Registration Nos. 33-2460
811-4819
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 15 [X]
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 19 [X]
GREAT AMERICAN RESERVE VARIABLE ANNUITY ACCOUNT C
(Exact Name of Registrant)
GREAT AMERICAN RESERVE INSURANCE COMPANY
(Name of Depositor)
11825 N. Pennsylvania Street
Carmel, Indiana 46032-4572
(Address of Depositor's Principal Executive Offices)
(317) 817-3700
(Depositor's Telephone Number, including Area Code)
Michael A. Colliflower
Great American Reserve Insurance Company
11825 N. Pennsylvania Street
Carmel, Indiana 46032-4572
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate
space):
[ ] immediately upon filing pursuant to paragraph (b) of Rule 485
[X] on May 1, 1998 pursuant to paragraph (b) of Rule 485
[ ] 60 days after filing pursuant to paragraph (a) (1) of Rule 485
[ ] on [date] pursuant to paragraph (a) (1) of Rule 485.
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date
for a previously filed post- effective amendment
Title of Securities Registered:
Individual Variable Deferred Annuity Contracts
GREAT AMERICAN RESERVE VARIABLE ANNUITY ACCOUNT C
FORM N-4
CROSS REFERENCE SHEET
Pursuant to Rule 495(a)
Under The Securities Act of 1933
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Form N-4
Item No. PART A - Prospectus Caption
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1. Cover Page................................... Cover Page
2. Definitions.................................. Definitions
3. Synopsis or Highlights....................... Summary
4. Condensed Financial Information.............. Condensed Financial Information
5. General Description of Registrant,........... Great American Reserve, Variable Account, and
Depositor and Portfolio Companies Investment Options
6. Deductions and Expense....................... Contract Charges
7. General Description of Variable.............. The Contracts
Annuity Contracts
8. Annuity Period .............................. The Contracts
Section B. Annuity Provisions
9. Death Benefit................................ The Contracts
Section B. Annuity Provisions: Death Benefit During
the Annuity Period
10. Purchase and Contract Values................. Great American Reserve, Variable Account, and
Investment Options
The Contracts
Section A. Accumulation Provisions
11. Redemptions.................................. The Contracts
Section B. Annuity Provisions
12. Taxes........................................ Federal Tax Status
13. Legal Proceedings............................ Not Applicable
14. Table of Contents of the Statement........... Table of Contents of the Statement
of Additional Information of Additional Information
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Form N-4
Item No.
PART B - Statement of Additional Information
-----------------------------------
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15. Cover Page................................... Statement of Additional Information
Cover Page
16. Table of Contents............................ Table of Contents
17. General Information and History.............. General Information and History
18. Services..................................... Not Applicable
19. Purchase of Securities....................... Not Applicable
Being Offered
20. Underwriters................................. Distribution
21. Calculation of Performance Data.............. Calculation of Yield Quotations, Calculation of
Total Return Quotations, and Other Performance Data
22. Annuity Payments............................. Not Applicable
23. Financial Statements......................... Financial Statements
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PART C
Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C of this registration statement.
PART A
GREAT AMERICAN
RESERVE
1998 ACCOUNT C
INDIVIDUAL VARIABLE ANNUITY
- -------------------------------------------------------------------------------
GREAT AMERICAN RESERVE VARIABLE ANNUITY ACCOUNT C
INDIVIDUAL VARIABLE DEFERRED ANNUITY CONTRACTS
OFFERED BY
GREAT AMERICAN RESERVE INSURANCE COMPANY
ADMINISTRATIVE OFFICE:
11815 N. PENNSYLVANIA STREET, CARMEL, IN 46032
(317) 817-3700
The Individual Variable Deferred Annuity Contracts (the "Contracts")
described by this Prospectus are offered by Great American Reserve Insurance
Company ("Great American Reserve"). The Contracts are designed for use in
retirement planning for individuals. Both flexible installment purchase payment
and single payment annuity Contracts are offered by this Prospectus. Purchase
Payments received with respect to the Contracts (subject to certain deductions)
are deposited by Great American Reserve in the Fixed Account and/or the separate
investment account entitled Great American Reserve Variable Annuity Account C
(the "Variable Account") for further investment.
The Variable Account is a unit investment trust separate account. The
Variable Account consists of 40 sub-accounts ("Sub-accounts"), each of which
invests in shares of the eligible open-end management investment companies
("Funds"). The Sub-accounts invest in shares of the following Funds: the Conseco
Series Trust Asset Allocation, Common Stock, Corporate Bond, Government
Securities and Money Market Portfolios; the Alger American Fund Growth,
Leveraged AllCap, MidCap Growth, and Small Capitalization Portfolios; the
American Century Variable Portfolios, Inc. VP International, VP Value and VP
Income & Growth Funds; the Berger Institutional Products Trust Berger IPT - 100,
Berger IPT - Growth and Income, Berger IPT - Small Company Growth and
Berger/BIAM IPT - International Funds; The Dreyfus Socially Responsible
Growth Fund, Inc.; the Dreyfus Stock Index Fund; the Dreyfus Variable
Investment Fund International Value and Disciplined Stock Portfolios; the
Federated Insurance Series High Income Bond II, International Equity II and
Utility II Funds; the INVESCO Variable Investment Funds, Inc. INVESCO VIF -
High Yield and INVESCO VIF - Industrial Income Portfolios; the Janus Aspen
Series Aggressive Growth, Growth and Worldwide Growth Portfolios; the Lazard
Retirement Series, Inc. Lazard Retirement Equity and Lazard Retirement Small
Cap Portfolios; the Lord Abbett Series Fund, Inc. Growth and Income
Portfolio; the Mitchell Hutchins Series Trust Growth and Income Portfolio;
the Neuberger & Berman Advisers Management Trust Limited Maturity Bond and
Partners Portfolios; the Strong Opportunity Fund II, Inc. Opportunity Fund II;
the Strong Variable Insurance Funds, Inc. Growth Fund II; and the Van Eck
Worldwide Insurance Trust Worldwide Hard Assets, Worldwide Bond, Worldwide
Emerging Markets and Worldwide Real Estate Funds.
TEN OF THESE FUNDS, INCLUDING THE AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
VP INCOME & GROWTH FUND; THE INVESCO VARIABLE INVESTMENT FUNDS, INC. INVESCO
VIF - HIGH YIELD AND INVESCO VIF - INDUSTRIAL INCOME PORTFOLIOS; THE DREYFUS
VARIABLE INVESTMENT FUND, INC. INTERNATIONAL VALUE AND DISCIPLINED STOCK
PORTFOLIOS; THE LAZARD RETIREMENT SERIES, INC. LAZARD RETIREMENT EQUITY AND
LAZARD RETIREMENT SMALL CAP PORTFOLIOS; THE LORD ABBETT SERIES FUND, INC.
GROWTH AND INCOME PORTFOLIO; THE MITCHELL HUTCHINS SERIES TRUST GROWTH AND
INCOME PORTFOLIO; AND THE VAN ECK WORLDWIDE INSURANCE TRUST WORLDWIDE REAL
ESTATE FUND WILL BE AVAILABLE FOR THE FIRST TIME UNDER THE CONTRACTS ON MAY 1,
1998. The availability of such Funds may be delayed beyond May 1, 1998,
pending receipt of state approvals. Before investing in any of the Sub-
accounts, carefully review the prospectuses of the eligible Funds.
This Prospectus contains information regarding the Contracts which investors
should know before investing. It should be read and retained for future
reference. A Statement of Additional Information about the Variable Account has
been filed with the Securities and Exchange Commission ("SEC") and is available
without charge upon request. To obtain a free copy, contact Great American
Reserve at the address or telephone number given above. The Table of Contents of
the Statement of Additional Information appears in this Prospectus on page __.
The Statement of Additional Information dated May 1, 1998, is incorporated
herein by reference. The SEC maintains a Web site (http://www.sec.gov) that
contains the Statement of Additional Information, material incorporated by
reference, and other information regarding companies that file electronically
with the SEC.
INVESTMENT IN A VARIABLE ANNUITY CONTRACT IS SUBJECT TO RISKS, INCLUDING THE
POSSIBLE LOSS OF PRINCIPAL. THE CONTRACTS ARE NOT DEPOSITS OR OBLIGATIONS OF,
OR GUARANTEED OR ENDORSED BY, ANY FINANCIAL INSTITUTION AND ARE NOT FEDERALLY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD,
OR ANY OTHER AGENCY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Investors should read and retain this Prospectus for future
reference.
The date of this Prospectus is May 1, 1998.
TABLE OF CONTENTS
PAGE
Definitions..............................................
Summary..................................................
Fee Table................................................
Condensed Financial Information.........................
Great American Reserve, Variable Account,
and the Investment Options
A. Great American Reserve..........................
B. Variable Account ...............................
C. Investment Options .............................
The Contracts
A. Accumulation Provisions
PURCHASE PAYMENTS...............................
ACCUMULATION UNITS..............................
ALLOCATION OF PURCHASE
PAYMENTS AND TRANSFERS.......................
DOLLAR COST AVERAGING...........................
REBALANCING.....................................
SWEEPS..........................................
VALUE OF AN INDIVIDUAL ACCOUNT..................
NET INVESTMENT FACTOR FOR EACH
VALUATION PERIOD.............................
INFORMATION ON THE FIXED ACCOUNT................
WITHDRAWALS.....................................
SYSTEMATIC WITHDRAWAL PLAN......................
CHECK WRITING...................................
LOANS...........................................
Contract Charges
PREMIUM TAXES................................
ADMINISTRATIVE CHARGE........................
MORTALITY AND EXPENSE RISK CHARGE............
WITHDRAWAL CHARGE............................
EXPENSE GUARANTEE AGREEMENT..................
OTHER CHARGES................................
DEATH BENEFITS..................................
RESTRICTIONS UNDER OPTIONAL
RETIREMENT PROGRAMS..........................
RESTRICTIONS UNDER SECTION 403(B)
PLANS........................................
B. Annuity Provisions
ELECTING THE ANNUITY PERIOD
AND FORM OF ANNUITY.......................
ANNUITY OPTIONS................................
DETERMINATION OF AMOUNT OF THE
FIRST MONTHLY VARIABLE ANNUITY
PAYMENT...................................
VALUE OF AN ANNUITY UNIT.......................
AMOUNTS OF SUBSEQUENT
MONTHLY VARIABLE ANNUITY
PAYMENTS..................................
TRANSFERS DURING THE ANNUITY PERIOD............
DEATH BENEFIT DURING THE ANNUITY
PERIOD....................................
C. Other Contract Provisions
TYPE OF CONTRACT...............................
COMPANY APPROVAL...............................
TEN-DAY RIGHT TO REVIEW........................
ASSIGNMENT.....................................
FEDERAL TAX STATUS
General............................................
Diversification....................................
Multiple Contracts.................................
Contracts Owned by Other than Natural Persons......
Tax Treatment of Assignments.......................
Income Tax Withholding.............................
Tax Treatment of Withdrawals-
Non-qualified Contracts..........................
Qualified Plans....................................
Tax Treatment of Withdrawals-
Qualified Contracts..............................
Tax Sheltered Annuities-
Withdrawal Limitations...........................
Mandatory Distributions - Qualified Plans..........
Voting Rights...........................................
General Matters
PERFORMANCE INFORMATION............................
DISTRIBUTION OF CONTRACTS..........................
CONTRACT OWNER INQUIRIES...........................
LEGAL PROCEEDINGS..................................
OTHER INFORMATION..................................
Table of Contents of the Statement of
Additional Information.............................
DEFINITIONS
ACCUMULATION PERIOD: The period before the commencement of annuity payments,
during which purchase payments are accumulated for payment of future annuity
benefits.
ACCUMULATION UNIT: An accounting unit of measure used to calculate the
values during the accumulation period.
AMOUNT REDEEMED: The total value of the accumulation units canceled upon
partial or full withdrawal during the accumulation period.
ANNUITANT: The named individual upon whose life annuity payments are based
and who receives annuity payments.
ANNUITY: A series of payments for life; or for life with a minimum number of
payments certain; or for the joint lifetime of the annuitant and a second person
and thereafter during the remaining lifetime of the survivor; or for a certain
period; or for a certain payment amount.
ANNUITY PERIOD: The period following the commencement of annuity payments.
ANNUITY UNIT: An accounting unit of measure used to calculate the amount of
annuity payments.
CONTRACT OWNER: The individual, corporation, trust, association, partnership
or other entity entitled to all of the ownership rights under the contract. Also
referred to as "you" or "your."
CONTRACT VALUE: The total of your individual account values held under the
contract in each investment option of the variable account plus the fixed
account.
FIXED ACCOUNT: The general account of Great American Reserve in which you
may choose to allocate purchase payments and contract values. It provides
guaranteed values and periodically adjusted interest rates.
GREAT AMERICAN RESERVE: Great American Reserve Insurance Company. Also
referred to as "we" or "us".
GREAT AMERICAN RESERVE VARIABLE ANNUITY ACCOUNT C (VARIABLE ACCOUNT):
Pursuant to the insurance laws of Texas, assets attributable to the variable
portions of contracts are segregated from other assets of Great American Reserve
and are held in the Great American Reserve Variable Annuity Account C.
INDIVIDUAL ACCOUNT: The record established by Great American Reserve which
represents a contract owner's interest in an investment option during the
accumulation period.
INVESTMENT OPTIONS: The investment choices available to contract owners.
PARTICIPANT: Any eligible person participating in a plan and for whom an
individual account is established under a contract.
PLAN: A voluntary program of an employer which qualifies for special tax
treatment.
PURCHASE PAYMENTS: Premium payments made to Great American Reserve under the
terms of the contract.
REDEMPTION PAYMENT: The amount paid upon a withdrawal request, equal to the
amount redeemed less any applicable withdrawal charge and any administrative
fee.
VALUATION PERIOD: The period of time from the end of one business day of the
New York Stock Exchange to the end of the next business day.
VARIABLE ANNUITY: An annuity which provides retirement payments which vary
in dollar amount with investment results.
SUMMARY
THE CONTRACTS. The Contracts offered by this Prospectus are tax-deferred
flexible purchase payment and single purchase payment variable annuity
contracts. The Contracts provide for the accumulation of contract values and the
payment of annuity benefits on a variable and/or fixed basis. Except as
specifically noted herein and set forth under the caption "Information on the
Fixed Account," this Prospectus describes only the variable portion of the
Contracts. The Contracts may be available in several states only through certain
group retirement plans in those states.
RETIREMENT PLANS. The Contracts may be issued pursuant to plans qualifying
for special income tax treatment under the Internal Revenue Code (the "Code"),
such as tax-sheltered annuities ("TSAs") and state and local government
deferred compensation plans (see "Federal Tax Status").
PURCHASE PAYMENTS. Certain Contracts permit Purchase Payments to be made
on a flexible purchase payment basis. The minimum initial payment for the
single-premium contracts is $10,000 and for flexible-premium contracts is
$10, and for each subsequent payment is $10 per month. Purchase Payments may be
made at any time, except that if a Purchase Payment exceeds $500,000, it
will be accepted only with the prior approval of Great American Reserve (see
"Purchase Payments").
INVESTMENT OPTIONS. Purchase Payments may be allocated among the 41
investment options available under the Contracts: 40 variable investment options
and one fixed option. The 40 variable investment options consist of Sub-
accounts which invest in shares of the following Funds: the Conseco Series Trust
Asset Allocation, Common Stock, Corporate Bond, Government Securities and Money
Market Portfolios; the Alger American Fund Growth, Leveraged AllCap, MidCap
Growth and Small Capitalization Portfolios; the American Century Variable
Portfolios, Inc. VP International, VP Value and VP Income & Growth Funds; the
Berger Institutional Products Trust Berger IPT - 100, Berger IPT - Growth and
Income, Berger IPT - Small Company Growth and Berger/BIAM - IPT International
Funds; The Dreyfus Socially Responsible Growth Fund, Inc.; the Dreyfus Stock
Index Fund; the Dreyfus Variable Investment Fund International Value and
Disciplined Stock Portfolios; the Federated Insurance Series High Income Bond
II, International Equity II and Utility II Funds; INVESCO Variable Investment
Funds, Inc. INVESCO VIF-High Yield and INVESCO VIF-Industrial Income
Portfolios; the Janus Aspen Series Aggressive Growth, Growth and Worldwide
Growth Portfolios; the Lazard Retirement Series, Inc. Lazard Retirement Equity
and Lazard Retirement Small Cap Portfolios; the Lord Abbett Series Fund, Inc.
Growth and Income Portfolio; the Mitchell Hutchins Series Trust Growth and
Income Portfolio; the Neuberger & Berman Advisers Management Trust Limited
Maturity Bond and Partners Portfolios; the Strong Opportunity Fund II, Inc.
Opportunity Fund, II; the Strong Variable Insurance Funds, Inc. Growth Fund
II; and the Van Eck Worldwide Insurance Trust Worldwide Hard Assets, Worldwide
Bond, Worldwide Emerging Markets and Worldwide Real Estate Funds (see the
accompanying prospectuses of the eligible Funds). The portion of the
Contract Value in the Variable Account will reflect the investment
performance of the investment options selected (see "Variable Account").
Purchase Payments may also be allocated to the Fixed Account (see "Information
on the Fixed Account"). Subject to certain regulatory limitations Great
American Reserve may elect to add, subtract or substitute investment
options.
TRANSFERS. During the Accumulation Period, amounts may be transferred among
the Variable Account investment options and from the Variable Account investment
options to the Fixed Account investment option without charge. In addition,
amounts may be transferred from the Fixed Account investment option to the
Variable Account investment options, subject to a limit of 20 percent of the
Fixed Account value per any six-month period (see "Information on the Fixed
Account"). During the Annuity Period, transfers are not permitted from variable
annuity options to fixed annuity options or from fixed annuity options to
variable annuity options. Great American Reserve may impose certain additional
limitations on transfers (see "Allocation of Purchase Payments and Transfers"
and "Transfers During the Annuity Period"). Transfer privileges may also be used
under special services offered by Great American Reserve to dollar cost average
an investment in the contract (see "Dollar Cost Averaging"), transfer savings
from the Fixed Account to another investment option (see "Sweeps"), or rebalance
investments on a periodic basis (see "Rebalancing").
WITHDRAWALS. The participant may withdraw all or a portion of the Contract
Value. A withdrawal charge and an administrative fee (annual contract fee)
may be imposed (see "Withdrawal Charge"). A withdrawa may also be subject
to income taxes and a penalty tax (see "Federal Tax Status"). Withdrawal
privileges may also be exercised pursuant to Great American Reserve's systematic
withdrawal plan (see "Systematic Withdrawal Plan").
LOANS. The contract may contain a loan provision in connection with certain
qualified plans. Owners of such contracts may be eligible to obtain loans using
the contract as the only security for the loan (see "Loans").
DEATH BENEFIT. Generally, if the Owner, a Co-Owner, a Joint Owner or the
Annuitant dies during the Accumulation Period, Great American Reserve will
pay to the beneficiary the death benefit less any outstanding loans (see
"Death Benefit").
ANNUITY PAYMENTS. Great American Reserve offers a variety of fixed and
variable annuity options. Periodic annuity payments will begin during the
Annuity Period. The Contract Owner selects the date when annuity payments begin,
frequency of payment and annuity option (see "Annuity Provisions").
TEN-DAY REVIEW. Within 10 days of receipt of a Contract (or the period
required in your state), a Contract Owner may cancel the Contract by returning
it to Great American Reserve (see "Ten-Day Right to Review").
TAXES. For TSA Contracts, there is a ten percent (10%) federal income
tax penalty that may be applied to the income portion of any distribution. The
penalty is not imposed under certain circumstances. (See "Federal Tax Status-
Tax Treatment of Withdrawals - Qualified Contracts.") For TSA Contracts,
withdrawals of amounts attributable to contributions made pursuant to a salary
reduction agreement (as defined in the Internal Revenue Code) are limited to
circumstances only when the Contract Owner attains age 59 1/2, separates from
service, dies, becomes disabled or in the case of hardship. Withdrawals for
hardship are restricted to the portion of the Contract Owner's Contract value
which represents contributions made by the Owner and does not include any
investment results. (See "Federal Tax Status - Tax-Sheltered Annuities -
Withdrawal Limitations.")
For Non-Qualified Contracts, there is a ten percent (10%) federal income tax
penalty that may be applied to the income portion of any distribution. The
penalty is not imposed under certain circumstances. In addition, the Contract
provides that upon the death of the Annuitant prior to the Maturity Date, the
death proceeds will be paid to the beneficiary. Such payments upon the death of
the Annuitant who is not the Contract Owner do not qualify for the death of
Contract Owner exception to the ten percent distribution penalty unless the
beneficiary is 59 1/2 or one of the other exceptions to the penalty applies.
(See "Federal Tax Status - Tax Treatment of Withdrawals- Non-Qualified
Contracts").
CHARGES AND DEDUCTIONS. The following fee table and examples are designed
to assist Contract Owners in understanding the various expenses that
Contract Owners bear directly and indirectly. The table reflects expenses of the
Variable Account and the underlying Portfolios. The items listed under
"Contract Owner Transaction Expenses" and "Annual Expenses of Variable Account"
are described in this Prospectus (see "Contract Charges"). The items listed
under "Annual Fund Expenses" are described in detail in the prospectuses of
the eligible Funds to which reference should be made.
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FEE TABLE
FLEXIBLE-PREMIUM SINGLE-PREMIUM
PAYMENT CONTRACT PAYMENT CONTRACT
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Contract Owner Transaction Expenses (1)
Sales Load Imposed on Purchases.........................................................None None
Deferred Sales Load (as a percentage of amount redeemed) (2)
CONTRACT YEAR
1...................................................................................8.00% 7.00%
2...................................................................................7.00% 6.00%
3...................................................................................6.00% 5.00%
4...................................................................................5.00% 4.00%
5...................................................................................4.00% 3.00%
6...................................................................................3.00% 0.00%
7...................................................................................2.00% 0.00%
8...................................................................................1.00% 0.00%
Thereafter..........................................................................0.00% 0.00%
Surrender Fees..........................................................................None None
Exchange Fee............................................................................None None
Annual Contract Fee ....................................................................$ 20 $ 25
Annual Expenses of Variable Account (as a percentage of average account value)
Mortality and Expense Risk Fees .......................................................1.00% 1.00%
Other Expenses .........................................................................None None
Total Annual Expenses of Variable Account (3) ..............................................1.00% 1.00%
================================================================================================================================
</TABLE>
(1) Premium taxes are not shown. Any premium tax due may be deducted from
Purchase Payments or from Individual Account values at the annuity
commencement date or at such other time based on the sole discretion of
the Company. The current range of premium taxes in jurisdictions in which
the Contracts are made available is from 0 percent to 3.5 percent.
(2) Ten percent of the total accumulation of a flexible installment purchase
payment contract may be redeemed without payment of a deferred sales load
but no more than one redemption (withdrawal) may be made in any calendar
year. Ten percent of the stipulated payment of a single payment contract
may be withdrawn without payment of a deferred sales load each year
beginning with the second contract year (see "Withdrawal Charges").
(3) Great American Reserve has guaranteed the total of the investment
management fees charged against Conseco Series Trust's Common Stock,
Corporate Bond and Money Market Portfolios whose shares are purchased by
the Variable Account, plus the mortality and expense risk imposed upon the
assets of the corresponding Sub-accounts of the Variable Account will not
exceed an amount that is equal to the total amount of the same charges that
would have been imposed under the Contracts had the Combination not
occurred (see "Expense Guarantee Agreement").
ANNUAL FUND EXPENSES (1)
(as a percentage of the average daily net assets of a Portfolio)
INVESTMENT PORTFOLIO EXPENSES
(as a percentage of the average daily net assets of an investment portfolio)
<TABLE>
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TOTAL ANNUAL
OTHER EXPENSES PORTFOLIO
(AFTER EXPENSE EXPENSES
REIMBURSEMENT (AFTER EXPENSE
MANAGEMENT 12b-1 FOR CERTAIN REIMBURSEMENT FOR
FEES FEES PORTFOLIOS) CERTAIN PORTFOLIOS)
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CONSECO SERIES TRUST (1)
Asset Allocation Portfolio (2) ............................. 0.55% -- 0.20% 0.75%
Common Stock Portfolio (2) ................................. 0.60% -- 0.20% 0.80%
Corporate Bond Portfolio ................................... 0.50% -- 0.20% 0.70%
Government Securities Portfolio ............................ 0.50% -- 0.20% 0.70%
Money Market Portfolio (2) ................................. 0.25% -- 0.20% 0.45%
THE ALGER AMERICAN FUND
Alger American Growth Portfolio ............................ 0.75% -- 0.04% 0.79%
Alger American Leveraged AllCap Portfolio (3) .............. 0.85% -- 0.15% 1.00%
Alger American MidCap Growth Portfolio ..................... 0.80% -- 0.04% 0.84%
Alger American Small Capitalization Portfolio .............. 0.85% -- 0.04% 0.89%
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC ..................
VP International ........................................... 1.50% -- 0.0% 1.50%
VP Value ................................................... 1.00% -- 0.0% 1.00%
VP Income & Growth ......................................... 0.70% -- 0.0% 0.70%
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT--100 Fund (4) ................................... 0.00% -- 1.00% 1.00%
Berger IPT--Growth and Income Fund (4) ..................... 0.00% -- 1.00% 1.00%
Berger IPT--Small Company Growth Fund (4) .................. 0.00% -- 1.15% 1.15%
Berger/BIAM IPT--International Fund (4) .................... 0.00% -- 1.20% 1.20%
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. 0.75% -- 0.07% 0.82%
DREYFUS STOCK INDEX FUND ............................... 0.25% -- 0.03% 0.28%
DREYFUS VARIABLE INVESTMENT FUND
Disciplined Stock Portfolio............................... 0.75% 0.27% 1.02%
International Value Portfolio............................... 1.00% 0.42% 1.42%
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II (5) ..................... 0.51% -- 0.29% 0.80%
Federated International Equity Fund II (5) ................. 0.02% -- 1.21% 1.23%
Federated Utility Fund II (5) .............................. 0.48% -- 0.37% 0.85%
INVESCO VARIABLE INVESTMENT FUND
INVESCO VIF - High Yield Portfolio (6) ..................... .60% -- .27% .87%
INVESCO VIF - Industrial Income Portfolio (6) .............. .75% -- .20% .95%
JANUS ASPEN SERIES
Aggressive Growth Portfolio (7) ........................... 0.73% -- 0.03% 0.76%
Growth Portfolio (7) ...................................... 0.65% -- 0.05% 0.70%
Worldwide Growth Portfolio (7) ............................. 0.66% -- 0.08% 0.74%
LAZARD RETIREMENT SERIES, INC ..............................
Lazard Retirement Equity Portfolio (8) .................... 0.75% 0.25% 0.50% 1.50%
Lazard Retirement Small Cap Portfolio (8) .................. 0.75% 0.25% 0.50% 1.50%
LORD ABBETT SERIES FUND, INC ...............................
Growth and Income Portfolio (9) ........................... 0.50% 0.15% 0.02% 0.67%
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio ................................ 0.70% -- 0.88% 1.58%
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST (10)
Limited Maturity Bond Portfolio ............................ 0.65% -- 0.12% 0.77%
Partners Portfolio ......................................... 0.80% -- 0.06% 0.86%
STRONG OPPORTUNITY FUND II, INC.
Opportunity Fund II ........................................ 1.00% -- 0.15% 1.15%
STRONG VARIABLE INSURANCE FUNDS, INC .......................
Growth Fund II (11) ........................................ 1.00% -- 0.20% 1.20%
VAN ECK WORLDWIDE INSURANCE TRUST (12)
Worldwide Bond Fund ........................................ 1.00% -- 0.12% 1.12%
Worldwide Emerging Markets Fund ............................ 1.00% -- (-.20)% 0.80%
Worldwide Hard Assets Fund ................................. 1.00% -- 0.17% 1.17%
Worldwide Real Estate Fund ................................. 0.00% -- 1.00% 1.00%
</TABLE>
(1) Conseco Capital Management, Inc., the investment adviser of Conseco
Series Trust, has voluntarily agreed to reimburse all expenses, including
management fees, in excess of the following percentage of the average annual net
assets of each listed Portfolio, as long as such reimbursement would not result
in a Portfolio's inability to qualify as a regulated investment company under
the Code: 0.75% for the Asset Allocation Portfolio; 0.80% for the Common Stock
Portfolio; 0.70% for the Corporate Bond Portfolio and Government Securities
Portfolio; and 0.45% for the Money Market Portfolio. The total percentages in
the above table is after reimbursement. In the absence of expense reimbursement,
the total fees and expenses in 1997 would have totaled: 0.84% for the Asset
Allocation Portfolio; 0.80% for the Common Stock Portfolio; 0.77% for the
Corporate Bond Portfolio; 0.92% for the Government Securities Portfolio; and
0.52% for the Money Market Portfolio.
(2) Conseco Capital Management, Inc., since January 1, 1993, has
voluntarily waived its management fees in excess of the annual rates set forth
above. Absent such fee waivers, the management fees would be: .65% for the Asset
Allocation Portfolio; .65% for the Common Stock Portfolio; and .50% for the
Money Market Portfolio.
(3) The Alger American Leveraged AllCap Portfolio's "Other Expenses"
includes .04% of interest expense.
(4) The Funds' investment advisers have voluntarily agreed to waive their
advisory fee and have voluntarily reimbursed the Funds for additional expenses
to the extent that normal operating expenses in any fiscal year, including the
investment advisory fee but excluding brokerage commissions, interest, taxes and
extraordinary expenses, of each of the Berger IPT--100 Fund and the Berger
IPT-- Growth and Income Fund exceed 1.00%, and the normal operating expenses
in any fiscal year of the Berger IPT--Small Company Growth Fund exceed
1.15%, and the normal operating expenses of the Berger/BIAM IPT -
International Fund exceed 1.20% of the respective Fund's average daily net
assets. Absent the voluntary waiver and reimbursement, the Management Fee for
the Berger IPT--100 Fund, Berger IPT--Growth and Income Fund, the Berger
IPT--Small Company Growth Fund and the Berger/BIAM IPT - International Fund
would have been .75%, .75%, .90%, and .90% respectively, and their Total
Annual Portfolio Expenses would have been 9.18%, 9.62%, 5.81% and 3.83%,
respectively.
(5) In the absence of a voluntary waiver by Federated Advisers, the Funds'
investment adviser, the Management Fee and Total Annual Portfolio Expenses would
have been 0.60% and 0.89%, respectively, for High Income Bond Fund II and
0.75% and 1.12%, respectively, for Utility Fund II. Absent a voluntary waiver of
the management fee and the voluntary reimbursement of certain other operating
expenses by Federated Advisers, the Management Fee and Total Annual Portfolio
Expenses for International Equity Fund II would have been 1.00% and 2.21%,
respectively.
(6) Certain expenses are being absorbed voluntarily by the investment
adviser and sub-adviser. Total expenses (after expenses were absorbed but before
any expense offset arrangement) of the INVESCO VIF - High Yield Portfolio and
INVESCO VIF - Industrial Income Portfolio for the year ended December 31, 1997
amounted to 0.83% and 0.91%, respectively, of each Portfolio's average net
assets. In the absence of such voluntary expense limitation, the total operating
expenses of the INVESCO VIF - High Yield Portfolio and INVESCO VIF - Industrial
Income Portfolio for the fiscal period ended December 31, 1997 would have been
0.94% and 0.97%, respectively, of each Portfolio's average net assets.
It should be noted that the Portfolio's actual expenses were lower than the
figures shown because the Portfolio's custodian fees and pricing expenses were
reduced under expense offset arrangements. However, as a result of an SEC
requirement for mutual funds to state their total operating expenses without
crediting any such expense offset arrangements, the figures shown above do not
reflect these reductions.
(7) The expense figures shown are net of certain fee waivers or reductions
from Janus Capital Corporation, the investment adviser of the Janus Aspen
Series. Without such waivers or reductions, the total fees and expenses in 1997
would have totaled: 0.78% for Aggressive Growth; 0.78% for Growth; and 0.81% for
Worldwide Growth.
(8) Lazard Asset Management, the Fund's investment adviser, has
voluntarily agreed to reimburse all expenses, including management fees, in
excess of 1.50% of the average annual net assets of the Portfolio.
(9) The Growth and Income Portfolio of Lord Abbett Series Fund, Inc. has
a 12b-1 plan which provides for payments to Lord, Abbett & Co. for remittance to
a life insurance company for certain distribution expenses (see the Fund
Prospectus). The 12b-1 plan provides that such remittances, in the aggregate,
will not exceed .15%, on an annual basis, of the daily net asset value of shares
of the Growth and Income Portfolio. For the year ending December 31, 1998, the
12b-1 fees are estimated to be .15%. The examples below for this Portfolio
reflect the estimated 12b-1 fees.
(10) Neuberger & Berman Advisers Management Trust is divided into
portfolios (Portfolios), each of which invests all of its net investable assets
in a corresponding series of Advisers Managers Trust. The figures reported under
"Management Fees" include the total of the administration fees paid by the
Portfolio and the management fees paid by its corresponding series. Similarly,
"Other Expenses" includes all other expenses of the Portfolio and its
corresponding series.
(11) Strong Capital Management, Inc., the investment adviser of the Strong
Growth Fund II, has voluntarily agreed to cap the Fund's total operating
expenses at 1.20%. The Adviser has no current intention to, but may in the
future, discontinue or modify any waiver of fees or absorption of expenses at
its discretion with appropriate notification to its shareholders.
(12) All figures are annualized. Expenses of the Worldwide Real Estate
Fund, which commenced operation in June 1997, are being assumed by the Fund's
investment adviser. Without such assumption, Worldwide Real Estate Fund's
Management Fee would be 1.00%, Other Expenses would be 3.88% and Total Expenses
would be 4.88%. Other Expenses of Worldwide Real Estate Fund are an estimate
which assumes $80 million in average daily net assets, and may be greater or
less than those shown. Prior to April 30, 1997, Worldwide Hard Assets Fund was
named Gold and Natural Resources Fund. Other Expenses of the Worldwide Hard
Assets Fund are net of soft dollar credits. Without such credits, Other
Expenses would have been 0.18% and Total Annual Portfolio Expenses would have
been 1.18%. Other Expenses of Worldwide Emerging Markets Fund are net of the
reduction of the Fund's operating fees in connection with a fee arrangement,
based on cash balances left on deposit with the custodian, and net of the
waiver or assumption by the Fund's investment adviser of certain fees and
expenses. Without such fee arrangement and, to a lesser extent, the waiver/
assumption, Other Expenses would have been 0.34% and Total Expenses would
have been 1.34%. The Fund's investment adviser is no longer waiving or
assuming fees and expenses.
Great American Reserve has guaranteed certain expenses not to exceed a
total of 1.44 percent on an annual basis of the average annual net assets of
the Conseco Series Trust Common Stock, Corporate Bond and Money Market
Portfolios that is equal to the same charges that would have been imposed
under the Contracts had the Combination not occurred (see "Expense
Guarantee Agreement").
FLEXIBLE PREMIUM PAYMENT CONTRACT
EXAMPLE 1-Assuming surrender at the end of the periods shown(1): You would pay
the following expenses on a $1,000 investment, assuming 5 percent annual return
on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
====================================================================================================================================
<S> <C> <C> <C> <C>
CONSECO SERIES TRUST
Asset Allocation Portfolio............................................. $98 $116 $136 $208
Common Stock Portfolio................................................. 99 117 139 214
Corporate Bond Portfolio............................................... 98 114 133 203
Government Securities Portfolio........................................ 98 114 133 203
Money Market Portfolio................................................. 95 107 120 176
THE ALGER AMERICAN FUND
Alger American Growth Portfolio........................................ 98 117 138 212
Alger American Leveraged AllCap Portfolio.............................. 101 123 149 234
Alger American MidCap Growth Portfolio................................. 99 118 141 218
Alger American Small Capitalization Portfolio.......................... 99 120 143 223
American Century Variable Portfolios, Inc.
Income and Growth ..................................................... 98 114
International.......................................................... 106 138 174 285
Value ................................................................. 101 123 149 234
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT - 100 Fund.................................................. 101 123 149 234
Berger IPT - Growth and Income Fund.................................... 101 123 149 234
Berger IPT - Small Company Growth Fund................................. 102 128 156 250
Berger/BIAM IPT - International Fund................................... 103 129 159 255
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. ........................ 99 118 140 216
DREYFUS STOCK INDEX FUND................................................... 93 101 112 157
DREYFUS VARIABLE INVESTMENT FUND
Disciplined Stock Portfolio............................................ 101 124
International Value Portfolio.......................................... 105 136
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II..................................... 99 117 139 214
Federated International Equity Fund II................................. 103 130 160 258
Federated Utility Fund II.............................................. 99 119 141 219
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - High Yield Portfolio..................................... 99 119
INVESCO VIF - Industrial Income Portfolio.............................. 100 122
JANUS ASPEN SERIES
Aggressive Growth Portfolio............................................ 98 116 136 209
Growth Portfolio....................................................... 98 114 133 203
Worldwide Growth Portfolio............................................. 99 115 135 207
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio..................................... 106 138
Lazard Retirement Small Cap Portfolio.................................. 106 138
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio............................................ 97 113
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio............................................ 106 141
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio........................................ 98 116 137 210
Partners Portfolio..................................................... 99 119 142 220
STRONG OPPORTUNITY FUND II, INC.
Opportunity Fund II.................................................... 102 128 156 250
STRONG VARIABLE INSURANCE FUNDS, INC.
Growth Fund II......................................................... 103 129 159 255
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Bond Fund.................................................... 102 127 155 247
Worldwide Emerging Markets Fund........................................ 99 117 139 214
Worldwide Hard Assets Fund............................................. 102 128 157 252
Worldwide Real Estate Fund............................................. 101 123
====================================================================================================================================
</TABLE>
FLEXIBLE PREMIUM PAYMENT CONTRACT - CONT.
EXAMPLE 2 - Assuming annuitization at the end of the periods shown(1): You would
pay the following expenses on a $1,000 investment, assuming 5 percent annual
return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
====================================================================================================================================
<S> <C> <C> <C> <C>
CONSECO SERIES TRUST
Asset Allocation Portfolio............................................. $ 98 $116 $ 96 $208
Common Stock Portfolio................................................. 99 117 99 214
Corporate Bond Portfolio............................................... 98 114 93 203
Government Securities Portfolio........................................ 98 114 93 203
Money Market Portfolio................................................. 95 107 80 176
THE ALGER AMERICAN FUND
Alger American Growth Portfolio........................................ 98 117 98 212
Alger American Leveraged AllCap Portfolio.............................. 101 123 109 234
Alger American MidCap Growth Portfolio................................. 99 118 101 218
Alger American Small Capitalization Portfolio.......................... 99 120 103 223
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
Income and Growth ..................................................... 98 114
International ......................................................... 106 138 134 285
Value ................................................................. 101 123 109 234
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT - 100 Fund.................................................. 101 123 109 234
Berger IPT - Growth and Income Fund.................................... 101 123 109 234
Berger IPT - Small Company Growth Fund................................. 102 128 116 250
Berger/BIAM IPT - International Fund................................... 103 129 119 255
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. ........................ 99 118 100 216
DREYFUS STOCK INDEX FUND................................................... 93 101 72 157
DREYFUS VARIABLE INVESTMENT FUND
Disciplined Stock Portfolio............................................ 101 124
International Value Portfolio.......................................... 105 136
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II..................................... 99 117 99 214
Federated International Equity Fund II................................. 103 130 120 258
Federated Utility Fund II.............................................. 99 119 101 219
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - High Yield Portfolio..................................... 99 119
INVESCO VIF - Industrial Income Portfolio.............................. 100 122
JANUS ASPEN SERIES
Aggressive Growth Portfolio............................................ 98 116 96 209
Growth Portfolio....................................................... 98 114 93 203
Worldwide Growth Portfolio............................................. 98 115 95 207
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio..................................... 106 138
Lazard Retirement Small Cap Portfolio.................................. 106 138
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio............................................ 97 113
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio............................................ 106 141
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio........................................ 98 116 97 210
Partners Portfolio..................................................... 99 119 102 220
STRONG OPPORTUNITY FUND II, INC.
Opportunity Fund II..................................................... 102 128 116 250
STRONG VARIABLE INSURANCE FUNDS, INC.
Growth Fund II......................................................... 103 129 119 255
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Bond Fund.................................................... 102 127 115 247
Worldwide Emerging Markets Fund........................................ 99 117 99 214
Worldwide Hard Assets Fund............................................. 102 128 117 252
Worldwide Real Estate Fund............................................. 101 123
====================================================================================================================================
</TABLE>
FLEXIBLE PREMIUM PAYMENT CONTRACT - CONT.
EXAMPLE 3 - Assuming the Contract stays in force through the periods shown(1):
You would pay the following expenses on a $1,000 investment, assuming 5 percent
annual return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
====================================================================================================================================
<S> <C> <C> <C> <C>
CONSECO SERIES TRUST
Asset Allocation Portfolio............................................. $18 $56 $ 96 $208
Common Stock Portfolio................................................. 19 57 99 214
Corporate Bond Portfolio............................................... 18 54 93 203
Government Securities Portfolio........................................ 18 54 93 203
Money Market Portfolio................................................. 15 47 80 176
THE ALGER AMERICAN FUND
Alger American Growth Portfolio........................................ 18 57 98 212
Alger American Leveraged AllCap Portfolio.............................. 21 63 109 234
Alger American MidCap Growth Portfolio................................. 19 58 101 218
Alger American Small Capitalization Portfolio.......................... 19 60 103 223
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
Income and Growth ..................................................... 18 54
International ......................................................... 26 78 134 285
Value ................................................................. 21 63 109 234
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT - 100 Fund.................................................. 21 63 109 234
Berger IPT - Growth and Income Fund.................................... 21 63 109 234
Berger IPT - Small Company Growth Fund................................. 22 68 116 250
Berger/BIAM IPT - International Fund................................... 23 69 119 255
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. ........................ 19 58 100 216
DREYFUS STOCK INDEX FUND................................................... 13 41 72 157
DREYFUS VARIABLE INVESTMENT FUND
Disciplined Stock Portfolio............................................ 21 64
International Value Portfolio.......................................... 25 76
FEDERATED INSURANCE SERIES
High Income Bond Fund II............................................... 19 57 99 214
Federated International Equity Fund II................................. 23 70 120 258
Federated Utility Fund II.............................................. 19 59 101 219
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - High Yield Portfolio..................................... 19 59
INVESCO VIF - Industrial Income Portfolio.............................. 20 62
JANUS ASPEN SERIES
Aggressive Growth Portfolio............................................ 18 56 96 209
Growth Portfolio....................................................... 18 54 93 203
Worldwide Growth Portfolio............................................. 18 55 95 207
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio..................................... 26 78
Lazard Retirement Small Cap Portfolio.................................. 26 78
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio............................................ 17 53
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio............................................ 26 81
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio........................................ 18 56 97 210
Partners Portfolio..................................................... 19 59 102 220
STRONG OPPORTUNITY FUND II, INC.
Opportunity Fund, II................................................... 22 68 116 250
STRONG VARIABLE INSURANCE FUNDS, INC.
Growth Fund II......................................................... 23 69 119 255
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Bond Fund.................................................... 22 67 115 247
Worldwide Emerging Markets Fund........................................ 19 57 99 214
Worldwide Hard Assets Fund............................................. 22 68 117 252
Worldwide Real Estate Fund............................................. 21 63
====================================================================================================================================
</TABLE>
PLEASE REMEMBER THAT THE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF
PAST OR FUTURE EXPENSES AND THAT ACTUAL EXPENSES MAY BE GREATER OR LESS THAN
THOSE SHOWN. SIMILARLY, THE 5 PERCENT ANNUAL RATE OF RETURN IS NOT AN ESTIMATE
OR GUARANTEE OF FUTURE INVESTMENT PERFORMANCE.
(1) This Contract is designed for retirement planning. The tax penalties
imposed on early withdrawals and surrenders prior to the Annuity Period
may not be consistent with the long-term purposes of the Contract and the
applicable tax laws.
The above table reflects estimates of expenses of the Variable Account and
the Funds. The standard table and examples assume the highest deductions
possible under a contract, whether or not such deductions actually would be
made under a contract. Annual contract charges have been approximated as
a .05% point annual asset charge based on the experience of the flexible
premium payment contracts.
