MaxiFlex
Issued by
CONSECO VARIABLE INSURANCE COMPANY
[LOGO] (TM)
CONSECO (R)
MaxiFlex
Fixed and Variable Annuity
May 1, 1999
Prospectus
Conseco Variable Insurance Company
Variable Annuity Account C
This cover is not part of the prospectus.
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[GRAPHIC OMITTED]
CONSECO
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Conseco Variable Annuity Account C
(formerly, Great American Reserve Variable Annuity Account C)
INDIVIDUAL VARIABLE DEFERRED ANNUITY CONTRACTS
offered by
CONSECO VARIABLE INSURANCE COMPANY
(formerly, Great American Reserve Insurance Company)
Administrative Office:
11815 N. Pennsylvania Street o Carmel, IN 46032 o (317) 817-3700
This prospectus describes the individual variable deferred annuity
contracts ("Contracts") issued by Conseco Variable Insurance Company ("Conseco
Variable"). One contract is a flexible premium payment contract and the other is
a single premium payment contract. Together they are referred to as the
"Contract" or "Contracts", except where otherwise noted. The single premium
payment Contract is no longer offered for sale. The Contracts are designed for
use in retirement planning.
You can invest your Purchase Payments in one of the Variable Account
Investment Options listed below. Depending on market conditions, you can make or
lose money in any of these Variable Account Investment Options. You can also
invest in the Conseco Variable Fixed Account.
Conseco Series Trust
o Balanced Portfolio (formerly, Asset Allocation Portfolio)
o Equity Portfolio (formerly, Common Stock Portfolio)
o Fixed Income Portfolio (formerly, Corporate Bond Portfolio)
o Government Securities Portfolio
o Money Market Portfolio
The Alger American Fund
o Alger American Growth Portfolio
o Alger American Leveraged AllCap Portfolio
o Alger American MidCap Growth Portfolio
o Alger American Small Capitalization Portfolio
American Century Variable Portfolios, Inc.
o VP Income & Growth
o VP International
o VP Value
Berger Institutional Products Trust
o Berger IPT--100 Fund
o Berger IPT--Growth and Income Fund
o Berger IPT--Small Company Growth Fund
o Berger/BIAM IPT--International Fund
The Dreyfus Socially Responsible Growth Fund, Inc.
Dreyfus Stock Index Fund
Dreyfus Variable Investment Fund
o Disciplined Stock Portfolio
o International Value Portfolio
Federated Insurance Series
o Federated High Income Bond Fund II
o Federated International Equity Fund II
o Federated Utility Fund II
INVESCO Variable Investment Funds, Inc.
o INVESCO VIF--High Yield Fund
o INVESCO VIF--Equity Income Fund (formerly, INVESCO VIF--Industrial
Income Portfolio)
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The Securities and Exchange Commission has not approved or disapproved
these securities or determined if this prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.
May 1, 1999
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Janus Aspen Series
o Aggressive Growth Portfolio
o Growth Portfolio
o Worldwide Growth Portfolio
Lazard Retirement Series, Inc.
o Lazard Retirement Equity Portfolio
o Lazard Retirement Small Cap Portfolio
Lord Abbett Series Fund, Inc.
o Growth and Income Portfolio
Mitchell Hutchins Series Trust
o Growth and Income Portfolio
Neuberger Berman Advisers Management Trust
o Limited Maturity Bond Portfolio
o Partners Portfolio
Strong Opportunity Fund II, Inc.
o Opportunity Fund II
Strong Variable Insurance Funds, Inc.
o Strong Mid Cap Growth Fund II (formerly, Growth Fund II)
Van Eck Worldwide Insurance Trust
o Worldwide Bond Fund
o Worldwide Emerging Markets Fund
o Worldwide Hard Assets Fund
o Worldwide Real Estate Fund
Please read this prospectus carefully before investing and keep it on file
for future reference. It contains important information about the individual
fixed and variable annuity contracts issued by Conseco Variable.
To learn more about the Contracts, you can obtain a copy of the Statement
of Additional Information (SAI) dated May 1, 1999. The SAI has been filed with
the Securities and Exchange Commission (SEC) and is legally a part of this
Prospectus. The SEC has a Web site (http://www.sec.gov) that contains the SAI,
material incorporated by reference, and other information regarding companies
that file electronically with the SEC. The Table of Contents of the SAI is on
Page 34 of this prospectus. For a free copy of the SAI, call us or write to us
at the address or telephone number given above.
The Contracts:
o are not bank deposits
o are not federally insured
o are not endorsed by any bank or government agency
o are not guaranteed and may be subject to loss of principal
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
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Table of Contents
Page
Definitions................................................................. 5
Summary..................................................................... 5
Fee Table................................................................... 8
Conseco Variable, The Variable Account and Investment Options............... 18
Conseco Variable.......................................................... 18
The Variable Account...................................................... 18
Investment Options........................................................ 19
Voting Rights........................................................... 21
Fixed Account........................................................... 21
The Contracts............................................................... 21
Accumulation Provisions................................................... 22
Purchase Payments......................................................... 22
Allocation of Purchase Payments........................................... 22
Accumulation Units........................................................ 22
Accumulation Unit Values................................................ 22
Transfers................................................................. 22
Dollar Cost Averaging..................................................... 23
Rebalancing............................................................... 23
Sweeps.................................................................... 23
Withdrawals............................................................... 23
Suspension of Payments.................................................... 24
Restrictions Under Optional Retirement Programs........................... 24
Restrictions Under Section 403(b) Plans................................... 24
Systematic Withdrawal Plan................................................ 24
Loans..................................................................... 25
Charges and Deductions...................................................... 25
Withdrawal Charge......................................................... 25
Administrative Charge..................................................... 26
Mortality and Expense Risk Charge......................................... 26
Premium Taxes............................................................. 27
Fund Expenses............................................................. 27
Other Charges............................................................. 27
Death Benefits.............................................................. 27
The Annuity Period - Settlement Provisions.................................. 28
Electing the Annuity Period and Form of Annuity........................... 28
Annuity Options........................................................... 28
Transfers During the Annuity Period....................................... 29
Death Benefit Amount During the Annuity Period............................ 30
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Table of Contents (cont'd)
Page
Other Contract Provisions................................................... 30
Ten-Day Right to Review................................................... 30
Ownership................................................................. 30
Federal Tax Status.......................................................... 30
Annuity Contracts in General.............................................. 30
Qualified and Non-Qualified Contracts..................................... 30
Withdrawals--Non-Qualified Contracts...................................... 31
Withdrawals--Qualified Contracts.......................................... 31
Withdrawals--Tax-Sheltered Annuities...................................... 31
Diversification........................................................... 31
Investor Control.......................................................... 31
General Matters............................................................. 32
Performance Information................................................... 32
Year 2000................................................................. 32
Distribution of Contracts................................................. 33
Legal Proceedings......................................................... 33
Table of Contents of the SAI................................................ 34
Appendix.................................................................... 35
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
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Definitions
ACCUMULATION PERIOD: The period before the commencement of Annuity
Payments during which you can make Purchase Payments.
ACCUMULATION UNIT: An accounting unit of measure we use to calculate the
value of your Contract during the Accumulation Period.
ANNUITANT: The named individual upon whose life Annuity Payments are
based. The Annuitant receives the Annuity Payments.
ANNUITY PAYMENTS: A series of income payments we make under an annuity
option.
ANNUITY PERIOD: The period during which we make Annuity Payments.
CONTRACT OWNER: The individual, corporation, trust, association,
partnership or other entity entitled to ownership rights under the Contract. The
Contract Owner is also referred to as "you" and "your" in this prospectus.
CONTRACT VALUE: The total value of your values held under the Contract in
each Investment Option of the Variable Account plus the Fixed Account.
CODE: Internal Revenue Code of 1986, as amended.
FIXED ACCOUNT: The general account of Conseco Variable. You may choose to
allocate Purchase Payments and Contract Value to the Fixed Account. It provides
guaranteed values and periodically adjusted interest rates.
FUND: The underlying mutual funds (or portfolio of a mutual fund) which
the sub-accounts of the Variable Account invest in.
INDIVIDUAL ACCOUNT: The record we establish to represent your interest in
an Investment Option during the Accumulation Period.
INVESTMENT OPTIONS: The investment choices available to Contract Owners.
PLAN: A voluntary program for an employer that qualifies for special tax
treatment.
PURCHASE PAYMENTS: The premium payments made to Conseco Variable under the
terms of the Contract.
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 ACCOUNT: The separate account we established known as Conseco
Variable Annuity Account C. Prior to May 1, 1999, it was known as Great American
Reserve Variable Annuity Account C. The Variable Account is divided into
sub-accounts.
Summary
THE CONTRACTS: The Contracts described in this prospectus are tax deferred
individual flexible Purchase Payment and single Purchase Payment variable
annuity Contracts. Each Contract also offers you a Fixed Account option.
Together they are referred to as the "Contract" or "Contracts", except where
noted otherwise. The single Purchase Payment Contract is no longer offered for
sale.
The Contracts provide for the accumulation of Contract Values and the
payment of annuity benefits on a variable and/or fixed basis. In general, 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 Code. Examples of the plans
qualifying for special tax treatment are: tax-sheltered annuities (TSAs) and
state and local government deferred compensation plans. (See "Federal Tax
Status.")
PURCHASE PAYMENTS: Certain Contracts permit you to make Purchase Payments
on a flexible basis. This means that you can make payments at any time you like
during the Accumulation Period. Other Contracts are single Purchase Payment
Contracts, which means that after you make your initial Purchase Payment, you
cannot add to your Contract.
o The minimum Purchase Payment for the single Purchase Payment
Contract is $10,000.
o The minimum initial Purchase Payment for the flexible Purchase
Payment Contract is $10 and for each subsequent Purchase Payment is
$10 per month.
o If your Purchase Payment is more than $500,000, it requires our
prior approval.
INVESTMENT OPTIONS: You can allocate your Purchase Payment to the Fixed
Account of Conseco Variable or the following Variable Account Investment
Options:
Conseco Series Trust
o Balanced Portfolio (formerly, Asset Allocation Portfolio)
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o Equity Portfolio (formerly, Common Stock Portfolio)
o Fixed Income Portfolio (formerly, Corporate Bond Portfolio)
o Government Securities Portfolio
o Money Market Portfolio
The Alger American Fund
o Alger American Growth Portfolio
o Alger American Leveraged AllCap Portfolio
o Alger American MidCap Growth Portfolio
o Alger American Small Capitalization Portfolio
American Century Variable Portfolios, Inc.
o VP Income & Growth
o VP International
o VP Value
Berger Institutional Products Trust
o Berger IPT--100 Fund
o Berger IPT--Growth and Income Fund
o Berger IPT--Small Company Growth Fund
o Berger/BIAM IPT--International Fund
The Dreyfus Socially Responsible Growth Fund, Inc.
Dreyfus Stock Index Fund
Dreyfus Variable Investment Fund
o Disciplined Stock Portfolio
o International Value Portfolio
Federated Insurance Series
o Federated High Income Bond Fund II
o Federated International Equity Fund II
o Federated Utility Fund II
Invesco Variable Investment Funds, Inc.
o INVESCO VIF--High Yield Fund
o INVESCO VIF--Equity Income Fund (formerly, INVESCO-VIF Industrial
Income Portfolio)
Janus Aspen Series
o Aggressive Growth Portfolio
o Growth Portfolio
o Worldwide Growth Portfolio
Lazard Retirement Series, Inc.
o Lazard Retirement Equity Portfolio
o Lazard Retirement Small Cap Portfolio
Lord Abbett Series Fund, Inc.
o Growth and Income Portfolio
Mitchell Hutchins Series Trust
o Growth and Income Portfolio
Neuberger Berman Advisers Management Trust
o Limited Maturity Bond Portfolio
o Partners Portfolio
Strong Opportunity Fund II, Inc.
o Opportunity Fund II
Strong Variable Insurance Funds, Inc.
o Strong Mid Cap Growth Fund II (formerly, Growth Fund II)
Van Eck Worldwide Insurance Trust
o Worldwide Bond Fund
o Worldwide Emerging Markets Fund
o Worldwide Hard Assets Fund
o Worldwide Real Estate Fund
The portion of your Contract Value allocated to the Variable Account
Investment Options will reflect the investment performance of the Funds you
select.
TRANSFERS: During the Accumulation Period, you may make transfers among
the Variable Account Investment Options and from the Variable Account Investment
Options to the Fixed Account Investment Option without charge. Subject to
certain limitations, you may also transfer amounts from the Fixed Account
Investment Option to the Variable Account Investment Options. You may also make
transfers under certain programs we offer known as the dollar cost averaging
program, sweep program, and rebalancing. During the Annuity Period, you may not
make transfers from a variable annuity to a fixed annuity or from a fixed
annuity to a variable annuity. Conseco Variable may impose certain additional
limitations on transfers.
WITHDRAWALS: You may make withdrawals from your Contract. We may impose a
withdrawal charge and an administrative fee (annual contract fee) when you make
a withdrawal. You may also make withdrawals pursuant to the systematic
withdrawal plan. A withdrawal may be subject to income taxes and tax penalties.
In addition, certain restrictions apply to withdrawals from TSA Contracts.
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
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LOANS: Under certain circumstances, you may make loans from your Contract.
DEATH BENEFIT: Generally, if the Owner, a Co-Owner, a joint Owner or the
Annuitant dies during the Accumulation Period, Conseco Variable will pay a death
benefit (less any outstanding loans) to the beneficiary.
ANNUITY PAYMENTS: We offer a variety of fixed and variable annuity options
which you can select to receive your Annuity Payments. Your Annuity Payments
will begin during the Annuity Period. You can select the date when Annuity
Payments begin, the frequency of the payments and the annuity option.
