<PAGE>
As filed with the Securities and Exchange Commission on April 28, 2000.
Registration No. 33-84104
811-4901
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 7
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
(Name of Depositor)
700 Market Street
St. Louis, MO 63101
(Complete Address of Depositor's Principal Executive Offices)
Christopher A. Martin, Esquire
General American Life Insurance Company
700 Market Street
St. Louis, MO 63101
(Name and Address of Agent for Service of Process)
It is proposed that this filing will become effective (check appropriate
space)
[ ] immediately upon filing pursuant to paragraph (b), of Rule 485
[X] on May 1, 2000, pursuant to paragraph (b) of Rule 485
[ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485
[ ] 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
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<PAGE>
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
ISSUED BY
GENERAL AMERICAN LIFE INSURANCE COMPANY
700 MARKET STREET
ST. LOUIS, MISSOURI 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 2. 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, 2000. The Policy is 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.
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<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
SUMMARY 1
DEFINITIONS 12
THE COMPANY AND THE SEPARATE ACCOUNT 17
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
SEI Investments Management Corporation
Metropolitan Series Fund
New England Zenith Fund
ADDITION, DELETION, OR SUBSTITUTION OF INVESTMENTS 24
POLICY BENEFITS 24
Death Benefit
Cash Value
POLICY RIGHTS 29
Loans
Surrender and Partial Withdrawals
Transfers
Portfolio Rebalancing
Dollar Cost Averaging
Right to Examine Policy
Conversion Privilege
PAYMENT AND ALLOCATION OF PREMIUMS 35
Issuance of a Policy
Premiums
Allocation of Net Premiums and Cash Value
Policy Lapse and Reinstatement
CHARGES AND DEDUCTIONS 37
Premium Tax Charges
Monthly Deduction
Contingent Deferred Sales Charge
Separate Account Charges
DIVIDENDS 44
THE GENERAL ACCOUNT 44
General Description
The Policy
General Account Benefits
General Account Cash Value
Transfers, Surrenders, Partial Withdrawals, and Policy Loans
GENERAL MATTERS 46
Postponement of Payments from the Separate Account
The Contract
Control of Policy
Beneficiary
Change of Owner or Beneficiary
Policy Changes
Conformity with Statutes
Claims of Creditors
Incontestability
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Assignment
Suicide
Misstatement of Age or Sex and Corrections
Additional Insurance Benefits
Records and Reports
DISTRIBUTION OF THE POLICIES 49
FEDERAL TAX MATTERS 49
Introduction
Tax Status of the Policy
UNISEX REQUIREMENTS UNDER MONTANA LAW 52
SAFEKEEPING OF THE SEPARATE ACCOUNT'S ASSETS 52
VOTING RIGHTS 53
STATE REGULATION OF THE COMPANY 53
MANAGEMENT OF THE COMPANY 54
LEGAL MATTERS 57
LEGAL PROCEEDINGS 57
EXPERTS 57
ADDITIONAL INFORMATION 57
FINANCIAL STATEMENTS 57
APPENDIX A 58
Illustrations of Death Benefits and Cash Values
APPENDIX B 68
Target Premium Factors per Thousand of Face Amount
</TABLE>
<PAGE>
<PAGE>
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.
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.
1
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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.
The divisions of the separate account represent investment funds run by
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.
NOTE: THE RUSSELL INSURANCE FUNDS ARE ONLY AVAILABLE ON POLICIES WITH AN
ISSUE DATE PRIOR TO JANUARY 1, 2000.
<TABLE>
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<CAPTION>
INVESTMENT COMPANY INVESTMENT MANAGER/ADVISER
- -------------------------------------------------------------------------------------------------------
<S> <C>
General American Capital Company Conning Asset Management Company
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Russell Insurance Funds Frank Russell Investment Management Company
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American Century Variable Portfolios American Century Investment Management, Inc.
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J.P. Morgan Series Trust II J.P. Morgan Investment Management, Inc.
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Fidelity Investments Variable Insurance Products Fund Fidelity Management & Research Company
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Fidelity Investments Variable Insurance Products Fund II Fidelity Management & Research Company
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Fidelity Investments Variable Insurance Products Fund II Fidelity Management & Research Company
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Van Eck Worldwide Insurance Trust Van Eck Associates Corporation
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SEI Insurance Products Trust SEI Investments Management Company
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Metropolitan Series Fund, Inc. Metropolitan Life Insurance Company
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New England Zenith Fund New England Investment Management, Inc.
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</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>
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INVESTMENT FUND INVESTMENT
MANAGER NAME TYPE OBJECTIVE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Conning S&P 500 Index Fund Growth & Income To achieve a rate of return that parallels
Asset Management the return of the stock market as a whole,
Company as represented by the Standard and Poor's
500 Stock Index.
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Conning Money Market Fund Money Market To obtain the highest level of current income
Asset Management consistent with the preservation of capital
Company and maintenance of liquidity.
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Conning Bond Index Fund Corporate Bonds To provide a rate of return that reflects the
Asset Management performance of the bond market as a whole,
Company as measured by the Lehman Brothers
Government/Corporate Bond Index.
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Conning Asset Allocation Fund Balanced To obtain a high rate of long-term return,
Asset Management composed of capital growth and income.
Company
- -----------------------------------------------------------------------------------------------------------------------------------
Conning Managed Equity Fund Growth To obtain long-term capital growth through
Asset Management investment in common stocks.
Company
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2
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<CAPTION>
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INVESTMENT FUND INVESTMENT
MANAGER NAME TYPE OBJECTIVE
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<S> <C> <C> <C>
Conning International Growth: To obtain investment results that parallel
Asset Management Index Fund International the price and yield performance of
Company Stock publicly-traded common stocks in the Morgan
Stanley Capital International, Europe,
Australia, and Far East Index ("EAFE Index").
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Conning Mid-Cap Equity Fund Growth To obtain long-term capital appreciation
Asset Management through investment primarily in common stocks
Company of U.S.-based, publicly traded companies with
medium market capitalization, defined as
within the range of the S&P Mid-Cap 400 at
the time of the Fund's investment.
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Conning Small-Cap Equity Fund Aggressive Growth To provide a high rate of return through
Asset Management investment in the common stock of small
Company companies, making up, at one time, the
smallest 20% of U.S.-based companies on the
New York Stock Exchange.
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Fidelity Management & Growth Portfolio Growth To seek capital appreciation, normally
Research Company through purchases of common stocks, although
its investments are not restricted to any one
type of security.
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Fidelity Management & Equity-Income Portfolio Growth & Income To seek reasonable income by investing
Research Company primarily in income-producing equity
securities.
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Fidelity Management & Overseas Portfolio Growth: To seek long term growth of capital primarily
Research Company International through investment in foreign securities.
Stock
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Fidelity Management & Asset Manager Portfolio Balanced To seek a high total return with reduced risk
Research Company over the long-term by allocating its assets
among domestic and foreign stocks, bonds, and
short-term fixed income instruments.
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Fidelity Management & High Income Portfolio High Yield Bond To seek a high level of current income by
Research Company investing primarily in high yielding,
lower-rated, fixed income securities, while
also considering growth of capital.
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Fidelity Management & Mid Cap Portfolio Long-Term Growth To seek long-term growth by investing primarily
Research Company of Capital in common stocks, with at least 65% of total
assets in securities of companies with medium
market capitalizations, similar to those in the
S&P MidCap 400. The fund may potentially invest
in domestic and foreign companies with smaller
or larger market capitalizations, investing in
"growth" and/or "value" stocks. The fund
selects investments by using fundamental
analysis of each issuer's financial condition
and industry position and market and economic
conditions.
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Van Eck Associates Worldwide Hard Aggressive Growth: To seek long-term capital appreciation by
Corporation Assets Fund Specialty investing in equity and debt securities of
- -----------------------------------------------------------------------------------------------------------------------------------
3
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<PAGE>
<CAPTION>
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INVESTMENT FUND INVESTMENT
MANAGER NAME TYPE OBJECTIVE
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<S> <C> <C> <C>
companies engaged in the exploration,
development, production, and distribution of
gold and other natural resources such as
strategic and other metals, minerals, forest
products, oil, natural gas, and coal.
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Van Eck Associates Worldwide Emerging Aggressive Growth: To obtain long-term capital appreciation by
Corporation Markets Fund International Stock 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.
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Frank Russell Multi-Style Equity Fund Growth & Income To obtain income and capital growth by
Investment Management investing principally in equity securities.
Company
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Frank Russell Aggressive Equity Fund Aggressive Growth To provide capital appreciation by assuming a
Investment Management higher level of volatility than is ordinarily
Company expected from the Multi-Style Equity Fund, by
investing in equity securities.
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Frank Russell Non-U.S. Fund Growth: To achieve favorable total return and
Investment Management International Stocks additional diversification for United States
Company and Bonds investors by investing primarily in equity
and debt securities of non-United States
companies and non-United States governments.
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Frank Russell Core Bond Fund Growth & Income To maximize total return through capital
Investment Management appreciation and income by assuming a level
Company of volatility consistent with the broad
fixed-income market, by investing in
fixed-income securities.
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J.P. Morgan Investment Bond Portfolio Growth & Income To provide a high total return consistent
Management, Inc. with moderate risk of capital and maintenance
of liquidity.
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J.P. Morgan Investment Small Company Portfolio Aggressive Growth To provide high total return from a portfolio
Management, Inc. 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.
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American Century Income & Growth Fund Growth & Income To attain long-term growth of capital as well
Investment as current income. The fund pursues a total
Management, Inc. return and dividend yield that exceeds those
of the S&P 500 by investing in stocks of
companies with strong dividend growth
potential.
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American Century International Fund Aggressive Growth: To obtain capital growth over time by
Investment International Stock investing in common stocks of foreign
Management, Inc. companies considered to have
better-than-average prospects for
appreciation. Because this fund invests in
foreign securities, a higher degree of
short-term
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4
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<PAGE>
<CAPTION>
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INVESTMENT FUND INVESTMENT
MANAGER NAME TYPE OBJECTIVE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
price volatility, or risk, is
expected due to factors such as currency
fluctuation and political instability.
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American Century Value Fund Growth To attain long-term capital growth, with
Investment income as a secondary objective. The Fund
Management, Inc. invests primarily in equity securities of
well-established companies that are believed
by management to be undervalued at the time
of purchase.
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SEI Investments Large Cap Value Long-Term Growth Utilizing multiple specialist sub-advisers that
Management Fund of Capital and manage in a value style, the Fund invests in
Corporation Income large cap income-producing U.S. common stocks.
- -----------------------------------------------------------------------------------------------------------------------------------
SEI Investments Large Cap Growth Capital Appreciation Utilizing multiple specialist sub-advisers that
Management Fund manage in a growth style, the Fund invests in
Corporation large cap U.S. common stocks.
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SEI Investments Small Cap Value Capital Appreciation Utilizing multiple specialist sub-advisers that
Management Fund manage in a value style, the Fund invests in
Corporation common stocks of smaller U.S. companies.
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SEI Investments Small Cap Growth Long-Term Capital Utilizing multiple specialist sub-advisers that
Management Fund Appreciation manage in a growth style, the Fund invests in
Corporation common stocks of smaller U.S. companies.
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SEI Investments International Equity Capital Appreciation Utilizing multiple specialist sub-advisers, the
Management Fund Fund invests in equity securities of foreign
Corporation companies.
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SEI Investments Emerging Markets Capital Appreciation Utilizing multiple specialist sub-advisers, the
Management Equity Fund Fund invests in equity securities of emerging
Corporation markets companies.
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SEI Investments Core Fixed Income Current Income and Utilizing multiple specialist sub-advisers that
Management Fund Preservation of have fixed income investment expertise, the
Corporation Capital Fund invests in investment grade U.S. fixed
income securities.
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SEI Investments High Yield Bond Total Return Utilizing a specialist sub-adviser that has high
Management Fund yield investment expertise, the Fund invests in
Corporation high yield, high risk securities.
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SEI Investments International Fixed Capital Appreciation Utilizing a specialist sub-adviser, the Fund
Management Income Fund and Current Income invests in investment grade fixed income
Corporation securities of foreign government and corporate
issuers.
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SEI Investments Emerging Markets Total Return Utilizing a specialist sub-adviser, the Fund
Management Debt Fund invests U.S. dollar denominated debt in
Corporation securities of emerging market issuers.
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Metropolitan Life Janus Mid-Cap Long-Term Growth The Portfolio normally invests at least 65%
Insurance Company Portfolio of Capital of its total assets in common stocks of medium
capitalization companies selected for their
growth potential. The portfolio manager defines
medium capitalization ("mid-cap") companies as
those whose market capitalization falls within
the range of companies included in the S&P
MidCap 400 Index at the time of the purchase.
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5
<PAGE>
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT FUND INVESTMENT
MANAGER NAME TYPE OBJECTIVE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Metropolitan Life T. Rowe Price Long-Term Growth The Portfolio normally invests at least 65% of
Insurance Company Large Cap Growth of Capital and, its total assets in a diversified group of large
Portfolio Secondarily, capitalization growth companies. The portfolio
Dividend Income managers define large capitalization ("large-
cap") companies as those whose market
capitalization falls within the range of the
largest 300 companies included in the Russell
3000 Index at the time of the purchase.
- -----------------------------------------------------------------------------------------------------------------------------------
Metropolitan Life T. Rowe Price Long-Term Capital The Portfolio normally invests at least 65% of
Insurance Company Small Cap Growth Growth its total assets in a diversified group of small
Portfolio capitalization companies. The portfolio manager
defines small capitalization ("small cap")
companies as those whose market capitalization
falls within the range of companies included in
the bottom 10% of the S&P 500 Index at the time
of the purchase.
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New England Alger Equity Growth Alger invests Equity Growth's assets primarily
Investment Growth Series in growth stocks. Alger will ordinarily invest
Management, Inc. at least 65% of Equity Growth's total assets in
equity securities of issues with market
capitalization of $1 billion or greater.
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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. You may only
transfer funds once in a policy month. (A policy month is measured
beginning on the same day of the month that the policy was issued, and
ending one day before the same day in the next month.) The amount
transferred from any investment fund must be at least $500, or the
entire balance in the fund if less than $500.
We have the right to 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.
TAX CHARGE. The Federal government and many states and territories
impose taxes or charges on insurance premiums. We deduct 3.35% from
your premium payment to cover that cost -- 2.10% for the state tax
charge, and 1.25% for the federal tax charge.
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.)
SELECTION AND ISSUE EXPENSE CHARGE. There is a charge to cover the
costs of underwriting issuing your policy. This charge is based on
the size of your policy. During the first policy year, the charge is
$0.16 (sixteen cents) for each $1,000 of face amount of your policy.
Beginning in the second policy year, and continuing for the life of the
policy, the charge drops to $0.01 (one cent) for each $1,000 of face
amount.
SURRENDER CHARGE. If you surrender your policy or let it lapse during
the first fifteen (or fewer, in some cases) 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.
This charge generally applies to surrenders that occur during the first
fifteen policy years, but the charge
6
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<PAGE>
ends sooner for policies issued at some older ages and in some risk
classes.
The surrender charge is based on a "grading percentage," which is
determined by the age, sex, and risk class of the person insured under
the policy. This "grading percentage" is multiplied by:
* 40% of the target premium or the premiums actually paid for the
base policy (the policy itself, without any riders), plus
* the "excess premium surrender charge factor" multiplied by
premiums paid in excess of the target premium.
You can find the information you need to determine the surrender charge
for your policy on the policy specifications page. There is a section
in this prospectus, beginning on page 39, that explains the charge in
greater detail. This section includes charts that show the how long the
surrender charge applies, the "grading percentage" and the "excess
premium surrender charge factor."
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 and Partial Withdrawal; 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 $13 each month for the first policy
year. Beginning with the second policy year, the charge is $6 each
month for the life of the policy. We will deduct the charge from your
cash value each month.
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 an annual rate of 0.90% of the 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, 1999:
<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 .29% .10% .39%
- -------------------------------------------------------------------------------------------
7
<PAGE>
<PAGE>
- -------------------------------------------------------------------------------------------
Asset Allocation Fund .50% .10% .60%
- -------------------------------------------------------------------------------------------
International Index Fund .50%<F2> .30% .80%
- -------------------------------------------------------------------------------------------
Mid-Cap Equity Fund .55%<F3> .10% .65%
- -------------------------------------------------------------------------------------------
Small-Cap Equity Fund .25% .05% .30%
- -------------------------------------------------------------------------------------------
<CAPTION>
RUSSELL INSURANCE FUNDS
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Multi-Style Equity Fund .74% .18% .92%<F4>
- -------------------------------------------------------------------------------------------
Aggressive Equity Fund .86% .39% 1.25%<F5>
- -------------------------------------------------------------------------------------------
Non-U.S. Fund .75% .55% 1.30%<F6>
- -------------------------------------------------------------------------------------------
Core Bond Fund .54% .26% .80%<F7>
- -------------------------------------------------------------------------------------------
<CAPTION>
AMERICAN CENTURY VARIABLE PORTFOLIOS
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Income & Growth Fund .70% .00% .70%
- -------------------------------------------------------------------------------------------
International Fund 1.37% .00% 1.37%
- -------------------------------------------------------------------------------------------
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%
- -------------------------------------------------------------------------------------------
<CAPTION>
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Equity-Income Portfolio .48% .08% .56%
- -------------------------------------------------------------------------------------------
Growth Portfolio .58% .07% .65%
- -------------------------------------------------------------------------------------------
Overseas Portfolio .73% .14% .87%
- -------------------------------------------------------------------------------------------
High Income Portfolio .58% .11% .69%
- -------------------------------------------------------------------------------------------
<CAPTION>
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Asset Manager .53% .09% .62%
- -------------------------------------------------------------------------------------------
<CAPTION>
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mid Cap Portfolio .97% .00% .97%
- -------------------------------------------------------------------------------------------
<CAPTION>
VAN ECK WORLDWIDE INSURANCE TRUST
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Worldwide Hard Assets Fund 1.00% .34% 1.34%
- -------------------------------------------------------------------------------------------
Worldwide Emerging Markets Fund 1.00% .26% 1.26%
- -------------------------------------------------------------------------------------------
<CAPTION>
SEI INSURANCE PRODUCTS TRUST
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Large Cap Value Fund .35% .50% .85%<F8>
- -------------------------------------------------------------------------------------------
Large Cap Growth Fund .40% .45% .85%<F8>
- -------------------------------------------------------------------------------------------
Small Cap Value Fund .65% .45% 1.10%<F8>
- -------------------------------------------------------------------------------------------
Small Cap Growth Fund .65% .45% 1.10%<F8>
- -------------------------------------------------------------------------------------------
International Equity Fund .51% .77% 1.28%<F8>
- -------------------------------------------------------------------------------------------
Emerging Markets Equity Fund 1.05% .90% 1.95%<F8>
- -------------------------------------------------------------------------------------------
Core Fixed Income Fund .28% .32% .60%<F8>
- -------------------------------------------------------------------------------------------
High Yield Bond Fund .49% .36% .85%<F8>
- -------------------------------------------------------------------------------------------
International Fixed Income Fund .40% .60% 1.00%<F8>
- -------------------------------------------------------------------------------------------
Emerging Markets Debt Fund .85% .50% 1.35%<F8>
- -------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
METROPOLITAN SERIES FUND, INC.
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Janus Mid-Cap Portfolio .67% .04% .71%
- -------------------------------------------------------------------------------------------
T. Rowe Price Large Cap Growth Portfolio .69% .24% .93%
- -------------------------------------------------------------------------------------------
T. Rowe Price Small Cap Growth Portfolio .52% .09% .61%
- -------------------------------------------------------------------------------------------
<CAPTION>
NEW ENGLAND ZENITH FUND
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alger Equity Growth Series .80% .00% .80%
- -------------------------------------------------------------------------------------------
<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.
8
<PAGE>
<PAGE>
<F2> 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%.
<F3> 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%.
<F4> 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 2000, 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 0.96% of average daily
net assets.
<F5> 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 2000, 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%, and total Fund
expenses would have been 1.34% 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 1.30% 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 2000, 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%, and total Fund expenses would have been 1.50% of average daily net
assets.
<F7> 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 2000, 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%, and total Fund expenses would have been 0.86% of average daily net
assets.
<F8> The SEI VP Funds' total actual annual fund operating expenses for
the current fiscal year are expected to be less than the maximum amount
allowed because the Adviser will voluntarily waive a portion of its fee
in order to keep total operating expenses at a specified level. The
Adviser may discontinue all or part of its waiver at any time. With
this fee waiver, the Funds' actual total operating expenses are expected
to be the amounts shown in the table above. Absent the fee waiver, the
Funds' total operating expenses would be: Large Cap Value Fund, 0.95%;
Large Cap Growth Fund, 1.00%; Small Cap Value Fund, 1.20%; Small Cap
Growth Fund, 1.20%; International Equity Fund, 1.41%; Emerging Markets
Equity Fund, 2.34%; Core Fixed Income Fund, 0.70%; High Yield Bond Fund,
0.99%; International Fixed Income Fund, 1.31%; Emerging Markets Debt
Fund, 1.95%.
</TABLE>
9
<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 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;
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.
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
10
<PAGE>
<PAGE>
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 and Partial
Withdrawal.
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 be 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 59-1/2
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 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 your 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.)
* * *
11
<PAGE>
<PAGE>
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.
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 in
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, in the Loan Account, and in certain contracts,
the General 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.
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 a registered open-end investment
company. Although sometimes referred to elsewhere as "Portfolios," they are
referred to herein 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.
INITIAL PREMIUM -- The minimum initial premium required to be paid for
the Policy to become effective.
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 tax charges (consisting of a
state premium tax charge and a charge to cover Federal income tax costs
attributable to premiums).
<PAGE>
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.
12
<PAGE>
<PAGE>
POLICY MONTH -- A month beginning on the Monthly Anniversary.
POLICY YEAR -- A period beginning on a Policy Anniversary and ending on
the day immediately preceding the next Policy Anniversary.
PORTFOLIO -- see Fund.
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 -- The amount of premiums paid that is used to determine
the amount of the Contingent Deferred Sales Charge.
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 on 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 following summary of Prospectus information should be read in
conjunction with the detailed information appearing elsewhere in this
Prospectus. Unless otherwise indicated, the description of the Policies
contained in this Prospectus assumes that a Policy is in force and that
there is no outstanding Indebtedness.
THE POLICY. Under the flexible premium variable life insurance Policy
described in this Prospectus, the Owner may, subject to certain
limitations, make premium payments in any amount and at any frequency.
The Policy is a life insurance contract with death benefits, Cash Value,
surrender rights, Policy Loan privileges, and other features
traditionally associated with life insurance. It is a "flexible
premium" Policy because, unlike traditional insurance policies, there is
no fixed schedule for premium payments. Although the Owner may
establish a schedule of premium payments ("planned premium payments"),
failure to make the planned premium payments will not necessarily cause
a Policy to lapse, nor will making the planned premium payments
guarantee that a Policy will remain in force. Thus, an Owner may, but is
not required to, pay additional premiums. This flexibility permits an
Owner to provide for changing insurance needs within a single insurance
policy.
The Policy is a "variable" Policy because, unlike the fixed benefits
under an ordinary life insurance contract, to the extent that Net
Premiums are allocated to the Separate Account, the Cash Value and,
under certain circumstances, the death benefit under a Policy may
increase or decrease depending upon the investment performance of the
Divisions of the Separate Account to which the Owner has allocated Net
Premium payments. However, so long as a Policy's Cash Surrender Value
continues to be sufficient to pay the monthly deduction, an Owner is
guaranteed a minimum death benefit equal to the Face Amount of his or
her Policy, less any outstanding Indebtedness.
A Policy will lapse (and terminate without value) when the Cash
Surrender Value is insufficient to pay the next monthly deduction and a
grace period of 62 days expires without an adequate payment being made
by the Owner (See Payment and Allocation of Premiums--Policy Lapse and
Reinstatement).
THE SEPARATE ACCOUNT. After the end of the "Right to Examine Policy"
period, the Owner may allocate the Net Premiums to the Separate Account
and, if it is available, to the General Account. Amounts allocated to
the Separate Account are further allocated to one or more Divisions.
Assets of each Division are invested at net asset value in shares of a
corresponding Fund. (See The Company and the Separate Account.) An
Owner may change future allocations of Net Premiums at any time.
The option offered in connection with the Policies to allocate Net
Premiums or to transfer Cash Value to the General Account may not be
made available, at the Company's discretion, under all Policies.
Further, the option may be limited with respect to some Policies. The
Company may, from time to time, adjust the extent to which future
premiums may be allocated to the General Account in regard to any or all
outstanding Policies. Such adjustments may not be uniform as to all
Policies.
Until the end of the "Right to Examine Policy" period (see Right to
Examine Policy), all Net Premiums automatically will be allocated to the
Division that invests in the Money Market Fund. (See Payment and
Allocation of Premiums--Allocation of Net Premiums and Cash Value.)
To the extent Net Premiums are allocated to the Divisions of the
Separate Account, the Cash Value
13
<PAGE>
<PAGE>
will, and the death benefit may, vary with the investment performance
of the chosen Division. To the extent Net Premiums are allocated to
the General Account, the Cash Value will accrue interest at a guaranteed
minimum rate. (See The General Account.) Thus, depending upon the
allocation of Net Premiums, investment risk over the life of a Policy
may be borne by the Owner, by the Company, or by both.
Subject to certain restrictions, an Owner may transfer Cash Value among
the Divisions of the Separate Account or, if available, between the
Separate Account and the General Account. Currently, no charge is
assessed for transfers. The Company reserves the right to revoke or
modify the transfer privilege. (See Policy Rights--Transfers.)
CHARGES AND DEDUCTIONS. A premium tax charge will be deducted from each
premium payment prior to allocation. The premium tax charge consists of
a charge to cover state premium taxes and a charge to cover the
Company's Federal income tax costs attributable to the amount of
premiums received. The charge to cover state premium taxes is 2.10%,
and the charge to cover the Company's Federal income tax costs
attributable to the amount of premiums received is 1.25%. The amount of
these charges is subject to increase under certain circumstances. (See
Charges and Deductions--Premium Tax Charges.)
A Contingent Deferred Sales Charge to compensate for sales expenses may
be assessed against the Cash Value under a Policy upon a surrender, a
partial withdrawal, a lapse, or a decrease in Face Amount.
For a period of up to 15 years after the Issue Date or the effective
date of a Face Amount increase, the Company will impose a Contingent
Deferred Sales Charge ("CDSC") upon surrender, lapse, or a requested
decrease in Face Amount. The Company will also impose the CDSC upon a
partial withdrawal that results in a decrease in Face Amount. The
amount of the CDSC will depend upon a number of factors, including the
type of event (surrender, lapse, or decrease in Face Amount), the amount
of premium payments made under the Policy prior to the event, and the
number of Policy Years having elapsed since the Policy was issued or the
Face Amount was increased, as applicable.
A separate CDSC applies to the initial Face Amount and to each increase
in Face Amount and is deducted whenever (and to the extent that) a
surrender, lapse, or Face Amount decrease affects the applicable
increment of Face Amount. The length of time over which a CDSC will
apply to any increment of Face Amount will depend upon the Attained Age
of the Insured on the Issue Date or the effective date of the increase,
as applicable, and the Insured's sex and risk class.
The CDSC will equal the CDSC grading percentage multiplied by the sum of
(1) and (2) where:
(1) is 40% of the lesser of the premium payments made or the Target
Premium for the Policy, excluding any riders, and
(2) is the Excess Premium Surrender Charge Factor multiplied by premium
payments made in excess of the Target Premium for the Policy, excluding
any riders.
With regard to a Face Amount increase:
(1) is 40% of the lesser of the premium payments attributable to the
increase or the Target Premium for the increase, and
(2) is the Excess Premium Surrender Charge Factor multiplied by premium
payments attributable to the increase in excess of the Target Premium
for the increase.
The CDSC grading percentages and the Excess Premium Surrender Charge
Factors are described elsewhere in this Prospectus. The Excess Premium
Surrender Charge Factors vary with the Attained Age, sex, and risk class
of the Insured. In addition, the CDSC is limited to amounts less than
the foregoing during the first two Policy Years or the first two Policy
Years following an increase in Face Amount, as applicable. (See Policy
Rights--Surrender and Partial Withdrawals, Policy Benefits--Death
Benefit, and Charges and Deductions--Contingent Deferred Sales Charge.)
Reductions in the Contingent Deferred Sales Charge are available in some
situations. (See Reduction of Charges.)
On each Monthly Anniversary, the Cash Value will be reduced by the
monthly deduction consisting of:
(1) a monthly administrative charge of $13.00 ($156.00 per year) during
the first twelve Policy Months, and $6.00 per month ($72.00 per year)
thereafter, to compensate the Company for the continuing administrative
costs of the Policy;
(2) a Selection and Issue Expense Charge of $.16 per Policy Month for
each $1,000 of Face Amount in the first Policy Year and $.01 per Policy
Month for each $1000 of Face Amount in subsequent Policy Years (see
Charges and Deductions--Monthly Deduction);
14
<PAGE>
<PAGE>
(3) a monthly charge for the cost of insurance (see Charges and
Deductions--Monthly Deduction); and
(4) a charge for the cost of any additional benefits provided by rider.
A daily charge of .002455% (an effective annual rate of .90%) of the net
assets of each Division of the Separate Account will be imposed for the
Company's assumption of certain mortality and expense risks incurred in
connection with the Policies. (See Charges and Deductions--Separate
Account Charges.)
The Company may make a charge for any 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.)
The operating expenses of the Separate Account are paid by General
American. Investment advisory fees and other operating expenses of the
Funds are paid by the Funds and are reflected in the value of the assets
of the corresponding Division of the Separate Account. For a
description of these charges, see Charges and Deductions--Separate
Account Charges.
Currently, there are no transaction charges to cover the administrative
costs of processing partial withdrawals or transfers of Cash Value
between Divisions of the Separate Account. In contracts with the
General Account option, there are no transaction charges to cover the
administrative costs of processing transfers of Cash Value between the
Separate and General Accounts. However, the Company reserves the right
to impose such charges in the future. In addition, transfers and
withdrawals are subject to restrictions relative to amount and
frequency. (See Payment and Allocation of Premiums--Allocation of Net
Premiums and Cash Value, Policy Rights--Surrender and Partial
Withdrawals, and The General Account.)
PREMIUMS. An Owner has considerable flexibility concerning the amount
and frequency of premium payments. A Policy will not become effective
until the Owner has paid an Initial Premium equal to one-twelfth (1/12)
of the "Initial Annual Premium" for the Policy. This amount will be
different for each Policy. Thereafter, an Owner may, subject to certain
restrictions, make premium payments in any amount and at any frequency.
The Owner may also determine a planned premium payment schedule. The
schedule would provide for a premium payment of a level amount at a
fixed interval over a specified period of time. An Owner need not,
however, adhere to the planned premium payment schedule. 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 "Initial Annual Premium" for the Policy. (See Payment and
Allocation of Premiums.)
A Policy will lapse only when the Cash Surrender Value is insufficient
to pay the monthly deduction (See Charges and Deductions--Monthly
Deduction) and a grace period expires without a sufficient payment by
the Owner. (See Payment and Allocation of Premiums--Policy Lapse and
Reinstatement.)
DEATH BENEFIT. A death benefit is payable to the named Beneficiary when
the Insured under a Policy dies. Three death benefit options are
available. Under Death Benefit Option A, the death benefit is the Face
Amount of the Policy or, if greater, the applicable percentage of Cash
Value. Under Death Benefit Option B, the death benefit is the Face
Amount of the Policy plus the Cash Value or, if greater, the applicable
percentage of Cash Value. Under the Death Benefit Option C, the death
benefit is the Face Amount of the Policy or, if greater, the Cash Value
multiplied by the Attained Age factor. So long as the Policy remains in
force, the minimum death benefit under any death benefit option will be
at least the current Face Amount. The death benefit will be increased
by any unpaid dividends determined prior to the Insured's death (see
Dividends) and by the amount of the 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. The death benefit will be paid according
to settlement options available at the time of death. (See Policy
Benefits--Death Benefit.)
The minimum Face Amount at issue is $50,000 under the Company's current
rules. Subject to certain restrictions, the Owner may change the Face
Amount and the death benefit option. In certain cases evidence of
insurability may be required. (See Change in Death Benefit Option and
Change In Face Amount and Additional Coverage from Riders.)
Additional insurance benefits offered under the Policy include a waiver
of specified premium rider, a waiver of monthly deduction rider, a
children's life insurance rider, an additional insured family term
rider, a guaranteed option to increase the Face Amount rider, an
accidental death benefit rider, a guaranteed survivor purchase option
rider, a supplemental coverage term rider, and an increasing benefit
rider. (See General Matters--Additional Insurance Benefits.) The
cost of these additional insurance benefits will be deducted from the
Cash Value as part of the monthly deduction. (See Charges and
Deductions--Monthly Deduction.)
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CASH VALUE. The Cash Value of the policy equal to the total of the
Policy's Cash Value in the Separate Account, the Loan Account (securing
Policy Loans), and, in certain contracts, the General Account. A Policy's
Cash Value will reflect the amount and frequency of Net Premium payments,
the investment performance of any selected Divisions of the Separate
Account, any Policy Loans, any partial withdrawals, and the charges
imposed in connection with the Policy. (See Policy Benefits--Cash
Value.) There is no minimum guaranteed Cash Value.
POLICY LOANS. After the first Policy Anniversary, an Owner may borrow
against the Cash Value of a Policy. The maximum amount that may be
borrowed under a Policy ("the Loan Value") is 90% of the Cash Value of
the Policy on the date the loan request is received, less interest to
the next Policy Anniversary, less any outstanding Indebtedness, less any
surrender charges, and less monthly deductions to the next Policy
Anniversary. Loan interest is payable on each Policy Anniversary, and
all outstanding Indebtedness will be deducted from proceeds payable at
the Insured's death, upon the exercise of a settlement option, or upon
surrender.
A Policy Loan will be allocated among the General Account (if available)
and the various Divisions of the Separate Account. When a loan is
allocated from the Division(s) of the Separate Account, a portion of the
Policy's Cash Value in the Division(s) of the Separate Account
sufficient to secure the loan will be transferred to the Loan Account as
security for the loan. Therefore, a loan may have impact on the
Policy's Cash Value even if it is repaid. A Policy Loan may be repaid
in whole or in part at any time while the Policy is in force. (See
Policy Rights--Loans.) Loans taken from, or secured by, a Policy may
have Federal income tax consequences. (See Federal Tax Matters.)
SURRENDER AND PARTIAL WITHDRAWALS. At any time that a Policy is in
force, an Owner may elect to surrender the Policy and receive its Cash
Surrender Value plus the value of any unpaid dividends determined prior
to the surrender. After the first year, an Owner may also request a
partial withdrawal of the Cash Surrender Value. When the death benefit
is not based on an applicable percentage of the Cash Value, a partial
withdrawal reduces the death benefit payable under the Policy by an
amount equal to the reduction in the Policy's Cash Value. A surrender
or a partial withdrawal may have Federal income tax consequences. (See
Federal Tax Matters.)
RIGHT TO EXAMINE POLICY. The Owner has a limited right to return a
Policy for cancellation within 20 days after receiving it (30 days if
the Owner is a resident of California and is age 60 or older), within 45
days after the application is signed, or within 10 days after the
Company mails a notice of this cancellation right, whichever is latest.
If a Policy is canceled within this time period, a refund will be paid
which will equal all premiums paid under the Policy, except in Kansas.
The Owner also has a similar right to cancel a requested increase in
Face Amount. Upon cancellation of an increase, the additional charges
deducted in connection with the increase will be added to the Cash
Value. (See Policy Rights--Right to Examine Policy.)
ILLUSTRATIONS OF DEATH BENEFITS AND CASH SURRENDER VALUES.
Illustrations on pages A-2 to A-19 in Appendix A show how death benefits
and Cash Surrender Values may vary based on certain rate of return
assumptions and how these benefits compare with amounts which would
accumulate if premiums were invested to earn interest at 5% compounded
annually. If a Policy is surrendered in the early Policy Years, the
Cash Surrender Value payable will be low as compared to premiums
accumulated at interest, and consequently the insurance protection
provided prior to surrender will be costly. You may make a written
request for a projection of illustrated future Cash Values and death
benefits for a nominal fee not to exceed $25.00.
TAX CONSEQUENCES OF THE POLICY. If a Policy is issued on the basis of a
standard premium class or on a guaranteed or simplified issue basis,
while limited guidance exists, the Company believes that the Policy
should qualify as a life insurance contract for Federal income tax
purposes. However, if a Policy is issued on a substandard basis, it is
unclear whether or not such a Policy would qualify as a life insurance
contract for Federal income tax purposes. Assuming that the Policy
qualifies as a life insurance contract for Federal income tax purposes,
the Company believes the Cash Value of the Policy should be subject to
the same Federal income tax treatment as the Cash Value of a
conventional fixed-benefit contract. If so, the Owner is not considered
to be in constructive receipt of the Cash Value under the Policy until
there is a distribution. A change of Owners, a surrender, a partial
withdrawal, a lapse with outstanding Indebtedness, or an exchange may
have tax consequences, such as making the Policy a modified endowment
contract, depending on the particular circumstances. (See Federal Tax
Matters.)
A Policy may be treated as a "modified endowment contract" depending
upon the amount of premiums paid in relation to the death benefit. If
the Policy is a modified endowment contract, then all pre-death
distributions, including Policy Loans and due but
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unpaid loan interest, will be treated first as a distribution of taxable
income and then as a return of basis or investment in the contract. In
addition, prior to age 59 1/2 taxable income from such distributions
generally will be subject to a 10% additional tax. A prospective Owner
should contact a competent tax advisor before purchasing a Policy to
determine the circumstances under which the Policy would be a modified
endowment contract, and 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.
If the Policy is not a modified endowment contract, distributions
generally will be treated first as a return of basis or investment in
the contract and then as disbursing taxable income. Moreover, loans
will not be treated as distributions. Finally, neither distributions
nor loans from a Policy that is not a modified endowment contract are
subject to the 10.0% additional tax. (See Federal Tax Matters.)
DIVIDENDS. While a Policy is in force, it may share in the divisible
surplus of the Company. Each year the Company will determine the share
of divisible surplus accruing to a Policy and will distribute the
surplus as a dividend. The Company is not obligated to pay dividends on
the Policies. (See Dividends.)
This Prospectus describes only those aspects of the Policies that relate
to the Separate Account, except where General Account matters are
specifically mentioned. For a brief summary of the aspects of the
Policies relating to the General Account, see The General Account.
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.
On January 6, 2000 The Metropolitan Life Insurance Company of New York
("MetLife") acquired GenAmerica Corporation. As a result of that
transaction, General American became an indirect, wholly-owned
subsidiary of MetLife.
Headquartered in New York City since 1868, MetLife is a leading provider
of insurance and financial services to a broad spectrum of individual
and group customers. The company, with approximately $357.7 billion
worth of assets under management as of December 31, 1998, provides
individual insurance and investment products to approximately 9 million
households in the United States. MetLife also serves over 33 million
people by providing group insurance and investment products to
corporations and other institutions.
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.
The Separate Account is divided into Divisions. Divisions invest in
corresponding Funds from various open-end, diversified management
investment companies. 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
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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 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 Capital Company 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
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 advisor is Conning
Asset Management Company ("the Advisor"), an indirect majority-owned
subsidiary of General American. The Advisor 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 500 Composite Stock Price Index ("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.
MONEY MARKET FUND: The investment objective of this Fund is to provide
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.
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.
Effective October 1, 1992, a change in the objectives and investment
policies took place relative to what was previously offered as the
Intermediate Bond Fund. That change was approved by the shareholders of
the Fund at the General American Capital Company annual shareholder
meeting on July 22, 1992. All historical financial information
contained within this Prospectus and in the accompanying financial
statements relating to the Intermediate Bond Fund report on its
operations under its objectives. The successor to the Intermediate Bond
Fund is the Bond Index Fund.
Because the investment objectives of the Bond Index Fund differ from
those of the Intermediate Bond Fund, the historical financial data of
the Intermediate Bond Fund should not be viewed as historical financial
data of the Bond Index Fund.
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 may be invested in common stocks, in bonds, in
money market instruments, or in a combination thereof consistent 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
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performance of publicly-traded common stocks included 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").
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.
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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 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.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
Fidelity 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
Fund's Manager.
The investment objective and policies of each Fund are summarized below:
HIGH INCOME PORTFOLIO: The investment objective of this Fund is to seek
a high level of current income 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.
EQUITY-INCOME PORTFOLIO: The investment objective of this Fund is to
seek reasonable income by investing primarily in income-producing equity
securities. In choosing these securities, FMR also will 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 500 Composite Stock Price Index.
GROWTH PORTFOLIO: The investment objective of this Fund is to seek
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 found in other types of securities,
including bonds and preferred stocks.
OVERSEAS PORTFOLIO: The investment objective of this Fund is to seek
long-term growth of capital primarily through investments in foreign
securities. The Overseas Portfolio provides a means for investors to
diversify their own portfolios by participating in companies and
economies outside of the United States.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
Fidelity 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.
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The investment objective and policies of the Fund are summarized below:
ASSET MANAGER PORTFOLIO: 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.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III
Fidelity Variable Insurance Products Fund III ("VIP III") is an open-
end, diversified management investment company organized as a
Massachusetts business trust. 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 III. VIP III 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 Fund are summarized below:
MID CAP EQUITY FUND: This Fund seeks long-term capital growth by
investing primarily in common stocks, with at least 65% of total
assets in securities of companies with medium market
capitalizations, similar to those in the S&P MidCap 400. The fund
may potentially invest in domestic and foreign companies with
smaller or larger market capitalizations, investing in either
"growth" or "value" stocks or both. The fund selects investments
by using fundamental analysis of each issuer's financial condition
and industry position and market and economic conditions.
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 are currently available as investment choices 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 Global
Corporation of New York, New York.
The investment objectives and policies of the Funds 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 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.
SEI INSURANCE PRODUCTS TRUST
SEI Investments is a publicly-traded, diversified financial services
firm dedicated to helping investors more effectively manage their
financial assets. SEI Investments was incorporated in Pennsylvania in
1968 under the original name of Simulated Environments, Inc. SEI
Investments Management Corporation (SIMC), SEI Investments Distribution
Company (SIDCO), and SEI Trust Company are the principal wholly-owned
subsidiaries of SEI Investments. SIMC is an investment advisor
registered with the Securities and Exchange Commission (SEC) under the
Investment Advisers Act of 1940. SIDCO is a broker-dealer registered
with the SEC under the Securities Exchange Act of 1934 and a member of
the National Association of Securities Dealers, Inc. SEI Insurance
Products Trust is a mutual fund family that offers shares in separate
investment portfolios (Funds). The Funds have individual investment
goals and strategies and are designed exclusively as funding vehicles
for variable life insurance and variable annuity contracts. SEI
Investments Management Corporation is the Investment Adviser to SEI
Insurance Products Trust.
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The investment objectives and policies of the Funds are summarized
below.
LARGE CAP VALUE FUND: This Fund invests primarily in common
stocks of U.S. Companies with market capitalizations of more than
$1 billion. The Fund uses a multi-manager
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approach, relying on Sub-Advisers to manage the Fund's portfolio
under the general supervision of SIMC. Each Sub-Adviser, in
managing its portions of the Funds' assets, selects stocks it
believes are undervalued in light of such fundamental
characteristics as earnings, book value or return on equity.
The Fund's portfolio is diversified as to issuers and industries.
LARGE CAP GROWTH FUND: This Fund invests primarily in common
stocks of U.S. companies with market capitalizations of more than
$1 billion. The Fund uses a multi-manager approach, relying on
Sub-Advisers to manage the Fund's portfolio under the general
supervision of SIMC. Each Sub-Adviser, in managing its portion
of the Fund's assets, selects stocks it believes have significant
growth potential in light of such characteristics as revenue and
earnings growth and positive earnings surprises. The Fund's
portfolio is diversified as to issuers and industries.
SMALL CAP VALUE FUND: This Fund invests primarily in common
stocks of U.S. Companies with market capitalizations of less than
$2 billion. The Fund uses a multi-manager approach, relying on
Sub-Advisers to manage the Fund's portfolio under the general
supervision of SIMC. Each Sub-Adviser, in managing its portions
of the Funds' assets, selects stocks it believes are undervalued
in light of such fundamental characteristics as earnings, book
value or return on equity. The Fund's portfolio is diversified as
to issuers and industries.
SMALL CAP GROWTH FUND: This Fund invests primarily in common
stocks of U.S. companies with market capitalizations of less than
$2 billion. The Fund uses a multi-manager approach, relying on
Sub-Advisers to manage the Fund's portfolio under the general
supervision of SIMC. Each Sub-Adviser, in managing its portion of
the Fund's assets, selects stocks it believes have significant
growth potential in light of such characteristics as revenue and
earnings growth and positive earnings surprises. The Fund's
portfolio is diversified as to issuers and industries.
INTERNATIONAL EQUITY FUND: This Fund invests primarily in common
stocks and other equity securities of foreign companies. The Fund
uses a multi-manager approach, relying on Sub-Advisers to manage
the Fund's portfolio under the general supervision of SIMC. The
Fund's portfolio is diversified as to issuers, markets
capitalization, industry and country. The Fund primarily invests
in companies located in developed countries, but may also invest
in companies located in emerging markets.
EMERGING MARKETS EQUITY FUND: This Fund invests primarily in
common stocks and other equity securities of foreign companies
located in emerging markets countries. The fund uses a multi-
manager approach, relying on Sub-Advisers to manage the Fund's
portfolio under the general supervision of SIMC. The Fund is
diversified as to issuers, market capitalization, industry and
country.
CORE FIXED INCOME FUND: This Fund invests primarily in investment
grade U.S. corporate and government fixed income securities,
including mortgage-backed securities. The Fund uses a multi-
manager approach, relying on Sub-Advisers to manage the Fund's
portfolio under the general supervision of SIMC. Sub-Advisers are
selected for their expertise in managing various kinds of fixed
income securities, and each Sub-Adviser makes investment decisions
based on an analysis of yield trends, credit ratings and other
factors in accordance with its particular discipline. While each
Sub-Adviser chooses securities of different types and maturities,
the Fund in the aggregate generally will have a dollar-weighted
average duration that is consistent with that of the broad U.S.
fixed income market.
HIGH YIELD BOND FUND: This Fund invests primarily in fixed income
securities rated below investment grade ("junk bonds"), including
corporate bonds and debentures, convertible and preferred
securities, and zero coupon obligations. The Sub-Adviser chooses
securities that offer a high current yield as well as total return
potential. The Fund's securities are diversified as to issuers
and industries. The Fund's average weighted maturity may vary,
and will generally not exceed ten years. There is no limit on the
maturity or on the credit quality of any security.
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INTERNATIONAL FIXED INCOME FUND: This Fund invests primarily in
foreign government, corporate, and mortgage-backed securities. In
selecting investments for the Fund, the Sub-Adviser chooses
investment grade securities issued by corporations and governments
located in various developed foreign countries, looking for
opportunities for capital appreciation and gain, as well as
current income. There are no restrictions on the Fund's average
portfolio maturity or on the maturity of any specific security.
EMERGING MARKETS DEBT FUND: This Fund invests primarily in U.S.
dollar denominated debt securities of government, government-
related and corporate issuers in emerging markets countries, as
well as entities organized to restructure the outstanding debt of
such issuers. The Sub-Advisor will spread the Fund's holdings
across a number of countries and industries to limit its exposure
to a single emerging market economy. There are no restrictions on
the Fund's average portfolio maturity, or on the maturity of any
specific security. There is no minimum rating standard for the
Fund's securities, and the Fund's securities will generally be in
the lower or lowest rating categories.
METROPOLITAN SERIES FUND
The Metropolitan Series Fund, Inc. is a "series" type of mutual fund,
which is registered as an open-end management investment company under
the 1940 Act. The fund is divided into Portfolios, each of which
represents a different class of stock in which a corresponding
investment division of Separate Account UL invests. Separate Account UL
was established under New York law on December 13, 1988. It is
registered as a unit investment trust under the Investment Company Act
of 1940.
The investment objectives and policies of the Funds available under your
Policy are summarized below:
JANUS MID CAP PORTFOLIO: The Portfolio seeks long-term growth of
capital. It normally invests at least 65% of its total assets in
common stocks of medium capitalization companies selected for
their growth potential. The portfolio manager defines medium
capitalization ("mid-cap") companies as those whose market
capitalization falls within the range of companies included in the
S&P MidCap 400 Index at the time of the purchase. The Portfolio
is non-diversified, so that it can own larger positions in a
smaller number of issuers. This means that appreciation or
depreciation of a single investment can have a greater impact on
the Portfolio's share price. The portfolio manager generally
takes a "bottom up" approach to building the Portfolio by
identifying the companies with earnings growth potential that may
not be recognized by the market at large, without regard to any
industry sector or other similar selection procedure.
T. ROWE PRICE LARGE CAP GROWTH PORTFOLIO: This Portfolio seeks
long-term growth of capital, with dividend income as a secondary
goal. It normally invests at least 65% of its total assets in a
diversified group of large capitalization growth companies. The
portfolio managers define large capitalization ("large-cap")
companies as those whose market capitalization falls within the
range of the largest 300 companies included in the Russell 3000
Index at the time of the purchase. The Portfolio generally looks
for companies with above-average growth in earnings and cash flow;
the ability to sustain earnings momentum even during economic
slowdowns by operating in industries or service sectors where
earnings and dividends can outpace inflation and the overall
economy; or that have a lucrative niche in the economy where
profit margins widen due to economic factors (rather than one-time
events such as lower taxes). The Portfolio expects to invest in
common stocks of companies that normally (but not always) pay
dividends that are generally expected to rise in future years as
earnings rise.
T. ROWE PRICE SMALL CAP GROWTH PORTFOLIO: The investment
objective of this Portfolio is long-term capital growth. The
Portfolio normally invests at least 65% of its total assets in a
diversified group of small capitalization companies. The
portfolio manager defines small capitalization ("small cap")
companies as those whose market capitalization falls within the
range of companies included in the bottom 10% of the S&P 500 Index
at the time of the purchase. The Portfolio expects to invest
primarily in common stocks and convertible securities of companies
in the development stage of their corporate life cycle with
potential to achieve long-term earnings growth faster than the
overall market.
NEW ENGLAND ZENITH FUND
New England Zenith Fund is an open-end diversified management investment
company, more commonly known as a mutual fund, consisting of multiple
investment portfolios, known as the Series. New England Investment
Management, Inc. (NEIM) was organized in 1994 by New England Financial
to serve as the investment adviser to the Series.
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The investment objectives and policies of the Fund available under your
Policy are summarized below:
ALGER EQUITY GROWTH SERIES: Alger invests Equity Growth's assets
primarily in growth stocks. Alger will ordinarily invest at least
65% of Equity Growth's total assets in equity securities of issues
with market capitalization of $1 billion or greater. Alger seeks
out and invests primarily in companies that are traded on domestic
stock exchanges or in the domestic over-the-counter market. The
companies Alger chooses for the portfolio of the Series may still
be in the development stage. They may be older companies that
appear to be entering a new stage of growth progress due to
factors like management changes or development of new
technologies, products or markets, or may be companies providing
products or services with a high unit volume growth rate. Alger
focuses on fundamental characteristics of individual companies and
does not allocate assets based on specific industry sectors.
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 Capital Company. The Board of
Trustees of each Fund is 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 each Fund's
prospectus, 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
currently available under the Policy, 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.
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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 as long as the Policy remains in force. (See
Payment and Allocation of Premiums--Policy Lapse and Reinstatement.)
The minimum Face Amount currently is $50,000.
DEATH BENEFIT OPTION A. Under Death Benefit Option A, the death benefit
is the current Face Amount of the Policy or, if greater, the applicable
percentage of Cash Value on the date of death. The applicable
percentage is 250% for an Insured Attained Age 40 or below on the Policy
Anniversary prior to the date of death. For Insureds with an 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
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. 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<F*>
- -------------------------------------------------------------------------
<CAPTION>
INSURED AGE PERCENTAGE OF CASH VALUE
- -------------------------------------------------------------------------
<S> <C>
0 to 40 250%
- -------------------------------------------------------------------------
45 215%
- -------------------------------------------------------------------------
50 185%
- -------------------------------------------------------------------------
55 150%
- -------------------------------------------------------------------------
60 130%
- -------------------------------------------------------------------------
65 120%
- -------------------------------------------------------------------------
70 115%
- -------------------------------------------------------------------------
75-90 105%
- -------------------------------------------------------------------------
94 and older 101%
- -------------------------------------------------------------------------
<FN>
<F*>For ages that are not shown on the 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). 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.)
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<PAGE>
<TABLE>
DEATH BENEFIT OPTION C SAMPLE ATTAINED AGE FACTOR TABLE<F*>
- --------------------------------------------------------------------------------------------------
<CAPTION>
INSURED MALE MALE FEMALE LIVES FACTOR FEMALE LIVES FACTOR
ATTAINED LIVES FACTOR LIVES FACTOR NONSMOKER SMOKER
AGE NONSMOKER SMOKER
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
20 7.04625 5.70592 8.03974 7.06035
- --------------------------------------------------------------------------------------------------
25 6.05114 4.92067 6.81914 5.98942
- --------------------------------------------------------------------------------------------------
30 5.14023 4.19324 5.77002 5.07111
- --------------------------------------------------------------------------------------------------
35 4.34146 3.55672 4.87119 4.29400
- --------------------------------------------------------------------------------------------------
40 3.66645 3.02488 4.11828 3.64676
- --------------------------------------------------------------------------------------------------
45 3.10793 2.59310 3.49830 3.12711
- --------------------------------------------------------------------------------------------------
50 2.64629 2.24502 2.98426 2.70185
- --------------------------------------------------------------------------------------------------
55 2.26818 1.96426 2.55836 2.34994
- --------------------------------------------------------------------------------------------------
60 1.96389 1.74181 2.20532 2.05662
- --------------------------------------------------------------------------------------------------
65 1.72123 1.56496 1.91023 1.80744
- --------------------------------------------------------------------------------------------------
70 1.53188 1.42835 1.67283 1.60606
- --------------------------------------------------------------------------------------------------
75 1.38673 1.32212 1.48109 1.44005
- --------------------------------------------------------------------------------------------------
80 1.28057 1.24518 1.33746 1.31577
- --------------------------------------------------------------------------------------------------
85 1.20158 1.18661 1.23110 1.22199
- --------------------------------------------------------------------------------------------------
90 1.14546 1.14189 1.15634 1.15435
- --------------------------------------------------------------------------------------------------
95 1.08918 1.08918 1.09058 1.09058
- --------------------------------------------------------------------------------------------------
<FN>
<F*>In the first year, the factor may be slightly higher and may vary by
risk class.
</TABLE>
CHANGE IN DEATH BENEFIT OPTION. After the first Policy Anniversary, if
the Policy was issued with either Death Benefit Option A or Death
Benefit Option B, the death benefit option may be changed. The option
may be changed once each Policy Year, and 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 change its death benefit option to
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 Benefit Option B Policy may change its death benefit option to
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
nor Death Benefit Option B for the entire lifetime of the Policy.
Similarly, a Policy issued under either Death Benefit Option A or Death
Benefit Option 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 AND ADDITIONAL COVERAGE FROM RIDERS. 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, including conversion of the Policy into a
modified endowment contract. (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
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will become effective as of the Monthly Anniversary on or following
receipt of the application by the Company. 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. Although an
increase need not be accompanied by an additional premium (unless it is
required to meet the next monthly deduction), 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 Face Amount will 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.
An Owner also may increase insurance coverage without increasing the
Policy's Face Amount by purchasing a lower cost Supplemental Coverage
Term Rider ("SCTR") at the time the Policy is issued. A SCTR increases
the death benefit under a Policy by the face amount of the rider. In
addition, a SCTR may be canceled separately from the Policy (i.e., it
can be canceled without causing the Policy to be canceled or to lapse),
and no additional Contingent Deferred Sales Charge is assessed in
connection with a SCTR. (See Additional Insurance Benefits--
Supplemental Coverage Term Rider.) Owners should consult their sales
representative when deciding whether to purchase a SCTR at the time the
Policy is issued.
An Owner may increase a Policy's Face Amount (and the coverage under a
SCTR, if one was purchased) on a systematic basis by purchasing an
Increasing Benefit Rider ("IBR") at the time the Policy is issued. An
IBR provides generally for automatic annual increases in Face Amount
(and in any SCTR) until the Insured attains age 65. (See Additional
Insurance Benefits--Increasing Benefit Rider.)
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,
and the Face Amount remaining in force after any requested decrease may
not be less than the 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.
Solely for the purpose of maintaining compliance with the maximum
premium limitations under the Internal Revenue Code of 1986, as amended
("the Code"), insurance coverage provided by a SCTR will be treated as
part of the Face Amount of a Policy. Decreases in Face Amount will be
applied in the following order:
(1) to any Face Amount increases resulting from a change from Death
Benefit Option B to Death Benefit Option A; then to
(2) any requested increases in Face Amount, starting with the most
recent increase, followed by the next most recent increase successively;
then to
(3) any automatic increases to the initial Face Amount resulting from
the IBR; then to
(4) the initial 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 whether and in what amount a surrender charge will be
deducted. If the decrease in Face Amount is made against a Policy that
was subject to a surrender charge and which has been in force for less
than fifteen Policy Years, then a surrender charge will be assessed
against all Divisions and the General Account proportionately. (See
Charges and Deductions--Contingent Deferred Sales Charge.)
Owners may reduce or cancel coverage under a SCTR separately from the
Face Amount of a Policy. Likewise, the Face Amount of a Policy may be
decreased without reducing the coverage of any SCTR. In the event,
however, that an Owner who has a SCTR requests a reduction in coverage
without specifying whether the SCTR coverage or the Face Amount should
be reduced, the SCTR coverage will be reduced first followed by the Face
Amount (in the order shown above for Face Amount reductions) as follows:
(1) any automatic increases to the SCTR resulting from an IBR; then to
(2) any SCTR coverage.
Because no CDSC is assessed in connection with a reduction of coverage
under a SCTR, such a reduction may be less expensive than a decrease in
Face Amount if that increment of Face Amount would be subject to a CDSC.
On the other hand, continuing
27
<PAGE>
<PAGE>
coverage on such an increment of Face Amount may have a cost of
insurance that is higher than the same amount of coverage under the SCTR.
Owners should consult their sales representative before deciding whether
to reduce Face Amount or SCTR coverage under a Policy.
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 Payments 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 4.0%. Provisions for settlement of the death benefit
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), 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, and
Partial Withdrawals.) The Policy's Cash Value in the Separate Account
equals the sum of the Policy's Cash Value in each Division. There is no
guaranteed minimum Cash Value.
DETERMINATION OF CASH VALUE. 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. Depending upon
the length of time between the Issue Date and the Investment Start Date,
this amount may be more than the amount of one monthly deduction. (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 on the next
page) 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 or
to another Division during the current Valuation Period (including any
transfer charges); minus
(7) Any amount transferred from the Division to the Loan Account during
that Valuation Period; minus
(8) Any partial withdrawals 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 decrease in face amount; 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.)
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
28
<PAGE>
<PAGE>
(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
(5) A charge equal to .002455% of the average net assets for each day
in the Valuation Period. This is equivalent to an effective annual rate
of 0.90% for mortality and expense risks; divided by
(6) The value of the assets at the end of the preceding Valuation
Period.
POLICY RIGHTS
LOANS
LOAN PRIVILEGES. After the first Policy Anniversary, 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 90% of the Cash Value of the Policy on the date the
loan request is received, less interest to the next Policy Anniversary,
less anticipated monthly deductions to the next loan interest due date,
less any outstanding Indebtedness, and less any surrender charges. If
required by state law, the Policy's Loan Value may be a greater
percentage of the Cash Value as described in the Policy.
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
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 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"). In Policy Years one through ten, Cash
Value in the Loan Account will accrue interest daily at an earnings rate
which is the greater of (a) an annual rate of 4.0% ("the guaranteed
earnings rate") or (b) a current rate determined by us ("the
discretionary earnings rate"). The Company may change the discretionary
earnings rate on Policy Loans at any time in its sole discretion.
Currently, we accrue interest at a discretionary earnings rate which is
.85% less than the borrowing rate we charge for Policy Loan interest.
The difference between the rate of interest earned and the borrowing
rate is the "Loan Spread". The .85% Loan Spread mentioned above is
currently in effect and is not guaranteed.
Beginning in the eleventh Policy Year, we guarantee that the Loan Spread
will not exceed .50% ("the guaranteed loan spread"). Beginning in the
eleventh Policy Year and thereafter, the Loan Spread will be the lesser
of (a) the guaranteed loan spread or (b) a current loan spread
determined by us ("the discretionary loan spread"). The Company may
change the discretionary loan spread at any time in its sole discretion.
Currently the discretionary loan spread beginning in the eleventh
Policy Year is .25%, but this discretionary loan spread is not
guaranteed.
Interest earned on the Cash Value held in the Loan Account will be
allocated on Policy Anniversaries to the General Account and the
Divisions of the
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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
earned will also be allocated, as appropriate: (1) when a new Policy
Loan is made; (2) when a Policy 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 an index. The indexed borrowing rate will never be
more than the maximum loan rate permitted by law. More information on
the borrowing rate is provided below.
General American will inform the Owner of the current borrowing rate
when a Policy Loan is made. General American will also mail the Owner
an advance notice if there is to be a change in the borrowing rate
applicable to any outstanding Indebtedness.
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 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.
We determine the borrowing rate at the beginning of each Policy Year.
The same rate applies to any outstanding Indebtedness and to any new
Policy Loans made during the Policy Year. The borrowing rate determined
by General American for a Policy Year may not exceed a Maximum Limit
which is the greater of:
(1) The Published Monthly Average (defined below) for the calendar
month ending two months before the beginning of the month in which the
Policy Anniversary falls (example: for a Policy with a June Policy
Anniversary, the March Published Average); or
(2) Five Percent (5.0%).
The Published Monthly Average means:
(1) Moody's Corporate Bond Yield Average-Monthly Average Corporates, as
published by Moody's Investors Service, Inc. or any successor to that
service; or
(2) If that average is no longer published, a substantially similar
average, established by regulation issued by the insurance supervisory
official of the state in which this Policy is issued.
If the Maximum Limit for a Policy Year, as determined in this manner, is
at least .50% higher than the borrowing rate determined by General
American for the previous Policy Year, General American may increase the
borrowing rate up to the Maximum Limit. If the Maximum Limit for a
Policy Year is at least .50% lower than the borrowing rate determined by
General American for the previous Policy Year, General American will
reduce the borrowing rate to no more than the Maximum Limit. Therefore,
the borrowing rate we charge for Policy Loan interest will only change
if the Published Monthly Average differs from the previous borrowing
rate by at least .50%.
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 of the Policy may be higher.
In addition, if the Indebtedness (See Definitions -- Indebtedness)
exceeds the Cash Value minus the surrender charges on any Monthly
Anniversary, the Policy will lapse, subject to a grace period. (See
Policy Lapse and Reinstatement -- Lapse.) A sufficient payment must be
made within the later of the grace period of 62 days from the Monthly
Anniversary immediately before the date the 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 surrender.
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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 AND PARTIAL WITHDRAWALS
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 or partial withdrawal 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 outstanding
Indebtedness, and less any surrender charges (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. The 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 up
to one partial withdrawal each Policy Month from the Separate Account
and up to four partial withdrawals and transfers in any Policy Year from
the General Account. 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 in that Division, net of any
applicable surrender charges. The total partial withdrawals and transfers
from the General Account over the Policy Year may not exceed a maximum
amount equal to the greater of (a) 25% of the Cash Surrender Value in the
General Account at the beginning of the Policy Year or (b) the previous
Policy Year's maximum amount.
The Owner may allocate the amount withdrawn plus any applicable
surrender charges, 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
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.)
Generally, any surrender charges imposed in connection with a partial
withdrawal will be allocated among the Divisions of the Separate Account
and the General Account in the same proportion as the partial withdrawal
is allocated. An Owner may request, however, that a surrender charge
applicable to an amount withdrawn from a Division be paid from an
Owner's Cash Value in another Division. No amount may be withdrawn that
would result in there being insufficient Cash Value to meet any
surrender charges 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. 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
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charges 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 charges exceeds the difference between the
death benefit and the Face Amount. If Death Benefit 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.
If the Face Amount of a Policy has been increased or if a SCTR has been
purchased, then a partial withdrawal which reduces the Face Amount will
usually affect the way in which the cost of insurance charge is
calculated, as different increments of Face Amount and coverage under a
SCTR will often have different cost of insurance rates (See Monthly
Deduction--Cost of Insurance.) Partial withdrawals will be applied, in
the following order, to reduce:
(1) the initial Face Amount (subject to the Policy's minimum Face
Amount); then to
(2) any automatic increases to the initial Face Amount resulting from
an IBR; then to
(3) any requested increases in Face Amount starting with the oldest and
proceeding to the next oldest, successively; then to
(4) any Face Amount increases resulting from a change from Death
Benefit Option B to Death Benefit Option A; then to
(5) any SCTR coverage; then to
(6) any automatic increases to the SCTR resulting from the IBR.
The Company may change the minimum amount required for a partial
withdrawal or the number of times partial withdrawals may be made.
CHARGES ON SURRENDER, PARTIAL WITHDRAWALS, AND DECREASES. If a Policy
is surrendered, the CDSC will apply. (See Charges and Deductions--
Contingent Deferred Sales Charge.) A decrease in Face Amount may result
in a charge. A decrease in Face Amount may decrease some or all of the
initial Face Amount as well as any increases in Face Amount. As noted
above, a partial withdrawal may cause a decrease in Face Amount and thus
may result in a charge. The amount of the charge assessed because of a
decrease in Face Amount is a portion of the charge that would be
deducted upon surrender or lapse. The portion is based on the
relationship between the decrease in Face Amount and the initial Face
Amount. Charges are described in more detail under Charges and
Deductions--Contingent Deferred Sales Charge.
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 --
ransfers, Surrenders, Partial Withdrawals, and Policy Loans and The
General Account -- General Description.) Requests for transfers from or
among Divisions of the Separate Account may be in writing or by telephone.
Transfers from or among the Divisions of the Separate Account may be made
once each Policy Month and must be in amounts of at least $500 or, if
smaller, the Policy's Cash Value in a Division. General American
ordinarily will effectuate 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 Day 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 effectuate those transfers that do
meet the requirements. Transfers resulting from Policy Loans or
exercise of the conversion privilege will not be counted for purposes of
the limitations on the amount or frequency of transfers allowed in each
Policy Month or Policy Year.
Requests may be made by telephone if the Owner has chosen to use General
American's telephone transfer program. To elect this program, the Owner
must complete a form provided by General American. General American
reserves the right to cancel the telephone transfer program upon 30 days
written notice.
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
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the frequency of such transfers. General American may in the future
impose a charge of no more than $25 per transfer request.
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 your Cash Value in the
General Account and in the Divisions of the Separate Account to the
percentages that you 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 fund 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 one
percent (1%). 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.
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. The Owner 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
specified number in a Policy Year in accordance with its administrative
rules.
DOLLAR COST AVERAGING
The Owner may direct the Company to automatically 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
guarantees that DCA will result in a profit or protect against loss in a
declining market.
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 1% 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.
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(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 Right to Examine Policy).
No fee is currently charged for DCA, but 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.
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), within
45 days after the application was signed, or within 10 days of the
Company's mailing a notice of the cancellation right, whichever is
latest. If a Policy is canceled within this time period, a refund will
be paid. Except for Policies sold in Kansas, the refund will equal all
premiums paid under the Policy. (For Policies sold in Kansas, 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 check has cleared the Owner's
bank. (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 latest of 20 days from the date the Owner receives the
new Policy specifications page for the increase, 45 days after the
application for the increase is signed, or 10 days of mailing the notice
of the cancellation right.
CONVERSION PRIVILEGE
During the first 24 Policy Months following the issuance of the Policy,
the Owner may convert any Policy still in force to a guaranteed benefit
life insurance policy by instructing the Company to transfer the
Policy's Cash Value in the Separate Account to the General Account and
to allocate all subsequent Net Premiums to the General Account. A
similar conversion privilege is available during the first 24 Policy
Months following a requested increase in Face Amount. Upon exercise of
this privilege, the Cash Value in the Separate Account attributable to
the increase will be transferred to the General Account, and all subsequent
Net Premiums attributable to the increase will be allocated to the General
Account.
Transfers made pursuant to this conversion privilege will not affect the
death benefit, Face Amount, net amount at risk, rate class, or Issue Age
under a Policy. No charge will be imposed on any transfers resulting
from the exercise of this conversion privilege, and such transfers will
not count against the limitation on the amount and frequency of transfer
requests allowed in each Policy Month or Policy Year. (See Transfers.)
Any limitation on allocations to the General Account in effect at the
time of an Owner's exercise of such conversion privilege will not apply.
(See The General Account.)
Notwithstanding an exercise of the conversion privilege during the first
24 Policy Months following an increase in Face Amount, circumstances in
effect following the conversion could subject Cash Value in the General
Account to substantial investment risk. For example, if Cash Value in
the Separate Account is high relative to Cash Value in the General
Account, poor investment performance of the Divisions of the Separate
Account to which the Owner has allocated Net Premium payments could
result in a greater likelihood of lapse. If the Divisions of the
Separate Account perform poorly and Cash Value is not available in the
Separate Account to pay monthly deductions, Cash Value in the General
Account could be wholly depleted, and the Policy could lapse. Because
circumstances can alter the expected outcome of an exercise of the
conversion privilege following an increase in Face Amount, Owners should
consult their sales representative or other competent advisor before
deciding whether to exercise the conversion privilege following an
increase in Face Amount.
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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 80 for regularly underwritten contracts
and, should they become available in the future, to Insureds of Issue
Ages 0 through 64 for simplified issue and guaranteed 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 "Initial Annual Premium" for the Policy. The Initial Annual 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. 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 "Initial Annual Premium" for the Policy.
(See Charges and Deductions.)
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 may 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. Under these
circumstances, 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 the Owner's annual
report. 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.
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 aggregate amount of premium that may be paid under 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 by 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 "Modified Endowment". The Company has
adopted
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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.)
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 1% 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 1%, the minimum
percentage is 1%, and fractional percentages may not be used.
The allocation for future Net Premiums may be changed without charge at
any time by providing notice in writing to the Company. Any change in
allocation will take effect immediately upon receipt by the Company of
the written notification. No charge is imposed for changing the
allocations of future Net 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, Net Premiums will automatically be allocated to the
Division that invests in the Money Market Fund of the Capital Company.
(See Right to Examine Policy). 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. Lapse will occur 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 that Cash Surrender
Value is insufficient to cover the monthly deduction 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 to keep the Policy in force. The amount of the
premium required to keep the Policy in force will be the amount required to
cover the outstanding monthly deductions and premium tax charges. (See
Charges and Deductions--Monthly Deduction.) If the Company does not receive
the required amount during 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 years after the date of lapse.
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 tax
charges, is large enough to cover: (a) the monthly deductions due at
the time of lapse, and
36
<PAGE>
<PAGE>
(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.
(4) 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 Loans paid at the time of
reinstatement, and the amount of any surrender charges paid at the time
of lapse to the extent of the Face Amount reinstated. 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 is 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 charges in effect at the time of reinstatement will equal
the surrender charges in effect at the time of lapse. If only a portion
of the total Face Amount is reinstated, then only the applicable portion
of the surrender charges will be reinstated. If only a portion of the
total Face Amount is reinstated, the Cash Value immediately following
reinstatement will be increased by the applicable portion of the
surrender charges imposed 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 Policy,
incurring expenses in distributing the Policy, and assuming certain
risks in connection with the Policy.
PREMIUM TAX CHARGES
Prior to allocation of Net Premiums, premium payments will be reduced by
premium tax charges consisting of a charge for state premium taxes and a
charge for Federal income tax costs. The premium payment, less the
premium tax charge, equals the Net Premium.
PREMIUM TAXES. Various states and subdivisions impose a tax on premiums
received by insurance companies. Premium taxes vary from state to state
and range from 0.75 to 3.50%. A deduction of 2.10% of the premium is
made from each premium payment for these taxes. Some jurisdictions may
not impose premium taxes, while others may impose premium taxes that are
more or less than the 2.10% deducted under the Policy. Accordingly, the
2.10% deduction may be higher or lower than the actual premium tax
imposed by the applicable jurisdiction. The deduction represents the
average amount the Company considers necessary to pay the premium taxes
imposed by the states and any subdivisions thereof. If the average
premium tax increases in the future, the deduction for premium taxes
will increase accordingly.
FEDERAL INCOME TAX COSTS ATTRIBUTABLE TO PREMIUM PAYMENTS. A 1.25%
deduction is taken from each premium payment to cover the Company's
Federal income tax costs attributable to the amount of premium received.
The Company has concluded that this deduction is reasonable in relation
to the Company's increased Federal tax burden as a result of Section 848
of the Internal Revenue Code.
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) insurance underwriting and acquisition
expenses in connection with issuing a Policy; (c) the cost of insurance;
and (d) 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 the
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.
