, on a current basis, and -1.68%, 4.32% and 10.32%
on a guaranteed basis.
The assumed annual premium used in calculating Accumulation Value, Cash Value,
and Death Benefits is net of the 2.5% state premium tax charge, the 1.25%
federal DAC tax charge and the Premium Load, which is 3% in Policy Years 1
through 10 only on a current basis and guaranteed never to exceed 3% in any
year. It also reflects deduction of the Monthly Deduction and addition of the
Monthly Accumulation Value Adjustment. As part of the Monthly Deduction, the
Monthly Acquisition Charge of 2% of the Load Basis Amount is per month in Policy
Years 1 and 1% of the Load Basis Amount per month in Policy Year 2 has been
deducted. The Load Basis Amount varies by Sex, Issue Age and rating class of the
Incurred.
The hypothetical values shown in the tables do not reflect any charges for
federal income taxes or other taxes against Separate Account A since JP
Financial
A-1
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is not currently making such charges. However, if, in the future, such charges
are made, the gross annual investment rate of return would have to exceed the
stated investment rates by a sufficient amount to cover the tax charges in
order to produce the Accumulation Values, Cash Values and death benefits
illustrated.
The tables illustrate the policy values that would result based on hypothetical
investment rates of return if premiums are paid in full at the beginning of
each year, if all net premiums are allocated to Separate Account A, and if no
policy loans have been made. The values would vary from those shown if the
assumed annual premium payments were paid in installments during a year. The
values would also vary if the policyowner varied the amount or frequency of
premium payments. The tables also assume that the policyowner has not requested
an increase or decrease in Specified Amount, that no withdrawals have been made
and no surrender charges imposed, and that no transfers have been made and no
transfer charges imposed.
Upon request, JP Financial will provide, without charge, a comparable
illustration based upon the proposed insured's age, sex and rating class, the
face amount requested, the proposed frequency and amount of premium payments
and any available riders requested. Existing policyowners may request
illustrations based on existing Cash Value at the time of request. JP Financial
has reserved the right to charge an administrative fee of up to $25 for such
illustrations.
A-2
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I Net 1-25 Net 26+
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS ANNUAL
MALE NON-SMOKER STANDARD ISSUE AGE 45 RATE OF RETURN (CURRENT): 0.00% (-1.43%) 0.00% (-1.18%)
$100,000 INITIAL SPECIFIED AMOUNT (GUARANTEED) 0.00% (-1.68%) 0.00% (-1.43%)
ASSUMED ANNUAL PREMIUM(1): $2,000
PREMIUMS
END ACCUMULATED ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE (2) VALUE (2) BENEFIT (2)(3) VALUE (2) VALUE (2) BENEFIT (2)(3)
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,073 - 100,000 916 - 100,000
2 4,305 2,292 801 100,000 1,962 471 100,000
3 6,620 3,655 2,163 100,000 3,136 1,644 100,000
4 9,051 4,989 3,498 100,000 4,256 2,764 100,000
5 11,604 6,298 4,806 100,000 5,319 3,827 100,000
6 14,284 7,587 6,394 100,000 6,324 5,131 100,000
7 17,098 8,854 7,959 100,000 7,265 6,371 100,000
8 20,053 10,097 9,500 100,000 8,137 7,541 100,000
9 23,156 11,319 11,020 100,000 8,933 8,635 100,000
10 26,414 12,511 12,511 100,000 9,647 9,647 100,000
11 29,834 13,725 13,725 100,000 10,273 10,273 100,000
12 33,426 14,898 14,898 100,000 10,808 10,808 100,000
13 37,197 16,020 16,020 100,000 11,249 11,249 100,000
14 41,157 17,093 17,093 100,000 11,591 11,591 100,000
15 45,315 18,113 18,113 100,000 11,828 11,828 100,000
16 49,681 19,013 19,013 100,000 11,949 11,949 100,000
17 54,265 19,865 19,865 100,000 11,941 11,941 100,000
18 59,078 20,649 20,649 100,000 11,787 11,787 100,000
19 64,132 21,371 21,371 100,000 11,466 11,466 100,000
20 69,439 22,035 22,035 100,000 10,958 10,958 100,000
21 75,010 22,617 22,617 100,000 10,240 10,240 100,000
22 80,861 23,121 23,121 100,000 9,292 9,292 100,000
23 87,004 23,527 23,527 100,000 8,093 8,093 100,000
24 93,454 23,849 23,849 100,000 6,615 6,615 100,000
25 100,227 24,052 24,052 100,000 4,823 4,823 100,000
26 107,338 24,215 24,215 100,000 2,674 2,674 100,000
27 114,805 24,231 24,231 100,000 79 79 100,000
28 122,645 24,122 24,122 100,000 - - -
29 130,878 23,838 23,838 100,000 - - -
30 139,522 23,378 23,378 100,000 - - -
31 148,598 22,719 22,719 100,000 - - -
32 158,128 21,805 21,805 100,000 - - -
33 168,134 20,628 20,628 100,000 - - -
34 178,641 19,114 19,114 100,000 - - -
35 189,673 17,287 17,287 100,000 - - -
36 201,256 15,018 15,018 100,000 - - -
37 213,419 12,284 12,284 100,000 - - -
38 226,190 9,015 9,015 100,000 - - -
39 239,600 5,064 5,064 100,000 - - -
40 253,680 356 356 100,000 - - -
41 268,464 - - - - - -
42 283,987 - - - - - -
43 300,286 - - - - - -
44 317,400 - - - - - -
45 335,370 - - - - - -
46 354,239 - - - - - -
47 374,051 - - - - - -
48 394,853 - - - - - -
49 416,696 - - - - - -
50 439,631 - - - - - -
51 463,712 - - - - - -
52 488,998 - - - - - -
53 515,548 - - - - - -
54 543,425 - - - - - -
55 572,696 - - - - - -
</TABLE>
(1) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of additional premium payment.
(3) Increase due to adjustment by the corridor percentage.
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION II Net 1-25 Net 26+
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS ANNUAL
MALE NON-SMOKER STANDARD ISSUE AGE 45 RATE OF RETURN (CURRENT): 0.00% (-1.43%) 0.00% (-1.18%)
$100,000 INITIAL SPECIFIED AMOUNT (GUARANTEED) 0.00% (-1.68%) 0.00% (-1.43%)
ASSUMED ANNUAL PREMIUM(1): $2,000
PREMIUMS
END ACCUMULATED ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE (2) VALUE (2) BENEFIT (2)(3) VALUE (2) VALUE (2) BENEFIT (2)(3)
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,069 - 101,095 910 - 100,949
2 4,305 2,280 788 102,309 1,945 453 101,988
3 6,620 3,629 2,138 103,662 3,100 1,608 103,148
4 9,051 4,945 3,454 104,981 4,194 2,702 104,248
5 11,604 6,231 4,739 106,269 5,223 3,731 105,282
6 14,284 7,492 6,299 107,532 6,185 4,992 106,250
7 17,098 8,725 7,830 108,767 7,072 6,177 107,143
8 20,053 9,929 9,333 109,974 7,879 7,282 107,956
9 23,156 11,107 10,809 111,154 8,597 8,299 108,682
10 26,414 12,249 12,249 112,299 9,219 9,219 109,311
11 29,834 13,403 13,403 113,456 9,739 9,739 109,840
12 33,426 14,507 14,507 114,565 10,152 10,152 110,262
13 37,197 15,547 15,547 115,610 10,454 10,454 110,573
14 41,157 16,525 16,525 116,594 10,642 10,642 110,770
15 45,315 17,436 17,436 117,510 10,708 10,708 110,846
16 49,681 18,196 18,196 118,282 10,641 10,641 110,791
17 54,265 18,890 18,890 118,982 10,429 10,429 110,590
18 59,078 19,497 19,497 119,596 10,054 10,054 110,229
19 64,132 20,020 20,020 120,126 9,496 9,496 109,687
20 69,439 20,465 20,465 120,577 8,738 8,738 108,945
21 75,010 20,801 20,801 120,923 7,761 7,761 107,986
22 80,861 21,032 21,032 121,163 6,553 6,553 106,797
23 87,004 21,132 21,132 121,273 5,101 5,101 105,366
24 93,454 21,121 21,121 121,271 3,393 3,393 103,678
25 100,227 20,951 20,951 121,115 1,407 1,407 101,715
26 107,338 20,702 20,702 120,872 - - -
27 114,805 20,258 20,258 120,444 - - -
28 122,645 19,653 19,653 119,852 - - -
29 130,878 18,825 18,825 119,043 - - -
30 139,522 17,781 17,781 118,017 - - -
31 148,598 16,499 16,499 116,754 - - -
32 158,128 14,918 14,918 115,199 - - -
33 168,134 13,045 13,045 113,350 - - -
34 178,641 10,808 10,808 111,143 - - -
35 189,673 8,267 8,267 108,627 - - -
36 201,256 5,299 5,299 105,694 - - -
37 213,419 1,922 1,922 102,352 - - -
38 226,190 - - - - - -
39 239,600 - - - - - -
40 253,680 - - - - - -
41 268,464 - - - - - -
42 283,987 - - - - - -
43 300,286 - - - - - -
44 317,400 - - - - - -
45 335,370 - - - - - -
46 354,239 - - - - - -
47 374,051 - - - - - -
48 394,853 - - - - - -
49 416,696 - - - - - -
50 439,631 - - - - - -
51 463,712 - - - - - -
52 488,998 - - - - - -
53 515,548 - - - - - -
54 543,425 - - - - - -
55 572,696 - - - - - -
</TABLE>
(1) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of additional premium payment.