TEN-DAY REVIEW: If you cancel the Contract within 10 days after receiving
it (or whatever period is required in your state) we will refund your Purchase
Payment.
TAXES: For TSA Contracts, you can only make withdrawals of amounts
attributable to contributions you made pursuant to a salary reduction agreement
(as defined in the Code) under the following circumstances:
(i) when you attain age 59 1/2
(ii) when you separate from service;
(iii) when you die;
(iv) when you become disabled;
(v) in the case of hardship; or
(vi) made pursuant to a qualified domestic relations order, if otherwise
permitted.
Withdrawals for hardship are restricted to a portion of the Contract
Owner's Contract Value which represents contributions made by the Owner and does
not include any investment results.
Your earnings are not taxed until you take them out. If you take money out
during the Accumulation Period, earnings come out first and are taxed as income.
If you are younger than 59 1/2 when you take money out, you may be charged a 10%
federal tax penalty on the earnings. The Contract provides that if the Annuitant
dies during the Accumulation Period, we will pay a death benefit to the
beneficiary. Such payments upon the death of the Annuitant who is not the
Contract Owner (as in the case of certain non-qualified Contracts), 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.
Payments during the Annuity Period are considered partly a return of your
original investment. That part of each payment is not taxable as income. If your
Contract was purchased under a tax-qualified plan, your payments may be fully
taxable.
CHARGES AND DEDUCTIONS:
o Each year Conseco Variable deducts an Annual Contract Fee from your
Contract. The amount of the fee is equal to $20 for flexible
Purchase Payment Contracts and $25 for single Purchase Payment
Contracts.
o Conseco Variable deducts a Mortality and Expense Risk Fee which is
equal, on an annual basis, to 1.00% of the average daily net assets
of the Variable Account.
o If you take money out of the Contract, Conseco Variable may assess a
deferred sales load which varies depending on whether you own a
flexible Purchase Payment or single Purchase Payment Contract and
how long your Contract has been outstanding. The charge ranges from
8% (7% for single Purchase Payment Contracts) in the first year to
0% after 8 years (5 years for single Purchase Payment Contracts).
o You may be assessed a premium tax charge which generally ranges from
0% - 3.5%, depending on the state.
o As with other professionally managed investments, there are also
investment charges which currently range from .26% to 1.50%, on an
annual basis, of the average daily value of the portfolio, depending
upon the Variable Account Investment Option you select.
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<TABLE>
<CAPTION>
CONSECO VARIABLE ANNUITY ACCOUNT C FEE TABLE FLEXIBLE PURCHASE SINGLE PURCHASE
PAYMENT CONTRACT PAYMENT CONTRACT
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CONTRACT OWNER TRANSACTION EXPENSES(1)
<S> <C> <C>
Sales Load Imposed on Purchases................................ None None
Deferred Sales Load (as a percentage of amount redeemed)(2)
Contract Year Charge
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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
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Total Annual Expenses of the Variable Account(3)............... 1.00% 1.00%
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(1) Premium taxes are not shown. Any premium tax due may be deducted from
Purchase Payments or from Contract Values at the time Annuity Payments
begin or at such other time based on our sole discretion. The current
range of premium taxes in jurisdictions in which we make the Contracts
available is from 0% to 3.5%.
(2) You can make a withdrawal once in any calendar year of 10% of the total
Contract Value of a flexible Purchase Payment Contract without payment of
a deferred sales load. You can withdraw 10% of the Contract Value of the
single Purchase Payment Contract without payment of a deferred sales load
each year beginning with the second Contract year (see "Withdrawal
Charges").
(3) Conseco Variable has guaranteed the total of the investment management
fees charged against Conseco Series Trust's Equity, Fixed Income and Money
Market Portfolios whose shares are purchased by the Variable Account, plus
the mortality and expense risk fee 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 "Charges and Deductions - Expense Guarantee Agreement").
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
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ANNUAL FUND EXPENSES
(as a percentage of the average daily net assets of a portfolio)
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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)
<S> <C> <C> <C> <C>
Balanced Portfolio (2).................................. 0.75% -- 0.00% 0.75%
Equity Portfolio (2).................................... 0.80% -- 0.00% 0.80%
Fixed Income Portfolio.................................. 0.70% -- 0.00% 0.70%
Government Securities Portfolio......................... 0.70% -- 0.00% 0.70%
Money Market Portfolio (2).............................. 0.45% -- 0.00% 0.45%
THE ALGER AMERICAN FUND
Alger American Growth Portfolio......................... 0.75% -- 0.04% 0.79%
Alger American Leveraged AllCap Portfolio (3)........... 0.85% -- 0.11% 0.96%
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 Income & Growth...................................... 0.70% -- 0.00% 0.70%
VP International........................................ 1.50% -- 0.00% 1.50%
VP Value................................................ 1.00% -- 0.00% 1.00%
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% -- 0.05% 0.80%
DREYFUS STOCK INDEX FUND................................ 0.25% -- 0.01% 0.26%
DREYFUS VARIABLE INVESTMENT FUND
Disciplined Stock Portfolio............................. 0.75% -- 0.13% 0.88%
International Value Portfolio........................... 1.00% -- 0.29% 1.29%
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II...................... 0.60% -- 0.18% 0.78%
Federated International Equity Fund II (5).............. 0.53% -- 0.72% 1.25%
Federated Utility Fund II (5)........................... 0.68% -- 0.25% 0.93%
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - High Yield Fund (6)....................... 0.60% -- 0.47% 1.07%
INVESCO VIF - Equity Income Fund (6)(7)................. 0.75% -- 0.18% 0.93%
JANUS ASPEN SERIES
Aggressive Growth Portfolio............................. 0.72% -- 0.03% 0.75%
Growth Portfolio (8).................................... 0.65% -- 0.03% 0.68%
Worldwide Growth Portfolio (8).......................... 0.65% -- 0.07% 0.72%
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio (9).................. 0.75% 0.25% 0.25% 1.25%
Lazard Retirement Small Cap Portfolio (9)............... 0.75% 0.25% 0.25% 1.25%
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio............................. 0.50% -- 0.26% 0.76%
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio............................. 0.70% -- 0.34% 1.04%
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST (10)
Limited Maturity Bond Portfolio......................... 0.65% -- 0.11% 0.76%
Partners Portfolio...................................... 0.78% -- 0.06% 0.84%
STRONG OPPORTUNITY FUND II, INC.
Opportunity Fund II..................................... 1.00% -- 0.16% 1.16%
STRONG VARIABLE INSURANCE FUNDS, INC.
Strong Mid Cap Growth Fund II (11)...................... 1.00% -- 0.20% 1.20%
VAN ECK WORLDWIDE INSURANCE TRUST (12)
Worldwide Bond Fund..................................... 1.00% -- 0.15% 1.15%
Worldwide Emerging Markets Fund......................... 1.00% -- 0.50% 1.50%
Worldwide Hard Assets Fund.............................. 1.00% -- 0.16% 1.16%
Worldwide Real Estate Fund.............................. 0.89% -- 0.00% 0.89%
</TABLE>
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(1) The expense information in the table has been restated to reflect
current fees. Pursuant to a contractual arrangement with the Trust, Conseco
Capital Management, Inc., the adviser, has agreed to waive fees and/or reimburse
portfolio expenses through 4/30/00, so that the annual operating expenses of
each portfolio are limited to the Total Annual Expenses for each respective
portfolio, as set forth above. This arrangement does not cover interest, taxes,
brokerage commissions, and extraordinary expenses. The total percentages in the
above table are after reimbursement. In the absence of expense reimbursement,
the total estimated fees and expenses for 1999 would total: 0.83% for the Money
Market Portfolio; 0.97% for the Government Securities Portfolio; 0.89% for the
Fixed Income Portfolio; 1.01% for the Balanced Portfolio and 0.95% for the
Equity Portfolio.
(2) Conseco Capital Management, Inc., since January 1, 1993, has waived
its management fees in excess of the annual rates set forth above. Absent such
fee waivers, the management fees would be: .85% for the Balanced Portfolio; .85%
for the Equity Portfolio; and .70% for the Money Market Portfolio.
(3) The Alger American Leveraged AllCap Portfolio's "Other Expenses"
includes .03% of interest expense.
(4) The Funds' investment advisers have agreed to waive their advisory fee
and reimburse 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%, 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 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 2.88%, 1.99%, 2.19% and 2.85%, respectively.
(5) In the absence of a voluntary waiver by Federated Investment
Management Company, the Funds' investment adviser, the Management Fee and Total
Annual Portfolio Expenses would have been 0.75% and 1.00%, respectively, for
Utility Fund II. Absent a voluntary waiver of the management fee and the
voluntary reimbursement of certain other operating expenses by Federated
Investment Management Company, the Management Fee and Total Annual Portfolio
Expenses for International Equity Fund II would have been 1.00% and 1.72%,
respectively.
(6) The Fund's actual Total Annual Fund Operating Expenses were lower than
the figures shown because its transfer agent and/or custodian fees were reduced
under expense offset arrangements. Because of an SEC requirement, the figures
shown do not reflect these reductions.
(7) Certain expenses of the Fund are being absorbed voluntarily by INVESCO
Funds Group, Inc. pursuant to a commitment to the Fund. In the absence of such
absorption, Other Expenses and Total Annual Fund Operating Expenses for the year
ended December 31, 1998 were 0.42% and 1.17%, respectively. This commitment may
be changed at any time following consultation with the board of directors.
(8) 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 1998
would have totaled: 0.75% for Growth and 0.74% for Worldwide Growth.
(9) Lazard Asset Management, the Fund's investment adviser, has
voluntarily agreed to reimburse all expenses through December 31, 1999 to the
extent total annual portfolio expenses exceed in any fiscal year 1.25% of the
Portfolio's average daily net assets. Absent such an agreement with the adviser,
the total annual portfolio expenses for the year ended December 31, 1998 would
have been 21.32% for the Lazard Retirement Equity Portfolio and 16.20% for the
Lazard Retirement Small Cap Portfolio.
(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 ("Series") of Advisers Managers Trust. The figures reported
under "Management Fees" include the aggregate of the administra-
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
================================================================================
tion 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
Mid Cap Growth Fund II, has voluntarily agreed to cap the Fund's total operating
expenses at 1.20%. In the absence of the expense cap, total annual portfolio
expenses for the year ended December 31, 1998 were 1.55%. 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) Van Eck Associates Corporation (the "Adviser") agreed to assume
expenses exceeding 1.50% of the Worldwide Emerging Markets Fund's average daily
net assets. Absent this expense reimbursement, Other Expenses would have been
0.61% and Total Portfolio Expenses would have been 1.61%. The Worldwide Hard
Assets Fund's Other Expenses was reduced by a fee arrangement based on cash
balances left on deposit with the custodian and a directed brokerage arrangement
where the Fund directs certain portfolio trades to a broker that, in turn, pays
a portion of the Fund's expenses. Absent these arrangements, the Other Expenses
would have been 0.20% and Total Portfolio Expenses would have been 1.20%. For
the Worldwide Real Estate Fund the Adviser agreed to waive its management fees
and assume certain expenses for the period January 1, 1998 to February 28, 1998.
The Adviser also agreed to assume expenses exceeding 1.00% of the Worldwide Real
Estate Fund's average daily net assets for the period March 1, 1998 to December
31, 1998. The Worldwide Real Estate Fund expenses were also reduced by a fee
arrangement based on cash balances left on deposit with the custodian and a
directed brokerage arrangement where the Fund directs certain portfolio trades
to a broker that, in turn, pays a portion of the Fund's expenses. Absent these
arrangements, the management fee would have been 1.00%, the Other Expenses would
have been 4.32% and Total Portfolio Expenses would have been 5.32% for the
Worldwide Real Estate Fund.
Examples:
o Please remember that the examples that follow should not be
considered a representation of past or future expenses. Actual
expenses may be greater or less than those shown. Similarly, the 5%
annual rate of return is not an estimate or a guarantee of future
investment performance.
o The Contracts are 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.
o The above table reflects estimates of expenses of the Variable
Account and the Funds. The table and examples assume the highest
deductions possible under a Contract, whether or not such deductions
actually would be made under your Contract.
o Annual contract charges have been approximated as a .05% annual
asset charge.
11
<PAGE>
================================================================================
FLEXIBLE PREMIUM PAYMENT CONTRACT
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on assets:
Example 1 - If you surrender the Contract at the end of the time periods:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONSECO SERIES TRUST
Balanced Portfolio....................................... $ 98 $116 $136 $208
Equity Portfolio......................................... 99 117 139 214
Fixed Income 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.......................... 98 117 130 212
Alger American Leveraged AllCap Portfolio................ 100 122 147 230
Alger American MidCap Growth Portfolio................... 99 118 141 218
Alger American Small Capitalization Portfolio............ 99 120 143 223
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
VP Income and Growth..................................... 98 114 133 203
VP International......................................... 106 138 174 285
VP 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........ 99 117 139 214
DREYFUS STOCK INDEX FUND................................. 93 101 111 155
DREYFUS VARIABLE INVESTMENT FUND, INC.
Disciplined Stock Portfolio.............................. 99 120 143 222
International Value Portfolio............................ 103 132 163 264
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II....................... 98 117 137 211
Federated International Equity Fund II................... 103 131 161 260
Federated Utility Fund II................................ 100 121 145 227
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - High Yield Fund ........................... 101 125 152 242
INVESCO VIF - Equity Income Fund......................... 100 121 145 227
JANUS ASPEN SERIES
Aggressive Growth Portfolio.............................. 98 116 136 208
Growth Portfolio......................................... 97 114 132 201
Worldwide Growth Portfolio............................... 98 115 134 205
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio....................... 103 131 161 260
Lazard Retirement Small Cap Portfolio.................... 103 131 161 260
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio.............................. 98 116 136 209
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio.............................. 101 125 151 239
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio.......................... 98 116 136 209
Partners Portfolio....................................... 99 118 141 218
STRONG OPPORTUNITY FUND II, INC.