MONTHLY ADMINISTRATIVE CHARGE. The Company has responsibility for the
administration of the Policies and the Separate Account. Administrative
expenses include premium billing and collection, recordkeeping,
processing death benefit claims, cash
37
<PAGE>
<PAGE>
surrenders, partial withdrawals, Policy changes, 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 for each Policy. This charge is $13 per month
during the first twelve Policy Months and $6.00 per month thereafter.
These charges are guaranteed not to increase while the Policy is in
force. The Company does not anticipate that it will make any profit on
the monthly administrative charge.
The Company may administer the Policy itself, or the Company 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.
SELECTION AND ISSUE EXPENSE CHARGE. An additional administrative charge
will be deducted from Cash Value as part of the monthly deduction. The
charge will compensate the Company for issuance, underwriting,
processing, and start-up expenses. These expenses include the cost of
processing applications, conducting medical examinations, and
determining insurability and the Insured's rate class. The charge will
also compensate the Company for on-going administrative costs. In the
first Policy Year, the charge is $.16 per month multiplied by the Face
Amount (and by the face amount of any SCTR) divided by 1,000, and in all
Policy Years thereafter, the charge is $.01 per month multiplied by the
Face Amount (and by the Face Amount of any SCTR) divided by 1,000. The
Company does not anticipate that it will make any profit on the
Selection and Issue Expense Charge. The Selection and Issue Expense
Charge is guaranteed not to increase while the Policy is in force.
The Selection and Issue Expense Charge is similarly imposed with respect
to an increase in Face Amount. In the first Policy Year following a
requested increase or an increase which results from the exercise of the
Guaranteed Option to Increase the Face Amount Rider, the charge is $.16
per month multiplied by the Face Amount of the increase divided by
1,000, and in all Policy Years thereafter (and when the increase results
from an IBR), the charge is $.01 per month multiplied by the Face Amount
of the increase divided by 1,000. If there is a decrease in Face
Amount, the charge will no longer be taken to the extent of the
decrease. The Selection and Issue Expense Charge is not imposed in
connection with a change from Death Benefit Option B to Death Benefit
Option A unless such change occurs simultaneously with a separately
requested increase in Face Amount.
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(s) by the net amount at risk (see
Monthly Deduction -- Cost of Insurance) 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, rate class, and
sex (except for Policies sold in Montana, see Unisex Requirements Under
Montana Law) of the Insured at issue or the date of an increase in Face
Amount. 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, excluding any rider, that required proof of
insurability. The cost of insurance is determined in a similar manner
for coverage under a SCTR and any increase in coverage under such a
rider. The current cost of insurance rate for coverage under a SCTR is
generally less than that for the Face Amount under a Policy. The
guaranteed maximum cost of insurance rates for a SCTR, however, are the
same as for the Face Amount under the Policy.
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, and, should it become
available in the future, to guaranteed issue underwriting.
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
38
<PAGE>
<PAGE>
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 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/nonsmoker 1980 CSO Mortality Tables
(1980 CSO Table SA, 1980 CSO Table NA, 1980 CSO Table SG and 1980 CSO
Table NG), 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. For rate classes other than the
guaranteed issue rate class, 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. Policies issued with simplified underwriting or guaranteed
issue, if it should become available in the future, will in general
incur a higher cost of insurance than Policies issued under full
underwriting.
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 4.0%), less (b) the Cash Value at the beginning of the Policy
Month. If there is an increase in Face Amount or a SCTR is in effect, a
net amount at risk will be calculated separately for the initial Face
Amount, for each increase in Face Amount, and for the SCTR. If Death
Benefit Option A or Death Benefit 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 or for coverage under a SCTR 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 15 years after the Issue Date or the effective
date of a Face Amount increase, the Company will impose a CDSC upon
surrender, lapse, or a requested decrease in Face Amount. The Company
will also impose the CDSC upon a partial withdrawal that results in a
decrease in Face Amount. The amount of the CDSC will depend upon a
number of factors, including the type of event (surrender, partial
withdrawal, lapse, or decrease in Face Amount), the amount of any
premium payments made under the Policy prior to the event, and the
number of Policy Years elapsed since the Policy was issued or the Face
Amount was increased, as applicable.
A separate CDSC applies to the initial Face Amount and to each increase
in Face Amount and is deducted whenever (and to the extent that) a
surrender, lapse, or Face Amount decrease affects the applicable
increment of Face Amount. For example, after an increase in Face Amount,
the Company will assess the CDSC applicable to the increase on a surrender,
lapse, or decrease of that increase in Face Amount. The length of time over
which a CDSC will apply to any increment of Face Amount will depend upon the
Attained Age of the Insured on the Issue Date or the effective date of the
increase, as applicable, and the Insured's sex and risk class. The table
below shows the duration of the CDSC:
39
<PAGE>
<PAGE>
<TABLE>
CONTINGENT DEFERRED SALES CHARGE PERIOD (DURATION IN YEARS)
- -----------------------------------------------------------------------------
<CAPTION>
INSURED'S MALE NONSMOKER MALE FEMALE NONSMOKER FEMALE
AGE SMOKER SMOKER
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
0-50 15 15 15 15
- -----------------------------------------------------------------------------
51 14 14 14 14
- -----------------------------------------------------------------------------
52 13 13 13 13
- -----------------------------------------------------------------------------
53 12 12 12 12
- -----------------------------------------------------------------------------
54 11 11 11 11
- -----------------------------------------------------------------------------
55-79 10 11 10 10
- -----------------------------------------------------------------------------
80 10 6 10 10
- -----------------------------------------------------------------------------
</TABLE>
CALCULATION OF CHARGE. The CDSC will equal the CDSC grading percentage
multiplied by the sum of (1) and (2) where:
(1) is 40% of the lesser of the premium payments made or the Target
Premium for the Policy, excluding any riders, and
(2) is the Excess Premium Surrender Charge Factor multiplied by premium
payments made in excess of the Target Premium for the Policy, excluding
any riders.
With regard to a Face Amount increase:
(1) is 40% of the lesser of the premium payments attributable to the
increase or the Target Premium for the increase, and
(2) is the Excess Premium Surrender Charge Factor multiplied by premium
payments attributable to the increase in excess of the Target Premium
for the increase.
The Excess Premium Surrender Charge Factors vary with the Attained Age,
sex, and risk class of the Insured. The Target Premium for the Policies
is somewhat less than the guideline annual premium as defined in Rule
6e-3 (T) (c) (8) (hereinafter, a "GAP").
<TABLE>
CONTINGENT DEFERRED SALES CHARGE GRADING PERCENTAGES
Male Nonsmoker
--------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
End of Policy
Year Ages Age Age Age Age Ages
0 - 50 51 52 53 54 55 - 80
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- -------------------------------------------------------------------------------------------------------------------
2 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- -------------------------------------------------------------------------------------------------------------------
3 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- -------------------------------------------------------------------------------------------------------------------
4 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- -------------------------------------------------------------------------------------------------------------------
5 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- -------------------------------------------------------------------------------------------------------------------
6 90.00% 88.89% 87.50% 85.71% 83.33% 80.00%
- -------------------------------------------------------------------------------------------------------------------
7 80.00% 77.78% 75.00% 71.43% 66.67% 60.00%
- -------------------------------------------------------------------------------------------------------------------
8 70.00% 66.67% 62.50% 57.14% 50.00% 40.00%
- -------------------------------------------------------------------------------------------------------------------
9 60.00% 55.56% 50.00% 42.86% 33.33% 20.00%
- -------------------------------------------------------------------------------------------------------------------
10 50.00% 44.44% 37.50% 28.57% 16.67% 0.00%
- -------------------------------------------------------------------------------------------------------------------
11 40.00% 33.33% 25.00% 14.29% 0.00% 0.00%
- -------------------------------------------------------------------------------------------------------------------
12 30.00% 22.22% 12.50% 0.00% 0.00% 0.00%
- -------------------------------------------------------------------------------------------------------------------
13 20.00% 11.11% 0.00% 0.00% 0.00% 0.00%
- -------------------------------------------------------------------------------------------------------------------
14 10.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- -------------------------------------------------------------------------------------------------------------------
15+ 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
40
<PAGE>
<PAGE>
<TABLE>
CONTINGENT DEFERRED SALES CHARGE GRADING PERCENTAGES
Male Smoker
-----------
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
End of
Policy Ages Age Age Age Ages Ages Age
Year 0 - 50 51 52 53 54-59 60-79 80
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- ---------------------------------------------------------------------------------------------------------------------------------
2 100.00% 100.00% 100.00% 100.00% 100.00% 90.00% 80.00%
- ---------------------------------------------------------------------------------------------------------------------------------
3 100.00% 100.00% 100.00% 100.00% 100.00% 80.00% 60.00%
- ---------------------------------------------------------------------------------------------------------------------------------
4 100.00% 100.00% 100.00% 100.00% 100.00% 70.00% 40.00%
- ---------------------------------------------------------------------------------------------------------------------------------
5 100.00% 100.00% 100.00% 100.00% 100.00% 60.00% 20.00%
- ---------------------------------------------------------------------------------------------------------------------------------
6 90.00% 88.89% 87.50% 85.71% 83.33% 50.00% 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
7 80.00% 77.78% 75.00% 71.43% 66.67% 40.00% 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
8 70.00% 66.67% 62.50% 57.14% 50.00% 30.00% 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
9 60.00% 55.56% 50.00% 42.86% 33.33% 20.00% 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
10 50.00% 44.44% 37.50% 28.57% 16.67% 10.00% 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
11 40.00% 33.33% 25.00% 14.29% 0.00% 0.00% 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
12 30.00% 22.22% 12.50% 0.00% 0.00% 0.00% 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
13 20.00% 11.11% 0.00% 0.00% 0.00% 0.00% 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
14 10.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
15+ 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
CONTINGENT DEFERRED SALES CHARGE GRADING PERCENTAGES
Female Nonsmoker
----------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
End of
Policy Ages Age Age Age Age Ages
Year 0 - 50 51 52 53 54 55 - 80
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- ----------------------------------------------------------------------------------------------------------------
2 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- ----------------------------------------------------------------------------------------------------------------
3 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- ----------------------------------------------------------------------------------------------------------------
4 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- ----------------------------------------------------------------------------------------------------------------
5 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- ----------------------------------------------------------------------------------------------------------------
6 90.00% 88.89% 87.50% 85.71% 83.33% 80.00%
- ----------------------------------------------------------------------------------------------------------------
7 80.00% 77.78% 75.00% 71.43% 66.67% 60.00%
- ----------------------------------------------------------------------------------------------------------------
8 70.00% 66.67% 62.50% 57.14% 50.00% 40.00%
- ----------------------------------------------------------------------------------------------------------------
9 60.00% 55.56% 50.00% 42.86% 33.33% 20.00%
- ----------------------------------------------------------------------------------------------------------------
10 50.00% 44.44% 37.50% 28.57% 16.67% 0.00%
- ----------------------------------------------------------------------------------------------------------------
11 40.00% 33.33% 25.00% 14.29% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------------------
12 30.00% 22.22% 12.50% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------------------
13 20.00% 11.11% 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------------------
14 10.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------------------
15+ 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
41
<PAGE>
<PAGE>
<TABLE>
CONTINGENT DEFERRED SALES CHARGE GRADING PERCENTAGES
Female Smoker
-------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
End of
Policy Ages Age Age Age Age Ages
Year 0 - 50 51 52 53 54 55 - 80
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- ----------------------------------------------------------------------------------------------------------------
2 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- ----------------------------------------------------------------------------------------------------------------
3 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- ----------------------------------------------------------------------------------------------------------------
4 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- ----------------------------------------------------------------------------------------------------------------
5 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- ----------------------------------------------------------------------------------------------------------------
6 90.00% 88.89% 87.50% 85.71% 83.33% 80.00%
- ----------------------------------------------------------------------------------------------------------------
7 80.00% 77.78% 75.00% 71.43% 66.67% 60.00%
- ----------------------------------------------------------------------------------------------------------------
8 70.00% 66.67% 62.50% 57.14% 50.00% 40.00%
- ----------------------------------------------------------------------------------------------------------------
9 60.00% 55.56% 50.00% 42.86% 33.33% 20.00%
- ----------------------------------------------------------------------------------------------------------------
10 50.00% 44.44% 37.50% 28.57% 16.67% 0.00%
- ----------------------------------------------------------------------------------------------------------------
11 40.00% 33.33% 25.00% 14.29% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------------------
12 30.00% 22.22% 12.50% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------------------
13 20.00% 11.11% 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------------------
14 10.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------------------
15+ 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
EXCESS PREMIUM SURRENDER CHARGE FACTORS
<CAPTION>
- ---------------------------------------------------------------------------------------
MALE MALE FEMALE FEMALE
ISSUE AGE NONSMOKER SMOKER NONSMOKER SMOKER
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
44 or younger 7.60% 7.60% 7.60% 7.60%
- ---------------------------------------------------------------------------------------
45-49 7.60% 7.40% 7.60% 7.60%
- ---------------------------------------------------------------------------------------
50-54 7.60% 7.20% 7.60% 7.60%
- ---------------------------------------------------------------------------------------
55-59 7.50% 7.00% 7.50% 7.50%
- ---------------------------------------------------------------------------------------
60-64 7.00% 7.00% 7.00% 7.00%
- ---------------------------------------------------------------------------------------
65 5.75% 5.75% 5.75% 5.75%
- ---------------------------------------------------------------------------------------
66 5.44% 5.75% 5.75% 5.75%
- ---------------------------------------------------------------------------------------
67 5.13% 5.75% 5.75% 5.75%
- ---------------------------------------------------------------------------------------
68 4.82% 5.75% 5.75% 5.75%
- ---------------------------------------------------------------------------------------
69 4.51% 5.13% 5.75% 5.13%
- ---------------------------------------------------------------------------------------
70 4.20% 4.50% 4.50% 4.50%
- ---------------------------------------------------------------------------------------
71 3.81% 4.20% 4.50% 4.15%
- ---------------------------------------------------------------------------------------
72 3.42% 3.90% 4.50% 3.80%
- ---------------------------------------------------------------------------------------
73 3.03% 3.60% 4.00% 3.45%
- ---------------------------------------------------------------------------------------
74 2.45% 3.30% 3.50% 3.10%
- ---------------------------------------------------------------------------------------
75 2.25% 3.00% 3.00% 2.75%
- ---------------------------------------------------------------------------------------
76 1.80% 2.40% 2.60% 2.30%
- ---------------------------------------------------------------------------------------
77 1.35% 1.80% 2.20% 1.85%
- ---------------------------------------------------------------------------------------
78 0.90% 1.20% 1.80% 1.40%
- ---------------------------------------------------------------------------------------
79 0.45% 0.60% 1.40% 0.95%
- ---------------------------------------------------------------------------------------
80 0.00% 0.00% 1.00% 0.50%
- ---------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Notwithstanding the foregoing, the CDSC for the initial Face
Amount during the first two Policy Years will not exceed 30% of the
first GAP paid under the Policy, 10% of the second GAP paid, and
42
<PAGE>
<PAGE>
9% of premium payments made in excess of two GAP's. Likewise, the CDSC
for any increase in Face Amount during the first two Policy Years
following the increase will not exceed 30% of the first GAP attributable
to the increase, 10% of the second GAP attributable to the increase, and
9% of premium payments attributable to the increase in excess of two GAP's.
The CDSC 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.
The Target Premium depends upon the Insured's Attained Age (on the Issue
Date or on the effective date of a requested increase), sex (except
under any Policies sold in Montana, see Unisex Requirements Under
Montana Law), and smoking risk class. The Target Premium will be fixed
and determined on the Issue Date or the effective date of any requested
increase in Face Amount. The Target Premium for the initial Face Amount
or a requested increase in Face Amount is determined by multiplying (a)
the applicable factor per $1,000 of Face Amount from Appendix B (using
the Insured's Attained Age on the Issue Date or on the effective date of
an increase), by (b) the initial Face Amount or the Face Amount of the
increase, and dividing the result by 1,000.
Because additional premium payments are not required to fund a requested
increase in Face Amount, a special rule applies to determine the amount
of "premiums attributable to the increase." In general, "premiums
attributable to the increase" will equal the sum of a proportionate
share of the Cash Surrender Value on the effective date of the increase,
before any deductions are taken, plus a proportionate share of premium
payments actually made on or after the effective date of the increase.
This means that, in effect, in calculating the amount of the Contingent
Deferred Sales Charge a portion of the existing Cash Surrender Value
will be deemed to be a premium payment for the increase, and subsequent
premium payments will be prorated. The proportion of existing Cash
Surrender Value and subsequent premium payments attributable to the
increase will equal the ratio of the Target Premium for the requested
increase to the sum of the Target Premiums for the total Face Amount in
effect under the Policy, including the Target Premium for the requested
increase. See Appendix B for a table of Target Premium Factors.
CHARGE ASSESSED UPON DECREASES. Assuming there has been no prior
requested increase in Face Amount, the amount of the Contingent Deferred
Sales Charge deducted upon a decrease in Face Amount will equal a
fraction of the charge that would be deducted if the Policy were
surrendered at that time. The fraction will be determined by dividing
the amount of the decrease by the Policy's Face Amount on the Issue Date
of the Policy and multiplying the result by the charge.
If there has been a prior increase in Face Amount, the amount of the
charge will depend on whether the initial Face Amount or subsequent
increases in Face Amount are being decreased, which, in turn, will
depend on whether the decrease arises from a partial withdrawal or a
requested decrease in Face Amount. (See Policy Benefits--Death Benefit-
- -Change in Face Amount and Additional Coverage from Riders, and Policy
Rights--Surrender and Partial Withdrawals.) The charge deducted will
equal the proportionate amount of the Contingent Deferred Sales Charge
for each portion of the Face Amount being decreased, based on the
relationship of the decrease to the applicable portions of the Face
Amount.
REDUCTION 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 reduce the amount of the Contingent Deferred Sales Charge, Selection
and Issue Expense 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 are reduced.
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; from the amount of projected premium
payments; or from lower Target Premiums when the death benefit under a
Policy has been increased by the amount of the coverage provided by a
SCTR. General American will determine in its discretion if, and in what
amount, a reduction is appropriate. The Company may modify its criteria
for qualification for reduction of charges as experience is gained,
subject to the limitation that such reductions 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 at the rate of .002455% of the average
net assets of each Division of the Separate Account, which equals an
effective annual rate of
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.90% of those net assets. This deduction is guaranteed not to increase while
the Policy is in effect. 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. See the prospectuses for the
respective Funds for a description of investment advisory fees and other
expenses.
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 a charge for any
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 a participating Policy which is entitled to a share, if
any, of the divisible surplus of the Company as determined each year and
apportioned to it. This surplus will be distributed as a dividend
payable annually on the January Monthly Anniversary. If the Insured
dies after the dividend has been determined, the Company will pay any
unpaid dividend to the Beneficiary. Because investment results are
credited directly through changes in the Policy's Cash Value, the
Company expects little or no divisible surplus to be credited to a
policy; no dividends have been credited in the past.
Dividends under participating policies may be described as refunds of
premiums which adjust the cost of a Policy to the actual level of costs
emerging over time after the issue of the Policies. Both Federal and
state law recognize that dividends are generally considered to be a
refund of a portion of the premium paid and therefore are not treated as
income for Federal or state income tax purposes. However, depending on
the dividend payment option chosen (See below), dividends may have tax
consequences to Owners. Counsel or other competent tax advisors should
be consulted for more complete information.
Dividend illustrations published at the time of issue of a Policy
reflect the actual recent experience of the issuing insurance company
with respect to factors such as interest, mortality, and expenses.
State law generally prohibits a company from projecting or estimating
future results. State law also requires that dividends must be based on
surplus, after setting aside certain necessary amounts, and that such
surplus must be apportioned equitably among participating policies. In
other words, in principle and by statute, dividends must be based on
actual experience and cannot be guaranteed at issue of a Policy.
Each year the Company's actuary analyzes the current and recent past
experience and compares it to the assumptions used in determining the
premium rates at the time of issue. Some of the more important data
studied includes mortality and lapse rates, investment yield in the
General Account, and actual expenses incurred in administering the
Policy. Such data is then allocated to each dividend class, e.g., by
year of issue, age, and plan. The actuary then determines what
dividends can be equitably apportioned to each Policy class and makes a
recommendation to the Company's Board of Directors ("the Board"). The
Board, which has the ultimate authority to declare dividends, will vote
the amount of surplus to be apportioned to each Policy class, thereby
authorizing the distribution of the annual dividend.
An Owner may choose one of the following dividend options. Dividends
will be credited under the chosen option until the Owner changes it. If
the Owner does not choose an option, the Company will credit the
dividend under Dividend Option B until such time as the Owner requests
in writing a different option.
DIVIDEND OPTION A: CASH. The amount of the dividend will be paid in
cash.
DIVIDEND OPTION B: INCREASE CASH VALUE. The amount of the dividend will
be added to the Policy's Cash Value on the date of the dividend payment.
The Cash Value will be increased by the amount of the dividend. The
dividend will be allocated to the General Account (if available) and the
Divisions of the Separate Account according to the current allocation of
Net Premium.
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
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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 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 percentage. 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 4.0%, 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, 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, IN ITS SOLE DISCRETION,
credit a higher rate of interest, although it is not obligated to credit
interest in excess of 4.0% 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 4.0% 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
4.0% 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 4.0% 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, surrender charges, or transfers to the Separate Account.
TRANSFERS, SURRENDERS, PARTIAL WITHDRAWALS, AND POLICY LOANS
After the first Policy Year and prior to the death of the Insured, a
portion of Cash Value may be
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withdrawn from the General Account or transferred from the General Account
to the Separate Account. A maximum total of four partial withdrawals and
transfers from the General Account is permitted in a Policy Year. 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 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 the 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 above) 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.)
No transfer charge currently is imposed on transfers to and from the
General Account. However, such a charge may be imposed in the future.
General American may revoke or modify the privilege of transferring
amounts to or from the General Account at any time. Partial withdrawals
will result in the imposition of the applicable surrender charges.
Transfers, surrenders, and partial withdrawals payable from the General
Account and the payment of Policy Loans allocated to the General Account
may, subject to certain restrictions, 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.
GENERAL MATTERS
POSTPONEMENT OF PAYMENTS FROM THE SEPARATE ACCOUNT
The Company usually pays amounts payable on partial withdrawal,
surrender, or Policy Loans 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, death of Insured, as well as payments of
a Policy Loan and transfers, may be postponed whenever: (i) 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; (ii) the SEC, by order, permits postponement for
the protection of Owners; or (iii) 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 check has cleared the bank upon which it
is 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, prior to the death of the Insured. 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
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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 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 Policy permits the designation of various types of trust 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. For more details about the use of trusts and
specialized types of beneficiaries, refer to the Policy.
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 60 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 that
would result in this policy not satisfying the definition of life
insurance under the Internal Revenue code of 1986 or any applicable
successor provision thereto.
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 is determined 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 and an addition of a rider after the Issue Date are
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
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less than two years), the amount payable will be limited to premiums paid,
less any partial withdrawals and any outstanding Indebtedness. Subject to
certain limitations, if the Insured dies by suicide, while sane or insane,
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.
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 an increase in Face Amount, unless the Insured
intended 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 under any Policies sold in Montana, see Unisex
Requirements Under Montana Law) of the Insured has been misstated in the
application, the amount of the benefit will be equitably adjusted on the
basis of the correct facts.
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. Many, but not all, of these additional
insurance benefits require additional charges. 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 deduction 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.
ACCIDENTAL DEATH BENEFIT RIDER. Provides additional insurance if the
Insured's death results from accidental bodily injury, as defined in the
rider. Under the terms of the rider, the additional benefits provided
in the Policy will be paid upon receipt of proof by the Company that
death: resulted directly from accidental bodily injury and
independently of all other causes; occurred within 120 days from the
date of injury; and occurred on or after the Policy Anniversary nearest
the Insured's age 0 and before age 70.
CHILDREN'S LIFE INSURANCE RIDER. Provides for term life insurance on
the Insured's children, as defined in the rider. Under the terms of the
rider, the death benefit will be payable to the named Beneficiary upon
the death of any insured child. Upon receipt of proof of the Insured's
death before the rider terminates, insurance on the life of any insured
child will continue without further premium payments.
GUARANTEED OPTION TO INCREASE THE FACE AMOUNT RIDER. Provides that the
Owner can purchase additional insurance under an existing Policy at
certain future dates without evidence of insurability.
ADDITIONAL INSURED FAMILY TERM RIDER. Provides for term life insurance
on an Additional Insured. An Additional Insured must be an immediate
family member (spouse or child) of the Insured. A rider is issued for
each additional family member individually. Under the terms of the
rider, the death benefit will be payable to the named Beneficiary upon
the death of the Additional Insured.
INCREASING BENEFIT RIDER. Provides generally for annual increases in
Face Amount under the Policy and coverages under any SCTR until the
Insured attains age 65. Increases may be either a fixed percentage or
indexed to a cost of living.
SUPPLEMENTAL COVERAGE TERM RIDER. Provides additional insurance
coverage on a basis different from that under the Policy. Coverage
under a SCTR generally has a lower cost of insurance, but has no Cash
Value associated with it.
GUARANTEED SURVIVOR PURCHASE OPTION RIDER. Provides that the
Beneficiary upon death of the Insured may purchase an option policy on a
"designated life." The designated life is named in the rider section
of the application for this Policy and
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may not be changed. No evidence of insurability is required for the option
policy.
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,
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 Policies 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 Policies, 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.
Walnut Street receives no administrative fees, management fees, or other
fee income from sales of the Policies.
Writing agents will receive commissions based on a commission schedule
and rules. Currently, agent first-year commissions can equal up to 45%
of the Target Premium and either 2.0% or 2.5% of the excess first year
premium, depending on the sales contract. In renewal years, the agent
commissions equal 2.0%, 2.5% or 3.0% of premium paid. For all years
after the first, a commission of .34% of the average monthly non-loaned
Cash Value for each Policy Year is paid. In addition, bonuses based on
first-year commissions may be earned during years 2 through 10 if an
agent is covered by a contract under which the lower percent of premium
commissions is paid. In addition, the Company, general agent, and writing
agent may enter into agreements that compensate the writing agent for
basic expenses, renewal overrides, and incentive bonuses. These are maximum
commissions, and reductions may be possible under the circumstances outlined
in the section entitled Reduction of Charges. General Agents receive
compensation which may be based in part on the level of agent commissions in
their agencies.
The General Agent commission schedules and rules differ for different
types of agency contracts.
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 the 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
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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, 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.
1. 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.
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 change of Owner, an assignment, 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 advisor
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 advisor
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,
50
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<PAGE>
including increments thereof, until there is a distribution. The tax
consequences of distributions from, and Policy Loans taken from or
secured by, a Policy depend on whether the Policy is classified as a
"modified endowment contract". However, upon a complete surrender or
lapse of any Policy, or when benefits are paid at such a Policy's maturity
date, 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 that 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's 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 Accounts.
Accordingly, a prospective Owner should contact a competent tax advisor
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 advisor 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
CONTRACTS. Policies classified as modified endowment contracts will be
subject to the following tax rules: First, all distributions, including
distributions upon surrender and benefits paid at maturity, 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 modified
endowment contracts are generally treated as first recovering the
investment in the
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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.
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.
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 ADVISOR 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 (a) the
aggregate amount of any premiums or other consideration paid for a
Policy, minus (b) 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 (c) 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 includable 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.
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.
SAFEKEEPING OF THE SEPARATE ACCOUNT'S ASSETS
The Company holds the assets of the Separate Account. The assets are
kept physically segregated and held separate and apart from the General
Account. The Company maintains records of all purchases and redemptions
of the 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 $5
million, covering all officers and employees of the Company who have
access to the assets of the Separate Account.
52
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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 Funds 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 the 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 it owns and which are not attributable to
Policies in the same proportion.
Each person having a voting interest in a Division will receive 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 advisor or sub-advisor 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.
53
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<TABLE>
MANAGEMENT OF THE COMPANY
<CAPTION>
PRINCIPAL OCCUPATION (S)
NAME DURING PAST FIVE YEARS<F*>
---- --------------------------
<C> <S>
PRINCIPAL OFFICERS<F**>
- -----------------------
Richard A. Liddy Chairman and CEO, 2/2000-present. Formerly 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, 2/2000-present. Formerly Vice President and Controller, 12/84-2/2000.
Barry C. Cooper Vice President and Controller, 2/2000-present.
Kevin C. Eichner President, 2/2000-present. Formerly 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.
E. Thomas Hughes Corporate Actuary and Treasurer, 10/94-present. Formerly Executive Vice
President-Group Pensions, 3/90-10/94.
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. Formerly Vice
President-Life Product Management, 5/86-10/91.
A. Greig Woodring President and Chief Executive Officer, Reinsurance Group of America, 12/92-present.
Executive Vice President-Reinsurance, 3/90-present.
<FN>
<F*> All positions listed are with General American unless otherwise
indicated.
<F**> The principal business address of Messrs. Banstetter, Cooper, Hughes, and
Liddy is General American Life Insurance Company, 700 Market Street,
St. Louis, Missouri 63101. The principal business address for
Messrs. Barber, Winer and Wolzenski is 13045 Tesson Ferry Road,
St. Louis, Missouri 63128. The principal business address for
Mr. Woodring is 1370 Timberlake Manor Parkway, Chesterfield, MO
63017. The principal business address for Mr. Eichner is 670 Mason
Ridge Center Drive, Suite 100, St. Louis, Missouri 63141.
54
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<CAPTION>
PRINCIPAL OCCUPATION (S)
NAME DURING PAST FIVE YEARS<F*>
---- --------------------------
<C> <S>
DIRECTORS
- ---------
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 Company
Union Electric Company (electric utility business). Prior to 1993, Chairman and Chief
P.O. Box 149 Executive Officer.
St. Louis, Missouri 63166
John C. Danforth Partner. Formerly, U. S. Senator, State of Missouri.
Bryan Cave
One Metropolitan Square, Suite 3600
St. Louis, Missouri 63102
Bernard A. Edison Past President, Edison Brothers Stores, Inc. (retail specialty
Edison Brothers Stores, Inc. stores).
P.O. Box 14020
St. Louis, Missouri 63178
Richard A. Liddy Chairman and CEO, General American
General American Life Insurance Co.
700 Market Street
St. Louis, Missouri 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). Prior to 1991, President and
11420 Lackland Road Chief Executive Officer
P.O. Box 46928
St. Louis, Missouri 63146
William P. Stiritz Chairman, Chief Executive Officer and President, Agribrands
Ralston Purina Company International, Inc. Formerly Chairman, Chief Executive Officer
Checkerboard Square and President, Ralston Purina Company (pet food, batteries, and
St. Louis, Missouri 63164 bread 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
Enterprise Rent-A-Car (car rental). Prior to May, 1991, President.
600 Corporate Park Drive
St. Louis, Missouri 63105
55
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<PAGE>
<C> <S>
Robert L. Virgil Principal, Edward Jones (investments). Prior to 1993, Dean,
Edward Jones the John M. Olin School of Business, Washington University
12555 Manchester (business education)
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, Monsanto
800 North Lindbergh Company (chemicals diversified industry, pharmaceuticals, life
St. Louis, Missouri 63167 science products, and food ingredients business). Prior to 1993,
Vice President, Public Policy.
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>
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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 Robert J.
Banstetter, Vice President, General Counsel, and Secretary 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 LLP, independent certified public accountants, and on the
authority of said firm as experts in accounting and auditing.
Actuarial matters included in this Prospectus have been examined by Alan
J. Hobbs, FSA, MAAA, LLIF, Second Vice President & Financial 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 SEC, 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.
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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 in Appendix A illustrate a Policy issued to
a Male, age 45 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 the Selection and Issue Expense Charge, the
monthly administrative charges and monthly charges for the cost of
insurance based on the maximum values allowed under the 1980
Commissioners Standard Ordinary Nonsmoker Mortality Table. 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 at the stated interest rate, reflecting deduction of the
Selection and Issue Expense Charge, the monthly administrative charges
and monthly charges for the cost of insurance at their current level,
which is less than or equal to that allowed by the 1980 Commissioners
Standard Ordinary Nonsmoker Mortality Table. The Cash Value column
under the "Current" heading also reflects payment of the projected
dividends into the Cash Value. 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 shown for Cash Value, Cash Surrender Value, and death
benefit reflect the fact that the investment rate of return is lower
than the gross after-tax return on the assets held in a Division of the
Separate Account. The charges include a .90% charge for mortality and
expense risk, the investment advisory fee (.69% of aggregate average
daily net assets is assumed but the actual investment advisory fee
applicable to each Division is shown in the respective Prospectuses of
each fund, and administrative expenses incurred. After deduction for these
amounts, the illustrated gross annual investment rates of return of 0%, 6%,
and 12% correspond to approximate net annual rates of -1.59%, 4.41%, and
10.41%, respectively. The Prospectuses for each fund should be consulted
for details about the nature and extent of their expenses. There is no
arrangement for reimbursing the expenses of General American Capital
Company, Russell Insurance Funds, Variable Insurance Products Fund,
Variable Insurance Products Fund II, and Van Eck Worldwide Insurance
Trust.
The hypothetical values shown in the tables do not reflect any charges
for Federal income taxes against the Separate Account (as opposed to
Premium Tax 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, and dividends are paid into the Cash Value as projected. 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.
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<TABLE>
<CAPTION>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $100,000 MALE PREFERRED NONSMOKER AGE 45
DEATH BENEFIT LEVEL (OPTION A) ANNUAL PREMIUM: $1,971
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL
GROSS ANNUAL RATE OF RETURN @ 0.0% (NET RATE @ -1.59%)
======== CURRENT ======== ======== GUARANTEED ========
END AGE ANNUAL PREM SURR CASH DEATH SURR CASH DEATH
OF PAYMNT ACCUM @ VALUE VALUE BENEFIT VALUE VALUE BENEFIT
YEAR 5%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 1,971 2,069 695 1,226 100,000 695 1,226 100,000
2 47 1,971 4,242 1,963 2,676 100,000 1,951 2,664 100,000
3 48 1,971 6,521 3,210 4,073 100,000 3,187 4,050 100,000
4 49 1,971 8,919 4,418 5,430 100,000 4,384 5,397 100,000
5 50 1,971 11,435 5,577 6,739 100,000 5,532 6,694 100,000
6 51 1,971 14,076 6,818 7,999 100,000 6,764 7,944 100,000
7 52 1,971 16,849 8,044 9,213 100,000 7,968 9,137 100,000
8 53 1,971 19,761 9,264 10,392 100,000 9,147 10,275 100,000
9 54 1,971 22,818 10,482 11,538 100,000 10,292 11,349 100,000
10 55 1,971 26,029 11,706 12,662 100,000 11,395 12,350 100,000
11 56 1,971 29,399 13,101 13,908 100,000 12,474 13,281 100,000
12 57 1,971 32,939 14,486 15,128 100,000 13,501 14,143 100,000
13 58 1,971 36,655 15,853 16,310 100,000 14,462 14,919 100,000
14 59 1,971 40,557 17,195 17,438 100,000 15,377 15,620 100,000
15 60 1,971 44,655 18,523 18,523 100,000 16,227 16,227 100,000
16 61 1,971 48,957 19,552 19,552 100,000 16,734 16,734 100,000
17 62 1,971 53,474 20,532 20,532 100,000 17,131 17,131 100,000
18 63 1,971 58,217 21,458 21,458 100,000 17,410 17,410 100,000
19 64 1,971 63,197 22,325 22,325 100,000 17,554 17,554 100,000
20 65 1,971 68,426 23,141 23,141 100,000 17,541 17,541 100,000
25 70 1,971 98,766 26,165 26,165 100,000 14,566 14,566 100,000
30 75 1,971 137,488 24,725 24,725 100,000 3,568 3,568 100,000
</TABLE>
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES AND DIVIDENDS BASED ON THE CURRENT DIVIDEND SCALE FOR THE EXACT
COMBINATION OF PREMIUMS AND BENEFITS SHOWN. THESE VALUES ARE ALSO BASED ON A
POLICY ISSUE DATE OF JANUARY 1 FOR PURPOSES OF DETERMINING DIVIDEND AMOUNTS.
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 FOR EACH FUND. 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, ANY FUND,
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>
<CAPTION>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $100,000 MALE PREFERRED NONSMOKER AGE 45
DEATH BENEFIT LEVEL (OPTION A) ANNUAL PREMIUM: $1,971
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL
GROSS ANNUAL RATE OF RETURN @ 6.0% (NET RATE @ 4.41%)
======== CURRENT ======== ======== GUARANTEED ========
END AGE ANNUAL PREM SURR CASH DEATH SURR CASH DEATH
OF PAYMNT ACCUM @ VALUE VALUE BENEFIT VALUE VALUE BENEFIT
YEAR 5%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 1,971 2,069 788 1,319 100,000 788 1,319 100,000
2 47 1,971 4,242 2,235 2,948 100,000 2,224 2,936 100,000
3 48 1,971 6,521 3,757 4,619 100,000 3,733 4,595 100,000
4 49 1,971 8,919 5,336 6,348 100,000 5,299 6,311 100,000
5 50 1,971 11,435 6,964 8,126 100,000 6,914 8,076 100,000
6 51 1,971 14,076 8,777 9,958 100,000 8,714 9,894 100,000
7 52 1,971 16,849 10,677 11,847 100,000 10,589 11,758 100,000
8 53 1,971 19,761 12,680 13,807 100,000 12,545 13,673 100,000
9 54 1,971 22,818 14,788 15,845 100,000 14,574 15,631 100,000
10 55 1,971 26,029 17,019 17,974 100,000 16,673 17,628 100,000
11 56 1,971 29,399 19,545 20,352 100,000 18,862 19,669 100,000
12 57 1,971 32,939 22,198 22,840 100,000 21,117 21,759 100,000
13 58 1,971 36,655 24,973 25,430 100,000 23,427 23,884 100,000
14 59 1,971 40,557 27,874 28,116 100,000 25,818 26,061 100,000
15 60 1,971 44,655 30,914 30,914 100,000 28,278 28,278 100,000
16 61 1,971 48,957 33,819 33,819 100,000 30,533 30,533 100,000
17 62 1,971 53,474 36,845 36,845 100,000 32,827 32,827 100,000
18 63 1,971 58,217 39,998 39,998 100,000 35,159 35,159 100,000
19 64 1,971 63,197 43,283 43,283 100,000 37,523 37,523 100,000
20 65 1,971 68,426 46,718 46,718 100,000 39,916 39,916 100,000
25 70 1,971 98,766 66,676 66,676 100,000 52,368 52,368 100,000
30 75 1,971 137,488 92,127 92,127 121,383 65,935 65,935 100,000
</TABLE>
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES AND DIVIDENDS BASED ON THE CURRENT DIVIDEND SCALE FOR THE EXACT
COMBINATION OF PREMIUMS AND BENEFITS SHOWN. THESE VALUES ARE ALSO BASED ON A
POLICY ISSUE DATE OF JANUARY 1 FOR PURPOSES OF DETERMINING DIVIDEND AMOUNTS.
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 FOR EACH FUND. 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, ANY
FUND, 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>
<CAPTION>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $100,000 MALE PREFERRED NONSMOKER AGE 45
DEATH BENEFIT LEVEL (OPTION A) ANNUAL PREMIUM: $1,971
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL
GROSS ANNUAL RATE OF RETURN @ 12.0% (NET RATE @ 10.41%)
======== CURRENT ======== ======== GUARANTEED ========
END AGE ANNUAL PREM SURR CASH DEATH SURR CASH DEATH
OF PAYMNT ACCUM @ VALUE VALUE BENEFIT VALUE VALUE BENEFIT
YEAR 5%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 1,971 2,069 882 1,413 100,000 882 1,413 100,000
2 47 1,971 4,242 2,520 3,233 100,000 2,508 3,220 100,000
3 48 1,971 6,521 4,350 5,213 100,000 4,325 5,187 100,000
4 49 1,971 8,919 6,371 4,383 100,000 6,331 7,343 100,000
5 50 1,971 11,435 8,593 9,755 100,000 8,537 9,699 100,000
6 51 1,971 14,076 11,171 12,352 100,000 11,098 42,279 100,000
7 52 1,971 16,849 14,030 15,200 100,000 13,928 15,097 100,000
8 53 1,971 19,761 17,211 18,339 100,000 17,056 18,183 100,000
9 54 1,971 22,818 20,747 21,804 100,000 20,504 21,561 100,000
10 55 1,971 26,029 24,685 25,641 100,000 24,301 25,256 100,000
11 56 1,971 29,399 29,250 30,057 100,000 28,504 29,311 100,000
12 57 1,971 32,939 34,316 34,958 100,000 33,129 33,771 100,000
13 58 1,971 36,655 39,930 40,387 100,000 38,217 38,673 100,000
14 59 1,971 40,557 46,155 46,398 100,000 43,844 44,087 100,000
15 60 1,971 44,655 53,067 53,067 100,000 50,066 50,066 100,000
16 61 1,971 48,957 60,469 60,469 100,000 56,686 56,686 100,000
17 62 1,971 53,474 68,700 68,700 100,000 64,033 64,033 100,000
18 63 1,971 58,217 77,863 77,863 100,000 72,211 72,211 100,000
19 64 1,971 63,197 88,043 88,043 109,173 81,340 81,340 100,861
20 65 1,971 68,426 99,295 99,295 121,140 91,446 91,446 111,564
25 70 1,971 98,766 176,602 176,602 204,858 158,897 158,897 184,320
30 75 1,971 137,488 303,913 303,913 325,187 367,246 367,246 285,953
</TABLE>
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES AND DIVIDENDS BASED ON THE CURRENT DIVIDEND SCALE FOR THE EXACT
COMBINATION OF PREMIUMS AND BENEFITS SHOWN. THESE VALUES ARE ALSO BASED ON A
POLICY ISSUE DATE OF JANUARY 1 FOR PURPOSES OF DETERMINING DIVIDEND AMOUNTS.
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 FOR EACH FUND. 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,
ANY FUND, 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.
61
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $100,000 MALE PREFERRED NONSMOKER AGE 45
DEATH BENEFIT INCREASING (OPTION B) ANNUAL PREMIUM: $5,886
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL
GROSS ANNUAL RATE OF RETURN @ 0.0% (NET RATE @ -1.59%)
======== CURRENT ======== ======== GUARANTEED ========
END AGE ANNUAL PREM SURR CASH DEATH SURR CASH DEATH
OF PAYMNT ACCUM @ VALUE VALUE BENEFIT VALUE VALUE BENEFIT
YEAR 5%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 5,207 5,468 3,491 4,300 104,300 3,491 4,300 104,300
2 47 5,207 11,209 7,564 8,769 108,769 7,552 8,757 108,757
3 48 5,207 17,237 11,531 13,132 113,132 11,508 13,108 113,108
4 49 5,207 23,566 15,405 17,401 117,401 15,370 17,366 117,366
5 50 5,207 30,212 19,550 21,568 121,568 19,504 21,521 121,521
6 51 5,207 37,191 23,817 25,632 125,632 23,759 25,575 125,575
7 52 5,207 44,518 27,983 29,297 129,297 27,903 29,516 129,516
8 53 5,886 52,924 32,708 34,120 134,120 32,582 33,994 133,994
9 54 5,886 61,750 37,337 38,548 138,548 37,130 38,340 138,340
10 55 5,886 71,018 41,885 42,893 142,893 41,539 42,547 142,547
11 56 5,886 80,749 46,603 47,410 147,410 45,809 46,616 146,616
12 57 5,886 90,967 51,214 51,856 151,856 49,907 50,549 150,549
13 58 5,886 101,695 55,753 56,210 156,210 53,869 54,326 154,326
14 59 5,886 112,960 60,212 60,455 160,455 57,716 57,959 157,959
15 60 5,886 124,788 64,602 64,602 164,602 61,428 61,428 161,428
16 61 5,886 137,208 68,634 68,634 168,634 64,724 64,724 164,724
17 62 5,886 150,249 72,561 72,561 172,561 67,838 67,838 167,838
18 63 5,886 163,941 76,376 76,376 176,376 70,760 70,760 170,760
19 64 5,886 178,318 80,071 80,071 180,071 73,470 73,470 173,470
20 65 5,886 193,415 83,657 83,657 183,657 75,948 75,948 175,948
25 70 5,886 281,001 99,851 99,851 119,851 84,366 84,366 184,366
30 75 5,886 392,786 109,202 109,202 209,202 83,884 83,884 183,884
</TABLE>
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES AND DIVIDENDS BASED ON THE CURRENT DIVIDEND SCALE FOR THE EXACT
COMBINATION OF PREMIUMS AND BENEFITS SHOWN. THESE VALUES ARE ALSO BASED ON A
POLICY ISSUE DATE OF JANUARY 1 FOR PURPOSES OF DETERMINING DIVIDEND AMOUNTS.
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 FOR EACH FUND. 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, ANY
FUND, 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>
<CAPTION>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $100,000 MALE PREFERRED NONSMOKER AGE 45
DEATH BENEFIT INCREASING (OPTION B) ANNUAL PREMIUM: $5,886
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL
GROSS ANNUAL RATE OF RETURN @ 6.0% (NET RATE @ 4.41%)
======== CURRENT ======== ======== GUARANTEED ========
END AGE ANNUAL PREM SURR CASH DEATH SURR CASH DEATH
OF PAYMNT ACCUM @ VALUE VALUE BENEFIT VALUE VALUE BENEFIT
YEAR 5%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 5,207 5,468 3,771 4,580 104,580 3,771 4,580 104,580
2 47 5,207 11,209 8,404 9,608 109,608 8,391 9,596 109,596
3 48 5,207 17,237 13,221 14,821 114,821 13,196 14,796 114,796
4 49 5,207 23,566 18,244 20,240 120,240 18,206 20,202 120,202
5 50 5,207 30,212 23,844 25,861 125,861 23,792 25,809 125,809
6 51 5,207 37,191 29,878 31,693 131,693 29,811 31,626 131,626
7 52 5,207 44,518 36,132 37,746 137,746 36,038 37,652 137,652
8 53 5,886 52,924 43,314 44,726 144,726 43,167 44,579 144,579
9 54 5,886 61,750 50,780 51,990 151,990 50,540 51,750 151,750
10 55 5,886 71,018 58,553 59,562 159,562 58,157 59,165 159,165
11 56 5,886 80,749 66,949 67,756 167,756 66,027 66,834 166,834
12 57 5,886 90,967 75,684 76,326 176,326 74,125 74,767 174,767
13 58 5,886 101,695 84,807 85,264 185,264 82,497 82,953 182,953
14 59 5,886 112,960 94,325 94,568 194,568 91,172 91,415 191,415
15 60 5,886 124,788 104,266 104,266 204,266 100,141 100,141 200,141
16 61 5,886 137,208 114,357 114,357 214,357 109,129 109,129 209,129
17 62 5,886 150,249 124,868 124,868 224,868 118,380 118,380 218,380
18 63 5,886 163,941 135,810 135,810 235,810 127,894 127,894 227,894
19 64 5,886 178,318 147,195 147,195 247,195 137,656 137,656 237,656
20 65 5,886 193,415 159,051 159,051 259,051 147,655 147,655 247,655
25 70 5,886 281,001 226,615 226,615 326,615 200,902 200,902 300,902
30 75 5,886 392,786 305,357 305,357 405,357 257,562 257,562 357,562
</TABLE>
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES AND DIVIDENDS BASED ON THE CURRENT DIVIDEND SCALE FOR THE EXACT
COMBINATION OF PREMIUMS AND BENEFITS SHOWN. THESE VALUES ARE ALSO BASED ON A
POLICY ISSUE DATE OF JANUARY 1 FOR PURPOSES OF DETERMINING DIVIDEND AMOUNTS.
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 FOR EACH FUND. 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, ANY
FUND, 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>
<TABLE>
<CAPTION>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $100,000 MALE PREFERRED NONSMOKER AGE 45
DEATH BENEFIT INCREASING (OPTION B) ANNUAL PREMIUM: $5,886
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL
GROSS ANNUAL RATE OF RETURN @ 12.0% (NET RATE @ 10.41%)
======== CURRENT ======== ======== GUARANTEED ========
END AGE ANNUAL PREM SURR CASH DEATH SURR CASH DEATH
OF PAYMNT ACCUM @ VALUE VALUE BENEFIT VALUE VALUE BENEFIT
YEAR 5%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 5,207 5,468 4,052 4,861 104,861 4,052 4,861 104,861
2 47 5,207 11,209 9,277 10,482 110,482 9,265 10,469 110,469
3 48 5,207 17,237 15,050 16,650 116,650 15,023 16,624 116,624
4 49 5,207 23,566 21,439 23,435 123,435 21,397 23,393 123,393
5 50 5,207 30,212 28,872 30,889 130,889 28,813 30,830 130,830
6 51 5,207 37,191 37,265 39,081 139,081 37,188 39,003 139,003
7 52 5,207 44,518 46,474 48,088 148,088 46,363 47,977 147,977
8 53 5,886 52,924 57,320 58,732 158,732 57,147 58,559 158,559
9 54 5,886 61,750 69,248 70,458 170,458 68,969 70,179 170,179
10 55 5,886 71,018 82,385 83,393 183,393 81,925 82,934 182,934
11 56 5,886 80,749 97,227 98,034 198,034 96,135 96,942 196,942
12 57 5,886 90,967 113,596 114,238 214,238 111,690 112,332 212,332
13 58 5,886 101,695 131,684 132,141 232,141 128,768 129,225 229,225
14 59 5,886 112,960 151,663 151,905 251,905 147,546 147,789 247,789
15 60 5,886 124,788 173,741 173,741 273,741 168,173 168,173 268,173
16 61 5,886 137,208 197,853 197,853 297,853 190,554 190,554 290,554
17 62 5,886 150,249 224,490 224,490 324,490 215,128 215,128 315,128
18 63 5,886 163,941 253,916 253,916 353,916 242,112 242,112 342,112
19 64 5,886 178,318 286,420 286,420 386,420 271,730 271,730 371,730
20 65 5,886 193,415 322,341 322,341 422,341 304,234 304,234 404,234
25 70 5,886 281,001 569,363 569,363 669,363 520,998 520,998 620,998
30 75 5,886 392,786 974,743 974,743 1,074,743 866,134 866,134 966,134
</TABLE>
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES AND DIVIDENDS BASED ON THE CURRENT DIVIDEND SCALE FOR THE EXACT
COMBINATION OF PREMIUMS AND BENEFITS SHOWN. THESE VALUES ARE ALSO BASED ON A
POLICY ISSUE DATE OF JANUARY 1 FOR PURPOSES OF DETERMINING DIVIDEND AMOUNTS.
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 FOR EACH FUND. 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,
ANY FUND, 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.
64
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $100,000 MALE PREFERRED NONSMOKER AGE 45
DEATH BENEFIT LEVEL (OPTION C) ANNUAL PREMIUM: $1,282
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL
GROSS ANNUAL RATE OF RETURN @ 0.0% (NET RATE @ -1.59%)
======== CURRENT ======== ======== GUARANTEED ========
END AGE ANNUAL PREM SURR CASH DEATH SURR CASH DEATH
OF PAYMNT ACCUM @ VALUE VALUE BENEFIT VALUE VALUE BENEFIT
YEAR 5%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 1,971 2,069 695 1,226 100,000 695 1,226 100,000
2 47 1,971 4,242 1,963 2,676 100,000 1,951 2,664 100,000
3 48 1,971 6,521 3,210 4,073 100,000 3,187 4,050 100,000
4 49 1,971 8,919 4,418 5,430 100,000 4,384 5,397 100,000
5 50 1,971 11,435 5,577 6,739 100,000 5,532 6,694 100,000
6 51 1,971 14,076 6,818 7,999 100,000 6,764 7,944 100,000
7 52 1,971 16,849 8,044 9,213 100,000 7,968 9,137 100,000
8 53 1,971 19,761 9,264 10,392 100,000 9,147 10,275 100,000
9 54 1,971 22,818 10,482 11,538 100,000 10,292 11,349 100,000
10 55 1,971 26,029 11,706 12,662 100,000 11,395 12,350 100,000
11 56 1,971 29,399 13,101 13,908 100,000 12,474 13,281 100,000
12 57 1,971 32,939 14,486 15,128 100,000 13,501 14,143 100,000
13 58 1,971 36,655 15,853 16,310 100,000 14,462 14,919 100,000
14 59 1,971 40,557 17,195 17,438 100,000 15,377 15,620 100,000
15 60 1,971 44,655 18,523 18,523 100,000 16,227 16,227 100,000
16 61 1,971 48,957 19,552 19,552 100,000 16,734 16,734 100,000
17 62 1,971 53,474 20,532 20,532 100,000 17,131 17,131 100,000
18 63 1,971 58,217 21,458 21,458 100,000 17,410 17,410 100,000
19 64 1,971 63,197 22,325 22,325 100,000 17,554 17,554 100,000
20 65 1,971 68,426 23,141 23,141 100,000 17,541 17,541 100,000
25 70 1,971 98,766 26,165 26,165 100,000 14,566 14,566 100,000
30 75 1,971 137,488 17,667 17,667 100,000 0 0 0
</TABLE>
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES AND DIVIDENDS BASED ON THE CURRENT DIVIDEND SCALE FOR THE EXACT
COMBINATION OF PREMIUMS AND BENEFITS SHOWN. THESE VALUES ARE ALSO BASED ON A
POLICY ISSUE DATE OF JANUARY 1 FOR PURPOSES OF DETERMINING DIVIDEND AMOUNTS.
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 FOR EACH FUND. 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, ANY
FUND, 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.
65
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $100,000 MALE PREFERRED NONSMOKER AGE 45
DEATH BENEFIT LEVEL (OPTION C) ANNUAL PREMIUM: $1,282
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL
GROSS ANNUAL RATE OF RETURN @ 6.0% (NET RATE @ 4.41%)
======== CURRENT ======== ======== GUARANTEED ========
END AGE ANNUAL PREM SURR CASH DEATH SURR CASH DEATH
OF PAYMNT ACCUM @ VALUE VALUE BENEFIT VALUE VALUE BENEFIT
YEAR 5%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 1,971 2,069 788 1,319 100,000 788 1,319 100,000
2 47 1,971 4,242 2,235 2,948 100,000 2,224 2,936 100,000
3 48 1,971 6,521 3,757 4,619 100,000 3,733 4,595 100,000
4 49 1,971 8,919 5,336 6,348 100,000 5,299 6,311 100,000
5 50 1,971 11,435 6,964 8,126 100,000 6,914 8,076 100,000
6 51 1,971 14,076 8,777 9,958 100,000 8,714 9,894 100,000
7 52 1,971 16,849 10,677 11,847 100,000 10,589 11,758 100,000
8 53 1,971 19,761 12,680 13,807 100,000 12,545 13,673 100,000
9 54 1,971 22,818 14,788 15,845 100,000 14,574 15,631 100,000
10 55 1,971 26,029 17,019 17,974 100,000 16,673 17,628 100,000
11 56 1,971 29,399 19,545 20,352 100,000 18,862 19,669 100,000
12 57 1,971 32,939 22,198 22,840 100,000 21,117 21,759 100,000
13 58 1,971 36,655 24,973 25,430 100,000 23,427 23,884 100,000
14 59 1,971 40,557 27,874 28,116 100,000 25,818 26,061 100,000
15 60 1,971 44,655 30,914 30,914 100,000 28,278 28,278 100,000
16 61 1,971 48,957 33,819 33,819 100,000 30,533 30,533 100,000
17 62 1,971 53,474 36,845 36,845 100,000 32,827 32,827 100,000
18 63 1,971 58,217 39,998 39,998 100,000 35,159 35,159 100,000
19 64 1,971 63,197 43,283 43,283 100,000 37,523 37,523 100,000
20 65 1,971 68,426 46,718 46,718 100,000 39,916 39,916 100,000
25 70 1,971 98,766 66,644 66,644 104,374 52,368 52,368 100,000
30 75 1,971 137,488 82,409 82,409 116,389 57,474 57,474 100,000
</TABLE>
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES AND DIVIDENDS BASED ON THE CURRENT DIVIDEND SCALE FOR THE EXACT
COMBINATION OF PREMIUMS AND BENEFITS SHOWN. THESE VALUES ARE ALSO BASED ON A
POLICY ISSUE DATE OF JANUARY 1 FOR PURPOSES OF DETERMINING DIVIDEND AMOUNTS.
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 FOR EACH FUND. 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, ANY
FUND, 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.
66
<PAGE>
<TABLE>
<CAPTION>
GENERAL AMERICAN LIFE INSURANCE COMPANY
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY FACE AMOUNT: $100,000 MALE PREFERRED NONSMOKER AGE 45
DEATH BENEFIT LEVEL (OPTION C) ANNUAL PREMIUM: $1,282
FOR SEPARATE ACCOUNT ELEVEN A HYPOTHETICAL
GROSS ANNUAL RATE OF RETURN @ 12.0% (NET RATE @ 10.41%)
======== CURRENT ======== ======== GUARANTEED ========
END AGE ANNUAL PREM SURR CASH DEATH SURR CASH DEATH
OF PAYMNT ACCUM @ VALUE VALUE BENEFIT VALUE VALUE BENEFIT
YEAR 5%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 1,971 2,069 882 1,413 100,000 882 1,413 100,000
2 47 1,971 4,242 2,520 3,233 100,000 2,508 3,220 100,000
3 48 1,971 6,521 4,350 5,213 100,000 4,325 5,187 100,000
4 49 1,971 8,919 6,371 7,383 100,000 6,331 7,343 100,000
5 50 1,971 11,435 8,593 9,755 100,000 8,537 9,699 100,000
6 51 1,971 14,076 11,171 12,352 100,000 11,098 12,279 100,000
7 52 1,971 16,849 14,030 15,200 100,000 13,928 15,097 100,000
8 53 1,971 19,761 17,211 18,339 100,000 17,056 18,183 100,000
9 54 1,971 22,818 20,747 21,804 100,000 20,504 21,561 100,000
10 55 1,971 26,029 24,685 25,641 100,000 24,301 25,256 100,000
11 56 1,971 29,399 29,250 30,057 100,000 28,504 29,311 100,000
12 57 1,971 32,939 34,316 34,958 100,000 33,129 33,771 100,000
13 58 1,971 36,655 39,930 40,387 100,000 38,217 38,673 100,000
14 59 1,971 40,557 46,155 46,398 100,000 43,844 44,087 100,000
15 60 1,971 44,655 53,053 53,053 107,144 50,066 50,066 101,111
16 61 1,971 48,957 60,363 60,363 118,545 56,604 56,604 111,164
17 62 1,971 53,474 68,394 68,394 130,680 63,703 63,703 121,717
18 63 1,971 58,217 77,214 77,214 143,610 71,406 71,406 132,807
19 64 1,971 63,197 86,895 86,895 157,399 79,750 79,750 144,456
20 65 1,971 68,426 97,532 97,532 172,157 88,778 88,778 156,705
25 70 1,971 98,766 168,954 168,954 264,606 145,977 145,977 228,620
30 75 1,971 137,488 270,489 270,489 382,016 220,270 220,270 311,092
</TABLE>
GUARANTEED VALUES REFLECT INVESTMENT RESULTS USING GUARANTEED COST OF
INSURANCE RATES.
CURRENT VALUES REFLECT INVESTMENT RESULTS USING CURRENT COST OF INSURANCE
RATES AND DIVIDENDS BASED ON THE CURRENT DIVIDEND SCALE FOR THE EXACT
COMBINATION OF PREMIUMS AND BENEFITS SHOWN. THESE VALUES ARE ALSO BASED ON A
POLICY ISSUE DATE OF JANUARY 1 FOR PURPOSES OF DETERMINING DIVIDEND AMOUNTS.
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 FOR EACH FUND. 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, ANY
FUND, 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.
67
<PAGE>
<TABLE>
<CAPTION>
APPENDIX B
Target Premium Factors per Thousand of Face Amount
Male Smoker
Age Factor Age Factor
<S> <C> <C> <C>
20 4.55
21 4.72 51 23.47
22 4.90 52 25.05
23 5.09 53 26.70
24 5.29 54 28.36
25 5.51 55 30.00
26 5.55 56 32.08
27 5.59 57 33.84
28 5.63 58 35.36
29 5.67 59 36.72
30 5.71 60 38.00
31 6.14 61 38.61
32 6.50 62 39.63
33 6.82 63 41.05
34 7.12 64 42.84
35 7.40 65 45.00
36 7.86 66 47.97
37 8.35 67 51.45
38 8.87 68 55.44
39 9.41 69 59.96
40 10.00 70 65.00
41 10.66 71 69.47
42 11.45 72 73.83
43 12.37 73 77.96
44 13.42 74 81.72
45 14.60 75 85.00
46 15.92 76 89.33
47 17.33 77 94.09
48 18.82 78 99.45
49 20.38 79 105.67
50 22.00 80 113.00
68
<PAGE>
<CAPTION>
APPENDIX B
Target Premium Factors per Thousand of Face Amount
Male Non-Smoker
Age Factor Age Factor
<S> <C> <C> <C>
0 2.25
1 2.31 41 9.77
2 2.38 42 10.63
3 2.45 43 11.55
4 2.53 44 12.54
5 2.62 45 12.75
6 2.71 46 13.40
7 2.81 47 14.05
8 2.92 48 14.70
9 3.03 49 15.35
10 3.15 50 16.00
11 3.28 51 16.80
12 3.41 52 17.60
13 3.54 53 18.40
14 3.68 54 19.20
15 3.82 55 20.00
16 3.96 56 21.80
17 4.10 57 23.60
18 4.25 58 25.40
19 4.40 59 27.20
20 4.55 60 29.00
21 4.72 61 30.60
22 4.90 62 32.20
23 5.09 63 33.80
24 5.29 64 35.40
25 5.51 65 37.00
26 5.55 66 40.80
27 5.69 67 44.60
28 5.63 68 48.40
29 5.67 69 52.20
30 5.71 70 56.00
31 6.14 71 60.00
32 6.50 72 64.00
33 6.82 73 68.00
34 7.12 74 72.00
35 7.40 75 76.00
36 7.54 76 82.22
37 7.78 77 88.44
38 8.12 78 94.67
39 8.53 79 100.89
40 9.00 80 107.11
69
<PAGE>
<CAPTION>
APPENDIX B
Target Premium Factors per Thousand of Face Amount
Female Smoker
Age Factor Age Factor
<S> <C> <C> <C>
20 3.25
21 3.38 51 17.35
22 3.49 52 18.65
23 3.59 53 19.91
24 3.68 54 21.09
25 3.75 55 22.20
26 3.77 56 23.44
27 3.79 57 24.72
28 3.81 58 26.06
29 3.83 59 27.48
30 3.85 60 29.00
31 3.88 61 30.60
32 3.91 62 32.27
33 3.94 63 34.02
34 3.97 64 35.89
35 4.00 65 37.90
36 4.22 66 40.08
37 4.46 67 42.46
38 4.74 68 45.05
39 5.08 69 47.90
40 5.50 70 51.00
41 5.87 71 54.40
42 6.41 72 58.10
43 7.13 73 62.11
44 7.99 74 66.42
45 9.00 75 70.74
46 10.27 76 75.25
47 11.62 77 80.07
48 13.03 78 85.21
49 14.49 79 90.74
50 16.00 80 96.00
70
<PAGE>
<CAPTION>
APPENDIX B
Target Premium Factors per Thousand of Face Amount
Female Non-Smoker
Age Factor Age Factor
<S> <C> <C> <C>
0 1.90
1 1.95 41 9.67
2 1.99 42 10.13
3 2.06 43 10.64
4 2.12 44 11.21
5 2.19 45 11.84
6 2.27 46 12.44
7 2.34 47 13.05
8 2.43 48 13.72
9 2.52 49 14.42
10 2.62 50 15.11
11 2.72 51 15.44
12 2.83 52 15.98
13 2.95 53 16.69
14 3.06 54 17.54
15 3.17 55 18.50
16 3.24 56 20.06
17 3.31 57 21.50
18 3.38 58 22.87
19 3.45 59 24.21
20 3.50 60 25.59
21 4.00 61 26.37
22 4.17 62 27.34
23 4.35 63 28.47
24 4.53 64 29.76
25 4.65 65 31.20
26 4.77 66 33.34
27 4.89 67 35.88
28 5.01 68 38.87
29 5.13 69 42.34
30 5.25 70 46.35
31 5.65 71 49.46
32 6.06 72 52.82
33 6.49 73 56.43
34 6.92 74 60.33
35 7.36 75 64.48
36 7.71 76 68.92
37 8.08 77 73.68
38 8.48 78 78.83
39 8.89 79 84.24
40 9.28 80 90.08
</TABLE>
71
<PAGE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
General American Life Insurance Company
and Policyholders of General American
Separate Account Eleven:
We have audited the statements of assets and liabilities, including the
schedule of investments, of the S & P 500 Index, Money Market, Bond
Index, Managed Equity, Asset Allocation, International Index, Mid-Cap
Equity, Small-Cap Equity, Equity Income, Growth, Overseas, Asset
Manager, High Income, Worldwide Hard Assets, Worldwide Emerging Markets,
Multi-Style Equity, Core Bond, Aggressive Equity, Non-US, Income &
Growth, International, Value, Bond Portfolio, and Small Company
Portfolio Fund Divisions of General American Separate Account Eleven as
of December 31, 1999, and the related statements of operations and
changes in net assets for each of the years in the three-year period
then ended. These financial statements are the responsibility of the
management of General American Separate Account Eleven. Our
responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. Investments owned as of December 31, 1999 were
verified by audit of the statements of assets and liabilities of the
underlying portfolios of General American Capital Company and
confirmation by correspondence with respect to the Variable Insurance
Products Fund and the Variable Insurance Products Fund II sponsored by
Fidelity Investments, the Van Eck World Wide Insurance Trust sponsored
by Van Eck Associates Corporation, the Russell Insurance Funds sponsored
by Frank Russell Investment Company, the American Century Variable
Portfolios, Inc. sponsored by American Century Investments, and the J.P.
Morgan Series Trust II sponsored by J.P. Morgan Investment Management,
Inc. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of the S & P
500 Index, Money Market, Bond Index, Managed Equity, Asset Allocation,
International Index, Mid-Cap Equity, Small-Cap Equity, Equity Income,
Growth, Overseas, Asset Manager, High Income, Worldwide Hard Assets,
Worldwide Emerging Markets, Multi-Style Equity, Core Bond, Aggressive
Equity, Non-US, Income & Growth, International, Value, Bond Portfolio,
and Small Company Portfolio Fund Divisions of General American Separate
Account Eleven as of December 31, 1999, the results of their operations
and changes in their net assets for each of the years in the three-year
period then ended, in conformity with generally accepted accounting
principles.
/s/ KPMG LLP
St. Louis, Missouri
February 25, 2000
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<CAPTION>
S & P 500 MONEY BOND MANAGED ASSET
INDEX MARKET INDEX EQUITY ALLOCATION
FUND DIVISION FUND DIVISION FUND DIVISION FUND DIVISION FUND DIVISION
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments in General American
Capital Company at market value
(see Schedule of Investments): $60,824,360 $ 9,910,022 $6,136,371 $6,380,710 $18,584,088
Receivable from General American Life
Insurance Company 0 2,220 371 3,358 0
----------- ----------- ---------- ---------- -----------
Total assets 60,824,360 9,912,242 6,136,742 6,384,068 18,584,088
----------- ----------- ---------- ---------- -----------
Liabilities:
Payable to General American Life
Insurance Company 71,634 0 0 0 10,917
----------- ----------- ---------- ---------- -----------
Total net assets $60,752,726 $ 9,912,242 $6,136,742 $6,384,068 $18,573,171
=========== =========== ========== ========== ===========
Total net assets represented by:
Individual Variable Universal Life cash
value invested in Separate Account $12,703,649 $ 1,246,838 $2,527,749 $3,074,531 $12,262,707
Individual Variable General Select Plus
cash value invested in Separate Account 19,187,903 4,130,527 1,146,565 1,061,809 2,069,787
Individual Variable Universal Life-100
cash value invested in Separate Account 21,524,430 1,380,971 1,980,671 1,945,998 2,977,444
Individual Variable Universal Life-98
cash value invested in Separate Account 6,350,278 2,778,076 417,810 264,532 1,116,362
Joint and Survivor Variable Universal Life-98
cash value invested in Separate Account 986,466 375,830 63,947 37,198 146,871
----------- ----------- ---------- ---------- -----------
Total net assets $60,752,726 $ 9,912,242 $6,136,742 $6,384,068 $18,573,171
=========== =========== ========== ========== ===========
Total units held - VUL-95 233,474 68,091 114,933 93,519 293,369
Total units held - VGSP 544,284 309,197 84,706 46,308 83,114
Total units held - VUL-100 651,714 109,972 146,452 86,947 120,924
Total units held - VUL-98 446,086 261,895 42,413 21,648 76,984
Total units held - JSVUL-98 69,296 35,430 6,492 3,044 10,128
VUL-95 Net unit value $ 54.41 $ 18.31 $ 21.99 $ 32.88 $ 41.80
VGSP Net unit value $ 35.25 $ 13.36 $ 13.54 $ 22.93 $ 24.90
VUL-100 Net unit value $ 33.03 $ 12.56 $ 13.52 $ 22.38 $ 24.62
VUL-98 Net unit value $ 14.24 $ 10.61 $ 9.85 $ 12.22 $ 14.50
JSVUL-98 Net unit value $ 14.24 $ 10.61 $ 9.85 $ 12.22 $ 14.50
Cost of investments $48,750,561 $10,202,347 $6,585,233 $6,269,958 $13,925,762
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<CAPTION>
INTERNATIONAL MID-CAP SMALL-CAP EQUITY
INDEX EQUITY EQUITY INCOME GROWTH
FUND DIVISION<F*> FUND DIVISION<F**> FUND DIVISION FUND DIVISION FUND DIVISION
----------------- ------------------ ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments in General American
Capital Company at market value
(see Schedule of Investments): $13,006,687 $8,364,930 $2,918,058 $ 0 $ 0
Investments in Variable Insurance
Products Fund, at market value
(see Schedule of Investments): 0 0 0 24,166,662 55,713,063
Receivable from General American
Life Insurance Company 0 0 0 0 0
----------- ---------- ---------- ----------- -----------
Total assets 13,006,687 8,364,930 2,918,058 24,166,662 55,713,063
----------- ---------- ---------- ----------- -----------
Liabilities:
Payable to General American Life
Insurance Company 13,075 10,949 514 12,225 338
----------- ---------- ---------- ----------- -----------
Total net assets $12,993,612 $8,353,981 $2,917,544 $24,154,437 $55,712,725
=========== ========== ========== =========== ===========
Total net assets represented by:
Individual Variable Universal Life cash
value invested in Separate Account $ 4,025,567 $3,729,884 $ 558,241 $ 7,440,063 $15,655,055
Individual Variable General Select Plus
cash value invested in Separate Account 1,686,926 2,288,366 1,040,052 8,176,358 17,355,764
Individual Variable Universal Life-100
cash value invested in Separate Account 2,100,227 1,946,132 974,170 7,073,312 18,399,393
Individual Variable Universal Life-98
cash value invested in Separate Account 271,117 341,179 281,822 1,279,572 3,896,211
Joint and Survivor Variable Universal Life-98
cash value invested in Separate Account 65,926 48,420 63,259 185,132 406,302
General American Life Insurance
Company seed money 4,843,849 0 0 0 0
----------- ---------- ---------- ----------- -----------
Total net assets $12,993,612 $8,353,981 $2,917,544 $24,154,437 $55,712,725
=========== ========== ========== =========== ===========
Total units held - VUL-95 168,206 162,788 50,288 286,243 385,323
Total units held - VGSP 81,255 99,514 93,318 312,888 450,926
Total units held - VUL-100 119,341 93,049 87,872 314,896 522,933
Total units held - VUL-98 18,571 25,584 26,642 107,162 232,411
Total units held - JSVUL-98 4,516 3,631 5,980 15,505 24,236
Total units held - Seed Money 200,000 0 0 0 0
VUL-95 Net unit value $ 23.93 $ 22.91 $ 11.10 $ 25.99 $ 40.63
VGSP Net unit value $ 20.76 $ 23.00 $ 11.15 $ 26.13 $ 38.49
VUL-100 Net unit value $ 17.60 $ 20.92 $ 11.09 $ 22.46 $ 35.19
VUL-98 Net unit value $ 14.60 $ 13.34 $ 10.58 $ 11.94 $ 16.76
JSVUL-98 Net unit value $ 14.60 $ 13.34 $ 10.58 $ 11.94 $ 16.76
Cost of investments $ 9,240,024 $7,224,432 $3,357,966 $21,605,411 $37,093,325
<FN>
<F*>This fund was formerly known as the International Equity Fund.
<F**>This fund was formerly known as the Special Equity Fund.
