<PAGE>
As filed with the Securities and Exchange Commission on 25 February 1999
Registration No. 333-53477
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Post-Effective Amendment No. 1
TO
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT
OF 1933 OF SECURITIES OF UNIT INVESTMENT
TRUSTS REGISTERED ON FORM N-8B-2
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
(Exact Name of Registrant)
GENERAL AMERICAN LIFE INSURANCE COMPANY
700 Market Street
St. Louis, MO 63101
(Name and Address of principal executive office of depositor)
Matthew P. McCauley, Esquire
General American Life Insurance Company
700 Market Street
St. Louis, MO 63101
(Name and Address of Agent for Service of Process)
Copy to:
Stephen E. Roth, Esquire
Sutherland, Asbill & Brennan
1275 Pennsylvania Ave., N.W.
Washington, DC 20004-2404
<PAGE>
<PAGE>
It is proposed that this filing will become effective (check appropriate
space)
[ ] immediately upon filing pursuant to paragraph (b), of
Rule 485
[ ] on ( ) pursuant to paragraph (b) of Rule 485
[ ] 60 days after filing pursuant to paragraph (a)(1) of
Rule 485
[ X ] on 1 May 1999, pursuant to paragraph (a)(1) of Rule 485
[ ] 75 days after filing pursuant to paragraph (a)(2) of
Rule 485
[ ] on (date) pursuant to paragraph (a)(2) of Rule 485
[ ] this post-effective amendment designates a new
effective date for a previously filed post-effective
amendment
DECLARATION PURSUANT TO RULE 24f-2
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, an
indefinite number or amount of securities has been registered under the
Securities Act of 1933. The Registrant will file the 24f-2 Notice for
the fiscal year ended December 31, 1998 prior to 1 April 1999.
<PAGE>
<PAGE>
RECONCILIATION AND TIE BETWEEN ITEMS
IN FORM N-8B-2 AND THE PROSPECTUS
Item No. of
Form N-8B-2 Caption in Prospectus
----------- ---------------------
1. Cover Page
2. Cover Page
3. Not Applicable
4. Distribution of the Policies
5. The Company and the Separate Account
6. The Separate Account
7. Not Required
8. Not Required
9. Legal Proceedings
10. Summary; Policy Benefits; Policy Rights;
Charges and Deductions; General Matters;
Voting Rights
11. Summary; General American Capital Company
American Century Variable
Portfolios/J.P. Morgan Series Trust
II/Variable Insurance Products
Fund/Variable Insurance Products Fund
II/VanEck Worldwide Insurance Trust
12. Summary; The Company and the Separate
Account
13. Summary; Charges and Deductions
14. Summary; Payment and Allocation of
Premiums
15. Payment and Allocation of Premiums
16. Payment and Allocation of Premiums
17. Summary; Policy Rights; Payment and
Allocation of Premiums; Charges and
Deductions
18. Payment and Allocation of Premiums
19. General Matters; Voting Rights
20. Not Applicable
21. Policy Rights; General Matters
22. Not Applicable
23. Safekeeping of the Separate Account's
Assets
24. General Matters
25. The Company and the Separate Account
26. Not Applicable
i
<PAGE>
<PAGE>
Item No. of
Form N-8B-2 Caption in Prospectus
----------- ---------------------
27. The Company and the Separate Account
28. Management of the Company
29. The Company and the Separate Account
30. Not Applicable
31. Not Applicable
32. Not Applicable
33. Not Applicable
34. Not Applicable
35. The Company and the Separate Account
36. Not Required
37. Not Applicable
38. Summary; Distribution of the Policies
39. Summary; Distribution of the Policies
40. Distribution of the Policies
41.(a) The Company and the Separate Account;
Distribution of the Policies
(b) Not required
(c) Not required
42. Not Applicable
43. Not Applicable
44. Payment and Allocation of Premiums
45. Not Applicable
46. Policy Rights
47. Payment and Allocation of Premiums
48. Not Applicable
49. Not Applicable
50. The Separate Account
51. Cover Page; Summary; Policy Benefits;
Policy Rights; Payment and Allocation
of Premiums
52. The Company and the Separate Account
53. Federal Tax Matters
54. Not Applicable
55. Not Applicable
56. Not Required
57. Not Required
58. Not Required
59. Not Required
- ii -
<PAGE>
<PAGE>
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
ISSUED BY
GENERAL AMERICAN LIFE INSURANCE COMPANY
700 MARKET STREET
ST. LOUIS, MO 63101
(314) 231-1700
This Prospectus describes an individual flexible premium variable life
insurance Policy ("the Policy") offered by General American Life
Insurance Company ("General American" or "the Company"). The Policy is
designed to provide lifetime insurance protection and to provide maximum
flexibility to vary premium payments and change the level of death
benefits payable under the Policy. This flexibility allows you to
provide for changing insurance needs under a single insurance policy.
You also have the opportunity to allocate Net Premiums among several
investment portfolios with different investment objectives.
The Policy provides:
(1) a Cash Surrender Value that can be obtained by surrendering the
Policy;
(2) Policy Loans; and
(3) a death benefit payable at the Insured's death.
As long as a Policy remains in force before the Insured's Attained Age
100, the death benefit will be at least the current Face Amount of the
Policy. A Policy will remain in force as long as its Cash Surrender
Value is sufficient to pay the monthly charges.
After the end of the "Right to Examine Policy" period, you may allocate
the Net Premiums to one or more of the Divisions of General American
Separate Account Eleven ("the Separate Account") or, in some contracts,
to General American's General Account.
You will find a list of the Funds in the Separate Account, the fund
managers, and the investment objectives in the Summary on page 13. Note
that investment results in the Separate Account are not guaranteed --
you may either make money or lose money. Depending on investment
results, the policy could lapse or the death benefit could change.
The Prospectus of each Fund contains a full description of the Fund,
including the investment policies, restrictions, risks, and charges.
You should receive a Prospectus for each Fund along with this Prospectus
for the Policy.
In most policies you may also invest all or part of your cash value in
the General Account, which guarantees at least 4% interest.
It may not be advantageous to purchase a Policy as a replacement for
another type of life insurance or as a means to obtain additional
insurance protection if the purchaser already owns another flexible
premium variable life insurance policy.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Please read this Prospectus carefully and keep it for future reference.
The date of this Prospectus is May 1, 1999. The Policies are not
available in all states.
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN
WHICH SUCH OFFERING MAY NOT BE LAWFULLY MADE. NO DEALER, SALESMAN, OR
OTHER PERSON IS AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY
REPRESENTATIONS IN CONNECTION WITH THIS OFFERING OTHER THAN THOSE
CONTAINED IN THIS PROSPECTUS, AND, IF GIVEN OR MADE, SUCH OTHER
INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON.
<PAGE>
<PAGE>
<TABLE>
TABLE OF CONTENTS
<CAPTION>
Page
<S> <C>
Summary
Definitions
The Company and the Separate Account
The Company
The Separate Account
General American Capital Company
Russell Insurance Funds
American Century Variable Portfolios
J.P. Morgan Series Trust II
Variable Insurance Products Fund
Variable Insurance Products Fund II
Van Eck Worldwide Insurance Trust
Addition, Deletion, or Substitution of Investments
Policy Benefits
Death Benefit
Cash Value
Policy Rights
Loans
Surrender, Partial Withdrawals and Pro Rata
Surrender
Transfers
Portfolio Rebalancing
Dollar Cost Averaging
Right to Examine Policy
Death Benefit at Attained Age 100
Payment and Allocation of Premiums
Issuance of a Policy
Premiums
Allocation of Net Premiums and Cash Value
Policy Lapse and Reinstatement
Charges and Deductions
Premium Expense Charges
Monthly Deduction
Contingent Deferred Sales Charge
Separate Account Charges
Dividends
The General Account
General Matters
Distribution of the Policies
Federal Tax Matters
Unisex Requirements Under Montana Law
Safekeeping of the Separate Account's Assets
Voting Rights
State Regulation of the Company
Management of the Company
Legal Matters
Legal Proceedings
Experts
Additional Information
Financial Statements
Appendix A - Illustration of Death Benefits
and Cash Values
</TABLE>
SUMMARY
THROUGHOUT THIS SUMMARY, THE TERMS "YOU" AND "YOUR" REFER TO THE OWNER
OF THE POLICY. THE OWNER MAY OR MAY NOT BE THE PERSON INSURED UNDER THE
POLICY. THE TERMS "WE," "US," AND "OUR" REFER TO GENERAL AMERICAN LIFE
INSURANCE COMPANY.
<PAGE>
THE INFORMATION IN THIS SECTION IS JUST A SUMMARY, WRITTEN IN "LAYMEN'S
TERMS" TO HELP YOU UNDERSTAND THE POLICY. HOWEVER, BOTH YOUR POLICY AND
THIS PROSPECTUS ARE LEGAL DOCUMENTS. IF YOU HAVE QUESTIONS ABOUT THEM,
YOU SHOULD CONTACT YOUR AGENT OR OTHER COMPETENT PROFESSIONAL ADVISERS.
IN PREPARING THIS SUMMARY, WE ASSUME THAT THE POLICY IS IN FORCE, AND
THAT YOU HAVE NOT BORROWED ANY OF THE CASH VALUE.
THE POLICY. You are purchasing a life insurance policy. Like many life
insurance policies, it has both a death benefit and a cash value. The
death benefit is the amount of money that we will pay to the beneficiary
if the person insured under the policy dies while the policy is in
force. The cash value is the amount of money accumulated in your policy
as an investment at any time. The cash value consists of the premiums
you have paid, reduced by the expenses deducted for operation of the
policy, and either increased or decreased by investment results.
You have certain rights, including the right to borrow or withdraw money
from the policy's cash value and the right to select the funds in which
you will invest your premiums.
You have the right to review the policy and decide whether you want to
keep it. If you decide not to keep the policy, you may return it to us
or to your agent during the "Right to Examine Policy Period." This
period is sometimes referred to as the "Free Look Period." It normally
ends on the later of:
1. twenty days after you receive the policy or
2. forty-five days after you signed the application.
In some states the period may be longer. Your agent can tell you if
this is the case.
During the "Right to Examine Policy Period" we will hold any premiums
you have paid in the money market fund. If you return the policy before
the end of the free look period, we will cancel the policy and return
any premiums you have paid. (For policies issued in Kansas, the rules
are different. Your agent can provide you with the details.) (See
Policy Rights - Right to Examine Policy.)
When the "Right to Examine Policy Period" ends, we will deduct any
charges due and transfer the rest of the money (your "net premium")
into the investment funds that you have selected. We will continue to
transfer future net premiums into the investments that you select as
soon as we receive the premiums.
The policy is a "flexible premium" policy. This means that you may,
within limits described below, make premium payments at any time and in
any amount you choose. You do not have to make premium payments
according to a fixed schedule, although you may choose to do so.
There are limits on the amount that you may pay into the policy without
creating tax consequences. If you make a premium payment that exceeds
the limit, we will notify you and offer to refund the excess paid.
We will deduct certain expenses from your cash value. These expenses
are described below. In addition, your cash value may increase or
decrease, depending on the investment experience of the funds you
select. Because it is possible for your cash value to decrease, you may
have to pay additional premiums in order to keep the policy in force.
As long as there is enough money in your cash value to pay the monthly
charges, your death benefit will always be at least the face amount of
your policy, minus any amount that you have borrowed from the policy.
The face amount of your policy means the amount of insurance that you
have purchased. It is shown on the specifications page of your policy
We will notify you if your cash value is not enough to pay the monthly
charges. If that happens, you will have 62 days to make a premium
payment big enough to bring your cash value up to the amount required to
pay the charges. If you make the premium payment, the policy will stay
in force. If you don't, the policy will lapse, or terminate with no
value. (See Payment and Allocation of Premiums - Policy Lapse and
Reinstatement.)
INVESTING YOUR CASH VALUE. You may tell us to invest your cash value in
either the general account or the separate account, or you may split
your cash value between them.
THE GENERAL ACCOUNT. The general account is an interest-bearing
account. Money in the general account is guaranteed to earn at least 4%
interest, and it may earn more. General American determines the current
interest rate from time to time, and we will notify you in advance of
any changes. We have the right to limit the amount of money that you
may put into the general account.
THE SEPARATE ACCOUNT. The separate account consists of divisions, which
represent different types of investments. Each division may either make
money or lose money. Therefore if you invest in a division of the
separate account, you may either make money or lose money, depending on
the investment experience of that division. There is no guaranteed rate
of return in the separate account.
There are currently twenty-four divisions, or investment options,
available in the separate account. These divisions represent investment
funds run by
2
<PAGE>
various investment companies. The investment companies hire advisers to
operate or advise on the day-to-day operation of the funds.
The following list shows the investment companies whose funds are
available under the policy, along with the managers or advisers and the
divisions that they oversee:
<TABLE>
- ------------------------------------------------------------------------------------------------
- -------
<CAPTION>
INVESTMENT COMPANY INVESTMENT MANAGER/ADVISER
- ------------------------------------------------------------------------------------------------
- -------
<S> <C>
General American Capital Company Conning Asset Management Company
- ------------------------------------------------------------------------------------------------
- -------
Russell Insurance Funds Frank Russell Investment Management
Company
- ------------------------------------------------------------------------------------------------
- -------
American Century Variable Portfolios American Century Investment
Management, Inc.
- ------------------------------------------------------------------------------------------------
- -------
J.P. Morgan Series Trust II J.P. Morgan Investment Management,
Inc.
- ------------------------------------------------------------------------------------------------
- -------
Fidelity Investments Variable Insurance Products Fund Fidelity Management & Research
Company
- ------------------------------------------------------------------------------------------------
- -------
Fidelity Investments Variable Insurance Products Fund II Fidelity Management & Research
Company
- ------------------------------------------------------------------------------------------------
- -------
Van Eck Worldwide Insurance Trust Van Eck Associates Corporation
- ------------------------------------------------------------------------------------------------
- -------
</TABLE>
These investment funds have different investment goals and strategies,
which we have summarized in the following table. You should review the
prospectus of each fund, or seek professional guidance in determining
which fund(s) best meet your objectives.
<TABLE>
- ------------------------------------------------------------------------------------------------
- --------------------------------
<CAPTION>
INVESTMENT FUND INVESTMENT
OBJECTIVE
---------- ---- ----------
- ---------
MANAGER NAME TYPE
------- ---- ----
- ------------------------------------------------------------------------------------------------
- --------------------------------
<C> <C> <C> <S>
Conning To achieve a rate
of return that parallels the
Asset Management S&P 500 Index Fund Growth & Income return of the
stock market as a whole, as
Company represented by
the Standard and Poor's 500 Stock
Index.
- ------------------------------------------------------------------------------------------------
- --------------------------------
Conning To obtain the
highest level of current income
Asset Management Money Market Fund Money Market consistent with
the preservation of capital and
Company maintenance of
liquidity.
- ------------------------------------------------------------------------------------------------
- --------------------------------
Conning To provide a rate
of return that reflects the
Asset Management Bond Index Fund Corporate Bonds performance of
the bond market as a whole, as
Company measured by the
Lehman Brothers
Government/Corporate Bond Index.
- ------------------------------------------------------------------------------------------------
- --------------------------------
Conning
Asset Management Asset Allocation Fund Balanced To obtain a high
rate of long-term return,
Company composed of
capital growth and income.
- ------------------------------------------------------------------------------------------------
- --------------------------------
3
<PAGE>
<PAGE>
- ------------------------------------------------------------------------------------------------
- --------------------------------
INVESTMENT FUND INVESTMENT
OBJECTIVE
---------- ---- ----------
- ---------
MANAGER NAME TYPE
------- ---- ----
- ------------------------------------------------------------------------------------------------
- --------------------------------
Conning
Asset Management Managed Equity Fund Growth To obtain
long-term capital growth through
Company investment in
common stocks.
- ------------------------------------------------------------------------------------------------
- --------------------------------
To obtain
investment results that parallel the
Conning International Growth price and yield
performance of publicly-traded
Asset Management Index Fund International Stock common stocks in
the Morgan Stanley Capital
Company International,
Europe, Australia, and Far East
Index ("EAFE
Index").
- ------------------------------------------------------------------------------------------------
- --------------------------------
To obtain
long-term capital appreciation through
Conning investment
primarily in common stocks of
Asset Management Mid-Cap Equity Fund Growth U.S.-based,
publicly traded companies with medium
Company market
capitalization, defined as within the
range of the S&P
Mid-Cap 400 at the time of the
Fund's
investment.
- ------------------------------------------------------------------------------------------------
- --------------------------------
To provide a high
rate of return through
Conning investment in the
common stock of small companies,
Asset Management Small-Cap Equity Fund Aggressive Growth making up, at one
time, the smallest 20% of
Company U.S.-based
companies on the New York Stock
Exchange.
- ------------------------------------------------------------------------------------------------
- --------------------------------
To seek capital
appreciation, normally through
Fidelity Management & Growth Portfolio Growth purchases of
common stocks, although its
Research Company investments are
not restricted to any one type of
security.
- ------------------------------------------------------------------------------------------------
- --------------------------------
Fidelity Management & Equity-Income Portfolio Growth & Income To seek reasonable
income by investing primarily
Research Company in
income-producing equity securities.
- ------------------------------------------------------------------------------------------------
- --------------------------------
Fidelity Management & Overseas Portfolio Growth: To seek long term
growth of capital primarily
Research Company International Stock though investment
in foreign securities.
- ------------------------------------------------------------------------------------------------
- --------------------------------
To seek a high
total return with reduced risk over
Fidelity Management & Asset Manager Portfolio Balanced the long-term by
allocating its assets among
Research Company domestic and
foreign stocks, bonds, and short-term
fixed income
instruments.
- ------------------------------------------------------------------------------------------------
- --------------------------------
To seek a high
level of current income by
Fidelity Management & High Income Portfolio High Yield Bond investing
primarily in high yielding, lower-rated,
Research Company fixed income
securities, while also considering
growth of
capital.
- ------------------------------------------------------------------------------------------------
- --------------------------------
To seek long-term
capital appreciation by
investing in
equity and debt securities of
Van Eck Associates Worldwide Hard Aggressive Growth: companies engaged
in the exploration, development,
Corporation Assets Fund Specialty production, and
distribution of gold and other
natural resources
such as strategic and other
metals, minerals,
forest products, oil, natural
gas, and coal.
- ------------------------------------------------------------------------------------------------
- --------------------------------
To obtain
long-term capital appreciation by
investing in
equity securities in emerging markets
Van Eck Associates Worldwide Emerging Aggressive Growth: around the world.
The Fund emphasizes primarily
Corporation Markets Fund International Stock investment in
countries that, compared to the
world's major
economies, exhibit relatively low
gross national
product per capita, as well
- ------------------------------------------------------------------------------------------------
- --------------------------------
4
<PAGE>
<PAGE>
- ------------------------------------------------------------------------------------------------
- --------------------------------
INVESTMENT FUND INVESTMENT
OBJECTIVE
---------- ---- ----------
- ---------
MANAGER NAME TYPE
------- ---- ----
- ------------------------------------------------------------------------------------------------
- --------------------------------
as the potential
for rapid economic growth.
- ------------------------------------------------------------------------------------------------
- --------------------------------
Frank Russell
Investment Management Multi-Style Equity Growth & Income To obtain income
and capital growth by investing
Company Fund principally in
equity securities.
- ------------------------------------------------------------------------------------------------
- --------------------------------
Frank Russell To provide
capital appreciation by assuming a
Investment Management Aggressive Equity Aggressive Growth higher level of
volatility than is ordinarily
Company Fund expected from the
Multi-Style Equity Fund, by
investing in
equity securities.
- ------------------------------------------------------------------------------------------------
- --------------------------------
To achieve
favorable total return and additional
Frank Russell Growth: diversification
for United States investors by
Investment Management Non-U.S. Fund International Stocks investing
primarily in equity and debt securities
Company and Bonds of non-United
States companies and non-United
States
governments.
- ------------------------------------------------------------------------------------------------
- --------------------------------
Frank Russell To maximize total
return through capital
Investment Management Core Bond Fund Growth & Income appreciation and
income by assuming a level of
Company volatility
consistent with the broad fixed-income
market, by
investing in fixed-income securities.
- ------------------------------------------------------------------------------------------------
- --------------------------------
J.P. Morgan Investment To provide a high
total return consistent with
Management, Inc. Bond Portfolio Growth & Income moderate risk of
capital and maintenance of
liquidity.
- ------------------------------------------------------------------------------------------------
- --------------------------------
To provide high
total return from a portfolio of
equity securities
of small companies. The Fund
J.P. Morgan Investment Small Company Aggressive Growth invests at least
65% of the value of its total
Management, Inc. Portfolio assets in the
common stock of small U.S. companies
primarily with
market capitalizations less than $1
billion.
- ------------------------------------------------------------------------------------------------
- --------------------------------
To attain
long-term growth of capital as well as
American Century current income.
The fund pursues a total return
Investment Income & Growth Fund Growth & Income and dividend
yield that exceeds those of the S&P
Management, Inc. 500 by investing
in stocks of companies with
strong dividend
growth potential.
- ------------------------------------------------------------------------------------------------
- --------------------------------
To obtain capital
growth over time by investing in
common stocks of
foreign companies considered to
American Century have
better-than-average prospects for
Investment International Fund Aggressive Growth: appreciation.
Because this fund invests in
Management, Inc. International Stock foreign
securities, a higher degree of short-term
price volatility,
or risk, is expected due to
factors such as
currency fluctuation and political
instability.
- ------------------------------------------------------------------------------------------------
- --------------------------------
To attain
long-term capital growth, with income as
American Century a secondary
objective. The Fund invests primarily
Investment Value Fund Growth in equity
securities of well-established companies
Management, Inc. that are believed
by management to be undervalued
at the time of
purchase.
- ------------------------------------------------------------------------------------------------
- --------------------------------
</TABLE>
5
<PAGE>
<PAGE>
You may change the investments that you want to use for your future
premiums by notifying our Home Office.
You may transfer your cash value among the various investment funds,
and you may withdraw money, but there are certain rules. We don't
charge you for the first twelve transfers or withdrawals in a policy
year, but we charge a $25 fee for each transfer or withdrawal after the
first twelve. (A policy year is measured beginning on the anniversary
of the date that the policy was issued, and ending on the day before
the next anniversary.)
We have the right change or eliminate transfers in the future, although
we don't currently intend to do so.
CHARGES AND DEDUCTIONS. There are certain costs that we charge you for
issuing your policy and keeping it in force. This section describes
those charges -- what they are and what they cover.
SALES CHARGE. Each time you pay a premium, we deduct a portion to
cover expenses of the policy. Part of this deduction covers sales
charges. We guarantee that this part of the deduction will never
exceed the following amounts:
* in the first policy year, 15% of the amount you pay up to
the target premium and 5% of the amount you pay above the
target premium. (The amount of the target premium varies
by age and risk class, and is shown in your policy.)
* in the 2nd through 10th Policy Years, 5% of the
actual premium you pay;
* in the 11th Policy Year and later, 2% of the actual premium
you pay.
For policies issued in the state of Oregon we deduct an additional 2%
of actual premium paid in all policy years.
TAX CHARGE. The Federal government and many states and territories
impose taxes or charges on insurance premiums. We deduct from your
premium payment the amount required to pay these taxes and charges. We
deduct 1.3% of each premium payment to pay the Federal charge. The
amount we deduct to pay the state and territory charges varies by
state. It ranges from 0% to 4%, with an average of about 2.1%.
If the tax rates change, we may change the amount of the deduction to
cover the new charge. (See Charges and Deductions - Premium Expense
Charges.)
If we are required by law to pay taxes based on the separate account,
we may charge an appropriate share to policies that invest in the
separate account. (See Federal Tax Matters.)
SURRENDER CHARGE. If you surrender your policy or let it lapse during
the first ten policy years, we will keep part of the cash value to help
us recover the costs of selling and issuing the policy. This charge is
called a Contingent Deferred Sales Charge (CDSC) or, more simply, a
surrender charge.
The surrender charge is 45% of the target premium if you surrender the
policy or let it lapse during the first five policy years. After that
the amount of the surrender charge goes down each month. After the
10th policy year there is no charge.
There is a table in your policy that shows the amount of the target
premium and the percentage of the surrender charge for each month.
If you withdraw money from your policy or if you surrender a portion of
your policy, we will charge a pro-rated portion of the surrender
charge.
Of course, if you don't surrender all or part of your policy, or let it
lapse, or withdraw cash from it, then you will not pay a surrender
charge.
If you increase the face amount of your policy, the increase will have
its own surrender charge for the first 10 policy years following the
increase.
(See Policy Rights - Surrender, Partial Withdrawals, and Pro-Rata
Surrender; Policy Benefits - Death Benefit; and Charges and Deductions
- - Contingent Deferred Sales Charge.)
Under certain conditions, applied in a uniform and nondiscriminatory
manner, we may reduce the surrender charge. (See Adjustment of
Charges.)
ADMINISTRATIVE FEE. We charge a monthly fee to cover your policy's
administrative cost. This charge is $25 each month for the first
policy year, and $6 each month after the first policy year. We will
deduct the charge from your cash value each month.
SELECTION AND ISSUE EXPENSE CHARGE. This charge allows us to recover
part of the commissions and other costs of issuing your policy. We
determine the amount of the charge based on the size of your policy and
on the age, sex, and risk class of the person insured under the policy.
<PAGE>
The charge ranges from about 4 cents per $1,000 of Face Amount to about
65 cents per $1,000. We deduct the charge from your cash value each
month for the first ten policy years. If you increase the face amount
of your policy, there is a new charge associated with that increase
until it has been in effect for ten policy years.
6
<PAGE>
<PAGE>
COST OF INSURANCE. Because this is a life insurance policy, it has a
death benefit. We charge an insurance cost each month to cover the
risk that you will die and we will have to pay the death benefit.
The amount of this charge varies with the age, sex, risk class of the
person insured under the policy, and the amount of the death benefit at
risk -- if the risk of death or the amount of the death benefit is
greater, then the cost of insurance is also greater. We deduct the
cost of insurance from your cash value each month.
We make another charge to cover mortality and expense risks under the
Policy. We calculate this charge based on a percentage of the net
assets in each division of the separate account. Rather than deducting
the charge from the cash value, we apply the charge by adjusting the
net rate of return in the separate account. We guarantee that the
charge will not exceed the following amounts, shown on an annual
percentage basis:
Policy years 1-10 .55% of net separate account assets
Policy years 11-20 .45% of net separate account assets
Policy years 21+ .35% of net separate account Assets
(See Charges and Deductions - Separate Account Charges.)
We pay the operating expenses of the separate account. The investment
funds pay for their own operating expenses and investment fees. For a
description of these charges, see Charges and Deductions--Separate
Account Charges.
The following chart shows the operating expenses of the funds as
reported for the fiscal year ending December 31, 1998:
<TABLE>
- -----------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES <F1>
As a Percentage of Average Net Assets
- -----------------------------------------------------------------------------------
<CAPTION>
INVESTMENT
FUND ADVISORY / OTHER EXPENSES TOTAL
MANAGEMENT
FEE
- -----------------------------------------------------------------------------------
GENERAL AMERICAN CAPITAL COMPANY
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
S&P 500 Index Fund .25% .05% .30%
- -----------------------------------------------------------------------------------
Money Market Fund .125% .08% .205%
- -----------------------------------------------------------------------------------
Bond Index Fund .25% .05% .30%
- -----------------------------------------------------------------------------------
Managed Equity Fund .40% <F2> .10% .50%
- -----------------------------------------------------------------------------------
Asset Allocation Fund .50% .10% .60%
- -----------------------------------------------------------------------------------
International Index Fund .50% <F3> .30% .80%
- -----------------------------------------------------------------------------------
Mid-Cap Equity Fund .55% <F4> .10% .65%
- -----------------------------------------------------------------------------------
Small-Cap Equity Fund .25% .05% .30%
- -----------------------------------------------------------------------------------
<CAPTION>
RUSSELL INSURANCE FUNDS
(Amounts shown are after fee waivers and expense reimbursements described below.)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Multi-Style Equity Fund .09% <F5> .83% .92% <F5>
- -----------------------------------------------------------------------------------
Aggressive Equity Fund .00% <F6> 1.25% 1.25% <F6>
- -----------------------------------------------------------------------------------
Non-U.S. Fund .00% <F7> 1.30% 1.30% <F7>
- -----------------------------------------------------------------------------------
Core Bond Fund .00% <F8> .80% .80% <F8>
- -----------------------------------------------------------------------------------
<CAPTION>
AMERICAN CENTURY VARIABLE PORTFOLIOS
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Income & Growth Fund .70% .00% .70%
- -----------------------------------------------------------------------------------
International Fund 1.50% .00% 1.50%
- -----------------------------------------------------------------------------------
Value Fund 1.00% .00% 1.00%
- -----------------------------------------------------------------------------------
<CAPTION>
J.P. MORGAN SERIES TRUST II
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Bond Portfolio .30% .45% .75%
- -----------------------------------------------------------------------------------
Small Company Portfolio .60% .55% 1.15%
- -----------------------------------------------------------------------------------
<PAGE>
<CAPTION>
VARIABLE INSURANCE PRODUCTS FUND
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Equity-Income Portfolio .50% .08% .58%
- -----------------------------------------------------------------------------------
Growth Portfolio .60% .09% .69%
- -----------------------------------------------------------------------------------
Overseas Portfolio .75% .17% .92%
- -----------------------------------------------------------------------------------
High Income Portfolio .59% .12% .71%
- -----------------------------------------------------------------------------------
<CAPTION>
VARIABLE INSURANCE PRODUCTS FUND II
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Asset Manager .55% .10% .65%
- -----------------------------------------------------------------------------------
7
<PAGE>
<PAGE>
- -----------------------------------------------------------------------------------
<CAPTION>
VAN ECK WORLDWIDE INSURANCE TRUST
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Worldwide Hard Assets Fund 1.00% .00% 1.00%
- -----------------------------------------------------------------------------------
Worldwide Emerging Markets Fund 1.50% .00% 1.50%
- -----------------------------------------------------------------------------------
<FN>
<F1> The Fund expenses shown above are collected from the underlying
Fund, and are not direct charges against the Separate Account assets or
reductions from the Policy's Cash Value. These underlying Fund
Expenses are taken into consideration in computing each Fund's net
asset value, which is used to calculate the unit values in the Separate
Account. The management fees and other expenses are more fully
described in the prospectus of each individual Fund. The information
relating to the Fund expenses was provided by the Fund and was not
independently verified by General American. Except as otherwise
specifically noted, the management fees and other expenses are not
currently subject to fee waivers or expense reimbursements.