Opportunity Fund II...................................... 102 128 157 251
STRONG VARIABLE INSURANCE FUNDS, INC.
Strong Mid Cap Growth Fund II............................ 103 129 159 255
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Bond Fund...................................... 102 128 156 250
Worldwide Emerging Markets Fund.......................... 106 138 174 285
Worldwide Hard Assets Fund............................... 102 128 157 251
Worldwide Real Estate Fund............................... 99 120 143 223
</TABLE>
12
<PAGE>
CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
================================================================================
FLEXIBLE PREMIUM PAYMENT CONTRACT - Continued
Example 2 - If you elect to annuitize your Contract:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONSECO SERIES TRUST
Balanced Portfolio....................................... $ 98 $116 $ 96 $208
Equity Portfolio......................................... 99 117 99 214
Fixed Income 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................ 100 122 107 230
Alger American MidCap Growth Portfolio................... 99 118 101 218
Alger American Small Capitalization Portfolio............ 99 120 103 223
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
VP Income and Growth..................................... 98 114 93 203
VP International......................................... 106 138 134 285
VP 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........ 99 117 99 214
DREYFUS STOCK INDEX FUND................................. 93 101 71 155
DREYFUS VARIABLE INVESTMENT FUND, INC.
Disciplined Stock Portfolio.............................. 99 120 103 222
International Value Portfolio............................ 103 132 123 264
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II....................... 98 117 97 211
Federated International Equity Fund II................... 103 131 121 260
Federated Utility Fund II................................ 100 121 105 227
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - High Yield Fund............................ 101 125 112 242
INVESCO VIF - Equity Income Fund......................... 100 121 105 227
JANUS ASPEN SERIES
Aggressive Growth Portfolio.............................. 98 116 96 208
Growth Portfolio......................................... 97 114 92 201
Worldwide Growth Portfolio............................... 98 115 94 205
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio....................... 103 131 121 260
Lazard Retirement Small Cap Portfolio.................... 103 131 121 260
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio.............................. 98 116 96 209
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio.............................. 101 125 111 239
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio.......................... 98 116 96 209
Partners Portfolio....................................... 99 118 101 218
STRONG OPPORTUNITY FUND II, INC.
Opportunity Fund II...................................... 102 128 117 251
STRONG VARIABLE INSURANCE FUNDS, INC.
Strong Mid Cap Growth Fund II............................ 103 129 119 255
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Bond Fund...................................... 102 128 116 250
Worldwide Emerging Markets Fund.......................... 106 138 134 285
Worldwide Hard Assets Fund............................... 102 128 117 251
Worldwide Real Estate Fund............................... 99 120 103 223
</TABLE>
13
<PAGE>
================================================================================
FLEXIBLE PREMIUM PAYMENT CONTRACT - Continued
Example 3 - If you do not surrender your Contract at the end of each time
period:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONSECO SERIES TRUST
Balanced Portfolio....................................... $18 $56 $ 96 $208
Equity Portfolio......................................... 19 57 99 214
Fixed Income 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................ 20 62 107 230
Alger American MidCap Growth Portfolio................... 19 58 101 218
Alger American Small Capitalization Portfolio............ 19 60 103 223
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
VP Income and Growth..................................... 18 54 93 203
VP International......................................... 26 78 134 285
VP 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 57 99 214
Dreyfus Stock Index Fund................................. 13 41 71 155
DREYFUS VARIABLE INVESTMENT FUND, INC.
Disciplined Stock Portfolio.............................. 19 60 103 222
International Value Portfolio............................ 23 72 123 264
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II....................... 18 57 97 211
Federated International Equity Fund II................... 23 71 121 260
Federated Utility Fund II................................ 20 61 105 227
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF--High Yield Fund............................. 21 65 112 242
INVESCO VIF--Equity Income Fund.......................... 20 61 105 227
JANUS ASPEN SERIES
Aggressive Growth Portfolio.............................. 18 56 96 208
Growth Portfolio......................................... 17 54 92 201
Worldwide Growth Portfolio............................... 18 55 94 205
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio....................... 23 71 121 260
Lazard Retirement Small Cap Portfolio.................... 23 71 121 260
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio.............................. 18 56 96 209
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio.............................. 21 65 111 239
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio.......................... 18 56 96 209
Partners Portfolio....................................... 19 58 101 218
STRONG OPPORTUNITY FUND II, INC.
Opportunity Fund II...................................... 22 68 117 251
STRONG VARIABLE INSURANCE FUNDS, INC.
Strong Mid Cap Growth Fund II............................ 23 69 119 255
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Bond Fund...................................... 22 68 116 250
Worldwide Emerging Markets Fund.......................... 26 78 134 285
Worldwide Hard Assets Fund............................... 22 68 117 251
Worldwide Real Estate Fund............................... 19 60 103 223
</TABLE>
14
<PAGE>
CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
================================================================================
SINGLE PREMIUM PAYMENT CONTRACT
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on assets:
Example 1 - If you surrender the Contract at the end of the time periods:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONSECO SERIES TRUST
Balanced Portfolio....................................... $ 88 $106 $126 $208
Equity Portfolio......................................... 89 107 129 214
Fixed Income Portfolio................................... 88 104 123 203
Government Securities Portfolio.......................... 88 104 123 203
Money Market Portfolio................................... 85 97 110 176
THE ALGER AMERICAN FUND
Alger American Growth Portfolio.......................... 88 107 128 212
Alger American Leveraged AllCap Portfolio................ 90 112 137 230
Alger American MidCap Growth Portfolio................... 89 108 131 218
Alger American Small Capitalization Portfolio............ 89 110 133 223
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
VP Income and Growth..................................... 88 104 123 203
VP International......................................... 96 128 164 285
VP Value................................................. 91 113 139 234
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT--100 Fund..................................... 91 113 139 234
Berger IPT--Growth and Income Fund....................... 91 113 139 234
Berger IPT--Small Company Growth Fund.................... 92 118 146 250
Berger/BIAM IPT--International Fund...................... 93 119 149 255
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC........ 89 107 129 214
Dreyfus Stock Index Fund................................. 83 91 101 155
DREYFUS VARIABLE INVESTMENT FUND, INC.
Disciplined Stock Portfolio.............................. 89 110 133 222
International Value Portfolio............................ 93 122 153 264
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II....................... 88 107 127 211
Federated International Equity Fund II................... 93 121 151 260
Federated Utility Fund II................................ 90 111 135 227
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF--High Yield Fund............................. 91 115 142 242
INVESCO VIF--Equity Income Fund.......................... 90 111 135 227
JANUS ASPEN SERIES
Aggressive Growth Portfolio.............................. 88 106 126 208
Growth Portfolio......................................... 87 104 122 201
Worldwide Growth Portfolio............................... 88 105 124 205
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio....................... 93 121 151 260
Lazard Retirement Small Cap Portfolio.................... 93 121 151 260
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio.............................. 88 106 126 209
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio.............................. 91 115 141 239
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio.......................... 88 106 126 209
Partners Portfolio....................................... 89 108 131 218
STRONG OPPORTUNITY FUND II, INC.
Opportunity Fund II...................................... 92 118 147 251
STRONG VARIABLE INSURANCE FUNDS, INC.
Strong Mid Cap Growth Fund II............................ 93 119 149 255
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Bond Fund...................................... 92 118 146 250
Worldwide Emerging Markets Fund.......................... 96 128 164 285
Worldwide Hard Assets Fund............................... 92 118 147 251
Worldwide Real Estate Fund............................... 89 110 133 223
</TABLE>
15
<PAGE>
================================================================================
SINGLE PREMIUM PAYMENT CONTRACT - Continued
Example 2 - If you elect to annuitize your Contract:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONSECO SERIES TRUST
Balanced Portfolio....................................... $88 $106 $96 $208
Equity Portfolio......................................... 89 107 99 214
Fixed Income Portfolio................................... 88 104 93 203
Government Securities Portfolio.......................... 88 104 93 203
Money Market Portfolio................................... 85 97 80 176
THE ALGER AMERICAN FUND
Alger American Growth Portfolio.......................... 88 107 98 212
Alger American Leveraged AllCap Portfolio................ 90 112 107 230
Alger American MidCap Growth Portfolio................... 89 108 101 218
Alger American Small Capitalization Portfolio............ 89 110 103 223
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
VP Income and Growth..................................... 88 104 93 203
VP International......................................... 96 128 134 285
VP Value................................................. 91 113 109 234
BERGER INSTITUTIONAL PRODUCTS TRUST
Berger IPT--100 Fund..................................... 91 113 109 234
Berger IPT--Growth and Income Fund....................... 91 113 109 234
Berger IPT--Small Company Growth Fund.................... 92 118 116 250
Berger/BIAM IPT--International Fund...................... 93 119 119 255
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC........ 89 107 99 214
Dreyfus Stock Index Fund................................. 83 91 71 155
DREYFUS VARIABLE INVESTMENT FUND, INC.
Disciplined Stock Portfolio.............................. 89 110 103 222
International Value Portfolio............................ 93 122 123 264
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II....................... 88 107 97 211
Federated International Equity Fund II................... 93 121 121 260
Federated Utility Fund II................................ 90 111 105 227
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF--High Yield Fund............................. 91 115 112 242
INVESCO VIF--Equity Income Fund.......................... 90 111 105 227
JANUS ASPEN SERIES
Aggressive Growth Portfolio.............................. 88 106 96 208
Growth Portfolio......................................... 87 104 92 201
Worldwide Growth Portfolio............................... 88 105 94 205
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio....................... 93 121 121 260
Lazard Retirement Small Cap Portfolio.................... 93 121 121 260
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio.............................. 88 106 96 209
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio.............................. 91 115 111 239
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio.......................... 88 106 96 209
Partners Portfolio....................................... 89 108 101 218
STRONG OPPORTUNITY FUND II, INC.
Opportunity Fund II...................................... 92 118 117 251
STRONG VARIABLE INSURANCE FUNDS, INC.
Strong Mid Cap Growth Fund II............................ 93 119 119 255
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Bond Fund...................................... 92 118 116 250
Worldwide Emerging Markets Fund.......................... 96 128 134 285
Worldwide Hard Assets Fund............................... 92 118 117 251
Worldwide Real Estate Fund............................... 89 110 103 223
</TABLE>
16
<PAGE>
CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
================================================================================
SINGLE PREMIUM PAYMENT CONTRACT - Continued
Example 3 - If you do not surrender your Contract at the end of each time
period:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONSECO SERIES TRUST
Balanced Portfolio....................................... $18 $ 56 $ 96 $208
Equity Portfolio......................................... 19 57 99 214
Fixed Income 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................ 20 62 107 230
Alger American MidCap Growth Portfolio................... 19 58 101 218
Alger American Small Capitalization Portfolio............ 19 60 103 223
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
VP Income and Growth..................................... 18 54 93 203
VP International......................................... 26 78 134 285
VP 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 57 99 214
DREYFUS STOCK INDEX FUND................................. 13 41 71 155
DREYFUS VARIABLE INVESTMENT FUND, INC.
Disciplined Stock Portfolio.............................. 19 60 103 222
International Value Portfolio............................ 23 72 123 264
FEDERATED INSURANCE SERIES
Federated High Income Bond Fund II....................... 18 57 97 211
Federated International Equity Fund II................... 23 71 121 260
Federated Utility Fund II................................ 20 61 105 227
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF--High Yield Fund............................. 21 65 112 242
INVESCO VIF--Equity Income Fund.......................... 20 61 105 227
JANUS ASPEN SERIES
Aggressive Growth Portfolio.............................. 18 56 96 208
Growth Portfolio......................................... 17 54 92 201
Worldwide Growth Portfolio............................... 18 55 94 205
LAZARD RETIREMENT SERIES, INC.
Lazard Retirement Equity Portfolio....................... 23 71 121 260
Lazard Retirement Small Cap Portfolio.................... 23 71 121 260
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio.............................. 18 56 96 209
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio.............................. 21 65 111 239
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio.......................... 18 56 96 209
Partners Portfolio....................................... 19 58 101 218
STRONG OPPORTUNITY FUND II, INC.
Opportunity Fund II...................................... 22 68 117 251
STRONG VARIABLE INSURANCE FUNDS, INC.
Strong Mid Cap Growth Fund II............................ 23 69 119 255
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Bond Fund...................................... 22 68 116 250
Worldwide Emerging Markets Fund.......................... 26 78 134 285
Worldwide Hard Assets Fund............................... 22 68 117 251
Worldwide Real Estate Fund............................... 19 60 103 223
</TABLE>
There is an Accumulation Unit value history (Condensed Financial Information)
contained in the Appendix.
17
<PAGE>
================================================================================
Conseco Variable, The Variable Account and Investment Options
Conseco Variable
Conseco Variable Insurance Company ("Conseco Variable" or the "Company")
was originally organized in 1937. Prior to October 7, 1998, the Company was
known as Great American Reserve Insurance Company. In certain states, we may
continue to use the name Great American Reserve Insurance Company until our name
change is approved in that state. The Company is principally engaged in the life
insurance business in 49 states and the District of Columbia. Conseco Variable
is a stock company organized under the laws of the state of Texas and is an
indirect wholly-owned subsidiary of Conseco, Inc. Conseco, Inc. is a publicly
owned financial services organization headquartered in Carmel, Indiana. Through
its subsidiaries, Conseco, Inc. is one of the nation's leading providers of
supplemental health insurance, retirement annuities and universal life
insurance.