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<CAPTION>
WORLDWIDE WORLDWIDE
OVERSEAS ASSET MANAGER HIGH INCOME HARD ASSETS EMERGING MARKETS
FUND DIVISION FUND DIVISION FUND DIVISION FUND DIVISION<F*> FUND DIVISION<F**>
------------- ------------- ------------- ----------------- ------------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments in Variable Insurance
Products Fund, at market value
(see Schedule of Investments): $15,052,006 $ 0 $4,375,944 $ 0 $ 0
Investments in Variable Insurance
Products Fund II, at market value
(see Schedule of Investments): 0 2,419,380 0 0 0
Investments in Van Eck Worldwide
Insurance Trust at market value
(see Schedule of Investments): 0 0 0 317,077 260,096
Receivable from General American
Life Insurance Company 0 0 0 0 8,698
----------- ---------- ---------- -------- --------
Total assets 15,052,006 2,419,380 4,375,944 317,077 268,794
----------- ---------- ---------- -------- --------
Liabilities:
Payable to General American Life
Insurance Company 655 1,459 3,325 735 0
----------- ---------- ---------- -------- --------
Total net assets $15,051,351 $2,417,921 $4,372,619 $316,342 $268,794
=========== ========== ========== ======== ========
Total net assets represented by:
Individual Variable Universal Life
cash value invested in Separate Account $ 6,592,733 $ 195,708 $ 205,386 $ 88,804 $ 42,630
Individual Variable General Select Plus
cash value invested in Separate Account 5,056,946 444,493 897,255 65,379 151,366
Individual Variable Universal Life-100
cash value invested in Separate Account 2,786,964 1,159,079 2,732,153 151,848 25,825
Individual Variable Universal Life-98
cash value invested in Separate Account 568,261 617,041 470,891 10,311 41,241
Joint and Survivor Variable Universal Life-98
cash value invested in Separate Account 46,447 1,600 66,934 0 7,732
----------- ---------- ---------- -------- --------
Total net assets $15,051,351 $2,417,921 $4,372,619 $316,342 $268,794
=========== ========== ========== ======== ========
Total units held - VUL-95 240,894 10,752 14,177 9,525 2,679
Total units held - VGSP 205,835 24,259 61,511 6,967 9,503
Total units held - VUL-100 130,771 63,821 189,022 16,322 1,623
Total units held - VUL-98 36,151 49,859 41,713 837 1,689
Total units held - JSVUL-98 2,955 129 5,929 0 317
VUL-95 Net unit value $ 27.37 $ 18.20 $ 14.49 $ 9.32 $ 15.91
VGSP Net unit value $ 24.57 $ 18.32 $ 14.59 $ 9.38 $ 15.93
VUL-100 Net unit value $ 21.31 $ 18.16 $ 14.45 $ 9.30 $ 15.91
VUL-98 Net unit value $ 15.72 $ 12.38 $ 11.29 $ 12.32 $ 24.42
JSVUL-98 Net unit value $ 15.72 $ 12.38 $ 11.29 $ 12.32 $ 24.42
Cost of investments $10,501,533 $2,240,585 $4,403,352 $345,171 $216,086
<FN>
<F*>This fund was formerly known as the Gold & Natural Resources Fund.
<F**>This fund began operations on September 15, 1998.
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<CAPTION>
MULTI-STYLE AGGRESSIVE
EQUITY CORE BOND EQUITY NON-US
FUND DIVISION FUND DIVISION FUND DIVISION FUND DIVISION
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Assets:
Investments in Russell Insurance
Fund at market value
(see Schedule of Investments): $17,038,971 $ 9,823,042 $4,871,881 $5,011,427
Receivable from General American Life
Insurance Company 0 0 0 0
----------- ----------- ---------- ----------
Total assets 17,038,971 9,823,042 4,871,881 5,011,427
----------- ----------- ---------- ----------
Liabilities:
Payable to General American Life
Insurance Company 46,404 13,372 3,883 12,824
----------- ----------- ---------- ----------
Total net assets $16,992,567 $ 9,809,670 $4,867,998 $4,998,603
=========== =========== ========== ==========
Total net assets represented by:
Individual Variable Universal Life cash
value invested in Separate Account $ 486,907 $ 65,234 $ 181,480 $ 200,109
Individual Variable General Select Plus
cash value invested in Separate Account 10,828,931 7,499,806 2,498,284 2,989,925
Individual Variable Universal Life-100
cash value invested in Separate Account 526,082 81,451 145,500 129,020
Russell Variable Universal Life
cash value invested in Separate Account 4,285,907 1,828,353 1,590,579 1,450,251
Individual Variable Universal Life-98
cash value invested in Separate Account 765,958 272,395 419,622 192,687
Joint and Survivor Variable Universal Life-98
cash value invested in Separate Account 98,782 62,431 32,533 36,611
----------- ----------- ---------- ----------
Total net assets $16,992,567 $ 9,809,670 $4,867,998 $4,998,603
=========== =========== ========== ==========
Total units held - VUL-95 38,212 6,322 19,010 15,191
Total units held - VGSP 567,887 647,045 176,979 195,624
Total units held - VUL-100 41,321 7,901 15,254 9,803
Total units held - Russell VUL 224,387 158,452 111,536 97,420
Total units held - VUL-98 55,512 27,180 34,927 12,805
Total units held - JSVUL-98 7,159 6,230 2,708 2,433
VUL-95 Net unit value $ 12.74 $ 10.32 $ 9.55 $ 13.17
VGSP Net unit value $ 19.07 $ 11.59 $ 14.12 $ 15.28
VUL-100 Net unit value $ 12.73 $ 10.31 $ 9.54 $ 13.16
Russell VUL Net unit value $ 19.10 $ 11.54 $ 14.26 $ 14.89
VUL-98 Net unit value $ 13.80 $ 10.02 $ 12.01 $ 15.05
JSVUL-98 Net unit value $ 13.80 $ 10.02 $ 12.01 $ 15.05
Cost of investments $14,920,743 $10,474,158 $4,552,906 $3,878,857
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<CAPTION>
INCOME & BOND SMALL COMPANY
GROWTH INTERNATIONAL VALUE PORTFOLIO PORTFOLIO
FUND DIVISION<F*> FUND DIVISION<F*> FUND DIVISION<F*> FUND DIVISION<F*> FUND DIVISION<F*>
----------------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments in American Century
Variable Portfolios, at market value
(see Schedule of Investments): $736,269 $604,334 $96,178 $ 0 $ 0
Investments in J.P. Morgan Series
Trust II, at market value 0 0 0 141,513 596,119
(see Schedule of Investments):
Receivable from General American
Life Insurance Company 0 0 700 0 1,318
-------- -------- ------- -------- --------
Total assets 736,269 604,334 96,878 141,513 597,437
-------- -------- ------- -------- --------
Liabilities:
Payable to General American Life
Insurance Company 953 140 0 53 0
-------- -------- ------- -------- --------
Total net assets $735,316 $604,194 $96,878 $141,460 $597,437
======== ======== ======= ======== ========
Total net assets represented by:
Individual Variable Universal
Life cash value invested in
Separate Account $ 31,112 $ 15,398 $ 0 $ 3,470 $ 36,948
Individual Variable General
Select Plus cash value invested
in Separate Account 20,209 69,946 7,257 9,120 144,671
Individual Variable Universal
Life-100 cash value invested
in Separate Account 27,018 109,478 0 3,258 51,290
Individual Variable Universal
Life-98 cash value invested
in Separate Account 616,396 390,766 87,054 121,401 319,153
Joint and Survivor Variable
Universal Life-98 cash value
invested in Separate Account 40,581 18,606 2,567 4,211 45,375
-------- -------- ------- -------- --------
Total net assets $735,316 $604,194 $96,878 $141,460 $597,437
======== ======== ======= ======== ========
Total units held - VUL-95 2,800 998 0 353 2,580
Total units held - VGSP 1,817 4,531 795 926 10,091
Total units held - VUL-100 2,432 7,101 0 331 3,582
Total units held - VUL-98 43,920 22,549 8,130 12,134 19,051
Total units held - JVUL-98 2,892 1,074 240 421 2,709
VUL-95 Net unit value $ 11.11 $ 15.42 $ 9.12 $ 9.84 $ 14.32
VGSP Net unit value $ 11.12 $ 15.44 $ 9.13 $ 9.85 $ 14.34
VUL-100 Net unit value $ 11.11 $ 15.42 $ 9.11 $ 9.84 $ 14.32
VUL-98 Net unit value $ 14.03 $ 17.33 $ 10.71 $ 10.00 $ 16.75
JSVUL-98 Net unit value $ 14.03 $ 17.33 $ 10.71 $ 10.00 $ 16.75
Cost of investments $692,594 $483,662 $94,343 $143,528 $499,509
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
S & P 500 INDEX MONEY MARKET
FUND DIVISION FUND DIVISION
----------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
----------- ---------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investment income<F*> $ -- $ -- $ -- $ -- $ -- $ --
Expenses:
Mortality and expense charges - VUL-95 (101,368) (81,198) (59,320) (7,041) (6,050) (7,951)
Mortality and expense charges - VGSP (127,636) (75,004) (29,674) (24,057) (23,497) (12,872)
Mortality and expense charges - VUL-100 (161,227) (89,773) (36,234) (13,766) (15,324) (13,566)
Mortality and expense charges -
Russell VUL 0 0 0 0 (183) (1,626)
Mortality and expense charges - VUL-98 (12,586) (50) 0 (13,814) (465) 0
Mortality and expense charges - JSVUL-98 (1,944) 0 0 (1,371) (85) 0
----------- ---------- ---------- --------- --------- ---------
Total expenses (404,761) (246,025) (125,228) (60,049) (45,604) (36,015)
----------- ---------- ---------- --------- --------- ---------
Net investment expense (404,761) (246,025) (125,228) (60,049) (45,604) (36,015)
----------- ---------- ---------- --------- --------- ---------
Net realized gain on investments:
Realized gain from distributions 3,826,572 2,339,803 913,559 501,472 263,305 121,801
Realized gain (loss) on sales 2,194,234 802,928 1,570,537 46,905 172,314 (48,325)
----------- ---------- ---------- --------- --------- ---------
Net realized gain on investments: 6,020,806 3,142,731 2,484,096 548,377 435,619 73,476
----------- ---------- ---------- --------- --------- ---------
Net unrealized gain (loss) on investments:
Unrealized gain (loss) on investments,
beginning of period 8,332,257 3,509,114 1,982,215 (183,578) (72,985) (256,852)
Unrealized gain (loss) on investments,
end of period 12,073,799 8,332,257 3,509,114 (292,325) (183,578) (72,985)
----------- ---------- ---------- --------- --------- ---------
Net unrealized gain (loss) on
investments 3,741,542 4,823,143 1,526,899 (108,747) (110,593) 183,867
----------- ---------- ---------- --------- --------- ---------
Net gain on investments 9,762,348 7,965,874 4,010,995 439,630 325,026 257,343
----------- ---------- ---------- --------- --------- ---------
Net increase in net assets
resulting from operations $ 9,357,587 $7,719,849 $3,885,767 $ 379,581 $ 279,422 $ 221,328
=========== ========== ========== ========= ========= =========
<FN>
<F*>See Note 2C
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
BOND INDEX MANAGED EQUITY
FUND DIVISION FUND DIVISION
--------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
--------- -------- --------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Investment income<F*> $ -- $ -- $ -- $ -- $ -- $ --
Expenses:
Mortality and expense charges - VUL-95 (21,090) (19,385) (14,601) (26,939) (23,907) (20,327)
Mortality and expense charges - VGSP (7,750) (5,292) (3,943) (6,933) (10,512) (4,370)
Mortality and expense charges - VUL-100 (17,629) (8,452) (4,363) (16,278) (5,764) (4,815)
Mortality and expense charges - VUL-98 (2,506) (1) 0 (485) (4) 0
Mortality and expense charges - JSVUL-98 (112) 0 0 (39) 0 0
--------- -------- --------- --------- -------- --------
Total expenses (49,087) (33,130) (22,907) (50,674) (40,187) (29,512)
--------- -------- --------- --------- -------- --------
Net investment expense (49,087) (33,130) (22,907) (50,674) (40,187) (29,512)
--------- -------- --------- --------- -------- --------
Net realized gain (loss) on investments:
Realized gain from distributions 370,745 251,095 165,804 302,748 629,297 251,405
Realized gain (loss) on sales (13,113) 20,497 (176,276) 169,830 71,424 95,532
--------- -------- --------- --------- -------- --------
Net realized gain (loss) on investments: 357,632 271,592 (10,472) 472,578 700,721 346,937
--------- -------- --------- --------- -------- --------
Net unrealized gain (loss) on investments:
Unrealized gain (loss) on investments,
beginning of period 79,646 15,812 (234,659) 436,496 485,000 116,769
Unrealized gain (loss) on investments,
end of period (448,862) 79,646 15,812 110,752 436,496 485,000
--------- -------- --------- --------- -------- --------
Net unrealized gain (loss) on
investments (528,508) 63,834 250,471 (325,744) (48,504) 368,231
--------- -------- --------- --------- -------- --------
Net gain (loss) on investments (170,876) 335,426 239,999 146,834 652,217 715,168
--------- -------- --------- --------- -------- --------
Net increase (decrease) in net assets
resulting from operations $(219,963) $302,296 $ 217,092 $ 96,160 $612,030 $685,656
========= ======== ========= ========= ======== ========
<FN>
<F*>See Note 2C
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
ASSET ALLOCATION INTERNATIONAL INDEX
FUND DIVISION FUND DIVISION<F*>
---------------------------------------- ---------------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investment income<F**> $ -- $ -- $ -- $ -- $ -- $ --
Expenses:
Mortality and expense charges - VUL-95 (93,831) (75,604) (67,466) (29,351) (25,562) (23,446)
Mortality and expense charges - VGSP (14,195) (9,318) (7,499) (9,868) (8,370) (5,564)
Mortality and expense charges - VUL-100 (20,890) (12,005) (5,279) (16,070) (11,491) (6,468)
Mortality and expense charges - VUL-98 (1,724) (2) 0 (531) (3) 0
Mortality and expense charges - JSVUL-98 (167) 0 0 (83) 0 0
Mortality and expense charges -
Seed Money 0 0 0 (34,396) (29,672) (27,476)
---------- ---------- ---------- ---------- ---------- ---------
Total expenses (130,807) (96,929) (80,244) (90,299) (75,098) (62,954)
---------- ---------- ---------- ---------- ---------- ---------
Net investment expense (130,807) (96,929) (80,244) (90,299) (75,098) (62,954)
---------- ---------- ---------- ---------- ---------- ---------
Net realized gain on investments:
Realized gain from distributions 287,031 1,145,796 311,438 164,897 120,664 220,590
Realized gain on sales 804,253 230,635 195,821 295,829 220,991 136,741
---------- ---------- ---------- ---------- ---------- ---------
Net realized gain on investments: 1,091,284 1,376,431 507,259 460,726 341,655 357,331
---------- ---------- ---------- ---------- ---------- ---------
Net unrealized gain on investments:
Unrealized gain on investments,
beginning of period 2,336,704 1,762,536 657,734 1,297,560 69,016 268,331
Unrealized gain on investments,
end of period 4,658,326 2,336,704 1,762,536 3,766,663 1,297,560 69,016
---------- ---------- ---------- ---------- ---------- ---------
Net unrealized gain (loss) on
investments 2,321,622 574,168 1,104,802 2,469,103 1,228,544 (199,315)
---------- ---------- ---------- ---------- ---------- ---------
Net gain on investments 3,412,906 1,950,599 1,612,061 2,929,829 1,570,199 158,016
---------- ---------- ---------- ---------- ---------- ---------
Net increase in net assets
resulting from operations $3,282,099 $1,853,670 $1,531,817 $2,839,530 $1,495,101 $ 95,062
========== ========== ========== ========== ========== =========
<FN>
<F*>This fund was formerly known as the International Equity Fund.
<F**>See Note 2C
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
MID-CAP EQUITY SMALL-CAP EQUITY
FUND DIVISION<F*> FUND DIVISION
---------------------------------------- ----------------------------------------
1999 1998 1997 1999 1998 1997<F***>
---------- --------- ---------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment income<F**> $ -- $ -- $ -- $ -- $ -- $ --
Expenses:
Mortality and expense charges - VUL-95 (28,421) (29,781) (26,828) (4,815) (4,514) (787)
Mortality and expense charges - VGSP (13,677) (13,465) (7,567) (6,607) (4,623) (869)
Mortality and expense charges - VUL-100 (14,697) (11,694) (6,142) (8,869) (5,535) (627)
Mortality and expense charges - VUL-98 (524) (2) 0 (674) (2) 0
Mortality and expense charges - JSVUL-98 (108) (2) 0 (173) (2) 0
---------- --------- ---------- --------- --------- ---------
Total expenses (57,427) (54,944) (40,537) (21,138) (14,676) (2,283)
---------- --------- ---------- --------- --------- ---------
Net investment expense (57,427) (54,944) (40,537) (21,138) (14,676) (2,283)
---------- --------- ---------- --------- --------- ---------
Net realized gain (loss) on investments:
Realized gain from distributions 16,722 208,897 262,603 116,957 112,685 149,353
Realized gain (loss) on sales 239,296 192,934 188,905 (200,146) (67,010) 1,064
---------- --------- ---------- --------- --------- ---------
Net realized gain (loss) on
investments: 256,018 401,831 451,508 (83,189) 45,675 150,417
---------- --------- ---------- --------- --------- ---------
Net unrealized gain (loss) on investments:
Unrealized gain (loss) on investments,
beginning of period 389,305 969,578 24,121 (414,321) (133,375) 0
Unrealized gain (loss) on investments,
end of period 1,140,498 389,305 969,578 (439,908) (414,321) (133,375)
---------- --------- ---------- --------- --------- ---------
Net unrealized gain (loss) on
investments 751,193 (580,273) 945,457 (25,587) (280,946) (133,375)
---------- --------- ---------- --------- --------- ---------
Net gain (loss) on investments 1,007,211 (178,442) 1,396,965 (108,776) (235,271) 17,042
---------- --------- ---------- --------- --------- ---------
Net increase (decrease) in net assets
resulting from operations $ 949,784 $(233,386) $1,356,428 $(129,914) $(249,947) $ 14,759
========== ========= ========== ========= ========= =========
<FN>
<F*>This fund was formerly known as the Special Equity Fund.
<F**>See Note 2C
<F***>The Small-Cap Equity Fund began operations on May 1, 1997.
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
EQUITY INCOME GROWTH
FUND DIVISION FUND DIVISION
---------------------------------------- ----------------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 314,148 $ 247,254 $ 186,680 $ 64,208 $ 116,859 $ 94,061
Expenses:
Mortality and expense charges - VUL-95 (66,672) (59,688) (49,108) (114,678) (86,045) (65,287)
Mortality and expense charges - VGSP (54,738) (42,329) (27,082) (93,832) (56,854) (37,459)
Mortality and expense charges - VUL-100 (63,116) (63,128) (34,605) (132,573) (84,948) (42,613)
Mortality and expense charges - VUL-98 (3,380) (9) 0 (6,291) (12) 0
Mortality and expense charges - JSVUL-98 (250) (2) 0 (559) 0 0
---------- ---------- ---------- ----------- ----------- ----------
Total expenses (188,156) (165,156) (110,795) (347,933) (227,859) (145,359)
---------- ---------- ---------- ----------- ----------- ----------
Net investment income (expense) 125,992 82,098 75,885 (283,725) (111,000) (51,298)
---------- ---------- ---------- ----------- ----------- ----------
Net realized gain on investments:
Realized gain from distributions 694,432 879,933 938,582 4,037,056 3,056,780 421,033
Realized gain on sales 803,421 1,352,865 310,747 1,981,320 1,016,065 381,175
---------- ---------- ---------- ----------- ----------- ----------
Net realized gain on investments: 1,497,853 2,232,798 1,249,329 6,018,376 4,072,845 802,208
---------- ---------- ---------- ----------- ----------- ----------
Net unrealized gain on investments:
Unrealized gain on investments,
beginning of period 3,031,759 3,330,524 1,528,943 10,185,551 4,728,383 2,039,425
Unrealized gain on investments,
end of period 2,561,251 3,031,759 3,330,524 18,619,738 10,185,551 4,728,383
---------- ---------- ---------- ----------- ----------- ----------
Net unrealized gain (loss) on
investments (470,508) (298,765) 1,801,581 8,434,187 5,457,168 2,688,958
---------- ---------- ---------- ----------- ----------- ----------
Net gain on investments 1,027,345 1,934,033 3,050,910 14,452,563 9,530,013 3,491,166
---------- ---------- ---------- ----------- ----------- ----------
Net increase in net assets
resulting from operations $1,153,337 $2,016,131 $3,126,795 $14,168,838 $ 9,419,013 $3,439,868
========== ========== ========== =========== =========== ==========
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
OVERSEAS ASSET MANAGER
FUND DIVISION FUND DIVISION
---------------------------------------- -------------------------------------
1999 1998 1997 1999 1998 1997
---------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 155,887 $163,318 $ 98,942 $ 41,846 $ 21,154 $ 9,219
Expenses:
Mortality and expense charges - VUL-95 (44,402) (38,993) (32,823) (1,503) (806) (219)
Mortality and expense charges - VGSP (25,313) (20,879) (15,095) (2,528) (1,194) (597)
Mortality and expense charges - VUL-100 (19,996) (15,142) (9,246) (9,469) (5,819) (2,776)
Mortality and expense charges - VUL-98 (1,027) (1) 0 (1,934) (4) 0
Mortality and expense charges - JSVUL-98 (102) (2) 0 (4) 0 0
---------- -------- -------- -------- -------- -------
Total expenses (90,840) (75,017) (57,164) (15,438) (7,823) (3,592)
---------- -------- -------- -------- -------- -------
Net investment income 65,047 88,301 41,778 26,408 13,331 5,627
---------- -------- -------- -------- -------- -------
Net realized gain on investments:
Realized gain from distributions 251,431 481,359 392,769 53,005 63,464 23,126
Realized gain on sales 344,512 205,251 73,551 31,755 11,108 10,620
---------- -------- -------- -------- -------- -------
Net realized gain on investments: 595,943 686,610 466,320 84,760 74,572 33,746
---------- -------- -------- -------- -------- -------
Net unrealized gain on investments:
Unrealized gain on investments,
beginning of period 898,037 701,980 639,437 93,508 54,259 19,793
Unrealized gain on investments,
end of period 4,550,473 898,037 701,980 178,795 93,508 54,259
---------- -------- -------- -------- -------- -------
Net unrealized gain on investments 3,652,436 196,057 62,543 85,287 39,249 34,466
---------- -------- -------- -------- -------- -------
Net gain on investments 4,248,379 882,667 528,863 170,047 113,821 68,212
---------- -------- -------- -------- -------- -------
Net increase in net assets
resulting from operations $4,313,426 $970,968 $570,641 $196,455 $127,152 $73,839
========== ======== ======== ======== ======== =======
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
HIGH INCOME WORLDWIDE HARD ASSETS
FUND DIVISION FUND DIVISION<F*>
-------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
--------- --------- -------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 282,249 $ 162,896 $ 91,441 $ 3,217 $ 1,564 $ 3,388
Expenses:
Mortality and expense charges - VUL-95 (2,058) (2,432) (2,255) (722) (759) (754)
Mortality and expense charges - VGSP (6,873) (7,426) (4,993) (316) (180) (186)
Mortality and expense charges - VUL-100 (19,402) (10,806) (6,583) (1,242) (1,123) (917)
Mortality and expense charges - VUL-98 (938) (3) 0 (23) 0 0
Mortality and expense charges - JSVUL-98 (284) (2) 0 0 0 0
--------- --------- -------- --------- --------- --------
Total expenses (29,555) (20,669) (13,831) (2,303) (2,062) (1,857)
--------- --------- -------- --------- --------- --------
Net investment income (expense) 252,694 142,227 77,610 914 (498) 1,531
--------- --------- -------- --------- --------- --------
Net realized gain (loss) on investments:
Realized gain from distributions 10,551 103,507 11,302 0 38,415 4,590
Realized gain (loss) on sales (195,235) 17,158 17,736 (40,905) (23,214) (1,380)
--------- --------- -------- --------- --------- --------
Net realized gain (loss) on investments: (184,684) 120,665 29,038 (40,905) 15,201 3,210
--------- --------- -------- --------- --------- --------
Net unrealized gain (loss) on investments:
Unrealized gain (loss) on investments,
beginning of period (198,858) 220,773 57,062 (115,608) (10,760) 3,346
Unrealized gain (loss) on investments,
end of period (27,408) (198,858) 220,773 (28,094) (115,608) (10,760)
--------- --------- -------- --------- --------- --------
Net unrealized gain (loss) on
investments 171,450 (419,631) 163,711 87,514 (104,848) (14,106)
--------- --------- -------- --------- --------- --------
Net gain (loss) on investments (13,234) (298,966) 192,749 46,609 (89,647) (10,896)
--------- --------- -------- --------- --------- --------
Net increase (decrease) in net assets
resulting from operations $ 239,460 $(156,739) $270,359 $ 47,523 $ (90,145) $ (9,365)
========= ========= ======== ========= ========= ========
<FN>
<F*>This fund was formerly known as the Gold & Natural Resources Fund.
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF OPERATIONS
PERIOD AND YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
WORLDWIDE
EMERGING MARKETS MULTI-STYLE EQUITY
FUND DIVISION FUND DIVISION<F**>
------------------- -------------------------------------
1999 1998<F*> 1999 1998 1997
-------- -------- ---------- ---------- -------
<S> <C> <C> <C> <C> <C>
Investment income $ 0 $ 0 $ 104,649 $ 34,444 $ 599
Expenses:
Mortality and expense charges - VUL-95 (32) 0 (3,542) (344) 0
Mortality and expense charges - VGSP (88) 0 (65,628) (27,236) (996)
Mortality and expense charges - VUL-100 (340) 0 (3,741) (164) 0
Mortality and expense charges - Russell VUL 0 0 (19,658) (12,992) (1,582)
Mortality and expense charges - VUL-98 (115) (2) (1,847) (20) 0
Mortality and expense charges - JSVUL-98 (8) 0 (282) (4) 0
------- ----- ---------- ---------- -------
Total expenses (583) (2) (94,698) (40,760) (2,578)
------- ----- ---------- ---------- -------
Net investment income (expense) (583) (2) 9,951 (6,316) (1,979)
------- ----- ---------- ---------- -------
Net realized gain on investments:
Realized gain from distributions 0 0 1,357,954 72,664 0
Realized gain (loss) on sales 29,159 0 281,283 66,462 5,224
------- ----- ---------- ---------- -------
Net realized gain on investments: 29,159 0 1,639,237 139,126 5,224
------- ----- ---------- ---------- -------
Net unrealized gain (loss) on investments:
Unrealized gain on investments,
beginning of period 143 0 1,504,566 1,553 0
Unrealized gain (loss) on investments,
end of period 44,010 143 2,118,228 1,504,566 1,553
------- ----- ---------- ---------- -------
Net unrealized gain (loss) on investments 43,867 143 613,662 1,503,013 1,553
------- ----- ---------- ---------- -------
Net gain (loss) on investments 73,026 143 2,252,899 1,642,139 6,777
------- ----- ---------- ---------- -------
Net increase (decrease) in net assets
resulting from operations $72,443 $ 141 $2,262,850 $1,635,823 $ 4,798
======= ===== ========== ========== =======
<FN>
<F*>The Worldwide Emerging Markets Fund began operations on September 15, 1998.
<F**>The Multi-Style Equity Fund and the Core Bond Fund began operations on January 2, 1997. (continued)
See accompanying notes to the financial statements.
<PAGE>
<CAPTION>
CORE BOND
FUND DIVISION<F**>
----------------------------------
1999 1998 1997
--------- -------- -------
<S> <C> <C> <C>
Investment income $ 476,170 $157,233 $ 2,483
Expenses:
Mortality and expense charges - VUL-95 (500) (84) 0
Mortality and expense charges - VGSP (36,113) (17,465) (408)
Mortality and expense charges - VUL-100 (1,424) (20) 0
Mortality and expense charges - Russell VUL (8,800) (6,579) (1,146)
Mortality and expense charges - VUL-98 (1,426) (2) 0
Mortality and expense charges - JSVUL-98 (118) (2) 0
--------- -------- -------
Total expenses (48,381) (24,152) (1,554)
--------- -------- -------
Net investment income (expense) 427,789 133,081 929
--------- -------- -------
Net realized gain on investments:
Realized gain from distributions 292,845 8,034 0
Realized gain (loss) on sales (62,678) 27,645 705
--------- -------- -------
Net realized gain on investments: 230,167 35,679 705
--------- -------- -------
Net unrealized gain (loss) on investments:
Unrealized gain on investments,
beginning of period 99,544 27,482 0
Unrealized gain (loss) on investments,
end of period (651,116) 99,544 27,482
--------- -------- -------
Net unrealized gain (loss) on investments (750,660) 72,062 27,482
--------- -------- -------
Net gain (loss) on investments (520,493) 107,741 28,187
--------- -------- -------
Net increase (decrease) in net assets
resulting from operations $ (92,704) $240,822 $29,116
========= ======== =======
<FN>
<F**>The Multi-Style Equity Fund and the Core Bond Fund began operations on January 2, 1997. (continued)
See accompanying notes to the financial statements.
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
AGGRESSIVE EQUITY NON-US
FUND DIVISION<F*> FUND DIVISION<F*>
----------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
-------- -------- ------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 13,632 $ 3,204 $ 23 $ 75,751 $ 18,758 $ 0
Expenses:
Mortality and expense charges - VUL-95 (1,191) (233) 0 (1,218) (207) 0
Mortality and expense charges - VGSP (15,730) (9,648) (505) (16,258) (9,418) (496)
Mortality and expense charges - VUL-100 (891) (47) 0 (1,045) (21) 0
Mortality and expense charges -
Russell VUL (6,519) (5,729) (682) (5,664) (3,734) (649)
Mortality and expense charges - VUL-98 (1,111) (18) 0 (458) (3) 0
Mortality and expense charges - JSVUL-98 (84) 0 0 (98) (2) 0
-------- -------- ------- ---------- -------- --------
Total expenses (25,526) (15,675) (1,187) (24,741) (13,385) (1,145)
-------- -------- ------- ---------- -------- --------
Net investment income (expense) (11,894) (12,471) (1,164) 51,010 5,373 (1,145)
-------- -------- ------- ---------- -------- --------
Net realized gain (loss) on investments:
Realized gain from distributions 21,933 103,600 0 104,370 5,331 0
Realized gain (loss) on sales (47,751) (61,039) 2,158 109,735 (18,787) 78
-------- -------- ------- ---------- -------- --------
Net realized gain (loss) on
investments: (25,818) 42,561 2,158 214,105 (13,456) 78
-------- -------- ------- ---------- -------- --------
Net unrealized gain (loss) on investments:
Unrealized gain (loss) on investments,
beginning of period (22,415) 23,627 0 160,666 (57,317) 0
Unrealized gain (loss) on investments,
end of period 318,975 (22,415) 23,627 1,132,570 160,666 (57,317)
-------- -------- ------- ---------- -------- --------
Net unrealized gain (loss) on
investments 341,390 (46,042) 23,627 971,904 217,983 (57,317)
-------- -------- ------- ---------- -------- --------
Net gain (loss) on investments 315,572 (3,481) 25,785 1,186,009 204,527 (57,239)
-------- -------- ------- ---------- -------- --------
Net increase (decrease) in net assets
resulting from operations $303,678 $(15,952) $24,621 $1,237,019 $209,900 $(58,384)
======== ======== ======= ========== ======== ========
<FN>
<F*>The Aggressive Equity Fund and the Non-US Fund began operations on January 2, 1997.
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999, AND 1998
<CAPTION>
INCOME & GROWTH INTERNATIONAL VALUE
FUND DIVISION FUND DIVISION FUND DIVISION
--------------------- ---------------------- ----------------------
1999 1998<F*> 1999 1998<F*> 1999 1998<F*>
------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 8 $ 35 $ 0 $ 0 $ 48 $ 0
Expenses:
Mortality and expense charges - VUL-95 (39) 0 (12) 0 0 0
Mortality and expense charges - VGSP (31) 0 (92) 0 (22) 0
Mortality and expense charges - VUL-100 (680) 0 (389) 0 (305) 0
Mortality and expense charges - VUL-98 (1,556) (3) (475) 0 (208) (1)
Mortality and expense charges - JSVUL-98 (58) 0 (21) 0 (6) 0
------- ----- -------- ----- -------- -----
Total expenses (2,364) (3) (989) 0 (541) (1)
------- ----- -------- ----- -------- -----
Net investment income (expense) (2,356) 32 (989) 0 (493) (1)
------- ----- -------- ----- -------- -----
Net realized gain on investments:
Realized gain from distributions 0 0 0 0 450 0
Realized gain (loss) on sales 34,901 12 49,932 5 (14,864) 0
------- ----- -------- ----- -------- -----
Net realized gain (loss) on investments: 34,901 12 49,932 5 (14,414) 0
------- ----- -------- ----- -------- -----
Net unrealized gain on investments:
Unrealized gain on investments,
beginning of period 471 0 45 0 85 0
Unrealized gain on investments,
end of period 43,675 471 120,672 45 1,835 85
------- ----- -------- ----- -------- -----
Net unrealized gain on investments 43,204 471 120,627 45 1,750 85
------- ----- -------- ----- -------- -----
Net gain (loss) on investments 78,105 483 170,559 50 (12,664) 85
------- ----- -------- ----- -------- -----
Net increase (decrease) in net assets
resulting from operations $75,749 $ 515 $169,570 $ 50 $(13,157) $ 84
======= ===== ======== ===== ======== =====
<FN>
<F*>The Income & Growth Fund, International Fund, and Value Fund began operations on September 15, 1998. (continued)
See accompanying notes to the financial statements.
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999, AND 1998
<CAPTION>
BOND PORTFOLIO SMALL COMPANY
FUND DIVISION FUND DIVISION
--------------------- ----------------------
1999 1998<F*> 1999 1998<F*>
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Investment income:
Dividend income $ 2,328 $ 0 $ 104 $ 4
Expenses:
Mortality and expense charges - VUL-95 (15) 0 (36) 0
Mortality and expense charges - VGSP (20) 0 (91) 0
Mortality and expense charges - VUL-100 (8) 0 (32) 0
Mortality and expense charges - VUL-98 (171) (1) (519) (4)
Mortality and expense charges - JSVUL-98 (7) 0 (53) 0
------- ----- -------- -----
Total expenses (221) (1) (731) (4)
------- ----- -------- -----
Net investment income (expense) 2,107 (1) (627) 0
------- ----- -------- -----
Net realized gain (loss) on investments:
Realized gain from distributions 40 0 11,337 71
Realized gain (loss) on sales (262) 0 4,540 9
------- ----- -------- -----
Net realized gain (loss) on investments: (222) 0 15,877 80
------- ----- -------- -----
Net unrealized gain (loss) on investments:
Unrealized gain on investments,
beginning of period 3 0 187 0
Unrealized gain (loss) on investments,
end of period (2,015) 3 96,610 187
------- ----- -------- -----
Net unrealized gain (loss) on investments (2,018) 3 96,423 187
------- ----- -------- -----
Net gain (loss) on investments (2,240) 3 112,300 267
------- ----- -------- -----
Net increase (decrease) in net assets
resulting from operations $ (133) $ 2 $111,673 $ 267
======= ===== ======== =====
<FN>
<F*>The Bond Portfolio Fund and Small Company Portfolio Fund began operations on September 15, 1998.
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
S & P 500 INDEX MONEY MARKET
FUND DIVISION FUND DIVISION
----------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
----------- ----------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment expense $ (404,761) $ (246,025) $ (125,228) $ (60,049) $ (45,604) $ (36,015)
Net realized gain on investments 6,020,806 3,142,731 2,484,096 548,377 435,619 73,476
Net unrealized gain (loss) on
investments 3,741,542 4,823,143 1,526,899 (108,747) (110,593) 183,867
----------- ----------- ----------- ---------- ---------- ----------
Net increase in net assets
resulting from operations 9,357,587 7,719,849 3,885,767 379,581 279,422 221,328
Net deposits into (deductions from)
Separate Account 8,977,500 14,119,467 2,209,424 2,797,074 (2,860,090) 932,501
----------- ----------- ----------- ---------- ---------- ----------
Increase (decrease) in net assets 18,335,087 21,839,316 6,095,191 3,176,655 (2,580,668) 1,153,829
Net assets, beginning of period 42,417,639 20,578,323 14,483,132 6,735,587 9,316,255 8,162,426
----------- ----------- ----------- ---------- ---------- ----------
Net assets, end of period $60,752,726 $42,417,639 $20,578,323 $9,912,242 $6,735,587 $9,316,255
=========== =========== =========== ========== ========== ==========
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
BOND INDEX MANAGED EQUITY
FUND DIVISION FUND DIVISION
--------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment expense $ (49,087) $ (33,130) $ (22,907) $ (50,674) $ (40,187) $ (29,512)
Net realized gain (loss) on investments 357,632 271,592 (10,472) 472,578 700,721 346,937
Net unrealized gain (loss) on
investments (528,508) 63,834 250,471 (325,744) (48,504) 368,231
---------- ---------- ----------- ---------- ---------- ----------
Net increase in net assets
resulting from operations (219,963) 302,296 217,092 96,160 612,030 685,656
Net deposits into (deductions from)
Separate Account 1,249,584 1,356,281 (3,532,130) 761,498 679,065 779,803
---------- ---------- ----------- ---------- ---------- ----------
Increase (decrease) in net assets 1,029,621 1,658,577 (3,315,038) 857,658 1,291,095 1,465,459
Net assets, beginning of period 5,107,121 3,448,544 6,763,582 5,526,410 4,235,315 2,769,856
---------- ---------- ----------- ---------- ---------- ----------
Net assets, end of period $6,136,742 $5,107,121 $ 3,448,544 $6,384,068 $5,526,410 $4,235,315
========== ========== =========== ========== ========== ==========
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
ASSET ALLOCATION INTERNATIONAL INDEX
FUND DIVISION FUND DIVISION<F*>
----------------------------------------- ---------------------------------------
1999 1998 1997 1999 1998 1997
----------- ----------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment expense $ (130,807) $ (96,929) $ (80,244) $ (90,299) $ (75,098) $ (62,954)
Net realized gain on investments 1,091,284 1,376,431 507,259 460,726 341,655 357,331
Net unrealized gain (loss) on
investments 2,321,622 574,168 1,104,802 2,469,103 1,228,544 (199,315)
----------- ----------- ----------- ----------- ---------- ----------
Net increase in net assets
resulting from operations 3,282,099 1,853,670 1,531,817 2,839,530 1,495,101 95,062
Net deposits into
Separate Account 1,858,100 1,102,997 909,812 237,255 557,433 979,833
----------- ----------- ----------- ----------- ---------- ----------
Increase in net assets 5,140,199 2,956,667 2,441,629 3,076,785 2,052,534 1,074,895
Net assets, beginning of period 13,432,972 10,476,305 8,034,676 9,916,827 7,864,293 6,789,398
----------- ----------- ----------- ----------- ---------- ----------
Net assets, end of period $18,573,171 $13,432,972 $10,476,305 $12,993,612 $9,916,827 $7,864,293
=========== =========== =========== =========== ========== ==========
<FN>
<F*>This fund was formerly known as the International Equity Fund.
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
MID-CAP EQUITY SMALL-CAP EQUITY
FUND DIVISION<F*> FUND DIVISION
-------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997<F**>
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment expense $ (57,427) $ (54,944) $ (40,537) $ (21,138) $ (14,676) $ (2,283)
Net realized gain (loss) on investments 256,018 401,831 451,508 (83,189) 45,675 150,417
Net unrealized gain (loss) on
investments 751,193 (580,273) 945,457 (25,587) (280,946) (133,375)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations 949,784 (233,386) 1,356,428 (129,914) (249,947) 14,759
Net deposits into (deductions from)
Separate Account 26,099 1,376,768 793,111 672,746 1,480,805 1,129,095
---------- ---------- ---------- ---------- ---------- ----------
Increase in net assets 975,883 1,143,382 2,149,539 542,832 1,230,858 1,143,854
Net assets, beginning of period 7,378,098 6,234,716 4,085,177 2,374,712 1,143,854 0
---------- ---------- ---------- ---------- ---------- ----------
Net assets, end of period $8,353,981 $7,378,098 $6,234,716 $2,917,544 $2,374,712 $1,143,854
========== ========== ========== ========== ========== ==========
<FN>
<F*>This fund was formerly known as the Special Equity Fund.
<F**>The Small-Cap Equity Fund began operations on May 1, 1997.
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
EQUITY INCOME GROWTH
FUND DIVISION FUND DIVISION
----------------------------------------- -----------------------------------------
1999 1998 1997 1999 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ 125,992 $ 82,098 $ 75,885 $ (283,725) $ (111,000) $ (51,298)
Net realized gain on investments 1,497,853 2,232,798 1,249,329 6,018,376 4,072,845 802,208
Net unrealized gain (loss) on
investments (470,508) (298,765) 1,801,581 8,434,187 5,457,168 2,688,958
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations 1,153,337 2,016,131 3,126,795 14,168,838 9,419,013 3,439,868
Net deposits into
Separate Account 2,171,008 1,818,144 3,516,214 6,264,467 3,631,816 5,418,111
----------- ----------- ----------- ----------- ----------- -----------
Increase in net assets 3,324,345 3,834,275 6,643,009 20,433,305 13,050,829 8,857,979
Net assets, beginning of period 20,830,092 16,995,817 10,352,808 35,279,420 22,228,591 13,370,612
----------- ----------- ----------- ----------- ----------- -----------
Net assets, end of period $24,154,437 $20,830,092 $16,995,817 $55,712,725 $35,279,420 $22,228,591
=========== =========== =========== =========== =========== ===========
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
OVERSEAS ASSET MANAGER
FUND DIVISION FUND DIVISION
--------------------------------------- ------------------------------------
1999 1998 1997 1999 1998 1997
----------- ---------- ---------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 65,047 $ 88,301 $ 41,778 $ 26,408 $ 13,331 $ 5,627
Net realized gain on investments 595,943 686,610 466,320 84,760 74,572 33,746
Net unrealized gain on investments 3,652,436 196,057 62,543 85,287 39,249 34,466
----------- ---------- ---------- ---------- ---------- --------
Net increase in net assets
resulting from operations 4,313,426 970,968 570,641 196,455 127,152 73,839
Net deposits into
Separate Account 765,467 830,006 2,154,913 984,955 531,902 227,154
----------- ---------- ---------- ---------- ---------- --------
Increase in net assets 5,078,893 1,800,974 2,725,554 1,181,410 659,054 300,993
Net assets, beginning of period 9,972,458 8,171,484 5,445,930 1,236,511 577,457 276,464
----------- ---------- ---------- ---------- ---------- --------
Net assets, end of period $15,051,351 $9,972,458 $8,171,484 $2,417,921 $1,236,511 $577,457
=========== ========== ========== ========== ========== ========
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
HIGH INCOME WORLDWIDE HARD ASSETS
FUND DIVISION FUND DIVISION<F*>
-------------------------------------- --------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ 252,694 $ 142,227 $ 77,610 $ 914 $ (498) $ 1,531
Net realized gain (loss) on investments (184,684) 120,665 29,038 (40,905) 15,201 3,210
Net unrealized gain (loss) on
investments 171,450 (419,631) 163,711 87,514 (104,848) (14,106)
---------- ---------- ---------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations 239,460 (156,739) 270,359 47,523 (90,145) (9,365)
Net deposits into
Separate Account 1,146,113 970,866 711,529 47,731 41,428 92,851
---------- ---------- ---------- -------- -------- --------
Increase (decrease) in net assets 1,385,573 814,127 981,888 95,254 (48,717) 83,486
Net assets, beginning of period 2,987,046 2,172,919 1,191,031 221,088 269,805 186,319
---------- ---------- ---------- -------- -------- --------
Net assets, end of period $4,372,619 $2,987,046 $2,172,919 $316,342 $221,088 $269,805
========== ========== ========== ======== ======== ========
<FN>
<F*>This fund was formerly known as the Gold & Natural Rescources Fund.
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
WORLDWIDE
EMERGING MARKETS MULTI-STYLE EQUITY
FUND DIVISION FUND DIVISION<F**>
--------------------- ------------------------------------------
1999 1998<F*> 1999 1998 1997
-------- -------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ (583) $ (2) $ 9,951 $ (6,316) $ (1,979)
Net realized gain on investments 29,159 0 1,639,237 139,126 5,224
Net unrealized gain (loss) on investments 43,867 143 613,662 1,503,013 1,553
-------- ------ ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations 72,443 141 2,262,850 1,635,823 4,798
Net deposits into
Separate Account 194,510 1,700 3,014,155 7,540,459 2,534,482
-------- ------ ----------- ----------- ----------
Increase in net assets 266,953 1,841 5,277,005 9,176,282 2,539,280
Net assets, beginning of period 1,841 0 11,715,562 2,539,280 0
-------- ------ ----------- ----------- ----------
Net assets, end of period $268,794 $1,841 $16,992,567 $11,715,562 $2,539,280
======== ====== =========== =========== ==========
<CAPTION>
CORE BOND
FUND DIVISION<F**>
--------------------------------------
1999 1998 1997
---------- ---------- ----------
<S> <C> <C> <C>
Operations:
Net investment income (expense) $ 427,789 $ 133,081 $ 929
Net realized gain on investments 230,167 35,679 705
Net unrealized gain (loss) on investments (750,660) 72,062 27,482
---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations (92,704) 240,822 29,116
Net deposits into
Separate Account 3,244,804 5,262,341 1,125,291
---------- ---------- ----------
Increase in net assets 3,152,100 5,503,163 1,154,407
Net assets, beginning of period 6,657,570 1,154,407 0
---------- ---------- ----------
Net assets, end of period $9,809,670 $6,657,570 $1,154,407
========== ========== ==========
<FN>
<F*>The Worldwide Emerging Markets Fund Fund began operations on September 15,1998.
<F**>The Multi-Style Equity Fund, and Core Bond Fund began operations on January 2, 1997.
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<CAPTION>
AGGRESSIVE EQUITY NON-US
FUND DIVISION<F*> FUND DIVISION<F*>
-------------------------------------- ------------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ---------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ (11,894) $ (12,471) $ (1,164) $ 51,010 $ 5,373 $ (1,145)
Net realized gain (loss) on investments (25,818) 42,561 2,158 214,105 (13,456) 78
Net unrealized gain (loss) on investments 341,390 (46,042) 23,627 971,904 217,983 (57,317)
---------- ---------- ---------- ---------- ---------- --------
Net increase (decrease) in net assets
resulting from operations 303,678 (15,952) 24,621 1,237,019 209,900 (58,384)
Net deposits into
Separate Account 607,124 2,627,723 1,320,804 349,703 2,418,138 842,227
---------- ---------- ---------- ---------- ---------- --------
Increase in net assets 910,802 2,611,771 1,345,425 1,586,722 2,628,038 783,843
Net assets, beginning of period 3,957,196 1,345,425 0 3,411,881 783,843 0
---------- ---------- ---------- ---------- ---------- --------
Net assets, end of period $4,867,998 $3,957,196 $1,345,425 $4,998,603 $3,411,881 $783,843
========== ========== ========== ========== ========== ========
<FN>
<F*>The Aggressive Equity Fund and Non-U.S. Fund began operations on January 2, 1997.
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1999, AND 1998
<CAPTION>
INCOME & GROWTH INTERNATIONAL VALUE
FUND DIVISION FUND DIVISION FUND DIVISION
--------------------- --------------------- ---------------------
1999 1998<F*> 1999 1998<F*> 1999 1998<F*>
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ (2,356) $ 32 $ (989) $ 0 $ (493) $ (1)
Net realized gain (loss) on investments 34,901 12 49,932 5 (14,414) 0
Net unrealized gain on investments 43,204 471 120,627 45 1,750 85
-------- ------ -------- ---- -------- ------
Net increase (decrease) in net assets
resulting from operations 75,749 515 169,570 50 (13,157) 84
Net deposits into
Separate Account 652,207 6,845 433,721 853 106,165 3,786
-------- ------ -------- ---- -------- ------
Increase in net assets 727,956 7,360 603,291 903 93,008 3,870
Net assets, beginning of period 7,360 0 903 0 3,870 0
-------- ------ -------- ---- -------- ------
Net assets, end of period $735,316 $7,360 $604,194 $903 $ 96,878 $3,870
======== ====== ======== ==== ======== ======
<FN>
<F*>The Income & Growth Fund, International Fund, and Value Fund began operations on September 15, 1998.
See accompanying notes to the financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1999, AND 1998
<CAPTION>
BOND PORTFOLIO SMALL COMPANY
FUND DIVISION FUND DIVISION
-------------------- ---------------------
1999 1998<F*> 1999 1998<F*>
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ 2,107 $ (1) $ (627) $ 0
Net realized gain (loss) on investments (222) 0 15,877 80
Net unrealized gain (loss) on investments (2,018) 3 96,423 187
-------- ------ -------- ------
Net increase (decrease) in net assets
resulting from operations (133) 2 111,673 267
Net deposits into
Separate Account 138,293 3,299 482,575 2,922
-------- ------ -------- ------
Increase in net assets 138,160 3,301 594,248 3,189
Net assets, beginning of period 3,301 0 3,189 0
-------- ------ -------- ------
Net assets, end of period $141,461 $3,301 $597,437 $3,189
======== ====== ======== ======
<FN>
<F*>The Bond Portfolio Fund and Small Company Fund began operations on September 15, 1998.
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
NOTE 1 - ORGANIZATION
General American Separate Account Eleven (the Separate Account)
commenced operations on September 15, 1987 and is registered under the
Investment Company Act of 1940 (1940 Act) as a unit investment trust.
The Separate Account offers six products: Variable Universal Life
(VUL-95), Variable General Select Plus (VGSP), Variable Universal Life
(VUL-100), Russell Variable Universal Life (Russell VUL) Variable
Universal Life (VUL-98), and Joint and Survivor Universal Life (JSVUL-98)
that receive and invest net premiums for flexible premium variable
life insurance policies that are issued by General American Life
Insurance Company (General American). The Separate Account is divided
into twenty-four Divisions. Each Division invests exclusively in shares
of a single Fund of either General American Capital Company, Variable
Insurance Products Fund, Variable Insurance Products Fund II, Van Eck
Worldwide Insurance Trust, Russell Insurance Funds, American Century
Variable Portfolios, Inc. or J.P. Morgan Series Trust II which are
open-end, diversified management companies. The Funds of the General
American Capital Company, sponsored by General American, are the
S & P 500 Index (formerly Equity Index), Money Market, Bond Index, Managed
Equity, Asset Allocation, International Index (formerly International
Equity), Mid-Cap Equity (formerly Special Equity), and the Small-Cap
Equity Fund Divisions. The Funds of the Variable Insurance Products
Fund, managed by Fidelity Management & Research Company, are the Equity
Income, Growth, Overseas, and the High Income Fund Divisions. The Funds
of the Variable Insurance Products Fund II, managed by Fidelity
Management and Research Company is the Asset Manager Fund. The Funds of
the Van Eck Worldwide Insurance Trust, managed by Van Eck Associates
Corporation, are the Worldwide Hard Assets Fund, formerly known as the
Gold and Natural Resources Fund and the Worldwide Emerging Markets Fund
Divisions. The Funds of the Russell Variable Insurance Product, managed
by Frank Russell Investment Management Company are the Multi-style
Equity, Core Bond, Aggressive Equity, and Non-US Fund Divisions. The
Funds of the American Century Variable Portfolios, Inc. managed by
American Century Investments are the Income & Growth, International, and
Value Fund Divisions. The Funds of the J.P. Morgan Trust II, managed by
J.P. Morgan Investment Management, Inc. are the Bond Portfolio and Small
Company Portfolio Fund Divisions. Policyholders have the option of
directing their premium payments into one or all of the Funds as well as
into the general account of General American, which is not generally
subject to regulation under the Securities Act of 1933 or the 1940 Act.
On January 6, 2000, Metropolitan Life Insurance Company (Metlife),
headquartered in New York City, purchased 100% of GenAmerica Corporation
(the Company) for $1.2 billion in cash. The acquisition was a result of
liquidity problems encountered by the Company's wholly-owned subsidiary
General American Life Insurance Company (General American) during 1999.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed
by the Separate Account in the preparation of its financial statements.
The policies are in conformity with generally accepted accounting
principles.
A. Investments
The Separate Accounts' investments in the twenty-four Funds are
valued daily based on the net asset values of the respective Fund
shares held as reported to General American by General American
Capital Company, Variable Insurance Products Fund, Variable
Insurance Products Fund II, Van Eck Worldwide Insurance Trust,
Russell Insurance Funds, American Century Portfolios, and J.P.
Morgan Series Trust II. The specific identification method is
used in determining the cost of shares sold on withdrawals by the
Separate Account. Share transactions are recorded on the trade
date, which is the same as the settlement date.
B. Federal Income Taxes
Under current federal income tax law, capital gains from sales of
investments of the Separate Account are not taxable. Therefore,
no federal income tax expense has been provided.
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
C. Distribution of Income and Realized Capital Gains
General American Capital Company follows the federal income tax
practice known as consent dividending, whereby substantially all
of its net investment income and realized gains are deemed to be
passed through to the Separate Account. As a result, General
American Capital Company does not pay any dividends or capital
gain distributions. During December of each year, accumulated
investment income and capital gains of the underlying Capital
Company Fund are allocated to the Separate Account by increasing
the cost basis and recognizing a capital gain in the Separate
Account. The Variable Insurance Products Fund, Variable Insurance
Products Fund II, Van Eck Worldwide Insurance Trust, Russell
Insurance Funds, American Century Variable Portfolios, and J.P.
Morgan Series Trust II intend to pay out all of their net
investment income and net realized capital gains each year.
Dividends from the funds are distributed at least annually on a
per share basis and are recorded on the ex dividend date.
Normally, net realized capital gains, if any, are distributed each
year for each fund. Such income and capital gain distributions
are automatically reinvested in additional shares of the funds.
D. Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of increase and decrease in net assets from
operations during the period. Actual results could differ from
those estimates.
NOTE 3 - POLICY CHARGES
Charges are deducted from premiums and paid to General American for
providing the insurance benefits set forth in the contracts and any
additional benefits added by rider, administering the policies,
reimbursement of expenses incurred in distributing the policies, and
assuming certain risks in connection with the policies.
Prior to the allocation of net premiums among General American's general
account and the Fund Divisions of the Separate Account, premium
payments are reduced by premium expense charges, which consist 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 equal to 6% is deducted from each
-------------
VUL-95 premium paid. A sales charge of 5% in years one through
ten and 2.25% thereafter is deducted from each VGSP premium paid.
A maximum sales charge of 5% in years one through ten and a
maximum 2.25% thereafter based on initial deposit is deducted from
each Russell VUL premium paid. A sales charge equal to 15% up to
the target premium and 5% on the excess in the first policy year
is deducted from each VUL-98 and JSVUL-98 premium paid. The sales
charge is 5% on all premiums in policy years two to ten, and 2%
on all premiums in policy years eleven or later. This charge is
deducted to partially reimburse General American for expenses
incurred in distributing the policy and any additional benefits
provided by rider. No sales charge is deducted from VUL-100
premiums.
Premium Taxes: Various state and political subdivisions impose a
--------------
tax on premiums received by insurance companies. Premium taxes
vary from state to state. A deduction of 2% of each VUL-95
premium, 2.5% of each VGSP premium, 2.10% of each VUL-100 premium,
2.5% of each Russell VUL premium, and the actual tax rate for VUL-98
and JSVUL-98 is made from each premium payment for these taxes.
In addition, a 1.25% deduction is taken from VUL-100 premiums and
a 1.3% deduction is taken from VUL-98 and JSVUL-98 to cover the
company's Federal income tax costs attributable to the amount of
premium received.
Charges are deducted monthly from the cash value of each policy to
compensate General American for (a) certain administrative costs; (b)
insurance underwriting and acquisition expenses in connection with
issuing a policy; (c) the cost of insurance, and (d) the cost of
optional benefits added by rider.
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
Administrative Charge: General American has responsibility for
----------------------
the administration of the policies and the Separate Account. As
reimbursement for administrative expenses related to the
maintenance of each policy and the Separate Account, General
American assesses a monthly administrative charge against each
policy. This charge is $10 per month for a standard policy and
$12 per month for a pension policy during the first 12 policy
months and $4 (standard) and $6 (pension) per month for all policy
months beyond the 12th for VUL-95 contracts. The charge is $4 per
month for VGSP and Russell VUL contracts. The charge is $13 per
month during the first 12 policy months and $6 per month
thereafter for VUL-100 contracts. The charge is $25 per month in
the first policy year and $6 per month in each subsequent policy
year for VUL-98 and JSVUL-98 contracts.
Insurance Underwriting and Acquisition Expense Charge: An
------------------------------------------------------
additional administrative charge is deducted from the policy cash
value for VUL-95 as part of the monthly deduction during the first
12 policy months and for the first 12 policy months following an
increase in the face amount. The charge is $0.08 per month
multiplied by the face amount divided by 1,000. For VUL-100, the
charge during the first 12 policy months is $0.16 per month
multiplied by the face amount divided by 1,000, and in all policy
years thereafter, the charge is $0.01 per month multiplied by the
face amount divided by 1,000. For VUL-98 and JSVUL-98, there is a
charge per $1,000 of face amount, determined by age, sex, and
smoker class, payable for ten years following the policy issue or
an increase in the face amount.
Cost of Insurance: The cost of insurance is deducted on each
------------------
monthly anniversary date for the following policy month. Because
the cost of insurance depends upon a number of variables, the cost
varies for each policy month. The cost of insurance is
determined separately for the initial face amount and for any
subsequent increases in face amount. General American determines
the monthly cost of insurance charge by multiplying the applicable
cost of insurance rate or rates by the net amount at risk for each
policy month.
Optional Rider Benefits Charge: This monthly deduction includes
-------------------------------
charges for any additional benefits provided by rider.
Contingent Deferred Sales Charge: During the first ten policy
---------------------------------
years for VUL-95, VGSP, and Russell VUL, and the first fifteen
years for VUL-100, General American also assesses a charge upon
surrender or lapse of a policy, a requested decrease in face
amount, or a partial withdrawal that causes the face amount to
decrease. The amount of the charge assessed depends on a number
of factors, including whether the event is a full surrender or
lapse or only a decrease in face amount, the amount of premiums
received to date by General American, and the policy year in which
the surrender or other event takes place. For VUL-98 and JSVUL-
98, the charge is bases on the annual target premium, rather than
the premiums actually received by General American.
Mortality and Expense Charge: In addition to the above charges, a
-----------------------------
daily charge is made at the separate account level for the mortality
and expense risks assumed by General American. General American
deducts a daily charge from the Separate Account at the rate of
.002319% for VUL-95, .0019111% for VGSP, .002455% for VUL-100,
.001366% for Russell VUL, and .0015027% for VUL-98 and JSVUL-98 of
the net assets of each division of the Separate Account, which equals
an annual rate of .85%, .70%, .90%, .50%, .55%, and .55% for VUL-95,
VGSP, VUL-100, Russell VUL, VUL 98, and JSVUL-98, respectively.
VUL-95, VGSP, VUL-100, Russell VUL, VUL-98, and JSVUL-98 mortality
and expense charges for 1999 were $583,872, $528,396, $524,079,
$40,641, $54,323, and $5,931 respectively. The mortality risk
assumed by General American is the risk that those insured may die
sooner than anticipated and therefore, that 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.
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
NOTE 4 - INVESTMENT OBJECTIVES, MANAGER CHANGES AND NEW DIVISIONS
Effective April 30, 1998, the four divisions of the Frank Russell funds
became available for Variable Universal Life (VUL-95) and Variable
Universal Life (VUL 100).
On September 15, 1998, six new divisions and two new products - VUL-98
and JSVUL-98 were added to Separate Account Eleven. Three of the new
divisions are the Income & Growth Fund, the International Fund, and the
Value Fund. The underlying funds in these divisions are offered by
American Century Variable Portfolios and managed by American Century
Investments. Two of the new divisions are the Bond Portfolio Fund and
the Small Company Portfolio Fund. The underlying funds in these
divisions are offered by J.P. Morgan Trust II and managed by J.P. Morgan
Investment Management, Inc. The Worldwide Emerging Markets Fund
Division is offered by Van Eck World Wide Insurance Trust and managed by
Van Eck Associates Corporation. The investment objectives of each of
these new divisions are as follows:
Income & Growth Fund - To provide dividend growth, current income and
- --------------------
capital appreciation by investing in common stocks.
International Fund - To provide capital growth by investing primarily in
- ------------------
an internationally diversified portfolio of common stocks that are
considered by management to have prospects for appreciation.
Value Fund - To provide long-term capital growth by investing in
- ----------
securities that management believes to be undervalued at the time of
purchase.
Bond Portfolio Fund - To provide a high total return consistent with
- -------------------
moderate risk of capital and maintenance of liquidity.
Small Company Portfolio Fund - To provide a high total return from a
- ----------------------------
portfolio of equity securities of small companies.
Worldwide Emerging Markets Fund - To provide long-term capital
- -------------------------------
appreciation by investing primarily in equity securities in emerging
markets around the world.
Effective April 30, 1999, the three divisions of the American Century
funds, the two divisions of the J. P. Morgan funds, and the Worldwide
Emerging Markets Division offered by Van Eck Associates became available
for Variable Universal Life (VUL-95), Variable General Select Plus
(VGSP), and Variable Universal Life (VUL-100).
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
NOTE 5 - PURCHASES AND SALES
During the year ended December 31, 1999, purchases including net
realized gain and income from distribution and proceeds from sales of
General American Capital Company shares were as follows:
<TABLE>
<CAPTION>
S & P 500 MONEY BOND MANAGED ASSET INTERNATIONAL MID-CAP SMALL-CAP
INDEX MARKET INDEX EQUITY ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND FUND FUND FUND FUND
----------- ----------- ---------- ---------- ---------- ------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Purchases $17,996,914 $20,864,176 $2,462,394 $1,821,337 $4,740,174 $1,395,034 $1,564,641 $1,455,784
=========== =========== ========== ========== ========== ========== ========== ==========
Sales $ 5,552,782 $17,520,562 $ 896,592 $ 809,643 $2,550,835 $1,076,698 $1,568,690 $ 678,628
=========== =========== ========== ========== ========== ========== ========== ==========
</TABLE>
During the year ended December 31, 1999, purchases (including dividend
reinvestment) and proceeds from sales of Variable Insurance Products
Fund Shares were as follows:
<TABLE>
<CAPTION>
EQUITY INCOME GROWTH OVERSEAS HIGH INCOME
FUND FUND FUND FUND
------------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Purchases $5,903,602 $13,832,577 $2,346,334 $3,304,883
========== =========== ========== ==========
Sales $2,961,663 $ 3,848,234 $1,263,050 $1,892,920
========== =========== ========== ==========
</TABLE>
During the year ended December 31, 1999, purchases (including dividend
reinvestment) and proceeds from sales of Variable Insurance Products
Fund II shares were as follows:
<TABLE>
<CAPTION>
ASSET MANAGER
FUND
-------------
<S> <C>
Purchases $1,731,627
==========
Sales $ 664,603
==========
</TABLE>
During the year ended December 31, 1999, purchases (including dividend
reinvestment) and proceeds from sales of Van Eck Worldwide Insurance
Trust shares were as follows:
<TABLE>
<CAPTION>
WORLDWIDE WORLDWIDE
HARD ASSETS EMERGING
FUND MARKETS FUND
----------- ------------
<S> <C> <C>
Purchases $122,599 $529,983
======== ========
Sales $ 72,844 $344,809
======== ========
</TABLE>
During the year ended December 31, 1999, purchases (including dividend
reinvestment) and proceeds from sales of Russell Insurance Funds shares
were as follows:
<TABLE>
<CAPTION>
MULTI-STYLE CORE BOND AGGRESSIVE NON-US
EQUITY FUND FUND EQUITY FUND FUND
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Purchases $6,023,787 $5,542,508 $1,238,176 $1,216,509
========== ========== ========== ==========
Sales $1,281,297 $1,342,535 $ 630,824 $ 703,797
========== ========== ========== ==========
</TABLE>
<PAGE>
<PAGE>
During the period ended December 31, 1999, purchases (including dividend
reinvestment) and proceeds from sales of American Century Variable
Portfolios shares were as follows:
<TABLE>
<CAPTION>
INCOME & INTERNATIONAL
GROWTH FUND FUND VALUE FUND
----------- ------------- ----------
<S> <C> <C> <C>
Purchases $1,164,782 $792,441 $399,886
========== ======== ========
Sales $ 514,040 $359,568 $293,873
========== ======== ========
</TABLE>
During the period ended December 31, 1999, purchases (including dividend
reinvestment) and proceeds from sales of J.P. Morgan Series Trust II
shares were as follows:
<TABLE>
<CAPTION>
SMALL
BOND PORTFOLIO COMPANY
FUND PORTFOLIO FUND
-------------- --------------
<S> <C> <C>
Purchases $154,493 $541,150
======== ========
Sales $ 14,002 $ 49,236
======== ========
</TABLE>
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY
The following is a summary of the accumulation unit activity for the
years ended December 31, 1999, 1998, and 1997:
<TABLE>
<CAPTION>
S & P 500 INDEX MONEY MARKET
FUND DIVISION FUND DIVISION
----------------------------------- ---------------------------------------
1999 1998 1997 1999 1998 1997
-------- ------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Variable Universal Life - 95:
Deposits 40,318 53,610 70,404 56,074 63,693 98,719
Withdrawals (51,800) (44,959) (29,686) (31,779) (66,600) (110,821)
Outstanding units, beginning of year 244,956 236,305 195,587 43,796 46,703 58,805
-------- ------- -------- -------- ---------- --------
Outstanding units, end of year 233,474 244,956 236,305 68,091 43,796 46,703
======== ======= ======== ======== ========== ========
Variable General Select Plus:
Deposits 143,955 313,540 146,632 636,987 1,380,901 942,448
Withdrawals (105,975) (55,730) (305,772) (500,114) (1,744,430) (900,950)
Outstanding units, beginning of year 506,304 248,494 407,634 172,324 535,853 494,355
-------- ------- -------- -------- ---------- --------
Outstanding units, end of year 544,284 506,304 248,494 309,197 172,324 535,853
======== ======= ======== ======== ========== ========
Variable Universal Life - 100:
Deposits 195,193 384,015 212,106 343,675 825,392 738,912
Withdrawals (130,533) (89,826) (41,462) (400,299) (824,924) (707,676)
Outstanding units, beginning of year 587,054 292,865 122,221 166,596 166,128 134,892
-------- ------- -------- -------- ---------- --------
Outstanding units, end of year 651,714 587,054 292,865 109,972 166,596 166,128
======== ======= ======== ======== ========== ========
Russell Variable Universal Life:<F*>
Deposits 0 36,281 435,785
Withdrawals 0 (44,828) (427,238)
Outstanding units, beginning of year 0 8,547 0
-------- ---------- --------
Outstanding units, end of year 0 0 8,547
======== ========== ========
<FN>
<F*>The Russell Variable Universal Life product was introduced in 1997, and the first deposit was received
on May 6, 1997. (continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
years ended December 31, 1999, and 1998:
<CAPTION>
S & P 500 INDEX MONEY MARKET
FUND DIVISION FUND DIVISION
---------------------- --------------------------
1999 1998 1999 1998
------- ------ ---------- -------
<S> <C> <C> <C> <C>
Variable Universal Life - 98:<F*>
Deposits 493,771 12,188 1,665,714 190,317
Withdrawals (59,617) (256) (1,553,256) (40,880)
Outstanding units, beginning of year 11,932 0 149,437 0
------- ------ ---------- -------
Outstanding units, end of year 446,086 11,932 261,895 149,437
======= ====== ========== =======
Joint and Survivor Variable Universal Life - 98:<F*>
Deposits 93,119 105 206,783 27,427
Withdrawals (23,926) (2) (195,215) (3,565)
Outstanding units, beginning of year 103 0 23,862 0
------- ------ ---------- -------
Outstanding units, end of year 69,296 103 35,430 23,862
======= ====== ========== =======
<FN>
<F*>The Variable Universal Life 98 and Joint And Survivor Variable Universal Life products were introduced in 1998,
and the first deposits were received on September 29, 1998 and October 14, 1998, respectively. (continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY, (CONTINUED)
The following is a summary of the accumulation unit activity for the
years ended December 31, 1999, 1998, and 1997:
<CAPTION>
BOND INDEX MANAGED EQUITY
FUND DIVISION FUND DIVISION
----------------------------------- ---------------------------------
1999 1998 1997 1999 1998 1997
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Variable Universal Life - 95:
Deposits 19,306 25,406 45,996 12,253 16,942 20,213
Withdrawals (14,321) (12,912) (19,985) (14,768) (13,618) (19,170)
Outstanding units, beginning of year 109,948 97,454 71,443 96,034 92,710 91,667
------- ------- ------- ------- ------- -------
Outstanding units, end of year 114,933 109,948 97,454 93,519 96,034 92,710
======= ======= ======= ======= ======= =======
Variable General Select Plus:
Deposits 23,730 29,830 26,599 11,280 12,156 22,411
Withdrawals (9,825) (9,429) (398,540) (6,022) (8,587) (10,526)
Outstanding units, beginning of year 70,801 50,400 422,341 41,050 37,481 25,596
------- ------- -------- ------- ------- -------
Outstanding units, end of year 84,706 70,801 50,400 46,308 41,050 37,481
======= ======= ======== ======= ======= =======
Variable Universal Life - 100:
Deposits 63,648 84,402 38,781 34,949 40,129 38,918
Withdrawals (30,779) (26,455) (8,471) (16,792) (15,741) (8,793)
Outstanding units, beginning of year 113,583 55,636 25,326 68,790 44,402 14,277
------- ------- -------- ------- ------- -------
Outstanding units, end of year 146,452 113,583 55,636 86,947 68,790 44,402
======= ======= ======== ======= ======= =======
(continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
years ended December 31, 1999, and 1998:
<CAPTION>
BOND INDEX MANAGED EQUITY
FUND DIVISION FUND DIVISION
------------------- -------------------
1999 1998 1999 1998
------- ---- ------ ----
<S> <C> <C> <C> <C>
Variable Universal Life - 98:<F*>
Deposits 65,154 558 23,377 727
Withdrawals (23,294) (5) (2,443) (13)
Outstanding units, beginning of year 553 0 714 0
------- --- ------ ---
Outstanding units, end of year 42,413 553 21,648 714
======= === ====== ===
Joint and Survivor Variable Universal Life - 98:<F*>
Deposits 6,676 88 3,213 0
Withdrawals (270) (2) (169) 0
Outstanding units, beginning of year 86 0 0 0
------- --- ------ ---
Outstanding units, end of year 6,492 86 3,044 0
======= === ====== ===
<FN>
<F*>The Variable Universal Life 98 and Joint And Survivor Variable Universal Life products
were introduced in 1998, and the first deposits were received on September 29, 1998 and
October 14, 1998, respectively. (continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY, (CONTINUED)
The following is a summary of the accumulation unit activity for the
years ended December 31, 1999, 1998, and 1997:
<CAPTION>
ASSET ALLOCATION INTERNATIONAL INDEX
FUND DIVISION FUND DIVISION<F*>
---------------------------------- -----------------------------------
1999 1998 1997 1999 1998 1997
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Variable Universal Life - 95:
Deposits 36,270 44,015 58,255 24,166 35,296 56,157
Withdrawals (37,511) (32,243) (49,785) (30,239) (36,243) (45,488)
Outstanding units, beginning of year 294,610 282,838 274,368 174,279 175,226 164,557
------- ------- ------- ------- ------- -------
Outstanding units, end of year 293,369 294,610 282,838 168,206 174,279 175,226
======= ======= ======= ======= ======= =======
Variable General Select Plus:
Deposits 62,080 29,160 21,682 15,664 42,140 35,709
Withdrawals (56,513) (24,120) (10,372) (11,959) (34,648) (10,776)
Outstanding units, beginning of year 77,547 72,507 61,197 77,550 70,058 45,125
------- ------- ------- ------- ------- -------
Outstanding units, end of year 83,114 77,547 72,507 81,255 77,550 70,058
======= ======= ======= ======= ======= =======
Variable Universal Life - 100:
Deposits 58,534 49,412 44,721 43,793 54,490 56,601
Withdrawals (25,963) (16,133) (11,617) (41,530) (20,835) (15,926)
Outstanding units, beginning of year 88,353 55,074 21,970 117,078 83,423 42,748
------- ------- ------- ------- ------- -------
Outstanding units, end of year 120,924 88,353 55,074 119,341 117,078 83,423
======= ======= ======= ======= ======= =======
General American Life Insurance Company
seed money:
Deposits 0 0 0
Withdrawals 0 0 0
Outstanding units, beginning of year 200,000 200,000 200,000
------- ------- -------
Outstanding units, end of year 200,000 200,000 200,000
======= ======= =======
<FN>
<F*>This fund was formerly known as the International Equity Fund.
(continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
years ended December 31, 1999, and 1998:
<CAPTION>
ASSET ALLOCATION INTERNATIONAL INDEX
FUND DIVISION FUND DIVISION<F*>
--------------------- -------------------
1999 1998 1999 1998
------ ----- ------ ----
<S> <C> <C> <C> <C>
Variable Universal Life - 98:<F**>
Deposits 77,838 1,037 19,887 710
Withdrawals (1,877) (14) (2,009) (17)
Outstanding units, beginning of year 1,023 0 693 0
------ ----- ------ ---
Outstanding units, end of year 76,984 1,023 18,571 693
====== ===== ====== ===
Joint and Survivor Variable Universal Life - 98:<F**>
Deposits 10,560 0 4,680 83
Withdrawals (432) 0 (245) (2)
Outstanding units, beginning of year 0 0 81 0
------ ----- ------ ---
Outstanding units, end of year 10,128 0 4,516 81
====== ===== ====== ===
<FN>
<F*>This fund was formerly known as the International Equity Fund.
<F**>The Variable Universal Life 98 and Joint And Survivor Variable Universal Life products
were introduced in 1998, and the first deposits were received on September 29, 1998 and
October 14, 1998, respectively. (continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY, (CONTINUED)
The following is a summary of the accumulation unit activity for the
years ended December 31, 1999, 1998, and 1997 for the Mid-Cap Equity
Fund Division and the year ended December 31, 1999, 1998 and period
ended December 31, 1997 for the Small-Cap Equity Fund Division.
<CAPTION>
MID-CAP EQUITY SMALL-CAP EQUITY
FUND DIVISION<F*> FUND DIVISION
----------------------------------- ----------------------------------
1999 1998 1997 1999 1998 1997<F**>
------- ------- ------- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
Variable Universal Life - 95:
Deposits 23,187 33,622 50,013 8,482 19,324 35,503
Withdrawals (35,782) (32,360) (61,032) (7,148) (5,547) (326)
Outstanding units, beginning of period 175,383 174,121 185,140 48,954 35,177 0
------- ------- ------- ------ ------ ------
Outstanding units, end of period 162,788 175,383 174,121 50,288 48,954 35,177
======= ======= ======= ====== ====== ======
Variable General Select Plus:
Deposits 23,177 58,976 43,764 45,417 65,121 30,298
Withdrawals (31,804) (28,754) (14,054) (23,263) (23,984) (271)
Outstanding units, beginning of period 108,141 77,919 48,209 71,164 30,027 0
------- ------- ------- ------ ------ ------
Outstanding units, end of period 99,514 108,141 77,919 93,318 71,164 30,027
======= ======= ======= ====== ====== ======
Variable Universal Life - 100:
Deposits 46,286 56,900 36,664 43,499 70,656 23,110
Withdrawals (40,979) (22,387) (15,674) (38,432) (10,421) (540)
Outstanding units, beginning of period 87,742 53,229 32,239 82,805 22,570 0
------- ------- ------- ------ ------ ------
Outstanding units, end of period 93,049 87,742 53,229 87,872 82,805 22,570
======= ======= ======= ====== ====== ======
<FN>
<F*>This fund was formerly known as the Special Equity Fund.
<F**>The Small-Cap Equity Fund began operations on May 1, 1997. (continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
years ended December 31, 1999, and 1998:
<CAPTION>
MID-CAP EQUITY SMALL-CAP EQUITY
FUND DIVISION<F*> FUND DIVISION
------------------- -------------------
1999 1998 1999 1998
------ ---- ------ ----
<S> <C> <C> <C> <C>
Variable Universal Life - 98:<F**>
Deposits 27,940 595 30,720 644
Withdrawals (2,928) (23) (4,697) (25)
Outstanding units, beginning of year 572 0 619 0
------ ---- ------ ---
Outstanding units, end of year 25,584 572 26,642 619
====== ==== ====== ===
Joint and Survivor Variable Universal Life - 98:<F**>
Deposits 4,042 168 6,826 168
Withdrawals (574) (5) (1,009) (5)
Outstanding units, beginning of year 163 0 163 0
------ ---- ------ ---
Outstanding units, end of year 3,631 163 5,980 163
====== ==== ====== ===
<FN>
<F*>This fund was formerly known as the Special Equity Fund.
<F**> The Variable Universal Life 98 and Joint And Survivor Variable Universal Life products were introduced in 1998,
and the first deposits were received on September 29, 1998 and October 14, 1998, respectively. (continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY, (CONTINUED)
The following is a summary of the accumulation unit activity for the
years ended December 31, 1999, 1998, and 1997:
<CAPTION>
EQUITY INCOME GROWTH
FUND DIVISION FUND DIVISION
------------------------------------ ------------------------------------
1999 1998 1997 1999 1998 1997
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Variable Universal Life - 95:
Deposits 54,849 59,416 73,369 58,832 69,876 110,237
Withdrawals (72,847) (47,519) (68,932) (78,887) (72,411) (69,361)
Outstanding units, beginning of year 304,241 292,344 287,907 405,378 407,913 367,037
------- ------- ------- ------- ------- -------
Outstanding units, end of year 286,243 304,241 292,344 385,323 405,378 407,913
======= ======= ======= ======= ======= =======
Variable General Select Plus:
Deposits 97,662 99,382 107,293 158,244 99,249 151,169
Withdrawals (67,788) (42,509) (41,943) (93,901) (40,684) (56,898)
Outstanding units, beginning of year 283,014 226,141 160,791 386,583 328,018 233,747
------- ------- ------- ------- ------- -------
Outstanding units, end of year 312,888 283,014 226,141 450,926 386,583 328,018
======= ======= ======= ======= ======= =======
Variable Universal Life - 100:
Deposits 99,022 179,653 161,018 158,445 226,944 227,448
Withdrawals (79,710) (166,343) (42,604) (109,918) (114,919) (64,065)
Outstanding units, beginning of year 295,584 282,274 163,860 474,406 362,381 198,998
------- ------- ------- ------- ------- -------
Outstanding units, end of year 314,896 295,584 282,274 522,933 474,406 362,381
======= ======= ======= ======= ======= =======
(continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
year ended December 31, 1999, and 1998:
<CAPTION>
EQUITY INCOME GROWTH
FUND DIVISION FUND DIVISION
--------------------- ---------------------
1999 1998 1999 1998
------- ----- ------- -----
<S> <C> <C> <C> <C>
Variable Universal Life - 98:<F*>
Deposits 113,215 2,270 250,110 3,901
Withdrawals (8,208) (115) (21,492) (108)
Outstanding units, beginning of year 2,155 0 3,793 0
------- ----- ------- -----
Outstanding units, end of year 107,162 2,155 232,411 3,793
======= ===== ======= =====
Joint and Survivor Variable Universal Life - 98:<F*>
Deposits 16,121 247 26,076 79
Withdrawals (856) (7) (1,917) (2)
Outstanding units, beginning of year 240 0 77 0
------- ----- ------- -----
Outstanding units, end of year 15,505 240 24,236 77
======= ===== ======= =====
<FN>
<F*>The Variable Universal Life 98 and Joint And Survivor Variable Universal Life products
were introduced in 1998, and the first deposits were received on September 29, 1998 and
October 14, 1998, respectively. (continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY, (CONTINUED)
The following is a summary of the accumulation unit activity for the
years ended December 31, 1999, 1998, and 1997:
<CAPTION>
OVERSEAS ASSET MANAGER
FUND DIVISION FUND DIVISION
----------------------------------- --------------------------------
1999 1998 1997 1999 1998 1997
------- ------- ------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Variable Universal Life-95:
Deposits 32,130 46,762 73,211 6,173 7,584 1,053
Withdrawals (38,877) (41,684) (33,419) (4,532) (605) (364)
Outstanding units, beginning of year 247,641 242,563 202,771 9,111 2,132 1,443
------- ------- ------- ------ ------ ------
Outstanding units, end of year 240,894 247,641 242,563 10,752 9,111 2,132
======= ======= ======= ====== ====== ======
Variable General Select Plus:
Deposits 50,014 60,426 78,015 14,236 7,255 4,792
Withdrawals (24,381) (48,932) (24,003) (4,489) (423) (1,323)
Outstanding units, beginning of year 180,202 168,708 114,696 14,512 7,680 4,211
------- ------- ------- ------ ------ ------
Outstanding units, end of year 205,835 180,202 168,708 24,259 14,512 7,680
======= ======= ======= ====== ====== ======
Variable Universal Life-100:
Deposits 47,585 62,350 61,939 34,209 30,521 19,775
Withdrawals (52,739) (27,368) (16,003) (21,189) (9,795) (6,893)
Outstanding units, beginning of year 135,925 100,943 55,007 50,801 30,075 17,193
------- ------- ------- ------ ------ ------
Outstanding units, end of year 130,771 135,925 100,943 63,821 50,801 30,075
======= ======= ======= ====== ====== ======
(continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
year ended December 31, 1999, and 1998:
<CAPTION>
OVERSEAS ASSET MANAGER
FUND DIVISION FUND DIVISION
------------------- -------------------
1999 1998 1999 1998
------ ---- ------ ----
<S> <C> <C> <C> <C>
Variable Universal Life - 98:<F*>
Deposits 39,237 601 53,511 697
Withdrawals (3,669) (18) (4,287) (62)
Outstanding units, beginning of year 583 0 635 0
------ --- ------ ---
Outstanding units, end of year 36,151 583 49,859 635
====== === ====== ===
Joint and Survivor Variable Universal Life - 98:<F*>
Deposits 3,258 168 431 0
Withdrawals (466) (5) (302) 0
Outstanding units, beginning of year 163 0 0 0
------ --- ------ ---
Outstanding units, end of year 2,955 163 129 0
====== === ====== ===
<FN>
<F*>The Variable Universal Life 98 and Joint And Survivor Variable Universal Life products
were introduced in 1998, and the first deposits were received on September 29, 1998 and
October 14, 1998, respectively. (continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY, (CONTINUED)
The following is a summary of the accumulation unit activity for the
years ended December 31, 1999, 1998,and 1997:
<CAPTION>
HIGH INCOME WORLDWIDE HARD ASSET
FUND DIVISION FUND DIVISION<F*>
----------------------------------- --------------------------------
1999 1998 1997 1999 1998 1997
------- ------- ------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Variable Universal Life-95:
Deposits 2,853 6,498 8,197 865 3,234 5,256
Withdrawals (11,513) (2,233) (10,956) (1,622) (3,278) (857)
Outstanding units, beginning of period 22,837 18,572 21,331 10,282 10,326 5,927
------- ------- ------- ------ ------ ------
Outstanding units, end of period 14,177 22,837 18,572 9,525 10,282 10,326
======= ======= ======= ====== ====== ======
Variable General Select Plus:
Deposits 21,266 28,629 36,763 4,811 513 1,994
Withdrawals (47,125) (5,891) (8,788) (312) (937) (3,232)
Outstanding units, beginning of year 87,370 64,632 36,657 2,468 2,892 4,130
------- ------- ------- ------ ------ ------
Outstanding units, end of year 61,511 87,370 64,632 6,967 2,468 2,892
======= ======= ======= ====== ====== ======
Variable Universal Life-100:
Deposits 143,496 57,671 39,145 7,343 8,405 7,159
Withdrawals (64,124) (17,259) (9,470) (6,724) (3,275) (2,531)
Outstanding units, beginning of year 109,650 69,238 39,563 15,703 10,573 5,945
------- ------- ------- ------ ------ ------
Outstanding units, end of year 189,022 109,650 69,238 16,322 15,703 10,573
======= ======= ======= ====== ====== ======
<CAPTION>
WORLDWIDE
EMERGING MARKETS
FUND DIVISION<F**>
--------------------
1999
------
<S> <C>
Variable Universal Life-95:
Deposits 4,159
Withdrawals (1,480)
Outstanding units, beginning of period 0
------
Outstanding units, end of period 2,679
======
Variable General Select Plus:
Deposits 9,565
Withdrawals (62)
Outstanding units, beginning of year 0
------
Outstanding units, end of year 9,503
======
Variable Universal Life-100:
Deposits 11,327
Withdrawals (9,704)
Outstanding units, beginning of year 0
------
Outstanding units, end of year 1,623
======
<FN>
<F*>This fund was formerly known as the Gold & Natural Resources Fund.
<F**>The Worldwide Emerging Markets Fund began operations on September 15, 1998. (continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
year ended December 31, 1999, and 1998:
<CAPTION>
WORLDWIDE
HIGH INCOME WORLDWIDE HARD ASSETS EMERGING MARKETS
FUND DIVISION FUND DIVISION<F**> FUND DIVISION
------------------ --------------------- -------------------
1999 1998 1999 1998 1999 1998<F***>
------ ------ ------ ------- ------ ----------
<S> <C> <C> <C> <C> <C> <C>
Variable Universal Life - 98:<F*>
Deposits 44,520 1,163 950 11 1,992 159
Withdrawals (3,941) (29) (124) 0 (453) (9)
Outstanding units, beginning of year 1,134 0 11 0 150 0
------ ----- ---- -- ----- ---
Outstanding units, end of year 41,713 1,134 837 11 1,689 150
====== ===== ==== == ===== ===
Joint and Survivor Variable Universal Life - 98:<F*>
Deposits 6,839 175 345 0
Withdrawals (1,080) (5) (28) 0
Outstanding units, beginning of year 170 0 0 0
------ ----- ----- ---
Outstanding units, end of year 5,929 170 317 0
====== ===== ===== ===
<FN>
<F*>The Variable Universal Life 98 and Joint And Survivor Variable Universal Life products were introduced in 1998,
and the first deposits were received on September 29, 1998 and October 14, 1998, respectively.
<F**>This fund was formerly known as the Gold & Natural Resources Fund.
<F***> The Worldwide Emerging Markets Fund began operations on September 15, 1998. (continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
period ended December 31, 1999, 1998 and 1997:
<CAPTION>
MULTI-STYLE EQUITY CORE BOND
FUND DIVISION<F*> FUND DIVISION<F*>
----------------------------------- -----------------------------------
1999 1998 1997 1999 1998 1997
------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Variable Universal Life - 95:<F**>
Deposits 25,719 15,537 0 2,587 4,116 0
Withdrawals (2,365) (679) 0 (335) (46) 0
Outstanding units, beginning of period 14,858 0 0 4,070 0 0
------- ------- ------- ------- ------- ------
Outstanding units, end of period 38,212 14,858 0 6,322 4,070 0
======= ======= ======= ======= ======= ======
Variable General Select Plus:<F***>
Deposits 167,069 456,763 47,597 310,229 450,004 21,805
Withdrawals (72,422) (30,453) (667) (60,786) (73,816) (391)
Outstanding units, beginning of period 473,240 46,930 0 397,602 21,414 0
------- ------- ------- ------- ------- ------
Outstanding units, end of period 567,887 473,240 46,930 647,045 397,602 21,414
======= ======= ======= ======= ======= ======
Variable Universal Life - 100:<F****>
Deposits 56,809 8,637 0 39,861 807 0
Withdrawals (22,765) (1,360) 0 (32,644) (123) 0
Outstanding units, beginning of year 7,277 0 0 684 0 0
------- ------- ------- ------- ------- ------
Outstanding units, end of year 41,321 7,277 0 7,901 684 0
======= ======= ======= ======= ======= ======
Russell Variable Universal Life: <F*****>
Deposits 9,282 81,464 153,054 3,615 91,724 86,149
Withdrawals (8,686) (9,164) (1,563) (10,478) (10,534) (2,024)
Outstanding units, beginning of period 223,791 151,491 0 165,315 84,125 0
------- ------- ------- ------- ------- ------
Outstanding units, end of period 224,387 223,791 151,491 158,452 165,315 84,125
======= ======= ======= ======= ======= ======
<FN>
<F*>The Multi-style Equity Fund and Core Bond Fund began operations on January 2, 1997.
<F**>The Variable Universal Life - 95 product was introduced to the Frank Russell funds on April 30, 1998, and the first deposit
was received on May 14, 1998.
<F***>The Variable General Select Plus product was introduced in 1997, and the first deposit was received on June 26, 1997.
<F****>The Variable Universal Life - 100 product was introduced to the Frank Russell funds on April 30, 1998, and the first deposit
was received on May 22, 1998.
<F*****>The Russell Variable Universal Life product was introduced in 1997, and the first deposit was received on June 6, 1997.
(continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
year ended December 31, 1999, and 1998:
<CAPTION>
MULTI-STYLE EQUITY CORE BOND
FUND DIVISION<F*> FUND DIVISION<F*>
--------------------- ---------------------
1999 1998 1999 1998
------ ----- ------ -----
<S> <C> <C> <C> <C>
Variable Universal Life - 98:<F**>
Deposits 59,760 4,052 36,182 788
Withdrawals (8,199) (101) (9,781) (9)
Outstanding units, beginning of year 3,951 0 779 0
------ ----- ------ ---
Outstanding units, end of year 55,512 3,951 27,180 779
====== ===== ====== ===
Joint and Survivor Variable Universal Life - 98:<F**>
Deposits 7,599 410 6,321 169
Withdrawals (838) (12) (255) (5)
Outstanding units, beginning of year 398 0 164 0
------ ----- ------ ---
Outstanding units, end of year 7,159 398 6,230 164
====== ===== ====== ===
<FN>
<F*>The Multi-style Equity Fund and Core Bond Fund began operations on January 2, 1997.
<F**>The Variable Universal Life 98 and Joint And Survivor Variable Universal Life products were introduced in 1998,
and the first deposits were received on September 29, 1998 and October 14, 1998, respectively. (continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
period ended December 31, 1999, 1998 and 1997:
<CAPTION>
AGGRESSIVE EQUITY NON-US
FUND DIVISION<F*> FUND DIVISION<F*>
---------------------------------- ---------------------------------
1999 1998 1997 1999 1998 1997
------- ------- ------ ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Variable Universal Life - 95:<F**>
Deposits 6,833 14,484 0 7,044 10,028 0
Withdrawals (1,715) (592) 0 (1,673) (208) 0
Outstanding units, beginning of period 13,892 0 0 9,820 0 0
------- ------- ------ ------- ------- ------
Outstanding units, end of period 19,010 13,892 0 15,191 9,820 0
======= ======= ====== ======= ======= ======
Variable General Select Plus:<F***>
Deposits 62,730 192,091 25,379 33,941 188,887 28,863
Withdrawals (59,340) (43,602) (279) (26,047) (29,735) (285)
Outstanding units, beginning of period 173,589 25,100 0 187,730 28,578 0
------- ------- ------ ------- ------- ------
Outstanding units, end of period 176,979 173,589 25,100 195,624 187,730 28,578
======= ======= ====== ======= ======= ======
Variable Universal Life - 100:<F****>
Deposits 16,636 3,083 0 21,192 1,576 0
Withdrawals (4,051) (414) 0 (12,838) (127) 0
Outstanding units, beginning of year 2,669 0 0 1,449 0 0
------- ------- ------ ------- ------- ------
Outstanding units, end of year 15,254 2,669 0 9,803 1,449 0
======= ======= ====== ======= ======= ======
Russell Variable Universal Life: <F*****>
Deposits 8,286 34,380 75,650 3,570 56,596 50,101
Withdrawals (3,252) (3,034) (494) (6,141) (5,688) (1,018)
Outstanding units, beginning of period 106,502 75,156 0 99,991 49,083 0
------- ------- ------ ------- ------- ------
Outstanding units, end of period 111,536 106,502 75,156 97,420 99,991 49,083
======= ======= ====== ======= ======= ======
<FN>
<F*>The Aggressive Equity Fund and Non-US Fund began operations on January 2, 1997.
<F**>The Variable Universal Life - 95 product was introduced to the Frank Russell funds on April 30, 1998, and the first deposit
was received on May 14, 1998.
<F***>The Variable General Select Plus product was introduced in 1997, and the first deposit was received on June 26, 1997.
<F****>The Variable Universal Life - 100 product was introduced to the Frank Russell funds on April 30, 1998, and the first deposit
was received on May 22, 1998.
<F*****>The Russell Variable Universal Life product was introduced in 1997, and the first deposit was received on June 6, 1997.
(continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
year ended December 31, 1999 and 1998:
<CAPTION>
AGGRESSIVE EQUITY NON-US
FUND DIVISION<F*> FUND DIVISION<F*>
--------------------- ---------------------
1999 1998 1999 1998
------ ----- ------ -----
<S> <C> <C> <C> <C>
Variable Universal Life - 98:<F**>
Deposits 36,276 3,760 14,411 885
Withdrawals (5,039) (70) (2,475) (16)
Outstanding units, beginning of year 3,690 0 869 0
------ ----- ------ ---
Outstanding units, end of year 34,927 3,690 12,805 869
====== ===== ====== ===
Joint and Survivor Variable Universal Life - 98:<F**>
Deposits 3,172 0 2,535 165
Withdrawals (464) 0 (262) (5)
Outstanding units, beginning of year 0 0 160 0
------ ----- ------ ---
Outstanding units, end of year 2,708 0 2,433 160
====== ===== ====== ===
<FN>
<F*>The Aggressive Equity Fund and Non-US Fund began operations on January 2, 1997.
<F**>The Variable Universal Life 98 and Joint And Survivor Variable Universal Life products were introduced in 1998,
and the first deposits were received on September 29, 1998 and October 14, 1998, respectively.
(continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
year ended December 31, 1999:
<CAPTION>
INCOME & GROWTH INTERNATIONAL VALUE
FUND DIVISION<F*> FUND DIVISION<F*> FUND DIVISION<F*>
------------------- ------------------ ------------------
1999 1999 1999
------- ------- -------
<S> <C> <C> <C>
Variable Universal Life - 95:<F**>
Deposits 2,824 1,001 0
Withdrawals (24) (3) 0
Outstanding units, beginning of year 0 0 0
------- ------- -------
Outstanding units, end of year 2,800 998 0
======= ======= =======
Variable General Select Plus:<F**>
Deposits 1,838 5,156 805
Withdrawals (21) (625) (10)
Outstanding units, beginning of year 0 0 0
------- ------- -------
Outstanding units, end of year 1,817 4,531 795
======= ======= =======
Variable Universal Life - 100:<F**>
Deposits 19,391 17,730 10,510
Withdrawals (16,959) (10,629) (10,510)
Outstanding units, beginning of year 0 0 0
------- ------- -------
Outstanding units, end of year 2,432 7,101 0
======= ======= =======
<FN>
<F*>The Income & Growth Fund, International Fund, and Value Fund began operations on September 15, 1998.
<F**>The Variable Universal Life - 95, Variable General Select Plus, and Variable Universal Life - 100 products were introduced to
the American Century funds on April 30, 1999, and the first deposits were received on July 7, 1999, May 17, 1999, and June 18,
1999, respectively.
(continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
period ended December 31, 1999 and 1998:
<CAPTION>
INCOME & GROWTH INTERNATIONAL VALUE
FUND DIVISION FUND DIVISION FUND DIVISION
-------------------- --------------------- --------------------
1999 1998<F*> 1999 1998<F*> 1999 1998<F*>
------ -------- ------ -------- ------ --------
<S> <C> <C> <C> <C> <C> <C>
Variable Universal Life - 98:<F**>
Deposits 48,580 631 24,488 92 9,149 360
Withdrawals (5,275) (16) (2,024) (7) (1,376) (3)
Outstanding units, beginning of period 615 0 85 0 357 0
------ --- ------ -- ------ ---
Outstanding units, end of period 43,920 615 22,549 85 8,130 357
====== === ====== == ====== ===
Joint and Survivor Variable Universal Life - 98:
Deposits 3,433 0 1,188 0 302 0
Withdrawals (541) 0 (114) 0 (62) 0
Outstanding units, beginning of year 0 0 0 0 0 0
------ --- ------ -- ------ ---
Outstanding units, end of year 2,892 0 1,074 0 240 0
====== === ====== == ====== ===
<FN>
<F*>The Income & Growth Fund, International Fund, and Value Fund began operations on September 15, 1998.
<F**>The Variable Universal Life 98 product was introduced in 1998, and the first deposit was received on September 29, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
year ended December 31, 1999:
<CAPTION>
BOND PORTFOLIO SMALL COMPANY
FUND DIVISION<F*> FUND DIVISION<F*>
-------------------- --------------------
1999 1999
----- ------
<S> <C> <C>
Variable Universal Life-95:<F**>
Deposits 896 4,033
Withdrawals (543) (1,453)
Outstanding units, beginning of year 0 0
---- ------
Outstanding units, end of year 353 2,580
==== ======
Variable General Select Plus:<F**>
Deposits 932 10,153
Withdrawals (6) (62)
Outstanding units, beginning of year 0 0
---- ------
Outstanding units, end of year 926 10,091
==== ======
Variable Universal Life-100:<F**>
Deposits 340 3,598
Withdrawals (9) (16)
Outstanding units, beginning of year 0 0
---- ------
Outstanding units, end of year 331 3,582
==== ======
<FN>
<F*>The Bond Portfolio Fund and Small Company Fund began operations on September 15, 1998.
<F**>The Variable Universal Life - 95, Variable General Select Plus, and Variable Universal Life - 100 products were introduced to
the J. P. Morgan funds on April 30, 1999, and the first deposits were received on July 1, 1999, May 17, 1999, and May 19, 1999,
respectively.
(continued)
<PAGE>
<PAGE>
NOTE 6 - ACCUMULATION UNIT ACTIVITY (CONTINUED)
The following is a summary of the accumulation unit activity for the
years ended December 31, 1999 and 1998:
<CAPTION>
BOND PORTFOLIO SMALL COMPANY
FUND DIVISION FUND DIVISION
--------------------- ------------------------
1999 1998<F*> 1999 1998<F*>
------ -------- ------ --------
<S> <C> <C> <C> <C>
Variable Universal Life - 98:<F**>
Deposits 12,486 330 22,053 292
Withdrawals (680) (2) (3,275) (19)
Outstanding units, beginning of period 328 0 273 0
------ --- ------ ---
Outstanding units, end of period 12,134 328 19,051 273
====== === ====== ===
Joint and Survivor Variable Universal Life - 98:
Deposits 528 0 3,035 0
Withdrawals (107) 0 (326) 0
Outstanding units, beginning of year 0 0 0 0
------ --- ------ ---
Outstanding units, end of year 421 0 2,709 0
====== === ====== ===
<FN>
<F*>The Bond Portfolio Fund and Small Company Fund began operations on September 15, 1998.
<F**>The Variable Universal Life 98 product was introduced in 1998, and the first deposit was received on September 29, 1998.
(continued)
</TABLE>
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT
Deposits into the Separate Account are used to purchase shares in the
Capital Company, Variable Insurance Products Funds, Variable Insurance
Products Fund II, Van Eck Worldwide Insurance Trust, Russell Insurance
Funds, American Century Variable Portfolios, or J.P. Morgan Series Trust
II. Net deposits represent the amounts available for investment in such
shares after deduction of sales charges, premium taxes, administrative
costs, insurance, underwriting and acquisition expense, cost of
insurance, and cost of optional benefits by rider. Realized and
unrealized capital gains (losses) have been excluded from net deposits
into the Separate Account because they have been included in increase
(decrease) in net assets resulting from operations in the Statements of
Changes in Net Assets.
Variable Universal Life - 95:
- -----------------------------
<TABLE>
<CAPTION>
S & P 500 INDEX MONEY MARKET
FUND DIVISION FUND DIVISION
---------------------------------------- ---------------------------------------
1999 1998 1997 1999 1998 1997
---------- ----------- ----------- --------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $ 185,198 $1,456,349 $1,099,723 $ 70,185 $ 813,595 $ 1,794,475
Transfers between fund divisions and
General American 42,863 150,022 931,860 248,848 (578,617) (1,471,521)
Surrenders and withdrawals (254,901) (471,926) (144,131) (1,251) (1,674) (20,934)
--------- ---------- ---------- -------- --------- -----------
Total gross deposits, transfers, and
surrenders between fund divisions (26,840) 1,134,445 1,887,452 317,782 233,304 302,020
--------- ---------- ---------- -------- --------- -----------
Deductions:
Premium load charges 87,826 115,481 84,994 18,195 63,307 371,169
Cost of insurance and administrative
expenses 64,409 702,222 481,051 6,770 217,403 135,973
--------- ---------- ---------- -------- --------- -----------
Total deductions 152,235 817,703 566,045 24,965 280,710 507,142
--------- ---------- ---------- -------- --------- -----------
Net deposits into (withdrawals from)
Separate Account $(179,075) $ 316,742 $1,321,407 $292,817 $ (47,406) $ (205,122)
========= ========== ========== ======== ========= ===========
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 95:
- -----------------------------
<CAPTION>
BOND INDEX MANAGED EQUITY
FUND DIVISION FUND DIVISION
--------------------------------------- -------------------------------------
1999 1998 1997 1999 1998 1997
--------- --------- ---------- -------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $ 61,294 $443,018 $ 312,433 $62,997 $364,076 $ 359,432
Transfers between fund divisions and
General American (33,145) 39,732 504,481 5,215 1,644 53,604
Surrenders and withdrawals (762) (48,407) (161,856) (8,463) (48,475) (162,045)
-------- -------- --------- ------- -------- ---------
Total gross deposits, transfers, and
surrenders between fund divisions 27,387 434,343 655,058 59,749 317,245 250,991
-------- -------- --------- ------- -------- ---------
Deductions:
Premium load charges 20,736 33,733 24,355 25,178 28,257 27,564
Cost of insurance and administrative
expenses 9,997 124,148 111,704 21,239 197,695 191,337
-------- -------- --------- ------- -------- ---------
Total deductions 30,733 157,881 136,059 46,417 225,952 218,901
-------- -------- --------- ------- -------- ---------
Net deposits into (withdrawals from)
Separate Account $ (3,346) $276,462 $ 518,999 $13,332 $ 91,293 $ 32,090
======== ======== ========= ======= ======== =========
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 95:
- -----------------------------
<CAPTION>
ASSET ALLOCATION INTERNATIONAL INDEX
FUND DIVISION FUND DIVISION<F*>
---------------------------------------- -------------------------------------
1999 1998 1997 1999 1998 1997
---------- ----------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $ 185,694 $1,409,425 $1,571,785 $ 92,422 $ 577,527 $ 674,809
Transfers between fund divisions and
General American (110,411) (240,301) (542,327) (38,915) (287,016) (244,489)
Surrenders and withdrawals (5,907) (237,885) (261,445) (24,993) (53,267) (27,295)
--------- ---------- ---------- -------- ---------- ---------
Total gross deposits, transfers, and
surrenders between fund divisions 69,376 931,239 768,013 28,514 237,244 403,025
--------- ---------- ---------- -------- ---------- ---------
Deductions:
Premium load charges 71,154 101,603 115,555 32,153 45,221 53,326
Cost of insurance and administrative
expenses 38,489 453,887 472,278 18,992 203,189 206,172
--------- ---------- ---------- -------- ---------- ---------
Total deductions 109,643 555,490 587,833 51,145 248,410 259,498
--------- ---------- ---------- -------- ---------- ---------
Net deposits into (withdrawals from)
Separate Account $ (40,267) $ 375,749 $ 180,180 $(22,631) $ (11,166) $ 143,527
========= ========== ========== ======== ========= =========
<FN>
<F*>This fund was formerly known as the International Equity Fund. (continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 95:
- -----------------------------
<CAPTION>
MID-CAP EQUITY SMALL-CAP EQUITY
FUND DIVISION<F*> FUND DIVISION
--------------------------------------- ------------------------------------
1999 1998 1997 1999 1998 1997<F**>
--------- ---------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $ 73,750 $ 535,140 $ 731,205 $ 14,728 $ 92,984 $ 81,175
Transfers between fund divisions and
General American (11,030) (161,251) (545,250) (24,848) 123,494 386,732
Surrenders and withdrawals (23,853) (60,979) (30,828) 0 (13,142) 0
-------- --------- --------- -------- -------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 38,867 312,910 155,127 (10,120) 203,336 467,907
-------- --------- --------- -------- -------- --------
Deductions:
Premium load charges 28,879 40,775 55,258 4,367 7,292 6,341
Cost of insurance and administrative
expenses 17,499 229,610 226,846 1,828 23,300 4,229
-------- --------- --------- -------- -------- --------
Total deductions 46,378 270,385 282,104 6,195 30,592 10,570
-------- --------- --------- -------- -------- --------
Net deposits into (withdrawals from)
Separate Account $ (7,511) $ 42,525 $(126,977) $(16,315) $172,744 $457,337
======== ========= ========= ======== ======== ========
<FN>
<F*>This fund was formerly known as the Special Equity Fund.
<F**>The Small-Cap Equity Fund began operations on May 1, 1997. (continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 95:
- -----------------------------
<CAPTION>
EQUITY-INCOME GROWTH
FUND DIVISION FUND DIVISION
---------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
---------- ----------- ----------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $ 198,741 $1,154,929 $1,258,958 $ 241,466 $1,514,732 $1,700,056
Transfers between fund divisions and
General American (227,879) (50,446) (346,404) (157,307) (487,503) 124,428
Surrenders and withdrawals (163,472) (247,987) (243,196) (316,618) (324,276) (260,054)
--------- ---------- ---------- --------- ---------- ----------
Total gross deposits, transfers, and
surrenders between fund divisions (192,610) 856,496 669,358 (232,459) 702,953 1,564,430
--------- ---------- ---------- --------- ---------- ----------
Deductions:
Premium load charges 81,278 91,178 98,808 114,323 118,852 134,071
Cost of insurance and administrative
expenses 37,192 484,812 470,011 72,257 664,659 606,328
--------- ---------- ---------- --------- ---------- ----------
Total deductions 118,470 575,990 568,819 186,580 783,511 740,399
--------- ---------- ---------- --------- ---------- ----------
Net deposits into (withdrawals from)
Separate Account $(311,080) $ 280,506 $ 100,539 $(419,039) $ (80,558) $ 824,031
========= ========== ========== ========= ========== ==========
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 95:
- -----------------------------
<CAPTION>
OVERSEAS ASSET MANAGER
FUND DIVISION FUND DIVISION
---------------------------------------- -----------------------------------
1999 1998 1997 1999 1998 1997
--------- ---------- ----------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $105,041 $ 792,155 $ 927,173 $ 9,248 $ 28,935 $ 9,236
Transfers between fund divisions and
General American (65,913) (249,954) 262,454 (1,899) 85,499 3,098
Surrenders and withdrawals (1,091) (84,661) (121,639) 0 (1,077) 0
-------- --------- ---------- ------- -------- -------
Total gross deposits, transfers, and
surrenders between fund divisions 38,037 457,540 1,067,988 7,349 113,357 12,334
-------- --------- ---------- ------- -------- -------
Deductions:
Premium load charges 47,051 60,018 71,458 3,698 2,699 706
Cost of insurance and administrative
expenses 28,789 304,803 302,840 1,120 8,127 1,874
-------- --------- ---------- ------- -------- -------
Total deductions 75,840 364,821 374,298 4,818 10,826 2,580
-------- --------- ---------- ------- -------- -------
Net deposits into (withdrawals from)
Separate Account $(37,803) $ 92,719 $ 693,690 $ 2,531 $102,531 $ 9,754
======== ========= ========== ======= ======== =======
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 95:
- -----------------------------
<CAPTION>
HIGH INCOME WORLDWIDE HARD ASSETS
FUND DIVISION FUND DIVISION<F*>
-------------------------------------- ----------------------------------
1999 1998 1997 1999 1998 1997
--------- -------- --------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $ 5,222 $52,060 $ 61,425 $ 12 $ 21,677 $29,642
Transfers between fund divisions and
General American (20,051) 34,487 (76,243) (1,088) (21,580) 31,281
Surrenders and withdrawals 0 (29) 0 0 (10) 0
-------- ------- -------- ------- -------- -------
Total gross deposits, transfers, and
surrenders between fund divisions (14,829) 86,518 (14,818) (1,076) 87 60,923
-------- ------- -------- ------- -------- -------
Deductions:
Premium load charges 2,499 4,139 4,910 310 1,790 2,223
Cost of insurance and administrative
expenses 1,345 22,068 19,821 287 3,541 5,330
-------- ------- -------- ------- -------- -------
Total deductions 3,844 26,207 24,731 597 5,331 7,553
-------- ------- -------- ------- -------- -------
Net deposits into (withdrawals from)
Separate Account $(18,673) $60,311 $(39,549) $(1,673) $ (5,244) $53,370
======== ======= ======== ======= ======== =======
<FN>
<F*>This fund was formerly known as the Gold & Natural Resources Fund. (continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 95:
- -----------------------------
<CAPTION>
WORLDWIDE
EMERGING MARKETS MULTI-STYLE EQUITY CORE BOND
FUND DIVISION FUND DIVISION FUND DIVISION
---------------- --------------------- --------------------
1999<F**> 1999 1998<F*> 1999 1998<F*>
--------- ------- -------- ------ --------
<S> <C> <C> <C> <C> <C>
Total gross deposits $ 632 $11,094 $ 11,160 $1,310 $ 558
Transfers between fund divisions and
General American 26,701 0 129,908 0 42,124
Surrenders and withdrawals (20,109) 0 (1,571) 0 0
-------- ------- -------- ------ -------
Total gross deposits, transfers, and
surrenders between fund divisions 7,224 11,094 139,497 1,310 42,682
-------- ------- -------- ------ -------
Deductions:
Premium load charges 22 3,558 1,059 314 33
Cost of insurance and administrative expenses 271 1,703 2,418 261 479
-------- ------- -------- ------ -------
Total deductions 293 5,261 3,477 575 512
-------- ------- -------- ------ -------
Net deposits into Separate Account $ 6,931 $ 5,833 $136,020 $ 735 $42,170
======== ======= ======== ====== =======
<FN>
<F*>The Variable Universal Life - 95 product became available to these funds on April 30, 1998. (continued)
<F**>The Variable Universal Life - 95 product became available to this fund on April 30, 1999.
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 95:
- -----------------------------
<CAPTION>
AGGRESSIVE EQUITY NON-US INCOME & GROWTH
FUND DIVISION FUND DIVISION FUND DIVISION
--------------------- -------------------- ---------------
1999 1998<F*> 1999 1998<F*> 1999<F**>
------ --------- ------ -------- ---------
<S> <C> <C> <C> <C> <C>
Total gross deposits $5,123 $ 3,900 $8,286 $ 5,027 $ 350
Transfers between fund divisions and
General American 0 111,676 0 81,549 4,916
Surrenders and withdrawals 0 (721) 0 0 0
------ -------- ------ ------- ------
Total gross deposits, transfers, and
surrenders between fund divisions 5,123 114,855 8,286 86,576 5,266
------ -------- ------ ------- ------
Deductions:
Premium load charges 1,837 512 1,307 536 45
Cost of insurance and administrative expenses 1,058 2,054 596 1,957 93
------ -------- ------ ------- ------
Total deductions 2,895 2,566 1,903 2,493 138
------ -------- ------ ------- ------
Net deposits into Separate Account $2,228 $112,289 $6,383 $84,083 $5,128
====== ======== ====== ======= ======
<FN>
<F*>The Variable Universal Life - 95 product became available to these funds on April 30, 1998.
<F**>The Variable Universal Life - 95 product became available to this fund on April 30, 1999.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 95:
- -----------------------------
<CAPTION>
SMALL COMPANY
INTERNATIONAL BOND PORTFOLIO PORTFOLIO
FUND DIVISION FUND DIVISION FUND DIVISION
------------- ---------------- ---------------
1999<F*> 1999<F*> 1999<F*>
-------- -------- --------
<S> <C> <C> <C>
Total gross deposits $ 150 $ 18 $ 871
Transfers between fund divisions and
General American 6,911 3,471 21,899
Surrenders and withdrawals 0 0 (18,684)
------ ------ --------
Total gross deposits, transfers, and
surrenders between fund divisions 7,061 3,489 4,086
------ ------ --------
Deductions:
Premium load charges 16 0 22
Cost of insurance and administrative expenses 14 0 269
------ ------ --------
Total deductions 30 0 291
------ ------ --------
Net deposits into Separate Account $7,031 $3,489 $ 3,795
====== ====== ========
<FN>
<F*>The Variable Universal Life - 95 product became available to these funds on April 30, 1999. (continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable General Select Plus:
- -----------------------------
<CAPTION>
S & P 500 INDEX MONEY MARKET
FUND DIVISION FUND DIVISION
----------------------------------------- -----------------------------------------
1999 1998 1997 1999 1998 1997
------------ ----------- ------------ ---------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $ 9,516,696 $1,357,475 $ 1,229,167 $3,414,103 $ 16,933,833 $11,949,827
Transfers between fund divisions and
General American 60,389 5,431,739 1,639,191 27,242 (20,254,746) (6,333,824)
Surrenders and withdrawals (1,040,805) (152,414) (5,100,149) 0 (214,226) (4,042,319)
----------- ---------- ----------- ---------- ------------ -----------
Total gross deposits, transfers, and
surrenders between fund divisions 8,536,280 6,636,800 (2,231,791) 3,441,345 (3,535,139) 1,573,684
----------- ---------- ----------- ---------- ------------ -----------
Deductions:
Premium load charges 172,275 99,759 88,924 544,962 1,299,538 870,893
Cost of insurance and administrative
expenses 38,868 293,438 158,092 7,722 221,400 158,166
----------- ---------- ----------- ---------- ------------ -----------
Total deductions 211,143 393,197 247,016 552,684 1,520,938 1,029,059
----------- ---------- ----------- ---------- ------------ -----------
Net deposits into (withdrawals from)
Separate Account $ 8,325,137 $6,243,603 $(2,478,807) $2,888,661 $ (5,056,077) $ 544,625
=========== ========== =========== ========== ============ ===========
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable General Select Plus:
- -----------------------------
<CAPTION>
BOND INDEX MANAGED EQUITY
FUND DIVISION FUND DIVISION
---------------------------------------- -----------------------------------
1999 1998 1997 1999 1998 1997
----------- --------- ------------ --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $1,499,923 $146,938 $ 170,971 $686,238 $185,192 $225,421
Transfers between fund divisions and
General American (51,332) 205,041 109,381 (5,378) (477) 49,038
Surrenders and withdrawals (8,668) (27,635) (4,675,478) (1,579) (44,810) (28,866)
---------- -------- ----------- -------- -------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 1,439,923 324,344 (4,395,126) 679,281 139,905 245,593
---------- -------- ----------- -------- -------- --------
Deductions:
Premium load charges 17,017 10,813 12,639 14,026 12,749 16,872
Cost of insurance and administrative
expenses 3,507 29,846 24,838 2,662 29,578 24,211
---------- -------- ----------- -------- -------- --------
Total deductions 20,524 40,659 37,477 16,688 42,327 41,083
---------- -------- ----------- -------- -------- --------
Net deposits into (withdrawals from)
Separate Account $1,419,399 $283,685 $(4,432,603) $662,593 $ 97,578 $204,510
========== ======== =========== ======== ======== ========
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable General Select Plus:
- -----------------------------
<CAPTION>
ASSET ALLOCATION INTERNATIONAL INDEX
FUND DIVISION FUND DIVISION<F*>
--------------------------------------- -----------------------------------
1999 1998 1997 1999 1998 1997
----------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $1,791,144 $ 231,397 $225,188 $347,511 $244,143 $273,454
Transfers between fund divisions and
General American (4,461) 160,811 92,485 (30,925) (26,160) 190,371
Surrenders and withdrawals (21,717) (166,928) (48,400) (18,143) (16,419) (47,175)
---------- --------- -------- -------- -------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 1,764,966 225,280 269,273 298,443 201,564 416,650
---------- --------- -------- -------- -------- --------
Deductions:
Premium load charges 22,493 14,905 17,168 15,706 16,859 19,728
Cost of insurance and administrative
expenses 8,155 84,944 67,268 4,823 44,378 37,091
---------- --------- -------- -------- -------- --------
Total deductions 30,648 99,849 84,436 20,529 61,237 56,819
---------- --------- -------- -------- -------- --------
Net deposits into Separate Account $1,734,318 $ 125,431 $184,837 $277,914 $140,327 $359,831
========== ========= ======== ======== ======== ========
<FN>
<F*>This fund was formerly known as the International Equity Fund. (continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable General Select Plus:
- -----------------------------
<CAPTION>
MID-CAP EQUITY SMALL-CAP EQUITY
FUND DIVISION<F*> FUND DIVISION
--------------------------------------- -----------------------------------
1999 1998 1997 1999 1998 1997<F**>
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $190,421 $338,015 $376,253 $826,906 $263,673 $ 59,270
Transfers between fund divisions and
General American (54,387) 458,678 301,956 (43,257) 330,151 326,392
Surrenders and withdrawals (16,526) (25,379) (53,267) 0 0 0
-------- -------- -------- -------- -------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 119,508 771,314 624,942 783,649 593,824 385,662
-------- -------- -------- -------- -------- --------
Deductions:
Premium load charges 22,927 24,362 29,256 24,112 19,071 4,711
Cost of insurance and administrative
expenses 5,491 67,262 40,346 2,329 19,764 3,518
-------- -------- -------- -------- -------- --------
Total deductions 28,418 91,624 69,602 26,441 38,835 8,229
-------- -------- -------- -------- -------- --------
Net deposits into Separate Account $ 91,090 $679,690 $555,340 $757,208 $554,989 $377,433
======== ======== ======== ======== ======== ========
<FN>
<F*>This fund was formerly known as the Special Equity Fund.
<F**>The Small-Cap Equity Fund began operations on May 1, 1997.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable General Select Plus:
- -----------------------------
<CAPTION>
EQUITY-INCOME GROWTH
FUND DIVISION FUND DIVISION
----------------------------------------- -----------------------------------------
1999 1998 1997 1999 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $2,525,240 $1,492,223 $1,043,306 $5,816,419 $1,297,862 $1,354,928
Transfers between fund divisions and
General American (83,685) 748,006 658,129 361,192 891,558 957,813
Surrenders and withdrawals (50,381) (183,143) (148,279) (74,872) (255,377) (268,257)
---------- ---------- ---------- ---------- ---------- ----------
Total gross deposits, transfers, and
surrenders between fund divisions 2,391,174 2,057,086 1,553,156 6,102,739 1,934,043 2,044,484
---------- ---------- ---------- ---------- ---------- ----------
Deductions:
Premium load charges 80,926 82,617 78,543 108,587 84,087 101,854
Cost of insurance and administrative
expenses 21,370 216,335 163,469 34,735 250,176 206,497
---------- ---------- ---------- ---------- ---------- ----------
Total deductions 102,296 298,952 242,012 143,322 334,263 308,351
---------- ---------- ---------- ---------- ---------- ----------
Net deposits into Separate Account $2,288,878 $1,758,134 $1,311,144 $5,959,417 $1,599,780 $1,736,133
========== ========== ========== ========== ========== ==========
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable General Select Plus:
- -----------------------------
<CAPTION>
OVERSEAS ASSET MANAGER
FUND DIVISION FUND DIVISION
------------------------------------ ----------------------------------
1999 1998 1997 1999 1998 1997
--------- ---------- --------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $616,304 $ 557,583 $763,625 $869,266 $ 27,818 $53,004
Transfers between fund divisions and
General American 86,786 (150,747) 265,722 (2,696) 93,342 3,027
Surrenders and withdrawals (16,745) (55,531) (56,432) 0 0 (2,184)
-------- --------- -------- -------- -------- -------
Total gross deposits, transfers, and
surrenders between fund divisions 686,345 351,305 972,915 866,570 121,160 53,847
-------- --------- -------- -------- -------- -------
Deductions:
Premium load charges 46,057 40,327 57,640 4,522 1,654 3,927
Cost of insurance and administrative
expenses 8,922 79,907 71,616 1,055 6,502 3,625
-------- --------- -------- -------- -------- -------
Total deductions 54,979 120,234 129,256 5,577 8,156 7,552
-------- --------- -------- -------- -------- -------
Net deposits into Separate Account $631,366 $ 231,071 $843,659 $860,993 $113,004 $46,295
======== ========= ======== ======== ======== =======
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable General Select Plus:
- -----------------------------
<CAPTION>
HIGH INCOME WORLDWIDE HARD ASSETS
FUND DIVISION FUND DIVISION<F*>
----------------------------------- ---------------------------------
1999 1998 1997 1999 1998 1997
--------- --------- --------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $941,150 $241,925 $201,994 $51,609 $ 6,454 $ 22,621
Transfers between fund divisions and
General American 11,214 156,540 207,353 0 (6,638) 1,823
Surrenders and withdrawals (10,166) (16,195) (6,433) 0 (841) (36,871)
-------- -------- -------- ------- ------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 942,198 382,270 402,914 51,609 (1,025) (12,427)
-------- -------- -------- ------- ------- --------
Deductions:
Premium load charges 16,895 17,692 15,004 447 376 1,715
Cost of insurance and administrative
expenses 2,659 34,790 25,526 159 1,055 890
-------- -------- -------- ------- ------- --------
Total deductions 19,554 52,482 40,530 606 1,431 2,605
-------- -------- -------- ------- ------- --------
Net deposits into (withdrawals from)
Separate Account $922,644 $329,788 $362,384 $51,003 $(2,456) $(15,032)
======== ======== ======== ======= ======= ========
<CAPTION>
WORLDWIDE
EMERGING MARKETS
FUND DIVISION
-----------------
1999<F**>
-----------
<S> <C>
Total gross deposits $159,565
Transfers between fund divisions and
General American 27,490
Surrenders and withdrawals 0
--------
Total gross deposits, transfers, and
surrenders between fund divisions 187,055
--------
Deductions:
Premium load charges 61
Cost of insurance and administrative
expenses 578
--------
Total deductions 639
--------
Net deposits into (withdrawals from)
Separate Account $186,416
========
<FN>
<F*>This fund was formerly known as the Gold & Natural Resources Fund.
<F**>The Variable General Select Plus product became available to these funds on April 30, 1999. (continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable General Select Plus:
- -----------------------------
<CAPTION>
MULTI-STYLE EQUITY CORE BOND
FUND DIVISION FUND DIVISION
-------------------------------------- --------------------------------------
1999 1998 1997<F*> 1999 1998 1997<F*>
----------- ----------- -------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $3,354,781 $1,940,731 $ 80,451 $3,385,014 $1,482,889 $ 17,978
Transfers between fund divisions and
General American (238,145) 4,822,163 532,364 109,400 3,101,165 215,118
Surrenders and withdrawals 0 (187) 0 0 0 0
---------- ---------- -------- ---------- ---------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 3,116,636 6,762,707 612,815 3,494,414 4,584,054 233,096
---------- ---------- -------- ---------- ---------- --------
Deductions:
Premium load charges 192,138 204,842 5,866 162,629 117,137 1,346
Cost of insurance and administrative
expenses 33,513 255,638 8,425 21,037 182,736 2,474
---------- ---------- -------- ---------- ---------- --------
Total deductions 225,651 460,480 14,291 183,666 299,873 3,820
---------- ---------- -------- ---------- ---------- --------
Net deposits into Separate Account $2,890,985 $6,302,227 $598,524 $3,310,748 $4,284,181 $229,276
========== ========== ======== ========== ========== ========
<FN>
<F*>The Multi-style Equity Fund, Core Bond Fund, Aggressive Equity Fund, and Non-US Fund began operations on January 2, 1997.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable General Select Plus:
- -----------------------------
<CAPTION>
AGGRESSIVE EQUITY NON-US
FUND DIVISION FUND DIVISION
-------------------------------------- --------------------------------------
1999 1998 1997<F*> 1999 1998 1997<F*>
-------- ---------- -------- --------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $686,381 $ 502,264 $ 54,099 $ 453,079 $ 264,324 $ 42,059
Transfers between fund divisions and
General American (84,039) 1,704,740 281,507 (109,436) 1,609,166 276,242
Surrenders and withdrawals 0 (116) 0 0 (119) 0
-------- ---------- -------- --------- ---------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 602,342 2,206,888 335,606 343,643 1,873,371 318,301
-------- ---------- -------- --------- ---------- --------
Deductions:
Premium load charges 47,306 71,141 3,761 26,226 34,958 3,283
Cost of insurance and administrative
expenses 6,671 47,691 3,632 7,300 38,906 3,028
-------- ---------- -------- --------- ---------- --------
Total deductions 53,977 118,832 7,393 33,526 73,864 6,311
-------- ---------- -------- --------- ---------- --------
Net deposits into Separate Account $548,365 $2,088,056 $328,213 $ 310,117 $1,799,507 $311,990
======== ========== ======== ========= ========== ========
<FN>
<F*>The Multi-style Equity Fund, Core Bond Fund, Aggressive Equity Fund, and Non-US Fund began operations on January 2, 1997.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable General Select Plus:
- -----------------------------
<CAPTION>
INCOME & GROWTH INTERNATIONAL VALUE BOND PORTFOLIO SMALL COMPANY
FUND DIVISION FUND DIVISION FUND DIVISION FUND DIVISION FUND DIVISION
--------------- ------------- ------------- -------------- -------------
1999<F*> 1999<F*> 1999<F*> 1999<F*> 1999<F*>
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Total gross deposits $584,148 $306,558 $89,282 $128,073 $375,118
Transfers between fund divisions and
General American 10,803 9,583 0 0 36,269
Surrenders and withdrawals 0 0 0 0 0
-------- -------- ------- -------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 594,951 316,141 89,282 128,073 411,387
-------- -------- ------- -------- --------
Deductions:
Premium load charges 57 57 70 0 72
Cost of insurance and administrative expenses 41 126 18 18 566
-------- -------- ------- -------- --------
Total deductions 98 183 88 18 638
-------- -------- ------- -------- --------
Net deposits into Separate Account $594,853 $315,958 $89,194 $128,055 $410,749
======== ======== ======= ======== ========
<FN>
<F*>The Variable General Select Plus product became available to these funds on April 30, 1999.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 100:
- ------------------------------
<CAPTION>
S & P 500 INDEX MONEY MARKET
FUND DIVISION FUND DIVISION
--------------------------------------- ---------------------------------------
1999 1998 1997 1999 1998 1997
--------- ---------- ---------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $ 497,709 $3,774,275 $1,995,433 $ 144,058 $ 9,507,851 $ 8,679,144
Transfers between fund divisions and
General American (19,257) 5,484,204 2,177,143 (223,896) (8,000,842) (7,303,949)
Surrenders and withdrawals (140,100) (299,771) (68,513) 0 (11,635) (3,421)
--------- ---------- ---------- --------- ----------- -----------
Total gross deposits, transfers, and
surrenders between fund divisions 338,352 8,958,708 4,104,063 (79,838) 1,495,374 1,371,774
--------- ---------- ---------- --------- ----------- -----------
Deductions:
Premium load charges 157,232 126,277 66,092 121,639 296,413 286,729
Cost of insurance and administrative
expenses 140,651 1,411,705 671,147 9,414 639,686 599,119
--------- ---------- ---------- --------- ----------- -----------
Total deductions 297,883 1,537,982 737,239 131,053 936,099 885,848
--------- ---------- ---------- --------- ----------- -----------
Net deposits into (withdrawals from)
Separate Account $ 40,469 $7,420,726 $3,366,824 $(210,891) $ 559,275 $ 485,926
========= ========== ========== ========= =========== ===========
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 100:
- ------------------------------
<CAPTION>
BOND INDEX MANAGED EQUITY
FUND DIVISION FUND DIVISION
------------------------------------- -------------------------------------
1999 1998 1997 1999 1998 1997
------- -------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $27,523 $279,989 $184,259 $78,693 $488,098 $228,756
Transfers between fund divisions and
General American (7,468) 613,426 265,500 3,494 247,910 432,012
Surrenders and withdrawals (1,636) (10,480) (4,282) (2,376) (59,153) (13,613)
------- -------- -------- ------- -------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 18,419 882,935 445,477 79,811 676,855 647,155
------- -------- -------- ------- -------- --------
Deductions:
Premium load charges 10,567 9,514 6,186 16,793 16,604 7,603
Cost of insurance and administrative
expenses 7,925 83,804 57,817 14,086 178,243 96,349
------- -------- -------- ------- -------- --------
Total deductions 18,492 93,318 64,003 30,879 194,847 103,952
------- -------- -------- ------- -------- --------
Net deposits into (withdrawals from)
Separate Account $ (73) $789,617 $381,474 $48,932 $482,008 $543,203
======= ======== ======== ======= ======== ========
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 100:
- ------------------------------
<CAPTION>
ASSET ALLOCATION INTERNATIONAL INDEX
FUND DIVISION FUND DIVISION<F*>
-------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $174,486 $652,869 $297,431 $ 30,589 $542,245 $380,598
Transfers between fund divisions and
General American (14,732) 212,547 423,970 (74,184) 82,381 259,917
Surrenders and withdrawals (1,320) (16,485) (7,250) (1,545) (13,406) (12,338)
-------- -------- -------- -------- -------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 158,434 848,931 714,151 (45,140) 611,220 628,177
-------- -------- -------- -------- -------- --------
Deductions:
Premium load charges 31,177 21,971 10,273 19,041 18,719 12,990
Cost of insurance and administrative
expenses 29,388 237,042 159,083 13,745 172,801 138,712
-------- -------- -------- -------- -------- --------
Total deductions 60,565 259,013 169,356 32,786 191,520 151,702
-------- -------- -------- -------- -------- --------
Net deposits into (withdrawals from)
Separate Account $ 97,869 $589,918 $544,795 $(77,926) $419,700 $476,475
======== ======== ======== ======== ======== ========
<FN>
<F*>This fund was formerly known as the International Equity Fund.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 100:
- ------------------------------
<CAPTION>
MID-CAP EQUITY SMALL-CAP EQUITY
FUND DIVISION<F*> FUND DIVISION
--------------------------------------- ---------------------------------------
1999 1998 1997 1999 1998 1997<F**>
--------- -------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $ 60,351 $694,795 $405,467 $ 37,239 $390,118 $ 48,912
Transfers between fund divisions and
General American (121,007) 218,584 129,102 (118,733) 485,204 254,044
Surrenders and withdrawals (2,516) (36,811) (15,375) 0 (2,420) 0
--------- -------- -------- --------- -------- --------
Total gross deposits, transfers, and
surrenders between fund divisions (63,172) 876,568 519,194 (81,494) 872,902 302,956
--------- -------- -------- --------- -------- --------
Deductions:
Premium load charges 22,088 23,485 13,537 15,661 13,324 1,579
Cost of insurance and administrative
expenses 14,426 206,508 140,909 8,182 114,663 7,052
--------- -------- -------- --------- -------- --------
Total deductions 36,514 229,993 154,446 23,843 127,987 8,631
--------- -------- -------- --------- -------- --------
Net deposits into (withdrawals from)
Separate Account $ (99,686) $646,575 $364,748 $(105,337) $744,915 $294,325
========= ======== ======== ========= ======== ========
<FN>
<F*>This fund was formerly known as the Special Equity Fund.
<F**>The Small-Cap Equity Fund began operations on May 1, 1997.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 100:
- ------------------------------
<CAPTION>
EQUITY INCOME GROWTH
FUND DIVISION FUND DIVISION
-------------------------------------- ---------------------------------------
1999 1998 1997 1999 1998 1997
-------- ----------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $191,931 $ 2,136,531 $1,996,233 $ 345,160 $2,942,824 $2,402,233
Transfers between fund divisions and
General American (87,709) (1,236,416) 792,184 122,542 694,369 1,492,743
Surrenders and withdrawals (9,312) (127,426) (44,826) (341,338) (279,188) (114,282)
-------- ----------- ---------- --------- ---------- ----------
Total gross deposits, transfers, and
surrenders between fund divisions 94,910 772,689 2,743,591 126,364 3,358,005 3,780,694
-------- ----------- ---------- --------- ---------- ----------
Deductions:
Premium load charges 62,308 78,973 66,340 101,279 103,369 80,190
Cost of insurance and administrative
expenses 45,170 940,207 572,720 106,234 1,188,418 842,557
-------- ----------- ---------- --------- ---------- ----------
Total deductions 107,478 1,019,180 639,060 207,513 1,291,787 922,747
-------- ----------- ---------- --------- ---------- ----------
Net deposits into (withdrawals from)
Separate Account $(12,568) $ (246,491) $2,104,531 $ (81,149) $2,066,218 $2,857,947
======== =========== ========== ========= ========== ==========
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 100:
- ------------------------------
<CAPTION>
OVERSEAS ASSET MANAGER
FUND DIVISION FUND DIVISION
-------------------------------------- -------------------------------------
1999 1998 1997 1999 1998 1997
-------- -------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $ 60,624 $630,759 $508,810 $36,199 $317,439 $147,295
Transfers between fund divisions and
General American 86,259 143,337 313,710 2,278 146,214 109,004
Surrenders and withdrawals (4,693) (59,595) (22,505) (1,984) (26,187) (5,778)
-------- -------- -------- ------- -------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 142,190 714,501 800,015 36,493 437,466 250,521
-------- -------- -------- ------- -------- --------
Deductions:
Premium load charges 21,350 21,503 17,197 11,474 10,729 4,955
Cost of insurance and administrative
expenses 16,685 195,007 165,254 10,603 117,605 74,461
-------- -------- -------- ------- -------- --------
Total deductions 38,035 216,510 182,451 22,077 128,334 79,416
-------- -------- -------- ------- -------- --------
Net deposits into Separate Account $104,155 $497,991 $617,564 $14,416 $309,132 $171,105
======== ======== ======== ======= ======== ========
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 100:
- ------------------------------
<CAPTION>
HIGH INCOME WORLDWIDE HARD ASSETS
FUND DIVISION FUND DIVISION<F*>
-------------------------------------- -------------------------------------
1999 1998 1997 1999 1998 1997
-------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $ 61,798 $469,183 $300,761 $ 4,754 $60,696 $63,004
Transfers between fund divisions and
General American 174,344 256,832 224,109 (3,654) 10,164 18,216
Surrenders and withdrawals 0 (12,240) (20,348) 0 (2,562) (4,909)
-------- -------- -------- ------- ------- -------
Total gross deposits, transfers, and
surrenders between fund divisions 236,142 713,775 504,522 1,100 68,298 76,311
-------- -------- -------- ------- ------- -------
Deductions:
Premium load charges 23,688 15,948 10,110 1,670 2,007 2,147
Cost of insurance and administrative
expenses 15,033 130,579 105,718 1,229 17,277 19,651
-------- -------- -------- ------- ------- -------
Total deductions 38,721 146,527 115,828 2,899 19,284 21,798
-------- -------- -------- ------- ------- -------
Net deposits into (withdrawals from)
Separate Account $197,421 $567,248 $388,694 $(1,799) $49,014 $54,513
======== ======== ======== ======= ======= =======
<FN>
<F*>This fund was formerly known as the Gold & Natural Resources Fund.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 100:
- ------------------------------
<CAPTION>
WORLDWIDE
EMERGING MARKETS MULTI-STYLE EQUITY CORE BOND
FUND DIVISION FUND DIVISION FUND DIVISION
---------------- ------------------------- -------------------------
1999<F**> 1999 1998<F*> 1999 1998<F*>
--------- ------- -------- ------ --------
<S> <C> <C> <C> <C> <C>
Total gross deposits $ 52 $29,816 $11,281 $7,874 $1,071
Transfers between fund divisions and
General American 2,925 (584) 62,902 (56) 7,124
Surrenders and withdrawals (3,567) 114 (69) 1,463 0
------- ------- ------- ------ ------
Total gross deposits, transfers, and
surrenders between fund divisions (590) 29,346 74,114 9,281 8,195
------- ------- ------- ------ ------
Deductions:
Premium load charges 7 6,946 460 886 40
Cost of insurance and administrative expenses 88 5,732 5,703 475 1,266
------- ------- ------- ------ ------
Total deductions 95 12,678 6,163 1,361 1,306
------- ------- ------- ------ ------
Net deposits into (withdrawals from)
Separate Account $ (685) $16,668 $67,951 $7,920 $6,889
======= ======= ======= ====== ======
<FN>
<F*>The Variable Universal Life - 100 product became available to these funds on April 30, 1998.
<F**>The Variable Universal Life - 100 product became available to this fund on April 30, 1999.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 100:
- ------------------------------
<CAPTION>
AGGRESSIVE EQUITY NON-US
FUND DIVISION FUND DIVISION
---------------------- -----------------------
1999 1998<F*> 1999 1998<F*>
------ -------- ------- --------
<S> <C> <C> <C> <C>
Total gross deposits $5,962 $(3,957) $ 5,131 $ 1,368
Transfers between fund divisions and
General American (656) 20,863 (194) 12,106
Surrenders and withdrawals 0 0 (1,225) 0
------ ------- ------- -------
Total gross deposits, transfers, and
surrenders between fund divisions 5,306 16,906 3,712 13,474
------ ------- ------- -------
Deductions:
Premium load charges 1,972 167 1,252 103
Cost of insurance and administrative expenses 2,098 3,404 1,797 1,186
------ ------- ------- -------
Total deductions 4,070 3,571 3,049 1,289
------ ------- ------- -------
Net deposits into Separate Account $1,236 $13,335 $ 663 $12,185
====== ======= ======= =======
<FN>
<F*>The Variable Universal Life - 100 product became available to these funds on April 30, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life - 100:
- ------------------------------
<CAPTION>
SMALL COMPANY
INCOME & GROWTH INTERNATIONAL VALUE BOND PORTFOLIO PORTFOLIO
FUND DIVISION FUND DIVISION FUND DIVISION FUND DIVISION FUND DIVISION
--------------- ------------- ------------- -------------- -------------
1999<F*> 1999<F*> 1999<F*> 1999<F*> 1999<F*>
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Total gross deposits $ 7,302 $ 4,437 $(2,632) $ 68 $ 1,074
Transfers between fund divisions and
General American (13,611) 89,802 0 0 30,306
Surrenders and withdrawals (872) (524) 704 0 0
-------- ------- ------- ----- -------
Total gross deposits, transfers, and
surrenders between fund divisions (7,181) 93,715 (1,928) 68 31,380
-------- ------- ------- ----- -------
Deductions:
Premium load charges 428 90 0 7 39
Cost of insurance and administrative expenses 169 15 2 29 72
-------- ------- ------- ----- -------
Total deductions 597 105 2 36 111
-------- ------- ------- ----- -------
Net deposits into (withdrawals from)
Separate Account $ (7,778) $93,610 $(1,930) $ 32 $31,269
======== ======= ======= ===== =======
<FN>
<F*>The Variable Universal Life - 100 product became available to these funds on April 30, 1999.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Russell Variable Universal Life:<F*>
- ------------------------------------
<CAPTION>
MONEY MARKET MULTI-STYLE EQUITY
FUND DIVISION FUND DIVISION
--------------------------- --------------------------------------------
1998 1997 1999 1998 1997<F**>
--------- ----------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Total gross deposits $ 415,709 $ 4,627,386 $ 11,757 $1,037,690 $ 19,255
Transfers between fund divisions and
General American (469,090) (4,374,607) 0 154,284 1,937,967
Surrenders and withdrawals 0 0 0 (13,263) (328)
--------- ----------- -------- ---------- ----------
Total gross deposits, transfers, and
surrenders between fund divisions (53,381) 252,779 11,757 1,178,711 1,956,894
--------- ----------- -------- ---------- ----------
Deductions:
Premium load charges 27,188 72,762 11,910 75,029 1,369
Cost of insurance and administrative expenses 10,537 72,945 11,989 108,054 19,567
--------- ----------- -------- ---------- ----------
Total deductions 37,725 145,707 23,899 183,083 20,936
--------- ----------- -------- ---------- ----------
Net deposits into (withdrawals from)
Separate Account $ (91,106) $ 107,072 $(12,142) $ 995,628 $1,935,958
========= =========== ======== ========== ==========
<CAPTION>
CORE BOND
FUND DIVISION
-----------------------------------------------
1999 1998 1997<F**>
------- ---------- ---------
<S> <C> <C> <C>
Total gross deposits $ 2,104 $ 932,874 $ 3,472
Transfers between fund divisions and
General American 0 167,553 914,278
Surrenders and withdrawals 0 (15,205) 0
------- ---------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 2,104 1,085,222 917,750
------- ---------- --------
Deductions:
Premium load charges 2,839 62,053 0
Cost of insurance and administrative expenses 9,047 102,484 21,735
------- ---------- --------
Total deductions 11,886 164,537 21,735
------- ---------- --------
Net deposits into (withdrawals from)
Separate Account $(9,782) $ 920,685 $896,015
======= ========== ========
<FN>
<F*>Russell Variable Universal Life product was introduced in 1997, and the first deposit was received on June 6, 1997.
<F**>The Multi-style Equity Fund and Core Bond Fund began operations on January 2, 1997.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Russell Variable Universal Life:<F*>
- ------------------------------------
<CAPTION>
AGGRESSIVE EQUITY NON-US
FUND DIVISION FUND DIVISION
-------------------------------------- --------------------------------------
1999 1998 1997<F**> 1999 1998 1997<F**>
------- -------- --------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits $ 6,989 $397,370 $ 12,641 $ 2,513 $514,239 $ 8,990
Transfers between fund divisions and
General American 0 54,038 987,308 0 91,705 532,277
Surrenders and withdrawals 0 (3,526) (94) 0 (6,050) (137)
------- -------- -------- ------- -------- --------
Total gross deposits, transfers, and
surrenders between fund divisions 6,989 447,882 999,855 2,513 599,894 541,130
------- -------- -------- ------- -------- --------
Deductions:
Premium load charges 7,446 28,279 822 3,137 36,821 548
Cost of insurance and administrative
expenses 3,346 35,589 6,442 5,864 50,919 10,345
------- -------- -------- ------- -------- --------
Total deductions 10,792 63,868 7,264 9,001 87,740 10,893
------- -------- -------- ------- -------- --------
Net deposits into (withdrawals from)
Separate Account $(3,803) $384,014 $992,591 $(6,488) $512,154 $530,237
======= ======== ======== ======= ======== ========
<FN>
<F*>Russell Variable Universal Life product was introduced in 1997, and the first deposit was received on June 6, 1997.
<F**>The Aggressive Equity Fund and Non-US Fund began operations on January 2, 1997.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life Insurance - 98:<F*>
- -------------------------------------------
<CAPTION>
S & P 500 INDEX MONEY MARKET
FUND DIVISION FUND DIVISION
----------------------- --------------------------
1999 1998 1999 1998
-------- -------- ----------- ----------
<S> <C> <C> <C> <C>
Total gross deposits $445,984 $ 4,307 $ 3,382,823 $2,186,833
Transfers between fund divisions and
General American 306,257 136,331 (1,591,945) (337,148)
Surrenders and withdrawals (611) 0 (5,968) 0
-------- -------- ----------- ----------
Total gross deposits, transfers, and
surrenders between fund divisions 751,630 140,638 1,784,910 1,849,685
-------- -------- ----------- ----------
Deductions:
Premium load charges 178,933 555 1,942,937 262,833
Cost of insurance and administrative expenses 77,279 2,864 65,472 52,876
-------- -------- ----------- ----------
Total deductions 256,212 3,419 2,008,409 315,709
-------- -------- ----------- ----------
Net deposits into (withdrawals from)
Separate Account $495,418 $137,219 $ (223,499) $1,533,976
======== ======== =========== ==========
<FN>
<F*>The Variable Universal Life Insurance 98 product was introduced in 1998, and the first
deposit was received on September 29, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life Insurance - 98:<F*>
- -------------------------------------------
<CAPTION>
BOND INDEX MANAGED EQUITY
FUND DIVISION FUND DIVISION
------------------------ -----------------------
1999 1998 1999 1998
---------- ------ ------- ------
<S> <C> <C> <C> <C>
Total gross deposits $ 23,548 $ 86 $14,479 $ 186
Transfers between fund divisions and
General American (187,277) 5,616 11,989 8,181
Surrenders and withdrawals (195) 0 0 0
--------- ------ ------- ------
Total gross deposits, transfers, and
surrenders between fund divisions (163,924) 5,702 26,468 8,367
--------- ------ ------- ------
Deductions:
Premium load charges 7,871 14 10,119 27
Cost of insurance and administrative expenses 3,174 52 3,388 154
--------- ------ ------- ------
Total deductions 11,045 66 13,507 181
--------- ------ ------- ------
Net deposits into (withdrawals from)
Separate Account $(174,969) $5,636 $12,961 $8,186
========= ====== ======= ======
<FN>
<F*>The Variable Universal Life Insurance 98 product was introduced in 1998, and the first
deposit was received on September 29, 1998. (continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life Insurance - 98:<F*>
- -------------------------------------------
<CAPTION>
ASSET ALLOCATION INTERNATIONAL INDEX
FUND DIVISION FUND DIVISION<F**>
------------------------- -----------------------
1999 1998 1999 1998
------- ------- ------- ------
<S> <C> <C> <C> <C>
Total gross deposits $23,556 $ 294 $22,587 $ 398
Transfers between fund divisions and
General American 33,414 11,801 37,150 7,529
Surrenders and withdrawals 0 0 (173) 0
------- ------- ------- ------
Total gross deposits, transfers, and
surrenders between fund divisions 56,970 12,095 59,564 7,927
------- ------- ------- ------
Deductions:
Premium load charges 8,354 30 8,623 44
Cost of insurance and administrative expenses 4,085 166 3,251 192
------- ------- ------- ------
Total deductions 12,439 196 11,874 236
------- ------- ------- ------
Net deposits into Separate Account $44,531 $11,899 $47,690 $7,691
======= ======= ======= ======
<FN>
<F*>The Variable Universal Life Insurance 98 product was introduced in 1998, and the
first deposit was received on September 29, 1998.