(3) Increase due to adjustment by the corridor percentage.
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I Net 1-25 Net 26+
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS ANNUAL
MALE NON-SMOKER STANDARD ISSUE AGE 45 RATE OF RETURN (CURRENT): 6.00% (4.57%) 6.00% (4.82%)
$100,000 INITIAL SPECIFIED AMOUNT (GUARANTEED) 6.00% (4.32%) 6.00% (4.57%)
ASSUMED ANNUAL PREMIUM(1): $2,000
PREMIUMS
END ACCUMULATED ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE (2) VALUE (2) BENEFIT (2)(3) VALUE (2) VALUE (2) BENEFIT (2)(3)
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,160 - 100,000 998 - 100,000
2 4,305 2,541 1,049 100,000 2,190 699 100,000
3 6,620 4,150 2,659 100,000 3,585 2,093 100,000
4 9,051 5,826 4,335 100,000 5,006 3,514 100,000
5 11,604 7,574 6,082 100,000 6,452 4,960 100,000
6 14,284 9,402 8,208 100,000 7,923 6,729 100,000
7 17,098 11,311 10,417 100,000 9,412 8,517 100,000
8 20,053 13,306 12,710 100,000 10,917 10,320 100,000
9 23,156 15,392 15,094 100,000 12,432 12,134 100,000
10 26,414 17,566 17,566 100,000 13,950 13,950 100,000
11 29,834 19,886 19,886 100,000 15,471 15,471 100,000
12 33,426 22,296 22,296 100,000 16,988 16,988 100,000
13 37,197 24,791 24,791 100,000 18,503 18,503 100,000
14 41,157 27,379 27,379 100,000 20,011 20,011 100,000
15 45,315 30,066 30,066 100,000 21,511 21,511 100,000
16 49,681 32,808 32,808 100,000 22,993 22,993 100,000
17 54,265 35,673 35,673 100,000 24,450 24,450 100,000
18 59,078 38,655 38,655 100,000 25,869 25,869 100,000
19 64,132 41,769 41,769 100,000 27,236 27,236 100,000
20 69,439 45,030 45,030 100,000 28,541 28,541 100,000
21 75,010 48,434 48,434 100,000 29,770 29,770 100,000
22 80,861 51,998 51,998 100,000 30,915 30,915 100,000
23 87,004 55,727 55,727 100,000 31,961 31,961 100,000
24 93,454 59,650 59,650 100,000 32,895 32,895 100,000
25 100,227 63,769 63,769 100,000 33,696 33,696 100,000
26 107,338 68,225 68,225 100,000 34,408 34,408 100,000
27 114,805 72,934 72,934 100,000 34,919 34,919 100,000
28 122,645 77,941 77,941 100,000 35,175 35,175 100,000
29 130,878 83,274 83,274 100,000 35,106 35,106 100,000
30 139,522 88,983 88,983 100,000 34,634 34,634 100,000
31 148,598 95,123 95,123 100,000 33,673 33,673 100,000
32 158,128 101,627 101,627 106,289 32,122 32,122 100,000
33 168,134 108,436 108,436 113,411 29,860 29,860 100,000
34 178,641 115,557 115,557 120,860 26,737 26,737 100,000
35 189,673 123,008 123,008 128,654 22,543 22,543 100,000
36 201,256 130,792 130,792 136,798 16,988 16,988 100,000
37 213,419 138,926 138,926 145,307 9,654 9,654 100,000
38 226,190 147,419 147,419 154,193 - - -
39 239,600 156,278 156,278 163,463 - - -
40 253,680 165,517 165,517 173,129 - - -
41 268,464 175,143 175,143 183,203 - - -
42 283,987 185,165 185,165 193,690 - - -
43 300,286 195,580 195,580 204,590 - - -
44 317,400 206,400 206,400 215,916 - - -
45 335,370 217,631 217,631 227,672 - - -
46 354,239 229,265 229,265 239,852 - - -
47 374,051 241,619 241,619 250,352 - - -
48 394,853 254,793 254,793 261,442 - - -
49 416,696 268,902 268,902 273,213 - - -
50 439,631 284,083 284,083 285,774 - - -
51 463,712 299,991 299,991 301,779 - - -
52 488,998 316,664 316,664 318,553 - - -
53 515,548 334,134 334,134 336,129 - - -
54 543,425 352,438 352,438 354,545 - - -
55 572,696 371,613 371,613 373,836 - - -
</TABLE>
(1) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of additional premium payment.
(3) Increase due to adjustment by the corridor percentage.