<F2> The fees charged by the Managed Equity Fund are stated as a series
of annual percentages of the average daily value of the net assets of
the Fund. The percentages decrease with respect to assets of the Fund
above certain amounts, as follows: First $10 million, 0.40%; Next $20
million, 0.30%; Balance over $30 million, 0.25%.
<F3> The fees charged by the International Index Fund are stated as a
series of annual percentages of the average daily value of the net
assets of the Funds. The percentages decrease with respect to assets
of the Fund above certain amounts, as follows: First $10 million,
0.50%; Next $20 million, 0.40%; Balance over $20 million, 0.30%.
<F4> The fees charged by the Mid-Cap Equity Fund are stated as a series
of annual percentages of the average daily value of the net assets of
the Funds. The percentages decrease with respect to assets of the Fund
above certain amounts, as follows: First $10 million, 0.55%; Next $10
million, 0.45%; Balance over $20 million, 0.40%.
<F5> The Manager has voluntarily agreed to waive a portion of its 0.78%
management fee, up to the full amount of that fee, equal to the amount
by which the Fund's total operating expenses exceed 0.92% of the Fund's
average daily net assets on an annual basis, and to reimburse the Fund
for all remaining expenses after fee waivers which exceed 0.92% of
average daily net assets on an annual basis. The management fee
waivers and reimbursements are intended to be in effect for 1999, but
may be revised or eliminated at any time thereafter without notice to
shareholders. Absent the waiver, the management fee would have been
0.78%, and total Fund expenses would have been 1.61% of average daily
net assets.
<F6> The Manager has voluntarily agreed to waive a portion of its 0.95%
management fee, up to the full amount of that fee, equal to the amount
by which the Fund's total operating expenses exceed 1.25% of the Fund's
average daily net assets on an annual basis, and to reimburse the Fund
for all remaining expenses after fee waivers which exceed 1.25% of
average daily net assets on an annual basis. The management fee
waivers and reimbursements are intended to be in effect for 1999, but
may be revised or eliminated at any time thereafter without notice to
shareholders. Absent the waiver, the management fee would have been
0.95%, other expenses would have been 1.27%, and total Fund expenses
would have been 2.22% of average daily net assets.
<F7> The Manager has voluntarily agreed to waive a portion of its 0.95%
management fee, up to the full amount of that fee, equal to the amount
by which the Fund's total operating expenses exceed 1.30% of the Fund's
average daily net assets on an annual basis, and to reimburse the Fund
for all remaining expenses after fee waivers which exceed 1.30% of
average daily net assets on an annual basis. The management fee
waivers and reimbursements are intended to be in effect for 1999, but
may be revised or eliminated at any time thereafter without notice to
shareholders. Absent the waiver, the management fee would have been
0.95%, other expenses would have been 2.70%, and total Fund expenses
would have been 3.65% of average daily net assets.
<F8> The Manager has voluntarily agreed to waive a portion of its 0.60%
management fee, up to the full amount of that fee, equal to the amount
by which the Fund's total operating expenses exceed 0.80% of the Fund's
average daily net assets on an annual basis, and to reimburse the Fund
for all remaining expenses after fee waivers which exceed 0.80% of
average daily net assets on an annual basis. The management fee
waivers and reimbursements are intended to be in effect for 1999, but
may be revised or eliminated at any time thereafter without notice to
shareholders. Absent the waiver, the management fee would have been
0.60%, other expenses would have been 1.70%, and total Fund expenses
would have been 2.30% of average daily net assets.
</TABLE>
8
<PAGE>
<PAGE>
PREMIUMS. Within limits, you decide how much money you want to put
into the policy. There is a minimum premium that you have to pay to
put the policy in force. That amount is 1/12 of the "minimum initial
annual premium amount" shown on the specifications page of your policy.
After the policy is in force, you may pay any amount you want as long
as the cash value is always enough to cover the surrender charge and
the current month's expenses. If you continue to pay at least 1/12 of
the minimum initial annual premium each month (or to prepay it), and if
you don't withdraw or borrow cash from the policy, we guarantee that
the policy will not lapse during the first five policy years, even if
the cash value is not enough to cover the charges.
If you have borrowed or withdrawn money from your cash value, you can
still keep your no-lapse guarantee in force for the first five years.
Here is how it works. Each month, we look at the total amount of
premium that you have paid into the policy since it was issued. We
then subtract the amount of money that you have withdrawn or borrowed.
If the amount left is at least equal to 1/12 of the annual minimum
premium, multiplied by the number of months the policy has been in
force, then your no-lapse guarantee still applies. If not, then we
will notify you that you have 62 days to make enough of a premium
payment to restore the no-lapse guarantee. If you do not make the
payment, your policy could lapse, or end with no value.
If you have converted a General American term insurance policy to this
policy, and if the term policy includes conversion credits, you may
apply those credits to reduce your first-year minimum premium.
You can set up a schedule of payments, and we will send you reminders,
but you are not required to make the payments as long as the cash value
covers the surrender charge and the current month's expenses. (See
Payment and Allocation of Premiums.)
DEATH BENEFIT. If the person insured under the policy dies while the
policy is in force, we will pay a death benefit to the beneficiary.
You can select one of three death benefits at the time the policy is
issued:
* Option A: The death benefit is the greater of the face
amount of the policy or an "applicable percentage" of the
cash value.
* Option B: The death benefit is the greater of the face
amount of the policy plus the cash value, or an "applicable
percentage" of the cash value.
* Option C: The death benefit is the greater of the face
amount of the policy, or the cash value multiplied by an
attained age factor.
As long as the policy remains in force and the person insured is less
than 100 years old, the minimum death benefit under any death benefit
option will be at least the current face amount.
We will increase the death benefit by any dividends earned prior to the
death of the person insured, and by the cost of insurance from the date
of death to the end of the month, and will reduce it by any outstanding
loans and interest. We will pay the death benefit according to the
settlement options available at the time of death. (See Policy
Benefits - Death Benefit.)
The minimum face amount at issue is generally $50,000 under our current
rules. Subject to certain restrictions, you may change the face amount
and the death benefit option. In certain cases we may require evidence
that the person insured under the policy is still insurable. (See
Change in Death Benefit Option, and Change In Face Amount.)
You may include additional insurance benefits with your policy. These
are described under General Matters - Additional Insurance Benefits.
If you elect any additional benefits, we will deduct the charges for
those benefits from your Cash Value.
CASH VALUE. Your Policy has a cash value that is the total amount
credited to you in the separate account, the loan account, and the
general account. The cash value increases by the amount of net premium
payments, and decreases by partial withdrawals and expense charges for
the policy. It may either increase or decrease based on the investment
experience of the separate account divisions that you have selected.
(See Policy Benefits - Cash Value.)
There is no minimum guaranteed cash value.
POLICY LOANS. You may borrow against the cash value of your policy.
The loan value is the maximum amount that you may borrow. The loan
value is:
the cash value on the date we receive the loan request;
plus interest on the loan balance to the next anniversary date,
calculated at the guaranteed general account interest rate;
minus interest on the new loan to the next policy anniversary;
minus any loans and interest already outstanding;
minus any surrender charges;
minus monthly deductions to the next policy anniversary.
When you borrow against the policy, we will take the money from the
general account and the divisions of the separate account in proportion
to your balances in each account.
9
<PAGE>
Loan interest is due at each policy anniversary If you don't pay the
loan interest, we will add it to the amount of the loan.
You may repay all or part of the loan at any time. When you make a
loan payment, we will put the money back into the general account or
the divisions of the separate account in the same percentages used them
to make the loan.
When we pay out the proceeds of your policy, either as a death benefit
or as a policy surrender, we will deduct any outstanding loans and
interest from the amount we pay. (See Policy Rights - Loans.)
Loans taken from or secured by a policy may have Federal income tax
consequences. (See Federal Tax Matters.)
SURRENDER, PARTIAL WITHDRAWALS, AND PRO-RATA SURRENDER. You may
surrender the policy at any time while it is in force. We will pay you
the cash surrender value, plus dividends (if any) earned prior to the
surrender.
After the first year you may request a partial withdrawal of your cash
surrender value. Normally, withdrawing a portion of your cash
surrender value will reduce your death benefit by the amount of the
withdrawal. However, if you have included the Anniversary Partial
Withdrawal Rider on your policy, you may withdraw a portion of your
cash surrender value without reducing the death benefit. Under this
rider, there are limits on how much you can withdraw, and the
withdrawal must be at the policy anniversary. You can find more
information about the rider under General Matters - Additional
Insurance Benefits.
You may also request a pro-rata surrender of the policy, which allows
you to surrender part of the policy and keep the rest in force. You
can find more information under Policy Rights - Surrender, Partial
Withdrawals, and Pro-Rata Surrender.
A surrender, partial withdrawal, or Pro-Rata Surrender may have Federal
income tax consequences. We suggest that you discuss your situation
with a competent tax adviser before taking one of these steps. (See
Federal Tax Matters.)
ILLUSTRATIONS OF DEATH BENEFITS AND CASH SURRENDER VALUES. The death
benefit and cash surrender value of your policy will depend on how well
your investments perform. In Appendix A we have illustrated some
sample policies. Depending on the rate of return, the values may
increase or decrease. In order to help you to understand the cost of
the policy, we also show how your premium would grow if you simply
invested it at 5% interest, compounded annually.
If you surrender your policy in the first few years, the cash surrender
value that you receive may be low compared to what you would have
accumulated by investing the premiums at interest. In this case, the
insurance protection that you received while the policy was in force
will have been expensive.
We will provide you with an illustration showing projected future cash
values if you request it in writing. We may charge a fee of up to $25
for preparing the illustration.
TAX CONSEQUENCES OF THE POLICY. If your policy was issued in a
standard premium class, then we believe that it qualifies as a life
insurance contract for Federal income tax purposes. Similarly, if your
policy was issued on a guaranteed issue or simplified issue basis, we
believe that it will qualify as a life insurance contract. However, if
the policy was issued on a substandard basis, it is not clear whether
it will qualify as a life insurance contract for tax purposes. The IRS
has provided very limited guidance in this area.
Assuming that the policy does qualify as a life insurance contract for
Federal income tax purposes, then we believe that the cash value should
be subject to the same tax treatment as the cash value of a
conventional fixed-benefit contract. This means that growth in the
cash value will not be taxed until you receive a distribution.
There are some actions that may trigger a tax. If you transfer
ownership to someone else, or if you surrender the policy or withdraw
cash from it, you may have to pay a tax. Similarly, if you let the
policy lapse while there is an outstanding loan, or if you exchange the
policy for another policy, you may owe a tax. (See Federal Tax
Matters.)
If you pay too much in premium, your policy may become a "modified
endowment contract." If that happens, then some pre-death
distributions of cash will be taxable income. If there is more cash
value in the policy that what you actually paid in premiums, you will
taxed on the excess in the year in which you receive a distribution.
You may withdraw the amount that you paid into the policy without being
taxed, but only after you have received the excess as taxable income.
In addition, any taxable distribution that you receive before age 591/2
will generally be subject to an additional 10% tax.
On the other hand, if the policy is not a modified endowment contract,
then distributions are normally treated first as a return of your "cost
basis," or investment in the contract. In this case, you may
10
<PAGE>
<PAGE>
withdraw up to the amount of the premiums you paid with no tax
consequences. After that, any additional distributions are treated as
taxable income. In addition, loans from the policy are not treated as
distributions, so they are not considered taxable income. Finally, if
you policy is not a modified endowment contract, neither distributions
or loans are subject to the 10% additional tax (See Federal Tax Matters.)
Please note that General American is neither a law firm nor a tax
adviser, so we cannot give you legal or tax advice. If you have
specific legal or tax questions, we suggest that you consult a
qualified professional in these fields.
DIVIDENDS. We do not expect to pay dividends on this Policy. (See
Dividends.)
* * *
This Prospectus describes only those aspects of the Policy that relate
to the Separate Account, except where General Account matters are
specifically mentioned. For a brief summary of the aspects of the
Policy relating to the General Account, see The General Account.
11
<PAGE>
<PAGE>
DEFINITIONS
ATTAINED AGE - The Issue Age of the Insured plus the number of
completed Policy Years.
BENEFICIARY - The person(s) named in the application or by later
designation to receive Policy proceeds in the event of the Insured's
death. A Beneficiary may be changed as set forth in the Policy and
this Prospectus.
CASH VALUE - The total amount that a Policy provides for investment at
any time. It is equal to the total of the amounts credited to the
Owner in the Separate Account and the General Account, including the
Loan Account.
CASH SURRENDER VALUE - The Cash Value of a Policy on the date of
surrender, less any Indebtedness, and less any surrender charges.
DIVISION - A subaccount of the Separate Account. Each Division invests
exclusively in the shares of a corresponding Fund of either General
American Capital Company, Russell Insurance Funds, American Century
Variable Portfolios, J.P. Morgan Series Trust II, Variable Insurance
Products Fund, Variable Insurance Products Fund II, or Van Eck
Worldwide Insurance Trust.
EFFECTIVE DATE - The date as of which insurance coverage begins under a
policy.
FACE AMOUNT - The minimum death benefit under the Policy so long as the
Policy remains in force.
FUND - A separate investment portfolio of General American Capital
Company, Russell Insurance Funds, American Century Variable Portfolios,
J.P. Morgan Series Trust II, Variable Insurance Products Fund, Variable
Insurance Products Fund II, or Van Eck Worldwide Insurance Trust.
Although sometimes referred to elsewhere as "portfolios," they are
referred to in this prospectus as "Funds," except where "Portfolio" is
part of their name.
GENERAL ACCOUNT - The assets of the Company other than those allocated
to the Separate Account or any other separate account. The Loan
Account is part of the General Account.
HOME OFFICE - The service office of General American Life Insurance
Company, the mailing address of which is P.O. Box 14490, St. Louis,
Missouri 63178.
INDEBTEDNESS - The sum of all unpaid Policy Loans and accrued interest
on loans.
INSURED - The person whose life is insured under the Policy.
INVESTMENT START DATE - The date the initial premium is applied to the
General Account and/or the Divisions of the Separate Account. This
date is the later of the Issue Date or the date the initial premium is
received at General American's Home Office.
ISSUE AGE - The Insured's age at his or her nearest birthday as of the
date the Policy is issued.
ISSUE DATE - The date from which Policy Anniversaries, Policy Years,
and Policy Months are measured.
LOAN ACCOUNT - The account of the Company to which amounts securing
Policy Loans are allocated. The Loan Account is part of General
American's General Account.
LOAN SUBACCOUNT - A Loan Subaccount exists for the General Account and
for each Division of the Separate Account. Any Cash Value transferred
to the Loan Account will be allocated to the appropriate Loan
Subaccount to reflect the origin of the Cash Value. At any point in
time, the Loan Account will equal the sum of all the Loan Subaccounts.
MONTHLY ANNIVERSARY - The same date in each succeeding month as the
Issue Date except that whenever the Monthly Anniversary falls on a date
other than a Valuation Date, the Monthly Anniversary will be deemed the
next Valuation Date. If any Monthly Anniversary would be the 29th,
30th, or 31st day of a month that does not have that number of days,
then the Monthly Anniversary will be the last day of that month.
NET PREMIUM - The premium less the premium expense charges (consisting
of the sales charge and the premium tax charge).
OWNER - The Owner of a Policy, as designated in the application or as
subsequently changed.
POLICY - The flexible premium variable life insurance Policy offered by
the Company and described in this Prospectus.
POLICY ANNIVERSARY - The same date each year as the Issue Date.
POLICY MONTH - A month beginning on the Monthly Anniversary.
<PAGE>
POLICY YEAR - A period beginning on a Policy Anniversary and ending on
the day immediately preceding the next Policy Anniversary.
12
<PAGE>
<PAGE>
PORTFOLIO - see Fund.
PRO-RATA SURRENDER - A requested reduction of both the Face Amount and
the Cash Value by a given percentage.
SEC - The United States Securities and Exchange Commission.
SEPARATE ACCOUNT - General American Separate Account Eleven, a separate
investment account established by the Company to receive and invest the
Net Premiums paid under the Policy, and certain other variable life
policies, and allocated by the Owner to provide variable benefits.
TARGET PREMIUM - A premium calculated when a Policy is issued, based on
the Insured's age, sex (except in unisex policies) and risk class. The
target premium is used to calculate the first year's premium expense
charge, the contingent deferred sales charge, and agent compensation
under the Policy. (See Charges and Deductions.)
VALUATION DATE - Each day that the New York Stock Exchange is open for
trading and the Company is open for business. The Company is not open
for business the day after Thanksgiving.
VALUATION PERIOD - The period between two successive Valuation Dates,
commencing at 4:00 p.m. (Eastern Standard Time) on a Valuation Date
and ending 4:00 p.m. on the next succeeding Valuation Date.
THE COMPANY AND THE SEPARATE ACCOUNT
THE COMPANY
General American Life Insurance Company ("General American" or "the
Company") was originally incorporated as a stock company in 1933. In
1936, General American initiated a program to convert to a mutual life
insurance company. In 1997, General American's policyholders approved
a reorganization of the Company into a mutual holding company structure
under which General American became a stock company wholly owned by
GenAmerica Corporation, an intermediate stock holding company.
GenAmerica is wholly owned by General American Mutual Holding Company,
a mutual holding company organized under Missouri law.
General American Mutual Holding Company ("GAMHC") has announced that it is
developing a plan under which it would convert from a mutual company to a
publicly-held stock company. Conversion to a stock company, or
"demutualization", would be subject to policyholder and regulatory approval,
as well as the satisfaction of certain other conditions. Demutualization
would not affect General American's contractual obligations. If, and when,
GAMHC adopts a conversion plan, information about the plan will be made
available to policyholders in accordance with applicable law and regulations.
On January 28, 1999, the Board of General American Mutual Holding Company
instructed its management to develop a plan for demutualization and a
public offering of stock. Owners of variable life insurance contracts
issued by General American as of that date may be eligible for a
distribution of value in connection with such a demutualization when and
if it occurs.
General American is principally engaged in writing individual and group
life insurance policies and annuity contracts. As of December 31,
1998, it had consolidated assets of approximately $29 billion. It is
admitted to do business in 49 states, the District of Columbia, Puerto
Rico, and in ten Canadian provinces. The principal offices of General
American are located at 700 Market Street, St. Louis, Missouri 63101.
The mailing address of General American's service center ("the Home
Office") is P.O. Box 14490, St. Louis, Missouri 63178.
THE SEPARATE ACCOUNT
General American Life Insurance Company Separate Account Eleven ("the
Separate Account") was established by General American as a separate
investment account on January 24, 1985 under Missouri law. The
Separate Account will receive and invest the Net Premiums paid under
this Policy and allocated to it. In addition, the Separate Account
currently receives and invests Net Premiums for other classes of
flexible premium variable life insurance policies and might do so for
additional classes in the future.
The Separate Account has been registered with the SEC as a unit
investment trust under the Investment Company Act of 1940 ("the 1940
Act") and meets the definition of a "separate account" under Federal
securities laws. Registration with the SEC does not involve
supervision of the management or investment practices or policies of
the Separate Account or General American by the SEC.
<PAGE>
The Separate Account currently is divided into twenty-four Divisions.
Divisions invest in corresponding Funds from one of seven open-end,
diversified management investment companies: (1) General American
Capital Company, (2) Russell Insurance Funds, (3) American Century
Variable Portfolios, (4) J.P. Morgan Series Trust II, (5) Variable
Insurance Products Fund, (6) Variable Insurance Products Fund II, and
(7) Van Eck Worldwide Insurance Trust. Income and both realized and
unrealized gains or losses from the assets of each Division of the
Separate Account are credited to or charged against that Division
without regard to income, gains, or losses from any other Division of
the Separate Account or arising out of any other business General
American may conduct.
Although the assets of the Separate Account are the property of General
American, the assets in the Separate Account equal to the reserves and
other liabilities of the Separate Account are not chargeable with
liabilities arising out of any other business
13
<PAGE>
<PAGE>
which General American may conduct. The assets of the Separate Account
are available to cover the general liabilities of General American only
to the extent that the Separate Account's assets exceed its liabilities
arising under the Policies. From time to time, the Company may
transfer to its General Account any assets of the Separate Account that
exceed the reserves and the Policy liabilities of the Separate Account
(which will always be at least equal to the aggregate Policy value
allocated to the Separate Account under the Policies). Before making
any such transfers, General American will consider any possible adverse
impact the transfer may have on the Separate Account.
GENERAL AMERICAN CAPITAL COMPANY
General American Capital Company ("the Capital Company") is an open-
end, diversified management investment company which was incorporated
in Maryland on November 15, 1985, and commenced operations on October
1, 1987. Only the Funds described in this section of the Prospectus
are currently available as investment choices for this Policy even
though additional Funds may be described in the prospectus for the
Capital Company. Shares of Capital Company are currently offered to
separate accounts established by General American Life Insurance
Company and affiliates. The Capital Company's investment adviser is
Conning Asset Management Company ("the Advisor"), an indirect,
majority-owned subsidiary of General American. The adviser selects
investments for the Funds.
The investment objectives and policies of each Fund are summarized
below:
S&P 500 INDEX FUND: The investment objective of this Fund is to
provide investment results that parallel the price and yield
performance of publicly-traded common stocks in the aggregate.
The Fund uses the Standard & Poor's Composite Index of 500 Stocks
("the S&P Index") as its standard for performance comparison.
The Fund attempts to duplicate the performance of the S&P Index
and includes dividend income as a component of the Fund's total
return. The Fund is not managed by Standard & Poor's.
THE MONEY MARKET FUND: The investment objective of the Money
Market Fund is to obtain the highest level of current income
which is consistent with the preservation of capital and
maintenance of liquidity. The Fund invests primarily in
high-quality, short-term money market instruments. An investment
in the Money Market Fund is neither insured nor guaranteed by the
U. S. Government.
BOND INDEX FUND: The investment objective of this Fund is to
provide a rate of return that reflects the performance of the
publicly-traded bond market as a whole. The Fund uses the Lehman
Brothers Government/Corporate Bond Index as its standard for
performance comparison.
MANAGED EQUITY FUND: The investment objective of this Fund is
long-term growth of capital, obtained by investing primarily in
common stocks. Securing moderate current income is a secondary
objective.
ASSET ALLOCATION FUND: The investment objective of this Fund is a
high rate of long-term total return composed of capital growth
and income payments. Preservation of capital is the secondary
objective and chief limit on investment risk. The Fund will
invest only in those types of securities that the other Capital
Company Funds may invest in. The Asset Allocation Fund invests in
a combination of common stocks, bonds, or money market instruments
in accordance with guidelines established from time to time by
Capital Company's Board of Directors.
INTERNATIONAL INDEX FUND: The investment objective of this Fund is
to obtain investment results that parallel the price and yield
performance of publicly-traded common stocks in the Morgan Stanley
Capital International ("MSCI") Europe, Australia and Far East
Index ("EAFE").
MID-CAP EQUITY FUND: The investment objective of this Fund is
capital appreciation. It pursues this objective by investing
primarily in common stocks of United States-based, publicly traded
companies with medium market capitalizations falling within the
capitalization range of the S&P Mid-Cap 400 at the time of the
Fund's investment.
SMALL-CAP EQUITY FUND: The investment objective of this Fund is to
provide a rate of return that corresponds to the performance of
the common stock of small companies, while incurring a level of
risk that is generally equal to the risks associated with small
company common stock. The Fund attempts to duplicate the
performance of the smallest 20% of companies, based on
capitalization size, that are based in the United States and
listed on the New York Stock Exchange ("NYSE").
14
<PAGE>
<PAGE>
RUSSELL INSURANCE FUNDS
Russell Insurance Funds ("RIF") is organized as a Massachusetts business
trust under a Master Trust Agreement dated July 11, 1996. RIF is
authorized to issue an unlimited number of shares evidencing beneficial
interests in different investment Funds, which interests may be offered
in one or more classes. RIF is a diversified open end management
investment company, commonly known as a "mutual fund." Frank Russell
Company, which is a consultant to RIF, has been primarily engaged since
1969 in providing asset management consulting services to large
corporate employee benefit funds. Major components of its consulting
services are: (i) quantitative and qualitative research and evaluation
aimed at identifying the most appropriate investment management firms to
invest large pools of assets in accord with specific investment
objectives and styles; and (ii) the development of strategies for
investing assets using "multi-style, multi-manager diversification."
This is a method for investing large pools of assets by dividing the
assets into segments to be invested using different investment styles,
and selecting money managers for each segment based upon their expertise
in that style of investment. General management of RIF is provided by
Frank Russell Investment Management Company, a wholly-owned subsidiary
of Frank Russell Company, which furnishes officers and staff required to
manage and administer RIF on a day-to-day basis.
The investment objectives and policies of each Fund are summarized
below:
MULTI-STYLE EQUITY FUND: The investment objective of this Fund is
to provide income and capital growth by investing principally in
equity securities.
AGGRESSIVE EQUITY FUND: This Fund seeks to provide capital
appreciation by assuming a higher level of volatility than is
ordinarily expected from the Multi-Style Equity Fund while still
investing in equity securities.
NON-U.S. FUND: This Fund's objective is to provide favorable total
return and additional diversification for U.S. investors by
investing primarily in equity and fixed-income securities of
non-U.S. companies, and securities issued by non-U.S.
governments.
CORE BOND FUND: This Fund's objective is to maximize total return,
through capital appreciation and income, by assuming a level of
volatility consistent with the broad fixed-income market. The
Fund invests in fixed-income securities.
AMERICAN CENTURY VARIABLE PORTFOLIOS
American Century Variable Portfolios, Inc., a part of American Century
Investments, was organized as a Maryland corporation on June 4, 1987.
It is a diversified, open-end management investment company. Its
business and affairs are managed by its officers under the Direction of
its Board of Directors. American Century Investment Management, Inc.
serves as the investment manager of the fund.
The investment objective and policies of the Funds are summarized below:
INCOME & GROWTH FUND: The investment objective of this Fund is to
attain long-term growth of capital as well as current income. The
Fund pursues a total return and dividend yield that exceed those
of the S&P 500 by investing in stocks of companies with strong
dividend growth potential. Dividends are paid monthly.
INTERNATIONAL FUND: This Fund seeks capital growth over time by
investing in common stocks of foreign companies considered to have
better-than-average prospects for appreciation. Because the Fund
invests in foreign securities, a higher degree of short-term price
volatility, or risk, is expected due to factors such as currency
fluctuation and political instability.
VALUE FUND: This Fund is a core equity fund that seeks long-term
capital growth. Income is a secondary objective. To pursue its
objectives, the fund invests primarily in equity securities of
well-established companies that are believed by management to be
undervalued at the time of purchase. Please note that this is an
equity investment and, by nature, may fluctuate in value.
J.P. MORGAN SERIES TRUST II
J.P. Morgan Series Trust II is an open-end diversified management
investment company organized as a Delaware Business Trust. The Trust's
investment adviser is J.P. Morgan Investment Management, Inc., a
registered investment adviser and a wholly owned subsidiary of J.P.
Morgan & Co., Incorporated, a bank holding company organized under the
laws of Delaware.
The investment objective and policies of the Funds are summarized below:
BOND PORTFOLIO: This Fund seeks to provide a high total return
consistent with moderate risk of capital and maintenance of
liquidity. The Fund is designed for investors who seek a total
return over time that is higher than that generally
15
<PAGE>
<PAGE>
available from a portfolio of short-term obligations while
acknowledging the greater price fluctuation of longer-term
instruments.
SMALL COMPANY PORTFOLIO: The investment objective of this Fund is
to provide high total return from a portfolio of equity securities
of small companies. The Fund invests at least 65% of the value of
its total assets in the common stock of small U.S. Companies
primarily with market capitalizations less than $1 billion. The
Fund is designed for investors who are willing to assume the
somewhat higher risk of investing in small companies in order to
seek a higher return over time than might be expected from a
portfolio of stocks of large companies.
VARIABLE INSURANCE PRODUCTS FUND
Variable Insurance Products Fund ("VIP") is an open-end, diversified
management investment company organized as a Massachusetts business
trust on November 13, 1981. Only the Funds described in this section of
the Prospectus are currently available as investment choices for this
Policy even though additional Funds may be described in the prospectus
for VIP. VIP shares are purchased by insurance companies to fund
benefits under variable insurance and annuity policies. Fidelity
Management & Research Company ("FMR") of Boston, Massachusetts is the
Funds' Manager.
