<PAGE> 1
REGISTRATION NOS. 333-59717
811-5166
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933
PRE-EFFECTIVE AMENDMENT NO.
POST-EFFECTIVE AMENDMENT NO. 7
AND/OR
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940 [X]
AMENDMENT NO. 9
(CHECK APPROPRIATE BOX OR BOXES.)
------------------------
MONY AMERICA VARIABLE ACCOUNT A
(EXACT NAME OF REGISTRANT)
MONY LIFE INSURANCE COMPANY
OF AMERICA
(NAME OF DEPOSITOR)
1740 BROADWAY
NEW YORK, NEW YORK 10019
(ADDRESS OF DEPOSITOR'S PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
DEPOSITOR'S TELEPHONE NUMBER, INCLUDING AREA CODE (212) 708-2000
FREDERICK C. TEDESCHI
VICE PRESIDENT AND CHIEF COUNSEL -- OPERATIONS
MONY LIFE INSURANCE COMPANY
1740 BROADWAY
NEW YORK, NEW YORK 10019
(NAME AND ADDRESS OF AGENT FOR SERVICE)
------------------------
It is proposed that this filing become effective May 1, 2000 pursuant to
Rule 485(b).
STATEMENT PURSUANT TO RULE 24f-2
The Registrant registers an indefinite number or amount of its flexible
payment variable annuity contracts under the Securities Act of 1933 pursuant to
Rule 24f-2 under the Investment Company Act of 1940. The Rule 24f-2 notice for
the Registrant's fiscal year ending December 31, 1999 was filed on March 29,
2000.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE> 2
CROSS REFERENCE SHEET
(REQUIRED BY RULE 495)
PART A
<TABLE>
<CAPTION>
ITEM NO. LOCATION
- -------- --------
<C> <S> <C>
1. Cover Page...................................... Cover Page
2. Definitions..................................... Definitions
3. Synopsis........................................ Summary
4. Condensed Financial Information................. Condensed Financial Information
5. General Description of Registrant, Depositor,
and Portfolio Companies......................... MONY Life Insurance Company of America;
MONY America Variable Account A; The
Funds; Charges and Deductions
6. Deductions and Expenses......................... Charges and Deductions
7. General Description of Variable Annuity
Contracts....................................... Payment and Allocation of Purchase
Payments; Other Provisions
8. Annuity Period.................................. Annuity Provisions
9. Death Benefit................................... Death Benefit; Annuity Provisions
10. Purchases and Contract Value.................... Payment and Allocation of Purchase
Payments
11. Redemptions..................................... Surrenders
12. Taxes........................................... Federal Tax Status
13. Legal Proceedings............................... Legal Proceedings
14. Table of Contents of Statement of Additional
Information..................................... Table of Contents of Statement of
Additional Information
PART B
Information Required in a Statement of Additional Information
15. Cover Page...................................... Cover Page
16. Table of Contents............................... Table of Contents
17. General Information and History................. MONY Life Insurance Company of America
18. Services........................................ Not Applicable
19. Purchase of Securities Being Offered............ Not Applicable
20. Underwriters.................................... Prospectus -- MONY Life Insurance Company
of America
21. Calculation of Performance Data................. Performance Data
22. Annuity Payments................................ Not Applicable
23. Financial Statements............................ Financial Statements
PART C
Information related to the following Items is set forth under the appropriate Item, so numbered,
in Part C to this Registration Statement.
24. Financial Statements and Exhibits
25. Directors and Officers of the Depositor
26. Persons Controlled by or Under Common Control with the Depositor or Registrant
27. Number of Contractowners
28. Indemnification
29. Principal Underwriters
30. Location of Accounts and Records
31. Management Services
32. Undertakings
</TABLE>
<PAGE> 3
PROSPECTUS
Dated May 1, 2000
Individual Flexible Payment Variable Annuity Contract
Issued By
MONY America Variable Account A
MONY Life Insurance Company of America
MONY Life Insurance Company of America (the "Company") issues the flexible
payment variable annuity contract described in this prospectus. Among the
contract's many terms are:
Allocation of Purchase Payments and Cash Value
- - You can tell us what to do with your purchase payments. You can also tell us
what to do with the fund value your contract may create for you resulting from
those purchase payments.
- You can tell us to place them into a separate account. That separate
account is called MONY America Variable Account A.
- If you do, you can also tell us to place your purchase payments and fund
values into any 20 of the 25 different subaccounts. Each of these
subaccounts seeks to achieve a different investment objective. The
subaccounts invest in shares of the following portfolios of the MONY
Series Fund, Inc., Enterprise Accumulation Trust, Fidelity Variable
Insurance Products Fund, Fidelity Variable Insurance Products Fund II,
Fidelity Variable Insurance Products Fund III, Dreyfus Stock Index Fund,
The Dreyfus Socially Responsible Growth Fund, Inc. and Janus Aspen
Series (the "Funds").
- MONY Series Fund, Inc.
- Money Market Portfolio, Government Securities Portfolio, Long Term Bond
Portfolio and Intermediate Term Bond Portfolio
- Enterprise Accumulation Trust
- Equity Income Portfolio, Growth and Income Portfolio, Growth Portfolio,
Equity Portfolio, Capital Appreciation Portfolio, Managed Portfolio,
Small Company Growth Portfolio, Small Company Value Portfolio,
International Growth Portfolio, High Yield Bond Portfolio, Multi-Cap
Growth Portfolio, Balanced Portfolio
- Dreyfus Stock Index Fund
- The Dreyfus Socially Responsible Growth Fund, Inc.
- Fidelity Variable Insurance Products Fund
- Growth Portfolio
- Fidelity Variable Insurance Products Fund II
- Contrafund Portfolio
- Fidelity Variable Insurance Products Fund III
- Growth Opportunities Portfolio
- Janus Aspen Series
- Aggressive Growth Portfolio, Balanced Portfolio, Capital Appreciation
Portfolio and Worldwide Growth Portfolio.
- You can also tell us to place some or all of your purchase payments and
fund values into our Guaranteed Interest Account with Market Value
Adjustment. Our account will pay you a guaranteed interest rate annually,
and we will guarantee that those purchase payments and fund values will
not lose any value, so long as you leave the purchase payments and fund
values in the Account. Purchase payments and fund values you place into
the Guaranteed Interest Account with Market Value Adjustment become part
of our assets.
Living Benefits
- - Annuity Benefits
- This contract is designed to pay to you the fund value in periodic
installments.
- - Fund Value Benefits
- You may ask for some or all of the contract's fund value at any time. If
you do, we may deduct a surrender charge.
<PAGE> 4
- - Loans
- You may borrow up to 50% of the fund value of the contract if you are a
qualified retirement plan. You will have to pay interest to us on the
amount borrowed.
Death Benefit
- - We will pay a death benefit to your beneficiary upon the death of the person
you name as annuitant before the annuity starting date.
Fees and Charges
- - The contract allows us to deduct certain charges from the cash value. These
charges are detailed in this prospectus.
STATEMENT OF ADDITIONAL INFORMATION
A Statement of Additional Information dated May 1, 2000 containing additional
information about the Contract is incorporated herein by reference. It has been
filed with the Securities and Exchange Commission and is available from the
Company without charge upon written request to the address shown on the request
form on page 48 of this prospectus or by telephoning 1-800-487-6669. The Table
of Contents of the Statement of Additional Information can be found on page 48
of this prospectus.
This prospectus is not an offer to sell or a solicitation of an offer to buy the
Contracts in any jurisdiction where such may not be lawfully made.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or passed upon the
adequacy or accuracy of the prospectus. Any representation to the contrary is a
criminal offense. This prospectus contains basic information that you should
know before investing. It comes with prospectuses for the MONY Series Fund,
Inc., Enterprise Accumulation Trust, Fidelity Variable Insurance Products Fund,
Fidelity Variable Insurance Products Fund II, Fidelity Variable Insurance
Products Fund III, Dreyfus Stock Index Fund, The Dreyfus Socially Responsible
Growth Fund, Inc. and Janus Aspen Series, the Guaranteed Interest Account and
MONY Life Insurance Company of America. You should read these prospectuses
carefully and keep them for future reference.
MONY Life Insurance Company of America
1740 Broadway, New York, New York 10019
1-800-487-6669
<PAGE> 5
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 6
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Summary of the Contract..................................... 1
Definitions............................................... 1
Purpose of the Contract................................... 1
Purchase Payments and Fund Values......................... 1
MONY America Variable Account A........................... 2
Guaranteed Interest Account with Market Value
Adjustment............................................. 2
Market Value Adjustment................................... 2
Minimum Purchase Payments................................. 3
Transfer of Fund Values................................... 3
Contract Loans............................................ 3
Surrender................................................. 3
Charges and Deductions.................................... 3
Right to Return Contract Provision........................ 3
Death Benefit............................................. 4
Detailed Information About the Company and MONY America
Variable Account A........................................ 13
MONY Life Insurance Company of America.................... 13
Year 2000 Issue........................................... 13
MONY America Variable Account A........................... 14
The Funds................................................... 18
Purchase of Portfolio Shares by MONY America Variable
Account A.............................................. 24
Guaranteed Interest Account............................... 24
Detailed Information About the Policy....................... 26
Payment and Allocation of Purchase Payments............... 26
Termination of the Contract............................... 31
Surrenders.................................................. 31
Loans....................................................... 33
Death Benefit............................................... 33
Death Benefit Provided by the Contract.................... 33
Enhanced Death Benefit.................................... 33
Election and Effective Date of Election................... 34
Payment of Death Benefit.................................. 35
Charges and Deductions...................................... 36
Deductions from Purchase Payments......................... 36
Charges Against Fund Value................................ 36
Deductions from Fund Value................................ 37
Annuity Provisions.......................................... 40
Annuity Payments.......................................... 40
Election and Change of Settlement Option.................. 41
Settlement Options........................................ 41
Frequency of Annuity Payments............................. 42
Additional Provisions..................................... 42
Guaranteed Interest Account................................. 42
Other Provisions............................................ 44
Ownership................................................. 44
Provision Required by Section 72(s) of the Code........... 44
Provision Required by Section 401(a)(9) of the Code....... 45
Secondary Annuitant....................................... 45
</TABLE>
i
<PAGE> 7
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Assignment................................................ 46
Change of Beneficiary..................................... 46
Substitution of Securities................................ 47
Modification of the Contracts............................. 47
Change in Operation of MONY America Variable Account A.... 47
Voting Rights............................................... 47
Distribution of the Contracts............................... 49
Federal Tax Status.......................................... 49
Introduction.............................................. 49
Tax Treatment of the Company.............................. 49
Taxation of Annuities in General.......................... 49
Retirement Plans.......................................... 50
Performance Data............................................ 51
Additional Information...................................... 52
Legal Proceedings........................................... 52
Financial Statements........................................ 52
Table of Contents of Statement of Additional Information.... 53
</TABLE>
ii
<PAGE> 8
SUMMARY OF THE CONTRACT
This summary provides you with a brief overview of the more important
aspects of your Contract. It is not intended to be complete. More detailed
information is contained in this prospectus on the pages following this Summary
and in your contract. This summary and the entire prospectus will describe the
part of the contract involving MONY America Variable Account A. The prospectus
also briefly will describe the Guaranteed Interest Account with Market Value
Adjustment and the portfolios offered by MONY Series Fund, Inc. and Enterprise
Accumulation Trust. More detailed information about the Guaranteed Interest
Account with Market Value Adjustment is contained in the prospectus attached to
this prospectus and in your contract. More detailed information about the
portfolios offered by the Funds is contained in the prospectus attached to this
prospectus.
DEFINITIONS
THIS PROSPECTUS CONTAINS SOME SPECIALIZED TERMS. WE HAVE DEFINED SPECIALIZED
TERMS ON THE PAGE WHERE THEY FIRST APPEAR. THE DEFINITIONS WILL APPEAR ON THE
PAGE IN A BOX LIKE THIS ONE.
PURPOSE OF THE CONTRACT
The Contract is an Individual Flexible Payment Variable Annuity Contract
(the "Contract" or "Contracts").
The Contract is designed to allow an owner to make purchase payments to the
Company under the Contract. Those purchase payments are allocated at the owner's
choice among the subaccounts of MONY America Variable Account A and the
Guaranteed Interest Account with Market Value Adjustment. Those purchase
payments can accumulate for a period of time and create fund values for the
owner. The owner can choose the length of time that such purchase payments may
accumulate. The owner may choose at some point in the future to receive annuity
benefits based upon those accumulated fund values.
An owner may use the Contract's design to accumulate fund values for
various purposes including retirement or to supplement other retirement
programs. Some of these retirement programs (the "Qualified Plans") may qualify
for federal income tax advantages available under Sections 401, 403 (other than
Section 403(b)), 408, 408A and 457 of the Internal Revenue Code (the "Code").
QUALIFIED PLANS -- Retirement plans that receive favorable tax treatment under
Section 401, 403, 408 or 457 of the Internal Revenue Code.
QUALIFIED CONTRACTS -- Contracts issued under Qualified Plans.
The Contract is also designed to allow the owner to request payments of
part or all of the accumulated fund values before the owner begins to receive
annuity benefits. This payment may result in the imposition of a surrender
charge and a market value adjustment. The market value adjustment will not apply
to contracts issued in certain states. It may also be subject to income and
other taxes.
PURCHASE PAYMENTS AND FUND VALUES
The purchase payments you make for the Contract are received by the
Company. Currently those purchase payments are not subject to taxes imposed by
the United States Government or any state or local government.
You may allocate your purchase payments to one or more of the subaccounts
of MONY America Variable Account A that are available under the Contract and/or
to the Guaranteed Interest Account with Market Value Adjustment. The purchase
payments you allocate among the various subaccounts of MONY
1
<PAGE> 9
America Variable Account A may increase or decrease in value on any day
depending on the investment experience of the subaccounts you select. There is
no guarantee that the value of the purchase payments you allocate to any of the
subaccounts of MONY America Variable Account A will increase or that the
purchase payments you make will not lose value.
Purchase payments you allocate to the Guaranteed Interest Account will be
credited with interest at a rate determined by the Company. That rate will not
be less than 3.5%.
MONY AMERICA VARIABLE ACCOUNT A
MONY America Variable Account A is a separate investment account of MONY
Life Insurance Company of America (the "Company"). MONY America Variable Account
A's assets are owned by the Company, but are not chargeable with liabilities
arising from any other business the Company conducts.
The subaccounts of MONY America Variable Account A invest in shares of the
Funds at their net asset value. (See "The Funds" at page ). Owners bear the
entire investment risk for all amounts allocated to MONY America Variable
Account A subaccounts.
OWNER -- The person so designated in the application. If a Contract has been
absolutely assigned, the assignee becomes the Owner. A collateral assignee is
not the Owner.
PURCHASE PAYMENT (PAYMENT) -- An amount paid to the Company by the Owner or on
the Owner's behalf as consideration for the benefits provided by the Contract.
GUARANTEED INTEREST ACCOUNT WITH MARKET VALUE ADJUSTMENT
The Guaranteed Interest Account is part of the Company's general account.
It consists of all the Company's assets other than assets allocated to
segregated investment accounts of the Company. Net Purchase Payments allocated
to the Guaranteed Interest Account will be credited with interest at rates
guaranteed by the Company for specified periods. (See "Guaranteed Interest
Account" at page .)
MARKET VALUE ADJUSTMENT
A market value adjustment will be imposed on transfers or surrenders
(partial or full) from the Guaranteed Interest Account in most states. A market
value adjustment will not be imposed on contracts issued in the states of
Maryland, Massachusetts, New Jersey, Oklahoma, Oregon, Pennsylvania, South
Carolina, Texas and Washington. The adjustment can be either a positive or
negative adjustment. No adjustment is made for the amount withdrawn or
transferred within 30 days before the end of the accumulation period, nor to
benefits paid as a result of the death of the Owner. The Guaranteed Interest
Account and its market value adjustment feature are described in a separate
prospectus which accompanies this prospectus.