SINGLE PREMIUM PAYMENT CONTRACT
Example 1 - Assuming surrender at the end of the periods shown(1): You would pay
the following expenses on a $1,000 investment, assuming 5 percent annual return
on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
====================================================================================================================================
<S> <C> <C> <C> <C>
CONSECO SERIES TRUST
Asset Allocation Portfolio............................................. $88 $106 $127 $210
Common Stock Portfolio................................................. 89 108 130 216
Corporate Bond Portfolio............................................... 88 105 124 205
Government Securities Portfolio........................................ 88 105 124 205
Money Market Portfolio................................................. 85 97 111 178
THE ALGER AMERICAN FUND
Alger American Growth Portfolio........................................ 89 108 129 215
Alger American Leveraged AllCap Portfolio.............................. 91 117 144 246
Alger American MidCap Growth Portfolio................................. 89 109 132 220
Alger American Small Capitalization Portfolio.......................... 90 110 134 224
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
International ......................................................... 96 129 165 287
Value ................................................................. 91 114 140 237
Income and Growth ..................................................... 88 105 124 205
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT - 100 Fund.................................................. 91 114 140 237
Berger IPT - Growth and Income Fund.................................... 91 114 140 237
Berger IPT - Small Company Growth Fund................................. 92 118 147 252
Berger/BIAM IPT - International Fund................................... 93 120 150 257
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. ........................ 89 114 139 236
DREYFUS STOCK INDEX FUND................................................... 84 93 104 162
DREYFUS VARIABLE INVESTMENT FUND
International Value Portfolio.......................................... 95 127 161 279
Disciplined Stock Portfolio............................................ 91 115 141 239
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II..................................... 89 108 130 216
Federated International Equity Fund II................................. 93 121 152 262
Federated Utility Fund II.............................................. 89 109 132 221
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - High Yield Portfolio..................................... 89 110 133 223
INVESCO VIF - Industrial Income Portfolio.............................. 90 112 137 231
JANUS ASPEN SERIES
Aggressive Growth Portfolio............................................ 88 107 127 211
Growth Portfolio....................................................... 88 105 124 205
Worldwide Growth Portfolio............................................. 88 106 126 209
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio..................................... 96 129 165 287
Lazard Retirement Small Cap Portfolio.................................. 96 129 165 287
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio............................................ 87 104 123 202
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio............................................ 97 131 169 295
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio........................................ 88 107 128 212
Partners Portfolio..................................................... 89 110 133 222
STRONG OPPORTUNITY FUND II................................................. 92 118 147 252
STRONG VARIABLE INSURANCE FUNDS, INC.
Growth Fund II......................................................... 93 120 150 257
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Hard Assets Fund............................................. 92 119 148 254
Worldwide Bond Fund.................................................... 92 118 146 249
Worldwide Emerging Markets Fund........................................ 82 108 130 216
Worldwide Real Estate Fund............................................. 91 114 140 237
====================================================================================================================================
</TABLE>
SINGLE PREMIUM PAYMENT CONTRACT - CONT.
EXAMPLE 2 - Assuming annuitization at the end of the periods shown(1): You would
pay the following expenses on a $1,000 investment, assuming 5 percent annual
return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
====================================================================================================================================
<S> <C> <C> <C> <C>
CONSECO SERIES TRUST
Asset Allocation Portfolio............................................. $ 88 $106 $ 97 $210
Common Stock Portfolio................................................. 89 108 100 216
Corporate Bond Portfolio............................................... 88 105 94 205
Government Securities Portfolio........................................ 88 105 94 205
Money Market Portfolio................................................. 85 97 81 178
THE ALGER AMERICAN FUND
Alger American Growth Portfolio........................................ 89 108 99 215
Alger American Leveraged AllCap Portfolio.............................. 91 114 110 237
Alger American MidCap Growth Portfolio................................. 89 109 102 220
Alger American Small Capitalization Portfolio.......................... 90 111 104 225
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
International ......................................................... 96 129 135 287
Value ................................................................. 91 114 110 237
Income and Growth ..................................................... 88 105 94 205
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT - 100 Fund.................................................. 91 114 110 237
Berger IPT - Growth and Income Fund.................................... 91 114 110 237
Berger IPT - Small Company Growth Fund................................. 92 118 117 252
Berger/BIAM IPT - International Fund................................... 93 120 120 257
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. ........................ 89 108 101 218
DREYFUS STOCK INDEX FUND................................................... 84 92 73 159
DREYFUS VARIABLE INVESTMENT FUND
International Value Portfolio.......................................... 95 127 131 279
Disciplined Stock Portfolio............................................ 91 115 111 239
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II..................................... 89 108 100 216
Federated International Equity Fund II................................. 93 121 121 260
Federated Utility Fund II.............................................. 89 109 102 221
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - High Yield Portfolio..................................... 89 110 103 223
INVESCO VIF - Industrial Income Portfolio.............................. 90 112 107 231
JANUS ASPEN SERIES 88 107 97 211
Aggressive Growth Portfolio............................................
Growth Portfolio....................................................... 88 105 94 205
Worldwide Growth Portfolio............................................. 88 106 96 209
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio..................................... 96 129 135 287
Lazard Retirement Small Cap Portfolio.................................. 96 129 135 287
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio............................................ 87 104 93 202
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio............................................ 97 131 139 295
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio........................................ 88 107 98 212
Partners Portfolio..................................................... 89 110 103 222
STRONG OPPORTUNITY FUND II................................................. 92 118 117 252
STRONG VARIABLE INSURANCE FUNDS, INC.
Growth Fund II......................................................... 93 120 120 257
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Hard Assets Fund............................................. 91 119 118 254
Worldwide Bond Fund.................................................... 92 118 118 249
Worldwide Emerging Markets Fund........................................ 89 108 100 216
Worldwide Real Estate Fund............................................. 91 114 110 237
====================================================================================================================================
</TABLE>
SINGLE PREMIUM PAYMENT CONTRACT - CONT.
EXAMPLE 3 - Assuming the Contract stays in force through the periods shown(1):
You would pay the following expenses on a $1,000 investment, assuming 5 percent
annual return on assets:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
====================================================================================================================================
<S> <C> <C> <C> <C>
CONSECO SERIES TRUST
Asset Allocation Portfolio............................................. $18 $56 $ 97 $210
Common Stock Portfolio................................................. 19 58 100 216
Corporate Bond Portfolio............................................... 18 55 94 205
Government Securities Portfolio........................................ 18 55 94 205
Money Market Portfolio................................................. 15 47 81 178
THE ALGER AMERICAN FUND
Alger American Growth Portfolio........................................ 19 58 99 215
Alger American Leveraged AllCap Portfolio.............................. 21 64 110 237
Alger American MidCap Growth Portfolio................................. 19 59 102 220
Alger American Small Capitalization Portfolio.......................... 20 61 104 225
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
International ......................................................... 26 79 135 287
Value ................................................................. 21 64 110 237
Income and Growth ..................................................... 18 55 94 205
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT - 100 Fund.................................................. 21 64 110 237
Berger IPT - Growth and Income Fund.................................... 21 64 110 237
Berger IPT - Small Company Growth Fund................................. 22 68 117 252
Berger/BIAM IPT - International Fund................................... 23 70 120 257
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. ........................ 19 58 101 218
DREYFUS STOCK INDEX FUND................................................... 14 42 73 159
DREYFUS VARIABLE INVESTMENT FUND
International Value Portfolio.......................................... 25 77 131 279
Disciplined Stock Portfolio............................................ 21 65 111 239
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II..................................... 19 58 100 216
Federated International Equity Fund II................................. 23 71 121 260
Federated Utility Fund II.............................................. 19 59 102 221
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - High Yield Portfolio..................................... 19 60 103 223
INVESCO VIF - Industrial Income Portfolio.............................. 20 62 107 231
JANUS ASPEN SERIES
Aggressive Growth Portfolio............................................ 18 57 97 211
Growth Portfolio....................................................... 18 55 94 205
Worldwide Growth Portfolio............................................. 18 56 96 209
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio..................................... 26 79 135 287
Lazard Retirement Small Cap Portfolio.................................. 26 79 135 287
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio............................................ 17 54 93 202
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio............................................ 27 81 139 295
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio........................................ 18 57 98 212
Partners Portfolio..................................................... 19 60 103 222
STRONG OPPORTUNITY FUND II................................................. 22 68 117 252
STRONG VARIABLE INSURANCE FUNDS, INC.
Growth Fund II......................................................... 23 70 120 257
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Hard Assets Fund............................................. 22 69 118 254
Worldwide Bond Fund.................................................... 22 68 116 249
Worldwide Emerging Markets Fund........................................ 19 58 100 216
Worldwide Real Estate Fund............................................. 21 64 110 237
====================================================================================================================================
</TABLE>
PLEASE REMEMBER THAT THE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF
PAST OR FUTURE EXPENSES AND THAT ACTUAL EXPENSES MAY BE GREATER OR LESS THAN
THOSE SHOWN. SIMILARLY, THE 5 PERCENT ANNUAL RATE OF RETURN IS NOT AN ESTIMATE
OR GUARANTEE OF FUTURE INVESTMENT PERFORMANCE.
(1) This Contract is designed for retirement planning. Surrenders prior to the
Annuity Period are not consistent with the long-term purposes of the
Contract and the applicable tax laws.
The above table reflects estimates of expenses of the Variable Account and
the Funds. The standard table and examples assume the highest deductions
possible under a contract, whether or not such deductions actually would be
made under a contract. Annual contract charges have been approximated as
a 5 basis point annual asset charge based on the experience of the flexible
premium payment contracts.
CONDENSED FINANCIAL INFORMATION
The table below provides per unit information about the financial history
of the Sub-accounts for the periods indicated. No per-unit information is
provided with respect to certain Sub-accounts because such Sub-accounts were not
available under the Contracts as of December 31, 1997.
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CONSECO SERIES TRUST
ASSET ALLOCATION (C)
Accumulation unit value at
beginning of period ....$1.740 $1.370 1.052 1.068 $1.000 N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$2.030 $1.740 $1.370 $1.052 $1.068 N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....16.68% 27.01% 30.19% (1.51)% 6.84% N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period........6,907,154 5,801,102 5,007,682 3,888,125 2,257,426 N/A N/A N/A N/A N/A
COMMON STOCK - QUALIFIED (a)
Accumulation unit value at
beginning of period....$17.933 $12.448 $9.191 $9.069 $8.492 $8.292 $5.827 $6.313 $4.804 $4.491
Accumulation unit value at
end of period..........$21.148 $17.933 $12.448 $9.191 $9.069 $8.492 $8.292 $5.827 $6.313 $4.804
Percentage change in accu-
mulation unit value.....17.93% 44.06% 35.44% 1.35% 6.79% 2.41% 42.30% (7.70)% 31.41% 6.97%
Number of accumulation
units outstanding at
end of period........8,714,598 8,464,009 7,950,068 7,356,167 6,310,119 5,499,342 4,667,263 4,275,235 4,188,009 4,384,189
COMMON STOCK - NON-QUALIFIED (a)
Accumulation unit value at
beginning of period......$14.195 $9.854 $7.275 $7.179 $6.722 $6.564 $4.612 $4.997 $3.803 $3.555
Accumulation unit value at
end of period......... ..$16.740 $14.195 $9.854 $7.275 $7.179 $6.722 $6.564 $4.612 $4.997 $3.803
Percentage change in accu-
mulation unit value......17.93% 44.06% 35.44% 1.35% 6.79% 2.41% 42.30% (7.70)% 31.41% 6.97%
Number of accumulation
units outstanding at
end of period...........274,648 283,828 286,775 271,457 252,573 191,299 152,332 125,393 105,484 128,262
================================================================================================================================
</TABLE>
CONDENSED FINANCIAL INFORMATION--CONT.
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CONSECO SERIES TRUST - CONT.
CORPORATE BOND - QUALIFIED (b)
Accumulation unit value at
beginning of period......$4.990 $4.790 $4.080 $4.224 $3.768 $3.466 $2.899 $2.743 $2.405 $2.245
Accumulation unit value at
end of period............$5.445 $4.990 $4.790 $4.080 $4.224 $3.768 $3.466 $2.899 $2.743 $2.405
Percentage change in accu-
mulation unit value.......9.11% 4.19% 17.38% (3.41)% 12.12% 8.70% 19.57% 5.66% 14.09% 7.11%
Number of accumulation
units outstanding at
end of period.........2,784,065 2,973,412 3,072,607 2,961,739 3,003,770 2,490,084 2,145,672 1,998,622 2,083,583 2,092,143
CORPORATE BOND - NON-QUALIFIED (b)
Accumulation unit value at
beginning of period.....$4.795 $4.602 $3.921 $4.059 $3.620 $3.330 $2.785 $2.636 $2.310 $2.157
Accumulation unit value at
end of period...........$5,232 $4.795 $4.602 $3.921 $4.059 $3.620 $3.330 $2.785 $2.636 $2.310
Percentage change in accu-
mulation unit value......9.11% 4.19% 17.38% (3.41)% 12.12% 8.70% 19.57% 5.66% 14.09% 7.11%
Number of accumulation
units outstanding at
end of period..........125,557 136,642 179,684 197,847 185,569 123,618 98,273 118,597 140,928 99,057
GOVERNMENT SECURITIES (c)
Accumulation unit value at
beginning of period.....$1.176 $1.156 $0.995 $1.034 $1.000 N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.261 $1.176 $1.156 $0.995 $1.034 N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value......7.19% 1.72% 16.18% (3.79)% 3.42% N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period..........485,631 365,164 422,359 335,451 535,607 N/A N/A N/A N/A N/A
MONEY MARKET (b)
Accumulation unit value at
beginning of period.....$2.598 $2.496 $2.387 $2.321 $2.280 $2.224 $2.120 $1.978 $1.830 $1.726
Accumulation unit value at
end of period...........$2.708 $2.598 $2.496 $2.387 $2.321 $2.280 $2.224 $2.120 $1.978 $1.830
Percentage change in accu-
mulation unit value......4.22% 4.10% 4.57% 2.85% 1.79% 2.52% 4.89% 7.22% 8.08% 6.01%
Number of accumulation
units outstanding at
end of period........1,624,326 1,849,618 1,538,629 1,619,841 1,465,429 1,790,486 1,762,019 1,798,156 1,869,049 1,705,508
====================================================================================================================================
</TABLE>
(Continued)
CONDENSED FINANCIAL INFORMATION--CONT.
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
THE ALGER AMERICAN FUND:
ALGER AMERICAN LEVERAGED ALLCAP (d)
Accumulation unit value at
beginning of period.....$1.565 $1.411 $1.000 N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.855 $1.565 $1.411 N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....18.49% 10.92% 41.12% N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period..........388,810 332,180 48,284 N/A N/A N/A N/A N/A N/A N/A
ALGER AMERICAN SMALL CAPITALIZATION (d)
Accumulation unit value at
beginning of period.....$1.260 $1.222 $1.000 N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.390 $1.260 $1.222 N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....10.28% .3.14% 22.18% N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period........1,616,358 1,294,236 421,326 N/A N/A N/A N/A N/A N/A N/A
ALGER AMERICAN GROWTH (e)
Accumulation unit value at
beginning of period....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period..........$1.204 N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value....20.42% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period........120,648 N/A N/A N/A N/A N/A N/A N/A N/A N/A
===============================================================================================================================
ALGER AMERICAN MIDCAP GROWTH (e)
Accumulation unit value at
beginning of period....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period..........$1.199 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value....19.91% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period.........10,680 N/A N/A N/A N/A N/A N/A N/A N/A N/A
==============================================================================================================================
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
INTERNATIONAL (e)
Accumulation unit value at
beginning of period....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period..........$1.096 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....9.59% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period.............95 N/A N/A N/A N/A N/A N/A N/A N/A N/A
==============================================================================================================================
VALUE (e)
Accumulation unit value at
beginning of period....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period..........$1.229 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value....22.93% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period.........19,126 N/A N/A N/A N/A N/A N/A N/A N/A N/A
==============================================================================================================================
BERGER INSTITUTIONAL PRODUCTS TRUST:
BERGER IPT -100 (e)
Accumulation unit value at
beginning of period....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period..........$1.136 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value....13.55% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period.........42,167 N/A N/A N/A N/A N/A N/A N/A N/A N/A
==============================================================================================================================
BERGER IPT - GROWTH AND INCOME (e)
Accumulation unit value at
beginning of period....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period..........$1.219 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value....21.87% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period.........64,326 N/A N/A N/A N/A N/A N/A N/A N/A N/A
==============================================================================================================================
BERGER IPT - SMALL COMPANY GROWTH (e)
Accumulation unit value at
beginning of period....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period..........$1.374 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value....37.38% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period..........1,949 N/A N/A N/A N/A N/A N/A N/A N/A N/A
==============================================================================================================================
BERGER/BIAM IPT - INTERNATIONAL (e)
Accumulation unit value at
beginning of period....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period..........$0.972 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value....-2.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period..........3,085 N/A N/A N/A N/A N/A N/A N/A N/A N/A
===============================================================================================================================
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. (d)
Accumulation unit value at
beginning of period.....$1.413 $1.178 $1.000 N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.796 $1.413 $1.178 N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....27.11% 20.01% 17.76% N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period..........359,437 114,173 27,728 N/A N/A N/A N/A N/A N/A N/A
===============================================================================================================================
DREYFUS STOCK INDEX FUND (d)
Accumulation unit value at
beginning of period.....$1.402 $1.160 $1.000 N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.853 $1.402 $1.160 N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....32.20% 20.79% 16.03% N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period........3,025,807 1,395,520 561,967 N/A N/A N/A N/A N/A N/A N/A
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION--CONT.
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FEDERATED INSURANCE SERIES
FEDERATED HIGH INCOME BOND II (d)
Accumulation unit value at
beginning of period.....$1.210 $1.070 $1.000 N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.364 $1.210 $1.070 N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....12.70% 13.17% 6.96% N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period..........103,898 44,124 1,178 N/A N/A N/A N/A N/A N/A N/A
FEDERATED INTERNATIONAL EQUITY II (d)
Accumulation unit value at
beginning of period.....$1.102 $1.028 $1.000 N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.201 $1.102 $1.028 N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value......8.99% 7.23% 2.80% N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period..........117,785 70,090 9,399 N/A N/A N/A N/A N/A N/A N/A
FEDERATED UTILITY II (d)
Accumulation unit value at
beginning of period.....$1.243 $1.125 $1.000 N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.558 $1.243 $1.125 N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....25.38% 10.45% 12.53% N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period..........196,753 111,929 53,189 N/A N/A N/A N/A N/A N/A N/A
====================================================================================================================================
JANUS ASPEN SERIES
AGGRESSIVE GROWTH (d)
Accumulation unit value at
beginning of period.....$1.357 $1.269 $1.000 N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.513 $1.357 $1.269 N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....11.54% 6.87% 26.93% N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period........1,145,154 881,491 398,348 N/A N/A N/A N/A N/A N/A N/A
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION--CONT.
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JANUS ASPEN SERIES - CONT.
GROWTH (d)
Accumulation unit value at
beginning of period.....$1.372 $1.170 $1.000 N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.668 $1.372 $1.170 N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....21.53% 17.27% 17.02% N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period........1,026,609 570,927 144,293 N/A N/A N/A N/A N/A N/A N/A
WORLDWIDE GROWTH (d)
Accumulation unit value at
beginning of period.....$1.551 $1.214 $1.000 N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.876 $1.551 $1.214 N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....20.94% 27.74% 21.40% N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period........4,929,502 1,845,276 230,889 N/A N/A N/A N/A N/A N/A N/A
====================================================================================================================================
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
LIMITED MATURITY BOND (e)
Accumulation unit value at
beginning of period.....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.046 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value......4.59% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period........ 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A
PARTNERS (e)
Accumulation unit value at
beginning of period.....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.243 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....24.32% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period...........60,137 N/A N/A N/A N/A N/A N/A N/A N/A N/A
STRONG OPPORTUNITY FUND II, INC.
OPPORTUNITY FUND II:
Accumulation unit value at
beginning of period.....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.233 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....23.32% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period............4,089 N/A N/A N/A N/A N/A N/A N/A N/A N/A
STRONG VARIABLE INSURANCE FUNDS, INC.:
GROWTH II (e)
Accumulation unit value at
beginning of period.....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.274 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....27.35% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period............3,989 N/A N/A N/A N/A N/A N/A N/A N/A N/A
=================================================================================================================================
VAN ECK WORLDWIDE INSURANCE TRUST
WORLDWIDE HARD ASSETS (d)
Accumulation unit value at
beginning of period.....$1.262 $1.080 $1.000 N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.228 $1.262 $1.080 N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value.....-2.66% 16.88% 7.97% N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period..........280,960 49,773 27,240 N/A N/A N/A N/A N/A N/A N/A
WORLDWIDE BOND (d)
Accumulation unit value at
beginning of period.....$1.036 $1.021 $1.000 N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$1.050 $1.036 $1.021 N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value......1.37% 1.50% 2.05% N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period...........16,578 23,735 6,030 N/A N/A N/A N/A N/A N/A N/A
WORLDWIDE EMERGING MARKETS (e)
Accumulation unit value at
beginning of period.....$1.000 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Accumulation unit value at
end of period...........$0.808 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Percentage change in accu-
mulation unit value....-19.24% N/A N/A N/A N/A N/A N/A N/A N/A N/A
Number of accumulation
units outstanding at
end of period........ 99,333 N/A N/A N/A N/A N/A N/A N/A N/A N/A
=================================================================================================================================
</TABLE>
(a) The unit value was $1.000 on the inception date of December 3, 1965.
(b) The unit value was $1.000 on the inception date of May 19, 1981.
(c) The unit value was $1.000 on the inception date of May 1, 1993.
(d) The unit value was $1.000 on the inception date of June 1, 1995.
(e) The unit value was $1.000 on the inception date of May 1, 1997.
GREAT AMERICAN RESERVE, VARIABLE
ACCOUNT, AND THE INVESTMENT OPTIONS
A. GREAT AMERICAN RESERVE
Great American Reserve, organized in 1937, is principally engaged in the
life insurance business in 49 states and the District of Columbia. Great
American Reserve is a stock company organized under the laws of the state of
Texas and an indirect wholly owned subsidiary of Conseco, Inc. ("Conseco"). The
operations of Great American Reserve are handled by Conseco. Conseco is a
publicly owned financial services holding company, the principal operations of
which are the development, marketing and administration of specialized annuity
and life insurance products. Conseco is located at 11825 N. Pennsylvania Street,
Carmel, Indiana 46032.
All inquiries regarding Individual Accounts, the Contracts, or any related
matter should be directed to Great American Reserve's Variable Annuity
Department at the address and telephone number shown on page 1 of this
Prospectus. The financial statements of Great American Reserve included in
the Statement of Additional Information should be considered only as bearing
upon the ability of Great American Reserve to meet the obligations under the
Contracts. Furthermore, neither the assets of Conseco nor those of any company
in the Conseco group of companies other than Great American Reserve support
these obligations. As of December 31, 1997, Great American Reserve had total
assets of $2.8 billion and total shareholder's equity of $.4 billion. Great
American Reserve does not guarantee the investment performance of the Variable
Account investment options.
B. VARIABLE ACCOUNT
Variable Account, originally established in 1980 by Voyager Life Insurance
Company, is registered with the SEC as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). At a combined Special Meeting
held on December 14, 1992, the Contract Owners and Participants in Variable
Account, Great American Reserve Variable Annuity Account Fund ("Annuity Fund")
and Great American Reserve Variable Annuity Account D ("Account D") approved an
Agreement and Plan of Reorganization and the reorganization (the "Combination")
of Variable Account, Annuity Fund, and Account D, contemplated thereby. On May
1, 1993, the effective date of the Combination, Variable Account, Annuity Fund
and Account D were combined and restructured into a single continuing unit
investment trust separate account investing exclusively in shares of the Conseco
Series Trust, and Variable Account became the continuing separate account. Also
on May 1, 1993, all of the Sub-account assets of Variable Account, including
those of Annuity Fund and Account D, were sold, assigned and transferred to the
Common Stock, Corporate Bond and Money Market Portfolios of the Conseco Series
Trust. In exchange for such assets, shares of the Common Stock, Corporate Bond
and Money Market Portfolios were issued to the Common Stock Sub-account,
Corporate Bond Sub- account and Money Market Sub-account of restructured
Variable Account, respectively. The respective interests of Contract Owners and
Participants immediately after the Combination were equal to their former
interests in Variable Account, Annuity Fund or Account D, as the case may be,
immediately before the Combination.
Prior to the Combination, Variable Account, Annuity Fund and Account D had
been operated by Great American Reserve as managed separate accounts investing
directly in securities. Variable Account invested primarily in debt securities,
Annuity Fund invested primarily in equity securities, and Account D invested
only in money market instruments. As a result of the Combination, Variable
Account invests in shares of the Conseco Series Trust, which, in turn, invest
directly in diversified portfolios of securities, as described in the Conseco
Series Trusts prospectus and statement of additional information. The Variable
Account also invests in shares of Funds described herein.
The Variable Account is segmented into Sub-accounts. Each Sub-account
invests in shares of one of the eligible Funds and such shares are purchased at
net asset value. The Sub-accounts and Funds may be added or withdrawn as
permitted by applicable law. The Variable Account consists of 40 Sub-accounts,
each of which invests in shares of one of the eligible Funds of the Conseco
Series Trust Asset Allocation, Common Stock, Corporate Bond, Government
Securities and Money Market Portfolios; the Alger American Fund Growth,
Leveraged AllCap, MidCap Growth and Small Capitalization Portfolios; the
American Century Variable Portfolios, Inc. International, Value and Income and
Growth Funds; the Berger Institutional Products Trust Berger IPT - 100, Berger
IPT - Growth and Income, Berger IPT - Small Company Growth and Berger/BIAM
IPT - International Funds; The Dreyfus Socially Responsible Growth Fund,
Inc.; the Dreyfus Stock Index Fund; the Dreyfus Variable Investment Fund
International Value and Disciplined Stock Portfolios; the Federated Insurance
Series High Income Bond II, International Equity II and Utility II Funds; the
INVESCO Variable Investment Funds, Inc. INVESCO VIF - High Yield and INVESCO
VIF - Industrial Income Portfolios; the Janus Aspen Series Aggressive Growth,
Growth and Worldwide Growth Portfolios; the Lazard Retirement Series, Inc.
Lazard Retirement Equity and Lazard Retirement Small Cap Portfolios; the Lord
Abbett Series Fund, Inc. Growth and Income Portfolio; the Mitchell Hutchins
Series Trust Growth and Income Portfolio; the Neuberger & Berman Advisers
Management Trust Limited Maturity Bond and Partners Portfolios; the Strong
Opportunity Fund II, Inc. Opportunity Fund II; the Strong Variable Insurance
Funds, Inc. Growth Fund II; and the Van Eck Worldwide Insurance Trust Worldwide
Hard Assets, Worldwide Bond, Worldwide Emerging Markets and Worldwide Real
Estate Funds. Great American Reserve reserves the right to add other
Sub-accounts, eliminate existing Sub-accounts, combine Sub-accounts or transfer
assets in one Sub-account to another Sub-account established by Great American
Reserve or an affiliate company. Great American Reserve will not eliminate
existing Sub-accounts or combine Sub-accounts without any required prior
approval of the appropriate state or federal regulatory authorities.
The assets of Variable Account are not chargeable with liabilities arising
out of any other business Great American Reserve may conduct. In addition, any
income, gains or losses realized or unrealized on assets of Variable Account are
credited to or charged against Variable Account without regard to other income,
gains or losses of Great American Reserve. Nevertheless, obligations arising
under the Contracts are obligations of Great American Reserve.
In addition to the net assets and other liabilities for variable annuity
contracts, Variable Accounts assets will include assets derived from charges
made by Great American Reserve. Great American Reserve may transfer out to its
general account any of Variable Accounts assets that are in excess of the
reserves and other liabilities relating to the Contracts.
Variable Account is regulated by the Insurance Department of Texas.
Regulation by the state, however, does not involve any supervision of Variable
Account, except to determine compliance with broad statutory criteria.
C. INVESTMENT OPTIONS
The investment objectives of the Sub-accounts available through the
Variable Account are briefly described below. Information about the Funds is
also contained in the Appendix to this Prospectus. More detailed information is
contained in the current prospectuses of the Funds which are attached to this
prospectus. YOU SHOULD READ THE PROSPECTUSES FOR THESE FUNDS CAREFULLY BEFORE
INVESTING.
CONSECO SERIES TRUST
ASSET ALLOCATION PORTFOLIO seeks a high total investment return,
consistent with the preservation of capital and prudent investment risk. The
Portfolio seeks to achieve this objective by pursuing an active asset allocation
strategy whereby investments are allocated, based upon thorough investment
research, valuation and analysis of market trends and the anticipated relative
total return available, among various asset classes including debt
securities, equity securities, and money market instruments.
COMMON STOCK PORTFOLIO seeks to provide a high total return consistent
with preservation of capital and a prudent level of risk primarily by investing
in selected equity securities having the investment characteristics of
common stocks.
CORPORATE BOND PORTFOLIO seeks to provide as high a level of income as
is consistent with preservation of capital by investing primarily in debt
securities.
GOVERNMENT SECURITIES PORTFOLIO seeks safety of capital, liquidity and
current income by investing primarily in securities issued by the U.S.
Government or an agency or instrumentality of the U.S. Government, including
mortgage-related securities.
MONEY MARKET PORTFOLIO seeks current income consistent with stability
of capital and liquidity. An investment in this Portfolio is neither insured
nor guaranteed by the U.S. Government and there can be no assurance that the
Portfolio will be able to maintain a stable net asset value of $1.00 per share.
THE ALGER AMERICAN FUND
ALGER AMERICAN GROWTH PORTFOLIO seeks long-term capital appreciation
by investing in a diversified, actively managed portfolio of equity securities,
primarily of companies with total market capitalization of $1 billion or
greater.
ALGER AMERICAN LEVERAGED ALLCAP PORTFOLIO seeks long-term capital
appreciation by investing in a diversified, actively managed portfolio of
equity securities. The Portfolio may engage in leveraging (up to 33 1/3% of
its assets) and options and futures transactions, which are deemed to be
speculative and which may cause the portfolio's net asset value to fluctuate.
ALGER AMERICAN MIDCAP GROWTH PORTFOLIO seeks long-term capital
appreciation. Except during temporary defensive periods, the Portfolio
invests at least 65% of its total assets in equity securities of companies that,
at the time of purchase of the securities, have total market capitalization
within the range of companies included in the S&P MidCap 400 Index, updated
quarterly.
ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO seeks long-term capital
appreciation. Except during temporary defensive periods, the Portfolio invests
at least 65% of its total assets in equity securities of companies that, at the
time of purchase, have total market capitalization within the range of companies
included in the Russell 2000 Growth Index or the S&P Small Cap 600 Index,
updated quarterly.
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
INCOME AND GROWTH FUND seeks dividend growth, current income and
capital appreciation. The fund will seek to achieve its investment
objective by investing in common stocks.
INTERNATIONAL FUND seeks capital growth by investing primarily in an
internationally diversified portfolio of common stocks that are considered by
management to have prospects for appreciation. The fund will invest primarily
in securities of issuers in developed markets.
VALUE FUND seeks long-term capital growth. Income is a secondary
objective. The fund will seek to achieve its objective by investing in
securities that management believes to be undervalued at the time of purchase.
BERGER INSTITUTIONAL PRODUCTS TRUST
BERGER IPT - 100 FUND seeks long-term capital appreciation by
investing primarily in common stocks of established companies which the
fund's adviser believes offer favorable growth prospects. Current income is
not an investment objective.
BERGER IPT - GROWTH AND INCOME FUND seeks capital appreciation and
secondarily a moderate level of current income by investing primarily in
common stocks and other securities, such as convertible securities or
preferred stocks, which the fund's adviser believes offer favorable growth
prospects and are expected to also provide current income.
BERGER IPT - SMALL COMPANY GROWTH FUND seeks capital appreciation by
investing primarily in equity securities (including common and preferred
stocks, convertible debt securities and other securities having equity
features) of small growth companies with market capitalization of less than
$1 billion at the time of initial purchase.
BERGER/BIAM IPT - INTERNATIONAL FUND seeks long-term capital
appreciation by investing primarily in common stocks of well established
companies located outside the United States. The fund intends to diversify
its holdings among several countries and to have, under normal market
conditions, at least 65% of the fund's total assets invested in the securities
of companies located in at least five countries, not including the United
States.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. seeks to provide
capital growth through equity investment in companies that, in the opinion of
the fund's management, not only meet traditional investment standards but also
show evidence that they conduct business in a manner that contributes to the
enhancement of the quality of life in America. Current income is secondary to
the primary goal.
DREYFUS STOCK INDEX FUND
DREYFUS STOCK INDEX FUND seeks to provide investment results that
correspond to the price and yield performance of publicly-traded common stocks
in the aggregate, as represented by the Standard & Poor's 500 Composite Price
Index. The Fund is neither sponsored by nor affiliated with the Standard &
Poor's Corporation.
DREYFUS VARIABLE INVESTMENT FUND
DISCIPLINED STOCK PORTFOLIO seeks to provide investment results that are
greater than the total return performance of publicly-traded common stocks
in the aggregate, as represented by the Standard & Poor's 500 Composite Stock
Price Index. The Portfolios will use quantitative statistical modeling
techniques to construct a portfolio in an attempt to achieve its investment
objective, without assuming undue risk relative to the broad stock market.
INTERNATIONAL VALUE PORTFOLIO seeks long-term capital growth by
investing primarily in a portfolio of publicly-traded equity securities of
foreign issuers which would be characterized as "value" companies according to
criteria established by the adviser to the Portfolio.
FEDERATED INSURANCE SERIES
FEDERATED HIGH INCOME BOND FUND II seeks to provide high current income
by investing at least 65 percent of its assets in lower rated fixed income
corporate debt obligations. Capital growth will be considered, but only when
consistent with the investment objective of high current income. The fixed
income securities in which the fund will primarily invest are commonly
referred to as "junk bonds."
FEDERATED INTERNATIONAL EQUITY FUND II seeks to obtain a total return on
its assets by investing at least 65% of its assets (and under normal market
conditions substantially all of its assets) in equity securities of issuers
in at least three different countries outside of the United States.
FEDERATED UTILITY FUND II seeks to provide high current income and
moderate capital appreciation by investing at least 65 percent of its assets
(under normal conditions) in equity and debt securities of utility companies.
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - HIGH YIELD PORTFOLIO seeks a high level of current income
by investing substantially all of its assets in lower rated bonds and other
debt securities and in preferred stock.
INVESCO VIF - INDUSTRIAL INCOME PORTFOLIO seeks the best possible
current income while following sound investment practices. Capital growth
potential is an additional consideration in the selection of portfolio
securities. The portfolio normally invests at least 65% of its total
assets in dividend-paying common stocks.
JANUS ASPEN SERIES
AGGRESSIVE GROWTH PORTFOLIO seeks long-term growth of capital by
investing primarily in common stocks, with an emphasis on securities
issued by medium-sized companies.
GROWTH PORTFOLIO seeks long-term growth of capital by investing
primarily in common stocks, with an emphasis on companies with larger
market capitalizations.
WORLDWIDE GROWTH PORTFOLIO seeks long-term growth of capital by
investing primarily in common stocks of foreign and domestic issuers.
LAZARD RETIREMENT SERIES, INC.
LAZARD RETIREMENT EQUITY PORTFOLIO seeks capital appreciation by investing
primarily in equity securities of companies with relatively large
capitalizations that the investment manager considers inexpensively priced
relative to the return on total capital or equity.
LAZARD RETIREMENT SMALL CAP PORTFOLIO seeks capital appreciation by
investing primarily in equity securities of companies with market
capitalizations under $1 billion that the investment manager considers
inexpensively priced relative to the return on the total capital or equity.
LORD ABBETT SERIES FUND, INC.
GROWTH AND INCOME PORTFOLIO seeks long-term growth of capital and income
without excessive fluctuation in market value. The Portfolio will invest in
securities which are selling at reasonable prices in relation to value. The
Portfolio will normally invest in common stocks (including securities
convertible into common stocks) of large, seasoned companies in sound
financial condition, which common stocks are expected to show above-average
price appreciation.
MITCHELL HUTCHINS SERIES TRUST
GROWTH AND INCOME PORTFOLIO seeks current income and capital growth.
Under normal circumstances, the Portfolios invest at least 65% of total assets
in dividend-paying equity securities (common and preferred stocks) believed by
the adviser to have the potential for rapid earnings growth.
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
LIMITED MATURITY BOND PORTFOLIO seeks the highest current income consistent
with low risk to principal and liquidity, and, secondarily, total return by
investing all of its net investable assets in another fund, AMT Limited Maturity
Bond Investments, which has investment objectives, policies, and limitations
that are identical to those of the Limited Maturity Bond Portfolio. AMT Limited
Maturity Bond Investments seeks to achieve its investment objective by investing
in short to intermediate-term debt securities, primarily of investment grade.
PARTNERS PORTFOLIO seeks capital growth by investing all of its net
investable assets in another fund, AMT Partners Investments, which has
investment objectives, policies and limitations that are identical to those
of the Partners Portfolio. AMT Partners Investments seeks to achieve its
investment objective by investing in common stocks and other equity
securities of medium to large capitalization established companies.
STRONG OPPORTUNITY FUND II, INC.
OPPORTUNITY FUND II seeks capital growth by investing primarily in
equity securities and currently emphasizes investments in medium-sized companies
which the fund's investment adviser believes are under-researched and
attractively valued. The fund will invest at least 80% of its net assets in
equity securities, including common stocks (which must constitute at least 65%
of its total assets), preferred stocks, and securities that are convertible
into common or preferred stocks, such as warrants and convertible bonds.
STRONG VARIABLE INSURANCE FUNDS, INC.
GROWTH FUND II seeks capital growth by investing primarily in equity
securities that the fund's investment adviser believes have above-average growth
prospects. Under normal market conditions, the fund will invest at least 65%
of its total assets in equity securities, including common stocks, preferred
stocks, and securities that are convertible into common or preferred stocks,
such as warrants and convertible bonds.
VAN ECK WORLDWIDE INSURANCE TRUST
WORLDWIDE BOND FUND seeks high total return through a flexible policy of
investing globally, primarily in debt securities. The Fund may emphasize
either component of total return (current income and capital appreciation).
WORLDWIDE EMERGING MARKETS FUND seeks long-term capital appreciation by
investing primarily in equity securities in emerging markets around the world.
The fund emphasizes countries that, compared to the world's major economies,
exhibit relatively low gross national product per capita as well as the
potential for rapid economic growth.
WORLDWIDE HARD ASSETS FUND seeks long-term capital appreciation by
investing globally, primarily in equity securities of "hard asset"
companies, and securities whose value is linked to the price of a "hard
asset" commodity or commodity index. "Hard Asset" companies include
companies that are directly or indirectly engaged to a significant extent
in the exploration, development, production or distribution of precious
metals; ferrous and non-ferrous metals; gas, petroleum, petrochemicals
and other hydrocarbons; forest products; real estate; and other basic non-
agricultural commodities which, historically, have been produced and
marketed profitably during periods of significant inflation. INCOME IS A
SECONDARY CONSIDERATION.
WORLDWIDE REAL ESTATE FUND seeks to maximize total return by investing
primarily in equity securities of domestic and foreign companies which are
principally engaged in the real estate industry or which own significant real
estate assets.
There is no assurance that the Funds will achieve their stated objectives.
The Funds' shares are also available to certain separate accounts funding
variable life insurance policies and variable annuity contracts offered by other
insurance company separate accounts. This is called "mixed and shared funding."
Although we do not anticipate any inherent difficulties arising from mixed and
shared funding, it is theoretically possible that, due to differences in tax
treatment or other considerations, the interests of owners of various contracts
participating in the Funds might at some time be in conflict. The Board of
Directors or Trustees of each Fund, each Fund's investment adviser, and Great
American Reserve are required to monitor events to identify any material
conflicts that arise from the use of the Funds for mixed and shared funding. For
more information about the risks of mixed funding, please refer to the relevant
Fund prospectus.
If the shares of any of the Funds should no longer be available for
investment by the Variable Account or, if in the judgment of Great American
Reserve's management, further investment of such Fund shares shall become
inappropriate in view of the purpose of the Contract, Great American Reserve may
add or substitute shares of another eligible Sub-account or of another Fund for
eligible Portfolio shares already purchased under the Contract. No
substitution of Sub-account shares may take place without prior approval of the
SEC and notice to Contract Owners or Participants, to the extent required by the
1940 Act.
Great American Reserve has also reserved the right, subject to compliance
with the law as currently applicable or subsequently changed, (a) to operate the
Variable Account in any form permitted under the 1940 Act or in any other form
permitted by law; (b) to take any action necessary to comply with or obtain and
continue any exemptions from the 1940 Act or to comply with any other applicable
law; (c) to transfer any assets in any Sub- account to another Sub-account, or
to one or more separate investment accounts, or to Great American Reserves Fixed
Account of the General Account; or to add, combine or remove Sub-accounts in the
Variable Account; and (d) to change the way Great American Reserve assesses
charges, so long as the aggregate amount is not increased beyond that currently
charged to the Variable Account and the eligible Portfolios in connection with
the Contract.
THE CONTRACTS
A. ACCUMULATION PROVISIONS
PURCHASE PAYMENTS. The single premium payment Contracts have a minimum
purchase payment of $10,000 with additional Contracts in amounts of not less
than $5,000; the usual maximum is $500,000. The flexible premium payment
contracts have a minimum initial and subsequent Purchase Payment of $10 per
month; the usual Purchase Payment maximum is $500,000. Purchase Payments in
excess thereof may be made only upon approval by Great American Reserve and will
be subject to such terms and conditions as may be required by Great American
Reserve. The amount of a Purchase Payment may be increased or decreased at any
time, and submission of a Purchase Payment different from the previous one will
automatically effect such a change.
The value of an Individual Account can be determined at any time during the
Accumulation Period by multiplying the total number of Accumulation Units in a
Sub-account attributable to such Individual Account by the then-current value of
an Accumulation Unit in such Sub-account. Because the value of the Accumulation
Units fluctuates, there is no assurance that the value of the Accumulation Units
in an Individual Account will equal or exceed the amount of Purchase Payments
made.
The initial value of an Accumulation Unit for each of the
Sub-accounts of the Variable Account on the first day that Purchase Payments are
allocated, or transfers are made, to each of such Sub-accounts will be equal to
the Accumulation Unit value of $1.00 multiplied by the "net investment factor"
for each such Sub-account. After the initial Accumulation Unit values are
established, the value of an Accumulation Unit for each of the Sub-accounts of
Variable Account for any subsequent Valuation Period will be determined by
multiplying the Accumulation Unit value for the immediately preceding Valuation
Period by the net investment factor for the current period for the Sub- account.
(see "Net Investment Factor for each Valuation Period").
A Valuation Period is the period of time from the end of one business day to
the end of the next. Accumulation Units of the Sub-accounts are valued as of the
time of closing of each business day of the New York Stock Exchange on any
business day in which an order for sale or redemption of Accumulation Units is
received and in which there is a sufficient degree of trading in the portfolio
securities to materially affect the current asset values of the Accumulation
Units.
ACCUMULATION UNITS. Each Purchase Payment is credited to the Participant's
Individual Account in the form of Accumulation Units at the close of the
Valuation Period in which the Purchase Payment is received at the Administrative
Office of Great American Reserve. The number of Accumulation Units credited is
determined by dividing the amount credited by the value of an Accumulation Unit
at the close of that Valuation Period. Accumulation Units are valued separately
for each investment option, so a Contract Owner who has elected to have amounts
in an Individual Account accumulated in more than one investment option will
have several types of Accumulation Units credited to the Individual Account.
ALLOCATION OF PURCHASE PAYMENTS AND TRANSFERS. The Contract Owner may elect
to have Purchase Payments accumulated (a) on a fully variable basis invested in
one or more of the Sub-accounts of Variable Account; (b) on a fully fixed basis
which reflects a compound interest rate promised by Great American Reserve; or
(c) in a combination of any of the investment options.
An election to change the allocation of future Purchase Payments may be made
by the Contract Owner 30 days (a) subsequent to the date of establishment of the
Individual Account or (b) subsequent to a prior change in allocation. In
addition, the Contract Owner may elect, during the Accumulation Period, to
transfer amounts in an Individual Account being accumulated in any investment
option to any other investment option without deduction of any charges, subject
to certain conditions.
Subject to the conditions noted below, during the Accumulation Period the
Contract Owner may transfer amounts in an Individual Account being accumulated
in any investment option--a Sub-account of Variable Account or the Fixed
Account--to any other investment option available under the Contracts, without
charge. Except with Great American Reserves permission, a transfer can be made
no more frequently than once in any 30-day period, and only one transfer from
the Fixed Account is permitted in any six-month period with no more than 20
percent of the Fixed Account value transferred at one time. Transfers between
Sub-accounts and changes in allocations may be made either in writing or by
telephone (if a telephone authorization request has been completed).
Transfers must be made by written authorization from the Contract Owner or
from the person acting for the Contract Owner as an attorney-in-fact under a
power-of- attorney if permitted by state law. The Contract Owner must request
telephone transfers on forms provided by Great American Reserve. By authorizing
Great American Reserve to accept telephone transfer instructions, a Contract
Owner agrees to accept and be bound by the conditions and procedures established
by Great American Reserve from time to time. We have instituted reasonable
procedures to confirm that any instructions communicated by telephone are
genuine. All telephone calls will be recorded, and the caller will be asked to
produce your personalized data prior to our initiating any transfer requests by
telephone. Additionally, as with other transactions, you will receive a written
confirmation of your transfer. If reasonable procedures are employed, neither
Great American Reserve nor Conseco Equity Sales, Inc. ("Conseco Equity Sales")
will be liable for following telephone instructions which it reasonably believes
to be genuine. Written transfer requests may be made by a person acting for the
Contract Owner as an attorney-in-fact under a power-of-attorney.