The investment objectives and policies of each Fund are summarized
below:
EQUITY-INCOME PORTFOLIO: The investment objective of this Fund is
income, obtained by investing primarily in income-producing equity
securities. In choosing these securities, FMR will also consider
the potential for capital appreciation. The Fund's goal is to
achieve a yield which exceeds the composite yield on the
securities comprising the Standard & Poor's Composite Index of 500
Stocks.
GROWTH PORTFOLIO: The investment objective of this Fund is capital
appreciation. The Fund normally purchases common stocks, although
its investments are not restricted to any one type of security.
Capital appreciation may also be obtained from other types of
securities, including bonds and preferred stocks.
OVERSEAS PORTFOLIO: The investment objective of this Fund is
long-term growth of capital. The Fund invests primarily in
foreign securities. The Overseas Portfolio provides a means for
investors to diversify their own portfolios by participation in
companies and economies outside of the United States.
HIGH INCOME PORTFOLIO: The investment objective of this Fund is a
high level of current income. The Fund seeks to fulfill the
objective by investing primarily in high-yielding, lower-rated,
fixed-income securities, while also considering growth of capital.
Lower-rated securities, commonly referred to as "junk bonds,"
involve greater risk of default or price change than securities
assigned a higher quality rating.
VARIABLE INSURANCE PRODUCTS FUND II
Variable Insurance Products Fund II ("VIP II") is an open-end,
diversified management investment company organized as a Massachusetts
business trust on March 21, 1988. Only the Fund described in this
section of the Prospectus is currently available as an investment choice
for this Policy even though additional Funds may be described in the
prospectus for VIP II. VIP II shares are purchased by insurance
companies to fund benefits under variable insurance and annuity
policies. FMR is the Fund's manager.
The investment objective and policies of the Funds are summarized below:
ASSET MANAGER: The investment objective of this Fund is to seek a
high total return with reduced risk over the long-term by
allocating its assets among domestic and foreign stocks, bonds,
and short-term fixed income instruments.
VAN ECK WORLDWIDE INSURANCE TRUST
Van Eck Worldwide Insurance Trust ("Van Eck") is an open-end management
investment company organized as a Massachusetts business trust on
January 7, 1987. Only the Funds described in this section of the
Prospectus is currently available as an investment choice for this
Policy even though additional Funds may be described in the prospectus
for Van Eck. Shares of Van Eck are offered only to separate accounts of
various insurance companies to support benefits of variable insurance
and annuity policies. The assets of Van Eck are managed by Van Eck
Associates Corporation of New York, New York.
The investment objectives and policies of the Fund are summarized below:
WORLDWIDE HARD ASSETS FUND: The investment objective of the Fund
is to seek long-term capital appreciation by investing in equity
and debt securities of companies engaged in the exploration,
development, production, and distribution of one or more of the
following: (i) precious metals, (ii) ferrous and non-ferrous
16
<PAGE>
<PAGE>
metals, (iii) oil and gas, (iv) forest products, (v) real estate,
and (vi) other basic non-agricultural commodities (together, "Hard
Assets"). Current income is not an objective.
WORLDWIDE EMERGING MARKETS FUND: The investment objective of this
Fund is to obtain long-term capital appreciation by investing in
equity securities in emerging markets around the world. The Fund
emphasizes primarily investment in countries that, compared to the
world's major economies, exhibit relatively low gross national
product per capita, as well as the potential for rapid economic
growth.
THERE IS NO ASSURANCE THAT ANY OF THE FUNDS WILL ACHIEVE ITS STATED
OBJECTIVE. It is conceivable that in the future it may be
disadvantageous for Funds to offer shares to separate accounts of
various insurance companies to serve as the investment medium for their
variable products or for both variable life and annuity separate
accounts to invest simultaneously in a Fund. The Boards of Trustees of
RIF, VIP, VIP II, and Van Eck, the Boards of Directors of Capital
Company, American Century, and J.P. Morgan, the respective Advisors of
each Fund, and the Company and any other insurance companies
participating in the Funds are required to monitor events to identify
any material irreconcilable conflicts that may possibly arise, and to
determine what action, if any, should be taken in response to those
events or conflicts. A more detailed description of the Funds, their
investment policies, restrictions, risks, and charges is in the
prospectuses for each Fund, which must accompany or precede this
Prospectus and which should be read carefully.
ADDITION, DELETION, OR SUBSTITUTION OF INVESTMENTS
The Company reserves the right, subject to compliance with applicable
law, to make additions to, deletions from, or substitutions for the
shares that are held by the Separate Account or that the Separate
Account may purchase. The Company reserves the right to eliminate the
shares of any of the Funds and to substitute shares of another Fund of
Capital Company, RIF, VIP, VIP II, Van Eck, American Century, J.P.
Morgan or of another registered open-end investment company if the
shares of a Fund are no longer available for investment or if in its
judgment further investment in any Fund becomes inappropriate in view of
the purposes of the Separate Account. The Company will not substitute
any shares attributable to an Owner's interest in a Division of the
Separate Account without notice to the Owner and prior approval of the
SEC, to the extent required by the 1940 Act or other applicable law.
Nothing contained in this Prospectus shall prevent the Separate Account
from purchasing other securities for other series or classes of
policies, or from permitting a conversion between series or classes of
policies on the basis of requests made by Owners.
The Company also reserves the right to establish additional Divisions of
the Separate Account, each of which would invest in a new Fund with a
specified investment objective. New Divisions may be established when,
in the sole discretion of the Company, marketing needs or investment
conditions warrant. Any new Division will be made available to existing
Owners on a basis to be determined by the Company. To the extent
approved by the SEC, the Company may also eliminate or combine one or
more Divisions, substitute one Division for another Division, or
transfer assets between Divisions if, in its sole discretion, marketing,
tax, or investment conditions warrant.
In the event of a substitution or change, the Company may, if it
considers it necessary, make such changes in the Policy by appropriate
endorsement and offer conversion options required by law, if any. The
Company will notify all Owners of any such changes.
If deemed by the Company to be in the best interests of persons having
voting rights under the Policy, and to the extent any necessary SEC
approvals or Owner votes are obtained, the Separate Account may be: (a)
operated as a management company under the 1940 Act; (b) de-registered
under that Act in the event such registration is no longer required; or
(c) combined with other separate accounts of the Company. To the extent
permitted by applicable law, the Company may also transfer the assets of
the Separate Account associated with the Policy to another separate
account.
POLICY BENEFITS
DEATH BENEFIT
As long as the Policy remains in force (See Payment and Allocation of
Premiums - Policy Lapse and Reinstatement), the Company will, upon
receipt of proof of the Insured's death at its Home Office, pay the
death benefit in a lump sum. The amount of the death benefit payable
will be determined at the end of the Valuation Period during which the
Insured's death occurred. The death benefit will be paid to the
surviving Beneficiary or Beneficiaries specified in the application or
as subsequently changed.
The Policy provides three death benefit options: "Death Benefit Option
A," "Death Benefit Option B," and "Death Benefit Option C." The death
benefit under all options will never be less than the current Face
Amount of the Policy (less Indebtedness) as long as the Policy remains
in force. (See Payment
17
<PAGE>
<PAGE>
and Allocation of Premiums - Policy Lapse and Reinstatement.) The current
minimum Face Amount is generally $50,000.
DEATH BENEFIT OPTION A. Under Death Benefit Option A, the death benefit
until the Insured reaches Attained Age 100 is the current Face Amount of
the Policy or, if greater, the applicable percentage of Cash Value on
the date of death. At Attained Age 100 and above, the death benefit is
101% of the Cash Value. The applicable percentage is 250% for an
Insured reaching Attained Age 40 or below on the Policy Anniversary
prior to the date of death. For Insureds with an a Attained Age over 40
on that Policy Anniversary, the percentage is lower and declines with
age as shown in the Applicable Percentage of Cash Value Table shown
below. Accordingly, under Death Benefit Option A the death benefit will
remain level at the Face Amount unless the applicable percentage of Cash
Value exceeds the current Face Amount, in which case the amount of the
death benefit will vary as the Cash Value varies. (See Illustrations of
Death Benefits and Cash Values, Appendix A.)
DEATH BENEFIT OPTION B. Under Death Benefit Option B, the death benefit
until the Insured reaches Attained Age 100 is equal to the current Face
Amount plus the Cash Value of the Policy on the date of death or, if
greater, the applicable percentage of the Cash Value on the date of
death. At Attained Age 100 and above, the death benefit is 101% of the
Cash Value. The applicable percentage is the same as under Death
Benefit Option A: 250% for an Insured Attained Age 40 or below on the
Policy Anniversary prior to the date of death, and for Insureds with an
Attained Age over 40 on that Policy Anniversary the percentage declines
as shown in the Applicable Percentage of Cash Value Table shown below.
Accordingly, under Death Benefit Option B the amount of the death
benefit will always vary as the Cash Value varies (but will never be
less than the Face Amount). (See Illustrations of Death Benefits and
Cash Values, Appendix A.)
<TABLE>
- -------------------------------------------------
APPLICABLE PERCENTAGE OF CASH VALUE TABLE
FOR INSUREDS LESS THAN AGE 100<F*>
- -------------------------------------------------
<CAPTION>
Insured Person's Age Policy Account Multiple
Percentage
- -------------------------------------------------
<S> <C>
40 or under 250%
- -------------------------------------------------
45 215%
- -------------------------------------------------
50 185%
- -------------------------------------------------
55 150%
- -------------------------------------------------
60 130%
- -------------------------------------------------
65 120%
- -------------------------------------------------
70 115%
- -------------------------------------------------
78 to 90 105%
- -------------------------------------------------
95 to 99 101%
- -------------------------------------------------
<FN>
<F*>For ages that are not shown on this table, the applicable percentage
multiples will decrease by a ratable portion for each full year.
</TABLE>
DEATH BENEFIT OPTION C. Under Death Benefit Option C, the death benefit
is equal to the current Face Amount of the Policy or, if greater, the
Cash Value on the date of death multiplied by the "Attained Age factor"
(a list of sample Attained Age factors is shown in the Sample Attained
Age Factor Table below). At Attained Age 100 and above, the death
benefit is 101% of the Cash Value. Accordingly, under Death Benefit
Option C the death benefit will remain level at the Face Amount unless
the Cash Value multiplied by the Attained Age factor exceeds the current
Face Amount, in which case the amount of the death benefit will vary as
the Cash Value varies. (See Illustrations of Death Benefits and Cash
Values, Appendix A.)
<PAGE>
<TABLE>
- -----------------------------------------------------------------------
DEATH BENEFIT OPTION C
SAMPLE ATTAINED AGE FACTOR TABLE
NON-SMOKER RATES
- -----------------------------------------------------------------------
<CAPTION>
INSURED ATTAINED AGE MALE LIVES FACTOR FEMALE LIVES FACTOR
- -----------------------------------------------------------------------
<S> <C> <C>
20 7.005753 7.978495
- -----------------------------------------------------------------------
25 6.022987 6.777620
- -----------------------------------------------------------------------
30 5.118855 5.739715
- -----------------------------------------------------------------------
35 4.326687 4.852022
- -----------------------------------------------------------------------
40 3.657390 4.105161
- -----------------------------------------------------------------------
45 3.101789 3.489815
- -----------------------------------------------------------------------
50 2.642973 2.978976
- -----------------------------------------------------------------------
55 2.266395 2.555211
- -----------------------------------------------------------------------
60 1.962872 2.203321
- -----------------------------------------------------------------------
65 1.720583 1.909085
- -----------------------------------------------------------------------
70 1.531494 1.672354
- -----------------------------------------------------------------------
75 1.386501 1.480860
- -----------------------------------------------------------------------
80 1.280475 1.337304
- -----------------------------------------------------------------------
85 1.201521 1.231035
- -----------------------------------------------------------------------
90 1.145430 1.156319
- -----------------------------------------------------------------------
95 1.089164 1.090579
- -----------------------------------------------------------------------
</TABLE>
CHANGES IN DEATH BENEFIT OPTION. If the Policy was issued with either
Death Benefit Option A or Death Benefit Option B, the death benefit
option may be changed. A request for change must be made to the Company
in writing. The effective date of such a change will be the Monthly
Anniversary on or following the date the Company receives the change
request. A change in death benefit option may have Federal income tax
consequences. (See Federal Tax Matters.)
A Death Benefit Option A Policy may be changed to have Death Benefit
Option B. The Face Amount will be decreased to equal the death benefit
less the Cash Value on the effective date of change. A Death
18
<PAGE>
<PAGE>
Benefit Option B Policy may be changed to have Death Benefit Option A.
The Face Amount will be increased to equal the death benefit on the
effective date of change. A Policy issued under Death Benefit Option C
may not change to either Death Benefit Option A or Death Benefit Option
B for the entire lifetime of the Contract. Similarly, a Policy issued
under either Death Benefit Option A or B may not change to Death Benefit
Option C for the lifetime of the Policy.
Satisfactory evidence of insurability must be submitted to the Company
in connection with a request for a change from Death Benefit Option A to
Death Benefit Option B. A change may not be made if it would result in
a Face Amount of less than the minimum Face Amount.
A change in death benefit option will not in itself result in an
immediate change in the amount of a Policy's death benefit or Cash
Value. In addition, if, prior to or accompanying a change in the death
benefit option, there has been an increase in the Face Amount, the cost
of insurance charge may be different for the increased amount. (See
Monthly Deduction - Cost of Insurance.)
CHANGE IN FACE AMOUNT. Subject to certain limitations set forth below,
an Owner may increase or decrease the Face Amount of a Policy once each
Policy Year but not before the first Policy Anniversary. A written
request is required for a change in the Face Amount. A change in Face
Amount may affect the cost of insurance rate and the net amount at risk,
both of which affect an Owner's cost of insurance charge. (See Monthly
Deduction - Cost of Insurance.) A change in the Face Amount of a Policy
may have Federal income tax consequences. (See Federal Tax Matters.)
For an increase in the Face Amount, the Company requires that
satisfactory evidence of insurability be submitted. An application for
an increase must be received by the Company. If approved, the increase
will become effective as of the Monthly Anniversary on or following
receipt of the application by the Company, but not before the first
Policy Anniversary. In addition, the Insured must have an Attained Age
of not greater than 80 on the effective date of the increase. The
increase may not be less than $5,000 ($2,000 for policies issued in
qualified pension plans). Although an application for an increase need
not be accompanied by an additional premium, the Cash Surrender Value in
effect immediately after the increase must be sufficient to cover the
next monthly deduction. To the extent the Cash Surrender Value is not
sufficient, an additional premium must be paid. (See Charges and
Deductions - Monthly Deduction.) An increase in the Face Amount may
result in certain additional charges. (See Charges and Deductions -
Monthly Deduction.)
For the Owner's rights upon an increase in Face Amount, see Policy
Rights - Right to Examine Policy. Owners should consult their sales
representative before deciding whether to increase coverage by
increasing the Face Amount of a Policy.
Any decrease in the Face Amount will become effective on the Monthly
Anniversary on or following receipt of the written request by the
Company. The amount of the requested decrease must be at least $5,000
($2,000 for policies issued in qualified pension plans) and the Face
Amount remaining in force after any requested decrease may not be less
than minimum Face Amount. If following a decrease in Face Amount, the
Policy would not comply with the maximum premium limitations required by
Federal tax law (see Payment and Allocation of Premiums), the decrease
may be limited or Cash Value may be returned to the Owner (at the
Owner's election), to the extent necessary to meet these requirements.
Decreases will generally be applied to prior increases in the Face
Amount, if any, in the reverse order in which such increases occurred,
and then to the original Face Amount. This order of reduction will be
used to determine the amount of subsequent cost of insurance charges
(See Monthly Deduction - Cost of Insurance; and Charges and Deductions -
Contingent Deferred Sales Charge.)
PAYMENT OF THE DEATH BENEFIT. The death benefit under the Policy will
ordinarily be paid in a lump sum within seven days after the Company
receives all documentation required for such a payment. Payment may,
however, be postponed in certain circumstances. (See General Matters -
Postponement of Payment from the Separate Account.) The death benefit
will be increased by any unpaid dividends determined prior to the
Insured's death, and by the amount of the monthly cost of insurance for
the portion of the month from the date of death to the end of the month,
and reduced by any outstanding Indebtedness. (See General Matters -
Additional Insurance Benefits, Dividends, and Charges and Deductions.)
The Company will pay interest on the death benefit from the date of the
Insured's death to the date of payment. Interest will be at an annual
rate determined by the Company, but will never be less than the
guaranteed rate of 4%. Provisions for settlement of proceeds other than
a lump sum payment may only be made upon written agreement with the
Company.
CASH VALUE
The Cash Value of the Policy is equal to the total of the amounts
credited to the Owner in the Separate Account, the Loan Account
(securing Policy Loans),
19
<PAGE>
<PAGE>
and, in certain contracts, the General Account. The Policy's Cash Value
in the Separate Account will reflect the investment performance of the
chosen Divisions of the Separate Account as measured by each Division's
Net Investment Factor (defined below), the frequency and amount of Net
Premiums paid, transfers, partial withdrawals, loans and the charges
assessed in connection with the Policy. An Owner may at any time
surrender the Policy and receive the Policy's Cash Surrender Value.
(See Policy Rights - Surrender, Partial Withdrawals, and Pro-Rata
Surrender.) The Policy's Cash Value in the Separate Account equals the
sum of the Policy's Cash Values in each Division. There is no
guaranteed minimum Cash Value.
DETERMINATION OF CASH VALUE. For each Division of the Separate Account,
the Cash Value is determined on each Valuation Date. On the Investment
Start Date, the Cash Value in a Division will equal the portion of any
Net Premium allocated to the Division, reduced by the portion allocated
to that Division of the monthly deduction(s) due from the Issue Date
through the Investment Start Date. (See Payment and Allocation of
Premiums.) Thereafter, on each Valuation Date, the Cash Value in a
Division of the Separate Account will equal:
(1) The Cash Value in the Division on the preceding Valuation
Date, multiplied by the Division's Net Investment Factor (defined
below) for the current Valuation Period; plus
(2) Any Net Premium payments received during the current
Valuation Period which are allocated to the Division; plus
(3) Any loan repayments allocated to the Division during the
current Valuation Period; plus
(4) Any amounts transferred to the Division from the General
Account or from another Division during the current Valuation
Period; plus
(5) That portion of the interest credited on outstanding loans
which is allocated to the Division during the current Valuation
Period; minus
(6) Any amounts transferred from the Division to the General
Account, Loan Account, or to another Division during the current
Valuation Period (including any transfer charges); minus
(7) Any partial withdrawals from the Division during the current
Valuation Period; minus
(8) Any withdrawal due to a Pro-Rata Surrender from the Division
during the current Valuation Period; minus
(9) Any withdrawal or surrender charges incurred during the
current Valuation Period attributed to the Division in connection
with a partial withdrawal or Pro-Rata Surrender; minus
(10) If a Monthly Anniversary occurs during the current
Valuation Period, the portion of the monthly deduction allocated
to the Division during the current Valuation Period to cover the
Policy Month which starts during that Valuation Period (See
Charges and Deductions.); plus
(11) If a Policy Anniversary occurs during the current Valuation
Period, the portion of the dividend paid, if any, allocated to the
Division.
NET INVESTMENT FACTOR: The Net Investment Factor measures the
investment performance of a Division during a Valuation Period. The Net
Investment Factor for each Division for a Valuation period is calculated
as follows:
(1) The value of the assets at the end of the preceding
Valuation Period; plus
(2) The investment income and capital gains, realized or
unrealized, credited to the assets in the Valuation Period for
which the Net Investment Factor is being determined; minus
(3) The capital losses, realized or unrealized, charged against
those assets during the Valuation Period; minus
(4) Any amount charged against each Division for taxes,
including any tax or other economic burden resulting from the
application of the tax laws determined by the Company to be
properly attributable to the Divisions of the Separate Account, or
any amount set aside during the Valuation Period as a reserve for
taxes attributable to the operation or maintenance of each
Division; minus
<PAGE>
(5) A charge equal to a percentage of the average net assets for
each day in the Valuation Period. This charge, for mortality and
expense risks, is determined by the length of time the policy has
been in force. It will not exceed the amounts shown in the
following table:
<TABLE>
<CAPTION>
Policy Percentage of Effective
Years Avg. Net Assets Annual Rate
<S> <C> <C>
1-10 0.0015027 0.55%
11-20 0.0012301 0.45%
21+ 0.0009572 0.35%;
</TABLE>
20
<PAGE>
<PAGE>
divided by
(6) The value of the assets at the end of the preceding
Valuation Period.
POLICY RIGHTS
LOANS
LOAN PRIVILEGES. The Owner may, by written request to General American,
borrow an amount up to the Loan Value of the Policy, with the Policy
serving as sole security for such loan. A loan taken from, or secured
by, a Policy may have Federal income tax consequences. (See Federal Tax
Matters.)
The Loan Value is the Cash Value of the Policy on the date the loan
request is received, less interest to the next loan interest due date,
less anticipated monthly deductions to the next loan interest due date,
less any existing loan, less any surrender charge, plus interest
expected to be earned on the loan balance to the next loan interest due
date. Policy Loan interest is payable on each Policy Anniversary.
The minimum amount that may be borrowed is $500. The loan may be
completely or partially repaid at any time while the Insured is living.
Any amount due to an Owner under a Policy Loan ordinarily will be paid
within seven days after General American receives the loan request at
its Home Office, although payments may be postponed under certain
circumstances. (See General Matters-Postponement of Payments from the
Separate Account.)
When a Policy Loan is made, Cash Value equal to the amount of the loan
plus interest due will be transferred to the Loan Account as security
for the loan. A Loan Subaccount exists within the Loan Account for the
General Account and each Division of the Separate Account. Amounts
transferred to the Loan Account to secure Indebtedness are allocated to
the appropriate Loan Subaccount to reflect its origin. Unless the Owner
requests a different allocation, amounts will be transferred from the
Divisions of the Separate Account and the General Account in the same
proportion that the Policy's Cash Value in each Division and the General
Account, if any, bears to the Policy's total Cash Value, less the Cash
Value in the Loan Account, at the end of the Valuation Period during
which the request for a Policy Loan is received. This will reduce the
Policy's Cash Value in the General Account and Separate Account. These
transactions will not be considered transfers for purposes of the
limitations on transfers between Divisions or to or from the General
Account.
Cash Value in the Loan Account is expected to earn interest at a rate
("the earnings rate") which is lower than the rate charged on the Policy
Loan ("the borrowing rate"). Cash Value in the Loan Account will accrue
interest daily at an annual earnings rate of 4%.
Interest credited on the Cash Value held in the Loan Account will be
allocated on Policy Anniversaries to the General Account and the
Divisions of the Separate Account in the same proportion that the Cash
Value in each Loan Subaccount bears to the Cash Value in the Loan
Account. The interest credited will also be transferred: (1) when a new
loan is made; (2) when a loan is partially or fully repaid; and (3) when
an amount is needed to meet a monthly deduction.
INTEREST CHARGED. The borrowing rate we charge for Policy Loan interest
will be based on the following schedule:
<TABLE>
<CAPTION>
FOR LOANS ANNUAL
OUTSTANDING DURING INTEREST RATE
<S> <C>
Policy Years 1-10 4.50%
Policy Years 11-20 4.25%
Policy Years 21+ 4.15%
</TABLE>
General American will inform the Owner of the current borrowing rate
when a Policy Loan is requested.
Policy Loan interest is due and payable annually on each Policy
Anniversary. If the Owner does not pay the interest when it is due, the
unpaid loan interest will be added to the outstanding Indebtedness as of
the due date and will be charged interest at the same rate as the rest
of the Indebtedness. (See Effect of Policy Loans below.) The amount of
Policy Loan interest which is transferred to the Loan Account will be
deducted from the Divisions of the Separate Account and from the General
Account in the same proportion that the portion of the Cash Value in
each Division and in the General Account, respectively, bears to the
total Cash Value of the Policy minus the Cash Value in the Loan Account.
EFFECT OF POLICY LOANS. Whether or not a Policy Loan is repaid, it will
permanently affect the Cash Value of a Policy, and may permanently
affect the amount of the death benefit. The collateral for the loan
(the amount held in the Loan Account) does not participate in the
performance of the Separate Account while the loan is outstanding. If
the Loan Account earnings rate is less than the investment performance
of the selected Division(s), the Cash Value of the Policy will be lower
as a result of the Policy Loan. Conversely, if the Loan Account
earnings rate is higher than the investment performance of the
Division(s), the Cash Value may be higher.
21
<PAGE>
<PAGE>
In addition, if the Indebtedness (See Definitions) exceeds the Cash
Value minus the surrender charge on any Monthly Anniversary, the Policy
will lapse, subject to a grace period. (See Payment and Allocation of
Premiums - Policy Lapse and Reinstatement.) A sufficient payment must
be made within the later of the grace period of 62 days from the Monthly
Anniversary immediately before the date Indebtedness exceeds the Cash
Value less any surrender charges, or 31 days after notice that a Policy
will terminate unless a sufficient payment has been mailed, or the
Policy will lapse and terminate without value. A lapsed Policy,
however, may later be reinstated subject to certain limitations. (See
Payment and Allocation of Premiums - Policy Lapse and Reinstatement.)
Any outstanding Indebtedness will be deducted from the proceeds payable
upon the death of the Insured or the surrender of the Policy. Upon a
complete surrender or lapse of any Policy, if the amount received plus
the amount of outstanding Indebtedness exceeds the total investment in
the Policy, the excess will generally be treated as ordinary income
subject to tax. (See Federal Tax Matters.)
REPAYMENT OF INDEBTEDNESS. A Policy Loan may be repaid in whole or in
part at any time prior to the death of the Insured and as long as a
Policy is in force. When a loan repayment is made, an amount securing
the Indebtedness in the Loan Account equal to the loan repayment will be
transferred to the Divisions of the Separate Account and the General
Account in the same proportion that the Cash Value in each Loan
Subaccount bears to Cash Value in the Loan Account. Amounts paid while
a Policy Loan is outstanding will be treated as premiums unless the
Owner requests in writing that they be treated as repayment of
Indebtedness.
SURRENDER, PARTIAL WITHDRAWALS AND PRO-RATA SURRENDER
At any time during the lifetime of the Insured and while a Policy is in
force, the Owner may surrender the Policy by sending a written request
to the Company. After the first Policy Year, an Owner may make a
partial withdrawal by sending a written request to the Company. 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
the Company's Home Office. Amounts payable from the Separate Account
upon surrender, partial withdrawal, or a Pro-Rata Surrender will
ordinarily be paid within seven days of receipt of the written request.
(See General Matters - Postponement of Payments from the Separate
Account.)
SURRENDERS. To effect a surrender, either the Policy itself must be
returned to the Company along with the request, or the request must be
accompanied by a completed affidavit of loss, which is available from
the Company. Upon surrender, the Company will pay the Cash Surrender
Value plus any unpaid dividends determined prior to surrender (See
Dividends) to the Owner in a single sum. The Cash Surrender Value
equals the Cash Value on the date of surrender, less any Indebtedness,
and less any surrender charge. (See Charges and Deductions - Contingent
Deferred Sales Charge.) The Company will determine the Cash Surrender
Value as of the date that an Owner's written request is received at the
Company's Home Office. If the request is received on a Monthly
Anniversary, the monthly deduction otherwise deductible will be included
in the amount paid. Coverage under a Policy will terminate as of the
date of surrender. The Insured must be living at the time of a
surrender. A surrender may have Federal income tax consequences. (See
Federal Tax Matters.)
PARTIAL WITHDRAWALS. After the first Policy Year, an Owner may make
partial withdrawals from the Policy's Cash Surrender Value. There is no
transaction charge for the first twelve partial withdrawals or requested
transfers in a Policy Year. General American will impose a charge of
$25 for each partial withdrawal or requested transfer in excess of
twelve in a Policy Year. A partial withdrawal may have Federal income
tax consequences. (See Federal Tax Matters.)
The minimum amount of a partial withdrawal request, net of any
applicable surrender charges, is the lesser of a) $500 from a Division
of the Separate Account, or b) the Policy's Cash Value in a Division.
(See Charges and Deductions - Contingent Deferred Sales Charge.) Partial
withdrawals made during a Policy Year may not exceed the following
limits. The maximum amount that may be withdrawn from a Division of the
Separate Account is the Policy's Cash Value net of any applicable
surrender charges in that Division. The total partial withdrawals and
transfers from the General Account over the Policy Year may not exceed a
maximum amount equal to the greatest of the following: (1) 25% of the
Cash Surrender Value in the General Account at the beginning of the
Policy Year, multiplied by the withdrawal percentage limit shown in the
policy, or (2) the previous Policy Year's maximum amount.
The Owner may allocate the amount withdrawn plus any applicable
surrender charge, subject to the above conditions, among the Divisions
of the Separate Account and the General Account. If no allocation is
specified, then the partial withdrawal will be allocated among the
Divisions of the Separate Account and the General Account in the same
22
<PAGE>
<PAGE>
proportion that the Policy's Cash Value in each Division and the General
Account bears to the total Cash Value of the Policy, less the Cash Value
in the Loan Account, on the date the request for the partial withdrawal
is received. If the limitations on withdrawals from the General Account
will not permit this proportionate allocation, the Owner will be
requested to provide an alternate allocation. (See The General
Account.)
No amount may be withdrawn that would result in there being insufficient
Cash Value to meet any surrender charge that would be payable
immediately following the withdrawal upon the surrender of the remaining
Cash Value.