Contract Owner Inquiries
You should direct any inquiries you have regarding your Individual
Account, the Contracts, or any related matter to the Company's Variable Annuity
Department at the address and telephone number shown under "Administrative
Office" on page 1 of this Prospectus.
Financial Statements
The financial statements of Conseco Variable and the Variable Account are
contained in the Statement of Additional Information. You should consider the
financial statements of Conseco Variable only as bearing upon the ability of
Conseco Variable to meet its obligations under the Contracts. Neither the assets
of Conseco Variable nor those of any company in the Conseco Variable group of
companies other than Conseco Variable support these obligations.
The Variable Account
The Variable Account was originally established in 1980 by Voyager Life
Insurance Company. The Variable Account 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 the 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 the Variable Account, Annuity
Fund, and Account D. 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 the Variable Account became the
continuing separate account. Also on May 1, 1993, all of the sub-account assets
of the Variable Account, including those of Annuity Fund and Account D, were
sold, assigned and transferred to the Equity (formerly, Common Stock), Fixed
Income (formerly, Corporate Bond) and Money Market Portfolios of Conseco Series
Trust. In exchange for such assets, shares of the Equity, Fixed Income and Money
Market Portfolios were issued to the Equity sub-account, Fixed Income
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 the 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 Conseco Variable as managed separate accounts
investing directly in securities. As a result of the Combination, the Variable
Account invests in shares of Conseco Series Trust. The Variable Account also
invests in shares of other Funds.
Prior to May 1, 1999, the Variable Account was known as Great American
Reserve Variable Annuity Account C. Registration under the 1940 Act does not
involve the supervision by the SEC of the management or investment policies or
practices of the Variable Account. The Variable Account is regulated by the
Insurance Department of Texas. Regulation by the state, however, does not
involve any supervision of the Variable Account, except to determine compliance
with broad statutory criteria.
The assets of the Variable Account are held in Conseco Variable's name on
behalf of the Variable Account and legally belong to Conseco Variable. However,
those assets that underlie the Contracts are not available to be used to pay the
liabilities
18
<PAGE>
CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
================================================================================
arising out of any other business Conseco Variable may conduct. All the income,
gains and losses (realized or unrealized) resulting from these assets are
credited to or charged against the Contracts and not against any other Contracts
Conseco Variable may issue.
The Variable Account is divided into sub-accounts. Each sub-account
invests in shares of one of the Funds.
Conseco Variable 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 Conseco
Variable's Fixed Account; or to add, combine or remove sub-accounts
in the Variable Account; and
(d) to change the way Conseco Variable assesses charges, so long as the
aggregate amount is not increased beyond that currently charged to
the Variable Account and the portfolios in connection with the
Contract.
Investment Options
The Contract offers 40 Variable Account Investment Options which are
listed below. You bear the investment risk for amounts you allocate to the
Variable Account Investment Options. We may make additional Investment Options
available in the future.
Shares of the Funds are also offered in connection with certain variable
annuity contracts and variable life insurance policies of various life insurance
companies which may or may not be affiliated with Conseco Variable. Certain
Funds are also sold directly to qualified plans. The Funds believe that offering
their shares in this manner will not be disadvantageous to you.
Conseco Variable may enter into certain arrangements under which it is
reimbursed by the Funds' advisers, distributors and/or affiliates for the
administrative services which it provides to the Funds.
You should read the prospectus for these funds carefully before investing.
Copies of these prospectuses are attached to this prospectus. Certain portfolios
contained in the fund prospectuses may not be available with your contract.
Conseco Series Trust
Conseco Series Trust is a mutual fund with multiple portfolios. Conseco
Series Trust is managed by Conseco Capital Management, Inc. The following
portfolios are available under the Contract:
Balanced Portfolio (formerly, Asset Allocation Portfolio)
Equity Portfolio (formerly, Common Stock Portfolio)
Fixed Income Portfolio (formerly, Corporate Bond Portfolio)
Government Securities Portfolio
Money Market Portfolio
The Alger American Fund
The Alger American Fund is a mutual fund with multiple portfolios. Fred
Alger Management, Inc. serves as the Fund's investment adviser. The following
portfolios are available under the Contract:
Alger American Growth Portfolio
Alger American Leveraged AllCap Portfolio
Alger American MidCap Growth Portfolio
Alger American Small Capitalization Portfolio
American Century Variable Portfolios, Inc.
American Century Variable Portfolios, Inc. is a series of funds managed by
American Century Investment Management, Inc. The following portfolios are
available under the Contract:
VP Income & Growth
VP International
VP Value (long-term capital growth with income as a secondary objective)
Berger Institutional Products Trust
Berger Institutional Products Trust is a mutual fund with multiple
portfolios. Berger Associates, Inc. is the investment adviser to all portfolios
except the Berger/BIAM IPT--International Fund. BBOI Worldwide, LLC is the
adviser to the Berger/BIAM IPT--International Fund. The following portfolios are
available under the Contract:
19
<PAGE>
================================================================================
Berger IPT--100 Fund (long-term capital appreciation)
Berger IPT--Growth and Income Fund
Berger IPT--Small Company Growth Fund
Berger/BIAM IPT--International Fund
The Dreyfus Socially Responsible Growth Fund, Inc.
The Dreyfus Socially Responsible Growth Fund, Inc. is managed by The
Dreyfus Corporation. Dreyfus has hired NCM Capital Management Group, Inc. to
serve as sub-investment adviser and to provide day-to-day management of the
Fund's investments.
Dreyfus Stock Index Fund
The Dreyfus Corporation serves as the Fund's manager. Dreyfus has hired
its affiliate, Mellon Equity Associates, to serve as the Fund's index fund
manager and to provide day-to-day management of the Fund's investments.
Dreyfus Variable Investment Fund
The Dreyfus Variable Investment Fund is a mutual fund with multiple
portfolios. The Dreyfus Corporation serves as the investment adviser. The
following portfolios are available under the Contract:
Disciplined Stock Portfolio (seeks to outperform the total return
performance of the Standard & Poor's 500 Composite Stock Price Index)
International Value Portfolio
Federated Insurance Series
Federated Insurance Series is a mutual fund with multiple portfolios.
Federated Investment Management Company is the investment adviser. The adviser
changed its name from Federated Advisers to Federated Investment Management
Company on March 31, 1999. Federated Global Investment Management Corp. is the
sub-adviser of the Federated International Equity Fund II. The following
portfolios are available under the Contract:
Federated High Income Bond Fund II
Federated International Equity Fund II
Federated Utility Fund II
INVESCO Variable Investment Funds, Inc.
INVESCO Variable Investment Funds, Inc. is a mutual fund with multiple
portfolios. INVESCO Funds Group, Inc. is the investment adviser. The following
portfolios are available under the Contract:
INVESCO VIF--High Yield Fund (seeks high level of current income)
INVESCO VIF--Equity Income Fund (formerly, INVESCO VIF--Industrial Income
Portfolio) (seeks high current income with growth of capital as a
secondary goal)
Janus Aspen Series
The Janus Aspen Series is a mutual fund with multiple portfolios which are
advised by Janus Capital Corporation. The following portfolios are available
under the Contract:
Aggressive Growth Portfolio
Growth Portfolio
Worldwide Growth Portfolio
Lazard Retirement Series, Inc.
Lazard Retirement Series, Inc. is a mutual fund with multiple portfolios.
Lazard Asset Management, a division of Lazard Freres & Co. LLC, is the
investment manager for each portfolio. The following portfolios are available
under the Contract:
Lazard Retirement Equity Portfolio
Lazard Retirement Small Cap Portfolio
Lord Abbett Series Fund, Inc.
Lord Abbett Series Fund, Inc. is a mutual fund managed by Lord, Abbett &
Co. The following portfolio is available under the Contract:
Growth and Income Portfolio
Mitchell Hutchins Series Trust
Mitchell Hutchins Series Trust is a mutual fund with multiple portfolios.
Mitchell Hutchins Asset Management Inc. provides advisory and administrative
services to the Fund. The following portfolio is available under the Contract:
Growth and Income Portfolio
Neuberger Berman Advisers Management Trust
Each portfolio of Neuberger Berman Advisers Management Trust invests in a
corresponding series of Advisers Managers Trust. All series of Advisers Managers
Trust are managed by Neuberger Berman Management Inc. The following are
available under the Contract:
Limited Maturity Bond Portfolio
Partners Portfolio (capital growth)
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
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Strong Opportunity Fund II, Inc.
Strong Opportunity Fund II is a mutual fund managed by Strong Capital
Management, Inc. The following portfolio is available under the Contract:
Opportunity Fund II (capital growth)
Strong Variable Insurance Funds, Inc.
Strong Variable Insurance Funds, Inc. is a mutual fund with multiple
series. Strong Capital Management, Inc. serves as the investment adviser. The
following series is available under the Contract:
Strong Mid Cap Growth Fund II (formerly, Growth Fund II)
Van Eck Worldwide Insurance Trust
Van Eck Worldwide Insurance Trust is a mutual fund with multiple
portfolios which are managed by Van Eck Associates Corporation. The following
portfolios are available under the Contract:
Worldwide Bond Fund
Worldwide Emerging Markets Fund
Worldwide Hard Assets Fund
Worldwide Real Estate Fund
Voting Rights
Conseco Variable is the legal owner of the Fund shares. However, Conseco
Variable believes that when a Fund solicits proxies in conjunction with a vote
of shareholders, it is required to obtain from you and other owners instructions
as to how to vote those shares. When we receive those instructions, we will vote
all of the shares we own in proportion to those instructions. If we determine
that we are no longer required to comply with the above, we will vote the shares
in our own right without obtaining instructions from you. We have provided a
further discussion of voting rights in the Statement of Additional Information.
Fixed Account
The Fixed Account is not registered with the SEC because of certain
exemptive and exclusionary provisions. Conseco Variable has been advised that
the staff of the SEC has not reviewed the disclosure in this Prospectus relating
to the Fixed Account. The disclosure may, however, be subject to certain
generally applicable provisions of the federal securities laws relating to the
accuracy and completeness of statements made in prospectuses.
Purchase Payments and transfers to the Fixed Account become part of the
general account of Conseco Variable. You can transfer Contract Values between
the Fixed and Variable Accounts, but the transfers are subject to the following:
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% of the Fixed Account value;
3. You may not make transfers from the Fixed Account once Annuity
Payments begin.
The mortality and expense risk charge does not apply to values allocated
to the Fixed Account.
If you buy the Contract as a TSA or under certain other qualified plans,
the Contract may contain a provision that allows you to take a loan against the
Contract Value you have allocated to the Fixed Account. Loan provisions are
described in detail in your Contract.
THE CONTRACTS
The Contracts, like all deferred annuity Contracts, have two phases: the
Accumulation Period and the Annuity Period. When you are making Purchase
Payments to the Contract, it is called the Accumulation Period. During the
Accumulation Period, earnings accumulate on a tax deferred basis and are taxed
as income when you make a withdrawal. When you begin receiving Annuity Payments
from the Contract, it switches to the Annuity Period.
There are two types of Contracts described in this prospectus:
(1) flexible Purchase Payment deferred annuity Contracts under which
Purchase Payments can be made at intervals you desire, 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 Purchase Payment deferred annuity Contracts under which a
single Purchase Payment is made, under which Annuity Payments to the
Annuitant begin at a point of time in the future. The Single
Purchase Payment Contract is no longer offered for sale.
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Accumulation Provisions
Purchase Payments
The flexible Purchase Payment Contracts have a minimum initial Purchase
Payment requirement of $10 and subsequent Purchase Payment requirement of $10
per month. Purchase Payments in excess of $500,000 may be made only with our
approval and will be subject to such terms and conditions as we may require. 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 single Purchase Payment Contracts require a minimum Purchase Payment
of $10,000 with additional Contracts in amounts of not less than $5,000.
You can make Purchase Payments to Conseco Variable at its Administrative
Office. Conseco Variable must approve each application. When Conseco Variable
accepts your application, it will issue you a Contract and allocate your
Purchase Payment as described below.
Allocation of Purchase Payments
You may elect to have Purchase Payments accumulate:
(a) on a fully variable basis, which means they are invested in the sub-
accounts of the Variable Account (Variable Account Investment
Options);
(b) on a fully fixed basis, which means they are invested in our general
account and receive a periodically adjusted interest rate guaranteed
by Conseco Variable (Fixed Account); or
(c) a combination of both.
You may request to change your allocation of future Purchase Payments 30
days after either we establish your Individual Account, or 30 days after you
have made a prior change in allocation.
Once we receive your Purchase Payment and the necessary information, we
will issue your Contract and allocate your first Purchase Payment within 2
business days. If you do not provide us all of the information needed, we will
contact you. If for some reason we are unable to complete this process within 5
business days, we will either send back your money or get your permission to
keep it until we get all of the necessary information.
If you add more money to your Contract by making additional Purchase
Payments, we will credit these amounts to your Contract within one business day.
Our business day closes when the New York Stock Exchange closes, usually 4:00
P.M. Eastern time.
Accumulation Units
We credit Purchase Payments that you allocate to the sub-accounts with
Accumulation Units. We do this at the end of the Valuation Period when we
receive your Purchase Payment at our Administrative Office. We determine the
number of Accumulation Units credited to your Contract by dividing the Purchase
Payment amount by the value of an Accumulation Unit at the end of that Valuation
Period. We value Accumulation Units for each sub-account separately.
