As filed with the Securities and Exchange Commission on February 28, 2000
Registration No. 33-6793
811-4721
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------
POST EFFECTIVE AMENDMENT NUMBER 16
TO
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF
SECURITIES UNIT INVESTMENT TRUSTS REGISTERED ON FORM
N-8B-2
---------------
PHOENIX HOME LIFE VARIABLE UNIVERSAL LIFE ACCOUNT
(EXACT NAME OF TRUST)
PHOENIX HOME LIFE MUTUAL INSURANCE COMPANY
(NAME OF DEPOSITOR)
---------------
ONE AMERICAN ROW
HARTFORD, CONNECTICUT 06102-5056
(COMPLETE ADDRESS OF DEPOSITOR'S PRINCIPAL EXECUTIVE OFFICES)
DONA D. YOUNG, ESQUIRE
PHOENIX HOME LIFE MUTUAL INSURANCE COMPANY
ONE AMERICAN ROW
PO BOX 5056
HARTFORD, CONNECTICUT 06102-5056
(NAME AND ADDRESS OF AGENT FOR SERVICE)
---------------
Copy to:
EDWIN L. KERR, ESQ.
PHOENIX HOME LIFE MUTUAL INSURANCE COMPANY
ONE AMERICAN ROW
PO BOX 5053
HARTFORD, CONNECTICUT 06102-5056
---------------
It is proposed that this filing will become effective:
[ ] immediately upon filing pursuant to paragraph (b)
[ ] on .....pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a) (1) or
[X] on May 1, 2000 pursuant to paragraph (a) (1) of Rule 485.
[ ] this Post-Effective Amendment designates a new effective
date for a previously filed post-effective amendment.
Title of securities being offered: Single Premium Variable Life Insurance
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<PAGE>
THE PHOENIX EDGE
VERSION A is not affected by this filing
<PAGE>
---------
VERSION B
---------
PHOENIX EDGE
SPVL
VARIABLE LIFE
INSURANCE POLICY
Issued by
PHOENIX HOME LIFE MUTUAL INSURANCE
COMPANY
FOR POLICYHOLDER SERVICE, PLEASE CONTACT US AT:
[envelope] PHOENIX VARIABLE PRODUCTS MAIL OPERATIONS
PO Box 8027
Boston, MA 02266-8027
[telephone] Tel. 800/541-0171
PROSPECTUS MAY 1, 2000
This prospectus describes a modified single premium variable life insurance
policy. The policy provides lifetime insurance protection for as long as it
remains in force.
You may allocate net premiums and cash value to one or more of the
Subaccounts of the VUL Account and the Guaranteed Interest Account. The assets
of each Subaccount will be used to purchase, at net asset value, shares of a
series in the following designated underlying Funds.
THE PHOENIX EDGE SERIES FUND
- ----------------------------
MANAGED BY PHOENIX INVESTMENT COUNSEL, INC.
[diamond] Phoenix-Aberdeen International Series
[diamond] Phoenix-Engemann Capital Growth Series
[diamond] Phoenix-Engemann Nifty Fifty Series
[diamond] Phoenix-Goodwin Money Market Series
[diamond] Phoenix-Goodwin Multi-Sector Fixed Income Series
[diamond] Phoenix-Hollister Value Equity Series
[diamond] Phoenix-Oakhurst Balanced Series
[diamond] Phoenix-Oakhurst Growth and Income Series
[diamond] Phoenix-Oakhurst Strategic Allocation Series
[diamond] Phoenix-Seneca Mid-Cap Growth Series
[diamond] Phoenix-Seneca Strategic Theme Series
MANAGED BY PHOENIX-ABERDEEN INTERNATIONAL ADVISORS, LLC
[diamond] Phoenix-Aberdeen New Asia Series
MANAGED BY DUFF & PHELPS INVESTMENT MANAGEMENT CO.
[diamond] Phoenix-Duff & Phelps Real Estate Securities Series
MANAGED BY PHOENIX VARIABLE ADVISORS, INC.
[diamond] Phoenix Research Enhanced Index Series
[diamond] Phoenix-Bankers Trust Dow 30 Series
[diamond] Phoenix-Federated U.S. Government Bond Series
[diamond] Phoenix-Janus Equity Income Series
[diamond] Phoenix-Janus Flexible Income Series
[diamond] Phoenix-Janus Growth Series
[diamond] Phoenix-Morgan Stanley Focus Equity Series
[diamond] Phoenix-Schafer Mid-Cap Value Series
BT INSURANCE FUNDS TRUST
- ------------------------
MANAGED BY BANKERS TRUST COMPANY
[diamond] EAFE[registered trademark] Equity Index Fund
FEDERATED INSURANCE SERIES
- --------------------------
MANAGED BY FEDERATED INVESTMENT MANAGEMENT COMPANY
[diamond] Federated Fund for U.S. Government Securities II
[diamond] Federated High Income Bond Fund II
MORGAN STANLEY DEAN WITTER UNIVERSAL FUNDS, INC.
- ------------------------------------------------
MANAGED BY MORGAN STANLEY DEAN WITTER INVESTMENT MANAGEMENT INC.
[diamond] Technology Portfolio
TEMPLETON VARIABLE PRODUCTS SERIES FUND
- ---------------------------------------
MANAGED BY TEMPLETON INVESTMENT COUNSEL, INC.
[diamond] Templeton Asset Allocation Fund -- Class 2
[diamond] Templeton International Fund -- Class 2
[diamond] Templeton Stock Fund -- Class 2
MANAGED BY TEMPLETON ASSET MANAGEMENT, LTD.
[diamond] Templeton Developing Markets Fund -- Class 2
MANAGED BY FRANKLIN MUTUAL ADVISERS, LLC
[diamond] Mutual Shares Investments Fund-- Class 2
WANGER ADVISORS TRUST
- ---------------------
MANAGED BY WANGER ASSET MANAGEMENT, L.P.
[diamond] Wanger Foreign Forty
[diamond] Wanger International Small Cap
[diamond] Wanger Twenty
[diamond] Wanger U.S. Small Cap
1
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This policy will usually be a modified endowment contract. Any loan,
surrender or withdrawal may be subject to income tax and a 10% penalty.
It may not be in your best interest to purchase a policy to replace an
existing life insurance policy or annuity contract. You must understand the
basic features of the proposed policy and your existing coverage before you
decide to replace your present coverage. You must also know if the replacement
may result in any taxes.
The policy is not a deposit or obligation of, underwritten or guaranteed by,
any financial institution or credit union. It is not federally insured or
endorsed by the Federal Deposit Insurance Corporation or any other state or
federal agency. Policy investments are subject to risk, including the
fluctuation of policy values and possible loss of principal invested or premiums
paid.
The Securities and Exchange Commission has not approved or disapproved these
securities, nor passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense.
This prospectus is valid only if accompanied or preceded by current
prospectuses for the Funds. You should read and keep these prospectuses for
future reference.
2
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TABLE OF CONTENTS
<TABLE>
<S> <C>
Heading Page
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PART I--GENERAL POLICY PROVISIONS.............................................................. 6
SUMMARY ................................................................................... 6
Overview............................................................................... 6
Underwriting........................................................................... 6
Charges under the Policy............................................................... 6
Policy Value Charges................................................................... 8
Administrative Charge.............................................................. 8
Cost of Insurance Charge........................................................... 8
State Premium & Deferred Acquisition Cost ("DAC") Tax Charge....................... 8
Mortality and Expense Risk Charge.................................................. 8
Rider Charge....................................................................... 8
Surrender Charges.................................................................. 8
Other Charges.......................................................................... 8
Loan Interest Rate Charged......................................................... 8
Charges for Federal Income Taxes................................................... 8
Fund Charges....................................................................... 8
Reduction in Charges............................................................... 10
PHOENIX LIFE AND MUTUAL INSURANCE COMPANY AND THE VUL ACCOUNT.............................. 10
Phoenix................................................................................ 10
The VUL Account........................................................................ 10
PERFORMANCE HISTORY........................................................................ 10
INVESTMENTS OF THE VUL ACCOUNT............................................................. 10
Participating Investment Funds......................................................... 10
The Phoenix Edge Series Fund....................................................... 10
BT Insurance Funds Trust........................................................... 12
Federated Insurance Series......................................................... 12
Morgan Stanley Dean Witter Universal Funds, Inc.................................... 12
Templeton Variable Products Series Fund............................................ 12
Wanger Advisors Trust.............................................................. 12
Investment Advisors.................................................................... 13
Services of the Advisors............................................................... 14
Reinvestment and Redemption............................................................ 14
Substitution of Investments............................................................ 14
The Guaranteed Interest Account........................................................ 14
PREMIUMS................................................................................... 15
Minimum Premiums....................................................................... 15
Allocation of Issue Premium............................................................ 15
Free Look Period....................................................................... 15
Transfers.............................................................................. 15
Optional Programs and Additional Benefits.............................................. 16
Dollar Cost Averaging Program...................................................... 16
Automatic Asset Rebalancing............................................................ 16
Additional Rider Benefits.......................................................... 16
Living Benefits.................................................................... 17
VUL Account Valuation Procedures....................................................... 17
Valuation Date..................................................................... 17
Valuation Period................................................................... 17
Determination of Unit Values....................................................... 17
Net Investment Factor.............................................................. 17
Death Benefit.......................................................................... 17
General............................................................................ 17
</TABLE>
3
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<TABLE>
<S> <C>
Surrenders............................................................................. 17
General............................................................................ 17
Free Withdrawals................................................................... 18
Full Surrenders.................................................................... 18
Partial Surrenders................................................................. 18
Partial Surrender: Effect on Death Benefit......................................... 18
Policy Loans........................................................................... 18
Source of Loan..................................................................... 18
Interest Charged on Loans.......................................................... 18
Interest Credited to the Loan Account and Preferred Loans.......................... 18
Repayment.......................................................................... 19
Effect of Loan..................................................................... 19
Lapse.................................................................................. 19
PART II--ADDITIONAL POLICY PROVISIONS.......................................................... 20
Postponement of Payments............................................................... 20
Payment by Check....................................................................... 20
The Contract........................................................................... 20
Suicide................................................................................ 20
Incontestability....................................................................... 20
Change of Owner or Beneficiary......................................................... 20
Assignment............................................................................. 20
Misstatement of Age or Sex............................................................. 20
Surplus................................................................................ 20
PAYMENT OF PROCEEDS........................................................................ 20
Surrender and Death Benefit Proceeds................................................... 20
Payment Options........................................................................ 21
Option 1--Lump sum................................................................. 21
Option 2--Left to earn interest.................................................... 21
Option 3--Payment for a specific period............................................ 21
Option 4--Life annuity with specified period certain............................... 21
Option 5--Life annuity............................................................. 21
Option 6--Payments of a specified amount........................................... 21
Option 7--Joint survivorship annuity with 10-year period certain................... 21
PART III--OTHER IMPORTANT INFORMATION.......................................................... 22
FEDERAL TAX CONSIDERATIONS................................................................. 22
Introduction........................................................................... 22
Phoenix's Tax Status................................................................... 22
Policy Benefits........................................................................ 22
Death Benefit Proceeds............................................................. 22
Full Surrender..................................................................... 22
Partial Surrender.................................................................. 22
Loans.............................................................................. 22
Business-Owned Policies................................................................ 23
Modified Endowment Contracts........................................................... 23
General............................................................................ 23
Reduction in Benefits During the First 7 Years..................................... 23
Distributions Affected............................................................. 23
Penalty Tax........................................................................ 23
Material Change Rules.............................................................. 23
Serial Purchase of Modified Endowment Contracts.................................... 24
Limitations on Unreasonable Mortality and Expense Charges.............................. 24
Diversification Standards.............................................................. 24
Change of Ownership or Insured or Assignment........................................... 24
Other Taxes............................................................................ 24
VOTING RIGHTS ............................................................................. 24
Phoenix................................................................................ 25
</TABLE>
4
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<TABLE>
<S> <C>
THE DIRECTORS AND EXECUTIVE OFFICERS OF PHOENIX............................................ 25
SAFEKEEPING OF THE VUL ACCOUNT'S ASSETS ................................................... 26
SALES OF POLICIES ......................................................................... 26
STATE REGULATION .......................................................................... 27
REPORTS ................................................................................... 27
LEGAL PROCEEDINGS ......................................................................... 27
LEGAL MATTERS ............................................................................. 27
REGISTRATION STATEMENT .................................................................... 27
FINANCIAL STATEMENTS ...................................................................... 27
APPENDIX A GLOSSARY OF SPECIAL TERMS....................................................... 30
APPENDIX B PERFORMANCE HISTORY............................................................. 31
APPENDIX C ILLUSTRATIONS OF DEATH BENEFITS, POLICY VALUES ("ACCOUNT VALUES") AND CASH
SURRENDER VALUES....................................................................... 35
</TABLE>
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH
SUCH OFFERING MAY NOT BE LAWFULLY MADE. NO DEALER, SALESPERSON OR OTHER PERSON
IS AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS IN CONNECTION
WITH THIS OFFERING OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS, AND IF GIVEN
OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON.
5
<PAGE>
PART I--GENERAL POLICY PROVISIONS
- --------------------------------------------------------------------------------
SUMMARY
- --------------------------------------------------------------------------------
This is a summary that describes the general provisions of the policy.
Certain provisions of the policy described in this prospectus may differ in
a particular state because of specific state requirements.
Throughout the prospectus, Phoenix Home Life Mutual Insurance Company is
referred to as Phoenix, PHL, we, us or our and the policyholder is referred to
as you or your.
We define the following terms in the Glossary of Appendix A:
ATTAINED AGE PAYMENT DATE
BENEFICIARY POLICY ANNIVERSARY
CASH SURRENDER VALUE POLICY DATE
DEBT POLICY VALUE
FUNDS POLICY YEAR
GENERAL ACCOUNT SERIES
ISSUE PREMIUM SUBACCOUNTS
LOAN ACCOUNT VALUATION DATE
MONTHLY CALCULATION DAY VALUATION PERIOD
NET ASSET VALUE VUL ACCOUNT (ACCOUNT)
If there is ever a difference between the provisions within this prospectus
and the provisions of the policy, the policy provisions will prevail.
OVERVIEW
The policy is available on an individual basis and provides a death benefit
that is generally free of federal income tax. Also, any growth in your policy
value is tax deferred.
Purchase of a policy may be appropriate if you want to provide for a death
benefit or to help meet long term financial needs. If you plan to withdraw money
from the policy on a short term basis it may not be a suitable purchase for you.
As a modified single premium variable life insurance policy, you will have
limited ability to make additional premium payments beyond the initial payment.
Also, most modified single premium life insurance policies are considered
modified endowment contracts meaning that any surrender, withdrawal, loan,
pledge or assignment are classified as a distribution, and may be subject to
income tax and a 10% penalty.
As a variable contract, your policy value is contingent upon the performance
of the investment options you select and as life insurance, offers a death
benefit to the beneficiary you select.
Policies are issued as either Standard (smoker) or Advantage (nonsmoker)
classification. The age of the insured at the time of issue generally must be
between the ages of 18 to 85 as of his or her last birthday.
The minimum premium is $10,000.
You can purchase a policy to insure the life of another person provided that
you have an insurable interest in that life and the prospective Insured
consents.