FUND VALUE -- The aggregate dollar value as of any Business Day of all amounts
accumulated under each of the subaccounts, the Guaranteed Interest Account, and
the Loan Account of the Contract. If the term Fund Value is preceded or followed
by the terms subaccount(s), the Guaranteed Interest Account, and the Loan
Account, or any one or more of those terms, Fund Value means only the Fund Value
of the subaccount, the Guaranteed Interest Account or the Loan Account, as the
context requires.
BUSINESS DAY -- Each day that the New York Stock Exchange is open for trading.
2
<PAGE> 10
MINIMUM PURCHASE PAYMENTS
The minimum purchase payment for individuals varies depending upon the
purchaser of the contract and the method of paying the purchase payments. See
"Payment and Allocation of Payment" on page 21.
Additional purchase payments of at least $100 may be made at any time.
However, for certain automatic payment plans, the smallest additional payment is
$50. (See "Issuance of the Contract" at page 21.) The Company may change any of
these requirements in the future.
TRANSFER OF FUND VALUES
You may transfer fund value among the subaccounts and to or from the
Guaranteed Interest Account. Transfers from the Guaranteed Interest Account may
be subject to a Market Value Adjustment for contracts issued in certain states.
Transfers may be made by telephone if the proper form has been completed,
signed, and received by the Company at its Syracuse Operations Center. See
"Transfers", page 26.
CONTRACT LOANS
If your contract permits, you may borrow up to 50% of your Contract's fund
value from the Company. Your contract will be the only security required for the
loan. Contracts issued to Qualified Plans are generally the only Contracts which
permit loans. An amount equal to the amount of the loan is transferred to the
loan account as security for the loan. The loan account is part of the Company's
general account.
We will charge you interest on the amount borrowed. If you do not pay the
interest when due, the amount due will be borrowed from the Contract's fund
value.
SURRENDER
You may surrender all or part of the Contract at any time and receive its
cash value while the annuitant is alive prior to the annuity starting date. We
may impose a surrender charge and market value adjustment (if applicable). The
amounts you receive upon surrender may be subject to income taxes. (See "Federal
Tax Status" at page 44.)
CHARGES AND DEDUCTIONS
The Contract provides for the deduction of various charges and expenses
from the fund value of the Contract. These deductions are summarized in the
table on page 31 and discussed in greater detail beginning on page 31.
NON-QUALIFIED CONTRACTS -- Contracts issued under Non-Qualified Plans.
NON-QUALIFIED PLANS -- Retirement Plans that do not receive favorable tax
treatment under Sections 401, 403, 408, or 457 of the Internal Revenue Code.
RIGHT TO RETURN CONTRACT PROVISION
You have the right to examine the Contract when you receive it. You may
return the Contract for any reason within ten days from the day you receive it.
You will receive a full refund of the purchase payments received by the Company.
During the Right to Return Contract period, purchase payments will be retained
in the Company's general account and will earn interest at a rate not less than
3 1/2% per year.
3
<PAGE> 11
For contracts issued in the State of Washington, an additional 10% penalty
will be added to any purchase payment refund due that is not paid within 30 days
of return of the Contract to the Company. For contracts issued in the State of
Oklahoma, if payment is delayed more than 30 days, the Company will pay interest
on the proceeds at a rate required by Oklahoma law.
DEATH BENEFIT
If the Annuitant (and the Secondary Annuitant, if any) dies before the date
the annuity payments start, the Company will pay a death benefit to the
Beneficiary. Under certain circumstances, an Enhanced Death Benefit may be
payable. If the Annuitant dies after annuity payments start, no death benefit is
payable except as may be payable under the settlement option selected. (See
"Death Benefit" at page and "Enhanced Death Benefit" at page 29.)
ANNUITANT -- The person upon whose continuation of life any annuity payment
depends and to whom annuity payments are made.
SECONDARY ANNUITANT -- The party designated by the Owner to become the
Annuitant, subject to certain conditions, on the death of the Annuitant.
BENEFICIARY -- The party entitled to receive benefits payable at the death of
the Annuitant or (if applicable) the Secondary Annuitant.
4
<PAGE> 12
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY AMERICA VARIABLE ACCOUNT A
TABLE OF FEES FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
CONTRACTOWNER TRANSACTION EXPENSES:
Maximum Deferred Sales Load (Surrender Charge) (as a
percentage of amount surrendered)......................... 7%*
MAXIMUM ANNUAL CONTRACT CHARGE.............................. $50**
MAXIMUM TRANSFER CHARGE..................................... $25**
SEPARATE ACCOUNT ANNUAL EXPENSES:
Maximum Mortality and Expense Risk Fees..................... 1.25%***
Total Separate Account Annual Expenses...................... 1.25%***
</TABLE>
- ---------------
* The Surrender Charge percentage, which reduces to zero as shown in the table
on page 34, is determined by the Contract Year in which the surrender
occurs.
The Surrender Charge may be reduced under certain circumstances which
include reduction in order to guarantee that certain amounts may be received
free of surrender charge. See "Charges against Fund Value -- Free Partial
Surrender Amount" at page 34.
** The Annual Contract Charge is currently $0. However, the Company may in the
future change the amount of the charge to an amount not exceeding $50 per
contract year (except for contracts issued in the states of Maryland,
Massachusetts, New Jersey, Oklahoma, Oregon, Pennsylvania, South Carolina,
Texas and Washington where the charge may not exceed $30). See "Charges
Against Fund Value -- Annual Contract Charge", at page 32. The Transfer
Charge currently is $0. However, the Company has reserved the right to
impose a charge for each transfer, which will not exceed $25 (except for
contracts issued in the states of South Carolina and Texas where it will not
exceed $10). See "Charges Against Fund Value -- Transfer Charge" at page 32.
*** The Mortality and Expense Risk charge is deducted daily equivalent to a
current annual rate of 1.25 percent (and is guaranteed not to exceed a daily
rate equivalent to an annual rate of 1.25%) from the value of the net assets
of the Separate Account.
MONY SERIES FUND, INC.
ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1999
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
GOVERNMENT
INTERMEDIATE TERM LONG TERM SECURITIES MONEY MARKET
BOND PORTFOLIO BOND PORTFOLIO PORTFOLIO PORTFOLIO
----------------- -------------- ---------- ------------
<S> <C> <C> <C> <C>
Management Fees........................... 0.50% 0.50% 0.50% 0.40%
Expenses.................................. 0.07% 0.05% 0.08% 0.04%
----------- ---------- -------- ---------
Total Annual Expenses..................... 0.57% 0.55% 0.58%(1) 0.44%
=========== ========== ======== =========
</TABLE>
- ---------------
(1) Expenses do not include custodial credits. With custodial credits, expenses
would have been 0.57%.
ENTERPRISE ACCUMULATION TRUST
ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1999
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
SMALL HIGH SMALL
COMPANY INTERNATIONAL YIELD COMPANY EQUITY
EQUITY VALUE MANAGED GROWTH BOND GROWTH INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- ------------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees.............. 0.78% 0.80% 0.72% 0.85% 0.60% 1.00% 0.75% 0.75%
Expenses..................... 0.04% 0.04% 0.04% 0.16% 0.09% 0.40% 0.30% 0.09%
----- ----- ----- ----- ----- ----- ----- -----
Total Annual Expenses........ 0.82% 0.84% 0.76% 1.01% 0.69% 1.40%(1) 1.05%(1) 0.84%
===== ===== ===== ===== ===== ===== ===== =====
<CAPTION>
GROWTH
CAPITAL AND
APPRECIATION INCOME
PORTFOLIO PORTFOLIO
------------ ---------
<S> <C> <C>
Management Fees.............. 0.75% 0.75%
Expenses..................... 0.41% 0.19%
----- -----
Total Annual Expenses........ 1.16% 0.94%
===== =====
</TABLE>
- ---------------
(1) Enterprise Capital Management, Inc. has contractually agreed to limit
expenses on these Portfolios to the amount shown. Without the contractual
limitation, the total expenses would have been as follows: Small Company
Growth -- 1.55%; and Equity Income -- 1.20%.
5
<PAGE> 13
ENTERPRISE ACCUMULATION TRUST
ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1999
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
MULTI-CAP
BALANCED PORTFOLIO GROWTH PORTFOLIO
------------------ ----------------
<S> <C> <C>
Management Fees............................................. 0.75% 1.00%
Expenses.................................................... 0.20% 0.40%
----- -----
Total Annual Expenses*...................................... 0.95% 1.40%
===== =====
</TABLE>
- ---------------
* Enterprise Capital Management, Inc. has contractually agreed to limit expenses
on these Portfolios to the amount shown. Without the contractual limitation,
the total expenses would have been as follows: Balanced -- 1.89%; and
Multi-Cap Growth -- 1.52%.
DREYFUS STOCK INDEX FUND
ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1999
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<S> <C>
Management Fees............................................. 0.245%
Expenses.................................................... 0.015%
------
Total Annual Expenses....................................... 0.26%
======
</TABLE>
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1999
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<S> <C>
Management Fees............................................. 0.75%
Expenses.................................................... 0.04%
-----
Total Annual Expenses....................................... 0.79%
=====
</TABLE>
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1999
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
----------------
<S> <C>
Management Fees............................................. 0.58%
Expenses.................................................... 0.09%
Distribution and Service (12b-1) Fee........................ 0.10%
-----
Total Annual Expenses*...................................... 0.77%
=====
</TABLE>
- ---------------
* Expenses do not include reimbursements. With reimbursements, expenses would
have been 0.75%.
6
<PAGE> 14
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1999
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
CONTRAFUND(R)
PORTFOLIO
----------------------
<S> <C>
Management Fees............................................. 0.58%
Expenses.................................................... 0.10%
Distribution and Service (12b-1) Fee........................ 0.10%
-----
Total Annual Expenses*...................................... 0.78%
=====
</TABLE>
- ---------------
* Expenses do not include reimbursements. With reimbursements, expenses would
have been 0.75%.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III
ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1999
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
GROWTH OPPORTUNITIES
PORTFOLIO
--------------------
<S> <C>
Management Fees............................................. 0.58%
Expenses.................................................... 0.11%
Distribution and Service (12b-1) Fee........................ 0.10%
-----
Total Annual Expenses*...................................... 0.79%
=====
</TABLE>
- ---------------
* Expenses do not include reimbursements. With reimbursements, expenses would
have been 0.78%.
JANUS ASPEN SERIES
ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1999
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
AGGRESSIVE CAPITAL WORLDWIDE
GROWTH BALANCED APPRECIATION GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- --------- ------------ ---------
<S> <C> <C> <C> <C>
Management Fees...................................... 0.65% 0.65% 0.65% 0.65%
Expenses............................................. 0.02% 0.02% 0.04% 0.05%
----- ----- ----- -----
Total Annual Expenses*............................... 0.67% 0.67% 0.69% 0.70%
===== ===== ===== =====
</TABLE>
- ---------------
* Expenses are based upon expenses for the fiscal year ended December 31, 1999,
restated to reflect a reduction in management fee.
The purpose of the Table of Fees beginning on page 5 is to assist the Owner in
understanding the various costs and expenses that the Owner will bear, directly
or indirectly. The table reflects the expenses of the separate account as well
as of the Funds. The Funds have provided information relating to their
respective operations. The expenses borne by the Separate Account are explained
under the caption "Charges and Deductions" at page 31 of this Prospectus. The
expenses borne by the Funds are explained in each Fund's prospectus. The table
does not reflect income taxes or penalty taxes which may become payable under
the Internal Revenue Code or premium or other taxes which may be imposed under
state or local laws.
7
<PAGE> 15
EXAMPLE
If you surrender your Contract at the end of the time periods shown below,
you would pay the following expenses on a $1,000 investment, assuming 5% annual
return on assets:
<TABLE>
<CAPTION>
AFTER AFTER AFTER AFTER
SUBACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
MONY Money Market........................................ $82 $113 $145 $200
MONY Intermediate Term Bond.............................. $83 $117 $151 $214
MONY Long Term Bond...................................... $83 $116 $150 $212
MONY Government Securities............................... $83 $117 $151 $214
Enterprise Equity........................................ $86 $124 $164 $240
Enterprise Small Company Value........................... $86 $125 $164 $242
Enterprise Managed....................................... $85 $122 $161 $234
Enterprise International Growth.......................... $88 $129 $173 $260
Enterprise High Yield Bond............................... $85 $120 $157 $226
Enterprise Growth........................................ $86 $125 $164 $242
Enterprise Growth and Income............................. $87 $127 $169 $252
Enterprise Small Company Growth.......................... $91 $143 $197 $312
Enterprise Equity Income................................. $88 $133 $180 $277
Enterprise Capital Appreciation.......................... $89 $134 $180 $275
Enterprise Multi-Cap Growth.............................. $91 $143 $196 $309
Enterprise Balanced...................................... $87 $146 $206 $338
Dreyfus Stock Index...................................... $81 $108 $136 $180
The Dreyfus Socially Responsible Growth.................. $86 $123 $162 $237
Fidelity VIP Growth...................................... $85 $122 $160 $233
Fidelity VIP II Contrafund(R)............................ $85 $122 $160 $233
Fidelity VIP III Growth Opportunities.................... $85 $123 $162 $236
Janus Aspen Series Aggressive Growth..................... $84 $120 $156 $224
Janus Aspen Series Balanced.............................. $84 $120 $156 $224
Janus Aspen Series Capital Appreciation.................. $85 $120 $157 $226
Janus Aspen Series Worldwide Growth...................... $85 $121 $158 $227
</TABLE>
If you annuitize at the end of the time periods shown below, you would pay
the following expenses on a $1,000 investment, assuming 5% annual return on
assets:
<TABLE>
<CAPTION>
AFTER AFTER AFTER AFTER
SUBACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
MONY Money Market........................................ $82 $113 $ 92 $200
MONY Intermediate Term Bond.............................. $83 $117 $ 99 $214
MONY Long Term Bond...................................... $83 $116 $ 97 $212
MONY Government Securities............................... $83 $117 $ 99 $214
Enterprise Equity........................................ $86 $124 $111 $240
Enterprise Small Company Value........................... $86 $125 $112 $242
Enterprise Managed....................................... $85 $122 $108 $234
Enterprise International Growth.......................... $88 $129 $121 $260
Enterprise High Yield Bond............................... $85 $120 $105 $226
Enterprise Growth........................................ $86 $125 $112 $242
Enterprise Growth and Income............................. $87 $127 $117 $252
Enterprise Small Company Growth.......................... $91 $143 $147 $312
Enterprise Equity Income................................. $88 $133 $129 $277
Enterprise Capital Appreciation.......................... $89 $134 $129 $275
Enterprise Multi-Cap Growth.............................. $91 $143 $145 $309
</TABLE>
8
<PAGE> 16
<TABLE>
<CAPTION>
AFTER AFTER AFTER AFTER
SUBACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
Enterprise Balanced...................................... $87 $146 $156 $338
Dreyfus Stock Index...................................... $81 $108 $ 82 $180
The Dreyfus Socially Responsible Growth.................. $86 $123 $110 $237
Fidelity VIP Growth...................................... $85 $122 $108 $233
Fidelity VIP II Contrafund(R)............................ $85 $122 $108 $233
Fidelity VIP III Growth Opportunities.................... $85 $123 $109 $236
Janus Aspen Series Aggressive Growth..................... $84 $120 $104 $224
Janus Aspen Series Balanced.............................. $84 $120 $104 $224
Janus Aspen Series Capital Appreciation.................. $85 $120 $105 $226
Janus Aspen Series Worldwide Growth...................... $85 $121 $105 $227
</TABLE>
If you do not surrender your Contract at the end of the time periods shown
below, you would pay the following expenses on a $1,000 investment, assuming 5%
annual return on assets:
<TABLE>
<CAPTION>
AFTER AFTER AFTER AFTER
SUBACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
MONY Money Market........................................ $17 $53 $ 92 $200
MONY Intermediate Term Bond.............................. $18 $57 $ 99 $214
MONY Long Term Bond...................................... $18 $57 $ 97 $212
MONY Government Securities............................... $18 $57 $ 99 $214
Enterprise Equity........................................ $21 $65 $111 $240
Enterprise Small Company Value........................... $21 $65 $112 $242
Enterprise Managed....................................... $20 $63 $108 $234
Enterprise International Growth.......................... $23 $71 $121 $260
Enterprise High Yield Bond............................... $20 $61 $105 $226
Enterprise Growth........................................ $21 $65 $112 $242
Enterprise Growth and Income............................. $22 $69 $117 $252
Enterprise Small Company Growth.......................... $27 $85 $147 $312
Enterprise Equity Income................................. $23 $75 $129 $277
Enterprise Capital Appreciation.......................... $24 $75 $129 $275
Enterprise Multi-Cap Growth.............................. $27 $85 $145 $309
Enterprise Balanced...................................... $22 $88 $156 $338
Dreyfus Stock Index...................................... $15 $48 $ 82 $180
The Dreyfus Socially Responsible Growth.................. $21 $64 $110 $237
Fidelity VIP Growth...................................... $20 $63 $108 $233
Fidelity VIP II Contrafund(R)............................ $20 $63 $108 $233
Fidelity VIP III Growth Opportunities.................... $21 $64 $109 $236
Janus Aspen Series Aggressive Growth..................... $19 $60 $104 $224
Janus Aspen Series Balanced.............................. $19 $60 $104 $224
Janus Aspen Series Capital Appreciation.................. $20 $61 $105 $226
Janus Aspen Series Worldwide Growth...................... $20 $61 $105 $227
</TABLE>
THE EXAMPLES ABOVE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES, AND ACTUAL EXPENSES MAY BE GREATER OR LESSER THAN THOSE SHOWN.