The death benefit will be affected by a partial withdrawal, unless Death
Benefit Option A or Option C is in effect and the withdrawal is made
under the terms of an anniversary partial withdrawal rider. (See
General Matters - Additional Insurance Benefits.) If Death Benefit
Option A or Death Benefit Option C is in effect and the death benefit
equals the Face Amount, then a partial withdrawal will decrease the Face
Amount by an amount equal to the partial withdrawal plus the applicable
surrender charge resulting from that partial withdrawal. If the death
benefit is based on a percentage of the Cash Value, then a partial
withdrawal will decrease the Face Amount by an amount by which the
partial withdrawal plus the applicable surrender charge exceeds the
difference between the death benefit and the Face Amount. If Death
Option B is in effect, the Face Amount will not change.
The Face Amount remaining in force after a partial withdrawal may not be
less than the minimum Face Amount. Any request for a partial withdrawal
that would reduce the Face Amount below this amount will not be
implemented.
Partial withdrawals may affect the way in which the cost of insurance
charge is calculated and the amount of pure insurance protection
afforded under a Policy. (See Monthly Deduction - Cost of Insurance.)
Partial withdrawals will be applied first to reduce the initial Face
Amount and then to each increase in Face Amount in order, starting with
the first increase. The Company may change the minimum amount required
for a partial withdrawal or the number of times partial withdrawals may
be made.
PRO-RATA SURRENDER. After the first Policy Year, an Owner can make a
Pro-Rata Surrender of the Policy. The Pro-Rata Surrender will reduce
the Face Amount and the Cash Value by a percentage chosen by the Owner.
This percentage must be any whole number. A Pro-Rata Surrender may have
Federal income tax consequences. (See Federal Tax Matters.) The
percentage will be applied to the Face Amount and the Cash Value on the
Monthly Anniversary on or following our receipt of the request.
The Owner may allocate the amount of decrease in Cash Value plus any
applicable surrender charge among the Divisions of the Separate Account
and the General Account. (See Charges and Deductions - Contingent
Deferred Sales Charge.) If no allocation is specified, then the decrease
in Cash Value and any applicable surrender charge will be allocated
among the Divisions of the Separate Account and the General Account in
the same proportion that the Policy's Cash Value in each Division and
the General Account bears to the total Cash Value of the Policy, less
the Cash Value in the Loan Account, on the date the request for Pro-Rata
Surrender is received.
A Pro-Rata Surrender can not be processed if it will reduce the Face
Amount below the minimum Face Amount of the Policy. No Pro-Rata
Surrender will be processed for more Cash Surrender Value than is
available on the date of the Pro-Rata Surrender. A cash payment will be
made to the Owner for the amount of Cash Value reduction less any
applicable surrender charges.
Pro-Rata Surrenders may affect the way in which the cost of insurance
charge is calculated and the amount of the pure insurance protection
afforded under the Policy. (See Monthly Deduction - Cost of Insurance.)
Pro-Rata Surrenders will be applied to prior increases in the Face
Amount, if any, in the reverse order in which such increases occurred,
and then to the original Face Amount.
CHARGES ON SURRENDER, PARTIAL WITHDRAWALS AND PRO-RATA SURRENDER. If a
Policy is surrendered within the first ten Policy Years, the Contingent
Deferred Sales Charge will apply. (See Contingent Deferred Sales
Charge.)
A partial withdrawal or Pro-Rata Surrender may also result in a
Contingent Deferred Sales Charge. The amount of the charge assessed is
a portion of the Contingent Deferred Sales Charge that would be deducted
upon surrender or lapse. Charges are described in more detail under
Charges and Deductions - Contingent Deferred Sales Charge.
While partial withdrawals and Pro-Rata Surrenders are each methods of
reducing a Policy's Cash Value, a Pro-Rata Surrender differs from a
partial withdrawal in that a partial withdrawal does not typically have
a proportionate effect on a Policy's death benefit by reducing the
Policy's Face Amount, while a Pro-Rata Surrender does. Assuming that a
Policy's death benefit is not a percentage of the Policy's Cash Value, a
Pro-Rata Surrender will reduce the Policy's death benefit in the same
proportion that the Policy's Cash Value is reduced,
23
<PAGE>
<PAGE>
while a partial withdrawal will reduce the death benefit by one dollar
for each dollar of Cash Value withdrawn. Partial Withdrawals and Pro-
Rata Surrenders will also result in there being different cost of
insurance charges subsequently deducted. (See Monthly Deduction - Cost
of Insurance; Surrender, Partial Withdrawals and Pro-Rata Surrender -
Partial Withdrawals; and Surrenders, Partial Withdrawals, and Pro-Rata
Surrenders-Pro-Rata Surrender.)
TRANSFERS
Under General American's current practices, a Policy's Cash Value,
except amounts credited to the Loan Account, may be transferred among
the Divisions of the Separate Account and for certain contracts, between
the General Account and the Divisions. Transfers to and from the
General Account are subject to restrictions (See The General Account).
Requests for transfers from or among Divisions of the Separate Account
may be made in writing or by telephone. Transfers from or among the
Divisions of the Separate Account must be in amounts of at least $500
or, if smaller, the Policy's Cash Value in a Division. The first twelve
requested transfers or partial withdrawals per policy year will be
allowed free of charge. Thereafter, the Company will impose a charge of
$25 for each requested transfer or partial withdrawal. General American
ordinarily will make transfers and determine all values in connection
with transfers as of the end of the Valuation Period during which the
transfer request is received.
All requests received on the same Valuation Date will be considered a
single transfer request. Each transfer must meet the minimum
requirement of $500 or the entire Cash Value in a Division, whichever is
smaller. Where a single transfer request calls for more than one
transfer, and not all of the transfers would meet the minimum
requirements, General American will make those transfers that do meet
the requirements. Transfers resulting from Policy Loans will not be
counted for purposes of the limitations on the amount or frequency of
transfers allowed in each Policy Month or Policy Year.
Although General American currently intends to continue to permit
transfers for the foreseeable future, the Policy provides that General
American may at any time revoke, modify, or limit the transfer
privilege, including the minimum amount transferable, the maximum
General Account allocation percent, and the frequency of such transfers.
PORTFOLIO REBALANCING
Over time, the funds in the General Account and the Divisions of the
Separate Account will accumulate at different rates as a result of
different investment returns. The Owner may direct that from time to
time we automatically restore the balance of the Cash Value in the
General Account and in the Divisions of the Separate Account to the
percentages determined in advance. There are two methods of rebalancing
available - periodic and variance.
PERIODIC REBALANCING. Under this option the Owner elects a frequency
(monthly, quarterly, semiannually or annually), measured from the Policy
Anniversary. On each date elected, we will rebalance the funds by
generating transfers to reallocate the funds according to the investment
percentages elected.
VARIANCE REBALANCING. Under this option the Owner elects a specific
allocation percentage for the General Account and each Division of the
Separate Account. For each such account, the allocation percentage (if
not zero) must be a whole percentage and must not be less than five
percent (5%). The Owner also elects a maximum variance percentage (5%,
10%, 15%, or 20% only), and can exclude specific funds from being
rebalanced. On each Monthly Anniversary we will review the current fund
balances to determine whether any fund balance is outside of the
variance range (either above or below) as a percentage of the specified
allocation percentage for that fund. If any fund is outside of the
variance range, we will generate transfers to rebalance all of the
specified funds back to the predetermined percentages.
Owners should consider that portfolio rebalancing entails the transfer
of Cash Value from better performing portfolios to lesser performing
portfolios.
Transfers resulting from portfolio rebalancing will not be counted
against the total number of transfers allowed in a Policy Year before a
charge is applied.
The Owner may elect either form of portfolio rebalancing by specifying
it on the policy application, or may elect it later for an in-force
Policy, or may cancel it, by submitting a change form acceptable to
General American under its administrative rules.
Only one form of portfolio rebalancing may be elected at any one time,
and portfolio rebalancing may not be used in conjunction with dollar
cost averaging (see below).
General American reserves the right to suspend portfolio rebalancing at
any time on any class of Policies on a nondiscriminatory basis, or to
charge an administrative fee for election changes in excess of a
24
<PAGE>
<PAGE>
specified number in a Policy Year in accordance with its administrative
rules.
DOLLAR COST AVERAGING
The Owner may direct the Company to transfer amounts on a monthly basis
from the Money Market Fund to any other Division of the Separate
Account. This service is intended to allow the Owner to utilize "dollar
cost averaging" ("DCA"), a long-term investment technique which provides
for regular, level investments over time. The Company makes no
guarantee that DCA will result in a profit or protect against loss.
The following rules and restrictions apply to DCA transfers:
(1) The minimum DCA transfer amount is $100.
(2) A written election of the DCA service, on a form provided by
the Company, must be completed by the Owner and on file with the
Company in order to begin DCA transfers.
(3) In the written election of the DCA service, the Owner
indicates how DCA transfers are to be allocated among the
Divisions of the Separate Account. For any Division chosen to
receive DCA transfers, the minimum percentage that may be
allocated to a Division is 5% of the DCA transfer amount, and
fractional percentages may not be used.
(4) DCA transfers can only be made from the Money Market Fund,
and DCA transfers will not be allowed to the General Account.
(5) The DCA transfers will not count against the Policy's normal
transfer restrictions. (See Policy Rights -- Transfers.)
(6) The DCA transfer percentages may differ from the allocation
percentages the Owner specifies for the allocation of Net
Premiums. (See Payment and Allocation of Premiums -- Allocation
of Net Premiums and Cash Values.)
(7) Once elected, DCA transfers from the Money Market Fund will
be processed monthly until either the value in the Money Market
Fund is completely depleted or the Owner instructs the Company in
writing to cancel the DCA service.
(8) Transfers as a result of a Policy Loan or repayment, or in
exercise of the conversion privilege, are not subject to the DCA
rules and restrictions. The DCA service terminates at the time
the conversion privilege is exercised, when any outstanding amount
in any Division of the Separate Account is immediately transferred
to the General Account. (See Policy Rights - Loans, and Policy
Rights - Conversion Privilege.)
(9) DCA transfers will not be made until the Right to Examine
Policy period has expired (See Policy Rights - Right to Examine
Policy).
The Company reserves the right to assess a processing fee for the DCA
service. The Company reserves the right to discontinue offering DCA
upon 30 days' written notice to Owners. However, any such
discontinuation will not affect DCA services already commenced. The
Company reserves the right to impose a minimum total Cash Value, less
outstanding Indebtedness, in order to qualify for DCA service. Also,
the Company reserves the right to change the minimum necessary Cash
Value and the minimum required DCA transfer amount.
Transfers made under Dollar Cost Averaging do not count against the
total of twelve requested transfers or partial withdrawals allowed
without charge in a Policy Year.
RIGHT TO EXAMINE POLICY
The Owner may cancel a Policy within 20 days after receiving it (30 days
if the Owner is a resident of California and is age 60 or older) or
within 45 days after the application was signed, whichever is later. If
a Policy is canceled within this time period, a refund will be paid.
Where required by state law, the refund will equal all premiums paid
under the Policy. Where required by state law, General American will
refund an amount equal to the greater of premiums paid or (1) plus (2)
where (1) is the difference between the premiums paid, including any
policy fees or other charges, and the amounts allocated to the Separate
Account under the Policy and (2) is the value of the amounts allocated
to the Separate Account under the Policy on the date the returned Policy
is received by General American or its agent.
To cancel the Policy, the Owner should mail or deliver the Policy to
either General American or the agent who sold it. A refund of premiums
paid by check may be delayed until the Owner's check has cleared the
bank upon which it was drawn. (See General Matters - Postponement of
Payments from the Separate Account.)
A request for an increase in Face Amount (see Policy Benefits - Death
Benefit) may also be canceled. The request for cancellation must be
made within the later of 20 days from the date the Owner received the
new Policy specifications page for the increase, or 45 days after the
application for the increase was signed.
25
<PAGE>
<PAGE>
DEATH BENEFIT AT ATTAINED AGE 100
If the Insured is living and the Policy is in force when the Insured
reaches Attained Age 100, the death benefit will be equal to 101% of
the Cash Value of the Policy unless the Lifetime Coverage Rider is in
effect. (See Additional Insurance Benefits.) At that point, no further
premium payments will be required or accepted, and no further monthly
deductions will be taken to cover the cost of insurance.
PAYMENT AND ALLOCATION OF PREMIUMS
ISSUANCE OF A POLICY
Individuals wishing to purchase a Policy must complete an application
and submit it to an authorized registered agent of General American or
to General American's Home Office. A Policy will generally be issued to
Insureds of Issue Ages 0 through 85 for regularly underwritten
contracts, and to Insureds of Issue Ages 20 through 70 for Policies
issued in qualified pension plans, for guaranteed issue contracts and,
should they become available in the future, for simplified issue
contracts. General American may, in its sole discretion, issue Policies
to individuals falling outside of those Issue Ages. Acceptance of an
application is subject to General American's underwriting rules and
General American reserves the right to reject an application for any
reason.
The Issue Date is determined by General American in accordance with its
standard underwriting procedures for variable life insurance policies.
The Issue Date is used to determine Policy Anniversaries, Policy Years,
and Policy Months. Insurance coverages under a Policy will not take
effect until the Policy has been delivered and the initial premium has
been paid prior to the Insured's death and prior to any change in health
as shown in the application.
PREMIUMS
The initial premium is due on the Issue Date, and may be paid to an
authorized registered agent of General American or to General American
at its Home Office. General American currently requires that the
initial premium for a Policy be at least equal to one-twelfth (1/12) of
the Minimum Premium for the Policy. The Minimum Premium is the amount
specified for each Policy based on the requested initial Face Amount and
the charges under the Policy which vary according to the Issue Age, sex,
underwriting risk class, and smoker status of the Insured. (See Charges
and Deductions.) For policies issued as a result of a term conversion
from certain General American term policies, the Company requires the
Owner to pay an initial premium, which combined with conversion credits
given, if any, will equal one full "Minimum Premium" for the Policy.
Following the initial premium, subject to the limitations described
below, premiums may be paid in any amount and at any interval. Premiums
after the first premium payment must be paid to General American at its
Home Office. An Owner may establish a schedule of planned premiums
which will be billed by the Company at regular intervals. Failure to
pay planned premiums, however, will not itself cause the Policy to
lapse. (See Policy Lapse and Reinstatement.) Premium receipts will be
furnished upon request.
An Owner may make unscheduled premium payments at any time in any
amount, or skip planned premium payments, subject to the minimum and
maximum premium limitations described below.
If a Policy is in the intended Owner's possession but the initial
premium has not been paid, the Policy is not in force. The intended
Owner is deemed to have the Policy for inspection only.
PREMIUM LIMITATIONS. Every premium payment must be at least $10. In no
event may the total of all premiums paid in any Policy Year exceed the
current maximum premium limitations for that Policy Year. Maximum
premium limits for the Policy Year will be shown in an Owner's annual
report.
In general, for policies issued with Death Benefit Option A or Death
Benefit Option B, the maximum premium limit for a Policy Year is the
largest amount of premium that can be paid in that Policy Year such that
the sum of the premiums paid under the Policy will not at any time
exceed the guideline premium limitations needed to comply with the tax
definition of life insurance. For policies issued with Death Benefit
Option C, the company reserves the right to impose other restrictions
upon the amount of premium that may be paid into the Policy. If at any
time a premium is paid which would result in total premiums exceeding
the current maximum premium limitations, the Company will only accept
that portion of the premium which will make total premiums equal the
maximum. Any part of the premium in excess of that amount will be
returned or applied as otherwise agreed, and no further premiums will be
accepted until allowed under the current maximum premium limitations.
In addition to the foregoing tax definitional limits on premiums, for
purposes of determining whether distributions (including loans) are a
return of income first, the Company monitors the Policy to detect
whether the "seven pay limit" has been exceeded. If the seven pay limit
is exceeded, the Policy becomes a
26
<PAGE>
<PAGE>
"Modified Endowment". The Company has adopted administrative steps
designed to notify an Owner when it is believed that a premium payment
will cause a Policy to become a modified endowment contract. The Owner
will be given a limited amount of time to request that the premium be
reversed in order to avoid the Policy's being classified as a modified
endowment contract. (See Federal Tax Matters.)
If the Company receives a premium payment which would cause the death
benefit to increase by an amount that exceeds the Net Premium portion of
the payment, then the Company reserves the right to (1) refuse that
premium payment, or (2) require additional evidence of insurability
before it accepts the premium.
ALLOCATION OF NET PREMIUMS AND CASH VALUE
ALLOCATION OF NET PREMIUMS. In the application for a Policy, the Owner
indicates how Net Premiums are to be allocated among the Divisions of
the Separate Account, to the General Account (if available), or both.
For each Division chosen, the minimum percentage that may be allocated
to a Division is 5% of the Net Premium, and fractional percentages may
not be used. Certain other restrictions apply to allocations made to
the General Account (see General Account). For policies issued with an
allowable percentage to the General Account of more than 5%, the minimum
percentage is 5%, and fractional percentages may not be used.
The allocation for future Net Premiums may be changed without charge at
any time by providing notice to the Company. Any change in allocation
will take effect immediately upon receipt by the Company of written
notice. No charge is imposed for changing the allocations of future
premiums. The initial allocation will be shown on the application which
is attached to the Policy. The Company may at any time modify the
maximum percentage of future Net Premiums that may be allocated to the
General Account.
During the period from the Issue Date to the end of the Right to Examine
Policy Period (See Policy Rights - Right to Examine Policy), Net
Premiums will automatically be allocated to the Division that invests in
the Money Market Fund of Capital Company. When this period expires, the
Policy's Cash Value in that Division will be transferred to the
Divisions of the Separate Account and to the General Account (if
available) in accordance with the allocation requested in the
application for the Policy, or any allocation instructions received
subsequent to receipt of the application. Net Premiums received after
the Right to Examine Policy Period will be allocated according to the
allocation instructions most recently received by the Company unless
otherwise instructed for that particular premium receipt.
The Policy's Cash Value may also be transferred between Divisions of the
Separate Account, and, if the General Account is available under the
Policy, between those Divisions and the General Account. (See Policy
Rights - Transfers.)
The value of amounts allocated to Divisions of the Separate Account will
vary with the investment performance of the chosen Divisions and the
Owner bears the entire investment risk. This will affect the Policy's
Cash Value, and may affect the death benefit as well. Owners should
periodically review their allocations of Net Premiums and the Policy's
Cash Value in light of market conditions and their overall financial
planning requirements.
POLICY LAPSE AND REINSTATEMENT
LAPSE. Unlike conventional whole life insurance policies, the failure
to make a premium payment following the initial premium will not itself
cause a Policy to lapse. If, during the first five Policy Years, the
sum of all premiums paid on the Policy, reduced by any partial
withdrawals and any outstanding loan balance, is greater than or equal
to the sum of the No Lapse Monthly Premiums for the elapsed months since
the Issue Date, the Policy will not lapse as a result of the Cash Value
less any loans, loan interest due, and any surrender charge being
insufficient to pay the monthly deduction. Lapse will occur (except as
described above) when the Cash Surrender Value is insufficient to cover
the monthly deduction, and a grace period expires without a sufficient
payment being made.
The grace period, which is 62 days, begins on the Monthly Anniversary on
which the Cash Surrender Value becomes insufficient to meet the next
monthly deduction. The Company will notify the Owner at the beginning
of the grace period by mail addressed to the last known address on file
with the Company. The notice to the Owner will indicate the amount of
additional premium that must be paid. The amount of the premium
required to keep the Policy in force will be the amount to cover the
outstanding monthly deductions and premium expense charges. (See
Charges and Deductions - Monthly Deduction.) If the Company does not
receive the required amount within the grace period, the Policy will
lapse and terminate without Cash Value.
If the Insured dies during the grace period, any overdue monthly
deductions will be deducted from the death benefit otherwise payable.
REINSTATEMENT. The Owner may reinstate a lapsed Policy by written
application any time within five
27
<PAGE>
<PAGE>
years after the date of lapse and before the Insured's Attained Age 100.
Reinstatement is subject to the following conditions:
1. Evidence of the insurability of the Insured satisfactory to
the Company (including evidence of insurability of any person
covered by a rider to reinstate the rider).
2. Payment of a premium that, after the deduction of premium
expense charges, is large enough to cover: (a) the monthly
deductions due at the time of lapse, and (b) two times the monthly
deduction due at the time of reinstatement.
3. Payment or reinstatement of any Indebtedness. Any
Indebtedness reinstated will cause Cash Value of an equal amount
also to be reinstated. Any loan interest due and unpaid on the
Policy Anniversary prior to reinstatement must be repaid at the
time of reinstatement. Any loan paid at the time of reinstatement
will cause an increase in Cash Value equal to the amount to be
reinstated.
The Policy cannot be reinstated if it has been surrendered.
The amount of Cash Value on the date of reinstatement will be equal to
the amount of any Policy Loan reinstated, increased by the Net Premiums
paid at reinstatement, any Policy Loan paid at the time of
reinstatement, and the amount of any surrender charge paid at the time
of lapse.
The Insured must be alive on the date the Company approves the
application for reinstatement. If the Insured is not then alive, such
approval is void and of no effect.
The effective date of reinstatement will be the date the Company
approves the application for reinstatement. There will be a full
monthly deduction for the Policy Month which includes that date. (See
Charges and Deductions-Monthly Deduction.)
The surrender charge in effect at the time of reinstatement will equal
the surrender charge in effect at the time of lapse.
CHARGES AND DEDUCTIONS
Charges will be deducted in connection with the Policy to compensate the
Company for providing the insurance benefits set forth in the Policy and
any additional benefits added by rider, administering the Policies,
incurring expenses in distributing the Policies, and assuming certain
risks in connection with the Policy.
PREMIUM EXPENSE CHARGES
Prior to allocation of Net Premiums, premium payments will be reduced by
premium expense charges consisting of a sales charge and a charge for
premium taxes. The premium payment less the premium expense charge
equals the Net Premium.
SALES CHARGE. A sales charge will be deducted from each premium payment
to partially compensate the Company for expenses incurred in
distributing the Policy and any additional benefits provided by riders.
The Company currently intends to deduct a sales charge determined
according to the following schedule:
Policy Year 1 15% of premium up to Target
5% of premium above Target
Policy Years 2-10 5% of all premium paid
Policy Years 11+ 2% of all premium paid
For policies issued in the state of Oregon, the amounts shown above are
increased by 2%. Consistent with the requirements of the Texas non-
forfeiture laws, the guaranteed sales charge varies for policies issued
in Texas. As of the date of this prospectus, the current sales charge
for Texas policies is the same as shown above.
The expenses covered by the sales charge include agent sales
commissions, the cost of printing Prospectuses and sales literature, and
any advertising costs. Where Policies are issued to Insureds with
higher mortality risks or to Insureds who have selected additional
insurance benefits, a portion of the amount deducted for sales charge is
used to pay distribution expenses and other costs associated with these
additional coverages. No increase in this sales charge will occur that
would result in an increase in the sales charge percentage deducted in
any previous Policy year.
A Contingent Deferred Sales Charge is also imposed under certain
circumstances for expenses incurred in distributing the Policies. That
charge is discussed below.
To the extent that sales expenses are not recovered from the sales
charge and the surrender charge, those expenses may be recovered from
other sources, including the mortality and expense risk charge described
below.
PREMIUM TAXES. Various states or other governing jurisdictions and
their subdivisions impose a tax on premiums received by insurance
companies. Premium taxes vary by jurisdiction. A deduction equal to
the amount of the actual premium tax (if any) is taken from each premium
payment for these
28
<PAGE>
taxes. The deduction allows the Company to pass through the amount of
the taxes imposed on the policy by the state or other governing
jurisdiction and any subdivisions thereof. State premium taxes
currently range from 0% to 3.5% (4% in Puerto Rico), with an average of
approximately 2.1%.
FEDERAL TAX CHARGE. This charge is designed to pass through the
equivalent of the federal tax consequences applicable to the policy.
The charge is currently 1.3% of premium paid, and is guaranteed not to
increase except to the extent of any increases in the federal tax
MONTHLY DEDUCTION
Charges will be deducted monthly from the Cash Value of each Policy
("the monthly deduction") to compensate the Company for (a) certain
administrative costs; (b) the cost of insurance; and (c) the cost of
optional benefits added by rider. The monthly deduction will be taken
on the Investment Start Date and on each Monthly Anniversary. It will
be allocated among the General Account and each Division of the Separate
Account in the same proportion that a Policy's Cash Value in the General
Account and the Policy's Cash Value in each Division bear to the total
Cash Value of the Policy, less the Cash Value in the Loan Account, on
the date the deduction is taken. Because portions of the monthly
deduction, such as the cost of insurance, can vary from month to month,
the monthly deduction itself can vary in amount from month to month.
SELECTION AND ISSUE EXPENSE CHARGE. During the first ten Policy Years,
and during the first ten Policy Years following an increase in Face
Amount, the Company generally assesses a monthly charge to cover the
costs associated with the underwriting and issue of the policy or the
increase. The monthly charge per $1,000 of face amount ranges from
approximately 4 cents to 65 cents, and varies by issue age, risk class,
and (except on unisex Policies) sex of the Insured. The duration of the
guaranteed charges varies for policies issued in Texas to ensure
compliance with the Texas non-forfeiture laws. On a current basis, as
of the date of this prospectus, the duration is the same as described
above.
MONTHLY ADMINISTRATIVE CHARGE. The Company has responsibility for the
administration of the Policies and the Separate Account. Administrative
expenses include premium billing and collection, record keeping,
processing death benefit claims, cash surrenders, partial withdrawals,
Policy changes, and reporting and overhead costs, processing
applications, and establishing Policy records. As reimbursement for
administrative expenses related to the maintenance of each Policy and
the Separate Account, the Company assesses a monthly administration
charge from each Policy. This charge is generally $25 per month in the
first Policy Year, and $6 per month for all Policy Years thereafter, and
is guaranteed not to increase while the Policy is in force.
The Company may administer the Policy itself, or may purchase
administrative services from such sources (including affiliates) as may
be available. Such services will be acquired on a basis which, in the
Company's sole discretion, affords the best services at the lowest cost.
The Company reserves the right to select a company to provide services
which the Company deems, in its sole discretion, is the best able to
perform such services in a satisfactory manner even though the costs for
such services may be higher than would prevail elsewhere.
COST OF INSURANCE. The cost of insurance is deducted on each Monthly
Anniversary for the following Policy Month. Because the cost of
insurance depends upon a number of variables, the cost will vary for
each Policy Month. The cost of insurance is determined separately for
the initial Face Amount and for any subsequent increases in Face Amount.
The Company will determine the cost of insurance charge by multiplying
the applicable cost of insurance rate or rates by the net amount at risk
(defined below) for each Policy Month.
The cost of insurance rates are determined at the beginning of each
Policy Year for the initial Face Amount and each increase in Face
Amount. The rates will be based on the Attained Age, duration, rate
class, and (except for unisex Policies) sex of the Insured at issue or
the date of an increase in Face Amount. (See Unisex Requirements Under
Montana Law.) The cost of insurance rates generally increase as the
Insured's Attained Age increases. The rate class of an Insured also
will affect the cost of insurance rate. For the initial Face Amount,
the Company will use the rate class on the Issue Date. For each
increase in Face Amount, other than one caused by a change in the death
benefit option, the Company will use the rate class applicable to that
increase. If the death benefit equals a percentage of Cash Value, an
increase in Cash Value will cause an automatic increase in the death
benefit. The rate class for such increase will be the same as that used
for the most recent increase that required proof of insurability.
The Company currently places Insureds into a preferred rate class, a
standard rate class, or into rate classes involving a higher mortality
risk. The degree of underwriting imposed may vary from full
underwriting, to simplified issue underwriting, to guaranteed issue
underwriting.
29
<PAGE>
<PAGE>
Actual cost of insurance rates may change, and the actual monthly cost
of insurance rates will be determined by the Company based on its
expectations as to future mortality experience. However, the actual
cost of insurance rates will not be greater than the guaranteed cost of
insurance rates set forth in the Policy. For fully underwritten,
guaranteed issue and simplified issue Policies which are not in a
substandard risk class, the guaranteed cost of insurance rates are equal
to 100% of the rates set forth in the male/female smoker/non-smoker 1980
CSO Mortality Tables (1980 CSO Tables NA and SA and 1980 CSO Tables NG
and SG for sex distinct; 1980 CSO Tables NB and SB for unisex policies
issued in qualified pension plans; 1980 CSO Tables NA and SA for unisex
policies issued in compliance with Montana law), for the age nearest
birthday. Higher rates apply if the Insured is determined to be in a
substandard risk class.
In two otherwise identical Policies, an Insured in the preferred rate
class will have a lower cost of insurance than an Insured in a rate
class involving higher mortality risk. Each rate class is also divided
into two categories: smokers and nonsmokers. Nonsmoker Insureds will
generally incur a lower cost of insurance than similarly situated
Insureds who smoke. (Insureds under Attained Age 20 are automatically
assigned to the non-smoker rate class.) Policies issued with simplified
underwriting or guaranteed issue will in general incur a higher cost of
insurance than fully underwritten Policies. Guaranteed issue Policies
will in general incur the highest current or actual cost of insurance
rates.