UNDERWRITING
Underwriting is generally on a simplified basis, meaning that if you answer
a series of questions favorably, and if your age and single premium fall within
limits, then the policy will be issued. No additional medical information or
tests will be necessary.
In some instances, depending on how you answer these questions, you may be
subject to additional underwriting.
CHARGES UNDER THE POLICY
We deduct certain charges from your policy to compensate us for:
1. our expenses in selling the policy;
2. underwriting and issuing the policy;
3. premium and federal taxes incurred on premiums received;
4. providing insurance benefits under your policy; and
5. assuming certain risks in connection with the policy.
These charges are summarized in the following chart.
6
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CHARGES UNDER THE POLICY
<TABLE>
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<CAPTION>
Charges Current Amount of Deduction When Charge is Deducted
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
DEDUCTIONS FROM NONE NOT APPLICABLE
PREMIUMS
- ----------------------- ------------------------- --------------------------------------- ---------------------------------------
POLICY VALUE CHARGES ADMINISTRATIVE CHARGE* Policies with policy value of less Monthly
than $100,000: Greater of $60 or
0.30% of policy value annually
Policies with policy value of
$100,000 or more: 0.15% of policy
value
------------------------- --------------------------------------- ---------------------------------------
MAXIMUM COST OF A per thousand rate multiplied by the Monthly
INSURANCE CHARGE amount at risk each month. This
charge varies by the Insured's
issue age, policy duration,
gender and underwriting class.
------------------------- --------------------------------------- ---------------------------------------
TAX CHARGE 0.40% annually in policy years 1-10 Monthly
0.00% annually in policy years 11+
------------------------- --------------------------------------- ---------------------------------------
SURRENDER CHARGES The surrender charge is equal to the Upon full or partial surrender of the
following percentages of the single policy.
premium paid:
Year 1 2 3 4 5 6 7 8 9 10+
% 9 8 7 6 5 4 3 2 1 0
------------------------- --------------------------------------- ---------------------------------------
MORTALITY AND EXPENSE 0.80% annually in policy years 1-10 Monthly
RISK CHARGE*
0.30% annually in policy years 11+
- ----------------------- ------------------------- --------------------------------------- ---------------------------------------
OTHER CHARGES FUND CHARGES SEE FUND CHARGE TABLE SEE FUND PROSPECTUS
------------------------- --------------------------------------- ---------------------------------------
TRANSFERS BETWEEN None Not Applicable
SUBACCOUNTS
------------------------- --------------------------------------- ---------------------------------------
LOAN INTEREST RATE 6.00% annually in policy year 1 On policy anniversary date or on
CHARGED surrender of the policy.
8.00% annually in policy years 2 +
- ----------------------- ------------------------- --------------------------------------- ---------------------------------------
</TABLE>
- -----------------------------
* Charge applies to all accounts (subaccounts and GIA) with the exception of the
Loan Account.
7
<PAGE>
POLICY VALUE CHARGES
On each monthly calculation day, we deduct the following charges from your
policy value:
1. administrative charge
2. cost of insurance charge
3. state premium and DAC tax
4. mortality and expense risk charge
5. a charge for the cost of riders if applicable
Unless otherwise noted, the amount deducted is allocated among the
Subaccounts, the Guaranteed Interest Account and the Loan Account, based on an
allocation schedule specified by you. You initially select this schedule in your
application.
1. ADMINISTRATIVE CHARGE
We assess a monthly charge for the expenses we incur in administering the
policy. This charge reimburses us for the cost of daily administration of
services such as billing and collections, monthly processing, updating daily
values and communicating with policyholders.
This charge is not assessed against assets held in the Loan Account.
2. COST OF INSURANCE CHARGE
We deduct a charge to cover the cost of insurance coverage on each monthly
calculation day. The maximum charge is based on
[diamond] Insured's gender;
[diamond] Insured's age at issue;
[diamond] policy year in which we make the deduction;
[diamond] Insured's tobacco use classification.
To determine the maximum monthly cost of insurance, we multiply the
appropriate cost of insurance rate as shown in your policy, by the difference
between your policy's death benefit and the policy value. Any change in the cost
of insurance rates will apply to all persons of the same sex, insurance age and
risk class whose policies have been in force for the same length of time.
3. STATE PREMIUM & DEFERRED ACQUISITION COST ("DAC") TAX CHARGE
States assess premium taxes at various rates. We deduct a charge to cover
the cost of the premium taxes assessed against us by the state.
The DAC tax is associated with our federal tax liability under Internal
Revenue Code Section 848. We pay the tax up front and recoup the cost over the
first 10 policy years.
4. MORTALITY AND EXPENSE RISK CHARGE
We charge the Subaccounts and the GIA for the mortality and expense risks we
assume. This charge is deducted from the value of each Subaccount's assets
attributable to the policies.
The mortality risk we assume is that the group of lives we insure under our
policies may, on average, live for a shorter period of time than we estimated.
The expense risk we assume is that our cost of issuing and administering the
policies may be more than we estimated. If all the money we collect from this
charge is not required to cover the cost of death benefits and other expenses,
it will be a gain to us. If the money we collect is not enough to cover our
costs, we will still provide for death benefits and expenses.
This charge is not assessed against assets held in the Loan Account.
5. RIDER CHARGE
We will deduct any applicable monthly rider charges for any additional
benefit provided to you by rider.
SURRENDER CHARGES
A deduction for surrender charges for this policy may be taken from proceeds
of partial withdrawals from, or complete surrender of the policy. The amount (if
any) of a surrender charge depends on whether your payment held under the policy
for a certain period of time. The surrender charge schedule is shown in the
chart below.
Once each policy year, you may withdraw an amount equal to the greater of
your penalty free earnings on the policy and 10% of the single premium without
the imposition of a surrender charge. (See "Surrenders--Free Withdrawals" for
more detail.) The deduction for surrender charges is expressed as a percentage
of the single premium in excess of the free allowable amount, is as follows:
--------------------------------------------------------------
Percentage 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
--------------------------------------------------------------
--------------------------------------------------------------
Policy Year 1 2 3 4 5 6 7 8 9 10+
--------------------------------------------------------------
OTHER CHARGES
LOAN INTEREST RATE CHARGED
This charge reimburses us for expenses we incur in administering your loan.
This rate varies by policy year.
CHARGES FOR FEDERAL INCOME TAXES
We currently do not charge the VUL Account for federal income taxes
attributable to it. In the future, we may charge to cover these taxes or any
other tax liability of the VUL Account.
FUND CHARGES
As compensation for investment management services, the Advisors are
entitled to a fee, payable monthly and based on an annual percentage of the
average daily net asset values of each fund Series. Please refer to the
following chart for a listing of fund charges including the investment
management fee.
8
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ANNUAL FUND EXPENSES FOR THE YEAR ENDING DECEMBER 31, 1999 AFTER REIMBURSEMENT
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
INVESTMENT OTHER OPERATING TOTAL ANNUAL
SERIES MANAGEMENT FEE RULE 12B-1 FEES EXPENSES FUND EXPENSES(1)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Phoenix Research Enhanced Index
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Aberdeen International
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Aberdeen New Asia
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Bankers Trust Dow 30
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Duff & Phelps Real Estate Securities
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Engemann Capital Growth
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Engemann Nifty Fifty
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Federated U.S. Government Bond
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Goodwin Money Market
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Goodwin Multi-Sector Fixed Income
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Hollister Value Equity TO BE
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Janus Equity Income FILED BY
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Janus Flexible Income AMENDMENT
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Janus Growth
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Morgan Stanley Focus Equity
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Oakhurst Balanced
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Oakhurst Growth and Income
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Oakhurst Strategic Allocation
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Schafer Mid-Cap Value
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Seneca Mid-Cap Growth
- ---------------------------------------------------------------------------------------------------------------------------------
Phoenix-Seneca Strategic Theme
- ---------------------------------------------------------------------------------------------------------------------------------
EAFE[registered trademark] Equity Index
- ---------------------------------------------------------------------------------------------------------------------------------
Federated High Income Bond
- ---------------------------------------------------------------------------------------------------------------------------------
Federated Fund for U.S. Government Securities
- ---------------------------------------------------------------------------------------------------------------------------------
Technology Portfolio
- ---------------------------------------------------------------------------------------------------------------------------------
Mutual Shares Investments
- ---------------------------------------------------------------------------------------------------------------------------------
Templeton Asset Allocation
- ---------------------------------------------------------------------------------------------------------------------------------
Templeton Developing Markets
- ---------------------------------------------------------------------------------------------------------------------------------
Templeton International
- ---------------------------------------------------------------------------------------------------------------------------------
Templeton Stock
- ---------------------------------------------------------------------------------------------------------------------------------
Wanger Foreign Forty
- ---------------------------------------------------------------------------------------------------------------------------------
Wanger International Small Cap
- ---------------------------------------------------------------------------------------------------------------------------------
Wanger Twenty
- ---------------------------------------------------------------------------------------------------------------------------------
Wanger U.S. Small Cap
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
9
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REDUCTION IN CHARGES
The policy is available for purchase by individuals, and groups. We may
reduce or eliminate the mortality and expense risk charge, monthly
administrative charge, monthly cost of insurance charges or other charges
normally assessed where it is expected that the size or nature of such policy or
policies will result in savings of sales, underwriting, administrative or other
costs.
Eligibility for the amount of these reductions will be determined by a
number of factors including:
[bullet] the number of insureds;
[bullet] the total premium expected to be paid;
[bullet] the total assets under management for the policyowner;
[bullet] the nature of the relationship among individual insureds;
[bullet] the purpose for which the policies are being purchased;
[bullet] whether there is a preexisting relationship with us, such as being
an employee of the PHL or its affiliates and their spouses; or to
employees or agents who retire from PHL or its affiliates or
Phoenix Equity Planning Corporation ("PEPCO"), or its affiliates or
to registered representatives of the principal underwriter and
registered representatives of broker dealers with whom PEPCO has
selling agreements;
[bullet] internal transfers from other policies or contracts issued by the
Company or an affiliate, or making transfers of amounts held under
qualified plans sponsored by the Company or an affiliate; and
[bullet] other circumstances which in our opinion are rationally related to
the expected reduction in expenses.
Any variations in the charge structure will be determined in a uniform
manner reflecting differences in costs of services and not unfairly
discriminatory to policyholders.
PHOENIX HOME LIFE MUTUAL INSURANCE COMPANY AND THE VUL ACCOUNT
- --------------------------------------------------------------------------------
PHOENIX
We are a mutual life insurance company originally chartered in Connecticut
in 1851 and redomiciled to New York in 1992. Our executive office is at One
American Row, Hartford, Connecticut 06102-5056 and our main administrative
office is at 100 Bright Meadow Boulevard, Enfield, Connecticut 06083-1900. Our
New York principal office is at 10 Krey Boulevard, East Greenbush, New York
12144. We sell insurance policies and annuity contracts through our own field
force of full-time agents and through brokers.
THE VUL ACCOUNT
The VUL Account is a separate account of Phoenix, established on June 17,
1985 and governed under the laws of New York. It is registered as a unit
investment trust under the Investment Company Act of 1940 (the "1940 Act"), as
amended, and meets the definition of a "separate account" under that Act. This
registration does not involve supervision of the management of the VUL Account
or Phoenix by the SEC.
The VUL Account is divided into Subaccounts each of which is available for
allocation of policy value. Each Subaccount will invest solely in shares of a
specific series of a mutual fund. In the future, we may establish additional
Subaccounts which will be made available to existing policyowners to the extent
and on a basis decided by us. See "Investments of the VUL Account--Participating
Investment Funds."
We do not guarantee the investment performance of the VUL Account or any of
its Subaccounts. Contributions to the overall policy value allocated to the VUL
Account depend on the chosen Fund's investment performance. Thus, you bear the
full investment risk for all monies invested in the VUL Account.
The VUL Account is part of the general business of Phoenix, but the gains or
losses of the VUL Account belong solely to the VUL Account. The gains or losses
of any other business we may conduct do not affect the VUL Account. Under New
York law, the assets of the VUL Account may not be taken to pay liabilities
arising out of any other business we may conduct. Nevertheless, all obligations
arising under the policy are general corporate obligations of Phoenix.
PERFORMANCE HISTORY
- --------------------------------------------------------------------------------
We may include the performance history of the VUL Account Subaccounts in
advertisements, sales literature or reports. Performance information about each
Subaccount is based on past performance only and is not an indication of future
performance. See "Appendix B" for more information.
INVESTMENTS OF THE VUL ACCOUNT
- --------------------------------------------------------------------------------
PARTICIPATING INVESTMENT FUNDS
THE PHOENIX EDGE SERIES FUND
Certain Subaccounts invest in corresponding series of The Phoenix Edge
Series Fund. The following series are currently available:
PHOENIX RESEARCH ENHANCED INDEX SERIES: The investment objective of the
series is high total return. The Phoenix Research Enhanced Index Series invests
in a broadly diversified portfolio of equity securities of large and medium
capitalization companies within market sectors reflected in the S&P 500. It
invests in a portfolio of
10
<PAGE>
undervalued common stocks and other equity securities which appear to offer
growth potential and an overall volatility of return similar to that of the S&P
500.
PHOENIX-ABERDEEN INTERNATIONAL SERIES: The investment objective of the
series is a high total return consistent with reasonable risk. The
Phoenix-Aberdeen International Series invests primarily in an internationally
diversified portfolio of equity securities. It intends to reduce its risk by
engaging in hedging transactions involving options, futures contracts and
foreign currency transactions. The series provides a means for investors to
invest a portion of their assets outside the United States.
PHOENIX-ABERDEEN NEW ASIA SERIES: The investment objective of the series is
long-term capital appreciation. The Phoenix-Aberdeen New Asia Series invests
primarily in a diversified portfolio of equity securities of issuers organized
and principally operating in Asia, excluding Japan.
PHOENIX-BANKERS TRUST DOW 30 SERIES: The series seeks to track the total
return of the Dow Jones Industrial Average[service mark] (the "DJIA[service
mark]") before fund expenses.
PHOENIX-DUFF & PHELPS REAL ESTATE SECURITIES SERIES: The investment
objective of the series is capital appreciation and income with approximately
equal emphasis. Under normal circumstances, the Phoenix-Duff & Phelps Real
Estate Securities Series invests in marketable securities of publicly traded
real estate investment trusts (REITs) and companies that operate, develop,
manage and/or invest in real estate located primarily in the United States.
PHOENIX-ENGEMANN CAPITAL GROWTH SERIES: The investment objective of the
series is to achieve intermediate and long-term growth of capital, with income
as a secondary consideration. The Phoenix-Engemann Capital Growth Series invests
principally in common stocks of corporations believed by management to offer
growth potential.
PHOENIX-ENGEMANN NIFTY FIFTY SERIES: The investment objective of the series
is long-term capital appreciation. The Phoenix-Engemann Nifty Fifty Series
invests in approximately 50 different securities which offer the best potential
for long-term growth of capital. At least 75% of the series' assets are invested
in common stocks of high quality growth companies. The remaining portion is
invested in common stocks of small corporations with rapidly growing earnings
per share or common stocks believed to be undervalued.