Accumulation Unit Values
Every day we determine the value of an Accumulation Unit for each of the
sub-accounts by multiplying the Accumulation Unit value for the previous
Valuation Period by a factor for the current Valuation Period. The factor is
determined by:
1. dividing the value of a Fund share at the end of the current
Valuation Period (and any charges for taxes) by the value of a Fund
share for the previous Valuation Period; and
2. subtracting the daily amount of the mortality and expense risk fee.
The value of an Accumulation Unit may go up or down from Valuation Period
to Valuation Period. There is no guarantee that the value of your Individual
Account will equal or exceed the Purchase Payments you have made.
We will tell you at least once each year the number of Accumulation Units
which we credited to your Individual Account, the current Accumulation Unit
values and the value of your Individual Account.
Transfers
During the Accumulation Period, you may make transfers from one
sub-account to another sub-account and/or to the Fixed Account. Except with our
permission, you can only make a transfer once in any 30-day period. You can only
make one transfer from the Fixed Account in any 6 month period of no more than
20% of the Fixed Account value. You can make transfers between sub- accounts and
changes in allocations in writing or by telephone (if you have completed a
telephone authorization request).
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
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How You Can Make Transfers
Transfers must be made by written authorization from you or from the
person acting on your behalf as an attorney-in-fact under a power-of-attorney if
permitted by state law. You must request telephone transfers on forms we
provide. By authorizing Conseco Variable to accept telephone transfer
instructions, you agree to accept and be bound by the conditions and procedures
established by Conseco Variable from time to time. We have instituted reasonable
procedures to confirm that any instructions communicated by telephone are
genuine. We will record all telephone calls and will ask the caller 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
Conseco Variable nor Conseco Equity Sales, Inc. will be liable for following
telephone instructions which it reasonably believes to be genuine.
Transfer requests received by Conseco Variable 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. If we receive a request later it
will be initiated at the close of the next business day.
Dollar Cost Averaging
Conseco Variable offers a Dollar Cost Averaging (DCA) program which
enables you to transfer values from the Fixed Account or Money Market
sub-account to another Investment Option on a predetermined and systematic
basis. The DCA program allows you to make investments in equal installments over
time in an effort to potentially reduce the risk of market fluctuations. There
is no guarantee that this will happen. The transfers under this program do not
count toward the number of transfers you can make in a year. Currently, there is
no charge for participating in this program.
Rebalancing
Rebalancing is a program, which if elected, permits you to pre-authorize
periodic automatic transfers during the Accumulation Period among the
sub-accounts pursuant to your written instructions. The transfers under this
program are made to maintain a particular percentage allocation among the
sub-accounts you select. Any amount you have in the Fixed Account will not be
transferred pursuant to the rebalancing program. You must have at least $5,000
of Contract Value to have transfers made pursuant to this program. Transfers
must be in whole percentages in one (1%) percent allocation increments. The
maximum number of sub-accounts you can use for rebalancing is 15. You can
request that rebalancing occur quarterly, semi-annually or annually on a date
you select. There is no fee for participating in the program. Conseco Variable
reserves the right to terminate, modify or suspend the rebalancing program at
any time. The transfers under this program do not count toward the number of
transfers you can make in a year.
Sweeps
Sweeps is a program which provides for the automatic transfer of the
earnings from the Fixed Account into a Variable Account Investment Option on a
periodic and systematic basis. The transfers under this program do not count
toward the number of transfers you can make in a year. Currently, there is no
charge for participating in this program.
Withdrawals
The Contract permits you to withdraw all or a portion of the Contract
Value at any time before the commencement of Annuity Payments (subject to any
restrictions of the Code). We will determine the value of the Contract as of the
date we receive a written request for a withdrawal at our Administrative Office
or a later date you specify in the request. The redemption payment will be the
value of Accumulation Units then credited to the Individual Account 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, Conseco
Variable will continue to make Annuity Payments under the option you selected
until its obligations to make such payments terminates.
For certain qualified Contracts, your withdrawal rights may be restricted
and may require the consent of your spouse as required under the Code.
If you have amounts allocated to more than one Investment Option, a
request for a partial withdrawal must specify the manner in which the amount
redeemed is to be allocated between the Investment Options.
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Withdrawals may be subject to income taxes, penalty taxes and certain
restrictions.
Suspension of Payments
We will pay the amount of any withdrawal from the Variable Account
promptly, and in any event within seven days of the date Conseco Variable
receives the written request at its Administrative Office. Conseco Variable
reserves the right to defer the right of withdrawal or postpone payments for any
period when:
(1) the New York Stock Exchange is closed (other than customary weekend
and holiday closings);
(2) trading on the New York Stock Exchange is restricted;
(3) an emergency exists as a result of which disposal of securities held
in the Variable Account is not reasonably practicable or it is not
reasonably practical to determine the value of the Variable
Account's net assets; or
(4) the SEC, by order, so permits for the protection of security
holders, provided that applicable rules and regulations of the SEC
will govern as to whether the conditions described in (2) and (3)
exist.
Restrictions Under Optional Retirement Programs
If you participate in certain Optional Retirement Programs (ORP), you can
withdraw your interest in a 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, you (as a participant in ORP) may be required to obtain a
certificate of termination from your employer before you can withdraw your
interest. Certain plans may have additional restrictions on distributions.
Restrictions Under Section 403(b) Plans
If you own the Contract under a TSA-403(b) plan, you can only make
withdrawals of amounts attributable to contributions you made pursuant to a
salary reduction agreement (as defined in Section 403(b)(11) of the Code) under
the following circumstances:
(1) when you attain age 59 1/2,
(2) when you separate from service,
(3) when you die,
(4) when you become disabled (within the meaning of Section 72(m)(7) of
the Code),
(5) in the case of hardship, or
(6) made pursuant to a qualified domestic relations order, if otherwise
permitted.
Withdrawals for hardship are restricted to the portion of your Contract
Value which represents contributions you made and does not include any
investment results. The limitations on withdrawals became effective on January
1, 1989, and apply only to:
o salary reduction contributions made after December 31, 1988;
o income attributable to such contributions; and
o 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.
Systematic Withdrawal Plan
Conseco Variable offers a Systematic Withdrawal Plan (SWP) which enables
you to pre-authorize periodic withdrawals. You can participate in this program
by sending a written request to our Administrative Office. You can instruct
Conseco Variable to withdraw a level dollar amount from specified Investment
Options on a periodic basis. If you do a reallocation and do not specify
Investment Options, all systematic withdrawals will be withdrawn from the Fixed
Account and Variable Account Investment Options on a pro-rata basis. The total
SWP withdrawals in a Contract Year which you are permitted to make is limited to
amounts that can be withdrawn without the withdrawal charge (see "Charges and
Deductions--Withdrawal Charge"). If you are participating in this program and
make a withdrawal subject to a withdrawal charge, the SWP will terminate
automatically and may be reinstated only on or after we receive a written
request.
SWP is not available if you participate in the dollar cost averaging
program or if you have Purchase Payments automatically deducted from a bank
account on a periodic basis.
Systematic withdrawals may be subject to income taxes, penalty taxes and
certain restrictions.
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
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Loans
Your Contract may contain a loan provision issued in connection with
certain qualified plans. If you own a Contract which contains a loan provision,
you 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. You should consult a tax adviser and retirement plan fiduciary before
exercising loan privileges. Loan provisions are described in detail in your
Contract.
The amount of any loan outstanding on the date of death will be deducted
from the death benefit. In addition, a loan, whether or not repaid, will have a
permanent effect on the Contract Value because the investment performance of the
Investment Options 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 performance
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 were outstanding. If the investment
performance results are below that rate, the Contract Value will be higher than
it would have been if no loan had been outstanding.
Charges and Deductions
Withdrawal Charge
If you own a single Purchase Payment Contract, you can withdraw 10% of the
Contract Value with out payment of a withdrawal charge each year beginning with
the second Contract year. If you own a flexible Purchase Payment Contract, you
can withdraw 10% the Contract Value without payment of a withdrawal charge, but
you may not make more than one free withdrawal in any calendar year. If you
terminate either Contract or make a partial withdrawal in excess of these
limitations, the withdrawal may subject the value of the amount surrendered
("Amount Redeemed") to a withdrawal charge.
Conseco Variable will calculate the deduction for withdrawal charges on
the amount withdrawn in excess of the 10% when we determine the amount to be
paid ("Redemption Payment"). For flexible Purchase Payment Contracts, we will
calculate the deduction for the first withdrawal in a Contract year on the
amount withdrawn in excess of 10% of the total current accumulation. For the
second or subsequent withdrawals in a Contract year, we will calculate the
withdrawal charge on the total amount of each withdrawal.
We do not deduct withdrawal charges from Annuity Payments under an annuity
option involving lifetime payments or from amounts paid due to the death of a
participant. We will deduct any applicable withdrawal charge if the number of
years under an annuity option for a guaranteed period selected is less than
five.
The withdrawal charge will be a percentage of the Amount Redeemed, ranging
from 0% to 8% depending on the type of Contract you own and the length of time
the Contract has been outstanding. In no event, however, will the cumulative
deductions exceed 8.5% 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 Contract Value.
The withdrawal charges are:
Flexible Purchase Single Purchase
Contract Year Payment Contract Payment Contract
- --------------------------------------------------------------------------------
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%
Examples:
(1) If you own a single Purchase Payment Contract and make a complete
withdrawal of your Individual Account during the third Contract year:
Value of
Contract or
Individual
Account Single
(Amount Premium Withdrawal Administrative Redemption
Redeemed) Payment Charge Fee Deduction* Payment
- --------------------------------------------------------------------------------
$11,800 $10,000 $540 (5% x $10,800) $25 $11,235
*Applicable to full withdrawals only.
(2) If you own a single Purchase Payment Contract and make a partial
withdrawal of your Individual Account during the third Contract year, assuming
you request a $1,000 Redemption Payment in excess of the 10% free withdrawal
amount:
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AMOUNT AMOUNT WITHDRAWAL REDEMPTION
REQUESTED REDEEMED CHARGE PAYMENT
- --------------------------------------------------------------------------------
$1,000.00 $1,052.63 $52.63 (5%) $1,000.00
In order to make a Redemption Payment of $1,000 in excess of the 10% free
withdrawal amount, the Amount Redeemed must be greater than the Amount Requested
by the amount of the withdrawal charge. We calculate the Amount Redeemed by
dividing (a) the Amount Requested ($1,000) by (b) 1.00 minus the deduction rate
of 5% (or .95), which produces $1,052.63. The value of the Individual Account
will be reduced by this amount.
If the cost of selling the Contracts is greater than the withdrawal charge
we collect, the deficiency will be made up out of our general account assets
which may include profits we derive from the mortality and expense risk fees.
Administrative Charge (Annual Contract Fee)
During the Accumulation Period, Conseco Variable deducts an annual
contract fee on each July 2 from the Individual Account value. If you fully
surrender your Individual Account prior to the commencement of Annuity Payments,
the annual contract fee will be deducted from proceeds paid. However, in no
event will the amount of such fee exceed 2% of the surrender value of the
Individual Account when it is fully surrendered. Conseco Variable also assesses
this annual contract fee at the time the Contract Value is applied to provide
Annuity Payments.
Conseco Variable deducts the administrative fee 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 Purchase Payment Contracts and $25
for single Purchase 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
Conseco Variable makes daily deductions from the Variable Account at an
effective annual rate equal to 1.00% of the value of the assets of the Variable
Account for the mortality and expense risks it assumes. 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 the Variable Account, but are not
affected by Conseco Variable'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 Conseco Variable, Conseco
Variable provides funds from its general funds to make Annuity Payments.
Conversely, if longevity among Annuitants is lower than Conseco Variable
determined, Conseco Variable realizes a gain. This is the mortality expense
risk.
Conseco Variable 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. Conseco Variable
also provides the death benefits under the Contracts. Conseco Variable 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, Conseco Variable will pay
the amount of any shortfall from its general funds. Any amounts paid by Conseco
Variable may consist of, among other things, proceeds derived from mortality and
expense risk charges.
Expense Guarantee Agreement. Pursuant to the Combination (See "Variable
Account"), Conseco Variable 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 Equity (formerly, Common Stock), Fixed Income (formerly, Corporate Bond),
and Money Market Portfolios of Conseco Series Trust whose shares are purchased
by the Variable Account, plus the mortality and expense risk, administrative and
any other charges 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 (the "Expense Guarantee Agreement"). Accordingly,
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
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Conseco Variable will reimburse the appropriate sub-account of the Variable
Account an amount that represents the difference between the investment
management fees charged the Variable Account, Annuity Fund or Account D, as
applicable, prior to the Combination and the amount of such fees charged to
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 the Variable Account are not
expected to be more than before the Combination. Conseco Variable will not,
however, assume extraordinary or non-recurring expenses of 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 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. Conseco Variable, however, may eliminate
the Expense Guarantee Agreement with respect to Contracts issued in the future.
Premium Taxes
We may deduct any premium tax due from Purchase Payments or from
Individual Account values at the annuity commencement date or at any such other
time as Conseco Variable determines in its sole discretion. The current range of
premium taxes in jurisdictions in which we make the Contracts available is from
0% to 3.5%.
Fund Expenses
There are deductions from and expenses paid out of the assets of the
Funds, which are described in the attached Fund prospectuses.
Other Charges
Currently, Conseco Variable does not make a charge against the Variable
Account for its federal income taxes, or provisions for such taxes, that may be
as a result of the Variable Account. Conseco Variable may charge each
sub-account of the Variable Account for its portion of any income tax charged to
the sub-account or its assets.
Under present laws, Conseco Variable 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, Conseco Variable may decide to make
charges for such taxes or provisions for such taxes against the Variable
Account. Any such charges against the Variable Account or its sub-accounts could
have an adverse effect on the investment performance of the sub-accounts.