ALL VARIABLE ACCOUNT EXPENSES AS WELL AS PORTFOLIO COMPANY (THE FUNDS) EXPENSES,
ARE REFLECTED IN THE EXAMPLES. EXPENSE REIMBURSEMENTS ARE REFLECTED ONLY IN THE
YEARS WHERE THERE IS A CONTRACTUAL OBLIGATION IN EFFECT. NOT REFLECTED IN THE
EXAMPLES WHICH ASSUME SURRENDER AT THE, END OF EACH TIME PERIOD ARE INCOME TAXES
AND PENALTY TAXES WHICH MAY BECOME PAYABLE UNDER THE INTERNAL REVENUE CODE OR
PREMIUM OR OTHER TAXES WHICH MAY BE IMPOSED UNDER STATE OR LOCAL LAWS.
9
<PAGE> 17
CONDENSED FINANCIAL INFORMATION
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY AMERICA VARIABLE ACCOUNT A
ACCUMULATION UNIT VALUES
<TABLE>
<CAPTION>
UNIT VALUE
--------------------------------
DEC. 31, DEC. 31,
SUBACCOUNT 1999 1998 INCEPTION
- ---------- -------- -------- ---------
<S> <C> <C> <C>
MONY Money Market....................................... $10.40 $10.03 $10.00
MONY Intermediate Bond.................................. 10.00 9.90 10.00
MONY Long Term Bond..................................... 9.94 9.07 10.00
MONY Government Securities.............................. 9.98 9.92 10.00
Enterprise Equity....................................... 9.98 11.39 10.00
Enterprise Small Company Value.......................... 10.56 12.94 10.00
Enterprise Managed...................................... 9.97 10.75 10.00
Enterprise International Growth......................... 10.55 14.82 10.00
Enterprise High Yield Bond.............................. 9.99 10.25 10.00
Enterprise Growth....................................... 10.53 12.94 10.00
Enterprise Growth and Income............................ 10.19 12.13 10.00
Enterprise Small Company Growth......................... 10.87 16.69 10.00
Enterprise Equity Income................................ 10.25 10.70 10.00
Enterprise Capital Appreciation......................... 11.02 16.92 10.00
Enterprise Multi-Cap Growth............................. -- 29.10 10.00
Enterprise Balanced..................................... -- 10.49 10.00
Dreyfus Stock Index..................................... -- 10.66 10.00
The Dreyfus Socially Responsible Growth................. -- 11.59 10.00
Fidelity VIP Growth..................................... -- 11.42 10.00
Fidelity VIP II Contrafund.............................. -- 10.99 10.00
Fidelity VIII Growth Opportunities...................... -- 9.82 10.00
Janus Aspen Series Aggressive Growth.................... -- 16.22 10.00
Janus Aspen Series Balanced............................. -- 11.00 10.00
Janus Aspen Series Capital Appreciation................. -- 12.89 10.00
Janus Aspen Series Worldwide Growth..................... -- 13.91 10.00
</TABLE>
<TABLE>
<CAPTION>
UNITS OUTSTANDING
----------------------
DEC. 31, DEC. 31,
SUBACCOUNT 1999 1998
- ---------- ---------- --------
<S> <C> <C>
MONY Money Market........................................... 7,761,160 142,487
MONY Intermediate Bond...................................... 913,085 24,535
MONY Long Term Bond......................................... 1,406,502 39,054
MONY Government Securities.................................. 1,488,308 54,777
Enterprise Equity........................................... 2,348,518 64,500
Enterprise Small Company Value.............................. 3,513,450 36,198
Enterprise Managed.......................................... 11,932,847 215,756
Enterprise International Growth............................. 1,074,763 15,811
Enterprise High Yield Bond.................................. 1,520,029 24,732
Enterprise Growth........................................... 16,952,783 154,728
Enterprise Growth and Income................................ 7,122,762 28,883
Enterprise Small Company Growth............................. 1,281,793 17,887
Enterprise Equity Income.................................... 2,472,972 19,409
</TABLE>
10
<PAGE> 18
<TABLE>
<CAPTION>
UNITS OUTSTANDING
----------------------
DEC. 31, DEC. 31,
SUBACCOUNT 1999 1998
- ---------- ---------- --------
<S> <C> <C>
Enterprise Capital Appreciation............................. 1,802,006 20,360
Enterprise Multi-Cap Growth................................. 1,605,055 --
Enterprise Balanced......................................... 917,822 --
Dreyfus Stock Index......................................... 4,223,029 --
The Dreyfus Socially Responsible Growth..................... 529,031 --
Fidelity VIP Growth......................................... 1,948,202 --
Fidelity VIP II Contrafund.................................. 2,355,687 --
Fidelity VIII Growth Opportunities.......................... 913,852 --
Janus Aspen Series Aggressive Growth........................ 2,153,830 --
Janus Aspen Series Balanced................................. 1,933,982 --
Janus Aspen Series Capital Appreciation..................... 2,955,486 --
Janus Aspen Series Worldwide Growth......................... 1,775,017 --
</TABLE>
11
<PAGE> 19
The following chart may help you understand how the contract works:
[MONY LIFE INSURANCE FLOW CHART]
12
<PAGE> 20
DETAILED INFORMATION ABOUT THE COMPANY
AND MONY AMERICA VARIABLE ACCOUNT A
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY Life Insurance Company of America issues the policy. In this
prospectus MONY Life Insurance Company of America is called the "Company". The
Company is a stock life insurance company organized in the State of Arizona. The
Company is currently licensed to sell life insurance and annuities in 49 states
(not including New York), the District of Columbia, Puerto Rico, and the U.S.
Virgin Islands.
The Company is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). The principal offices of both MONY and the Company are located at 1740
Broadway, New York, New York 10019. MONY was organized as a mutual life
insurance company under the laws of the State of New York in 1842 as The Mutual
Life Insurance Company of New York. In 1998, The Mutual Life Insurance Company
of New York converted to a stock company through demutualization and was renamed
MONY Life Insurance Company. The demutualization did not have any material
effect on the obligations of the Company under the Contracts or on MONY America
Variable Account A or the Contracts.
At August 16, 1999, the rating assigned to the Company by A.M. Best
Company, Inc., an independent insurance company rating organization, was A
(Excellent). This rating is based upon an analysis of financial condition and
operating performance. The A.M. Best rating of the Company should be considered
only as bearing on the ability of the Company to meet its obligations under the
policies.
YEAR 2000 ISSUE
State of Readiness
The Company has a service agreement with MONY whereby MONY provides
services and equipment including computer and information systems to the Company
to conduct its business.
In 1996, the Company in conjunction with MONY and affiliates (hereafter
collectively referred to as "MONY and its subsidiaries") initiated a formal Year
2000 Project to resolve the Year 2000 issue. The scope of the Project was
identified, and funding was established.
The Company, in conjunction with MONY and affiliates, successfully
completed its Year 2000 Project (the "Project") to ensure Year 2000 readiness.
The Company developed and implemented an enterprise-wide plan to prepare for the
Year 2000 issue by ensuring compliance of all applications, operating systems
and hardware on mainframe, PC and local area network ("LAN") platforms; ensuring
the compliance of voice and data network software and hardware; addressing
issues related to non-IT systems in buildings, facilities and equipment which
may contain date logic in embedded chips; and addressing the compliance of key
vendors and other third parties.
The total cost of the Project was $2.4 million. The Company does not expect
to incur any material future costs on the Project.
The Company has not experienced any material (or significant) Year 2000
related problems post-December 31, 1999 with its operations or with any external
parties with which business is conducted. Based on this experience and the
amount of work and testing the Company has previously performed, the Company
believes the likelihood of a Year 2000 issue that would have a material effect
on the Company's financial position and results of its operations continues to
be remote as the Company performs month-end, leap year, quarter-end, and
year-end processing. However, there is still the possibility that future Year
2000 related failures in the Company's systems or equipment and/or failure of
external parties to achieve Year 2000 compliance could have a material adverse
effect on the Company's financial position and results of its operations.
13
<PAGE> 21
MONY AMERICA VARIABLE ACCOUNT A
MONY America Variable Account A is a separate investment account of the
Company. Presently, only purchase payments for individual flexible payment
variable annuity contracts are permitted to be allocated to MONY America
Variable Account A. The assets in MONY America Variable Account A are kept
separate from the general account assets and other separate accounts of the
Company.
The Company owns the assets in MONY America Variable Account A. The Company
is required to keep assets in MONY America Variable Account A that equal the
total market value of the contract liabilities funded by MONY America Variable
Account A. Realized or unrealized income gains or losses of MONY America
Variable Account A are credited or charged against MONY America Variable Account
A assets without regard to the other income, gains or losses of the Company.
Reserves and other liabilities under the contracts are assets of MONY America
Variable Account A. MONY America Variable Account A assets are not chargeable
with liabilities of the Company's other businesses. All obligations under the
contract are general corporate obligations of the Company. The Company may
accumulate in MONY America Variable Account A proceeds from various contract
charges applicable to those assets. From time to time, any such additional
assets may be transferred in cash to the Company's General Account.
MONY America Variable Account A was authorized by the Board of Directors of
the Company and established under Arizona law on March 27, 1987. MONY America
Variable Account A is registered with the Securities and Exchange Commission
("SEC") under the Investment Company Act of 1940 (the "1940 Act") as a unit
investment trust. A unit investment trust is a type of investment company. This
does not involve any supervision by the SEC or the management or investment
policies or practices of MONY America Variable Account A. For state law
purposes, MONY America Variable Account A is treated as a part or division of
the Company.
MONY America Variable Account A is divided into subdivisions called
subaccounts. Each subaccount invests only in shares of a designated portfolio of
the Funds. For example, the Long Term Bond Subaccount invests solely in shares
of the MONY Series Fund, Inc. Long Term Bond Portfolio. These portfolios serve
only as the underlying investment for variable annuity and variable life
insurance contracts issued through separate accounts of the Company or other
life insurance companies. The portfolios may also be available to certain
pension accounts. The portfolios are not available directly to individual
investors. In the future, the Company may establish additional subaccounts of
MONY America Variable Account A. Future subaccounts may invest in other
portfolios of the Funds or in other securities.
The following table lists the subaccounts of MONY America Variable Account
A that are available to you, their respective investment objectives, and which
Fund portfolio shares are purchased:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
MONY MONEY MARKET SUBACCOUNT Seeks to maximize current income
consistent with preservation of capital
This subaccount purchases shares of the and maintenance of liquidity by investing
MONY Series Fund, Inc. Money Market primarily in high quality, short-term
Portfolio. money market instruments.
--------------------------------------------------------------------------------------------
MONY GOVERNMENT SECURITIES SUBACCOUNT Seeks to maximize income and capital
appreciation by investing in bonds, notes
This subaccount purchases shares of the and other obligations either issued or
MONY Series Fund, Inc. Government guaranteed by the U.S. Government, its
Securities Portfolio. agencies or instrumentalities, together
having a weighted average maturity of
between 4 to 8 years.
--------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 22
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
MONY INTERMEDIATE TERM BOND SUBACCOUNT Seeks to maximize income and capital
appreciation over the intermediate term by
This subaccount purchases shares of the investing in highly rated fixed income
MONY Series Fund, Inc. Intermediate Term securities issued by a diverse mix of
Bond Portfolio. corporations, the U.S. Government and its
agencies or instrumentalities, as well as
mortgage-backed and asset-backed
securities together having a
dollar-weighted average maturity of
between 4 and 8 years.
--------------------------------------------------------------------------------------------
MONY LONG TERM BOND SUBACCOUNT Seeks to maximize income and capital
appreciation over the longer term by
This subaccount purchases shares of the investing in highly-rated fixed income
MONY Series Fund, Inc. Long Term Bond securities issued by a diverse mix of
Portfolio. corporations, the U.S. Government and its
agencies or instrumentalities, as well as
mortgage-backed and asset-backed
securities together having a
dollar-weighted average maturity of more
than 8 years.
--------------------------------------------------------------------------------------------
ENTERPRISE EQUITY INCOME SUBACCOUNT Invests in a combination of growth and
income. Seeks to achieve an above average
This subaccount purchases shares of the and consistent total return, primarily
Enterprise Accumulation Trust Equity from investments in dividend paying U.S.
Income Portfolio. common stocks.
--------------------------------------------------------------------------------------------
ENTERPRISE GROWTH AND INCOME SUBACCOUNT Seeks total return through capital
appreciation with income as a secondary
This subaccount purchases shares of the consideration by investing in a broadly
Enterprise Accumulation Trust Growth and diversified group of U.S. common stocks of
Income Portfolio. large capitalization companies.
--------------------------------------------------------------------------------------------
ENTERPRISE GROWTH SUBACCOUNT Seeks capital appreciation, primarily from
investments in U.S. common stocks of large
This subaccount purchases shares of the capitalization companies. Pursues goal by
Enterprise Accumulation Trust Growth investing in companies with long-term
Portfolio. earnings potential, but which are
currently selling at a discount to their
estimated long-term value.
--------------------------------------------------------------------------------------------
ENTERPRISE EQUITY SUBACCOUNT Seeks long-term capital appreciation by
investing primarily in U.S. common stock
This subaccount purchases shares of the of companies that meet the portfolio
Enterprise Accumulation Trust Equity manager's criteria of high return on
Portfolio. investment capital, strong positions
within their industries, sound financial
fundamentals and management committed to
shareholder interests.
--------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE> 23
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
ENTERPRISE CAPITAL APPRECIATION SUBACCOUNT Seeks maximum capital appreciation,
primarily through investment in common
This subaccount purchases shares of the stocks of U.S. companies that demonstrate
Enterprise Accumulation Trust Capital accelerating earnings momentum and
Appreciation Portfolio. consistently strong financial
characteristics.