<PAGE>
GRID #2
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION II Net 1-25 Net 26+
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS ANNUAL
MALE NON-SMOKER STANDARD ISSUE AGE 45 RATE OF RETURN (CURRENT): 6.00% (4.57%) 6.00% (4.82%)
$100,000 INITIAL SPECIFIED AMOUNT (GUARANTEED) 6.00% (4.32%) 6.00% (4.57%)
ASSUMED ANNUAL PREMIUM(1): $2,000
PREMIUMS
END ACCUMULATED ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE (2) VALUE (2) BENEFIT (2)(3) VALUE (2) VALUE (2) BENEFIT (2)(3)
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,156 - 101,176 991 - 101,026
2 4,305 2,527 1,035 102,544 2,171 679 102,204
3 6,620 4,121 2,630 104,134 3,543 2,052 103,575
4 9,051 5,774 4,283 105,782 4,932 3,440 104,962
5 11,604 7,490 5,999 107,493 6,332 4,841 106,362
6 14,284 9,279 8,085 109,275 7,742 6,549 107,771
7 17,098 11,139 10,244 111,129 9,152 8,257 109,181
8 20,053 13,072 12,476 113,057 10,555 9,958 110,584
9 23,156 15,085 14,786 115,062 11,942 11,643 111,972
10 26,414 17,169 17,169 117,140 13,301 13,301 113,334
11 29,834 19,380 19,380 119,345 14,624 14,624 114,660
12 33,426 21,657 21,657 121,617 15,904 15,904 115,943
13 37,197 23,989 23,989 123,944 17,131 17,131 117,176
14 41,157 26,379 26,379 126,329 18,299 18,299 118,348
15 45,315 28,823 28,823 128,769 19,395 19,395 119,450
16 49,681 31,245 31,245 131,193 20,402 20,402 120,465
17 54,265 33,733 33,733 133,675 21,301 21,301 121,373
18 59,078 36,264 36,264 136,203 22,068 22,068 122,151
19 64,132 38,845 38,845 138,779 22,673 22,673 122,770
20 69,439 41,480 41,480 141,410 23,087 23,087 123,200
21 75,010 44,142 44,142 144,069 23,280 23,280 123,412
22 80,861 46,832 46,832 146,757 23,227 23,227 123,380
23 87,004 49,525 49,525 149,449 22,898 22,898 123,075
24 93,454 52,238 52,238 152,161 22,266 22,266 122,468
25 100,227 54,923 54,923 154,849 21,290 21,290 121,521
26 107,338 57,697 57,697 157,615 19,969 19,969 120,230
27 114,805 60,408 60,408 160,332 18,183 18,183 118,484
28 122,645 63,086 63,086 163,012 15,848 15,848 116,196
29 130,878 65,663 65,663 165,598 12,868 12,868 113,270
30 139,522 68,138 68,138 168,082 9,148 9,148 109,613
31 148,598 70,481 70,481 170,435 4,601 4,601 105,136
32 158,128 72,620 72,620 172,592 - - -
33 168,134 74,547 74,547 174,536 - - -
34 178,641 76,175 76,175 176,190 - - -
35 189,673 77,545 77,545 177,582 - - -
36 201,256 78,514 78,514 178,586 - - -
37 213,419 79,077 79,077 179,183 - - -
38 226,190 79,185 79,185 179,330 - - -
39 239,600 78,713 78,713 178,907 - - -
40 253,680 77,638 77,638 177,883 - - -
41 268,464 75,873 75,873 176,177 - - -
42 283,987 73,324 73,324 173,695 - - -
43 300,286 69,789 69,789 170,243 - - -
44 317,400 65,246 65,246 165,787 - - -
45 335,370 59,595 59,595 160,230 - - -
46 354,239 52,609 52,609 153,358 - - -
47 374,051 44,301 44,301 145,163 - - -
48 394,853 34,565 34,565 135,548 - - -
49 416,696 23,286 23,286 124,401 - - -
50 439,631 10,351 10,351 111,606 - - -
51 463,712 - - - - - -
52 488,998 - - - - - -
53 515,548 - - - - - -
54 543,425 - - - - - -
55 572,696 - - - - - -
</TABLE>
(1) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of additional premium payment.
(3) Increase due to adjustment by the corridor percentage.
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I Net 1-25 Net 1-25
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS ANNUAL
MALE NON-SMOKER STANDARD ISSUE AGE 45 RATE OF RETURN (CURRENT): 12.00% (10.57%) 12.00% (10.82%)
$100,000 INITIAL SPECIFIED AMOUNT (GUARANTEED) 12.00% (10.32%) 12.00% (10.57%)
ASSUMED ANNUAL PREMIUM(1): $2,000
PREMIUMS
END ACCUMULATED ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE (2) VALUE (2) BENEFIT (2)(3) VALUE (2) VALUE (2) BENEFIT (2)(3)
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,248 - 100,000 1,081 - 100,000
2 4,305 2,800 1,309 100,000 2,429 938 100,000
3 6,620 4,689 3,198 100,000 4,074 2,582 100,000
4 9,051 6,771 5,280 100,000 5,855 4,364 100,000
5 11,604 9,070 7,578 100,000 7,786 6,294 100,000
6 14,284 11,615 10,422 100,000 9,881 8,688 100,000
7 17,098 14,431 13,536 100,000 12,153 11,258 100,000
8 20,053 17,546 16,949 100,000 14,618 14,021 100,000
9 23,156 20,996 20,698 100,000 17,292 16,994 100,000
10 26,414 24,811 24,811 100,000 20,196 20,196 100,000
11 29,834 29,090 29,090 100,000 23,355 23,355 100,000
12 33,426 33,830 33,830 100,000 26,799 26,799 100,000
13 37,197 39,085 39,085 100,000 30,566 30,566 100,000
14 41,157 44,920 44,920 100,000 34,712 34,712 100,000
15 45,315 51,405 51,405 100,000 39,287 39,287 100,000
16 49,681 58,583 58,583 100,000 44,349 44,349 100,000
17 54,265 66,592 66,592 100,000 49,965 49,965 100,000
18 59,078 75,532 75,532 100,000 56,212 56,212 100,000
19 64,132 85,515 85,515 105,155 63,185 63,185 100,000
20 69,439 96,584 96,584 116,849 71,000 71,000 100,000
21 75,010 108,843 108,843 129,520 79,800 79,800 100,000
22 80,861 122,410 122,410 144,449 89,702 89,702 105,900
23 87,004 137,419 137,419 160,797 100,607 100,607 117,777
24 93,454 154,030 154,030 178,706 112,600 112,600 130,700
25 100,227 172,403 172,403 198,313 125,789 125,789 144,762
26 107,338 192,940 192,940 220,003 140,451 140,451 160,227
27 114,805 215,717 215,717 241,693 156,653 156,653 175,597
28 122,645 241,007 241,007 265,245 174,580 174,580 192,222
29 130,878 269,099 269,099 290,819 194,448 194,448 210,229
30 139,522 300,338 300,338 318,614 216,513 216,513 229,777
31 148,598 335,115 335,115 348,850 241,089 241,089 251,056
32 158,128 373,640 373,640 388,958 268,157 268,157 279,250
33 168,134 416,311 416,311 433,383 297,957 297,957 310,290
34 178,641 463,550 463,550 482,566 330,747 330,747 344,446
35 189,673 515,850 515,850 537,018 366,806 366,806 382,010
36 201,256 573,709 573,709 597,261 406,430 406,430 423,290
37 213,419 637,709 637,709 663,899 449,930 449,930 468,612
38 226,190 708,477 708,477 737,586 497,630 497,630 518,315
39 239,600 786,673 786,673 819,013 549,866 549,866 572,749
40 253,680 873,056 873,056 908,966 606,994 606,994 632,288
41 268,464 968,432 968,432 1,008,289 669,395 669,395 697,329
42 283,987 1,073,677 1,073,677 1,117,894 737,475 737,475 768,297
43 300,286 1,189,685 1,189,685 1,238,719 811,667 811,667 845,644
44 317,400 1,317,523 1,317,523 1,371,868 892,424 892,424 929,842
45 335,370 1,458,306 1,458,306 1,518,509 980,217 980,217 1,021,386
46 354,239 1,613,158 1,613,158 1,679,820 1,075,522 1,075,522 1,120,775
47 374,051 1,785,695 1,785,695 1,841,652 1,182,025 1,182,025 1,219,846
48 394,853 1,978,432 1,978,432 2,020,642 1,301,661 1,301,661 1,330,157
49 416,696 2,194,344 2,194,344 2,219,184 1,436,827 1,436,827 1,453,722
50 439,631 2,436,962 2,436,962 2,440,106 1,590,563 1,590,563 1,593,094
51 463,712 2,705,957 2,705,957 2,709,466 1,759,946 1,759,946 1,762,796
52 488,998 3,004,195 3,004,195 3,008,111 1,946,020 1,946,020 1,949,266
53 515,548 3,334,821 3,334,821 3,339,189 2,149,018 2,149,018 2,152,815
54 543,425 3,701,310 3,701,310 3,706,184 2,367,798 2,367,798 2,372,414
55 572,696 4,107,504 4,107,504 4,112,941 2,608,662 2,608,662 2,613,747
</TABLE>
(1) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of additional premium payment.
(3) Increase due to adjustment by the corridor percentage.