The net amount at risk for a Policy Month is (a) the death benefit at
the beginning of the Policy Month divided by 1.0032737 (which reduces
the net amount at risk, solely for purposes of computing the cost of
insurance, by taking into account assumed monthly earnings at an annual
rate of 4%), less (b) the Cash Value at the beginning of the Policy
Month. If there is an increase in the Face Amount, a net amount at risk
will be calculated separately for the initial Face Amount and for each
increase in Face Amount. If Death Benefit Option A or Death Option C is
in effect, for purposes of determining the net amounts at risk for the
initial Face Amount and for each increase in Face Amount, Cash Value
will first be considered a part of the initial Face Amount. If the Cash
Value is greater than the initial Face Amount, the excess Cash Value
will then be considered a part of each increase in order, starting with
the first increase. If Death Benefit Option B is in effect, the net
amount at risk will be determined separately for the initial Face Amount
and for each increase in Face Amount. In calculating the cost of
insurance charges, the cost of insurance rate for a Face Amount is
applied to the net amount at risk for that Face Amount.
ADDITIONAL INSURANCE BENEFITS. The monthly deduction will include
charges for any additional benefits provided by rider. (See General
Matters - Additional Insurance Benefits.)
CONTINGENT DEFERRED SALES CHARGE ("CDSC")
For a period of up to ten years after the Issue Date, and for a period
of up to ten years following an increase in the Face Amount, the Company
will impose a CDSC upon surrender or lapse of the Policy, upon a partial
withdrawal, or upon a Pro-Rata Surrender. The amount of the charge
assessed will depend upon a number of factors, including the type of
event (a full surrender, lapse, or partial withdrawal), the amount of
any premium payments made under the Policy prior to the event, and the
number of Policy Years having elapsed since the Policy was issued.
The Contingent Deferred Sales Charge compensates the Company for
expenses relating to the distribution of the Policy, including agents'
commissions, advertising, and the printing of the Prospectus and sales
literature.
CALCULATION OF CHARGE. If a Policy is surrendered, the charge will not
exceed the Contingent Deferred Sales Charge Percentage multiplied by the
annual Target Premium attributable to the base policy or to the increase
in Face Amount.
The Contingent Deferred Sales Charge Percentage is shown in the
following table.
<TABLE>
CONTINGENT DEFERRED SALES CHARGE
PERCENTAGE TABLE
<CAPTION>
IF SURRENDER OR LAPSE THE PERCENTAGE OF THE
OCCURS IN THE LAST MONTH ANNUAL TARGET
OF POLICY YEAR: PREMIUM PAYABLE IS:
<S> <C>
1 through 5 45%
6 40%
7 30%
8 20%
9 10%
10 and later 0%
</TABLE>
In addition, the percentages are reduced equally for each Policy Month
during the years shown. For example, during the seventh year, the
percentage is reduced equally each month from 40% at the end of the
sixth Year to 30% at the end of the seventh Year. This table may be
modified if required by law or regulation of the governing jurisdiction.
<PAGE>
CHARGE ASSESSED UPON PARTIAL WITHDRAWALS OR PRO-RATA SURRENDER. The
amount of the Contingent Deferred Sales Charge deducted upon a partial
withdrawal or Pro-Rata Surrender will equal a fraction of the charge
that would be deducted if the
30
<PAGE>
<PAGE>
Policy were surrendered at that time. The fraction will be determined
by dividing the amount of the withdrawal of cash by the Cash Value
before the withdrawal and multiplying the result by the charge.
Immediately after a withdrawal, the Policy's remaining surrender charge
will equal the amount of the surrender charge immediately before the
withdrawal less the amount deducted in connection with the withdrawal.
TRANSACTION CHARGES. There are no transaction charges for processing
the first twelve transfers or partial withdrawals in a policy year.
There is a charge of $25 for each transfer or partial withdrawal in
excess of twelve.
ADJUSTMENT OF CHARGES. The Policy is available for purchase by
individuals, corporations, and other institutions. For certain
individuals and certain corporate or other group or sponsored
arrangements purchasing one or more Policies, General American may waive
or adjust the amount of the Sales Charge, Contingent Deferred Sales
Charge, monthly administrative charge, or other charges where the
expenses associated with the sale of the Policy or Policies or the
underwriting or other administrative costs associated with the Policy or
Policies warrant an adjustment.
Sales, underwriting, or other administrative expenses may be reduced for
reasons such as expected economies resulting from a corporate purchase
or a group or sponsored arrangement; from the amount of the initial
premium payment or payments; or from the amount of projected premium
payments. General American will determine in its discretion if, and in
what amount, an adjustment is appropriate. The Company may modify its
criteria for qualification for adjustment of charges as experience is
gained, subject to the limitation that such adjustments will not be
unfairly discriminatory against the interests of any Owner.
SEPARATE ACCOUNT CHARGES
MORTALITY AND EXPENSE RISK CHARGE. General American will deduct a daily
charge from the Separate Account. The amount of the deduction is
determined as a percentage of the average net assets of each Division of
the Separate Account. The daily deduction percentages, and the
equivalent effective annual rate, are:
<TABLE>
<CAPTION>
POLICY YEARS DAILY CHARGE FACTOR ANNUAL EQUIVALENT
<S> <C> <C>
1-10 .0015027% 0.55%
11-20 .0012301% 0.45%
21+ .0009572% 0.35%
</TABLE>
This deduction is guaranteed not to increase while the Policy is in
force. General American may realize a profit from this charge.
The mortality risk assumed by General American is that Insureds may die
sooner than anticipated and that therefore General American will pay an
aggregate amount of death benefits greater than anticipated. The
expense risk assumed is that expenses incurred in issuing and
administering the Policy will exceed the amounts realized from the
administrative charges assessed against the Policy.
FUND EXPENSES. The value of the net assets of the Separate Account will
reflect the investment advisory fee and other expenses incurred by the
underlying investment companies. A summary of the annual Fund operating
expenses is provided on page 14 of this prospectus. See the
prospectuses for the respective Funds for a description of investment
advisory fees and other expenses.
TAXES. No charges are currently made to the Separate Account for
Federal, state, or local taxes that the Company incurs which may be
attributable to such Separate Account or to the Policy. The Company may
make such a charge for any such taxes or economic burden resulting from
the application of the tax laws that it determines to be properly
attributable to the Separate Account or to the Policy. (See Federal Tax
Matters.)
DIVIDENDS
The Policy is issued both as a participating Policy, which provides the
Owner an ownership interest in General American Mutual Holding Company,
the parent company of General American Life Insurance Company and as a
non-participating Policy, which provides no ownership interest in
General American Mutual Holding Company or General American Life
Insurance Company. However, we do not anticipate that the Policy will
share in the divisible surplus of the Company in the form of a dividend.
THE GENERAL ACCOUNT
Because of exemptive and exclusionary provisions, interests in the
General Account have not been registered under the Securities Act of
1933 and the General Account has not been registered as an investment
company under the 1940 Act. Accordingly, neither the General Account
nor any interests therein are subject to the provisions of these Acts
and, as a result, the staff of the SEC has not reviewed the disclosure
in this Prospectus relating to the General Account. The disclosure
regarding the General Account may, however, be subject to certain
generally applicable provisions of the Federal
31
<PAGE>
<PAGE>
securities laws relating to the accuracy and completeness of statements
made in prospectuses.
GENERAL DESCRIPTION
The General Account consists of all assets owned by General American
other than those in the Separate Account and other separate accounts.
Subject to applicable law, General American has sole discretion over the
investment of the assets of the General Account.
At issue, General American will determine the maximum percentage of the
non-borrowed Cash Value that may be allocated, either initially or by
transfer, to the General Account. The ability to allocate Net Premiums
or to transfer Cash Value to the General Account may not be made
available, in the Company's discretion, under certain Policies.
Further, the option may be limited with respect to some Policies. The
Company may, from time to time, adjust the extent to which premiums or
Cash Value may be allocated to the General Account (the "maximum
allocation percentage"). Such adjustments may not be uniform as to all
Policies. General American may at any time modify the General Account
maximum allocation percent. Subject to this maximum, an Owner may elect
to allocate Net Premiums to the General Account, the Separate Account,
or both. Subject to this maximum, the Owner may also transfer Cash
Value from the Divisions of the Separate Account to the General Account,
or from the General Account to the Divisions of the Separate Account.
The allocation of Net Premiums or the transfer of Cash Value to the
General Account does not entitle an Owner to share in the investment
experience of the General Account. Instead, General American guarantees
that Cash Value allocated to the General Account will accrue interest at
a rate of at least 4%, compounded annually, independent of the actual
investment experience of the General Account.
The Loan Account is part of the General Account.
THE POLICY
This Prospectus describes a flexible premium variable life insurance
policy. This Prospectus is generally intended to serve as a disclosure
document only for the aspects of the Policy relating to the Separate
Account. For complete details regarding the General Account, see the
Policy itself.
GENERAL ACCOUNT BENEFITS
If the Owner allocates all Net Premiums only to the General Account and
makes no transfers, partial withdrawals, Pro-Rata Surrenders, or Policy
Loans, the entire investment risk will be borne by General American, and
General American guarantees that it will pay at least a minimum
specified death benefit. The Owner may select Death Benefit Option A, B
or C under the Policy and may change the Policy's Face Amount subject to
satisfactory evidence of insurability.
GENERAL ACCOUNT CASH VALUE
Net Premiums allocated to the General Account are credited to the Cash
Value. General American bears the full investment risk for these
amounts and guarantees that interest will be credited to each Owner's
Cash Value in the General Account at a rate of no less than 4% per year,
compounded annually. General American may, AT ITS SOLE DISCRETION,
credit a higher rate of interest, although it is not obligated to credit
interest in excess of 4% per year, and might not do so. ANY INTEREST
CREDITED ON THE POLICY'S CASH VALUE IN THE GENERAL ACCOUNT IN EXCESS OF
THE GUARANTEED MINIMUM RATE OF 4% PER YEAR WILL BE DETERMINED IN THE
SOLE DISCRETION OF GENERAL AMERICAN. THE POLICY OWNER ASSUMES THE RISK
THAT INTEREST CREDITED MAY NOT EXCEED THE GUARANTEED MINIMUM RATE OF 4%
PER YEAR. If excess interest is credited, a different rate of interest
may be applied to the Cash Value in the Loan Account. The Cash Value in
the General Account will be calculated on each Monthly Anniversary of
the Policy.
General American guarantees that, on each Valuation Date, the Cash Value
in the General Account will be the amount of the Net Premiums allocated
or Cash Value transferred to the General Account, plus interest at the
rate of 4% per year, plus any excess interest which General American
credits and any amounts transferred into the General Account, less the
sum of all Policy charges allocable to the General Account and any
amounts deducted from the General Account in connection with partial
withdrawals, Pro-Rata Surrenders, surrender charges or transfers to the
Separate Account.
TRANSFERS, SURRENDERS, PARTIAL WITHDRAWALS AND POLICY LOANS
After the first Policy Year, a portion of Cash Value may be withdrawn
from the General Account or transferred from the General Account to the
Separate Account. A partial withdrawal, net of any applicable surrender
charges, and any transfer must be at least $500 or, the Policy's entire
Cash Value in the General Account if less than $500. No amount may be
withdrawn from the General Account that would result in there being
insufficient Cash Value to meet any surrender charges that would be
payable
32
<PAGE>
<PAGE>
immediately following the withdrawal upon the surrender of the remaining
Cash Value of the Policy. The total amount of transfers and withdrawals
in a Policy Year may not exceed a Maximum Amount equal to the greater of
(a) 25% of a Policy's Cash Surrender Value in the General Account at the
beginning of the Policy Year, or (b) the previous Policy Year's Maximum
Amount (not to exceed the total Cash Surrender Value of the Policy).
Transfers to the General Account are limited by the maximum allocation
percentage (described below) in effect for a Policy at the time a
transfer request is made.
Policy Loans may also be made from the Policy's Cash Value in the
General Account.
Loans and withdrawals from the General Account may have Federal income
tax consequences. (See Federal Tax Matters.)
There is no transaction charge for the first twelve partial withdrawals
or requested transfers in a Policy Year. General American will impose a
charge of $25 for each partial withdrawal or requested transfer in
excess of twelve in a Policy Year. General American may revoke or
modify the privilege of transferring amounts to or from the General
Account at any time. Partial withdrawals and Pro-Rata Surrenders will
result in the imposition of the applicable surrender charge.
Transfers, surrenders, partial withdrawals and Pro-Rata Surrenders
payable from the General Account and the payment of Policy Loans
allocated to the General Account may, subject to certain limitations, be
delayed for up to six months. However, if payment is deferred for 30
days or more, General American will pay interest at the rate of 2.5% per
year for the period of the deferment. Amounts from the General Account
used to pay premiums on policies with General American will not be
delayed.
GENERAL MATTERS
POSTPONEMENT OF PAYMENTS FROM THE SEPARATE ACCOUNT
The Company usually pays amounts payable on partial withdrawal, Pro-Rata
Surrender, surrender, or Policy Loan allocated to the Separate Account
Divisions within seven days after written notice is received. Payment
of any amount payable from the Divisions of the Separate Account upon
surrender, partial withdrawals, Pro-Rata Surrender, or death of Insured,
as well as payments of a Policy Loan and transfers, may be postponed
whenever: (1) the New York Stock Exchange is closed other than customary
weekend and holiday closings, or trading on the New York Stock Exchange
is restricted as determined by the SEC; (2) the SEC by order permits
postponement for the protection of Owners; or (3) an emergency exists,
as determined by the SEC, as a result of which disposal of securities is
not reasonably practicable or it is not reasonably practicable to
determine the value of the Separate Account's net assets. The Company
may defer payment of the portion of any Policy Loan from the General
Account for not more than six months.
Payments under the Policy of any amounts derived from premiums paid by
check may be delayed until the Owner's check has cleared the bank upon
which it was drawn.
THE CONTRACT
The Policy, the attached application, any riders, endorsements, any
application for an increase in Face Amount, and any application for
reinstatement constitute the entire contract. All statements made by
the Insured in the application and any supplemental applications can be
used to contest a claim or the validity of the Policy. Any change to
the Policy must be in writing and approved by the President, a Vice
President, or the Secretary of the Company. No agent has the authority
to alter or modify any of the terms, conditions, or agreements of the
Policy or to waive any of its provisions.
CONTROL OF POLICY
The Insured is the Owner of the Policy unless another person or entity
is shown as the Owner in the application. Ownership may be changed,
however, as described below. The Owner is entitled to all rights
provided by the Policy. Any person whose rights of ownership depend
upon some future event does not possess any present rights of ownership.
If there is more than one Owner at a given time, all Owners must
exercise the rights of ownership by joint action. If the Owner dies,
and the Owner is not the Insured, the Owner's interest in the Policy
becomes the property of his or her estate unless otherwise provided.
Unless otherwise provided, the Policy is jointly owned by all Owners
named in the Policy or by the survivors of those joint Owners. Unless
otherwise stated in the Policy, the final Owner is the estate of the
last joint Owner to die. The Company may rely on the written request of
any trustee of a trust which is the Owner of the Policy, and the Company
is not responsible for the proper administration of any such trust.
BENEFICIARY
The Beneficiary(ies) is (are) the person(s) specified in the application
or by later designation. Unless
33
<PAGE>
<PAGE>
otherwise stated in the Policy, the Beneficiary has no rights in a
Policy before the death of the Insured. If there is more than one
Beneficiary at the death of the Insured, each Beneficiary will receive
equal payments unless otherwise provided by the Owner. If no
Beneficiary is living at the death of the Insured, the proceeds will be
payable to the Owner or, if the Owner is not living, to the Owner's
estate.
The Company permits the designation of various types of trusts as
Beneficiary(ies), including trusts for minor beneficiaries, trusts under
a will, and trusts under a separate written agreement. An Owner is also
permitted to designate several types of beneficiaries, including
business beneficiaries.
CHANGE OF OWNER OR BENEFICIARY
The Owner may change the ownership and/or Beneficiary designation by
written request in a form acceptable to the Company at any time during
the Insured's lifetime subject to any restrictions stated in the Policy
and this Prospectus. The Company may require that the Policy be
returned for endorsement of any change. If acceptable to us, the change
will take effect as of the date the request is signed, whether or not
the Insured is living when the request is received at the Company's Home
Office. The Company is not liable for any payment made or action taken
before the Company received the written request for change. If the
Owner is also a Beneficiary of the Policy at the time of the Insured's
death, the Owner may, within sixty days of the Insured's death,
designate another person to receive the Policy proceeds. Any change
will be subject to any assignment of the Policy or any other legal
restrictions.
POLICY CHANGES
The Company reserves the right to limit the number of changes to a
Policy to one per Policy Year and to restrict changes in the first
Policy Year. Currently, only one change is permitted during any Policy
Year and no change may be made during the first Policy Year. For this
purpose, changes include increases or decreases in Face Amount and
changes in the death benefit option. No change will be permitted, if as
a result, the Policy would fail to satisfy the definition of life
insurance in Section 7702 of the Internal Revenue Code or any applicable
successor provision.
CONFORMITY WITH STATUTES
If any provision in a Policy is in conflict with the laws of the state
governing the Policy, the provision will be deemed to be amended to
conform to such laws. In addition, the Company reserves the right to
change the Policy if it determines that a change is necessary to cause
this Policy to comply with, or give the Owner the benefit of any Federal
or state statute, rule, or regulation, including, but not limited to,
requirements of the Internal Revenue Code, or its regulations or
published rulings.
CLAIMS OF CREDITORS
To the extent permitted by law, neither the Policy nor any payment under
it will be subject to the claims of creditors or to any legal process.
INCONTESTABILITY
The Policy is incontestable after it has been in force for two years
from the Issue Date during the lifetime of the Insured. An increase in
Face Amount or addition of a rider after the Issue Date is incontestable
after such increase or addition has been in force for two years from its
effective date during the lifetime of the Insured. Any reinstatement of
a Policy is incontestable only after it has been in force during the
lifetime of the Insured for two years after the effective date of the
reinstatement.
ASSIGNMENT
The Company will be bound by an assignment of a Policy only if: (a) the
assignment is in writing; (b) the original assignment instrument or a
certified copy thereof is filed with the Company at its Home Office; and
(c) the Company returns an acknowledged copy of the assignment
instrument to the Owner. The Company is not responsible for determining
the validity of any assignment. Payment of Policy proceeds is subject
to the rights of any assignee of record. If a claim is based on an
assignment, the Company may require proof of the interest of the
claimant. A valid assignment will take precedence over the claim of any
Beneficiary.
SUICIDE
Suicide within two years of the Issue Date is not covered by the Policy.
If the Insured dies by suicide, while sane or insane, within two years
from the Issue Date (or within the maximum period permitted by the laws
of the state in which the Policy was delivered, if less than two years),
the amount payable will be limited to premiums paid, less any partial
withdrawals and outstanding Indebtedness subject to certain limitations,
if the Insured, while sane or insane, dies by suicide within two years
after the effective date of an increase in Face Amount, the death
benefit for that increase will be limited to the amount of the monthly
deductions for the increase.
<PAGE>
If the Insured is a Missouri citizen when the Policy is issued, this
provision does not apply on the Issue Date of the Policy, or on the
effective date of any increase in Face Amount, unless the Insured
intended
34
<PAGE>
<PAGE>
suicide when the Policy, or the increase in Face Amount, was applied
for.
MISSTATEMENT OF AGE OR SEX AND CORRECTIONS
If the age or sex (except in unisex Policies, see Unisex Requirements
Under Montana Law) of the Insured has been misstated in the application,
the amount of the death benefit will be that which the most recent cost
of insurance charge would have purchased for the correct age and sex.
Any payment or Policy changes made by the Company in good faith, relying
on its records or evidence supplied with respect to such payment, will
fully discharge the Company's duty. The Company reserves the right to
correct any errors in the Policy.
ADDITIONAL INSURANCE BENEFITS
Subject to certain requirements, one or more of the following additional
insurance benefits may be added to a Policy by rider. The descriptions
below are intended to be general; the terms of the Policy riders
providing the additional benefits may vary from state to state, and the
Policy should be consulted. The cost of any additional insurance
benefits which require additional charges will be deducted as part of
the monthly deduction from the Policy's Cash Value. (See Charges and
Deductions - Monthly Deduction.) Certain restrictions may apply and are
described in the applicable rider. An insurance agent authorized to
sell the Policy can describe these extra benefits further. Samples of
the provisions are available from General American upon written request.
WAIVER OF MONTHLY DEDUCTION RIDER. Provides for the waiver of the
monthly deductions while the Insured is totally disabled, subject to
certain limitations described in the rider. The Insured must have
become disabled after age 5 and before age 65.
WAIVER OF SPECIFIED PREMIUM RIDER. Provides for crediting the Policy's
Cash Value with a specified monthly premium while the Insured is totally
disabled. The monthly premium selected at issue is not guaranteed to
keep the Policy in force. The Insured must have become disabled after
age 5 and before age 65.
ADJUSTABLE BENEFIT TERM RIDER. This rider allows an employer who is the
Owner to provide adjustable term insurance to comply with the terms of
an associated employee benefit plan. The increase in coverage occurs on
each Policy Anniversary.
ANNIVERSARY PARTIAL WITHDRAWAL RIDER. This rider allows the owner to
withdraw up to 15% of the Policy's Cash Surrender Value on any Policy
Anniversary without reducing the Face Amount. A Contingent Deferred
Sales Charge will still apply.
GUARANTEED SURVIVOR PURCHASE OPTION (GSPO-PLUS). This rider grants the
policy Owner or the Insured's Beneficiary the option to purchase, upon
the death of the Insured, on the 10th anniversary of the rider, and on
the rider anniversary nearest the Designated Life's 65th birthday, a
specified amount of additional insurance coverage on the Designated Life
(or Lives) without furnishing evidence of insurability.
SUPPLEMENTAL COVERAGE TERM RIDER. This rider provides level term
insurance on the life of the Insured under the base policy. It can be
added only at issue. It cannot be increased or added to an existing
Policy.
PRELIMINARY TERM INSURANCE. This rider provides preliminary term
insurance from the date of hire of a new employee until the plan
anniversary when a corporate-sponsored Policy is issued. The rider
provides level term insurance equal to the initial face amount of the
Policy and all attached riders.
ACCELERATED BENEFIT RIDER. This rider provides a benefit to the Owner
if the Insured becomes terminally ill and is not expected to live more
then twelve months. The Owner may receive 25%, 50% or 75% (but no more
than $250,000) of the eligible proceeds in a lump sum. "Eligible
proceeds" means the death benefit that would have been payable had the
insured died on the date the rider is exercised.
CHILDREN'S INSURANCE RIDER. This rider allows the Policy Owner to add
term insurance coverage on his or her children.
SECONDARY GUARANTEE RIDER. This rider guarantees that if, during the
secondary guarantee period, the sum of all premiums paid on the Policy,
reduced by any partial withdrawals and any outstanding loan balance, is
greater than or equal to the sum of the secondary guarantee premiums
required since the Issue Date, the Policy will not lapse as a result of
a Cash Value less any loans, loans interest due, and any surrender
charge being insufficient to pay the monthly deduction.
The secondary guarantee period is the lesser of twenty Policy Years, or
the number of Policy Years until the Insured reaches Attained Age 70.
For Policies issued after Attained Age 60, the secondary guarantee
period is ten Policy Years.
LIFETIME COVERAGE RIDER. This rider provides the continuation of the
Policy's face amount beyond age 100, provided the policy remains
in force to age 100 with a positive cash surrender value. If the Policy
is
35
<PAGE>
<PAGE>
in force after the Insured's Attained Age 100, the death benefit will
be the greater of the face amount or 101% of the Cash Value.
RECORDS AND REPORTS
The Company will maintain all records relating to the Separate Account
and will mail to the Owner once each Policy Year, at the last known
address of record, a report which shows the current Policy values,
premiums paid, deductions made since the last report, and any
outstanding Policy Loans. The Owner will also be sent a periodic report
for each Fund. Receipt of premium payments, transfers, partial
withdrawals, Pro-Rata Surrenders, Policy Loans, loan repayments, changes
in death benefit options, increases or decreases in Face Amount,
surrenders and reinstatements will be confirmed promptly following each
transaction.
An Owner may request in writing a projection of illustrated future Cash
Surrender Values and death benefits. This projection will be furnished
by the Company for a nominal fee which will not exceed $25.
DISTRIBUTION OF THE POLICIES
The Policy will be sold by individuals who, in addition to being
licensed as life insurance agents for the Company, are also registered
representatives of Walnut Street Securities, Inc. ("Walnut Street"),
the principal underwriter of the Policy, or of broker-dealers who have
entered into written sales agreements with Walnut Street. Walnut Street
was incorporated under the laws of Missouri in 1984 and is a wholly-
owned subsidiary of General American Holding Company, which is, in turn,
a wholly-owned subsidiary of the Company. Walnut Street is registered
with the SEC under the Securities Exchange Act of 1934 as a broker-
dealer and is a member of the National Association of Securities
Dealers, Inc. No director or officer of Walnut Street owns any units in
the Separate Account.
Writing agents will receive commissions based on a commission schedule
and rules. Currently, agent first-year commissions equal 50% of target
premiums and 2.25% of excess premium paid in Policy Year 1. In renewal
years, the agent commissions vary from 1.0% to 2.0% of premiums paid in
Policy Years 2 and later, depending on the agent's contract type. An
additional service fee, determined as a percentage of the Policy's
unloaned Cash Value, is also paid. The percentage varies by Policy Year
from 0% to 0.20% of average monthly unloaned assets. Reductions may be
possible under the circumstances outlined in the section entitled
Adjustment of Charges. General Agents receive compensation which may be
in part based on the level of agent commissions in their agencies.
As principal underwriter for the Policies, Walnut Street receives
commission income. Walnut Street receives an administrative fee of 2%
of premium from sales of the Policies.
The general agent commission schedules and rules differ for different
types of agency contracts.
General American may use other distribution channels to sell the non-
participating version of the Policy.
FEDERAL TAX MATTERS
INTRODUCTION
The following summary provides a general description of the Federal
income tax considerations associated with the Policy and does not
purport to be complete or to cover all situations. This discussion is
not intended as tax advice. Counsel or other competent tax Advisors
should be consulted for more complete information. This discussion is
based upon General American's understanding of the present Federal
income tax laws as they are currently interpreted by the Internal
Revenue Service. No representation is made as to the likelihood of
continuation of the present Federal income tax laws or of the current
interpretations by the Internal Revenue Service.
TAX STATUS OF THE POLICY
Section 7702 of the Internal Revenue Code of 1986, as amended (the
"Code") includes a definition of a life insurance contract for Federal
tax purposes. The Secretary of the Treasury (the "Treasury") issued
proposed regulations which specify what will be considered reasonable
mortality charges under Section 7702. Guidance as to how Section 7702
is to be applied is, however, limited. If a Policy were determined not
to be a life insurance contract for purposes of Section 7702, such
Policy would not provide most of the tax advantages normally provided by
a life insurance policy.
With respect to a Policy issued on a basis of a standard premium class
or on a guaranteed or simplified issue basis, while there is some
uncertainty due to the limited guidance under Section 7702, the Company
believes that such a Policy should meet the Section 7702 definition of a
life insurance contract. However, with respect to a Policy issued on a
substandard basis (i.e., a premium class involving higher than standard
mortality risk), it is not clear whether such a Policy would satisfy
Section 7702,
36
<PAGE>
<PAGE>
particularly if the Owner pays the full amount of premiums permitted
under the Policy.
If it is subsequently determined that a Policy does not satisfy Section
7702, the Company will take whatever steps are appropriate and necessary
to attempt to cause such a Policy to comply with Section 7702, including
possibly refunding any premiums paid that exceed the limitations
allowable under Section 7702 (together with interest or other earnings
on any such premiums refunded as required by law). For these reasons,
the Company reserves the right to modify the Policy as necessary to
attempt to qualify it as a life insurance contract under Section 7702.
Section 817(h) of the Code authorizes the Treasury to set standards by
regulation or otherwise for the investments of the Separate Account to
be "adequately diversified" in order for the Policy to be treated as a
life insurance contract for Federal tax purposes. The Separate Account,
intends to comply with the diversification requirements prescribed by
the Treasury in Regulation Section 1.817-5, which affect how assets may
be invested. Although General American does not control the Funds, it
has entered into agreements, which require these investment companies to
be operated in compliance with the requirements prescribed by the
Treasury.
The IRS has stated in published rulings that a variable contract owner
will be considered the owner of separate account assets, for federal
income tax purposes, if the contract owner possesses incidents of
ownership in those assets, such as the ability to exercise investment
control over the assets. If that were to be determined to be the case,
income and gains from the separate account assets would be includible in
the variable contract owner's gross income. The Treasury Department has
also announced, in connection with the issuance of regulations
concerning diversification, that those regulations "do not provide
guidance concerning the circumstances in which investor control of the
investments of a segregated asset account may cause the investor (i.e.,
the Owner), rather than the insurance company, to be treated as the
owner of the assets in the account." This announcement also stated that
guidance would be issued by way of regulations or rulings on the "extent
to which policyholders may direct their investments to particular
subaccounts without being treated as owners of the underlying assets."
The ownership rights under the Policy are different in certain respects
from those described by the IRS in rulings in which it was determined
that policy owners were not owners of separate account assets. For
example, the Owner has additional flexibility in allocating Premium
payments and Policy Values. These differences could result in an Owner
being treated as the owner of a pro rata portion of the assets of the
Separate Account. In addition, the Company does not know what standards
will be set forth, if any, in the regulations or rulings which the
Treasury Department has stated it expects to issue. The Company
therefore reserves the right to modify the Policy as necessary to
attempt to prevent an Owner from being considered the owner of a pro
rata share of the assets of the Separate Account.
The following discussion assumes that the Policy will qualify as a life
insurance contract for Federal income tax purposes.
l. TAX TREATMENT OF POLICY BENEFITS. In general, the Company believes
that the proceeds and Cash Value increases of a Policy should be treated
in a manner consistent with a fixed-benefit life insurance policy for
Federal income tax purposes. Thus, the death benefit under the Policy
should be excludable from the gross income of the Beneficiary under
Section 101(a)(1) of the Code, unless a transfer for value (generally a
sale of the policy) has occurred.