--------------------------------------------------------------------------------------------
ENTERPRISE MANAGED SUBACCOUNT Seeks growth of capital over time by
investing in a portfolio consisting of
This subaccount purchases shares of the common stocks, bonds and cash equivalents,
Enterprise Accumulation Trust Managed the percentages of which vary over time
Portfolio. based on the investment manager's
assessment of economic and market trends
and its perception of the relative
investment values available from such
types of securities at any given time.
--------------------------------------------------------------------------------------------
ENTERPRISE SMALL COMPANY GROWTH SUBACCOUNT Seeks capital appreciation by investing
primarily in common stocks of small
This subaccount purchases shares of the capitalization companies believed by the
Enterprise Accumulation Trust Small portfolio manager to have an outlook for
Company Growth Portfolio. strong earnings growth and potential for
significant capital appreciation.
--------------------------------------------------------------------------------------------
ENTERPRISE SMALL COMPANY VALUE SUBACCOUNT Seeks maximum capital appreciation by
investing primarily in common stocks of
This subaccount purchases shares of the small capitalization companies that the
Enterprise Accumulation Trust Small portfolio manager believes are
Company Value Portfolio. undervalued -- that is the stock's market
price does not fully reflect the company's
value.
--------------------------------------------------------------------------------------------
ENTERPRISE INTERNATIONAL GROWTH SUBACCOUNT Seeks capital appreciation by investing
primarily in a diversified portfolio of
This subaccount purchases shares of the non-United States equity securities that
Enterprise Accumulation Trust the portfolio manager believes are
International Growth Portfolio. undervalued.
--------------------------------------------------------------------------------------------
ENTERPRISE HIGH YIELD BOND SUBACCOUNT Seeks maximum current income by primarily
investing in high yield, income producing
This subaccount purchases shares of the U.S. corporate bonds rated B3 or better by
Enterprise Accumulation Trust High Yield Moody's Investors Service, Inc., or B- or
Bond Portfolio. better by Standard & Poor's Corporation.
These lower rated bonds are commonly
referred to as "Junk Bonds." Bonds of this
type are considered to be speculative with
regard to the payment of interest and
return of principal. Investment in these
types of securities has special risks and
therefore, may not be suitable for all
investors. Investors should carefully
assess the risks associated with
allocating premium payments to this
subaccount.
</TABLE>
16
<PAGE> 24
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
ENTERPRISE BALANCED SUBACCOUNT Seeks long-term total return. Generally,
between 55% and 75% of its total assets
This subaccount purchases shares of the will be invested in equity securities, and
Enterprise Accumulation Trust Balanced between 45% and 25% in fixed income
Portfolio. securities to provide a stable flow of
income. Allocation will vary based on the
manager's assessment of the return
potential of each asset class.
--------------------------------------------------------------------------------------------
ENTERPRISE MULTI-CAP GROWTH SUBACCOUNT Seeks long-term capital appreciation by
primarily investing in growth stocks.
This subaccount purchases shares of the Companies will tend to fall into one of
Enterprise Accumulation Trust Multi-Cap two categories: companies that offer goods
Growth Portfolio. or services to a rapidly expanding
marketplace or companies experiencing a
major change that is expected to produce
advantageous results.
--------------------------------------------------------------------------------------------
DREYFUS STOCK INDEX SUBACCOUNT Seeks to match the total return of the
Standard & Poor's 500 Composite Stock
This subaccount purchases shares of the Price Index. To pursue this goal, the fund
Dreyfus Stock Index Fund. generally invests in all 500 stocks in the
S&P 500 in proportion to their weighting
in the index.
--------------------------------------------------------------------------------------------
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH Seeks to provide capital growth, with
SUBACCOUNT current income as a secondary goal. To
pursue these goals, the fund invests
This subaccount purchases shares of The primarily in common stock of companies
Dreyfus Socially Responsible Growth Fund, that, in the opinion of its management,
Inc. meet traditional investment standards and
conduct their business in a manner that
contributes to the enhancement of the
quality of life in America.
--------------------------------------------------------------------------------------------
FIDELITY VIP GROWTH SUBACCOUNT Seeks to achieve capital appreciation by
investing its assets primarily in common
This subaccount purchases shares of stocks that it believes have above-average
Fidelity Variable Insurance Products Fund growth potential. Tends to be companies
(VIP) Growth Portfolio. with higher than average price/earnings
ratios, and with new products,
technologies, distribution channels or
other opportunities, or with a strong
industry or market position. May invest in
securities of foreign issuers in addition
to those of domestic issuers.
--------------------------------------------------------------------------------------------
FIDELITY VIP II CONTRAFUND(R) SUBACCOUNT Seeks long-term capital appreciation by
investing mainly in equity securities of
This subaccount purchases shares of companies whose value it believes is not
Fidelity Variable Insurance Products Fund fully recognized by the public. Typically,
II (VIP II) Contrafund(R) Portfolio. includes companies in turnaround
situations, companies experiencing
transitory difficulties, and undervalued
companies. May invest in securities of
foreign issuers in addition to those of
domestic issuers.
--------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE> 25
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
FIDELITY VIP III GROWTH OPPORTUNITIES Seeks to provide capital growth by
SUBACCOUNT investing primarily in common stocks. May
also invest in other types of securities,
This subaccount purchases shares of including bonds, which may be
Fidelity Variable Insurance Products Fund lower-quality debt securities. May invest
III (VIP III) Growth Opportunities in securities of foreign issuers in
Portfolio. addition to those of domestic issuers.
--------------------------------------------------------------------------------------------
JANUS ASPEN SERIES AGGRESSIVE GROWTH Seeks long-term growth of capital by
SUBACCOUNT investing primarily in common stocks
selected for their growth potential.
This subaccount purchases shares of Janus Normally, it invests at least 50% of its
Aspen Series Aggressive Growth Portfolio. equity assets in medium-sized companies
with market capitalization's falling
within the range of companies in the S&P
MidCap 400 Index.
--------------------------------------------------------------------------------------------
JANUS ASPEN SERIES BALANCED SUBACCOUNT Seeks long-term capital growth, consistent
with preservation of capital and balanced
This subaccount purchases shares of Janus by current income. Normally invests 40-60%
Aspen Series Balanced Portfolio. of its assets in securities selected
primarily for their growth potential, and
40-60% in securities selected primarily
for their income potential and at least
25% of its assets in fixed-income
securities.
--------------------------------------------------------------------------------------------
JANUS ASPEN SERIES CAPITAL APPRECIATION Seeks long-term growth of capital. It
SUBACCOUNT pursues its objective by investing
primarily in common stocks selected for
This subaccount purchases shares of Janus their growth potential. The portfolio may
Aspen Series Capital Appreciation invest in companies of any size, from
Portfolio. larger, well-established companies to
smaller, emerging growth companies.
--------------------------------------------------------------------------------------------
JANUS ASPEN SERIES WORLDWIDE GROWTH Seeks long-term growth of capital in a
SUBACCOUNT manner consistent with the preservation of
capital. It pursues this objective by
This subaccount purchases shares of Janus investing primarily in common stocks of
Aspen Series Worldwide Growth Portfolio. companies of any size throughout the
world. Normally invests in issuers from at
least five different countries, including
the United States but may at times invest
in fewer than five countries or even in a
single country.
--------------------------------------------------------------------------------------------
</TABLE>
THE FUNDS
Each available subaccount of MONY America Variable Account A will invest
only in the shares of the Funds. The Funds (except for Dreyfus Stock Index Fund,
and Janus Aspen Series Aggressive Growth and Capital Appreciation portfolios)
are diversified, open-end management investment companies. The Dreyfus Stock
Index Fund is a non-diversified, open-end management investment company. The
Funds are registered with the SEC under the Investment Company Act of 1940.
These registrations do not involve supervision by the SEC of the management or
investment practices or policies of the Funds. The Funds, or either of them, may
withdraw from sale any or all the respective portfolios as allowed by applicable
law.
18
<PAGE> 26
MONY SERIES FUND, INC.
Only shares of four of the seven portfolios of MONY Series Fund, Inc. can
be purchased by a subaccount available to you. Each of the portfolios has
different investment objectives and policies. The Company is a registered
investment adviser under the Investment Advisers Act of 1940. The Company, as
investment adviser, currently pays the compensation of the Fund's directors,
officers, and employees who are affiliated in some way with the Company. MONY
Series Fund, Inc. pays for all other expenses including, for example, the
calculation of the net asset value of the portfolios. To carry out its duties as
an investment adviser, the Company has entered into a Services Agreement with
MONY to provide personnel, equipment, facilities and other services. As the
investment adviser to MONY Series Fund, Inc., the Company receives a daily
investment adviser fee for each portfolio (see chart below). Fees are deducted
daily and paid to the Company monthly.
The following table describes the portfolios available and the investment
advisory fees:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
- --------------------------------------------------------------------------------------------
<S> <C>
GOVERNMENT SECURITIES PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets.
- --------------------------------------------------------------------------------------------
LONG TERM BOND PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets.
- --------------------------------------------------------------------------------------------
INTERMEDIATE TERM BOND PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets.
- --------------------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO Annual rate of 0.40% of the first $400
million, 0.35% of the next $400 million, and
0.30% of assets in excess of $800 million of
the portfolio's aggregate average daily net
assets.
- --------------------------------------------------------------------------------------------
</TABLE>
ENTERPRISE ACCUMULATION TRUST
Enterprise Accumulation Trust has a number of portfolios, some of the
shares of which can be purchased by the subaccounts available to you. Enterprise
Capital Management, Inc. ("Enterprise Capital"), a wholly owned subsidiary of
MONY Life Insurance Company, is the investment adviser of Enterprise
Accumulation Trust. Enterprise Capital is responsible for the overall management
of the portfolios, including meeting the investment objectives and policies of
the portfolios. Enterprise Capital contracts with sub-investment advisers to
assist in managing the portfolios. For information about the sub-advisers for
each portfolio, the Enterprise Accumulation Trust prospectus included in this
Prospectus Portfolio. Enterprise Accumulation Trust pays an investment adviser
fee to Enterprise Capital which in turn pays the sub-investment advisers. Fees
are deducted daily and paid to Enterprise Capital on a
19
<PAGE> 27
monthly basis. The sub-investment adviser and daily investment adviser fees and
sub-investment adviser fees for each portfolio are shown in the table below:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
PORTFOLIO AND SUB-INVESTMENT ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EQUITY PORTFOLIO Annual rate of 0.80% of the Annual rate of 0.40% up to
first $400 million, 0.75% of $1 billion, and 0.30% in
TCW Investment Management Company the next $400 million and excess of $1 billion of the
is the sub-investment adviser. 0.70% in excess of $800 portfolio's average daily
million of the portfolio's net assets.
average daily net assets.
- ------------------------------------------------------------------------------------------------------
MANAGED PORTFOLIO Annual rate of 0.80% of the OpCap Advisors' fee for the
first $400 million, 0.75% of assets of the Portfolio it
OpCap Advisors and Sanford C. the next $400 million and manages is an annual rate of
Bernstein & Co., Inc. are the 0.70% in excess of $800 0.40% up to $1 billion,
sub-investment advisers. million of the portfolio's 0.30% from $1 billion to $2
average daily net assets. billion, and 0.25% in excess
of $2 billion of the
portfolio's average daily
net assets. Sanford C.
Bernstein & Co., Inc.'s fee
for the assets of the
Portfolio it manages is an
annual rate of 0.40% up to
$10 million, 0.30% from $10
million to $50 million,
0.20% from $50 million to
$100 million, and 0.10% in
excess of $100 million of
the portfolio's average
daily net assets.
- ------------------------------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO Annual rate of 0.80% of the Annual rate of 0.40% of the
first $400 million, 0.75% of first $1 billion and 0.30%
Gabelli Asset Company is the the next $400 million and in excess of $1 billion of
sub-investment adviser. 0.70% in excess of $800 the portfolio's average
million of the portfolio's daily net assets.
average daily net assets.
- ------------------------------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO Annual rate of 0.60% of the Annual rate of 0.30% of the
portfolio's average daily first $100 million and 0.25%
Caywood-Scholl Capital Management net assets. in excess of $100 million of
is the sub-investment adviser. the portfolio's average
daily net assets.
- ------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
Annual rate of 0.85% of the Annual rate of 0.40% of the
Vontobel USA, Inc. is the portfolio's average daily first $100 million, 0.35% of
sub-investment adviser. net assets. $100 million to $200
million, 0.30% of $200
million to $500 million and
0.25% in excess of $500
million of the portfolio's
average daily net assets.
- ------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE> 28
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
PORTFOLIO AND SUB-INVESTMENT ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
GROWTH PORTFOLIO
Annual rate of 0.75% of the Annual rate of 0.30% of the
Montag & Caldwell, Inc. is the portfolio's average daily first $1 billion and 0.20%
sub-investment adviser. net assets. in excess of $1 billion of
the portfolio's average
daily net assets.
- ------------------------------------------------------------------------------------------------------
GROWTH AND INCOME PORTFOLIO
Annual rate of 0.75% of the Annual rate of 0.30% of the
Retirement System Investors, Inc. portfolio's average daily first $100 million, 0.25% of
is the sub-investment adviser. net assets. the next $100 million, and
0.20% in excess of $200
million of the portfolio's
average daily net assets.
- ------------------------------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
Annual rate of 0.75% of the Annual rate of 0.30% of the
1740 Advisers, Inc. (affiliate of portfolio's average daily first $100 million, 0.25% of
MONY Life Insurance Company of net assets. the next $100 million, and
America) is the sub-investment 0.20% in excess of $200
adviser. million of the portfolio's
average daily net assets.
- ------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
Annual rate of 1.00% of the Annual rate of 0.65% of the
William D. Witter, Inc. is the portfolio's average daily first $50 million, 0.55% of
sub-investment adviser. net assets. the next $50 million and
0.45% in excess of $100
million of the portfolio's
average daily net assets.
- ------------------------------------------------------------------------------------------------------
CAPITAL APPRECIATION PORTFOLIO Annual rate of 0.75% of the Annual rate of 0.45% of the
portfolio's average daily portfolio's average daily
Marsico Capital Management, LLC is net assets. net assets.
the sub-investment adviser.
- ------------------------------------------------------------------------------------------------------
BALANCED PORTFOLIO Annual rate of 0.75% of the Annual rate of 0.30% up to
average daily net assets. $100 million, 0.25% of $100
Montag & Caldwell, Inc. is the million to $200 million and
sub-investment adviser. 0.20% in excess of $200
million of the portfolio's
average daily net assets.
- ------------------------------------------------------------------------------------------------------
MULTI-CAP GROWTH PORTFOLIO Annual rate of 1.00% of the Annual rate of 0.40% of the
average daily net assets. average daily net assets.
Fred Alger Management Inc. is the
sub-investment adviser.
- ------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE> 29
DREYFUS STOCK INDEX FUND
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
The Dreyfus Corporation is the investment adviser of the Dreyfus Stock
Index Fund and The Dreyfus Socially Responsible Growth Fund, Inc. As described
below, The Dreyfus Corporation contracts with sub-investment advisers to assist
in managing the portfolios as noted below. Fees are deducted on a monthly basis.
The daily investment adviser fees and sub-investment adviser fees for each
portfolio are shown in the table below.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
PORTFOLIO AND SUB-INVESTMENT ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
DREYFUS STOCK INDEX FUND Annual rate of 0.245% of the The Dreyfus Corporation pays
fund's average daily net the sub-investment adviser
Mellon Equity Associates is the assets. an annual rate of 0.01% of
sub-investment adviser. the value of the fund's
average daily net assets.