Death Benefits
In the event the Owner, a Co-Owner, a Joint Owner or the Annuitant dies
before Annuity Payments commence, Conseco Variable will pay the Contract Value
less any outstanding loans to the beneficiary named in the Contract. We will
determine the Contract Value as of the Valuation Period in which we receive
proof of death acceptable to us 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.
If the Contract is owned by a non-individual then the death of the
Annuitant shall be treated as the death of the Contract Owner. Additional
requirements may apply to certain qualified Contracts.
In lieu of a lump-sum payment, the death proceeds may be applied under any
of the annuity options available in the Contract.
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The Annuity Period-Settlement Provisions
Electing the Annuity Period and Form of Annuity
You select the date Annuity Payments are to commence and the annuity
option. You can make changes in such elections at any time up to 30 days prior
to the date Annuity Payments are to commence by sending a notice to Conseco
Variable. If you do not make such elections, we will make payments automatically
beginning on the first day of the month or, with respect to the flexible
Purchase Payment Contracts, coinciding with the Annuitant's reaching age 65
under a lifetime annuity with 120 monthly payments certain. The value of your
Individual Account will be based upon the value in the sub-accounts of the
Variable Account to provide variable Annuity Payments.
You can elect to change (a) the annuity option to any of the annuity
options described below, and (b) the manner in which the value of your
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) by giving written
notice to Conseco Variable at least 30 days prior to the commencement of Annuity
Payments. Once Annuity Payments begin, you cannot elect any changes.
You cannot make an election 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, Conseco Variable has the right to change the frequency
of payments to an interval which will result in Annuity Payments of at least $25
each, except that it will not make payments less frequently than annually.
See "Federal Tax Status" for information on the federal tax treatment of
Annuity Payments or other settlements.
Annuity Options
You may select one of the following annuity options:
First Option - Life Annuity. Under this option, we will make monthly
payments during the lifetime of the Annuitant. The payments will cease 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. Under this option, we will make monthly payments during the lifetime
of the Annuitant with the guarantee that if, at the death of the Annuitant, we
have made payments for less than 120, 180 or 240 months, as elected, we will
continue to make Annuity Payments during the remainder of such period to your
beneficiary. For the single Purchase Payment Contract, if no beneficiary is
designated, Conseco Variable will, in accordance with the provisions of the
Contract, 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. Because this option 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 Purchase Payment Contracts Only).
Under this option, we will make payments monthly, quarterly, semi-annually, 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. Under this option,
we will make monthly payments 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%, 75%, 662/3% or
50% of the amount which would have been payable to the Annuitant (you can select
the rate at the time this option is elected). This option is designed primarily
for couples who require the maximum possible payments during their joint lives
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
================================================================================
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 the participant's
spouse consents in writing (acknowledging the effect of such consent) to such
waiver.
Fifth Option - Payments for a Designated Period. Under this option, we
make payments 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 you elect payments under this option on a
variable basis, payments will vary monthly in accordance with the investment
results of the sub-accounts of the Variable Account. If the Annuitant dies
before we have made the specified number of monthly payments, the present value
of the remaining payments (as set forth in your Contract) will be paid to the
designated beneficiary in one sum, or (provided the remaining 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) the amount will be payable
under either of the first two options (at the beneficiary's election).
To the extent that you select this option on a variable basis, at any time
during the payment period you may elect that the remaining value:
(1) be paid in one sum, or
(2) be applied to effect a lifetime annuity under one of the options
(options 1, 2 or 4) described above, provided that the value is at least
$5,000.
Since you may elect a lifetime annuity at any time, the annuity rate and
expense risks continue during the Annuity Period. Accordingly, we will continue
to make deductions for these risks from the Individual Account values.
Sixth Option - Payments of a Designated Dollar Amount. Under this option,
we will make payments on a monthly, quarterly, semi-annual, or annual basis of a
designated dollar amount until the Individual Account value you 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. If the Annuitant dies before the
value is exhausted, we will pay the remaining value to the beneficiary in one
sum.
If you elect this option on a variable basis, at any time during the
payment period you may elect that the remaining value be applied to provide a
lifetime annuity under one of the first two options described above. The
Contract Owner (or in case the Contract Owner does not make the election, 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 you may elect a lifetime annuity at any time, the annuity rate and
expense risks continue during the payment period. Accordingly, we will continue
to make deductions for these risks from the Individual Account values.
Additional annuity options may be available in the case of certain
contracts purchased prior to 1983, which contracts are no longer offered for
sale.
The SAI contains a further discussion of Annuity Provisions, including how
annuity unit values are calculated.
Transfers During The Annuity Period
You can make transfers during the Annuity Period by giving us written
notice at least 30 days before the due date of the first Annuity Payment for
which the change will apply. We will make transfers 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. The next Annuity Payment, if it were
made at that time, would be the same amount that it would have been without the
transfer. After that, Annuity Payments will reflect changes in the value of the
new annuity units. Conseco Variable reserves the right to limit, upon notice,
the maximum number of transfers you can make to one in any six-month period once
Annuity Payments have begun. In addition, you may not make transfers from a
fixed annuity option.
Conseco Variable reserves the right to defer the transfer privilege at any
time that it is unable to purchase or redeem shares of the Funds. Conseco
Variable also reserves the right to modify or termi-
29
<PAGE>
================================================================================
nate the transfer privilege at any time in accordance with applicable law.
Death Benefit Amount During The Annuity Period
If you selected Annuity Payments based on an annuity option providing
payments for a guaranteed period, and the Annuitant dies during the Annuity
Period, Conseco Variable 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 single
Purchase Payment Contracts, if no beneficiary is designated, Conseco Variable
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
TEN-DAY RIGHT TO REVIEW. The Contracts provide a "10-day free look" (in
some states, the period may be longer). This allows you to revoke the Contract
by returning it to either a Conseco Variable representative or to our Variable
Annuity Department within 10 days (or the period required in your state) of
delivery of the Contract. Conseco Variable deems this period as ending 15 days
after it mails a Contract from its Variable Annuity Department. If you return
the Contract under the terms of the free look provision, Conseco Variable will
refund the Purchase Payments you have made, unless a larger refund is required
by state law.
Ownership. As Owner, all benefits, rights and privileges of the Contract
belong to you, but only while the Annuitant is living. You can change ownership
by proper written request which you must submit with the Contract for
endorsement. We will not recognize a change unless it is endorsed on the
Contract. The change will then be effective on the date you signed the request
subject to any action we took before the Contract was endorsed.
The Contract may not be assigned if it is used in a qualified retirement
plan. Otherwise, you can assign the Contract. No assignment is binding on us
until it is filed at our home office. We assume no responsibility for the
validity of any assignment. The rights of the Owner or any beneficiary are
subject to the rights of any assignee of record.
Assigning a Contract or changing the ownership of a Contract may be a
taxable event.
Federal Tax Status
NOTE: Conseco Variable has prepared the following information on taxes as
a general discussion of the subject. It is not intended as tax advice to any
individual. You should consult your own tax adviser about your own
circumstances. Conseco Variable has included an additional discussion regarding
taxes in the Statement of Additional Information.
Annuity Contracts In General
Annuity contracts are a means of setting aside money for future needs,
usually retirement. Congress recognized how important saving for retirement was
and provided special rules in the Internal Revenue Code (Code) for annuities.
Simply stated, these rules provide that you will not be taxed on the
earnings on the money held in your annuity contract until you take the money
out. This is referred to as tax-deferral. There are different rules as to how
you will be taxed depending on how you take the money out and the type of
Contract--Qualified or Non-Qualified (see following sections).
You, as the Owner, will not be taxed on increases in the value of your
Contract until a distribution occurs --either as a withdrawal or as annuity
payments. When you make a withdrawal you are taxed on the amount of the
withdrawal that is earnings. For annuity payments, different rules apply. A
portion of each annuity payment is treated as a partial return of your purchase
payments and will not be taxed. The remaining portion of the annuity payment
will be treated as ordinary income. How the annuity payment is divided between
taxable and non-taxable portions depends upon the period over which the annuity
payments are expected to be made. Annuity payments received after you have
received all of your Purchase Payments are fully includible in income.
When a non-qualified Contract is owned by a non-natural person (e.g.,
corporation or certain other entities other than a trust holding the Contract as
an agent for a natural person), the Contract will generally not be treated as an
annuity for tax purposes.
Qualified and Non-Qualified Contracts
If you purchase the Contract as an individual and not under any specially
sponsored program, your Contract is referred to as a non-qualified Contract.
30
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
================================================================================
If you purchase the Contract under a specially sponsored program, your
Contract is referred to as a qualified Contract.
Withdrawals - Non-Qualified Contracts
If you make a withdrawal from your Contract, the Code generally treats
such a withdrawal as first coming from earnings and then from your Purchase
Payments. Such withdrawn earnings are includible in income.
The Code also provides that any amount received under an annuity contract
which is included in income may be subject to a penalty. The amount of the
penalty is equal to 10% of the amount that is includible in income. Some
withdrawals will be exempt from the penalty. They include any amounts:
(1) paid on or after you reach age 59 1/2;
(2) paid after you die;
(3) paid if you become totally disabled (as that term is defined in the
Code);
(4) paid in a series of substantially equal payments made annually (or
more frequently) for life or a period not exceeding life expectancy;
(5) paid under an immediate annuity; or
(6) which are allocable to Purchase Payments made prior to August 14,
1982.
The Contract provides that upon the death of the Annuitant prior to the
Maturity Date, Conseco Variable will pay the death proceeds to the beneficiary.
Such payments made when the Annuitant, who is not the Contract Owner, dies do
not qualify for the death of the Contract Owner exception (described in (2)
above) and will be subject to the 10% distribution penalty unless the
beneficiary is 59 1/2 years old or one of the other exceptions to the penalty
applies.
Withdrawals - Qualified Contracts
If you make a withdrawal from your qualified Contract, a portion of the
withdrawal is treated as taxable income. This portion depends on the ratio of
the pre-tax Purchase Payments to the after-tax Purchase Payments in your
Contract. If all of your Purchase Payments were made with pre-tax money then the
full amount of any withdrawal is includible in taxable income. Special rules may
apply to withdrawals from certain types of qualified Contracts. The Code also
provides that any amount received under a qualified Contract which is included
in income may be subject to a penalty. The amount of the penalty is equal to 10%
of the amount that is includible in income. Some withdrawals will be exempt from
the penalty. They include any amounts:
(1) paid on or after you reach age 59 1/2;
(2) paid after you die;
(3) paid if you become totally disabled (as that term is defined in
Code);
(4) paid to you after leaving your employment in a series of
substantially equal payments made annually (or more frequently)
under a lifetime annuity;
(5) paid to you after you have attained age 55 and left your employment;
(6) paid for certain allowable medical expenses (as defined in the
Code);
(7) paid pursuant to a qualified domestic relations order.
We have provided a more complete discussion in the Statement of Additional
Information.
Withdrawals - Tax-Sheltered Annuities
The Code limits the withdrawal of amounts attributable to Purchase
Payments made by owners under a salary reduction agreement. Withdrawals can only
be made when a Contract Owner:
(1) reaches age 59 1/2;
(2) leaves his or her job;
(3) dies;
(4) becomes disabled (as that term is defined in the Code);
(5) in the case of hardship; or
(6) pursuant to a qualified domestic relations order, if otherwise
permitted.
However, in the case of hardship, the owner can only withdraw the Purchase
Payments and not any earnings.
Diversification
The Code provides that the underlying investments for a variable annuity
must satisfy certain diversification requirements in order to be treated as an
annuity contract. Conseco Variable believes that the Funds are being managed so
as to comply with the requirements.
Investor Control
Neither the Code nor the Internal Revenue Service Regulations issued to
date provide guidance as to the circumstances under which you, because of the
degree of control you exercise over the underlying investments, and not Conseco
Variable would be considered the owner of the shares of the portfo-
31
<PAGE>
================================================================================
lios. If you are considered the owner of the shares, it will result in the loss
of the favorable tax treatment for the Contract. It is unknown to what extent
under federal tax law owners are permitted to select portfolios, to make
transfers among the portfolios or the number and type of portfolios owners may
select from without being considered the owner of the shares. If any guidance is
provided which is considered a new position, then the guidance would generally
be applied prospectively. However, if such guidance is considered not to be a
new position, it may be applied retroactively. This would mean that you, as the
owner of the Contract, could be treated as the owner of the portfolios.
Due to the uncertainty in this area, Conseco Variable reserves the right
to modify the Contract as reasonably deemed necessary to maintain favorable tax
treatment.
General Matters
PERFORMANCE INFORMATION. Conseco Variable may advertise performance
information for the Variable Account Investment Options (sub-accounts) 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 10 years, for the period subsequent to the date
each sub-account first became available for investment. We may show additional
total return quotations that do not reflect a withdrawal charge deduction. We
may show performance information by means of schedules, charts or graphs. The
Statement of Additional Information contains a description of the methods we use
to determine yield and total return information for the sub-accounts.
YEAR 2000. Many existing computer programs had been designed and developed
to use only two digits to identify a year in the date field. If not corrected,
these computer programs could cause system failures in the year 2000, with
possible adverse effects on Conseco Variable's operations. In 1996, Conseco,
Inc. initiated a comprehensive corporate-wide program designed to ensure that
its computer programs (including those relating to Conseco Variable) function
properly in the year 2000. A number of Conseco, Inc.'s employees (including
several officers), as well as external consultants and contract programmers, are
working on various year-2000 projects.