Transfer requests received by Great American Reserve before the close of
trading on the New York Stock Exchange (currently 4:00 p.m. eastern time) will
be initiated at the close of business that day. Any request received later will
be initiated at the close of the next business day.
DOLLAR COST AVERAGING. Great American Reserve administers a Dollar Cost
Averaging ("DCA") program which enables a Contract Owner to transfer the value
from the Fixed Account or Money Market Sub-account to another investment option
on a predetermined and systematic basis. The DCA program is generally suitable
for Contract Owners making a substantial deposit to the Contract and who desire
to control the risk of investing at the top of a market cycle. The DCA program
allows such investments to be made in equal installments over time in an effort
to potentially reduce such risk.
REBALANCING. Rebalancing is a program, which if elected, provides for
periodic pre-authorized automatic transfers during the Accumulation Period among
the Sub- Accounts pursuant to written instructions from the Contract Owner. Such
transfers are made to maintain a particular percentage allocation among the
Portfolios as selected by the Contract Owner. Amounts in the Fixed Account will
not be transferred pursuant to the Rebalancing Program. The Contract Value must
be at least $5,000 to have transfers made pursuant to the Program. Any transfer
made pursuant to the Program must be in whole percentages in one (1%) percent
allocation increments. The maximum number of Sub-Accounts which can be used for
rebalancing is fifteen (15). A Contract Owner may select quarterly, semi-annual
or annual Rebalancing, on the date requested by the Contract Owner. There is
no fee for participating in the Program. The Company reserves the right to
terminate, modify or suspend the Rebalancing Program at any time.
SWEEPS. Sweeps are the transfer of the earnings from the Fixed Account
investment option into another investment option on a periodic and systematic
basis.
VALUE OF AN INDIVIDUAL ACCOUNT. The number of Accumulation Units credited to
an Individual Account will not be changed by any subsequent change in the value
of an Accumulation Unit, but the dollar value of an Accumulation Unit may vary
from Valuation Period to Valuation Period to reflect the investment experience
of the appropriate investment option. The value of an Individual Account at any
time prior to the commencement of the Annuity Period can be determined by (a)
multiplying the total number of Accumulation Units credited to the Individual
Account for each investment option, respectively, by the appropriate current
Accumulation Unit value; and (b) totaling the resulting values for each portion
of the Individual Account. There is no assurance that the value of the
Individual Account will equal or exceed the Purchase Payments made. The Contract
Owner will be advised at least annually as to the number of Accumulation Units
which are credited to the Individual Accounts, the current Accumulation Unit
values, and the values of the Individual Accounts.
NET INVESTMENT FACTOR FOR EACH VALUATION PERIOD. The Variable Account value
will fluctuate in accordance with the investment results of the underlying
eligible Funds. In order to determine how these fluctuations affect Contract
value, an Accumulation Unit value is utilized. Each Sub-account has its own
Accumulation Units and value per Unit. The Unit value applicable during any
Valuation Period is determined at the end of that period.
When eligible Fund shares were first purchased on behalf of the Variable
Account, Accumulation Units were valued at $1.00 each. The value of an
Accumulation Unit for each Sub-account at any Valuation Period thereafter is
determined by multiplying the value for the prior period by a net investment
factor. This factor may be greater or less than 1.0; therefore, the Accumulation
Unit may increase or decrease from Valuation Period to Valuation Period. A net
investment factor for each Sub-account is calculated by dividing (a) by (b) and
then subtracting (c) (i.e., (a/b) - c), where:
(a) is equal to:
(i) the net asset value per share of the eligible
Portfolio at the end of the Valuation Period; plus
(ii) the per-share amount of any distribution made by the eligible
Portfolio if the "ex-dividend" date occurs during that same Valuation
Period.
(b) is the net asset value per share of the eligible Portfolio
at the end of the prior Valuation Period.
(c) is equal to the Valuation Period equivalent of the per- year mortality
and expense risk charge as indicated in the "Summary - Charges
and Deductions" table.
INFORMATION ON THE FIXED ACCOUNT. Because of exemptive and exclusionary
provisions, interests in the Fixed Account of the general account have not been
registered under the Securities Act of 1933 (the "1933 Act"), nor is the Fixed
Account of the general account registered as an investment company under the
1940 Act. Accordingly, neither the Fixed Account of the general account of Great
American Reserve nor any interest therein is generally subject to the provisions
of the 1933 or 1940 Acts, and we have been advised that the staff of the SEC has
not reviewed the disclosures in this Prospectus that relate to the fixed
portion. Disclosures regarding the Fixed Account of the Contracts and the
general account of Great American Reserve, however, may be subject to certain
generally applicable provisions of the federal securities laws relating to the
accuracy and completeness of statements made in prospectuses.
In addition to the 40 variable investment options described in this
Prospectus, the Contracts have a Fixed Account available for allocation of
Purchase Payments. Generally, the information in the Section called Contracts
applies in a like manner to the Fixed Account. However, there are some
differences.
The Fixed Account operates like a traditional annuity. Fixed Annuity Cash
Values increase based on interest rates that may change from time to time but
are guaranteed by Great American Reserve. Interest is credited daily and
compounded annually. Purchase Payments and transfers to the Fixed Account
become part of the general account of Great American Reserve. In contrast,
Purchase Payments and transfers for the Variable Account are applied to
segregated asset accounts; they are not commingled with Great American
Reserves main portfolio of investments that support fixed annuity obligations.
The gains achieved or losses suffered by the segregated asset accounts
have no effect on the Fixed Account.
The Contracts allow you to transfer Contract Values between the Fixed and
Variable Accounts, but such transfers are restricted as follows:
1. You may transfer Contract Values from the Variable Account to the Fixed
Account once in any 30-day period.
2. You may transfer Contract Values from the Fixed Account to the Variable
Account once in any six- month period subject to a limit of 20 percent of
the Fixed Account value.
3. No transfers may be made from the Fixed Account once annuity payments
begin.
The administrative charge and the mortality and expense risk charge based on
the value of each Sub-account do not apply to values allocated to the Fixed
Account.
If you buy the annuity as a TSA or certain other qualified plans, the
Contract will contain a provision that allows a loan to be taken against the
Contract Values allocated to the Fixed Account. Loan provisions are described in
detail in the Contract.
WITHDRAWALS. The Contract permits the Contract Owner to withdraw all or a
portion of the Contract at any time. The value of the Contract will be
determined as of the date a written request for withdrawal is received by Great
American Reserve at its Administrative Office or a later date specified by the
Contract Owner in the request. The Redemption Payment shall be the value of
Accumulation Units then credited to Individual Accounts under the Contract, less
applicable withdrawal charges, any outstanding loans, and applicable
administrative fees. With respect to any Individual Account value or portion
thereof which has been applied to provide annuity payments, Great American
Reserve will continue to make annuity payments under the option selected until
its obligation to make such payments terminates (see Annuity Provisions).
An Individual Account may be fully or partially withdrawn by the Contract
Owner at any time prior to the commencement of annuity payments subject to any
restrictions of the Code. For certain qualified contracts, exercise of the
withdrawal right may be restricted and may require the consent of the
participants spouse as required under the Code and regulations thereunder. Where
amounts in an Individual Account are being accumulated in more than one
investment option, a request for partial withdrawal must specify the manner in
which the Amount Redeemed is to be allocated between the investment options.
Redemption Payments will normally be made within seven days after a written
request is received at the Administrative Office of Great American Reserve, or
within seven days after such later date specified by the Contract Owner in the
request. Payment may be subject to postponement as described below.
With respect to the portion accumulated on a variable basis, payment may be
postponed (1) for any period during which the New York Stock Exchange is closed
(other than customary weekend and holiday closings) or during which trading on
the New York Stock Exchange is restricted; (2) for any period during which an
emergency exists as a result of which disposal of securities held in one or more
of the Funds is not reasonably practicable or it is not reasonably practicable
for the assets of a Fund to be fairly determined; or (3) for such other periods
as the SEC may by order permit for the protection of security holders. The
conditions under which trading shall be deemed to be restricted or an emergency
deemed to exist shall be determined by the rules and regulations of the SEC.
Withdrawals from the Contract may be subject to income and penalty
taxes. Withdrawals from Contracts issued in connection with certain qualified
plans are permitted only under limited circumstances (see "Federal Tax Status").
SYSTEMATIC WITHDRAWAL PLAN. Great American Reserve administers a Systematic
Withdrawal Plan (SWP) which enables a Participant to pre-authorize a periodic
exercise of the contractual withdrawal rights described above. Participants
entering into a SWP agreement instruct Great American Reserve to withdraw a
level dollar amount from specified investment options on a periodic basis.
The total of SWP withdrawals in a Contract Year is limited to free withdrawal
amounts to ensure that no withdrawal charge will ever apply to a SWP withdrawal
(see "Withdrawal Charge"). If an additional withdrawal is made from a Contract
participating in SWP, the SWP will terminate automatically and may be reinstated
only on or after a written request to Great American Reserve. SWP is not
available to Contracts participating in the dollar cost averaging program or
for which Purchase Payments are automatically deducted from a bank account on a
periodic basis. SWP is only available for withdrawals free of withdrawal
charges. SWP withdrawals may, however, be subject to income taxes and the 10
percent federal tax penalty on early withdrawals (see "Federal Tax Status").
Participants interested in SWP may elect to participate in this program by
written request to Great American Reserve's Administrative Office.
LOANS. Your contract may contain a loan provision issued in connection with
certain qualified plans. Owners of such Contracts may obtain loans using the
Contract as the only security for the loan. Loans are subject to provisions of
the Code and to applicable retirement program rules. Tax advisers and retirement
plan fiduciaries should be consulted prior to exercising loan privileges. Loan
provisions are described in detail in the Contract and any applicable loan
agreement.
The amount of any loans outstanding on the date of death will be deducted
from the death benefit (see "Death Benefits"). In addition, a loan, whether or
not repaid, will have a permanent effect on the Contract Value because the
investment results of the investment accounts will apply only to the unborrowed
portion of the Contract Value. The longer the loan is outstanding, the greater
the effect is likely to be. The effect could be favorable or unfavorable. If the
investment results are greater than the rate being credited on amounts held in
the loan account while the loan is outstanding, the Contract Value will not
increase as rapidly as it would have if no loan was outstanding. If investment
results are below that rate, the Contract Value will be higher than it would
have been if no loan had been outstanding.
CONTRACT CHARGES
PREMIUM TAXES. Any premium tax due may be deducted from Purchase Payments
or from Individual Account values at the annuity commencement date or at any
such other time as determined by Great American Reserve in its sole discretion.
The current range of premium taxes in jurisdictions in which the Contracts
are made available is from 0 percent to 3.5 percent.
ADMINISTRATIVE CHARGE. During the Accumulation Period, an annual
administrative fee is deducted on each July 2 from the Individual Account value.
If an Individual Account is fully surrendered prior to the commencement of
annuity payments, the annual administrative fee will be deducted from proceeds
paid; provided, however, that in no event will the amount of such administrative
fee deduction exceed 2 percent of the surrender value of the Individual Account
when it is fully surrendered. This administrative fee is also assessed at the
time the Accumulation Value is applied to provide an annuity. The administrative
fee deduction is made first from amounts accumulated in the Fixed Account; if no
or an insufficient value exists in the Fixed Account, any balance will then be
deducted from the Sub-accounts of Variable Account. The fee is $20 for
flexible premium payment Contracts and $25 for single premium payment Contracts.
These administrative fees have been set at a level that will recover no more
than the actual costs associated with administering the Contracts.
MORTALITY AND EXPENSE RISK CHARGE. Great American Reserve makes daily
deductions from the variable portion of a Contract at an effective annual rate
equal to 1.00 percent of the value of the assets of Variable Account for the
mortality and expense risks assumed by Great American Reserve. Great American
Reserve performs all administrative functions and pays all administrative
expenses with respect to the Contracts. These expenses include but are not
limited to salaries, rents, postage, telephone, travel, legal, actuarial and
accounting fees, office equipment and stationery. Great American Reserve also
provides the death benefits under the Contracts. The amounts are deducted from
the assets of Variable Account in accordance with the Contracts.
Variable Annuity payments made under the Contracts vary with the investment
performance of the Sub-accounts of Variable Account, but are not affected by
Great American Reserve's actual mortality experience among Annuitants. The life
span of the Annuitant, or changes in life expectancy in general, do not affect
the monthly annuity payments payable under the Contracts.
If Annuitants live longer than the life expectancy determined by Great
American Reserve, Great American Reserve provides funds from its general funds
to make annuity payments. Conversely, if longevity among Annuitants is lower
than Great American Reserve determined, Great American Reserve realizes a gain.
This is the mortality expense risk.
Great American Reserve also assumes the risk, the expense risk, that
deductions provided for in the Contracts for sales and administrative expenses
may not be enough to cover actual costs. Where the deductions are not adequate,
Great American Reserve will pay the amount of any shortfall from its general
funds. Any amounts paid by Great American Reserve may consist of, among other
things, proceeds derived from mortality and expense risk charges.
WITHDRAWAL CHARGE. Ten percent of the single premium payment Contract may be
withdrawn without payment of a withdrawal charge each year beginning with the
second Contract year. Ten percent of the total accumulation of a flexible
premium payment Contract may be withdrawn without payment of a withdrawal
charge, but not more than one free withdrawal may be made in any calendar year.
Termination of either Contract or a partial withdrawal in excess of these
limitations may subject the value of the amount surrendered ("Amount Redeemed")
to a withdrawal charge. The deduction for withdrawal charges will be calculated
on the amount withdrawn in excess of 10 percent to determine the amount to be
paid ("Redemption Payment"). For flexible premium payment contracts, the
deduction for the first withdrawal in a contract year will be calculated on the
amount withdrawn in excess of 10 percent of the total current accumulation. For
the second or subsequent withdrawals in a Contract year, the withdrawal charge
will be calculated on the total amount of each withdrawal. No withdrawal charge
is made from annuity payments under an option involving lifetime payments or
from amounts paid due to the death of a Participant. Any applicable withdrawal
charge will be made if the number of years selected is less than five.
The withdrawal charge will be a percentage of the Amount Redeemed, ranging
from 8 percent to 0 percent depending on the type of Contract and the length of
time the Contract has been outstanding. In no event, however, will the
cumulative deductions exceed 8.5 percent of the cumulative Purchase Payments
made. Until such percentage reaches zero, it is possible that the actual dollar
amount of the withdrawal charge will increase, even though the percentage will
decline, because of the increased Accumulation Value of the Contract. If the
cost of selling the Contracts is greater than the withdrawal charge collected,
the deficiency will be made up out of Great American Reserve's general account
assets which may include profits derived from the mortality and expense risk
fees.
<TABLE>
<CAPTION>
WITHDRAWAL CHARGE
FLEXIBLE PREMIUM SINGLE PREMIUM
CONTRACT YEAR PAYMENT CONTRACT PAYMENT CONTRACT
====================================================================================================================================
<S> <C> <C>
1.........................................................................................8% 7%
2.........................................................................................7% 6%
3.........................................................................................6% 5%
4.........................................................................................5% 4%
5.........................................................................................4% 3%
6.........................................................................................3% 0%
7.........................................................................................2% 0%
8.........................................................................................1% 0%
Thereafter................................................................................0% 0%
====================================================================================================================================
</TABLE>
No withdrawal charge is applicable to Individual Accounts surrendered upon the
death of the Participant. Redemptions are made on a last-in, first-out basis.
EXAMPLES:
(1) Complete withdrawal of an Individual Account under a single premium payment
Contract during the third Contract year:
<TABLE>
<CAPTION>
VALUE OF CONTRACT SINGLE
OR INDIVIDUAL ACCOUNT PREMIUM WITHDRAWAL ADMINISTRATIVE REDEMPTION
(AMOUNT REDEEMED) PAYMENT CHARGE FEE DEDUCTION* PAYMENT
----------------- ------- ------ -------------- -------
<S> <C> <C> <C> <C> <C>
$11,800 $10,000 $540 (5% x $10,800) $25 $11,235
</TABLE>
*Applicable to full withdrawals only.
(2) Partial withdrawal of Individual Account under a single premium payment
Contract during the third Contract year, assuming $1,000 Redemption Payment
requested in excess of the 10 percent no penalty withdrawal:
<TABLE>
<CAPTION>
AMOUNT AMOUNT WITHDRAWAL REDEMPTION
REQUESTED REDEEMED CHARGE PAYMENT
--------- -------- ------ -------
<S> <C> <C> <C> <C>
$1,000.00 $1,052.63 $52.63 (5%) $1,000.00
</TABLE>
In order to make a Redemption Payment of $1,000 in excess of the 10 percent
no penalty withdrawal, the Amount Redeemed must be greater than the Amount
Requested by the amount of the withdrawal charge. The Amount Redeemed is
calculated by dividing (a) the Amount Requested ($1,000) by (b) 1.00 minus the
deduction rate of 5 percent (or .95), which produces $1,052.63. The value of the
Individual Account will be reduced by this amount.
EXPENSE GUARANTEE AGREEMENT. Pursuant to the Combination, Great American
Reserve issued an endorsement with respect to each existing Contract outstanding
immediately prior to the effective time of the Combination guaranteeing that the
total of the investment management fees charged against the Common Stock,
Corporate Bond, and Money Market Portfolios of the Conseco Series Trust whose
shares are purchased by Variable Account, plus the mortality and expense risk,
administrative and any other charges imposed upon the assets of the
corresponding Sub-accounts of Variable Account, will not exceed an amount that
is equal to the total amount of the same charges that would have been imposed
under the Contracts had the Combination not occurred (the "Expense Guarantee
Agreement"). Accordingly, Great American Reserve will reimburse to the
appropriate Sub-account of Variable Account an amount that represents the
difference between the investment management fees charged Variable Account,
Annuity Fund or Account D, as applicable, prior to the Combination and the
amount of such fees charged to the Conseco Series Trust, plus any other charges
in excess of those that would have been incurred if the Combination had not
taken place. The mortality and expense risk and administrative charges will not
change, and any other charges imposed on the assets of Variable Account are not
expected to be more than before the Combination. Great American Reserve will
not, however, assume extraordinary or non-recurring expenses of the Conseco
Series Trust, such as legal claims and liabilities, litigation costs and
indemnification payments in connection with litigation. Also, the Expense
Guarantee Agreement will not apply to any federal income tax if the Conseco
Series Trust fails to qualify as a "regulated investment company" under
applicable provisions of the Code. The Expense Guarantee Agreement, described
above, also applies to Contracts issued after the Combination. Great American
Reserve, however, may eliminate the Expense Guarantee Agreement with respect to
Contracts issued in the future.
OTHER CHARGES. Currently, no charge is made against Variable Account for
Great American Reserve's federal income taxes, or provisions for such taxes,
that may be attributable to Variable Account. Great American Reserve may charge
each Sub-account of Variable Account for its portion of any income tax charged
to the Sub-account or its assets. Under present laws, Great American Reserve may
incur state and local taxes (in addition to premium taxes) in several states. At
present, these taxes are not significant. If they increase, however, Great
American Reserve may decide to make charges for such taxes or provisions for
such taxes against Variable Account. Any such charges against Variable Account
or its Sub-accounts could have an adverse effect on the investment experience of
such Sub-accounts.
DEATH BENEFITS. In the event the Owner, a Co-Owner, a Joint Owner or the
Annuitant dies before annuity payments commence, Great American Reserve will
pay the Contract Value less any outstanding loans to the beneficiary named
in the Contract determined as of the Valuation Period in which proof of death
acceptable to us is received at our Administrative Office.
Generally, in the case of non-qualified Contracts, the distribution of the
Contract Owner's interest in the Contract must be made within five years after
the Contract Owner's death. If the beneficiary is an individual, in lieu of
distribution within five years of the Contract Owner's death, distribution may
generally be made as an annuity which begins within one year of the Contract
Owner's death and is payable over the life of the beneficiary or over a period
not in excess of the life expectancy of the beneficiary. If the Contract Owner's
spouse is the beneficiary, that spouse may elect to continue the Contract
as the new Contract Owner in lieu of receiving the distribution. In such a
case, the distribution rules applicable when a Contract Owner dies will apply
when that spouse, as the Contract Owner, dies. If there are Joint Owners or
Co-Owners, distribution will occur when the first owner dies. Generally, in the
case of a qualified contract, the date on which distributions are required to
begin must be no later than April l of the first calendar year following the
later of (a) the calendar year in which the Annuitant attains age 70 1/2 or
(b) the calendar year in which the Annuitant retires. Additional requirements
may apply to certain qualified contracts. In the case of a Contract involving
more than one Contract Owner, the death of any Contract Owner shall cause this
section to apply.
In lieu of a lump-sum payment, the death proceeds may be applied under any
of the annuity options available in the Contract.
RESTRICTIONS UNDER OPTIONAL RETIREMENT PROGRAMS. PARTICIPANTS IN OPTIONAL
RETIREMENT PROGRAMS can redeem their interest in a Variable Annuity Contract
only upon (1) termination of employment in all public institutions of higher
education as defined by applicable law, (2) retirement, or (3) death.
Accordingly, a Participant may be required to obtain a certificate of
termination from his employer before he can redeem his interest. Currently,
these restrictions apply to the participants of the Florida and Texas Optional
Retirement Program.
RESTRICTIONS UNDER SECTION 403(b) PLANS. Withdrawals of amounts
attributable to contributions made pursuant to a salary reduction agreement (as
defined in Section 403(b)(11) of the Code) are limited to circumstances only
when the Contract Owner attains age 59 1/2, separates from service, dies,
becomes disabled (within the meaning of Section 72(m)(7) of the Code), in the
case of hardship or made pursuant to a qualified domestic relations order.
Withdrawals for hardship are restricted to the portion of the Contract Owner's
Contract value which represents contributions made by the Owner and does not
include any investment results. The limitations on withdrawals became effective
on January 1, 1989, and apply only to: (1) salary reduction contributions made
after December 31, 1988; (2) income attributable to such contributions; and (3)
income attributable to amounts held as of December 31, 1988. The limitations
on withdrawals do not affect rollovers or transfers between certain Qualified
Plans. Tax penalties may also apply.
B. ANNUITY PROVISIONS
ELECTING THE ANNUITY PERIOD AND FORM OF ANNUITY. For deferred annuity
Contracts, the date annuity payments are to commence and the annuity option are
elected by the Contract Owner. Changes in such elections may be made at any time
up to 30 days prior to the date annuity payments are to commence by notice to
Great American Reserve. If no such elections are made, payments will
automatically begin on the first day of the month or, with respect to the
flexible payment Contracts, coinciding with the Annuitant's attainment of age
65 under a lifetime annuity with 120 monthly payments certain, and the value
of the Contract Owner's Individual Account will be based upon the value in the
Sub-accounts of Variable Account applied, separately, to provide variable
annuity payments.
By giving written notice to Great American Reserve at least 30 days prior
to the commencement of annuity payments, the Contract Owner may elect to change
(a) the annuity option to any of the optional annuity forms described below, and
(b) the manner in which the value of a Contract Owner's Individual Account is to
be applied to provide annuity payments (for example, an election that a portion
or all of the amounts accumulated on a variable basis be applied to provide
fixed annuity payments or vice versa). Once annuity payments commence, no
changes may be elected by the Contract Owner.
No election may be made that would result in a first monthly annuity
payment of less than $25 if payments are to be on a fully fixed or variable
basis, or less than $25 on each basis if a combination of variable and fixed
annuity payments is elected. If at any time payments are or become less than $25
per monthly payment, Great American Reserve has the right to change the
frequency of payment to such interval as will result in annuity payments of at
least $25 each, except that payments shall not be made less frequently than
annually.
See "Federal Tax Status" for information on the federal tax status of
annuity payments or other settlements in lieu thereof.
ANNUITY OPTIONS
FIRST OPTION-LIFE ANNUITY. An Annuity payable monthly during the lifetime
of the Annuitant and ceasing with the last monthly payment due prior to the
death of the Annuitant. Of the first three options, this option offers the
maximum level of monthly payments since there is no minimum number of payments
guaranteed (nor a provision for a death benefit payable to a beneficiary). It
would be possible under this option to receive only one annuity payment if the
Annuitant died prior to the due date of the second annuity payment.
SECOND OPTION-LIFE ANNUITY WITH 120, 180 OR 240 MONTHLY PAYMENTS
GUARANTEED. An Annuity payable monthly during the lifetime of the Annuitant with
the guarantee that if, at the death of the Annuitant, payments have been made
for less than 120, 180 or 240 months, as elected, annuity payments will be
continued during the remainder of such period to the beneficiary designated by
the Contract Owner. For the single payment Contract, if no beneficiary is
designated, Great American Reserve will, in accordance with the Contract
provisions, pay in a lump sum to the Annuitant's estate the present value, as
of the date of death, of the number of guaranteed annuity payments remaining
after that date, computed on the basis of the assumed net investment rate used
in determining the first monthly payment (See "Determination of Amount of the
First Monthly Variable Annuity Payment").
Because it provides a specified minimum number of annuity payments, this
option results in somewhat lower payments per month than the First Option.
THIRD OPTION-DEFERRED INCOME (FLEXIBLE PREMIUM CONTRACT ONLY). An annuity
payable monthly, quarterly, semiannually, or annually with a lump sum paid to
the designated beneficiary at the Annuitant's death. Under this option the total
accumulation value of the contract will be deposited in the Fixed Account on the
Annuity Date and payments will be equal to the net Fixed Account rate of return
for the period multiplied by the amount remaining on deposit.
FOURTH OPTION-JOINT AND LAST SURVIVOR LIFE ANNUITY. An Annuity payable
monthly during the joint lifetime of the Annuitant and a designated second
person, and thereafter during the remaining lifetime of the survivor. Payments
to the survivor will be at the rate of 100 percent, 75 percent, 66 2/3 percent
or 50 percent of the amount which would have been payable to the Annuitant, the
applicable rate being elected at the time this option is elected. This option is
designed primarily for couples who require the maximum possible payments during
their joint lives and are not concerned with providing for beneficiaries at the
death of the last to survive. Under current law, this option is automatically
provided for a participant in a pension plan who is married and for married
participants in most other qualified plans; however, a married participant may
waive the joint and last survivor annuity during the appropriate election period
if such participant's spouse consents in writing (acknowledging the effect of
such consent) to such waiver.
FIFTH OPTION-PAYMENTS FOR A DESIGNATED PERIOD. Payments are made for the
number of years selected, which may be from one through 30. However, any
applicable withdrawal charges will be made if the number of years selected is
less than five. If elected on a variable basis, payments under this option will
vary monthly in accordance with the net investment rate of the Sub- Accounts of
Variable Account. Should the Annuitant die before the specified number of
monthly payments is made, the remaining payments will be commuted and paid to
the designated beneficiary in one sum, or (provided the commuted amount is at
least $5,000 and distribution of the value of the total accumulation is not less
rapid than the rate of payment for the designated period) said amount at the
beneficiary's election will be payable under either of the first two options.
To the extent that this option is effected on a variable basis, at any time
during the payment period the Contract Owner may elect that the remaining value
(1) be paid in one sum, or (2) provided that the value is at least $5,000, be
applied to effect a lifetime annuity under one of the first three options
described above. Since the Contract Owner may elect a lifetime annuity at any
time, the annuity rate and expense risks continue during the payment period.
Accordingly, deductions for these risks will continue to be made from the
Individual Account values.
SIXTH OPTION-PAYMENTS OF A DESIGNATED DOLLAR AMOUNT. Monthly, quarterly,
semiannual, or annual payments of a designated dollar amount are made until the
Individual Account value applied under this option, adjusted each Valuation
Period to reflect investment experience, is exhausted within a minimum of three
years and a maximum of 20 years. The designated amount of each installment may
not be less than $75 per year per $1,000 of Individual Account value applied.
Should the Annuitant die before the value is exhausted, the remaining value will
be paid to the beneficiary in one sum.
To the extent that this option is effected on a variable basis, at any time
during the payment period the Contract Owner may elect that the remaining value
be applied to effect a lifetime annuity under one of the first two options
described above. The Contract Owner, or in the case the Contract Owner shall not
have done so, the beneficiary shall elect an annuity option for distribution of
any amount on deposit at the date of an Annuitant's death, and the distribution
will be made at least as rapidly as during the life of the Annuitant. Since the
Contract Owner may elect a lifetime annuity at any time, the annuity rate and
expense risks continue during the payment period. Accordingly, deductions for
these risks will continue to be made from the Individual Account values.
Additional options may be available in the case of certain contracts
purchased prior to 1983, which contracts are no longer offered for sale.
DETERMINATION OF AMOUNT OF THE FIRST MONTHLY VARIABLE ANNUITY PAYMENT. When
annuity payments commence, the value of the Individual Account is determined as
the total of the product(s) of (a) the value of an Accumulation Unit for each
investment medium at the end of the Valuation Period immediately
preceding the Valuation Period in which the first annuity payment is due and (b)
the number of Accumulation Units credited to the Individual Account with respect
to each investment medium as of the date the Annuity is to commence. Premium
tax, if assessed at such time by the applicable jurisdiction, will be deducted
from the Individual Account value. Any portion of the Individual Account value
for which a fixed annuity election has been made is applied to provide
fixed-dollar payments under the option elected.
The amount of the first monthly variable annuity payment is then calculated
by multiplying the Individual Account value which is to be applied to provide
variable payments by the amount of first monthly payment per $1,000 of value, in
accordance with annuity tables contained in the Contract. The annuity tables are
based on the Progressive Annuity Table, assuming births in the year 1900. For
Annuitants whose year of birth is after 1915, an "adjusted age" is used, which
is one year less than actual age. The amount of first monthly payment per $1,000
of value varies according to the form of annuity selected (see "Annuity
Options"), the age of the Annuitant (for certain options) and the assumed net
investment rate selected by the Contract Owner. The standard assumed net
investment rate is 3 1/2 percent per annum; however, an alternative 5 percent
per annum, or such other rate as Great American Reserve may offer, may be
selected prior to the commencement of annuity payments.
The assumed net investment rates built into the annuity tables affect both
the amount of the first monthly variable annuity payment and the amount by which
subsequent payments may increase or decrease. Selection of a 5 percent rate,
rather than the standard 3 1/2 percent rate, would produce a higher first
payment but subsequent payments would increase more slowly in periods when
Annuity Unit values are rising and decrease more rapidly in periods when Annuity
Unit values are declining. With either assumed rate, if the actual net
investment rate during any two or more successive months were equal to the
assumed rate, the annuity payments would be level during that period.
If a greater first monthly payment would result, Great American Reserve
will compute the first monthly payment on the same mortality basis as used in
determining the first payment under immediate annuity contracts being issued for
a similar class of Annuitants at the date the first monthly payment is due under
the Contract.
VALUE OF AN ANNUITY UNIT. At the commencement of the Annuity Period, a
number of Annuity Units is established for the Contract Owner for each
investment option on which variable annuity payments are to be based. For each
Sub-account of Variable Account, the number of Annuity Units established is
calculated by dividing (i) the amount of the first monthly variable annuity
payment on that basis by (ii) the annuity unit value for that basis for the
current Valuation Period. That number of Annuity Units remains constant
throughout the Annuity Period and is the basis for calculating the amount of the
second and subsequent annuity payments.
The Annuity Unit value is determined for each Valuation Period, for each
investment option, and is equal to the Annuity Unit value for the preceding
Valuation Period multiplied by the product of (i) the net investment factor for
the appropriate Sub-account (see "Net Investment Factor for Each Valuation
Period") for the immediately preceding Valuation Period and (ii) a factor to
neutralize the assumed net investment rate built into the annuity tables
(discussed under the preceding caption), for it is replaced by the actual net
investment rate in step (i). The daily factor for a 3 1/2 percent assumed net
investment rate is .99990576; for a 5 percent rate, the daily factor is
.99986634.
AMOUNTS OF SUBSEQUENT MONTHLY VARIABLE ANNUITY PAYMENTS. The amounts of
second and subsequent monthly variable annuity payments are determined by
multiplying (i) the number of Annuity Units established for the Annuitant for
the applicable Sub-account by (ii) the Annuity Unit value for the Sub-account.
If Annuity Units are established for more than one Sub-account, the calculation
is made separately and the results combined to determine the total monthly
variable annuity payment.
1. EXAMPLE OF CALCULATION OF MONTHLY VARIABLE ANNUITY PAYMENTS. The
determination of the amount of the variable annuity payments can be
illustrated by the following hypothetical example. The example assumes that
the monthly payments are based on the investment experience of only one
Sub-account. If payments were based on the investment experience of more
than one Sub-account, the same procedure would be followed to determine the
portion of the monthly payment attributed to each Sub-account.
2. FIRST MONTHLY PAYMENT. Assume that at the date of retirement there are
40,000 Accumulation Units credited under a particular Individual Account
and that the value of an Accumulation Unit for the Valuation Period
immediately prior to retirement was $1.40000000; this produces a total
value for the Individual Account of $56,000. Assume also that no premium
tax is payable and that the annuity tables in the Contract provide, for
the option elected, a first monthly variable annuity payment of $6.57 per
$1,000 of value applied; the first monthly payment to the Annuitant would
thus be 56 multiplied by $6.57, or $367.92.
Assume that the Annuity Unit value for the Valuation Period in which the
first monthly payment was due was $1.30000000. This is divided into the
amount of the first monthly payment to establish the number of Annuity
Units for the Participant: $367.92 /$1.30000000 produces 283.015 Annuity
Units. The value of this number of Annuity Units will be paid in each
subsequent month.
3. SECOND MONTHLY PAYMENT. The current Annuity Unit value is first calculated.
Assume a net investment factor of 1.01000000 for the Valuation Period
immediately preceding the due date of the second monthly payment. This
is multiplied by .99713732 to neutralize the assumed net investment rate of
3 1/2 percent per annum built into the number of Annuity Units determined
above (if an assumed net investment rate of 5 percent had been elected, the
neutralization factor would be .99594241), producing a result of
1.00710869. This is then multiplied by the Annuity Unit value for the
Valuation Period preceding the due date of the second monthly payment
(assume this value to be $1.30000000) to produce the current Annuity Unit
value, $1.30924130.
The second monthly payment is then calculated by multiplying the constant
number of Annuity Units by the current Annuity Unit value: 283.015 times
$1.30924130 produces a payment of $370.53.
TRANSFERS DURING THE ANNUITY PERIOD. Transfers during the Annuity Period
may be made upon written notice to Great American Reserve at least 30 days
before the due date of the first annuity payment for which the change will
apply. Transfers will be made by converting the number of Annuity Units being
transferred to the number of Annuity Units of the Sub-account to which the
transfer is made, so that the next annuity payment if it were made at that time
would be the same amount that it would have been without the transfer.
Thereafter, annuity payments will reflect changes in the value of the new
Annuity Units. Great American Reserve reserves the right to limit, upon notice,
the maximum number of transfers a Contract Owner may make to one in any
six-month period once annuity payments have commenced. In addition, no transfers
may be made from a fixed annuity option. Great American Reserve reserves the
right to defer the transfer privilege at any time that Great American Reserve is
unable to purchase or redeem shares of the Funds. Great American Reserve also
reserves the right to modify or terminate the transfer privilege at any time in
accordance with applicable law.
DEATH BENEFIT DURING THE ANNUITY PERIOD. If annuity payments have been
selected based on an annuity option providing for payments for a guaranteed
period, and the Annuitant dies during the Annuity Period, Great American Reserve
will make the remaining guaranteed payments to the beneficiary. Such payments
will be made at least as rapidly as under the method of distribution being used
as of the date of the Annuitant's death. For the single payment Contracts, if
no beneficiary is designated, Great American Reserve will commute any unpaid
guaranteed payments to a single sum (on the basis of the interest rate used in
determining the payments) and pay that single sum to the Annuitant's estate.
OTHER CONTRACT PROVISIONS
TYPE OF CONTRACT. There are two types of Contracts: (1) flexible
installment purchase payment deferred annuity contracts under which Purchase
Payments may be made at such intervals as desired, but are usually made on an
annual, semi-annual, quarterly or monthly basis, under which annuity payments to
the Annuitant begin at a point of time in the future, and (2) single payment
deferred annuity contracts under which a single payment is made, under which
annuity payments to the Annuitant begin at a point of time in the future.
COMPANY APPROVAL. Each application for a contract is subject to acceptance
by Great American Reserve. Upon acceptance, a Contract is issued to the Contract
Owner and the Purchase Payment is credited to the Contract Owner's account. If
an application is complete upon receipt, the Purchase Payment will be credited
to the Contract Owner's account within two business days. If it is not complete,
Great American Reserve will request additional information to complete the
processing of the application. If this is not accomplished within five business
days, Great American Reserve will return the Purchase Payment to the applicant
unless otherwise instructed. Subsequent Purchase Payments will be credited to
the Contact Owner's account at the price next computed after the Purchase
Payment is received by Great American Reserve at its Administrative Office.
TEN-DAY RIGHT TO REVIEW. Contracts allow a "10-day free look" wherein the
Contract Owner may revoke the Contract by returning it to either a Great
American Reserve representative or to Great American Reserve's Variable Annuity
Department within 10 days of delivery of the Contract (or a longer period in
certain states). Great American Reserve deems this period as ending 15 days
after a Contract is mailed from its Variable Annuity Department. If the Contract
is returned under the terms of the free look, Great American Reserve will refund
to the Contract Owner an amount equal to all payments received with respect to
the Contract, unless a larger refund is required by state law.
ASSIGNMENT. A Contract may not be assigned by the Contract Owner, although
permitted, except when issued on a non-tax-qualified basis. An assignment of a
non-tax-qualified Contract would have tax consequences to the Contract Owner
(see "Federal Tax Status").
FEDERAL TAX STATUS
NOTE: THE FOLLOWING DESCRIPTION IS BASED UPON THE COMPANY'S UNDERSTANDING
OF CURRENT FEDERAL INCOME TAX LAW APPLICABLE TO ANNUITIES IN GENERAL. THE
COMPANY CANNOT PREDICT THE PROBABILITY THAT ANY CHANGES IN SUCH LAWS WILL BE
MADE. PURCHASERS ARE CAUTIONED TO SEEK COMPETENT TAX ADVICE REGARDING THE
POSSIBILITY OF SUCH CHANGES. THE COMPANY DOES NOT GUARANTEE THE TAX STATUS OF
THE CONTRACTS. PURCHASERS BEAR THE COMPLETE RISK THAT THE CONTRACTS MAY NOT BE
TREATED AS "ANNUITY CONTRACTS" UNDER FEDERAL INCOME TAX LAWS. IT SHOULD BE
FURTHER UNDERSTOOD THAT THE FOLLOWING DISCUSSION IS NOT EXHAUSTIVE AND THAT
SPECIAL RULES NOT DESCRIBED HEREIN MAY BE APPLICABLE IN CERTAIN SITUATIONS.
MOREOVER, NO ATTEMPT HAS BEEN MADE TO CONSIDER ANY APPLICABLE STATE OR OTHER TAX
LAWS.
GENERAL
Section 72 of the Internal Revenue Code of 1986, as amended ("Code")
governs taxation of annuities in general. An Owner is not taxed on increases in
the value of a Contract until distribution occurs, either in the form of a lump
sum payment or as annuity payments under the Annuity Option selected. For a lump
sum payment received as a total withdrawal (total surrender), the recipient is
taxed on the portion of the payment that exceeds the cost basis of the Contract.
For Non-Qualified Contracts, this cost basis is generally the purchase payments,
while for Qualified Contracts there may be no cost basis. The taxable portion of
the lump sum payment is taxed at ordinary income tax rates.
For annuity payments, a portion of each payment in excess of an exclusion
amount is includible in taxable income. The exclusion amount for payments based
on a fixed annuity option is determined by multiplying the payment by the ratio
that the cost basis of the Contract (adjusted for any period or refund feature)
bears to the expected return under the Contract. The exclusion amount for
payments based on a variable annuity option is determined by dividing the cost
basis of the Contract (adjusted for any period certain or refund guarantee) by
the number of years over which the annuity is expected to be paid. Payments
received after the investment in the Contract has been recovered (i.e. when the
total of the excludable amount equals the investment in the Contract) are fully
taxable. The taxable portion is taxed at ordinary income tax rates. For certain
types of Qualified Plans there may be no cost basis in the Contract within the
meaning of Section 72 of the Code. Owners, Annuitants and Beneficiaries under
the Contracts should seek competent financial advice about the tax consequences
of any distributions.
Great American Reserve is taxed as a life insurance company under the Code.
For federal income tax purposes, the Variable Account is not a separate entity
from Great American Reserve, and its operations form a part of Great American
Reserve.
DIVERSIFICATION
Section 817(h) of the Code imposes certain diversification standards on
the underlying assets of variable annuity contracts. The Code provides that a
variable annuity contract will not be treated as an annuity contract for any
period (and any subsequent period) for which the investments are not, in
accordance with regulations prescribed by the United States Treasury Department
("Treasury Department"), adequately diversified. Disqualification of the
Contract as an annuity contract would result in the imposition of federal income
tax to the Owner with respect to earnings allocable to the Contract prior to the
receipt of payments under the Contract. The Code contains a safe harbor
provision which provides that annuity contracts such as the Contract meet the
diversification requirements if, as of the end of each quarter, the underlying
assets meet the diversification standards for a regulated investment company and
no more than fifty-five percent (55%) of the total assets consist of cash, cash
items, U.S. Government securities and securities of other regulated investment
companies.
On March 2, 1989, the Treasury Department issued Regulations (Treas.
Reg.1.817-5), which established diversification requirements for the investment
portfolios underlying variable contracts such as the Contract. The Regulations
amplify the diversification requirements for variable contracts set forth in the
Code and provide an alternative to the safe harbor provision described above.
Under the Regulations, an investment portfolio will be deemed adequately
diversified if: (1) no more than 55% of the value of the total assets of the
portfolio is represented by any one investment; (2) no more than 70% of the
value of the total assets of the portfolio is represented by any two
investments; (3) no more than 80% of the value of the total assets of the
portfolio is represented by any three investments; and (4) no more than 90% of
the value of the total assets of the portfolio is represented by any four
investments.
The Code provides that, for purposes of determining whether or not the
diversification standards imposed on the underlying assets of variable contracts
by Section 817(h) of the Code have been met, "each United States government
agency or instrumentality shall be treated as a separate issuer."
Great American Reserve intends that all variable Investment Options
underlying the Contracts will be managed in such a manner as to comply with
these diversification requirements.
The Treasury Department has indicated that the diversification Regulations
do not provide guidance regarding the circumstances in which Owner control of
the investments of the Variable Account will cause the Owner to be treated as
the owner of the assets of the Variable Account, thereby resulting in the loss
of favorable tax treatment for the Contract. At this time it cannot be
determined whether additional guidance will be provided and what standards may
be contained in such guidance.
The amount of Owner control which may be exercised under the Contract is
different in some respects from the situations addressed in published rulings
issued by the Internal Revenue Service in which it was held that the policy
owner was not the owner of the assets of the separate account. It is unknown
whether these differences, such as the Owner's ability to transfer among
investment choices or the number and type of investment choices available, would
cause the Owner to be considered as the owner of the assets of the Variable
Account resulting in the imposition of federal income tax to the Owner with
respect to earnings allocable to the Contract prior to receipt of payments under
the Contract.
In the event any forthcoming guidance or ruling is considered to set forth
a new position, such guidance or ruling will generally be applied only
prospectively. However, if such ruling or guidance was not considered to set
forth a new position, it may be applied retroactively resulting in the Owners
being retroactively determined to be the owners of the assets of the Separate
Account.
Due to the uncertainty in this area, we reserve the right to
modify the Contract in an attempt to maintain favorable tax treatment.
MULTIPLE CONTRACTS
The Code provides that multiple non-qualified annuity contracts which are
issued within a calendar year to the same contract owner by one company or its
affiliates are treated as one annuity contract for purposes of determining the
tax consequences of any distribution. Such treatment may result in adverse tax
consequences including more rapid taxation of the distributed amounts from such
combination of contracts. Owners should consult a tax adviser prior to
purchasing more than one non-qualified annuity contract in any calendar year.
CONTRACTS OWNED BY OTHER THAN NATURAL PERSONS
Under Section 72(u) of the Code, the investment earnings on premiums for
the Contracts will be taxed currently to the Owner if the Owner is a non-natural
person, e.g., a corporation or certain other entities. Such Contracts generally
will not be treated as annuities for federal income tax purposes. However, this
treatment is not applied to a Contract held by a trust or other entity as an
agent for a natural person nor to Contracts held by Qualified Plans. Purchasers
should consult their own tax counsel or other tax adviser before purchasing a
Contract to be owned by a non-natural person.
TAX TREATMENT OF ASSIGNMENTS
An assignment or pledge of a Contract may be a taxable event. Owners
should therefore consult competent tax advisers should they wish to assign or
pledge their Contracts.
If the Contract is issued pursuant to a retirement plan which recieves
favorable treatment under the provision of Sections 403(b) or 457 of the Code,
it may not be assigned, pledged or otherwise transferred except as allowed
under applicable law.