- ------------------------------------------------------------------------------------------------------
THE DREYFUS SOCIALLY RESPONSIBLE Annual rate of 0.75% of the The Dreyfus Corporation pays
GROWTH FUND, INC. fund's average daily net the sub-investment adviser
assets. an annual rate of 0.10% of
NCM Capital Management Group, Inc. the first $32 million, 0.15%
is the sub-investment adviser. in excess of $32 million up
to $150 million, 0.20% in
excess of $150 million up to
$300 million, 0.25% in
excess of $300 million of
the value of the fund's
average daily net assets.
- ------------------------------------------------------------------------------------------------------
</TABLE>
FIDELITY VARIABLE INSURANCE PRODUCTS FUND -- SERVICE CLASS -- GROWTH PORTFOLIO
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II -- SERVICE CLASS -- CONTRAFUND(R)
PORTFOLIO
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III -- SERVICE CLASS -- GROWTH
OPPORTUNITIES PORTFOLIO
Fidelity Management & Research ("FMR") is each fund's investment manager.
As the manager, FMR is responsible for choosing investments for the funds and
handling the funds' business affairs. Affiliates assist FMR with foreign
investments. The daily investment adviser fee for each portfolio is shown in the
table below.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
PORTFOLIO AND SUB-INVESTMENT ADVISERS INVESTMENT ADVISER FEE
- ------------------------------------------------------------------------------------------
<S> <C>
FIDELITY VARIABLE INSURANCE PRODUCTS The fee is calculated by adding a group fee
FUND -- GROWTH PORTFOLIO rate to an individual fee rate, dividing by
twelve, and multiplying the result by the
Fund's average net assets throughout the
month. The group fee rate is based on the
average net assets of all the mutual funds
advised by FMR. This group rate cannot rise
above 0.52% for this Fund, and it drops as
total assets under management increase. The
individual fee rate for this Fund is 0.30%
of the Fund's average net assets.
- ------------------------------------------------------------------------------------------
</TABLE>
22
<PAGE> 30
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
PORTFOLIO AND SUB-INVESTMENT ADVISERS INVESTMENT ADVISER FEE
- ------------------------------------------------------------------------------------------
<S> <C>
FIDELITY VARIABLE INSURANCE PRODUCTS FUND The fee is calculated by adding a group fee
II -- CONTRAFUND(R) PORTFOLIO rate to an individual fee rate, dividing by
twelve, and multiplying the result by the
Fidelity Management & Research (U.K.) Fund's average net assets throughout the
Inc. and Fidelity Management & Research month. The group fee rate is based on the
Far East Inc. are the sub-investment average net assets of all the mutual funds
advisers. advised by FMR. This group rate cannot rise
above 0.52% for this Fund, and it drops as
total assets under management increase. The
individual fee rate for this Fund is 0.30%
of the Fund's average net assets.
- ------------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUND The fee is calculated by adding a group fee
III -- GROWTH OPPORTUNITIES PORTFOLIO rate to an individual fee rate, dividing by
twelve, and multiplying the result by the
Fidelity Management & Research (U.K.) Fund's average net assets throughout the
Inc. and Fidelity Management & Research month. The group fee rate is based on the
Far East Inc. are the sub-investment average net assets of all the mutual funds
advisers. advised by FMR. This group rate cannot rise
above 0.52% for this Fund, and it drops as
total assets under management increase. The
individual fee rate for this Fund is 0.30%
of the Fund's average net assets.
- ------------------------------------------------------------------------------------------
</TABLE>
JANUS ASPEN SERIES
Janus Aspen Series has several portfolios. The shares of four of the
portfolios can be purchased by the subaccounts available to you. Janus Capital
is the investment adviser to each of the portfolios and is responsible for the
day-to-day management of the investment portfolios and other business affairs of
the portfolios. The daily investment adviser fee for each portfolio is shown in
the table below.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
- ------------------------------------------------------------------------------------------
<S> <C>
JANUS ASPEN SERIES AGGRESSIVE GROWTH Annual rate of 0.65% of the portfolio's
PORTFOLIO average daily net assets.
- ------------------------------------------------------------------------------------------
JANUS ASPEN SERIES BALANCED PORTFOLIO Annual rate of 0.65% of the portfolio's
average daily net assets.
- ------------------------------------------------------------------------------------------
JANUS ASPEN SERIES CAPITAL APPRECIATION Annual rate of 0.65% of the portfolio's
PORTFOLIO average daily net assets.
- ------------------------------------------------------------------------------------------
JANUS ASPEN SERIES WORLDWIDE GROWTH Annual rate of 0.65% of the portfolio's
PORTFOLIO average daily net assets.
- ------------------------------------------------------------------------------------------
</TABLE>
The investment objectives of each portfolio (except for the Janus
portfolios) are fundamental and may not be changed without the approval of the
holders of a majority of the outstanding shares of the portfolio affected. For
each of the Funds a majority means the lesser of:
(1) 67% of the portfolio shares represented at a meeting at which more
than 50% of the outstanding portfolio shares are represented, or
(2) more than 50% of the outstanding portfolio shares.
23
<PAGE> 31
The investment objectives of the Janus portfolios are non-fundamental and
may be changed by the Fund's Trustees without a shareholder vote.
Each Owner should periodically review their allocation of purchase payments
and Cash Values among the subaccounts and the guaranteed interest account in
light of their current objectives, the current market conditions, and the risks
of investing in each of the Funds' various portfolios. A full description of the
objectives, policies, restrictions, risks and expenses for each of the Funds'
portfolios can be found in the accompanying prospectus for each of the Funds.
The prospectus for each of the Funds should be read together with this
prospectus.
PURCHASE OF PORTFOLIO SHARES BY MONY AMERICA VARIABLE ACCOUNT A
MONY America Variable Account A will buy and redeem shares from the Funds
at net asset value. Shares will be redeemed when needed for the Company to:
- Collect charges under the Contracts.
- Pay Cash Value on full surrenders of the Contracts.
- Fund partial surrenders.
- Provide benefits under the Contracts.
- Transfer assets from one subaccount to another or between one or more
subaccounts of MONY America Variable Account A and the Guaranteed
Interest Account as requested by Owners.
Any dividend or capital gain distribution received from a portfolio of a Fund
will be:
- Reinvested immediately at net asset value in shares of that portfolio.
- Kept as assets of the corresponding subaccount.
CASH VALUE -- The Contract's Fund Value, less (1) any applicable Surrender
Charge, (2) any outstanding loan, and (3) any applicable market value
adjustment.
The Boards of Directors or Trustees of the Funds monitor the respective
Fund for the existence of material irreconcilable conflict between the interests
of variable annuity Owners and variable life insurance Owners. The Boards shall
report any such conflict to the boards of the Company and its affiliates. The
Boards of Directors of the Company and its affiliates have agreed to be
responsible for reporting any potential or existing conflicts to the Directors
and Trustees of each of the Funds. The Boards of Directors of the Company and
its affiliates will remedy any conflict at their own cost. The remedy may
include establishing a new registered management investment company and
segregating the assets underlying the variable annuity contracts and the
variable life insurance contracts.
GUARANTEED INTEREST ACCOUNT
The Guaranteed Interest Account is a part of the Company's General Account
and consists of all the Company's assets other than assets allocated to
segregated investment accounts of the Company, including MONY America Variable
Account A.
Crediting of Interest. The entire initial purchase payment always earns
interest at a rate not less than 3.5% per year until the end of the Right to
Return Contract period. When the Right to Return Contract period ends, the
entire initial purchase payment plus interest earned is transferred to the
selected subaccounts and Guaranteed Interest Account accumulation periods.
Any Net Purchase Payments you as Owner of the Contract allocate to the
Guaranteed Interest Account will be credited with interest at the rate declared
by the Company. The Company guarantees that the rate credited will not be less
than 3.5% (0.0094%, compounded daily). If you allocate purchase
24
<PAGE> 32
payments (or transfer funds) to the Guaranteed Interest Account, you will choose
between accumulation periods of 3, 5, 7, or 10 years for contracts issued in
most states. The accumulation period is limited to one year for contracts issued
in the states of Maryland, Massachusetts, New Jersey, Oklahoma, Oregon,
Pennsylvania, South Carolina, Texas and Washington. Before the beginning of each
calendar month, the Company will declare interest rates for each period, if
those rates will be higher than the guaranteed rate. Each interest rate declared
by the Company will be applicable for all Net Purchase Payments received or
transfers from MONY America Variable Account A completed within the period
during which it is effective. Purchase payments you allocate to the Accumulation
Period you select will receive this interest rate for the entire period. Within
45 days, but not less than 15 days before the Accumulation Period expires, we
will notify you of the new rates we are then declaring. When the period expires
you can elect an accumulation period of 3, 5, 7, or 10 years or may elect to
transfer the entire amount allocated to the expiring accumulation period to the
separate account. This election is not permitted for contracts issued in the
states of Maryland, New Jersey, Oklahoma, Oregon, South Carolina, Texas and
Washington and the Commonwealths of Massachusetts and Pennsylvania. If you make
no election, the entire amount allocated to the expiring accumulation period
will automatically be held for an accumulation period of the same length. If
that period will extend beyond the maturity date or if that period is no longer
offered, the money will be transferred into the Money Market subaccount.
Surrenders. When you as Contract Owner request Contract Fund Values from
the Guaranteed Interest Account be transferred to MONY America Variable Account
A, surrendered, loaned to you, or used to pay any charge imposed in accordance
with the Contract, you must tell the Company the source by interest rate
accumulation period of amounts you request be transferred, surrendered, loaned,
or used to pay charges.
Market Value Adjustment. Amounts taken from the Guaranteed Interest
Account because of partial and full surrenders or transfers from the Guaranteed
Interest Account are subject to Market Value Adjustment for contracts issued in
most states. This Adjustment is determined by multiplying the amount of the
surrender or transfer from each accumulation period and interest rate by the
following factor:
[(1 + a)/(1 + b)](n-t)/12) - 1
where
a = rate declared at the beginning of accumulation period
b = rate then currently declared for an accumulation period equal to the
time remaining in the guaranteed period, plus 0.25%
n = guaranteed period in months
t = number of elapsed months (or portion thereof) in the guaranteed
period
If an Accumulation Period equal to the time remaining is not issued by the
Company, the rate will be an interpolation between two available Accumulation
Periods. If two such Periods are not available, we will use the rate for the
next available Accumulation Period.
Market Value Adjustments do not apply for partial or full surrenders or
transfers requested within 30 days of the end of the accumulation period, nor to
any benefits paid upon the death of the Annuitant. The Market Value Adjustment
does apply to benefits paid upon death of the Owner. Market Value Adjustments
also do not apply to contracts issued in certain states.
The Guaranteed Interest Account and its Market Value Adjustment feature are
described in greater detail in a separate prospectus attached to this prospectus
for your convenience.
25
<PAGE> 33
DETAILED INFORMATION ABOUT THE POLICY
The Fund Value in MONY America Variable Account A and in the Guaranteed
Interest Account with Market Value Adjustment provide many of the benefits of
your Contract. The information in this section describes the benefits, features,
charges and major provisions of the Contract and the extent to which those
depend upon the Fund Value, particularly the Fund Value in MONY America Variable
Account A. Attached to this prospectus is a prospectus describing the Guaranteed
Interest Account with Market Value Adjustment and its various features, charges
and major provisions.
PAYMENT AND ALLOCATION OF PURCHASE PAYMENTS
Issuance of the Contract
Individuals who want to buy a Contract must:
(1) Complete an application;
(2) Personally deliver the application to
(a) a licensed agent of the Company who is also a registered
representative of the principal underwriter for the Contracts, MONY
Securities Corporation ("MSC"), or
(b) a registered representative of a broker dealer which had been
authorized by MSC to sell the Contract;
(3) Pay the minimum initial purchase payment.
The minimum purchase payment for individuals varies depending upon the use
of the Contract and the method of purchase. The chart below shows the minimum
purchase payment for each situation.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
USE OF CONTRACT OR
METHOD OF MAKING PURCHASE PAYMENT MINIMUM PURCHASE PAYMENT
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Individual retirement accounts and annuities under $2,000
Section 408 of the Code (other than Simplified
Employee Pensions).
- --------------------------------------------------------------------------------------------------------
Non-Qualified Plans. $2,000
- --------------------------------------------------------------------------------------------------------
H.R. 10 plans (self-employed individuals' retirement $600
plans under 401 or 403(c) of the Code), certain
corporate or association retirement plans, Simplified
Employee Pensions under Section 408 and 408A of the
Code.
- --------------------------------------------------------------------------------------------------------
Annuity purchase plans sponsored by certain $600
tax-exempt organizations, governmental entities and
deferred compensation plans under Section 457 of the
Code.
- --------------------------------------------------------------------------------------------------------
Payroll deduction and automatic checking account Annualized rate of $600 (i.e., $600 per year,
withdrawal plans. $300 semiannually, $150 quarterly or $50 per
month)
- --------------------------------------------------------------------------------------------------------
Government Allotment Plans $50 per month
- --------------------------------------------------------------------------------------------------------
</TABLE>
GOVERNMENT ALLOTMENT PLANS -- Payroll deduction plans used for financial
products by government employees.
Additional purchase payments of at least $100 may be made at any time. However,
for certain automatic payment plans, the smallest additional payment is $50.
26
<PAGE> 34
The Company reserves the right to revise its rules from time to time to
specify different minimum Purchase Payments. In addition, the prior approval of
the Company is needed before it will accept a Purchase Payment if, with that
Payment:
(1) Cumulative Purchase Payments made under any one or more Contracts
held by the Contract Owner, less
(2) The amount of any prior partial surrenders and their Surrender
Charges exceed $1,500,000.
The Company reserves the right to reject an application for any reason
permitted by law.
EFFECTIVE DATE -- The date the contract begins as shown in the Contract.
Net Purchase Payments received before the Effective Date will be held in
the Company's General Account and will be credited with interest at not less
than 3.5% per year if:
(1) The Contract is issued by the Company, and
(2) The Contract is accepted by the Owner.
No interest will be paid if the Contract is not issued or if it is declined by
the Owner. Net Purchase Payments will be held in the Company's General Account
if:
(1) The application is approved,
(2) The Contract is issued, and
(3) The Owner accepts the Contract.
These amounts will be held in that Account pending end of the Right to Return
Contract Period. (See page 23.) Interest will be credited on amounts held in the
General Account beginning on the date the amounts are received. Amounts are
received on the day of actual receipt at the Company's Operation Center. The
prospective buyer will be told the reasons for the delay, the initial Purchase
Payment will be returned in full and the application declined if:
(1) The application is not complete when received, and
(2) The application is not completed within 5 days.
The application will not be declined if the prospective buyer consents to the
Company's keeping the Purchase Payment until the application is completed.
Right to Return Contract Provision
The Owner may return the Contract within 10 days of the delivery date. The
Contract must be returned to the Company or any agent of the Company. When the
Company receives the Contract, it will be voided as if it were never in effect.
The amount to be refunded is equal to all purchase payments received by the
Company.
For contracts issued in the State of Washington, an additional 10% penalty
will be added to any purchase payment refund due that is not paid within 30 days
of return of the Contract to the Company. For contracts issued in the State of
Oklahoma, if payment is delayed more than 30 days, the Company will pay interest
on the proceeds at a rate required by Oklahoma law.
Allocation of Payments and Fund Value
Allocation of Payments. On the application, the Owner may allocate Net
Purchase Payments to up to 20 of the 25 subaccount(s) of MONY America Variable
Account A or to the Guaranteed Interest Account. Net Purchase Payments (and any
interest thereon) are held in the General Account if they are
27
<PAGE> 35
received before the end of the Right to Return Contract Period. The Net Purchase
Payments will earn interest at a rate not less than 3.5% per year beginning on
the later of
(1) the Effective Date of the Contract, or
(2) the date the Payment is received at the Company's Operations
Center.