<F**>This fund was formerly known as the International Equity Fund. (continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life Insurance - 98:<F*>
- -------------------------------------------
<CAPTION>
MID-CAP EQUITY SMALL-CAP EQUITY
FUND DIVISION<F**> FUND DIVISION
---------------------- -----------------------
1999 1998 1999 1998
-------- ------ ------- ------
<S> <C> <C> <C> <C>
Total gross deposits $18,623 $ 269 $20,399 $ 506
Transfers between fund divisions and
General American 21,442 6,292 16,055 6,347
Surrenders and withdrawals (330) 0 (277) 0
------- ------ ------- ------
Total gross deposits, transfers, and
surrenders between fund divisions 39,735 6,561 36,177 6,853
------- ------ ------- ------
Deductions:
Premium load charges 11,545 34 10,879 68
Cost of insurance and administrative expenses 3,828 247 4,124 265
------- ------ ------- ------
Total deductions 15,373 281 15,003 333
------- ------ ------- ------
Net deposits into Separate Account $24,362 $6,280 $21,174 $6,520
======= ====== ======= ======
<FN>
<F*>The Variable Universal Life Insurance 98 product was introduced in 1998, and the
first deposit was received on September 29, 1998.
<F**>This fund was formerly known as the Special Equity Fund.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life Insurance - 98:<F*>
- -------------------------------------------
<CAPTION>
EQUITY INCOME GROWTH
FUND DIVISION FUND DIVISION
------------------------- ------------------------
1999 1998 1999 1998
--------- ------- --------- -------
<S> <C> <C> <C> <C>
Total gross deposits $ 69,744 $ 2,126 $264,768 $ 3,312
Transfers between fund divisions and
General American 159,840 22,773 639,837 43,658
Surrenders and withdrawals (44) 0 (2,741) 0
-------- ------- -------- -------
Total gross deposits, transfers, and
surrenders between fund divisions 229,540 24,899 901,864 46,970
-------- ------- -------- -------
Deductions:
Premium load charges 32,639 235 99,411 248
Cost of insurance and administrative expenses 13,365 1,202 38,779 1,227
-------- ------- -------- -------
Total deductions 46,004 1,437 138,190 1,475
-------- ------- -------- -------
Net deposits into Separate Account $183,536 $23,462 $763,674 $45,495
======== ======= ======== =======
<FN>
<F*>The Variable Universal Life Insurance 98 product was introduced in 1998, and the
first deposit was received on September 29, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life Insurance - 98:<F*>
- -------------------------------------------
<CAPTION>
OVERSEAS ASSET MANAGER
FUND DIVISION FUND DIVISION
------------------------ -----------------------
1999 1998 1999 1998
------- ------ --------- ------
<S> <C> <C> <C> <C>
Total gross deposits $46,521 $ 550 $ 25,593 $1,890
Transfers between fund divisions and
General American 32,045 6,272 94,012 6,091
Surrenders and withdrawals 0 0 (403) 0
------- ------ -------- ------
Total gross deposits, transfers, and
surrenders between fund divisions 78,566 6,822 119,202 7,981
------- ------ -------- ------
Deductions:
Premium load charges 18,594 55 7,359 111
Cost of insurance and administrative expenses 5,846 195 4,946 635
------- ------ -------- ------
Total deductions 24,440 250 12,305 746
------- ------ -------- ------
Net deposits into Separate Account $54,126 $6,572 $106,897 $7,235
======= ====== ======== ======
<FN>
<F*>The Variable Universal Life Insurance 98 product was introduced in 1998, and the
first deposit was received on September 29, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life Insurance - 98:<F*>
- -------------------------------------------
<CAPTION>
WORLWIDE
HIGH INCOME HARD ASSETS
FUND DIVISION FUND DIVISION
------------------------- --------------------
1999 1998 1999 1998
-------- ------- ---- ----
<S> <C> <C> <C> <C>
Total gross deposits $24,835 $ 582 $584 $ 74
Transfers between fund divisions and
General American 26,973 11,663 211 56
Surrenders and withdrawals (193) 0 0 0
------- ------- ---- ----
Total gross deposits, transfers, and
surrenders between fund divisions 51,615 12,245 795 130
------- ------- ---- ----
Deductions:
Premium load charges 12,198 84 359 12
Cost of insurance and administrative expenses 3,939 300 236 4
------- ------- ---- ----
Total deductions 16,137 384 595 16
------- ------- ---- ----
Net deposits into Separate Account $35,478 $11,861 $200 $114
======= ======= ==== ====
<FN>
<F*>The Variable Universal Life Insurance 98 product was introduced in 1998, and the
first deposit was received on September 29, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life Insurance - 98:<F*>
- -------------------------------------------
<CAPTION>
WORLDWIDE MULTI-STYLE
EMERGING MARKETS EQUITY
FUND DIVISION FUND DIVISION
------------------------- -----------------------
1999<F**> 1998 1999 1998
--------- ------ -------- -------
<S> <C> <C> <C> <C>
Total gross deposits $3,360 $ 45 $ 68,210 $26,946
Transfers between fund divisions and
General American 3,702 1,753 78,386 12,531
Surrenders and withdrawals 0 0 (198) 0
------ ------ -------- -------
Total gross deposits, transfers, and
surrenders between fund divisions 7,062 1,798 146,398 39,477
------ ------ -------- -------
Deductions:
Premium load charges 1,161 7 30,461 3,877
Cost of insurance and administrative expenses 861 91 11,758 1,140
------ ------ -------- -------
Total deductions 2,022 98 42,219 5,017
------ ------ -------- -------
Net deposits into Separate Account $5,040 $1,700 $104,179 $34,460
====== ====== ======== =======
<FN>
<F*>The Variable Universal Life Insurance 98 product was introduced in 1998, and the
first deposit was received on September 29, 1998.
<F**>The Variable Universal Life Insurance 98 product became available to these funds
on April 30, 1999.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life Insurance - 98:<F*>
- -------------------------------------------
<CAPTION>
AGGRESSIVE
CORE BOND EQUITY
FUND DIVISION FUND DIVISION
------------------------ ------------------------
1999 1998 1999 1998
-------- ------ ------- -------
<S> <C> <C> <C> <C>
Total gross deposits $ 20,212 $2,978 $41,552 $23,310
Transfers between fund divisions and
General American (72,338) 4,298 39,906 10,915
-------- ------ ------- -------
Total gross deposits and transfers
between fund divisions (52,126) 7,276 81,458 34,225
-------- ------ ------- -------
Deductions:
Premium load charges 9,225 420 19,244 3,441
Cost of insurance and administrative expenses 2,396 98 5,509 755
-------- ------ ------- -------
Total deductions 11,621 518 24,753 4,196
-------- ------ ------- -------
Net deposits into (withdrawals from)
Separate Account $(63,747) $6,758 $56,705 $30,029
======== ====== ======= =======
<F*>The Variable Universal Life Insurance 98 product was introduced in 1998, and the
first deposit was received on September 29, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life Insurance - 98:<F*>
- -------------------------------------------
<CAPTION>
NON-US INCOME & GROWTH
FUND DIVISION FUND DIVISION
---------------------- -----------------------
1999 1998 1999<F**> 1998
------- ------ --------- ------
<S> <C> <C> <C> <C>
Total gross deposits $24,901 $3,248 $51,993 $ 126
Transfers between fund divisions and
General American 24,138 5,871 27,806 6,880
------- ------ ------- ------
Total gross deposits, transfers, and
surrenders between fund divisions 49,039 9,119 79,799 7,006
------- ------ ------- ------
Deductions:
Premium load charges 8,263 448 17,313 29
Cost of insurance and administrative expenses 3,119 184 7,281 132
------- ------ ------- ------
Total deductions 11,382 632 24,594 161
------- ------ ------- ------
Net deposits into Separate Account $37,657 $8,487 $55,205 $6,845
======= ====== ======= ======
<FN>
<F*>The Variable Universal Life Insurance 98 product was introduced in 1998, and the
first deposit was received on September 29, 1998.
<F**>The Variable Universal Life Insurance 98 product became available to this fund
on April 30, 1999.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life Insurance - 98:<F*>
- -------------------------------------------
<CAPTION>
INTERNATIONAL VALUE
FUND DIVISION FUND DIVISION
------------------------ -----------------------
1999<F**> 1998 1999<F**> 1998
--------- ---- --------- ------
<S> <C> <C> <C> <C>
Total gross deposits $10,629 $258 $25,993 $ 93
Transfers between fund divisions and
General American 14,268 713 1,261 3,740
Surrenders and withdrawals 0 0 0 0
------- ---- ------- ------
Total gross deposits, transfers, and
surrenders between fund divisions 24,897 971 27,254 3,833
------- ---- ------- ------
Deductions:
Premium load charges 4,785 44 7,137 17
Cost of insurance and administrative expenses 3,739 74 1,689 30
------- ---- ------- ------
Total deductions 8,524 118 8,826 47
------- ---- ------- ------
Net deposits into Separate Account $16,373 $853 $18,428 $3,786
======= ==== ======= ======
<FN>
<F*>The Variable Universal Life Insurance 98 product was introduced in 1998, and the
first deposit was received on September 29, 1998.
<F**>The Variable Universal Life Insurance 98 product became available to these funds
on April 30, 1999.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Variable Universal Life Insurance - 98:<F*>
- -------------------------------------------
<CAPTION>
SMALL COMPANY
BOND PORTFOLIO PORTFOLIO
FUND DIVISION FUND DIVISION
----------------------- -----------------------
1999<F**> 1998 1999<F**> 1998
--------- ------ --------- ------
<S> <C> <C> <C> <C>
Total gross deposits $ 9,118 $ 117 $18,644 $ 54
Transfers between fund divisions and
General American 1,306 3,219 26,022 3,034
------- ------ ------- ------
Total gross deposits and transfers
between fund divisions 10,424 3,336 44,666 3,088
------- ------ ------- ------
Deductions:
Premium load charges 3,529 14 5,354 12
Cost of insurance and administrative expenses 860 23 3,005 154
------- ------ ------- ------
Total deductions 4,389 37 8,359 166
------- ------ ------- ------
Net deposits into Separate Account $ 6,035 $3,299 $36,307 $2,922
======= ====== ======= ======
<F*>The Variable Universal Life Insurance 98 product was introduced in 1998, and the
first deposit was received on September 29, 1998.
<F**>The Variable Universal Life Insurance 98 product became available to these funds
on April 30, 1999.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Joint and Survivor Variable Universal Life Insurance - 98:<F*>
- --------------------------------------------------------------
<CAPTION>
S & P 500 INDEX MONEY MARKET
FUND DIVISION FUND DIVISION
----------------------- ------------------------
1999 1998 1999 1998
-------- ------ --------- --------
<S> <C> <C> <C> <C>
Total gross deposits $148,524 $ 0 $ 646,197 $327,992
Transfers between fund divisions and
General American 183,394 1,201 (251,824) (21,803)
-------- ------ --------- --------
Total gross deposits and transfers
between fund divisions 331,918 1,201 394,373 306,189
-------- ------ --------- --------
Deductions:
Premium load charges 21,033 0 327,573 50,777
Cost of insurance and administrative expenses 15,334 24 16,814 14,164
-------- ------ --------- --------
Total deductions 36,367 24 344,387 64,941
-------- ------ --------- --------
Net deposits into Separate Account $295,551 $1,177 $ 49,986 $241,248
======== ====== ========= ========
<FN>
<F*>The Joint and Survivor Variable Universal Life Insurance 98 product was introduced in 1998,
and the first deposit was received on October 14, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Joint and Survivor Variable Universal Life Insurance - 98:<F*>
- --------------------------------------------------------------
<CAPTION>
BOND INDEX MANAGED EQUITY ASSET ALLOCATION
FUND DIVISION FUND DIVISION FUND DIVISION
---------------------- -------------- ----------------
1999 1998 1999 1999
------- ---- ------- -------
<S> <C> <C> <C> <C>
Total gross deposits $10,088 0 $ 5,156 $ 6,904
Transfers between fund divisions and
General American 55 $905 19,546 17,414
------- ---- ------- -------
Total gross deposits and transfers
between fund divisions 10,143 905 24,702 24,318
------- ---- ------- -------
Deductions:
Premium load charges 934 0 702 1,074
Cost of insurance and administrative expenses 636 24 320 1,595
------- ---- ------- -------
Total deductions 1,570 24 1,022 2,669
------- ---- ------- -------
Net deposits into Separate Account $ 8,573 $881 $23,680 $21,649
======= ==== ======= =======
<FN>
<F*>The Joint and Survivor Variable Universal Life Insurance 98 product was introduced in 1998,
and the first deposit was received on October 14, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Joint and Survivor Variable Universal Life Insurance - 98:<F*>
- --------------------------------------------------------------
<CAPTION>
INTERNATIONAL INDEX MID-CAP EQUITY
FUND DIVISION FUND DIVISION
---------------------- ----------------------
1999 1998 1999 1998
------- ---- ------- ------
<S> <C> <C> <C> <C>
Total gross deposits $12,937 $ 0 $20,543 $ 0
Transfers between fund divisions and
General American 734 905 0 1,752
------- ---- ------- ------
Total gross deposits and transfers
between fund divisions 13,671 905 20,543 1,752
------- ---- ------- ------
Deductions:
Premium load charges 1,043 0 2,004 0
Cost of insurance and administrative expenses 420 24 695 54
------- ---- ------- ------
Total deductions 1,463 24 2,699 54
------- ---- ------- ------
Net deposits into Separate Account $12,208 $881 $17,844 $1,698
======= ==== ======= ======
<FN>
<F*>The Joint and Survivor Variable Universal Life Insurance 98 product was introduced in 1998,
and the first deposit was received on October 14, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Joint and Survivor Variable Universal Life Insurance - 98:<F*>
- --------------------------------------------------------------
<CAPTION>
SMALL-CAP EQUITY EQUITY INCOME
FUND DIVISION FUND DIVISION
---------------------- ----------------------
1999 1998 1999 1998
------- ------ ------- ------
<S> <C> <C> <C> <C>
Total gross deposits $19,313 $ 0 $18,515 $ 0
Transfers between fund divisions and
General American 347 1,692 8,184 2,609
------- ------ ------- ------
Total gross deposits and transfers
between fund divisions 19,660 1,692 26,699 2,609
------- ------ ------- ------
Deductions:
Premium load charges 2,807 0 2,920 0
Cost of insurance and administrative expenses 837 53 1,537 76
------- ------ ------- ------
Total deductions 3,644 53 4,457 76
------- ------ ------- ------
Net deposits into Separate Account $16,016 $1,639 $22,242 $2,533
======= ====== ======= ======
<FN>
<F*>The Joint and Survivor Variable Universal Life Insurance 98 product was introduced in 1998,
and the first deposit was received on October 14, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Joint and Survivor Variable Universal Life Insurance - 98:<F*>
- --------------------------------------------------------------
<CAPTION>
GROWTH OVERSEAS ASSET MANAGER
FUND DIVISION FUND DIVISION FUND DIVISION
--------------------- ---------------------- -------------
1999 1998 1999 1998 1999
------- ---- ------- ------ ----
<S> <C> <C> <C> <C> <C>
Total gross deposits $43,496 $ 0 $15,097 $ 0 $144
Transfers between fund divisions and
General American 11,264 905 1,000 1,706 0
------- ---- ------- ------ ----
Total gross deposits and transfers
between fund divisions 54,760 905 16,097 1,706 144
------- ---- ------- ------ ----
Deductions:
Premium load charges 8,888 0 1,866 0 0
Cost of insurance and administrative expenses 4,308 24 608 53 26
------- ---- ------- ------ ----
Total deductions 13,196 24 2,474 53 26
------- ---- ------- ------ ----
Net deposits into Separate Account $41,564 $881 $13,623 $1,653 $118
======= ==== ======= ====== ====
<FN>
<F*>The Joint and Survivor Variable Universal Life Insurance 98 product was introduced in 1998,
and the first deposit was received on October 14, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Joint and Survivor Variable Universal Life Insurance - 98:<F*>
- --------------------------------------------------------------
<CAPTION>
HIGH INCOME MULTI-SYTLE EQUITY
FUND DIVISION FUND DIVISION
---------------------- ----------------------
1999 1998 1999 1998
------- ------ ------- ------
<S> <C> <C> <C> <C>
Total gross deposits $10,880 $ 0 $ 9,127 $ 0
Transfers between fund divisions and
General American 0 1,711 4,922 4,306
------- ------ ------- ------
Total gross deposits and transfers
between fund divisions 10,880 1,711 14,049 4,306
------- ------ ------- ------
Deductions:
Premium load charges 913 0 4,155 0
Cost of insurance and administrative expenses 724 53 1,262 133
------- ------ ------- ------
Total deductions 1,637 53 5,417 133
------- ------ ------- ------
Net deposits into Separate Account $ 9,243 $1,658 $ 8,632 $4,173
======= ====== ======= ======
<FN>
<F*>The Joint and Survivor Variable Universal Life Insurance 98 product was introduced in 1998,
and the first deposit was received on October 14, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Joint and Survivor Variable Universal Life Insurance - 98:<F*>
- --------------------------------------------------------------
<CAPTION>
WORLDWIDE
EMERGING MARKETS CORE BOND
FUND DIVISION FUND DIVISION
---------------- ----------------------
1999 1999 1998
------- ------- ------
<S> <C> <C> <C>
Total gross deposits $(3,046) $ 263 $ 0
Transfers between fund divisions and
General American 0 128 1,708
------- ------- ------
Total gross deposits and transfers
between fund divisions (3,046) 391 1,708
------- ------- ------
Deductions:
Premium load charges 0 1,166 0
Cost of insurance and administrative expenses 146 295 50
------- ------- ------
Total deductions 146 1,461 50
------- ------- ------
Net deposits into (withdrawals from) Separate Account $(3,192) $(1,070) $1,658
======= ======= ======
<FN>
<F*>The Joint and Survivor Variable Universal Life Insurance 98 product was introduced in 1998,
and the first deposit was received on October 14, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Joint and Survivor Variable Universal Life Insurance - 98:<F*>
- --------------------------------------------------------------
<CAPTION>
AGGRESSIVE EQUITY NON-US
FUND DIVISION FUND DIVISION
----------------- ---------------------
1999 1999 1998
------- ------ ------
<S> <C> <C> <C>
Total gross deposits $5,046 $3,039 $ 0
Transfers between fund divisions and
General American 3 (110) 1,774
------ ------ ------
Total gross deposits and transfers
between fund divisions 5,049 2,929 1,774
------ ------ ------
Deductions:
Premium load charges 2,119 1,260 0
Cost of insurance and administrative expenses 537 298 52
------ ------ ------
Total deductions 2,656 1,558 52
------ ------ ------
Net deposits into Separate Account $2,393 $1,371 $1,722
====== ====== ======
<FN>
<F*>The Joint and Survivor Variable Universal Life Insurance 98 product was introduced in 1998,
and the first deposit was received on October 14, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Joint and Survivor Variable Universal Life Insurance - 98:<F*>
- --------------------------------------------------------------
<CAPTION>
INCOME & GROWTH INTERNATIONAL VALUE
FUND DIVISION FUND DIVISION FUND DIVISION
--------------- ------------- -------------
1999 1999 1999<F**>
------ ------ ---------
<S> <C> <C> <C>
Total gross deposits $2,399 $1,597 $1,014
Transfers between fund divisions and
General American 4,943 0 0
------ ------ ------
Total gross deposits and transfers
between fund divisions 7,342 1,597 1,014
------ ------ ------
Deductions:
Premium load charges 1,930 510 422
Cost of insurance and administrative expenses 613 338 119
------ ------ ------
Total deductions 2,543 848 541
------ ------ ------
Net deposits into Separate Account $4,799 $ 749 $ 473
====== ====== ======
<FN>
<F*>The Joint and Survivor Variable Universal Life Insurance 98 product was introduced in 1998,
and the first deposit was received on October 14, 1998.
(continued)
<PAGE>
<PAGE>
NOTE 7 - SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT, (CONTINUED)
Joint and Survivor Variable Universal Life Insurance - 98:<F*>
- --------------------------------------------------------------
<CAPTION>
BOND PORTFOLIO SMALL COMPANY
FUND DIVISION FUND DIVISION
-------------- -------------
1999 1999
------ ----
<S> <C> <C>
Total gross deposits $1,551 $981
Deductions:
Premium load charges 632 211
Cost of insurance and administrative expenses 237 315
------ ----
Total deductions 869 526
------ ----
Net deposits into Separate Account $ 682 $455
====== ====
<FN>
<F*>The Joint and Survivor Variable Universal Life Insurance 98 product was introduced in 1998,
and the first deposit was received on October 14, 1998.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
<CAPTION>
No. of Shares Market Value
--------------- --------------
<S> <C> <C>
S & P 500 Index Fund
General American Capital Company <F*> 999,187 $60,824,360
Money Market Fund
General American Capital Company <F*> 489,328 9,910,022
Bond Index Fund
General American Capital Company <F*> 250,830 6,136,371
Managed Equity Fund
General American Capital Company <F*> 173,817 6,380,710
Asset Allocation Fund
General American Capital Company <F*> 401,176 18,584,088
International Index Fund <F**>
General American Capital Company <F*> 507,022 13,006,687
Mid-Cap Equity Fund <F***>
General American Capital Company <F*> 337,135 8,364,930
Small-Cap Equity Fund
General American Capital Company <F*> 69,740 2,918,058
Equity-Income Fund
Variable Insurance Products Fund 939,971 24,166,662
Growth Fund
Variable Insurance Products Fund 1,014,256 55,713,063
Overseas Fund
Variable Insurance Products Fund 548,542 15,052,006
Asset Manager Fund
Variable Insurance Products Fund II 129,586 2,419,380
High Income Fund
Variable Insurance Products Fund 386,909 4,375,944
Worldwide Hard Assets Fund <F****>
Van Eck Worldwide Insurance Trust 28,930 317,077
Worldwide Emerging Markets Fund
Van Eck Worldwide Insurance Trust 18,240 260,096
<FN>
<F*>These funds use consent dividending. See Note 2C.
<F**>This fund was formerly known as the International Equity Fund.
<F***>This fund was formerly known as the Special Equity Fund.
<F****>This fund was formerly known as the Gold & Natural Resources Fund
See accompanying notes to financial statements. (continued)
<PAGE>
<PAGE>
GENERAL AMERICAN SEPARATE ACCOUNT ELEVEN
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
<CAPTION>
No. of Shares Market Value
--------------- --------------
<S> <C> <C>
Multi-Style Equity Fund
Russell Insurance Funds 1,014,829 $17,038,971
Core Bond Fund
Russell Insurance Funds 1,018,988 9,823,042
Aggressive Equity Fund
Russell Insurance Funds 364,662 4,871,881
Non-US Fund
Russell Insurance Funds 353,166 5,011,427
Income & Growth Fund
American Century Variable Portfolios 92,034 736,269
International Fund
American Century Variable Portfolios 48,347 604,334
Value Fund
American Century Variable Portfolios 16,164 96,178
Bond Portfolio
J.P. Morgan Series Trust II 12,590 141,513
Small Company Portfolio
J.P. Morgan Series Trust II 35,632 596,119
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE>
LEGAL COUNSEL
Stephen E. Roth
Sutherland, Asbill & Brennan, Washington, D.C.
INDEPENDENT AUDITORS
KPMG LLP
If distributed to prospective investors, this report must be preceded or
accompanied by a current prospectus.
The prospectus is incomplete without reference to the financial data
contained in the annual report.
<PAGE>
<PAGE>
GENERAL AMERICAN LIFE INSURANCE
COMPANY AND SUBSIDIARIES
Consolidated Financial Statements
December 31, 1999 and 1998
(With Independent Auditors' Report Thereon)
<PAGE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
Board of Directors and Members of General American Life Insurance
Company:
We have audited the accompanying consolidated balance sheets of General
American Life Insurance Company and subsidiaries as of December 31, 1999
and 1998, and the related consolidated statements of operations,
comprehensive income, stockholder equity, and cash flows for each of the
years in the three-year period ended December 31, 1999. These
consolidated financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these consolidated financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of
General American Life Insurance Company and subsidiaries as of December
31, 1999 and 1998, and the results of their operations and their cash
flows for each of the years in the three-year period ended December 31,
1999, in conformity with generally accepted accounting principles.
St. Louis, Missouri
February 4, 2000
<PAGE>
<PAGE>
<TABLE>
General American Life Insurance Company and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(dollars in millions, except share data)
<CAPTION>
As of December 31
-----------------
1999 1998
--------- --------
<S> <C> <C>
ASSETS
- ----------------------------------------------------------------
Fixed maturities:
Available-for-sale, at fair value $ 6,826.1 11,068.3
Mortgage loans, net 1,678.9 2,337.5
Real estate, net 127.2 129.9
Equity securities, at fair value 49.3 48.6
Policy loans 2,243.9 2,151.0
Short-term investments 292.4 195.3
Other invested assets 898.8 457.6
--------- --------
Total investments 12,116.6 16,388.2
Cash and cash equivalents 790.0 591.1
Accrued investment income 153.9 205.6
Reinsurance recoverables 863.3 905.0
Other contract deposits 325.5 4,094.8
Deferred tax asset, net 197.6 -
Deferred policy acquisition costs 1,286.1 773.8
Other assets 781.1 675.7
Separate account assets 6,915.6 5,214.8
--------- --------
Total assets $23,429.7 28,849.0
========= ========
LIABILITIES AND STOCKHOLDER EQUITY
- ----------------------------------------------------------------
Policy and contract liabilities:
Future policy benefits $ 5,995.6 5,589.5
Policyholder account balances:
Universal life 3,032.1 2,960.9
Annuities 3,709.8 3,714.5
Pension funds and interest sensitive contract liabilities 556.8 7,581.3
Policy and contract claims 702.1 591.1
Dividends payable to policyholders 120.6 121.7
--------- --------
Total policy and contract liabilities 14,117.0 20,559.0
Amounts payable to reinsurers 79.2 201.4
Long-term debt and notes payable 216.6 221.9
Other liabilities and accrued expenses 825.0 912.4
Deferred tax liability, net - 75.4
Separate account liabilities 6,892.0 5,194.9
--------- --------
Total liabilities 22,129.8 27,165.0
Minority interests 420.0 383.1
Stockholder equity:
Common stock, $1 par value, 5,000,000 shares authorized,
3,000,000 shares issued and outstanding 3.0 3.0
Additional paid in capital 71.1 3.0
Retained earnings 1,074.1 1,242.0
Accumulated other comprehensive (loss) income (268.3) 52.9
--------- --------
Total stockholder equity 879.9 1,300.9
--------- --------
Total liabilities and stockholder equity $23,429.7 28,849.0
========= ========
See accompanying notes to consolidated financial statements.
</TABLE>
2
<PAGE>
<PAGE>
<TABLE>
General American Life Insurance Company and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in millions)
<CAPTION>
Years ended December 31
-----------------------
1999 1998 1997
-------- ------- -------
<S> <C> <C> <C>
REVENUES
- -------------------------------------------------------
Insurance premiums $2,207.6 2,028.0 1,671.3
Other considerations 183.2 173.6 135.8
Net investment income 1,157.2 1,135.8 945.5
Ceded commissions 21.7 39.9 44.9
Other income 386.0 323.0 362.3
Net realized investment (losses) gains (200.6) 13.7 28.5
-------- ------- -------
Total revenues 3,755.1 3,714.0 3,188.3
-------- ------- -------
BENEFITS AND EXPENSES
- -------------------------------------------------------
Policy benefits 1,978.4 1,832.9 1,517.7
Interest credited to policyholder account balances 533.9 516.8 399.4
-------- ------- -------
Total policyholder benefits 2,512.3 2,349.7 1,917.1
Dividends to policyholders 191.6 192.1 182.1
Policy acquisition costs 154.0 240.7 171.1
Other insurance and operating expenses 917.5 713.7 712.8
Interest expense 17.7 17.9 20.2
Demutualization expense 13.3 - -
Fees to exit funding agreement business 141.4 - -
-------- ------- -------
Total benefits and expenses 3,947.8 3,514.1 3,003.3
-------- ------- -------
(Loss) income before provision for income taxes (192.7) 199.9 185.0
-------- ------- -------
Income tax (benefit) provision:
Current (23.6) 35.2 65.8
Deferred (40.7) 18.4 (0.1)
-------- ------- -------
Total income tax (benefit) provision (64.3) 53.6 65.7
-------- ------- -------
(Loss) income before minority interest (128.4) 146.3 119.3
Minority interest in earnings of consolidated subsidiaries (24.8) (29.2) (22.1)
-------- ------- -------
Net (loss) income $ (153.2) 117.1 97.2
======== ======= =======
See accompanying notes to consolidated financial statements.
</TABLE>
3
<PAGE>
<PAGE>
<TABLE>
General American Life Insurance Company and Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(dollars in millions)
<CAPTION>
Years ended December 31
-----------------------
1999 1998 1997
------- ----- -----
<S> <C> <C> <C>
Net (loss) income $(153.2) 117.1 97.2
Other comprehensive (loss) income (321.2) (54.0) 75.6
------- ----- -----
Comprehensive (loss) income $(474.4) 63.1 172.8
======= ===== =====
See accompanying notes to consolidated financial statements.
</TABLE>
4
<PAGE>
<PAGE>
<TABLE>
General American Life Insurance Company and Subsidiaries
CONSOLIDATED STATEMENTS OF STOCKHOLDER EQUITY
(dollars in millions)
<CAPTION>
ACCUMULATED
OTHER
ADDITIONAL COMPREHENSIVE TOTAL
COMMON PAID-IN RETAINED (LOSS) STOCKHOLDER
STOCK CAPITAL EARNINGS INCOME EQUITY
------ ---------- -------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Balance at December 31, 1996 $ - - 966.5 31.3 997.8
Net income 97.2 97.2
Other comprehensive income 75.6 75.6
Issuance of common stock 3.0 3.0 (6.0) -
Dividend to parent (4.5) (4.5)
Other, net 4.4 4.4
---- ---- ------- ------ -------
Balance at December 31, 1997 3.0 3.0 1,057.6 106.9 1,170.5
Net income 117.1 117.1
Other comprehensive loss (54.0) (54.0)
Parent's share of subsidiary's
issuance of non-voting stock 68.6 68.6
Other, net (1.3) (1.3)
---- ---- ------- ------ -------
Balance at December 31, 1998 3.0 3.0 1,242.0 52.9 1,300.9
Net loss (153.2) (153.2)
Other comprehensive loss (321.2) (321.2)
Parent's share of subsidiaries'
capital stock transactions 25.3 25.3
Capital contribution from parent 68.1 68.1
Dividends (40.0) (40.0)
---- ---- ------- ------ -------
Balance at December 31, 1999 $3.0 71.1 1,074.1 (268.3) 879.9
==== ==== ======= ====== =======
See accompanying notes to consolidated financial statements.
</TABLE>
5
<PAGE>
<PAGE>
<TABLE>
General American Life Insurance Company and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
<CAPTION>
Years ended December 31
-----------------------
1999 1998 1997
--------- ------- -------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
- ----------------------------------------------------------------
Net (loss) income $ (153.2) 117.1 97.2
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Change in:
Accrued investment income 50.9 (37.4) (20.6)
Reinsurance recoverables and
other contract deposits 463.9 496.1 203.7
Deferred policy acquisition costs (165.9) (102.1) (113.0)
Other assets (39.5) (172.1) (61.8)
Future policy benefits 406.2 655.5 693.1
Policy and contract claims 111.0 132.5 105.5
Other liabilities and accrued expenses (78.1) 48.2 319.8
Deferred income tax provision (40.7) 18.4 (0.1)
Policyholder considerations (183.2) (173.6) (135.8)
Interest credited to policyholder account balances 533.9 516.8 399.4
Amortization and depreciation (32.5) 34.6 32.7
Net realized investment losses (gains) 200.6 (13.7) (28.5)
Other, net 12.0 7.4 0.4
--------- ------- -------
Net cash provided by operating activities 1,085.4 1,527.7 1,492.0
--------- ------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
- ----------------------------------------------------------------
Proceeds from investments sold or redeemed:
Fixed maturities available-for-sale 10,891.4 2,027.4 2,070.7
Mortgage loans 1,442.8 370.4 594.2
Equity securities 10.3 2.1 31.6
Cost of investments purchased:
Fixed maturities available-for-sale (8,110.5) (4,251.1) (4,463.1)
Mortgage loan originations (800.2) (594.5) (439.0)
Equity securities (19.2) (17.4) (47.3)
Maturity of fixed maturities available-for-sale 310.6 145.3 281.7
Increase in policy loans, net (92.9) (77.9) (153.4)
Increase in short-term and other invested assets, net (521.8) (215.2) (130.4)
Investments in subsidiaries 81.3 (24.5) (6.0)
--------- ------- -------
Net cash provided by (used in) investing activities 3,191.8 (2,635.4) (2,261.0)
--------- ------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
- ----------------------------------------------------------------
Net policyholder account and contract (withdrawals) deposits (4,186.7) 1,108.8 1,024.5
Proceeds from subsidiary stock offering 124.9 221.8 -
Issuance of debt - 2.3 1.9
Repayment of debt (0.7) (0.4) (80.6)
Dividends (45.8) (3.8) (2.1)
Other, net 28.9 27.5 46.8
--------- ------- -------
Net cash (used in) provided by financing activities (4,079.4) 1,356.2 990.5
--------- ------- -------
Effect of exchange rate changes 1.1 (16.3) (5.3)
--------- ------- -------
Net increase in cash and cash equivalents 198.9 232.2 216.2
Cash and cash equivalents at beginning of year 591.1 358.9 142.7
--------- ------- -------
Cash and cash equivalents at end of year $ 790.0 591.1 358.9
========= ======= =======
See accompanying notes to consolidated financial statements.
</TABLE>
6
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
(1) BASIS OF PRESENTATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
ACQUISITION BY METLIFE
On January 6, 2000, Metropolitan Life Insurance Company (MetLife),
headquartered in New York City, purchased 100% of GenAmerica Corporation
(GenAmerica), General American Life Insurance Company's (General American
or the Company) parent, for $1.2 billion in cash. The acquisition was a
result of liquidity problems encountered by General American.
On August 10, 1999, at management's request, the Missouri Department of
Insurance placed the Company under an order of administrative supervision
(the order). The immediate cause of the order was the Company's inability
to immediately satisfy approximately $4 billion in institutional funding
agreement contract surrenders. The funding agreements guaranteed the
holder a return on principal at a stated interest rate for a specified
period of time. The contracts also allowed the holder to "put" the
contract to the Company for a payout of principal and interest within
designated time periods of 7, 30 or 90 days. The Company had reinsured 50%
of the funding agreement contracts with ARM Financial Group, Inc. (ARM).
In July 1999, Moody's Investors Services, Inc. downgraded the claims paying
ability rating of ARM due to the relative illiquidity of certain of its
invested assets, which resulted in the Company recapturing the obligations
and assets related to the funding agreements reinsured by ARM. As a result
of the recapture, Moody's downgraded the Company's claims paying ability
rating. Upon announcement of the downgrade, a large number of funding
agreement holders surrendered their contracts. The Company was unable to
liquidate sufficient assets in an orderly fashion without incurring
significant losses and therefore management requested the order.
In connection with the acquisition, MetLife offered each holder of a
General American funding agreement the option to exchange its funding
agreement for a MetLife funding agreement with substantially identical
terms and conditions or receive cash equal to the principal amount plus
accrued interest. In consideration of this exchange offer, the Company
transferred to MetLife assets having a market value equal to the market
value of the funding agreement liabilities, approximately $5.7 billion.
As a result of its efforts to raise liquidity to meet the funding agreement
requests and the transfer of assets to MetLife, the Company incurred
approximately $214.7 million in pretax capital losses. In addition to the
capital losses, the Company incurred $141.4 million in fees associated with
the recapture and transfer of the funding agreement business. With the
transfer, the Company fully exited the funding agreement business.
GenAmerica will operate as a wholly-owned stock subsidiary of MetLife.
The $1.2 billion purchase price was paid to GenAmerica's parent General
American Mutual Holding Company (GAMHC) and deposited in an account for the
benefit of the Company's policyholders. Ultimately, these funds, minus
adjustments, will be distributed to participating General American
policyholders, with accumulated interest and GAMHC will be dissolved.
7
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
REORGANIZATION
In September 1996, the Board of Directors of General American adopted the
Plan which authorized the reorganization (Reorganization) of the Company
into a mutual insurance holding company structure. The Missouri Department
of Insurance held a public hearing on the Reorganization on December 19,
1996 and approved the Plan on January 24, 1997. The policyholders of the
Company approved the Plan on January 28, 1997 and the Reorganization became
effective on April 24, 1997 (effective date). The Company was the first
company to obtain approval and to form a mutual insurance holding company
under the Missouri Mutual Holding Company Statute.
Pursuant to the Reorganization, the Company (i) formed GAMHC as a mutual
insurance holding company under the insurance laws of the State of
Missouri, (ii) formed GenAmerica as an intermediate stock holding company
under the general laws of the State of Missouri, and (iii) amended and
restated its Charter and Articles of Incorporation to authorize the
issuance of capital stock and the continuance of its existence as a stock
life insurance company under the same name. GAMHC may, among other things,
elect all of the directors of GenAmerica and approve matters submitted for
shareholder approval. As of the effective date of the Reorganization, the
membership interests and the contractual rights of the policyholders of the
Company were separated - the membership interests automatically became, by
operation of law, membership interests in GAMHC and the contractual rights
remained with the Company. Each person who became the owner of a
designated policy or contract of insurance or annuity issued by the Company
after the effective date of the Reorganization (subject to certain
exceptions and conditions set forth in the Articles of Incorporation of
GAMHC) became a member of GAMHC and had a membership interest in GAMHC by
operation of law so long as such policy or contract remains in force. The
membership interests in GAMHC follow, and are not severable, from the
insurance or annuity policy or contract from which the membership interest
in GAMHC is derived.
On the effective date, the Company issued three million shares of its
authorized shares of capital stock to GAMHC. GAMHC then contributed all of
these to GenAmerica in exchange for one thousand shares of its common
stock. As a result, GenAmerica directly owned the Company, and GAMHC
indirectly owned the Company, through GenAmerica. The Reorganization was
accounted for at historical cost in a manner similar to a pooling of
interests.
The consolidated financial statements include the assets, liabilities, and
results of operations of the Company and the following wholly owned
insurance subsidiaries: Cova Corporation (COVA), an insurance holding
company, Paragon Life Insurance Company, Security Equity Life Insurance
Company, General Life Insurance Company of America, General Life Insurance
Company (GLIC), GenAm Benefits Insurance Company, and its 48.3 percent
owned subsidiary, Reinsurance Group of America, Incorporated (RGA), an
insurance holding company. In addition, the financial statements include
the assets, liabilities, and results of operations of the following wholly
owned non-insurance subsidiaries: Red Oak Realty Company, White Oak
Royalty Company, GenMark, Inc., and its 60.4 percent owned subsidiary,
Conning Corporation (Conning).
The Company's principal lines of business, conducted through General
American or one of its subsidiaries, are: Individual Life Insurance,
Annuities, Group Life and Health Insurance, Asset Management, and
Reinsurance. The Company distributes its products and services primarily
through a nationwide network of general agencies, independent brokers, and
group sales and claims offices. The Company and its subsidiaries are
licensed to do business in all fifty states, ten Canadian provinces, Puerto
Rico, and the District of Columbia. Through its subsidiaries, the Company
has operations in Europe, Pacific Rim countries, Latin America, and Africa.
INITIAL PUBLIC OFFERING
In December 1997, Conning successfully completed an Initial Public Offering
of 2.875 million shares of its common stock. Conning received net proceeds
of approximately $34.5 million from the offering. The
8
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
Company owned 60.4 and 62.7 percent of the total shares outstanding of
Conning's common stock at December 31, 1999 and 1998 respectively. The
publicly held stock of Conning is listed on the NASDAQ National Market
System.
OTHER OFFERINGS
At RGA's annual stockholders' meeting on May 27, 1998, a new class of non-
voting common stock was authorized. In June 1998, RGA completed a
secondary public offering in which it sold 7,417,500 million shares of non-
voting common stock traded on the New York Stock Exchange under the symbol
RGA.A. The offering provided net proceeds of approximately $221.8 million,
which have been utilized to finance the continued growth of RGA's
operations domestically and internationally. After the subsequent
offering, the Company's ownership percentage decreased from 63.8% to 53.3%.
On September 14, 1999 RGA held a special shareholder's meeting at which an
amendment to its restated articles of incorporation, as amended, was
approved which converted 7,417,496 shares of non-voting common stock into
7,194,971 shares of voting common stock, with cash paid in lieu of any
fractional shares. After the non-voting stock conversion, the Company's
ownership percentage was 53.5%.
On November 23, 1999, RGA completed a private placement of securities in
which it sold 4,784,689 shares of its common stock, $0.01 par value per
share to MetLife. The price per share was $26.125, and the aggregate value
of the transaction was approximately $125 million. Proceeds from the
private placement will be used for general corporate purposes, including
the immediate capital needs associated with the Company's primary
businesses. After the private offering, the Company's ownership percentage
was 48.3%.
SIGNIFICANT ACCOUNTING POLICIES
The accompanying consolidated financial statements are prepared on the
basis of generally accepted accounting principles (GAAP) and include the
accounts of the Company and its majority owned subsidiaries. Less than
majority-owned entities in which the Company has at least a 20 percent
interest are reported on the equity basis. The Company continues to
consolidate the financial statements of RGA even though its ownership
percentage has declined to below 50 percent since the Company has retained
control of RGA through a majority representation on RGA's Board of
Directors at December 31, 1999 and through January 6, 2000. All
significant intercompany accounts and transactions have been eliminated in
consolidation. The preparation of financial statements requires the use of
estimates by management, which affect the amounts reflected in the
financial statements. Actual results could differ from those estimates.
Accounts that the Company deems to be sensitive to changes in estimates
include future policy benefits and policy and contract claims, deferred
acquisition costs, and investment and deferred tax valuation allowances.
The significant accounting policies of the Company are as follows:
RECOGNITION OF REVENUE
For traditional life insurance policies, including participating
businesses, premiums are recognized when due, less allowances for estimated
uncollectible balances. For limited payment contracts, net premiums are
recorded as revenue, and the difference between the gross premium and the
net premium is deferred and recognized in income in a constant relationship
to insurance in force over the estimated policy life.
For universal life and annuity products, contract charges for mortality,
surrender, and expense, other than front-end expense charges, are reported
as income when charged to policyholders' accounts.
Other income represents the fees generated from the Company's non-insurance
operations, primarily service and contract fees relating to concessions,
asset management, system development, and third-party administration.
Amounts are recognized when earned.
9
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
INVESTED ASSETS
FIXED MATURITIES AND EQUITY SECURITIES: All of the Company's securities are
classified as available-for-sale. Fixed maturities available-for-sale are
reported at fair value and are so classified based on the possibility that
such securities could be sold prior to maturity if that action enables the
Company to execute its investment philosophy and appropriately match
investment results to operating and liquidity needs. Equity securities are
carried at fair value.
Realized gains or losses on the sale of securities are determined on the
basis of specific identification. Unrealized gains and losses are
recorded, net of related income tax effects as well as related adjustments
to deferred acquisition costs, in accumulated other comprehensive income, a
separate component of stockholder equity.
The Company recognizes its proportionate share of the resultant gains or
losses on the issuance or repurchase of its subsidiaries' stock as a direct
credit or charge to retained earnings.
MORTGAGE LOANS: Mortgage loans on real estate are stated at an unpaid
principal balance, net of unamortized discounts, and valuation allowances
for possible impairment in value. The Company discontinues the accrual of
interest on mortgage loans which are more than 90 days delinquent.
Interest received on nonaccrual mortgage loans is generally reported as
interest income.
POLICY LOANS, REAL ESTATE AND OTHER INVESTED ASSETS: Policy loans are
carried at an unpaid principal balance and are generally secured by the
cash surrender value of the underlying contracts. Investment real estate
which the Company intends to hold for the production of income is carried
at depreciated cost, net of writedowns for other than temporary declines in
fair value and encumbrances. Properties held for sale (primarily acquired
through foreclosure) are carried at the lower of depreciated cost (fair
value at foreclosure plus capital additions less accumulated depreciation
and encumbrances) or fair value. Adjustments to carrying value of
properties held for sale are recorded in a valuation reserve when the fair
value is below depreciated cost. The accumulated depreciation and
encumbrances on real estate amounted to $44.0 million and $52.4 million at
December 31, 1999 and 1998, respectively. Direct valuation allowances
amounted to $4.7 million and $7.3 million at December 31, 1999 and 1998,
respectively. Other invested assets are principally recorded at fair
value.
SHORT-TERM INVESTMENTS: Short-term investments, consisting primarily of
money market instruments and other debt issues purchased with an original
maturity of less than a year, are carried at amortized cost, which
approximates fair value.
INVESTED ASSET IMPAIRMENT AND VALUATION ALLOWANCES: Invested assets are
considered impaired when the Company determines that collection of all
amounts due under the contractual terms is doubtful. The Company adjusts
invested assets to their estimated net realizable value at the point at
which it determines an impairment is other than temporary. In addition,
the Company has established valuation allowances for mortgage loans and
other invested assets. Valuation allowances for other than temporary
impairments in value are netted against the asset categories to which they
apply. Additions to valuation allowances are included in realized gains
and losses.
10
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
CASH AND CASH EQUIVALENTS: For purposes of reporting cash flows, cash and
cash equivalents represent cash, demand deposits, and highly liquid short-
term investments, which include U.S. Treasury bills, commercial paper, and
repurchase agreements with original or remaining maturities of 90 days or
less when purchased.
INVESTMENT INCOME
Fixed maturity premium and discounts are amortized into income using the
scientific yield method over the term of the security. Amortization of the
premium or discount on mortgage-backed securities is recognized using a
scientific yield method which considers the estimated timing and amount of
prepayments of underlying mortgage loans. Actual prepayment experience is
periodically reviewed and effective yields are adjusted when differences
arise between the prepayments originally anticipated and the actual
prepayments received and those prepayments currently anticipated. When
such differences occur, the net investment in the mortgage-backed security
is adjusted to the amount that would have existed had the new effective
yield been applied since the acquisition of the security with a
corresponding charge or credit to interest income (the "retrospective
method").
POLICY AND CONTRACT LIABILITIES
For traditional life insurance policies, future policy benefits are
computed using a net level premium method taking into account actuarial
assumptions as to mortality, persistency, and interest established at
policy issue. Assumptions established at policy issue as to mortality and
persistency are based on industry standards and the Company's historical
experience which, together with interest and expense assumptions, provide a
margin for adverse deviation. Interest rate assumptions generally range
from 2.5 percent to 11.0 percent. When the liabilities for future policy
benefits plus the present value of expected future gross premiums are
insufficient to provide for expected policy benefits and expenses,
unrecoverable deferred policy acquisition costs are written off and
thereafter a premium deficiency reserve is established through a charge to
earnings.
For participating policies, future policy benefits are computed using a net
level premium method based on the guaranteed cash value basis for mortality
and interest. Mortality rates are similar to those used for statutory
valuation purposes. Interest rates generally range from 2.5 percent to 6.0
percent. Dividend liabilities are established when earned.
Policyholder account balances for universal life and annuity policies are
equal to the policyholder account value before deduction of any surrender
charges. The policyholder account value represents an accumulation of
gross premium payments plus credited interest less expense, mortality
charges, and withdrawals. These expense charges are recognized in income
as earned.
The range of weighted average interest crediting rates used by the
Company's life insurance subsidiaries were as follows:
1999 1998 1997
Universal life 4.00-8.00% 5.25-7.10% 6.00-7.10%
Annuities 3.00-9.10% 4.00-9.20% 5.70-9.30%
Accident and health benefits for active lives are calculated using the net
level premium method and assumptions as to future morbidity, withdrawals,
and interest, which provide a margin for adverse deviation. Benefit
liabilities for disabled lives are calculated using the present value of
future benefits and experience assumptions for claim termination, expense,
and interest which also provide a margin for adverse deviation.
11
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
POLICY AND CONTRACT CLAIMS
The Company establishes a liability for unpaid claims based on estimates of
the ultimate cost of claims incurred, which is comprised of aggregate case
basis estimates, average claim costs for reported claims, and estimates of
incurred but not reported losses based on past experience. Policy and
contract claims include a provision for both life and accident and health
claims. Management believes the liabilities for unpaid claims are adequate
to cover the ultimate liability; however, due to the underlying risks and
the high degree of uncertainty associated with the determination of the
liability for unpaid claims, the amounts which will ultimately be paid to
settle these liabilities cannot be precisely determined and may vary from
the estimated amount included in the consolidated balance sheets.
DEFERRED POLICY ACQUISITION COSTS
The costs, which vary with and are primarily related to the production of
new and renewal business, have been deferred to the extent that such costs
are deemed recoverable from future profitability of the underlying
business. Such costs include commissions, premium taxes, as well as
certain other costs of policy issuance and underwriting.
For limited payment and other nonparticipating traditional life insurance
policies, the deferred policy acquisition costs are amortized, with
interest, in proportion to the ratio of the expected annual premium revenue
to the expected total premium revenue. Expected future premium revenue is
estimated utilizing the same assumptions used for computing liabilities for
future policy benefits for these policies.
For participating life insurance, universal life, and annuity type
contracts, the deferred policy acquisition costs are amortized over a
period of not more than thirty years in relation to the present value of
estimated gross profits arising from interest margin, cost of insurance,
policy administration, and surrender charges.
The range of average rates of assumed interest used by the Company's
insurance subsidiaries in estimated gross margins were as follows:
1999 1998 1997
Participating life 7.76% 8.25% 8.17%
Universal life 6.00-9.20% 6.25-7.50% 6.25-7.79%
Annuities 3.00-7.00% 7.00-7.83% 7.00-7.84%
The estimates of expected gross margins are evaluated regularly and are
revised if actual experience or other evidence indicates that revision is
appropriate. Upon revision, total amortization recorded to date is
adjusted by a charge or credit to current earnings. Deferred policy
acquisition costs are adjusted for the impact on estimated gross margins as
if the net unrealized gains and losses on securities had actually been
realized.
REINSURANCE AND OTHER CONTRACT DEPOSITS
In the normal course of business, the Company seeks to limit its exposure
to loss on any single insured by ceding risks to other insurance
enterprises or reinsurers under various types of contracts including
coinsurance and excess coverage. The Company's retention level per
individual life ranges between $50 thousand and $2.5 million depending on
the entity writing the policy.
The Company assumes and retrocedes financial reinsurance contracts, which
represent low mortality risk reinsurance treaties. These contracts are
reported as deposits and are included in other contract deposits in the
consolidated balance sheets. The amount of revenue reported on these
contracts represents fees and the cost of insurance under the terms of the
reinsurance agreement.
12
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
Reinsurance activities are accounted for consistent with terms of the
underlying contracts. Premiums ceded to other companies have been reported
as a reduction of premiums. Amounts applicable to reinsurance ceded for
future policy benefits and claim liabilities have been reported as assets
for these items, and commissions and expense allowances received in
connection with reinsurance ceded have been accounted for in income as
earned. Reinsurance does not relieve the Company from its primary
responsibility to meet claim obligations. The Company evaluates the
financial conditions of its reinsurers annually.
FEDERAL INCOME TAXES
The Company and certain of its U.S. subsidiaries file consolidated federal
income tax returns. Any acquired life insurance company is not included in
the consolidated return until the acquired company has been a member of the
consolidated group for five years. Prior to satisfying the five-year
requirement, the subsidiary files a separate federal return. RGA Barbados,
a subsidiary of RGA, also files a U.S. tax return. The Company's foreign
subsidiaries are taxed under applicable local statutes. No deferred tax
liabilities have been recognized for the foreign subsidiaries per
Accounting Principles Board (APB) Opinion 23, Accounting for Income Taxes -
Special Areas.
The Company uses the asset and liability method to record deferred income
taxes. Accordingly, deferred tax assets and liabilities are recognized
for the future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and
their respective tax bases, using enacted tax rates, expected to apply to
taxable income in the years in which those temporary differences are
expected to be recovered or settled. The Company has not recognized a
deferred tax liability for the excess of financial statement carrying
amount over the tax basis of its less-than-80 percent owned domestic
subsidiaries as the tax law provides a means by which the reported amount
of that investment can be recovered tax-free and the Company expects that
it will ultimately use that means.
SEPARATE ACCOUNT BUSINESS
The assets and liabilities of the separate account represent segregated
funds administered and invested by the Company for purposes of funding
variable life insurance and annuity contracts for the exclusive benefit of
the contractholders.
The Company charges the separate account for cost of insurance and
administrative expense associated with a contract and charges related to
early withdrawals by contractholders. The assets and liabilities of the
separate account are carried at fair value. The Company's participation in
the separate account (seed money) is carried at fair value in the separate
account, and amounted to $27.2 million and $19.9 million at December 31,
1999 and 1998, respectively.
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value estimates are made at a specific point in time, based on
relevant market information and information about the financial instrument.
These estimates do not reflect any premium or discount that could result
from offering for sale at one time the Company's entire holdings of a
particular financial instrument. Although fair value estimates are
calculated using assumptions that management believes are appropriate,
changes in assumptions could significantly affect the estimates and such
estimates should be used with care. The following assumptions were used to
estimate the fair value of each class of financial instrument for which it
was practicable to estimate fair value:
INVESTMENT SECURITIES: Fixed maturities are valued using quoted market
prices, if available. For securities not actively traded, fair values are
estimated using values obtained from independent pricing services or in the
case of private placements are estimated by discounting expected future
cash flows using a current market rate applicable to the yield, credit
quality, and maturity of investments. The fair values of equity securities
are based on quoted market prices.
13
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
DERIVATIVES: Derivatives are valued using quoted market prices, if
available. For derivatives not actively traded, fair values are estimated
using values obtained from independent pricing services.
MORTGAGE LOANS: The fair values of mortgage loans are estimated using
discounted cash flow analyses and interest rates currently being offered
for similar loans to borrowers with similar credit ratings. Loans with
similar characteristics are aggregated for purposes of the calculations.
POLICY LOANS: The fair value of policy loans approximates the carrying
value. The majority of these loans are indexed, with a yield tied to a
stated return.
POLICYHOLDER ACCOUNT BALANCES ON INVESTMENT TYPE CONTRACTS: Fair values for
the Company's liabilities under investment-type contracts are estimated
using cash surrender values. For contracts with no defined maturity date,
the carrying value approximates fair value.
PENSION FUNDS AND INTEREST SENSITIVE CONTRACT LIABILITIES: Fair values for
the Company's interest sensitive contract liabilities are estimated using
cash surrender values. For contracts with no defined maturity date, the
carrying value approximates fair value.
SEPARATE ACCOUNT ASSETS AND LIABILITIES: The separate account assets and
liabilities are carried at fair value as determined by the market value of
the underlying segregated investments.
SHORT-TERM INVESTMENTS AND CASH AND CASH EQUIVALENTS: The carrying amount
approximates fair value.
LONG-TERM DEBT AND NOTES PAYABLE: The fair value of long-term debt and
notes payable is estimated using discounted cash flow calculations based on
interest rates currently being offered for similar instruments.
Refer to Note 3 & Note 4 for additional information on fair value of
financial instruments.
NEW ACCOUNTING STANDARDS
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards (SFAS) No. 133, Accounting for Derivative
Instruments and Hedging Activities, effective for fiscal years beginning
after June 15, 2000, and is effective for interim periods in the initial
year of adoption. SFAS No. 133 requires companies to record derivatives on
the balance sheet as assets or liabilities, measured at fair value. It
also requires that gains or losses resulting from changes in the values of
those derivatives be reported depending on the use of the derivative and
whether it qualifies for hedge accounting. The Company has not yet
determined the effect of the implementation of SFAS No. 133 on the results
of operation, financial position, or liquidity. The Company plans to adopt
the provisions of SFAS No. 133 in 2001.
RECLASSIFICATION
The Company has reclassified the presentation of certain prior period
information to conform to the 1999 presentation.
(2) ACQUISITIONS AND DIVESTITURES
On September 30, 1999, the Company sold its 100 percent ownership in
Consultec, LLC to ACS Enterprise Solutions, Inc. Proceeds received net of
expenses were $65.7 million and the realized gain, net of tax, on the sale
was $28.4 million.
14
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
(3) INVESTMENTS
Fixed Maturities and Equity Securities
The amortized cost and estimated fair value of fixed maturities and equity
securities at December 31, 1999 and 1998 are as follows (in millions):
<TABLE>
<CAPTION>
1999
- ---------------------------------------------------------------------------------------------
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
--------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
Available-for-sale:
U. S. Treasury securities $ 88.6 0.2 (4.8) 84.0
Government agency
obligations 686.8 55.3 (54.8) 687.3
Corporate securities 4,298.6 104.6 (318.2) 4,085.0
Mortgage-backed securities 970.3 1.2 (106.7) 864.8
Asset-backed securities 1,441.5 1.0 (337.5) 1,105.0
-------- ----- ------ -------
Total fixed maturities
available-for-sale $7,485.8 162.3 (822.0) 6,826.1
======== ===== ====== =======
Equity securities $ 42.7 9.5 (2.9) 49.3
======== ===== ====== =======
<CAPTION>
1998
- ---------------------------------------------------------------------------------------------
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
--------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
Available-for-sale:
U. S. Treasury securities $ 20.7 0.4 -- 21.1
Government agency
obligations 1,151.5 122.5 (11.2) 1,262.8
Corporate securities 6,889.9 380.1 (164.1) 7,105.9
Mortgage-backed securities 1,812.4 34.0 (38.5) 1,807.9
Asset-backed securities 861.7 13.1 (4.2) 870.6
--------- ----- ------ --------
Total fixed maturities
available-for-sale $10,736.2 550.1 (218.0) 11,068.3
========= ===== ====== ========
Equity securities $ 39.1 9.5 -- 48.6
========= ===== ====== ========
</TABLE>
The Company manages its credit risk associated with fixed maturities by
diversifying its portfolio. At December 31, 1999, the Company held no
corporate debt securities or foreign government debt securities of a
single issuer, which had a carrying value in excess of ten percent of
stockholder equity.
15
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
The amortized cost and estimated fair value of fixed maturity
investments at December 31, 1999 are shown by contractual maturity for
all securities except, U.S. Government agencies mortgage-backed
securities which are distributed by maturity year based on the Company's
estimate of the rate of future prepayments of principal over the
remaining lives of the securities (in millions). These estimates are
developed using prepayment speeds provided in broker consensus data.
Such estimates are derived from prepayment speed experience at the
interest rate levels projected for the applicable underlying collateral
and can be expected to vary from actual experience. Expected maturities
may differ from contractual maturities because borrowers may have the
right to call or prepay obligations with or without call or prepayment
penalties.
ESTIMATED
AMORTIZED FAIR
COST VALUE
--------- ---------
Due in one year or less $ 147.8 149.0
Due after one year through five years 1,122.9 1,086.1
Due after five years through ten years 1,641.7 1,482.9
Due after ten years through twenty years 3,603.1 3,243.3
Mortgage-backed securities 970.3 864.8
-------- -------
Total $7,485.8 6,826.1
======== =======
The sources of net investment income follow (in millions):
1999 1998 1997
-------- ------- -----
Fixed maturities $ 749.6 744.3 561.7
Mortgage loans 175.4 188.8 194.5
Real estate 25.0 25.7 34.1
Equity securities 2.0 1.2 1.3
Policy loans 144.9 152.2 148.3
Short-term investments 46.5 22.4 16.6
Other 33.0 18.9 14.0
-------- ------- -----
Investment revenue 1,176.4 1,153.5 970.5
Investment expenses (19.2) (17.7) (25.0)
-------- ------- -----
Net investment income $1,157.2 1,135.8 945.5
======== ======= =====
16
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
Net realized gains (losses) from sales of investments consist of the
following (in millions):
1999 1998 1997
------- ----- -----
Fixed maturities:
Realized gains $ 70.4 19.0 24.0
Realized losses (330.8) (14.0) (16.8)
Equity securities:
Realized gains 48.2 2.0 1.8
Realized losses (0.4) (0.2) (1.5)
Other investments, net 12.0 6.9 21.0
------- ----- -----
Net realized investment gains $(200.6) 13.7 28.5
======= ===== =====
Included in net realized losses are permanent write-downs of
approximately $67.6 million and $5.5 million during 1999 and 1998,
respectively.
A summary of the components of the net unrealized appreciation
(depreciation) on invested assets carried at fair value is as follows
(in millions):
1999 1998
------- ------
Unrealized (depreciation) appreciation:
Fixed maturities available-for-sale $(659.7) 332.1
Equity securities 6.6 9.5
Derivatives (33.8) (5.3)
Effect of unrealized appreciation (depreciation) on:
Deferred policy acquisition costs 186.0 (155.7)
Present value of future profits 14.6 (0.5)
Deferred income taxes 169.7 (69.1)
Other 1.5 (2.9)
Minority interest, net of taxes 69.4 (19.6)
------- ------
Net unrealized (depreciation) appreciation $(245.7) 88.5
======= ======
The Company has securities on deposit with various state insurance
departments and regulatory authorities with an amortized cost of
approximately $881.8 million and $545.7 million at December 31, 1999 and
1998, respectively.
The Company's credit review procedures are designed to promote timely
identification of investments that require a higher-than-normal degree
of scrutiny. Each quarter a review is performed of impaired assets.
Factors considered in the evaluation include the collateral values,
credit quality of the issuer, amount of the exposure, our ability to
reduce exposure in situations of deteriorating credit worthiness, and
loss probabilities. Once a charge-off is taken, income is no longer
accrued, all cash is applied to principal. The Company's total impaired
assets amount to $31.8 million and $35.6 million at December 31, 1999
and 1998, respectively.
17
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
MORTGAGE LOANS
The Company originates mortgage loans on income-producing properties,
such as apartments, retail and office buildings, light warehouses, and
light industrial facilities. Loan to value ratios at the time of loan
approval are 75 percent or less. The Company minimizes risk through a
thorough credit approval process and through geographic and property
type diversification.
During 1999, the Company entered into an agreement whereby approximately
$625.6 million of mortgage loans were sold by the Company for
securitization and resale by a financial institution as mortgage pass-
through certificates. The sale of these mortgage loans resulted in a
net gain of approximately $0.6 million. These amounts are reflected
within net investment income in the consolidated statement of
operations.
The Company's mortgage loans were distributed as follows (in millions):
<TABLE>
<CAPTION>
1999 1998
-------------------- --------------------
PERCENT PERCENT
CARRYING OF CARRYING OF
VALUE TOTAL VALUE TOTAL
-------------------- --------------------
<S> <C> <C> <C> <C>
Arizona $ 125.6 7.4% $ 167.6 7.1%
California 298.0 17.4 395.3 16.6
Colorado 150.5 8.8 228.1 9.6
Florida 134.0 7.9 171.6 7.2
Georgia 137.6 8.1 176.1 7.4
Illinois 91.9 5.4 162.2 6.8
Maryland 78.2 4.6 102.9 4.3
Missouri 98.1 5.7 93.5 3.9
Texas 157.8 9.2 197.4 8.3
Washington 69.1 4.0 99.6 4.2
Other 367.2 21.5 581.7 24.6
-------------------- --------------------
Subtotal 1,708.0 100.0% 2,376.0 100.0%
===== =====
Valuation reserve (29.1) (38.5)
-------- --------
Total $1,678.9 $2,337.5
======== ========
<CAPTION>
1999 1998
-------------------- --------------------
PERCENT PERCENT
CARRYING OF CARRYING OF
VALUE TOTAL VALUE TOTAL
-------------------- --------------------
<S> <C> <C> <C> <C>
Property type:
Apartment $ 143.0 8.4% $ 77.1 3.2%
Retail 490.8 28.7 872.2 36.7
Office building 604.6 35.4 747.8 31.5
Industrial 391.6 22.9 422.6 17.8
Other commercial 78.0 4.6 256.3 10.8
-------------------- --------------------
Subtotal 1,708.0 100.0% 2,376.0 100.0%
===== =====
Valuation reserve (29.1) (38.5)
-------- --------
Total $1,678.9 $2,337.5
======== ========
</TABLE>
18
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
An impaired loan is measured at the present value of expected future
cash flows or, alternatively, the observable market price or the fair
value of the collateral.
Mortgage loans which have been non-income producing for the preceding
twelve months were $6.5 million and $20.1 million at December 31, 1999
and 1998, respectively. At December 31, 1999 and 1998, the recorded
investment in mortgage loans that were considered impaired was $48.8
million and $100.7 million, respectively, with related allowances for
credit losses of $4.0 million and $12.6 million, respectively. The
average recorded investment in impaired loans during 1999 and 1998 was
$74.8 million and $110.2 million, respectively.
For the years ended December 31, 1999, 1998, and 1997, the Company
recognized $3.6 million, $6.8 million, and $9.7 million, respectively,
of interest income on those impaired loans, which included $3.6 million,
$7.0 million, and $9.9 million, respectively, of interest income
recognized using the cash basis method of income recognition.
As of December 31, 1999, the Company has outstanding fixed rate
Commercial mortgage loan commitments totaling $68.9 million with a
market value of $67.0 million at rates ranging from 7.125% to 8.50%, and
total variable rate commitments totaling $143.3 million with a market
value of $140.9 million.
SECURITIES LENDING
The Company participates in a securities lending program. In the
Company's agreements, collateral is held on certain fixed maturity
securities loaned to other institutions through a lending agreement.
The minimum collateral on securities loaned is 102% of the market value
of the loaned securities, marked to market daily. The Company retains
full ownership of the loaned securities and is indemnified by the
lending agent in the event a borrower becomes insolvent or fails to
return the securities. The amount on loan at December 31, 1999 and 1998
was $60.3 million and $122.5 million, respectively, and was
appropriately collateralized.
DERIVATIVES
The Company has a variety of reasons to use derivative instruments, such
as to attempt to protect the Company against possible changes in the
market value of its portfolio as a result of interest rate changes and
to manage the portfolio's effective yield, maturity, and duration. The
Company does not invest in derivatives for speculative purposes. Upon
disposition, a realized gain or loss is recognized accordingly, except
when exercising an option contract or taking delivery of a security
underlying a futures contract. In these instances, the recognition of
gain or loss is postponed until the disposal of the security underlying
the option of futures contract.
Summarized below are the specific types of derivative instruments used
by the Company:
INTEREST RATE SWAPS: The Company manages interest rate risk on certain
contracts, primarily through the utilization of interest rate swaps.
Under interest rate swaps, the Company agrees with counterparties to
exchange, at specified intervals, the payments between floating and
fixed-rate interest amounts calculated by reference to notional amounts.
Net interest payments are recognized within net investment income in the
consolidated statements of operations.
At December 31, 1999, the Company had 19 outstanding interest rate swap
agreements which expire at various dates through 2024. Under 18 of the
agreements, the Company receives a fixed rate ranging from 6.065 percent
to 6.842 percent on a notional amount of $1.5 billion and pays a
floating rate based on London Interbank Offered Rate (LIBOR). Under the
remaining outstanding interest rate swap agreement, the Company receives
a floating rate based on LIBOR on a notional amount of $2 million and
pays a fixed rate of 6.495 percent. The estimated fair value of the
agreements at December 31, 1999 was a net loss of approximately $33.8
million, which is recognized in accumulated other comprehensive income.
19
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
At December 31, 1998, the Company had 35 outstanding interest rate swap
agreements which expire at various dates through 2025. Under 19
outstanding interest rate swap agreements, the Company receives a
floating rate based on LIBOR on a notional amount of $116.0 million and
pays a fixed rate ranging from 3.13 percent to 8.56 percent. Under 15
of the agreements, the Company receives a fixed rate ranging from 5.79
percent to 7.57 percent on a notional amount of $80.5 million and pays a
floating rate based on LIBOR. On the remaining swap agreement, the
Company receives a floating rate based on LIBOR on a notional amount of
$5 million and pays a floating rate based on LIBOR. The estimated fair
value of the agreements at December 31, 1998 was a net loss of
approximately $4.7 million, which is recognized in accumulated other
comprehensive income.
CURRENCY, SWAPS AND CROSS CURRENCY SWAPS: Under foreign currency swaps,
the Company agrees with other parties to exchange at specified
intervals, the difference between two currencies on an exchange rate
basis the interest amounts calculated by reference to an agreed notional
principal amount. Under cross currency swaps, the Company swaps the
difference between two currencies and between floating and fixed-rate
interest amounts calculated by reference to notional amounts. The
Company uses this technique for foreign denominated assets to match
dollar denominated liabilities of various fixed income products. Net
interest payments are recognized within net investment income in the
consolidated statements of operations.
At December 31, 1999, the Company held no currency or cross currency
swaps. At December 31, 1998 the Company had one outstanding currency
swap agreement and five outstanding cross currency swaps which expire at
various dates through 2016. The notional amount was $34.2 million. The
1998 estimated fair value of the agreements was a net loss of $5.5
million and is recognized in accumulated other comprehensive income.
TOTAL RETURN SWAP: The Company uses the total return swap to construct a
structured product that resembles an equity linked note. The total
return swap is used to obtain equity participation. The Company agrees
with other parties to pay at specified intervals, floating-rate interest
amounts calculated by reference to an agreed notional principal amount.
In return the Company receives equity participation, which is calculated
by reference to an agreed equity market index and a notional principal
amount. If the amount is positive at the termination date, the Company
receives such amount. If the amount is negative at the termination date,
the Company pays out such amount to the counterparty.
At December 31, 1999, the Company held no total return swap agreements.
At December 31, 1998, the Company had one outstanding total return swap,
which expires in 2028. The notional amount was $14.0 million and the
estimated fair value of the agreement was a net profit of $1.9 million,
which is recognized in accumulated other comprehensive income.
FUTURES: A futures contract is an agreement involving the delivery of a
particular asset on a specified future date at an agreed upon price.
The Company generally invests in futures on U.S. Treasury Bonds, U.S.
Treasury Notes, and the S&P 500 Index and typically closes the contract
prior to the delivery date. These contracts are generally used to manage
the portfolio's effective maturity and duration.
At December 31, 1999, the Company held no futures contracts. At
December 31, 1998, futures contracts outstanding were as follows (in
millions):
Net Sold Notional Fair Unrealized
Position Amount Value Gain
-------- -------- ----- -----------
(0.3) $33.1 $32.9 $0.2
The 1998 unrealized gain was recognized in accumulated other
comprehensive income.
20
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
The Company is exposed to credit related risk in the event of
nonperformance by counterparties to financial instruments but does not
expect any counterparties to fail to meet their obligations. Where
appropriate, master netting agreements are arranged and collateral is
obtained in the form of rights to securities to lower the Company's
exposure to credit risk. It is the Company's policy to deal only with
highly rated companies. At December 31, 1999 and 1998, there were not
any significant concentrations with counterparties.
(4) FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of a financial instrument is the amount at which the
instrument could be exchanged in a current transaction between willing
parties. The following table presents the carrying amounts and estimated
fair values of the Company's financial instruments at December 31, 1999
and 1998 (in millions). Refer to Note 3 for the estimated fair values
of the Company's derivative instruments.