INCOME TAX WITHHOLDING
All distributions or the portion thereof which is includible in the gross
income of the Owner are subject to federal income tax withholding. Generally,
amounts are withheld from periodic payments at the same rate as wages and at the
rate of 10% from non-periodic payments. However, the Owner, in many cases, may
elect not to have taxes withheld or to have withholding done at a different
rate.
Effective January 1, 1993, certain distributions from retirement plans
qualified under Section 401 or Section 403(b) of the Code, which are not
directly rolled over to another eligible retirement plan or individual
retirement account or individual retirement annuity, are subject to a mandatory
20% withholding for federal income tax. The 20% withholding requirement
generally does not apply to: a) a series of substantially equal payments made at
least annually for the life or life expectancy of the participant or joint and
last survivor expectancy of the participant and a designated beneficiary or for
a specified period of 10 years or more; or b) distributions which are required
minimum distributions; or c) the portion of the distributions not includible in
gross income (i.e. returns of after-tax contributions). Participants should
consult their own tax counsel or other tax adviser regarding withholding
requirements.
TAX TREATMENT OF WITHDRAWALS - NON-QUALIFIED CONTRACTS
Section 72 of the Code governs treatment of distributions from annuity
contracts. It provides that if the Contract value exceeds the aggregate purchase
payments made, any amount withdrawn will be treated as coming first from the
earnings and then, only after the income portion is exhausted, as coming from
the principal. Withdrawn earnings are includible in gross income. It further
provides that a ten percent (10%) penalty will apply to the income portion of
any premature distribution. However, the penalty is not imposed on amounts
received: (a) after you reach age 59 1/2; (b) after your death; (c) if you
become totally disabled (for this purpose disability is as defined in Section
72(m)(7) of the Code); (d) in a series of substantially equal periodic payments
made not less frequently than annually for your life (or life expectancy) or for
the joint lives (or joint life expectancies) of you and your Beneficiary; (e)
under an immediate annuity; or (f) which are allocable to purchase payments made
prior to August 14, 1982.
The Contract provides that upon the death of the Annuitant prior to
Maturity Date, the death proceeds will be paid to the beneficiary. Such
payments made upon the death of the Annuitant who is not the Owner of the
Contract do not qualify for the death of Owner exception described above, and
will be subject to the ten (10%) percent distribution penalty unless the
beneficiary is 59 1/2 years old or one of the other exceptions to the penalty
applies.
The above information does not apply to Qualified Contracts. However,
separate tax withdrawal penalties and restrictions may apply to such Qualified
Contracts. (See "Tax Treatment of Withdrawals - Qualified Contracts" below.)
QUALIFIED PLANS
The Contracts offered herein are designed to be suitable for use under various
types of Qualified Plans. Taxation of participants in each Qualified Plan
varies with the type of plan and terms and conditions of each specific plan.
Owners, Annuitants and Beneficiaries are cautioned that benefits under
a Qualified Plan may be subject to the terms and conditions of the plan
regardless of the terms and conditions of the Contracts issued
pursuant to the plan. Some retirement plans are subject to distribution and
other requirements that are not incorporated into the Company's administrative
procedures. Owners, participants and Beneficiaries are responsible for
determining that contributions, distributions and other transactions with
respect to the Contracts comply with applicable law. Following are general
descriptions of the types of Qualified Plans with which the Contracts may be
used. Such descriptions are not exhaustive and are for general informational
purposes only. The tax rules regarding Qualified Plans are very complex and
will have differing applications depending on individual facts and
circumstances. Each purchaser should obtain competent tax advice prior to
purchasing a Contract issued under a Qualified Plan.
Contracts issued pursuant to Qualified Plans include special provisions
restricting Contract provisions that may otherwise be available as described
herein. Generally, Contracts issued pursuant to Qualified Plans are not
transferable except upon surrender or annuitization. Various penalty and
excise taxes may apply to contributions or distributions made in violation
of applicable limitations. Furthermore, certain withdrawal penalties and
restrictions may apply to surrenders from Qualified Contracts. (See "Tax
Treatment of Withdrawals - Qualified Contracts" below.)
On July 6, 1983, the Supreme Court decided in ARIZONA GOVERNING COMMITTEE V.
NORRIS that optional annuity benefits provided under an employer's deferred
compensation plan could not, under Title VII of the Civil Rights Act of 1964,
vary between men and women. The Contracts sold by the Company in connection
with Qualified Plans will utilize annuity tables which do not differentiate on
the basis of sex. Such annuity tables will also be available for use in
connection with certain non-qualified deferred compensation plans.
a. Tax-Sheltered Annuities
Section 403(b) of the Code permits the purchase of "tax-sheltered annuities" by
public schools and certain charitable, educational and scientific organizations
described in Section 501(c)(3) of the Code. These qualifying employers may make
contributions to the Contracts for the benefit of their employees. Such
contributions are not includible in the gross income of the employees until the
employees receive distributions from the Contracts. The amount of contributions
to the tax-sheltered annuity is limited to certain maximums imposed by the Code.
Furthermore, the Code sets forth additional restrictions governing such items as
transferability, distributions, nondiscrimination and withdrawals. (See "Tax
Treatment of Withdrawals - Qualified Contracts" and "Tax-Sheltered Annuities -
Withdrawal Limitations" below.) Any employee should obtain competent tax advice
as to the tax treatment and suitability of such an investment.
b. Government and Tax-Exempt Organization's Deferred Compensation Plans.
Under Code provisions, employees and independent contractors performing
services for state and local governments and other tax-exempt organizations
may participate in Deferred Compensation Plans. While participants in such
Plans may be permitted to specify the form of investment in which their Plan
accounts will participate, all such investments are owned by the sponsoring
employer and are subject to the claims of its creditors until December 31,
1998, or such earlier date as may be established by Plan amendment. However,
amounts deferred under a Plan created on or after August 20, 1996 and amounts
deferred under any 457 Plan after December 31, 1998 must be held in trust,
custodial account or annuity contract for the exclusive benefit of Plan
participants and their beneficiaries. The amounts deferred under a Plan which
meets the requirements of Section 457 of the Code are not taxable as income to
the participant until paid or otherwise made available to the participant or
beneficiary. As a general rule, the maximum amount which can be deferred in
any one year is the lesser of $7,500 ($8,000 beginning in 1998, as indexed for
inflation) or 33 1/3 percent of the participant's includable compensation.
However, in limited circumstances, up to $15,000 may be deferred in each of
the last three years before normal retirement age.
TAX TREATMENT OF WITHDRAWALS - QUALIFIED CONTRACTS
In the case of a withdrawal under a Qualified Contract, a ratable portion of
the amount received is taxable, generally based on the ratio of the
individual's cost basis to the individual's total accrued benefit under
the retirement plan. Special tax rules may be available for certain
distributions from a Qualified Contract. Section 72(t) of the Code imposes a
10% penalty tax on the taxable portion of any distribution from qualified
retirement plans, including Contracts issued and qualified under Code
Section (403(b)(Tax-Sheltered Annuities). To the extent amounts are not
includible in gross income because they have been rolled over to an IRA or
to another eligible Qualified Plan, no tax penalty will be imposed. The tax
penalty will not apply to the following distributions:(a) made on or after
the date on which the Owner or Annuitant (as applicable) reaches age 59 1/2;
(b) following the death or disability of the Owner or Annuitant (as applicable)
(for this purpose disability is as defined in Section 72(m) (7) of the Code);
(c) after separation from service, distributions that are part of
substantially equal periodic payments made not less frequently than annually
for the life (or life expectancy) of the Owner or Annuitant (as applicable)
or the joint lives (or joint life expectancies) of such Owner or Annuitant (as
applicable) and his or her designated Beneficiary; (d) to an Owner or
Annuitant (as applicable) who has separated from service after he has
attained age 55; (e) made to the Owner or Annuitant (as applicable) to the
extent such distributions do not exceed the amount allowable as a deduction
under Code Section 213 to the Owner or Annuitant (as applicable) for amounts
paid during the taxable year for medical care; and (f) made to an alternate
payee pursuant to a qualified domestic relations order.
TAX-SHELTERED ANNUITIES - WITHDRAWAL LIMITATIONS
The Code limits the withdrawal of amounts attributable to contributions made
pursuant to a salary reduction agreement (as defined in Section 403(b)(11) of
the Code) to circumstances only when the Owner: (1) attains age 59 1/2; (2)
separates from service; (3) dies; (4) becomes disabled (within the meaning of
Section 72(m)(7) of the Code); or (5) in the case of hardship. However,
withdrawals for hardship are restricted to the portion of the Owner's Contract
Value which represents contributions made by the Owner and does not include
any investment results. The limitations on withdrawals became effective on
January 1, 1989 and apply only to salary reduction contributions made after
December 31, 1988, to income attributable to such contributions and to income
attributable to amounts held as of December 31, 1988. The limitations on
withdrawals do not affect rollovers and transfers between certain Qualified
Plans. Owners should consult their own tax counsel or other tax adviser
regarding any distributions.
MANDATORY DISTRIBUTIONS - QUALIFIED PLANS
Generally, distributions from a qualified plan must begin no later than April
1st of the calendar year following the later of (a) the year in which the
employee attains age 70 1/2 or (b) the calendar year in which the employee
retires. Required distributions must be over a period not exceeding the
life expectancy of the individual or the joint lives or life expectancies of
the individual and his or her designated beneficiary. If the required minimum
distributions are not made, a 50% penalty tax is imposed as to the amount not
distributed.
VOTING RIGHTS
Contract Owners may instruct Great American Reserve as to the voting of
Fund shares attributable to their respective interests under the Contracts at
meetings of shareholders of the Funds. Contract Owners entitled to vote will
receive proxy material and a form on which voting instructions may be given.
Great American Reserve will vote the shares of each Sub-account held by Variable
Account attributable to the Contracts in accordance with instructions received
from Contract Owners. Shares held in each Sub-account for which timely
instructions have not been received from Contract Owners will be voted by Great
American Reserve for or against any proposition, or Great American Reserve will
abstain, in the same proportion as shares in that Sub-account for which
instructions are received. Great American Reserve will vote, or abstain from
voting, any shares that are not attributable to Contract Owners in the same
proportion as all Contract Owners in Variable Account vote or abstain. However,
if Great American Reserve determines that it is permitted to vote such shares of
the Funds in its own right, it may elect to do so, subject to the then-current
interpretation of the 1940 Act and the rules thereunder.
Under certain Variable Annuity Contracts, Participants and Annuitants have
the right to instruct the Contract Owner with respect to the number of votes
attributable to their Individual Accounts or valuation reserve. Votes
attributable to Participants and Annuitants who do not instruct the Contract
Owner will be cast by the Contract Owner for or against each proposal to be
voted upon, in the same proportion as votes for which instructions have been
received. Participants and Annuitants entitled to instruct the casting of votes
will receive a notice of each meeting of Contract Owners, and proxy solicitation
materials, and a statement of the number of votes attributable to their
participation under the Contract.
The number of shares held in a Sub-account deemed attributable to a
Contract Owner's interest under a Contract will be determined on the basis of
the value of the Accumulation Units credited to the Contract Owner's account as
of the record date. On or after the commencement of Annuity payments, the number
of attributable shares will be based on the amount of assets held to meet
annuity obligations to the payee under the Contract as of the record date.
During the annuity period, the number of votes attributable to a Contract will
generally decrease since funds set aside for Annuitants will decrease as
payments are made.
GENERAL MATTERS
PERFORMANCE INFORMATION. Performance information for the Variable Account
investment options may appear from time to time in advertisements or sales
literature. Performance information reflects only the performance of a
hypothetical investment in the Variable Account investment options during the
particular time period on which the calculations are based. Performance
information may consist of yield, effective yield, and average annual total
return quotations reflecting the deduction of all applicable charges for recent
one-year and, when applicable, five- and 10-year periods and, where less than
ten years, for the period subsequent to the date each Sub- account first became
available for investment. Additional total return quotations may be made that do
not reflect a withdrawal charge deduction (assuming no withdrawal at the end of
the illustrated period). Performance information may be shown by means of
schedules, charts or graphs. See the Statement of Additional Information for a
description of the methods used to determine yield and total return information
for the Sub-accounts.
DISTRIBUTION OF CONTRACTS. Conseco Equity Sales, Inc. ("Conseco Equity
Sales"), 11815 N. Pennsylvania Street, Carmel, IN 46032, an affiliate of Great
American Reserve, is the principal underwriter of the Contracts. Conseco Equity
Sales is a broker-dealer registered under the Securities and Exchange Act of
1934 and a member of the National Association of Securities Dealers, Inc. Sales
of the Contracts will be made by registered representatives of Conseco Equity
Sales and broker-dealers authorized to sell the Contracts. Such registered
representatives will also be licensed insurance representatives of Great
American Reserve. See the Statement of Additional Information for more
information.
CONTRACT OWNER INQUIRIES. All Contract Owner inquiries should be directed
to Great American Reserve's Administrative office address or telephone number
appearing on page 1 of this Prospectus.
LEGAL PROCEEDINGS. There are no legal proceedings to which Variable Account
is a party or to which the assets of Variable Account are subject. Neither Great
American Reserve nor Conseco Equity Sales are involved in any litigation that is
of material importance in relation to their total assets or that relates to
Variable Account.
OTHER INFORMATION. This Prospectus contains information concerning Variable
Account, Great American Reserve, and the Contracts, but does not contain all of
the information set forth in the Registration Statement and all exhibits and
schedules relating thereto, which Great American Reserve has filed with the
Securities and Exchange Commission, Washington, D.C.
Additional information may be obtained from Great American Reserve by
requesting from Great American Reserve's Variable Annuity Department, 11815 N.
Pennsylvania Street, Carmel, Indiana 46032, a Statement of Additional
Information. For convenience, the Table of Contents of the Statement of
Additional Information is provided below:
TABLE OF CONTENTS OF THE STATEMENT
OF ADDITIONAL INFORMATION
PAGE
General Information and History.......................
Independent Accountants...............................
Distribution..........................................
Calculation of Yield Quotations.......................
Calculation of Total Return
Quotations............................................
Other Performance Data................................
Financial Statements..................................
If you would like a free copy of the Statement of Additional Information
for this Prospectus, please complete this form, detach, and mail to:
Great American Reserve Insurance Company
Attn.: Variable Annuity Department
11815 N. Pennsylvania Street
Carmel, Indiana 46032
Gentlemen:
Please send me a free copy of the Statement of Additional Information for
Great American Reserve Variable Annuity Account C-Individual Variable Annuity at
the following address:
Name: --------------------------------------------------------------------------
Mailing Address: ---------------------------------------------------------------
---------------------------------------------------------------
---------------------------------------------------------------
Sincerely,
-----------------------------------------------
(Signature)
APPENDIX A
CONSECO SERIES TRUST
Conseco Series Trust is an open-end management investment company organized as a
business trust under the laws of the Commonwealth of Massachusetts on November
15, 1982. Trust shares are offered only to separate accounts of various
insurance companies to fund benefits of variable life and variable annuity
contracts. Conseco Capital Management, Inc. serves as the investment adviser.
THE ALGER AMERICAN FUND
The Alger American Fund is an open-end management investment company organized
as a business trust under the laws of the Commonwealth of Massachusetts on April
6, 1988. Trust shares are offered to separate accounts of various life insurance
companies as investment options of variable life and variable annuity contracts
and as a funding vehicle for qualified pension and retirement plans. Fred Alger
Management, Inc. serves as the investment adviser.
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
American Century Variable Portfolios, Inc. is an open-end management investment
company organized as a Maryland corporation on June 4, 1987, and is a part of
American Century Investments, a family of funds that includes nearly 70 no-load
mutual funds covering a variety of investment opportunities. The fund offers
its shares only to insurance companies to fund the benefits of variable annuity
or variable life insurance contracts. American Century Investment Management,
Inc. is the investment adviser.
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger Institutional Products Trust is an open-end management investment
company organized as a business trust under the laws of the State of Delaware
on October 17, 1995. Trust shares are offered only to separate accounts of
various insurance companies in connection with investment in and payments
under variable annuity contracts and variable life insurance contracts, as
well as to certain qualified retirement plans. The investment adviser is
Berger Associates, Inc. for the Berger IPT - 100 Fund, the Berger IPT -
Growth and Income Fund and the Berger IPT - Small Company Growth Fund. BBOI
Worldwide LLC is the investment adviser for the Berger/BIAM IPT -
International Fund.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
The Dreyfus Socially Responsible Growth Fund, Inc. is an open-end diversified,
management investment company. It was incorporated under Maryland law on
July 20, 1992, and commenced operations on October 7, 1993. The Dreyfus
Corporation serves as the Fund's investment adviser. NCM Capital Management
Group, Inc. serves as the Fund's sub-investment adviser and provides day-to-
day management of the Fund's portfolio.
DREYFUS STOCK INDEX FUND
Dreyfus Stock Index Fund is an open-end non-diversified, management investment
company. It was incorporated in the name Dreyfus Life and Annuity Index Fund,
Inc. under Maryland law on January 24, 1989, and commenced operations on
September 29, 1989. On May 1, 1994, the Fund began operating under the name
Dreyfus Stock Index Fund. The Dreyfus Corporation serves as the Fund's
manager and Mellon Equity Associates serves as the Fund's index manager.
DREYFUS VARIABLE INVESTMENT FUND
Dreyfus Variable Investment Fund is an open-end management investment company.
Trust shares are offered only to variable annuity and variable life insurance
separate accounts established by insurance companies to fund variable annuity
and variable life insurance contracts. The Dreyfus Corporation serves as the
investment adviser.
FEDERATED INSURANCE SERIES
Federated Insurance Series is an open-end management investment company
organized as a business trust under the laws of the Commonwealth of
Massachusetts on September 15, 1993. Trust shares are offered only to separate
accounts of various insurance companies to serve as the investment medium of
variable life insurance policies and variable annuity contracts issued by the
insurance companies. Federated Advisers serves as the investment adviser.
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO Variable Investment Funds, Inc. is a registered, open-end management
investment company that was organized as a Maryland corporation on August 19,
1993. Fund shares are intended to be funding vehicles for variable annuity
contracts and variable life insurance contracts to be offered by separate
accounts of certain life insurance companies. Fund shares are not available for
purchase other than through the purchase of such contracts. INVESCO Funds Group,
Inc. is the investment adviser.
JANUS ASPEN SERIES
Janus Aspen Series is an open-end management investment company organized as a
business trust under the laws of the State of Delaware on May 20, 1993. Trust
shares are offered only to separate accounts of various insurance companies
to fund the benefits of variable life and variable annuity contracts, and to
qualified retirement plans. The investment adviser and manager is Janus
Capital Corporation.
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Series Inc. is a no-load, open-end management investment
company. The Portfolios are offered only to qualified pension and retirement
plans and variable annuity and variable life insurance separate accounts
established by insurance companies to fund variable annuity contracts and
variable life insurance policies. Lazard Asset Management, a division of
Lazard Freres & Co. LLC, manages each Portfolio.
LORD ABBETT SERIES FUND, INC.
Lord Abbett Series Fund, Inc. is a diversified open-end management investment
company incorporated under the laws of Maryland on August 28, 1989. Shares of
the Fund are only offered to separate accounts of life insurance companies to
fund benefits of variable annuity contracts and variable life insurance
policies. Lord, Abbett & Co. serves as the Fund's investment manager.
MITCHELL HUTCHINS SERIES TRUST
Mitchell Hutchins Series Trust is a professionally managed open-end investment
company. Mitchell Hutchins Asset Management Inc., a wholly owned subsidiary of
PaineWebber Incorporated, provides investment advisory and administrative
services to the Portfolio.
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Neuberger & Berman Advisers Management Trust is a Delaware business trust
organized pursuant to a Trust instrument dated May 23, 1994. The Trust is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company and consists of nine separate portfolios. Each
portfolio of the Trust invests all of its net investable assets in a
corresponding series of Neuberger & Berman Advisers Managers Trust, whose
investment adviser is Neuberger & Berman Management Incorporated. Shares of the
Trust are offered to life insurance companies for allocation to certain of their
separate accounts established for the purpose of funding variable annuity
contracts and variable life insurance policies.
STRONG OPPORTUNITY FUND II, INC.
Strong Opportunity Fund II, Inc. is a diversified open-end management
investment company established as a corporation under Wisconsin law on December
28, 1990. Shares of the Fund are only offered and sold to the separate accounts
of certain insurance companies for the purpose of funding variable annuity and
variable life insurance contracts. Strong Capital Management, Inc. is the
investment adviser for the Fund.
STRONG VARIABLE INSURANCE FUNDS, INC.
Strong Variable Insurance Funds, Inc., is an open-end management investment
company and was organized as a corporation under Wisconsin law on December 28,
1990. Shares of the Fund are only offered and sold to the separate accounts of
certain insurance companies for the purpose of funding variable annuity and
variable life insurance contracts. Strong Capital Management, Inc. is the
investment adviser for the fund.
VAN ECK WORLDWIDE INSURANCE TRUST
Van Eck Worldwide Insurance Trust is an open-end management investment company
organized as a business trust under the laws of the Commonwealth of
Massachusetts on January 7, 1987. Trust shares are offered only to separate
accounts of various insurance companies to fund the benefits of variable life
and variable annuity contracts. The investment adviser and manager is Van Eck
Associates Corporation.
A full description of each of the Eligible Funds, including the investment
objectives, policies and restrictions of each of the Portfolios, is contained in
the Prospectuses of the Eligible Funds which accompany this Prospectus and
should be read carefully by a prospective purchaser before investing.
PART B
GREAT AMERICAN RESERVE
INSURANCE COMPANY
VARIABLE ANNUITY ACCOUNT C
INDIVIDUAL & GROUP VARIABLE DEFERRED ANNUITY
CONTRACTS
STATEMENT OF ADDITIONAL
INFORMATION
DATED MAY 1, 1998
OFFERED BY
GREAT AMERICAN RESERVE INSURANCE COMPANY
11815 N. PENNSYLVANIA ST., CARMEL, IN 46032
(317) 817-3700
This Statement of Additional Information is not a prospectus. It should be
read in conjunction with a Prospectus for Great American Reserve Variable
Annuity Account C ("Variable Account") - Individual Variable Deferred Annuity
Contracts or Group Variable Deferred Annuity Contracts, each dated May 1, 1998.
You can obtain a copy of a Prospectus by contacting Great American Reserve
Insurance Company ("Great American Reserve") at the address or telephone number
given above.
TABLE OF CONTENTS
Page
General Information and History.............................................
Independent Accountants.....................................................
Distribution................................................................
Calculation of Yield Quotations.............................................
Calculation of Total Return Quotations......................................
Other Performance Data......................................................
Financial Statements........................................................
GENERAL INFORMATION AND HISTORY
Great American Reserve is an indirect wholly owned subsidiary of Conseco,
Inc. (Conseco). The operations of Great American Reserve are handled by Conseco.
Conseco is a publicly owned financial services holding company, the principal
operations of which are in the development, marketing and administration of
specialized annuity and life insurance products. Conseco has its principal
offices at 11825 N. Pennsylvania Street, Carmel, Indiana 46032.
The Variable Account was established by Great American Reserve.
INDEPENDENT ACCOUNTANTS
The financial statements of Great American Reserve Variable Annuity Account
C and Great American Reserve have been examined by Coopers & Lybrand L.L.P.,
Indianapolis, Indiana, independent accountants, for the periods indicated in
their reports as stated in their opinion and have been so included in reliance
upon such opinion given upon the authority of that firm as experts in accounting
and auditing.
DISTRIBUTION
Great American Reserve continuously offers the Contracts through associated
persons of the principal underwriter for Variable Account, Conseco Equity Sales,
Inc. ("Conseco Equity Sales"), a registered broker-dealer and member of the
National Association of Securities Dealers, Inc. Conseco Equity Sales is located
at 11815 N. Pennsylvania Street, Carmel, Indiana 46032, and is an affiliate of
Great American Reserve. For the years ending December 31, 1997, 1996 and
1995, Great American Reserve paid Conseco Equity Sales total underwriting
commissions of $1,896,989, $1,930,300,and $2,258,273, respectively. In
addition, certain Contracts may be sold by life insurance/registered
representatives of other registered broker-dealers.
Conseco Equity Sales performs the sales functions relating to the Contracts
and Great American Reserve provides all administrative services. To cover the
sales expenses and administrative expenses (including such items as salaries,
rent, postage, telephone, travel, legal, actuarial, audit, office equipment and
printing), Great American Reserve makes sales and administrative deductions,
varying by type of Contract. See Contract Charges in the Prospectus.
CALCULATION OF YIELD QUOTATIONS
The Money Market Sub-account's standard yield quotations may appear in
sales material and advertising as calculated by the standard method
prescribed by rules of the Securities and Exchange Commission. Under this
method, the yield quotation is based on a seven-day period and computed as
follows: The Money Market Sub-account's daily net investment factor minus one
(1.00) is multiplied by 365 to produce an annualized yield. The annualized
yields of the seven-day period are then averaged and carried to the nearest
one-hundredth of one percent. This yield reflects investment results less
deductions for investment advisory fees and mortality and expense risk fees
but does not include deductions for any applicable annual administrative
fees. Because of these deductions, the yield for the Money Market Sub-account
will be lower than the yield for the corresponding Portfolio of the Conseco
Series Trust.
The Money Market Sub-account's effective yield may appear in sales material
and advertising for the same seven-day period, determined on a compound basis.
The effective yield is calculated by compounding the unannualized base period
return by adding one to the base period return, raising the sum to a power equal
to 365 divided by 7, and subtracting one from the result.
The yield on the Money Market Sub-account will generally fluctuate on a
daily basis. Therefore, the yield for any given past period is not an indication
or representation of future yields or rates of return. The actual yield is
affected by changes in interest rates on money market securities, average
portfolio maturity, the types and quality of portfolio securities held by the
corresponding Portfolio of the Conseco Series Trust and its operating expenses.
The Portfolios of the eligible Funds may advertise investment performance
figures, including yield. Each Sub-account's yield will be based upon a stated
30-day period and will be computed by dividing the net investment income per
share earned during the period by the maximum offering price per share on
the last day of the period, according to the following formula:
YIELD = 2 ((A-B/CD) + 1)6 -1)
Where:
A = the net investment income earned during the period by the
Portfolio.
B = the expenses accrued for the period (net of reimbursements,
if any).
C = the average daily number of accumulation units outstanding
during the period.
D = the maximum offering price per accumulation unit on the
last day of the period.
CALCULATION OF TOTAL RETURN
QUOTATIONS
Great American Reserve may include certain total return quotations for
one or more of the Portfolios of the eligible Funds in advertising, sales
literature or reports to Contract Owners or prospective purchasers. Such total
return quotations will be expressed as the average annual rate of total return
over one-, five- and 10-year periods ended as of the end of the immediately
preceding calendar quarter, and as the dollar amount of annual total return on
a year-to-year, rolling 12-month basis ended as of the end of the immediately
preceding calendar quarter.
Average annual total return quotations are computed according to the
following formula:
P (1+T)n = ERV
Where:
P = beginning purchase payment of $1,000.
T = average annual total return.
n = number of years in period.
ERV = ending redeemable value of a hypothetical $1,000 purchase
payment made at the beginning of the one-, five- or 10-year period
at the end of the one-, five- or 10-year period (or fractional
portion thereof).
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP VARIABLE DEFERRED ANNUITY
AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIODS ENDING 12/31/97:
- - ----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT SUB-ACCOUNTS(1) 10 YEARS
OR SINCE
1 YEAR 5 YEARS INCEPTION
- - ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONSECO SERIES TRUST
Asset Allocation Portfolio (2)........................................ 11.28% N/A 15.63%
Common Stock Portfolio ............................................... 12.47% 19.29% 16.50%
Corporate Bond Portfolio ............................................. 4.07% 6.98% 9.01%
Government Securities Portfolio (2)................................... 2.23% N/A 4.40%
THE ALGER AMERICAN FUND
Alger American Leveraged AllCap Portfolio (3)......................... 13.02% N/A 24.68%
Alger American Small Capitalization Portfolio (3)..................... 5.19% N/A 11.54%
Alger American Growth Portfolio (4)................................... N/A N/A 23.06%
Alger American MidCap Growth Portfolio (4)............................ N/A N/A 22.28%
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
International (4)..................................................... N/A N/A 6.92%
Value (4)............................................................. N/A N/A 26.90%
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT - 100 Fund (4)............................................. N/A N/A 12.74%
Berger IPT - Growth and Income Fund (4)............................... N/A N/A 25.26%
Berger IPT - Small Company Growth Fund (4)............................ N/A N/A 49.78%
Berger/BIAM IPT - International Fund (4).............................. N/A N/A (10.53)%
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC (3)................... 21.24% N/A 23.19%
DREYFUS STOCK INDEX FUND (3)............................................ 25.56% N/A 24.67%
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II (3)................................ 7.49% N/A 10.70%
Federated International Equity Fund II (3)............................ 3.95% N/A 5.39%
Federated Utility Fund II (3)......................................... 19.59% N/A 16.54%
JANUS ASPEN SERIES
Aggressive Growth Portfolio (3)....................................... 6.40% N/A 15.23%
Growth Portfolio (3).................................................. 15.91% N/A 19.65%
Worldwide Growth Portfolio (3)........................................ 15.35% N/A 25.21%
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio (4)................................... N/A N/A (.27)%
Partners Portfolio (4)................................................ N/A N/A 29.05%
STRONG OPPORTUNITY FUND II (4).......................................... N/A N/A 27.49%
STRONG VARIABLE INSURANCE FUNDS, INC
Growth Fund II (4) ................................................... N/A N/A 33.77%
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Hard Assets Fund (3)........................................ (7.16)% N/A 6.35%
Worldwide Bond Fund (3)............................................... (3.32)% N/A .08%
Worldwide Emerging Markets Fund (4)................................... N/A N/A (32.18)%
- - ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) No information is provided with respect to the Sub-accounts investing in
the American Century Variable Portfolios, Inc. Income and Growth Fund; the
INVESCO Variable Investment Funds, Inc. INVESCO VIF-High Yield and INVESCO
VIF-Industrial Income Portfolios; the Dreyfus Variable Investment Fund
International Value and Disciplined Stock Portfolios; the Lazard Retirement
Series, Inc. Lazard Retirement Equity and Lazard Retirement Small Cap
Portfolios; the Lord Abbett Series Fund,Inc. Growth and Income Portfolio;
the Mitchell Hutchins Series Trust Growth and Income Portfolio; and the
Van Eck Worldwide Insurance Trust Worldwide Real Estate Fund because
these Funds were not available as of December 31, 1997.
(2) Since inception (May 1, 1993).
(3) Since inception (June 1, 1995).
(4) Since inception (May 1, 1997).
- - ------------------------------------------------------------------------------
INDIVIDUAL FLEXIBLE PREMIUM PAYMENT ANNUITY
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIODS ENDING 12/31/97:
- - ----------------------------------------------------------------------------------------------------------------------------------
- - ----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT SUB-ACCOUNTS(1) 10 YEARS
OR SINCE
1 YEAR 5 YEARS INCEPTION
- - ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONSECO SERIES TRUST
Asset Allocation Portfolio (2)........................................ 8.09% N/A 15.38%
Common Stock Portfolio ............................................... 4.24% 19.04% 16.69%
Corporate Bond Portfolio ............................................. 1.08% 6.76% 9.19%
Government Securities Portfolio (2)................................... (.70)% N/A 3.97%
THE ALGER AMERICAN FUND
Alger American Leveraged AllCap Portfolio (3)......................... 9.78% N/A 24.20%
Alger American Small Capitalization Portfolio (3)..................... 2.17% N/A 11.13%
Alger American Growth Portfolio (4)................................... N/A N/A 17.87%
Alger American MidCap Growth Portfolio (4)............................ N/A N/A 17.13%
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
International (4)..................................................... N/A N/A 2.41%
Value (4)............................................................. N/A N/A 21.55%
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT - 100 Fund (4)............................................. N/A N/A 7.99%
Berger IPT - Growth and Income Fund (4)............................... N/A N/A 19.99%
Berger IPT - Small Company Growth Fund (4)............................ N/A N/A 43.47%
Berger/BIAM IPT - International Fund (4).............................. N/A N/A (14.30)%
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC (3)................... 17.76% N/A 22.74%
DREYFUS STOCK INDEX FUND (3)............................................ 21.96% N/A 24.21%
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II (3)................................ 4.40% N/A 10.27%
Federated International Equity Fund II (3)............................ .97% N/A 4.98%
Federated Utility Fund II (3)......................................... 16.16% N/A 16.09%
JANUS ASPEN SERIES
Aggressive Growth Portfolio (3)....................................... 3.34% N/A 14.79%
Growth Portfolio (3).................................................. 12.59% N/A 19.18%
Worldwide Growth Portfolio (3)........................................ 12.04% N/A 24.73%
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio (4)................................... N/A N/A (4.47)%
Partners Portfolio (4)................................................ N/A N/A 23.61%
STRONG OPPORTUNITY FUND II (4).......................................... N/A N/A 22.12%
STRONG VARIABLE INSURANCE FUNDS, INC.
Growth Fund II (4).................................................... N/A N/A 28.14%
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Hard Assets Fund (3)........................................ (9.83)% N/A 5.89%
Worldwide Bond Fund (3)............................................... (6.10)% N/A (.36)%
Worldwide Emerging Markets Fund (4)................................... N/A N/A (35.05)%
- - ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) No information is provided with respect to the Sub-accounts investing in
the American Century Variable Portfolios, Inc. Income and Growth Fund; the
INVESCO Variable Investment Funds, Inc. INVESCO VIF-High Yield and INVESCO
VIF-Industrial Income Portfolios; the Dreyfus Variable Investment Fund
International Value and Disciplined Stock Portfolios; the Lazard Retirement
Series, Inc. Lazard Retirement Equity and Lazard Retirement Small Cap
Portfolios; the Lord Abbett Series Fund,Inc. Growth and Income Portfolio;
the Mitchell Hutchins Series Trust Growth and Income Portfolio; and the
Van Eck Worldwide Insurance Trust Worldwide Real Estate Fund because
these Funds were not available as of December 31, 1997.
(2) Since inception (May 1, 1993).
(3) Since inception (June 1, 1995).
(4) Since inception (May 1, 1997).
INDIVIDUAL SINGLE PREMIUM PAYMENT ANNUITY
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIODS ENDING 12/31/97:
- - ----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT SUB-ACCOUNTS(1) 10 YEARS
OR SINCE
1 YEAR 5 YEARS INCEPTION
- - ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONSECO SERIES TRUST
Asset Allocation Portfolio (2)........................................ 8.40% N/A 15.64%
Common Stock Portfolio ............................................... 9.56% 19.31% 16.72%
Corporate Bond Portfolio ............................................. 1.37% 7.00% 9.22%
Government Securities Portfolio (2)................................... (.42)% N/A 4.46%
THE ALGER AMERICAN FUND
Alger American Leveraged AllCap Portfolio (3)......................... 10.09% N/A 24.69%
Alger American Small Capitalization Portfolio (3)..................... 2.47% N/A 11.57%
Alger American Growth Portfolio (4)................................... N/A N/A 18.39%
Alger American MidCap Growth Portfolio (4)............................ N/A N/A 17.64%
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
International (4)..................................................... N/A N/A 2.80%
Value (4)............................................................. N/A N/A 22.00%
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT - 100 Fund (4)............................................. N/A N/A 8.39%
Berger IPT - Growth and Income Fund (4)............................... N/A N/A 20.43%
Berger IPT - Small Company Growth Fund (4)............................ N/A N/A 44.00%
Berger/BIAM IPT - International Fund (4).............................. N/A N/A (13.97)%
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC (3)................... 18.10% N/A 23.20%
DREYFUS STOCK INDEX FUND (3)............................................ 22.31% N/A 24.68%
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II (3)................................ 4.71% N/A 10.71%
Federated International Equity Fund II (3)............................ 1.26% N/A 5.41%
Federated Utility Fund II (3)......................................... 16.49% N/A 16.56%
JANUS ASPEN SERIES
Aggressive Growth Portfolio (3)....................................... 3.64% N/A 15.25%
Growth Portfolio (3).................................................. 12.91% N/A 19.66%
Worldwide Growth Portfolio (3)........................................ 12.37% N/A 25.23%
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio (4)................................... N/A N/A (4.11)%
Partners Portfolio (4)................................................ N/A N/A 24.07%
STRONG OPPORTUNITY FUND (4)............................................. N/A N/A 22.57%
STRONG VARIABLE INSURANCE FUNDS, INC.
Growth Fund II (4).................................................... N/A N/A 28.61%
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Hard Assets Fund (3)........................................ (9.56)% N/A 6.32%
Worldwide Bond Fund (3)............................................... (5.82)% N/A .05%
Worldwide Emerging Markets Fund (4)................................... N/A N/A (34.73)%
- - ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) No information is provided with respect to the Sub-accounts investing in
the American Century Variable Portfolios, Inc. Income and Growth Fund; the
INVESCO Variable Investment Funds, Inc. INVESCO VIF-High Yield and INVESCO
VIF-Industrial Income Portfolios; the Dreyfus Variable Investment Fund
International Value and Disciplined Stock Portfolios; the Lazard Retirement
Series, Inc. Lazard Retirement Equity and Lazard Retirement Small Cap
Portfolios; the Lord Abbett Series Fund,Inc. Growth and Income Portfolio;
the Mitchell Hutchins Series Trust Growth and Income Portfolio; and the
Van Eck Worldwide Insurance Trust Worldwide Real Estate Fund because
these Funds were not available as of December 31, 1997.
(2) Since inception (May 1, 1993).
(3) Since inception (June 1, 1995).
(4) Since inception (May 1, 1997).
OTHER PERFORMANCE DATA
Great American Reserve may from time to time also illustrate average annual
total returns in a non-standard format as appears in the following "Gross
Average Annual Total Returns" tables, in conjunction with the standard format
described above. The non-standard format will be identical to the standard
format except that the withdrawal charge percentage will be assumed to be zero.
GROUP VARIABLE DEFERRED ANNUITY
<TABLE>
<CAPTION>
GROSS AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIODS ENDING 12/31/97:
- - ----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT SUB-ACCOUNTS(1) 10 YEARS
OR SINCE
1 YEAR 5 YEARS INCEPTION
- - ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONSECO SERIES TRUST
Asset Allocation Portfolio (2)........................................ 16.68% N/A 16.37%
Common Stock Portfolio ............................................... 17.93% 20.02% 16.76%
Corporate Bond Portfolio ............................................. 9.11% 7.64% 9.26%
Government Securities Portfolio (2)................................... 7.19% N/A 5.08%
THE ALGER AMERICAN FUND
Alger American Leveraged AllCap Portfolio (3)......................... 18.49% N/A 26.98%
Alger American Small Capitalization Portfolio (3)..................... 10.28% N/A 13.57%
Alger American Growth Portfolio (4)................................... N/A N/A 31.91%
Alger American MidCap Growth Portfolio (4)............................ N/A N/A 31.08%
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
International (4)..................................................... N/A N/A 14.62%
Value (4)............................................................. N/A N/A 36.02%
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT - 100 Fund (4)............................................. N/A N/A 20.85%
Berger IPT - Growth and Income Fund (4)............................... N/A N/A 34.27%
Berger IPT - Small Company Growth Fund (4)............................ N/A N/A 60.53%
Berger/BIAM IPT - International Fund (4).............................. N/A N/A (4.07)%
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC (3)................... 27.11% N/A 25.42%
DREYFUS STOCK INDEX FUND (3)............................................ 31.64% N/A 26.93%
EDERATED INSURANCE SERIES
Federated High Income Bond Fund II (3)................................ 12.70% N/A 12.76%
Federated International Equity Fund II (3)............................ 8.99% N/A 7.35%
Federated Utility Fund II (3)......................................... 25.38% N/A 18.71%
JANUS ASPEN SERIES
Aggressive Growth Portfolio (3)....................................... 11.54% N/A 17.37%
Growth Portfolio (3).................................................. 21.53% N/A 21.87%
Worldwide Growth Portfolio (3)........................................ 20.94% N/A 27.53%
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio (4)................................... N/A N/A 6.92%
Partners Portfolio (4)................................................ N/A N/A 38.32%
STRONG OPPORTUNITY FUND (4)............................................. N/A N/A 36.66%
STRONG VARIABLE INSURANCE TRUST
Growth Fund II (4).................................................... N/A N/A 43.38%
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Hard Assets Fund (3)........................................ (2.66)% N/A 8.28%
Worldwide Bond Fund (3)............................................... 1.37% N/A 1.90%
Worldwide Emerging Markets Fund (4)................................... N/A N/A (27.28)%
- - ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) No information is provided with respect to the Sub-accounts investing in
the American Century Variable Portfolios, Inc. Income and Growth Fund; the
INVESCO Variable Investment Funds, Inc. INVESCO VIF-High Yield and INVESCO
VIF-Industrial Income Portfolios; the Dreyfus Variable Investment Fund
International Value and Disciplined Stock Portfolios; the Lazard Retirement
Series, Inc. Lazard Retirement Equity and Lazard Retirement Small Cap
Portfolios; the Lord Abbett Series Fund,Inc. Growth and Income Portfolio;
the Mitchell Hutchins Series Trust Growth and Income Portfolio; and the
Van Eck Worldwide Insurance Trust Worldwide Real Estate Fund because
these Funds were not available as of December 31, 1997.
(2) Since inception (May 1, 1993)
(3) Since inception (June 1, 1995)
(4) Since inception (May 1, 1997)
INDIVIDUAL FLEXIBLE PREMIUM PAYMENT ANNUITY
<TABLE>
<CAPTION>
GROSS AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIODS ENDING 12/31/97:
- - ----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT SUB-ACCOUNTS(1) 10 YEARS
OR SINCE
1 YEAR 5 YEARS INCEPTION
- - ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONSECO SERIES TRUST
Asset Allocation Portfolio (2)........................................ 16.68% N/A 16.37%
Common Stock Portfolio ............................................... 17.93% 20.02% 16.76%
Corporate Bond Portfolio ............................................. 9.11% 7.64% 9.26%
Government Securities Portfolio (2)................................... 7.19% N/A 8.08%
THE ALGER AMERICAN FUND
Alger American Leveraged AllCap Portfolio (3)......................... 18.49% N/A 26.98%
Alger American Small Capitalization Portfolio (3)..................... 10.28% N/A 13.57%
Alger American Growth Portfolio (4)................................... N/A N/A 31.91%
Alger American MidCap Growth Portfolio (4)............................ N/A N/A 31.08%
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
International (4)..................................................... N/A N/A 14.62%
Value (4)............................................................. N/A N/A 36.02%
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT - 100 Fund (4)............................................. N/A N/A 20.85%
Berger IPT - Growth and Income Fund (4)............................... N/A N/A 34.27%
Berger IPT - Small Company Growth Fund (4)............................ N/A N/A 60.53%
Berger/BIAM IPT - International Fund (4).............................. N/A N/A (4.07)%
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC (3)................... 27.11% N/A 25.42%
DREYFUS STOCK INDEX FUND (3)............................................ 31.64% N/A 26.93%
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II (3)................................ 12.70% N/A 12.76%
Federated International Equity Fund II (3)............................ 8.99% N/A 7.35%
Federated Utility Fund II (3)......................................... 25.38% N/A 18.71%
JANUS ASPEN SERIES
Aggressive Growth Portfolio (3)....................................... 11.54% N/A 17.37%
Growth Portfolio (3).................................................. 21.53% N/A 21.87%
Worldwide Growth Portfolio (3)........................................ 20.94% N/A 27.53%
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio (4)................................... N/A N/A 6.92%
Partners Portfolio (4)................................................ N/A N/A 38.32%
STRONG OPPORTUNITY FUND II (4).......................................... N/A N/A 36.66%
STRONG VARIABLE INSURANCE FUNDS, INC.
Growth Fund II (4).................................................... N/A N/A 43.38%
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Hard Assets Fund (3)........................................ (2.66)% N/A 8.28%
Worldwide Bond Fund (3)............................................... 1.37% N/A 1.90%
Worldwide Emerging Markets Fund (4)................................... N/A N/A (27.28)%
- - ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) No information is provided with respect to the Sub-accounts investing in
the American Century Variable Portfolios, Inc. Income and Growth Fund; the
INVESCO Variable Investment Funds, Inc. INVESCO VIF-High Yield and INVESCO
VIF-Industrial Income Portfolios; the Dreyfus Variable Investment Fund
International Value and Disciplined Stock Portfolios; the Lazard Retirement
Series, Inc. Lazard Retirement Equity and Lazard Retirement Small Cap
Portfolios; the Lord Abbett Series Fund,Inc. Growth and Income Portfolio;
the Mitchell Hutchins Series Trust Growth and Income Portfolio; and the
Van Eck Worldwide Insurance Trust Worldwide Real Estate Fund because
these Funds were not available as of December 31, 1997.
(2) Since inception (May 1, 1993).
(3) Since inception (June 1, 1995).
(4) Since inception (May 1, 1997).