Net Purchase Payments will continue to earn 3.5% annual interest until the
Right to Return Contract Period expires (See "Right to Return Contract
Provision" above.) After the Right to Return Contract Period has expired, the
Contract's Fund Value will automatically be transferred to MONY America Variable
Account A subaccount(s) or to the Guaranteed Interest Account according to the
Owner's percentage allocation.
After the Right to Return Contract Period, under a non-automatic payment
plan, if the Owner does not:
(1) Specify the amount to be allocated among subaccounts, or
(2) Specify the percentage to be allocated among subaccounts, or
(3) The amount or percentage specified is incorrect or incomplete,
the Net Purchase Payments will be allocated under the Owner's most recent
instructions on record with the Company. The amount specified must not be less
than $10.00 and the percentage specified must not be less than 10% of the
Payment. For automatic payment plans, Net Purchase Payments will be allocated
according to the Owner's most recent instructions on record.
The Owner may change the specified allocation formula for future Net
Purchase Payments at any time without charge by sending written notification to
the Company at the Operations Center. Prior allocation instructions may also be
changed by telephone subject to the rules of the Company and its right to
terminate telephone allocation. The Company reserves the right to deny any
telephone allocation request. If all telephone lines are busy (for example,
during periods of substantial market fluctuations), Owners may be unable to
request telephone allocation changes by telephone. In such cases, a Owner would
submit a written request. Any such change, whether made in writing or by
telephone, will be effective when recorded on the records of the Company, in
accordance with the requirements of state insurance departments and the
Investment Company Act of 1940. The Company has adopted rules relating to
changes of allocations by telephone which, among other things, outlines
procedures designed, and which the Company believes are reasonable, to prevent
unauthorized instructions. If these procedures are followed:
(1) The Company shall not be liable for any loss as a result of
following fraudulent telephone instructions; and
(2) The Owner will, therefore, bear the entire risk of loss due to
fraudulent telephone instructions.
A copy of the rules and the Company's form for electing telephone allocation
privileges is available from licensed agents of the Company who are registered
representatives of MSC or by calling 1-800-487-6669. The Company's form must be
signed and received at the Company's Operations Center before telephone
allocation instructions will be accepted.
Net Purchase Payments may be allocated in whole percentages to up to 20 of
the available subaccounts and to the Guaranteed Interest Account. Allocations
must be in whole percentages, and no allocation may be for less than 10% of a
Net Purchase Payment. Allocation percentages must total 100%. Contracts issued
in the states of Maryland, Massachusetts, New Jersey, Oklahoma, Oregon,
Pennsylvania, South Carolina, Texas and Washington must maintain a minimum fund
value balance of $2,500 in the Guaranteed Interest Account when an allocation to
said account is chosen.
When allocated Purchase Payments are received they are credited to
subaccounts of MONY America Variable Account A in the form of Units. The number
of Units is determined by dividing the dollar
28
<PAGE> 36
amount allocated to a particular subaccount by the unit value for that
subaccount for the Business Day on which the Purchase Payment is received.
Calculating Unit Values for Each Subaccount
The unit value of each subaccount on its first Business Day was set at
$10.00. The Company computes the unit value of a subaccount on any later
Business Day as follows:
(1) Calculate the value of the shares of the portfolio belonging to
the subaccount as of the close of business that Business Day. This
calculation is done before giving effect to any policy transactions for
that day, such as purchase payments or surrenders. For this purpose, the
net asset value per share reported to the Company by the managers of the
portfolio is used.
(2) Add the value of any dividends or capital gains distributions
declared and reinvested by the portfolio during the valuation period.
Subtract from this amount a charge for taxes, if any.
(3) Subtract a charge for the mortality and expense risk assumed by
the Company under the policy. If the previous day was not a Business Day,
then the charge is adjusted for the additional days between valuations.
(4) Divide the resulting amount by the number of units held in the
subaccount on the Business Day before the purchase or redemption of any
units on that date.
The unit value of these subaccounts may increase, decrease or remain the
same from Business Day to Business Day. The Unit value depends on the investment
performance of the portfolio of the Fund in which the subaccount invests and any
expenses and charges deducted from MONY America Variable Account A. The Owner
bears the entire investment risk. Owners should periodically review their
allocations of payments and values in light of market conditions and overall
financial planning requirements.
Calculation of Guaranteed Interest Account Fund Value
Net Purchase Payments to be allocated to the Guaranteed Interest Account
will be credited to the accumulation period chosen by the Contract Owner on
(1) the date received at the Operations Center, or
(2) if the day Payments are received is not a Business Day, then on
the next Business Day.
Interest will be credited daily. That part of a Net Purchase Payments allocated
to the Guaranteed Interest Account that exceeds the $250,000 limit imposed by
the Company will be returned to the Owner.
Calculation of Fund Value
The Contract's Fund Value will reflect:
- The investment performance of the selected subaccount(s) of MONY America
Variable Account A.
- Amounts credited (including interest) to the Guaranteed Interest Account.
- Any Net Purchase Payments.
- Any Partial Surrenders.
- All Contract charges (including surrender charges and market value
adjustments) imposed.
There is no guaranteed minimum Fund Value, except to the extent Net Purchase
Payments have been allocated to the Guaranteed Interest Account. Because a
Contract's Fund Value at any future date will be dependent on a number of
variables, it cannot be predetermined.
29
<PAGE> 37
The Fund Value will be computed first on the Effective Date and thereafter
on each Business Day. On the Effective Date, the Contract's Fund Value will be
the Net Purchase Payments received plus any interest credited on those Payments
during the period when Net Purchase Payments are held in the General Account.
(See "Issuance of the Contract" at page 21.)
After allocation of the amounts in the General Account to MONY America
Variable Account A or the Guaranteed Interest Account, on each Business Day, the
Contract's Fund Value will be computed as follows:
(1) Determine the aggregate of the Fund Values attributable to the
Contract in each of the subaccounts on the Business Day. This is done by
multiplying the subaccount's Unit value on that date by the number of
subaccount Units allocated to the Contract;
(2) Add any amount credited to the Guaranteed Interest Account. This
amount is the aggregate of all Net Purchase payments and:
- The addition of any interest credited.
- Addition or subtraction of any amounts transferred.
- Subtraction of any partial surrenders.
- Subtraction of any Contract charges, deductions, and any Market
Value Adjustments
(3) Add the value attributable to any loan account;
(4) Add any Net Purchase Payment received on that Business Day;
(5) Subtract any partial surrender amount and its Surrender Charge
made on that Business Day;
(6) Subtract any Annual Contract Charge and/or transfer charge
deductible on that Business Day.
In computing the Contract's Fund Value, the number of subaccount Units
allocated to the Contracts is determined after any transfers among subaccounts
or between one or more of the subaccounts and the Guaranteed Interest Account.
Any transfer charges are also deducted. However, the computation of the
Contract's Fund Value is done before any other Contract transactions on the
Business Day, such as:
- Receipt of Net Purchase Payments.
- Partial Surrenders.
If a transaction would ordinarily require that the Contract's Fund Value be
computed for a day that is not a Business Day, the next following Business Day
will be used.
Transfers. You may transfer the value of the Contract among the
subaccounts after the Right to Return Contract Period has expired by sending a
proper written request to the Company's Operations Center. Transfers may be made
by telephone if you have proper authorization. See "Allocations of Payments and
Fund Value," page 23. Currently, there are no limitations on the number of
transfers between subaccounts.
A transfer charge is not currently imposed on transfers. (See "Charges
Against Fund Value -- Transfer Charge" at page 32.) However, the Company
reserves the right to impose a charge which will not exceed $25 per transfer
(except for contracts issued in the states of South Carolina and Texas where it
will not exceed $10). If imposed the charge will be deducted from the first
subaccount(s) or the Guaranteed Interest Account you designate funds to be
transferred from. This charge is in addition to the amount transferred. All
transfers in a single request are treated as one transfer transaction. A
transfer resulting from the first reallocation of Fund Value at the end of the
Right to Return Contract Period will not be subject to a transfer charge. Under
present law, transfers are not taxable transactions.
30
<PAGE> 38
CONTRACT YEAR -- Any period of twelve (12) months commencing with the Effective
Date and each Contract Anniversary thereafter.
Transfers Involving the Guaranteed Interest Account. Transfers may be made
from the Guaranteed Interest Account at any time, but, if they are made before
the end of the 3, 5, 7, or 10 year accumulation period there will be a Market
Value Adjustment for contracts issued in most states. If the transfer request is
received within 30 days before the end of the Accumulation Period, no market
value adjustment will apply.
Contracts issued in Maryland, New Jersey, Oklahoma, South Carolina, Texas
and Washington and the Commonwealths of Massachusetts and Pennsylvania must
maintain a minimum Fund Value in the Guaranteed Interest Account of $2,500.
TERMINATION OF THE CONTRACT
The Contract will remain in effect until the earlier of
(1) the date the Contract is surrendered in full,
(2) the date annuity payments start,
(3) the Contract Anniversary on which, after deduction for any Annual
Contract Charge then due, no Fund Value in the subaccounts and the
Guaranteed Interest Account remains in the Contract, or
(4) the date the Death Benefit is payable under the Contract.
CONTRACT ANNIVERSARY -- An anniversary of the Effective Date of the Contract.
EFFECTIVE DATE -- The date shown as the Effective Date of the Contract.
SURRENDERS
The Owner may elect to make a surrender of all or part of the Contract's
value provided it is:
- On or before the annuity payments start, and
- During the lifetime of the Annuitant.
Any such election shall specify the amount of the surrender. The surrender will
be effective on the date a proper written request is received by the Company at
its Operation Center.
The amount of the surrender may be equal to the Contract's Cash Value,
which is its Fund Value less
(1) any applicable Surrender Charge,
(2) any applicable Market Value Adjustment, and
(3) any Outstanding Debt.
The Surrender may also be for a lesser amount (a "partial surrender"). Requested
partial surrenders that would leave a Fund Value of less than $1,000 are treated
and processed as a full surrender. In such case, the entire Cash Value will be
paid to the Owner. For a partial surrender, any Surrender Charge or any
applicable Market Value Adjustment will be in addition to the amount requested
by the Owner.
MARKET VALUE ADJUSTMENT -- An amount added to or deducted from the amount
surrendered or transferred from the Guaranteed Interest Account for Contracts
issued in certain states.
31
<PAGE> 39
ACCUMULATION PERIOD -- Currently 3, 5, 7 and 10 years. The Period starts on the
Business Day that falls on, or next follows the date the purchase payment is
transferred into the Guaranteed Interest Account and ends on the monthly
contract anniversary immediately prior to the last day of that Period. (The
accumulation period is limited to one year for contracts issued in the states of
Maryland, Massachusetts, New Jersey, Oklahoma, Oregon, Pennsylvania, South
Carolina, Texas and Washington.)
A surrender will result in the cancellation of Units and the withdrawal of
amounts credited to the Guaranteed Interest Account accumulation periods as
chosen by the Owner. The aggregate value of the surrender will be equal to the
dollar amount of the surrender plus, if applicable, any Surrender Charge and any
applicable Market Value Adjustment. For a partial surrender, the Company will
cancel Units of the particular subaccounts and withdraw amounts from the
Guaranteed Interest Account accumulation period under the allocation specified
by the Owner. The Unit value will be calculated as of the Business Day the
surrender request is received. Allocations may be by either amount or
percentage. Allocations by percentage must be in whole percentages (totaling
100%). At least 10% of the partial surrender must be allocated to any subaccount
designated by the Owner. The request will not be accepted if
- there is insufficient Fund Value in the Guaranteed Interest Account or a
subaccount to provide for the requested allocation against it, or
- the request is incorrect.
Any surrender charge will be allocated against the Guaranteed Interest
Account and each subaccount in the same proportion that each allocation bears to
the total amount of the partial surrender. Contracts issued in the States of
Maryland, New Jersey, Oklahoma, South Carolina, Texas and Washington and the
Commonwealths of Massachusetts and Pennsylvania must maintain a minimum Fund
Value in the Guaranteed Interest Account of $2,500.
Any cash surrender amount will be paid in accordance with the requirements
of state insurance departments and the Investment Company Act of 1940. However,
the Company may be permitted to postpone such payment under the 1940 Act.
Postponement is currently permissible only for any period during which
(1) the New York Stock Exchange is closed other than customary weekend
and holiday closings, or
(2) trading on the New York Stock Exchange is restricted as determined
by the Securities and Exchange Commission, or
(3) an emergency exists as a result of which disposal of securities
held by the Fund is not reasonable practicable or it is not reasonably
practicable to determine the value of the net assets of the Fund.
Any cash surrender involving payment from amounts credited to the Guaranteed
Interest Account may be postponed, at the option of the Company, for up to 6
months from the date the request for a surrender or proof of death is received
by the Company. Surrenders involving payment from the Guaranteed Interest
Account may in certain circumstances and in certain states also be subject to a
Market Value Adjustment, in addition to a surrender charge. The Owner may elect
to have the amount of a surrender settled under one of the Settlement Options of
the Contract. (See "Annuity Provisions" at page .)
Contracts offered by this prospectus may be issued in connection with
retirement plans meeting the requirements of certain sections of the Internal
Revenue Code. Owners should refer to the terms of their particular retirement
plan for any limitations or restrictions on cash surrenders.
The tax results of a cash surrender should be carefully considered. (See
"Federal Tax Status" at page 44.)
32
<PAGE> 40
LOANS
Qualified Contracts issued under an Internal Revenue Code Section 401(k)
plan will have a loan provision (except in the case of contracts issued in
Vermont). All of the following conditions apply in order for the amount to be
considered a loan, rather than a (taxable) partial surrender:
- The term of the loan must be 5 years or less.
- Repayments are required at least quarterly and must be substantially
level.
- The loan amount is limited to certain dollar amounts as specified by the
IRS.
The Owner (Plan Trustee) must certify that these conditions are satisfied.
In any event, the maximum outstanding loan on a contract is 50% of the Fund
Value of the subaccounts and/or the Guaranteed Interest Account. Loans are not
permitted before the end of the Right to Return Period. In requesting a loan,
the Contract Owner must specify the subaccounts from which Fund Value equal to
the amount of the loan requested will be taken. Loans from the Guaranteed
Interest Account are not taken until Fund Value in the subaccounts is exhausted.
If in order to provide the Contract Owner with the amount of the Loan requested,
Fund Values must be taken from the Guaranteed Interest Account, then the
Contract Owner must specify the Accumulation Periods from which Fund Values
equal to such amount will be taken. If the Contract Owner fails to specify
subaccounts and Accumulation Periods, the request for a loan will be returned to
a Contract Owner.
Values are transferred to a loan account that earns interest at an annual
rate of 3.5%. The annual loan interest rate charged will be 6%.
Loan repayments must be specifically earmarked as loan repayment and will
be allocated to the subaccounts and/or the Guaranteed Interest Account using the
most recent payment allocation on record.
DEATH BENEFIT
DEATH BENEFIT PROVIDED BY THE CONTRACT
The Company will pay a Death Benefit to the Beneficiary if
(1) the Annuitant dies, and
(2) the death occurs before the annuity payments start.
The amount of the Death Benefit will be the greater of
(1) the Fund Value less any Outstanding Debt on the date of the
Annuitant's death;
(2) the Purchase Payments paid, less any partial surrenders and their
Surrender Charges; or
(3) the Enhanced Death Benefit, if any.
If there are funds allocated to the Guaranteed Interest Account at the time of
death, any applicable market value adjustment will be waived. If the death of
the Annuitant occurs on or after the annuity payments start, no Death Benefit
will be payable except as may be provided under the Settlement Option elected.
ENHANCED DEATH BENEFIT
Your Contract provides for an enhanced death benefit.