PHOENIX-FEDERATED U.S. GOVERNMENT BOND SERIES: The investment objective of
the series is to maximize total return by investing primarily in debt
obligations of the U.S. Government, its agencies and instrumentalities.
PHOENIX-GOODWIN MONEY MARKET SERIES: The investment objective of the series
is maximum current income consistent with capital preservation and liquidity.
The Phoenix-Goodwin Money Market Series invests exclusively in high quality
money market instruments.
PHOENIX-GOODWIN MULTI-SECTOR FIXED INCOME SERIES: The investment objective
of the series is long-term total return. The Phoenix-Goodwin Multi-Sector Fixed
Income Series seeks to achieve its investment objective by investing in a
diversified portfolio of high yield and high quality fixed income securities.
PHOENIX-HOLLISTER VALUE EQUITY SERIES: The primary investment objective of
the series is long-term capital appreciation, with a secondary investment
objective of current income. The Phoenix-Hollister Value Equity Series seeks to
achieve its objective by investing in a diversified portfolio of common stocks
that meet certain quantitative standards that indicate above average financial
soundness and intrinsic value relative to price.
PHOENIX-JANUS EQUITY INCOME SERIES: The investment objective of the series
is to seek current income and long-term growth of capital.
PHOENIX-JANUS FLEXIBLE INCOME SERIES: The investment objective of the series
is to seek to obtain maximum total return, consistent with preservation of
capital.
PHOENIX-JANUS GROWTH SERIES: The investment objective of the series is to
seek long-term growth of capital, in a manner consistent with the preservation
of capital.
PHOENIX-MORGAN STANLEY FOCUS EQUITY SERIES: The investment objective of the
series is to seek capital appreciation by investing primarily in equity
securities.
PHOENIX-OAKHURST BALANCED SERIES: The investment objective of the series is
to seek reasonable income, long-term capital growth and conservation of capital.
The Phoenix-Oakhurst Balanced Series invests based on combined considerations of
risk, income, capital enhancement and protection of capital value.
PHOENIX-OAKHURST GROWTH AND INCOME SERIES: The investment objective of the
series is dividend growth, current income and capital appreciation by investing
in common stocks. The Phoenix-Oakhurst Growth and Income Series seeks to achieve
its objective by selecting securities primarily from equity securities of the
1,000 largest companies traded in the United States, ranked by market
capitalization.
PHOENIX-OAKHURST STRATEGIC ALLOCATION SERIES: The investment objective of
the series is to realize as high a level of total return over an extended period
of time as is considered consistent with prudent investment risk. The
Phoenix-Oakhurst Strategic Allocation Series invests in stocks, bonds and money
market instruments in accordance with the investment advisor's appraisal of
investments most likely to achieve the highest total return.
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PHOENIX-SCHAFER MID-CAP VALUE SERIES: The primary investment objective of
the series is long-term capital appreciation, with current income as the
secondary investment objective. The Phoenix-Schafer Mid-Cap Value Series invests
in common stocks of established companies having a strong financial position and
a low stock market valuation at the time of purchase which are believed to offer
the possibility of increase in value.
PHOENIX-SENECA MID-CAP GROWTH SERIES: The investment objective of the series
is capital appreciation primarily through investments in equity securities of
companies that have the potential for above average market appreciation. The
Phoenix-Seneca Mid-Cap Growth Series seeks to outperform the Standard & Poor's
Mid-Cap 400 Index.
PHOENIX-SENECA STRATEGIC THEME SERIES: The investment objective of the
series is to seek long-term appreciation of capital by identifying securities
benefiting from long-term trends present in the United States and abroad. The
Phoenix-Seneca Strategic Theme Series invests primarily in common stocks
believed to have substantial potential for capital growth.
BT INSURANCE FUNDS TRUST
A certain Subaccount invests in a corresponding series of the BT Insurance
Funds Trust. The following series is currently available:
EAFE[registered trademark] EQUITY INDEX FUND: The series seeks to match the
performance of the Morgan Stanley Capital International EAFE[registered
trademark] Index ("EAFE[registered trademark] Index"), which emphasizes major
stock market performance of companies in Europe, Australia and the Far East. The
series invests in a statistically selected sample of the securities found in the
EAFE[registered trademark] Index.
FEDERATED INSURANCE SERIES
Certain Subaccounts invest in corresponding series of the Federated
Insurance Series. The following series are currently available:
FEDERATED FUND FOR U.S. GOVERNMENT SECURITIES II: The investment objective
of the series is current income. The Federated Fund for U.S. Government
Securities II invests primarily in U.S. government securities, including
mortgage-backed securities issued by U.S. government agencies.
FEDERATED HIGH INCOME BOND FUND II: The investment objective of the series
is high current income. The Federated High Income Bond Fund II invests primarily
in a diversified portfolio of high-yield, lower-rated corporate bonds.
MORGAN STANLEY DEAN WITTER UNIVERSAL FUNDS, INC.
A certain subaccount invests in a corresponding series of the Morgan Stanley
Dean Witter Universal Funds, Inc. The following series is currently available:
TECHNOLOGY PORTFOLIO: The investment objective of the series is to seek
long-term capital appreciation by investing primarily in equity securities of
companies that the investment advisor expects to benefit from their involvement
in technology and technology-related industries.
TEMPLETON VARIABLE PRODUCTS SERIES FUND
Certain Subaccounts invest in Class 2 shares of a corresponding series of
the Templeton Variable Products Series Fund. The following series are currently
available:
MUTUAL SHARES INVESTMENT FUND: The primary investment objective of the
series is capital appreciation with income as a secondary objective. The Mutual
Shares Investments Fund invests in domestic equity securities that the manager
believes are significantly undervalued.
TEMPLETON ASSET ALLOCATION FUND: The investment objective of the series is a
high level of total return. The Templeton Asset Allocation Fund invests in
stocks of companies of any nation, bonds of companies and governments of any
nation, and in money market instruments. Changes in the asset mix will be made
in an attempt to capitalize on total return potential produced by changing
economic conditions throughout the world, including emerging market countries.
TEMPLETON DEVELOPING MARKETS FUND: The investment objective of the series is
long-term capital growth. The Templeton Developing Markets Fund invests
primarily in emerging market equity securities.
TEMPLETON INTERNATIONAL FUND: The investment objective of the series is
long-term capital growth. The Templeton International Fund invests primarily in
stocks of companies located outside the United States, including emerging
markets.
TEMPLETON STOCK FUND: The investment objective of the series is long-term
capital growth. The Templeton Stock Fund invests primarily in common stocks
issued by companies in various nations throughout the world, including the U.S.
and emerging markets.
WANGER ADVISORS TRUST
Certain Subaccounts invest in corresponding series of the Wanger Advisors
Trust. The following series are currently available:
WANGER FOREIGN FORTY: The investment objective of the series is long-term
capital growth. The Wanger Foreign Forty Series invests primarily in equity
securities of foreign companies with market capitalization of $1 billion to $10
billion and focuses its investments in 40 to 60 companies in the developed
markets.
WANGER INTERNATIONAL SMALL CAP: The investment objective of the series is
long-term capital growth. The Wanger International Small Cap Series invests
primarily in securities of non-U.S. companies with total common stock market
capitalization of less than $1 billion.
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WANGER TWENTY: The investment objective of the series is long-term capital
growth. The Wanger Twenty Series invests primarily in the stocks of U.S.
companies with market capitalization of $1 billion to $10 billion and ordinarily
focuses its investments in 20 to 25 U.S. companies.
WANGER U.S. SMALL CAP: The investment objective of the series is long-term
capital growth. The Wanger U.S. Small Cap Series invests primarily in securities
of U.S. companies with total common stock market capitalization of less than $1
billion.
Each series will be subject to market fluctuations and the risks that come
with the ownership of any security. There can be no assurance that any series
will achieve its stated investment objective.
In addition to being sold to the Account, shares of all of the funds may be
sold to other separate accounts of PHL or its affiliates. Shares of certain
funds may also be sold to the separate accounts of other insurance companies.
It is possible that in the future there may be no advantage for variable
life insurance separate accounts and variable annuity separate accounts to
invest in the funds simultaneously. Although neither PHL nor the funds' trustees
currently foresee any such disadvantages either to variable life insurance
policyowners or to variable annuity contractowners, the funds' trustees intend
to monitor events in order to identify any material conflicts between variable
life insurance policyowners and variable annuity contractowners and to determine
what action, if any, should be taken in response to such conflicts. Material
conflicts could, for example, result from:
[diamond] changes in state insurance laws;
[diamond] changes in federal income tax laws;
[diamond] changes in the investment management of any portfolio of the fund(s);
or
[diamond] differences in voting instructions between those given by variable
life insurance policyowners and those given by variable annuity
contractowners.
We will remedy such material conflicts at our expense including, if
necessary, segregating the assets underlying the variable life insurance
policies and the variable annuity contracts and establishing a new registered
investment company.
INVESTMENT ADVISORS
Phoenix Investment Counsel, Inc. ("PIC") is an investment advisor to the
following series in The Phoenix Edge Series Fund:
[bullet] Phoenix-Goodwin Money Market Series
[bullet] Phoenix-Goodwin Multi-Sector Fixed Income Series
[bullet] Phoenix-Hollister Value Equity Series
[bullet] Phoenix-Oakhurst Balanced Series
[bullet] Phoenix-Oakhurst Growth and Income Series
[bullet] Phoenix-Oakhurst Strategic Allocation Series
Based on subadvisory agreements with the fund, PIC as an investment advisor
delegates certain investment decisions and research functions to subadvisors for
the following series:
[diamond] Phoenix-Aberdeen International Advisors, LLC ("PAIA")
[bullet] Phoenix-Aberdeen International Series
[diamond] Roger Engemann & Associates, Inc. ("Engemann")
[bullet] Phoenix-Engemann Capital Growth Series
[bullet] Phoenix-Engemann Nifty Fifty Series
[diamond] Seneca Capital Management, LLC ("Seneca")
[bullet] Phoenix-Seneca Mid-Cap Growth Series
[bullet] Phoenix-Seneca Strategic Theme Series
Phoenix Variable Advisors, Inc. ("PVA") is also an investment advisor to The
Phoenix Edge Series Fund. Based on subadvisory agreements with the fund, PVA
delegates certain investment decisions and research functions to the following
subadvisors for the series listed:
[diamond] Bankers Trust Company
[bullet] Phoenix-Bankers Trust Dow 30 Series
[diamond] Federated Investment Management Company
[bullet] Phoenix-Federated U.S. Government Bond Series
[diamond] J.P. Morgan Investment Management, Inc.
[bullet] Phoenix Research Enhanced Index Series
[diamond] Janus Capital Corporation
[bullet] Phoenix-Janus Equity Income Series
[bullet] Phoenix-Janus Flexible Income Series
[bullet] Phoenix-Janus Growth Series
[diamond] Morgan Stanley Asset Management Inc.
[bullet] Phoenix-Morgan Stanley Focus Equity Series
[diamond] Schafer Capital Management, Inc.
[bullet] Phoenix-Schafer Mid-Cap Value Series
The investment advisor to the Phoenix-Duff & Phelps Real Estate Securities
Series is Duff & Phelps Investment Management Co. ("DPIM").
The investment advisor to the Phoenix-Aberdeen New Asia Series is PAIA.
Pursuant to subadvisory agreements with the fund, PAIA delegates certain
investment decisions and research functions with respect to the Phoenix-Aberdeen
New Asia Series to PIC and Aberdeen Fund Managers, Inc.
PIC, DPIM, Engemann and Seneca are indirect less than wholly owned
subsidiaries of Phoenix. PAIA is jointly owned and managed by PM Holdings, Inc.,
a subsidiary of Phoenix, and by Aberdeen Fund Managers, Inc. PVA is a
wholly-owned subsidiary of PM Holdings, Inc.
The other investment advisors and their respective funds are:
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[diamond] Bankers Trust Company
[bullet] EAFE[registered trademark] Equity Index Fund
[diamond] Federated Investment Management Company
[bullet] Federated Fund for U.S. Government Securities II
[bullet] Federated High Income Bond Fund II
[diamond] Franklin Mutual Advisers, LLC
[bullet] Mutual Shares Investments Fund
[diamond] Morgan Stanley Dean Witter Investment Management Inc.
[bullet] Technology Portfolio
[diamond] Templeton Asset Management, Ltd.
[bullet] Templeton Developing Markets Fund
[diamond] Templeton Investment Counsel, Inc.
[bullet] Templeton Asset Allocation Fund
[bullet] Templeton International Fund
[bullet] Templeton Stock Fund
[diamond] Wanger Asset Management, L.P.
[bullet] Wanger Foreign Forty
[bullet] Wanger International Small Cap
[bullet] Wanger Twenty
[bullet] Wanger U.S. Small Cap
SERVICES OF THE ADVISORS
The advisors continually furnish an investment program for each series and
manage the investment and reinvestment of the assets of each series subject at
all times to the authority and supervision of the trustees of each fund. A
detailed discussion of the investment advisors and subadvisors, and the
investment advisory and subadvisory agreements, is contained in the accompanying
prospectus for the funds.
REINVESTMENT AND REDEMPTION
All dividend distributions of the Fund are automatically reinvested in
shares of the Fund at their net asset value on the date of distribution.
Likewise, all capital gains distributions of the Fund, if any, are reinvested at
the net asset value on the record date. We redeem Fund shares at their net asset
value to the extent necessary to make payments under the policy.
SUBSTITUTION OF INVESTMENTS
We reserve the right to make additions to, deletions from, or substitutions
for the investments held by the VUL Account, subject to compliance with the law
as currently applicable or as subsequently changed. In the future, we may
establish additional Subaccounts within the VUL Account, each of which will
invest in shares of a designated portfolio of the Fund with a specified
investment objective. If and when marketing needs and investment conditions
warrant, and at our discretion, we may establish additional portfolios. These
will be made available under existing policies to the extent and on a basis
determined by us.
If shares of any of the portfolios of the Fund should no longer be available
for investment or, if in the judgment of our management, further investment in
shares of any of the portfolios become inappropriate due to policy objectives,
we may then substitute shares of another mutual fund for shares already
purchased, or to be purchased in the future. No substitution of mutual fund
shares held by the VUL Account may take place without prior approval of the
Securities and Exchange Commission and prior notice to you. In the event of a
change, you will be given the option of transferring the policy value of the
Subaccount in which the substitution is to occur to another Subaccount.
THE GUARANTEED INTEREST ACCOUNT
In addition to the VUL Account, you may allocate premium or transfer policy
value to the Guaranteed Interest Account. Amounts you allocate or transfer to
the Guaranteed Interest Account become part of Phoenix Home Life's general
account assets. You do not share in the investment experience of those assets.
Rather, we guarantee a 3% rate of return on your allocated amount. Although we
are not obligated to credit interest at a higher rate than the minimum, we will
credit any excess interest as determined by us based on expected investment
yield information.
Because of exemptive and exclusionary provisions, we have not registered
interests in our general account under the Securities Act of 1933. Also, we have
not registered our general account as an investment company under the Investment
Company Act of 1940, as amended. Therefore, neither the general account nor any
of its interests are subject to these Acts, and the Securities and Exchange
Commission has not reviewed the general account disclosures. These disclosures
may, however, be subject to certain provisions of the federal securities law
regarding accuracy and completeness of statements made in this prospectus.