Many changes or transactions involving a Policy may have tax
consequences, depending on the circumstances. Such changes include, but
are not limited to, the exchange of the Policy, a change of the Policy's
Face Amount, a Policy Loan, an additional premium payment, a Policy
lapse with an outstanding Policy Loan, a partial withdrawal, or a
surrender of the Policy. In addition, Federal estate and state and
local estate, inheritance, and other tax consequences of ownership or
receipt of Policy proceeds depend upon the circumstances of each Owner
or Beneficiary. A competent tax adviser should be consulted for further
information.
A Policy may also be used in various arrangements, including non-
qualified deferred compensation or salary continuation plans, split
dollar insurance plans, executive bonus plans, retiree medical benefit
plans and others. The tax consequences of such plans may vary depending
on the particular facts and circumstances of each individual
arrangement. Therefore, if you are contemplating the use of a Policy in
any arrangement the value of which depends in part on its tax
consequences, you should be sure to consult a qualified tax adviser
regarding the tax attributes of the particular arrangement.
Generally, the Owner will not be deemed to be in constructive receipt of
the Policy's Cash Value, including increments thereof, under the Policy
until there is a distribution. The tax consequences of distributions
from, and Policy Loans taken from or secured by, a Policy depend upon
whether the Policy is classified as a "modified endowment contract".
However, upon a complete surrender or lapse of any
37
<PAGE>
<PAGE>
Policy, if the amount received plus the amount of outstanding
Indebtedness exceeds the total investment in the Policy, the excess will
generally be treated as ordinary income subject to tax.
2. MODIFIED ENDOWMENT CONTRACTS. A policy may be treated as a modified
endowment contract depending upon the amount of premiums paid in
relation to the death benefit provided under such Policy. The premium
limitation rules for determining whether a Policy is a modified
endowment contract are extremely complex. In general, however, a Policy
will be a modified endowment contract if the accumulated premiums paid
at any time during the first seven Policy Years exceed the sum of the
net level premiums which would have been paid on or before such time if
the Policy provided for paid-up future benefits after the payment of
seven level annual premiums.
In addition, if a Policy is "materially changed" it may cause such
Policy to be treated as a modified endowment contract. The material
change rules for determining whether a Policy is a modified endowment
contract are also extremely complex. In general, however, the
determination of whether a Policy will be a modified endowment contract
after a material change generally depends upon the relationship among
the death benefit at the time of such change, the Cash Value at the time
of the change and the additional premiums paid in the seven Policy Years
starting with the date on which the material change occurs.
Moreover, a life insurance contract received in exchange for a life
insurance contract classified as a modified endowment contract will also
be treated as a modified endowment contract. A reduction in a Policy's
benefits may also cause such Policy to become a modified endowment
contract.
Due to the Policy's flexibility, classification of a Policy as a
modified endowment contract will depend upon the circumstances of each
Policy. The Company has, however, adopted administrative steps designed
to protect an Owner against the possibility that the Policy might become
a modified endowment contract. The Company believes the safeguards are
adequate for most situations, but it cannot provide complete assurance
that a Policy will not be classified as a modified endowment contract.
At the time a premium is credited which would cause the Policy to become
a modified endowment contract, the Company will notify the Owner that
unless a refund of the excess premium is requested by the Owner, the
Policy will become a modified endowment contract. The Owner will have
30 days after receiving such notification to request the refund. The
excess premium paid will be returned to the Owner upon receipt by the
Company of the refund request. The amount to be refunded will be
deducted from the Policy Cash Value in the Divisions of the Separate
Account and in the General Account in the same proportion as the premium
payment was allocated to such Divisions.
Accordingly, a prospective Owner should contact a competent tax adviser
before purchasing a Policy to determine the circumstances under which
the Policy would be a modified endowment contract. In addition, an
Owner should contact a competent tax adviser before paying any
additional premiums or making any other change to, including an exchange
of, a Policy to determine whether such premium or change would cause the
Policy (or the new Policy in the case of an exchange) to be treated as a
modified endowment contract.
3. DISTRIBUTIONS FROM POLICIES CLASSIFIED AS MODIFIED ENDOWMENT
CONTRACT. Policies classified as modified endowment contracts will be
subject to the following tax rules: First, all distributions, including
distributions upon surrender, from such a Policy are treated as ordinary
income subject to tax up to the amount equal to the excess (if any) of
the Cash Value immediately before the distribution over the investment
in the Policy (described below) at such time. Second, Policy Loans
taken from, or secured by, such a Policy, as well as due but unpaid
interest thereon, are treated as distributions from such a Policy and
taxed accordingly. Third, a 10 percent additional income tax is imposed
on the portion of any distribution from, or Policy Loan taken from or
secured by, such a Policy that (a) is included in income, except where
the distribution or Policy Loan is made on or after the Owner attains
age 59 1/2, (b) is attributable to the Owner's becoming disabled, or (c)
is part of a series of substantially equal periodic payments for the
life (or life expectancy) of the Owner or the joint lives (or joint life
expectancies) of the Owner and the Owner's Beneficiary.
4. DISTRIBUTIONS FROM POLICIES NOT CLASSIFIED AS MODIFIED ENDOWMENT
CONTRACT. Distributions from Policies not classified as a modified
endowment contracts are generally treated as first recovering the
investment in the Policy (described below) and then, only after the
return of all such investment in the Policy, as distributing taxable
income. An exception to this general rule occurs in the case of a
decrease in the Policy's death benefit (possibly including a partial
withdrawal) or any other change that reduces benefits under the Policy
in the first 15 years after the Policy is issued and that results in
cash distribution to the Owner in order for the Policy to continue
complying with the Section 7702 definitional limits. Such a cash
distribution will be taxed in whole or in part as ordinary income (to
the extent of any gain in the Policy) under rules prescribed in Section
7702.
38
<PAGE>
<PAGE>
Policy Loans from, or secured by, a Policy that is not a modified
endowment contract are not treated as distributions. Instead, such
loans are treated as indebtedness of the Owner.
Upon a complete surrender or lapse of a Policy that is not a modified
endowment contract, if the amount received plus the amount of
indebtedness exceeds the total investment in the Policy, the excess will
generally be treated as ordinary income subject to tax.
Neither distributions (including distributions upon surrender or lapse)
nor Policy Loans from, or secured by, a Policy that is not a modified
endowment contract are subject to the 10 percent additional income tax.
If a Policy which is not a modified endowment contract subsequently
becomes a modified endowment contract, then any distribution made from
the Policy within two years prior to the date of such change in status
may become taxable.
5. POLICY LOAN INTEREST. Generally, interest paid on any loan under a
life insurance Policy owned by an individual is not deductible. In
addition, interest on any loan under a life insurance Policy owned by a
business taxpayer on the life of any individual who is an officer of or
is financially interested in the business carried on by that taxpayer is
deductible only under certain very limited circumstances. AN OWNER
SHOULD CONSULT A COMPETENT TAX ADVISER BEFORE DEDUCTING ANY LOAN
INTEREST.
6. INTEREST EXPENSE ON UNRELATED INDEBTEDNESS. Under provisions added
to the Code in 1997 for policies issued after June 8, 1997, if a
business taxpayer owns or is the beneficiary of a Policy on the life of
any individual who is not an officer, director, employee, or 20 percent
owner of the business, and the taxpayer also has debt unrelated to the
Policy, a portion of the taxpayer's unrelated interest expense
deductions may be lost. No business taxpayer should purchase, exchange,
or increase the death benefit under a Policy on the life of any
individual who is not an officer, director, employee, or 20 percent
owner of the business without first consulting a competent tax Advisor.
7. INVESTMENT IN THE POLICY. Investment in the Policy means (i) the
aggregate amount of any premiums or other consideration paid for a
Policy, minus (ii) the aggregate amount received under the Policy which
is excluded from gross income of the Owner (except that the amount of
any Policy Loan from, or secured by, a Policy that is a modified
endowment contract, to the extent such amount is excluded from gross
income, will be disregarded), plus (iii) the amount of any Policy Loan
from, or secured by, a Policy that is a modified endowment contract to
the extent that such amount is included in the gross income of the
Owner.
8. MULTIPLE POLICIES. All modified endowment contracts that are issued
by the Company (or its affiliates) to the same Owner during any calendar
year are treated as one modified endowment contract for purposes of
determining the amount includible in gross income under Section 72(e) of
the Code.
9. POSSIBLE CHARGE FOR TAXES. At the present time, the Company makes no
charge to the Separate Account for any Federal, state, or local taxes
(as opposed to Premium Tax Charges which are deducted from premium
payments) that it incurs which may be attributable to such Separate
Account or to the Policies. The Company, however, reserves the right in
the future to make a charge for any such tax or other economic burden
resulting from the application of the tax laws that it determines to be
properly attributable to the Separate Account or to the Policies.
10. POSSIBLE CHANGES IN TAXATION. As of the date of this Prospectus,
the President's budget for fiscal year 1999 contains a number of
proposals that would adversely affect the Federal income tax treatment
of life insurance contracts. Of particular importance to owners of
variable life insurance contracts such as the Policy are two proposals
under which, if adopted: (1) the inside buildup of variable life
insurance contracts like the Policy would be taxed whenever cash values
were reallocated among the available investment options, for example, if
the Periodic and Variance Rebalancing options available under the Policy
were used, and (2) it would no longer be possible to exchange a variable
life insurance contract tax free under Code section 1035. Moreover, it
is always possible that any changes in the tax treatment of life
insurance contracts could be effective prior to the date of any new
legislation.
UNISEX REQUIREMENTS UNDER MONTANA LAW
The State of Montana generally prohibits the use of actuarial tables
that distinguish between men and women in determining premiums and
Policy benefits for policies issued on the lives of their residents.
Therefore, all Policies offered by this Prospectus to insure residents
of Montana will have premiums and benefits which are based on actuarial
tables that do not differentiate on the basis of sex.
39
<PAGE>
<PAGE>
SAFEKEEPING OF THE SEPARATE ACCOUNT'S ASSETS
General American holds the assets of the Separate Account in a custodial
account in its name at the Bank of New York. The Company maintains
records of all purchases and redemptions of applicable Fund shares by
each of the Divisions. Additional protection for the assets of the
Separate Account is afforded by a blanket fidelity bond issued by
Lloyd's Underwriters in the amount of five million dollars, covering all
officers and employees of the Company who have access to the assets of
the Separate Account.
VOTING RIGHTS
Based on its understanding of current applicable legal requirements, the
Company will vote the shares of the Funds held in the Separate Account
at regular and special shareholder meetings of the mutual funds in
accordance with the instructions received from persons having voting
interests in the corresponding Divisions of the Separate Account. If,
however, the 1940 Act or any regulation thereunder should be amended or
if the present interpretation thereof should change, and as a result the
Company determines that it is permitted to vote shares of the Fund in
its own right, it may elect to do so. No voting privileges apply to the
Policies with respect to Cash Value removed from the Separate Account as
a result of a Policy Loan.
The number of votes which an Owner has the right to instruct will be
calculated separately for each Division. Voting rights reflect the
dollar value of the total number of units of each Division of the
Separate Account credited to the Owner at the record date, rather than
the number of units alone. Fractional shares will be counted. The
number of votes of the Fund which the Owner has the right to instruct
will be determined as of the date coincident with the date established
by that Fund for determining shareholders eligible. Voting instructions
will be solicited by written communications prior to such meeting in
accordance with procedures established by the mutual funds.
The company will vote shares of a Fund for which no timely instructions
are received in proportion to the voting instructions which are received
with respect to that Fund. The Company will also vote any shares of the
Funds which are not attributable to Policies in the same proportion.
Each person having a voting interest in a Division will receive any
proxy material, reports, and other materials relating to the appropriate
Fund.
DISREGARD OF VOTING INSTRUCTIONS. The Company 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 the Fund or
to approve or disapprove an investment Advisory contract for a Fund. In
addition, the Company itself may disregard voting instructions in favor
of changes initiated by an Owner in the investment policy or the
investment adviser or sub-adviser of a Fund if the Company reasonably
disapproves of such changes. A proposed change would be disapproved
only if the proposed change is contrary to state law or prohibited by
state regulatory authorities, or the Company determined that the change
would have an adverse effect on its General Account in that the proposed
investment policy for a Fund may result in overly speculative or unsound
investments. If the Company disregards voting instructions, a summary
of that action and the reasons for such action will be included in the
next annual report to Owners.
STATE REGULATION OF THE COMPANY
The Company, a stock life insurance company organized under the laws of
Missouri, and the Separate Account are subject to regulation by the
Missouri Department of Insurance. An annual statement is filed with the
Director of Insurance on or before March 1st of each year covering the
operations and reporting on the financial condition of the Company as of
December 31 of the preceding year. Periodically, the Director of
Insurance examines the liabilities and reserves of the Company and the
Separate Account and certifies their adequacy, and a full examination of
the Company's operations is conducted by the National Association of
Insurance Commissioners at least once every three years.
In addition, the Company is subject to the insurance laws and
regulations of other states within which it is licensed or may become
licensed to operate. Generally, the insurance departments of other
states apply the laws of the state of domicile in determining
permissible investments.
40
<PAGE>
<PAGE>
<TABLE>
MANAGEMENT OF THE COMPANY
<CAPTION>
PRINCIPAL OCCUPATION (S)
NAME DURING PAST FIVE YEARS<F*>
---- --------------------------
<C> <S>
PRINCIPAL OFFICERS<F**>
- -----------------------
Richard A. Liddy Chairman, President and CEO, 1/95-present; Chairman of the
Executive
Committee, 5/92-present. Formerly President and CEO, 5/92-1/95.
Robert J. Banstetter, Sr. Vice President, General Counsel and Secretary, 2/91-present.
John W. Barber Vice President and Controller, 12/84-present.
Kevin C. Eichner Executive Vice President of General American, President and
Chairman of
GenMark, Chairman of Walnut Street Securities, 10/97-Present.
President
and CEO, Collaborative Strategies, 1983-Present.
David L. Herzog Chief Financial Officer, GenAmerica Corporation, 1/99-present.
President,
GenAmerica Management Corporation, 10/98-present. Formerly
Assistant to
the President, General American and GenAmerica, 1996-1999, Chief
Financial Officer, Individual Line, General American, 1995-1996,
Manager,
Investor Relations, Reinsurance Group of America and GenCare Health
Systems, 1993-1995.
E. Thomas Hughes Corporate Actuary and Treasurer, 10/94-present. Formerly Executive
Vice
President-Group Pensions, 3/90-10/94
Michael P. Ingrassia Vice President-Group Executive Accounts, 3/92-present.
Warren J. Winer Executive Vice President-Group Life and Health, 8/95-present.
Formerly
Managing Director, William M. Mercer, Inc., 7/93-8/95; President
and
Chief Operating Officer, W. F. Corroon, 1986-7/93.
Bernard H. Wolzenski Executive Vice President-Individual Insurance, 10/91-present.
A. Greig Woodring President and Chief Executive Officer, Reinsurance Group of
America,
12/92-present.
<FN>
<F*> All positions listed are with General American unless otherwise
indicated.
<F**> The principal business address of Messrs. Banstetter, Hughes, and
Liddy is General American Life Insurance Company, 700 Market
Street, St. Louis, Missouri 63101. The principal business address
for Messrs. Barber, Boudreaux, Ingrassia, Winer and Wolzenski is
13045 Tesson Ferry Road, St. Louis, Missouri 63128. The principal
business address for Mr. Woodring is 660 Mason Ridge Center Drive,
Suite 300, St. Louis, Missouri 63141. The principal business
address for Mr. Eichner is 670 Mason Ridge Center Drive, Suite 100,
St. Louis, Missouri 63141.
</TABLE>
41
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
NAME PRINCIPAL OCCUPATIONS (S)
---- DURING PAST FIVE YEARS<F*>
--------------------------
DIRECTORS
- ---------
<C> <S>
August A. Busch III Chairman of the Board and President,
Anheuser-Busch Companies.
Anheuser-Busch Companies, Inc. Inc. (beer business).
One Busch Place
St. Louis, Missouri 63118
William E. Cornelius Retired Chairman and Chief Executive Officer,
Union Electric
Union Electric Company Company (electric utility business).
P.O. Box 149
St. Louis, Missouri 63166
John C. Danforth Partner, Bryan Cave (law firm). Formerly, U. S.
Senator, State of
Bryan Cave Missouri
One Metropolitan Square, Suite 3600
St. Louis, Missouri 63102
Bernard A. Edison Past President, Edison Brothers Stores, Inc.
(retail specialty stores).
Edison Brothers Stores, Inc.
P.O. Box 14020
St. Louis, Missouri 63178
Richard A. Liddy Chairman, President and CEO, General American
General American Life Insurance Co.
700 Market Street
St. Louis, MO 63101
William E. Maritz Chairman and Chief Executive Officer, Maritz,
Inc.
Maritz, Inc. (motivation, travel, communications, training and
marketing
1375 North Highway Drive research business).
Fenton, Missouri 63099
Craig D. Schnuck Chairman and Chief Executive Officer, Schnuck
Markets, Inc.
Schnuck Markets, Inc. (retail supermarket chain).
11420 Lackland Road
P.O. Box 46928
St. Louis, Missouri 63146
William P. Stiritz Chairman, Chief Executive Officer and President,
Agribrands
Agribrands International, Inc. International, Inc. Formerly Chairman, Chief
Executive Officer and
9811 So. Forty Drive President, Ralston Purina Company (pet food,
batteries, and bread
St. Louis, Missouri 63124 business); Chairman, Ralcorp Holdings, Inc.
(ready-to-eat cereal,
baby food, ski resorts).
Andrew C. Taylor Chief Executive Officer and President, Enterprise
Rent-A-Car (car
Enterprise Rent-A-Car rental).
600 Corporate Park Drive
St. Louis, Missouri 63105
42
<PAGE>
<PAGE>
<CAPTION>
NAME PRINCIPAL OCCUPATIONS (S)
---- DURING PAST FIVE YEARS<F*>
--------------------------
DIRECTORS (CONTINUED)
- ---------------------
<C> <S>
H. Edwin Trusheim Retired Chairman and Chief Executive Officer,
General American
General American Life Insurance Co. Life Insurance Company
P.O. Box 396
St. Louis, MO 63166
Robert L. Virgil Principal, Edward Jones (investments).
Edward Jones
12555 Manchester
St. Louis, Missouri 63131-3729
Virginia V. Weldon, M.D. Director, Center for the Study of American
Business, Washington
Monsanto Company University. Retired Senior Vice President,
Public Policy,
800 North Lindbergh Monsanto Company (chemicals diversified industry,
St. Louis, Missouri 63167 pharmaceuticals, life science products, and food
ingredients
business).
Ted C. Wetterau
Wetterau Associates, L.L.C.
7700 Bonhomme, Suite 750
St. Louis, Missouri 63105
Ted C. Wetterau President, Wetterau Associates, L.L.C. Retired
Chairman and
Wetterau Associates, L.L.C. Chief Executive Officer, Wetterau Incorporated
(retail and
7700 Bonhomme, Suite 750 wholesale grocery, manufacturing business).
St. Louis, Missouri 63105
<FN>
<F*> All positions listed are with General American unless otherwise
indicated.
</TABLE>
43
<PAGE>
<PAGE>
LEGAL MATTERS
All matters of Missouri law pertaining to the Policy, including the
validity of the Policy and General American's right to issue the Policy
under Missouri insurance law, have been passed upon by Matthew P.
McCauley, Vice President and Associate General Counsel of General
American.
LEGAL PROCEEDINGS
There are no legal proceedings to which the Separate Account is a party
or to which the assets of the Separate Account are subject. General
American is not involved in any litigation that is of material
importance in relation to its total assets or that relates to the
Separate Account.
EXPERTS
The audited financial statements of General American and the Separate
Account have been included in this Prospectus in reliance on the reports
of KPMG Peat Marwick LLP independent certified public accountants, and
on the authority of said firm as experts in accounting and auditing.
The report of KPMG Peat Marwick LLP covering the December 31, 1997
financial statements of General American refers to the adoption of
Statement of Financial Accounting Standards No. 120, Accounting and
Reporting by Mutual Life Insurance Enterprises and by Insurance
Enterprises for Certain Long-Duration Participating Contracts.
Actuarial matters included in this Prospectus have been examined by
Susan Benjamin, FSA, MAAA, Senior Product Actuary of General American,
as stated in the opinion filed as an exhibit to the registration
statement.
ADDITIONAL INFORMATION
A registration statement has been filed with the Securities and Exchange
Commission, under the Securities Act of 1933, as amended, with respect
to the Policy offered hereby. This Prospectus does not contain all the
information set forth in the registration statement and the amendments
and exhibits to the registration statement, to all of which reference is
made for further information concerning the Separate Account, General
American and the Policy offered hereby. Statements contained in this
Prospectus as to the contents of the Policy and other legal instruments
are summaries. For a complete statement of the terms thereof reference
is made to such instruments as filed.
Like all financial services providers, General American utilizes systems
that may be affected by the Year 2000 transition issues, and it relies
on services providers, including the Funds, that may also be affected.
The Company has developed, and is in the process of implementing, a Year
2000 transition plan, and is confirming that its services providers are
also so engaged. The resources that are being devoted to this effort
are substantial. It is difficult to predict with precision whether the
amount of resources ultimately devoted, or the outcome of these efforts,
will have any negative impact on the Company. However, as of the date
of this prospectus, we do not anticipate that Policy Owners will
experience negative effects on their investment, or on the services
provided in connection therewith, as a result of Year 2000 transition
implementation. General American currently anticipates that its systems
will be Year 2000 compliant, but there can be no assurance that the
Company will be successful, or that interaction with other service
providers will not impair the Company's services at that time.
FINANCIAL STATEMENTS
The financial statements of General American which are included in this
Prospectus should be distinguished from the financial statements of the
Separate Account, and should be considered only as bearing on the
ability of General American to meet its obligations under the Policy.
They should not be considered as bearing on the investment performance
of the assets held in the Separate Account. Financial information is
not provided for four of the seventeen Divisions of the Separate Account
because those Divisions have only recently been established, and
therefore no operating history exists for those Divisions.
Interim financial statements for General American or the Separate
Account are not part of this prospectus because General American does
not prepare audited financial statements more often than annually, and
believes that any incremental benefit to prospective Policy Owners that
may result from preparing and delivering more current financial
statements, though unaudited, does not justify the additional cost that
would be incurred. General American represents that there have been no
adverse changes in the financial condition or operations of General
American or the Separate Account between the end of the most recent
fiscal year and the date of this prospectus.
44
<PAGE>
<PAGE>
APPENDIX A
Illustrations of Death Benefits and Cash Values
The following tables illustrate how the Cash Value, Cash Surrender
Value, and death benefit of a Policy change with the investment
experience of a Division of the Separate Account. The tables show how
the Cash Value, Cash Surrender Value, and death benefit of a Policy
issued to an insured of a given age and at a given premium would vary
over time if the investment return on the assets held in each Division
of the Separate Account were a uniform, gross, after-tax annual rate of
0%, 6%, or 12%. The tables illustrate Policies issued in Missouri
(using a 2% premium tax rate and a 1.3% federal tax charge) to males,
age 35 and 50 in a preferred nonsmoker rate class. If the insured falls
into a smoker rate class, the Cash Values, Cash Surrender Values, and
death benefits would be lower than those shown in the tables. In
addition, the Cash Values, Cash Surrender Values, and death benefits
would be different from those shown if the gross annual investment rates
of return averaged 0%, 6%, and 12% over a period of years, but
fluctuated above and below those averages for individual Policy Years.
The Cash Value column under the "Guaranteed" heading shows the
accumulated value of the Net Premiums paid at the stated interest rate,
reflecting deduction of all policy charges described in this prospectus
at the guaranteed maximum rate. The Cash Surrender Value column under
the "Guaranteed" heading shows the projected Cash Surrender Value of the
Policy, which is calculated by taking the Cash Value under the
"Guaranteed" heading and deducting any appropriate Contingent Deferred
Sales Charge. The Cash value column under the "Current" heading shows
the accumulated value of the Net Premiums paid at the stated interest
rate, reflecting deduction of all policy charges as described in this
prospectus at the current rate. The Cash Surrender Value column under
the "Current" heading shows the projected Cash Surrender Value of the
Policy, which is calculated by taking the Cash Value under the "Current"
heading and deducting any appropriate Contingent Deferred Sales Charge.
The illustrations of death benefits reflect the above assumptions. The
death benefits also vary between tables depending upon whether Death
Benefit Options A or C (Level Type) or Death Benefit Option B
(Increasing Type) are illustrated.
The amounts deducted from the Cash Value in the illustrations include
the sales charge, premium tax, federal tax charge, selection and issue
expense charge, monthly administrative charge, and cost of insurance.
These charges are described in the prospectus under Charges and
Deductions.
The amounts shown for Cash Value, Cash Surrender Value, and death
benefit reflect charges that produce an investment rate of return that
is lower than the gross return on the assets held in a Division of the
Separate Account. The charges include a charge for mortality and
expense risk (equivalent to .55% for Policy Years 1-10, .45% for Policy
Years 11-20, and .35% thereafter), and an assumed .78% charge for the
investment Advisory fee and Fund administrative expenses combined, based
on the average Fund expense for all available investment Funds. The
actual investment advisory fee applicable to each Division is shown in
the respective Prospectuses of each Fund. After deduction for these
amounts, the illustrated gross annual investment rates of return of 0%,
6%, and 12% correspond to approximate initial net annual rates of
- -1.33%, 4.67%, and 10.67%, respectively. The Prospectuses for each Fund
should be consulted for details about the nature and extent of their
expenses.
The hypothetical values shown in the tables do not reflect any charges
for Federal income taxes against the Separate Account (as opposed to
Premium Charges which are deducted from premium payments), since General
American is not currently making any such charges. However, such
charges may be made in the future and, in that event, the gross annual
investment rate of return of the Divisions of the Separate Account would
have to exceed 0%, 6%, and 12% by an amount sufficient to cover the tax
charges in order to produce the death benefit and Cash Value
illustration. (See Federal Tax Matters.)
The tables illustrate the Policy values that would result based upon the
investment rates of return if premiums are paid as indicated, if all Net
Premiums are allocated to the Separate Account, if no Policy Loans have
been made. The tables are also based on the assumptions that the Owner
has not requested an increase or decrease in the Face Amount, that no
partial withdrawals have been made, that no transfer charges were
incurred, and that no optional riders have been requested.
Upon request, General American will provide a comparable illustration
based upon the proposed Insured's age, sex, and rate class, the Face
Amount or premium requested, the proposed frequency of premium payments,
and any available riders requested.