On the 5th Contract anniversary and each subsequent 5th Contract
anniversary prior to the Annuitant's 71st birthday (prior to the first 5th
anniversary for issue ages greater than 65), the Guaranteed
33
<PAGE> 41
Minimum Death Benefit may be increased. If the Fund Value is greater than the
current Guaranteed Minimum Death Benefit, the Guaranteed Minimum Death Benefit
is equal to the greater of
(1) the Fund Value on the date the new Guaranteed Minimum Death
Benefit is to be calculated, or
(2) the current Guaranteed Minimum Death Benefit proportionately
reduced by any partial surrenders including surrender charges and any
applicable market value adjustments assessed since the last recalculation
of the Guaranteed Minimum Death Benefit.
In no event will the Guaranteed Minimum Death Benefit exceed 200% of the
total purchase payments made, reduced proportionately for
(1) each partial surrender (including surrender charges and applicable
market value adjustments, if applicable), less
(2) any Outstanding Debt.
The proportionate reduction for each partial surrender will be equal to
(1) the amount of that partial surrender (including any surrender
charges and applicable market value adjustment, if applicable, assessed),
divided by
(2) the Fund Value immediately before that partial surrender,
multiplied by
(3) the enhanced death benefit immediately before the surrender.
All subaccounts are eligible for Guaranteed Minimum Death Benefit coverage.
The cost of this enhancement is reflected in the mortality and expense risk
charge. Once the last value is set (prior to the Annuitant's 71st birthday or on
the first 5th anniversary if the Contract is purchased after age 65), it will
not be recalculated.
All other basic death benefits as described in this prospectus continue to
apply. The largest death benefit under any of these provisions will be paid.
ELECTION AND EFFECTIVE DATE OF ELECTION
The Owner may elect to have the Death Benefit of the Contract applied under
one of four Settlement Options to effect an annuity for the Beneficiary as payee
after the death of the Annuitant. The election must take place
(1) during the lifetime of the Annuitant, and
(2) before the annuity payments start.
If no election of a Settlement Option for the Death Benefit is in effect on the
date when proceeds become payable, the Beneficiary may elect
(1) to receive the Death Benefit in the form of a cash payment; or
(2) to have the Death Benefit applied under one of the Settlement
Options.
(See "Settlement Options" at page 36.) If an election by the payee is not
received by the Company within one month following the date proceeds become
payable, the payee will be considered to have elected a cash payment. Either
election described above may be made by filing a written election with the
Company in such form as it may require. Any proper election of a method of
settlement of the Death Benefit by the Owner will become effective on the date
it is signed. However, any election will be subject to any payment made or
action taken by the Company before receipt of the notice at the Company's
Operation Center.
34
<PAGE> 42
Settlement option availability may be restricted by the terms of any
applicable retirement plan and any applicable legislation for any limitations or
restrictions on the election of a method of settlement and payment of the Death
Benefit.
PAYMENT OF DEATH BENEFIT
If the Death Benefit is to be paid in cash to the Beneficiary, payment will
be made within seven (7) days of the date
(1) the election becomes effective, or
(2) the election is considered to become effective, and
(3) due proof of death is received.
The Company may be permitted to postpone such payment under the 1940 Act. If the
death benefit is to be paid in one sum to the Successor Beneficiary, or to the
estate of the deceased Annuitant, payment will be made within seven (7) days of
the date due proof of the death of the Annuitant and the Beneficiary is received
by the Company.
For contracts issued in the State of Washington, the Company will pay
interest on death proceeds paid in a single sum or settled under a Settlement
Option elected after the date of death. Interest will be paid from the date of
death to the date of payment or election of a Settlement Option. The interest
rate will not be less than the rate required by law.
35
<PAGE> 43
CHARGES AND DEDUCTIONS
The following table summarizes the charges and deductions under the
Contract:
- --------------------------------------------------------------------------------
DEDUCTIONS FROM PURCHASE PAYMENTS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Tax Charge Range for State and local -- 0%-3.5%(1).
Federal -- Currently 0% (Company reserves
the right to charge in the future.)
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
- ----------------------------------------------------------------------------------------------
DAILY DEDUCTION FROM VARIABLE ACCOUNT A
- ----------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge Maximum daily rate -- 0.003699%(2)
Annual Rate deducted daily from net assets Maximum Annual rate -- 1.35%(2)
- ----------------------------------------------------------------------------------------------
DEDUCTIONS FROM FUND VALUE
- ----------------------------------------------------------------------------------------------
Annual Contract Charge Maximum of $50 ($30 in certain states)(3)
Current charges listed may be increased to
as much as $50 ($30 in certain states) on
30 days written notice
- ----------------------------------------------------------------------------------------------
Transaction and Other Charges Maximum of $25 ($10 in South Carolina and
Transfer Charge Texas)(3)
- ----------------------------------------------------------------------------------------------
Surrender Charge See page for grading schedule and
Grades from 7% to 0% of Fund Value "Charges and Deductions -- Charges Against
surrendered based on a schedule. Fund Value" for details of how it is
computed.
- ----------------------------------------------------------------------------------------------
</TABLE>
(1) - Company currently assumes responsibility; current charge to Owner 0%.
(2) - Current daily rate is 0.003425% and current annual rate is 1.25%
(3) - Current charge is $0.
The following provides additional details of the charges and deductions under
the Contract.
DEDUCTIONS FROM PURCHASE PAYMENTS
Deductions may be made from purchase payments for premium or similar taxes
prior to allocation of any net purchase payment among the subaccounts.
Currently, the Company makes no deduction, but may do so with respect to future
payments. If the Company is going to make deductions for such tax from future
purchase payments, it will give notice to each affected Owner.
CHARGES AGAINST FUND VALUE
Daily Deduction from MONY America Variable Account A
Mortality and Expense Risk Charge. The Company assumes mortality and
expense risks. A charge for assuming such risks is deducted daily from the net
assets of Variable Account A. This daily charge from MONY America Variable
Account A is deducted at a current daily rate equivalent to an annual rate of
1.25% from the value of the net assets of MONY America Variable Account A. The
rate is guaranteed not to exceed a daily rate equivalent to an annual rate of
1.35% from the value of the net assets of MONY America Variable Account A. Of
the 1.25% charge, .80% is for assuming mortality risks (which is guaranteed no
to exceed .90%), and .45% is for assuming expense risks. The charge is deducted
from MONY America Variable Account A, and therefore the subaccounts, on each
Business Day. These charges will not be deducted from the Guaranteed Interest
Account. Where the previous day (or days) was not a Business Day, the deduction
currently on the next Business Day will be 0.003425% (guaranteed
36
<PAGE> 44
not to exceed 0.003699%) multiplied by the number of days since the last
Business Day. The Company reserves the right to increase the charge up to a
maximum annual rate of 1.35%.
The Company believes that this level of charge is within the range of
industry practice for comparable individual flexible payment variable annuity
contracts.
The mortality risk assumed by the Company is that Annuitants may live for a
longer time than projected. If that occurs, an aggregate amount of annuity
benefits greater than that projected will be payable. In making this projection,
the Company has used the mortality rates from the 1983 Table "a" (discrete
functions without projections for future mortality), with 3 1/2% interest. The
expense risk assumed is that expenses incurred in issuing and administering the
Contracts will exceed the administrative charges provided in the Contracts.
The Company does not expect to make a profit from the mortality and expense
risk charge. However, if the amount of the charge exceeds the amount needed, the
excess will be kept by the Company in its general account. If the amount of the
charge is inadequate, the Company will pay the difference out of its general
account.
DEDUCTIONS FROM FUND VALUE
Annual Contract Charge. The Company has primary responsibility for the
administration of the Contract and MONY America Variable Account A. An annual
Contract charge helps to reimburse the Company for administrative expenses
related to the maintenance of the Contract. Ordinary administrative expenses
expected to be incurred include premium collection, recordkeeping, processing
death benefit claims and surrenders, preparing and mailing reports, and overhead
costs. In addition, the Company expects to incur certain additional
administrative expenses in connection with the issuance of the Contract,
including the review of applications and the establishment of Contract records.
The Company intends to administer the Contract itself through an
arrangement whereby it may buy some administrative services from MONY and such
other sources as may be available.
Currently, there is no annual Contract charge. The Company may in the
future impose a Contract charge. The charge will never, however, exceed $50
(except for contracts issued in the states of Maryland, New Jersey, Oklahoma,
Oregon, South Carolina, Texas and Washington and the Commonwealths of
Massachusetts and Pennsylvania where it will not exceed $30). The Owner will
receive a written notice 30 days in advance of any change in the charge. Any
applicable charge will be assessed once per year on the contract anniversary,
starting on the first contract anniversary.
If imposed, the Annual Contract Charge is deducted from the Fund Value on
each Contract Anniversary before the date annuity payments start.
The amount of the charge will be allocated against the Guaranteed Interest
Account and each subaccount of MONY America Variable Account A in the same
proportion that the Fund Value in those accounts bears to the Fund Value of the
Contract. The Company does not expect to make any profit from the administrative
cost deductions.
Transfer Charge. Contract value may be transferred among the subaccounts
or to or from the Guaranteed Interest Account and one or more of the subaccounts
(including transfers made by telephone, if permitted by the Company). The
Company reserves the right to impose a transfer charge for each transfer
instructed by the Owner in a Contract year. The transfer charge compensates the
Company for the costs of effecting the transfer. The transfer charge will not
exceed $25 (except in for contracts issued in the states of South Carolina and
Texas where is will not exceed $10). The Company does not expect to make a
profit from the transfer charge. If imposed, the transfer charge will be
deducted from the Contract's Fund Value held in the subaccount(s) or from the
Guaranteed Interest Account from which the first transfer is made.
37
<PAGE> 45
Surrender Charge. A contingent deferred sales charge (called a "Surrender
Charge") will be imposed when a full or partial surrender is requested or at the
start of annuity benefits if it is during the first eight years of the contract.
The Surrender Charge will never exceed 7% of total Fund Value. The
Surrender Charge is intended to reimburse the Company for expenses incurred in
distributing the Contract. To the extent such charge is insufficient to cover
all distribution costs, the Company will make up the difference. The Company
will use funds from its General Account, which may contain funds deducted from
Variable Account A to cover mortality and expense risks borne by the Company.
(See "Mortality and Expense Risk Charge" at page 31.)
A Surrender Charge will be computed when a surrender is made and will be
deducted from the Fund Value if
(1) all or a part of the Contract's Cash Value (See "Surrenders" at
page 27) is surrendered, or
(2) the Cash Value is received at maturity when the annuity payments
start.
A Surrender Charge will not be imposed:
(1) Against Fund Value surrendered after the eighth Contract Year.
(2) To the extent necessary to permit the Owner to obtain an amount
equal to the Free Partial Surrender Amount (See "Free Partial Surrender
Amount" at page 34).
(3) If the Contract is surrendered after the third Contract Year and
the surrender proceeds are paid under either Settlement Option 3 or
Settlement Option 3A (See "Settlement Options" at page 36.) The elimination
of a surrender charge in this situation does not apply to contracts issued
in the State of Texas.
In no event will the aggregate Surrender Charge exceed 7% of the Fund Value. The
amount deducted from the Fund Value to cover the surrender charge is not subject
to the surrender charge.
For a partial surrender, the Surrender Charge will be deducted from any
remaining Fund Value, if sufficient. If the Fund Value is not sufficient, it
will be deducted from the amount surrendered. Any Surrender Charge will be
allocated against the Guaranteed Interest Account and each subaccount of
Variable Account A in the same proportion that the amount of the partial
surrender allocated against those accounts bears to the total amount of the
partial surrender.
No Surrender Charge will be deducted from Death Benefits except as
described in "Death Benefit" at page 29.
If an existing variable annuity contract issued by MONY Life Insurance
Company of America is exchanged for this Contract, a separate effective date
will be assigned to this Contract by endorsement for purposes of determining the
amount of any Surrender Charge. The effective date of this Contract with the
endorsement will be the effective date of the existing variable annuity contract
in the following cases:
(1) Only when computing surrender charges; and
(2) Only when the surrender occurs on or after June 1, 2000.
A separate surrender charge effective date does not apply in states where the
endorsement has not been approved and is not available for contracts issued in
the State of Florida.
38
<PAGE> 46
Amount of Surrender Charge. The amount of the Surrender Charge is equal to
a varying percentage of Fund Value during the first 8 Contract years. The
percentage is determined by multiplying the Surrender Charge Percentage for the
Contract Year by the amount of Fund Value requested as follows:
- --------------------------------------------------------------------------------
SURRENDER CHARGE PERCENTAGE TABLE
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
CONTRACT YEAR SURRENDER CHARGE PERCENTAGE
- ----------------------------------------------------------------------------------------------
1 7%
- ----------------------------------------------------------------------------------------------
2 7
- ----------------------------------------------------------------------------------------------
3 6
- ----------------------------------------------------------------------------------------------
4 6
- ----------------------------------------------------------------------------------------------
5 5
- ----------------------------------------------------------------------------------------------
6 4
- ----------------------------------------------------------------------------------------------
7 3
- ----------------------------------------------------------------------------------------------
8 2
- ----------------------------------------------------------------------------------------------
9 (or more) 0
- ----------------------------------------------------------------------------------------------
</TABLE>
The amount of the Surrender Charge is in addition to any applicable Market Value
Adjustment that may be made if the surrender is made from Fund Value in the
Guaranteed Interest Account with Market Value Adjustment. See "Guaranteed
Interest Account -- Surrenders" at page 38 and the prospectus for the Guaranteed
Interest Account with Market Value Adjustment which accompanies this prospectus
for further details.
Free Partial Surrender Amount. The surrender charge may be reduced by
using the Free Partial Surrender Amount provided for in the Contract. The
surrender charge will not be deducted in the following circumstances:
(1) For Qualified Contracts, (other than Contracts issued for IRA and
SEP-IRA), an amount up to the greater of:
(a) $10,000 (but not more than the Contract's Fund Value), or
(b) 10% of the Contract's Fund Value (at the beginning of the
Contract year, except if the surrender is requested during the first
Contract Year, then 10% of the Contract's Fund Value at the time the
surrender is requested)
may be received in each Contract Year without a surrender charge.
(2) For Non-Qualified Contracts (and Contracts issued for IRA and
SEP-IRA), an amount up to 10% of the Fund Value of the Contract may be
received in each Contract Year without a surrender charge.
Contract Fund Value here means the Fund Value at the beginning of the contract
year in the subaccounts (and the Guaranteed Interest Account not the Loan
Account). This reduction of Surrender Charge does not affect any applicable
Market Value Adjustment that may be made if the surrender is made from Fund
Value in the Guaranteed Interest Account with Market Value Adjustment. See
"Guaranteed Interest Account -- Surrenders" at page 38 and the prospectus for
the Guaranteed Interest Account with Market Value Adjustment which accompanies
this prospectus for further details.
39
<PAGE> 47
Taxes
Currently, no charge will be made against MONY America Variable Account A
for federal income taxes. However, the Company may make such a charge in the
future if income or gains within MONY America Variable Account A will incur any
federal income tax liability. Charges for other taxes, if any, attributable to
MONY America Variable Account A may also be made. (See "Federal Tax Status" at
page 44.)
Investment Advisory Fee
Because MONY America Variable Account A purchases shares of the Funds, the
net assets of MONY America Variable Account A will reflect the investment
advisory fee and other expenses incurred by the Funds. See "Table of Fees"
beginning at page 5 for a table which shows the fees and expenses incurred
during 1999 and "The Funds" at pages 16 -19 for a table setting forth the
investment advisory fees.