We reserve the right to limit total deposits to the Guaranteed Interest
Account, including transfers, to no more than $250,000 during any one-week
period per policy.
In general, you can make only one transfer per year from the Guaranteed
Interest Account. The amount that can be transferred out is limited to the
greater of $1,000 or 25% of the policy value in the Guaranteed Interest Account
as of the date of the transfer. If you elect the Systematic Transfer Program for
Dollar Cost Averaging, approximately equal amounts may be transferred out of the
Guaranteed Interest Account. Also, the total policy value allocated to the
Guaranteed Interest Account may be transferred out to one or more of the
Subaccounts over a consecutive 4-year period according to the following
schedule:
[diamond] Year One: 25% of the total value
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[diamond] Year Two: 33% of remaining value
[diamond] Year Three: 50% of remaining value
[diamond] Year Four: 100% of remaining value
Transfers into the Guaranteed Interest Account and among the Subaccounts may
be made at any time. Transfers from the Guaranteed Interest Account are subject
to the rules discussed above and in "Transfer of Policy Value" and "Systematic
Transfer for Dollar Cost Averaging."
PREMIUMS
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MINIMUM PREMIUMS
The minimum premium is $10,000.
The issue premium is due on the policy date. The Insured must be alive when
the issue premium is paid. After that, you have limited ability to make
additional premium payments and each additional premium payment must be at least
$100. Additional payments should be sent to the:
PHOENIX VARIABLE PRODUCTS MAIL OPERATIONS
P O BOX 8027
BOSTON, MA 02266-8027
The number of units credited to a Subaccount will be determined by dividing
the portion of the premium applied to that Subaccount by the unit value of the
Subaccount on the payment date.
We reserve the right to refund a premium paid in any year if it will exceed
the maximum premium limit. The maximum limit is established by law to qualify
the policy as life insurance. This limit is applied to the sum of all premiums
paid under the policy. If the total premium limit is exceeded, the policyowner
will receive the excess, with interest at an annual rate of not less than 4%,
not later than 60 days after the end of the policy year in which the limit was
exceeded. The policy value will then be adjusted to reflect the refund. The
total premium limit may be exceeded if additional premium is needed to prevent
lapse or if we subsequently determine that additional premium would be permitted
by federal laws or regulations.
ALLOCATION OF ISSUE PREMIUM
We will allocate the issue premium to the VUL Account and/or the Guaranteed
Interest Account in accordance with allocation instructions in the application
upon our receipt of the completed application.
FREE LOOK PERIOD
You have the right to review the policy. If you are not satisfied with it,
you may cancel the policy:
[diamond] by mailing it to us within 10 days after you receive it (or longer in
some states);
[diamond] within 10 days after we mail or deliver a written notice telling you
about your Free Look Period; or
[diamond] within 45 days after completing the application, whichever occurs
latest.
We treat a returned policy as if we never issued it and will return the sum
of the following as of the date we receive the returned policy:
(1) the then current policy value less any unpaid debt; plus
(2) any monthly deductions, and other charges made under the policy.
We retain the right to decline to process an application within 7 days of
our receipt of the completed application for insurance. If we decline to process
the application, we will return the premium paid. Even if we have approved the
application for processing, we retain the right to decline to issue the policy.
If we decline to issue the policy, we will refund the same amount to you as
would have been refunded under the policy had it been issued but returned for
refund during the Free Look Period.
TRANSFERS
Transfers among available Subaccounts or the GIA and changes in premium
payment allocations may be requested in writing or by calling 800/541-0171,
between the hours of 8:30 a.m. and 4:00 p.m. Eastern Time. Written requests for
transfers will be executed on the date we receive the request. Telephone
transfers will be effective on the date the request is made except as noted
below. Unless you elect in writing not to authorize telephone transfers or
premium allocation changes, telephone transfer orders and premium allocation
changes also will be accepted on your behalf from your registered
representative. Phoenix and Phoenix Equity Planning Corporation ("PEPCO"), the
national distributor for Phoenix, will employ reasonable procedures to confirm
that telephone instructions are genuine. They will require verification of
account information and will record telephone instructions on tape. All
telephone transfers will be confirmed in writing to you. To the extent that
Phoenix and PEPCO fail to follow procedures reasonably designed to prevent
unauthorized transfers, Phoenix and PEPCO may be liable for following telephone
instructions for transfers that prove to be fraudulent. However, you will bear
the risk of loss resulting from instructions entered by an unauthorized third
party that Phoenix and PEPCO reasonably believe to be genuine. The telephone
transfer and allocation change privileges may be modified or terminated at any
time. During times of extreme market volatility, these privileges may be
difficult to exercise. In such cases, you should submit a written request.
Although currently there is no charge for transfers, in the future, we may
charge a fee of $10 for each transfer after the first two transfers in a policy
year.
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You may make only one transfer per policy year from the Guaranteed Interest
Account unless
(1) the transfer(s) are made as part of a Dollar Cost Averaging Program, or
(2) we agree to make an exception to this rule.
Unless you have elected a Dollar Cost Averaging Program, the amount you may
transfer cannot exceed the greater of $1,000 or 25% of the value of the unloaned
portion of the Guaranteed Interest Account at the time of the transfer. In
addition, you may transfer the total value allocated to the unloaned portion of
the Guaranteed Interest Account out to one or more of the Subaccounts over a
consecutive 4-year period according to the following schedule:
[diamond] Year One: 25% of the total value
[diamond] Year Two: 33% of the remaining value
[diamond] Year Three: 50% of the remaining value
[diamond] Year Four: 100% of the remaining value
Transfers into the Guaranteed Interest Account and among the Subaccounts may
be made anytime. We reserve the right to limit the number of Subaccounts you may
invest in at any one time or over the life of the policy, if we are required to
do so by any federal or state law.
Because excessive exchanges between Subaccounts can deteriorate Fund
performance, we reserve the right to temporarily or even permanently terminate
exchange privileges or reject any specific exchange order from anyone whose
transactions appear to us to follow a timing pattern, including those who
request more than one exchange out of a Subaccount within any 30-day period. We
will not accept batched transfer instructions from registered representatives
(acting under powers of attorney for multiple policyowners), unless the
registered representative's broker-dealer firm and PHL have entered into a
third-party transfer service agreement.
OPTIONAL PROGRAMS AND ADDITIONAL BENEFITS
DOLLAR COST AVERAGING PROGRAM
You may elect to transfer funds automatically among the Subaccounts or the
Guaranteed Interest Account on a monthly, quarterly, semiannual or annual basis
under the Systematic Transfers for Dollar Cost Averaging Program ("Dollar Cost
Averaging Program"). Under the Dollar Cost Averaging Program, the minimum
transfer amounts are
[bullet] $25 monthly,
[bullet] $75 quarterly,
[bullet] $150 semiannually, or
[bullet] $300 annually.
You must have an initial value of $2,000 in the Guaranteed Interest Account
or the Subaccount from which funds will be transferred ("Sending Subaccount").
If the value in that Subaccount or the Guaranteed Interest Account drops below
the amount to be transferred, the entire remaining balance will be transferred
and all systematic transfers stop. Funds may be transferred from only one
Sending Subaccount or the Guaranteed Interest Account, but may be allocated to
more than one Subaccount ("Receiving Subaccounts").
Under the Dollar Cost Averaging Program, you may transfer approximately
equal amounts from the GIA over a period of 6 months or longer. Transfers under
the Dollar Cost Averaging Program are not subject to the general restrictions on
transfers from the GIA
Upon Completion of the Dollar Cost Averaging Program, you must notify VPO at
800/541-0171 or in writing to VPO to start another Dollar Cost Averaging
Program.
Only one Dollar Cost Averaging Program can be active at any time. All
transfers under this program will be made on the basis of the Guaranteed
Interest Account and Subaccount on the first day of the month following our
receipt of the transfer request. If the first day of the month falls on a
holiday or weekend, then the transfer will be processed on the next business
day.
The Dollar Cost Averaging Program does not ensure a profit nor guarantee
against a loss in a declining market.
AUTOMATIC ASSET REBALANCING
Automated asset rebalancing permits you to maintain a specified whole number
percentage of your account value in any combination of Subaccounts and the
Guaranteed Interest Account. We must receive a written request in order to begin
your automated asset rebalancing program ("asset rebalancing"). Then, we will
make transfers annually on your policy anniversary to and from the Subaccounts
and the Guaranteed Interest Account to readjust your account value to your
specified percentage. Asset rebalancing allows you to maintain a specific fund
allocation. We will rebalance your policy value only on the policy anniversary.
The effective date of the first asset rebalancing will be the first policy
anniversary after we receive your request at VPO.
You may not participate in both the Dollar Cost Averaging Program and asset
rebalancing at the same time.
ADDITIONAL RIDER BENEFITS
You may elect additional benefits under your policy. These benefits are
cancelable by you at any time. A charge may be deducted from your policy value
for each additional rider benefit chosen. More details will be included in the
form of a rider to your policy contract if any of these benefits is chosen. The
following benefits are currently available (if approved in your state).
Additional riders also may be available as described in your policy.
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<PAGE>
LIVING BENEFITS
In the event of terminal illness of the insured, an accelerated payment of
up to 75% of the policy's death benefit (up to a maximum of $250,000) is
available if a Living Benefits Option has been exercised. The minimum face
amount of the policy after such accelerated benefit payment is $10,000. There is
no charge for this additional benefit.
VUL ACCOUNT VALUATION PROCEDURES
VALUATION DATE
A Valuation Date is every day the NYSE is open for trading and we are open
for business. The NYSE is scheduled to be closed on the following days: New
Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial
Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. The Board
of Directors of the NYSE reserves the right to change this schedule as
conditions warrant. On each Valuation Date, the value of the Account is
determined at the close of the NYSE (currently 4:00 p.m. Eastern Time).
VALUATION PERIOD
Valuation Period is that period of time from the beginning of the day
following a Valuation Date to the end of the next following Valuation Date.
DETERMINATION OF UNIT VALUES
We establish the unit value of each Subaccount on the first valuation date
of that Subaccount. The value of one unit was set at $1.0000 on the date that
assets were first allocated to that Subaccount. The unit value of a Subaccount
on any other valuation date is determined by multiplying the unit value of that
Subaccount on the just-prior valuation date by the net investment factor for
that Subaccount for the then-current valuation period. The unit value of each
Subaccount on a day other than a valuation date is the unit value on the next
valuation date. The unit value of each Subaccount on a valuation date is
determined at the end of that day.
NET INVESTMENT FACTOR
The Net Investment Factor for any Valuation Period is equal to 1.000000 plus
the applicable net investment rate for such Valuation Period. A Net Investment
Factor may be more or less than 1.000000 depending on whether the assets gained
or lost value that day. To determine the net investment rate for any Valuation
Period for the Funds allocated to each Subaccount, the following steps are
taken: (a) the aggregate accrued investment income and capital gains and losses,
whether realized or unrealized, excluding any transactions, of the Subaccount
for such Valuation Period is computed, (b) the amount in (a) is then adjusted by
the sum of the charges and credits for any applicable income taxes, and (c) the
results of (a) as adjusted by (b) are divided by the aggregate Unit Values in
the Subaccount at the beginning of the Valuation Period.
DEATH BENEFIT
GENERAL
The policy provides a level death benefit. The death benefit equals the
policy's face amount on the date of the death of the Insured or, if greater, the
minimum death benefit on the date of death.
The minimum death benefit is the policy value on the date of death of the
Insured multiplied by a percentage determined from a table contained in the
policy. This percentage will be based on the Insured's attained age at the
beginning of the policy year in which the death occurs.
We pay the death benefit to the designated beneficiary when the Insured
dies. Upon receiving due proof of death, we pay the beneficiary the death
benefit amount determined as of the date the Insured dies. The beneficiary may
direct us to pay all or part of the benefit in cash or to apply it under one or
more of our payment options.
The policy is intended to qualify as a life insurance contract under the
Internal Revenue Code (IRC) for Federal tax purposes, and the death benefit to
qualify for exclusion under the IRC. To qualify as life insurance under current
federal tax laws, the policy has a minimum face amount of insurance (as shown on
the schedule page of the policy contract ).
The minimum face amount under this policy is determined using the Guideline
Premium Test.
Under the Guideline Premium Test, the minimum face amount of insurance is
determined by multiplying the policy value by a minimum face amount factor which
varies by the age of the insured.
Face amount increases or decreases are not allowed.
SURRENDERS
GENERAL
At any time during the lifetime of the Insured(s) and while the Policy is in
force, you may partially or fully surrender the Policy by sending to VPMO a
written release and surrender in a form satisfactory to us. We may also require
you to send the Policy to us. The amount available for surrender is the cash
surrender value at the end of the valuation period during which the surrender
request is received at VPMO.
Upon partial or full surrender, we generally will pay to you the amount
surrendered within seven days after we receive the written request for the
surrender. Under certain circumstances, the surrender payment may be postponed.
See "General Provisions--Postponement of Payments." For the federal tax effects
of partial and full surrenders, see "Federal Tax Considerations."
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FREE WITHDRAWALS
Your policy allows for a free withdrawal once each year. The free withdrawal
amount is the amount of your policy value we permit you to withdraw each year
without being charged a surrender penalty.
Once each policy year, you may withdraw an amount equal to the greater of
your penalty free earnings on the policy and 10% of the single premium (free
allowable amount) without the imposition of a surrender charge.
The penalty free earnings portion of your policy is equal to your policy
value less the amount of the single premium.
The single premium amount will be reduced by portions of prior withdrawals
you have made.
The portion of previous partial surrenders that reduce the amount of your
single premium are withdrawals that you made that were in excess of your free
allowable amount, including surrender charges on those withdrawals.
The free allowable amount will automatically be calculated and processed
when full or partial surrenders are requested.
FULL SURRENDERS
If the Policy is being fully surrendered, the Policy itself must be returned
to VPMO, along with the written release and surrender of all claims in a form
satisfactory to us. You may elect to have the amount paid in a lump sum or under
a payment option. See "Conditional Charges--Surrender Charge" and "Payment
Options."
PARTIAL SURRENDERS
You may obtain a partial surrender of the Policy by requesting payment of
the Policy's cash surrender value. It is possible to do this at any time during
the lifetime of the Insured, while the Policy is in force, with a written
request to VPMO. We may require the return of the Policy before payment is made.
A partial surrender will be effective on the date the written request is
received or, if required, the date the Policy is received by us. Surrender
proceeds may be applied under any of the payment options described under
"Payment of Proceeds--Payment Options."
We reserve the right not to allow partial surrenders of less than $500. In
addition, if the share of the policy value in any Subaccount or in the GIA is
reduced as a result of a partial surrender and is less than $500, we reserve the
right to require surrender of the entire remaining balance in that Subaccount or
the GIA.
Cash payment will be made in a single sum, ordinarily within seven days
after receipt of such notice. However, redemption and payment may be delayed
under certain circumstances. See "Deferment of Payment." There may be adverse
tax consequences to certain surrenders and partial withdrawals.