Conseco, Inc. also has been working with vendors and other external
business relations to help avoid year-2000 problems related to the software or
services they provide to us. Under the program, our application systems,
operating systems, hardware, networks, electronic data interfaces and
infrastructure devices (such as facsimile machines and telephone systems) are
being analyzed.
Our year-2000 projects are currently on schedule. The year-2000 projects
are being conducted in three phases:
(i) an audit and assessment phase, designed to identify year-2000
issues;
(ii) a modification phase, designed to correct year-2000 issues; and
(iii) a testing phase, designed to test the modifications after they have
been installed.
We have completed the audit and assessment phase for all critical systems
and the second phase of our program is substantially complete. The testing phase
of our program will be conducted throughout 1999. We have provided for
significant contingency time in order to complete any additional modifications
before December 31, 1999.
The year-2000 issues are being addressed in three ways. For some, work is
being done to complete the previously planned conversions of older systems to
the more modern, year-2000 compliant systems already used in other areas. In
other cases, new, more modern systems are being purchased. In the remaining
cases, modifications are being made to existing systems. We currently estimate
that the total expense of our year-2000 projects are not material to Conseco
Variable's financial position.
The impact of year-2000 issues will depend, not only on the corrective
actions we take, but also on the way in which year-2000 issues are addressed by
governmental agencies, business and other third parties
(i) that provide services, utilities or data to Conseco Variable;
(ii) that receive services or data from Conseco Variable; or
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
================================================================================
(iii) whose financial condition or operating capability is important to
Conseco Variable.
We are in the process of identifying risks and assessing potential
year-2000 risks associated with our external business relationships, including
those with agents, financial institutions and the mutual funds underlying the
variable annuity contracts we issue. These procedures are necessarily limited to
matters over which we are able to reasonably exercise control. We have been
informed by our key financial institutions and utilities that they will be
year-2000 compliant in early 1999.
We are also assessing what contingency plans will be needed if any of our
critical systems or those of external business relationships are not year-2000
compliant at year-end 1999. We do not currently anticipate such a situation, but
our consideration of contingency plans will continue to evolve as new
information becomes available.
The failure to correct a material year-2000 problem could result in an
interruption in, or failure of, a number of normal business activities or
operations. Such failures could materially and adversely affect Conseco
Variable's results of operations, liquidity and financial condition. Due to the
general uncertainty inherent in the year-2000 problem, including the uncertainty
of the preparedness of our external business relationships, we are not able to
currently determine whether the consequences of year-2000 failures will have a
material impact on Conseco Variable's results of operations, liquidity and
financial condition. However, we believe our year-2000 compliance efforts will
reduce the likelihood of a material adverse impact.
DISTRIBUTION OF CONTRACTS. Conseco Equity Sales, Inc. (Conseco Equity
Sales), 11815 N. Pennsylvania Street, Carmel, IN 46032, an affiliate of Conseco
Variable, 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. The registered representatives
will also be licensed insurance representatives of Conseco Variable. See the
Statement of Additional Information for more information.
Commissions will be paid to broker-dealers who sell the Contracts.
Broker-dealers may be paid commissions up to 8.50% of Purchase Payments and may
include reimbursement of promotional or distribution expenses associated with
marketing the Contracts. The commission rate paid to the broker-dealer will
depend upon the nature and level of services provided by the broker-dealer.
LEGAL PROCEEDINGS. There are no legal proceedings to which the Variable
Account is a party or to which the assets of the Variable Account are subject.
Neither Conseco Variable nor Conseco Equity Sales is involved in any litigation
that is of material importance in relation to their total assets or that relates
to the Variable Account.
33
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Table of Contents of the Statement of Additional Information
General Information and History
Independent Accountants
Distribution
Voting Rights
Calculation of Yield Quotations
Calculation of Total Return Quotations
Other Performance Data
Federal Tax Status
Annuity Provisions
Financial Statements
................................................................................
(cut along dotted line)
If you would like a free copy of the Statement of Additional Information for
this prospectus, please complete this form, detach, and mail to:
Conseco Variable Insurance Company
Administrative Office
11815 N. Pennsylvania Street
Carmel, Indiana 46032
Gentlemen:
Please send me a free copy of the Statement of Additional Information for
Conseco Variable Annuity Account C at the following address:
Name:_____________________________________________________________________
Mailing Address:__________________________________________________________
__________________________________________________________________________
Sincerely,
__________________________________________________________________________
(Signature)
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CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
================================================================================
Appendix
Condensed Financial Information
The table below provides per unit information about the financial history of the
sub-accounts for the periods indicated.
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
CONSECO SERIES TRUST:
BALANCED (c)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $2.030 $1.740 $1.370 $1.052 $1.068
Accumulation unit value at end of period.................... $2.219 $2.030 $1.740 $1.370 $1.052
Percentage change in accumulation unit value................ 9.27% 16.68% 27.01% 30.19% (1.51)%
Number of accumulation units outstanding at end of period... 7,300,114 6,907,154 5,801,102 5,007,682 3,888,125
- ------------------------------------------------------------------------------------------------------------------------
EQUITY - QUALIFIED (a)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $21.148 $17.933 $12.448 $9.191 $9.069
Accumulation unit value at end of period.................... $24.295 $21.148 $17.933 $12.448 $9.191
Percentage change in accumulation unit value................ 14.88% 17.93% 44.06% 35.44% 1.35%
Number of accumulation units outstanding at end of period... 7,294,849 8,714,598 8,464,009 7,950,068 7,356,167
- ------------------------------------------------------------------------------------------------------------------------
EQUITY - NON-QUALIFIED (a)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $16.740 $14.195 $9.854 $7.275 $7.179
Accumulation unit value at end of period.................... $19.232 $16.740 $14.195 $9.854 $7.275
Percentage change in accumulation unit value................ 14.88% 17.93% 44.06% 35.44% 1.35%
Number of accumulation units outstanding at end of period... 223,506 274,648 283,828 286,775 271,457
- ------------------------------------------------------------------------------------------------------------------------
FIXED INCOME - QUALIFIED (b)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $5.445 $4.990 $4.790 $4.080 $4.224
Accumulation unit value at end of period.................... $5.738 $5.445 $4.990 $4.790 $4.080
Percentage change in accumulation unit value................ 5.39% 9.11% 4.19% 17.38% (3.41)%
Number of accumulation units outstanding at end of period... 2,455,411 2,784,065 2,973,412 3,072,607 2,961,739
- ------------------------------------------------------------------------------------------------------------------------
FIXED INCOME - NON-QUALIFIED (b)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $5.232 $4.795 $4.602 $3.921 $4.059
Accumulation unit value at end of period ................... $5.514 $5.232 $4.795 $4.602 $3.921
Percentage change in accumulation unit value................ 5.39% 9.11% 4.19% 17.38% (3.41)%
Number of accumulation units outstanding at end of period .. 93,115 125,557 136,642 179,684 197,847
- ------------------------------------------------------------------------------------------------------------------------
GOVERNMENT SECURITIES (c)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.261 $1.176 $1.156 $0.995 $1.034
Accumulation unit value at end of period ................... $1.336 $1.261 $1.176 $1.156 $0.995
Percentage change in accumulation unit value................ 6.01% 7.19% 1.72% 16.18% (3.79)%
Number of accumulation units outstanding at end of period .. 702,665 485,631 365,164 422,359 335,451
- ------------------------------------------------------------------------------------------------------------------------
MONEY MARKET (b)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period ............. $2.708 $2.598 $2.496 $2.387 $2.321
Accumulation unit value at end of period.................... $2.821 $2.708 $2.598 $2.496 $2.387
Percentage change in accumulation unit value................ 4.18% 4.22% 4.10% 4.57% 2.85%
Number of accumulation units outstanding at end of period... 1,922,118 1,624,326 1,849,618 1,538,629 1,619,841
- ------------------------------------------------------------------------------------------------------------------------
THE ALGER AMERICAN FUND:
ALGER AMERICAN GROWTH (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.204 $1.000 N/A N/A N/A
Accumulation unit value at end of period ................... $1.765 $1.204 N/A N/A N/A
Percentage change in accumulation unit value................ 46.60% 20.42% N/A N/A N/A
Number of accumulation units outstanding at end of period .. 335,852 120,648 N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
1993 1992 1991 1990 1989
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
CONSECO SERIES TRUST:
BALANCED (c)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.000 N/A N/A N/A N/A
Accumulation unit value at end of period.................... $1.068 N/A N/A N/A N/A
Percentage change in accumulation unit value................ 6.84% N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... 2,257,426 N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
EQUITY - QUALIFIED (a)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $8.492 $8.292 $5.827 $6.313 $4.804
Accumulation unit value at end of period.................... $9.069 $8.492 $8.292 $5.827 $6.313
Percentage change in accumulation unit value................ 6.79% 2.41% 42.30% (7.70)% 31.41%
Number of accumulation units outstanding at end of period... 6,310,119 499,342 4,667,263 4,275,235 4,188,009
- ------------------------------------------------------------------------------------------------------------------------
EQUITY - NON-QUALIFIED (a)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $6.722 $6.564 $4.612 $4.997 $3.803
Accumulation unit value at end of period.................... $7.179 $6.722 $6.564 $4.612 $4.997
Percentage change in accumulation unit value................ 6.79% 2.41% 42.30% (7.70)% 31.41%
Number of accumulation units outstanding at end of period... 252,573 191,299 152,332 125,393 105,484
- ------------------------------------------------------------------------------------------------------------------------
FIXED INCOME - QUALIFIED (b)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $3.768 $3.466 $2.899 $2.743 $2.405
Accumulation unit value at end of period.................... $4.224 $3.768 $3.466 $2.899 $2.743
Percentage change in accumulation unit value................ 12.12% 8.70% 19.57% 5.66% 14.09%
Number of accumulation units outstanding at end of period... 3,003,770 490,084 2,145,672 1,998,622 2,083,583
- ------------------------------------------------------------------------------------------------------------------------
FIXED INCOME - NON-QUALIFIED (b)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $3.620 $3.330 $2.785 $2.636 $2.310
Accumulation unit value at end of period ................... $4.059 $3.620 $3.330 $2.785 $2.636
Percentage change in accumulation unit value................ 12.12% 8.70% 19.57% 5.66% 14.09%
Number of accumulation units outstanding at end of period .. 185,569 123,618 98,273 118,597 140,928
- ------------------------------------------------------------------------------------------------------------------------
GOVERNMENT SECURITIES (c)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.000 N/A N/A N/A N/A
Accumulation unit value at end of period ................... $1.034 N/A N/A N/A N/A
Percentage change in accumulation unit value................ 3.42 N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. 535,607 N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
MONEY MARKET (b)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period ............. $2.280 $2.224 $2.120 $1.978 $1.830
Accumulation unit value at end of period.................... $2.321 $2.280 $2.224 $2.120 $1.978
Percentage change in accumulation unit value................ 1.79% 2.52% 4.89% 7.22% 8.08%
Number of accumulation units outstanding at end of period... 1,465,429 790,486 1,762,019 1,798,156 1,869,049
- ------------------------------------------------------------------------------------------------------------------------
THE ALGER AMERICAN FUND:
ALGER AMERICAN GROWTH (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
</TABLE>
35
<PAGE>
================================================================================
Condensed Financial Information
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
ALGER AMERICAN LEVERAGED ALLCAP (d)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period ............. $1.855 $1.565 $1.411 $1.000 N/A
Accumulation unit value at end of period ................... $2.898 $1.855 $1.565 $1.411 N/A
Percentage change in accumulation unit value................ 56.26% 18.49% 10.92% 41.12% N/A
Number of accumulation units outstanding at end of period... 479,432 388,810 332,180 48,284 N/A
- ------------------------------------------------------------------------------------------------------------------------
ALGER AMERICAN MIDCAP GROWTH (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period ............. $1.199 $1.000 N/A N/A N/A
Accumulation unit value at end of period ................... $1.547 $1.199 N/A N/A N/A
Percentage change in accumulation unit value................ 29.00% 19.91% N/A N/A N/A
Number of accumulation units outstanding at end of period... 85,729 10,680 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
ALGER AMERICAN SMALL CAPITALIZATION (d)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period ............. $1.390 $1.260 $1.222 $1.000 N/A
Accumulation unit value at end of period ................... $1.590 $1.390 $1.260 $1.222 N/A
Percentage change in accumulation unit value................ 14.38% 10.28% 3.14% 22.18% N/A
Number of accumulation units outstanding at end of period... 1,509,932 1,616,358 1,294,236 421,326 N/A
- ------------------------------------------------------------------------------------------------------------------------
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
VP INTERNATIONAL (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.096 $1.000 N/A N/A N/A
Accumulation unit value at end of period ................... $1.289 $1.096 N/A N/A N/A
Percentage change in accumulation unit value ............... 17.58% 9.59% N/A N/A N/A
Number of accumulation units outstanding at end of period .. 105,233 95 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
VP VALUE (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.229 $1.000 N/A N/A N/A
Accumulation unit value at end of period ................... $1.276 $1.229 N/A N/A N/A
Percentage change in accumulation unit value ............... 3.77% 22.93% N/A N/A N/A
Number of accumulation units outstanding at end of period... 111,175 19,126 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
VP INCOME & GROWTH (f)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.000 N/A N/A N/A N/A
Accumulation unit value at end of period ................... $1.085 N/A N/A N/A N/A
Percentage change in accumulation unit value ............... 8.48% N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. 91,593 N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
BERGER INSTITUTIONAL PRODUCTS TRUST:
BERGER IPT -100 (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.136 $1.000 N/A N/A N/A
Accumulation unit value at end of period ................... $1.307 $1.136 N/A N/A N/A
Percentage change in accumulation unit value ............... 15.13% 13.55% N/A N/A N/A
Number of accumulation units outstanding at end of period .. 196,342 42,167 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
BERGER IPT - GROWTH AND INCOME (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.219 $1.000 N/A N/A N/A