<TABLE>
<CAPTION>
1999 1998
-------------------- --------------------
ESTIMATED ESTIMATED
CARRYING FAIR CARRYING FAIR
VALUE VALUE VALUE VALUE
-------------------- --------------------
<S> <C> <C> <C> <C>
Assets:
Fixed maturities $6,826.1 6,826.1 11,068.3 11,068.3
Mortgage loans 1,678.9 1,691.7 2,337.5 2,472.5
Policy loans 2,243.9 2,243.9 2,151.0 2,151.0
Short-term investments 292.4 292.4 195.3 195.3
Other invested assets 898.8 898.8 457.6 457.6
Separate account assets 6,915.6 6,915.6 5,214.8 5,214.8
Liabilities:
Policyholder account balances
relating to investment
Contracts $5,179.4 5,279.8 5,044.8 4,929.7
Pension funds and other
interest sensitive liabilities 556.8 551.2 7,581.3 7,592.0
Long-term debt and
notes payable 216.6 209.8 221.9 216.6
Separate account liabilities 6,892.0 6,892.0 5,194.9 5,194.9
======== ======= ======== ========
</TABLE>
(5) REINSURANCE
The Company is a reinsurer to the life and health industry. The effect
of reinsurance on premiums and other considerations is as follows
(in millions):
<TABLE>
<CAPTION>
1999 1998 1997
-------- ------- -------
<S> <C> <C> <C>
Direct $1,139.5 1,210.8 1,159.1
Assumed 1,667.7 1,422.3 996.9
Ceded (416.4) (431.5) (348.9)
-------- ------- -------
Net insurance premiums and other
considerations $2,390.8 2,201.6 1,807.1
======== ======= =======
</TABLE>
21
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
(6) FEDERAL INCOME TAXES
Income tax (benefit) expense attributable to income from operations
consists of the following (in millions):
<TABLE>
<CAPTION>
1999 1998 1997
------ ---- ----
<S> <C> <C> <C>
Current income tax (benefit) expense $(23.6) 35.2 65.8
Deferred income tax (benefit) expense (40.7) 18.4 (0.1)
------ ---- ----
Provision for income taxes $(64.3) 53.6 65.7
====== ==== ====
</TABLE>
Income tax (benefit) expense attributable to income from operations
differed from the amounts computed by applying the U.S. federal
income tax rate of 35 percent to pre-tax income as a result of
the following (in millions):
<TABLE>
<CAPTION>
1999 1998 1997
------ ----- ----
<C> <C> <C> <C>
Computed "expected" tax (benefit) expense $(67.4) 70.0 64.8
Increase (decrease) in income tax resulting
from:
Surplus (benefit) tax on mutual life
insurance companies - (7.5) 5.3
Foreign tax rate in excess of U.S. tax
rate 1.0 0.8 0.6
Tax preferred investment income (11.4) (10.9) (6.6)
State tax net of federal benefit 1.7 1.6 0.8
Corporate owned life insurance (3.3) (3.6) -
Foreign tax credit - (1.3) (0.6)
Goodwill amortization 1.9 1.5 1.0
Difference in book vs. tax basis in
domestic subsidiaries 1.6 2.8 2.2
Valuation allowance for loss
carryforwards 5.7 - -
Capitalized acquisition costs 2.4 - -
Other, net 3.5 0.2 (1.8)
------ ---- ----
Provision for income taxes $(64.3) 53.6 65.7
====== ==== ====
</TABLE>
Total income taxes were allocated as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------- ----- -----
<S> <C> <C> <C>
Provision for income taxes $ (64.3) 53.6 65.7
Income tax from stockholder equity:
Unrealized investment (loss) gain
recognized for financial reporting
purposes (237.0) (22.6) 55.9
Foreign currency translation 7.8 (9.4) (12.1)
Other (2.4) (1.4) (0.5)
------- ----- -----
Provision for income taxes $(295.9) 20.2 109.0
======= ===== =====
</TABLE>
22
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
The tax effects of temporary differences that give rise to significant
portions of deferred tax assets and liabilities at December 31, 1999
and 1998 are presented below (in millions):
<TABLE>
<CAPTION>
1999 1998
------ -----
<S> <C> <C>
Deferred tax assets:
Reserve for future policy benefits $158.9 90.9
Deferred acquisition costs capitalized for tax 147.4 128.8
Employee benefits 41.5 28.2
Investments 46.2 -
Net operating and capital loss 57.2 46.8
Unrealized loss on investments 163.9 -
Other, net 95.5 98.5
------ -----
Gross deferred tax assets 710.6 393.2
Less valuation allowance 7.2 1.5
------ -----
Total deferred tax assets after valuation allowance $703.4 391.7
====== =====
<CAPTION>
1999 1998
------- -----
<S> <C> <C>
Deferred tax liabilities:
Unrealized gain on investments $ - 79.1
Deferred acquisition costs capitalized for financial
reporting 385.0 274.5
Investments - 3.7
Other, net 120.8 109.8
------- -----
Total deferred tax liabilities 505.8 467.1
------- -----
Total deferred tax (asset) liability $(197.6) 75.4
======= =====
</TABLE>
The Company has not recognized a deferred tax liability for the
undistributed earnings of its wholly owned domestic and foreign
subsidiaries because the Company currently does not expect those
unremitted earnings to become taxable to the Company in the foreseeable
future. In addition, the Company has not recognized a deferred tax
liability of approximately $106 million for the excess of financial
statement carrying amount over the tax basis of its less-than-80-percent
owned domestic subsidiaries. This is because the unremitted earnings of
foreign subsidiaries will not be repatriated in the foreseeable future,
or because the excess of the financial statement carrying amount over
the tax basis of its less-that-80 percent owned domestic subsidiaries
will not become taxable as the tax law provides a means by which the
reported amount of that investment can be recovered tax-free and the
Company expects that it will ultimately use that means.
The Company believes that it is more likely than not that the deferred
tax assets established will be realized except for the amount of the
valuation allowance. As of December 31, 1999 and 1998, the Company has
provided for a 100 percent valuation allowance against the deferred tax
asset related to the net operating losses of the Company's foreign
subsidiaries including RGA's Australian, Argentine, South African and UK
subsidiaries and NaviSys' Mexican subsidiary. At December 31, 1999, the
Company's subsidiaries had capital loss carryforwards of $89.4 million,
and net operating loss carryforwards of $146.7 million. The capital and
net operating losses are expected to be utilized during the period
allowed for carryforwards.
23
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
The Company has been audited by the Internal Revenue Service for the
years through and including 1994. The Company is currently being
audited for the years 1995 and 1996. The Company believes that any
adjustments that might be required for open years will not have a
material effect on the Company's consolidated financial statements.
During 1999, 1998, and 1997 the Company paid income taxes totaling
approximately $77.0 million, $59.6 million, and $70.8 million,
respectively.
(7) DEFERRED POLICY ACQUISITION COSTS
A summary of the policy acquisition costs deferred and amortized is as
follows (in millions):
<TABLE>
<CAPTION>
1999 1998 1997
-------- ------ ------
<S> <C> <C> <C>
Balance at beginning of year $ 773.8 695.3 652.3
Transfer of present value of future profits -- -- 19.3
Prior year adjustment due to change in
reserving methods -- (0.2) --
Policy acquisition costs deferred 324.6 332.9 267.0
Policy acquisition cost amortized (214.4) (280.0) (211.9)
Interest credited 60.4 39.3 40.8
Deferred policy acquisition costs relating to
change in unrealized (gain) loss on
investments available-for-sale 341.7 (13.5) (72.2)
-------- ------ ------
Balance at end of year $1,286.1 773.8 695.3
======== ====== ======
</TABLE>
(8) ASSOCIATE BENEFIT PLANS AND POSTRETIREMENT BENEFITS
The Company has a defined benefit plan covering substantially all
associates. The benefits are based on years of service and each
associate's compensation level. The Company's funding policy is to
contribute annually the maximum amount deductible for federal income tax
purposes. Contributions provide for benefits attributed to service to
date and for those expected to be earned in the future.
Associates of the Company also are offered several non-qualified,
defined benefit, and defined contribution plans for directors and
management associates. The plans are unfunded and are deductible for
federal income tax purposes when the benefits are paid. Effective April
30, 1999, the liabilities that relate to these plans are managed at
GenAmerica Management Corporation, a subsidiary of GenAmerica. The
Company recognized expense of $12.9 million, $8.2 million, and $7.7
million for the years ended December 31, 1999, 1998, and 1997,
respectively, related to these plans.
In addition to pension benefits, the Company provides certain health
care and life insurance benefits for retired employees. Substantially
all employees may become eligible for these benefits if they reach
retirement age while working for the Company. Alternatively, retirees
may elect certain prepaid health care benefit plans.
The Company uses the accrual method to account for the costs of its
retiree plans and amortizes its transition obligation for retirees and
fully eligible or vested employees over 20 years. The unamortized
transition obligation was $13.4 million and $14.4 million at December
31, 1999 and 1998, respectively.
24
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
The Board of Directors has adopted an associate incentive plan
applicable to full-time salaried associates with at least one year of
service. Contributions to the plan are determined annually by the Board
of Directors and are based upon salaries of eligible associates. Full
vesting occurs after five years of continuous service. The Company's
contribution to the plan was $4.3 million, $10.4 million, and $10.4
million for 1999, 1998, and 1997 respectively.
At December 31, 1999, plan assets were invested 79.2% in the S&P Stock
Fund, 6.9% in the Small-Cap Stock Fund, 9.1% in the Separately Managed
Account Fund, and 4.8% in the Long-Term Bond Fund. At December 31, 1998
plan assets were invested 70.1% in the S&P 500 Stock Fund, 7.4% in the
Small-Cap Stock Fund, 17.3% in the Separately Managed Account Fund, and
5.2% in the Long-Term Bond Fund. These assets are invested in General
American separate accounts and held in a trust by an unrelated third
party administrator.
The following tables summarize the Company's associate benefit plans and
postretirement benefits (in millions):
<TABLE>
<CAPTION>
Pension Benefits Other Benefits
------------------ -----------------
1999 1998 1999 1998
------ ----- ----- ----
<S> <C> <C> <C> <C>
Change in benefit obligation:
Benefit obligation at beginning of year $149.1 129.8 $45.7 37.7
Service cost 6.5 5.8 1.7 1.7
Interest cost 10.3 9.2 2.8 2.9
Participant contributions -- -- 0.2 0.2
Plan amendments 0.3 (0.4) -- (1.3)
Curtailments 2.4 -- -- --
Special termination benefits 1.2 -- -- --
Benefits paid (8.0) (6.6) (1.9) (1.4)
Actuarial (gain) loss (1.9) 11.3 (7.8) 5.9
------ ----- ----- ----
Benefit obligation at end of year 159.9 149.1 40.7 45.7
------ ----- ----- ----
Change in plan assets:
Fair value of plan assets at
beginning of year 174.8 150.5 -- --
Actual return on plan assets 10.5 29.2 -- --
Employer contributions 2.1 1.7 1.7 1.2
Associates contributions -- -- 0.2 0.2
Benefits paid (8.0) (6.6) (1.9) (1.4)
------ ----- ----- ----
Fair value of plan assets at end of year $179.4 174.8 $-- --
====== ===== ===== ====
</TABLE>
25
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
<TABLE>
<CAPTION>
Pension Benefits Other Benefits
1999 1998 1997 1999 1998 1997
------ ----- ----- ------ ----- -----
<S> <C> <C> <C> <C> <C> <C>
Reconciliation of funded status:
Funded status $ 19.4 25.7 20.7 $(40.7) (45.7) (37.7)
Unrecognized actuarial gain (12.3) (14.5) (8.2) (9.6) (1.9) (7.8)
Unrecognized transition
obligation 0.2 0.3 1.1 13.4 14.4 16.8
Unrecognized prior service
cost (0.3) (0.8) (2.2) -- -- --
------ ----- ----- ------ ----- -----
Net amount recognized at end
of year 7.0 10.7 11.4 (36.9) (33.2) (28.7)
------ ----- ----- ------ ----- -----
Amounts recognized in the
statement of financial
position consist of:
Prepaid benefit cost 40.6 37.9 35.9 -- -- --
Accrued benefit liability (38.2) (32.2) (28.2) (36.9) (33.2) (28.7)
Intangible asset 0.1 0.9 0.9 -- -- --
Accumulated other
comprehensive loss 4.5 4.1 2.8 -- -- --
------ ----- ----- ------ ----- -----
Net amount recognized at end
of year $ 7.0 10.7 11.4 $(36.9) (33.2) (28.7)
====== ===== ===== ====== ===== =====
Other comprehensive loss
(income) attributable to
change in additional
minimum liability
recognition $ 0.3 1.3 (0.5) $ -- -- --
====== ===== ===== ====== ===== =====
</TABLE>
26
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
<TABLE>
<CAPTION>
Pension Benefits Other Benefits
1999 1998 1997 1999 1998 1997
------ ----- ----- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Additional year-end
information for plans with
benefit obligations in
excess of plan assets:
Benefit obligation 47.6 36.6 32.2 40.7 45.7 37.7
Additional year-end
information for pension
plans with accumulated
benefit obligations in
excess of plan assets:
Projected benefit
obligation 40.5 36.6 32.2 -- -- --
Accumulated benefit
obligation 37.8 32.1 28.0 -- -- --
Fair value of plan assets 0.1 0.1 -- -- -- --
====== ===== ===== ==== ==== ====
Components of net periodic
benefit cost:
Service cost 6.5 5.8 5.9 1.7 1.7 1.7
Interest cost 10.3 9.2 8.6 2.8 2.9 2.5
Expected return on plan
assets (15.3) (13.2) (11.1) -- -- --
Amortization of prior
service cost (0.1) (0.1) 0.1 -- -- --
Amortization of
transitional
obligation 0.1 0.1 0.3 1.0 1.0 1.1
Recognized actuarial
loss (gain) 0.6 0.4 0.4 (0.1) -- (0.2)
------ ----- ----- ---- ---- ----
Net periodic benefit cost $ 2.1 2.2 4.2 5.4 5.6 5.1
====== ===== ===== ==== ==== ====
Additional loss recognized due to:
Curtailment $ 2.3 0.1 -- -- -- --
Special Termination Benefit 1.4 -- -- -- -- --
====== ===== ===== ==== ==== ====
Weighted-average assumptions as
of December 31:
Discount rate 7.50% 6.75% 7.25% 7.50% 6.75% 7.25%
Expected long-term rate of
return on plan assets 9.00% 9.00% 9.00% -- -- --
Rate of compensation
increase (qualified plan) 4.95% 4.20% 4.20% -- -- --
====== ===== ===== ==== ==== ====
</TABLE>
27
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
ASSUMED HEALTH CARE COST TREND: For measurement purposes, a 7.0% annual
rate of increase in the per capita cost of covered health care benefits
was assumed for 1999. The rate assumed to decrease gradually to 5% for
2003 and remain at that level thereafter.
Assumed health care cost trend rates have a significant effect on the
amounts reported for the health care plan. A one-percentage point change
in assumed health care cost trend rates would have the following effects
(in thousands):
One Percentage One Percentage
Point Increase Point Decrease
-------------- --------------
Effect on total service and interest cost
components for 1999 $0.9 (0.7)
Effect on end of year 1999
postretirement benefit obligation $5.8 (4.7)
(9) DEBT
The Company's long-term debt and notes payable consists of the
following (in millions):
<TABLE>
<CAPTION>
Face Value at December 31,
Description Rate Maturity 1999 1998
- ----------- ---- -------- ---- ----
<S> <C> <C> <C> <C>
Long-term debt:
General American surplus note 7.625% January 2024 $107.0 107.0
RGA senior note 7.250% April 2006 100.0 100.0
Notes payable:
RGA Australia Hldgs. 5.180% April 2000 9.5 8.9
------ -----
Total long-term debt and notes payable $216.5 215.9
====== =====
</TABLE>
The difference between the face value of debt and the carrying value per
the consolidated balance sheets is unamortized discount.
General American's surplus note pays interest on January 15 and July 15
of each year. The note is not subject to redemption prior to maturity.
Payment of principal and interest on the note may be made only with the
approval of the Missouri Director of Insurance.
The RGA senior note pays interest semiannually on April 1 and October 1.
The ability of RGA to make debt principal and interest payments as well
as make dividend payments to shareholders is ultimately dependent on the
earnings and surplus of its subsidiaries and the investment earnings on
the undeployed debt proceeds. The transfer of funds from the insurance
subsidiaries to RGA is subject to applicable insurance laws and
regulations. Principal repayments are due in April 2000 and are
expected to be renewed under the terms of the line of credit. This
agreement contained various restrictive covenants which primarily
pertain to limitations on the quality and types of investments, minimum
requirements of net worth, and minimum rating requirements.
Interest paid on debt during 1999, 1998, and 1997 amounted to $17.8
million, $17.0 million, and $20.0 million, respectively.
As of December 31, 1999, the Company was in compliance with all
covenants under its debt agreements.
28
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
(10) COMPREHENSIVE INCOME
In June 1997, the Financial Accounting Standards Board issued SFAS No.
130, Reporting Comprehensive Income, effective for years beginning after
December 15, 1997. SFAS No. 130 establishes standards for reporting and
display of comprehensive income but does not affect results of
operations. Effective January 1, 1998, the Company adopted SFAS No. 130.
The components of comprehensive income, other than net income, are as
follows (in millions):
<TABLE>
<CAPTION>
1999
---------------------------------------------
TAX NET-
BEFORE-TAX (EXPENSE) OF-TAX
AMOUNT BENEFIT AMOUNT
---------------------------------------------
<S> <C> <C> <C>
Foreign currency translation adjustments $ 19.5 (6.8) 12.7
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during
period (753.1) 266.9 (486.2)
Less: Reclassification adjustment for gains
(losses) realized in net income (233.5) 81.5 (152.0)
---------------------------------------------
Net unrealized gains (losses) on securities (519.6) 185.4 (334.2)
Minimum benefit liability (1.0) 1.3 0.3
---------------------------------------------
Total other comprehensive (loss) income $(501.1) 179.9 (321.2)
=============================================
<CAPTION>
1998
---------------------------------------------
TAX NET-
BEFORE-TAX (EXPENSE) OF-TAX
AMOUNT BENEFIT AMOUNT
---------------------------------------------
<S> <C> <C> <C>
Foreign currency translation adjustments $(20.6) 7.2 (13.4)
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during
period (56.6) 19.3 (37.3)
Less: Reclassification adjustment for gains
(losses) realized in net income 4.7 (1.7) 3.0
--------------------------------------------
Net unrealized gains (losses) on securities (61.3) 21.0 (40.3)
Minimum benefit liability (0.3) -- (0.3)
--------------------------------------------
Total other comprehensive (loss) income $(82.2) 28.2 (54.0)
============================================
</TABLE>
29
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
<TABLE>
<CAPTION>
1997
---------------------------------------------
TAX NET-
BEFORE-TAX (EXPENSE) OF-TAX
AMOUNT BENEFIT AMOUNT
---------------------------------------------
<S> <C> <C> <C>
Foreign currency translation adjustments $(14.3) 10.6 (3.7)
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during
period 132.3 (49.1) 83.2
Less: Reclassification adjustment for gains
(losses) realized in net income 7.4 (2.6) 4.8
---------------------------------------------
Net unrealized gains (losses) on securities 124.9 (46.5) 78.4
Minimum benefit liability 0.9 -- 0.9
---------------------------------------------
Total other comprehensive (loss) income $111.5 (35.9) 75.6
=============================================
</TABLE>
The following schedule reflects the change in net accumulated other
comprehensive (loss) income for the periods ending December 31, 1999
and 1998 (in millions):
<TABLE>
<CAPTION>
CURRENT
BALANCE AS PERIOD BALANCE AS
OF 12/31/98 CHANGE OF 12/31/99
----------- ------- -----------
<S> <C> <C> <C>
Foreign currency adjustments $(32.9) 12.7 (20.2)
Unrealized gains (losses) on securities 88.5 (334.2) (245.7)
Minimum benefit liability (2.7) 0.3 (2.4)
----------- ------- -----------
Total accumulated other comprehensive
(loss) income $ 52.9 (321.2) (268.3)
----------- ------- -----------
<CAPTION>
CURRENT
BALANCE AS PERIOD BALANCE AS
OF 12/31/97 CHANGE OF 12/31/98
----------- ------- -----------
<S> <C> <C> <C>
Foreign currency adjustments $(19.5) (13.4) (32.9)
Unrealized gains (losses) on securities 128.8 (40.3) 88.5
Minimum benefit liability (2.4) (0.3) (2.7)
----------- ------- -----------
Total accumulated other comprehensive
(loss) income $106.9 (54.0) 52.9
=========== ======= ===========
</TABLE>
30
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
(11) REGULATORY MATTERS
The Company and its insurance subsidiaries are subject to financial
statement filing requirements in their respective state of domicile, as
well as the states in which they transact business. Such financial
statements, generally referred to as statutory financial statements, are
prepared on a basis of accounting which varies in some respects from
GAAP. Statutory accounting practices include: (1) charging of policy
acquisition costs to income as incurred; (2) establishment of a
liability for future policy benefits computed using required valuation
standards; (3) nonprovision of deferred federal income taxes resulting
from temporary differences between financial reporting and tax bases of
assets and liabilities; (4) recognition of statutory liabilities for
asset impairments and yield stabilization on fixed maturity dispositions
prior to maturity with asset valuation reserves based on statutorily
determined formulas; and (5) valuation of investments in bonds at
amortized cost.
Combined net income and policyholders' surplus of the Company and its
consolidated insurance subsidiaries, for the years ended and at December
31, 1999, 1998, and 1997, as determined in accordance with statutory
accounting practices, are as follows (in millions):
1999 1998 1997
------- ------- -----
Net (loss) income $(190.8) 60.8 39.7
Policyholders' surplus 741.3 1,147.4 844.1
======= ======= =====
For the year ended December 31, 1999, General American has changed its
method for recording equity in earnings of subsidiaries on a statutory
basis to reflect such earnings as a direct charge or credit to surplus,
and not a component of investment income.
Under Risk-Based Capital (RBC) requirements, General American and its
insurance subsidiaries are required to measure their solvency against
certain parameters. As of December 31, 1999, the Company's insurance
subsidiaries exceeded the established RBC minimums. In addition, the
Company's insurance subsidiaries exceeded the minimum statutory capital
and surplus requirements of their respective states of domicile.
The Company's insurance subsidiaries are subject to limitations on the
payment of dividends to the Company. Generally, dividends during any
year may not be paid without prior regulatory approval, in excess of the
lessor of (and with respect to life and health subsidiaries in Missouri,
in excess of the greater of): (a) ten percent of the insurance
subsidiaries' statutory surplus as of the preceding December 31 or (b)
the insurance subsidiaries' statutory gain from operations for the
preceding year.
31
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
(12) PARTICIPATING POLICIES AND DIVIDENDS TO POLICYHOLDERS
Over 18.9 percent and 22.8 percent of the Company's business in force
relates to participating policies as of December 31, 1999 and 1998,
respectively. These participating policies allow the policyholders to
receive dividends based on actual interest, mortality, and expense
experience for the related policies. These dividends are distributed to
the policyholders through an annual dividend, using current dividend
scales which are approved by the Board of Directors.
(13) CONTINGENT LIABILITIES
The Company was named as a defendant in a lawsuit that was filed in 1996
in Arizona State Court. The lawsuit claimed benefits under a disability
policy and damages for bad faith termination of such benefits. In
November 1998, the jury entered a verdict against the Company, awarding
the plaintiff approximately $59 million in damages, including $58
million in punitive damages. In January 1999, the Company filed a motion
for judgment notwithstanding the verdict, a motion for a new trial, and
a request for reduction of the punitive damages awarded. The Trial
Court reduced the punitive damage award to $18 million. The Company has
appealed the verdict and the award of the Court.
The Company was named as a defendant in a lawsuit filed in a federal
district court in Phoenix, Arizona along with Paul Revere Life Insurance
Company. The lawsuit claimed that Paul Revere denied benefits which was
a breach of the implied duty of good faith and that both companies were
liable due to being in a joint venture relationship. The jury found for
the plaintiff and assessed punitive damages against the company in the
sum of $10.2 million and against Paul Revere in the sum of $6.8 million.
Both companies have filed post-trial motions aimed at setting aside the
jury verdict and/or reducing the jury awards. The Company intends to
vigorously appeal the verdict if it is allowed to stand.
The Company was named as defendant in the following purported class
action lawsuits: Chain v. General American Life Insurance Company (filed
in the U.S. District Court for the Northern District of Mississippi in
1996); Newburg Trust v. General American Life Insurance Company (filed
in the U.S. District Court for the District of Massachusetts in 1996);
and Ludwig, Sippil, DAllesandro and Cunningham v. General American Life
Insurance Company (filed in the U.S. District Court for the Southern
District of Illinois in 1997). These lawsuits allege that the Company
engaged in deceptive sales practices in connection with the sale of
certain life insurance policies. None of these lawsuits has been
certified as a class action. Although the claims asserted in each
lawsuit are not identical, the plaintiffs seek unspecified actual and
punitive damages under similar claims, including breach of contract,
fraud, intentional or negligent misrepresentation, breach of fiduciary
duty and unjust enrichment. The Company filed a motion to dismiss all
of the claims in each of the lawsuits. The Court in each of these
lawsuits has dismissed certain of the plaintiffs' claims while allowing
others to proceed. These three cases have been consolidated with one
individual case in the U.S. District Court for the Eastern District of
Missouri. The Company has negotiated a settlement agreement with counsel
for plaintiffs which resolves all matters concerning the relief for the
class. There is, however, no agreement on the attorneys' fees or
expenses of class counsel. This settlement is in the process of being
finalized. It will then be submitted to the Court for review and
approval along with the issue of attorneys' fees and expenses. If the
settlement is not approved the Company intends to continue to oppose the
lawsuits vigorously.
In addition to the matters discussed above, the Company is involved in
pending and threatened litigation in the normal course of its business.
While the outcome of these matters cannot be predicted with certainty,
at the present time and based on information currently available,
management does not believe that the Company's liability arising from
pending or threatened litigation will have a material adverse affect on
the Company's financial condition or results of operations.
32
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
(14) RELATED PARTY TRANSACTIONS
In 1999, GenAmerica made capital contributions to the Company of $38.0
million, $10.1 million of NaviSys Incorporated's (NaviSys) equity, and
$20.0 million of NaviSys' bonds. The $38.0 million contribution
consisted of a promissory note from ARM, and was expensed by the Company
after it became uncollectible.
The following related party transactions occurred in the connection with
MetLife's acquisition of GenAmerica.
The Company paid and expensed approximately $20 million to MetLife
as consideration for MetLife's willingness to accept the funding
agreement business of General American as described in Note 1.
The Company paid $40 million to MetLife during 1999 which
ultimately was returned to GAMHC at the closing on January 6,
2000. This transaction has been recorded as a dividend by the
Company to GAMHC in the accompanying financial statements.
Subsequent to December 31, 1999 an additional $40 million was paid
to MetLife on behalf of GAMHC.
During 1999, GenAmerica paid and expensed $12 million of
investment advisory fees for which GAMHC and GenAmerica were
jointly and severably liable.
RGA also has reinsurance transactions between MetLife and certain of its
subsidiaries. Under these agreements, RGA reflected earned premiums of
approximately $108 million and $113 million in 1999 and 1998,
respectively. The earned premiums reflect the net of business assumed
from and ceded to MetLife and its subsidiaries. Underwriting gain
(loss) on this business was approximately $12 million and $13 million in
1999 and 1998, respectively.
(15) SUBSEQUENT EVENTS
On January 1, 2000, the Company exited the Group Health business through
the Asset Purchase Agreement and related reinsurance arrangements with
Great-West Life & Annuity Insurance Company (Great-West). This
agreement also includes any life business that is directly associated to
the health business.
The Company is required to reimburse Great-West for up to $10 million in
net operating losses incurred during 2000. These amounts have been
fully accrued in the 1999 consolidated financial statements of the
Company. The Company must also compensate Great-West for certain
receivables related to this business should they be deemed uncollectible.
On January 18, 2000, MetLife proposed to acquire all of Conning's
outstanding shares of common stock not already controlled by MetLife for
$10.50 per share in cash. MetLife acquired a beneficial interest of
approximately 61% in Conning as a result of its January 6, 2000
acquisition of GenAmerica. Conning has received MetLife's proposal and
the Conning Board of Directors is evaluating the proposed transaction.
33
<PAGE>
<PAGE>
General American Life Insurance Company and Subsidiaries
On January 24, 2000, Conning announced that it had learned of a
complaint purporting to be a shareholder class action suit that has been
filed in the Supreme Court of the State of New York, naming Conning and
MetLife as co-defendants. The complaint follows the January 18, 2000
announcement of MetLife's proposal to acquire all of the outstanding
shares of common stock not already controlled by MetLife for $10.50 per
share in cash. The complaint alleges that MetLife's proposal to acquire
the remaining equity interest in Conning fails to offer a fair price to
Conning's shareholders and lacks adequate procedural protections.
Additionally, the complaint alleges that as a result of MetLife's
proposal, the defendants have engaged in acts of self-dealing and
breeches of fiduciary duty in connection with the proposed transaction.
Conning was subsequently served with the complaint and believes the
plaintiff's claims are without merit.
34
<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
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
II-1
<PAGE>
<PAGE>
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.
REPRESENTATIONS PURSUANT TO SECTION 26(E)
General American Life Insurance Company hereby represents that the fees
and charges deducted under the Policies described in the prospectus are,
in the aggregate, reasonable in relation to the services rendered, the
expenses expected, and the risks assumed by General American Life
Insurance Company.
II-2
<PAGE>
<PAGE>
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following Papers and
Documents:
The facing sheet.
The Prospectus, consisting of 228 pages.
The undertaking to file reports required by Section 15(d)of the
1934 Act.
The undertaking pursuant to Rule 484 of the 1933 Act.
Representations pursuant to Section 26(e) of the 1940 Act.
The signatures.
The following exhibits:
1. The following exhibits 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<F2>
(2) Not applicable
(3) (a) Principal Underwriting Agreement<F2>
(b) Proposed form of Selling Agreement<F2>
(c) Commission Schedule<F2>
(4) Not applicable
(5) (a) Proposed form of Policy and Policy Riders<F3>
(6) (a) Amended Charter and Articles of Incorporation of
General American<F1>
(b) Amended By-Laws of General American<F1>
(7) Not applicable
(8) (a) Form of Agreement to Purchase Shares of General
American Capital Company<F2>
(b) Participation Agreement with Variable Insurance
Products Fund<F4>
(c) Form of Participation Agreement with Van Eck
Investment Trust<F3>
(d) General American's Undertaking pursuant to Rule 27d-2
is included as part of the Principal Underwriting
Agreement (see Exhibit 1.(3)(a))
(e) Form of Notice of Right of Cancellation and Refund<F3>
(f) Participation Agreement with Variable Insurance
Products Fund II<F4>
(g) Participation Agreement with SEI Insurance Products
Trust<F4>
(9) Not applicable
(10) (a) Form of Application for Policy<F3>
(b) Form of Application for Policy, Simplified Issue<F2>
(c) Form of Application for FRC-VUL Policy, Guaranteed
Issue<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<F2>
3. The following exhibits are numbered to correspond to the numbers
in the instructions as to exhibits for Form S-6.
(1) See above
II-3
<PAGE>
<PAGE>
(2) Opinion of Christopher A. Martin, Counsel of General
American<F3>
(3) No financial statements are omitted from the prospectus
pursuant to prospectus instructions 1(b) or (c).
4. Not applicable
5. Not applicable
[FN]
<F1> Incorporated by reference to the initial filing of Registration
Statement, File no. 333-53673 (JSVUL 98) filed on May 27, 1998.
<F2> Incorporated by reference to Post-Effective Amendment No. 16, File
No. 33-10146 (VUL 95), April 28, 2000.
<F3> Filed herewith.
<F4> Incorporated by reference to Post-Effective Amendment No. 3, File
No. 333-53477 (VUL 98), April 28, 2000.
II-4
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, General
American Life Insurance Company and General American Separate Account
Eleven represent that this Post-Effective Amendment meets all the
requirements for effectiveness under Rule 485(b) of that Act and have
duly caused this amended 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 28th
day of April 2000.
General American Separate
Account Eleven
(Seal)
General American Life
Insurance Company
Attest: /s/ Robert J. Banstetter /s/ Kevin C. Eichner
-------------------------- ------------------------------
Robert J. Banstetter, Kevin C. Eichner,
Secretary President
II-5
<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.
SIGNATURE TITLE DATE
/s/ Richard A. Liddy Chairman, and Chief 4/28/00
- ----------------------------- Executive Officer
Richard A. Liddy (Principal Executive
Officer)
/s/ Kevin C. Eichner President 4/28/00
- -----------------------------
Kevin C. Eichner
/s/ Barry C. Cooper Vice President 4/28/00
- ----------------------------- Controller
Barry C. Cooper (Principal Accounting
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 4/28/00
- -----------------------------
Richard A. Liddy
II-6
<PAGE>
<PAGE>
SIGNATURE TITLE DATE
- ----------------------------- Director
William E. Maritz<F*>
- ----------------------------- Director
Craig D. Schnuck<F*>
- ----------------------------- Director
William P. Stiritz<F*>
- ----------------------------- Director
Andrew C. Taylor<F*>
- ----------------------------- Director
Robert L. Virgil, Jr.<F*>
- ----------------------------- Director
Virginia V. Weldon<F*>
- ----------------------------- Director
Ted C. Wetterau<F*>
By: /s/ Christopher A. Martin
------------------------------
Christopher A. Martin 4/28/00
[FN]
<F*> Original powers of attorney authorizing the Registrant's Secretary
and Assistant Secretaries as well as Matthew P. McCauley, William L.
Hutton, and Christopher A. Martin to sign this Registration Statement
and Amendments thereto on behalf of the Board of Directors of General
American Life Insurance Company are incorporated by reference to Post-
Effective Amendment No. 3 to the Registration Statement, File No. 333-
53477 (VUL 98), April 28, 2000.
II-7
<PAGE>
<PAGE>
The Board of Directors
General American Life Insurance Company
Re: Variable Universal Life 100
We consent to the use of our reports included herein and to the
reference to our firm under the heading "Experts" in the Registration
Statement and Prospectus for General American Separate Account Eleven.
KPMG LLP
St. Louis, Missouri
April 28, 2000
II-8
<PAGE>
EXHIBIT 1.(5)(a)
<PAGE>
<PAGE>
GENERAL POLICY NUMBER:
AMERICAN
LIFE INSURANCE COMPANY
13045 TESSON FERRY RD.
ST. LOUIS, MISSOURI 63128 INSURED:
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
Flexible Premiums are payable during the lifetime of the Insured. If the
Insured dies while this policy is in force, we will pay the policy proceeds to
the beneficiary. We must receive proof of the Insured's death. The policy
must also be surrendered to us. Any payment will be subject to all of the
provisions and conditions on this and the following pages of this policy.
Participating annual dividends may be paid.
THE AMOUNT OF THE DEATH BENEFIT OR THE DURATION OF THE DEATH BENEFIT MAY
INCREASE OR DECREASE UNDER THE CONDITIONS DESCRIBED ON PAGES 4.01 AND 4.02.
THE POLICY'S CASH VALUE IN EACH INVESTMENT DIVISION OF THE SEPARATE ACCOUNT IS
BASED ON THE INVESTMENT EXPERIENCE OF THAT INVESTMENT DIVISION AND MAY
INCREASE OR DECREASE DAILY. IT IS NOT GUARANTEED AS TO DOLLAR AMOUNT. SEE
THE SEPARATE ACCOUNT PROVISION.
THE POLICY'S CASH VALUE IN THE GENERAL ACCOUNT WILL BE CREDITED WITH INTEREST
AT A MINIMUM GUARANTEED RATE AS SHOWN ON THE POLICY SPECIFICATIONS PAGE. WE
MAY CREDIT ADDITIONAL INTEREST IN EXCESS OF THE GUARANTEED RATE. SEE THE
GENERAL ACCOUNT CASH VALUE PROVISION.
RIGHT TO EXAMINE POLICY
Please read this policy. You may return this policy to us or to the agent
through whom it was purchased within 20 days from the date you receive it or
within 45 days after the application is signed, whichever period ends later.
If you return it within this period, the policy will be void from the
beginning. We will refund any premium paid.
This policy is a legal contract between the policyowner and General American.
PLEASE READ YOUR CONTRACT CAREFULLY. This cover sheet provides only a brief
outline of some of the important features of your policy. This cover sheet is
not the complete insurance contract and only the actual policy provisions will
control. The policy itself sets forth, in detail, the rights and obligations
of both you and your insurance company. IT IS, THEREFORE, IMPORTANT THAT YOU
READ YOUR POLICY.
Signed for the company at its Home Office, St. Louis, Missouri 63128.
(1-800-638-9294)
/s/ Robert J. Banstetter /s/ Richard A. Liddy
V.P., GENERAL COUNSEL CHAIRMAN, PRESIDENT
AND SECRETARY AND CEO
10098 0.01
(1/95)
<PAGE>
<PAGE>
ALPHABETIC GUIDE TO YOUR CONTRACT
Page
3.07 Addition, Deletion or Substitution of Investments
4.03 Allocation of Net Premiums
3.04 Assignments
6.08 Basis of Computation
3.02 Beneficiary
6.06 Cash Surrender Value
6.03 Cash Values
4.02 Change in Contract Type
4.02 Change in Face Amount
3.04 Change of Owner or Beneficiary
3.04 Claims of Creditors
3.04 Conformity with Statutes
4.01 Death Benefit
3.01 Definitions
6.01 Dividends
6.01 Dividend Options
6.03 General Account Cash Value
6.03 General Account Interest Rate
4.04 Grace Period
3.05 Incontestability
7.01 Interest on Proceeds
3.01 Issue Date
6.04 Loan Account Cash Value
Page
6.01 Loans
3.05 Misstatement of Age or Sex and Corrections
6.05 Monthly Cost of Insurance
6.06 Monthly Deduction
6.06 Monthly Policy Charge
6.04 Net Investment Factor
4.03 Net Premium
3.02 Owner
6.06 Partial Withdrawals
7.01 Payment of Policy Benefits
4.03 Payment of Premiums
4.02 Policy Changes
4.01 Policy Proceeds
6.08 Postponement of Payments
4.04 Reinstatement
3.04 Requests for Changes and/or Information
6.03 Separate Account Cash Value
3.06 Separate Account Provisions
3.04 Statements in Application
3.05 Suicide Exclusion
6.06 Surrender
3.07 Transfers
Additional Benefit Riders, Modifications and Amendments, if any, and a Copy of
the Application are found following the final section.
NOTICE OF ANNUAL MEETING
The annual meeting for the election of directors and the transaction of other
business for General American Mutual Holding Company is held each year at its
Home Office in St. Louis, Missouri. This meeting is at 11:00 a.m. on the fourth
Thursday in April. General American Mutual Holding Company is a mutual company
owned by its policyholders. Each policyholder is entitled to vote at such
elections and to participate in such meetings.
10098
(1/95) 0.02
<PAGE>
<PAGE>
POLICY SPECIFICATIONS
INSURED AGE 35
SEX MALE
CONTRACT TYPE OPTION C
MINIMUM FACE AMOUNT $50,000
PREMIUM TAX PERCENTAGE 3.35%
TARGET PREMIUM SURRENDER
CHARGE FACTOR 40%
EXCESS PREMIUM SURRENDER
CHARGE FACTOR 7.60%
GENERAL ACCOUNT CASH VALUE
GUARANTEED INTEREST RATE 4%
GENERAL ACCOUNT MAXIMUM
ALLOCATION PERCENT 100%
INSURED JOHN DOE
FACE AMOUNT $100,000
ISSUE DATE JANUARY 1, 1995
POLICY NUMBER 16,000,001
INITIAL ANNUAL PREMIUM $860.00
PLANNED ANNUAL PREMIUM $860.00
MONTHLY COST OF INSURANCE
FACTOR 1.0032737
MONTHLY POLICY CHARGE:
1ST YEAR $13.00
YEARS 2+ $6.00
DAILY INVESTMENT PERCENTAGE .0024548
MORTALITY AND EXPENSE RISK
PERCENTAGE 0.90%
GENERAL ACCOUNT MAXIMUM
WITHDRAWAL PERCENT LIMIT 25%
SELECTION AND ISSUE
EXPENSE CHARGE RATE:
1ST YEAR $.16
YEARS 2+ $.01
FORM BENEFITS-AS SPECIFIED IN POLICY
NUMBERS AND IN ANY RIDER
Policy Plan: FLEXIBLE PREMIUM VARIABLE
10098 LIFE INSURANCE
11147
11148
11149
11151
10396
10492
10688
00765
11147
<PAGE>
<PAGE>
2. POLICY SPECIFICATIONS
INSURED JOHN DOE
DATE OF ISSUE JANUARY 1, 1995
POLICY NUMBER 16,000,001
COVERAGE RISK FACE
CLASSIFICATION AMOUNT<F*>
FPVL STANDARD SMOKER $100,000
[FN]
<F*>IF THE INITIAL PREMIUM PAID AND SUBSEQUENT PREMIUMS PROVE TO BE TOO LOW,
COVERAGE PROVIDED BY THIS POLICY MAY CEASE.
11147 1.02
<PAGE>
<PAGE>
SURRENDER CHARGE SCHEDULE
INSURED JOHN DOE POLICY NUMBER 16,000,001
AMOUNT OF INSURANCE $100,000 COVERAGE FPVL
TARGET PREMIUM $740.00 EFFECTIVE DATE JANUARY 1, 1995
POLICY MONTH SURRENDER POLICY MONTH SURRENDER POLICY MONTH SURRENDER
CHARGE CHARGE CHARGE
1-61 100.00% 101 66.67% 141 33.33%
62 99.17% 102 65.83% 142 32.50%
63 98.33% 103 65.00% 143 31.67%
64 97.50% 104 64.17% 144 30.83%
65 96.67% 105 63.33% 145 30.00%
66 95.83% 106 62.50% 146 29.17%
67 95.00% 107 61.67% 147 28.33%
68 94.17% 108 60.83% 148 27.50%
69 93.33% 109 60.00% 149 26.67%
70 92.50% 110 59.17% 150 25.83%
71 91.67% 111 58.33% 151 25.00%
72 90.83% 112 57.50% 152 24.17%
73 90.00% 113 56.67% 153 23.33%
74 89.17% 114 55.83% 154 22.50%
75 88.33% 115 55.00% 155 21.67%
76 87.50% 116 54.17% 156 20.83%
77 86.67% 117 53.33% 157 20.00%
78 85.83% 118 52.50% 158 19.17%
79 85.00% 119 51.67% 159 18.33%
80 84.17% 120 50.83% 160 17.50%
81 83.33% 121 50.00% 161 16.67%
82 82.50% 122 49.17% 162 15.83%
83 81.67% 123 48.33% 163 15.00%
84 80.83% 124 47.50% 164 14.17%
85 80.00% 125 46.67% 165 13.33%
86 79.17% 126 45.83% 166 12.50%
87 78.33% 127 45.00% 167 11.67%
88 77.50% 128 44.17% 168 10.83%
89 76.67% 129 43.33% 169 10.00%
90 75.83% 130 42.50% 170 9.17%
91 75.00% 131 41.67% 171 8.33%
92 74.17% 132 40.83% 172 7.50%
93 73.33% 133 40.00% 173 6.67%
94 72.50% 134 39.17% 174 5.83%
95 71.67% 135 38.33% 175 5.00%
96 70.83% 136 37.50% 176 4.17%
97 70.00% 137 36.67% 177 3.33%
98 69.17% 138 35.83% 178 2.50%
99 68.33% 139 35.00% 179 1.67%
100 67.50% 140 34.17% 180 0.83%
181+ 0.00%
If this amount of insurance is fully surrendered, the surrender charge is the
appropriate percent listed above times the surrender charge amount as defined
in Section 9, Cash Values. If this amount of insurance is decreased by some
fraction of the total amount due to a requested decrease in face amount, or a
partial withdrawal, the surrender charge deducted will be the previously
defined surrender charge times the fraction.
11148
<PAGE>
<PAGE>
TABLE OF GUARANTEED MONTHLY COST OF INSURANCE RATES
RATES ARE PER $1,000
COVERAGE: FPVL INSURED: JOHN DOE
POLICY NUMBER: 16,000,001 DATE OF ISSUE: JANUARY 1,1995
ATTAINED AGE RATE ATTAINED AGE RATE ATTAINED AGE RATE
35 0.21 57 1.50 79 9.45
36 0.23 58 1.64 80 10.13
37 0.25 59 1.77 81 10.86
38 0.27 60 1.93 82 11.68
39 0.30 61 2.10 83 12.58
40 0.32 62 2.29 84 13.54
41 0.36 63 2.51 85 14.51
42 0.39 64 2.76 86 15.48
43 0.43 65 3.02 87 16.42
44 0.47 66 3.29 88 17.44
45 0.52 67 3.58 89 18.46
46 0.56 68 3.87 90 19.47
47 0.62 69 4.19 91 20.50
48 0.67 70 4.54 92 21.61
49 0.73 71 4.92 93 23.02
50 0.79 72 5.36 94 24.84
51 0.87 73 5.85 95 27.49
52 0.95 74 6.38 96 32.04
53 1.04 75 6.98 97 40.01
54 1.15 76 7.59 98 54.83
55 1.26 77 8.20 99 83.33
56 1.38 78 8.82
These rates are for the base policy at issue. They are based on the 1980
Commissioners Standard Ordinary Mortality Table for a Male Smoker. Any values
guaranteed in this contract are based on these rates.
11149
<PAGE>
<PAGE>
DEATH BENEFIT OPTION C ATTAINED AGE FACTORS
COVERAGE: FPVL INSURED: JOHN DOE
POLICY NUMBER: 16,000,001 DATE OF ISSUE: JAN 1, 1995
ATTAINED ATTAINED ATTAINED
AGE RATE AGE RATE AGE RATE
35 3.55672 57 1.86927 79 1.25894
36 3.44147 58 1.82487 80 1.24518
37 3.33092 59 1.78253 81 1.23207
38 3.22471 60 1.74181 82 1.21958
39 3.12254 61 1.70294 83 1.20781
40 3.02488 62 1.66578 84 1.19682
41 2.93065 63 1.63034 85 1.18661
42 2.84092 64 1.59672 86 1.17704
43 2.75467 65 1.56496 87 1.16795
44 2.67217 66 1.53487 88 1.15911
45 2.59310 67 1.50629 89 1.15049
46 2.51761 68 1.47914 90 1.14189
47 2.44492 69 1.45316 91 1.13301
48 2.37560 70 1.42835 92 1.12355
49 2.30894 71 1.40470 93 1.11320
50 2.24502 72 1.38216 94 1.10181
51 2.18358 73 1.36087 95 1.08918
52 2.12496 74 1.34086 96 1.07519
53 2.06885 75 1.32212 97 1.06014
54 2.01522 76 1.30475 98 1.04417
55 1.96426 77 1.28856 99+ 1.02648
56 1.91563 78 1.27334 HIGHER
11151
<PAGE>
<PAGE>
1. DEFINITIONS IN THIS POLICY
WE, US AND OUR
General American Life Insurance Company.
YOU AND YOUR
The owner of this policy. The owner is as shown in the application or in any
supplemental agreement attached to this policy, unless later changed as
provided in this policy.
In the application the words "You" and "Your" refer to the proposed Insured
person(s).
INSURED
The person whose life is Insured under this policy. See the policy
specifications page.
ISSUE AGE
The Insured's age at his or her nearest birthday as of the Issue Date.
ATTAINED AGE
The Issue Age plus the number of completed policy years.
ISSUE DATE
The effective date of the coverage under this policy which is the Issue Date
shown on the policy specifications page. It is also the date from which
policy anniversaries, policy years, and policy months are measured.
INVESTMENT START DATE
The date the first premium is applied to the General Account and/or the
Divisions of Separate Account Eleven. This date will be the later of:
- - The Issue Date of the policy; or
- - The date we receive the first premium at our home office.
MATURITY DATE
The Insured's date of death. It is possible that insurance coverage may not
continue even if planned premiums are paid in a timely manner.
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.
GENERAL ACCOUNT
The assets held by us, excluding any loans, other than those allocated to the
Divisions of Separate Account Eleven or any other Separate Account.
SEPARATE ACCOUNT
Separate Account Eleven, a separate investment account created by us to
receive and invest net premiums received for this policy or other policies.
LOAN ACCOUNT
The account to which we will transfer from the General Account and the
Divisions of Separate Account Eleven the amount of any policy loan.
LOAN SUBACCOUNT
A Loan SubAccount exists for the General Account and each Division of Separate
Account Eleven. 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.
VALUATION DATE
Each day that the New York Stock Exchange is open for trading, we are open for
business and the SEC has not restricted trading or declared an emergency.
SEC
The United States Securities and Exchange Commission.
10396 3.01
(1/95)
<PAGE>
<PAGE>
2. PERSONS WITH AN INTEREST IN THE POLICY
OWNER
The owner of this policy is as shown in the application or in any supplemental
agreement attached to this policy, unless later changed as provided in this
policy. You, as owner, are entitled to all rights provided by this policy,
while it is in force. Any person whose rights of ownership depend upon some
future event will not possess any present rights of ownership. If there is
more than one owner at a given time, all must exercise the rights of ownership
by joint action.
1. OWNER'S RIGHTS. Unless otherwise provided, the policy will be jointly
owned by all owners named in a class, or by the survivors of that class.
2. TRUSTEE OWNER. We may act in reliance upon the written request of any
trustee and we are not responsible for proper administration of the trust.
3. FINAL OWNER. Unless otherwise provided, the final owner will be the estate
of the last owner to die.
BENEFICIARY
The beneficiary to receive the proceeds in the event of the Insured's death is
as shown in the application or in any supplemental agreement attached to this
policy, unless later changed as provided in the policy. You may change the
beneficiary in accordance with the Change of Owner or Beneficiary provision.
Unless otherwise stated, the beneficiary has no rights in this policy before
the death of the Insured. If there is more than one beneficiary at the death
of the Insured, each will receive equal payments unless otherwise provided.
Unless you provide otherwise, if a beneficiary dies prior to the Insured's
death, that beneficiary's share will be paid to the living beneficiaries of
that class. The deceased beneficiary's share will be paid in the same
proportion as the living beneficiaries' shares. If there are no beneficiaries
living when the Insured dies, or at the end of any Common Disaster period, the
proceeds (commuted if required) will be payable to you, if you are living, or
to your estate.
Any payment we make will terminate our liability with respect to such payment.
If the Insured designates specific amounts to be paid to specific
beneficiaries and the total of those amounts is other than the amount of
proceeds payable, the proceeds payable will be adjusted and paid in the same
proportion as the specific amounts were to be paid.
1. "CHILDREN LEGALLY ADOPTED" means those adopted through recognized
statutory proceedings.
2. A CORPORATION includes its successors or assigns.
Any term used in the MASCULINE, FEMININE, SINGULAR or PLURAL, will include or
be the opposite gender or number where necessary.
If any beneficiary designation in the application includes any of the
following provisions, the terms of that provision shown below will apply:
1. PER STIRPES. The share of a deceased beneficiary will be paid to
that beneficiary's surviving children, equally.
2. COMMON DISASTER. We will not make payment until the stated number of
days after the Insured's death. If any beneficiary dies during this
period, or if the order of death of any beneficiary and the Insured
cannot be determined, we will pay as though such beneficiary died first.
3. TRUST FOR MINOR BENEFICIARY. The original or successor trustee for a
minor beneficiary will serve without bond and exercise all rights and
receive all proceeds for the minor beneficiary. Such proceeds will be
held in a separate trust and used at the trustee's discretion for such
minor's education, support, care and general welfare. The trust will
terminate at the legal age of majority or prior death of the minor
beneficiary. Any funds then held by the trustee will be paid in one sum
to such beneficiary or the beneficiary's estate. The trust can be
revoked by change of beneficiary under the policy. Payment to any
trustee will discharge us to the extent of such payment.
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4. TRUST UNDER WILL. When we receive at our Home Office:
a) Certified copies of the Last Will and Testament of the named
testator; and
b) The order admitting the Will to probate; and if such Will created
a trust capable of receiving proceeds;
then we will pay the proceeds to the trustee.
If, before we receive these documents, satisfactory proof is furnished
that:
a) the testator died intestate; or
b) the Will created no trust capable of receiving proceeds; or
c) the testator was not the Insured, but survived the Insured;
then we will pay the proceeds to you, unless otherwise provided.
If we pay under any of these conditions, we will be discharged to the
extent of such payment. We are not required to check into the validity,
general terms or proper administration of the trust. Such trustee
designation will not affect your rights under the policy, including the
right to change the beneficiary.
5. TRUST UNDER SEPARATE WRITTEN AGREEMENT. When we receive at our Home
Office a written statement from the trustee named in the beneficiary
designation that:
a) the trust agreement is in force; and
b) the agreement permits the trustee to receive the proceeds;
then we will pay the proceeds to the trustee.
If, before we receive the trustee's statement, satisfactory proof is
furnished that:
a) the trust agreement is not in effect; or
b) the agreement does not permit the trustee to receive the proceeds;
then we will pay the proceeds to you, unless otherwise provided.
If we pay under any of these conditions, we will be discharged to the
extent of such payment. We are entitled to rely on any statements or
documents furnished to us by the trustee and are not required to check
into the validity, general terms or proper administration of the trust
agreement. Such trustee designation will not affect your rights under
the policy, including the right to change the beneficiary.
6. IRREVOCABLE BENEFICIARY. You cannot change an irrevocable
beneficiary without the written consent of such beneficiary. Also, you
cannot exercise any other ownership rights without the consent of such
beneficiary, if the exercise of such rights will have the effect of
diminishing the rights and interest of the irrevocable beneficiary.
7. CREDITOR BENEFICIARY. Proceeds payable to any creditor beneficiary
are limited to its provable interest. The balance of any proceeds will be
paid to any other named beneficiary. If there is no other beneficiary
living, we will pay the proceeds to you, unless otherwise provided. You
cannot change a creditor beneficiary without the written consent of the
creditor or release of its interest. Also, you cannot exercise any other
ownership rights without the consent of such beneficiary, if the
exercise of such rights will have the effect of diminishing the rights
and interest of the creditor beneficiary.
8. BUSINESS BENEFICIARY. If any designation indicates the existence of
a business relationship between the Insured and the beneficiary, such
designation may not be changed without the consent of the business
beneficiary. Also, you cannot exercise any other ownership rights
without the written consent of such beneficiary, if the exercise of such
rights will have the effect of diminishing the rights and interest of
the business beneficiary.
10396 3.03
(1/95)
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CHANGE OF OWNER OR BENEFICIARY
During the Insured's lifetime you may change the ownership and beneficiary
designations, subject to any restrictions as stated in the Owner or
Beneficiary provisions. You must make the change in written form satisfactory
to us. If acceptable to us the change will take effect as of the time you
signed the request, whether or not the Insured is living when we receive your
request at our home office. The change will be subject to any assignment of
this policy or other legal restrictions. It will also be subject to any
payment we made or action we took before we received your written notice of
the change. We have the right to require the policy for endorsement before we
accept the change.
If you are also the beneficiary of the policy at the time of the Insured's
death, you may designate some other person to receive the proceeds of the
policy within 60 days after the Insured's death.
ASSIGNMENTS
We will not be bound by an assignment of the policy or of any interest in it
unless:
1. The assignment is made as a written instrument,
2. You file the original instrument or a certified copy with us at our
home office, and
3. We send you an acknowledged copy.
We are not responsible for determining the validity of any assignment.
If a claim is based on an assignment, we may require proof of interest of the
claimant. A valid assignment will take precedence over any claim of a
beneficiary.
REQUESTS FOR CHANGES AND/OR INFORMATION
Submit all requests for change and/or information in writing to our home
office - General American Life Insurance Company, P.O. Box 14490, St. Louis,
MO 63178.
3. GENERAL PROVISIONS
THE CONTRACT
We have issued this policy in consideration of the application and payment of
premiums. The policy, the application for it, any riders and any application
for an increase in face amount constitute the entire contract and are attached
to and made a part of the policy when the insurance applied for is accepted. A
copy of any application for reinstatement will be sent to you for attachment
to this policy and will become part of the contract of reinstatement and of
this policy. The policy may be changed by mutual agreement. Any change must be
in writing and approved by our President, Vice-President or Secretary. Our
agents have no authority to alter or modify any terms, conditions, or
agreements of this policy, or to waive any of its provisions.
CONFORMITY WITH STATUTES
If any provision in this policy is in conflict with the laws of the state
which govern this policy, the provision will be deemed to be amended to
conform with such laws. In addition, we reserve the right to change this
policy if we determine that a change is necessary to cause this policy to
comply with, or give you the benefit of, any federal or state statute, rule,
or regulation, including, but not limited to, requirements for life insurance
contracts under the Internal Revenue Code, or its regulations or published
rulings.
STATEMENTS IN APPLICATION
All statements made by the Insured or on his or her behalf, or by the
applicant, will be deemed representations and not warranties, except in the
case of fraud. Material misstatements will not be used to void the policy, any
rider or any increase in face amount or deny a claim unless made in the
application for a policy, a rider or an increase in face amount.
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.
10396 3.04
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RIGHT TO EXAMINE INCREASE IN FACE AMOUNT
You have the right to request us to cancel an increase in face amount and
receive a premium refund. The request must be in writing and must be made no
later than:
- - 20 days from the date you received the new policy specifications page
for the increase; or
- - 45 days after the date you signed the application for the increase.
If you do request us to cancel the increase, the monthly deductions associated
with that increase will be restored to the policy's cash value. This amount
will be allocated to the General Account and the Divisions of Separate Account
Eleven in the same manner as it was deducted.
CONVERSION RIGHTS
While your policy is in force, you have a one time right during the first two
policy years to transfer all of your cash value from the Divisions of Separate
Account Eleven to the General Account.
If, at any time during the first two policy years, you request in writing the
transfer of the cash value held in the Divisions of Separate Account Eleven to
the General Account and you indicate that you are making this transfer in
exercise of your conversion rights, the transfer will not be subject to a
transfer charge or transfer limits, if any. At the time of such transfer,
there will not be any effect on the policy's death benefit, face amount, net
amount at risk, rate class or Issue Age.
If you exercise your one time conversion right, we will automatically allocate
all future net premiums to the General Account.
MISSTATEMENT OF AGE OR SEX AND CORRECTIONS
If it is found that the amount of any benefit provided by this policy is
incorrect because of misstatement as to the age or sex (if applicable), the
amount of the benefit will be equitably adjusted on the basis of the correct
facts.
If we make any payment or policy changes in good faith, relying on our
records, or evidence supplied to us, our duty will be fully discharged. We
reserve the right to correct any errors in the policy.
INCONTESTABILITY
We cannot contest this policy after it has been in force during the lifetime
of the Insured for two years from its Issue Date. We cannot contest an
increase in face amount with regard to material misstatements made concerning
such increase after it has been in force during the lifetime of the Insured
for two years from its effective date. We cannot contest any reinstatement of
this policy after it has been in force during the lifetime of the Insured for
a period of two years from the date we approve the reinstatement. This
provision will not apply to any rider which contains its own incontestability
clause.
SUICIDE EXCLUSION
If the Insured dies by suicide, which sane or insane, within two years from
the Issue Date (or within the maximum period permitted by law of the state in
which this policy was delivered, if less than two years), the amount payable
will be limited to the amount of premiums paid, less any outstanding policy
loans with interest to the date of death, and less any partial withdrawals.
If the Insured, while sane or insane, commits suicide within two years after
the effective date of any increase in face amount, the death benefit for that
increase will be limited to the monthly deductions for the increase.
If this policy is issued to a Missouri citizen, this provision does not apply
unless the Insured intended suicide when this policy was applied for. If on
the effective date of any increase in face amount, the owner is a Missouri
citizen, this provision does not apply to that increase unless the Insured
intended suicide when the increase in face amount was applied for.
10396 3.05
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ANNUAL REPORT
Each year a report will be sent to you which shows the current policy values,
premiums paid and deductions made since the last report, and any outstanding
policy loans.
PROJECTION OF BENEFITS AND VALUES
You may make a written request to us for a projection of illustrative future
cash values and death benefits. This projection will be furnished to you for a
nominal fee. This fee will not exceed $25.00.
4. SEPARATE ACCOUNT PROVISIONS
SEPARATE ACCOUNT
The variable benefits under this policy are provided through investments in
Separate Account Eleven. This account is used for flexible premium variable
life insurance policies and, if permitted by law, may be used for other
policies or contracts as well.
We hold the assets of Separate Account Eleven. These assets are held
separately from the assets held in the General Account. Income, gains and
losses---whether or not realized---from assets allocated to Separate Account
Eleven will be credited to or charged against the account without regard to
our other income, gains or losses.
The portion of the assets held by Separate Account Eleven equal to the
reserves and other policy liabilities with respect to Separate Account Eleven
will not be charged with liabilities that arise from any other business we may
conduct. We have the right to transfer to our General Account any assets of
Separate Account Eleven which are in excess of the reserves and other policy
liabilities of Separate Account Eleven.
Separate Account Eleven is registered with the Securities and Exchange
Commission as a unit investment trust under the Investment Company Act of
1940. Separate Account Eleven is also subject to the laws of the State of
Missouri, which regulate the operations of insurance companies incorporated in
Missouri. The investment policy of Separate Account Eleven will not be changed
without the approval of the Insurance Commissioner of the State of Missouri.
The approval process is on file with the Insurance Commissioner of the state
in which this policy was delivered.
DIVISIONS
Separate Account Eleven has several Divisions. Each Division invests in a
corresponding investment portfolio from one or more registered investment
companies.
Income, gains and losses---whether or not realized---from the assets of each
Division of Separate Account Eleven are credited to or charged against that
Division without regard to income, gains or losses in other Divisions of
Separate Account Eleven or in the General Account.
We will value the assets of each Division of Separate Account Eleven at the
end of each valuation period. A valuation period is the period between two
successive Valuation Dates. A Valuation Date is any day that benefits vary and
on which the New York Stock Exchange and our home office are open for business
or any other day that may be required by any applicable Securities and
Exchange Commission Rules and Regulations.
10396 3.06
(1/95)
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TRANSFERS
You may transfer amounts as follows:
- - Between the General Account and the Divisions of Separate Account
Eleven; or
- - Among the Divisions of Separate Account Eleven.
These transfers will be subject to the following conditions:
- - We must receive a written request for transfer.
- - Transfers from or among the Divisions of Separate Account Eleven may be
made once each policy month and must be at least $500.00 or the entire
amount you have in a Division, if smaller.
- - Transfers or partial withdrawals from the General Account to the
Divisions of Separate Account Eleven may be made up to four times in any
policy year after the first and must be at least $500.00. The maximum
amount of all transfers and partial withdrawals from the General Account
in any policy year will be the greater of (1) or (2):
1. The cash surrender value of the General Account at the beginning
of that policy year multiplied by the withdrawal percentage limit,
as shown on the policy specifications page.
2. The previous year's General Account maximum withdrawal amount.
The General Account Cash Value immediately after any transfer in to the
General Account cannot exceed 1., below, multiplied by 2., below:
1. The General Account Cash Value plus the Separate Account Cash
Value.
2. The General Account Maximum Allocation Percent as shown on the
policy specifications page.
We may revoke or modify the transfer privilege at any time, including the
minimum amount transferable, the General Account Maximum Allocation Percent,
and the transfer charge, if any.
ADDITION, DELETION OR SUBSTITUTION OF INVESTMENTS
We reserve the right, subject to compliance with applicable law, to make
additions to, deletions from, or substitutions for the shares of a fund that
are held by Separate Account Eleven or that Separate Account Eleven may
purchase. We reserve the right to eliminate the shares of any of the funds of
this policy and to substitute shares of another fund of a registered
investment company, if the shares or funds are no longer available for
investment or if in our judgement, further investment in any fund should
become inappropriate in view of the purpose of the policy. We will not
substitute any shares attributable to the owner's interest in a Division of
Separate Account Eleven without notice to the owner and compliance with the
Investment Company Act of 1940. This will not prevent Separate Account Eleven
from purchasing other securities for other series or classes of policies, or
from permitting conversion between series or classes of policies or contracts
on the basis of requests made by owners.
We reserve the right to establish additional Divisions of Separate Account
Eleven which would invest in shares of registered investment companies and to
make such Divisions available to such class or series of policies as we deem
appropriate. We also reserve the right to eliminate or combine existing
Divisions of Separate Account Eleven or to transfer assets between Divisions.
If we consider it to be in the best interest of persons having voting rights
under the policies, Separate Account Eleven may be operated as a management
company under the Investment Company Act of 1940; it may be deregistered under
that Act in the event registration is no longer required; it may be combined
with other separate accounts; or its assets may be transferred to other
separate accounts.
10396 3.07
(1/95)
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5. POLICY BENEFITS
POLICY PROCEEDS
The policy proceeds are:
1. The death benefit under the contract type then in effect; plus
2. The monthly cost of insurance for the portion of the policy month from
the date of death to the end of the policy month of death; minus
3. Any loan and loan interest due.
DEATH BENEFIT
The death benefit depends upon the contract type in effect on the date of the
Insured's death. The contract type in effect is shown on the policy
specifications page.
Option A Contract Type:
The death benefit is the greater of:
1. The face amount; or
2. The applicable percentage of the cash value on the date of death as
described in Section 7702(d) of the Internal Revenue Code of 1986 and
modified for ages 95 and above or any applicable successor provision
thereto.
Option B Contract Type:
The death benefit is the greater of:
1. The face amount plus the cash value on the date of death; or
2. The applicable percentage of the cash value on the date of death as
described in Section 7702(d) of the Internal Revenue Code of 1986 and
modified for ages 95 and above or any applicable successor provision
thereto.
Option C Contract Type:
The death benefit is the greater of:
1. The face amount; or
2. The cash value on the date of death multiplied by the applicable
Attained Age factor as shown on the policy's Death Benefit Option C
Attained Age Factors page.
Notwithstanding anything in this policy, the death benefit will in no case be
less than the amount necessary to cause the policy to meet the requirements
for the definition of life insurance under the Internal Revenue Code of 1986
or any applicable successor provision thereto.
APPLICABLE PERCENTAGE:
The percentages as currently described in Section 7702(d) of the Internal
Revenue Code of 1986 and modified for ages 95 and above are as follows:
In the case of an Insured with an The applicable percentage
Attained Age as of the beginning will decrease by a ratable
of the contract year of: portion for each full year:
More than: But not more than: From: To:
0 ................... 40 250 ................... 250
40 ................... 45 250 ................... 215
45 ................... 50 215 ................... 185
50 ................... 55 185 ................... 150
55 ................... 60 150 ................... 130
60 ................... 65 130 ................... 120
65 ................... 70 120 ................... 115
70 ................... 75 115 ................... 105
75 ................... 90 105 ................... 105
90 ................... 95 105 ................... 101
95 or 101
higher
10492 4.01
(1/95)
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POLICY CHANGES
You may request policy changes at any time unless we specifically indicate
otherwise. We limit the number of changes to one per policy year, and we do
not permit changes in the first policy year. The types of changes allowed are
explained below.
No change will be permitted that would result in this policy not satisfying
the definition of life insurance under the Internal Revenue Code of 1986 or
any applicable successor provision thereto.
CHANGE IN FACE AMOUNT
The face amount may be changed by sending us a written request.
Any decrease in face amount will be subject to the following conditions:
1. The decrease will become effective on the Monthly Anniversary on or
following our receipt of the request.
2. The decrease will reduce the face amount in the following order:
a. The face amount provided by the most recent increase;
b. Face amounts provided by the next most recent increases,
successively; and
c. The face amount when the policy was issued.
3. The face amount remaining in force after any requested decrease may not
be less than the minimum face amount shown on the policy specifications
page.
4. Any decrease must be at least $5,000.
A surrender charge will apply to any decrease in face amount as explained in
the Surrender Charge provision.
You can increase the face amount subject to the following conditions:
1. Proof that the Insured is insurable by our standards on the date of the
requested increase must be submitted.
2. Increases may only be requested within 60 days prior to the policy
anniversary. If approved by us, the increase will become effective on
that policy anniversary.
3. Any increase must be at least $5,000.
4. The Insured must have an Attained Age not greater than age 80 on the
policy anniversary that the increase will become effective.
We will amend your policy to show the effective date of the decrease or
increase.
CHANGE IN CONTRACT TYPE
If the contract type in effect is Option A or Option B, you may change the
contract type by sending us a written request. The effective date of the
change will be the Monthly Anniversary on or following the date we receive
your request. On the effective date of this change the death benefit payable
does not change, but the face amount may change.
If the contract type in effect is Option B, you may change it to Option A. The
face amount will be increased to equal the death benefit on the effective date
of change. The contract type cannot be changed from Option B to Option C.
If the contract type in effect is Option A, you may change it to Option B.
Proof that the Insured is insurable by our standards on the date of the change
must be submitted. The face amount will be decreased to equal the death
benefit less the cash value on the effective date of change. This change may not
be made if it would result in a face amount which is less than the minimum face
amount shown on the policy specifications page. A surrender charge will apply to
any decrease in face amount as explained in the Surrender Charge provision. The
contract type cannot be changed from Option A to Option C.
If the contract type in effect is Option C, the contract type cannot be
changed.
10492 4.02
(1/95)
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<PAGE>
6. PREMIUMS AND GRACE PERIOD
PAYMENT OF PREMIUMS
Your first premium is due as of the Issue Date. While the Insured is living,
premiums after the first must be paid at our home office. A premium receipt
will be furnished upon request. If this policy is in your possession and you
have not paid the first premium, it is not in force. It will be considered
that you have the policy for inspection only.
Premiums may be paid in any amount and at any interval subject to the
following conditions:
1. At issue, the initial premium payment must be greater than or equal to
the initial annual premium amount for the policy as shown on the
policy specifications page.
2. Any premium payment must be at least $10.00.
3. Total premiums paid in any policy year for policies issued with the
Option A or B contract type may not exceed an amount that would cause
the policy to fail the definition of life insurance as defined by
Section 7702 of the Internal Revenue Code of 1986, or any applicable
successor provision thereto. The maximum premium limit for the
following policy year will be shown on your annual report.
On any date that we receive a premium which causes the Death Benefit
to increase by an amount that exceeds that premium received, we
reserve the right to refuse that premium payment. We may require
additional evidence of insurability before we accept the premium.
NET PREMIUM
The net premium is:
1. The premium paid; minus
2. The premium paid multiplied by the premium tax percentage as shown on
the policy specifications page.
PREMIUM TAX PERCENTAGE
A charge will be deducted for premium taxes from each premium submitted. The
current charge, as a percent of the premium, is shown on the policy
specifications page. We reserve the right to charge a higher percent if the
average premium tax increases. This increase will be up to the amount of the
average premium tax increase.
ALLOCATION OF NET PREMIUMS
You determine the allocation of net premiums among the General Account and the
Divisions of Separate Account Eleven. For any chosen allocation the minimum
percentage that may be allocated is 5% of the net premium. Percentages must
be in whole numbers. The General Account Cash Value immediately after payment
of the premium cannot exceed 1., below, multiplied by 2., below:
1. The General Account Cash Value plus the Separate Account Cash Value.
2. The General Account Maximum Allocation Percent as shown on the policy
specifications page.
The initial allocation is shown on the application, a copy of which is
attached. We may modify the General Account Maximum Allocation Percent at any
time.
For any premium received during the "right to examine policy" period, we will
initially allocate the net premium to the Division that invests exclusively in
shares of our Money Market fund unless prohibited by state law. When this
period expires, cash value in that Division will be transferred to the General
Account and the Divisions of Separate Account Eleven according to the
allocation percentages shown on the application, a copy of which is attached.
For any premium received after the "right to examine policy" period, the net
premium will be allocated according to the allocation percentages shown on the
policy specifications page or your most recent allocation instructions
received by us.
10492 4.03
(1/95)
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<PAGE>
YOUR RIGHT TO CHANGE ALLOCATION
You may change the allocation of future net premiums among the General Account
and/or the Divisions of Separate Account Eleven subject to the conditions
outlined in the Allocation of the Net Premiums Provision. The change in
allocation percentages will take effect immediately upon our receipt of your
written request.
GRACE PERIOD
We will allow a grace period of 62 days. The grace period will start on any
Monthly Anniversary when the cash surrender value is not large enough to cover
the monthly deduction due. (Monthly deduction is defined in the Cash Values
Section.) At that time, we will send you and any assignee of record a notice.
If we do not receive a net premium payment large enough to cover the monthly
deduction by the end of the grace period, your policy will lapse at the end of
that 62 day period and it will then terminate without cash value. If the
Insured dies during the grace period, any past due monthly deductions will be
deducted from the death benefit.
REINSTATEMENT
You may reinstate your lapsed policy within 5 years after the date of lapse.
To reinstate, you must submit the following items:
1. A written request for reinstatement.
2. Proof satisfactory to us that the Insured is insurable by our standards.
3. A net premium payment 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.
4. A payment to cover any Loan Interest due and unpaid at the time of
lapse.
Upon receipt of the above payments, we will deduct any monthly deductions and
loan interest due and unpaid at the time of lapse. The Insured must be alive
on the date we approve the request for reinstatement. If the Insured is not
alive, such approval is void and of no effect.
The reinstated policy will be in force from the date we approve the
reinstatement application. There will be a full monthly deduction for the
policy month which includes this date. Any application for reinstatement
becomes part of the contract of reinstatement and of this policy.
Any loan may be paid or reinstated. Any loan reinstated will cause a cash
value of an equal amount to be reinstated.
Any loan repaid at the time of reinstatement will cause an increase in cash
value equal to the amount of the repaid loan.
The surrender charge at the time of reinstatement will be the surrender charge
in effect at the time of lapse. If only a portion of the coverage is
reinstated then only the applicable portion of the surrender charge will be
reinstated. If only a portion of the coverage is reinstated, the cash value
following reinstatement will be increased by the applicable portion of the
surrender charge imposed at the time of lapse.
10492 4.04
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<PAGE>
7. DIVIDENDS
ANNUAL DIVIDENDS
While your policy is in force it may share in our divisible surplus. Each
year we will determine the share of divisible surplus, if any, accruing to
your policy. We will distribute this surplus as a dividend.
DIVIDEND OPTIONS
You may chooses one of the following options. If you do not, we will credit
any dividend under Option 2 until such time as you request in writing a
different option. The option you choose will remain in effect until you
change it.
OPTION 1. Cash. Paid in cash.
OPTION 2. Increase Cash Value. Paid to the policy's cash value on the date
of any dividend payment. The cash value will increase by exactly
the amount of the dividend.