Any request for a withdrawal from, or complete surrender of, a policy should
be mailed to:
PHOENIX VARIABLE PRODUCTS MAIL OPERATIONS
PO BOX 8027, BOSTON
MASSACHUSETTS 02266-8027
PARTIAL SURRENDER: EFFECT ON DEATH BENEFIT
A partial surrender will generally decrease the death benefit. Your death
benefit will be reduced on a pro rata basis. For example, a $10,000 partial
surrender from a policy with a $100,000 policy value will result in a 10%
reduction in the death benefit. A decrease in the death benefit may have certain
tax consequences. See "Federal Tax Considerations."
POLICY LOANS
You can take a loan against your policy any time while the policy is in
force. The maximum loan is:
[bullet] 90% of your policy value at the time the loan is taken; less
[bullet] any applicable surrender charges; less
[bullet] any outstanding policy debt before the loan is taken;
Your policy must be assigned to us as collateral for the loan. At the time
you take a loan, we establish a Loan Account on your policy. The Loan Account is
an account that holds policy value which is used to secure your loan.
SOURCE OF LOAN
We deduct your requested loan amount from the Subaccounts and the Guaranteed
Interest Account, based on the allocation requested at the time of the loan. We
liquidate shares taken from the Subaccounts and transfer the resulting dollars
to the Loan Account.
INTEREST CHARGED ON LOANS
You will pay interest on the loan at the following noted effective annual
rates, compounded daily and payable in arrears:
[bullet] 6% in policy year 1
[bullet] 8% in policy years 2+
Interest accrues daily and is due and payable on the policy anniversary. If
you do not pay the interest when due, it will be added to your outstanding debt.
We treat any interest which has been capitalized the same as if it were a new
loan. We deduct this capitalized interest from the Subaccounts and the
Guaranteed Interest Account in proportion to the account value in each.
INTEREST CREDITED TO THE LOAN ACCOUNT AND PREFERRED LOANS
We will pay interest on the Loan Account at the annual rate of 6%.
The initial policy loan plus any additional loans which do not exceed the
penalty free earnings amount on the policy will be considered "preferred loans".
We will charge preferred loans interest at a rate of 6%.
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REPAYMENT
You may repay all or part of your policy debt at anytime while the policy is
in force.
If you do not repay the loan, we deduct the loan amount due from the cash
surrender value or the death benefit.
Failure to repay a policy loan or to pay loan interest will not terminate
the policy unless the policy value becomes insufficient to maintain the policy
in force.
In the future, PHL may not allow policy loans of less than $500, unless such
loan is used to pay a premium on another policy issued by PHL or its affiliates.
EFFECT OF LOAN
Your policy loan reduces the death benefit and cash surrender value under
the policy by the amount of the loan. Your repayment of the loan increases the
death benefit and cash surrender value by the amount of the repayment.
As long as a loan is outstanding, a portion of your policy value equal to
the loan is held in the Loan Account. The Subaccount's investment performance
does not affect this amount. Also, you may be subject to tax consequences if
your policy is considered a modified endowment contract and you take a loan
against the policy.
LAPSE
Unlike conventional life insurance policies, the payment of the issue
premium, no matter how large, or the payment of additional premiums will not
necessarily continue the policy in force to its maturity date.
If on any monthly calculation day, the policy value is less than the
required monthly deduction, a grace period of 61 days will be allowed for the
payment of an amount equal to 3 times the required monthly deduction.
During the grace period, the policy will continue in force but Subaccount
transfers, loans, partial or full surrenders will not be permitted. Failure to
pay the additional amount within the grace period will result in lapse of the
policy, but not before 30 days after we have mailed written notice to you. If a
premium payment for the additional amount is received by us during the grace
period, any amount of premium over what is required to prevent lapse will be
allocated among the Subaccounts or to the Guaranteed Interest Account according
to the current premium allocation schedule.
In determining the amount of "excess" premium to be applied to the
Subaccounts or the Guaranteed Interest Account, we will deduct the amount needed
to cover any monthly deductions made during the grace period. If the Insured
dies during the grace period, the death benefit will equal the amount of the
death benefit immediately prior to the commencement of the grace period.
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PART II--ADDITIONAL POLICY PROVISIONS
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POSTPONEMENT OF PAYMENTS
Payment of any amount upon complete or partial surrender policy loan or
benefits payable at death (in excess of the initial face amount) or maturity may
be postponed:
[diamond] for up to 6 months from the date of the request, for any transactions
dependent upon the value of the Guaranteed Interest Account;
[diamond] whenever the NYSE is closed other than for customary weekend and
holiday closings or trading on the NYSE is restricted as determined by
the SEC; or
[diamond] whenever an emergency exists per the SEC, as a result of which
[bullet] disposal of securities is not reasonably practicable or
[bullet] it is not reasonably practicable to determine the value of
the VUL Account's net assets.
Transfers may also be postponed under these circumstances.
PAYMENT BY CHECK
Payments under the policy of any amounts derived from premiums paid by check
may be delayed until such time as the check has cleared your bank.
THE CONTRACT
The policy and attached copy of the application are the entire contract.
Only statements in the application can be used to void the policy. The
statements are considered representations and not warranties. Only an executive
officer of PHL can agree to change or waive any provisions of the policy.
SUICIDE
If the Insured commits suicide within 2 years after the policy's date of
issue, the policy will stop and become void. We will pay you the policy value
adjusted by the addition of any monthly deductions and other fees and charges,
minus any debt owed to us under the policy.
INCONTESTABILITY
We cannot contest this policy or any attached rider after it has been in
force during the Insured's lifetime or for 2 years from the policy date.
CHANGE OF OWNER OR BENEFICIARY
The beneficiary, as named in the policy application or as subsequently
changed, will receive the policy benefits at the Insured's death. If the named
beneficiary dies before the Insured, the contingent beneficiary, if named,
becomes the beneficiary. If no beneficiary survives the Insured, the death
benefit payable under the policy will be paid to your estate.
As long as the policy is in force, the policyowner and the beneficiary may
be changed in writing, satisfactory to us. A change in beneficiary will take
effect as of the date the notice is signed, whether or not the Insured is living
when we receive the notice. We will not, however, be liable for any payment made
or action taken before receipt of the notice.
ASSIGNMENT
The policy may be assigned. We will not be bound by the assignment until a
written copy has been received and we will not be liable with respect to any
payment made prior to receipt. We assume no responsibility for determining
whether an assignment is valid.
MISSTATEMENT OF AGE OR SEX
If the age or sex of the Insured has been misstated, the death benefit will
be adjusted based on what the cost of insurance charge for the most recent
monthly deduction would have purchased based on the correct age and sex.
SURPLUS
This policy is nonparticipating and does not pay dividends. Your policy will
not share in Phoenix's profits or surplus earnings.
PAYMENT OF PROCEEDS
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SURRENDER AND DEATH BENEFIT PROCEEDS
Death benefit proceeds and the proceeds of full or partial surrenders will
be processed at unit values next computed after we receive the request for
surrender or due proof of death, provided such request is complete and in good
order. Payment of surrender or death proceeds usually will be made in one lump
sum within 7 days, unless another payment option has been elected. Payment of
the death proceeds, however, may be delayed if the claim for payment of the
death proceeds needs to be investigated (e.g., to ensure payment of the proper
amount to the proper payee). Any such delay will not be beyond that reasonably
necessary to investigate such claims consistent with insurance practices
customary in the life insurance industry.
You may elect a payment option for payment of the death proceeds to the
beneficiary. You may revoke or change a prior election, unless such right has
been waived. The beneficiary may make or change an election before payment of
the death proceeds, unless you have made an election that does not permit such
further election or changes by the beneficiary.
A written request in a form satisfactory to us is required to elect, change
or revoke a payment option.
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The minimum amount of surrender or death benefit proceeds that may be
applied under any payment option is $1,000.
If the policy is assigned as collateral security, we will pay any amount due
the assignee in one lump sum. Any remaining proceeds will remain under the
option elected.
PAYMENT OPTIONS
All or part of the surrender or death proceeds of a policy may be applied
under one or more of the following payment options or such other payment options
or alternative versions of the options listed as we may choose to make available
in the future.
OPTION 1--LUMP SUM.
Payment is paid in one lump sum.
OPTION 2--LEFT TO EARN INTEREST.
A payment of interest is paid during the payee's lifetime on the amount
payable as a principal sum. Interest rates are guaranteed to be at least 3% per
year.
OPTION 3--PAYMENT FOR A SPECIFIC PERIOD.
Equal installments are paid for a specified period of years whether the
payee lives or dies. The first payment will be on the date of settlement. The
assumed interest rate on the unpaid balance is guaranteed not to be less than 3%
per year.
OPTION 4--LIFE ANNUITY WITH SPECIFIED PERIOD CERTAIN.
Equal installments are paid until the later of:
[diamond] the death of the payee; or
[diamond] the end of the period certain.
The first payment will be on the date of settlement.
The period certain must be chosen at the time this option is elected. The
periods certain that you may choose from are as follows:
[diamond] 10 years;
[diamond] 20 years; or
[diamond] until the installments paid refund the amount applied under this
option.
If the payee is not living when the final payment falls due, that payment
will be limited to the amount which needs to be added to the payments already
made to equal the amount applied under this option.
If, for the age of the payee, a period certain is chosen that is shorter
than another period certain paying the same installment amount, we will consider
the longer period certain as having been elected.
Any life annuity provided under Option 4 is computed using an interest rate
guaranteed to be no less than 3-3/8% per year, but any life annuity providing a
period certain of 20 years or more is computed using an interest rate guaranteed
to be no less than 3-1/4% per year.
OPTION 5--LIFE ANNUITY.
Equal installments are paid only during the lifetime of the payee. The first
payment will be on the date of settlement. Any life annuity as may be provided
under Option 5 is computed using an interest rate guaranteed to be no less than
3-1/2% per year.
OPTION 6--PAYMENTS OF A SPECIFIED AMOUNT.
Equal installments of a specified amount, out of the principal sum and
interest on that sum, are paid until the principal sum remaining is less than
the amount of the installment. When that happens, the principal sum remaining
with accrued interest will be paid as a final payment. The first payment will be
on the date of settlement. The payments will include interest on the remaining
principal at a guaranteed rate of at least 3% per year. This interest will be
credited at the end of each year. If the amount of interest credited at the end
of the year exceeds the income payments made in the last 12 months, that excess
will be paid in one sum on the date credited.
OPTION 7--JOINT SURVIVORSHIP ANNUITY WITH 10-YEAR PERIOD CERTAIN.
The first payment will be on the date of settlement. Equal installments are
paid until the latest of:
[diamond] the end of the 10-year period certain;
[diamond] the death of the Insured; or
[diamond] the death of the other named annuitant.
The other annuitant must have attained age 40, must be named at the time
this option is elected and cannot later be changed. Any joint survivorship
annuity that may be provided under this option is computed using a guaranteed
interest rate to equal at least 3-3/8% per year.
For additional information concerning the above payment options, see the
policy.
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PART III--OTHER IMPORTANT INFORMATION
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FEDERAL TAX CONSIDERATIONS
- --------------------------------------------------------------------------------
INTRODUCTION
The ultimate effect of federal income taxes on values under the VUL Account
and on the economic benefit to you or your beneficiary depends on our tax status
and upon the tax status of the individual concerned. This discussion is general
in nature and is not intended as tax advice. For complete information on federal
and state tax considerations, a qualified tax advisor should be consulted. No
attempt is made to consider any estate and inheritance taxes, or any state,
local or other tax laws. Because this discussion is based upon our understanding
of federal income tax laws as they are currently interpreted, we cannot
guarantee the tax status of any policy.
The Internal Revenue Service ("IRS") makes no representation regarding the
likelihood of continuation of current federal income tax laws, Treasury
regulations or of the current interpretations. We reserve the right to make
changes to the policy to assure that it will continue to qualify as a life
insurance contract for federal income tax purposes.
PHOENIX'S TAX STATUS
We are taxed as a life insurance company under the Internal Revenue Code of
1986, as amended (the "Code"). For federal income tax purposes, neither the VUL
Account nor the GIA is a separate entity from Phoenix and their operations form
a part of Phoenix.
Investment income and realized capital gains on the assets of the VUL
Account are reinvested and taken into account in determining the value of the
VUL Account. Investment income of the VUL Account, including realized net
capital gains, is not taxed to us. Due to our tax status under current
provisions of the Code, no charge currently will be made to the VUL Account for
our federal income taxes which may be attributable to the VUL Account. We
reserve the right to make a deduction for taxes if our federal tax treatment is
determined to be other than what we currently believe it to be, if changes are
made affecting the tax treatment to our variable life insurance contracts, or if
changes occur in our tax status. If imposed, such charge would be equal to the
federal income taxes attributable to the investment results of the VUL Account.
POLICY BENEFITS
DEATH BENEFIT PROCEEDS
The policy, whether or not it is a "modified endowment contract" (see
"Modified Endowment Contracts"), should be treated as meeting the definition of
a life insurance contract for federal income tax purposes under Section 7702 of
the Code. As such, the death benefit proceeds thereunder should be excludable
from the gross income of the beneficiary under Code Section 101(a)(1). Also, a
policyowner should not be considered to be in constructive receipt of the cash
value, including investment income. See, however, the sections below on possible
taxation of amounts received under the policy, via full surrender, partial
surrender or loan.
Code Section 7702 imposes certain conditions with respect to premiums
received under a policy. We monitor the premiums to assure compliance with such
conditions. However, if the premium limitation is exceeded during the year, we
may return the excess premium, with interest, to the policyowner within 60 days
after the end of the policy year, and maintain the qualification of the policy
as life insurance for federal income tax purposes.
FULL SURRENDER
Upon full surrender of a policy for its cash value, the excess, if any, of
the cash value (unreduced by any outstanding indebtedness) over the premiums
paid will be treated as ordinary income for federal income tax purposes. The
full surrender of a policy that is a modified endowment contract may result in
the imposition of an additional 10% tax on any income received.
PARTIAL SURRENDER
If the policy is a modified endowment contract, partial surrenders are fully
taxable to the extent of income in the policy and are possibly subject to an
additional 10% tax. See the discussion on "Modified Endowment Contracts" below.
If the policy is not a modified endowment contract, partial surrenders still
may be taxable, as follows. Code Section 7702(f)(7) provides that where a
reduction in death benefits occurs during the first 15 years after a policy is
issued and there is a cash distribution associated with that reduction, the
policyowner may be taxed on all or a part of the amount distributed. A reduction
in death benefits may result from a partial surrender. After 15 years, the
proceeds will not be subject to tax, except to the extent such proceeds exceed
the total amount of premiums paid but not previously recovered.
We suggest you consult with your tax advisor in advance of a proposed
decrease in death benefits or a partial surrender as to the portion, if any,
which would be subject to tax, and in addition as to the impact such partial
surrender might have under the new rules affecting modified endowment contracts.
LOANS
We believe that any loan received under a policy will be treated as your
indebtedness. If the policy is a modified endowment contract, loans are fully
taxable to the extent of income in the policy and are possibly subject to an
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additional 10% tax. See the discussion on modified endowment contracts. If the
policy is not a modified endowment contract, we believe that no part of any loan
under a policy will constitute income to you.