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION II Net 1-25 Net 26+
GUIDELINE PREMIUM TEST ASSUMED HYPOTHETICAL GROSS ANNUAL
MALE NON-SMOKER STANDARD ISSUE AGE 45 RATE OF RETURN (CURRENT): 12.00% (10.57%) 12.00% (10.82%)
$100,000 INITIAL SPECIFIED AMOUNT (GUARANTEED) 12.00% (10.32%) 12.00% (10.57%)
ASSUMED ANNUAL PREMIUM(1): $2,000
PREMIUMS
END ACCUMULATED ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE (2) VALUE (2) BENEFIT (2)(3) VALUE (2) VALUE (2) BENEFIT (2)(3)
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,243 - 101,257 1,074 - 101,103
2 4,305 2,785 1,293 102,788 2,408 916 102,429
3 6,620 4,655 3,164 104,645 4,026 2,535 104,037
4 9,051 6,709 5,218 106,683 5,767 4,275 105,768
5 11,604 8,967 7,476 108,923 7,638 6,146 107,627
6 14,284 11,457 10,264 111,392 9,649 8,456 109,626
7 17,098 14,200 13,305 114,114 11,805 10,910 111,770
8 20,053 17,221 16,625 117,110 14,114 13,517 114,065
9 23,156 20,552 20,253 120,414 16,582 16,283 116,519
10 26,414 24,214 24,214 124,047 19,214 19,214 119,137
11 29,834 28,296 28,296 128,098 22,021 22,021 121,929
12 33,426 32,783 32,783 132,550 25,012 25,012 124,904
13 37,197 37,713 37,713 137,441 28,203 28,203 128,078
14 41,157 43,134 43,134 142,819 31,614 31,614 131,469
15 45,315 49,094 49,094 148,732 35,266 35,266 135,100
16 49,681 55,563 55,563 155,156 39,170 39,170 138,982
17 54,265 62,685 62,685 162,222 43,337 43,337 143,126
18 59,078 70,508 70,508 169,983 47,775 47,775 147,541
19 64,132 79,111 79,111 178,519 52,490 52,490 152,232
20 69,439 88,585 88,585 187,916 57,488 57,488 157,205
21 75,010 98,992 98,992 198,242 62,778 62,778 162,470
22 80,861 110,437 110,437 209,596 68,374 68,374 168,039
23 87,004 123,004 123,004 222,066 74,291 74,291 173,928
24 93,454 136,838 136,838 235,789 80,545 80,545 180,153
25 100,227 152,024 152,024 250,858 87,147 87,147 186,724
26 107,338 168,920 168,920 267,603 94,216 94,216 193,752
27 114,805 187,481 187,481 286,018 101,634 101,634 201,140
28 122,645 207,924 207,924 306,297 109,378 109,378 208,855
29 130,878 230,392 230,392 328,588 117,408 117,408 216,860
30 139,522 255,114 255,114 353,113 125,691 125,691 225,121
31 148,598 282,313 282,313 380,096 134,199 134,199 233,610
32 158,128 312,200 312,200 409,749 142,915 142,915 242,307
33 168,134 345,075 345,075 442,363 151,826 151,826 251,201
34 178,641 381,193 381,193 478,198 160,928 160,928 260,287
35 189,673 420,973 420,973 517,657 170,192 170,192 269,536
36 201,256 464,688 464,688 561,029 179,553 179,553 278,889
37 213,419 512,792 512,792 608,750 188,915 188,915 288,251
38 226,190 565,747 565,747 661,281 198,132 198,132 297,481
39 239,600 623,988 623,988 719,060 207,025 207,025 306,401
40 253,680 688,112 688,112 782,671 215,419 215,419 314,839
41 268,464 758,720 758,720 852,712 223,150 223,150 322,628
42 283,987 836,473 836,473 929,842 230,066 230,066 329,615
43 300,286 922,009 922,009 1,014,697 236,007 236,007 335,641
44 317,400 1,016,226 1,016,226 1,108,157 240,804 240,804 340,538
45 335,370 1,120,046 1,120,046 1,211,138 244,258 244,258 344,109
46 354,239 1,234,373 1,234,373 1,324,548 246,123 246,123 346,113
47 374,051 1,360,469 1,360,469 1,449,615 246,085 246,085 346,241
48 394,853 1,499,611 1,499,611 1,587,618 243,708 243,708 344,069
49 416,696 1,653,222 1,653,222 1,739,965 238,359 238,359 338,978
50 439,631 1,822,884 1,822,884 1,908,225 228,851 228,851 329,834
51 463,712 2,010,165 2,010,165 2,093,967 212,951 212,951 314,492
52 488,998 2,217,176 2,217,176 2,299,255 186,076 186,076 288,575
53 515,548 2,446,092 2,446,092 2,526,257 137,678 137,678 242,057
54 543,425 2,699,328 2,699,328 2,777,368 49,511 49,511 157,366
55 572,696 2,979,573 2,979,573 3,055,254 - - -
</TABLE>
(1) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of additional premium payment.
(3) Increase due to adjustment by the corridor percentage.
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I Net 1-25 Net 26+
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS ANNUAL
MALE NON-SMOKER STANDARD ISSUE AGE 45 RATE OF RETURN (CURRENT): 0.00% (-1.43%) 0.00% (-1.18%)
$100,000 INITIAL SPECIFIED AMOUNT (GUARANTEED) 0.00% (-1.68%) 0.00% (-1.43%)
ASSUMED ANNUAL PREMIUM(1): $2,000
PREMIUMS
END ACCUMULATED ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE (2) VALUE (2) BENEFIT (2)(3) VALUE (2) VALUE (2) BENEFIT (2)(3)
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,073 - 100,000 916 - 100,000
2 4,305 2,292 801 100,000 1,962 471 100,000
3 6,620 3,655 2,163 100,000 3,136 1,644 100,000
4 9,051 4,989 3,498 100,000 4,256 2,764 100,000
5 11,604 6,298 4,806 100,000 5,319 3,827 100,000
6 14,284 7,587 6,394 100,000 6,324 5,131 100,000
7 17,098 8,854 7,959 100,000 7,265 6,371 100,000
8 20,053 10,097 9,500 100,000 8,137 7,541 100,000
9 23,156 11,319 11,020 100,000 8,933 8,635 100,000
10 26,414 12,511 12,511 100,000 9,647 9,647 100,000
11 29,834 13,725 13,725 100,000 10,273 10,273 100,000
12 33,426 14,898 14,898 100,000 10,808 10,808 100,000
13 37,197 16,020 16,020 100,000 11,249 11,249 100,000
14 41,157 17,093 17,093 100,000 11,591 11,591 100,000
15 45,315 18,113 18,113 100,000 11,828 11,828 100,000
16 49,681 19,013 19,013 100,000 11,949 11,949 100,000
17 54,265 19,865 19,865 100,000 11,941 11,941 100,000
18 59,078 20,649 20,649 100,000 11,787 11,787 100,000
19 64,132 21,371 21,371 100,000 11,466 11,466 100,000
20 69,439 22,035 22,035 100,000 10,958 10,958 100,000
21 75,010 22,617 22,617 100,000 10,240 10,240 100,000
22 80,861 23,121 23,121 100,000 9,292 9,292 100,000
23 87,004 23,527 23,527 100,000 8,093 8,093 100,000
24 93,454 23,849 23,849 100,000 6,615 6,615 100,000
25 100,227 24,052 24,052 100,000 4,823 4,823 100,000
26 107,338 24,215 24,215 100,000 2,674 2,674 100,000
27 114,805 24,231 24,231 100,000 79 79 100,000
28 122,645 24,122 24,122 100,000 - - -
29 130,878 23,838 23,838 100,000 - - -
30 139,522 23,378 23,378 100,000 - - -
31 148,598 22,719 22,719 100,000 - - -
32 158,128 21,805 21,805 100,000 - - -
33 168,134 20,628 20,628 100,000 - - -
34 178,641 19,114 19,114 100,000 - - -
35 189,673 17,287 17,287 100,000 - - -
36 201,256 15,018 15,018 100,000 - - -
37 213,419 12,284 12,284 100,000 - - -
38 226,190 9,015 9,015 100,000 - - -
39 239,600 5,064 5,064 100,000 - - -
40 253,680 356 356 100,000 - - -
41 268,464 - - 100,000 - - -
42 283,987 - - 100,000 - - -
43 300,286 - - 100,000 - - -
44 317,400 - - 100,000 - - -
45 335,370 - - 100,000 - - -
46 354,239 - - 100,000 - - -
47 374,051 - - 100,000 - - -
48 394,853 - - 100,000 - - -
49 416,696 - - 100,000 - - -
50 439,631 - - 100,000 - - -
51 461,613 - - 100,000 - - -
52 484,695 - - 100,000 - - -
53 508,931 - - 100,000 - - -
54 534,378 - - 100,000 - - -
55 561,098 - - 100,000 - - -
</TABLE>
(1) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of additional premium payment.