The dividend will be allocated to the General Account and the
Divisions of Separate Account Eleven according to the current
allocation of the net premium.
8. LOANS
After the first policy anniversary, upon written request to us, you may borrow
an amount not in excess of the loan value of your policy while it is in force.
The minimum amount of your net loan request at any one time must be at least
$500. Your policy will be the sole security for such loan. We have the right
to require your policy for endorsement.
The loan value is 90% of the cash value of your policy at the date of the loan
request, reduced by:
1. Any existing loans; and
2. Loan interest to the next loan interest due date; and
3. Every monthly deduction due to the next loan interest due date; and
4. Any surrender charges.
You may allocate the policy loan among the General Account and the Divisions
of Separate Account Eleven. If you do not specify the allocation, then the
policy loan will be allocated among the General Account and the Divisions of
Separate Account Eleven in the same proportion that the cash value in the
General Account, and the cash value in each Division bears to the total cash
value of the policy, minus the cash value in the Loan Account, on the date of
the policy loan.
Cash value equal to the policy loan allocated to the General Account and each
Division of Separate Account Eleven will be transferred to the Loan Account,
reducing the cash value accordingly. Any cash value transferred to the Loan
Account will be allocated to the appropriate Loan SubAccount.
LOAN INTEREST DUE DATE
The accrued loan interest will be due the earliest of :
1. The next policy anniversary date.
2. The date of termination of the policy.
3. The date the loan is repaid in full.
4. The date the loan plus loan interest accrued exceeds the cash value less
any surrender charges.
10688 6.01
(1/95)
<PAGE>
<PAGE>
Interest will be payable annually on each policy anniversary. If you do not
pay the interest when it is due on a policy anniversary, an amount of cash
value equal to the loan interest will also be transferred to the Loan Account.
We will charge the same rate of interest on this amount as on the policy loan.
The amount transferred will be deducted from the General Account and the
Divisions of Separate Account Eleven in the same proportion that the cash
value in the General Account and the cash value in each Division bears to the
total cash value of the policy, minus the cash value in the Loan Account.
INDEXED LOAN INTEREST
The loan interest is charged daily at a rate we set from time to time. This
rate will never be more than the maximum permitted by law. We will not change
this rate more than once a year. Any change will be effective on your policy
anniversary date.
The rate of interest we set for a policy year may not exceed a maximum limit
which is the higher of:
a. The Published Monthly Average for the calendar month ending 2 policy
months before the beginning of the policy month in which the policy
anniversary falls. (Example: for a policy with a June anniversary, the
March Published Average.); or
b. The General Account Cash Value Guaranteed Interest Rate shown on the
policy specifications page, plus 1%.
The Published Monthly Average means:
a. Moody's Corporate Bond Yield Average-Monthly Average Corporates, as
published by Moody's Investors Service, Inc. or any successor to that
service; or
b. If that average is no longer published, a substantially similar average,
established by regulation issued by the insurance supervisory official
of the state in which this policy is delivered.
If the maximum limit for a policy year increases by 1/2%, we may increase the
rate to that maximum limit. If the maximum limit for a policy year decreases
by 1/2%, we will decrease the rate to that maximum limit.
We will tell you the current loan interest rate when a loan is made. We will
also mail you an advance notice if there is to be a change in the loan
interest rate applicable to any existing loan balance.
LOAN REPAYMENTS
All funds received will be credited to your policy as a premium unless clearly
marked for loan repayment.
You may repay your loan in whole or in part at any time before the death of
the Insured while the policy is in force. When a loan repayment is made, cash
value securing the debt in the Loan Account equal to the loan repayment will
be repaid to the General Account and the Divisions of Separate Account Eleven
in the same proportion that the cash value in the Loan Account bears to the
cash value in each Loan SubAccount. Unpaid loans and loan interest will be
deducted from any settlement of your policy.
If you fail to make repayments when the total loan and loan interest due would
exceed the cash value, less any surrender charges, your policy will terminate.
We will allow you a grace period for such payment of loans and loan interest
due. In such event the policy becomes void at the end of the grace period.
We will mail notice to your last known address, the last known address of the
Insured, and that of any assignee of record. This grace period will expire 62
days from the Monthly Anniversary immediately before the date the total loan
and loan interest exceeds the cash value less any surrender charges; or 31
days after such notice has been mailed, if later.
10688 6.02
(1/95)
<PAGE>
<PAGE>
9. CASH VALUES
CASH VALUE
The cash value of your policy is equal to the total of:
- - The cash value in the General Account; plus
- - The cash value in the Divisions of Separate Account Eleven; plus
- - The cash value in the Loan Account.
GENERAL ACCOUNT CASH VALUE
The cash value in the General Account as of the Investment Start Date is equal
to:
- - The portion of the initial net premium received and allocated to the
General Account; minus
- - The portion of the monthly deductions due from the Issue Date through the
Investment Start Date charged to the General Account.
The cash value in the General Account on any day after the Investment Start
Date is equal to:
- - The cash value on the preceding Valuation Date, with interest on such
value at the current rate; plus
- - Any portion of net premium received and allocated to the General Account
on that day; plus
- - Any amounts transferred to the General Account on that day; plus
- - Any loan repayments allocated to the General Account on that day; plus
- - That portion of any interest credited on outstanding loans which is
allocated to the General Account on that day; minus
- - Any amount transferred plus any transfer charge from the General Account
to the Divisions of Separate Account Eleven on that day; minus
- - Any partial withdrawal plus any withdrawal transaction charge made from
the General Account on that day; minus
- - Any portion of the surrender charge incurred on that day attributed to the
General Account; minus
- - Any amount transferred from the General Account to the Loan Account on
that day; minus
- - IF THAT DAY IS A MONTHLY ANNIVERSARY, the portion of the monthly deduction
charged to the General Account, to cover the policy month which starts on
that day.
GENERAL ACCOUNT INTEREST RATE
The interest credited to the General Account cash value for a specific day
will be at an effective annual rate not less than the General Account cash
value guaranteed interest rate shown on the policy specifications page.
SEPARATE ACCOUNT CASH VALUE
The cash value in each Division of Separate Account Eleven on the Investment
Start Date is equal to:
- - The portion of the initial net premium received and allocated to the
Division; minus
- - The portion of the monthly deductions due from the Issue Date through the
Investment Start Date charged to the Division.
10688 6.03
(1/95)
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<PAGE>
The cash value in each Division of Separate Account Eleven on subsequent
Valuation Dates is equal to:
- - The cash value in the Division on the preceding Valuation Date
multiplied by that Division's net investment factor for the current
valuation period; plus
- - Any portion of net premium received and allocated to the Division during
the current valuation period; plus
- - Any amounts transferred to the Division from the General Account or from
another Division during the current valuation period; plus
- - Any loan repayments allocated to the Division during the current
valuation period; plus
- - That portion of any interest credited on outstanding loans which is
allocated to the Division during the current valuation period; minus
- - Any amounts transferred plus any transfer charge from the Division
during the current valuation period; minus
- - Any partial withdrawal plus any withdrawal transaction charge from the
Division during the current valuation period; minus
- - Any portion of the surrender charge incurred during the current
valuation period attributed to the Division; minus
- - Any amount transferred from the Division to the Loan Account during that
valuation period; minus
- - IF A MONTHLY ANNIVERSARY OCCURS DURING THE CURRENT VALUATION PERIOD, the
portion of the monthly deduction charged to the Division during the
current valuation period to cover the policy month which starts during
that valuation period.
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:
- - The value of the assets at the end of the preceding valuation period;
plus
- - 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
- - The capital losses---realized or unrealized---charged against those
assets during the valuation period; minus
- - Any amount charged against each Division for taxes, including any tax or
other economic burden resulting from the application of tax laws that we
determine to be properly attributable to the Divisions of the Separate
Account, or any amount we set aside during the valuation period as a
reserve for taxes attributable to the operation or maintenance of each
Division; minus
- - A charge not to exceed the daily investment percentage shown on the
policy specifications page for each day in the valuation period. This
corresponds to an annual investment percentage of the mortality and
expense risk percentage shown on the policy specifications page; divided
by
- - The value of the assets at the end of the preceding valuation period.
LOAN ACCOUNT CASH VALUE
The cash value in the Loan Account as of the Investment Start Date is zero.
The cash value in the Loan Account on any day after the Investment Start Date
is equal to:
- - The cash value in the Loan Account on the preceding Valuation Date, with
interest; plus
- - Any amount transferred to the Loan Account from the General Account on
that day; plus
10688 6.04
(1/95)
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<PAGE>
- - Any amount transferred to the Loan Account from the Divisions of Separate
Account Eleven on that day; minus
- - Any loan repayments on that day; plus
- - IF THAT DAY IS A POLICY ANNIVERSARY, an amount due to cover the loan
interest, if not paid by you.
Cash value held in the Loan Account for loan collateral will earn interest
daily at an annual rate of not less than the following:
- - For policy years one through ten, the General Account Cash Value
Guaranteed Interest Rate shown on the policy specifications page.
- - For policy years eleven and later, the loan interest charged less .5%.
Interest credited on the cash value held in the Loan Account will be allocated
at least once a year to the General Account and the Divisions of Separate
Account Eleven in the same proportion that the cash value in each Loan
SubAccount bears to the cash value in the Loan Account.
MONTHLY COST OF INSURANCE
The monthly cost of insurance for the following month is deducted on the
Monthly Anniversary date. The monthly cost of insurance is 1, below,
multiplied by the difference between 2 and 3 below:
1. The monthly cost of insurance rate divided by 1,000.
2. The death benefit at the beginning of the policy month divided by the
monthly cost of insurance factor shown on the policy specifications
page.
3. The cash value at the beginning of the policy month, before the
deduction of the monthly cost of insurance.
If the contract type is Option A or Option C and if there has been an increase
in the face amount, then the cash value will first be considered a part of the
face amount when the policy was issued. 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.
MONTHLY COST OF INSURANCE RATES
At the beginning of each policy year, the monthly cost of insurance rate is
determined for the initial face amount and each increase in face amount. The
monthly cost of insurance rate is based on the Attained Age, risk
classification, sex and completed policy years from the effective date of the
initial face amount and each increase in face amount. For the initial face
amount, we will use the risk classification as of the Issue Date. For each
increase, we will use the risk classification applicable to the increase. If
the death benefit equals a percentage of the cash value, any increase in cash
value will cause an automatic increase in the death benefit. The risk
classification for such increase will be the same as that used for the most
recent increase, excluding any riders, that required proof that the Insured
was insurable by our standards.
The monthly cost of insurance rates will never exceed the rates shown on the
Table of Guaranteed Monthly Cost of Insurance Rates page. Any change in the
cost of insurance rates will apply to all persons of the same age, sex, and
classification whose initial face amounts or increases in face amount have
been in force for the same length of time.
SELECTION AND ISSUE EXPENSE CHARGE
The selection and issue expense charge for the initial face amount or for any
increase in face amount is a monthly charge which equals the applicable face
amount times a selection and issue expense charge rate, divided by 1,000. The
selection and issue expense charge rate for the initial face amount of the
policy will never exceed the rates shown on the policy specifications page for
the initial face amount. A selection and issue expense charge will also be
applied to any increase in face amount. This charge will never exceed the
rates shown on the policy specifications page for that increase.
10688 6.05
(1/95)
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<PAGE>
MONTHLY POLICY CHARGE
A policy charge will be deducted each policy month from the cash value. The
amount of the monthly policy charge will never exceed the amount shown on the
policy specifications page.
MONTHLY DEDUCTION
The monthly deduction is:
1. The monthly cost of insurance; plus
2. The selection and issue expense charge multiplied by the face amount
divided by 1,000; plus
3. The monthly policy charge; plus
4. The monthly cost, if any, for any rider included with this policy.
The monthly deduction for a policy month will be allocated among the General
Account and the Divisions of Separate Account Eleven in the same proportion
that the cash value in the General Account and the cash value in each Division
bears to the total cash value of the policy, minus the cash value in Loan
Account on the Monthly Anniversary.
CASH SURRENDER VALUE
The cash surrender value of this policy is:
1. The cash value at the time of surrender; minus
2. Any loan and loan interest accrued; minus
3. Any surrender charge.
SURRENDER
You may surrender your policy for its cash surrender value at any time during
the lifetime of the Insured. We will determine the cash surrender value as of
the date we receive your written request at our home office. The cash
surrender value will not be reduced by any monthly deduction due on that date
for a subsequent policy month.
PARTIAL WITHDRAWAL
After the first policy year, upon written request to us, you can make a
partial withdrawal of cash subject to the following conditions:
GENERAL ACCOUNT PARTIAL WITHDRAWAL
- - You may make up to four partial withdrawals or transfers in a policy year.
- - The minimum amount of your partial withdrawal request at any one time
must be at least $500 of your account.
- - The maximum amount of all partial withdrawals and transfers from the
General Account in a policy year will be the greater of (1) or (2):
1. The cash surrender value of the General Account at the beginning
of that policy year multiplied by the withdrawal percentage limit,
as shown on the policy specifications page.
2. The previous year's General Account maximum withdrawal amount.
SEPARATE ACCOUNT PARTIAL WITHDRAWALS
- - You may make up to one partial withdrawal each policy month.
- - The minimum amount of your partial withdrawal request at any one time
must be at least $500 of a Division or your entire balance in that
Division, if smaller.
- - The maximum amount of your partial withdrawal from any one of the
Divisions of Separate Account Eleven in a policy year will be the cash
surrender value of that Division.
ALLOCATION OF PARTIAL WITHDRAWALS
You may allocate the partial withdrawal plus any applicable surrender charge,
subject to the above conditions, among the General Account and the Divisions
of Separate Account Eleven. If you do not specify the allocation, then the
partial withdrawal will be allocated among the General Account and the
Divisions of Separate Account Eleven in the same proportion that the cash
value in the General Account and the cash value in each Division bears to the
total cash value of the policy, minus the cash value in the Loan Account on
the date of the partial withdrawal. If the General Account conditions will not
allow this proportionate allocation, we will request that you specify an
acceptable allocation.
10688 6.06
(1/95)
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<PAGE>
If the contract type is Option A or Option C 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.
This surrender charge will be allocated among the General Account and the
Divisions of Separate Account Eleven in the same proportion that the partial
withdrawal was allocated among the General Account and the Divisions of
Separate Account Eleven. If the death benefit equals a percentage of the cash
value then a partial withdrawal will decrease the face amount by any amount by
which the partial withdrawal plus the applicable surrender charge exceeds the
difference between the death benefit and the face amount. The face amount will
be decreased in the following order:
1. The face amount at issue, excluding riders; and
2. Any increases in the same order in which they were issued.
No partial withdrawal will be processed which will result in the face amount,
excluding riders, being decreased below the minimum face amount shown on the
policy specifications page.
We reserve the right to change the minimum amount or the number of times you
may make a partial withdrawal. We also may assess a transaction charge for a
withdrawal.
SURRENDER CHARGE
A surrender charge will apply upon surrender, upon lapse, upon a partial
withdrawal that reduces the face amount, or upon a decrease in face amount for
up to 15 years from the policy's Issue Date or for up to 15 years following
the effective date of any increase in face amount.
The surrender charge is the sum of A plus B, (the "Surrender Charge Amount")
multiplied by the applicable percentage as shown on the Surrender Charge
Schedule page, plus the surrender charge for any increase in face amount.
A. The Target Premium Surrender Charge Factor as shown on the policy
specifications page multiplied by the lesser of: 1) the total premiums
paid, excluding any premiums paid for an increase; and 2) the target
premium as shown on the Surrender Charge Schedule page.
B. The Excess Premium Surrender Charge Factor as shown on the policy
specifications page multiplied by the total premiums paid, excluding any
premiums paid for an increase, in excess of the target premium, if any,
as shown on the Surrender Charge Schedule page.
The surrender charge for an increase in face amount is the sum of A plus B,
(the "Surrender Charge Amount") multiplied by the applicable percentage as
shown on the Surrender Charge Schedule page for that increase.
A. The Target Premium Surrender Charge Factor as shown on the policy
specifications page for that increase multiplied by the lesser of: 1)
the total premiums allocated to that increase; and 2) the target premium
for that increase. The target premium for the increase will be shown on
the Surrender Charge Schedule page for the increase.
B. The Excess Premium Surrender Charge Factor as shown on the policy
specifications page for that increase multiplied by the total premiums
paid for that increase in excess of the target premium, if any, as shown
on the Surrender Charge Schedule page.
The premium allocated to an increase for purposes of determining the surrender
charge will be based on the rules established by the Securities and Exchange
Commission.
The surrender charges for this policy will not exceed the limits established
by the SEC.
10688 6.07
(1/95)
<PAGE>
<PAGE>
A surrender charge will apply to any decrease in face amount. A decrease in
face amount may decrease some or all of the initial face amount and increases
in face amount as provided in Section 5. A partial withdrawal may cause a
decrease in face amount as provided above and, therefore, a surrender charge
may be taken. The amount of the surrender charge applied because of a decrease
in face amount is defined on the surrender charge schedule page for the face
amount being decreased. The surrender charge will be allocated among the
General Account and the Divisions of Separate Account Eleven in the same
proportion that the cash value in the General Account and the cash value in
each Division bears to the total cash value of the policy minus the cash value
in the Loan Account.
POSTPONEMENT OF PAYMENTS OR TRANSFERS
We will usually pay any amounts payable on surrender, partial withdrawal, or
policy loan allocated to the Divisions of Separate Account Eleven within seven
days after written notice is received. We will usually pay any death benefit
proceeds within seven days after we receive due proof of claim. Payment of any
amount payable, from the Divisions of Separate Account Eleven, on surrender,
partial withdrawal, policy loan or death may be postponed whenever:
1. The New York Stock Exchange is closed (other than customary weekend and
holiday closing) 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 policy
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 net assets of
Separate Account Eleven.
We may defer payment of the portion of any amount payable from the General
Account on surrender, or partial withdrawal for not more than six months. If
we defer payment for 30 days or more, we will pay interest at the rate of
2 1/2% per year for the period of deferment.
Transfers may also be postponed under the circumstances listed above.
We may defer payment of the portion of any policy loan from the General
Account for not more than six months. No payment from the General Account to
pay premiums on this policy will be deferred.
CONTINUATION OF INSURANCE
If all premium payments cease, the insurance provided under this policy,
including benefits provided by any rider attached to this policy, will
continue in accordance with the provisions of this policy for as long as the
cash surrender value is sufficient to cover the monthly deductions.
BASIS OF COMPUTATION
The minimum cash values and net single premiums are based on 1) the 1980
Commissioners Standard Ordinary, Male or Female, Smoker or Non-Smoker
Mortality Tables, age nearest birthday; and 2) for amounts allocated to the
General Account, compound interest at an annual rate of not less than the
General Account cash value guaranteed interest rate shown on the policy
specifications page. There is no minimum cash value guaranteed interest rate
for amounts allocated to the Divisions of Separate Account Eleven.
All values are at least equal to those required by any applicable law of the
state that governs your policy. We have filed a detailed statement of the
method of calculating cash values and reserves with the insurance supervisory
official of that state.
10688 6.08
(1/95)
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<PAGE>
10. PAYMENT OF POLICY BENEFITS
PAYMENT
A lump sum payment will be made as provided on the face page.
INTEREST ON PROCEEDS
We will pay interest on proceeds from the date of the insured's death to the
date of payment. Interest will be at an annual rate determined by us, but
never less than the guaranteed rate of 4.0%.
EXTENDED PROVISIONS
Provisions for settlement of proceeds different from a lump sum payment may
only be made upon written agreement with us.
00765 7.01
(1/95)
<PAGE>
<PAGE>
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
PARTICIPATING
GENERAL
AMERICAN
LIFE INSURANCE COMPANY
13045 TESSON FERRY RD.
ST. LOUIS, MISSOURI 63128
10098
(1/95)
<PAGE>
<PAGE>
ACCIDENTAL DEATH BENEFIT RIDER
ISSUED BY GENERAL AMERICAN LIFE INSURANCE COMPANY
PLEASE READ THIS RIDER CAREFULLY
The waiting period in the incontestability provision is different from that
in the policy and begins on the effective date of this rider.
If we have approved this rider as a part of this policy, the benefit amount
of this rider will be shown on the Policy Specifications page. This rider is
subject to all applicable terms and provisions of the policy; except as
modified herein.
ACCIDENTAL DEATH BENEFIT
This benefit is subject to the restrictions and provisions of this rider. We
will pay the amount of this benefit as part of the policy proceeds. We must,
however, receive due proof that the insured died:
1. While this rider is in force; and
2. Within 120 days from the date of an accidental injury; and
3. Directly and independently of all other causes from accidental bodily
injury. Except for drowning, there must be visible evidence of a contusion
or wound on the exterior of the body. If the injury is internal, it must
be visibly manifested through an autopsy.
RISKS NOT ASSUMED
We will not pay this benefit if the insured's death results directly or
indirectly from any of the following (nor will we pay this benefit if the
insured's death was caused by or contributed to by any of these conditions):
1. Self-inflicted injury while sane or insane.
2. Any reasonably forseeable injury.
3. Any bodily or mental infirmity or disease existing before or which
commences after the accidental injury.
4. Any medical or surgical treatment, unless such treatment is a result
of a covered accidental injury.
5. Any infection, other than a bacterial infection which occurs as a
result of a covered accidental injury.
6. The entry into the body, in any manner, whether voluntary or involuntary,
of any of the following unless taken as prescribed by a licensed
physician:
a. any intoxicant, excitant, hallucinogen; or
b. any other narcotic, drug or controlled substance.
7. The entry into the body, in any manner, whether voluntary or involuntary,
of any of the following, unless involuntary in the course of employment:
a. any gas; or
b. any poison or poisonous substance.
8. Voluntary participation in an assault.
9. Voluntary participation in a felony.
10. Voluntary participation in a riot.
11. Injury which is a result of war or any act of war while the insured is
in the military, naval, or air forces of any country. Injury while in
any auxiliary or civilian combatant or non-combatant unit. "Any country"
includes any international organization or the combination of countries
at war. "War" includes undeclared war.
12. Travel or flight in or on a descent from any kind of aircraft if the
insured as a pilot, officer, or other member of the crew of the aircraft;
or is giving or receiving any kind of training or instruction; or has any
duties aboard the aircraft; or is being flown for the purpose of any
descent from the aircraft. "Aircraft" includes rocket craft or any other
vehicle, conveyance or device designed for travel or other movement in or
beyond the earth's atmosphere.
1087000 1
(9/92)
<PAGE>
<PAGE>
TERMINATION
You may terminate this rider as of any monthly anniversary following a
proper written request. If this rider is not already terminated it will
terminate on the date when any of the following events first occurs:
1. The policy anniversary nearest age 70 of the insured; or
2. The lapse of the policy; or
3. The surrender of the policy; or
4. The maturity of the policy; or
5. The date of death of the insured.
COST OF INSURANCE
The cost of insurance for the accidental death benefit is determined on a
monthly basis. The cost of insurance for a policy month is calculated as (a)
multiplied by (b), where:
a. is the cost of insurance rate for this benefit; and
b. is the amount of accidental death benefit.
The cost of insurance rate for this benefit is based on the attained age
and rate class of the insured. Cost of insurance rates will be determined by
us based on expectations as to future experience. However, these rates will
not exceed those shown in the Guaranteed Cost of Insurance Rates for
Accidental Death Benefit Rider.
Each monthly anniversary this rider is in force, the cost of insurance for
the rider (as determined above) will be added to the monthly deduction as
defined in the Guaranteed Values section or the Cash Values section of the
basic policy. This increased monthly deduction will be used to determine the
cash value of the policy on such monthly anniversary.
INCONTESTABILITY
We cannot contest this rider after it has been in force during the lifetime of
the insured for two years from its date of issue. We cannot contest any
reinstatement of this rider after it has been in force during the lifetime of
the insured for two years from the date we approve a reinstatement.
GENERAL PROVISIONS
We will have the right to examine the body of the insured. We also will have
the right to require an autopsy where not forbidden by law.
You may apply for reinstatement of the policy with or without this rider. We
have the right to decide whether to approve the reinstatement of the policy
with or without this rider.
The date of issue and effective date of this rider and the policy are the same
unless another effective date for this rider is shown below.
- ----------------------
EFFECTIVE DATE
/s/ Robert J. Banstetter /s/ Richard A. Liddy
V.P., GENERAL COUNSEL
AND SECRETARY PRESIDENT AND CEO
General
American
LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI 63166
[Logo]
1087000 2
(9/92)
<PAGE>
<PAGE>
ADDITIONAL INSURED FAMILY TERM RIDER
PLEASE READ THIS RIDER CAREFULLY. TERM INSURANCE INVOLVED.
THE WAITING PERIODS IN THE SUICIDE AND/OR INCONTESTABILITY ARE DIFFERENT FROM
THOSE IN THE POLICY AND BEGIN ON THE EFFECTIVE DATE OF THE RIDER.
If this rider is approved, it will become a part of the policy. This rider is
subject to all applicable terms and provisions of the policy. The policy
specifications page shows the rider amount.
LIFE INSURANCE BENEFIT
We will pay the amount of this rider to the beneficiary if the additional
insured dies while this rider is in force. We must receive proof that the
death occurred before the expiry date of this coverage.
DEFINITION OF ADDITIONAL INSURED
The additional insured is the person as designated on the policy
specifications page.
DEFINITION OF INSURED
The person whose life is insured under the policy.
EXPIRY DATE OF INSURANCE
The expiry date of this rider is the policy anniversary nearest:
a. the 100th birthday of the additional insured; or
b. the 100th birthday of the insured,
whichever occurs first.
OWNER
During the lifetime of the insured, you, the owner of the policy will also be
the owner of this rider. If you die while the insured is living, all rights of
ownership will go to the insured. If you are also the insured and you die, then
all rights of ownership will go to the additional insured. This right of
ownership will be with respect to insurance then in force under this rider.
THE BENEFICIARY
The beneficiary of any benefit payable in accordance with the terms of this
rider, shall be as stated in the application for this rider.
You may change the beneficiary designation of the insurance on the life of any
person insured under this rider. This change must be done during the lifetime
of such person. To make such a change you must file a proper written request
with us. This request must be accepted by us at our Home Office. We have the
right to request the policy for endorsement. If we accept your request, the
change will take effect as of the date of the request. This change will be
subject to any payment or action we took before we received your written
request for the change.
The beneficiary designation and any changes made will be subject to any
assignment of the policy.
ASSIGNMENT
This rider cannot be assigned by itself. Only if the policy is assigned will
this rider then be subject to an assignment. An assignment of the policy will
include the interest of the assignor in and to this rider. The interest of
the insured and all owners and beneficiaries under this rider will also be
included.
SUICIDE EXCLUSION
If the additional insured dies by suicide, while sane or insane, within two
years from the rider issue date; (or within the maximum period permitted by
laws of the state in which this policy was delivered, if less than two years)
the amount payable under this rider will be limited to the monthly deductions
made on this rider. This amount will be paid according to the provisions of
the policy to which this rider is attached for the payment of death claim
benefits on any such person.
This provision does not apply if the policy this rider is attached to is
issued to a Missouri citizen, unless the additional insured intended suicide
when this rider was applied for.
1084000 1
(1/89) AIFT
<PAGE>
<PAGE>
MISSTATEMENT OF AGE, SEX
If the age and/or sex of the additional insured is incorrectly stated, we
will adjust all benefits under this rider to the amount that would have been
provided at the correct age and sex.
COST OF INSURANCE
The cost of insurance for the Additional Insured Family Term Rider is
determined on a monthly basis. This cost, for a policy month, is determined
by the amount of insurance for this rider divided by 1000 and then multiplied
by the monthly cost of insurance rate for this rider at the additional
insured's attained age.
The cost of insurance rate for this benefit is based on the attained age, sex
and rate class of the additional insured. Cost of insurance rates will be
determined by us based on expectations as to future experience. However,
these rates will not exceed those shown in the Table of Guaranteed Cost of
Insurance Rates for the Additional Insured Family Term Rider.
Each monthly anniversary this rider is in force, the cost of insurance for
the rider (as determined above) will be added to the monthly deductions
as defined in the Cash Values section of the basic policy. This increased
monthly deduction will be used to determine the cash value of the policy on
such monthly anniversary.
TERMINATION
You may terminate this rider as of any monthly anniversary following a written
request to us. We may require the policy and the rider for endorsement. This
rider will terminate when any of the following events first occurs:
1. The lapse of the policy; or
2. The surrender of the policy; or
3. The maturity of the policy; or
4. The date of death of the insured; or
5. The rider expiry date; or
6. The date the rider is exchanged for a policy; or
7. The date of death of the additional insured.
REINSTATEMENT
This rider may be reinstated before its expiry date within five years
after the date of policy lapse if:
1. The policy is also being reinstated; and
2. We receive satisfactory proof that the additional insured is insurable
by our standards; and
3. The additional insured is alive on the date we approve the request for
reinstatement. If the additional insured is not alive, such approval is
void and of no effect.
We have the right to approve the reinstatement of the policy with or without
this rider.
INCONTESTABILITY
This rider will be incontestable after it has been in force during the life of
the additional insured for two years from its date of issue. We cannot contest
any reinstatement of this rider after it has been in force during the lifetime
of the additional insured for a period of two years from the date we approve
a reinstatement.
CONVERSION PRIVILEGE
While this rider is in force, you may exchange it for a new policy by making a
written request prior to the later of:
1. Age 65, or
2. The fifth anniversary of the rider, but not beyond age 80.
1084000 2
(1/89) AIFT
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The new policy will be on a permanent plan of life insurance then offered by us
at the date of issue of your new policy.
It will be subject to the following provisions:
1. The amount converted will not be greater than the Rider Amount.
2. The amount will be subject to the regular company limits on the date of
issue of the new policy for the chosen plan of insurance. If the amount
to be converted is less than our regular issue limits we may substitute
an alternate plan. Regardless of amount, some plan will always be made
available.
You do not need to provide proof that the additional insured is then insurable
by our standards if the new policy contains no provision that would increase
the insurance risk beyond that of this rider.
Otherwise, the exchange may be made only if the insured is then insurable. We
will use the same underwriting standards as we are then using on applications
for new insurance when considering whether the insured is insurable.
The date of issue of the new policy will be the date of the exchange. You
must pay the first premium on the new policy. You pay all premiums after the
first one in accordance with the terms of the new policy. The premium rate for
the new policy will be based on the age and sex of the additional insured and
our rates on the date of the exchange, and the risk classification of this
rider.
LIMITED CONTINUATION AND EXCHANGE PRIVILEGE UPON DEATH OF INSURED
If the insured dies while this rider is in force prior to the policy anniversary
nearest the 65th birthday of the additional insured or the fifth anniversary
of the rider, but not beyond age 80, there will be a limited continuation and
exchange privilege for 60 days. The face amount of this rider will remain in
effect without further charge until the 60 days expire. At the expiration of
the 60 days this rider may be exchanged according to the provisions as stated
in Conversion Privilege.
If the insured dies while this rider is in force after the policy anniversary
nearest the 65th birthday of the additional insured, the unearned portion of
the cost of insurance charge will be returned and coverage under this rider
will terminate.
The date of issue and effective date of this rider and the policy are the same
unless another effective date is shown below.
- ----------------------
DATE
/s/ Helen Couranz /s/ H. Edwin Trusheim
SECRETARY CHAIRMAN AND CEO
General
American
LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI 63166
[Logo]
1084000 3
(1/89) AIFT
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CHILDREN'S LIFE INSURANCE RIDER
PLEASE READ THIS RIDER CAREFULLY
There is term insurance involved. Also, the waiting periods in the suicide
and incontestability clauses are different from those in the policy and
begin on the effective date of the rider.
If we have approved this rider as a part of this policy and the policy's
minimum premium has been paid, this rider will become a part of the policy.
This rider is subject to all applicable terms and provisions of the policy.
The Policy Specifications page or, if this rider is added after issue, the
request for policy change shows the rider amount.
LEVEL TERM LIFE INSURANCE BENEFIT
We will pay the amount specified below to the beneficiary under this rider
upon the death of the insured child while this rider is in force. We must
receive proof that the death occurred before the expiry date of insurance
on such insured.
AMOUNT OF INSURANCE
The amount of insurance for this rider on each insured child is the rider
amount. Insurance on each child will become effective on the later of:
1. The date the child attains the age of 15 days; or
2. The day the child is first released from the hospital after birth.
DEFINITION OF INSURED
The insured is a person whose life is covered under the policy to which this
rider is attached.
DEFINITION OF INSURED CHILD
An insured child is a child who, at the time of application for this rider,
was:
1. A natural child, a stepchild or a child legally adopted who is named
as such in the application and
2. Unmarried; and
3. Living in the household of the insured; and
4. At least 15 days of age; and
5. Initially released from the hospital after birth; and
6. Less than insuring age 18 on the first date of any part of the
application.
A natural child, a stepchild or an adopted child named in the application
but who has not yet reached age 15 days will become an insured child when:
1. The child does reach 15 days; or
2. The day the child is first released from the hospital after birth.
Any child eliminated from the application by an amendment would not be covered.
A child who is born to the insured after the application for this rider, and
while this rider is in force, will become an insured child on the later of the
following dates:
1. The day the child attains age 15 days; or
2. The day the child is first released from the hospital after birth.
A child who is legally adopted by the insured after the application for this
rider, and while this rider is in force, can become an insured child. This
child must be under insuring age 18. If these requirements are met the
coverage for this child will begin on the date of adoption.
EXPIRY DATES OF INSURANCE
The expiry date of this rider is the policy anniversary nearest the 65th
birthday of the insured. If this rider has not already expired or been
cancelled, then insurance on each insured child will expire on the policy
anniversary nearest the 23rd birthday of such child.
1083400 1
(5/88) CIR
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PAID-UP TERM INSURANCE IN EVENT OF DEATH OF INSURED
Except as provided under the Suicide Exclusion provision of this rider, if the
insured's death occurs while this rider is in force, it will be continued on
a fully paid-up term insurance basis. This fully paid-up benefit will be
subject to the terms of this rider. We must receive proof of the death of the
insured. Monthly deductions for this rider must be paid to a current date.
Any child who would have become an insured child if the insured's death had not
occurred, will become an insured child in accordance with the provisions of
this rider.
OWNER
Unless otherwise provided, during the lifetime of the insured, the owner of the
policy will be the owner of this rider. Upon the death of the insured, all
such rights with respect to insurance then in force under this rider on the
life of an insured child, will, unless otherwise provided, vest in such insured
child.
THE BENEFICIARY
The beneficiary of any benefit payable as a result of the death of any insured
child will be:
The insured, if living; if not then the estate of the person upon whose
death payment is to be made; unless:
1. Otherwise provided in the application; or
2. Changed by you.
You may change the beneficiary designation of the insurance on the life of
any person insured under this rider. This change must be done during the
lifetime of such person. To make such a change you must file a proper
written request with us. This request must be accepted by us at our Home
Office. We have the right to request the policy for endorsement. If we
accept your request, the change will take effect as of the date of the
request. This change will be subject to any payment or action we took before
we received your written request for the change.
The beneficiary designation and any changes made will be subject to any
assignment of the policy.
ASSIGNMENT
This rider cannot be assigned by itself. Only if the policy is assigned will
this rider then be subject to an assignment. An assignment of the policy
will include the interest of the assignor in and to this rider. The interest
of the insured and all owners and beneficiaries under this rider will also
be included.
INCONTESTABILITY
We cannot contest this rider, after it has been in force during the lifetime
of each child insured for a period of two years from its date of issue. We
cannot contest any reinstatement of this rider, after it has been in force
during the lifetime of each child insured for a period of two years from
the date we approve a reinstatement.
SUICIDE EXCLUSION
If the insured dies by suicide, while sane or insane, within two years from
the issue date of this rider; (or within the maximum period permitted by
laws of the state in which this policy was delivered, if less than two
years), this rider will terminate and a death benefit will be payable. The
amount payable will be equal to the amount of monthly deductions made on
this rider. This death benefit will be paid according to the provisions of
the policy to which this rider is attached for the payment of death claim
benefits on any such person. This provision does not apply if the policy
this rider is attached to is issued to a Missouri citizen, unless the insured
intended suicide when this rider was applied for.
Within 31 days after any such death by suicide the Conversion Privilege of
this rider will be available to each insured child survivor. We must receive a
proper written application within this 31 days.
REINSTATEMENT
Within five years after the date of policy lapse and prior to this rider's
expiry date, you may apply for reinstatement if:
1. This rider has not already been surrendered for cash; and
1083400 2
(5/88) CIR
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2. The policy is also being reinstated; and
3. You submit proof satisfactory to us that each person to be insured
is insurable by our standards; and
4. Each person to be insured must be alive on the date we approve the
request for reinstatement. If each person to be insured is not alive,
such approval is void and of no effect.
You may apply for reinstatement of the policy with or without this rider.
We have the right to decide whether to approve the reinstatement of the
policy with or without this rider. We will incur no liability for the death of
an insured child who died after the end of the grace period of the policy and
before the date of reinstatement.
INCORRECT AGE
The date that coverage under this rider expires or terminates will be based
on the correct age of each person insured.
COVERSION PRIVILEGE
The term insurance on the life of each person insured under this rider may
be exchanged for a policy. This exchange will be without evidence of
insurability. The new policy may be for a level premium level death benefit
whole life plan then offered by us. This exchange is subject to the
following provisions:
1. The term insurance must be in force.
2. We must receive a proper written application within 31 days before the
date this term insurance is to expire.
3. The face amount of the new policy may not be for more than five times
the amount of insurance under this rider for an insured child.
4. The plan will be subject to our regular issue limits on the date of
issue of the new policy.
The first premium payment for the new policy must be made at the time of
application. Future premiums are to be paid according to the terms of the
new policy.
The date of issue for the new policy will be the date the term insurance
under this rider expires on the life of the person to be insured by the new
policy. That person will not be covered under the new policy until the term
insurance expires.
The premium rate for the new policy will be based on the following:
1. The age nearest birthday of the person to be insured on the date of
issue of the new policy; and
2. The risk class of such person under this rider; and
3. The set of rates used by us on the date of issue of the new policy.
The new policy may include rider benefits only with our consent, subject to
our requirements.
SURRENDER OF PAID-UP TERM INSURANCE
You may surrender this rider for its cash value while it is continued as
paid-up term insurance due to the death of the insured. If you surrender
this rider within 31 days after a policy anniversary date, the cash value of
such insurance will not be less than the cash value of such insurance on
that anniversary.
The cash value of the paid-up term insurance is the net single premium for
such benefits at the attained age of the person insured, at the time of
surrender. It is computed on the basis of:
1. The Commissioner's 1980 Standard Ordinary Male or Female Mortality
Table; and
2. Interest at the rate of 5% a year compounded annually; and
3. Continuous functions.
The information on the amount of this cash value will be furnished upon
request.
1083400 3
(5/88) CIR
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<PAGE>
MONTHLY COST OF INSURANCE
The cost of insurance for the Children's Insurance Rider is determined on a
monthly basis. The cost of insurance for a policy month is calculated as (a)
multiplied by (b), where:
a. is the cost of insurance rate for this rider; and
b. is the amount of insurance for this rider.
The cost of insurance rate for this benefit is based on the attained age of
the insured. Cost of insurance rates will be determined by us based on
expectations as to future experience. However, these rates will not exceed
those shown in the Guaranteed Cost of Insurance Rates for Children's
Insurance Rider.
Each monthly anniversary this rider is in force, the cost of insurance for
the rider (as determined above) will be added to the Monthly Deductions as
defined in the basic policy, This increased monthly deduction will be used to
determine the cash value of the policy on such monthly anniversary.
TERMINATION
You may terminate this rider as of any monthly anniversary following a
written request to us. We may require the policy and this rider for
endorsement.
This rider will terminate when any of the following events first occurs:
1. The date the policy is lapsed; or
2. The date the policy is surrendered; or
3. The date the policy matures or terminates, other than by death of the
insured; or
4. The rider expiry date.
GENERAL
This rider will neither create nor increase any dividend on the policy.
The date of issue and effective date of this rider and the policy are the
same unless another effective date is shown below.
- ----------------------
DATE
/s/ Helen Couranz /s/ H. Edwin Trusheim
SECRETARY PRESIDENT
General
American
LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI 63166
[Logo]
1083400 4
(5/88) CIR
<PAGE>
<PAGE>
GUARANTEED OPTION TO INCREASE THE FACE AMOUNT RIDER
If this rider is listed on the Policy Specifications page, it is part of the
policy. It is subject to all of the provisions of the policy which are
consistent with the provisions of this rider. The policy specifications page
show the option amount.
REGULAR OPTION DATES
Regular option dates are after the date of issue of the policy, on the policy
anniversaries nearest age 25, 28, 31, 34, 37, and 40 of the insured.
REGULAR OPTIONS TO INCREASE FACE AMOUNT
On each regular option date you may increase the face amount on the life of
the insured. The policy and this rider must be in force.
No evidence of insurability will be required for this increase. The amount
of this increase will not be more than the option amount.
This increase in face amount will be subject to the following:
1. We must receive a proper written application for the increase in our
Home Office. The application must be made to us no later than the
regular option date. The application also must not be received earlier
than 60 days before the regular option date.
2. The date of issue of the increase will be the regular option date.
3. The increase will become effective on its date of issue.
4. A regular option will not be available if cancelled by use of a special
option.
SPECIAL OPTION PERIODS
This rider provides for special option periods. Each of these periods will be
available if they begin before all regular options have expired or have been
cancelled. Each special option period will begin on any of the following:
1. The date of the insured's legal marriage; or
2. The date of the birth of an insured's child.
Each special option period ends 31 days after it has begun or, if earlier,
the date this rider terminates.
SPECIAL OPTIONS TO INCREASE FACE AMOUNT
During each special option period you may increase the face amount on the life
of the insured. The basic policy and this rider must be in force.
No evidence of insurability will be required for the increase. This increase
in face amount will be subject to the following:
1. The increase will not be more than the option amount. An exception to
this would be granted in the case of a multiple birth. The face amount
then will not be more than the lesser of the following:
a. The regular option amount times the number of children born; or
b. The number of options you have left times the option amount.
2. We must receive the following items in our Home Office:
a. A proper written application for the increase; and
b. Proof of marriage, and the date; or
c. Proof of birth, and the date.
We must receive these items within the special option period.
3. The date of issue of this increase will be the date of the application.
4. The increase will become effective on its date of issue.
82-GIO 1
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5. The exercise of a special option will cancel that next regular option
which:
a. will become available within or after that special option period;
and
b. has not already been cancelled.
The exercise of a special option due to a multiple birth will cancel the
number of unexpired and uncancelled regular options equal to the number of
children born; or, if less, will cancel the total number of regular options
you have left.
Unexpired regular options are those for which regular option dates have not
yet occurred. Cancelled regular options are unexpired regular options which
are not available due to the exercise of special option.
AUTOMATIC INSURANCE DURING SPECIAL OPTION PERIOD
During each special option period, insurance on the life of the insured for
the amount available under the special option as defined above shall be in
effect. This amount, with the basic policy proceeds, will be payable to the
same beneficiary named in the basic policy.
1. This insurance will cease on the date any one of the following events
first occur:
a. the end of the special option period; or
b. the date of a written application for the increase under the
special option; or
c. the date this rider terminates.
2. Before we make a payment for this insurance we must receive proof:
a. that the death of the insured occurred while this insurance and
this rider were in effect; and
b. of the marriage or birth which started the beginning of the Special
option Period for this amount of insurance.
TERMINATION OF AGREEMENT
Your right to increase the face amount on a regular option date will not
extend beyond such date. Your right to increase the face amount during any
special option period will not extend beyond the end of such period.
This rider will terminate on the date when any of the following events first
occurs:
1. The monthly anniversary following a proper written request for
termination. We may require the policy and this rider for endorsement; or
2. The lapse of the policy; or
3. The surrender of the policy; or
4. The policy anniversary of the basic policy nearest the 40th birthday of
the insured; or
5. When all regular options expire or are cancelled; or
6. The maturity of the policy; or
7. The date of death of the insured.
COST OF INSURANCE
The cost of insurance for the Guaranteed Option to Increase the Face Amount
Rider is determined on a monthly basis. The cost insurance for a policy month
is calculated as (a) multiplied by (b), where:
a. is the cost of insurance Rate for this benefit; and
b. is the option amount shown on the Policy Specifications Page.
The cost of insurance rate for this benefit is based on the issue age, sex
and rate class of the insured. Cost of insurance rates will be determined by
us based on expectations as to future experience. However, these rates will
not exceed those shown in the Guaranteed Cost of Insurance rates for Guaranteed
Option to Increase the Face Amount Rider.
Each monthly anniversary this rider is in force, the cost of insurance for the
rider (as determined above) will be added to the monthly deduction as defined
in the Guaranteed Values section or the Cash Values section of the basic
policy. This increased monthly deduction will be used to determine the cash
value of the policy on such monthly anniversary.
82-GIO 2
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GENERAL PROVISIONS
Any reinstatement of this rider will not reinstate any option to increase the
face amount which has terminated prior to the date of such reinstatement.
The increase in the face amount which results from the exercise of this option
will be subject to any limitations of risk which are in the policy. The rate
class of the insured at issue of this agreement will apply to the increase.
If this policy includes a Waiver of Monthly Deductions Rider, such benefit
will apply to the increase in the face amount.
If this policy includes an Accidental Death Benefit Rider, such benefit may
also be increased upon exercise of this option. The amount by which such
benefit may be increased cannot exceed the lessor of:
a. the amount that the face amount is being increased by exercise of this
option; and
b. the amount of the Accidental Death Benefit in this policy immediately
prior to the exercise of this option.
In addition, the total amount of accidental death benefit in force on the
insured with us must not exceed our then current limits.
INCONTESTABILITY
This rider will be incontestable after it has been in force during the life
of the insured for two years from its date of issue.
DATE OF ISSUE
The date of issue of this rider is the same as the date of issue of the
policy unless another date of issue is shown below.
- ---------------------
DATE
/s/ Helen Couranz /s/ H. Edwin Trusheim
SECRETARY PRESIDENT
GENERAL
AMERICAN [LOGO]
LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI 63166
82-GIO 3
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GUARANTEED SURVIVOR PURCHASE OPTION RIDER
ISSUED BY GENERAL AMERICAN LIFE INSURANCE COMPANY
PLEASE READ THIS RIDER CAREFULLY
THE WAITING PERIODS FOR SUICIDE AND INCONTESTABILITY ARE DIFFERENT FROM THOSE
IN THE POLICY AND BEGIN ON THE EFFECTIVE DATE OF THE RIDER.
If this rider is offered and accepted, it will become a part of the policy.
This rider is subject to all applicable terms and provisions of the policy,
except as modified herein. The Policy Specifications page or, if this rider is
added after issue, the Policy Specifications page for the Policy Change shows
the Option Amount and the Monthly Expense Charge Rate.
DESIGNATED LIFE
The Designated Life is named in the application for this rider. The Designated
Life may not be changed.
OPTION PERIODS
The Option Periods for this rider are elected at the time of application. An
Option Period that starts on the date of death of the Insured will always be
provided. Unless the Owner elects otherwise, Option Periods will also start
on the tenth anniversary of the rider and on the rider anniversary nearest the
Designated Life's 65th birthday.
The Option Period ends on the earlier of the following dates:
1. 270 days after the Option Period begins if the Option Period begins on
the date of the death of the Insured; otherwise 30 days after the Option
Period begins.
2. The date when the current option or any portion of it is exercised. We
must be notified of this date.
TOTAL OPTION AMOUNT
The Total Option Amount is the amount shown on the Policy Specifications page
as "Guaranteed Survivor Purchase Option Rider" or, if this rider is added after
issue, on the Policy Specifications page for Policy Change as "Guaranteed
Survivor Purchase Option Rider."
CURRENT OPTION AMOUNT
The Current Option Amount is the Total Option Amount divided by the number of
Option Periods elected in the application for this rider. In the case of an
Option Period that begins on the date of death of the Insured, the Current
Option Amount is the Total Option Amount reduced by the face amount of any
option policies previously purchased.
OPTION TO PURCHASE INSURANCE
The Owner may purchase an option policy on the Designated Life during an
Option Period that begins during the lifetime of the Insured. The Insured's
Beneficiary may purchase an option policy on the Designated Life during the
Option Period that begins on the date of death of the Insured. The Owner or
Beneficiary may transfer to any person or entity its right to buy the option
policy on the Designated Life. However, we must receive written notice, in a
form satisfactory to us, at our Home Office before such transfer will take
effect.
No evidence of insurability will be required for this option policy. The face
amount of this option policy will not be more than the Current Option Amount.
This option policy will be subject to the following:
1. We must receive written application for the option policy in our Home
Office during the Option Period. The Designated Life must consent to
the insurance by signing the application for the option policy.
2. This rider must be in force at the beginning of the Option Period.
3. The Designated Life must be living at the end of the Option Period.
1R19 1.01
(3/98)
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FEATURES OF OPTION POLICY
1. The option policy may be any permanent, non-variable individual life
plan offered by us on the date of issue of the option policy. The
option policy will be subject to the rules in effect at the time the
option is exercised. The premiums or charges for the policy will be
based on the following:
a. The insurance age and (in a non-unisex policy) sex of the
Designated Life on the date of issue of the option policy; and
b. The risk class of the Designated Life as of the date of issue of
this rider. (This will be determined and set forth on the Policy
Specifications page or, if this rider is added after issue, on
the Policy Specifications page for Policy Change.)
2. The face amount of the option policy:
a. Will not be less than the minimum required amount for the plan
requested; and
b. Will not exceed the Current Option Amount.
3. The coverage of the option policy will start on the day after the end
of the Option Period.
4. Riders for extra benefits may be added to the option policy with our
consent. We may require satisfactory proof that the Designated Life is
insurable for the riders at the time this option is exercised.
5. At the request of the person authorized to purchase the option policy,
the option policy may be any level premium, level death benefit whole
life plan offered by us on the date of issue of this rider. The
premium rate for the policy will be based on the following:
a. The age nearest birthday of the Designated Life on the date of
issue of this rider; and
b. The rate class of the Designated Life as of the date of issue of
this rider. (This will be determined and set forth on the Policy
Specifications page); and
c. The rates in use by us on the date of issue of the new policy.
6. If a policy described in (5) above is requested, the face amount of the
new policy:
a. Will not be less than the minimum amount we were issuing on the date
of issue of this rider for the plan requested; and
b. Will not exceed the Option Amount.
7. If a policy described in (5) above is requested, the Initial Payment for
the new policy will be:
a. The interpolated cash value of the new policy as of the end of this
Option Period; plus
b. A pro rate premium for the new policy, if any, for the period from
the end of the Option Period to the next anniversary of the new
policy.
All references to cash value refer to the guaranteed cash value of the
new policy.
8. If a policy described in (5) above is requested, the first regular
premium payable under the new policy, if any, is due on the first policy
anniversary following the end of the Option Period. If any premium
remains unpaid at the end of the grace period as described in the new
policy, then the automatic option as defined in the new policy will apply
unless another option has been elected.
TEMPORARY INSURANCE
We will pay the Current Option Amount to the Beneficiary upon the death of the
Designated Life during the Option Period except for simultaneous death of the
Insured and Designated Life. If both the Insured and the Designated Life die
and it is not possible to determine the sequence of deaths, then we will
provide such temporary insurance for one-half of the Current Option Amount
available at the date of death of the Insured. If payable, the benefit will
become part of the proceeds of the policy.
1R19 1.02
(3/98)
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REINSTATEMENT
This rider may be reinstated within five years after the date of policy
lapse if:
1. The policy is also being reinstated; and
2. You submit proof satisfactory to us that the Designated Life is
insurable by our standards; and
3. The Designated Life is alive on the date we approve the request for
reinstatement. If the Designated Life is not alive, such approval
is void and of no effect.
MONTHLY EXPENSE CHARGE
The Monthly Expense Charge for this rider is deducted from the policy's
cash value on the monthly anniversary. The Monthly Expense Charge is
determined by the Total Option Amount for this rider, reduced by the face
amount of any option policies purchased, then divided by 1,000 and
multiplied by the Monthly Expense Charge Rate shown on the Policy
Specifications page or, if this rider is added after issue, the Policy
Specifications page for Policy Change.
INCONTESTABILITY
This rider will be incontestable after it has been in force during the
lifetime of the Designated Life for a period of two years from its effective
date. We cannot contest any reinstatement of this rider after it has been in
force during the lifetime of the Designated Life for a period of two years
from the date we approve a reinstatement.
SUICIDE EXCLUSION
If the Designated Life dies by suicide, while sane or insane, during the
Option Period and within two years from the effective date of this rider
(or within the maximum period permitted by laws of the state in which this
policy was delivered, if less than two years), the amount payable under this
rider will be limited to the amount paid for this rider. This amount will be
paid according to the provisions of the policy to which this rider is attached
for the payment of death claim benefits on any such person. This provision
does not apply if the policy to which this rider is attached is issued to a
Missouri citizen, unless the Designated Life intended suicide when this rider
was applied for.
MISSTATEMENT OF AGE AND/OR SEX OF THE INSURED
If the face amount of the policy to which this rider is attached is decreased
due to the misstatement of age and/or (in a non-unisex policy) sex of the
Insured, then the Option Amount stated on the Policy Specifications page will
also be decreased. The decreased Option Amount will bear the same ratio to
the adjusted face amount of this policy as the original Option Amount bore
to the original face amount.
MISSTATEMENT OF AGE AND/OR SEX OF THE DESIGNATED LIFE AND/OR THE INSURED
If the age and/or (in a non-unisex policy) sex has been misstated on the
application, we will adjust the Total Option Amount to be the Total Option
Amount that would have been provided had this information been correctly
stated.
TERMINATION
The right to buy insurance will not extend beyond an Option Period. This
rider will terminate on the date any of the following events first occurs:
1. Upon our receipt of your written request for termination. We may
require the policy and this rider for endorsement; or
2. The date the policy terminates for reasons other than the death of
the Insured; or
3. The date of death of the Designated Life; or
4. The date the Option Period that begins on the date of death of the
Insured ends.
When this rider terminates:
1. All rights under this rider will cease;
2. No further monthly expense charges will be due for this rider; and
3. The policy will be considered as separate and complete without this
rider.
1R19 1.03
(3/98)
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DECREASES IN OPTION AMOUNT
If the face amount of the basic policy is decreased, we will decrease the
Rider Option Amount to the level that we would issue on the smaller policy on
the date such decrease becomes effective. The monthly expense charges for this
rider will be lowered accordingly.
The date of issue and effective date of this rider and the policy are the same
unless another effective date is shown below.
- ---------------------------
EFFECTIVE DATE
/s/ Robert J. Banstetter /s/ Richard A. Liddy
V.P., GENERAL COUNSEL CHAIRMAN, PRESIDENT
AND SECRETARY AND CEO
General
American
LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI 63166
[LOGO]
1R19 1.04
(3/98)
<PAGE>
<PAGE>
INCREASING BENEFIT RIDER
ISSUED BY GENERAL AMERICAN LIFE INSURANCE COMPANY
If this rider is offered and accepted, it will become a part of the policy.
This rider is subject to all applicable terms and provisions of the policy;
except as modified herein. The policy specifications page indicates the
rider and the applicable Increase Percentage Factor.
INCREASING BENEFIT DATES
While this rider is in force, each policy anniversary beginning with the
first and ending with the policy anniversary nearest the insured's 65th
birthday, an increase in the policy's face amount will occur.
INCREASE PERCENTAGE FACTORS
You may elect on the issue date of this rider one of the following Increase
Percentage Factors. The Increase Percentage Factor will apply to the
policy's face amount and to any supplemental coverage with an issue date the
same as this rider's issue date and to any Increasing Benefit Amounts
exercised on previous policy anniversaries.
1. A percentage no less than 2% and no greater than 7.5%. The percentage
must be in .5% increments; or
2. Cost of Living Factor. The Cost of Living Factor is the ratio to three
decimal places, of (a) to (b), but never less than zero, where:
(a) is the average of the Consumer Price Index for All Urban Consumers
for July, August and September of the calendar year preceding the
year in which the factor is to be applied, and
(b) is the corresponding average Index of July, August and September for
the year before the year used in (a).
The Consumer Price Index for All Urban Consumers is published monthly by the
Bureau of Labor Statistics of the United States Department of Labor. If this
Index is discontinued or a new Index series is established on a different
basis, we may establish a new basis for determining the Cost of Living
Factor. You will be given at least 90 days notice of any such change.
INCREASING BENEFIT AMOUNT
The Increasing Benefit Amount will be equal to the face amount on the
anniversary multiplied by:
a) the percentage factor as shown on the policy specifications page; or
b) the Cost of Living Factor; whichever was elected at issue.
Each Increasing Benefit Amount will be applied to the base policy and to any
supplemental coverage in the same proportion as the supplemental coverage was
to the base policy at issue.
Each Increasing Benefit Amount will be subject to the following conditions:
1. It must increase the face amount at least $1,000. If the Increasing
Benefit Amount is less than $1,000, no increase will occur.
2. If the increase is based on a specified percentage factor, the
Increasing Benefit Amount will not exceed the smaller of:
a) the calculated increase; or
b) $100,000
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3. If the increase is based on the Cost of Living Factor, the Increasing
Benefit Amount will not exceed the smallest of:
a) the calculated increase; or
b) 20% of the face amount; or
c) $100,000.
4. The monthly cost of insurance for all increases will be based on the
attained age, risk classification and (in a non-unisex policy) sex of
the insured as of the issue date of this rider.
5. The policy's face amount, including any supplemental coverage, plus the
total of all increases exercised under this rider will be limited to
the Aggregate Limit shown on the policy specifications page.
FACE AMOUNT
At the time the Increasing Benefit Amount is exercised, the policy's new
face amount will be equal to the policy's old face amount plus the
Increasing Benefit Amount.
DECREASE IN FACE AMOUNT
Any decreases in face amount will be processed in the following order:
Under the Change in Face Amount provision in the policy, if a decrease in
face amount is requested, any Increasing Benefit Amounts will be decreased
after:
1. the face amount(s) of any other rider(s) attached to the policy.
2. any requested increase in the base policy's face amount.
Under the Allocation of Partial Withdrawals provision in the policy, if a
partial withdrawal reduces the face amount, any Increasing Benefit Amounts
will be decreased before:
1. the face amount(s) of any other rider(s) attached to the policy.
2. any requested increase in the base policy's face amount.
SELECTION AND ISSUE EXPENSE CHARGES
The selection and issue expense charge for the Increasing Benefit Amount is
a monthly charge which equals the applicable Increasing Benefit Amount times
the selection and issue expense charge rate divided by 1,000. The selection
and issue expense charge rate will never exceed the rate shown on the Policy
Specifications page.
REJECTION OF INCREASE
You will be notified of each Increasing Benefit Amount made under this rider.
Each increase will be automatic. You may reject any increase by notifying us
in writing within 30 days after the policy anniversary on which the increase
is made. The rejection of any increase will result in the termination of this
rider.
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TERMINATION
You may terminate this rider as of any monthly anniversary following a written
request to us. We may require the policy and this rider for endorsement. This
rider will terminate when any of the following events first occurs:
a) the anniversary nearest the insured's 65th birthday; or
b) the rejection of an increase; or
c) the receipt of your request to decrease the face amount; or
d) a decrease in face amount due to a partial withdrawal; or
e) the lapse of the policy; or
f) the insured's date of death; or
g) surrender of the policy; or
h) the policy's face amount, including any supplemental coverage, plus the
total of all increases exercised under this rider equals or exceeds the
Aggregate Limit shown on the policy specifications page.
The date of issue and effective date of this rider and the policy are the same.
/s/ Robert J. Banstetter /s/ Richard A. Liddy
V.P., GENERAL COUNSEL CHAIRMAN, PRESIDENT
AND SECRETARY AND CEO
General
American
LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI 63166
[Logo]
1088100 3
(1/95)
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SUPPLEMENTAL COVERAGE RIDER
ISSUED BY GENERAL AMERICAN LIFE INSURANCE COMPANY
TERM INSURANCE INVOLVED.
If this rider is offered and accepted, it will become a part of the policy.
This rider is subject to all applicable terms and provisions of the policy;
except as modified herein. The policy specifications page shows the rider
amount.
FACE AMOUNT
The face amount of this rider is shown on the policy specifications page.
LIFE INSURANCE BENEFIT
This rider provides term life insurance on the life of the insured shown on
the policy specifications page. We will pay the death benefit of this rider
to the beneficiary if the insured dies while this rider is in force.
The Death Benefit provision in the policy is modified so that where it states
"face amount" it means the policy's face amount plus this rider's face amount.
DECREASES IN RIDER FACE AMOUNT
This rider's face amount will be considered an increase to the policy's face
amount when determining the order in which a decrease in face amount will be
processed:
Under the Change in Face Amount provision in the policy, if a decrease
in face amount is requested, the rider's face amount will be decreased
before the policy's face amount.
Under the Allocation of Partial Withdrawals provision in the policy,
if a partial withdrawal reduces the face amount, the policy's face
amount will be decreased before the rider's face amount.
MONTHLY COST OF INSURANCE
The monthly cost of insurance for the following month is deducted on the
monthly anniversary date. The monthly cost of insurance is 1, below,
multiplied by the excess, if any, of 2 over 3 below:
1. The monthly cost of insurance rate for this rider divided by 1,000.
2. The face amount of this rider divided by the monthly cost of
insurance factor shown on the policy specifications page.
3. Any excess of the policy's cash value over the base policy's death
benefit at the beginning of the policy month.
This rider will be considered an increase to the policy's face amount
when determining the monthly cost of insurance for the policy.
MONTHLY COST OF INSURANCE RATES
The monthly cost of insurance rate for this benefit is based on the
attained age, risk classification and (in a non-unisex policy) sex of the
insured. Monthly cost of insurance rates will be determined by us based
on expectations as to future experience. However, these rates will not
exceed those shown in the Table of Guaranteed Monthly Cost of Insurance
Rates for the Supplemental Coverage Rider.
Each monthly anniversary this rider is in force, the monthly cost of
insurance for this rider (as determined above) will be added to the
monthly deductions as defined in the Cash Values section of the policy.
This increased monthly deduction will be used to determine the cash
value of the policy on such monthly anniversary.
SELECTION AND ISSUE EXPENSE CHARGE
The selection and issue expense charge for this rider is a monthly charge
which equals the rider's face amount times a selection and issue expense
charge rate, divided by 1,000. The selection and issue expense charge rate
for this rider will never exceed the rates shown on the policy specifications
page for the policy's face amount.
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TERMINATION
You may terminate this rider as of any monthly anniversary following a
written request to us. We may require the policy and the rider for
endorsement. This rider will terminate when any of the following events
first occurs:
1. the lapse of the policy; or
2. the surrender of the policy; or
3. the insured's date of death.
4. a requested decrease in face amount which results in this rider's face
amount being decreased to zero.
REINSTATEMENT
This rider may be reinstated within five years after the date of policy lapse
if:
1. The policy is also being reinstated; and
2. We receive satisfactory proof that the insured is insurable by our
standards; and
3. The insured is alive on the date we approve the request for reinstatement.
If the insured is not alive, such approval is void and of no effect.
We have the right to approve the reinstatement of the policy with or without
this rider.
The date of issue and effective date of this rider and the policy are the same.
/s/ Robert J. Banstetter /s/ Richard A. Liddy
V.P., GENERAL COUNSEL CHAIRMAN, PRESIDENT
AND SECRETARY AND CEO
General
American
LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI 63166
[Logo]
1088200 2
(1/95)
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WAIVER OF MONTHLY DEDUCTION RIDER
If this rider is listed on the Policy Specifications page it is a part of
the policy. It is subject to all of the provisions of the policy which are
not inconsistent with the provisions of this rider.
WAIVER OF MONTHLY DEDUCTION BENEFIT
If you furnish us with due written proof that the insured is totally
disabled, as defined in this rider, we will waive the monthly deductions
for this policy. The insured must have become disabled after age 5 and
before age 65. The disability must have continued without interruption
for at least six months. This rider must be in force. Monthly deductions
for this policy will be waived as follows:
Disability Beginning Before Age 60. If the insured's disability begins
before age 60, we will waive monthly deductions which were due during the
six months of uninterrupted disability. We will continue to waive monthly
deductions after that. However, the insured must continue to be totally
disabled.
Disability Beginning Between Ages 60 and 65. If the insured's disability
begins on or after age 60 but before age 65, we will waive monthly
deductions which were due during the six months of uninterrupted disability.
We will continue to waive monthly deductions after that, but no later than
age 65. However, the insured must continue to be totally disabled.
DEFINITION OF AGE 5, AGE 60, AND AGE 65
"Age 5," "age 60," and "age 65" begin on the policy anniversaries nearest
the Insured's 5th, 60th, and 65th birthdays, respectively.
TOTAL DISABILITY
"Total Disability" means the inability of the insured to perform the
substantial and material duties of his regular occupation. Such disability
must be the result of an injury or a sickness. The injury or sickness must
originate after this rider became effective.
However, after this period of disability has continued for 60 months, the
insured will be considered to be totally disabled only if he is unable to
perform the substantial and material duties of any occupation for which he
is reasonably fitted by education, training or experience. Such disability
must be the result of an injury or a sickness.
If after this rider becomes effective, the insured suffers the total and
irrecoverable loss of sight in both eyes, or of the use of both hands or
both feet, or of one hand and one foot, this will be considered total
disability as defined in this rider. On such a loss the insured will still
be considered disabled even though working.
RECURRENT TOTAL DISABILITY
If, while this policy is in force, the insured becomes disabled again after
having been totally disabled before, the new disability will be considered
a continuation of the previous period unless:
1. It is due to an entirely different cause; or
2. The insured has performed the material and substantial duties of a
gainful occupation. These duties must be performed for a continuous
period of 6 months or more between such periods of total disability.
RISKS NOT ASSUMED
We will not waive monthly deductions under this rider if disability results
from war or any act of war while the insured is in the military, naval or
air forces of any country at war. We will also not waive monthly deductions
if the insured becomes disabled as a result of war or any act of war while
in a civilian non-combatant unit serving with such forces. "War" includes
undeclared war and "any country" includes any international organization or
combination of countries.
TERMINATION
You may terminate this rider as of any monthly anniversary following a proper
written request. If this rider is not already terminated, it will terminate
on the date any of the following events first occurs:
1. When the insured attains age 65. This will be without prejudice to any
benefits granted for total disability occurring before age 65; or
L-82-WMD 1
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2. The lapse of the policy; or
3. The surrender of the policy; or
4. The maturity of the policy; or
5. The date of death of the insured.
NOTICE OF CLAIM AND PROOF OF DISABILITY
Before we waive any monthly deduction, we must receive at our Home Office:
1. Written notice of claim for this benefit during the lifetime of the
insured. This notice must be submitted during the continuance of total
disability. This notice cannot be submitted later than six months after
age 65 of the insured; and
2. Written proof of total disability within six months after we receive
written notice of claim. In no event shall this proof be submitted later
than the date when any of the following events first occurs:
a. One year after age 65 of the insured;
b. Prior maturity of the policy;
c. Surrender of the policy for its net cash value;
d. One year from the due date of the first unpaid monthly deduction.
Failure to give such notice and proof within the time allowed will not always
invalidate a claim. We will consider the claim if you show us that it was not
reasonably possible to file notice and proof on time. However, you must file
notice and proof as soon as is reasonably possible. In no event will any
monthly deduction be waived or refunded if its due date was more than one
year before we received notice of claim at our Home Office.
We will require no further proof of disability and we will automatically
waive all further monthly deductions if:
1. The insured is totally disabled at age 65; and
2. All monthly deductions for at least the five years preceding age 65 have
been waived.
EXAMINATION OF THE INSURED AND PROOF OF CONTINUED DISABILITY
We have the right to have the insured examined by our appointed examiner. We
will pay for this examination.
We also have the right to receive written proof of continuance of disability
from the insured at the following times:
1. After receipt of such notice of claim;
2. At any time within two years after we receive proof of total disability;
3. Not more than once each year after the first two years.
We will not waive any further monthly deductions if the insured refuses to be
medically examined. Nor will we waive further monthly deductions if proof of
continuance of disability is not furnished when we request it.
INCONTESTABILITY
We cannot contest this rider after a period of two years from its date of
issue if:
1. This rider shall have been in force during the lifetime of the insured;
and
2. The insured does not become totally disabled within this period.
L-82-WMD 2
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COST OF INSURANCE
The cost of insurance for the Waiver of Monthly Deductions Rider is
determined on a monthly basis. The cost of insurance for a policy month
is calculated as (a) multiplied by (b) where:
a. is the cost of insurance rate for this rider; and
b. is the sum of items i, ii, iii and iv where:
i. is the cost of insurance for the basic policy for the policy month
ii. is the first year monthly policy charge, where applicable
iii. is the monthly expense charge, when applicable
iv. is any cost of insurance for the policy month for any benefit
provided by a supplemental rider (other than Waiver of Monthly
Deduction Rider) made a part of the basic policy.
The cost of insurance rate for this benefit is based on the attained age,
sex and rate class of the insured. Cost of insurance rates will be
determined by us based on expectations as to future experience. However,
these rates will not exceed those shown in the Guaranteed Cost of Insurance
Rates for Waiver of Monthly Deductions Rider.
Each monthly anniversary this rider is in force, the cost of insurance for
the rates (as determined above) will be added to the monthly deduction as
defined in the Guaranteed Values section or the Cash Values section of the
basic policy. This increased monthly deduction will be used to determine the
cash value of the policy on such monthly anniversary.
GENERAL PROVISIONS
We will pay dividends and all other amounts payable under the policy the same
as if monthly deductions had not been waived.
If the insured becomes disabled during the grace period of the first monthly
deduction in default, we will allow this waiver of monthly deduction as if
default had not occurred. However, you will be liable for the monthly
deduction in default. Interest compounded at 6% per year will be charged on
this monthly deduction.
You may apply for reinstatement of this policy with or without this rider. We
have the right to decide whether to approve the reinstatement of this policy
with or without this rider.
DATE OF ISSUE
The date of issue of the rider is the same as the date of issue of this policy
unless another date of issue is shown below.
- ---------------------
DATE
/s/ Helen Couranz /s/ H. Edwin Trusheim
SECRETARY CHAIRMAN and CEO
GENERAL
AMERICAN
LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI 63166
[Logo]
L-82-WMD 3
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WAIVER OF SPECIFIED PREMIUM RIDER
The waiting period in the incontestability provision of this rider is
different from that in the policy and begins on the effective date of this
rider.
If we have approved this rider as a part of this policy and the policy's
minimum premium has been paid, this rider will become a part of the policy.
This rider is subject to all applicable terms and provisions of the policy;
except as modified herein. The Policy Specifications page or, if this rider
is added after issue, the request for policy change shows the monthly
premium that will be waived upon the insured's total disability.
WAIVER OF SPECIFIED PREMIUM BENEFIT
We will credit, as a premium payment, the monthly premium waived to the
policy's cash value if:
1. You furnish us with written proof that the insured is totally disabled,
as defined in this rider; and
2. The insured becomes disabled after age 5 and before age 65; and
3. Disability has continued without interruption for at least 180 days; and
4. This rider is in force.
The monthly premium waived will be credited as premium to the policy's cash
value as long as the policy remains in force as follows:
Disability Beginning Before Age 60. If the insured's disability begins before
age 60, we will credit the monthly premiums waived which were due during the
180 days of uninterrupted disability. After that, we will continue to credit
the monthly premiums waived. However, the insured must continue to be totally
disabled.
Disability Beginning Between Ages 60 and 65. If the insured's disability
begins on or after age 60 but before age 65, we will credit the monthly
premiums waived which were due during the 180 days of uninterrupted
disability. We will continue to credit the monthly premiums waived after
that, but no later than age 65. However, the insured must continue to be
totally disabled.
If the credit to the policy's cash value for the monthly premiums waived
exceeds the maximum premium allowed by the federal law that defines life
insurance, we will pay the monthly premium waived to you.
POLICY LAPSE
Crediting of the monthly premium waived to the policy's cash value does not
guarantee that the policy will remain
in force. If the cash surrender value of the policy is insufficient to cover
the monthly deduction as described in the basic policy, the policy will lapse
as defined in the grace period provision of the basic policy.
DEFINITION OF AGE 5, AGE 60, AND AGE 65
"Age 5," "age 60," and "age 65" begin on the policy anniversary nearest the
insured's 5th, 60th and 65th birthdays, respectively.
TOTAL DISABILITY
"Total Disability" means the inability of the insured to perform the
substantial and material duties of his or her regular occupation. Such
disability must be the result of an injury or a sickness. The injury or
sickness must first manifest itself after the effective date of this rider.
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However, after this period of disability has continued for 60 months, the
insured will be considered to be totally disabled only if he or she is
unable to perform the substantial and material duties of any occupation for
which he or she is reasonably fitted by education, training or experience.
If, after this rider becomes effective, the insured suffers the total and
irrecoverable loss of:
1. sight in both eyes, or
2. the use of both hands or both feet, or
3. the use of one hand and one foot,
this will be considered total disability as defined in this rider. With such
a loss the insured will still be considered disabled even though working at
an occupation.