INDIVIDUAL SINGLE PREMIUM PAYMENT ANNUITY
<TABLE>
<CAPTION>
GROSS AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIODS ENDING 12/31/97:
- - ----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT SUB-ACCOUNTS(1) 10 YEARS
OR SINCE
1 YEAR 5 YEARS INCEPTION
- - ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONSECO SERIES TRUST
Asset Allocation Portfolio (2)........................................ 16.68% N/A 16.37%
Common Stock Portfolio ............................................... 17.93% 20.02% 16.76%
Corporate Bond Portfolio ............................................. 9.11% 7.64% 9.26%
Government Securities Portfolio (2)................................... 7.19% N/A 5.08%
THE ALGER AMERICAN FUND
Alger American Leveraged AllCap Portfolio (3)......................... 18.49% N/A 26.98%
Alger American Small Capitalization Portfolio (3)..................... 10.28% N/A 13.57%
Alger American Growth Portfolio (4)................................... N/A N/A 31.91%
Alger American MidCap Growth Portfolio (4)............................ N/A N/A 31.08%
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
International (4)..................................................... N/A N/A 14.62%
Value (4)............................................................. N/A N/A 36.02%
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT - 100 Fund (4)............................................. N/A N/A 20.85%
Berger IPT - Growth and Income Fund (4)............................... N/A N/A 34.27%
Berger IPT - Small Company Growth Fund (4)............................ N/A N/A 60.53%
Berger/BIAM IPT - International Fund (4).............................. N/A N/A (4.07)%
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC (3)................... 27.11% N/A 25.42%
DREYFUS STOCK INDEX FUND (3)............................................ 31.64% N/A 26.93%
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II (3)................................ 12.70% N/A 12.76%
Federated International Equity Fund II (3)............................ 8.99% N/A 7.35%
Federated Utility Fund II (3)......................................... 25.38% N/A 18.71%
JANUS ASPEN SERIES
Aggressive Growth Portfolio (3)....................................... 11.54% N/A 17.37%
Growth Portfolio (3).................................................. 21.53% N/A 21.87%
Worldwide Growth Portfolio (3)........................................ 20.94% N/A 27.53%
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio (4)................................... N/A N/A 6.92%
Partners Portfolio (4)................................................ N/A N/A 38.32%
STRONG OPPORTUNITY FUND II (4).......................................... N/A N/A 36.66%
STRONG VARIABLE INSURANCE FUNDS, INC.
Growth Fund II (4).................................................... N/A N/A 43.38%
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Hard Assets Fund (3)........................................ (2.66)% N/A 8.28%
Worldwide Bond Fund (3)............................................... 1.37 % N/A 1.90%
Worldwide Emerging Markets Fund (4)................................... N/A N/A (27.28)%
- - ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) No information is provided with respect to the Sub-accounts investing in
the American Century Variable Portfolios, Inc. Income and Growth Fund; the
INVESCO Variable Investment Funds, Inc. INVESCO VIF-High Yield and INVESCO
VIF-Industrial Income Portfolios; the Dreyfus Variable Investment Fund
International Value and Disciplined Stock Portfolios; the Lazard Retirement
Series, Inc. Lazard Retirement Equity and Lazard Retirement Small Cap
Portfolios; the Lord Abbett Series Fund,Inc. Growth and Income Portfolio;
the Mitchell Hutchins Series Trust Growth and Income Portfolio; and the
Van Eck Worldwide Insurance Trust Worldwide Real Estate Fund because
these Funds were not available as of December 31, 1997.
(2) Since inception (May 1, 1993).
(3) Since inception (June 1, 1995).
(4) Since inception (May 1, 1997).
All non-standard performance data will only be advertised if the standard
performance data for the same period, as well as for the required periods, is
also illustrated.
Performance data for the Variable Account investment options may be
compared in advertisements, sales literature and reports to Contract Owners,
with the investment returns of various mutual funds, stocks, bonds, certificates
of deposit, tax free bonds, or common stock and bond indices, and other groups
of variable annuity separate accounts or other investment products tracked by
Morningstar, Inc., a widely used independent research firm which ranks mutual
funds and other investment companies by overall performance, investment
objectives, and assets, or tracked by other services, companies, publications,
or persons who rank such investment companies on overall performance or other
criteria.
Reports and promotional literature may also contain other information,
including the effect of tax-deferred compounding on an investment options
performance returns, or returns in general, which may be illustrated by graphs,
charts or otherwise, and which may include a comparison, at various points in
time, of the return from an investment in a Contract (or returns in general) on
a tax-deferred basis (assuming one or more tax rates) with the return on a
taxable basis.
Reports and promotional literature may also contain the ratings Great
American Reserve has received from independent rating agencies. However, Great
American Reserve does not guarantee the investment performance of the Variable
Account investment options.
FINANCIAL STATEMENTS
Audited Financial Statements of Great American Reserve Variable Annuity Account
C and Great American Reserve Insurance Company as of December 31, 1997 are
included here.
GREAT AMERICAN RESERVE VARIABLE ANNUITY ACCOUNT C
Statement of Assets and Liabilities
December 31, 1997
<TABLE>
<CAPTION>
==============================================================================================================================
SHARES COST VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments in portfolio shares, at net asset value (Note 2):
The Alger American Fund:
Leveraged AllCap Portfolio ................................................... 31,149.0 $ 627,283 $ 721,723
Small Capitalization Portfolio ............................................... 51,387.9 2,133,355 2,248,222
Growth Portfolio ............................................................. 3,400.8 147,062 145,417
MidCap Growth Portfolio ...................................................... 530.1 14,048 12,818
American Century Variable Portfolios, Inc.:
International Fund ........................................................... 15.3 108 105
Value Fund ................................................................... 3,395.4 23,457 23,530
Berger Institutional Products Trust:
100 Fund ..................................................................... 4,313.1 50,531 47,919
Growth and Income Fund ....................................................... 5,859.7 79,428 78,461
Small Company Growth Fund .................................................... 222.2 2,769 2,679
BIAM International Fund ...................................................... 306.5 3,000 3,000
Conseco Series Trust:
Asset Allocation Portfolio ................................................... 1,059,444.1 13,780,610 14,112,491
Common Stock Portfolio ....................................................... 9,462,810.9 180,979,513 190,800,269
Corporate Bond Portfolio ..................................................... 1,573,532.4 15,681,386 15,948,522
Government Securities Portfolio .............................................. 50,894.5 606,253 612,776
Money Market Portfolio ....................................................... 4,430,896.2 4,430,896 4,430,896
The Dreyfus Socially Responsible Growth Fund, Inc. ............................. 25,868.2 601,798 645,929
Dreyfus Stock Index Fund ....................................................... 217,913.6 4,755,534 5,611,274
Federated Insurance Series:
High Income Bond Fund II ..................................................... 12,954.7 134,700 141,854
International Equity Fund II ................................................. 11,543.4 131,364 141,638
Utility Fund II .............................................................. 21,472.4 254,142 306,840
Janus Aspen Series:
Aggressive Growth Portfolio .................................................. 84,393.8 1,550,929 1,734,293
Growth Portfolio ............................................................. 92,721.0 1,505,625 1,713,484
Worldwide Growth Portfolio ................................................... 398,432.2 8,341,433 9,319,329
Neuberger & Berman Advisers Management Trust:
Partners Portfolio ........................................................... 3,632.5 73,154 74,830
Strong Variable Insurance Funds, Inc.:
Growth Fund II ............................................................... 408.3 5,116 5,084
Strong Opportunity Fund II ..................................................... 232.5 5,017 5,046
The Van Eck Worldwide Insurance Trust:
Worldwide Hard Assets Fund (formerly Gold and Natural Resources Fund) (Note 1) 21,974.4 337,507 345,437
Worldwide Bond Fund .......................................................... 1,585.2 17,081 17,422
Worldwide Emerging Markets Fund .............................................. 7,299.3 92,326 80,292
- ------------------------------------------------------------------------------------------------------------------------------
Total assets ............................................................................................. 249,331,580
Liabilities:
Amounts due to Great American Reserve Insurance Company ....................................................... 67,697
- ------------------------------------------------------------------------------------------------------------------------------
Net assets (Note 6) ....................................................................................... $249,263,883
==============================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
GREAT AMERICAN RESERVE VARIABLE ANNUITY ACCOUNT C
Statement of Assets and Liabilities - Continued
December 31, 1997
<TABLE>
<CAPTION>
================================================================================================================================
UNITS UNIT VALUE REPORTED VALUE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net assets attributable to:
Contract owners' deferred annuity reserves:
The Alger American Fund:
Leveraged AllCap Portfolio ................................................... 388,810.1 $ 1.854611 $ 721,092
Small Capitalization Portfolio ............................................... 1,616,357.8 1.389672 2,246,208
Growth Portfolio ............................................................. 120,647.8 1.204209 145,285
Midcap Growth Portfolio ...................................................... 10,680.1 1.199131 12,807
American Century Variable Portfolios, Inc.:
International Fund ........................................................... 95.3 1.095879 104
Value Fund ................................................................... 19,126.3 1.229266 23,511
Berger Institutional Products Trust:
100 Fund ..................................................................... 42,167.4 1.135520 47,882
Growth and Income Fund ....................................................... 64,325.5 1.218651 78,390
Small Company Growth Fund .................................................... 1,948.6 1.373833 2,677
BIAM International Fund ...................................................... 3,085.3 0.972478 3,000
Conseco Series Trust:
Asset Allocation Portfolio ................................................... 6,907,154.2 2.030312 14,023,678
Common Stock Portfolio
Qualified .................................................................. 8,714,597.9 21.147874 184,295,223
Nonqualified ............................................................... 274,648.4 16.740338 4,597,707
Corporate Bond Portfolio
Qualified .................................................................. 2,784,065.4 5.444823 15,158,742
Nonqualified ............................................................... 125,556.6 5.231509 656,850
Government Securities Portfolio .............................................. 485,630.6 1.260680 612,225
Money Market Portfolio
Qualified .................................................................. 1,592,955.1 2.708158 4,313,974
Nonqualified ............................................................... 31,370.5 2.708157 84,956
The Dreyfus Socially Responsible Growth Fund, Inc .............................. 359,437.4 1.796406 645,696
Dreyfus Stock Index Fund ....................................................... 3,025,807.1 1.852833 5,606,316
Federated Insurance Series:
High Income Bond Fund II ..................................................... 103,898.2 1.364141 141,732
International Equity Fund II ................................................. 117,785.1 1.201439 141,512
Utility Fund II .............................................................. 196,752.5 1.558157 306,571
Janus Aspen Series:
Aggressive Growth Portfolio .................................................. 1,145,154.2 1.513110 1,732,744
Growth Portfolio ............................................................. 1,026,608.8 1.667600 1,711,973
Worldwide Growth Portfolio ................................................... 4,929,501.8 1.875562 9,245,587
Neuberger & Berman Advisers Management Trust:
Partners Portfolio ........................................................... 60,137.4 1.243195 74,763
Strong Variable Insurance Funds, Inc.:
Growth Fund II ............................................................... 3,988.7 1.273544 5,080
Strong Opportunity Fund II ..................................................... 4,088.5 1.233151 5,042
The Van Eck Worldwide Insurance Trust:
Worldwide Hard Assets Fund (formerly Gold and Natural Resources Fund) (Note 1) 280,959.7 1.228390 345,128
Worldwide Bond Fund .......................................................... 16,578.1 1.049963 17,406
Worldwide Emerging Markets Fund .............................................. 99,333.4 0.807583 80,220
Worldwide Hard Assets Fund (Note 1) .......................................... 210.0 1.499749 316
- --------------------------------------------------------------------------------------------------------------------------------
Net assets attributable to contract owners' deferred annuity reserves .................................... 247,084,397
- --------------------------------------------------------------------------------------------------------------------------------
Contract owners' annuity payment reserves:
Conseco Series Trust:
Asset Allocation Portfolio ................................................................................. 89,824
Common Stock Portfolio
Qualified ................................................................................................ 1,899,084
Nonqualified ............................................................................................. 21,320
Corporate Bond Portfolio
Qualified ................................................................................................ 96,856
Money Market Portfolio
Qualified ................................................................................................ 44,383
Janus Aspen Worldwide Growth Portfolio ....................................................................... 28,019
- --------------------------------------------------------------------------------------------------------------------------------
Net assets attributable to contract owners' annuity payment reserves ................................... 2,179,486
- --------------------------------------------------------------------------------------------------------------------------------
Net assets (Note 6) .................................................................................. $249,263,883
================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
GREAT AMERICAN RESERVE VARIABLE ANNUITY ACCOUNT C
Statements of Operations
For the Years Ended December 31, 1997 and 1996
<TABLE>
<CAPTION>
=====================================================================================================================
1997 1996
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment income:
Dividends from investments in portfolio shares ........................................ $ 48,081,385 $33,529,312
Expenses:
Mortality and expense risk fees ....................................................... 1,556,503 1,133,054
- ---------------------------------------------------------------------------------------------------------------------
Net investment income ............................................................... 46,524,882 32,396,258
- ---------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized appreciation (depreciation) of
investments:
Net realized gains on sales of investments in portfolio shares ........................ 2,417,325 1,468,389
Net change in unrealized appreciation (depreciation) of investments in portfolio shares (14,329,631) 17,278,325
- ---------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments in portfolio shares .................................. (11,912,306) 18,746,714
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations ........................................ $ 34,612,576 $51,142,972
=====================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets
For the Years Ended December 31, 1997 and 1996
<TABLE>
<CAPTION>
========================================================================================================================
1997 1996
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Changes from operations:
Net investment income ................................................................. $ 46,524,882 $ 32,396,258
Net realized gains on sales of investments in portfolio shares ........................ 2,417,325 1,468,389
Net change in unrealized appreciation (depreciation) of investments in portfolio shares (14,329,631) 17,278,325
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations .......................................... 34,612,576 51,142,972
- ------------------------------------------------------------------------------------------------------------------------
Changes from principal transactions:
Net contract purchase payments ........................................................ 26,160,248 20,830,794
Contract redemptions .................................................................. (14,213,522) (10,807,460)
Net transfers from fixed account ...................................................... 4,514,784 4,929,986
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from principal transactions .............................. 16,461,510 14,953,320
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets ........................................................ 51,074,086 66,096,292
- ------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of year ........................................................... 198,189,797 132,093,505
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (Note 6) ................................................ $ 249,263,883 $ 198,189,797
========================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
GREAT AMERICAN RESERVE VARIABLE ANNUITY ACCOUNT C
Notes to Financial Statements
December 31, 1997
================================================================================
(1) General
Great American Reserve Variable Annuity Account C ("Account C") was
established in 1980 as a segregated investment account for individual and group
variable annuity contracts which are registered under the Securities Act of
1933. Account C is registered under the Investment Company Act of 1940, as
amended (the "Act"), as a unit investment trust. Account C was originally
registered with the U.S. Securities and Exchange Commission as a diversified
open-end management investment company under the Act. Effective May 1, 1993,
Account C was restructured into a single unit investment trust which invested
solely in shares of the portfolios of the Conseco Series Trust, a diversified
open-end management investment company.
The operations of Account C are included in the operations of Great
American Reserve Insurance Company (the "Company") pursuant to the provisions of
the Texas Insurance Code. The Company is an indirect wholly owned subsidiary of
Conseco, Inc., a publicly-held specialized financial services holding company
listed on the New York Stock Exchange.
Effective June 1, 1995, or May 1, 1997, the following investment options
were available:
THE ALGER AMERICAN FUND
Leveraged AllCap Portfolio
Small Capitalization Portfolio
Growth Portfolio (May 1, 1997)
MidCap Growth Portfolio (May 1, 1997)
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC. (MAY 1, 1997)
International Fund
Value Fund
BERGER INSTITUTIONAL PRODUCTS TRUST (MAY 1, 1997)
100 Fund
Growth and Income Fund
Small Company Growth Fund
BIAM International Fund
CONSECO SERIES TRUST
Asset Allocation Portfolio
Common Stock Portfolio
Corporate Bond Portfolio
Government Securities Portfolio
Money Market Portfolio
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
DREYFUS STOCK INDEX FUND
FEDERATED INSURANCE SERIES
High Income Bond Fund II
International Equity Fund II
Utility Fund II
JANUS ASPEN SERIES
Aggressive Growth Portfolio
Growth Portfolio
Worldwide Growth Portfolio
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST (MAY 1,1997)
Limited Maturity Bond Portfolio
Partners Portfolio
STRONG VARIABLE INSURANCE FUNDS, INC. (MAY 1, 1997)
Growth Fund II
STRONG OPPORTUNITY FUND II (MAY 1, 1997)
THE VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Hard Assets Fund (formerly Gold and
Natural Resources Fund)
Worldwide Bond Fund
Worldwide Emerging Markets Fund (May 1, 1997)
Van Eck Worldwide Insurance Trust terminated the Worldwide Hard Assets
Fund on May 1, 1997 and the Gold and Natural Resources Fund was renamed the
Worldwide Hard Assets Fund. The remaining units in the terminated fund relate to
contract owners who have not transferred out.
The financial statements have been prepared in accordance with generally
accepted accounting principles and, as such, include amounts based on informed
estimates and judgements of management with consideration given to materiality.
Actual results could differ from those estimates.
(2) Summary of Significant Accounting Policies
INVESTMENT VALUATION, TRANSACTIONS AND INCOME
Investments in portfolio shares are valued using the net asset value of
the respective portfolios at the end of each New York Stock Exchange business
day. Investment share transactions are accounted for on a trade date basis (the
date the order to purchase or redeem shares is executed) and dividend income is
recorded on the ex-dividend date. The cost of investments in portfolio shares
sold is determined on a first-in first-out basis. Account C does not hold any
investments which are restricted as to resale.
Net investment income and net realized gains (losses) and unrealized
appreciation (depreciation) on investments are allocated to the contracts on
each valuation date based on each contract's pro rata share of the assets of
Account C as of the beginning of each valuation date.
FEDERAL INCOME TAXES
No provision for federal income taxes has been made in the accompanying
financial statements because the operations of Account C are included in the
total operations of the Company, which is treated as a life insurance company
for federal income tax purposes under the Internal Revenue Code. Net investment
income and realized gains (losses) are retained in Account C and are not taxable
until received by the contract owner or beneficiary in the form of annuity
payments or other distributions.
5
<PAGE>
GREAT AMERICAN RESERVE VARIABLE ANNUITY ACCOUNT C
Notes to Financial Statements - Continued
December 31, 1997
================================================================================
ANNUITY RESERVES
Deferred annuity contract reserves are comprised of net contract purchase
payments less redemptions and benefits. These reserves are adjusted daily for
the net investment income and net realized gains (losses) and unrealized
appreciation (depreciation) on investments.
Annuity payment reserves for contracts under which contract owners are
receiving periodic retirement payments are computed according to applicable
actuarial tables. The assumed net investment rate is equal to the assumed rate
of accumulation. The annuity unit values for periodic retirement payments were
as shown below.
DECEMBER 31, DECEMBER 31,
1997 1996
Conseco Series Trust:
Asset Allocation ............................ $ 0.999 $ N/A
Common Stock
Qualified ................................. 6.600 5.793
Nonqualified .............................. 6.111 5.363
Corporate Bond
Qualified ................................. 4.934 4.630
Nonqualified .............................. 4.937 N/A
Money Market
Qualified ................................. 1.012 1.003
Janus Aspen Worldwide Growth .................. 0.999 1.139
================================================================================
(3) Purchases and Sales of Investments in Portfolio Shares
The aggregate cost of purchases of investments in portfolio shares were
$80,455,901 and $59,138,584 for the years ended December 31, 1997 and 1996,
respectively. The aggregate proceeds from sales of investments in portfolio
shares were $17,579,585 and $11,667,690 for the years ended December 31, 1997
and 1996, respectively.
(4) Deductions and Expenses
Although periodic retirement payments to contract owners vary according to
the investment performance of the portfolios, such payments are not affected by
mortality or expense experience because the Company assumes the mortality and
expense risks under the contracts.
The mortality risk assumed by the Company results from the life annuity
payment option in the contracts in which the Company agrees to make annuity
payments regardless of how long a particular annuitant or other payee lives. The
annuity payments are determined in accordance with annuity purchase rate
provisions established at the time the contracts are issued. Based on the
actuarial determination of expected mortality, the Company is required to fund
any deficiency in the annuity payment reserves from its general account assets.
The expense risk assumed by the Company is the risk that the deductions
for sales and administrative expenses may prove insufficient to cover the actual
sales and administrative expenses.
The Company deducts daily from Account C a fee, which is equal on an
annual basis to 1.00 percent of the daily value of the total investments of
Account C, for assuming the mortality and expense risks except for the Conseco
Series Trust Common Stock, Corporate Bond, and Money Market portfolios which are
0.64 percent, 0.74 percent and 0.99 percent, respectively. These fees were
$1,556,503 and $1,133,054 for the years ended December 31, 1997 and 1996,
respectively.
Pursuant to an agreement between Account C and the Company (which may be
terminated by the Company), the Company provides sales and administrative
services to Account C, as well as a minimum death benefit prior to retirement
for certain contracts. Under individual contracts and group deferred
compensation contracts, the Company may deduct a percentage of amounts
surrendered to cover sales expenses. The percentage varies up to 8.00 percent
based on the type of contract and the number of years the contract has been
held. In addition, the Company deducts units from certain contracts annually and
upon full surrender to cover an administrative fee of $15, $20, or $25.
Under group contracts no longer being sold, the Company deducts a
percentage of the renewal contract purchase payments to cover sales and
administrative expenses and the minimum death benefit prior to retirement of the
contract owners. The percentage varies up to 6 percent based on amount of
purchase payments less surrenders.
Sales and administrative charges were $226,805 and $146,545 for the years
ended December 31, 1997 and 1996, respectively.
(5) Other Transactions With Affiliates
Conseco Equity Sales, Inc., an affiliate of the Company, is the principal
underwriter and performs all variable annuity sales functions on behalf of the
Company through various retail broker/dealers including Conseco Financial
Services, Inc., an affiliate of the Company.
(6) Net Assets
Net assets consisted of the following at December 31, 1997:
================================================================================
Proceeds from the sales of units since organization,
less proceeds of units redeemed .............................. $ 79,854,069
Undistributed net investment income ............................ 120,327,700
Undistributed net realized gains on sales of investments ....... 36,115,959
Net unrealized appreciation of investments ..................... 12,966,155
- --------------------------------------------------------------------------------
Total net assets ........................................... $249,263,883
================================================================================
6
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To The Board of Directors of Great American Reserve Insurance Company and
Contract Owners of Great American Reserve Variable Annuity Account C
We have audited the accompanying statement of assets and liabilities of
Great American Reserve Variable Annuity Account C (the "Account") as of December
31, 1997, and the related statements of operations and changes in net assets for
each of the two years in the period then ended. These financial statements are
the responsibility of the Accounts' management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of portfolio shares owned at December 31, 1997 by correspondence
with custodians. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Great American Reserve
Variable Annuity Account C as of December 31, 1997, and the results of its
operations and changes in its net assets for each of the two years in the period
then ended, in conformity with generally accepted accounting principles.
/s/ Coopers & Lybrand L.L.P.
Indianapolis, Indiana
February 23, 1998
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors
Great American Reserve Insurance Company
We have audited the accompanying balance sheet of Great American Reserve
Insurance Company (the "Company") as of December 31, 1997 and 1996, and the
related statements of operations, shareholder's equity and cash flows for the
years ended December 31, 1997 and 1996 and the four months ended December 31,
1995. We have also audited the accompanying statement of operations,
shareholder's equity and cash flows of the Company for the eight months ended
August 31, 1995 based on the basis of accounting applicable to periods prior to
the adoption of push down accounting upon Conseco, Inc.'s purchase of all common
shares of the Company it did not previously own (see note 1 of the notes to
financial statements regarding the adoption of push down accounting). These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Great American Reserve
Insurance Company as of December 31, 1997 and 1996, and the results of its
operations and its cash flows for the years ended December 31, 1997 and 1996,
the four months ended December 31, 1995 and the eight months ended August 31,
1995, in conformity with generally accepted accounting principles.
/S/ COOPERS & LYBRAND L.L.P.
----------------------------
COOPERS & LYBRAND L.L.P.
Indianapolis, Indiana
April 20, 1998
F-1
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
BALANCE SHEET
December 31, 1997 and 1996
(Dollars in millions)
ASSETS
<TABLE>
<CAPTION>
1997 1996
---- ----
<S> <C> <C>
Investments:
Actively managed fixed maturities at fair value (amortized cost:
1997 - $1,705.2; 1996 - $1,810.8)............................................... $1,734.0 $1,795.1
Mortgage loans..................................................................... 57.2 77.3
Credit-tenant loans................................................................ 88.9 93.4
Policy loans....................................................................... 80.6 80.8
Other invested assets ............................................................. 88.2 89.0
Short-term investments............................................................. 49.5 14.8
Assets held in separate accounts................................................... 402.1 232.4
-------- --------
Total investments............................................................ 2,500.5 2,382.8
Accrued investment income.............................................................. 30.5 32.9
Cost of policies purchased............................................................. 101.6 143.0
Cost of policies produced.............................................................. 60.7 38.2
Reinsurance receivables................................................................ 21.9 25.7
Goodwill (net of accumulated amortization: 1997 - $13.2; 1996 - $11.7)................. 48.2 49.7
Other assets........................................................................... 8.3 8.2
-------- --------
Total assets................................................................. $2,771.7 $2,680.5
======== ========
(continued on next page)
The accompanying notes are an
integral part of the financial
statements.
</TABLE>
F-2
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
BALANCE SHEET (Continued)
December 31, 1997 and 1996
(Dollars in millions, except per share amount)
LIABILITIES AND SHAREHOLDER'S EQUITY
<TABLE>
<CAPTION>
1997 1996
---- ----
<S> <C> <C>
Liabilities:
Insurance liabilities:
Interest sensitive products...................................................... $1,522.1 $1,636.5
Traditional products............................................................. 248.3 251.5
Claims payable and other policyholder funds...................................... 62.5 69.5
Liabilities related to separate accounts......................................... 402.1 232.4
Income tax liabilities............................................................. 44.2 29.8
Investment borrowings.............................................................. 61.0 48.4
Other liabilities.................................................................. 14.6 15.5
-------- --------
Total liabilities.......................................................... 2,354.8 2,283.6
-------- --------
Shareholder's equity:
Common stock and additional paid-in capital (par value $4.80 per share, 1,065,000
shares authorized, 1,043,565 shares issued and outstanding).................... 380.8 380.8
Accumulated other comprehensive income:
Unrealized appreciation (depreciation) of fixed maturity securities (net of
applicable deferred income taxes: 1997 - $4.4; 1996 - $(2.4))............... 8.2 (4.4)
Unrealized appreciation (depreciation) of other investments (net of applicable
deferred income taxes: 1997 - $.3; 1996 - $(.1))............................ .5 (.2)
Retained earnings.................................................................. 27.4 20.7
-------- --------
Total shareholder's equity................................................. 416.9 396.9
-------- --------
Total liabilities and shareholder's equity................................. $2,771.7 $2,680.5
======== ========
The accompanying notes are an
integral part of the financial
statements.
</TABLE>
F-3
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
STATEMENT OF OPERATIONS
(Dollars in millions)
<TABLE>
<CAPTION>
Prior basis
------------
Year Year Four months Eight months
ended ended ended ended
December 31, December 31, December 31, August 31,
1997 1996 1995 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Insurance policy income............................... $ 75.7 $ 81.4 $ 31.8 $ 60.5
Net investment income................................. 222.6 218.4 74.2 136.4
Net investment gains.................................. 13.3 2.7 12.5 7.3
------- ------- ------ -------
Total revenues............................... . 311.6 302.5 118.5 204.2
------- ------- ------ -------
Benefits and expenses:
Insurance policy benefits............................. 56.5 54.9 18.9 45.9
Change in future policy benefits...................... (4.8) (3.7) .2 (4.3)
Amounts added to annuity and financial product
policyholder account balances:
Interest......................................... 83.6 93.8 32.9 66.7
Other amounts added to variable annuity products 55.7 35.6 11.3 7.9
Interest expense on investment borrowings............. 4.0 6.2 1.0 3.6
Amortization.......................................... 27.1 20.3 15.3 16.0
Other operating costs and expenses.................... 28.2 54.3 13.1 23.7
------- ------- ------ -------
Total benefits and expenses...................... 250.3 261.4 92.7 159.5
------- ------- ------ -------
Income before income taxes....................... 61.3 41.1 25.8 44.7
Income tax expense........................................ 22.1 15.4 9.7 16.5
------- ------- ------ -------
Net income....................................... $ 39.2 $ 25.7 $ 16.1 $ 28.2
======= ======= ====== ======
The accompanying notes are an
integral part of the financial
statements.
</TABLE>
F-4
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
STATEMENT OF SHAREHOLDER'S EQUITY
(Dollars in millions)
<TABLE>
<CAPTION>
Common stock Accumulated other
and additional comprehensive Retained
Total paid-in capital income earnings
----- --------------- ------ --------
<S> <C> <C> <C> <C>
Balance, December 31, 1994 (a)............................. $364.9 $339.7 $(55.1) $80.3
Comprehensive income, net of tax:
Net income (a)........................................ 28.2 - - 28.2
Change in unrealized appreciation (depreciation) of
securities (net of applicable income taxes of
34.1) (a).......................................... 59.0 - 59.0 -
------
Total comprehensive income (a).................... 87.2
Dividends on common stock (a)........................... (41.2) - - (41.2)
Adjustment of balance due to new accounting basis....... 5.1 41.1 (2.0) (34.0)
------ ------ ------ -----
Balance, August 31, 1995................................... 416.0 380.8 1.9 33.3
Comprehensive income, net of tax:
Net income............................................ 16.1 - - 16.1
Change in unrealized appreciation (depreciation) of
securities (net of applicable income
taxes of $6.1)................................... 10.5 - 10.5 -
------
Total comprehensive income........................ 26.6
------ ------ ------ -----
Balance, December 31, 1995................................. 442.6 380.8 12.4 49.4
Comprehensive income, net of tax:
Net income............................................ 25.7 - - 25.7
Change in unrealized appreciation (depreciation) of
securities (net of applicable income
taxes of ($9.7)).................................... (17.0) - (17.0) -
------
Total comprehensive income........................ 8.7
Dividends on common stock............................... (54.4) - - (54.4)
------ ------ ------ ------
Balance, December 31, 1996................................. 396.9 380.8 (4.6) 20.7
Comprehensive income, net of tax:
Net income............................................ 39.2 - - 39.2
Change in unrealized appreciation (depreciation) of
securities (net of applicable income taxes of $7.2). 13.3 - 13.3 -
------
Total comprehensive income........................ 52.5 - - -
Dividends on common stock............................... (32.5) - - (32.5)
------ ------ ------ -----
Balance, December 31, 1997................................. $416.9 $380.8 $ 8.7 $ 27.4
====== ====== ====== ======
<FN>
(a) Prior basis.
</FN>
The accompanying notes are an
integral part of the financial
statements.
</TABLE>
F-5
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
STATEMENT OF CASH FLOWS
(Dollars in millions)
<TABLE>
<CAPTION>
Prior basis
------------
Year Year Four months Eight months
ended ended ended ended
December 31, December 31, December 31, August 31,
1997 1996 1995 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Cash flows from operating activities:
Net income............................................ $ 39.2 $ 25.7 $ 16.1 $ 28.2
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization..................................... 27.1 20.3 15.3 16.0
Income taxes..................................... 6.7 (3.9) 2.3 2.9
Insurance liabilities............................ (60.9) (40.5) (25.8) (14.0)
Amounts added to annuity and financial
product policyholder account balances......... 139.3 129.4 44.2 74.6
Fees charged to insurance liabilities............ (31.3) (32.8) (10.3) (22.2)
Accrual and amortization of investment income.... .3 3.1 3.2 (1.8)
Deferral of cost of policies produced............ (31.8) (13.2) (3.0) (6.6)
Investment gains................................. (13.3) (2.7) (12.5) (7.3)
Other............................................ (4.6) (8.8) (8.9) (3.2)
--------- -------- ------ -------
Net cash provided by operating
activities................................. 70.7 76.6 20.6 66.6
--------- -------- ------ -------
Cash flows from investing activities:
Sales of investments.................................. 755.2 988.9 513.2 406.5
Maturities and redemptions............................ 150.4 101.7 60.4 57.5
Purchases of investments.............................. (753.6) (954.2) (532.2) (476.2)
--------- -------- ------- -------
Net cash provided (used) by investing
activities................................ 152.0 136.4 41.4 (12.2)
--------- -------- ------ -------
Cash flows from financing activities:
Deposits to insurance liabilities..................... 255.9 169.8 50.8 104.4
Cash paid in reinsurance recapture ................... - - (71.1) -
Investment borrowings................................. 12.6 (35.8) (36.8) 121.0
Withdrawals from insurance liabilities................ (424.0) (306.7) (71.9) (166.3)
Dividends paid on common stock........................ (32.5) (44.5) - (41.2)
--------- ------- -------- -------
Net cash provided (used) by
financing activities...................... (188.0) (217.2) (129.0) 17.9
--------- -------- -------- -------
Net increase (decrease) in short-term
investments............................... 34.7 (4.2) (67.0) 72.3
Short-term investments, beginning of period............... 14.8 19.0 86.0 13.7
--------- -------- -------- -------
Short-term investments, end of period..................... $ 49.5 $ 14.8 $ 19.0 $ 86.0
========= ======== ======== =======
The accompanying notes are an
integral part of the financial
statements.
</TABLE>
F-6
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Organization and Basis of Presentation
Great American Reserve Insurance Company (the "Company") markets
tax-qualified annuities and certain employee benefit- related insurance products
through professional independent agents. Since August 1995, the Company has been
a wholly owned subsidiary of Conseco, Inc. ("Conseco"), a financial services
holding company engaged in the development, marketing and administration of
supplemental health insurance, annuity, individual life insurance, individual
and group major medical insurance and other insurance products. During 1994,
Conseco effectively owned 36 percent of the Company, through its ownership
interest in CCP Insurance, Inc. ("CCP"), a holding company organized for
companies previously acquired by Conseco Capital Partners, Inc. (the
"Partnership"), a limited partnership organized by Conseco. The Company was
acquired by the Partnership in 1990 (the "Partnership Acquisition"). During
1995, Conseco's ownership in CCP (and in the Company) increased to 49 percent as
a result of purchases of CCP common stock by CCP and Conseco. In August 1995,
Conseco completed the purchase of the remaining shares of CCP common stock it
did not already own in a transaction pursuant to which CCP was merged with
Conseco, with Conseco being the surviving corporation (the "Conseco
Acquisition").
The accompanying financial statements give effect to "push down" purchase
accounting to reflect the Partnership Acquisition and the Conseco Acquisition.
As a result of applying "push down" purchase accounting: (i) the Company's
financial position and results of operations for periods subsequent to the
Partnership Acquisition and before the Conseco Acquisition (the "prior basis")
reflect the Partnership's cost to acquire the Company's asset and liability
accounts based upon their estimated fair values at the purchase date; and (ii)
the Company's financial position and results of operations for periods
subsequent to the Conseco Acquisition reflect Conseco's cost to acquire the
Company's asset and liability accounts based upon their estimated fair values at
the purchase dates.
The effect of the adoption of the new basis of accounting on the Company's
balance sheet accounts on August 31, 1995, was as follows (dollars in millions):
<TABLE>
<CAPTION>
Debit
(Credit)
--------
<S> <C>
Cost of policies purchased.............................................. $ 59.0
Cost of policies produced .............................................. (27.0)
Goodwill................................................................ (15.1)
Insurance liabilities................................................... (1.2)
Income tax liabilities.................................................. (11.9)
Other................................................................... 1.3
Common stock and additional paid-in capital............................. (41.1)
Net unrealized appreciation of fixed maturity securities................ 1.4
Net unrealized appreciation of other investments........................ .6
Retained earnings....................................................... 34.0
</TABLE>
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles ("GAAP"), which differ in some respects
from statutory accounting practices followed in the preparation of financial
statements submitted to state insurance departments. As such, they include
amounts based on informed estimates and judgment, with consideration given to
materiality. Many estimates and assumptions are utilized in calculating
amortized value and recoverability of securities, cost of policies produced,
cost of policies purchased, goodwill, insurance liabilities, guaranty fund
assessment accruals, liabilities for litigation and deferred income taxes.
Actual results could differ from reported results using those estimates. Certain
amounts from the 1996 financial statements and notes have been reclassified to
conform with the 1997 presentation.
Investments
Fixed maturity investments are securities that mature more than one year
after issuance. They include bonds, notes receivable and preferred stocks with
mandatory redemption features and are classified as follows:
F-7
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
Actively managed - fixed maturity securities that may be sold prior to
maturity due to changes that might occur in market interest rates,
issuer credit quality or the Company's liquidity requirements. Actively
managed fixed maturity securities are carried at estimated fair value
and the unrealized gain or loss is recorded net of tax and related
adjustments described below as a component of shareholder's equity.
Trading - fixed maturity securities are bought and held principally for
the purpose of selling them in the near term. Trading securities are
carried at estimated fair value. Unrealized gains or losses are
included in net investment gains (losses). The Company held $.9 million
of trading securities at December 31, 1997, which are included in other
invested assets. The Company did not hold any trading securities at
December 31, 1996 or 1995.
Held to maturity - fixed maturity securities which the Company has the
ability and positive intent to hold to maturity, and are carried at
amortized cost. The Company may dispose of these securities if the
credit quality of the issuer deteriorates, if regulatory requirements
change or under other unforeseen circumstances. The Company has not
held any securities in this classification during 1997, 1996 or 1995.
Anticipated returns, including investment gains and losses, from the
investment of policyholder balances are considered in determining the
amortization of the cost of policies purchased and the cost of policies
produced. When actively managed fixed maturity securities are stated at
estimated fair value, an adjustment to the cost of policies purchased and the
cost of policies produced may be necessary if a change in amortization would
have been recorded if such securities had been sold at their fair value and the
proceeds reinvested at current yields. Furthermore, if future yields expected to
be earned on such securities decline, it may be necessary to increase certain
insurance liabilities. Adjustments to such liabilities are required when their
balances, in addition to future net cash flows (including investment income),
are insufficient to cover future benefits and expenses.
Unrealized gains and losses and the related adjustments described in the
preceding paragraph have no effect on earnings, but are recorded, net of tax, as
a component of shareholder's equity. The following tables summarize the effect
of these adjustments as of December 31, 1997:
<TABLE>
<CAPTION>
Effect of fair
Balance value adjustment to
before actively managed Reported
adjustment fixed maturity securities amount
---------- ------------------------- --------
(Dollars in millions)
<S> <C> <C> <C>
Actively managed fixed maturity securities.................... $1,705.2 $ 28.8 $1,734.0
Cost of policies purchased.................................... 115.0 (13.4) 101.6
Cost of policies produced..................................... 63.5 (2.8) 60.7
Income tax liabilities........................................ 39.8 4.4 44.2
Net unrealized appreciation of fixed maturity securities, net. - 8.2 8.2
</TABLE>
When changes in conditions cause a fixed maturity investment to be
transferred to a different category (e.g. actively managed, held to maturity or
trading), the security is transferred to the new category at its fair value at
the date of the transfer. There were no such transfers in 1997, 1996 or 1995. At
the transfer date, the security's unrealized gain or loss is recorded as
follows:
- For transfers to the trading category, the unrealized gain or loss is
recognized in earnings;
- For transfers from the trading category, the unrealized gain or loss
already recognized in earnings is not reversed;
- For transfers to actively managed from held to maturity, the unrealized
gain or loss is recognized in shareholder's equity; and
- For transfers to held to m aturity from actively managed, the unrealized
gain or loss at the date of transfer continues to be recognized in
shareholder's equity, but is amortized as a yield adjustment until
ultimately sold.
F-8
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
Credit-tenant loans ("CTLs") are loans for commercial properties which
require: (i) the lease of the principal tenant to be assigned to the Company;
(ii) the lease to produce adequate cash flow to fund substantially all the cash
requirements of the loan; and (iii) the principal tenant, or the guarantor of
such tenant's obligations, to have an investment-grade credit rating when the
loan is made. These loans also must be secured by the value of the related
property. Underwriting guidelines take into account such factors as: (i) the
lease term of the property; (ii) the borrower's management ability, including
business experience, property management capabilities and financial soundness;
and (iii) such economic, demographic or other factors that may affect the income
generated by the property or its value. The underwriting guidelines generally
require a loan-to-value ratio of 75 percent or less. Credit-tenant loans and
traditional mortgage loans are carried at amortized cost.
Policy loans are stated at their current unpaid principal balance.
Short-term investments include commercial paper, invested cash and other
investments purchased with maturities of less than three months and are carried
at amortized cost, which approximates fair value. The Company considers all
short-term investments to be cash equivalents.
Fees received and costs incurred in connection with origination of
investments, principally CTLs and mortgage loans, are deferred. Fees, costs,
discounts and premiums are amortized as yield adjustments over the contractual
life of the investments. Anticipated prepayments on mortgage-backed securities
are taken into consideration in determining estimated future yields on such
securities.
The specific identification method is used to account for the disposition
of investments. The differences between sale proceeds and carrying values are
reported as investment gains and losses, or as adjustments to investment income
if the proceeds are prepayments by issuers prior to maturity.
The Company regularly evaluates investment securities, credit-tenant loans
and mortgage loans based on current economic conditions, past credit loss
experience and other circumstances of the investee. A decline in a security's
net realizable value that is other than temporary is treated as an investment
loss and the cost basis of the security is reduced to its estimated fair value.
Impaired loans are revalued at the present value of expected cash flows
discounted at the loan's effective interest rate when it is probable that the
Company will be unable to collect all amounts due according to the contractual
terms of the agreement. The Company accrues interest on the net carrying amount
of impaired loans.
As part of the Company's investment strategy, the Company may enter into
reverse repurchase agreements and dollar-roll transactions to increase its
investment return or to improve liquidity. These transactions are accounted for
as collateral borrowings, where the amount borrowed is equal to the sales price
of the underlying securities.
Separate Accounts
Separate accounts are funds on which investment income and gains or losses
accrue directly to certain policyholders. The assets of these accounts are
legally segregated. They are not subject to the claims which may arise out of
any other business of the Company. The Company reports separate account assets
at market value; the underlying investment risks are assumed by the contract
holders. The Company records the related liabilities at amounts equal to the
underlying assets; the fair value of these liabilities equals their carrying
amount.
Cost of Policies Purchased
The cost of policies purchased represents the portion of the acquisition
cost that was allocated to the value of the right to receive future cash flows
from insurance contracts existing at the date such insurance contracts were
acquired. The value of cost of policies purchased is the actuarially determined
present value of the projected future cash flows from the insurance contracts
existing at the acquisition date. The method used to value the cost of policies
purchased is consistent with the valuation methods used most commonly to value
blocks of insurance business, which is also consistent with the basic
methodology generally used to value assets. The method used is summarized as
follows:
- Identify the expected future cash flows from the blocks of business.
F-9
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
- Identify the risks inherent in realizing those cash flows (i.e., what is
the probability that the cash flows will be realized).
- Identify the rate of return necessary to accept these risks, based on
consideration of the factors summarized below.
- Determine the value of the policies purchased by discounting the expected
future cash flows by the discount rate required.
The expected future cash flows used in determining such value are based on
actuarially determined projections of future premium collections, mortality,
surrenders, operating expenses, changes in insurance liabilities, investment
yields on the assets held to back the policy liabilities and other factors.
These projections take into account all factors known or expected at the
valuation date, based on the collective judgment of the Company's management.
Actual experience on purchased business may vary from projections due to
differences in renewal premiums collected, investment spread, investment gains
or losses, mortality and morbidity costs and other factors.
The discount rate used to determine the value of the cost of policies
purchased is the rate of return needed to earn in order to invest in the
business being acquired. In determining this required rate of return, the
following factors are considered:
- The magnitude of the risks associated with each of the actuarial
assumptions used in determining expected future cash flows.
- The cost of capital required to fund the acquisition.
- The likelihood of changes in projected future cash flows that might
occur if there are changes in insurance regulations and tax laws.
- The acquired business compatibility with other activities of the Company
that may favorably affect future cash flows.
- The complexity of the acquired business.
- Recent prices (i.e., discount rates used in determining valuations)
paid by others to acquire similar blocks of business.
After the cost of policies purchased is determined, it is amortized based
on the incidence of the expected cash flows. This asset is amortized using the
interest rate credited to the underlying policies.
If renewal premiums collected, investment spread, investment gains or
losses, mortality and morbidity costs or other factors differ from expectations,
amortization of the cost of policies purchased is adjusted. For example, the
sale of a fixed maturity investment may result in a gain (or loss). If the sale
proceeds are reinvested at a lower (or higher) earnings rate, there may also be
a reduction (or increase) in future investment spread. Amortization must be
increased (decreased) to reflect the change in the incidence of expected cash
flows consistent with the methods used with the cost of policies produced
(described below).
Each year, the recoverability of the cost of policies purchased is
evaluated by line of business within each block of purchased insurance business.
If current estimates indicate that the existing insurance liabilities, together
with the present value of future net cash flows from the blocks of business
purchased, will be insufficient to recover the cost of policies purchased, the
difference is charged to expense. Amortization is adjusted consistent with the
methods used with the cost of policies produced (as described below).