(3) Increase due to adjustment by the corridor percentage.
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION II Net 1-25 Net 26+
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS ANNUAL
MALE NON-SMOKER STANDARD ISSUE AGE 45 RATE OF RETURN (CURRENT): 0.00% (-1.43%) 0.00% (-1.18%)
$100,000 INITIAL SPECIFIED AMOUNT (GUARANTEED) 0.00% (-1.68%) 0.00% (-1.43%)
ASSUMED ANNUAL PREMIUM(1): $2,000
PREMIUMS
END ACCUMULATED ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE (2) VALUE (2) BENEFIT (2)(3) VALUE (2) VALUE (2) BENEFIT (2)(3)
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,069 - 101,095 910 - 100,949
2 4,305 2,280 788 102,309 1,945 453 101,988
3 6,620 3,629 2,138 103,662 3,100 1,608 103,148
4 9,051 4,945 3,454 104,981 4,194 2,702 104,248
5 11,604 6,231 4,739 106,269 5,223 3,731 105,282
6 14,284 7,492 6,299 107,532 6,185 4,992 106,250
7 17,098 8,725 7,830 108,767 7,072 6,177 107,143
8 20,053 9,929 9,333 109,974 7,879 7,282 107,956
9 23,156 11,107 10,809 111,154 8,597 8,299 108,682
10 26,414 12,249 12,249 112,299 9,219 9,219 109,311
11 29,834 13,403 13,403 113,456 9,739 9,739 109,840
12 33,426 14,507 14,507 114,565 10,152 10,152 110,262
13 37,197 15,547 15,547 115,610 10,454 10,454 110,573
14 41,157 16,525 16,525 116,594 10,642 10,642 110,770
15 45,315 17,436 17,436 117,510 10,708 10,708 110,846
16 49,681 18,196 18,196 118,282 10,641 10,641 110,791
17 54,265 18,890 18,890 118,982 10,429 10,429 110,590
18 59,078 19,497 19,497 119,596 10,054 10,054 110,229
19 64,132 20,020 20,020 120,126 9,496 9,496 109,687
20 69,439 20,465 20,465 120,577 8,738 8,738 108,945
21 75,010 20,801 20,801 120,923 7,761 7,761 107,986
22 80,861 21,032 21,032 121,163 6,553 6,553 106,797
23 87,004 21,132 21,132 121,273 5,101 5,101 105,366
24 93,454 21,121 21,121 121,271 3,393 3,393 103,678
25 100,227 20,951 20,951 121,115 1,407 1,407 101,715
26 107,338 20,702 20,702 120,872 - - -
27 114,805 20,258 20,258 120,444 - - -
28 122,645 19,653 19,653 119,852 - - -
29 130,878 18,825 18,825 119,043 - - -
30 139,522 17,781 17,781 118,017 - - -
31 148,598 16,499 16,499 116,754 - - -
32 158,128 14,918 14,918 115,199 - - -
33 168,134 13,045 13,045 113,350 - - -
34 178,641 10,808 10,808 111,143 - - -
35 189,673 8,267 8,267 108,627 - - -
36 201,256 5,299 5,299 105,694 - - -
37 213,419 1,922 1,922 102,352 - - -
38 226,190 - - - - - -
39 239,600 - - - - - -
40 253,680 - - - - - -
41 268,464 - - - - - -
42 283,987 - - - - - -
43 300,286 - - - - - -
44 317,400 - - - - - -
45 335,370 - - - - - -
46 354,239 - - - - - -
47 374,051 - - - - - -
48 394,853 - - - - - -
49 416,696 - - - - - -
50 439,631 - - - - - -
51 461,613 - - - - - -
52 484,695 - - - - - -
53 508,931 - - - - - -
54 534,378 - - - - - -
55 561,098 - - - - - -
</TABLE>
(1) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of additional premium payment.
(3) Increase due to adjustment by the corridor percentage.
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I Net 1-25 Net 26+
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS ANNUAL
MALE NON-SMOKER STANDARD ISSUE AGE 45 RATE OF RETURN (CURRENT): 6.00% (4.57%) 6.00% (4.82%)
$100,000 INITIAL SPECIFIED AMOUNT (GUARANTEED) 6.00% (4.32%) 6.00% (4.57%)
ASSUMED ANNUAL PREMIUM(1): $2,000
PREMIUMS
END ACCUMULATED ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE (2) VALUE (2) BENEFIT (2)(3) VALUE (2) VALUE (2) BENEFIT (2)(3)
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,160 - 100,000 998 - 100,000
2 4,305 2,541 1,049 100,000 2,190 699 100,000
3 6,620 4,150 2,659 100,000 3,585 2,093 100,000
4 9,051 5,826 4,335 100,000 5,006 3,514 100,000
5 11,604 7,574 6,082 100,000 6,452 4,960 100,000
6 14,284 9,402 8,208 100,000 7,923 6,729 100,000
7 17,098 11,311 10,417 100,000 9,412 8,517 100,000
8 20,053 13,306 12,710 100,000 10,917 10,320 100,000
9 23,156 15,392 15,094 100,000 12,432 12,134 100,000
10 26,414 17,566 17,566 100,000 13,950 13,950 100,000
11 29,834 19,886 19,886 100,000 15,471 15,471 100,000
12 33,426 22,296 22,296 100,000 16,988 16,988 100,000
13 37,197 24,791 24,791 100,000 18,503 18,503 100,000
14 41,157 27,379 27,379 100,000 20,011 20,011 100,000
15 45,315 30,066 30,066 100,000 21,511 21,511 100,000
16 49,681 32,808 32,808 100,000 22,993 22,993 100,000
17 54,265 35,673 35,673 100,000 24,450 24,450 100,000
18 59,078 38,655 38,655 100,000 25,869 25,869 100,000
19 64,132 41,769 41,769 100,000 27,236 27,236 100,000
20 69,439 45,030 45,030 100,000 28,541 28,541 100,000
21 75,010 48,434 48,434 100,000 29,770 29,770 100,000
22 80,861 51,998 51,998 100,000 30,915 30,915 100,000
23 87,004 55,727 55,727 100,000 31,961 31,961 100,000
24 93,454 59,650 59,650 100,000 32,895 32,895 100,000
25 100,227 63,769 63,769 100,000 33,696 33,696 100,000
26 107,338 68,198 68,198 103,155 34,408 34,408 100,000
27 114,805 72,780 72,780 107,893 34,919 34,919 100,000
28 122,645 77,534 77,534 112,714 35,175 35,175 100,000
29 130,878 82,448 82,448 117,618 35,106 35,106 100,000
30 139,522 87,531 87,531 122,633 34,634 34,634 100,000
31 148,598 92,787 92,787 127,774 33,673 33,673 100,000
32 158,128 98,204 98,204 133,032 32,122 32,122 100,000
33 168,134 103,792 103,792 138,419 29,860 29,860 100,000
34 178,641 109,539 109,539 143,913 26,737 26,737 100,000
35 189,673 115,475 115,475 149,538 22,543 22,543 100,000
36 201,256 121,572 121,572 155,257 16,988 16,988 100,000
37 213,419 127,851 127,851 161,092 9,654 9,654 100,000
38 226,190 134,318 134,318 167,063 - - -
39 239,600 140,957 140,957 173,172 - - -
40 253,680 147,787 147,787 179,462 - - -
41 268,464 154,805 154,805 185,946 - - -
42 283,987 162,010 162,010 192,626 - - -
43 300,286 169,370 169,370 199,459 - - -
44 317,400 176,912 176,912 206,456 - - -
45 335,370 184,645 184,645 213,606 - - -
46 354,239 192,550 192,550 220,854 - - -
47 374,051 200,687 200,687 228,219 - - -
48 394,853 209,093 209,093 235,688 - - -
49 416,696 217,827 217,827 243,247 - - -
50 439,631 226,970 226,970 250,886 - - -
51 461,613 236,591 236,591 258,595 - - -
52 484,695 246,875 246,875 266,502 - - -
53 508,931 257,987 257,987 274,788 - - -
54 534,378 270,101 270,101 283,729 - - -
55 561,098 283,366 283,366 293,690 - - -
</TABLE>
(1) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of additional premium payment.