The deductibility by a policyowner of loan interest under a policy may be
limited under Code Section 264, depending on the circumstances. A policyowner
intending to fund premium payments through borrowing should consult a tax
advisor with respect to tax consequences. Under the "personal" interest
limitation provisions of the Code, interest on policy loans used for personal
purposes is not tax deductible. Other rules may apply to allow all or part of
the interest expense as a deduction if the loan proceeds are used for "trade or
business" or "investment" purposes. See your tax advisor for further guidance.
BUSINESS-OWNED POLICIES
If a business or a corporation owns the policy, the Code may impose
additional restrictions. The Code limits the interest deduction on
business-owned policy loans and may impose tax upon the inside build-up of
corporate-owned life insurance policies through the corporate alternative
minimum tax.
MODIFIED ENDOWMENT CONTRACTS
GENERAL
Pursuant to Code Section 72(e), loans and other amounts received under
modified endowment contracts will, in general, be taxed to the extent of
accumulated income (generally, the excess of cash value over premiums paid).
Life insurance policies can be modified endowment contracts if they fail to meet
what is known as "the 7-pay test."
The measuring stick for this test is a hypothetical life insurance policy of
equal face amount which requires 7 equal annual premiums but which, after the
seventh year is "fully paid-up," continuing to provide a level death benefit
without the need for any further premiums. A policy becomes a modified endowment
contract, if, at any time during the first 7 years, the cumulative premium paid
on the policy exceeds the cumulative premium that would have been paid under the
hypothetical policy. Premiums paid during a policy year but which are returned
by us with interest within 60 days after the end of the policy year will be
excluded from the 7-pay test. A life insurance policy received in exchange for a
modified endowment contract will be treated as a modified endowment contract.
REDUCTION IN BENEFITS DURING THE FIRST 7 YEARS
If there is a reduction in death benefits during the first 7 policy years,
the premiums are redetermined for purposes of the 7-pay test as if the policy
originally had been issued at the reduced death benefit level and the new
limitation is applied to the cumulative amount paid for each of the first 7
policy years.
DISTRIBUTIONS AFFECTED
If a policy fails to meet the 7-pay test, it is considered a modified
endowment contract only as to distributions in the year in which the test is
failed and all subsequent policy years. However, distributions made in
anticipation of such failure (there is a presumption that distributions made
within 2 years prior to such failure were "made in anticipation") also are
considered distributions under a modified endowment contract. If the policy
satisfies the 7-pay test for 7 years, distributions and loans generally will not
be subject to the modified endowment contract rules.
PENALTY TAX
Any amounts taxable under the modified endowment contract rule will be
subject to an additional 10% excise tax, with certain exceptions. This
additional tax will not apply in the case of distributions that are:
[diamond] made on or after the taxpayer attains age 59 1/2;
[diamond] attributable to the taxpayer's disability (within the meaning of Code
Section 72(m)(7)); or
[diamond] part of a series of substantially equal periodic payments (not less
often than annually) made for the life (or life expectancy) of the
taxpayer or the joint lives (or life expectancies) of the taxpayer and
his beneficiary.
MATERIAL CHANGE RULES
Any determination of whether the policy meets the 7-pay test will begin
again any time the policy undergoes a "material change," which includes any
increase in death benefits or any increase in or addition of a qualified
additional benefit, with the following two exceptions.
[diamond] First, if an increase is attributable to premiums paid "necessary to
fund" the lowest death benefit and qualified additional benefits
payable in the first 7 policy years or to the crediting of interest or
dividends with respect to these premiums, the "increase" does not
constitute a material change.
[diamond] Second, to the extent provided in regulations, if the death benefit or
qualified additional benefit increases as a result of a cost-of-living
adjustment based on an established broad-based index specified in the
policy, this does not constitute a material change if:
[bullet] the cost-of-living determination period does not exceed the
remaining premium payment period under the policy; and
[bullet] the cost-of-living increase is funded ratably over the
remaining premium payment period of the policy.
A reduction in death benefits is not considered a material change unless
accompanied by a reduction in premium payments.
A material change may occur at any time during the life of the policy
(within the first 7 years or thereafter), and future taxation of distributions
or loans would depend upon whether the policy satisfied the applicable 7-pay
test from
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the time of the material change. An exchange of policies is considered to be a
material change for all purposes.
SERIAL PURCHASE OF MODIFIED ENDOWMENT CONTRACTS
All modified endowment contracts issued by the same insurer (or affiliated
companies of the insurer) to the same policyowner within the same calendar year
will be treated as one modified endowment contract in determining the taxable
portion of any loans or distributions made to the policyowner. The Treasury has
been given specific legislative authority to issue regulations to prevent the
avoidance of the new distribution rules for modified endowment contracts.
A qualified tax advisor should be consulted about the tax consequences of
the purchase of more than one modified endowment contract within any calendar
year.
LIMITATIONS ON UNREASONABLE MORTALITY AND EXPENSE CHARGES
The Code imposes limitations on unreasonable mortality and expense charges
for purposes of ensuring that a policy qualifies as a life insurance contract
for federal income tax purposes. The mortality charges taken into account to
compute permissible premium levels may not exceed those charges required to be
used in determining the federal income tax reserve for the policy, unless
Treasury regulations prescribe a higher level of charge. In addition, the
expense charges taken into account under the guideline premium test are required
to be reasonable, as defined by the Treasury regulations. We will comply with
the limitations for calculating the premium we are permitted to receive from
you.
DIVERSIFICATION STANDARDS
To comply with the Diversification Regulations under Code Section 817(h),
each Series of the Fund is required to diversify its investments. The
Diversification Regulations generally require that on the last day of each
calendar quarter the Series assets be invested in no more than:
[diamond] 55% in any 1 investment
[diamond] 70% in any 2 investments
[diamond] 80% in any 3 investments
[diamond] 90% in any 4 investments
A "look-through" rule applies to treat a pro rata portion of each asset of a
Series as an asset of the VUL Account; therefore, each Series of the Fund will
be tested for compliance with the percentage limitations. For purposes of these
diversification rules, all securities of the same issuer are treated as a single
investment, but each United States government agency or instrumentality is
treated as a separate issuer.
The general diversification requirements are modified if any of the assets
of the VUL Account are direct obligations of the United States Treasury. In this
case, there is no limit on the investment that may be made in Treasury
securities. For purposes of determining whether assets other than Treasury
securities are adequately diversified, the generally applicable percentage
limitations are increased based on the value of the VUL Account's investment in
Treasury securities. Notwithstanding this modification of the general
diversification requirements, the portfolios of the Funds will be structured to
comply with the general diversification standards because they serve as an
investment vehicle for certain variable annuity contracts that must comply with
these standards.
In connection with the issuance of the Diversification Regulations, the
Treasury announced that such regulations do not provide guidance concerning the
extent to which you may direct your investments to particular divisions of a
separate account. It is possible that a revenue ruling or other form of
administrative pronouncement in this regard may be issued in the near future. It
is not clear, at this time, what such a revenue ruling or other pronouncement
would provide. It is possible that the Policy may need to be modified to comply
with such future Treasury announcements. For these reasons, we reserve the right
to modify the policy, as necessary, to prevent you from being considered the
owner of the assets of the VUL Account.
We intend to comply with the Diversification Regulations to assure that the
policies continue to qualify as a life insurance contract for federal income tax
purposes.
CHANGE OF OWNERSHIP OR INSURED OR ASSIGNMENT
Changing the policyowner or the Insured or an exchange or assignment of the
policy may have tax consequences depending on the circumstances. Code Section
1035 provides that a life insurance contract can be exchanged for another life
insurance contract, without recognition of gain or loss, assuming that no money
or other property is received in the exchange, and that the policies relate to
the same Insured. If the surrendered policy is subject to a policy loan, this
may be treated as the receipt of money on the exchange.
We recommend that any person contemplating such actions seek the advice of a
qualified tax consultant.
OTHER TAXES
Federal estate tax, state and local estate, inheritance and other tax
consequences of ownership or receipt of policy proceeds depend on the
circumstances of each policyowner or beneficiary.
We do not make any representations or guarantees regarding the tax
consequences of any policy with respect to these types of taxes.
VOTING RIGHTS
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We will vote the Funds' shares held by the Subaccounts at any regular and
special meetings of shareholders of the
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Funds. To the extent required by law, such voting will be pursuant to
instructions received from you. However, if the 1940 Act or any regulation
thereunder should be amended or if the present interpretation thereof should
change, and as a result, we decide that we are permitted to vote the Funds'
shares at our own discretion, we may elect to do so.
The number of votes that you have the right to cast will be determined by
applying your percentage interest in a Subaccount to the total number of votes
attributable to the Subaccount. In determining the number of votes, fractional
shares will be recognized.
Funds' shares held in a Subaccount for which no timely instructions are
received, and Funds' shares which are not otherwise attributable to
policyowners, will be voted by PHL in proportion to the voting instructions that
are received with respect to all policies participating in that Subaccount.
Instructions to abstain on any item to be voted upon will be applied to reduce
the votes eligible to be cast by PHL.
You will receive proxy materials, reports and other materials related to the
Funds.
We may, when required by state insurance regulatory authorities, disregard
voting instructions if the instructions require that the shares be voted so as
to cause a change in the subclassification or investment objective of one or
more of the portfolios of the Funds or to approve or disapprove an investment
advisory contract for the Funds. In addition, PHL itself may disregard voting
instructions in favor of changes initiated by a policyowner in the investment
policies or the investment advisor of the Funds if PHL reasonably disapproves of
such changes. A change would be disapproved only if the proposed change is
contrary to state law or prohibited by state regulatory authorities or we decide
that the change would have an adverse effect on the General Account because the
proposed investment policy for a Series may result in overly speculative or
unsound investments. In the event PHL does disregard voting instructions, a
summary of that action and the reasons for such action will be included in the
next periodic report to policyowners.
PHOENIX
You (or the payee entitled to payment under a payment option if a different
person) will have the right to vote at annual meetings of all Phoenix
policyholders for the election of members of the Board of Directors of Phoenix
and on other corporate matters, if any, where a policyholder's vote is taken. At
meetings of all the Phoenix policyholders, you (or payee) may cast only one vote
as the holder of a Policy, irrespective of policy value or the number of the
Policies you hold.
THE DIRECTORS AND EXECUTIVE OFFICERS OF PHOENIX
- --------------------------------------------------------------------------------
Phoenix is managed by its Board of Directors. The following are the
Directors and Executive Officers of Phoenix:
DIRECTORS PRINCIPAL OCCUPATION
Sal H. Alfiero Chairman and Chief Executive
Officer, Mark IV Industries, Inc.
Amherst, New York
John C. Bacot Chairman and Chief Executive
Officer, The Bank of New York
New York, New York
Arthur P. Byrne Chairman, President and Chief
Executive Officer, The Wiremold
Company
West Hartford, Connecticut
Richard N. Cooper Professor of International
Economics, Harvard University;
Cambridge, Massachusetts; formerly
Chairman, National Intelligence
Council, Central Intelligence
Agency
McLean, Virginia
Gordon J. Davis, Esq. Partner, LeBoeuf, Lamb, Greene &
MacRae; formerly Partner, Lord,
Day & Lord, Barret Smith
New York, New York
Robert W. Fiondella Director, chairman of the Board,
and Chief Executive Officer,
Phoenix Home Life Mutual
Insurance Company
Hartford, Connecticut
John E. Haire President of
The Fortune Group
New York, New York
Jerry J. Jasinowski President, National Association
of Manufacturers
Washington, D.C.
John W. Johnstone Chairman, Governance & Nominating
Committees, Arch Chemicals, Inc.,
Westport, Connecticut; formerly
Chairman, President and
Chief Executive Officer,
Olin Corporation
Norwalk, Connecticut
Marilyn E. LaMarche Limited Managing Director, Lazard
Freres & Company L.L.C.
New York, New York
25
<PAGE>
Philip R. McLoughlin Executive Vice President and Chief
Investment Officer, Phoenix Home
Life Mutual Insurance Company
Hartford, Connecticut
Indra K. Nooyi Senior Vice President,
PepsiCo, Inc.
Purchase, New York
Robert F. Vizza President and Chief Executive
Officer, St. Francis Hospital
Roslyn, New York
Robert G. Wilson Retired, formerly Chairman and
Chief Executive Officer, Ecologic
Waste Services, Inc. Miami, Florida
Dona D. Young President,
Phoenix Home Life Mutual
Insurance Company
Hartford, Connecticut
EXECUTIVE OFFICERS PRINCIPAL OCCUPATION
Robert W. Fiondella Chairman of the Board, President
and Chief Executive Officer
Philip R. McLoughlin Executive Vice President and
Chief Investment Officer
Carl T. Chadburn Executive Vice President,
Assistant Secretary
David W. Searfoss Executive Vice President, Chief
Financial Officer and Assistant
Secretary
Dona D. Young President
Kelly J. Carlson Senior Vice President,
Business Practices
Martin J. Gavin Senior Vice President,
Trust Operations
Randall C. Giangiulio Senior Vice President,
Group Life and Health
Edward P. Hourihan Senior Vice President,
Information Systems
Joseph E. Kelleher Senior Vice President,
Underwriting and Operations
Robert G. Lautensack, Jr. Senior Vice President,
Individual Financial
Maura L. Melley Senior Vice President,
Public Affairs
David R. Pepin Senior Vice President
Robert E. Primmer Senior Vice President,
Individual Distribution
Frederick W. Sawyer, III Senior Vice President
Jack F. Solan, Jr. Senior Vice President,
Strategic Development
Simon Y. Tan Senior Vice President, Market and
Product Development
Anthony J. Zeppetella Senior Vice President, Corporate
Portfolio Management
Walter H. Zultowski Senior Vice President, Marketing
and Market Research; formerly
Senior Vice President,
LIMRA International,
Hartford, Connecticut
The above positions reflect the last held position in Phoenix during the
last five years
SAFEKEEPING OF THE VUL ACCOUNT'S ASSETS
- --------------------------------------------------------------------------------
We hold the assets of the VUL Account. They are kept physically segregated
and held separate and apart from our General Account. We maintain records of all
purchases and redemptions of shares of the Funds.
SALES OF POLICIES
- --------------------------------------------------------------------------------
The principal underwriter of the Contracts is PEPCO. Contracts may be
purchased through registered representatives of W.S. Griffith & Company, Inc.
("WSG") who are licensed to sell our life insurance policies. WSG is an indirect
wholly-owned subsidiary of Phoenix. PEPCO is an indirect, majority owned
subsidiary of Phoenix. Contracts also may be purchased through other
broker-dealers or entities registered under or exempt under the Securities
Exchange Act of 1934, whose representatives are authorized by applicable law to
sell Contracts under terms of agreement provided by PEPCO and terms of agreement
provided by Phoenix.
In addition to reimbursing PEPCO for its expenses, we pay PEPCO an amount
equal to up to 7.25% of the payments made under the Contract. PEPCO pays any
qualified distribution organization an amount which may not exceed 7.25% of the
payments under the Contract. Any such amount paid with respect to Contracts sold
through other broker-dealers will be paid by us to or through PEPCO. The amounts
paid are not deducted from the payments. Deductions for surrender charges (as
described under "Surrender Charges") may be used as reimbursement for commission
payments.
26
<PAGE>
Although the Glass-Steagall Act prohibits banks and bank affiliates from
engaging in the business of underwriting securities, banking regulators have not
indicated that such institutions are prohibited from purchasing variable life
insurance contracts upon the order and for the account of their customers.