The cost of policies purchased related to the original acquisition of the
Company by the Partnership in 1990 is amortized under a slightly different
method than that described above. However, the effect of the different method on
1997 net income was insignificant.
F-10
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
Cost of Policies Produced
Costs which vary with and are primarily related to the acquisition of new
business are deferred to the extent that such costs are deemed recoverable.
These costs include commissions, certain costs of policy issuance and
underwriting and certain agency expenses. For traditional life and health
contracts, deferred costs are amortized with interest in relation to future
anticipated premium revenue using the same assumptions that are used in
calculating the insurance liabilities. For immediate annuities with mortality
risks, deferred costs are amortized in relation to the present value of benefits
to be paid. For universal life-type, interest-sensitive and investment-type
contracts, deferred costs are amortized in relation to the present value of
expected gross profits from these contracts, discounted using the interest rate
credited to the policy (currently, 5 percent to 8 percent).
Recoverability of the unamortized balance of cost of policies produced is
evaluated regularly and considers anticipated investment income. For universal
life-type contracts and investment-type contracts, the accumulated amortization
is adjusted (whether an increase or a decrease) whenever there is a change in
the estimated gross profits expected over the life of a block of business in
order to maintain a constant relationship between amortization and the present
value (discounted at the rate of interest that accrues to the policies) of
expected gross profits. For traditional and most other contracts, the
unamortized asset balance is reduced by a charge to income only when the sum of
the present value of discounted future cash flows and the policy liabilities is
not sufficient to cover such asset balance.
Goodwill
Goodwill is the excess of the amount paid to acquire a company over the
fair value of its net assets. Goodwill is amortized on the straight-line basis
over a 40-year period. The Company continually monitors the value of the
goodwill based on estimates of future earnings. The Company determines whether
goodwill is fully recoverable from projected undiscounted net cash flows from
earnings of the subsidiaries over the remaining amortization period. If it is
determined that changes in such projected cash flows no longer supported the
recoverability of goodwill over the remaining amortization period, the Company
would reduce its carrying value with a corresponding charge to expense or
shorten the amortization period (no such changes have occurred). Cash flows
considered in such an analysis are those of the business acquired, if separately
identifiable, or the business segment that acquired the business if such
earnings are not separately identifiable.
Insurance Liabilities, Recognition of Insurance Policy Income and Related
Benefits and Expenses
Reserves for traditional and limited-payment life insurance contracts are
generally calculated using the net level premium method based on assumptions as
to investment yields, mortality, morbidity, withdrawals and dividends. The
assumptions are based on projections using past and expected experience and
include provisions for possible adverse deviation. These assumptions are made at
the time the contract is issued or, in the case of contracts acquired by
purchase, at the purchase date.
Reserves for universal life-type and investment-type contracts are based on
the contract account balance, if future benefit payments in excess of the
account balance are not guaranteed, or on the present value of future benefit
payments when such payments are guaranteed. Additional increases to insurance
liabilities are made if future cash flows including investment income are
insufficient to cover future benefits and expenses.
For investment-type contracts without mortality risk (such as deferred
annuities and immediate annuities with benefits paid for a period certain) and
for contracts that permit the Company or the insured to make changes in the
contract terms (such as single- premium whole life and universal life), premium
deposits and benefit payments are recorded as increases or decreases in a
liability account rather than as revenue and expense. Amounts charged against
the liability account for the cost of insurance, policy administration and
surrender penalties are recorded as revenues. Interest credited to the liability
account and benefit payments made in excess of the contract liability account
balance are charged to expense.
For traditional life insurance contracts, premiums are recognized as income
when due. Benefits and expenses are associated with earned premiums resulting in
their level recognition over the premium paying period of the contracts. Such
recognition is accomplished through the provision for future policy benefits and
the amortization of deferred policy acquisition costs.
F-11
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
For contracts with mortality risk, but with premiums paid for only a
limited period (such as single-premium immediate annuities with benefits paid
for the life of the annuitant), the accounting treatment is similar to
traditional contracts. However, the excess of the gross premium over the net
premium is deferred and recognized in relation to the present value of expected
future benefit payments.
Liabilities for incurred claims are determined using historical experience
and represent an estimate of the present value of the ultimate net cost of all
reported and unreported claims. Management believes these estimates are
adequate. Such estimates are periodically reviewed and any adjustments are
reflected in current operations.
For participating policies, the amount of dividends to be paid (which are
not significant) is determined annually by the Company. The portion of the
earnings allocated to participating policyholders is recorded as an insurance
liability.
Reinsurance
In the normal course of business, the Company seeks to limit its exposure
to loss on any single insured and to recover a portion of benefits paid over
such limit by ceding reinsurance to other insurance enterprises or reinsurers
under excess coverage and coinsurance contracts. The Company has set its
retention limit for acceptance of risk on life insurance policies at various
levels up to $.5 million.
Assets and liabilities related to insurance contracts are reported before
the effects of reinsurance. Reinsurance receivables and prepaid reinsurance
premiums (including amounts related to insurance liabilities) are reported as
assets. Estimated reinsurance receivables are recognized in a manner consistent
with the liabilities relating to the underlying reinsured insurance contracts.
Income Taxes
Income tax expense includes deferred taxes arising from temporary
differences between the tax and financial reporting basis of assets and
liabilities. This liability method of accounting for income taxes also requires
the Company to reflect in income the effect of a tax rate change on accumulated
deferred income taxes in the period in which the change is enacted.
In assessing the realization of deferred tax assets, the Company considers
whether it is more likely than not that the deferred tax assets will be
realized. The ultimate realization of deferred tax assets is dependent upon the
generation of future taxable income during the periods in which temporary
differences become deductible. If future income does not occur as expected,
deferred income taxes may need to be written off.
Comprehensive Income
As of December 31, 1997, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income" ("SFAS 130").
SFAS 130 establishes standards for reporting and presentation of comprehensive
income and its components in a full set of financial statements. Comprehensive
income includes all changes in shareholders' equity (except those arising from
transactions with shareholders) and includes net income and net unrealized gains
(losses) on securities. The new standard requires only additional disclosures in
the consolidated financial statements; it does not affect the financial position
or results of operations.
Comprehensive income excludes net investment gains (losses) included in net
income of: (i) $(3.9) million (after income taxes of $(2.1) million) in 1997;
(ii) $.2 million (after income taxes of $.1 million) in 1996; (iii) $1.4 million
(after income taxes of $.7 million) in the four months ended December 31, 1995;
and (iv) $2.2 million (after income taxes of $1.2 million) in the eight months
ended August 31, 1995.
Fair Values of Financial Instruments
The following methods and assumptions were used by the Company in
determining estimated fair values of financial instruments:
Investment securities: The estimated fair values of fixed maturity
securities (including redeemable preferred stocks), equity
F-12
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
securities and trading securities are based on quotes from independent
pricing services, where available. For investment securities for which such
quotes are not available, the estimated fair values are obtained from
broker-dealer market makers or by discounting expected future cash flows
using current market interest rates appropriate for the yield, credit
quality of the investments and for fixed maturities, the maturity of the
investments being priced.
Mortgage loans, credit-tenant loans and policy loans: The estimated fair
values of mortgage loans, credit-tenant loans and policy loans are
determined by discounting future expected cash flows using interest rates
currently being offered for similar loans to borrowers with similar credit
ratings. Loans with similar characteristics are aggregated for purposes of
the calculations.
Other invested assets: The estimated fair values of these assets have been
assumed to be equal to their carrying value. Such value is believed to be a
reasonable approximation of the fair value of these investments.
Short-term investments: The estimated fair values of short-term investments
are based on quoted market prices, where available. The carrying amount
reported on the balance sheet for these assets approximates their estimated
fair value.
Insurance liabilities for investment contracts: The estimated fair values
of liabilities under investment-type insurance contracts are determined
using discounted cash flow calculations based on interest rates currently
being offered for similar contracts with maturities consistent with the
contracts being valued.
Investment borrowings: Due to the short-term nature of these borrowings
(terms generally less than 30 days), estimated fair values are assumed to
approximate the carrying amount reported in the balance sheet.
The estimated fair values of financial instruments are as follows:
<TABLE>
<CAPTION>
1997 1996
---------------------- ----------------------
Carrying Fair Carrying Fair
Amount Value Amount Value
------ ----- ------ -----
(Dollars in millions)
<S> <C> <C> <C> <C>
Financial assets held for purposes other than trading:
Actively managed fixed maturity securities........... $1,734.0 $1,734.0 $1,795.1 $1,795.1
Mortgage loans....................................... 57.2 61.2 77.3 77.0
Credit-tenant loans.................................. 88.9 93.4 93.4 92.5
Policy loans......................................... 80.6 80.6 80.8 80.8
Other invested assets................................ 88.2 88.2 89.0 89.0
Short-term investments............................... 49.5 49.5 14.8 14.8
Financial liabilities held for purposes other than
trading:
Insurance liabilities for investment contracts (1). 1,177.5 1,177.5 $1,282.1 $1,282.1
Investment borrowings.............................. 61.0 61.0 48.4 48.4
<FN>
(1) The estimated fair value of the liabilities for investment contracts
was approximately equal to its carrying value at December 31, 1997
and 1996, because interest rates credited on the vast majority of
account balances approximate current rates paid on similar
investments and because these rates are not generally guaranteed
beyond one year. The Company is not required to disclose fair values
for insurance liabilities, other than those for investment contracts.
However, the Company takes into consideration the estimated fair
values of all insurance liabilities in its overall management of
interest rate risk. The Company attempts to minimize exposure to
changing interest rates by matching investment maturities with
amounts due under insurance contracts.
</FN>
</TABLE>
Recently Issued Accounting Standards
Statement of Financial Accounting Standards No. 125, "Accounting for
Transfers and Servicing of Financial Assets and Extinguishment of Liabilities"
("SFAS 125") was issued in June 1996 and provides accounting and reporting
standards for transfers of financial assets and extinguishments of liabilities.
SFAS 125 is effective for 1997 financial statements; however, certain provisions
F-13
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
relating to accounting for repurchase agreements and securities lending are not
effective until January 1, 1998. Provisions effective in 1997 did not have any
effect on the Company's financial position or results of operations. The
adoption of provisions effective in 1998 are not expected to have a material
effect on the Company's financial position or results of operations.
Statement of Financial Accounting Standards No. 131, "Disclosures about
Segments of an Enterprise and Related Information" ("SFAS 131") establishes new
standards for reporting about operating segments and products and services,
geographic areas and major customers. Under SFAS 131, segments are to be defined
consistent with the basis management uses internally to assess performance and
allocate resources. Implementing SFAS 131 will have no impact on the
consolidated amounts the Company reports. SFAS 131 is effective for the
Company's December 31, 1998 financial statements.
Statement of Financial Accounting Standards No. 132, "Employers'
Disclosures about Pensions and Other Postretirement Benefits" ("SFAS 132") was
issued in February 1998 and revises current disclosure requirements for
employers' pensions and other retiree benefits. SFAS 132 will have no effect on
the Company's financial position or results of operations. SFAS 132 is effective
for the Company's December 31, 1998 financial statements.
Statement of Position 97-3, "Accounting by Insurance and Other Enterprises
for Insurance-Related Assessments" ("SOP 97-3") was issued by the American
Institute of Certified Public Accountants in December 1997 and provides guidance
for determining when an insurance company or other enterprise should recognize a
liability for guaranty-fund assessments and guidance for measuring the
liability. The statement is effective for 1999 financial statements with early
adoption permitted. The adoption of this statement is not expected to have a
material effect on the Company's financial position or results of operations.
2. INVESTMENTS
At December 31, 1997, the amortized cost and estimated fair value of
actively managed fixed maturity securities were as follows:
<TABLE>
<CAPTION>
Gross Gross Estimated
Amortized unrealized unrealized fair
cost gains losses value
---- ----- ------ -----
(Dollars in millions)
<S> <C> <C> <C> <C>
United States Treasury securities and obligations
of United States government corporations and
agencies............................................ $ 28.0 $ .7 $ - $ 28.7
Obligations of state and political subdivisions........ 20.5 1.1 .1 21.5
Debt securities issued by foreign governments.......... 18.5 .1 1.2 17.4
Public utility securities.............................. 184.6 3.5 2.3 185.8
Other corporate securities............................. 902.0 26.6 7.8 920.8
Mortgage-backed securities............................. 551.6 8.6 .4 559.8
-------- ----- ----- --------
Total............................................... $1,705.2 $40.6 $11.8 $1,734.0
======== ===== ===== ========
</TABLE>
F-14
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
At December 31, 1996, the amortized cost and estimated fair value of
actively managed fixed maturity securities were as follows:
<TABLE>
<CAPTION>
Gross Gross Estimated
Amortized unrealized unrealized fair
cost gains losses value
---- ----- ------ -----
(Dollars in millions)
<S> <C> <C> <C> <C>
United States Treasury securities and obligations
of United States government corporations and
agencies............................................ $ 29.9 $ .3 $ .3 $ 29.9
Obligations of state and political subdivisions........ 6.1 .1 .1 6.1
Debt securities issued by foreign governments.......... 11.6 - .5 11.1
Public utility securities.............................. 234.8 2.4 7.0 230.2
Other corporate securities............................. 950.1 10.9 17.6 943.4
Mortgage-backed securities............................. 578.3 2.3 6.2 574.4
-------- ----- ----- --------
Total............................................... $1,810.8 $16.0 $31.7 $1,795.1
======== ===== ===== ========
</TABLE>
Actively managed fixed maturity securities, summarized by the source of
their estimated fair value, were as follows at December 31, 1997:
<TABLE>
<CAPTION>
Estimated
Amortized fair
cost value
---- -----
(Dollars in millions)
<S> <C> <C>
Nationally recognized pricing services.......................................... $1,416.9 $1,441.2
Broker-dealer market makers..................................................... 143.6 146.2
Internally developed methods (calculated based
on a weighted-average current market yield of 8.0 percent)................... 144.7 146.6
-------- --------
Total ................................................................. $1,705.2 $1,734.0
======== ========
</TABLE>
F-15
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
The following table sets forth actively managed fixed maturity securities
at December 31, 1997, classified by rating categories. The category assigned is
the highest rating by a nationally recognized statistical rating organization
or, as to $42.4 million fair value of fixed maturity securities not rated by
such firms, the rating assigned by the National Association of Insurance
Commissioners ("NAIC"). For the purposes of this table, NAIC Class 1 is included
in the "A" rating; Class 2, "BBB-"; Class 3, "BB-"; and Classes 4-6, "B+ and
below":
<TABLE>
<CAPTION>
Percent of Percent of
Investment fixed total
Rating maturities investments
------ ---------- -----------
<S> <C> <C>
AAA................................................................................... 39% 27%
AA.................................................................................... 7 5
A..................................................................................... 18 13
BBB+.................................................................................. 8 6
BBB................................................................................... 12 8
BBB-.................................................................................. 8 5
--- --
Investment-grade................................................................. 92 64
--- ---
BB+................................................................................... 2 1
BB.................................................................................... 2 1
BB-................................................................................... 1 1
B+ and below ......................................................................... 3 2
--- --
Below investment-grade........................................................... 8 5
--- --
Total actively managed fixed maturities...................................... 100% 69%
=== ==
</TABLE>
Below investment-grade actively managed fixed maturity securities,
summarized by the amount their amortized cost exceeds fair value, were as
follows at December 31, 1997:
<TABLE>
<CAPTION>
Estimated
Amortized fair
cost value
---- -----
(Dollars in millions)
<S> <C> <C>
Amortized cost exceeds fair value by more than 30%.................................. $ 1.0 $ .5
Amortized cost exceeds fair value by more than 15% but not more than 30%............ 14.8 11.8
Amortized cost exceeds fair value by more than 5% but not more than 15%............. 15.5 14.0
All others.......................................................................... 104.5 106.0
------ ------
Total below investment-grade fixed maturity investments.................... $135.8 $132.3
====== ======
</TABLE>
The Company had $.3 million of fixed maturity investments in substantive
default and no fixed maturities in technical default as of December 31, 1997.
The Company recorded writedowns of fixed maturity investments and other invested
assets totaling $.3 million in 1997, $.8 million in 1996 and $1.6 million in
1995, as a result of changes in conditions which caused it to conclude the
decline in the fair value of the investment was other than temporary. As of
December 31, 1997, there were no fixed maturity investments about which the
Company had serious doubts as to the ability of the issuer to comply with the
contractual terms of their obligations on a timely basis. Investment income
foregone due to defaulted securities was not significant in 1997, 1996 or 1995.
F-16
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
Actively managed fixed maturity securities at December 31, 1997, summarized
by contractual maturity date, are shown below. Actual maturities will differ
from contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or prepayment penalties and because most
mortgage-backed securities provide for periodic payments throughout their lives.
<TABLE>
<CAPTION>
Estimated
Amortized fair
cost value
---- -----
(Dollars in millions)
<S> <C> <C>
Due in one year or less......................................................... $ 5.8 $ 5.9
Due after one year through five years........................................... 103.0 101.3
Due after five years through ten years.......................................... 357.4 360.5
Due after ten years............................................................. 687.4 706.5
-------- --------
Subtotal................................................................. 1,153.6 1,174.2
Mortgage-backed securities...................................................... 551.6 559.8
-------- --------
Total ................................................................... $1,705.2 $1,734.0
======== ========
</TABLE>
Net investment income consisted of the following:
<TABLE>
<CAPTION>
Year Year Four months Eight months
ended ended ended ended
December 31, December 31, December 31, August 31,
1997 1996 1995 1995
---- ---- ---- ----
(Dollars in millions)
<S> <C> <C> <C> <C>
Actively managed fixed maturity securities....... $133.6 $146.4 $53.9 $110.2
Mortgage loans................................... 8.8 11.8 4.8 8.0
Credit-tenant loans ............................. 7.6 7.2 1.7 4.1
Policy loans..................................... 5.4 5.0 1.9 3.5
Short-term investments........................... 3.4 2.3 .8 1.9
Other invested assets............................ 9.4 11.4 .3 1.6
Separate accounts................................ 55.7 35.6 11.3 7.9
----- ------ ----- ------
Gross investment income..................... 223.9 219.7 74.7 137.2
Investment expenses.............................. 1.3 1.3 .5 .8
------ ------ ----- ------
Net investment income....................... $222.6 $218.4 $74.2 $136.4
====== ====== ===== ======
</TABLE>
The Company had insignificant fixed maturity investments and mortgage loans
that were not accruing investment income in 1997, 1996 and 1995.
F-17
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
The proceeds from sales of actively managed fixed maturity securities were
$739.4 million in 1997, $938.3 million in 1996 and $918.5 million in 1995. Net
investment gains consisted of the following:
<TABLE>
<CAPTION>
Year Year Four months Eight months
ended ended ended ended
December 31, December 31, December 31, August 31,
1997 1996 1995 1995
---- ---- ---- ----
(Dollars in millions)
<S> <C> <C> <C> <C>
Fixed maturities:
Gross gains................................... $20.6 $16.6 $16.5 $14.4
Gross losses.................................. (5.1) (9.2) (2.2) (2.3)
Other than temporary decline in fair value.... (.3) (.2) (.4) (1.2)
----- ----- ----- -----
Net investment gains from fixed maturities
before expenses........................... 15.2 7.2 13.9 10.9
Mortgage loans................................... (.2) - - (.2)
Other .......................................... 2.4 - - (1.0)
Other than temporary decline in fair value....... - (.6) - -
----- ----- ----- -----
Net investment gains before expenses........ 17.4 6.6 13.9 9.7
Investment gain expenses......................... 4.1 3.9 1.4 2.4
----- ----- ----- -----
Net investment gains........................ $13.3 $ 2.7 $12.5 $ 7.3
===== ===== ===== =====
</TABLE>
The change in net unrealized appreciation (depreciation) on investments
consisted of the following:
<TABLE>
<CAPTION>
Year Year Four months Eight months
ended ended ended ended
December 31, December 31, December 31, August 31,
1997 1996 1995 1995
---- ---- ---- ----
(Dollars in millions)
<S> <C> <C> <C> <C>
Actively managed fixed maturities................ $ 44.5 $(66.5) $45.5 $164.1
Other invested assets............................ 1.1 (1.3) .1 5.1
------- ------ ------ ------
Subtotal................................ 45.6 (67.8) 45.6 169.2
Less effect on other balance sheet accounts:
Cost of policies purchased.................... (21.2) 36.6 (26.3) (64.1)
Cost of policies produced..................... (3.9) 4.5 (2.7) (12.0)
Income taxes.................................. (7.2) 9.7 (6.1) (34.1)
------- ------ ------ ------
Change in net unrealized appreciation
(depreciation) of securities.................. $ 13.3 $(17.0) $10.5 $ 59.0
======= ====== ===== ======
</TABLE>
Investments in mortgage-backed securities at December 31, 1997, included
collateralized mortgage obligations ("CMOs") of $194.2 million and
mortgage-backed pass-through securities of $365.6 million. CMOs are securities
backed by pools of pass-through securities and/or mortgages that are segregated
into sections or "tranches." These securities provide for sequential retirement
of principal, rather than the pro rata share of principal return which occurs
through regular monthly principal payments on pass-through securities.
F-18
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
The following table sets forth the par value, amortized cost and estimated
fair value of investments in mortgage-backed securities including CMOs at
December 31, 1997, summarized by interest rates on the underlying collateral:
<TABLE>
<CAPTION>
Par Amortized Estimated
value cost fair value
----- ---- -----------
(Dollars in millions)
<S> <C> <C> <C>
Below 7 percent ..................................................... $218.9 $216.2 $218.9
7 percent - 8 percent................................................ 228.4 232.5 235.5
8 percent - 9 percent................................................ 63.9 62.6 64.2
9 percent and above.................................................. 38.9 40.3 41.2
------ ------ ------
Total mortgage-backed securities................................ $550.1 $551.6 $559.8
====== ====== ======
</TABLE>
The amortized cost and estimated fair value of mortgage-backed securities
including CMOs at December 31, 1997, summarized by type of security were as
follows:
<TABLE>
<CAPTION>
Estimated fair value
--------------------
Percent
Amortized of fixed
cost Amount maturities
---- ------ ----------
Type (Dollars in millions)
- ----
<S> <C> <C> <C>
Pass-throughs and sequential and targeted amortization classes........... $455.4 $462.2 26%
Planned amortization classes and accretion directed bonds................ 67.6 68.7 4
Subordinated classes .................................................... 28.6 28.9 2
------ ------- --
Total mortgage-backed securities................................ $551.6 $559.8 32%
====== ====== ==
</TABLE>
At December 31, 1997, approximately 84 percent of the estimated fair value
of the Company's mortgage-backed securities was determined by nationally
recognized pricing services, 6 percent was determined by broker-dealer market
makers, and 10 percent was determined by internally developed methods. The
call-adjusted modified duration of the Company's mortgage-backed securities was
4.8 years at December 31, 1997.
At December 31, 1997, no mortgage loans or credit-tenant loans had
defaulted as to principal or interest for more than 60 days, had been converted
to foreclosed real estate or had been restructured while the Company owned them.
Mortgage loans of $1.1 million were in foreclosure at December 31, 1997. At
December 31, 1997, the Company had a loan loss reserve of $.8 million.
Approximately 35 percent, 20 percent, 9 percent and 9 percent of the mortgage
loan balance were on properties located in California, Texas, Kentucky and
Florida, respectively. No other state comprised greater than 5 percent of the
mortgage loan balance.
As part of its investment strategy, the Company enters into reverse
repurchase agreements and dollar roll transactions to increase its return on
investments and improve its liquidity. These transactions are accounted for as
short-term borrowings collateralized by pledged securities with book values
approximately equal to the loan value. Such borrowings averaged approximately
$90.4 million during 1997 compared with $115.3 million during 1996. The weighted
average interest rate on short-term collateralized borrowings was 4.4 percent
and 5.3 percent during 1997 and 1996, respectively. The primary risk associated
with short-term collateralized borrowings is that the counterparty will be
unable to perform under the terms of the contract. The Company's exposure is
limited to the excess of the net replacement cost of the securities over the
value of the short-term investments (which was not material at December 31,
1997). The Company believes that the counterparties to its reverse repurchase
and dollar roll agreements are financially responsible and that the counterparty
risk is minimal.
Investments on deposit for regulatory authorities as required by law were
$18.3 million at December 31, 1997.
No investments of a single issuer were in excess of 10 percent of
shareholder's equity at December 31, 1997, other than investments issued or
guaranteed by the United States government.
F-19
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
3. INSURANCE LIABILITIES
Insurance liabilities consisted of the following:
<TABLE>
<CAPTION>
Interest
Withdrawal Mortality rate December 31, December 31,
assumption assumption assumption 1997 1996
---------- ---------- ---------- ---- ----
(Dollars in millions)
<S> <C> <C> <C> <C> <C>
Future policy benefits:
Interest-sensitive products:
Investment contracts .............. N/A N/A (b) $1,177.5 $1,282.1
Universal life-type contracts...... N/A N/A N/A 344.6 354.4
-------- --------
Total interest-sensitive
products..................... 1,522.1 1,636.5
-------- --------
Traditional products:
Traditional life insurance Company
contracts........................ experience (a) 8% 142.8 146.2
Limited-payment contracts.......... None (a) 8% 105.5 105.3
-------- --------
Total traditional products..... 248.3 251.5
-------- --------
Claims payable and other policyholder
funds................................. N/A N/A N/A 62.5 69.5
Liabilities related to separate
accounts.............................. N/A N/A N/A 402.1 232.4
-------- --------
Total insurance liabilities.... $2,235.0 $2,189.9
======== ========
- --------------------
<FN>
(a) Principally modifications of the 1975-80 Basic Table, Select and Ultimate
Table.
(b) At December 31, 1997 and 1996, approximately 97 percent of this liability
represented account balances where future benefits were not guaranteed. The
weighted average interest rate on the remainder of the liabilities,
representing the present value of guaranteed future benefits, was
approximately 6.4 percent at December 31, 1997.
</FN>
</TABLE>
Participating policies represented approximately 4.1 percent, 3.5 percent
and 3.7 percent of total life insurance in force at December 31, 1997, 1996 and
1995, respectively, and approximately 2.9 percent, 2.7 percent and 2.4 percent
of premium income for 1997, 1996 and 1995, respectively. Dividends on
participating policies amounted to $2.1 million, $1.9 million and $1.8 million
in 1997, 1996 and 1995, respectively.
4. REINSURANCE
Cost of reinsurance ceded where the reinsured policy contains mortality
risks totaled $24.2 million in 1997, $24.6 million in 1996, and $29.1 million in
1995. This cost was deducted from insurance premium revenue. The Company is
contingently liable for claims reinsured if the assuming company is unable to
pay. Reinsurance recoveries netted against insurance policy benefits totaled
$14.9 million in 1997, $19.4 million in 1996 and $19.5 million in 1995.
Effective October 1, 1995, Western National Life Insurance Company, a
former subsidiary of Conseco, recaptured certain annuity businesses ceded to the
Company through a reinsurance agreement. Reserves related to these policies
totaled $72.8 million. Recapture fees of $.7 million were recognized as income
during the four months ended December 31, 1995.
F-20
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
The Company's reinsurance receivable balance at December 31, 1997 relates
to many reinsurers. No balance from a single reinsurer exceeds $6.5 million.
5. INCOME TAXES
Income tax liabilities consisted of the following:
<TABLE>
<CAPTION>
December 31,
-------------------------
1997 1996
---- ----
(Dollars in millions)
<S> <C> <C>
Deferred income tax liabilities:
Cost of policies purchased and produced................................... $ 52.2 $60.3
Investments............................................................... 9.8 (3.3)
Insurance liabilities..................................................... (19.5) (19.7)
Unrealized appreciation (depreciation).................................... 4.7 (2.5)
Other..................................................................... (4.0) (5.0)
------ -----
Deferred income tax liabilities....................................... 43.2 29.8
Current income tax liabilities............................................... 1.0 -
------ -----
Income tax liabilities................................................ $ 44.2 $29.8
======= =====
</TABLE>
Income tax expense was as follows:
<TABLE>
<CAPTION>
Year Year Four months Eight months
ended ended ended ended
December 31, December 31, December 31, August 31,
1997 1996 1995 1995
---- ---- ---- ----
(Dollars in millions)
<S> <C> <C> <C> <C>
Current tax provision............................... $16.3 $10.5 $11.9 $19.9
Deferred tax provision (benefit).................... 5.8 4.9 (2.2) (3.4)
----- ----- ----- -----
Income tax expense........................... $22.1 $15.4 $ 9.7 $16.5
===== ===== ====== =====
</TABLE>
Income tax expense differed from that computed at the applicable statutory
rate of 35 percent for the following reasons:
<TABLE>
<CAPTION>
Year Year Four months Eight months
ended ended ended ended
December 31, December 31, December 31, August 31,
1997 1996 1995 1995
---- ---- ---- ----
(Dollars in millions)
<S> <C> <C> <C> <C>
Federal tax on income before income taxes at
statutory rate.................................... $21.5 $14.4 $9.0 $15.6
State taxes and other................................ .4 .6 .5 .4
Nondeductible items.................................. .2 .4 .2 .5
----- ----- ---- -----
Income tax expense.............................. $22.1 $15.4 $9.7 $16.5
===== ===== ==== =====
</TABLE>
F-21
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
During 1997, the Internal Revenue Service completed its examination of the
Company for the 1994 tax year and such examination did not result in any
significant adjustments.
6. RELATED PARTY TRANSACTIONS
The Company operates without direct employees through management and
service agreements with subsidiaries of Conseco. Fees for such services
(including data processing, executive management and investment management
services) were based on negotiated rates for periods prior to January 1, 1996.
Pursuant to new service agreements effective January 1, 1996, such fees are
based on Conseco's direct and directly allocable costs plus a 10 percent margin.
Total fees incurred by the Company under such agreement were $36.7 million in
1997, $44.1 million in 1996 and $26.6 million in 1995.
During 1997 and 1996, the Company purchased $11.2 million and $31.5 million
par value, respectively, of senior subordinated notes issued by subsidiaries of
Conseco. Such notes had a carrying value of $29.8 million and $34.7 million at
December 31, 1997 and 1996, respectively, and are classified as "other invested
assets" in the accompanying balance sheet. In addition, during 1997, a
subsidiary of Conseco redeemed $16.5 million par value of such notes which were
purchased in 1996. During 1996, the Company forgave receivables from Conseco
totaling $9.9 million. This transaction is reflected as a dividend to Conseco in
the accompanying statement of shareholder's equity.
7. OTHER OPERATING INFORMATION
Insurance policy income consisted of the following:
<TABLE>
<CAPTION>
Year Year Four months Eight months
ended ended ended ended
December 31, December 31, December 31, August 31,
1997 1996 1995 1995
---- ---- ---- ----
(Dollars in millions)
<S> <C> <C> <C> <C>
Direct premiums collected............................ $ 309.6 $241.3 $ 82.8 $158.6
Reinsurance assumed.................................. 14.9 1.7 .7 2.0
Reinsurance ceded.................................... (24.2) (24.6) (11.2) (17.9)
-------- ------ ----- ------
Premiums collected, net of reinsurance.......... 300.3 218.4 72.3 142.7
Less premiums on universal life and products without
mortality risk which are recorded as additions to
insurance liabilities............................. (255.9) (169.8) (50.8) (104.4)
-------- ------ ----- ------
Premiums on products with mortality and
morbidity risk, recorded as insurance policy
income........................................ 44.4 48.6 21.5 38.3
Fees and surrender charges........................... 31.3 32.8 10.3 22.2
-------- ------ ----- ------
Insurance policy income....................... $ 75.7 $ 81.4 $ 31.8 $ 60.5
======== ====== ====== ======
</TABLE>
F-22
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
The four states with the largest shares of the Company's premiums
collected in 1997 were Texas (27 percent), Florida (17 percent), California (13
percent) and Michigan (6 percent). No other state's premiums collected exceeded
5 percent.
Other operating costs and expenses were as follows:
<TABLE>
<CAPTION>
Year Year Four months Eight months
ended ended ended ended
December 31, December 31, December 31, August 31,
1997 1996 1995 1995
---- ---- ---- ----
(Dollars in millions)
<S> <C> <C> <C> <C>
Policy maintenance expense........................... $18.1 $37.8 $ 6.5 $14.0
State premium taxes and guaranty assessments......... 2.0 4.4 1.6 1.1
Commission expense................................... 8.1 12.1 5.0 8.6
----- ----- ----- -----
Other operating costs and expenses............ $28.2 $54.3 $13.1 $23.7
===== ===== ===== =====
</TABLE>
Anticipated returns from the investment of policyholder balances are
considered in determining the amortization of the cost of policies purchased and
cost of policies produced. The sales of fixed maturity investments during 1997,
1996 and 1995 changed the incidence of profits on such policies because
investment gains and losses were recognized currently and the expected future
yields on the investment of policyholder balances were affected. Accordingly,
amortization of the cost of policies purchased and cost of policies produced was
increased by $14.2 million in 1997, $2.5 million in 1996, $10.0 million in the
four months ended December 31, 1995 and $4.3 million for the eight months ended
August 31, 1995.
The changes in the cost of policies purchased were as follows:
<TABLE>
<CAPTION>
Year Year Four months Eight months
ended ended ended ended
December 31, December 31, December 31, August 31,
1997 1996 1995 1995
---- ---- ---- ----
(Dollars in millions)
<S> <C> <C> <C> <C>
Balance, beginning of period........................... $143.0 $120.0 $159.0 $173.9
Amortization related to operations:
Cash flow realized................................ (18.2) (26.2) (9.4) (19.1)
Interest added.................................... 11.8 13.1 5.0 12.7
Amortization related to sales of fixed maturity
investments....................................... (13.8) (2.2) (8.3) (3.4)
Amounts related to fair value adjustment of
actively managed fixed maturity securities........ (21.2) 36.6 (26.3) (64.1)
Adjustment of balance due to new accounting
basis and other................................... - 1.7 - 59.0
------ ------ ------ ------
Balance, end of period................................. $101.6 $143.0 $120.0 $159.0
====== ====== ====== ======
</TABLE>
F-23
<PAGE>
GREAT AMERICAN RESERVE INSURANCE COMPANY
Notes to Financial Statements
------------------------------
Based on current conditions and assumptions as to future events on all
policies in force, approximately 10 percent, 10 percent, 10 percent, 10 percent
and 11 percent of the cost of policies purchased as of December 31, 1997, are
expected to be amortized in each of the next five years, respectively. The
discount rates used to determine the amortization of the cost of policies
purchased ranged from 3.6 percent to 8.0 percent and averaged 5.8 percent.
The changes in the cost of policies produced were as follows:
<TABLE>
<CAPTION>
Year Year Four months Eight months
ended ended ended ended
December 31, December 31, December 31, August 31,
1997 1996 1995 1995
---- ---- ---- ----
(Dollars in millions)
<S> <C> <C> <C> <C>
Balance, beginning of period.......................... $38.2 $24.0 $25.9 $ 63.2
Additions.......................................... 31.8 13.2 3.0 6.6
Amortization related to operations................. (5.0) (3.2) (.5) (4.0)
Amortization related to sales of fixed maturity
investments...................................... (.4) (.3) (1.7) (.9)
Amounts related to fair value adjustment of
actively managed fixed maturity securities....... (3.9) 4.5 (2.7) (12.0)
Adjustment of balance due to new accounting basis.. - - - (27.0)
----- ----- ----- -------
Balance, end of period................................ $60.7 $38.2 $24.0 $ 25.9
===== ===== ===== =======
</TABLE>
8. STATEMENT OF CASH FLOWS
Income taxes paid during 1997, 1996, and 1995, were $14.8 million, $18.1
million and $19.3 million, respectively.
Short-term investments having original maturities of three months or less
are considered to be cash equivalents. All cash is invested in short-term
investments.
9. STATUTORY INFORMATION
Statutory accounting practices prescribed or permitted for insurance
companies by regulatory authorities differ from generally accepted accounting
principles. The Company reported the following amounts to regulatory agencies:
<TABLE>
<CAPTION>
December 31,
--------------------
1997 1996
---- ----
(Dollars in millions)
<S> <C> <C>
Statutory capital and surplus.................................................. $140.7 $140.3
Asset valuation reserve........................................................ 29.2 28.7
Interest maintenance reserve................................................... 68.8 63.1
------ ------
Total...................................................................... $238.7 $232.1
====== ======
</TABLE>
The Company's statutory net income was $32.7 million, $32.6 million and
$38.4 million in 1997, 1996 and 1995, respectively.
State insurance laws generally restrict the ability of insurance companies
to pay dividends or make other distributions. Approximately $32.9 million of the
Company's net assets at December 31, 1997, are available for distribution in
1998 without permission of state regulatory authorities.
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) The financial statements of Great American Reserve Insurance Company
and Great American Reserve Variable Annuity Account C are contained in
Part B of this Registration Statement.
(b) Exhibits
(1) -Resolution of the Board of Directors of Great American
Reserve authorizing the reorganization of Separate Account
dated July 27, 1992, incorporated by reference herein to
Form N-14 Registration Statement of Separate Account and
Conseco Series Trust (File No. 33-52288) filed on September
22, 1992.
(2) -Not Applicable.
(3) -Form of Principal Underwriting Agreement by and among Great
American Reserve, Variable Account and GARCO Equity Sales,
incorporated herein by reference to Form N-14 Registration
Statement of Variable Account and Conseco Series Trust (File
No. 33-52288) filed on September 22, 1992.
(4)(a) -- Form of Stipulated Single Premium Deferred
Fixed/Variable Annuity Contract, incorporated herein by
reference to Exhibit No. 6(a) to Pre-effective Amendment No.
1 to the Registration Statement Form N-3 (File No. 33-2460)
April 18, 1986.
(4)(b) -- Form of Individual Flexible Premium Deferred
Fixed/Variable Annuity Contract, incorporated herein by
reference to Exhibit No. 6(b) to Pre-effective Amendment No.
1 to the Registration Statement on Form N-3 (File No. 33-
2460) April 18, 1986.
(5)(a) -- Application for Contracts listed at Exhibits 6(a) and
6(b), incorporated herein by reference to Exhibit No. 7(a)
to Pre-effective Amendment No. 1 to the Registration
Statement on Form N-3 (File No. 33-2460) April 18, 1986.
(6) (i) -Articles of Incorporation of Great American Reserve.**
(6) (ii) -By Laws of Great American Reserve.**
(7) -Not Applicable.
(8) (i) Form of Fund Participation Agreement by and among the Alger
American Fund, Great American Reserve Insurance Company and
Fred Alger and Company, Incorporated.*
(ii) Form of Fund Participation Agreement by and among Great
Reserve Insurance Company, Berger Institutional Products
Trust and BBOI Worldwide LLC.*
(iii) Form of Fund Participation Agreement by and between Great
American Reserve Insurance Company, Insurance Management
Series and Federated Securities Corp.*
(iv) Form of Fund Participation Agreement between Great American
Reserve Insurance Company, Van Eck Worldwide Insurance Trust
and Van Eck Worldwide Insurance Trust and Van Eck Associates
Corporation.*
(v) Form of Fund Participation Agreement by and between Lord
Abbett Series Fund, Inc., Lord, Abbett and Co. and Great
American Reserve Insurance Company.*
(vi) Form of Fund Participation Agreement by and between American
Century Investment Services, Inc. and Great American Reserve
Insurance Company.*
(vii) Form of Fund Participation Agreement between INVESCO Variable
Investment Funds, Inc., INVESCO Funds Group, Inc. and the
Company.**
(9) -Opinion and Consent of Counsel.
(10) -- Consent of Independent Accountants.
(11) -- Not Applicable.
(12) -- None.
(13) -- Schedule for computation of performance quotations.
(27) -- Not Applicable.
*Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4, Great
American Reserve Variable Annuity Account F, File Nos. 333-40309/811-08483 filed
electronically on February 3, 1998.
**Incorporated by reference to Form N-4, Great American Reserve Variable Annuity
Account G, File Nos 333-00373/811-07501, filed electronically on January 23,
1996.
ITEM 25. DIRECTORS AND OFFICERS OF GREAT AMERICAN RESERVE
The following table sets forth certain information regarding the executive
officers of Great American Reserve who are engaged directly or indirectly in
activities relating to the Variable Account or the Contracts. Their principal
business address is 11815 N. Pennsylvania Street, Carmel, IN 46032.
Positions and Offices
Name with Great American Reserve
- - ------------------------ ----------------------------
Ngaire E. Cuneo Director
Stephen C. Hilbert Director and Chairman of the Board
Thomas J. Kilian Director and President
Rollin M. Dick Director, Executive Vice President
and Chief Financial Officer
John J. Sabl Director, Executive Vice President,
General Counsel and Secretary
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT
The following information concerns those companies that may be deemed to be
controlled by or under common control with Registrant (all 100% owned unless
indicated otherwise):
CONSECO, INC. (Indiana) - (publicly traded)
CIHC, Incorporated (Delaware)
Bankers National Life Insurance Company (Texas)
National Fidelity Life Insurance Company (Missouri)
Bankers Life Insurance Company of Illinois (Illinois)
Bankers Life & Casualty Company (Illinois)
Certified Life Insurance Company (California)
Jefferson National Life Insurance Company of Texas (Texas)
Beneficial Standard Life Insurance Company (California)
Great American Reserve Insurance Company (Texas)
American Life Holdings, Inc. (Delaware)
American Life Holding Company (Delaware)
American Life and Casualty Insurance Company (Iowa)
Vulcan Life Insurance Company (Alabama) - (98%)
Life Partners Group, Inc. (Delaware)
Wabash Life Insurance Company (Kentucky)
Massachusetts General Life Insurance Company (Massachusetts)
Philadelphia Life Insurance Company (Pennsylvania)
Lamar Life Insurance Company (Mississippi)
American Travellers Life Insurance Company (Pennsylvania)
United General Life Insurance Company (Texas)
American Travellers Insurance Company of New York (New York)
Intermediate Holdings, Inc. (Delaware)
THD, Inc. (Delaware)
TLIC Life Insurance Company (Texas)
Transport Life Insurance Company (Texas)
Continental Life Insurance Company (Texas)
Capitol American Financial Corporation (Ohio)
Capitol Insurance Company of Ohio (Ohio)
Capitol American Life Insurance Company (Arizona)
Frontier National Life Insurance Company (Ohio)
Capitol National Life Insurance Company (Ohio)
Conseco Capital Management, Inc. (Delaware)
Conseco Equity Sales, Inc. (Texas)
Conseco Financial Services, Inc. (Pennsylvania)
Conseco Marketing, LLC (Indiana)
Conseco Services, LLC (Indiana)
Lincoln American Life Insurance Company (Tennessee)
Marketing Distribution Systems, Consulting Group, Inc. (Delaware)
MDS of New Jersey, Inc. (New Jersey)
MDS Securities Incorporated (Delaware)
Bankmark School of Business, Inc. (Delaware)
Conseco Series Trust (Massachusetts)*
Conseco Fund Group (Massachusetts) (publicly held)**
* The shares of Conseco Series Trust currently are sold to Bankers National
Variable Account B, Great American Reserve Variable Annuity Account C,
Great American Reserve Variable Annuity Account E and Great American
Reserve Variable Annuity Account F, each being segregated asset accounts
established pursuant to Texas law by Bankers National Life Insurance
Company and Great American Reserve Insurance Company, respectively.
** The shares of the Conseco Fund Group are sold to the public; Conseco
affiliates currently hold in excess of 95% of its shares.
ITEM 27. NUMBER OF CONTRACT OWNERS
As of March 31, 1998, there were 28,498 Contract Owners of qualified
contracts and 857 contract owners of non-qualified contracts.
ITEM 28. INDEMNIFICATION
The Board of Directors of Great American Reserve is indemnified by Great
American Reserve against claims and liabilities to which such person may become
subject by reason of having been a member of such Board or by reason of any
action alleged to have been taken or omitted by him as such member, and the
member shall be indemnified for all legal and other expenses reasonably incurred
by him in connection with any such claim or liability; however, no
indemnification shall be made in connection with any claim or liability unless
such person (i) conducted himself in good faith, (ii) in the case of conduct in
his official capacity as a member of the Board of Directors, reasonably believed
that his conduct was in the best interests of Variable Account, and, in all
other cases reasonably believed that his conduct was at least not opposed to the
best interests of Variable Account, and (iii) in the case of any criminal
proceeding, had no reasonable cause to believe that his conduct was unlawful.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to members of Great American Reserve's Board of
Directors, officers and controlling persons of the Registrant pursuant to the
provisions described under "Indemnification" or otherwise, the Registrant has
been advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than payment by the Registrant of expenses incurred or
paid by a member of the Board of Directors, officer or controlling person of the
Registrant in the successful defense of any action, suit or proceeding) is
asserted by such member of the Board of Directors, officer or controlling person
in connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the Act
and will be governed by the final adjudication of such issue.
The Variable Account has no officers or employees. Employees of an
affiliated company who perform administrative services for the Variable Account
are covered by an officers and directors liability policy.