(3) Increase due to adjustment by the corridor percentage.
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION II Net 1-25 Net 26+
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS ANNUAL
MALE NON-SMOKER STANDARD ISSUE AGE 45 RATE OF RETURN (CURRENT): 6.00% (4.57%) 6.00% (4.82%)
$100,000 INITIAL SPECIFIED AMOUNT (GUARANTEED) 6.00% (4.32%) 6.00% (4.57%)
ASSUMED ANNUAL PREMIUM(1): $2,000
PREMIUMS
END ACCUMULATED ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE (2) VALUE (2) BENEFIT (2)(3) VALUE (2) VALUE (2) BENEFIT (2)(3)
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,156 - 101,176 991 - 101,026
2 4,305 2,527 1,035 102,544 2,171 679 102,204
3 6,620 4,121 2,630 104,134 3,543 2,052 103,575
4 9,051 5,774 4,283 105,782 4,932 3,440 104,962
5 11,604 7,490 5,999 107,493 6,332 4,841 106,362
6 14,284 9,279 8,085 109,275 7,742 6,549 107,771
7 17,098 11,139 10,244 111,129 9,152 8,257 109,181
8 20,053 13,072 12,476 113,057 10,555 9,958 110,584
9 23,156 15,085 14,786 115,062 11,942 11,643 111,972
10 26,414 17,169 17,169 117,140 13,301 13,301 113,334
11 29,834 19,380 19,380 119,345 14,624 14,624 114,660
12 33,426 21,657 21,657 121,617 15,904 15,904 115,943
13 37,197 23,989 23,989 123,944 17,131 17,131 117,176
14 41,157 26,379 26,379 126,329 18,299 18,299 118,348
15 45,315 28,823 28,823 128,769 19,395 19,395 119,450
16 49,681 31,245 31,245 131,193 20,402 20,402 120,465
17 54,265 33,733 33,733 133,675 21,301 21,301 121,373
18 59,078 36,264 36,264 136,203 22,068 22,068 122,151
19 64,132 38,845 38,845 138,779 22,673 22,673 122,770
20 69,439 41,480 41,480 141,410 23,087 23,087 123,200
21 75,010 44,142 44,142 144,069 23,280 23,280 123,412
22 80,861 46,832 46,832 146,757 23,227 23,227 123,380
23 87,004 49,525 49,525 149,449 22,898 22,898 123,075
24 93,454 52,238 52,238 152,161 22,266 22,266 122,468
25 100,227 54,923 54,923 154,849 21,290 21,290 121,521
26 107,338 57,697 57,697 157,615 19,969 19,969 120,230
27 114,805 60,408 60,408 160,332 18,183 18,183 118,484
28 122,645 63,086 63,086 163,012 15,848 15,848 116,196
29 130,878 65,663 65,663 165,598 12,868 12,868 113,270
30 139,522 68,138 68,138 168,082 9,148 9,148 109,613
31 148,598 70,481 70,481 170,435 4,601 4,601 105,136
32 158,128 72,620 72,620 172,592 - - -
33 168,134 74,547 74,547 174,536 - - -
34 178,641 76,175 76,175 176,190 - - -
35 189,673 77,545 77,545 177,582 - - -
36 201,256 78,514 78,514 178,586 - - -
37 213,419 79,077 79,077 179,183 - - -
38 226,190 79,185 79,185 179,330 - - -
39 239,600 78,713 78,713 178,907 - - -
40 253,680 77,638 77,638 177,883 - - -
41 268,464 75,873 75,873 176,177 - - -
42 283,987 73,324 73,324 173,695 - - -
43 300,286 69,789 69,789 170,243 - - -
44 317,400 65,246 65,246 165,787 - - -
45 335,370 59,595 59,595 160,230 - - -
46 354,239 52,609 52,609 153,358 - - -
47 374,051 44,301 44,301 145,163 - - -
48 394,853 34,565 34,565 135,548 - - -
49 416,696 23,286 23,286 124,401 - - -
50 439,631 10,351 10,351 111,606 - - -
51 461,613 - - - - - -
52 484,695 - - - - - -
53 508,931 - - - - - -
54 534,378 - - - - - -
55 561,098 - - - - - -
</TABLE>
(1) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of additional premium payment.
(3) Increase due to adjustment by the corridor percentage.