Accumulation unit value at end of period ................... $1.509 $1.219 N/A N/A N/A
Percentage change in accumulation unit value ............... 23.79% 21.87% N/A N/A N/A
Number of accumulation units outstanding at end of period .. 115,344 64,326 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
BERGER IPT - SMALL COMPANY GROWTH (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.374 $1.000 N/A N/A N/A
Accumulation unit value at end of period ................... $1.386 $1.374 N/A N/A N/A
Percentage change in accumulation unit value ............... 0.85% 37.38% N/A N/A N/A
Number of accumulation units outstanding at end of period .. 83,064 1,949 N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
1993 1992 1991 1990 1989
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
ALGER AMERICAN LEVERAGED ALLCAP (d)
- -----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period ............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------
ALGER AMERICAN MIDCAP GROWTH (e)
- -----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period ............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------
ALGER AMERICAN SMALL CAPITALIZATION (d)
- -----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period ............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
VP INTERNATIONAL (e)
- -----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------
VP VALUE (e)
- -----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------
VP INCOME & GROWTH (f)
- -----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. 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.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------
BERGER IPT - GROWTH AND INCOME (e)
- -----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------
BERGER IPT - SMALL COMPANY GROWTH (e)
- -----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
</TABLE>
36
<PAGE>
CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
================================================================================
Condensed Financial Information
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
BERGER/BIAM IPT - INTERNATIONAL (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $0.972 $1.000 N/A N/A N/A
Accumulation unit value at end of period ................... $1.118 $0.972 N/A N/A N/A
Percentage change in accumulation unit value ............... 14.97% -2.75% N/A N/A N/A
Number of accumulation units outstanding at end of period .. 0 3,085 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
THE DREYFUS SOCIALLY RESPONSIBLE
GROWTH FUND, INC. (d)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.796 $1.413 $1.178 $ 1.000 N/A
Accumulation unit value at end of period ................... $2.301 $1.796 $1.413 $ 1.178 N/A
Percentage change in accumulation unit value ............... 28.09% 27.11% 20.01% 17.76% N/A
Number of accumulation units outstanding at end of period .. 802,406 359,437 114,173 27,728 N/A
- ------------------------------------------------------------------------------------------------------------------------
DREYFUS STOCK INDEX FUND (d)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.853 $1.402 $1.160 $ 1.000 N/A
Accumulation unit value at end of period ................... $2.352 $1.853 $1.402 $ 1.160 N/A
Percentage change in accumulation unit value ............... 26.94% 32.20% 20.79% 16.03% N/A
Number of accumulation units outstanding at end of period .. 5,996,870 3,025,807 1,395,520 561,967 N/A
- ------------------------------------------------------------------------------------------------------------------------
FEDERATED INSURANCE SERIES
FEDERATED HIGH INCOME BOND II (d)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.364 $1.210 $1.070 $ 1.000 N/A
Accumulation unit value at end of period ................... $1.387 $1.364 $1.210 $ 1.070 N/A
Percentage change in accumulation unit value ............... 1.68% 12.70% 13.17% 6.96% N/A
Number of accumulation units outstanding at end of period .. 402,613 103,898 44,124 1,178 N/A
- ------------------------------------------------------------------------------------------------------------------------
FEDERATED INTERNATIONAL EQUITY II (d)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.201 $1.102 $1.028 $ 1.000 N/A
Accumulation unit value at end of period ................... $1.494 $1.201 $1.102 $ 1.028 N/A
Percentage change in accumulation unit value ............... 24.33% 8.99% 7.23% 2.80% N/A
Number of accumulation units outstanding at end of period .. 153,805 117,785 70,090 9,399 N/A
- ------------------------------------------------------------------------------------------------------------------------
FEDERATED UTILITY II (d)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.558 $1.243 $1.125 $ 1.000 N/A
Accumulation unit value at end of period ................... $1.758 $1.558 $1.243 $ 1.125 N/A
Percentage change in accumulation unit value ............... 12.82% 25.38% 10.45% 12.53% N/A
Number of accumulation units outstanding at end of period .. 428,133 196,753 111,929 53,189 N/A
- ------------------------------------------------------------------------------------------------------------------------
JANUS ASPEN SERIES
AGGRESSIVE GROWTH (d)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.513 $1.357 $1.269 $1.000 N/A
Accumulation unit value at end of period.................... $2.011 $1.513 $1.357 $1.269 N/A
Percentage change in accumulation unit value................ 32.92% 11.54% 6.87% 26.93% N/A
Number of accumulation units outstanding at end of period... 1,484,765 1,145,154 881,491 398,348 N/A
- ------------------------------------------------------------------------------------------------------------------------
GROWTH (d)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.668 $1.372 $1.170 $1.000 N/A
Accumulation unit value at end of period.................... $2.240 $1.668 $1.372 $1.170 N/A
Percentage change in accumulation unit value................ 34.31% 21.53% 17.27% 17.02% N/A
Number of accumulation units outstanding at end of period .. 1,772,621 1,026,609 570,927 144,293 N/A
- ------------------------------------------------------------------------------------------------------------------------
WORLDWIDE GROWTH (d)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.876 $1.551 $1.214 $1.000 N/A
Accumulation unit value at end of period.................... $2.394 $1.876 $1.551 $1.214 N/A
Percentage change in accumulation unit value................ 27.64% 20.94% 27.74% 21.40% N/A
Number of accumulation units outstanding at end of period... 6,332,820 4,929,502 1,845,276 230,889 N/A
</TABLE>
<TABLE>
<CAPTION>
1993 1992 1991 1990 1989
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
BERGER/BIAM IPT - INTERNATIONAL (e)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. 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.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
DREYFUS STOCK INDEX FUND (d)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
FEDERATED INSURANCE SERIES
FEDERATED HIGH INCOME BOND II (d)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
FEDERATED INTERNATIONAL EQUITY II (d)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
FEDERATED UTILITY II (d)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
JANUS ASPEN SERIES
AGGRESSIVE GROWTH (d)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
GROWTH (d)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
WORLDWIDE GROWTH (d)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
</TABLE>
37
<PAGE>
================================================================================
Condensed Financial Information
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
LIMITED MATURITY BOND (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.046 $1.000 N/A N/A N/A
Accumulation unit value at end of period.................... $1.081 $1.046 N/A N/A N/A
Percentage change in accumulation unit value................ 3.35% 4.59% N/A N/A N/A
Number of accumulation units outstanding at end of period... 225,717 0 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
PARTNERS (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.243 $1.000 N/A N/A N/A
Accumulation unit value at end of period.................... $1.283 $1.243 N/A N/A N/A
Percentage change in accumulation unit value................ 3.17% 24.32% N/A N/A N/A
Number of accumulation units outstanding at end of period... 336,371 60,137 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
STRONG OPPORTUNITY FUND II, INC.
OPPORTUNITY FUND II (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.233 $1.000 N/A N/A N/A
Accumulation unit value at end of period.................... $1.386 $1.233 N/A N/A N/A
Percentage change in accumulation unit value................ 12.41% 23.32% N/A N/A N/A
Number of accumulation units outstanding at end of period... 89,350 4,089 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
STRONG VARIABLE INSURANCE FUNDS, INC.:
STRONG MID CAP GROWTH II (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.274 $1.000 N/A N/A N/A
Accumulation unit value at end of period.................... $1.622 $1.274 N/A N/A N/A
Percentage change in accumulation unit value................ 27.40% 27.35% N/A N/A N/A
Number of accumulation units outstanding at end of period... 145,329 3,989 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
VAN ECK WORLDWIDE INSURANCE TRUST
WORLDWIDE BOND (d)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.050 $1.036 $1.021 $1.000 N/A
Accumulation unit value at end of period ................... $1.172 $1.050 $1.036 $1.021 N/A
Percentage change in accumulation unit value ............... 11.63% 1.37% 1.50% 2.05% N/A
Number of accumulation units outstanding at end of period .. 30,830 16,578 23,735 6,030 N/A
- ------------------------------------------------------------------------------------------------------------------------
WORLDWIDE EMERGING MARKETS (e)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $0.808 $1.000 N/A N/A N/A
Accumulation unit value at end of period ................... $0.527 $0.808 N/A N/A N/A
Percentage change in accumulation unit value ............... -34.80% -19.24% N/A N/A N/A
Number of accumulation units outstanding at end of period .. 177,924 99,333 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
WORLDWIDE HARD ASSETS (d)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.228 $1.262 $1.080 $1.000 N/A
Accumulation unit value at end of period ................... $0.840 $1.228 $1.262 $1.080 N/A
Percentage change in accumulation unit value ............... -31.62% -2.66% 16.88% 7.97% N/A
Number of accumulation units outstanding at end of period .. 198,619 $280,960 49,773 27,240 N/A
- ------------------------------------------------------------------------------------------------------------------------
WORLDWIDE REAL ESTATE (f)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.00 N/A N/A N/A N/A
Accumulation unit value at end of period ................... 0.854 N/A N/A N/A N/A
Percentage change in accumulation unit value ............... 14.60% N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. 2,276 N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
DREYFUS VARIABLE INVESTMENT FUND
DISCIPLINED STOCK (f)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.000 N/A N/A N/A N/A
Accumulation unit value at end of period.................... $1.075 N/A N/A N/A N/A
Percentage change in accumulation unit value................ 7.48% N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... 18,002 N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
1993 1992 1991 1990 1989
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
LIMITED MATURITY BOND (e)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
PARTNERS (e)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
STRONG OPPORTUNITY FUND II, INC.
OPPORTUNITY FUND II (e)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
STRONG VARIABLE INSURANCE FUNDS, INC.:
STRONG MID CAP GROWTH II (e)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
VAN ECK WORLDWIDE INSURANCE TRUST
WORLDWIDE BOND (d)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
WORLDWIDE EMERGING MARKETS (e)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
WORLDWIDE HARD ASSETS (d)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
WORLDWIDE REAL ESTATE (f)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period ................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value ............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period .. N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
DREYFUS VARIABLE INVESTMENT FUND
DISCIPLINED STOCK (f)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
</TABLE>
38
<PAGE>
CONSECO VARIABLE INSURANCE COMPANY
1999 Account C
Individual Annuity
================================================================================
Condensed Financial Information
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE (f)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.000 N/A N/A N/A N/A
Accumulation unit value at end of period.................... $0.944 N/A N/A N/A N/A
Percentage change in accumulation unit value............... -5.58% 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
- ------------------------------------------------------------------------------------------------------------------------
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - HIGH YIELD (f)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.000 N/A N/A N/A N/A
Accumulation unit value at end of period.................... $0.953 N/A N/A N/A N/A
Percentage change in accumulation unit value............... -4.69% N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... 22,719 N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
INVESCO VIF - EQUITY INCOME (f)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.000 N/A N/A N/A N/A
Accumulation unit value at end of period.................... $1.032 N/A N/A N/A N/A
Percentage change in accumulation unit value................ 3.20% N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... 34,697 N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
LAZARD RETIREMENT SERIES, INC.
LAZARD RETIREMENT EQUITY (f)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.000 N/A N/A N/A N/A
Accumulation unit value at end of period.................... $1.058 N/A N/A N/A N/A
Percentage change in accumulation unit value................ 5.81% 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
- ------------------------------------------------------------------------------------------------------------------------
LAZARD RETIREMENT SMALL CAP (f)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.000 N/A N/A N/A N/A
Accumulation unit value at end of period.................... $0.858 N/A N/A N/A N/A
Percentage change in accumulation unit value................ -14.23% N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... 4,307 N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
LORD ABBETT SERIES FUND, INC.
GROWTH AND INCOME (f)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.000 N/A N/A N/A N/A
Accumulation unit value at end of period.................... $1.007 N/A N/A N/A N/A
Percentage change in accumulation unit value................ 0.73% N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... 13,870 N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
MITCHELL HUTCHINS SERIES TRUST
GROWTH & INCOME (f)
- ------------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. $1.000 N/A N/A N/A N/A
Accumulation unit value at end of period.................... $0.992 N/A N/A N/A N/A
Percentage change in accumulation unit value............... -0.75% N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... 5,287 N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
1993 1992 1991 1990 1989
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE (f)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
INVESCO VARIABLE INVESTMENT FUNDS, INC.
INVESCO VIF - HIGH YIELD (f)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
INVESCO VIF - EQUITY INCOME (f)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
LAZARD RETIREMENT SERIES, INC.
LAZARD RETIREMENT EQUITY (f)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
LAZARD RETIREMENT SMALL CAP (f)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
LORD ABBETT SERIES FUND, INC.
GROWTH AND INCOME (f)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value................ N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------
MITCHELL HUTCHINS SERIES TRUST
GROWTH & INCOME (f)
- ----------------------------------------------------------------------------------------------------------------------
Accumulation unit value at beginning of period.............. N/A N/A N/A N/A N/A
Accumulation unit value at end of period.................... N/A N/A N/A N/A N/A
Percentage change in accumulation unit value............... N/A N/A N/A N/A N/A
Number of accumulation units outstanding at end of period... 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.
(f) The unit value was $1.000 on the inception date of May 1, 1998.
39
<PAGE>
- --------------------------------------------------------------------------------
[LOGO] (TM)
CONSECO (R)
Step up (TM)
Issued by
Conseco Variable Insurance Company
MaxiFlex
CONSECO VARIABLE INSURANCE COMPANY
11815 N. Pennsylvania Street
Carmel, IN 46032
(C)1999, Conseco Variable Insurance Company
- --------------------------------------------------------------------------------