ITEM 29. PRINCIPAL UNDERWRITER
(a) Conseco Equity Sales, Inc. ("Conseco Equity Sales") is the principal
underwriter for the following investment companies (other than Registrant):
Great American Reserve Variable Annuity Account E
Great American Reserve Variable Annuity Account F
Great American Reserve Variable Annuity Account G
Conseco Fund Group
(b) The following table sets forth certain information regarding such
underwriter's officers and directors. Their address is 11815 N.
Pennsylvania Street, Carmel, IN 46032.
Positions and Offices
Name with Conseco Equity Sales, Inc.
- - ----------------------- --------------------------------
L. Gregory Gloeckner President and Director
Senior Vice President,
James S. Adams Treasurer and Director
Vice President, Senior Counsel,
William P. Latimer Secretary and Director
William T. Devanney, Jr. Senior Vice President,
Corporate Taxes
Christene H. Darnell Vice President, Management
Reporting
Lisa M. Zimmerman Assistant Vice President,
Corporate Taxes
Christine E. Monical Second Vice President and
Assistant General Counsel
<TABLE>
<CAPTION>
Net Underwriting Compensation on
Name of Discounts and Redemption or Brokerage
Principal Underwriter Commissions Annuitization Commissions Compensation*
- - --------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Conseco Equity None None None None
Sales, Inc.
</TABLE>
*Fees paid by Great American Reserve for serving as underwriter
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
The accounts, books, or other documents required to be maintained by the
Registrant pursuant to Section 31(a) of the Investment Company Act of 1940 and
the rules promulgated thereunder are in the possession of Great American Reserve
Insurance Company, 11825 N. Pennsylvania Street, Carmel, Indiana 46032.
ITEM 31. MANAGEMENT SERVICES
Not Applicable.
ITEM 32. UNDERTAKINGS
1. The Registrant hereby undertakes to file a post-effective amendment to
this registration statement as frequently as is necessary to ensure that the
audited financial statements in the registration statement are never more than
16 months old for so long as payments under the variable annuity contracts may
be accepted.
2. The Registrant hereby undertakes to include either (1) as part of any
application to purchase a contract offered by the prospectus, a space that an
applicant can check to request a Statement of Additional Information, or (2) a
postcard or similar written communication affixed to or included in the
prospectus that the applicant can remove to send for a Statement of Additional
Information.
3. The Registrant hereby undertakes to deliver any Statement of Additional
Information and any financial statements required to be made available under
Form N-4 promptly upon written or oral request.
4. The Securities and Exchange Commission (the "SEC") issued the American
Counsel of Life Insurance an industry wide no-action letter dated November 28,
1988, stating that the SEC would not recommend any enforcement action if
registered separate accounts funding tax-sheltered annuity contracts restrict
distributions to plan participants in accordance with the requirements of
Section 403(b)(11), provided certain conditions and requirements were met. Among
these conditions and requirements, any registered separate account relying on
the no-action position of the SEC must:
(1) Include appropriate disclosure regarding the redemption restrictions
imposed by Section 403(b)(11) in each registration statement, including the
prospectus, used in connection with the offer of the contract;
(2) Include appropriate disclosure regarding the redemption restrictions
imposed by Section 403 (b)(11) in any sales literature used in connection with
the offer in the contract;
(3) Instruct sales representatives who solicit participants to purchase the
contract specifically to bring the redemption restrictions imposed by Section
403(b)(11) to the attention of the potential participants; and
(4) Obtain from each plan participant who purchases a Section 403(b)
annuity contract, prior to or at the time of such purchase, a signed statement
acknowledging the participant's understanding of (i) the restrictions on
redemption imposed by Section 403(b)(11), and (ii) the investment alternatives
available under the employer's Section 403(b) arrangement, to which the
participant may elect to transfer his contract value.
The Registrant is relying on the no-action letter. Accordingly, the
provisions of paragraphs (1) - (4) above have been complied with.
5. Great American Reserve represents that the fees and charges deducted
under the Contracts, in the aggregate, are reasonable in relation to the
services rendered, the expenses expected to be incurred, and the risks assumed
by Great American Reserve.
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant certifies that it meets the requirements of Securities Act
Rule 485(b) for effectiveness of this Registration Statement and has caused this
Registration Statement to be signed on its behalf, in the city of Carmel, State
of Indiana, on this 16th day of April, 1998.
GREAT AMERICAN RESERVE VARIABLE ANNUITY
ACCOUNT C
Registrant
By: Great American Reserve Insurance Company
By: /S/ THOMAS J. KILIAN
-------------------------------------------
GREAT AMERICAN RESERVE INSURANCE COMPANY
Depositor
By: /S/ THOMAS J. KILIAN
--------------------------------------------
As required by the Securities Act of 1933, this Registration Statement has
been signed below by the following persons in the capacities and on the dates
indicated.
<TABLE>
<CAPTION>
Signature Title Date
- - --------- ----- ----
<S> <C> <C>
/S/ STEPHEN C. HILBERT Director and Chairman of the Board 4/16/98
- - ------------------------------
Stephen C. Hilbert
/S/ THOMAS J. KILIAN Director and President 4/16/98
- - ------------------------- (Principal Executive Officer)
Thomas J. Kilian
/S/ ROLLIN M. DICK Director, Executive Vice President 4/16/98
- - -------------------------------- and Chief Financial Officer
Rollin M. Dick (Principal Financial and Accounting
Officer)
Director
- - -------------------------------
Ngaire E. Cuneo
/S/ JOHN J. SABL 4/16/98
- --------------------------------- Director, Executive Vice President,
John J. Sabl General Counsel and Secretary
</TABLE>
INDEX TO EXHIBITS
Exhibit Sequentially
Number Exhibit Numbered Page
- - ------ ------- -------------
EX-99.B9 Opinion and Consent of Counsel.
EX-99.B10 Consent of Independent Accountants.
EX-99.B13 Performance Quotations
April 27, 1998
Board of Directors
Great American Reserve Insurance Company
Re: Great American Reserve Variable Annuity Account C (Individual Prospectus)
Registration Statement on Form N-4
Gentlemen and Madam:
I am Executive Vice President, Secretary and General Counsel of Great
American Reserve Insurance Company (the "Company"). At your request, I have
examined or caused to be examined the Registration Statement on Form N-4, (the
"Registration Statement") of Great American Reserve Variable Annuity Account C
(Individual Prospectus) (the "Registrant" or "Account") with respect to the
securities issued in connection with the Account offering variable annuity
contracts. The Registrant's Form N-4 Registration Statement is filed pursuant to
the Securities Act of 1933 (the "Act") and the Investment Company Act of 1940
("1940 Act"). This opinion is being furnished pursuant to the Act in connection
with the Registrant's Form N-4 Registration Statement. No fee is payable because
the Registrant files a declaration of indefinite registration pursuant to Rule
24f-2 under the 1940 Act.
In rendering this opinion, I, or attorneys under my supervision (together
referred to herein as "we"), have examined and relied upon a copy of the
Registration Statement. We have also examined originals, or copies of originals
certified to our satisfaction, of such agreements, documents, certificates and
statements of government officials and other instruments, and have examined such
questions of law and have satisfied ourselves as to such matters of fact, as we
have considered relevant and necessary as a basis for this opinion. We have
assumed the authenticity of all documents submitted to us as originals, the
genuineness of all signatures, the legal capacity of all natural persons and the
conformity with the original documents of any copies thereof submitted to us for
examination.
Based on the foregoing, and subject to the qualifications and limitations
hereinafter set forth, I am of the opinion that:
1. The Account has been duly organized and is an existing separate account
pursuant to the applicable laws of the State of Texas;
2. The Account is a unit investment trust registered under the 1940 Act;
3. The securities issued in connection with the Account offering variable
annuity contracts, when issued as described in the Registration Statement, will
be duly authorized and upon issuance will be validly issued, fully paid and
non-assessable; and
I do not find it necessary for the purposes of this opinion to cover, and
accordingly I express no opinion as to, the application of the securities or
blue sky laws of the various states to the sale of the securities to be
registered pursuant to the Registration Statement. Without limiting the
generality of the foregoing, I express no opinion in connection with the matters
contemplated by the Registration Statement, and no opinion may be implied or
inferred, except as expressly set forth herein.
This opinion is limited to the laws of the State of Indiana and of the United
States of America to the extent applicable. If any of the securities included in
the Registration Statement are governed by the laws of a state other than
Indiana, I have assumed for the purposes of this opinion that the laws of such
other state are the same as those of the State of Indiana.
I hereby consent to the inclusion of the opinion as Exhibit B-9 to the
Registration Statement and to all references to me in the Registration Statement
or the Prospectus included therein.
Very truly yours,
/s/JOHN J. SABL
- -----------------------------------
John J. Sabl
Executive Vice President, Secretary,
and General Counsel
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the inclusion in Post-Effective Amendment No. 15 to the
Registration Statement of Great American Reserve Variable Annuity Account
C (the "Account") on Form N-4 (File Nos. 33-2460 and 811-4819) of:
(1) Our report dated February 23, 1998, on our audits of the financial
statements of the Account; and
(2) Our report dated April 20, 1998, on our audits of the financial
statements of Great American Reserve Insurance Company.
We also consent to the reference to our Firm under the caption "Independent
Accountants."
/S/ COOPERS & LYBRAND L.L.P.
----------------------------
Coopers & Lybrand L.L.P.
Indianapolis, Indiana
April 21, 1998
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE ASSET ALLOCATION - ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.740091 574.683 1996 1.536353 (0.312) 574.371 2.030312 1,166.15 7% (81.63)
1995 1.370019 729.917 1995 1.219212 (0.394) 729.211 2.030312 1,480.53 6% (88.83)
1994 1.052332 950.270 1994 1.000886 (0.480) 949.084 2.030312 1,926.94 90% * 5% (86.71)
1993 1.068438 935.946 1993 1.023806 (0.469) 934.604 2.030312 1,897.54 90% * 4% (68.31)
Incep 1.000000 1,000.000 1992 0.000000 0.000 998.345 2.030312 2,026.95 90% * 3% (54.73)
1991 1991 0.000000 0.000 2.030312
1990 0.000000 0.000 2.030312
1989 0.000000 0.000 2.030312
1988 0.000000 0.000 2.030312
1987 ERR 0.000 1987 0.000000 0.000 (1.655) 2.030312 (3.36) NONE 0.00
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE ASSET ALLOCATION - ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,084.52 (0.48) 1,084.04 8.40%
1995 1,391.70 (0.48) 1,391.22 17.95%
1994 1,840.23 (0.48) 1,839.75 22.53%
1993 1,829.23 (0.48) 1,828.75 16.29%
Incep 1,972.22 (0.48) 1,971.74 15.64%
1991 5 YRS
1987 (3.36) (0.48) (3.84) 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.740091 574.683 1996 1.536353 (0.553) 574.130 2.030312 1,165.66 90% * 8% (83.93)
1995 1.370019 729.917 1995 1.219212 (0.697) 728.667 2.030312 1,479.42 90% * 7% (93.20)
1994 1.052332 950.270 1994 1.000886 (0.849) 948.171 2.030312 1,925.08 90% * 6% (103.95)
1993 1.068438 935.946 1993 1.023806 (0.830) 933.017 2.030312 1,894.32 90% * 5% (85.24)
Incep 1.000000 1,000.000 1992 0.000000 0.000 997.071 2.030312 2,024.37 90% * 4% (72.88)
1991 0.000000 0.000 1991 0.000000 0.000
1990 0.000000 0.000
1989 0.000000 0.000
1988 0.000000 0.000
1987 0.000000 0.000 1987 0.000000 0.000 (2.929) 2.030312 (5.95) NONE 0.00
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,081.73 (0.85) 1,080.88 8.09%
1995 1,386.22 (0.85) 1,385.37 17.70%
1994 1,821.13 (0.85) 1,820.28 22.10%
1993 1,809.08 (0.85) 1,808.23 15.96%
Incep 1,951.49 (0.85) 1,950.64 15.38%
1991 5 YRS
1987 (5.95) (0.85) (6.80) 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.740091 574.683 1996 1.536353 (0.417) 574.266 2.030312 1,165.94 90% * 5% (52.47)
1995 1.370019 729.917 1995 1.219212 (0.525) 728.975 2.030312 1,480.05 90% * 5% (66.60)
1994 1.052332 950.270 1994 1.000886 (0.639) 948.689 2.030312 1,926.13 90% * 5% (86.68)
1993 1.068438 935.946 1993 1.023806 (0.625) 933.740 2.030312 1,895.78 90% * 5% (85.31)
Incep 1.000000 1,000.000 1992 0.000000 0.000 997.794 2.030312 2,025.83 90% * 3% (54.70)
1991 0.000000 0.000 1991 0.000000 0.000
1990 0.000000 0.000
1989 0.000000 0.000
1988 0.000000 0.000
1987 ERR 0.000 1987 0.000000 0.000 (2.206) 0.000000 0.00 90% * 2% 0.00
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,113.47 (0.64) 1,112.83 11.28%
1995 1,413.45 (0.64) 1,412.81 18.86%
1994 1,839.45 (0.64) 1,838.81 22.51%
1993 1,810.47 (0.64) 1,809.83 15.99%
Incep 1,971.13 (0.64) 1,970.49 15.63%
1991 5 YRS
1987 0.00 (0.64) (0.64) 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE ASSET ALLOCATION- ACCOUNT 'C'
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.740091 574.683 1996 1.536353 0.000 574.683 2.030312 1,166.79
1995 1.370019 729.917 1995 1.219212 0.000 729.917 2.030312 1,481.96
1994 1.052332 950.270 1994 1.000886 0.000 950.270 2.030312 1,929.34
1993 1.068438 935.946 1993 1.023806 0.000 935.946 2.030312 1,900.26
Incep 1.000000 1,000.000 1992 0.000000 0.000 1,000.000 2.030312 2,030.31
1991 1991 0.000000 0.000 2.030312
1990 0.000000 0.000 2.030312
1989 0.000000 0.000 2.030312
1988 0.000000 0.000 2.030312
1987 0.000000 0.000 1987 0.000000 0.000 0.000 2.030312 0.00 NONE
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE ASSET ALLOCATION- ACCOUNT 'C'
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,166.79 0.00 1,166.79 16.68%
1995 1,481.96 0.00 1,481.96 21.74%
1994 1,929.34 0.00 1,929.34 24.49%
1993 1,900.26 0.00 1,900.26 17.41%
Incep 2,030.31 0.00 2,030.31 16.37%
1991 5 YRS
1987 0.00 0.00 0.00 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.740091 574.683 1996 1.536353 0.000 574.683 2.030312 1,166.79
1995 1.370019 729.917 1995 1.219212 0.000 729.917 2.030312 1,481.96
1994 1.052332 950.270 1994 1.000886 0.000 950.270 2.030312 1,929.34
1993 1.068438 935.946 1993 1.023806 0.000 935.946 2.030312 1,900.26
Incep 1.000000 1,000.000 1992 0.000000 0.000 1,000.000 2.030312 2,030.31
1991 0.000000 0.000 1991 0.000000 0.000
1990 0.000000 0.000
1989 0.000000 0.000
1988 0.000000 0.000
1987 0.000000 0.000 1987 0.000000 0.000 0.000 2.030312 0.00 NONE
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,166.79 0.00 1,166.79 16.68%
1995 1,481.96 0.00 1,481.96 21.74%
1994 1,929.34 0.00 1,929.34 24.49%
1993 1,900.26 0.00 1,900.26 17.41%
Incep 2,030.31 0.00 2,030.31 16.37%
1991 5 YRS
1987 0.00 0.00 0.00 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.740091 574.683 1996 1.536353 0.000 574.683 2.030312 1,166.79
1995 1.370019 729.917 1995 1.219212 0.000 729.917 2.030312 1,481.96
1994 1.052332 950.270 1994 1.000886 0.000 950.270 2.030312 1,929.34
1993 1.068438 935.946 1993 1.023806 0.000 935.946 2.030312 1,900.26
Incep 1.000000 1,000.000 1992 0.000000 0.000 1,000.000 2.030312 2,030.31
1991 0.000000 0.000 1991 0.000000 0.000
1990 0.000000 0.000
1989 0.000000 0.000
1988 0.000000 0.000
1987 0.000000 0.000 1987 0.000000 0.000 0.000 0.000000 0.00
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,166.79 0.00 1,166.79 16.68%
1995 1,481.96 0.00 1,481.96 21.74%
1994 1,929.34 0.00 1,929.34 24.49%
1993 1,900.26 0.00 1,900.26 17.41%
Incep 2,030.31 0.00 2,030.31 16.37%
1991 5 YRS
1987 0.00 0.00 0.00 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN LEVERAGED ALLCAP
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.565215 638.890 1996 1.564112 (0.307) 638.583 1.854611 1,184.32 7% (82.90)
1995 1.411177 708.628 1995 1.186167 (0.405) 707.916 1.854611 1,312.91 6% (78.77)
INCEP 1.000000 1,000.000 N/A 0 0.000 999.288 1.854611 1,853.29 90% * 5% (83.40)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN LEVERAGED ALLCAP
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,101.42 (0.48) 1,100.94 10.09%
1995 1,234.14 (0.48) 1,233.66 11.07%
INCEP 1,769.89 (0.48) 1,769.41 24.69%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.565215 638.890 1996 1.564112 (0.543) 638.347 1.854611 1,183.88 90% * 8% (85.24)
1995 1.411177 708.628 1995 1.186167 (0.717) 707.368 1.854611 1,311.89 90% * 7% (82.65)
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 998.740 1.854611 1,852.27 90% * 6% (100.02)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,098.64 (0.85) 1,097.79 9.78%
1995 1,229.24 (0.85) 1,228.39 10.83%
INCEP 1,752.25 (0.85) 1,751.40 24.20%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.565215 638.890 1996 1.564112 (0.409) 638.481 1.854611 1,184.13 90% * 5% (53.29)
1995 1.411177 708.628 1995 1.186167 (0.540) 707.679 1.854611 1,312.47 90% * 5% (59.06)
INCEP 1 1,000.000 N/A 0 0.000 999.051 1.854611 1,852.85 90% * 5% (83.38)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,130.84 (0.64) 1,130.20 13.02%
1995 1,253.41 (0.64) 1,252.77 11.93%
INCEP 1,769.47 (0.64) 1,768.83 24.68%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN SMALL CAPITALIZATION
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.260092 793.593 1996 1.313145 (0.366) 793.227 1.389672 1,102.33 7% (77.16)
1995 1.221763 818.489 1995 1.136740 (0.422) 818.067 1.389672 1,136.84 6% (68.21)
INCEP 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.389672 1,389.67 90% * 5% (62.54)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN SMALL CAPITALIZATION
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,025.17 (0.48) 1,024.69 2.47%
1995 1,068.63 (0.48) 1,068.15 3.35%
INCEP 1,327.13 0.00 1,327.13 11.57%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.260092 793.593 1996 1.313145 (0.647) 792.946 1.389672 1,101.93 90% * 8% (79.34)
1995 1.221763 818.489 1995 1.136740 (0.748) 817.741 1.389672 1,136.39 90% * 7% (71.59)
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.389672 1,389.67 90% * 6% (75.04)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,022.59 (0.85) 1,021.74 2.17%
1995 1,064.80 (0.85) 1,063.95 3.15%
INCEP 1,314.63 (0.85) 1,313.78 11.13%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.260092 793.593 1996 1.313145 (0.487) 793.106 1.389672 1,102.16 90% * 5% (49.60)
1995 1.221763 818.489 1995 1.136740 (0.563) 817.926 1.389672 1,136.65 90% * 5% (51.15)
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.389672 1,389.67 90% * 5% (62.54)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,052.56 (0.64) 1,051.92 5.19%
1995 1,085.50 (0.64) 1,084.86 4.16%
INCEP 1,327.13 (0.64) 1,326.49 11.54%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.204209 1,204.21 7% (84.29)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 1,119.92 0.00 1,119.92 18.39%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.204209 1,204.21 90% * 8% (86.70)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 1,117.51 (0.85) 1,116.66 17.87%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.204209 1,204.21 90% * 5% (54.19)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 1,150.02 (0.64) 1,149.38 23.06%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN MIDCAP GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.199131 1,199.13 7% (83.94)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN MIDCAP GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 1,115.19 0.00 1,115.19 17.64%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.199131 1,199.13 90% * 8% (86.34)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 1,112.79 (0.85) 1,111.94 17.13%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.199131 1,199.13 90% * 5% (53.96)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 1,145.17 (0.64) 1,144.53 22.28%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
AMERICAN CENTURY INTERNATIONAL FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.095879 1,095.88 7% (76.71)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
AMERICAN CENTURY INTERNATIONAL FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,019.17 (0.48) 1,018.69 2.80%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.095879 1,095.88 90% * 8% (78.90)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,016.98 (0.85) 1,016.13 2.41%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.095879 1,095.88 90% * 5% (49.31)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,046.57 (0.64) 1,045.93 6.92%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
AMERICAN CENTURY VALUE FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incept 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.229266 1,229.27 7% (86.05)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
AMERICAN CENTURY VALUE FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incept 1,143.22 (0.48) 1,142.74 22.00%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.229266 1,229.27 90% * 8% (88.51)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,140.76 (0.85) 1,139.91 21.55%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.229266 1,229.27 90% * 5% (55.32)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,173.95 (0.64) 1,173.31 26.90%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
AMERICAN CENTURY INTERNATIONAL FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.095879 1,095.88
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
AMERICAN CENTURY INTERNATIONAL FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Incep 1,095.88 0.00 1,095.88 14.62% 0.167123
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.095879 1,095.88
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,095.88 0.00 1,095.88 14.62%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.095879 1,095.88
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,095.88 0.00 1,095.88 14.62%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
AMERICAN CENTURY VALUE FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incept 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.229266 1,229.27
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
AMERICAN CENTURY VALUE FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incept 1,229.27 0.00 1,229.27 36.02%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.229266 1,229.27
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,229.27 0.00 1,229.27 36.02%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.229266 1,229.27
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,229.27 0.00 1,229.27 36.02%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT 100 FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.135520 1,135.52 7% (79.49)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT 100 FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,056.03 (0.48) 1,055.55 8.39%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE -0.85 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.135520 1135.52 90% * 8% (81.76)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,053.76 (0.85) 1,052.91 7.99%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.640000) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.135520 1135.52 90% * 5% (51.10)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,084.42 (0.64) 1,083.78 12.74%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT GROWTH & INCOME FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incept 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.218651 1,218.65 7% (85.31)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT GROWTH & INCOME FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incept 1,133.34 (0.48) 1,132.86 20.43%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.218651 1,218.65 90% * 8% (87.74)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,130.91 (0.85) 1,130.06 19.99%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.218651 1,218.65 90% * 5% (54.84)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,163.81 (0.64) 1,163.17 25.26%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT SMALL COMPANY FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.373833 1,373.83 7% (96.17)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT SMALL COMPANY FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,277.66 (0.48) 1,277.18 44.00%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.00 0.000 1,000.000 1.373833 1373.83 90% * 8% (98.92)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,274.91 (0.85) 1,274.06 43.47%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000 1,000.000 N/A 0.000000 0.000 1,000.000 1.373833 1,373.83 90% * 5% (61.82)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,312.01 (0.64) 1,311.37 49.78%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT BIAM INTERNATIONAL
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 0.972478 972.48 7% (68.07)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT BIAM INTERNATIONAL
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 904.41 (0.48) 903.93 -13.97%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ((POUND)0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.00 0.000 1,000.000 0.972478 972.48 90% * 8% (70.02)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 902.46 (0.85) 901.61 -14.30%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ((POUND)0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000 1,000.000 N/A 0.000000 0.000 1,000.000 0.972478 972.48 90% * 5% (43.76)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 928.72 (0.64) 928.08 -10.53%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE CORPORATE BOND - ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.990233 200.391 1996 4.727581 (0.102) 200.289 5.444823 1,090.54 7% (76.34)
1995 4.544560 (0.106)
1994 4.080470 245.070 1994 4.045607 (0.119) 244.743 5.444823 1,332.58 90% * 5% (59.97)
1993 4.090337 (0.117)
1992 3.767690 265.415 1992 3.451300 (0.139) 264.832 5.444823 1,441.96 90% * 3% (38.93)
1991 3.090219 (0.155)
1990 2.786065 (0.172)
1989 2.649161 (0.181)
1988 2.313835 (0.207)
1987 2.244981 445.438 1987 2.207185 (0.217) 443.923 5.444823 2,417.08 NONE 0.00
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE CORPORATE BOND - ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE (ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,014.20 (0.48) 1,013.72 1.37%
1 YR
1994 1,272.61 (0.48) 1,272.13 8.35%
3 YRS
1992 1,403.03 (0.48) 1,402.55 7.00%
5 YRS
1987 2,417.08 (0.48) 2,416.60 9.22%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.990233 200.391 1996 4.727581 (0.180) 200.211 5.444823 1,090.11 90% * 8% (78.49)
1995 4.544560 (0.187)
1994 4.080470 245.070 1994 4.045607 (0.210) 244.493 5.444823 1,331.22 90% * 6% (71.89)
1993 4.090337 (0.208)
1992 3.767690 265.415 1992 3.451300 (0.246) 264.384 5.444823 1,439.52 90% * 4% (51.82)
1991 3.090219 (0.275)
1990 2.786065 (0.305)
1989 2.649161 (0.321)
1988 2.313835 (0.367)
1987 2.244981 445.438 1987 2.207185 (0.385) 442.754 5.444823 2,410.72 NONE 0.00
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE (ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,011.62 (0.85) 1,010.77 1.08%
1 YR
1994 1,259.33 (0.85) 1,258.48 7.96%
3 YRS
1992 1,387.70 (0.85) 1,386.85 6.76%
5 YRS
1987 2,410.72 (0.85) 2,409.87 9.19%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.990233 200.391 1996 4.727581 (0.135) 200.256 5.444823 1,090.36 90% * 5% (49.07)
1995 4.544560 (0.141)
1994 4.080470 245.070 1994 4.045607 (0.158) 244.636 5.444823 1,332.00 90% * 5% (59.94)
1993 4.090337 (0.156)
1992 3.767690 265.415 1992 3.451300 (0.185) 264.640 5.444823 1,440.92 90% * 3% (38.90)
1991 3.090219 (0.207)
1990 2.786065 (0.230)
1989 2.649161 (0.242)
1988 2.313835 (0.277)
1987 2.244981 445.438 1987 2.207185 (0.290) 443.417 5.444823 2,414.33 90% * 2% (43.46)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE (ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,041.29 (0.64) 1,040.65 4.07%
1 YR
1994 1,272.06 (0.64) 1,271.42 8.33%
3 YRS
1992 1,402.02 (0.64) 1,401.38 6.98%
5 YRS
1987 2,370.87 (0.64) 2,370.23 9.01%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
DREYFUS STOCK INDEX FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.407545 710.457 1996 1.275557 (0.376) 710.081 1.852833 1,315.66 7% (92.10)
1995 1.160310 861.839 1995 1.026896 (0.828) 860.635 1.852833 1,594.61 6% (95.68)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.852833 1,852.83 90% * 5% (83.38)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
DREYFUS STOCK INDEX FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,223.56 (0.48) 1,223.08 22.31%
1995 1,498.93 (0.48) 1,498.45 22.41%
Incep 1,769.45 (0.48) 1,768.97 24.68%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.407545 710.457 1996 1.275557 (0.666) 709.791 1.852833 1,315.12 90% * 8% (94.69)
1995 1.160310 861.839 1995 1.026896 (0.828) 860.345 1.852833 1,594.08 90% * 7% (100.43)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.852833 1,852.83 90% * 6% (100.05)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,220.43 (0.85) 1,219.58 21.96%
1995 1,493.65 (0.85) 1,492.80 22.18%
Incep 1,752.78 (0.85) 1,751.93 24.21%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.407545 710.457 1996 1.275557 (0.502) 709.955 1.852833 1,315.43 90% * 5% (59.19)
1995 1.160310 861.839 1995 1.026896 (0.623) 860.714 1.852833 1,594.76 90% * 5% (71.76)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.852833 1,852.83 90% * 5% (83.38)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,256.24 (0.64) 1,255.60 25.56%
1995 1,523.00 (0.64) 1,522.36 23.38%
Incep 1,769.45 (0.64) 1,768.81 24.67%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
DREYFUS SOCIALLY RESPONSIBLE GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.413293 707.567 1996 1.281265 (0.375) 707.192 1.796406 1,270.40 7% (88.93)
1995 1.177597 849.187 1995 1.042914 (0.460) 848.352 1.796406 1,523.98 6% (91.44)
Incept 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.796406 1,796.41 90% * 5% (80.84)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
DREYFUS SOCIALLY RESPONSIBLE GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,181.47 (0.48) 1,180.99 18.10%
1995 1,432.54 (0.48) 1,432.06 19.67%
Incept 1,715.57 (0.48) 1,715.09 23.20%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.413293 707.567 1996 1.281265 (0.663) 706.904 1.796406 1,269.89 90% * 8% (91.43)
1995 1.177597 849.187 1995 1.042914 (0.815) 848.372 1.796406 1,524.02 90% * 7% (96.01)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.796406 1,796.41 90% * 6% (97.01)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,178.46 (0.85) 1,177.61 17.76%
1995 1,428.01 (0.85) 1,427.16 19.46%
Incep 1,699.40 (0.85) 1,698.55 22.74%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.413293 707.567 1996 1.281265 (0.500) 707.067 1.796406 1,270.18 90% * 5% (57.16)
1995 1.177597 849.187 0 1.042914 (0.614) 848.573 1.796406 1,524.38 90% * 5% (68.60)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.796406 1,796.41 90% * 5% (80.84)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,213.02 (0.64) 1,212.38 21.24%
1995 1,455.78 (0.64) 1,455.14 20.63%
Incep 1,715.57 (0.64) 1,714.93 23.19%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED HIGH INCOME BOND II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.210427 826.155 1996 1.105616 (0.434) 825.721 1.364141 1,126.40 7% (78.85)
1995 1.069592 934.936 1995 0.996938 (0.481) 934.020 1.364141 1,274.14 6% (76.45)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 999.084 1.364141 1,362.89 90% * 5% (61.33)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED HIGH INCOME BOND II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,047.55 (0.48) 1,047.07 4.71%
1995 1,197.69 (0.48) 1,197.21 9.42%
Incep 1,301.56 (0.48) 1,301.08 10.71%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.210427 826.155 1996 1.105616 (0.769) 825.386 1.364141 1,125.94 90% * 8% (81.07)
1995 1.069592 934.936 1995 0.996938 (0.853) 933.315 1.364141 1,273.17 90% * 7% (80.21)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 998.379 1.364141 1,361.93 90% * 6% (73.54)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,044.87 (0.85) 1,044.02 4.40%
1995 1,192.96 (0.85) 1,192.11 9.18%
Incep 1,288.39 (0.85) 1,287.54 10.27%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.210427 826.155 1996 1.105616 (0.579) 825.576 1.364141 1,126.20 90% * 5% (50.68)
1995 1.069592 934.936 1995 0.996938 (0.642) 933.715 1.364141 1,273.72 90% * 5% (57.32)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 998.779 1.364141 1,362.48 90% * 5% (61.31)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,075.52 (0.64) 1,074.88 7.49%
1995 1,216.40 (0.64) 1,215.76 10.26%
Incep 1,301.17 (0.64) 1,300.53 10.70%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED INTERNATIONAL EQUITY II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.10235 907.153 1996 1.088006 (0.441) 906.712 1.201439 1,089.36 7% (76.26)
1995 1.027977 972.784 1995 1.002036 (0.479) 971.864 1.201439 1,167.64 6% (70.06)
Incep 1.000000 1,000.000 N/A 0 0.000 999.080 1.201439 1,200.33 90% * 5% (54.01)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED INTERNATIONAL EQUITY II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,013.10 (0.48) 1,012.62 1.26%
1995 1,097.58 (0.48) 1,097.10 4.74%
Incep 1,146.32 (0.48) 1,145.84 5.41%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.10235 907.153 1996 1.088006 (0.781) 906.372 1.201439 1,088.95 90% * 8% (78.40)
1995 1.027977 972.784 1995 1.002036 (0.848) 971.154 1.201439 1,166.78 90% * 7% (73.51)
Incep 1.000000 1,000.000 N/A 0 0.000 998.370 1.201439 1,199.48 90% * 6% (64.77)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,010.55 (0.85) 1,009.70 0.97%
1995 1,093.27 (0.85) 1,092.42 4.52%
Incep 1,134.71 (0.85) 1,133.86 4.98%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.10235 907.153 1996 1.088006 (0.588) 906.565 1.201439 1,089.18 90% * 5% (49.01)
1995 1.027977 972.784 1995 1.002036 (0.639) 971.557 1.201439 1,167.27 90% * 5% (52.53)
Incep 1.000000 1,000.000 N/A 0 0.000 998.773 1.201439 1,199.96 90% * 5% (54.00)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,040.17 (0.64) 1,039.53 3.95%
1995 1,114.74 (0.64) 1,114.10 5.55%
Incep 1,145.96 (0.64) 1,145.32 5.39%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED UTILITY II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.242795 804.638 1996 1.170346 (0.410) 804.228 1.558157 1,253.11 7% (87.72)
1995 1.125258 888.685 1995 0.997036 (0.481) 887.793 1.558157 1,383.32 6% (83.00)
Incep 1.000000 1,000.000 N/A 0 0.000 999.108 1.558157 1,556.77 90% * 5% (70.05)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED UTILITY II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,165.39 (0.48) 1,164.91 16.49%
1995 1,300.32 (0.48) 1,299.84 14.01%
Incep 1,486.72 (0.48) 1,486.24 16.56%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.242795 804.638 1996 1.170346 (0.726) 803.912 1.558157 1,252.62 90% * 8% (90.19)
1995 1.125258 888.685 1995 0.997036 (0.853) 887.106 1.558157 1,382.25 90% * 7% (87.08)
Incep 1.000000 1,000.000 N/A 0 0.000 998.421 1.558157 1,555.70 90% * 6% (84.01)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,162.43 (0.85) 1,161.58 16.16%
1995 1,295.17 (0.85) 1,294.32 13.77%
Incep 1,471.69 (0.85) 1,470.84 16.09%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.242795 804.638 1996 1.170346 (0.547) 804.091 1.558157 1,252.90 90% * 5% (56.38)
1995 1.125258 888.685 1995 0.997036 (0.642) 887.496 1.558157 1,382.86 90% * 5% (62.23)
Incep 1.000000 1,000.000 N/A 0 0.000 998.811 1.558157 1,556.30 90% * 5% (70.03)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,196.52 (0.64) 1,195.88 19.59%
1995 1,320.63 (0.64) 1,319.99 14.89%
Incep 1,486.27 (0.64) 1,485.63 16.54%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE GOVERNMENT SECURITIES - ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.176168 850.219 1996 1.129650 (0.425) 849.794 1.260680 1,071.32 7% (74.99)
1995 1.156290 864.835 1995 1.102656 (0.435) 863.975 1.260680 1,089.20 6% (65.35)
1994 0.995234 1,004.789 1994 0.991081 (0.484) 1,003.445 1.260680 1,265.02 90% * 5% (56.93)
1993 1.034206 966.925 1993 1.023440 (0.469) 965.112 1.260680 1,216.70 90% * 4% (43.80)
Incep 1.000000 1,000.000 1992 0.000000 0.000 1,000.000 1.260680 1,260.68 90% *3% (34.04)
1991 0.000000 0.000 1991 0.000000 0.000
1990 0.000000 0.000
1989 0.000000 0.000
1988 0.000000 0.000
1987 0.000000 0.000 1987 0.000000 0.000 1.260680 0.00 NONE 0.00
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE GOVERNMENT SECURITIES - ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE (ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 996.33 (0.48) 995.85 -0.42%
1995 1,023.85 (0.48) 1,023.37 1.16%
1994 1,208.09 (0.48) 1,207.61 6.49%
1993 1,172.90 (0.48) 1,172.42 4.06%
Incep 1,226.64 (0.48) 1,226.16 4.46%
1991
5 YRS
1987 0.00 (0.48) (0.48) 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.176168 850.219 1996 1.129650 (0.752) 849.467 1.260680 1,070.91 90% * 8% (77.11)
1995 1.156290 864.835 1995 1.102656 (0.771) 864.064 1.260680 1,089.31 90% * 7% (68.63)
1994 0.995234 1,004.789 1994 0.991081 (0.858) 1,002.408 1.260680 1,263.72 90% * 6% (68.24)
1993 1.034206 966.925 1993 1.023440 (0.831) 963.713 1.260680 1,214.93 90% * 5% (54.67)
Incep 1.000000 1,000.000 1992 0.000000 0.000 996.788 1.260680 1,256.63 90% * 5% (56.55)
1991 0.000000 @ROUND(1000/B41991 0.000000 0.000
0.000000 @ROUND(1000/B41990 0.000000 0.000
0.000000 @ROUND(1000/B41989 0.000000 0.000
0.000000 @ROUND(1000/B41988 0.000000 0.000
1987 0.000000 @ROUND(1000/B41987 0.000000 0.000 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE (ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 993.80 (0.85) 992.95 -0.70%
1995 1,020.68 (0.85) 1,019.83 0.99%
1994 1,195.48 (0.85) 1,194.63 6.11%
1993 1,160.26 (0.85) 1,159.41 3.77%
Incep 1,200.08 (0.85) 1,199.23 3.97%
1991 5 YRS
1987 I49*0.+I49+K49 (0.85) +L49+M49 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE ^FOR $1,000 FEE (0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.176168 850.219 1996 1.129650 (0.567) 849.652 1.260680 1,071.14 90% * 5% (48.20)
1995 1.156290 864.835 1995 1.102656 (0.580) 863.688 1.260680 1,088.83 90% * 5% (49.00)
1994 0.995234 1,004.789 1994 0.991081 (0.646) 1,002.996 1.260680 1,264.46 90% * 5% (56.90)
1993 1.034206 966.925 1993 1.023440 (0.625) 966.925 1.260680 1,218.98 90% * 5% (54.85)
Incep 1.000000 1,000.000 1992 0.000000 0.000 997.582 1.260680 1,257.63 90% * 3% (33.96)
1991 0.000000 0.000
1990 0.000000 0.000
1989 0.000000 0.000
1988 0.000000 0.000
1987 0.000000 0.000 1987 0.000000 0.000 (2.418) 1.260680 (3.05) 90% * 2% 0.05
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE (ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,022.94 (0.64) 1,022.30 2.23%
1995 1,039.83 (0.64) 1,039.19 1.94%
1994 1,207.56 (0.64) 1,206.92 6.47%
1993 1,164.13 (0.64) 1,163.49 3.86%
Incep 1,223.67 (0.64) 1,223.03 4.40%
5 YRS
1987 (3.00) (0.64) (3.64) 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
JANUS ASPEN AGGRESSIVE GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.356519 737.181 1996 1.411143 (0.340) 736.841 1.513110 1,114.92 7% (78.04)
1995 1.269335 787.814 1995 1.075680 (0.446) 787.028 1.513110 1,190.86 6% (71.45)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 999.214 1.513110 1,511.92 90% * 5% (68.04)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
JANUS ASPEN AGGRESSIVE GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,036.88 (0.48) 1,036.40 3.64%
1995 1,119.41 (0.48) 1,118.93 5.78%
Incep 1,443.88 (0.48) 1,443.40 15.25%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.356519 737.181 1996 1.411143 (0.602) 736.579 1.513110 1,114.52 90% * 8% (80.25)
1995 1.269335 787.814 1995 1.075680 (0.790) 786.421 1.513110 1,189.94 90% * 7% (74.97)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 998.607 1.513110 1,511.00 90% * 6% (81.59)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,034.27 (0.85) 1,033.42 3.34%
1995 1,114.97 (0.85) 1,114.12 5.55%
Incep 1,429.41 (0.85) 1,428.56 14.79%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.356519 737.181 1996 1.411143 (0.454) 736.727 1.513110 1,114.75 90% * 5% (50.16)
1995 1.269335 787.814 1995 1.075680 (0.595) 786.765 1.513110 1,190.46 90% * 5% (53.57)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 998.951 1.513110 1,511.52 90% * 5% (68.02)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,064.59 (0.64) 1,063.95 6.40%
1995 1,136.89 (0.64) 1,136.25 6.60%
Incep 1,443.50 (0.64) 1,442.86 15.23%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.356519 737.181 1996 1.411143 (0.454) 736.727 1.513110 1,114.75 90% * 5% (50.16)
1995 1.269335 787.814 1995 1.075680 (0.595) 786.765 1.513110 1,190.46 90% * 5% (53.57)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 998.951 1.513110 1,511.52 90% * 5% (68.02)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,064.59 (0.64) 1,063.95 6.40%
1995 1,136.89 (0.64) 1,136.25 6.60%
Incep 1,443.50 (0.64) 1,442.86 15.23%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.356519 737.181 1996 1.411143 (0.454) 736.727 1.513110 1,114.75 90% * 5% (50.16)
1995 1.269335 787.814 1995 1.075680 (0.595) 786.765 1.513110 1,190.46 90% * 5% (53.57)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 998.951 1.513110 1,511.52 90% * 5% (68.02)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,064.59 (0.64) 1,063.95 6.40%
1995 1,136.89 (0.64) 1,136.25 6.60%
Incep 1,443.50 (0.64) 1,442.86 15.23%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.356519 737.181 1996 1.411143 (0.454) 736.727 1.513110 1,114.75 90% * 5% (50.16)
1995 1.269335 787.814 1995 1.075680 (0.595) 786.765 1.513110 1,190.46 90% * 5% (53.57)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 998.951 1.513110 1,511.52 90% * 5% (68.02)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,064.59 (0.64) 1,063.95 6.40%
1995 1,136.89 (0.64) 1,136.25 6.60%
Incep 1,443.50 (0.64) 1,442.86 15.23%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.356519 737.181 1996 1.411143 (0.454) 736.727 1.513110 1,114.75 90% * 5% (50.16)
1995 1.269335 787.814 1995 1.075680 (0.595) 786.765 1.513110 1,190.46 90% * 5% (53.57)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 998.951 1.513110 1,511.52 90% * 5% (68.02)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,064.59 (0.64) 1,063.95 6.40%
1995 1,136.89 (0.64) 1,136.25 6.60%
Incep 1,443.50 (0.64) 1,442.86 15.23%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.356519 737.181 1996 1.411143 (0.454) 736.727 1.513110 1,114.75 90% * 5% (50.16)
1995 1.269335 787.814 1995 1.075680 (0.595) 786.765 1.513110 1,190.46 90% * 5% (53.57)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 998.951 1.513110 1,511.52 90% * 5% (68.02)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,064.59 (0.64) 1,063.95 6.40%
1995 1,136.89 (0.64) 1,136.25 6.60%
Incep 1,443.50 (0.64) 1,442.86 15.23%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.356519 737.181 1996 1.411143 (0.454) 736.727 1.513110 1,114.75 90% * 5% (50.16)
1995 1.269335 787.814 1995 1.075680 (0.595) 786.765 1.513110 1,190.46 90% * 5% (53.57)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 998.951 1.513110 1,511.52 90% * 5% (68.02)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,064.59 (0.64) 1,063.95 6.40%
1995 1,136.89 (0.64) 1,136.25 6.60%
Incep 1,443.50 (0.64) 1,442.86 15.23%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
NEUBERGER & BERMAN LIMITED MATURITY BOND FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.045932 1,045.93 7% (73.22)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
NEUBERGER & BERMAN LIMITED MATURITY BOND FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 972.71 (0.48) 972.23 -4.11%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.045932 1,045.93 90% * 8% (75.31)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 970.62 (0.85) 969.77 -4.47%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.045932 1,045.93 90% * 5% (47.07)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 998.86 (0.64) 998.22 -0.27%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
NEUBERGER & BERMAN PARTNERS FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incept 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.243195 1,243.20 7% (87.02)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
NEUBERGER & BERMAN PARTNERS FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incept 1,156.18 (0.48) 1,155.70 24.07%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.243195 1,243.20 90% * 8% (89.51)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,153.69 (0.85) 1,152.84 23.61%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.243195 1,243.20 90% * 5% (55.94)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,187.26 (0.64) 1,186.62 29.05%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE COMMON STOCK PORTFOLIO - ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 17.932908 55.763 1996 14.973025 (0.032) 55.731 21.147874 1,178.59 7% (82.50)
1995 10.726673 (0.045)
1994 9.190954 108.803 1994 8.340713 (0.058) 108.668 21.147874 2,298.10 90% * 5% (103.41)
1993 8.808635 (0.054)
1992 8.491681 117.762 1992 7.489042 (0.064) 117.509 21.147874 2,485.07 90% * 3% (67.10)
1991 6.653195 (0.072)
1990 6.373056 (0.075)
1989 5.544310 (0.087)
1988 5.028553 (0.095)
1987 4.491228 222.656 1987 5.538138 (0.087) 221.987 21.147874 4,694.55 NONE 0.00
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE COMMON STOCK PORTFOLIO - ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- --------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,096.09 (0.48) 1,095.61 9.56%
1 YR
1994 2,194.69 (0.48) 2,194.21 29.94%
3 YRS
1992 2,417.97 (0.48) 2,417.49 19.31%
5 YRS
1987 4,694.55 (0.48) 4,694.07 16.72%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 17.932908 55.763 1996 14.973025 (0.057) 55.706 21.147874 1,178.06 90% * 8% (84.82)
1995 10.726673 (0.079)
1994 9.190954 108.803 1994 8.340713 (0.102) 108.565 21.147874 2,295.92 90% * 6% (123.98)
1993 8.808635 (0.096)
1992 8.491681 117.762 1992 7.489042 (0.113) 117.315 21.147874 2,480.96 90% * 4% (89.31)
1991 6.653195 (0.128)
1990 6.373056 (0.133)
1989 5.544310 (0.153)
1988 5.028553 (0.169)
1987 4.491228 222.656 1987 5.538138 (0.153) 221.473 21.147874 4,683.68 NONE 0.00
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- --------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,093.24 (0.85) 1,092.39 9.24%
1 YR
1994 2,171.94 (0.85) 2,171.09 29.49%
3 YRS
1992 2,391.65 (0.85) 2,390.80 19.04%
5 YRS
1987 4,683.68 (0.85) 4,682.83 16.69%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 17.932908 55.763 1996 14.973025 (0.043) 55.720 21.147874 1,178.36 90% * 5% (53.03)
1995 10.726673 (0.060)
1994 9.190954 108.803 1994 8.340713 (0.077) 108.623 21.147874 2,297.15 90% * 5% (103.37)
1993 8.808635 (0.073)
1992 8.491681 117.762 1992 7.489042 (0.085) 117.424 21.147874 2,483.27 90% * 3% (67.05)
1991 6.653195 (0.096)
1990 6.373056 (0.100)
1989 5.544310 (0.115)
1988 5.028553 (0.127)