STATE REGULATION
- --------------------------------------------------------------------------------
We are subject to the provisions of the New York insurance laws applicable
to mutual life insurance companies and to regulation and supervision by the New
York Superintendent of Insurance. We also are subject to the applicable
insurance laws of all the other states and jurisdictions in which we do
insurance business.
State regulation of Phoenix includes certain limitations on the investments
which we may make, including investments for the VUL Account and the GIA. This
regulation does not include, however, any supervision over the investment
policies of the VUL Account.
REPORTS
- --------------------------------------------------------------------------------
All policyowners will be furnished with those reports required by the 1940
Act and related regulations or by any other applicable law or regulation.
LEGAL PROCEEDINGS
- --------------------------------------------------------------------------------
The VUL Account is not engaged in any litigation. Phoenix is not involved in
any litigation that would have a material adverse effect on our ability to meet
our obligations under the policies.
LEGAL MATTERS
- --------------------------------------------------------------------------------
Edwin L. Kerr, Counsel of Phoenix Home Life Mutual Insurance Company, has
passed upon the organization of PHL, its authority to issue variable life
insurance policies and the validity of the policy, and upon legal matters
relating to the federal securities and income tax laws for PHL.
REGISTRATION STATEMENT
- --------------------------------------------------------------------------------
A registration statement has been filed with the SEC, under the Securities
Act of 1933 ("1933 Act") with respect to the securities offered. This prospectus
is a summary of the contents of the policy and other legal documents and does
not contain all the information set forth in the registration statement and its
exhibits. We refer you to the registration statement and its exhibits for
further information concerning the VUL Account, PHL and the policy.
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
The financial statements of Phoenix contained herein should be considered
only as bearing upon Phoenix's ability to meet its obligations under the policy,
and they should not be considered as bearing on the investment performance of
the VUL Account. The financial statements of Phoenix Home Life Mutual Insurance
Company are available for the period ended December 31, 1999.
27
<PAGE>
PHOENIX HOME LIFE
MUTUAL INSURANCE COMPANY
CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1999
[TO BE FILED BY AMENDMENT]
28
<PAGE>
PHOENIX HOME LIFE
MUTUAL INSURANCE COMPANY
VARIABLE UNIVERSAL LIFE ACCOUNT
There have been no deposits made to Phoenix Life and Annuity Variable Universal
Life Account as of the date of this prospectus; therefore, no financial
statements are available for the VUL Account.
29
<PAGE>
APPENDIX A
GLOSSARY OF SPECIAL TERMS
- --------------------------------------------------------------------------------
The following is a list of terms and their meanings when used in this
prospectus.
ATTAINED AGE: The age of the Insured on his or her last birthday.
BENEFICIARY: The person or persons specified by the policyowner as entitled to
receive the death benefits under a policy.
DEBT: Outstanding loans against a policy, plus accrued interest.
FUNDS: The Phoenix Edge Series Fund, BT Insurance Funds Trust, Federated
Insurance Series, Morgan Stanley Dean Witter Universal Funds, Inc., Templeton
Variable Products Series Fund and Wanger Advisors Trust.
GENERAL ACCOUNT: The general asset account of PHL.
ISSUE PREMIUM: The premium payment made in connection with issuing the policy.
LOAN ACCOUNT: An account that holds policy value to secure policy loans.
MONTHLY CALCULATION DAY: The first monthly calculation day is the same day as
the policy date. Subsequent monthly calculation days are the same day of each
month thereafter or, if such day does not fall within a given month, the last
day of that month will be the monthly calculation day.
NET ASSET VALUE: The worth of one share of a Series of a Fund at the end of a
valuation period. Net asset value is computed by adding the value of a Series'
holdings plus other assets, minus liabilities and then dividing the result by
the number of shares outstanding.
PAYMENT DATE: The valuation date on which we receive a premium payment or loan
repayment, unless it is received after the close of the New York Stock Exchange
("NYSE"), in which case it will be the next valuation date.
POLICY ANNIVERSARY: Each anniversary of the policy date.
POLICY DATE: The policy date as shown on the schedule page of the policy. It is
the date from which we measure policy years and policy anniversaries.
POLICY VALUE: The sum of a policy's share in the values of each Subaccount of
the VUL Account plus the policy's share in the values of the Guaranteed Interest
Account plus the Loan Account.
POLICY YEAR: The first policy year is the 1-year period from the policy date up
to, but not including, the first policy anniversary. Each succeeding policy year
is the 1-year period from the policy anniversary up to, but not including, the
next policy anniversary.
SERIES: A separate investment portfolio of the Fund.
SUBACCOUNTS: Accounts within the VUL Account to which nonloaned assets under a
policy are allocated.
VALUATION DATE: For any Subaccount, each date on which we calculate the net
asset value of a Fund.
VALUATION PERIOD: For any Subaccount, the period in days from the end of one
valuation date through the next.
VUL ACCOUNT (ACCOUNT): Phoenix Home Life Mutual Insurance Company's Variable
Universal Life Account, a separate account of the company.
30
<PAGE>
APPENDIX B
PERFORMANCE HISTORY
- --------------------------------------------------------------------------------
THESE RATES OF RETURN ARE NOT AN ESTIMATE OR GUARANTEE OF FUTURE
PERFORMANCE. THEY DO NOT ILLUSTRATE HOW ACTUAL PERFORMANCE WILL AFFECT THE
BENEFITS UNDER A POLICY BECAUSE THEY DO NOT REFLECT COST OF INSURANCE, PREMIUM
TAX CHARGES, PREMIUM SALES CHARGES AND SURRENDER CHARGES, IF APPLICABLE. FOR
THIS INFORMATION SEE APPENDIX C "ILLUSTRATIONS OF DEATH BENEFITS, POLICY VALUES
AND CASH SURRENDER VALUES." Performance information may be expressed as yield
and effective yield of the Phoenix-Goodwin Money Market Subaccount, as yield of
the Phoenix-Goodwin Multi-Sector Fixed Income Subaccount and as total return of
any Subaccount. Current yield for the Phoenix-Goodwin Money Market Subaccount
will be based on the income earned by the Subaccount over a given 7-day period
(less a hypothetical charge reflecting deductions for expenses taken during the
period) and then annualized, i.e., the income earned in the period is assumed to
be earned every seven days over a 52-week period and is stated in terms of an
annual percentage return on the investment. Effective yield is calculated
similarly but reflects the compounding effect of earnings on reinvested
dividends. Yield and effective yield reflect the mortality and expense risk
charge on the VUL Account level.
Yield calculations of the Phoenix-Goodwin Money Market Subaccount used for
illustration purposes are based on the consideration of a hypothetical
participant's account having a balance of exactly one unit at the beginning of a
7-day period, which period will end on the date of the most recent financial
statements. The yield for the Subaccount during this 7-day period will be the
change in the value of the hypothetical participant's account's original unit.
The following is an example of this yield calculation for the Phoenix-Goodwin
Money Market Subaccount based on a 7-day period ending December 31, 1999.
Example:
Assumptions:
Value of hypothetical pre-existing account with exactly one
unit at the beginning of the period:.....................
Value of the same account (excluding capital changes) at the
end of the 7-day period:..................................
Calculation:
Ending account value .................................... To be filed
Less beginning account value ............................ by amendment
Net change in account value .............................
Base period return:
(adjusted change/beginning account value) ...............
Current yield = return x (365/7) = ........................
Effective yield = [(1 + return)(365/7)] - 1 = .............
The current yield and effective yield information will fluctuate, and
publication of yield information may not provide a basis for comparison with
bank deposits, other investments which are insured and/or pay a fixed yield for
a stated period of time, or other investment companies, due to charges which
will be deducted on the VUL Account level.
For the Phoenix-Goodwin Multi-Sector Fixed Income Subaccount, quotations of
yield will be based on all investment income per unit earned during a given
30-day period (including dividends and interest), less expenses accrued during
the period ("net investment income"), and are computed by dividing net
investment income by the maximum offering price per unit on the last day of the
period.
When a Subaccount advertises its total return, it usually will be calculated
for one year, five years, and ten years or since inception if the Subaccount has
not been in existence for at least ten years. Total return is measured by
comparing the value of a hypothetical $10,000 investment in the Subaccount at
the beginning of the relevant period to the value of the investment at the end
of the period, assuming the reinvestment of all distributions at net asset value
and the deduction of the mortality and expense risk, issue expense and monthly
administrative charges.
For those Subaccounts within the VUL Account that have not been available
for one of the quoted periods, the average annual total return quotations will
show the investment performance such Subaccount would have achieved (reduced by
the applicable charges) had it been available to invest in shares of the Fund
for the period quoted.
31
<PAGE>
The following performance tables display historical investment results of
the Subaccounts of the VUL Account. This information may be useful in helping
potential investors in deciding which Subaccounts to choose and in assessing the
competence of the investment advisors. The performance figures shown should be
considered in light of the investment objectives and policies, characteristics
and quality of the Subaccounts and market conditions during the periods of time
quoted. The performance figures should not be considered as estimates or
predictions of future performance. Investment return of the Subaccounts are not
guaranteed and will fluctuate. Below are quotations of average annual total
return calculated as described above for all Subaccounts with at least one year
of results. POLICY CHARGES (INCLUDING COST OF INSURANCE, PREMIUM TAX CHARGES,
PREMIUM SALES CHARGES AND SURRENDER CHARGES) ARE NOT REFLECTED.
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED DECEMBER 31, 1999(1,2)
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SERIES INCEPTION DATE 1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Phoenix Research Enhanced Index Series.....................
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Aberdeen International Series......................
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Aberdeen New Asia Series...........................
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Duff & Phelps Real Estate Securities Series........
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Engemann Capital Growth Series.....................
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Engemann Nifty Fifty Series........................
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Goodwin Money Market Series........................
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Goodwin Multi-Sector Fixed Income Series...........
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Hollister Value Equity Series......................
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Oakhurst Balanced Series...........................
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Oakhurst Growth and Income Series..................
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Oakhurst Strategic Allocation Series...............
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Schafer Mid-Cap Value Series.......................
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Seneca Mid-Cap Growth Series....................... To be filed by amendment
- -----------------------------------------------------------------------------------------------------------------------------------
Phoenix-Seneca Strategic Theme Series......................
- -----------------------------------------------------------------------------------------------------------------------------------
EAFE[registered trademark] Equity Index Fund...............
- -----------------------------------------------------------------------------------------------------------------------------------
Federated Fund for U.S. Government Securities II...........
- -----------------------------------------------------------------------------------------------------------------------------------
Federated High Income Bond Fund II.........................
- -----------------------------------------------------------------------------------------------------------------------------------
Mutual Shares Investments Fund -- Class 2(3)...............
- -----------------------------------------------------------------------------------------------------------------------------------
Templeton Asset Allocation Fund -- Class 2(3)..............
- -----------------------------------------------------------------------------------------------------------------------------------
Templeton Developing Markets Fund -- Class 2(3)............
- -----------------------------------------------------------------------------------------------------------------------------------
Templeton International Fund -- Class 2(3).................
- -----------------------------------------------------------------------------------------------------------------------------------
Templeton Stock Fund -- Class 2(3).........................
- -----------------------------------------------------------------------------------------------------------------------------------
Wanger Foreign Forty.......................................
- -----------------------------------------------------------------------------------------------------------------------------------
Wanger International Small Cap.............................
- -----------------------------------------------------------------------------------------------------------------------------------
Wanger Twenty..............................................
- -----------------------------------------------------------------------------------------------------------------------------------
Wanger U.S. Small Cap......................................
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The average annual total return is the annual compound return that results
from holding an initial investment of $10,000 for the time period indicated.
Returns are net of $5 monthly administrative fee, investment management fees
and mortality and expense risk charges.
(2) Performance data quoted represent the investment return of the appropriate
series adjusted for the Phoenix Edge SPVL charges had the Subaccount started
on the inception date of the appropriate series.
(3) Standardized performance for Class 2 shares reflects a "blended" figure,
combining: (a) for periods prior to Class 2's inception on May 1, 1997
(November 16, 1998 for Mutual Shares Investments Fund), historical results
of Class 1 shares; and (b) for periods after May 1, 1997 (November 16,
1998), Class 2's results reflecting an additional 12b-1 fee expense which
also affects all future performance. Maximum annual plan expenses are 0.25%.
32
<PAGE>
Advertisements, sales literature and other communications may contain
information about any series' or advisor's current investment strategies and
management style. Current strategies and style may change to respond to a
changing market and economic conditions. From time to time, the series may
discuss specific portfolio holdings or industries in such communications. To
illustrate components of overall performance, the series may separate their
cumulative and average annual returns into income results and capital gains or
losses; or cite separately, as a return figure, the equity or bond portion of a
series' portfolio; or compare a series' equity or bond return figure to
well-known indices of market performance including, but not limited to, the
Standard & Poor's 500 Composite Stock Price Index (the "S&P 500"), Dow Jones
Industrial Average, First Boston High Yield Index and Salomon Brothers Corporate
and Government Bond Indices.
Occasionally, The VUL Account may include in advertisements containing total
return, the ranking of those performance figures relating to such figures for
groups of Subaccounts having similar investment objectives as categorized by
ranking services such as:
Lipper Analytical Services, Inc. Morningstar, Inc.
CDA Investment Technologies, Inc. Weisenberger Financial Services, Inc.
Additionally, the Funds may compare a Series' performance results to other
investment or savings vehicles (such as certificates of deposit) and may refer
to results published in various publications such as:
Changing Times Forbes
Fortune Money
Barrons Business Week
Investor's Business Daily The Stanger Register
Stanger's Investment Advisor The Wall Street Journal
The New York Times Consumer Reports
Registered Representative Financial Planning
Financial Services Weekly Financial World
U.S. News and World Report Standard & Poor's
The Outlook Personal Investor
The Funds may occasionally illustrate the benefits of tax deferral by
comparing taxable investments to investments made through tax-deferred
retirement plans. The total return also may be used to compare the performance
of a Series against certain widely acknowledged outside standards or indices for
stock and bond market performance such as:
S&P 500 Dow Jones Industrial Average
Europe Australia Far East Index (EAFE) Consumers Price Index
Shearson Lehman Corporate Index Shearson Lehman T-Bond Index
The S&P 500 is a commonly quoted market value-weighted and unmanaged index
showing the changes in the aggregate market value of 500 common stocks relative
to the base period 1940-43. The S&P 500 is composed almost entirely of common
stocks of companies listed on the NYSE, although the common stocks of a few
companies listed on the American Stock Exchange or traded over the counter are
included. The 500 companies represented include 400 industrial, 60
transportation and 40 financial services concerns. The S&P 500 represents about
70-80% of the market value of all issues traded on the NYSE.
The Funds' annual reports, available upon request and without charge,
contain a discussion of the performance of the Funds and a comparison of that
performance to a securities market index.