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION I Net 1-25 Net 26+
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS ANNUAL
MALE NON-SMOKER STANDARD ISSUE AGE 45 RATE OF RETURN (CURRENT): 12.00% (10.57%) 12.00% (10.82%)
$100,000 INITIAL SPECIFIED AMOUNT (GUARANTEED) 12.00% (10.32%) 12.00% (10.57%)
ASSUMED ANNUAL PREMIUM(1): $2,000
PREMIUMS
END ACCUMULATED ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE (2) VALUE (2) BENEFIT (2)(3) VALUE (2) VALUE (2) BENEFIT (2)(3)
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,248 - 100,000 1,081 - 100,000
2 4,305 2,800 1,309 100,000 2,429 938 100,000
3 6,620 4,689 3,198 100,000 4,074 2,582 100,000
4 9,051 6,771 5,280 100,000 5,855 4,364 100,000
5 11,604 9,070 7,578 100,000 7,786 6,294 100,000
6 14,284 11,615 10,422 100,000 9,881 8,688 100,000
7 17,098 14,431 13,536 100,000 12,153 11,258 100,000
8 20,053 17,546 16,949 100,000 14,618 14,021 100,000
9 23,156 20,996 20,698 100,000 17,292 16,994 100,000
10 26,414 24,811 24,811 100,000 20,196 20,196 100,000
11 29,834 29,090 29,090 100,000 23,355 23,355 100,000
12 33,426 33,830 33,830 100,000 26,799 26,799 100,000
13 37,197 39,085 39,085 100,000 30,566 30,566 100,000
14 41,157 44,920 44,920 100,000 34,712 34,712 100,000
15 45,315 51,405 51,405 100,013 39,287 39,287 100,000
16 49,681 58,532 58,532 110,979 44,349 44,349 100,000
17 54,265 66,380 66,380 122,698 49,965 49,965 100,000
18 59,078 75,010 75,010 135,229 56,208 56,208 101,426
19 64,132 84,503 84,503 148,657 63,026 63,026 110,981
20 69,439 94,950 94,950 163,083 70,408 70,408 121,051
21 75,010 106,426 106,426 178,577 78,393 78,393 131,674
22 80,861 119,036 119,036 195,245 87,024 87,024 142,889
23 87,004 132,874 132,874 213,165 96,350 96,350 154,738
24 93,454 148,080 148,080 232,473 106,423 106,423 167,261
25 100,227 164,749 164,749 253,234 117,296 117,296 180,497
26 107,338 183,246 183,246 275,878 129,167 129,167 194,687
27 114,805 203,518 203,518 300,295 141,957 141,957 209,707
28 122,645 225,779 225,779 326,692 155,707 155,707 225,577
29 130,878 250,166 250,166 355,217 170,455 170,455 242,341
30 139,522 276,896 276,896 386,128 186,245 186,245 260,061
31 148,598 306,179 306,179 419,663 203,129 203,129 278,803
32 158,128 338,196 338,196 456,004 221,174 221,174 298,641
33 168,134 373,222 373,222 495,416 240,458 240,458 319,650
34 178,641 411,462 411,462 538,064 261,074 261,074 341,907
35 189,673 453,312 453,312 584,297 283,113 283,113 365,470
36 201,256 498,966 498,966 634,251 306,650 306,650 390,385
37 213,419 548,831 548,831 688,309 331,749 331,749 416,705
38 226,190 603,296 603,296 746,883 358,448 358,448 444,470
39 239,600 662,677 662,677 810,343 386,772 386,772 473,734
40 253,680 727,475 727,475 879,287 416,761 416,761 504,588
41 268,464 798,139 798,139 954,236 448,477 448,477 537,129
42 283,987 875,148 875,148 1,035,692 482,012 482,012 571,463
43 300,286 958,857 958,857 1,123,953 517,481 517,481 607,687
44 317,400 1,049,976 1,049,976 1,219,629 555,025 555,025 645,900
45 335,370 1,149,167 1,149,167 1,323,233 594,816 594,816 686,195
46 354,239 1,256,977 1,256,977 1,435,053 637,053 637,053 728,665
47 374,051 1,374,516 1,374,516 1,555,833 681,980 681,980 773,392
48 394,853 1,502,885 1,502,885 1,686,177 729,880 729,880 820,441
49 416,696 1,643,441 1,643,441 1,826,713 781,083 781,083 869,836
50 439,631 1,797,910 1,797,910 1,978,138 835,792 835,792 921,358
51 461,613 1,968,134 1,968,134 2,141,197 893,890 893,890 974,465
52 484,695 2,157,183 2,157,183 2,317,886 954,436 954,436 1,027,864
53 508,931 2,368,432 2,368,432 2,510,967 1,014,426 1,014,426 1,078,475
54 534,378 2,605,794 2,605,794 2,724,577 1,070,767 1,070,767 1,123,537
55 561,098 2,873,523 2,873,523 2,964,404 1,145,902 1,145,902 1,185,190
</TABLE>
(1) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of additional premium payment.
(3) Increase due to adjustment by the corridor percentage.
<PAGE>
JEFFERSON PILOT FINANCIAL INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
<TABLE>
<CAPTION>
DEATH BENEFIT OPTION II Net 1-25 Net 26+
CASH VALUE ACCUMULATION TEST ASSUMED HYPOTHETICAL GROSS ANNUAL
MALE NON-SMOKER STANDARD ISSUE AGE 45 RATE OF RETURN (CURRENT): 12.00% (10.57%) 12.00% (10.82%)
$100,000 INITIAL SPECIFIED AMOUNT (GUARANTEED) 12.00% (10.32%) 12.00% (10.57%)
ASSUMED ANNUAL PREMIUM(1): $2,000
PREMIUMS
END ACCUMULATED ASSUMING CURRENT COSTS ASSUMING GUARANTEED COSTS
OF AT 5% INTEREST ACCUMULATION CASH DEATH ACCUMULATION CASH DEATH
YEAR PER YEAR VALUE (2) VALUE (2) BENEFIT (2)(3) VALUE (2) VALUE (2) BENEFIT (2)(3)
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,100 1,243 - 101,257 1,074 - 101,103
2 4,305 2,785 1,293 102,788 2,408 916 102,429
3 6,620 4,655 3,164 104,645 4,026 2,535 104,037
4 9,051 6,709 5,218 106,683 5,767 4,275 105,768
5 11,604 8,967 7,476 108,923 7,638 6,146 107,627
6 14,284 11,457 10,264 111,392 9,649 8,456 109,626
7 17,098 14,200 13,305 114,114 11,805 10,910 111,770
8 20,053 17,221 16,625 117,110 14,114 13,517 114,065
9 23,156 20,552 20,253 120,414 16,582 16,283 116,519
10 26,414 24,214 24,214 124,047 19,214 19,214 119,137
11 29,834 28,296 28,296 128,098 22,021 22,021 121,929
12 33,426 32,783 32,783 132,550 25,012 25,012 124,904
13 37,197 37,713 37,713 137,441 28,203 28,203 128,078
14 41,157 43,134 43,134 142,819 31,614 31,614 131,469
15 45,315 49,094 49,094 148,732 35,266 35,266 135,100
16 49,681 55,563 55,563 155,156 39,170 39,170 138,982
17 54,265 62,685 62,685 162,222 43,337 43,337 143,126
18 59,078 70,508 70,508 169,983 47,775 47,775 147,541
19 64,132 79,111 79,111 178,519 52,490 52,490 152,232
20 69,439 88,585 88,585 187,916 57,488 57,488 157,205
21 75,010 98,992 98,992 198,242 62,778 62,778 162,470
22 80,861 110,437 110,437 209,596 68,374 68,374 168,039
23 87,004 123,004 123,004 222,066 74,291 74,291 173,928
24 93,454 136,838 136,838 235,789 80,545 80,545 180,153
25 100,227 152,024 152,024 250,858 87,147 87,147 186,724
26 107,338 168,920 168,920 267,603 94,216 94,216 193,752
27 114,805 187,481 187,481 286,018 101,634 101,634 201,140
28 122,645 207,924 207,924 306,297 109,378 109,378 208,855
29 130,878 230,392 230,392 328,588 117,408 117,408 216,860
30 139,522 255,101 255,101 355,736 125,691 125,691 225,121
31 148,598 282,220 282,220 386,825 134,199 134,199 233,610
32 158,128 311,882 311,882 420,524 142,915 142,915 242,307
33 168,134 344,331 344,331 457,067 151,826 151,826 251,201
34 178,641 379,758 379,758 496,607 160,928 160,928 260,287
35 189,673 418,531 418,531 539,468 170,192 170,192 269,536
36 201,256 460,830 460,830 585,775 179,553 179,553 278,889
37 213,419 507,029 507,029 635,884 188,915 188,915 288,251
38 226,190 557,491 557,491 690,177 198,132 198,132 297,481
39 239,600 612,509 612,509 748,995 207,025 207,025 306,401
40 253,680 672,546 672,546 812,895 215,419 215,419 314,839
41 268,464 738,017 738,017 882,357 223,150 223,150 322,628
42 283,987 809,369 809,369 957,846 230,066 230,066 329,615
43 300,286 886,930 886,930 1,039,642 236,007 236,007 335,641
44 317,400 971,356 971,356 1,128,307 240,804 240,804 340,538
45 335,370 1,063,262 1,063,262 1,224,317 244,258 244,258 344,109
46 354,239 1,163,155 1,163,155 1,327,941 246,123 246,123 346,113
47 374,051 1,272,064 1,272,064 1,439,866 246,085 246,085 346,241
48 394,853 1,391,006 1,391,006 1,560,653 243,708 243,708 344,069
49 416,696 1,521,240 1,521,240 1,690,885 238,359 238,359 338,978
50 439,631 1,664,365 1,664,365 1,831,206 228,851 228,851 329,834
51 461,613 1,822,086 1,822,086 1,982,308 212,951 212,951 314,492
52 484,695 1,997,249 1,997,249 2,146,038 186,076 186,076 288,575
53 508,931 2,192,977 2,192,977 2,324,954 137,678 137,678 242,057
54 534,378 2,412,898 2,412,898 2,522,888 49,511 49,511 157,366
55 561,098 2,660,769 2,660,769 2,744,921 - - -
</TABLE>
(1) Assumes a $2,000 premium is paid at the beginning of each policy year.