1987 4.491228 222.656 1987 5.538138 (0.116)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- --------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,125.33 (0.64) 1,124.69 12.47%
1 YR
1994 2,193.78 (0.64) 2,193.14 29.92%
3 YRS
1992 2,416.22 (0.64) 2,415.58 19.29%
5 YRS
1987 4,605.42 (0.64) 4,604.78 16.50%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
STRONG GROWTH II FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.273544 1,273.54 7% (89.15)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
STRONG GROWTH II FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,184.39 (0.48) 1,183.91 28.61%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.273544 1,273.54 90% * 8% (91.69)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,181.85 (0.85) 1,181.00 28.14%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.273544 1,273.54 90% * 5% (57.31)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,216.23 (0.64) 1,215.59 33.77%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
STRONG OPPORTUNITY II FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.48) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incept 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.233151 1,233.15 7% (86.32)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
STRONG OPPORTUNITY II FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incept 1,146.83 (0.48) 1,146.35 22.57%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.233151 1,233.15 90% * 8% (88.79)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,144.36 (0.85) 1,143.51 22.12%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.233151 1,233.15 90% * 5% (55.49)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,177.66 (0.64) 1,177.02 27.49%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
VAN ECK WORLDWIDE HARD ASSETS (FORMERLY GOLD AND NATURAL RESOURCES
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.46) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.261915 792.446 1996 1.204407 (0.382) 792.064 1.228390 972.96 7% (68.11)
1995 1.079662 926.216 1995 1.015506 (0.453) 925.381 1.228390 1,136.73 6% (68.20)
Incep 1.000000 1,000.000 N/A 0.000000 0.000 999.165 1.228390 1,227.36 90% * 5% (55.23)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
VAN ECK WORLDWIDE HARD ASSETS (FORMERLY GOLD AND NATURAL RESOURCES
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 904.85 (0.46) 904.39 -9.56%
1995 1,068.53 (0.46) 1,068.07 3.35%
Incep 1,172.13 (0.46) 1,171.67 6.32%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.261915 792.446 1996 1.204407 (0.706) 791.740 1.228390 972.57 90% * 8% (70.03)
1995 1.079662 926.216 1995 1.015506 (0.837) 924.673 1.228390 1,135.86 90% * 7% (71.56)
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 998.457 1.228390 1,226.49 90% * 6% (66.23)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 902.54 (0.85) 901.69 -9.83%
1995 1,064.30 (0.85) 1,063.45 3.12%
INCEP 1,160.26 (0.85) 1,159.41 5.89%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.261915 792.446 1996 1.204407 (0.531) 791.915 1.228390 972.78 90% * 5% (43.78)
1995 1.079662 926.216 1995 1.015506 (0.630) 925.586 1.228390 1,136.98 90% * 5% (51.16)
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.228390 1,228.39 90% * 5% (55.28)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 929.00 (0.64) 928.36 -7.16%
1995 1,085.82 (0.64) 1,085.18 4.17%
INCEP 1,173.11 (0.64) 1,172.47 6.35%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
VAN ECK WORLDWIDE BOND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.46) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.035786 965.450 1996 0.985550 (0.467) 964.983 1.049963 1,013.20 7% (70.92)
1995 1.02052 979.893 1995 1.006269 (0.457) 978.969 1.049963 1,027.88 6% (61.67)
Incep 1.000000 1,000.000 N/A 0 0.000 999.076 1.049963 1,048.99 90% * 5% (47.20)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
VAN ECK WORLDWIDE BOND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 942.28 (0.46) 941.82 -5.82%
1995 966.21 (0.46) 965.75 -1.73%
Incep 1,001.79 (0.46) 1,001.33 0.05%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.035786 965.450 1996 0.985550 (0.862) 964.588 1.049963 1,012.78 90% * 8% (72.92)
1995 1.02052 979.893 1995 1.006269 (0.845) 978.186 1.049963 1,027.06 90% * 7% (64.70)
INCEP 1.000000 1,000.000 N/A 0 0.000 998.293 1.049963 1,048.17 90% * 6% (56.60)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 939.86 (0.85) 939.01 -6.10%
1995 962.36 (0.85) 961.51 -1.94%
INCEP 991.57 (0.85) 990.72 -0.36%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.035786 965.450 1996 0.98555 (0.649) 964.801 1.049963 1,013.00 90% * 5% (45.59)
1995 1.02052 979.893 1995 1.006269 (0.636) 979.257 1.049963 1,028.18 90% * 5% (46.27)
INCEP 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.049963 1,049.96 90% * 5% (47.25)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 967.41 (0.64) 966.77 -3.32%
1995 981.91 (0.64) 981.27 -0.94%
INCEP 1,002.71 (0.64) 1,002.07 0.08%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
VAN ECK EMERGING MARKETS
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0 0.000 1,000.000 0.807583 807.58 7% (56.53)
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
VAN ECK EMERGING MARKETS
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 751.05 0.00 751.05 -34.73%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.85) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 0.807583 807.58 90% * 8% (58.15)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 749.43 (0.85) 748.58 -35.05%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ($0.64) ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0 0.000 1,000.000 0.807583 807.58 90% * 5% (36.34)
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 771.24 (0.64) 770.60 -32.18%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE ASSET ALLOCATION- ACCOUNT 'C'
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.740091 574.683 1996 1.536353 0.000 574.683 2.030312 1,166.79
1995 1.370019 729.917 1995 1.219212 0.000 729.917 2.030312 1,481.96
1994 1.052332 950.270 1994 1.000886 0.000 950.270 2.030312 1,929.34
1993 1.068438 935.946 1993 1.023806 0.000 935.946 2.030312 1,900.26
Incep 1.000000 1,000.000 1992 0.000000 0.000 1,000.000 2.030312 2,030.31
1991 1991 0.000000 0.000 2.030312
1990 0.000000 0.000 2.030312
1989 0.000000 0.000 2.030312
1988 0.000000 0.000 2.030312
1987 0.000000 0.000 1987 0.000000 0.000 0.000 2.030312 0.00 NONE
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE ASSET ALLOCATION- ACCOUNT 'C'
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,166.79 0.00 1,166.79 16.68%
1995 1,481.96 0.00 1,481.96 21.74%
1994 1,929.34 0.00 1,929.34 24.49%
1993 1,900.26 0.00 1,900.26 17.41%
Incep 2,030.31 0.00 2,030.31 16.37%
1991 5 YRS
1987 0.00 0.00 0.00 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.740091 574.683 1996 1.536353 0.000 574.683 2.030312 1,166.79
1995 1.370019 729.917 1995 1.219212 0.000 729.917 2.030312 1,481.96
1994 1.052332 950.270 1994 1.000886 0.000 950.270 2.030312 1,929.34
1993 1.068438 935.946 1993 1.023806 0.000 935.946 2.030312 1,900.26
Incep 1.000000 1,000.000 1992 0.000000 0.000 1,000.000 2.030312 2,030.31
1991 0.000000 0.000 1991 0.000000 0.000
1990 0.000000 0.000
1989 0.000000 0.000
1988 0.000000 0.000
1987 0.000000 0.000 1987 0.000000 0.000 0.000 2.030312 0.00 NONE
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,166.79 0.00 1,166.79 16.68%
1995 1,481.96 0.00 1,481.96 21.74%
1994 1,929.34 0.00 1,929.34 24.49%
1993 1,900.26 0.00 1,900.26 17.41%
Incep 2,030.31 0.00 2,030.31 16.37%
1991 5 YRS
1987 0.00 0.00 0.00 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.740091 574.683 1996 1.536353 0.000 574.683 2.030312 1,166.79
1995 1.370019 729.917 1995 1.219212 0.000 729.917 2.030312 1,481.96
1994 1.052332 950.270 1994 1.000886 0.000 950.270 2.030312 1,929.34
1993 1.068438 935.946 1993 1.023806 0.000 935.946 2.030312 1,900.26
Incep 1.000000 1,000.000 1992 0.000000 0.000 1,000.000 2.030312 2,030.31
1991 0.000000 0.000 1991 0.000000 0.000
1990 0.000000 0.000
1989 0.000000 0.000
1988 0.000000 0.000
1987 0.000000 0.000 1987 0.000000 0.000 0.000 0.000000 0.00
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,166.79 0.00 1,166.79 16.68%
1995 1,481.96 0.00 1,481.96 21.74%
1994 1,929.34 0.00 1,929.34 24.49%
1993 1,900.26 0.00 1,900.26 17.41%
Incep 2,030.31 0.00 2,030.31 16.37%
1991 5 YRS
1987 0.00 0.00 0.00 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN LEVERAGED ALLCAP
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.565215 638.890 1996 1.564112 0.000 638.890 1.854611 1,184.89
1995 1.411177 708.628 1995 1.186167 0.000 708.628 1.854611 1,314.23
INCEP 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.854611 1,854.61
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN LEVERAGED ALLCAP
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,184.89 0.00 1,184.89 18.49%
1995 1,314.23 0.00 1,314.23 14.64%
INCEP 1,854.61 0.00 1,854.61 26.98% 0.334
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.565215 638.890 1996 1.564112 0.000 638.890 1.854611 1,184.89
1995 1.411177 708.628 1995 1.186167 0.000 708.628 1.854611 1,314.23
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.854611 1,854.61
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,184.89 0.00 1,184.89 18.49%
1995 1,314.23 0.00 1,314.23 14.64%
INCEP 1,854.61 0.00 1,854.61 26.98%
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP DEFERRED
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
- ------------------------------------------------------------------------------------------------------------------------------------
Qtr Value For $1,000 Fee 0 Admin Fee Units Unit Value Value Calc Charge
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.565215 638.890 1996 1.564112 0.000 638.890 1.854611 1,184.89
1995 1.411177 708.628 1995 1.186167 0.000 708.628 1.854611 1,314.23
INCEP 1 1,000.000 N/A 0 0.000 1,000.000 1.854611 1,854.61
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP DEFERRED
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
- -----------------------------------------------------------------------
Qtr Charge Fee ^(ERV) ^P(1+T) = ERV
<S> <C> <C> <C> <C>
1996 1,184.89 0.00 1,184.89 18.49%
1995 1,314.23 0.00 1,314.23 14.64%
INCEP 1,854.61 0.00 1,854.61 26.98%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN SMALL CAPITALIZATION
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.260092 793.593 1996 1.313145 0.000 793.593 1.389672 1,102.83
1995 1.221763 818.489 1995 1.136740 0.000 818.489 1.389672 1,137.43
INCEP 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.389672 1,389.67
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN SMALL CAPITALIZATION
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,102.83 0.00 1,102.83 10.28%
1995 1,137.43 0.00 1,137.43 6.65%
INCEP 1,389.67 0.00 1,389.67 13.57%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.260092 793.593 1996 1.313145 0.000 793.593 1.389672 1,102.83
1995 1.221763 818.489 1995 1.136740 0.000 818.489 1.389672 1,137.43
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.389672 1,389.67
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,102.83 0.00 1,102.83 10.28%
1995 1,137.43 0.00 1,137.43 6.65%
INCEP 1,389.67 0.00 1,389.67 13.57%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.260092 793.593 1996 1.313145 0.000 793.593 1.389672 1,102.83
1995 1.221763 818.489 1995 1.136740 0.000 818.489 1.389672 1,137.43
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.389672 1,389.67
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,102.83 0.00 1,102.83 10.28%
1995 1,137.43 0.00 1,137.43 6.65%
INCEP 1,389.67 0.00 1,389.67 13.57%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.204209 1,204.21
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 1,204.21 0.00 1,204.21 31.91%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.204209 1,204.21
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 1,204.21 0.00 1,204.21 31.91%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.204209 1,204.21
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
FOR SURR ADMIN ADMIN FEE ^N
CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -------------------------------------------------------------
<S> <C> <C> <C>
1,204.21 0.00 1,204.21 31.91%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN MIDCAP GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.199131 1,199.13
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
ALGER AMERICAN MIDCAP GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 1,199.13 0.00 1,199.13 31.08%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.199131 1,199.13
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 1,199.13 0.00 1,199.13 31.08%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.199131 1,199.13
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 1,199.13 0.00 1,199.13 31.08%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
AMERICAN CENTURY INTERNATIONAL FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.095879 1,095.88
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
AMERICAN CENTURY INTERNATIONAL FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Incep 1,095.88 0.00 1,095.88 14.62% 0.167123
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.095879 1,095.88
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,095.88 0.00 1,095.88 14.62%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.095879 1,095.88
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,095.88 0.00 1,095.88 14.62%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
AMERICAN CENTURY VALUE FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incept 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.229266 1,229.27
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
AMERICAN CENTURY VALUE FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incept 1,229.27 0.00 1,229.27 36.02%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.229266 1,229.27
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,229.27 0.00 1,229.27 36.02%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.229266 1,229.27
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,229.27 0.00 1,229.27 36.02%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT 100 FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.135520 1,135.52
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT 100 FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,135.52 0.00 1,135.52 20.85%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.135520 1135.52
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,135.52 0.00 1,135.52 20.85%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.135520 1135.52
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,135.52 0.00 1,135.52 20.85%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT GROWTH & INCOME FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incept 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.218651 1,218.65
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT GROWTH & INCOME FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incept 1,218.65 0.00 1,218.65 34.27%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.218651 1,218.65
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,218.65 0.00 1,218.65 34.27%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.218651 1,218.65
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,218.65 0.00 1,218.65 34.27%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT SMALL COMPANY FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.373833 1,373.83
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT SMALL COMPANY FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,373.83 0.00 1,373.83 60.53%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.00 0.000 1,000.000 1.373833 1373.83
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,373.83 0.00 1,373.83 60.53%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000 1,000.000 N/A 0.000000 0.000 1,000.000 1.373833 1,373.83
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,373.83 0.00 1,373.83 60.53%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT BIAM INTERNATIONAL
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 0.972478 972.48
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
BERGER IPT BIAM INTERNATIONAL
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 972.48 0.00 972.48 -4.07%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (POUND)0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.00 0.000 1,000.000 0.972478 972.48
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 972.48 0.00 972.48 -4.07%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE (POUND)0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000 1,000.000 N/A 0.000000 0.000 1,000.000 0.972478 972.48
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 972.48 0.00 972.48 -4.07%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE CORPORATE BOND - ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.990233 200.391 1996 4.727581 0.000 200.391 5.444823 1,091.09
1995 4.544560 0.000
1994 4.080470 245.070 1994 4.045607 0.000 245.070 5.444823 1,334.36
1993 4.090337 0.000
1992 3.767690 265.415 1992 3.451300 0.000 265.415 5.444823 1,445.14
1991 3.090219 0.000
1990 2.786065 0.000
1989 2.649161 0.000
1988 2.313835 0.000
1987 2.244981 445.438 1987 2.207185 0.000 445.438 5.444823 2,425.33 NONE
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE CORPORATE BOND - ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF R FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE (ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,091.09 0.00 1,091.09 9.11%
1 YR
1994 1,334.36 0.00 1,334.36 10.09%
3 YRS
1992 1,445.14 0.00 1,445.14 7.64%
5 YRS
1987 2,425.33 0.00 2,425.33 9.26%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.990233 200.391 1996 4.727581 0.000 200.391 5.444823 1,091.09
1995 4.544560 0.000
1994 4.080470 245.070 1994 4.045607 0.000 245.070 5.444823 1,334.36
1993 4.090337 0.000
1992 3.767690 265.415 1992 3.451300 0.000 265.415 5.444823 1,445.14
1991 3.090219 0.000
1990 2.786065 0.000
1989 2.649161 0.000
1988 2.313835 0.000
1987 2.244981 445.438 1987 2.207185 0.000 445.438 5.444823 2,425.33 NONE
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE (ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,091.09 0.00 1,091.09 9.11%
1 YR
1994 1,334.36 0.00 1,334.36 10.09%
3 YRS
1992 1,445.14 0.00 1,445.14 7.64%
5 YRS
1987 2,425.33 0.00 2,425.33 9.26%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 4.990233 200.391 1996 4.727581 0.000 200.391 5.444823 1,091.09
1995 4.544560 0.000
1994 4.080470 245.070 1994 4.045607 0.000 245.070 5.444823 1,334.36
1993 4.090337 0.000
1992 3.767690 265.415 1992 3.451300 0.000 265.415 5.444823 1,445.14
1991 3.090219 0.000
1990 2.786065 0.000
1989 2.649161 0.000
1988 2.313835 0.000
1987 2.244981 445.438 1987 2.207185 0.000 445.438 5.444823 2,425.33
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE (ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,091.09 0.00 1,091.09 9.11%
1 YR
1994 1,334.36 0.00 1,334.36 10.09%
3 YRS
1992 1,445.14 0.00 1,445.14 7.64%
5 YRS
1987 2,425.33 0.00 2,425.33 9.26%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
DREYFUS STOCK INDEX FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.407545 710.457 1996 1.275557 0.000 710.457 1.852833 1,316.36
1995 1.160310 861.839 1995 1.026896 0.000 861.839 1.852833 1,596.84
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.852833 1,852.83
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
DREYFUS STOCK INDEX FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,316.36 0.00 1,316.36 31.64%
1995 1,596.84 0.00 1,596.84 26.37%
Incep 1,852.83 0.00 1,852.83 26.93%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.407545 710.457 1996 1.275557 0.000 710.457 1.852833 1,316.36
1995 1.160310 861.839 1995 1.026896 0.000 861.839 1.852833 1,596.84
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.852833 1,852.83
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,316.36 0.00 1,316.36 31.64%
1995 1,596.84 0.00 1,596.84 26.37%
Incep 1,852.83 0.00 1,852.83 26.93%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.407545 710.457 1996 1.275557 0.000 710.457 1.852833 1,316.36
1995 1.160310 861.839 1995 1.026896 0.000 861.839 1.852833 1,596.84
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.852833 1,852.83
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,316.36 0.00 1,316.36 31.64%
1995 1,596.84 0.00 1,596.84 26.37%
Incep 1,852.83 0.00 1,852.83 26.93%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
DREYFUS SOCIALLY RESPONSIBLE GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.413293 707.567 1996 1.281265 0.000 707.567 1.796406 1,271.08
1995 1.177597 849.187 1995 1.042914 0.000 849.187 1.796406 1,525.48
Incept 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.796406 1,796.41
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
DREYFUS SOCIALLY RESPONSIBLE GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,271.08 0.00 1,271.08 27.11%
1995 1,525.48 0.00 1,525.48 23.51%
Incept 1,796.41 0.00 1,796.41 25.42%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.413293 707.567 1996 1.281265 0.000 707.567 1.796406 1,271.08
1995 1.177597 849.187 1995 1.042914 0.000 849.187 1.796406 1,525.48
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.796406 1,796.41
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,271.08 0.00 1,271.08 27.11%
1995 1,525.48 0.00 1,525.48 23.51%
Incep 1,796.41 0.00 1,796.41 25.42%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.413293 707.567 1996 1.281265 0.000 707.567 1.796406 1,271.08
1995 1.177597 849.187 0 1.042914 0.000 849.187 1.796406 1,525.48
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.796406 1,796.41
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,271.08 0.00 1,271.08 27.11%
1995 1,525.48 0.00 1,525.48 23.51%
Incep 1,796.41 0.00 1,796.41 25.42%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED HIGH INCOME BOND II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.210427 826.155 1996 1.105616 0.000 826.155 1.364141 1,126.99
1995 1.069592 934.936 1995 0.996938 0.000 934.936 1.364141 1,275.38
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.364141 1,364.14
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED HIGH INCOME BOND II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,126.99 0.00 1,126.99 12.70%
1995 1,275.38 0.00 1,275.38 12.93%
Incep 1,364.14 0.00 1,364.14 12.76%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.210427 826.155 1996 1.105616 0.000 826.155 1.364141 1,126.99
1995 1.069592 934.936 1995 0.996938 0.000 934.936 1.364141 1,275.38
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.364141 1,364.14
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,126.99 0.00 1,126.99 12.70%
1995 1,275.38 0.00 1,275.38 12.93%
Incep 1,364.14 0.00 1,364.14 12.76%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.210427 826.155 1996 1.105616 0.000 826.155 1.364141 1,126.99
1995 1.069592 934.936 1995 0.996938 0.000 934.936 1.364141 1,275.38
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.364141 1,364.14
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,126.99 0.00 1,126.99 12.70%
1995 1,275.38 0.00 1,275.38 12.93%
Incep 1,364.14 0.00 1,364.14 12.76%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED INTERNATIONAL EQUITY II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.10235 907.153 1996 1.088006 0.000 907.153 1.201439 1,089.89
1995 1.027977 972.784 1995 1.002036 0.000 972.784 1.201439 1,168.74
Incep 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.201439 1,201.44
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED INTERNATIONAL EQUITY II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,089.89 0.00 1,089.89 8.99%
1995 1,168.74 0.00 1,168.74 8.11%
Incep 1,201.44 0.00 1,201.44 7.35%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED INTERNATIONAL EQUITY II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,089.89 0.00 1,089.89 8.99%
1995 1,168.74 0.00 1,168.74 8.11%
Incep 1,201.44 0.00 1,201.44 7.35%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.10235 907.153 1996 1.088006 0.000 907.153 1.201439 1,089.89
1995 1.027977 972.784 1995 1.002036 0.000 972.784 1.201439 1,168.74
Incep 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.201439 1,201.44
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,089.89 0.00 1,089.89 8.99%
1995 1,168.74 0.00 1,168.74 8.11%
Incep 1,201.44 0.00 1,201.44 7.35%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.10235 907.153 1996 1.088006 0.000 907.153 1.201439 1,089.89
1995 1.027977 972.784 1995 1.002036 0.000 972.784 1.201439 1,168.74
Incep 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.201439 1,201.44
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,089.89 0.00 1,089.89 8.99%
1995 1,168.74 0.00 1,168.74 8.11%
Incep 1,201.44 0.00 1,201.44 7.35%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED UTILITY II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.242795 804.638 1996 1.170346 0.000 804.638 1.558157 1,253.75
1995 1.125258 888.685 1995 0.997036 0.000 888.685 1.558157 1,384.71
Incep 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.558157 1,558.16
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
FEDERATED UTILITY II
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,253.75 0.00 1,253.75 25.38%
1995 1,384.71 0.00 1,384.71 17.67%
Incep 1,558.16 0.00 1,558.16 18.71%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.242795 804.638 1996 1.170346 0.000 804.638 1.558157 1,253.75
1995 1.125258 888.685 1995 0.997036 0.000 888.685 1.558157 1,384.71
Incep 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.558157 1,558.16
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,253.75 0.00 1,253.75 25.38%
1995 1,384.71 0.00 1,384.71 17.67%
Incep 1,558.16 0.00 1,558.16 18.71%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.242795 804.638 1996 1.170346 0.000 804.638 1.558157 1,253.75
1995 1.125258 888.685 1995 0.997036 0.000 888.685 1.558157 1,384.71
Incep 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.558157 1,558.16
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,253.75 0.00 1,253.75 25.38%
1995 1,384.71 0.00 1,384.71 17.67%
Incep 1,558.16 0.00 1,558.16 18.71%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE GOVERNMENT SECURITIES-ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.176168 850.219 1996 1.129650 0.000 850.219 1.260680 1,071.85
1995 1.156290 864.835 1995 1.102656 0.000 864.835 1.260680 1,090.28
1994 0.995234 1,004.789 1994 0.991081 0.000 1,004.789 1.260680 1,266.72
1993 1.034206 966.925 1993 1.023440 0.000 966.925 1.260680 1,218.98
Incep 1.000000 1,000.000 1992 0.000000 0.000 1,000.000 1.260680 1,260.68
1991 0.000000 0.000 1991 0.000000 0.000
1990 0.000000 0.000
1989 0.000000 0.000
1988 0.000000 0.000
1987 0.000000 0.000 1987 0.000000 0.000 1.260680 0.00 NONE
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE GOVERNMENT SECURITIES-ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE (ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,071.85 0.00 1,071.85 7.19%
1995 1,090.28 0.00 1,090.28 4.42%
1994 1,266.72 0.00 1,266.72 8.20%
1993 1,218.98 0.00 1,218.98 5.07%
Incep 1,260.68 0.00 1,260.68 5.08%
1991
5 YRS
1987 0.00 0.00 0.00 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.176168 850.219 1996 1.129650 0.000 850.219 1.260680 1,071.85
1995 1.156290 864.835 1995 1.102656 0.000 864.835 1.260680 1,090.28
1994 0.995234 1,004.789 1994 0.991081 0.000 1,004.789 1.260680 1,266.72
1993 1.034206 966.925 1993 1.023440 0.000 966.925 1.260680 1,218.98
Incep 1.000000 1,000.000 1992 0.000000 0.000 1,000.000 1.260680 1,260.68
1991 0.000000 @ROUND(1000/B41991 0.000000 0.000
0.000000 @ROUND(1000/B41990 0.000000 0.000
0.000000 @ROUND(1000/B41989 0.000000 0.000
0.000000 @ROUND(1000/B41988 0.000000 0.000
1987 0.000000 @ROUND(1000/B41987 0.000000 0.000 +C49+@SUM(F1.260680 @ROUND(+H49*NONE2)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE (ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,071.85 0.00 1,071.85 7.19%
1995 1,090.28 0.00 1,090.28 4.42%
1994 1,266.72 0.00 1,266.72 8.20%
1993 1,218.98 0.00 1,218.98 5.07%
Incep 1,260.68 0.00 1,260.68 5.08%
1991 5 YRS
1987 +I49+K49 0.00 +L49+M49 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.176168 850.219 1996 1.129650 0.000 850.219 1.260680 1,071.85
1995 1.156290 864.835 1995 1.102656 0.000 864.835 1.260680 1,090.28
1994 0.995234 1,004.789 1994 0.991081 0.000 1,004.789 1.260680 1,266.72
1993 1.034206 966.925 1993 1.023440 0.000 966.925 1.260680 1,218.98
Incep 1.000000 1,000.000 1992 0.000000 0.000 1,000.000 1.260680 1,260.68
1991 0.000000 @ROUND(1000/B41991 0.000000 0.000
0.000000 @ROUND(1000/B41990 0.000000 0.000
0.000000 @ROUND(1000/B41989 0.000000 0.000
0.000000 @ROUND(1000/B41988 0.000000 0.000
1987 0.000000 @ROUND(1000/B41987 0.000000 0.000 +C49+@SUM(F1.260680 @ROUND(+H49*NONE2)
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE (ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,071.85 0.00 1,071.85 7.19%
1995 1,090.28 0.00 1,090.28 4.42%
1994 1,266.72 0.00 1,266.72 8.20%
1993 1,218.98 0.00 1,218.98 5.07%
Incep 1,260.68 0.00 1,260.68 5.08%
1991 5 YRS
1987 +I49+K49 0.00 +L49+M49 0.00%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
JANUS ASPEN AGGRESSIVE GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.356519 737.181 1996 1.411143 0.000 737.181 1.513110 1,115.44
1995 1.269335 787.814 1995 1.075680 0.000 787.814 1.513110 1,192.05
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.513110 1,513.11
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
JANUS ASPEN AGGRESSIVE GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,115.44 0.00 1,115.44 11.54%
1995 1,192.05 0.00 1,192.05 9.18%
Incep 1,513.11 0.00 1,513.11 17.37%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.356519 737.181 1996 1.411143 0.000 737.181 1.513110 1,115.44
1995 1.269335 787.814 1995 1.075680 0.000 787.814 1.513110 1,192.05
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.513110 1,513.11
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,115.44 0.00 1,115.44 11.54%
1995 1,192.05 0.00 1,192.05 9.18%
Incep 1,513.11 0.00 1,513.11 17.37%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.356519 737.181 1996 1.411143 0.000 737.181 1.513110 1,115.44
1995 1.269335 787.814 1995 1.075680 0.000 787.814 1.513110 1,192.05
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.513110 1,513.11
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,115.44 0.00 1,115.44 11.54%
1995 1,192.05 0.00 1,192.05 9.18%
Incep 1,513.11 0.00 1,513.11 17.37%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
JANUS ASPEN GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.372222 728.745 1996 1.296957 0.000 728.745 1.6676 1,215.26
1995 1.170177 854.572 1995 1.037548 0.000 854.572 1.6676 1,425.08
Incep 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.6676 1,667.60
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
JANUS ASPEN GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,215.26 0.00 1,215.26 21.53%
1995 1,425.08 0.00 1,425.08 19.38%
Incep 1,667.60 0.00 1,667.60 21.87%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.372222 728.745 1996 1.296957 0.000 728.745 1.6676 1,215.26
1995 1.170177 854.572 1995 1.037548 0.000 854.572 1.6676 1,425.08
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.6676 1,667.60
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,215.26 0.00 1,215.26 21.53%
1995 1,425.08 0.00 1,425.08 19.38%
Incep 1,667.60 0.00 1,667.60 21.87%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.372222 728.745 1996 1.296957 0.000 728.745 1.6676 1,215.26
1995 1.170177 854.572 1995 1.037548 0.000 854.572 1.6676 1,425.08
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.6676 1,667.60
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,215.26 0.00 1,215.26 21.53%
1995 1,425.08 0.00 1,425.08 19.38%
Incep 1,667.60 0.00 1,667.60 21.87%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
JANUS ASPEN WORLDWIDE GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.550846 644.809 1996 1.456455 0.000 644.809 1.875562 1,209.38
1995 1.214018 823.711 1995 1.05788 0.000 823.711 1.875562 1,544.92
Incep 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.875562 1,875.56
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
JANUS ASPEN WORLDWIDE GROWTH
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,209.38 0.00 1,209.38 20.94%
1995 1,544.92 0.00 1,544.92 24.29%
Incep 1,875.56 0.00 1,875.56 27.53%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.550846 644.809 1996 1.456455 0.000 644.809 1.875562 1,209.38
1995 1.214018 823.711 1995 1.05788 0.000 823.711 1.875562 1,544.92
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.875562 1,875.56
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,209.38 0.00 1,209.38 20.94%
1995 1,544.92 0.00 1,544.92 24.29%
Incep 1,875.56 0.00 1,875.56 27.53%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.550846 644.809 1996 1.456455 0.000 644.809 1.875562 1,209.38
1995 1.214018 823.711 1995 1.05788 0.000 823.711 1.875562 1,544.92
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.875562 1,875.56
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,209.38 0.00 1,209.38 20.94%
1995 1,544.92 0.00 1,544.92 24.29%
Incep 1,875.56 0.00 1,875.56 27.53%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
NEUBERGER & BERMAN LIMITED MATURITY BOND FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.045932 1,045.93
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
NEUBERGER & BERMAN LIMITED MATURITY BOND FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,045.93 0.00 1,045.93 6.92%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.045932 1,045.93
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,045.93 0.00 1,045.93 6.92%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.045932 1,045.93
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- --------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,045.93 0.00 1,045.93 6.92%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
NEUBERGER & BERMAN PARTNERS FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incept 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.243195 1,243.20
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
NEUBERGER & BERMAN PARTNERS FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incept 1,243.20 0.00 1,243.20 38.32%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.243195 1,243.20
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,243.20 0.00 1,243.20 38.32%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.243195 1,243.20
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,243.20 0.00 1,243.20 38.32%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
STRONG OPPORTUNITY II FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incept 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.233151 1,233.15
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
STRONG OPPORTUNITY II FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incept 1,233.15 0.00 1,233.15 36.66%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.233151 1,233.15
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,233.15 0.00 1,233.15 36.66%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.233151 1,233.15
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- -----------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,233.15 0.00 1,233.15 36.66%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
STRONG OPPORTUNITY II FUND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incept 1,233.15 0.00 1,233.15 36.66%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.233151 1,233.15
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,233.15 0.00 1,233.15 36.66%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.233151 1,233.15
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 1,233.15 0.00 1,233.15 36.66%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE COMMON STOCK PORTFOLIO - ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 17.932908 55.763 1996 14.973025 0.000 55.763 21.147874 1,179.27
1995 10.726673 0.000
1994 9.190954 108.803 1994 8.340713 0.000 108.803 21.147874 2,300.95
1993 8.808635 0.000
1992 8.491681 117.762 1992 7.489042 0.000 117.762 21.147874 2,490.42
1991 6.653195 0.000
1990 6.373056 0.000
1989 5.544310 0.000
1988 5.028553 0.000
1987 4.491228 222.656 1987 5.538138 0.000 222.656 21.147874 4,708.70 NONE
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE COMMON STOCK PORTFOLIO - ACCOUNT "C"
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ---------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,179.27 0.00 1,179.27 17.93%
1 YR
1994 2,300.95 0.00 2,300.95 32.02%
3 YRS
1992 2,490.42 0.00 2,490.42 20.02%
5 YRS
1987 4,708.70 0.00 4,708.70 16.76%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE $0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 17.932908 55.763 1996 14.973025 0.000 55.763 21.147874 1,179.27
1995 10.726673 0.000
1994 9.190954 108.803 1994 8.340713 0.000 108.803 21.147874 2,300.95
1993 8.808635 0.000
1992 8.491681 117.762 1992 7.489042 0.000 117.762 21.147874 2,490.42
1991 6.653195 0.000
1990 6.373056 0.000
1989 5.544310 0.000
1988 5.028553 0.000
1987 4.491228 222.656 1987 5.538138 0.000 222.656 21.147874 4,708.70 NONE
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,179.27 0.00 1,179.27 17.93%
1 YR
1994 2,300.95 0.00 2,300.95 32.02%
3 YRS
1992 2,490.42 0.00 2,490.42 20.02%
5 YRS
1987 4,708.70 0.00 4,708.70 16.76%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
UNIT VALUE ACCUM
ACCUM FOR UNITS
UNITS YEAR OF ANNUAL (DEDUCTED) TOTAL TOTAL SURRENDER
END OF UNIT PURCHASED ADMIN ADMIN FEE FOR ANNUAL ACCUM 12/31/97 ACCUM CHARGE SURRENDER
QTR VALUE FOR $1,000 FEE 0.00 ADMIN FEE UNITS UNIT VALUE VALUE CALC CHARGE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 17.932908 55.763 1996 14.973025 0.000 55.763 21.147874 1,179.27
1995 10.726673 0.000
1994 9.190954 108.803 1994 8.340713 0.000 108.803 21.147874 2,300.95
1993 8.808635 0.000
1992 8.491681 117.762 1992 7.489042 0.000 117.762 21.147874 2,490.42
1991 6.653195 0.000
1990 6.373056 0.000
1989 5.544310 0.000
1988 5.028553 0.000
1987 4.491228 222.656 1987 5.538138 0.000 222.656 21.147874 4,708.70
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- --------------------------------------------------------------------
TOTAL ACCUM AVERAGE
TOTAL ACCUM VALUE AFTER ANNUAL
VALUE AFTER FULL DEDUCTION TOTAL
DEDUCTION SURRENDER FOR RETURN
END OF FOR SURR ADMIN ADMIN FEE ^N
QTR CHARGE FEE ^(ERV) ^P(1+T) = ERV
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,179.27 0.00 1,179.27 17.93%
1 YR
1994 2,300.95 0.00 2,300.95 32.02%
3 YRS
1992 2,490.42 0.00 2,490.42 20.02%
5 YRS
1987 4,708.70 0.00 4,708.70 16.76%
10 YRS
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
VAN ECK WORLDWIDE HARD ASSETS (FORMERLY GOLD AND NATURAL RESOURCES
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
Unit Value Accum
Accum For Units
Units Year of Annual (Deducted) Total Total Surrender
End of Unit Purchased Admin Admin Fee For Annual Accum 12/31/97 Accum Charge Surrender
Qtr Value For $1,000 Fee $0.00 Admin Fee Units Unit Value Value Calc Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.261915 792.446 1996 1.204407 0.000 792.446 1.228390 973.43
1995 1.079662 926.216 1995 1.015506 0.000 926.216 1.228390 1,137.75
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.228390 1,228.39
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
VAN ECK WORLDWIDE HARD ASSETS (FORMERLY GOLD AND NATURAL RESOURCES
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
Total Accum Average
Total Accum Value After Annual
Value After Full Deduction Total
Deduction Surrender For Return
End of For Surr Admin Admin Fee ^n
Qtr Charge Fee ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 973.43 0.00 973.43 -2.66%
1995 1,137.75 0.00 1,137.75 6.67%
Incep 1,228.39 0.00 1,228.39 8.28%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
Unit Value Accum
Accum For Units
Units Year of Annual (Deducted) Total Total Surrender
End of Unit Purchased Admin Admin Fee For Annual Accum 12/31/97 Accum Charge Surrender
Qtr Value For $1,000 Fee $0.00 Admin Fee Units Unit Value Value Calc Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.261915 792.446 1996 1.204407 0.000 792.446 1.228390 973.43
1995 1.079662 926.216 1995 1.015506 0.000 926.216 1.228390 1,137.75
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.228390 1,228.39
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
Total Accum Average
Total Accum Value After Annual
Value After Full Deduction Total
Deduction Surrender For Return
End of For Surr Admin Admin Fee ^n
Qtr Charge Fee ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 973.43 0.00 973.43 -2.66%
1995 1,137.75 0.00 1,137.75 6.67%
INCEP 1,228.39 0.00 1,228.39 8.28%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
Unit Value Accum
Accum For Units
Units Year of Annual (Deducted) Total Total Surrender
End of Unit Purchased Admin Admin Fee For Annual Accum 12/31/97 Accum Charge Surrender
Qtr Value For $1,000 Fee $0.00 Admin Fee Units Unit Value Value Calc Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.261915 792.446 1996 1.204407 0.000 792.446 1.228390 973.43
1995 1.079662 926.216 1995 1.015506 0.000 926.216 1.228390 1,137.75
INCEP 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 1.228390 1,228.39
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
Total Accum Average
Total Accum Value After Annual
Value After Full Deduction Total
Deduction Surrender For Return
End of For Surr Admin Admin Fee ^n
Qtr Charge Fee ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 973.43 0.00 973.43 -2.66%
1995 1,137.75 0.00 1,137.75 6.67%
INCEP 1,228.39 0.00 1,228.39 8.28%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
VAN ECK WORLDWIDE BOND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
Unit Value Accum
Accum For Units
Units Year of Annual (Deducted) Total Total Surrender
End of Unit Purchased Admin Admin Fee For Annual Accum 12/31/97 Accum Charge Surrender
Qtr Value For $1,000 Fee $0.00 Admin Fee Units Unit Value Value Calc Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.035786 965.450 1996 0.985550 0.000 965.450 1.049963 1,013.69
1995 1.02052 979.893 1995 1.006269 0.000 979.893 1.049963 1,028.85
Incep 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.049963 1,049.96
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
VAN ECK WORLDWIDE BOND
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
Total Accum Average
Total Accum Value After Annual
Value After Full Deduction Total
Deduction Surrender For Return
End of For Surr Admin Admin Fee ^n
Qtr Charge Fee ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,013.69 0.00 1,013.69 1.37%
1995 1,028.85 0.00 1,028.85 1.43%
Incep 1,049.96 0.00 1,049.96 1.90%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
Unit Value Accum
Accum For Units
Units Year of Annual (Deducted) Total Total Surrender
End of Unit Purchased Admin Admin Fee For Annual Accum 12/31/97 Accum Charge Surrender
Qtr Value For $1,000 Fee $0.00 Admin Fee Units Unit Value Value Calc Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.035786 965.450 1996 0.985550 0.000 965.450 1.049963 1,013.69
1995 1.02052 979.893 1995 1.006269 0.000 979.893 1.049963 1,028.85
INCEP 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.049963 1,049.96
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- -----------------------------------------------------------------------
Total Accum Average
Total Accum Value After Annual
Value After Full Deduction Total
Deduction Surrender For Return
End of For Surr Admin Admin Fee ^n
Qtr Charge Fee ^(ERV) ^P(1+T) = ERV
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,013.69 0.00 1,013.69 1.37%
1995 1,028.85 0.00 1,028.85 1.43%
INCEP 1,049.96 0.00 1,049.96 1.90%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
Unit Value Accum
Accum For Units
Units Year of Annual (Deducted) Total Total Surrender
End of Unit Purchased Admin Admin Fee For Annual Accum 12/31/97 Accum Charge Surrender
Qtr Value For $1,000 Fee $0.00 Admin Fee Units Unit Value Value Calc Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1.035786 965.450 1996 0.98555 0.000 965.450 1.049963 1,013.69
1995 1.02052 979.893 1995 1.006269 0.000 979.893 1.049963 1,028.85
INCEP 1.000000 1,000.000 N/A 0 0.000 1,000.000 1.049963 1,049.96
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
Total Accum Average
Total Accum Value After Annual
Value After Full Deduction Total
Deduction Surrender For Return
End of For Surr Admin Admin Fee ^n
Qtr Charge Fee ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
1996 1,013.69 0.00 1,013.69 1.37%
1995 1,028.85 0.00 1,028.85 1.43%
INCEP 1,049.96 0.00 1,049.96 1.90%
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
VAN ECK EMERGING MARKETS
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
Unit Value Accum
Accum For Units
Units Year of Annual (Deducted) Total Total Surrender
End of Unit Purchased Admin Admin Fee For Annual Accum 12/31/97 Accum Charge Surrender
Qtr Value For $1,000 Fee $0.00 Admin Fee Units Unit Value Value Calc Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0 0.000 1,000.000 0.807583 807.58
</TABLE>
<TABLE>
<CAPTION>
GREAT AMERICAN RESERVE - ACCOUNT "C"
VAN ECK EMERGING MARKETS
AVERAGE ANNUAL TOTAL RETURN
12/31/97
TO MEET COMPLIANCE REQUIREMENTS OF SEC RELEASE IC-16245
UNI-FLEX (SINGLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
Total Accum Average
Total Accum Value After Annual
Value After Full Deduction Total
Deduction Surrender For Return
End of For Surr Admin Admin Fee ^n
Qtr Charge Fee ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 807.58 0.00 807.58 -27.28%
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ------------------------------------------------------------------------------------------------------------------------------------
Unit Value Accum
Accum For Units
Units Year of Annual (Deducted) Total Total Surrender
End of Unit Purchased Admin Admin Fee For Annual Accum 12/31/97 Accum Charge Surrender
Qtr Value For $1,000 Fee $0.00 Admin Fee Units Unit Value Value Calc Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Incep 1.000000 1,000.000 N/A 0.000000 0.000 1,000.000 0.807583 807.58
</TABLE>
<TABLE>
<CAPTION>
MAXI-FLEX (FLEXIBLE PREMIUM CONTRACT)
- ----------------------------------------------------------------------
Total Accum Average
Total Accum Value After Annual
Value After Full Deduction Total
Deduction Surrender For Return
End of For Surr Admin Admin Fee ^n
Qtr Charge Fee ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Incep 807.58 0.00 807.58 -27.28%
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ------------------------------------------------------------------------------------------------------------------------------------
Unit Value Accum
Accum For Units
Units Year of Annual (Deducted) Total Total Surrender
End of Unit Purchased Admin Admin Fee For Annual Accum 12/31/97 Accum Charge Surrender
Qtr Value For $1,000 Fee $0.00 Admin Fee Units Unit Value Value Calc Charge
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCEP 1.000000 1,000.000 N/A 0 0.000 1,000.000 0.807583 807.58
</TABLE>
<TABLE>
<CAPTION>
GROUP DEFERRED
- ----------------------------------------------------------------------
Total Accum Average
Total Accum Value After Annual
Value After Full Deduction Total
Deduction Surrender For Return
End of For Surr Admin Admin Fee ^n
Qtr Charge Fee ^(ERV) ^P(1+T) = ERV
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEP 807.58 0.00 807.58 -27.28%
</TABLE>