33
<PAGE>
ANNUAL TOTAL RETURN(1,2)
<TABLE>
- -----------------------------------------------------------------------------------------------------------
<CAPTION>
SERIES 1983 1984 1985 1986 1987 1988 1989 1990 1991
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Phoenix Research Enhanced Index Series N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Phoenix-Aberdeen International Series N/A N/A N/A N/A N/A N/A N/A N/A 19.74%
- -----------------------------------------------------------------------------------------------------------
Phoenix-Aberdeen New Asia Series N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Phoenix-Duff & Phelps Real Estate
Securities Series N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Phoenix-Engemann Capital Growth Series 32.89% 10.67% 34.92% 20.47% 6.93% 3.92% 36.19% 4.05% 42.75%
- -----------------------------------------------------------------------------------------------------------
Phoenix-Engemann Nifty Fifty Series N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Phoenix-Goodwin Money Market Series 8.37% 10.23% 8.03% 6.51% 6.51% 7.45% 9.20% 8.22% 5.98%
- -----------------------------------------------------------------------------------------------------------
Phoenix-Goodwin Multi-Sector Fixed Income
Series 6.00% 11.35% 20.61% 19.29% 1.08% 10.49% 8.24% 5.22% 19.59%
- -----------------------------------------------------------------------------------------------------------
Phoenix-Hollister Value Equity Series N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Phoenix-Oakhurst Balanced Series N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Phoenix-Oakhurst Growth and Income Series N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Phoenix-Oakhurst Strategic Allocation
Series N/A N/A 27.34% 15.69% 12.56% 2.34% 19.90% 5.77% 29.32%
- -----------------------------------------------------------------------------------------------------------
Phoenix-Schafer Mid-Cap Value Series N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Phoenix-Seneca Mid-Cap Growth Series N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Phoenix-Seneca Strategic Theme Series N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
EAFE[registered trademark] Equity
Index Fund N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Federated Fund for U.S. Government
Securities II N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Federated High Income Bond Fund II N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Mutual Shares Investments Fund --
Class 2(3) N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Templeton Asset Allocation Fund --
Class 2(3) N/A N/A N/A N/A N/A N/A 13.03% -8.21% 27.44%
- -----------------------------------------------------------------------------------------------------------
Templeton Developing Markets Fund --
Class 2(3) N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Templeton International Fund -- Class 2(3) N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Templeton Stock Fun -- Class 2(3) N/A N/A N/A N/A N/A N/A 14.39% -11.28% 27.23%
- -----------------------------------------------------------------------------------------------------------
Wanger Foreign Forty N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Wanger International Small Cap N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Wanger Twenty N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Wanger US Small Cap N/A N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
</TABLE>
ANNUAL TOTAL RETURN(1,2) (continued)
<TABLE>
- ---------------------------------------------------------------------------------------------------------
<CAPTION>
SERIES 1992 1993 1994 1995 1996 1997 1998 1999
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Phoenix Research Enhanced Index Series N/A N/A N/A N/A N/A N/A 31.69%
- ---------------------------------------------------------------------------------------------------------
Phoenix-Aberdeen International Series -12.83% 38.46% 0.06% 9.59% 18.66% 12.05% 27.94%
- ---------------------------------------------------------------------------------------------------------
Phoenix-Aberdeen New Asia Series N/A N/A N/A N/A N/A -32.41% -4.45%
- ---------------------------------------------------------------------------------------------------------
Phoenix-Duff & Phelps Real Estate
Securities Series N/A N/A N/A N/A 33.13% 22.07% -21.20%
- ---------------------------------------------------------------------------------------------------------
Phoenix-Engemann Capital Growth Series 10.30% 19.71% 1.46% 30.89% 12.59% 21.09% 30.02%
- ---------------------------------------------------------------------------------------------------------
Phoenix-Engemann Nifty Fifty Series N/A N/A N/A N/A N/A N/A N/A
- ---------------------------------------------------------------------------------------------------------
Phoenix-Goodwin Money Market Series 3.58% 2.88% 3.84% 5.70% 5.03% 5.19% 5.10%
- ---------------------------------------------------------------------------------------------------------
Phoenix-Goodwin Multi-Sector Fixed Income
Series 10.08% 15.92% -5.49% 23.54% 12.43% 11.09% -4.15%
- ---------------------------------------------------------------------------------------------------------
Phoenix-Hollister Value Equity Series N/A N/A N/A N/A N/A N/A N/A
- ---------------------------------------------------------------------------------------------------------
Phoenix-Oakhurst Balanced Series 9.63% 8.61% -2.84% 23.35% 10.57% 17.94% 19.02% To be
- ----------------------------------------------------------------------------------------------- filed by
Phoenix-Oakhurst Growth and Income Series N/A N/A N/A N/A N/A N/A N/A amendment
- ---------------------------------------------------------------------------------------------------------
Phoenix-Oakhurst Strategic Allocation
Series 10.66% 11.01% -1.41% 18.20% 9.06% 20.74% 20.80%
- ---------------------------------------------------------------------------------------------------------
Phoenix-Schafer Mid-Cap Value Series N/A N/A N/A N/A N/A N/A N/A
- ---------------------------------------------------------------------------------------------------------
Phoenix-Seneca Mid-Cap Growth Series N/A N/A N/A N/A N/A N/A N/A
- ---------------------------------------------------------------------------------------------------------
Phoenix-Seneca Strategic Theme Series N/A N/A N/A N/A N/A 17.17% 44.72%
- ---------------------------------------------------------------------------------------------------------
EAFE[registered trademark] Equity
Index Fund N/A N/A N/A N/A N/A N/A 21.60%
- ---------------------------------------------------------------------------------------------------------
Federated Fund for U.S. Government
Securities II N/A N/A N/A 8.77% 4.20% 8.58% 7.66%
- ---------------------------------------------------------------------------------------------------------
Federated High Income Bond Fund II N/A N/A N/A 20.38% 14.31% 13.83% 2.70%
- ---------------------------------------------------------------------------------------------------------
Mutual Shares Investments Fund --
Class 2(3) N/A N/A N/A N/A N/A N/A N/A
- ---------------------------------------------------------------------------------------------------------
Templeton Asset Allocation Fund --
Class 2(3) 7.83% 25.87% -3.23% 22.26% 18.59% 15.27% 6.10%
- ---------------------------------------------------------------------------------------------------------
Templeton Developing Markets Fund --
Class 2(3) N/A N/A N/A N/A N/A -29.39% -21.04%
- ---------------------------------------------------------------------------------------------------------
Templeton International Fund -- Class 2(3) N/A 46.47% -2.86% 15.05% 23.30% 13.51% 9.08%
- ---------------------------------------------------------------------------------------------------------
Templeton Stock Fun -- Class 2(3) 6.87% 33.74% -2.47% 24.96% 22.15% 11.60% 0.98%
- ---------------------------------------------------------------------------------------------------------
Wanger Foreign Forty N/A N/A N/A N/A N/A N/A N/A
- ---------------------------------------------------------------------------------------------------------
Wanger International Small Cap N/A N/A N/A N/A 32.04% -1.46% 16.34%
- ---------------------------------------------------------------------------------------------------------
Wanger Twenty N/A N/A N/A N/A N/A N/A N/A
- ---------------------------------------------------------------------------------------------------------
Wanger US Small Cap N/A N/A N/A N/A 46.63% 29.43% 8.69%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(1) Performance data quoted represent the investment return of the appropriate
series adjusted for the Phoenix Edge SPVL charges had the Subaccount started
on the inception date of the appropriate series.
(2) Rates are net of investment management fees for the Phoenix Edge SPVL
Subaccounts. The actual inception date of Phoenix Edge SPVL was May 1, 2000.
(3) Standardized performance for Class 2 shares reflects a "blended" figure,
combining: (a) for periods prior to Class 2's inception on May 1, 1997
(November 16, 1998 for Mutual Shares Investments Fund), historical results
of Class 1 shares; and (b) for periods after May 1, 1997 (November 16,
1998), Class 2's results reflecting an additional 12b-1 fee expense which
also affects all future performance. Maximum annual plan expenses are 0.25%.
THESE RATES OF RETURN ARE NOT AN ESTIMATE OR GUARANTEE OF FUTURE PERFORMANCE.
34
<PAGE>
APPENDIX C
ILLUSTRATIONS OF DEATH BENEFITS, POLICY VALUES ("ACCOUNT VALUES") AND
CASH SURRENDER VALUES
- --------------------------------------------------------------------------------
TO BE FILED BY AMENDMENT
35
<PAGE>
PART II. OTHER INFORMATION
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned registrant hereby undertakes to file with
the Securities and Exchange Commission such supplementary and periodic
information, documents, and reports as may be prescribed by any rule or
regulation of the Commission heretofore or hereafter duly adopted pursuant to
authority conferred in that Section.
RULE 484 UNDERTAKING
Section 723 of the New York Business Corporation Law, as made applicable to
insurance companies by Section 108 of the New York Insurance Law, provides that
a corporation may indemnify any director or officer of the corporation made, or
threatened to be made, a party to an action or proceeding other than one by or
in the right of the corporation to procure a judgment in its favor, whether
civil or criminal, including an action by or in the right of any other
corporation of any type or kind, by reason of the fact that he, his testator or
intestate, served such other corporation in any capacity at the request of the
indemnifying corporation.
Article VI Section 6.1 of the By-laws of Phoenix Home Life provides that "To
the full extent permitted by the laws of the State of New York, the Company
shall indemnify any person made or threatened to be made a party to any action,
proceeding or investigation, whether civil or criminal, by reason of the fact
that such person . . . is or was a Director or Officer of the Company; or . . .
serves or served another corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise in any capacity at the request of the
Company, and also is or was a Director, or Officer of the Company . . . The
Company shall also indemnify any [such] person . . . by reason of the fact that
such person or such person's testator or intestate is or was an employee or
agent of the Company . . . ."
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
REPRESENTATION PURSUANT TO SECTION 26(E)(2)(A) OF THE INVESTMENT COMPANY ACT
OF 1940.
Pursuant to Section 26(e)(2)(A) of the Investment Company Act of 1940, as
amended, Phoenix Home Life Mutual Insurance Company represents that the fees and
charges deducted under the Policies, in the aggregate, are reasonable in
relation to the services rendered, the expenses expected to be incurred and the
risks to be assumed thereunder by Phoenix Home Life Mutual Insurance Company.
II-1
<PAGE>
CONTENTS OF REGISTRATION STATEMENT
This registration statement comprises the following papers and documents:
Facing sheet.
Prospectus, consisting of 54 pages.
The undertaking to file reports.
The Rule 484 undertaking.
Representation pursuant to Section 26(e)(2)(A) under the Investment Company Act
of 1940.
Signatures.
The Powers of Attorney.
Written consent of the following persons:
(a) Edwin L. Kerr, Esq.*
(b) PricewaterhouseCoopers LLP*
(c) Paul M. Fischer, FSA, CLU, ChFC*
The following exhibits:
1. The following exhibits correspond to those required by paragraph A to the
instructions as to exhibits in Form N-8B-2:
A. (1) Resolution of the Board of Directors of Phoenix Mutual
establishing the VUL Account filed with registrant's Registration
Statement on June 26, 1986 and is filed via Edgar with Post-Effective
Amendment No. 14 on April 29, 1998, incorporated by reference.
(2) Not Applicable.
(3) Distribution of Policies:
(a) Master Service and Distribution Compliance Agreement between
Depositor and Phoenix Equity Planning Corporation dated December
31, 1996 filed via Edgar with Post-Effective Amendment No. 14 on
April 29, 1998, incorporated by reference.
(b) Form of Agreement between Phoenix Equity Planning Corporation and
Independent Brokers with respect to the sale of Policies filed
via Edgar with Post-Effective Amendment No. 14 on April 29, 1998,
incorporated by reference.
(c) Not Applicable.
(4) Not Applicable.
(5) Specimen policies with optional riders:
(a) The Phoenix Edge - Variable Life Insurance Policy Form Number
5000 (Phoenix Edge) with optional rider (VR101) filed via Edgar
on April 30, 1999, incorporated by reference.
(b) Phoenix Edge SPVL - Specimen Variable Life Insurance Policy Form
to be filed by amendment.
(6) (a) Charter of Phoenix Home Life filed with registrant's Post-
Effective Amendment No. 7 on June 22, 1992 and filed via Edgar
with Post-Effective Amendment No. 14 on April 29, 1998, is
incorporated by reference.
(b) By-laws of Phoenix Home Life filed with registrant's
Post-Effective Amendment No. 7 on June 22, 1992 and filed via
Edgar with Post-Effective Amendment No. 14 on April 29, 1998, is
incorporated by reference.
(7) Not Applicable.
(8) Not Applicable.
(9) Form of Application for a Variable Life Insurance Policy
(a) The Phoenix Edge - Form filed via Edgar with Post-Effective
Amendment No. 14 on April 29, 1998, incorporated by reference.
(b) Phoenix Edge SPVL - Form to be filed by amendment.
II-2
<PAGE>
(10) Memorandum describing transfer and redemption procedures and method
of computing adjustments in payments and cash values upon conversion
to fixed benefit policies filed via Edgar with Post-Effective
Amendment No. 14 on April 29, 1998, and incorporated by reference.
2. See Exhibit 1.A.(5).
3. Opinion of Counsel as to the legality of the securities being registered.
(See number 7 below.)
4. No financial statement will be omitted from the Prospectus pursuant to
Instruction 1(b) or (c) of Part I.
5. Not Applicable.
6. Consent of PricewaterhouseCoopers LLP.*
7. Consent of Edwin L. Kerr, Esq.*
8. Opinion of Paul M. Fischer, FSA, CLU, ChFC*
- ---------------
* To be filed by amendment.
II-3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
Phoenix Home Life Variable Universal Life Account, certifies that it meets all
of the requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this
Post-Effective Amendment to the Registration Statement to be signed on its
behalf by the undersigned thereunto duly authorized, in the City of Hartford,
State of Connecticut on the 28th day of February, 2000.
PHOENIX HOME LIFE VARIABLE UNIVERSAL LIFE ACCOUNT
-------------------------------------------------
(Registrant)
By: PHOENIX HOME LIFE MUTUAL INSURANCE COMPANY
-------------------------------------------------
(Depositor)
By: /s/ Dona D. Young
-------------------------------------------------
Dona D. Young, President
ATTEST: /s/John H. Beers
--------------------------------------
John H. Beers, Secretary
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities on
this 28th day of February, 2000.
SIGNATURE TITLE
- --------- -----
Director
- --------------------------------
*Sal H. Alfiero
Director
- --------------------------------
*J. Carter Bacot
Director
- --------------------------------
*Arthur P. Byrne
Director
- --------------------------------
*Richard N. Cooper
Director
- --------------------------------
*Gordon J. Davis, Esq.
Chairman of the Board and
- -------------------------------- Chief Executive Officer
*Robert W. Fiondella (Principal Executive Officer)
Director
- --------------------------------
*John E. Haire
Director
- --------------------------------
*Jerry J. Jasinowski
S-1
<PAGE>
Director
- --------------------------------
*John W. Johnstone
Director
- --------------------------------
*Marilyn E. LaMarche
Director
- --------------------------------
*Philip R. McLoughlin
Director
- --------------------------------
*Indra K. Nooyi
Director
- --------------------------------
*Robert F. Vizza
Director
- --------------------------------
*Robert G. Wilson
By: /s/ Dona D. Young
- --------------------------------
*Dona D. Young as Attorney in Fact pursuant to Powers of Attorney, copies of
which were filed previously.
S-2