RECURRENT TOTAL DISABILITY
If, while this policy and rider are in force, the insured becomes disabled
again after having been totally disabled before, the new disability will be
considered a continuation of the previous period unless:
1. It is due to an entirely different cause; or
2. The insured has performed all of the material and substantial duties of a
gainful occupation for a continuous period of 6 months or more between
such periods of total disability.
RISKS NOT ASSUMED
We will not credit the monthly premium waived under this rider to the policy's
cash value if disability results from war or any act of war while the insured
is in the military, naval or air forces of any country at war. We will also not
credit the monthly premium waived if the insured becomes disabled while in a
civilian non-combatant unit serving with such forces. "War" includes
undeclared war and "any country" includes any international organization or
combination of countries.
TERMINATION
You may terminate this rider as of any monthly anniversary. To do this you must
make a proper written request. We may require the policy and this rider for
endorsement. If this rider is not already terminated, it will terminate on the
date any of the following events first occurs:
1. When the insured attains age 65. This will be without prejudice to any
benefits granted for total disability occurring before age 65; or
2. The date the policy lapses; or
3. The date the policy is surrendered; or
4. The maturity date of the policy; or
5. The date of death of the insured.
We will incur no liability for this rider if premiums for it are paid beyond
its termination date. Any premiums paid beyond that date will be returned
with compound interest at 6% per year.
NOTICE OF CLAIM AND PROOF OF DISABILITY
Before we credit any monthly premium waived to the policy's cash value, we
must receive at our home office:
1. Written notice of claim for this benefit during the lifetime of the
insured. This notice must be submitted during the continuance of total
disability. This notice must be submitted no later than six months
after this rider terminates.
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2. Written proof of total disability within six months after we receive
written notice of claim. In no event should this proof be submitted
later than the date when any of the following events first occurs:
a. One year after age 65 of the insured;
b. Maturity of the policy;
c. Surrender of the policy for its cash surrender value;
d. One year from the due date of the first unpaid monthly deduction.
Failure to give such notice and proof within the time allowed will not void
the claim. We will consider the claim if you show us that it was not
reasonably possible to file notice and proof on time. However, you must file
notice and proof as soon as reasonably possible. In no event will we credit
any monthly premium waived if its due date was more than one year before we
received notice of claim at our home office.
We will require no further proof of disability and we will automatically
credit further monthly premiums waived if:
1. The insured is totally disabled at age 65; and
2. All monthly premiums waived for at least the five years preceding age 65
have been credited.
EXAMINATION OF THE INSURED
We have the right to have the insured examined by our appointed examiner. Such
exam will be at our expense. We also have the right to require written proof
of continuance of disability from the insured at the following times:
1. After receipt of notice of claim;
2. At reasonable intervals within two years after we receive proof of total
disability;
3. Not more than once each year after the first two years.
We will not credit to the policy's cash value any further monthly premiums
waived if the insured refuses to be medically examined. Nor will we credit
to the policy's cash value further monthly premiums waived if proof of
continuance of disability is not furnished when we request it.
INCONTESTABILITY
We cannot contest this rider after it has been in force during the lifetime
of the insured for a period of two years from its issue date, excluding any
period the insured is totally disabled. We cannot contest any reinstatement
of this rider after it has been in force during the lifetime of the insured
for a period of two years from the date we approve a reinstatement.
REINSTATEMENT
Within five years after the date this rider terminated due to policy lapsing,
you may apply for reinstatement if:
1. The policy is also being reinstated; and
2. You submit proof satisfactory to us that the insured is insurable by our
standards; and
3. You meet the premium requirements as described in the basic policy's
reinstatement provision; and
4. The insured is alive on the date we approve the request for reinstatement.
If the insured is not alive, such approval is void and of no effect.
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You may apply for reinstatement of the policy with or without this rider.
We have the right to decide whether to approve the reinstatement of the
policy with or without this rider.
COST OF INSURANCE
The cost of insurance for the Waiver of Specified Premium Rider is
determined on a monthly basis. The cost of insurance for a policy month
is calculated as (a) multiplied by (b) where:
a. is the cost of insurance rate for this rider; and
b. is the monthly premium waived.
The cost of insurance rate for this rider is based on the attained age and
rate class of the insured. Cost of insurance rates will be determined by us
based on expectations as to future experience. However, these rates will not
exceed those shown on the Guaranteed Cost of Insurance Rates page for the
Waiver of Specified Premium Rider.
Each monthly anniversary this rider is in force, the cost of insurance
(as determined above) will be added to the monthly deduction as defined in
the Cash Values Section of the basic policy. This increased monthly deduction
will be used to determine the cash value of the policy on such monthly
anniversary.
GENERAL PROVISIONS
If the insured becomes disabled during the grace period of the first monthly
deduction in default, we will allow this Waiver of Specified Premium as if
default had not occurred. However, you will be liable for the greater of:
1. the monthly premium waived; or
2. an amount sufficient to cover all charges, as defined in the basic policy,
due for that policy month.
Interest at 6% per year will be charged on the amount due.
The date of issue and effective date of this rider and the policy are the
same unless another effective date of this rider is shown below.
- ---------------------
Date of Rider
/s/ Helen Couranz /s/ H. Edwin Trusheim
SECRETARY CHAIRMAN and CEO
GENERAL
AMERICAN
LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI 63166
[Logo]
1084400 4
(12/89)
<PAGE>
EXHIBIT 1.(8)(c)
<PAGE>
<PAGE>
FUND PARTICIPATION AGREEMENT
----------------------------
General American Life Insurance Company ("Insurance Company"), Van Eck
Investment Trust ("Trust") and the Trust's investment adviser, Van Eck
Associates Corporation ("Adviser") hereby agree that shares of the series
of the Trust as listed on Exhibit A, as it may, from time to time, be amended
("Portfolios"), shall be made available to serve as an underlying investment
medium for certain variable life insurance contracts ("Contracts") to be
offered by Insurance Company subject to the following provisions:
1. The Trust represents that it engages in business as an open-end management
investment company organized as a "business trust" under the laws of the
Commonwealth of Massachusetts and is available to act as the investment
vehicle for separate accounts established for variable life insurance
policies and variable annuity contracts to be offered by insurance
companies which have entered into participation agreements with the Trust.
2. The Trust represents that it has obtained an order from the Securities and
Exchange Commission ("SEC"), dated September 19, 1990 (File No 811-5083),
granting Participating Insurance Companies and variable annuity and
variable life insurance separate accounts exemptions from the provisions
of Sections 9(a), 13(a), 15(a) and 15(b) of the Investment Company Act of
1940, as amended (the "1940 Act") and Rules 6e-2(b)(15) and 6e-3(T)(b)(15)
thereunder to the extent necessary to permit shares of the Trust to be
sold to and held by variable annuity and variable life insurance separate
accounts of both affiliated and unaffiliated life insurance companies.
3. The Trust agrees that shares of the Trust will be sold only to
Participating Insurance Companies and their separate accounts. No shares
of any Portfolio will be sold to the general public.
4. Insurance Company represents that it has established Separate Account
Eleven (the "Variable Account"), a separate account under Missouri law,
and has registered it as a unit investment trust under the 1940 Act to set
aside and invest assets attributed to one or more of the Contracts. The
Contracts provide for the allocation of net amounts received by Insurance
Company to separate series of the Variable Account for investment in the
shares of specified investment companies selected among those companies
available through the Variable Account to fund certain of the Contracts.
Selection of a particular investment company is made by the Contract owner
who may change such selection from time to time in accordance with the
terms of the applicable Contract.
5. The Trust or the Adviser will provide closing net asset value, dividend
and capital gain information at the close of trading each business day to
Insurance Company. Insurance Company will use this data to calculate unit
values on a daily basis as soon as reasonably practical after the net
asset value per share is calculated. Orders will be executed on a daily
basis at the net asset value next computed after receipt by the Trust or
its designee of the order for the shares of the Trust. For purposes of
this paragraph, Insurance Company shall be the designee of the Trust for
receipt of such orders. Payment for purchases will be wired to a custodial
account designated by the Trust or the Adviser on the next business day
after an order to purchase is made in accordance with this paragraph.
Income, dividends and capital gains distributions shall be reinvested in
additional shares at the ex-date net asset value. Insurance Company
reserves the right to require that all such income, dividends and capital
gains distributions be received in
<PAGE>
<PAGE>
cash.
6. All expenses incident to the performance by the Trust under this Agreement
shall be paid by the Trust. The Trust shall pay the cost of registration
of Trust shares with the SEC. The Trust shall distribute, to the Variable
Account, proxy material, periodic Trust reports to shareholders and other
material the Trust may require to be sent to Contract owners. The Trust
shall pay the cost of qualifying Trust shares in states where required.
The Trust will provide Insurance Company with a reasonable quantity of the
Trust's Prospectus and the reports to be used in contemplation of this
Agreement. The Trust will provide Insurance Company with a copy of the
Statement of Additional Information suitable for duplication.
7. Insurance Company and its agents shall make no representations concerning
the Trust or Trust shares except those contained in the registration
statement and the then current prospectus of the Trust and in reports or
proxy statements for the Trust and in current printed sales literature and
promotional material approved by the Trust or its designee, except with
the permission of the Trust or its designee.
8. Insurance Company shall bear the expenses of printing and distributing the
Trust's prospectus to owners of Contracts issued by Insurance Company and
of distributing the Trust's proxy materials and reports to such Contract
owners.
9. The Trust will at all times invest money from the Contracts in such a
manner as to ensure that the Contracts will be treated as variable
contracts under the Internal Revenue Code of 1986, as amended (the
"Code"), and the regulations issued thereunder. Without limiting the scope
of the foregoing, the Trust shall comply with Sections 817(h) and 851 of
the Code and the regulations thereunder, and the applicable provisions of
the 1940 Act relating to the diversification requirements for variable
annuity, endowment, and life insurance contracts. Upon request, the Trust
shall provide Insurance Company with a letter from the appropriate Trust
officer certifying the Trust's compliance with the diversification
requirements and qualification as a regulated investment company.
10. Insurance Company agrees to inform the Board of Trustees of the Trust of
the existence of, or any potential for, any material irreconcilable
conflict of interest between the interests of the Contract owners of the
Variable Account investing in the Trust and/or any other separate account
of any other insurance company investing in the Trust.
A material irreconcilable conflict may arise for a variety of reasons,
including:
(a) an action by any state insurance or other regulatory authority;
(b) a change in applicable federal or state insurance, tax or securities
laws or regulations, or a public ruling, private letter ruling, or
any similar action by insurance, tax or securities regulatory
authorities;
(c) an administrative or judicial decision in any relevant proceeding;
(d) the manner in which the investments of any Portfolio are being
managed;
2
<PAGE>
<PAGE>
(e) a difference in voting instructions given by variable annuity
contract and variable life insurance contract owners; or
(f) a decision by an insurer to disregard the voting instructions of
contract owners.
Insurance Company will be responsible for assisting the Board of Trustees
of the Trust in carrying out its responsibilities by providing the Board
with all information reasonably necessary for the Board to consider any
issue raised, including information as to a decision by Insurance Company
to disregard voting instructions of Contract owners.
It is agreed that if it is determined by a majority of the members of the
Board of Trustees of the Trust or a majority of its disinterested Trustees
that a material irreconcilable conflict exists affecting Insurance
Company, Insurance Company shall, at its own expense, take whatever steps
are necessary to remedy or eliminate the irreconcilable material conflict,
which steps may include, but are not limited to,
(a) withdrawing the assets allocable to some or all of the separate
accounts from the Trust or any Portfolio and reinvesting such assets
in a different investment medium, including another Portfolio of the
Trust or submitting the question of whether such segregation should
be implemented to a vote of all affected Contract owners and, as
appropriate, segregating the assets of any particular group (i.e.,
annuity contract owners, life insurance contract owners or variable
contract owners of one or more Participating Insurance Companies)
that votes in favor of such segregation, or offering to the affected
contract owners the option of making such a change; and
(b) establishing a new registered management investment company or
managed separate account.
If a material irreconcilable conflict arises because of Insurance
Company's decision to disregard Contract owner voting instructions and
that decision represents a minority position or would preclude a majority
vote, Insurance Company may be required, at the Trust's election, to
withdraw the Variable Account's investment in the Trust. No charge or
penalty will be imposed against the Variable Account as a result of such
withdrawal. Insurance Company agrees that any remedial action taken by it
in resolving any material conflicts of interest will be carried out with a
view only to the interests of Contract owners.
For purposes hereof, a majority of the disinterested members of the Board
of Trustees of the Trust shall determine whether any proposed action
adequately remedies any material irreconcilable conflict. In no event will
the Trust be required to establish a new funding medium for any Contracts.
Insurance Company shall not be required by the terms hereof to establish a
new funding medium for any Contracts if an offer to do so has been
declined by vote of a majority of affected Contract owners.
The Trust will undertake to promptly make known to Insurance Company the
Board of Trustees' determination of the existence of a material
irreconcilable conflict and its implications.
3
<PAGE>
<PAGE>
11. This Agreement shall terminate as to the sale and issuance of new
Contracts:
(a) at the option of Insurance Company, the Adviser or the Trust upon six
months' advance written notice to the other parties;
(b) at the option of Insurance Company, by written notice to the Trust,
if Trust shares are not available for any reason to meet the
requirements of Contracts as determined by Insurance Company;
(c) at the option of Insurance Company, the Adviser or the Trust, upon
institution of formal proceedings against the broker-dealer or
broker-dealers marketing the Contracts, the Variable Account,
Insurance Company or the Trust by the National Association of
Securities Dealers ("NASD"), the SEC or any other regulatory body;
(d) upon a decision by Insurance Company, in accordance with regulations
of the SEC, to substitute such Trust shares with the shares of
another investment company for Contracts for which the Trust shares
have been selected to serve as the underlying investment medium.
Insurance Company will give 60 days' written notice to the Trust
and the Adviser of any proposed vote to replace Trust shares;
(e) upon assignment of this Agreement unless made with the written
consent of each other party;
(f) at the option of Insurance Company, in the event Trust shares are
not registered, issued or sold in conformance with Federal law or
such law precludes the use of Trust shares as an underlying
investment medium of Contracts issued or to be issued by Insurance
Company. Prompt notice shall be given by either party to the other in
the event the conditions of this provision occur.
12. Termination as the result of any cause listed in the preceding paragraph
shall not affect the Trust's obligation to furnish Trust shares for
Contracts then in force for which the shares of the Trust serve or may
serve as an underlying medium, unless such further sale of Trust shares is
proscribed by law or the SEC or other regulatory body.
13. Each notice required by this Agreement shall be given by wire and
confirmed in writing by registered or certified mail to:
If to Insurance Company:
General American Life Insurance Company
700 Market Street
St. Louis, Missouri 63101
Attn: Legal Department
If to the Trust:
Van Eck Investment Trust
122 East 42nd Street
New York, New York 10168
Attn: President
4
<PAGE>
<PAGE>
If to the Adviser:
Van Eck Associates Corporation
122 East 42nd Street
New York, New York 10168
Attn: President
14. Advertising and sales literature in which the Trust or the Adviser is
named will be submitted to the Trust for review before such material is
submitted to the SEC or NASD for review.
15. Insurance Company will distribute all proxy material furnished by the
Trust. If and to the extent required by law, Insurance Company shall (a)
solicit voting instructions from Contract owners; (b) vote Trust shares in
accordance with instructions received from the Contract owners of such
Trust shares; and (c) vote the Trust shares for which no instructions have
been received in the same proportion as Trust shares for which said
instructions have been received from Contract owners so long as and to the
extent that the SEC continues to interpret the 1940 Act to require pass-
through voting privileges for variable contract owners. Insurance Company
reserves the right to vote Trust shares held in any segregated asset
account in its own right to the extent permitted by law.
16. (a) Insurance Company agrees to indemnify and hold harmless the Trust,
the Adviser, and each of its trustees, directors, officers,
employees, agents and each person, if any, who controls the Trust
within the meaning of the Securities Act of 1933 (the "Act") (the
Trust and such persons collectively, "Trust Indemnified Person")
against any losses, claims, damages or liabilities to which a Trust
Indemnified Person may become subject, under the Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) are related to the sale or acquisition of the
Trust's shares or the Contracts and arise out of or are based upon
any untrue statement or alleged untrue statement of any material fact
contained in information furnished by Insurance Company for use in
the Registration Statement or prospectus of the Trust or in the
Registration Statement or prospectus for the Variable Account, or
arise out of or are based upon the omission or the alleged omission
to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or arise out
of or as a result of conduct, statements or representations (other
than statements or representations contained in the prospectus and
Trust-prepared sales literature of the Trust) of Insurance Company or
its agents with respect to the sale and distribution of contracts for
which Trust shares are an underlying investment or arise out of a
breach of this Agreement; and Insurance Company will reimburse any
legal or other expenses reasonably incurred by a Trust Indemnified
Person in connection with investigating or defending any such loss,
claim, damage, liability or action. This indemnity agreement will be
in addition to any liability which Insurance Company may otherwise
have.
(b) The Trust agrees to indemnify and hold harmless Insurance Company and
each of its directors, officers, employees, agents and each person,
if any, who controls Insurance Company within the meaning of the Act
(Insurance Company and such persons collectively, "Insurance Company
Indemnified Person") against any losses,
5
<PAGE>
<PAGE>
claims, damages or liabilities to which an Insurance Company
Indemnified Person may become subject, under the Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) are related to the operations of the Trust or to the
sale or acquisition of the Trust's shares or the Contracts and arise
out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in the Registration
Statement or prospectus or Trust-prepared sales literature of the
Trust, or arise out of or are based upon the omission or the alleged
omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading,
or arise out of or are based upon the Trust's failure to keep each of
the Trust options fully diversified and qualified as a regulated
investment company as required by the applicable provisions of the
Code, the 1940 Act, and any other law or regulation, or arise out of
a breach of this Agreement and the Trust will reimburse any legal or
other expenses reasonably incurred by an Insurance Company
Indemnified Person in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however,
that the Trust will not be liable in any such case to the extent that
any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or omission or alleged omission made in such
Registration Statement or prospectus in conformity with written
information furnished to the Trust by Insurance Company specifically
for use therein or in Insurance Company-prepared sales literature.
This indemnity agreement will be in addition to any liability which
the Trust may otherwise have.
(c) The Adviser agrees to indemnify and hold harmless each Insurance
Company Indemnified Person against any losses, claims, damages or
liabilities to which an Insurance Company Indemnified Person may
become subject, under the Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) are
related to the operations of the Trust or to the sale or acquisition
of the Trust's shares or the Contracts and arise out of or are based
upon any untrue statement or alleged untrue statement of any material
fact contained in the Registration Statement or prospectus or
Adviser-prepared sales literature of the Trust, or arise out of or
are based upon the omission or the alleged omission to state therein
a material fact required to be stated therein or necessary to make
the statements therein not misleading, or arise out of or are based
upon the Adviser's failure to keep each of the Trust and its
Portfolios fully diversified and qualified as a regulated investment
company as required by the applicable provisions of the Code, the
1940 Act, and any other law or regulation, or arise out of a breach
of this Agreement and the Adviser will reimburse any legal or other
expenses reasonably incurred by each Insurance Company Indemnified
Person in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the
Adviser will not be liable in any such case to the extent that any
such loss, claim, damage or liability arises out of or is based upon
an untrue statement or omission or alleged omission made in such
Registration Statement or prospectus in conformity with written
information furnished to the Adviser by Insurance Company
specifically for use therein or Insurance Company-prepared sales
literature. This indemnity agreement will be in addition to any
liability which the Adviser may otherwise have.
6
<PAGE>
<PAGE>
(d) The Trust and the Adviser shall indemnify and hold each Insurance
Company Indemnified Person harmless against any and all liability,
loss, damages, costs or expenses which an Insurance Company
Indemnified Person may incur, suffer or be required to pay directly
due to the Trust's or Adviser's (or their designated agent's) (1)
incorrect calculation of the daily net asset value, dividend rate or
capital gain distribution rate; (2) incorrect reporting of the daily
net asset value, dividend rate or capital gain distribution rate; or
(3) untimely reporting of the net asset value, dividend rate or
capital gain distribution rate. Any gain to Insurance Company
attributable to the Trust's, or Adviser's (or their designated
agent's) incorrect calculation or reporting of the daily net asset
value shall be immediately returned to the Trust.
(e) Promptly after receipt by an indemnified party under this paragraph
of notice of the commencement of action, such indemnified party will,
if a claim in respect thereof is to be made against the indemnifying
party under this paragraph, notify the indemnifying party of the
commencement thereof; but the omission so to notify the indemnifying
party will not relieve it from any liability which it may have to any
indemnified party otherwise than under this paragraph. In case any
such action is brought against any indemnified party, and it notified
the indemnifying party of the commencement thereof, the indemnifying
party will be entitled to participate, at its own expense, therein
and, to the extent that it may wish, assume the defense thereof, with
counsel satisfactory to such indemnified party. After notice from the
indemnifying party to such indemnified party of its election to
assume the defense of such action, the indemnified party shall bear
the fees and expenses of any additional counsel retained by it, and
the indemnifying party will not be liable to such party under this
paragraph for any legal or other expenses subsequently incurred by
such indemnified party independently in connection with the defense
thereof other than reasonable costs of investigation.
(f) Nothing herein shall entitle an indemnified party to special,
consequential or exemplary damages or damages of like kind or nature
and with respect to section 14(d) hereof all liability, loss and
damages shall be limited to the amount required to correct the value
of the account as if there had been no incorrect calculation or
reporting or untimely reporting of net asset value, dividend rate or
capital gain distribution rate.
7
<PAGE>
<PAGE>
17. If, in the course of future marketing of the Contracts, Insurance Company
or its agents shall request, in writing assistance from the Trust's sales
personnel which is beyond the scope of the services and materials to be
provided under the terms of this Agreement, compensation (which will be
negotiated by the Trust and Insurance Company) shall be paid by Insurance
Company to the Trust.
GENERAL AMERICAN LIFE INSURANCE COMPANY
July 27, 1994 By /s/ Robert J. Banstetter
- ------------------------------ -------------------------------------
Date Vice President
VAN ECK INVESTMENT TRUST
July 19, 1994 By /s/ John C. van Eck
-------------------------------------
John C. van Eck, President
VAN ECK ASSOCIATES CORPORATION
July 19, 1994 By /s/ John C. van Eck
-------------------------------------
John C. van Eck, President
8
<PAGE>
<PAGE>
EXHIBIT A
TO FUND PARTICIPATION AGREEMENT
AMONG
GENERAL AMERICAN LIFE INSURANCE COMPANY,
VAN ECK INVESTMENT TRUST<F*> AND
VAN ECK ASSOCIATES CORPORATION
DATED JULY 27, 1994
----------------------------------------
Fund
- ----
Worldwide Hard Assets Fund (Formerly Gold and Natural Resources Fund)
Worldwide Emerging Markets Fund
1998
[FN]
- --------
<F*>Now named Van Eck Worldwide Insurance Trust
9
<PAGE>
EXHIBIT 1.(8)(e)
<PAGE>
<PAGE>
NOTICE OF CANCELLATION RIGHT
We are pleased to welcome you as a variable life insurance policy owner
of General American Life Insurance Company. It is our hope that this policy
will be an important part of your investment and insurance program for many
years to come.
You have selected a variable life insurance contract. To the extent that
you have directed premium dollars into variable funds described in the
prospectus, contract benefits will depend on the investment experience of
those funds. Because this is a "variable" insurance contract, the Securities
and Exchange Commission requires that we provide you with this notice that you
have the right to examine and cancel this contract. Please read it immediately
and carefully and keep it with your policy and other important records.
If you decide to cancel and return the policy within the time indicated
below, you are entitled to a refund of all premiums paid.
1. 20 days from delivery of your contract;
2. 45 days from the date you completed the application;
3. 10 days from the day of mailing this notice.
In determining whether or not to cancel your contract, you should
consider your needs and other reasons which motivated you to purchase the
contract, the projected cost of your contract, and your ability to make
payments.
If you should decide to cancel this contract after the times set out
above, you will be subject to various charges set out in this prospectus.
If you should decide to cancel your contract under this special
cancellation right, complete the enclosed form and return it along with your
contract. The postmark on the return envelope must be on or before the
deadline described above.
Once again, thank you for selecting General American. Our toll free
Variable Life Service Number is 1-800-638-9294. Your personal agent is XXXXXX
whose phone number is XXXXXX.
CancNotc
<PAGE>
EXHIBIT 1.(10)(a)
<PAGE>
APPLICATION
FOR
FLEXIBLE PREMIUM
VARIABLE LIFE
INSURANCE
GENERAL AMERICAN LIFE
INSURANCE COMPANY
ST. LOUIS, MISSOURI
CUSTOMER INTERVIEW PROGRAM
In connection with your application for insurance you may be receiving a
telephone call from a person at our Home Office or another agency authorized
to obtain some personal and financial information. You can be assured that
your answers are strictly confidential and will be used only to assess your
eligibility for insurance. The interview normally takes from five to ten
minutes and will be conducted at a time convenient to you. In the event you
are not in when the interviewer calls, the interviewer will probably leave
his/her name and a telephone number so that you can return the call at no
charge to you and supply the necessary information.
9406 This form must be used in:
(4/92) Alabama, Alaska, Arizona, Arkansas, California, Delaware, Hawaii,
Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Mississippi,
New Hampshire, New Mexico, North Dakota, Oklahoma, Rhode Island,
Tennessee, Utah, Vermont, Wyoming
0195
<PAGE>
<PAGE>
NOTICE OF INFORMATION PRACTICES
This Notice Must be Given to the Proposed Insured (Including Medical
Information Bureau Notice and Fair Credit Reporting Act Notice).
In considering your application, General American Life Insurance Company will
review information from various sources. These include your statements, the
results of your physical examination (if required), and reports we get from
doctors or medical facilities which have attended you.
Information about your insurability and/or any past or future claims will be
treated as confidential. We, or our reinsurers, may however, make a brief
report of this to the Medical Information Bureau, a nonprofit membership
organization of life insurance companies, which operates an information
exchange on behalf of its members. If you apply to another Bureau member
company for life or health insurance coverage, or a claim for benefits is
submitted to such a company, the Bureau, upon request, will supply such
company with the information in its file.
Upon receipt of a request from you, the Bureau will arrange disclosure of any
information it may have in your file (medical information will be disclosed
only to your attending physician). If you question the accuracy of
information in the Bureau's file, you may contact the Bureau and seek a
correction in accordance with the procedures set forth in the federal Fair
Credit Reporting Act. The address of the Bureau's information office is Post
Office Box 105, Essex Station, Boston, Massachusetts 02112, telephone number
(617) 426-3660.
We, or our reinsurers, may also release information to other life insurance
companies to which you apply for life or health insurance, or to which a
claim is submitted.
In addition, we may get an investigative report from a consumer reporting
agency. This report requires personal interviews with your neighbors, friends,
or other acquaintances for information as to your general reputation, personal
characteristics and mode of living. As part of your application, you have
authorized us to do this. You have the right to be personally interviewed and
to make a written request within a reasonable period about the nature and
scope of this investigation. Upon written request you will be told if such a
report has actually been ordered, and if it has, we will give you the name and
address of the consumer reporting agency. You may contact this consumer
reporting agency and ask for a copy of such report.
Unless a legitimate business need exists or we are required to do so by law,
the information we get in this report, as well as any other information which
we later acquire, will not be disclosed to anyone else without your consent.
You may request a copy of all information acquired by us and have a right to
correct any personal information which you feel is inaccurate. We will, if
required by law, give you a more detailed notice of the types of personal
information which we get in considering your application, as well as any
additional rights which you may have.
If you need any assistance, please feel free to contact your agent or us at
General American Life Insurance Company, Attention: New Business Operations
E1-13, 13045 Tesson Ferry Rd., St. Louis, MO 63128.
9406
(4/92)
<PAGE>
<PAGE>
- ------------------------------------------------------------------------------
PART I APPLICATION FOR FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE TO
GENERAL AMERICAN LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI
- ------------------------------------------------------------------------------
GENERAL INFORMATION SECTION A
- ------------------------------------------------------------------------------
1. Amount (at least 1/12th of the annual premium) paid in cash in exchange for
the Temporary Insurance Agreement with the same number as this application.
$
-------------------
- ------------------------------------------------------------------------------
2. (a) Name of Proposed Insured (Print Last, First, Middle)
(b) / / Male
/ / Female
(c) Social Security #
- ------------------------------------------------------------------------------
(d) Date of Birth Mo. Day Yr.
(e) Age Nearest Birthday
(f) Birthplace
(g) Special Policy Date
- ------------------------------------------------------------------------------
(h) Residence Address: Number and Street, or RFD City State Zip
Home Phone # ( )
- ------------------------------------------------------------------------------
3. (a) Name of Employer
(b) Occupation and Duties
- ------------------------------------------------------------------------------
(c) Business Address: Number and Street, or RFD City State Zip
Business Phone # ( )
- ------------------------------------------------------------------------------
4. (a) Annual Earned Income from Occupation: $
(b) Total Annual Income from all Sources (including 4(a)): $
(c) Approx. Net Worth: $
- ------------------------------------------------------------------------------
5. Send Premium Notices to:
/ / Residence / / Business / / Other
-------------------------
- ------------------------------------------------------------------------------
6. Name and address of Premium Payor if other than Owner.
- ------------------------------------------------------------------------------
7. (a) Convenient time, place, and phone # to reach Proposed Insured
(b) Have we done a personal history or customer interview with you in the
past 12 months? / / Yes / / No
- ------------------------------------------------------------------------------
8. Beneficiary of death benefit. (MUST BE COMPLETED: Print full name,
address, telephone # and relationship of each to Proposed Insured)
(a) Primary Class (will receive payment first, if living and not
disqualified)
(b) Contingent Class (will receive payment only if living and not
disqualified and if no primary beneficiary receives payment)
- ------------------------------------------------------------------------------
9. Owner of Policy. (MUST BE COMPLETED: Print full name, address, telephone #
and relationship of each to Proposed Insured).
(a) Original Owner/Class: / / Proposed Insured / / Other
(b) Contingent Owner/Class, if any, to become Owner only when no Original
Owner is living.
(c) Social Security or Tax # of Owner as shown in 9(a)
(REQUIRED BY LAW):
-----------------
- ------------------------------------------------------------------------------
9406
(4/92)
<PAGE>
<PAGE>
- ------------------------------------------------------------------------------
SECTION A - CONTINUED GENERAL INFORMATION
- ------------------------------------------------------------------------------
10. (a) Total Life Insurance now in force on Proposed Insured. (If none,
write "None".)
<TABLE>
- ------------------------------------------------------------------------------------------------
<CAPTION>
Year of Personal Business Accidental Waiver of Prem.
Company Issue Ins. Amt. Ins. Amt. Death Amt. Yes No
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
/ / / /
- ------------------------------------------------------------------------------------------------
/ / / /
- ------------------------------------------------------------------------------------------------
/ / / /
- ------------------------------------------------------------------------------------------------
/ / / /
- ------------------------------------------------------------------------------------------------
/ / / /
- ------------------------------------------------------------------------------------------------
TOTALS
------------------------------------------------------------
</TABLE>
(b) Are you currently applying for life insurance with / / Yes / / No
any other company? (If "Yes", give details in #12.)
(c) Will the insurance being applied for replace or / / Yes / / No
change any of the above or any in force annuities?
If "Yes": Circle coverage being terminated. (Complete
and submit required papers.)
- ------------------------------------------------------------------------------
11. Have you: (Provide details in #12 to any "Yes" answers.) Yes No
(a) Ever been declined, postponed, rated or offered a
policy different than that applied for? / / / /
(b) Any intention to travel or reside outside the
United States? / / / /
(c) Been a pilot, student pilot, or crew member during
the past 3 years or have any intention of becoming
a pilot, student pilot or crew member in any type
of aircraft? (If "Yes", complete Aviation Section.) / / / /
(d) Ever had a traffic citation for driving while
intoxicated or driving under the influence of
intoxicants or drugs? / / / /
(e) Within the past three years, had:
(i) any moving vehicle violation? / / / /
(ii) a traffic accident? / / / /
If either 11(d) and/or any question in 11(e) is
answered "Yes", then
Driver's License # State
---------------- --------
(f) Participated in, or do you contemplate participating in:
aeronautics, competitive racing, underwater or sky
diving, mountain climbing, or any other similar
avocation? / / / /
(If "Yes", complete Avocation Section.)
- ------------------------------------------------------------------------------
12. Details of Answers
- ------------------------------------------------------------------------------
9406
(4/92)
<PAGE>
<PAGE>
- ------------------------------------------------------------------------------
AVIATION SECTION - FOR STUDENTS, PILOTS, AND CREW MEMBERS
- ------------------------------------------------------------------------------
For Pilots, Students and Crew Members:
HOURS Total of all hours flown Total hours flown
FLOWN as pilot or crew member / / in past 12 months: / /
Estimated hours flying
in next 12 months: / /
- ------------------------------------------------------------------------------
Pilot Certificate currently held: / / Private
/ / Student
PILOT / / Airline Transport Rating
CERTIFICATE / / Instrument Flight Rating
/ / Commercial
/ / Flight Instructor
Have you ever been grounded or had your license revoked?
/ / Yes / / No (If "Yes", give details in Remarks below.)
- ------------------------------------------------------------------------------
Type of Flying:
TYPE / / Pleasure
FLYING / / Commercial
Specific type of flying
-----------------------
Type of aircraft
------------------------------
(Give details in Remarks below.)
/ / Military
Specific type of flying
-----------------------
Type of aircraft
------------------------------
Date of last flight
---------------------------
Branch or Organization
------------------------
If not pilot, specify capacity in which you fly
-----------------------------------------------
(Give details in Remarks below.)
- ------------------------------------------------------------------------------
(a) Medical Certificate currently held: / / Class III
/ / Class II / / Class I
MEDICAL (b) Date of last renewal Yes No
CERTIFICATE ---------------------------
(c) Was it denied by the Aviation Medical Examiner
but eventually issued? / / / /
(d) Was Medical Certificate granted subject to
limitation(s) or physical waiver(s)? / / / /
(If any of the above questions are answered "Yes",
give details in Remarks below.)
- ------------------------------------------------------------------------------
Other Type of Flying:
OTHER (a) Have you ever flown or do you intend to fly: Yes No
Ultralight, Biplane, Prototype, experimental
or personally built or assembled aircraft? / / / /
(If "Yes", complete Avocation Section.)
(b) Have you flown, within the past 12 months,
or do you contemplate flying in the Civil
Air Patrol? / / / /
(If "Yes", give details in Remarks below.)
(C) Do you contemplate a change from your present
flying to commercial or military flying? / / / /
(If "Yes", give details in Remarks below.)
- ------------------------------------------------------------------------------
Should you not qualify for coverage at standard
rates, do you desire: Yes No
AVIATION
RATES (a) Full coverage with extra premium, if available? / / / /
(b) Restricted aviation coverage without extra
premium, if available? / / / /
- ------------------------------------------------------------------------------
REMARKS:
- ------------------------------------------------------------------------------
9406
(4/92)
<PAGE>
<PAGE>
- ------------------------------------------------------------------------------
AVOCATION SECTION
- ------------------------------------------------------------------------------
Racing, Auto, Motorcycle, Snowmobile, Motorboat:
RACING Type: / / Midget / / Stock / / Hotrod / / Go-kart / / Drag
SPORTS / / Sportscar / / Snowmobile / / Cycle / / Boat
/ / Other
--------------------
Vehicle or boat: make & model
-------------------------
Class & category
-------------------------
Displacement
-------------------------
Horsepower
-------------------------
Timing: / / Vehicle vs. vehicle / / Vehicle vs. clock
Maximum speed attained mph
-------------
Location: / / Oval track / / Closed circuit / / Drag strip
/ / Hill Climb / / Other
----------------
Have you ever had a racing accident?
/ / Yes (If "Yes, give details in Remarks below.)
/ / No
Racing organizations affiliated with:
----------------------------
Races supervised by:
---------------------------------------------
Frequency (Number of Races) Last 12 Months / /
1 to 2 Years Ago / / Estimate Next 12 Months / /
- ------------------------------------------------------------------------------
Type: / / Scuba / / Skin / / Snorkel
Purpose: / / Recreation / / Rescue / / Salvage
Locations: / / Oceans / / Lakes / / Rivers / / Pools
/ / Quarries / / Caves / / Other
_--------------------
UNDERWATER
SPORTS Have you received formal diving training? / / Yes / / No (If
"Yes", give details in Remarks below.)
Do you use the "buddy system"? / / Yes / / No
<TABLE>
<CAPTION>
Number of Dives Number of Dives Number of Dives
Depth Average Time Last 12 Months 1 to 2 Yrs Ago Est. Next 12 Mos.
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
0-60 ft
- ------------------------------------------------------------------------------------------------
61-75 ft
- ------------------------------------------------------------------------------------------------
76-100 ft
- ------------------------------------------------------------------------------------------------
101-150 ft
- ------------------------------------------------------------------------------------------------
Over 150 ft
- ------------------------------------------------------------------------------------------------
</TABLE>
SKY Type: / / Skydiving / / Hanggliding / / Ultralights
SPORTS / / Biplaning / / Parachuting / / Ballooning
/ / Other
---------------------
If Skydiving: Yes No
Delayed jumping? / / / /
Are you a member of a club? / / / /
If Ballooning: Yes No
Gas ballooning? / / / /
Hot air ballooning? / / / /
Usual location or type of terrain
--------------------------------
Have you been in an accident connected with this Yes No
avocation? (If "Yes", give details in Remarks
below.) / / / /
Number of flights or jumps: Last 12 Mos / / 1 to 2 Yrs Ago / /
Est. Next 12 Mos. / /
<PAGE>
- ------------------------------------------------------------------------------
Type: / / Mountain / / Rock / / Ice / / Other
-----------------
CLIMBING Locations: / / Ranges / / Caves / / Rock Formations
SPORTS / / Trails / / Other
--------------------
Yes No
Usual Heights: Geographical Area:
--------- ----------
Do you use direct-aid climbing? / / / /
Do you participate as a guide or engage in rescue
duties? / / / /
Have you had a climbing accident? (If "Yes", give
details in Remarks below.) / / / /
Number of climbs: Last 12 Mos / /
1 to 2 Years Ago / / Est. Next 12 Mos. / /
- ------------------------------------------------------------------------------
REMARKS OR OTHER AVOCATIONS (INCLUDE DETAILS REGARDING NATURE, LOCATION,
FREQUENCY, AND DEGREE OF PARTICIPATION.)
- ------------------------------------------------------------------------------
9406
(4/92)
<PAGE>
<PAGE>
- ------------------------------------------------------------------------------
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE APPLIED FOR SECTION B
- ------------------------------------------------------------------------------
13. (a) Flexible Premium Variable Life:
/ / FPVL (VUL100) $ Base Coverage
----------
Contract Type / / Opt. A / / Opt. B / / Opt. C
-------------
Benefits:
--------
/ / Waiver of Monthly Deduction
/ / Waiver of Specified Premium
$ (Monthly Benefit)
---------
/ / Accidental Death $
----------
Riders:
------
/ / Additional Insured Family Term $
--------------
Relationship of Additional Insured to Proposed Insured:
--------------
(If more than one applicant, give details)
(Complete application(s) on each designated life(s))
/ / Childrens Ins. No. of Units
-----------
(Complete Childrens Ins. App #2769)
/ / GIO $
-------------
/ / GSPO $ (complete application on designated life)
-------------
/ / SCV $
-------------
/ / IBR / / % / / CPI (Not available in Alabama or Mississippi)
------
--------------------------------------------------------------------
/ / Other (List) $/#
------- --------
$/#
------- --------
Riders:
------
/ / Other (List) $/#
------- --------
$/#
------- --------
/ / FPVL-100 (SELECT PLUS) $
-------------
Contract Type / / Opt. A / / Opt. B / / Opt. C
-------------
Benefits:
--------
/ / Waiver of Monthly Deduction
/ / Waiver of Specified Premium
$ (Monthly Benefit)
--------------
Riders:
------
/ / IBO / / % / / CPI (Not available in Alabama or
------
Mississippi)
----------------------------------------------------------------------
/ / FPVL-95 (VUL-95) $ Base Coverage
-----------
Contract Type / / Opt. A / / Opt. B
-------------
Benefits:
--------
/ / Waiver of Monthly Deduction
/ / Waiver of Specified Premium $ (Monthly Benefit)
--------------
/ / Accidental Death $
----------------
<PAGE>
Riders:
------
/ / Additional Insured Family Term $
--------------
Relationship of Additional Insured to Proposed Insured:
---------------
(If more than one applicant, give details)
(Complete application(s) on each designated life(s))
/ / Childrens Ins. No. of Units (Complete Childrens Ins.
-----------
App #2769)
/ / GIO $ / / VSI-85 $
-------------- ----------------
- ------------------------------------------------------------------------------
(b) Premiums:
Direct Billing: / / ANN / / SA / / QR / / Single Premium
List Billing: / / Ann / / SA / / QR / / MO (add to existing
List Billing # )
-------
Pre Auth Check: / / (add to existing PAC Billing # )
------------
Payroll Deduction: / / (add to existing Payroll Deduction # )
----------
Premium Amount $ Make check payable to: General American
-------------
Life Insurance Co.
- ------------------------------------------------------------------------------
(c) Net Premium Allocation: (0 or minimum of 5%. Percentages must be in
whole numbers and total 100%.)
General American Capital Company:
/ / Money Market Fund %
-----------
/ / S & P 500 Index Fund %
-----------
/ / Bond Index Fund %
-----------
/ / Managed Equity Fund %
-----------
/ / Asset Allocation Fund %
-----------
/ / International Equity Fund %
-----------
/ / Special Equity Fund %
-----------
-----------------------------------------
Van Eck Investment Trust:
/ / Gold & Natural
Resources Fund %
-----------
Fidelity's VIP & VIP II Funds:
/ / Equity-Income Portfolio %
-----------
/ / Growth Portfolio %
-----------
/ / Overseas Portfolio %
-----------
/ / High Income Portfolio %
-----------
/ / Asset Manager Portfolio %
-----------
-----------------------------------------
/ / Other %
-------------- -----------
/ / Other %
-------------- -----------
/ / General Account %
-----------
=========================================
TOTAL ALLOCATION %
-----------
- ------------------------------------------------------------------------------
9406
(4/92)
<PAGE>
<PAGE>
- ------------------------------------------------------------------------------
SECTION B (CONT'D) FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE APPLIED FOR
- ------------------------------------------------------------------------------
13. (d) Suitability Information:
(a) Have you received a prospectus for the policy
applied for? / / Yes / / No
Date of prospectus
--------------------------
Date of any supplement
----------------------
(b) Do you understand that:
1. The death benefit and cash surrender value
will increase or decrease depending on
investment experience, and
2. There is no guaranteed minimum death benefit
or cash surrender value? / / Yes / / No
(c) Do you believe that the policy applied for meets
your insurance needs and your anticipated
financial objectives? / / Yes / / No
/ / I REQUEST A COPY OF THE STATEMENT OF ADDITIONAL INFORMATION
REFERRED TO IN THE PROSPECTUS.
- ------------------------------------------------------------------------------
(e) Dividend Option (if eligible): / / Increasing Cash Value / / Cash
- ------------------------------------------------------------------------------
(f) / / Additional or / / Alternate Policy(ies) desired. (If benefits,
mode, beneficiary or ownership are different than original policy,
provide details.)
- ------------------------------------------------------------------------------
(g) Explanations or Additional Instructions:
- ------------------------------------------------------------------------------
(h) For Home Office Endorsement only. (Not applicable in Kentucky,
Maryland, Minnesota, New Hampshire, Pennsylvania, West Virginia,
Wisconsin)
- ------------------------------------------------------------------------------
9406
(4/92)
<PAGE>
<PAGE>
- ------------------------------------------------------------------------------
PART II APPLICATION FOR FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE TO
GENERAL AMERICAN LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI
- ------------------------------------------------------------------------------
MEDICAL DECLARATIONS SECTION C
- ------------------------------------------------------------------------------
14. (a) Name of Insured:
------------------------------------------------------
(b) Height ft. in; Weight lbs.
---- ----- -----
(c) Any change in weight in past year? (If yes, give details Yes No
below, including lbs.) / / / /
- ------------------------------------------------------------------------------
15. (a) Name and address of your personal physician. If none, check / /
Name Phone #
--------------------------------------- ------------------
Address
--------------------------------------------------------------
(b) Date and reason last consulted? Date Reason
----------- --------------
(c) What treatment was given or medication prescribed?
--------------------
- ------------------------------------------------------------------------------
16. Within the last ten years, from the date of this application,
have you been treated for or had any known indication of: Yes No
(a) Dizziness, fainting, convulsions, epilepsy, headaches,
speech defects, paralysis, mental or nervous disorders? / / / /
- ------------------------------------------------------------------------------
(b) Shortness of breath, bronchitis, asthma, emphysema,
tuberculosis, pneumonia, or chronic respiratory
disease? / / / /
- ------------------------------------------------------------------------------
(c) Chest pain, pulse irregularity, high blood pressure,
rheumatic fever, heart murmur, heart attack, stroke, or
other disorder of the heart, or circulatory system, anemia,
or other disorder of the blood? / / / /
- ------------------------------------------------------------------------------
(d) Jaundice, intestinal bleeding, ulcer, diarrhea, colitis,
diverticulitis, or other disorder of the stomach,
intestines, liver or gallbladder? / / / /
- ------------------------------------------------------------------------------
(e) Kidney stone or other disease of kidney; venereal disease;
disorder of the bladder, prostate, reproductive organs,
or breasts; sugar, albumin, blood or pus in the urine? / / / /
- ------------------------------------------------------------------------------
(f) Diabetes; disorder of the thyroid or lymph glands, or
other endocrine disorders? / / / /
- ------------------------------------------------------------------------------
(g) Arthritis, gout, collagen disease or other disorders of
the muscles, or bones including spine, back or joints? / / / /
- ------------------------------------------------------------------------------
(h) Disorder of skin, cyst, tumor or cancer? / / / /
- ------------------------------------------------------------------------------
17. Are you now under observation or taking medication or
treatment? / / / /
- ------------------------------------------------------------------------------
18. Do you have any doctor's visit or medical care scheduled? / / / /
- ------------------------------------------------------------------------------
19. Have you ever been diagnosed by a member of the medical
profession as having AIDS or AIDS Related Complex? / / / /
- ------------------------------------------------------------------------------
20. Have you ever received treatment from a member of the
medical profession for AIDS or AIDS Related Complex? / / / /
- ------------------------------------------------------------------------------
DETAILS of answers. (IDENTIFY QUESTION NUMBER, CIRCLE APPLICABLE ITEMS:
Include diagnoses, dates, duration and names and addresses of all attending
physicians and medical facilities.)
- ------------------------------------------------------------------------------
9406
(4/92)
<PAGE>
<PAGE>
- ------------------------------------------------------------------------------
SECTION C - CONTINUED MEDICAL DECLARATIONS
- ------------------------------------------------------------------------------
21. Other than above, have you within the past 5 years:
YES NO
(a) Had any psychiatric or psychological consultation not
listed above or any physical disorder not listed above? / / / /
(b) Had a checkup, consultation, illness, injury, surgery? / / / /
(c) Been a patient in a hospital, clinic, sanatorium, or other
medical facility? / / / /
(d) Had electrocardiogram, X-ray, other diagnostic test? / / / /
(e) Been advised to have any diagnostic test, hospitalization,
treatment, or surgery which was not completed? / / / /
- ------------------------------------------------------------------------------
22. (a) Have you used (once or more) or do you now use
barbiturates, amphetamines, hallucinogenic drugs
(including marijuana), cocaine, heroin, narcotics, or
any similar substances or any prescription drug except
in accordance with a physician's instruction? / / / /
(b) Have you ever received counseling, advice or treatment
regarding the use of alcohol or drugs? / / / /
(c) Have you ever been a member of any self-help group
such as Alcoholics Anonymous or Narcotics Anonymous? / / / /
- ------------------------------------------------------------------------------
23. Have you ever attempted suicide or made a suicidal gesture? / / / /
- ------------------------------------------------------------------------------
24. (a) Do you currently use any form of tobacco? / / / /
(b) Have you used any form of tobacco in the last 12 months? / / / /
If either or both of these questions is answered "Yes",
complete the following:
(i) type used: / / Cigar / / Pipe / / Cigarettes
/ / Smokeless Tobacco
(ii) how often?
--------------------------------------
(iii) If you no longer smoke, when did you stop?
(mo) (yr)
--------- --------
- ------------------------------------------------------------------------------
25. Do you exercise regularly; i.e. Calisthenics, jogging, etc.? / / / /
If "Yes", how often? / / Daily / / Weekly / / Other
- ------------------------------------------------------------------------------
26. Are you now pregnant? / / / /
If "Yes", what is estimated date of delivery?
--------------
- ------------------------------------------------------------------------------
27. Do you have any family history of tuberculosis, diabetes,
cancer, high blood pressure, heart or kidney disease,
mental illness or suicide? / / / /
- ------------------------------------------------------------------------------
28. Age if Age at
Living Cause of Death Death
- ------------------------------------------------------------------------------
Father
- ------------------------------------------------------------------------------
Mother
- ------------------------------------------------------------------------------
Brothers and Sisters
- ------------------------------------------------------------------------------
No. Living
- --------------------
No. Dead
- ------------------------------------------------------------------------------
DETAILS of answers. (IDENTIFY QUESTION NUMBER, CIRCLE APPLICABLE ITEMS:
Include diagnoses, dates, duration and names and addresses of all attending
physicians and medical facilities.)
- ------------------------------------------------------------------------------
9406
(4/92)
<PAGE>
<PAGE>
- ------------------------------------------------------------------------------
DECLARATIONS SECTION D
- ------------------------------------------------------------------------------
I agree that the statements and answers in this application are true and
complete to the best of my knowledge and belief. I also agree that:
(a) The statements and answers in this application, and any amendments to
it, or made to the medical examiner will be the basis of any insurance
issued and will be a part of any policy issued.
(b) Knowledge of the agent or medical examiner will not be imputed to the
Company unless stated in Part 1, or any of its supplements, Part II, or
medical reports received in the Home Office. No printed provision of
this application will be modified or waived except by an endorsement
signed by an officer at the Home Office. No agent or medical examiner
has the authority to make or alter any contract for the Company.
(c) The "date of issue" as shown in my policy will be the "anniversary
date". The due date of future premiums will be determined from that
date. The number of policy years and months for deciding policy values
will be determined from that date.
(d) My acceptance of any insurance policy means I agree to any changes
shown in #13(h), where state law permits Home Office corrections and
additions.
(e) If a premium payment is given in exchange for a Temporary Insurance
Agreement (TIA), the Company will be liable only as set forth in that
Agreement.
(f) If a premium payment is not given at the same time as this application,
then insurance will take effect when all of the following are
satisfied:
(1) A policy is approved by the Company for issue as applied for;
and
(2) The full first premium is paid; and
(3) The health and insurability of any person proposed for insurance
have not changed since the date of this application.
(g) If a policy is issued other than as applied for, coverage will take
effect under the policy only when all of the following have been
satisfied:
(1) A policy issued by the Company is delivered to and accepted by
me; and
(2) The full first premium is paid; and
(3) The health and insurability of any person proposed for insurance
have not changed since the date of this application.
(h) The undersigned applicant and agent certify that the applicant has
read, or had read to him the completed application and that he or she
realizes that any false statement or misrepresentation therein may
result in loss of coverage under the policy.
CERTIFICATION: UNDER PENALTIES OF PERJURY, I CERTIFY THAT:
(1) The number shown on this form is my correct Taxpayer
Identification Number (or, if no number is shown, I am waiting
for a number to be issued to me); and
(2) I am not subject to backup withholding either because I have not
been notified by the Internal Revenue Service (IRS) that I am
subject to backup withholding as a result of a failure to report
all interest or dividends, or the IRS has notified me that I am
no longer subject to backup withholding.
PLEASE NOTE: YOU MUST CROSS OUT AND INITIAL #2 ABOVE IF YOU HAVE BEEN
NOTIFIED BY THE IRS THAT YOU ARE CURRENTLY SUBJECT TO BACK
UP WITHHOLDING BECAUSE OF UNDER-REPORTING INTEREST OR
DIVIDENDS ON YOUR TAX RETURN.
<PAGE>
Signed at X
----------------------------- --------------------------------------
(City, State) (Signature of Proposed Insured -
Parent or Guardian if Proposed Insured
under age 15.)
This day of , 19
------- --------------- -- --------------------------------------
(<F*>Signature of Applicant/Owner)
- --------------------------------------
I certify that I have truly and
accurately recorded on all parts --------------------------------------
of this application the information
supplied by the applicant.
--------------------------------------
---------------------------------- --------------------------------------
Signature of Licensed Agent [FN]
(If not yet appointed, do not sign.) <F*>Signature and address if other
- -------------------------------------- than Proposed Insured. If Owner is a
Corporation, Partnership, or Trust,
an authorized officer, partner, or
trustee must sign and state title.
- ------------------------------------------------------------------------------
9406
(4/92)
<PAGE>
<PAGE>
-------
MIB
-------
GENERAL AMERICAN LIFE INSURANCE COMPANY
ST. LOUIS, MISSOURI
AUTHORIZATION TO OBTAIN AND DISCLOSE INFORMATION
I authorize General American Life Insurance Company, its agents, employees,
reinsurers, insurance support organizations and their representatives to
obtain information about me to evaluate this application. This information may
be about: (a) age; (b) medical history, condition and care; (c) physical and
mental health; (d) occupation; (e) income; (f) avocations; (g) driving record;
(h) other personal characteristics; and (i) other insurance. It includes
information about the use of alcohol, drugs and tobacco.
I authorize any physician, health care professional, hospital, clinic, medical
facility, the Veterans Administration, the MIB, Inc., employer, consumer
reporting agency or other insurance company, to release information about me
to General American Life Insurance Company on receipt of this Authorization. I
also authorize all said sources, except MIB, Inc., to give such records or
knowledge to any agency or representative employed by General American Life
Insurance Company to collect and transmit such information. General American
Life Insurance Company or its representative(s) may also release this
information about me to its reinsurer, to the MIB, Inc., or to another
insurance company to whom I have applied or to whom a claim has been made. No
other release may be made except as allowed by law or as I further authorize.
This form is valid for 30 months from the date it is signed. I have received
the Notice of Information Practices, which includes the Medical Information
Bureau and Fair Credit Reporting Act notices. I authorize General American
Life Insurance Company to obtain an investigative consumer report on me.
A photographic copy of this is as valid as the original. I have the right to
receive a copy of this if I ask for it.
- ---------------------------------- -----------------------------------
Date Print Name of Proposed Insured
X
- ---------------------------------- -----------------------------------
Witness (Signature of Proposed Insured -
Parent or Guardian if Proposed
Insured under age 15.)
Send Authorization to Home Office with Application
9406
(4/92)
<PAGE>
<PAGE>
-------
TIA
-------
GENERAL AMERICAN LIFE INSURANCE COMPANY ST. LOUIS, MISSOURI 63166
TEMPORARY INSURANCE AGREEMENT AND ADVANCE PREMIUM RECEIPT
In Connection with Application #
------------------
PLEASE READ CAREFULLY: This Agreement may provide a LIMITED AMOUNT of Life
- ---------------------- --------------
Insurance for a LIMITED PERIOD OF TIME, subject to the terms below. NO AGENT
-----------------------
OR BROKER IS AUTHORIZED TO WAIVE OR CHANGE ANY OF THE TERMS OF THIS AGREEMENT.
ALL PREMIUM CHECKS MUST BE MADE PAYABLE TO THE COMPANY. DO NOT MAKE CHECK
PAYABLE TO THE AGENT OR BROKER OR LEAVE THE PAYEE BLANK. This Agreement must
be completed when (and only when) money is paid by you at the time you
complete the Application (Part I). Money cannot be accepted and no Temporary
Insurance will be in effect if the answer to any of the Health Questions
listed below is "yes" or left blank.
Received from a premium of $ and an application having
--------------- ----------
the number shown above and the same date as this Agreement, and on which
is shown as the Proposed insured.
- --------------------
NOTE: To obtain the maximum period of coverage (60 days), at least 1/6th of
the annual premium must be submitted with this Agreement.
We acknowledge receipt of the amount paid with the Application (Part I). That
application must bear the same number, date and name of Proposed Insured as
shown in this Agreement. If any of these items do not agree, NO TEMPORARY
INSURANCE will be in effect, even if money is paid. Any check submitted for
payment of the advance premium also must bear the same date as the Application
(Part I) and this Agreement.
HEALTH QUESTIONS
NO MONEY SHOULD BE ACCEPTED IF ANY OF THE QUESTIONS BELOW ARE ANSWERED "YES".
NO COVERAGE IS IN EFFECT UNTIL ALL REQUIREMENTS HAVE BEEN MET.
Has the Proposed Insured or any person proposed for coverage in connection
with the application numbered above:
1. Within the past 90 days: Yes No
(a) been admitted to a hospital or other medical facility? / / / /
(b) been advised to be admitted to a hospital or other
medical facility? / / / /
(c) had surgery performed or recommended? / / / /
2. Within the past 2 years, had or been treated for or been
advised to be treated for:
(a) heart disease, stroke or cancer? / / / /
(b) alcohol or drug dependence or abuse? / / / /
I have received a copy of and have read this Agreement including the terms and
conditions on the reverse side and declare that the answers to the Health
Questions are true to the best of my knowledge and belief. I understand
and agree to all of its terms.
Signed at X
--------------------------- -------------------------------------
(City, State) (Signature of Proposed Insured-Parent
or Guardian if Proposed Insured
under age 15.)
This day of ,19
----- ------------ ---- -------------------------------------
(<F*>Signature of Applicant/Owner)
- ------------------------------------ -------------------------------------
(Signature of Licensed Agent)
-------------------------------------
-------------------------------------
[FN]
<F*>Signature and address if other
than Proposed Insured. If Owner is a
Corporation, Partnership, or Trust,
an authorized officer, partner, or
trustee must sign and state title.
Submit this original with the application.
9406
(4/92)
<PAGE>
<PAGE>
- -------
TIA
- -------
TERMS, CONDITIONS AND LIMITATIONS
AMOUNT OF COVERAGE: $500,000 Maximum for all
-------------------
Life Insurance Applications or Agreements
Subject to the limitations contained in this Agreement, if money has been
accepted by the Company as advance payment for the application for Life
Insurance identified by number in this Agreement, and if the Proposed Insured
or any other person proposed for coverage dies while this Agreement is in
effect, the Company will pay to the beneficiary named in that application the
LESSER of: (a) the amount of all death benefits applied for on such person,
including any accidental or supplemental death benefits, if applicable, or (b)
$500,000. Even if more than one Temporary Insurance Agreement and Advance
Premium Receipt is in effect, the total amount paid under all such agreements
cannot be more than a maximum amount of $500,000. This maximum amount also
will be reduced by any other life and accidental death insurance in force with
us. The MINIMUM amount of temporary life insurance will be either the amount
-------
applied for or $50,000, whichever is less.
DATE COVERAGE BEGINS: If an advance premium has been paid with the
- ---------------------
application, Temporary Insurance under this Agreement will begin when the
following requirements are met:
1. This Agreement has been completed; and
2. Part I and Part II of the Application for Insurance have been
fully completed; and
3. All required medical examination requirements have been completed.
DATE COVERAGE TERMINATES: Temporary Insurance under this Agreement will
- -------------------------
terminate automatically on the earliest of the following dates:
1. 60 days from the date of this Agreement; or
2. The date insurance begins under the policy(ies) applied for; or
3. The date a policy, other than applied for, is offered to the
person named as owner in the application; or
4. The date the Company mails notice to the Proposed Insured at the
address shown in the application that the application or this
Agreement has been declined by the Company.
SPECIAL LIMITATIONS:
- --------------------
1. This Agreement provides benefits only for the type of insurance
applied for in the application identified on this Agreement. And,
except as limited by this Agreement, our liability is governed by
the terms of the policy(ies) for which application was made on the
application identified on this Agreement.
2. Fraud or misrepresentations in the application or in the answers
to the Health Questions in this Agreement invalidate this
Agreement and the Company's only liability is to refund any
premium paid, plus interest.
3. If the Proposed Insured dies by suicide, the Company's liability
is limited to a refund of any premium paid, plus interest.
4. There is no coverage under this Agreement if the check submitted
with the application is not honored by the bank the first time it
is presented.
5. No agent or broker is authorized to accept a payment for a
Proposed Insured who is less than 15 days old or over age 70 on
the date of the Agreement.
Any payment made under this Agreement applies only to the purchase of
temporary insurance. If we issue the policy as applied for, or if you accept a
policy issued other than as applied for, then the amount paid will be credited
to the first year's premium due under the policy issued. Except as otherwise
provided under the terms of the policy, no refund will be made if we issue a
policy as applied for. The effective date of the policy issued will be
determined in accordance with our current policy dating procedures.
The full amount paid with this Agreement will be refunded to you, with
interest, if:
1. The Application or this Agreement is declined or cancelled by us,
or
2. We receive your signed request to cancel the Application or this
Agreement.
9406
(4/92)
<PAGE>
<PAGE>
-------
TIA
-------
GENERAL AMERICAN LIFE INSURANCE COMPANY ST. LOUIS, MISSOURI 63166
TEMPORARY INSURANCE AGREEMENT AND ADVANCE PREMIUM RECEIPT
In Connection with Application #
------------------
PLEASE READ CAREFULLY: This Agreement may provide a LIMITED AMOUNT of Life
- ---------------------- --------------
Insurance for a LIMITED PERIOD OF TIME, subject to the terms below. NO AGENT
-----------------------
OR BROKER IS AUTHORIZED TO WAIVE OR CHANGE ANY OF THE TERMS OF THIS AGREEMENT.
ALL PREMIUM CHECKS MUST BE MADE PAYABLE TO THE COMPANY. DO NOT MAKE CHECK
PAYABLE TO THE AGENT OR BROKER OR LEAVE THE PAYEE BLANK. This Agreement must
be completed when (and only when) money is paid by you at the time you
complete the Application (Part I). Money cannot be accepted and no Temporary
Insurance will be in effect if the answer to any of the Health Questions
listed below is "yes" or left blank.
Received from a premium of $ and an application having
--------------- ----------
the number shown above and the same date as this Agreement, and on which
is shown as the Proposed insured.
- --------------------
NOTE: To obtain the maximum period of coverage (60 days), at least 1/6th of
the annual premium must be submitted with this Agreement.
We acknowledge receipt of the amount paid with the Application (Part I). That
application must bear the same number, date and name of Proposed Insured as
shown in this Agreement. If any of these items do not agree, NO TEMPORARY
INSURANCE will be in effect, even if money is paid. Any check submitted for
payment of the advance premium also must bear the same date as the Application
(Part I) and this Agreement.
HEALTH QUESTIONS
NO MONEY SHOULD BE ACCEPTED IF ANY OF THE QUESTIONS BELOW ARE ANSWERED "YES".
NO COVERAGE IS IN EFFECT UNTIL ALL REQUIREMENTS HAVE BEEN MET.
Has the Proposed Insured or any person proposed for coverage in connection
with the application numbered above:
1. Within the past 90 days: Yes No
(a) been admitted to a hospital or other medical facility? / / / /
(b) been advised to be admitted to a hospital or other
medical facility? / / / /
(c) had surgery performed or recommended? / / / /
2. Within the past 2 years, had or been treated for or been
advised to be treated for:
(a) heart disease, stroke or cancer? / / / /
(b) alcohol or drug dependence or abuse? / / / /
I have received a copy of and have read this Agreement including the terms and
conditions on the reverse side and declare that the answers to the Health
Questions are true to the best of my knowledge and belief. I understand
and agree to all of its terms.
Signed at X
--------------------------- -------------------------------------
(City, State) (Signature of Proposed Insured-Parent
or Guardian if Proposed Insured
under age 15.)
This day of ,19
----- ------------ ---- -------------------------------------
(<F*>Signature of Applicant/Owner)
- ------------------------------------ -------------------------------------
(Signature of Licensed Agent)
-------------------------------------
-------------------------------------
[FN]
<F*>Signature and address if other
than Proposed Insured. If Owner is a
Corporation, Partnership, or Trust,
an authorized officer, partner, or
trustee must sign and state title.
Proposed Insured's Copy
9406
(4/92)
<PAGE>
<PAGE>
- -------
TIA
- -------
TERMS, CONDITIONS AND LIMITATIONS
AMOUNT OF COVERAGE: $500,000 Maximum for all
-------------------
Life Insurance Applications or Agreements
Subject to the limitations contained in this Agreement, if money has been
accepted by the Company as advance payment for the application for Life
Insurance identified by number in this Agreement, and if the Proposed Insured
or any other person proposed for coverage dies while this Agreement is in
effect, the Company will pay to the beneficiary named in that application the
LESSER of: (a) the amount of all death benefits applied for on such person,
including any accidental or supplemental death benefits, if applicable, or (b)
$500,000. Even if more than one Temporary Insurance Agreement and Advance
Premium Receipt is in effect, the total amount paid under all such agreements
cannot be more than a maximum amount of $500,000. This maximum amount also
will be reduced by any other life and accidental death insurance in force with
us. The MINIMUM amount of temporary life insurance will be either the amount
-------
applied for or $50,000, whichever is less.
DATE COVERAGE BEGINS: If an advance premium has been paid with the
- ---------------------
application, Temporary Insurance under this Agreement will begin when the
following requirements are met:
1. This Agreement has been completed; and
2. Part I and Part II of the Application for Insurance have been
fully completed; and
3. All required medical examination requirements have been completed.
DATE COVERAGE TERMINATES: Temporary Insurance under this Agreement will
- -------------------------
terminate automatically on the earliest of the following dates:
1. 60 days from the date of this Agreement; or
2. The date insurance begins under the policy(ies) applied for; or
3. The date a policy, other than applied for, is offered to the
person named as owner in the application; or
4. The date the Company mails notice to the Proposed Insured at the
address shown in the application that the application or this
Agreement has been declined by the Company.
SPECIAL LIMITATIONS:
- --------------------
1. This Agreement provides benefits only for the type of insurance
applied for in the application identified on this Agreement. And,
except as limited by this Agreement, our liability is governed by
the terms of the policy(ies) for which application was made on the
application identified on this Agreement.
2. Fraud or misrepresentations in the application or in the answers
to the Health Questions in this Agreement invalidate this
Agreement and the Company's only liability is to refund any
premium paid, plus interest.
3. If the Proposed Insured dies by suicide, the Company's liability
is limited to a refund of any premium paid, plus interest.
4. There is no coverage under this Agreement if the check submitted
with the application is not honored by the bank the first time it
is presented.
5. No agent or broker is authorized to accept a payment for a
Proposed Insured who is less than 15 days old or over age 70 on
the date of the Agreement.
Any payment made under this Agreement applies only to the purchase of
temporary insurance. If we issue the policy as applied for, or if you accept a
policy issued other than as applied for, then the amount paid will be credited
to the first year's premium due under the policy issued. Except as otherwise
provided under the terms of the policy, no refund will be made if we issue a
policy as applied for. The effective date of the policy issued will be
determined in accordance with our current policy dating procedures.
The full amount paid with this Agreement will be refunded to you, with
interest, if:
1. The Application or this Agreement is declined or cancelled by us,
or
2. We receive your signed request to cancel the Application or this
Agreement.
9406
(4/92)
<PAGE>
<PAGE>
- ------------------------------------------------------------------------------
SOLICITING AGENT'S CERTIFICATE SAC
- ------------------------------------------------------------------------------
1. Obtain all residence addresses of the Proposed Insured for the past 5
years.
- ------------------------------------------------------------------------------
2. If in present occupation or employment less than 1 year, give former
occupation and name and address of former employer.
- ------------------------------------------------------------------------------
3. Are you related to Proposed Insured? If "Yes", explain:
- ------------------------------------------------------------------------------
4. Insured's Net Worth: $
- ------------------------------------------------------------------------------
5. / / To the best of my knowledge, this is a replacement. (Complete and
submit required papers.)
/ / To the best of my knowledge, this is not a replacement.
- ------------------------------------------------------------------------------
6. (a) Did you deliver "Notice of Information Practices" and the
explanation of the Medical Information Bureau to the Proposed
Insured? / / Yes / / No
(b) Did you deliver the current Prospectus and were all of the written
sales materials used printed by General American Life Insurance
Co.? / / Yes / / No
(c) Do you believe that the policy applied for is a suitable purchase
for the applicant under the policy? / / Yes / / No
------------------------------------------------------------------
Signature of Soliciting Agent
- ------------------------------------------------------------------------------
7. FOR BUSINESS INSURANCE ONLY (Use when applying for corporation or
partnership or cross purchase arrangements involving business interests)
(a) Form of Organization: / / Corporation / / Partnership
/ / Individual Proprietor
- ------------------------------------------------------------------------------
(b) If Key-Person, submit details showing how amount of coverage was
determined.
- ------------------------------------------------------------------------------
(c) If business purchase or stock redemption, does a formal agreement
exist? (If "Yes", please describe provisions. If "No", what plans are
being formulated.) / / Yes / / No
- ------------------------------------------------------------------------------
(d) Has this business or any of its owners undergone receivership,
bankruptcy, or serious financial reverses in the last five years?
(If "Yes", furnish full details including date of discharge from
receivership or bankruptcy.) / / Yes / / No
- ------------------------------------------------------------------------------
(e) Financial data for the last three years. (Please include a cover
letter giving full details of the transaction including any
pertinent historical, financial, or underwriting data. If
available, complete financial statements can be submitted in place
of the details requested under this question.)
(1) Fiscal Year Ending Month Day Year 19 Year 19 Year 19
---------------------------------------------------------------------
(2) Net Worth of Owner's Equity
---------------------------------------------------------------------
(3) Liabilities (i) Current
---------------------------------------------------------------------
(ii) Long Term Debt
---------------------------------------------------------------------
(4) Net Sales
---------------------------------------------------------------------
(5) Net Operating Income or Profit
- -------------------------------------------------------------------------------
(f) Enter below in indicated column, the names, ownership interests,
and the amount of business insurance (in all insuring companies)
carried by all owners, officers, partners, and key-person.
- -------------------------------------------------------------------------------
PERCENT OF INSURANCE AMOUNT -
NAME TITLE OWNERSHIP ALL COMPANIES INCLUDING GALIC
-----------------------------------
In Force Pending Contemplated
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
9406
(4/92)
<PAGE>
<PAGE>
- -------------------------------------------------------------------------------
SAC - Continued SOLICITING AGENT'S CERTIFICATE
- -------------------------------------------------------------------------------
8. (a) Names and Codes of Agents to be credited with production. Include
percentage split. If not yet appointed or licensed in the
jurisdiction where this application was signed - do not sign.
% Agent Code
------ ----------------------- -----------------
% Agent Code
------ ----------------------- -----------------
% Agent Code
------ ----------------------- -----------------
% Agent Code
------ ----------------------- -----------------
- -------------------------------------------------------------------------------
(b) Annualize commission requested / / Yes / / No
-------------------------------------
Signature of General Agent
- -------------------------------------------------------------------------------
ATTACH AGENT LABEL ONLY FOR AGENT TO BE CREDITED WITH PRODUCTION
- - Do not attach additional agent or General Agent labels unless it is your
intention to split commissions.
- ------------------------------------ -------------------------------------
- ------------------------------------ -------------------------------------
- ------------------------------------ -------------------------------------
- ------------------------------------ -------------------------------------
- -------------------------------------------------------------------------------
For Home Office Use Only
Reviewed By: Date:
----------------------------- ----------------
(Principal)
- -------------------------------------------------------------------------------
9406
(4/92)
<PAGE>
EXHIBIT 3.(2)
General American Life Insurance Company
700 Market Street
St. Louis, MO 63101
Dear Sirs:
This opinion is furnished in connection with the offering of individual,
flexible premium variable life insurance policies ("Policies") of
General American Life Insurance Company ("General American") under
Registration Statement No. 33-84104 filed by General American and
General American Life Insurance Company Separate Account Eleven
("Account") under the Securities Act of 1933, as amended ("Act").
I have made such examination of the law and examined such corporate
records and such other documents as in my judgment are necessary and
appropriate to enable me to render the following opinion that:
1. General American has been duly organized under the laws of the
State of Missouri and is a validly existing corporation.
2. The Account has been duly formed by the Board of Directors of
General American as a separate account for assets designed to support
the Policies, pursuant to the provisions of Section 309 of Chapter 376,
of the Revised Statutes of Missouri. The Account is duly created and
validly existing as a separate account pursuant to the above-cited
provisions of Missouri law.
3. The portion of the assets to be held in the Account equal to the
reserves and other liabilities under the Policies is not chargeable with
liabilities arising out of any other business General American may
conduct.
4. The Policies have been duly authorized by General American and,
when issued as contemplated by the Registration Statement, as amended,
will constitute legal, validly issued, and binding obligations of
General American in accordance with their terms.
I hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and to the use of my name under the caption
"Legal Matters" in the Prospectus contained in the Registration
Statement.
Very truly yours,
/s/ Christopher A. Martin
Christopher A. Martin
Counsel