Values would be different if premiums are paid with a different frequency
or in different amounts
(2) Assumes that no policy loans or withdrawals have been made. Zero values
indicate lapse in the absence of additional premium payment.
(3) Increase due to adjustment by the corridor percentage.
<PAGE>
PART II
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 SEC
such supplementary and periodic information, documents, and reports as may be
prescribed by any rule or regulation of the Securities and Exchange Commission
heretofore, or hereafter duly adopted pursuant to authority conferred in that
section.
UNDERTAKING REGARDING INDEMNIFICATION
Pursuant to Rule 484(b)(1) of the Securities Act of 1933, insofar as
indemnification for liability arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the Registrant, 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 of controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
REPRESENTATIONS REGARDING THE REASONABLENESS OF FEES AND CHARGES
Jefferson Pilot Financial Insurance Company hereby represents that the fees and
charges deducted under the Flexible Premium Variable Life Insurance Policies
hereby registered by this Registration Statement in the aggregate are reasonable
in relation to the services rendered, the expenses expected to be incurred, and
the risks assumed by Jefferson Pilot Financial Insurance Company.
REPRESENTATION PURSUANT TO RULE 6e-3(T)
This filing is made pursuant to Rule 6e-3(T) under the Investment Company Act of
1940, as amended (the "1940 Act").
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following pages and documents:
The facing sheet
The prospectus consisting of 63 pages
The undertaking to file reports
The undertaking pursuant to Rule 484(b)(1) under the Securities Act of 1933
regarding indemnification
The representation as to fees and charges.
The representation pursuant to Rule 6e-3(T)
The signatures
Written consents of the following persons:
(a) Richard Dielensnyder, FSA, MAAA, contained in Exhibit 6 below.
(b) (to be filed by Amendment).
The following exhibits:
<PAGE>
1. The following exhibits correspond to those required by paragraph A of the
instructions as to exhibits in Form N-8B-2:
(a) (i) Certified Copy of Resolution of the Executive Committee of the Board
of Directors of JP Financial Insurance Company establishing Chubb Separate
Account A. (Incorporated by reference to Registrant's Registration Statement on
Form S-6, filed on December 10, 1993, File No. 33-72830.)
(ii) Certified Copy of Resolution of the Board of Directors of JP Financial
Insurance Company authorizing the registration of a new policy offered through
the Chubb Separate Account A (Incorporated by reference to Pre-Effective
Amendment No. 1 to the Registrant's Registration Statement on Form S-6, filed on
March 13, 1996, File No. 33-01781).
(b) Not Applicable
(c) (i) Form of Distribution Agreement among JP Financial Insurance Company,
Chubb Separate Account A, and Chubb Securities Corporation. (Incorporated by
reference to Registrant's Registration Statement on Form S-6, filed on December
10, 1993, File No. 33-72830.)
(ii) Specimen Variable Contracts Selling Agreement between Jefferson Pilot
Variable Corporation and Selling Broker-Dealers (to be filed by Amendment).
(iii) Schedule of Sales Commissions (to be filed by Amendment)
(d) Not Applicable
(e)
(i) Specimen last survivor flexible premium variable life insurance
policy (to be filed by Amendment)
(ii) Forms of Riders (to be filed by Amendment)
(f) (i) Amended and Restated Charter, with all amendments, of JP Financial
Insurance Company. Incorporated by reference to Exhibit 1(f)(i) of Registrant's
Pre-Effective Amendment No. 1 to the Registration Statement on Form S-6, filed
March 13, 1996, File No. 33-01781.
(ii) By-Laws of JP Financial Insurance Company. (Incorporated by reference to
Exhibit 1(f)(i) of Registrant's Pre-Effective Amendment No. 1 to the
Registration Statement on Form S-6, filed March 13, 1996, File No. 33-01781.
(g) Not Applicable
(h) (i) Participation Agreement by and among Oppenheimer Variable Account
Funds, Chubb Life Insurance Company and Oppenheimer Funds Inc., dated January 8,
1998.*
(ii) Participation Agreement among MFS Variable Trust, Chubb Life Insurance
Company and Massachusetts Financial Services Company dated December 9, 1997.*
(iii) Participation Agreement among Templeton Variable Products Series Fund,
Franklin Templeton Distributors Inc., and Chubb Life Insurance Company, dated
May 1, 1995.*
(iv) Participation Agreement among Variable Insurance Products Fund, Fidelity
Distributors Corporation and Chubb Life Insurance Company dated May 1, 1996.*
(v) Participation Agreement among Variable Insurance Products Fund II,
Fidelity Distributors Corporation and Chubb Life Insurance Company
dated May 1, 1996.*
* Incorporated by reference to Post-Effective Amendment No. 3 to Registrant's
Registration Statement on Form S-6 dated December 1, 1998, File No. 33-01781.
<PAGE>
(i) Not applicable
(j) Specimen Application (to be filed by Amendment)
2. Opinion of counsel as to securities being registered (to be filed by
Amendment).
3. Not applicable.
4. Not applicable.
5. Actuarial opinions and consents of Richard Dielensnyder, FSA, MAAA (to be
filed by Amendment).
6. Consent of independent auditors (to be filed by Amendment).
7. Procedures Memorandum pursuant to Rule 6e-3(T)(b)(12)(iii) under the 1940
Act (to be filed by Amendment).
8. Form of Reinsurance Agreement. (Incorporated by reference to Registrant's
Pre-effective Amendment No. 1 to the Registration Statement on Form S-6, filed
May 24, 1994, File No. 33-72830).
9. Memorandum regarding reliance on Order of the Commission to deduct the DAC
Tax Charge (Incorporated by reference to Pre-Effective Amendment No.1 to the
Registration Statement on Form S-6 filed on March 13, 1996, File No. 33-01781).
27. Financial Data Schedule. Not Applicable.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant, JPF Separate Account A, has caused this Registration Statement on
Form S-6 to be signed on its behalf by the undersigned thereunto duly
authorized, and its seal to be hereunto affixed and attested, all in Concord,
New Hampshire, on the 15th day of December, 1999.
(Seal) JPF Separate Account A
(Registrant)
Jefferson Pilot Financial Insurance Company
(Depositor)
By: /s/ Charles C. Cornelio
---------------------------
Charles C. Cornelio
Title: Executive Vice President
Attest: /s/ Ronald Angarella
---------------------------
Ronald Angarella
Senior Vice President
II-58t
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, Jefferson
Pilot Financial Insurance Company has caused this Registration Statement on Form
S-6 to be signed on its behalf by the undersigned thereunto duly authorized, and
its seal to be hereunto affixed and attested, all in Concord, New Hampshire on
the 15th day of December, 1999.
(Seal) Jefferson Pilot Financial Insurance Company
By: /s/ Charles C. Cornelio
----------------------------
Charles C. Cornelio
Title: Executive Vice President
Attest: /s/ Ronald Angarella
--------------------------------
Ronald Angarella
Senior Vice President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the date indicated.
Signatures Title
/s/ Dennis R. Glass
- -----------------------------------
Dennis R. Glass Director
/s/ Kenneth C. Mlekosh
- -----------------------------------
Kenneth C. Mlekosh Director
/s/ David A. Stonecipher
- -----------------------------------
David A. Stonecipher Director
/s/ E. Jay Yelton
- -----------------------------------
E. Jay Yelton Director
II-59t