45
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER AGE
35
DEATH BENEFIT LEVEL (OPTION A) ANNUAL PREMIUM =
$3,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 0.00% (NET RATE OF
- -1.33%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 35 3,000 3,150 890 1,768 250,000 654 1,531
250,000
2 36 3,000 6,458 3,031 3,909 250.000 2,567 3,444
250,000
3 36 3,000 9,930 5,097 5,975 250,000 4,431 5,308
250,000
4 37 3,000 13,577 7,116 7,994 250,000 6,245 7,123
250,000
5 37 3,000 17,406 9,092 9,970 250,000 8,005 8,883
250,000
6 38 3,000 21,426 11,135 11,915 250.000 9,808 10,588
250,000
7 38 3,000 25,647 13,232 13,817 250,000 11,647 12,232
250,000
8 39 3,000 30,080 15,291 15,681 250,000 13,426 13,816
250,000
9 39 3,000 34,734 17,311 17,506 250,000 15,140 15,335
250,000
10 40 3,000 39,620 19,298 19,298 250,000 16,789 16,789
250,000
11 40 3,000 44,751 21,440 21,440 250,000 18,555 18,555
250,000
12 41 3,000 50,139 23,554 23,554 250,000 20,244 20,244
250,000
13 41 3,000 55,796 25,637 25,637 250,000 21,853 21,853
250,000
14 42 3,000 61,736 27,692 27,692 250,000 23,379 23,379
250,000
15 42 3,000 67,972 29,725 29,725 250,000 24,815 24,815
250,000
16 43 3,000 74,521 31,689 31,689 250,000 26,157 26,157
250,000
17 43 3,000 81,397 33,590 33,590 250,000 27,393 27,393
250,000
18 44 3,000 88,617 35,423 35,423 250,000 28,509 28,509
250,000
19 44 3,000 96,198 37,186 37,186 250,000 29,493 29,493
250,000
20 45 3,000 104,158 38,876 38,876 250,000 30,328 30,328
250,000
21 45 3,000 112,516 40,530 40,530 250,000 31,033 31,033
250,000
22 46 3,000 121,291 42,102 42,102 250,000 31,561 31,561
250,000
23 46 3,000 130,506 43,587 43,587 250,000 31,902 31,902
250,000
24 47 3,000 140,181 44,977 44,977 250,000 32,042 32,042
250,000
25 47 3,000 150,340 46,262 46,262 250,000 31,956 31,956
250,000
26 48 3,000 161,007 47,431 47,431 250,000 31,617 31,617
250,000
27 48 3,000 172,208 48,476 48,476 250,000 30,997 30,997
250,000
28 49 3,000 183,968 49,387 49,387 250,000 30,054 30,054
250,000
29 49 3,000 196,317 50,155 50,155 250,000 28,739 28,739
250,000
30 50 3,000 209,282 50,767 50,767 250,000 26,995 26,995
250,000
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
46
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER AGE
35
DEATH BENEFIT LEVEL (OPTION A) ANNUAL PREMIUM =
$3,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 6.00% (NET RATE OF
4.67%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 35 3,000 3,150 1,019 1,897 250,000 775 1,652
250,000
2 36 3,000 6,458 3,419 4,297 250.000 2,925 3,803
250,000
3 36 3,000 9,930 5,884 6,762 250,000 5,153 6,030
250,000
4 37 3,000 13,577 8,445 9,322 250,000 7,459 8,337
250,000
5 37 3,000 17,406 11,109 11,986 250,000 9,844 10,721
250,000
6 38 3,000 21,426 13,990 14,770 250.000 12,406 13,186
250,000
7 38 3,000 25,647 17,084 17,669 250,000 15,144 15,729
250,000
8 39 3,000 30,080 20,301 20,691 250,000 17,965 18,355
250,000
9 39 3,000 34,734 23,648 23,843 250,000 20,866 21,061
250,000
10 40 3,000 39,620 27,134 27,134 250,000 23,853 23,853
250,000
11 40 3,000 44,751 30,978 30,978 250,000 27,134 27,134
250,000
12 41 3,000 50,139 35,007 35,007 250,000 30,521 30,521
250,000
13 41 3,000 55,796 39,226 39,226 250,000 34,019 34,019
250,000
14 42 3,000 61,736 43,649 43,649 250,000 37,630 37,630
250,000
15 42 3,000 67,972 48,289 48,289 250,000 41,355 41,355
250,000
16 43 3,000 74,521 53,115 53,115 250,000 45,197 45,197
250,000
17 43 3,000 81,397 58,141 58,141 250,000 49,151 49,151
250,000
18 44 3,000 88,617 63,374 63,374 250,000 53,214 53,214
250,000
19 44 3,000 96,198 68,824 68,824 250,000 57,382 57,382
250,000
20 45 3,000 104,158 74,499 74,499 250,000 61,649 61,649
250,000
21 45 3,000 112,516 80,488 80,488 250,000 66,077 66,077
250,000
22 46 3,000 121,291 86,731 86,731 250,000 70,607 70,607
250,000
23 46 3,000 130,506 93,241 93,241 250,000 75,245 75,245
250,000
24 47 3,000 140,181 100,030 100,030 250,000 79,991 79,991
250,000
25 47 3,000 150,340 107,109 107,109 250,000 84,842 84,842
250,000
26 48 3,000 161,007 114,493 114,493 250,000 89,793 89,793
250,000
27 48 3,000 172,208 122,198 122,198 250,000 94,843 94,843
250,000
28 49 3,000 183,968 130,244 130,244 250,000 99,983 99,983
250,000
29 49 3,000 196,317 138,654 138,654 250,000 105,203 105,203
250,000
30 50 3,000 209,282 147,454 147,454 250,000 110,496 110,496
250,000
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
47
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER
AGE 35
DEATH BENEFIT LEVEL (OPTION A) ANNUAL PREMIUM =
$3,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 12.00% (NET RATE OF
10.67%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 35 3,000 3,150 1,148 2,026 250,000 896 1,774
250,000
2 36 3,000 6,458 3,824 4,701 250.000 3,299 4,177
250,000
3 36 3,000 9,930 6,736 7,614 250,000 5,935 6,813
250,000
4 37 3,000 13,577 9,940 10,817 250,000 8,828 9,705
250,000
5 37 3,000 17,406 13,470 14,347 250,000 12,000 12,877
250,000
6 38 3,000 21,426 17,471 18,251 250.000 15,579 16,359
250,000
7 38 3,000 25,647 21,972 22,557 250,000 19,592 20,177
250,000
8 39 3,000 30,080 26,923 27,313 250,000 23,979 24,369
250,000
9 39 3,000 34,734 32,372 32,567 250,000 28,777 28,972
250,000
10 40 3,000 39,620 38,378 38,378 250,000 34,033 34,033
250,000
11 40 3,000 44,751 45,240 45,240 250,000 40,026 40,026
250,000
12 41 3,000 50,139 52,847 52,847 250,000 46,627 46,627
250,000
13 41 3,000 55,796 61,279 61,279 250,000 53,905 53,905
250,000
14 42 3,000 61,736 70,629 70,629 250,000 61,935 61,935
250,000
15 42 3,000 67,972 81,003 81,003 250,000 70,800 70,800
250,000
16 43 3,000 74,521 92,476 92,476 250,000 80,598 80,598
250,000
17 43 3,000 81,397 105,177 105,177 250,000 91,428 91,428
250,000
18 44 3,000 88,617 119,242 119,242 250,000 103,407 103,407
250,000
19 44 3,000 96,198 134,826 134,826 250,000 116,671 116,671
250,000
20 45 3,000 104,158 152,102 152,102 250,000 131,370 131,370
250,000
21 45 3,000 112,516 171,418 171,418 257,126 147,819 147,819
250,000
22 46 3,000 121,291 192,816 192,816 281,512 166,120 166,120
250,000
23 46 3,000 130,506 216,500 216,500 307,430 186,480 186,480
264,801
24 47 3,000 140,181 242,715 242,715 334,946 208,991 208,991
288,407
25 47 3,000 150,340 271,735 271,735 364,124 233,864 233,864
313,378
26 48 3,000 161,007 303,866 303,866 395,026 261,362 261,362
339,771
27 48 3,000 172,208 339,414 339,414 434,450 291,702 291,702
373,378
28 49 3,000 183,968 378,742 378,742 477,215 325,174 325,174
409,719
29 49 3,000 196,317 422,255 422,255 523,597 362,100 362,100
449,004
30 50 3,000 209,282 470,403 470,403 573,891 402,841 402,841
491,466
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
48
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER AGE
35
DEATH BENEFIT LEVEL (OPTION B) ANNUAL PREMIUM =
$3,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 0.00% (NET RATE OF
- -1.33%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 35 3,000 3,150 889 1,766 251,766 650 1,528
251,528
2 36 3,000 6,458 3,026 3,904 253,904 2,557 3,434
253,434
3 36 3,000 9,930 5,086 5,964 255,964 4,410 5,288
255,288
4 37 3,000 13,577 7,096 7,973 257,973 6,210 7,087
257,087
5 37 3,000 17,406 9,060 9,937 259,937 7,951 8,828
258,828
6 38 3,000 21,426 11,088 11,868 261,868 9,729 10,509
260,509
7 38 3,000 25,647 13,168 13,753 263,753 11,537 12,122
262,122
8 39 3,000 30,080 15,205 15,595 265,595 13,280 13,670
263,670
9 39 3,000 34,734 17,201 17,396 267,396 14,950 15,145
265,145
10 40 3,000 39,620 19,160 19,160 269,160 16,549 16,549
266,549
11 40 3,000 44,751 21,271 21,271 271,271 18,256 18,256
268,256
12 41 3,000 50,139 23,349 23,349 273,349 19,874 19,874
269,874
13 41 3,000 55,796 25,393 25,393 275,393 21,401 21,401
271,401
14 42 3,000 61,736 27,405 27,405 277,405 22,833 22,833
272,833
15 42 3,000 67,972 29,392 29,392 279,392 24,160 24,160
274,160
16 43 3,000 74,521 31,301 31,301 281,301 25,380 25,380
275,380
17 43 3,000 81,397 33,136 33,136 283,136 26,475 26,475
276,475
18 44 3,000 88,617 34,894 34,894 284,894 27,431 27,431
277,431
19 44 3,000 96,198 36,569 36,569 286,569 28,235 28,235
278,235
20 45 3,000 104,158 38,157 38,157 288,157 28,865 28,865
278,865
21 45 3,000 112,516 39,692 39,692 289,692 29,337 29,337
279,337
22 46 3,000 121,291 41,128 41,128 291,128 29,603 29,603
279,603
23 46 3,000 130,506 42,457 42,457 292,457 29,654 29,654
279,654
24 47 3,000 140,181 43,669 43,669 293,669 29,474 29,474
279,474
25 47 3,000 150,340 44,750 44,750 294,750 29,036 29,036
279,036
26 48 3,000 161,007 45,687 45,687 295,687 28,313 28,313
278,313
27 48 3,000 172,208 46,467 46,467 296,467 27,276 27,276
277,276
28 49 3,000 183,968 47,078 47,078 297,078 25,885 25,885
275,885
29 49 3,000 196,317 47,508 47,508 297,508 24,091 24,091
274,091
30 50 3,000 209,282 47,741 47,741 297,741 21,844 21,844
271,844
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
49
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER AGE
35
DEATH BENEFIT LEVEL (OPTION B) ANNUAL PREMIUM =
$3,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 6.00% (NET RATE OF
4.67%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 35 3,000 3,150 1,017 1,895 251,895 771 1,649
251,649
2 36 3,000 6,458 3,414 4,291 254,291 2,914 3,792
253,792
3 36 3,000 9,930 5,871 6,749 256,749 5,129 6,006
256,006
4 37 3,000 13,577 8,420 9,298 259,298 7,417 8,294
258,294
5 37 3,000 17,406 11,069 11,946 261,946 9,775 10,653
260,653
6 38 3,000 21,426 13,930 14,710 264,710 12,304 13,084
263,084
7 38 3,000 25,647 16,998 17,583 267,583 14,997 15,582
265,582
8 39 3,000 30,080 20,182 20,572 270,572 17,761 18,151
268,151
9 39 3,000 34,734 23,488 23,683 273,683 20,591 20,786
270,786
10 40 3,000 39,620 26,926 26.926 276,926 23,491 23,491
273,491
11 40 3,000 44,751 30,712 30,712 280,712 26,663 26,663
276,663
12 41 3,000 50,139 34,673 34,673 284,673 29,917 29,917
279,917
13 41 3,000 55,796 38,812 38,812 288,812 33,252 33,252
283,252
14 42 3,000 61,736 43,143 43,143 293,143 36,668 36,668
286,668
15 42 3,000 67,972 47,679 47,679 297,679 40,157 40,157
290,157
16 43 3,000 74,521 52,378 52,378 302,378 43,717 43,717
293,717
17 43 3,000 81,397 57,248 57,248 307,248 47,336 47,336
297,336
18 44 3,000 88,617 62,294 62,294 312,294 50,997 50,997
300,997
19 44 3,000 96,198 67,517 67,517 317,517 54,686 54,686
304,686
20 45 3,000 104,158 72,921 72,921 322,921 58,384 58,384
308,384
21 45 3,000 112,516 78,582 78,582 328,582 62,132 62,132
312,132
22 46 3,000 121,291 84,435 84,435 334,435 65,855 65,855
315,855
23 46 3,000 130,506 90,478 90,478 340,478 69,540 69,540
319,540
24 47 3,000 140,181 96,711 96,711 346,711 73,167 73,167
323,167
25 47 3,000 150,340 103,126 103,126 353,126 76,702 76,702
326,702
26 48 3,000 161,007 109,718 109,718 359,718 80,111 80,111
330,111
27 48 3,000 172,208 116,480 116,480 366,480 83,354 83,354
333,354
28 49 3,000 183,968 123,406 123,406 373,406 86,378 86,378
336,378
29 49 3,000 196,317 130,490 130,490 380,490 89,116 89,116
339,116
30 50 3,000 209,282 137,721 137,721 387,721 91,501 91,501
341,501
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
50
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER
AGE 35
DEATH BENEFIT LEVEL (OPTION B) ANNUAL PREMIUM =
$3,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 12.00% (NET RATE OF
10.67%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 35 3,000 3,150 1,147 2,024 252,024 893 1,770
251,770
2 36 3,000 6,458 3,818 4,695 254,695 3,287 4,165
264,165
3 36 3,000 9,930 6,721 7,599 257,599 5,908 6,786
256,786
4 37 3,000 13,577 9,911 10,788 260,788 8,777 9,655
259,655
5 37 3,000 17,406 13,420 14,298 264,298 11,916 12,793
262,793
6 38 3,000 21,426 17,394 18,174 268,174 15,447 16,227
266,227
7 38 3,000 25,647 21,857 22,442 272,442 19,395 19,980
269,980
8 39 3,000 30,080 26,758 27,148 277,442 23,696 24,086
274,086
9 39 3,000 34,734 32,142 32,337 282,337 28,380 33,488
278,575
10 40 3,000 39,620 38,066 38,066 288,066 33,488 33,488
283,488
11 40 3,000 44,751 44,824 44,824 294,824 39,287 39,287
289,287
12 41 3,000 50,139 52,302 52,302 302,302 45,641 45,641
295,641
13 41 3,000 55,796 60,576 60,576 310,576 52,602 52,602
302,602
14 42 3,000 61,736 69,734 69,734 319,734 60,231 60,231
310,231
15 42 3,000 67,972 79,878 79,878 329,878 68,590 68,590
318,590
16 43 3,000 74,521 91,059 91,059 341,059 77,753 77,753
327,753
17 43 3,000 81,397 103,390 103,390 353,390 87,786 87,786
337,786
18 44 3,000 88,617 116,990 116,990 366,990 98,766 98,766
348,766
19 44 3,000 96,198 131,990 131,990 381,990 110,778 110,778
360,778
20 45 3,000 104,158 148,535 148,535 398,535 123,911 123,911
373,911
21 45 3,000 112,516 166,935 166,935 416,935 138,393 138,393
388,393
22 46 3,000 121,291 187,248 187,248 437,248 154,236 154,236
404,236
23 46 3,000 130,506 209,673 209,673 459,673 171,575 171,575
421,575
24 47 3,000 140,181 234,427 234,427 484,427 190,555 190,555
440,555
25 47 3,000 150,340 261,748 261,748 511,748 211,323 211,323
461,323
26 48 3,000 161,007 291,900 291,900 541,900 234,042 234,042
484,042
27 48 3,000 172,208 325,174 325,174 575,174 258,889 258,889
508,889
28 49 3,000 183,968 361,896 361,896 611,896 286,050 286,050
536,050
29 49 3,000 196,317 402,426 402,426 652,426 315,721 315,721
565,721
30 50 3,000 209,282 447,159 447,159 697,159 348,118 348,118
598,118
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
51
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER AGE
35
DEATH BENEFIT LEVEL (OPTION C) ANNUAL PREMIUM =
$3,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 0.00% (NET RATE OF
- -1.33%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 35 3,000 3,150 890 1,768 250,000 654 1,531
250,000
2 36 3,000 6,458 3,031 3,909 250.000 2,567 3,444
250,000
3 36 3,000 9,930 5,097 5,975 250,000 4,431 5,308
250,000
4 37 3,000 13,577 7,116 7,994 250,000 6,245 7,123
250,000
5 37 3,000 17,406 9,092 9,970 250,000 8,005 8,883
250,000
6 38 3,000 21,426 11,135 11,915 250.000 9,808 10,588
250,000
7 38 3,000 25,647 13,232 13,817 250,000 11,647 12,232
250,000
8 39 3,000 30,080 15,291 15,681 250,000 13,426 13,816
250,000
9 39 3,000 34,734 17,311 17,506 250,000 15,140 15,335
250,000
10 40 3,000 39,620 19,298 19,298 250,000 16,789 16,789
250,000
11 40 3,000 44,751 21,440 21,440 250,000 18,555 18,555
250,000
12 41 3,000 50,139 23,554 23,554 250,000 20,244 20,244
250,000
13 41 3,000 55,796 25,637 25,637 250,000 21,853 21,853
250,000
14 42 3,000 61,736 27,692 27,692 250,000 23,379 23,379
250,000
15 42 3,000 67,972 29,725 29,725 250,000 24,815 24,815
250,000
16 43 3,000 74,521 31,689 31,689 250,000 26,157 26,157
250,000
17 43 3,000 81,397 33,590 33,590 250,000 27,393 27,393
250,000
18 44 3,000 88,617 35,423 35,423 250,000 28,509 28,509
250,000
19 44 3,000 96,198 37,186 37,186 250,000 29,493 29,493
250,000
20 45 3,000 104,158 38,876 38,876 250,000 30,328 30,328
250,000
21 45 3,000 112,516 40,530 40,530 250,000 31,033 31,033
250,000
22 46 3,000 121,291 42,102 42,102 250,000 31,561 31,561
250,000
23 46 3,000 130,506 43,587 43,587 250,000 31,902 31,902
250,000
24 47 3,000 140,181 44,977 44,977 250,000 32,042 32,042
250,000
25 47 3,000 150,340 46,262 46,262 250,000 31,956 31,956
250,000
26 48 3,000 161,007 47,431 47,431 250,000 31,617 31,617
250,000
27 48 3,000 172,208 48,476 48,476 250,000 30,997 30,997
250,000
28 49 3,000 183,968 49,387 49,387 250,000 30,054 30,054
250,000
29 49 3,000 196,317 50,155 50,155 250,000 28,739 28,739
250,000
30 50 3,000 209,282 50,767 50,767 250,000 26,995 26,995
250,000
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
52
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER AGE
35
DEATH BENEFIT LEVEL (OPTION C) ANNUAL PREMIUM =
$3,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 6.00% (NET RATE OF
4.67%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 35 3,000 3,150 1,019 1,897 250,000 775 1,652
250,000
2 36 3,000 6,458 3,419 4,297 250.000 2,925 3,803
250,000
3 36 3,000 9,930 5,884 6,762 250,000 5,153 6,030
250,000
4 37 3,000 13,577 8,445 9,322 250,000 7,459 8,337
250,000
5 37 3,000 17,406 11,109 11,986 250,000 9,844 10,721
250,000
6 38 3,000 21,426 13,990 14,770 250.000 12,406 13,186
250,000
7 38 3,000 25,647 17,084 17,669 250,000 15,144 15,729
250,000
8 39 3,000 30,080 20,301 20,691 250,000 17,965 18,355
250,000
9 39 3,000 34,734 23,648 23,843 250,000 20,866 21,061
250,000
10 40 3,000 39,620 27,134 27,134 250,000 23,853 23,853
250,000
11 40 3,000 44,751 30,978 30,978 250,000 27,134 27,134
250,000
12 41 3,000 50,139 35,007 35,007 250,000 30,521 30,521
250,000
13 41 3,000 55,796 39,226 39,226 250,000 34,019 34,019
250,000
14 42 3,000 61,736 43,649 43,649 250,000 37,630 37,630
250,000
15 42 3,000 67,972 48,289 48,289 250,000 41,355 41,355
250,000
16 43 3,000 74,521 53,115 53,115 250,000 45,197 45,197
250,000
17 43 3,000 81,397 58,141 58,141 250,000 49,151 49,151
250,000
18 44 3,000 88,617 63,374 63,374 250,000 53,214 53,214
250,000
19 44 3,000 96,198 68,824 68,824 250,000 57,382 57,382
250,000
20 45 3,000 104,158 74,499 74,499 250,000 61,649 61,649
250,000
21 45 3,000 112,516 80,488 80,488 250,000 66,077 66,077
250,000
22 46 3,000 121,291 86,731 86,731 250,000 70,607 70,607
250,000
23 46 3,000 130,506 93,241 93,241 250,000 75,245 75,245
250,000
24 47 3,000 140,181 100,030 100,030 250,000 79,991 79,991
250,000
25 47 3,000 150,340 107,109 107,109 250,000 84,842 84,842
250,000
26 48 3,000 161,007 114,493 114,493 250,000 89,793 89,793
250,000
27 48 3,000 172,208 122,198 122,198 250,000 94,843 94,843
250,000
28 49 3,000 183,968 130,244 130,244 250,000 99,983 99,983
250,000
29 49 3,000 196,317 138,653 138,653 251,046 105,203 105,203
250,000
30 50 3,000 209,282 147,411 147,411 260,106 110,496 110,496
250,000
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
53
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER
AGE 35
DEATH BENEFIT LEVEL (OPTION C) ANNUAL PREMIUM =
$3,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 12.00% (NET RATE OF
10.67%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 35 3,000 3,150 1,148 2,026 250,000 896 1,774
250,000
2 36 3,000 6,458 3,824 4,701 250.000 3,299 4,177
250,000
3 36 3,000 9,930 6,736 7,614 250,000 5,935 6,813
250,000
4 37 3,000 13,577 9,940 10,817 250,000 8,828 9,705
250,000
5 37 3,000 17,406 13,470 14,347 250,000 12,000 12,877
250,000
6 38 3,000 21,426 17,471 18,251 250.000 15,579 16,359
250,000
7 38 3,000 25,647 21,972 22,557 250,000 19,592 20,177
250,000
8 39 3,000 30,080 26,923 27,313 250,000 23,979 24,369
250,000
9 39 3,000 34,734 32,372 32,567 250,000 28,777 28,972
250,000
10 40 3,000 39,620 38,378 38,378 250,000 34,033 34,033
250,000
11 40 3,000 44,751 45,240 45,240 250,000 40,026 40,026
250,000
12 41 3,000 50,139 52,847 52,847 250,000 46,627 46,627
250,000
13 41 3,000 55,796 61,279 61,279 250,000 53,905 53,905
250,000
14 42 3,000 61,736 70,629 70,629 250,000 61,935 61,935
250,000
15 42 3,000 67,972 81,003 81,003 250,000 70,800 70,800
250,000
16 43 3,000 74,521 92,476 92,476 250,000 80,598 80,598
250,000
17 43 3,000 81,397 105,162 105,162 269,361 91,428 91,428
250,000
18 44 3,000 88,617 119,150 119,150 295,836 103,402 103,402
256,736
19 44 3,000 96,198 134,568 134,568 323,999 116,545 116,545
280,605
20 45 3,000 104,158 151,559 151,559 353,967 130,918 130,918
305,759
21 45 3,000 112,516 170,433 170,433 386,270 146,757 146,757
332,611
22 46 3,000 121,291 191,240 191,240 420,785 164,071 164,071
361,005
23 46 3,000 130,506 214,170 214,170 457,702 182,989 182,989
391,066
24 47 3,000 140,181 239,432 239,432 497,180 203,652 203,652
422,883
25 47 3,000 150,340 267,249 267,249 539,442 226,199 226,199
456,583
26 48 3,000 161,007 297,868 297,868 584,685 250,784 250,784
492,265
27 48 3,000 172,208 331,559 331,559 633,211 277,570 277,570
530,103
28 49 3,000 183,968 368,618 368,618 685,262 306,720 306,720
570,192
29 49 3,000 196,317 409,373 409,373 741,211 338,401 338,401
612,709
30 50 3,000 209,282 454,177 454,177 801,396 372,792 372,792
657,791
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
54
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER AGE
50
DEATH BENEFIT LEVEL (OPTION A) ANNUAL PREMIUM =
$6,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 0.00% (NET RATE OF
- -1.33%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 50 6,000 6,300 2,185 3,906 250,000 1,296 3,017
250,000
2 51 6,000 12,915 6,532 8,254 250,000 4,787 6,508
250,000
3 51 6,000 19,861 10,739 12,460 250,000 8,130 9,851
250,000
4 52 6,000 27,154 14,817 16,538 250,000 11,315 13,036
250,000
5 52 6,000 34,811 18,722 20,494 250,000 14,325 16,046
250,000
6 53 6,000 42,852 22,815 24,345 250.000 17,340 18,870
250,000
7 53 6,000 51,295 26,945 28,093 250,000 20,349 21,497
250,000
8 54 6,000 60,159 30,981 31,746 250,000 23,154 23,919
250,000
9 54 6,000 69,467 34,912 35,295 250,000 25,744 26,127
250,000
10 55 6,000 79,241 38,736 38,736 250,000 28,098 28,098
250,000
11 55 6,000 89,503 42,777 42,777 250,000 30,564 30,564
250,000
12 56 6,000 100,278 46,685 46,685 250,000 32,752 32,752
250,000
13 56 6,000 111,592 50,480 50,480 250,000 34,629 34,629
250,000
14 57 6,000 123,471 54,180 54,180 250,000 36,155 36,155
250,000
15 57 6,000 135,945 57,797 57,797 250,000 37,288 37,288
250,000
16 58 6,000 149,042 60,991 60,991 250,000 37,988 37,988
250,000
17 58 6,000 162,794 64,001 64,001 250,000 38,220 38,220
250,000
18 59 6,000 177,234 66,814 66,814 250,000 37,941 37,941
250,000
19 59 6,000 192,396 69,417 69,417 250,000 37,105 37,105
250,000
20 60 6,000 208,316 71,794 71,794 250,000 35,647 35,647
250,000
21 60 6,000 225,031 74,006 74,006 250,000 33,507 33,507
250,000
22 61 6,000 242,583 75,964 75,964 250,000 30,392 30,392
250,000
23 61 6,000 261,012 77,652 77,652 250,000 26,387 26,387
250,000
24 62 6,000 280,363 79,051 79,051 250,000 21,157 21,157
250,000
25 62 6,000 300,681 80,131 80,131 250,000 14,467 14,467
250,000
26 63 6,000 322,015 80,862 80,862 250,000 6,084 6,084
250,000
27 63 6,000 344,415 81,206 81,206 250,000 <F*> <F*>
<F*>
28 64 6,000 367,936 81,113 81,113 250,000 <F*> <F*>
<F*>
29 64 6,000 392,633 80,532 80,532 250,000 <F*> <F*>
<F*>
30 65 6,000 418,565 79,404 79,404 250,000
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
[FN]
<F*> UNLESS ADDITIONAL PREMIUM IS PAID, POLICY WILL LAPSE WITHOUT VALUE
55
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER AGE
50
DEATH BENEFIT LEVEL (OPTION A) ANNUAL PREMIUM =
$6,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 6.00% (NET RATE OF
4.67%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 50 6,000 6,300 2,455 4,176 250,000 1,537 3,258
250,000
2 51 6,000 12,915 7,346 9,068 250,000 5,492 7,213
250,000
3 51 6,000 19,861 12,383 14,104 250,000 9,529 11,250
250,000
4 52 6,000 27,154 17,582 19,303 250,000 13,643 15,364
250,000
5 52 6,000 34,811 22,958 24,679 250,000 17,822 19,543
250,000
6 53 6,000 42,852 28,729 30,259 250.000 22,249 23,779
250,000
7 53 6,000 51,295 34,906 36,053 250,000 26,917 28,064
250,000
8 54 6,000 60,159 41,317 42,082 250,000 31,632 32,397
250,000
9 54 6,000 69,467 47,966 48,348 250,000 36,390 36,772
250,000
10 55 6,000 79,241 54,861 54,861 250,000 41,175 41,175
250,000
11 55 6,000 89,503 62,391 62,391 250,000 46,387 46,387
250,000
12 56 6,000 100,278 70,225 70,225 250,000 51,651 51,651
250,000
13 56 6,000 111,592 78,400 78,400 250,000 56,951 56,951
250,000
14 57 6,000 123,471 86,953 86,953 250,000 62,263 62,263
250,000
15 57 6,000 135,945 95,922 95,922 250,000 67,567 67,567
250,000
16 58 6,000 149,042 105,054 105,054 250,000 72,846 72,846
250,000
17 58 6,000 162,794 114,575 114,575 250,000 78,093 78,093
250,000
18 59 6,000 177,234 124,510 124,510 250,000 83,298 83,298
250,000
19 59 6,000 192,396 134,892 134,892 250,000 88,454 88,454
250,000
20 60 6,000 208,316 145,760 145,760 250,000 93,547 93,547
250,000
21 60 6,000 225,031 157,311 157,311 250,000 98,643 98,643
250,000
22 61 6,000 242,583 169,471 169,471 250,000 103,527 103,527
250,000
23 61 6,000 261,012 182,311 182,311 250,000 108,316 108,316
250,000
24 62 6,000 280,363 195,910 195,910 250,000 112,863 112,863
250,000
25 62 6,000 300,681 210,364 210,364 250,000 117,108 117,108
250,000
26 63 6,000 322,015 225,787 225,787 250,000 121,015 121,015
250,000
27 63 6,000 344,415 242,292 242,292 254,406 124,545 124,545
250,000
28 64 6,000 367,936 259,596 259,596 272,576 127,659 127,659
250,000
29 64 6,000 392,633 277,677 277,677 291,560 130,317 130,317
250,000
30 65 6,000 418,565 296,560 296,560 311,388 132,447 132,447
250,000
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
56
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER
AGE 50
DEATH BENEFIT LEVEL (OPTION A) ANNUAL PREMIUM =
$6,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 12.00% (NET RATE OF
10.67%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 50 6,000 6,300 2,725 4,447 250,000 1,779 3,501
250,000
2 51 6,000 12,915 8,194 9,916 250,000 6,228 7,949
250,000
3 51 6,000 19,861 14,162 15,884 250,000 11,049 12,770
250,000
4 52 6,000 27,154 20,696 22,417 250,000 16,277 17,998
250,000
5 52 6,000 34,811 27,864 29,586 250,000 21,942 23,663
250,000
6 53 6,000 42,852 35,948 37,478 250.000 28,277 29,807
250,000
7 53 6,000 51,295 45,028 46,176 250,000 35,329 36,476
250,000
8 54 6,000 60,159 55,014 55,779 250,000 42,968 43,733
250,000
9 54 6,000 69,467 66,000 66,382 250,000 51,261 51,644
250,000
10 55 6,000 79,241 78,097 78,097 250,000 60,278 60,278
250,000
11 55 6,000 89,503 91,867 91,867 250,000 70,559 70,559
250,000
12 56 6,000 100,278 107,115 107,115 250,000 81,856 81,856
250,000
13 56 6,000 111,592 124,038 124,038 250,000 94,296 94,296
250,000
14 57 6,000 123,471 142,850 142,850 250,000 108,027 108,027
250,000
15 57 6,000 135,945 163,789 163,789 250,000 123,232 123,232
250,000
16 58 6,000 149,042 186,971 186,971 250,000 140,138 140,138
250,000
17 58 6,000 162,794 212,828 212,828 253,265 159,028 159,028
250,000
18 59 6,000 177,234 241,492 241,492 284,960 180,242 180,242
250,000
19 59 6,000 192,396 273,157 273,157 319,593 204,201 204,201
250,000
20 60 6,000 208,316 308,135 308,135 357,436 231,207 231,207
268,201
21 60 6,000 225,031 347,084 347,084 399,147 261,196 261,196
300,375
22 61 6,000 242,583 390,209 390,209 440,937 294,312 294,312
332,572
23 61 6,000 261,012 437,984 437,984 486,163 330,966 330,966
367,373
24 62 6,000 280,363 490,944 490,944 535,129 371,569 371,569
405,010
25 62 6,000 300,681 549,697 549,697 588,176 416,629 416,629
445,793
26 63 6,000 322,015 614,936 614,936 645,683 466,759 466,759
490,097
27 63 6,000 344,415 687,100 687,100 721,454 522,011 522,011
548,112
28 64 6,000 367,936 766,900 766,900 805,245 582,879 582,879
612,023
29 64 6,000 392,633 855,123 855,123 897,879 649,899 649,899
682,394
30 65 6,000 418,565 952,629 952,629 1,000,260 723,651 723,651
759,834
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
57
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER AGE
50
DEATH BENEFIT LEVEL (OPTION B) ANNUAL PREMIUM =
$6,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 0.00% (NET RATE OF
- -1.33%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 50 6,000 6,300 2,179 3,901 253,901 1,276 2,997
252,997
2 51 6,000 12,915 6,512 8,233 258,233 4,728 6,449
256,449
3 51 6,000 19,861 10,691 12,412 262,412 8,008 9,729
259,729
4 52 6,000 27,154 14,727 16,448 266,448 11,103 12,825
262,825
5 52 6,000 34,811 18,624 20,346 270,346 13,995 15,716
265,716
6 53 6,000 42,852 22,592 24,122 274,122 16,858 18,388
268,388
7 53 6,000 51,295 26,627 27,774 277,774 19,677 20,825
270,825
8 54 6,000 60,159 30,548 31,313 281,313 22,251 23,016
273,016
9 54 6,000 69,467 34,342 34,724 284,724 24,566 24,948
274,948
10 55 6,000 79,241 38,001 38,001 288,001 26,595 26,595
276,595
11 55 6,000 89,503 41,836 41,836 291,836 28,676 28,676
278,676
12 56 6,000 100,278 45,497 45,497 295,497 30,409 30,409
280,409
13 56 6,000 111,592 49,004 49,004 299,004 31,754 31,754
281,754
14 57 6,000 123,471 52,377 52,377 302,377 32,665 32,665
282,665
15 57 6,000 135,945 55,631 55,631 305,631 33,092 33,092
283,092
16 58 6,000 149,042 58,309 58,309 308,309 32,992 32,992
282,992
17 58 6,000 162,794 60,722 60,722 310,722 32,332 32,332
282,332
18 59 6,000 177,234 62,846 62,846 312,846 31,071 31,071
281,071
19 59 6,000 192,396 64,658 64,658 314,658 29,172 29,172
279,172
20 60 6,000 208,316 66,132 66,132 316,132 26,584 26,584
276,584
21 60 6,000 225,031 67,310 67,310 317,310 23,251 23,251
273,251
22 61 6,000 242,583 68,096 68,096 318,096 18,895 18,895
268,895
23 61 6,000 261,012 68,467 68,467 318,467 13,684 13,684
263,684
24 62 6,000 280,363 68,391 68,391 318,391 7,323 7,323
257,323
25 62 6,000 300,681 67,827 67,827 317,827 <F*> <F*>
<F*>
26 63 6,000 322,015 66,735 66,735 316,735 <F*> <F*>
<F*>
27 63 6,000 344,415 65,062 65,062 315,062 <F*> <F*>
<F*>
28 64 6,000 367,936 62,750 62,750 312,750 <F*> <F*>
<F*>
29 64 6,000 392,633 59,740 59,740 309,740 <F*> <F*>
<F*>
30 65 6,000 418,565 55,974 55,974 305,974 <F*> <F*>
<F*>
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
[FN]
<F*> UNLESS ADDITIONAL PREMIUM IS PAID, POLICY WILL LAPSE WITHOUT VALUE
58
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER AGE
50
DEATH BENEFIT LEVEL (OPTION B) ANNUAL PREMIUM =
$6,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 6.00% (NET RATE OF
4.67%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 50 6,000 6,300 2,449 4,170 254,170 1,516 3,237
253,237
2 51 6,000 12,915 7,324 9,045 259,045 5,426 7,147
257,147
3 51 6,000 19,861 12,328 14,049 264,049 9,388 11,109
261,109
4 52 6,000 27,154 17,475 19,196 269,196 13,390 15,111
265,111
5 52 6,000 34,811 22,775 24,496 274,496 17,411 19,132
269,132
6 53 6,000 42,852 28,442 29,972 279,972 21,624 23,154
273,154
7 53 6,000 51,295 34,480 35,628 285,628 26,009 27,157
277,157
8 54 6,000 60,159 40,715 41,480 291,480 30,362 31,127
281,127
9 54 6,000 69,467 47,140 47,523 297,523 34,663 35,045
285,045
10 55 6,000 79,241 53,756 53,756 303,756 38,879 38,879
288,879
11 55 6,000 89,503 60,921 60,921 310,921 43,378 43,378
293,378
12 56 6,000 100,278 68,297 68,297 318,297 47,759 47,759
297,759
13 56 6,000 111,592 75,912 75,912 325,912 51,972 51,972
301,972
14 57 6,000 123,471 83,796 83,796 333,796 55,954 55,954
305,954
15 57 6,000 135,945 91,978 91,978 341,978 59,639 59,639
309,639
16 58 6,000 149,042 99,996 99,996 349,996 62,961 62,961
312,961
17 58 6,000 162,794 108,157 108,157 358,157 65,862 65,862
315,862
18 59 6,000 177,234 116,441 116,441 366,441 68,273 68,273
318,273
19 59 6,000 192,396 124,825 124,825 374,825 70,126 70,126
320,126
20 60 6,000 208,316 133,283 133,283 383,283 71,332 71,332
321,332
21 60 6,000 225,031 141,923 141,923 391,923 71,838 71,838
321,838
22 61 6,000 242,583 150,595 150,595 400,595 71,275 71,275
321,275
23 61 6,000 261,012 159,269 159,269 409,269 69,752 69,752
319,752
24 62 6,000 280,363 167,910 167,910 417,910 66,908 66,908
316,908
25 62 6,000 300,681 176,469 176,469 426,469 62,525 62,525
312,525
26 63 6,000 322,015 184,894 184,894 434,894 56,425 56,425
306,425
27 63 6,000 344,415 193,119 193,119 443,119 48,427 48,427
298,427
28 64 6,000 367,936 201,066 201,066 451,066 38,356 38,356
288,356
29 64 6,000 392,633 208,656 208,656 458,656 26,046 26,046
276,046
30 65 6,000 418,565 215,801 215,801 465,801 11,281 11,281
261,281
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
59
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER
AGE 50
DEATH BENEFIT LEVEL (OPTION B) ANNUAL PREMIUM =
$6,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 12.00% (NET RATE OF
10.67%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 50 6,000 6,300 2,719 4,440 254,440 1,757 3,478
253,478
2 51 6,000 12,915 8,169 9,891 259,891 6,155 7,876
257,876
3 51 6,000 19,861 14,100 15,821 265,821 10,888 12,609
262,609
4 52 6,000 27,154 20,569 22,291 272,291 15,976 17,697
267,697
5 52 6,000 34,811 27,639 29,361 279,361 21,433 23,154
273,154
6 53 6,000 42,852 35,581 37,111 287,111 27,472 29,002
279,002
7 53 6,000 51,295 44,463 45,610 295,610 34,113 35,260
285,260
8 54 6,000 60,159 54,181 54,946 304,946 41,195 41,960
291,960
9 54 6,000 69,467 64,812 65,194 315,194 48,748 49,130
299,130
10 55 6,000 79,241 76,400 76,440 326,440 56,789 56,789
306,789
11 55 6,000 89,503 89,573 89,573 339,573 65,789 65,789
315,789
12 56 6,000 100,278 103,985 103,985 353,985 75,416 75,416
325,416
13 56 6,000 111,592 119,834 119,834 369,834 85,691 85,691
335,691
14 57 6,000 123,471 137,293 137,293 387,293 96,628 96,628
346,628
15 57 6,000 135,945 156,550 156,550 406,550 108,241 108,241
358,241
16 58 6,000 149,042 177,312 177,312 427,312 120,551 120,551
370,551
17 58 6,000 162,794 200,065 200,065 450,065 133,590 133,590
383,590
18 59 6,000 177,234 224,993 224,993 474,993 147,387 147,387
397,387
19 59 6,000 192,396 252,303 252,303 502,303 161,978 161,978
411,978
20 60 6,000 208,316 282,220 282,220 532,220 177,384 177,384
427,384
21 60 6,000 225,031 315,278 315,278 565,278 193,776 193,776
443,776
22 61 6,000 242,583 351,529 351,529 601,529 210,826 210,826
460,826
23 61 6,000 261,012 391,292 391,292 641,292 228,772 228,772
478,772
24 62 6,000 280,363 434,910 434,910 684,910 247,389 247,389
497,389
25 62 6,000 300,681 482,756 482,756 732,756 266,594 266,594
516,594
26 63 6,000 322,015 535,239 535,239 785,239 286,345 286,345
536,345
27 63 6,000 344,415 592,806 592,806 842,806 306,603 306,603
556,603
28 64 6,000 367,936 655,940 655,940 905,940 327,340 327,340
577,340
29 64 6,000 392,633 725,180 725,180 975,180 348,544 348,544
598,544
30 65 6,000 418,565 801,120 801,120 1,051,120 370,157 370,157
620,157
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
60
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER AGE
50
DEATH BENEFIT LEVEL (OPTION C) ANNUAL PREMIUM =
$6,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 0.00% (NET RATE OF
- -1.33%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 50 6,000 6,300 2,185 3,906 250,000 1,296 3,017
250,000
2 51 6,000 12,915 6,532 8,254 250,000 4,787 6,508
250,000
3 51 6,000 19,861 10,739 12,460 250,000 8,130 9,851
250,000
4 52 6,000 27,154 14,817 16,538 250,000 11,315 13,036
250,000
5 52 6,000 34,811 18,772 20,494 250,000 14,325 16,046
250,000
6 53 6,000 42,852 22,815 24,345 250.000 17,340 18,870
250,000
7 53 6,000 51,295 26,945 28,093 250,000 20,349 21,497
250,000
8 54 6,000 60,159 30,981 31,746 250,000 23,154 23,919
250,000
9 54 6,000 69,467 34,912 35,295 250,000 25,744 26,127
250,000
10 55 6,000 79,241 38,736 38,736 250,000 28,098 28,098
250,000
11 55 6,000 89,503 42,777 42,777 250,000 30,564 30,564
250,000
12 56 6,000 100,278 46,685 46,685 250,000 32,752 32,752
250,000
13 56 6,000 111,592 50,480 50,480 250,000 34,629 34,629
250,000
14 57 6,000 123,471 54,180 54,180 250,000 36,155 36,155
250,000
15 57 6,000 135,945 57,797 57,797 250,000 37,288 37,288
250,000
16 58 6,000 149,042 60,991 60,991 250,000 37,988 37,988
250,000
17 58 6,000 162,794 64,001 64,001 250,000 38,220 38,220
250,000
18 59 6,000 177,234 66,814 66,814 250,000 37,941 37,941
250,000
19 59 6,000 192,396 69,417 69,417 250,000 37,105 37,105
250,000
20 60 6,000 208,316 71,794 71,794 250,000 35,647 35,647
250,000
21 60 6,000 225,031 74,006 74,006 250,000 33,507 33,507
250,000
22 61 6,000 242,583 75,964 75,964 250,000 30,392 30,392
250,000
23 61 6,000 261,012 77,652 77,652 250,000 26,387 26,387
250,000
24 62 6,000 280,363 79,051 79,051 250,000 21,157 21,157
250,000
25 62 6,000 300,681 80,131 80,131 250,000 14,467 14,467
250,000
26 63 6,000 322,015 80,862 80,862 250,000 6,084 6,084
250,000
27 63 6,000 344,415 81,206 81,206 250,000 <F*> <F*>
<F*>
28 64 6,000 367,936 81,113 81,113 250,000 <F*> <F*>
<F*>
29 64 6,000 392,633 80,532 80,532 250,000 <F*> <F*>
<F*>
30 65 6,000 418,565 79,404 79,404 250,000 <F*> <F*>
<F*>
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
[FN]
<F*> UNLESS ADDITIONAL PREMIUM IS PAID, POLICY WILL LAPSE WITHOUT VALUE
61
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER AGE
50
DEATH BENEFIT LEVEL (OPTION C) ANNUAL PREMIUM =
$6,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 6.00% (NET RATE OF
4.67%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 50 6,000 6,300 2,455 4,176 250,000 1,537 3,258
250,000
2 51 6,000 12,915 7,346 9,068 250,000 5,492 7,213
250,000
3 51 6,000 19,861 12,383 14,104 250,000 9,529 11,250
250,000
4 52 6,000 27,154 17,582 19,303 250,000 13,643 15,364
250,000
5 52 6,000 34,811 22,958 24,679 250,000 17,822 19,543
250,000
6 53 6,000 42,852 28,729 30,259 250.000 22,249 23,779
250,000
7 53 6,000 51,295 34,906 36,053 250,000 26,917 28,064
250,000
8 54 6,000 60,159 41,317 42,082 250,000 31,632 32,397
250,000
9 54 6,000 69,467 47,966 48,348 250,000 36,390 36,772
250,000
10 55 6,000 79,241 54,861 54,861 250,000 41,175 41,175
250,000
11 55 6,000 89,503 62,391 62,391 250,000 46,387 46,387
250,000
12 56 6,000 100,278 70,225 70,225 250,000 51,651 51,651
250,000
13 56 6,000 111,592 78,400 78,400 250,000 56,951 56,951
250,000
14 57 6,000 123,471 86,953 86,953 250,000 62,263 62,263
250,000
15 57 6,000 135,945 95,922 95,922 250,000 67,567 67,567
250,000
16 58 6,000 149,042 105,054 105,054 250,000 72,846 72,846
250,000
17 58 6,000 162,794 114,575 114,575 250,000 78,093 78,093
250,000
18 59 6,000 177,234 124,510 124,510 250,000 83,298 83,298
250,000
19 59 6,000 192,396 134,892 134,892 250,000 88,454 88,454
250,000
20 60 6,000 208,316 145,760 145,760 250,000 93,547 93,547
250,000
21 60 6,000 225,031 157,311 157,311 250,000 98,643 98,643
250,000
22 61 6,000 242,583 169,455 169,455 254,013 103,527 103,527
250,000
23 61 6,000 261,012 182,062 182,062 267,359 108,316 108,316
250,000
24 62 6,000 280,363 195,121 195,121 280,858 112,863 112,863
250,000
25 62 6,000 300,681 208,640 208,640 294,621 117,108 117,108
250,000
26 63 6,000 322,015 222,629 222,629 308,697 121,015 121,015
250,000
27 63 6,000 344,415 237,093 237,093 323,086 124,545 124,545
250,000
28 64 6,000 367,936 252,037 252,037 337,806 127,659 127,659
250,000
29 64 6,000 392,633 267,469 267,469 352,871 130,317 130,317
250,000
30 65 6,000 418,565 283,396 283,396 368,245 132,447 132,447
250,000
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
62
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $250,000 MALE PREFERRED NONSMOKER
AGE 50
DEATH BENEFIT LEVEL (OPTION C) ANNUAL PREMIUM =
$6,000
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL GROSS ANNUAL RATE OF RETURN OF 12.00% (NET RATE OF
10.67%)
<CAPTION>
ASSUMING CURRENT CHARGES ASSUMING GUARANTEED
CHARGES
------------------------
- ---------------------------
END PREMIUM CASH CASH
OF ANNUAL ACCUM SURRENDER CASH DEATH SURRENDER CASH
DEATH
YEAR AGE PAYMENT @ 5% VALUE VALUE BENEFIT VALUE VALUE
BENEFIT
- ------------------------------------------------------------------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 50 6,000 6,300 2,725 4,447 250,000 1,779 3,501
250,000
2 51 6,000 12,915 8,194 9,916 250,000 6,228 7,949
250,000
3 51 6,000 19,861 14,162 15,884 250,000 11,049 12,770
250,000
4 52 6,000 27,154 20,696 22,417 250,000 16,277 17,998
250,000
5 52 6,000 34,811 27,864 29,586 250,000 21,942 23,663
250,000
6 53 6,000 42,852 35,948 37,478 250.000 28,277 29,807
250,000
7 53 6,000 51,295 45,028 46,176 250,000 35,329 36,476
250,000
8 54 6,000 60,159 55,014 55,779 250,000 42,968 43,733
250,000
9 54 6,000 69,467 66,000 66,382 250,000 51,261 51,644
250,000
10 55 6,000 79,241 78,097 78,097 250,000 60,278 60,278
250,000
11 55 6,000 89,503 91,867 91,867 250,000 70,559 70,559
250,000
12 56 6,000 100,278 107,115 107,115 250,000 81,856 81,856
250,000
13 56 6,000 111,592 124,038 124,038 250,000 94,296 94,296
250,000
14 57 6,000 123,471 142,841 142,841 258,628 108,027 108,027
250,000
15 57 6,000 135,945 163,606 163,606 288,683 123,232 123,232
250,000
16 58 6,000 149,042 186,254 186,254 320,469 140,138 140,138
250,000
17 58 6,000 162,794 211,126 211,126 354,480 158,878 158,878
266,757
18 59 6,000 177,234 238,427 238,427 390,877 179,210 179,210
293,797
19 59 6,000 192,396 268,383 268,383 429,869 201,238 201,238
322,323
20 60 6,000 208,316 301,239 301,239 471,679 225,087 225,087
352,441
21 60 6,000 225,031 337,568 337,568 516,985 251,102 251,102
384,562
22 61 6,000 242,583 377,425 377,425 565,760 279,136 279,136
418,424
23 61 6,000 261,012 421,143 421,143 618,448 309,456 309,456
454,436
24 62 6,000 280,363 469,085 469,085 675,200 342,098 342,098
492,416
25 62 6,000 300,681 521,637 521,637 736,603 377,177 377,177
532,611
26 63 6,000 322,015 579,219 579,219 803,145 414,844 414,844
575,223
27 63 6,000 344,415 642,285 642,285 875,242 455,272 455,272
620,399
28 64 6,000 367,936 711,318 711,318 953,380 498,657 498,657
668,350
29 64 6,000 392,633 786,850 786,850 1,038,091 545,229 545,229
719,321
30 65 6,000 418,565 869,465 869,465 1,129,783 595,221 595,221
773,430
</TABLE>
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF
INSURANCE RATES FOR THE EXACT COMBINATION OF PREMIUMS AND BENEFITS
SHOWN.
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
THE HYPOTHETICAL INVESTMENT RATE OF RETURN SHOWN ABOVE IS ILLUSTRATIVE
ONLY AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE
RESULTS. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN
AND WILL DEPEND UPON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT
ALLOCATION MADE BY THE POLICY OWNER AND THE INVESTMENT RESULTS OF THE
FUNDS SELECTED. THE CASH VALUE, CASH SURRENDER VALUE AND DEATH BENEFIT
FOR A POLICY WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL RATES OF
RETURN AVERAGED THE RATE SHOWN ABOVE OVER A PERIOD OF YEARS, BUT ALSO
FLUCTUATED ABOVE OR BELOW THAT AVERAGE FOR INDIVIDUAL POLICY YEARS. NO
REPRESENTATION CAN BE MADE BY THE COMPANY, WALNUT STREET SECURITIES, THE
FUNDS, OR ANY REPRESENTATIVE THEREOF, THAT THIS HYPOTHETICAL RATE OF
RETURN CAN BE ACHIEVED FOR ANY ONE YEAR, OR SUSTAINED OVER ANY PERIOD OF
TIME.
ILLUSTRATED VALUES SHOWN ABOVE ARE AS OF THE END OF THE POLICY YEARS
INDICATED AND ASSUME ANY ADDITIONAL PREMIUMS SHOWN ARE RECEIVED ON THE
POLICY ANNIVERSARIES. ILLUSTRATED VALUES ASSUME ALL PREMIUM TAXES ARE
PAID BY THE COMPANY.
63
<PAGE>
<PAGE>
PART II
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
and 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 351.355 of the Missouri General and Business Corporation Law, in
brief, allows a corporation to indemnify any person who is a party or is
threatened to be made a party to any threatened, pending, or completed
action, suit, or proceeding, whether civil, criminal, administrative, or
investigative by reason of the fact that he is or was a director,
officer, employee, or agent of the corporation, against expenses,
including attorneys' fees, judgments, fines, and amounts paid in
settlement actually and reasonably incurred by him in connection with
such action if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the
corporation. When any person was or is a party or is threatened to be
made a party in an action or suit by or in the right of the corporation
to procure a judgment in its favor by reason of the Fact that he is or
was a director, officer, employee, or agent of the corporation,
indemnification may be paid unless such person shall have been adjudged
to be liable for negligence or misconduct in the performance of his duty
to the corporation. In the event of such a determination
indemnification is allowed if a court determines that the person is
fairly and reasonably entitled to indemnity. A corporation has the
power to give any further indemnity to any person who is or was a
director, officer, employee, or agent, provided for in the articles of
incorporation or as authorized by any by-law which has been adopted by
vote of the shareholders, provided that no such indemnity shall
indemnify any person's conduct which was finally adjudged to have been
knowingly fraudulent, deliberately dishonest, or willful misconduct.
In accordance with Missouri law, General American's Board of Directors,
at its meeting on 19 November 1987, and the policyholders of General
American at the annual meeting held on 26 January 1988, adopted the
following resolutions:
"BE IT RESOLVED THAT
II-1
<PAGE>
<PAGE>
1. The company shall indemnify any person who is, or was a
director, officer, or employee of the company, or is or was
serving at the request of the company as a director, officer,
employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against any and all expenses
(including attorneys' fees), judgments, fines, and amounts paid in
settlement, actually and reasonably incurred by him or her in
connection with any civil, criminal, administrative, or
investigative action, proceeding, or claim (including an action by
or in the right of the company), by reason of the fact that he or
she was serving in such capacity if he or she acted in good faith
and in a manner he or she reasonably believed to be in or not
opposed to the best interests of the company; provided that such
person's conduct is not finally adjudged to have been knowingly
fraudulent, deliberately dishonest, or willful misconduct.
2. The indemnification provided herein shall not be deemed
exclusive of any other rights to which a director, officer, or
employee may be entitled under any agreement, vote of
policyholders or disinterested directors, or otherwise, both as to
action in his or her official capacity and as to action in another
capacity which holding such office, and shall continue as to a
person who has ceased to be a director, officer, or employee and
shall inure to the benefit of the heirs, executors and
administrators of such a person."
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.
II-2
<PAGE>
<PAGE>
REPRESENTATIONS PURSUANT TO RULE 6e-3(T)
This filing is made pursuant to Rules 6c-3 and 6e-3(T) under the
Investment Company Act of 1940.
Registrant elects to be governed by Rule 6e-3(T)(b)(13)(i)(A) under the
Investment Company Act of 1940 with respect to the Policies described in
the Prospectuses.
Registrant makes the following representations:
(1) Section 6e-3(T)(b)(13)(iii)(F) has been relied upon.
(2) The level of the mortality and expense risk charge is within
the range of industry practice for comparable flexible
premium variable life insurance policies, and is reasonable
in relation to the risks assumed by the Company under the
Policies.
(3) Registrant has concluded that there is a reasonable
likelihood that the distribution financing arrangement of
the Separate Account will benefit the Separate Account and
Owners and will keep and make available to the Commission on
request a memorandum setting forth the basis for this
representation.
(4) The Separate Account will invest only in management
investment companies which have undertaken to have a board
of directors or trustees, a majority of whom are not
interested persons of the company, formulate and approve any
plan under Rule 12b-1 to finance distribution expenses.
The methodology used to support the representation made in paragraph (2)
above is based on an analysis of the mortality and expense risk charges
contained in other flexible premium variable life insurance policies.
Registrant undertakes to keep and make available to the Commission on
request the documents used to support the representation in paragraph
(2) above.
II-3
<PAGE>
<PAGE>
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following Papers and
Documents:
The facing sheet
Variable Universal Life 98 Prospectus, consisting of 64
pages
The undertaking to file reports required by Section 15 (d),
1934 Act
The undertaking pursuant to Rule 484, 1933 Act
Representations pursuant to Rule 6e-3(T), 1940 Act
The signatures
1. The following exhibits (which correspond in number to the numbers
under paragraph A of the instructions for exhibits to Form N-8B-
2):
(1) Resolution of the Board of Directors of General
American authorizing establishment of the
Separate Account <F1>
(2) Not applicable
(3) (a) Principal Underwriting Agreement <F1>
(b) Proposed form of Selling Agreement <F1>
(c) Commission Schedule <F1>
(4) Not applicable
(5) Form of Variable Universal Life 98 Policy <F2>
(6) (a) Amended Charter and Articles of Incorporation of
General American <F1>
(b) Amended and Restated By-Laws of General American <F1>
(7) Not applicable
(8) (a) Form of Agreement to Purchase Shares of
General American Capital Company <F2>
(b) Form of Participation Agreement with Variable
Insurance Products Fund <F2>
II-4
<PAGE>
<PAGE>
(c) Form of Participation Agreement with Variable
Insurance Products II <F2>
(d) Form of Participation Agreement with J.P. Morgan
Series Trust II <F2>
(e) Form of Participation Agreement with VanEck Worldwide
Insurance Trust <F2>
(f) Form of Participation Agreement with American Century
Variable Portfolios <F2>
(9) Not applicable
(10) (a) Form of Application <F2>
2. Memorandum describing General American's issuance,
transfer, and redemption procedures for the Policies and
General American's procedure for conversion to a fixed
benefit policy.
3. The following exhibits are numbered to correspond to the numbers
in the instructions as to exhibits for Form S-6.
(1) See above
(2) See Exhibit 1(5)
(3) Opinion of Matthew P. McCauley, Associate General
Counsel of General American <F2>
(4) Financial statements will be supplied in a later
post-effective amendment
(5) Not applicable
4. (a) Opinion and Consent of Susan M. Benjamin, FSA,
MAAA <F2>
[FN]
_____________________
<F1> Incorporated by reference to the initial Registration
Statement and File No. 33-48550.
<F2> Incorporated by reference to Pre-Effective Amendment No. 1
to the Registration Statement, File No. 33-48550.
II-5
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, General
American Life Insurance Company and General American Separate Account
Eleven have duly caused this Registration Statement to be signed on
their behalf by the undersigned thereunto duly authorized, and the seal
of General American Life Insurance Company to be hereunto affixed and
attested, all in the City of St. Louis, State of Missouri, on the 25th
day of February 1999.
GENERAL AMERICAN SEPARATE ACCOUNT
ELEVEN (Registrant)
(Seal) BY: GENERAL AMERICAN LIFE
INSURANCE COMPANY (for Registrant
and as Depositor)
Attest:/s/ Robert J. Banstetter, Sr. By: /s/ Richard A. Liddy
----------------------------- ----------------------------------
Robert J. Banstetter, Sr. Richard A. Liddy
Secretary President
General American Life
Insurance Company
II-6
<PAGE>
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this amended
Registration Statement has been signed below by the following persons in
the capacities and on the dates indicated.
<TABLE>
<CAPTION>
Signature Title Date
- --------- ----- ----
<S> <C> <C>
/s/ Richard A. Liddy
- -------------------------------- Chairman, President 2/25/99
Richard A. Liddy (Principal Executive
Officer)
/s/ David L. Herzog
- -------------------------------- Vice President 2/25/99
David L. Herzog Principal Financial
Officer
- -------------------------------- Director
August A. Busch, III<F*>
- -------------------------------- Director
William E. Cornelius<F*>
- -------------------------------- Director
John C. Danforth<F*>
- -------------------------------- Director
Bernard A. Edison<F*>
/s/ Richard A. Liddy
- -------------------------------- Director 2/25/99
Richard A. Liddy
- -------------------------------- Director
William E. Maritz<F*>
- -------------------------------- Director
Craig D. Schnuck<F*>
II-7
<PAGE>
<PAGE>
CAPTION>
Signature Title Date
- --------- ----- ----
<S> <C> <C>
- -------------------------------- Director
William P. Stiritz<F*>
- -------------------------------- Director
Andrew C. Taylor<F*>
- -------------------------------- Director
H. Edwin Trusheim<F*>
- -------------------------------- Director
Robert L. Virgil, Jr.<F*>
- -------------------------------- Director
Virginia V. Weldon<F*>
- -------------------------------- Director
Ted C. Wetterau<F*>
By /s/ Matthew P. McCauley
---------------------------- 2/25/99
Matthew P. McCauley
<FN>
<F*> Original powers of attorney authorizing Matthew P. McCauley to sign
this Registration Statement and Amendments thereto on behalf of the
Board of Directors of General American Life Insurance Company are on
file with the Securities and Exchange Commission.
</TABLE>
II-8