ANNUITY PROVISIONS
ANNUITY PAYMENTS
Annuity payments under a Contract will begin on the date that is selected
by the Owner when the Contract is applied for. The date chosen for the start of
annuity payments may be
(1) no earlier than the Contract Anniversary after the Annuitant's
10th birthday, and
(2) no later than the Contract Anniversary after the Annuitant's 95th
birthday.
The minimum number of years from the Effective Date to the start of annuity
payments is 10. The date when annuity payments start may be:
(1) Advanced to a date that is not earlier than the 10th Contract
Anniversary.
(2) Deferred from time to time by the Owner by written notice to the
Company.
The date when annuity payments start will be advanced or deferred if:
(1) Notice of the advance or deferral is received by the Company prior
to the current date for the start of annuity payments.
(2) The new start date for annuity payments is a date which is not
later than the Contract Anniversary after the Annuitant's 95th birthday.
A particular retirement plan may contain other restrictions.
When annuity payments start, unless Settlement Option 3 or 3A is elected,
the Contract's Cash Value, less any state taxes which may be imposed upon
annuitization, will be applied to provide an annuity or any other option
previously chosen by the Owner and permitted by the Company. If Settlement
Option 3 or 3A is elected, the Contract's Fund Value (less any state taxes
imposed upon annuitization) will be applied to provide an annuity. A
supplementary contract will be issued. That contract will describe the terms of
the settlement. No payments may be requested under the Contract's surrender
provisions after annuity payments start. No surrender will be permitted except
as may be available under the Settlement Option elected.
For Contracts issued in connection with retirement plans, reference should
be made to the terms of the particular retirement plan for any limitations or
restrictions on when annuity payments start.
40
<PAGE> 48
ELECTION AND CHANGE OF SETTLEMENT OPTION
During the lifetime of the Annuitant and prior to the start of annuity
payments, the Owner may elect
- one or more of the Settlement Options described below, or
- another settlement option as may be agreed to by the Company.
The Owner may also change any election if written notice of the change is
received by the Company at its Operation Center prior to the start of annuity
payments. If no election is in effect when annuity payments start, a lump sum
payment will be considered to have been elected. For contracts issued in the
State of Texas, if no election is in effect when annuity payments start,
Settlement Option 3 with a period certain of 10 years will be considered to have
been elected.
Settlement Options may also be elected by the Owner or the Beneficiary as
provided in the Death Benefit and Surrender sections of this Prospectus. (See
"Death Benefit" at page 29 and "Surrenders" at page 27.)
Where applicable, reference should be made to the terms of a particular
retirement plan and any applicable legislation for any limitations or
restrictions on the options that may be elected.
SETTLEMENT OPTIONS
Proceeds settled under the Settlement Options listed below or otherwise
currently available will not participate in the investment experience of the
Variable Account.
Settlement Option 1 -- Interest Income: Interest on the proceeds at a rate
(not less than 2 3/4 percent per year) set by the Company each year.
Settlement Option 2 -- Income for Specified Period: Fixed monthly payments
for a specified period of time, as elected. The payments may, at the Company's
option, be increased by additional interest each year.
Settlement Option 3 -- Single Life Income: Payments for the life of the
payee and for a period certain. The period certain may be (a) 0 years, 10 years,
or 20 years, or (b) the period required for the total income payments to equal
the proceeds (refund period certain). The amount of the income will be
determined by the Company on the date the proceeds become payable.
Settlement Option 3A -- Joint Life Income: Payments during the joint
lifetime of the payee and one other person, and during the lifetime of the
survivor. The survivor's monthly income may be equal to either (a) the income
payable during the joint lifetime or (b) two-thirds of that income. If a person
for whom this option is chosen dies before the first monthly payment is made,
the survivor will receive proceeds instead under Settlement Option 3, with 10
years certain.
Settlement Option 4 -- Income of Specified Amount: Income, of an amount
chosen, for as long as the proceeds and interest last. The amount chosen to be
received as income in each year may not be less than 10 percent of the proceeds
settled. Interest will be credited annually on the amount remaining unpaid at a
rate determined annually by the Company. This rate will not be less than 2.75
percent per year.
The Contract contains annuity payment rates for Settlement Options 3 and 3A
described in this Prospectus. The rates show, for each $1,000 applied, the
dollar amount of the monthly fixed annuity payment, when this payment is based
on minimum guaranteed interest as described in the Contract.
The annuity payment rates may vary according to the Settlement Option
elected and the age of the payee. The mortality table used in determining the
annuity payment rates for Options 3 and 3A is the 1983 Table "a" (discrete
functions, without projections for future mortality), with 3.5 percent interest.
Under Settlement Option 3, if income based on the period certain elected is
the same as the income provided by another available period or periods certain,
the Company will consider the election to have been made of the longest period
certain.
41
<PAGE> 49
In Qualified Plans, settlement options available to Owners may be
restricted by the terms of the plans.
FREQUENCY OF ANNUITY PAYMENTS
At the time the Settlement Option is chosen, the payee may request that it
be paid:
- Quarterly
- Semiannually
- Annually
If the payee does not request a particular installment payment, the payments
will be made in monthly installments. However, if the net amount available to
apply under any Settlement Option is less than $1,000, the Company has the right
to pay such amount in one lump sum. In addition, if the payments provided for
would be less than $25, the Company shall have the right to change the frequency
of the payments to result in payments of at least $25.
ADDITIONAL PROVISIONS
The Company may require proof of the age of the Annuitant before making any
life annuity payment under the Contract. If the Annuitant's age has been
misstated, the amount payable will be the amount that would have been provided
under the Settlement Option at the correct age. Once life income payments begin,
any underpayments will be made up in one sum with the next annuity payment.
Overpayments will be deducted from the future annuity payments until the total
is repaid.
For contracts issued in the State of Washington, any underpayment by the
Company will be paid in a single sum after the correction of the misstatement.
The Contract must be returned to the Company upon any settlement. Prior to
any settlement of a death claim, proof of the Annuitant's death must be
submitted to the Company.
Where any benefits under the Contract are contingent upon the recipient's
being alive on a given date, the Company require proof satisfactory to it that
such condition has been met.
The Contracts described in this Prospectus contain annuity payment rates
that distinguish between men and women. On July 6, 1983, the Supreme Court held
in Arizona Governing Committee v. Norris that optional annuity benefits provided
under an employer's deferred compensation plan could not, under Title VII of the
Civil Rights Act of 1964, vary between men and women on the basis of sex.
Because of this decision, the annuity payment rates that apply to Contracts
purchased under an employment-related insurance or benefit program may in some
cases not vary on the basis of the Annuitant's sex. Unisex rates to be provided
by the Company will apply for Qualified Plans.
Employers and employee organizations should consider, in consultation with
legal counsel, the impact of Norris, and Title VII, generally and any comparable
state laws that may apply, on any employment-related plan for which a Contract
may be purchased.
GUARANTEED INTEREST ACCOUNT
The Guaranteed Interest Account is a part of the Company's General Account.
It consists of all the Company's assets other than assets allocated to
segregated investment accounts of the Company, including Variable Account A.
Crediting of Interest. The entire initial purchase payment always earns
interest at a rate not less than 3.5% per year until the end of the Right to
Return Contract Period. At such time, it is transferred to the selected
subaccounts and/or accumulation periods of the Guaranteed Interest Account. Net
Purchase Payments allocated by a Owner to the Guaranteed Interest Account will
be credited with interest at the rate declared by the Company for the specified
period selected.
42
<PAGE> 50
Net purchase payments allocated by an Owner to the Guaranteed Interest
Account will be credited with an interest rate declared by the Company. The
interest rate is guaranteed not to be less than 3.5% annually (0.0094%
compounded daily). Contract Owners who allocate purchase payments to or transfer
funds into the Guaranteed Interest Account choose between a 3, 5, 7, or 10 year
accumulation period except in certain states. The accumulation period is limited
to one year for contracts issued in the states of Maryland, Massachusetts, New
Jersey, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas and Washington.
Prior to the beginning of each calendar month, interest rates will be declared
for each period, if more favorable than the guaranteed rate. Each interest rate
declared by the Company applies for all net purchase payments received or
transfers from the Variable Account completed within the period during which it
is effective. The purchase payment is locked in to this interest rate for the
entire duration of the period selected by the Contract Owner. Within 45 days,
but not less than 15 days before the Accumulation Period expires, we will send
notice of the new rates being declared by the Company. When the period expires
the Contract Owner can
(1) elect an accumulation period of 3, 5, 7, or 10 years (except in
certain states where the accumulation period is limited to a one year
period), or
(2) may elect to transfer the entire amount allocated to the expiring
accumulation period to the separate account.
If no election is made, the entire amount allocated to the expiring period will
automatically be held for an accumulation period of the same duration. If that
period will extend beyond the maturity date or if the period is no longer
offered, the money will be transferred into the Money Market subaccount.
Surrenders. The Contract Owner must specify the source by interest rate
accumulation period of amounts withdrawn from the Guaranteed Interest Account as
a result of a:
- Transfer
- Partial surrender
- Loan
- Any charge imposed in accordance with the Contract.
Partial and full surrenders or transfers from the Guaranteed Interest Account
are subject to the Market Value Adjustment for contracts issued in most states.
This adjustment is determined by multiplying the amount of the surrender or
transfer from each accumulation period and interest rate by the following
factor:
[(1+a) / (1+b)] (n-t)/12) - 1
where
a = rate declared at the beginning of accumulation period
b = rate then currently declared for an accumulation period equal to the
time remaining in the guaranteed period, plus 0.25%
n = guaranteed period in months
t = number of elapsed months (or portion thereof) in the guaranteed
period
If an Accumulation Period equal to the time remaining is not issued by the
Company, the rate will be an interpolation between two available Accumulation
Periods. If two such Periods are not available, we will use the rate for the
next available Accumulation Period.
Market Value Adjustments do not apply for partial or full surrenders or
transfers requested within 30 days before the end of the accumulation period,
nor to any benefits paid upon the death of the Annuitant. The Market Value
Adjustment does apply to benefits paid upon death of the Owner. The Market Value
Adjustment does not apply to contracts issued in the states of Maryland,
Massachusetts,
43
<PAGE> 51
New Jersey, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas and
Washington. In addition, contracts issued in these states must maintain a
minimum fund value balance of $2,500 in the Guaranteed Interest Account when an
allocation to said account is chosen.
OTHER PROVISIONS
OWNERSHIP
The Owner has all rights and may receive all benefits under the Contract.
During the lifetime of the Annuitant (and Secondary Annuitant if one has been
named), the Owner is the person so designated in the application, unless:
(1) A change in Owner is requested, or
(2) A Successor Owner becomes the Owner.
The Owner may name a Successor Owner or a new Owner at any time. If the
Owner dies, the Successor Owner, if living, becomes the Owner. Any request for
change must be
(1) made in writing, and
(2) received at the Company.
The change will become effective as of the date the written request is signed. A
new choice of Owner or Successor Owner will apply to any payment made or action
taken by the Company after the request for the change is received. Owners should
consult a competent tax advisor prior to changing Owners.
SUCCESSOR OWNER -- The living person who, at the death of the Owner, becomes the
new Owner.
PROVISION REQUIRED BY SECTION 72(s) OF THE CODE
The Contract under a Non-Qualified Plan will be surrendered as of the date
of the Owner's death if:
(1) The Owner dies
(a) before the start of annuity payments, and
(b) while the Annuitant is living; and
(2) That Owner's spouse is not the Successor Owner as of the date of the
Owner's death.
Satisfactory proof of death must be provided to the Company.
The surrender proceeds may be paid over the life of the Successor Owner if
(1) the Successor Owner is the Beneficiary, and
(2) the Successor Owner chooses that option.
Payments must begin no later than one year after the date of death. If the
Successor Owner is a surviving spouse, then the surviving spouse will be treated
as the new Owner of the Contract. Under such circumstances, it is not necessary
to surrender the Contract. The proceeds must be distributed within 5 years after
the date of death if:
(1) The spouse is not the Successor Owner, and
(2) There is no designated Beneficiary.
44
<PAGE> 52
However, under the terms of the Contract, if the spouse is not the
Successor Owner,
(1) the Contract will be surrendered as of the date of death, and
(2) the proceeds will be paid to the Beneficiary.
This provision shall not extend the term of the Contract beyond the date when
death proceeds become payable.
If the Owner dies on or after annuity payments start, any remaining portion
of the proceeds will be distributed using a method that is at least as quick as
the one used as of the date of the Owner's death.
PROVISION REQUIRED BY SECTION 401(a)(9) OF THE CODE
The entire interest of a Qualified Plan participant under the Contract will
be distributed to the Owner or his/her Designated Beneficiary. Distribution will
occur either by or beginning not later than April 1 of the calendar year
following the calendar year the Qualified Plan Participant attains age 70 1/2.
The interest is distributed
(1) over the life of such Participant, or
(2) the lives of such Participant and Designated Beneficiary.
If (i) distributions have begun, and (ii) the Participant dies before the
Owner's entire interest has been distributed to him/her, the remaining
distributions will be made using a method that is at least as quick as that used
as of the date of the Participant's death. The Contract will be surrendered as
of the Participant's death if
(1) the Participant dies before the start of such distributions, and
(2) there is no designated Beneficiary.
The surrender proceeds must be distributed within 5 years after the date of
death. But, the surrender proceeds may, be paid over the life of any Designated
Beneficiary at his/her option. In such case, distributions will begin not later
than one year after the Participant's death. If the Designated Beneficiary is
the surviving spouse of the Participant, distributions will begin not earlier
than the date on which the Participant would have attained age 70 1/2. If the
surviving spouse dies before distributions to him/her begin, the provisions of
this paragraph shall be applied as if the surviving spouse were the Participant.
If the Plan is an IRA under Section 408 of the Code, the surviving spouse may
elect to forgo distribution and treat the IRA as his/her own plan.
It is the Owner's responsibility to assure that distribution rules imposed
by the Code will be met. Qualified Plan Contracts include those qualifying for
special treatment under Sections 401, 403, 408 and 408A of the Code.
SECONDARY ANNUITANT
Except where the Contract is issued in connection with a Qualified Plan, a
Secondary Annuitant may be designated by the Owner. Such designation may be made
once before annuitization, either
(1) in the application for the Contract, or
(2) after the Contract is issued, by written notice to the Company at
its Operation Center.
The Secondary Annuitant may be deleted by written notice to the Company at its
Operation Center. A designation or deletion of a Secondary Annuitant will take
effect as of the date the written election was
45
<PAGE> 53
signed. The Company, however, must first accept and record the change at its
Operations Center. The change will be subject to
(1) any payment made by the Company, or
(2) action taken by the Company before the receipt of the notice at the
Company's Operation Center.
The Secondary Annuitant will be deleted from the Contract automatically by the
Company as of the Contract Anniversary following the Secondary Annuitant's 95th
birthday.
On the death of the Annuitant, the Secondary Annuitant will become the
Annuitant, under the following conditions:
(1) The death of the Annuitant must have occurred before the Annuity
Commencement Date;
(2) The Secondary Annuitant is living on the date of the Annuitant's
death;
(3) If the Annuitant was the Owner on the date of death, the Successor
Owner must have been the Annuitant's spouse; and
(4) If the date annuity payments start is later than the Contract
Anniversary nearest the Secondary Annuitant's 95th birthday, the date
annuity payments start will be automatically advanced to that Contract
Anniversary.
Effect of Secondary Annuitant's Becoming the Annuitant. If the Secondary
Annuitant becomes the Annuitant, the Death Benefit proceeds will be paid to the
Beneficiary only on the death of the Secondary Annuitant. If the Secondary
Annuitant was the Beneficiary on the Annuitant's death, the Beneficiary will be
automatically changed to the person who was the Successor Beneficiary on the
date of death. If there was no Successor Beneficiary, then the Secondary
Annuitant's executors or administrators, unless the Owner directed otherwise,
will become the Beneficiary. All other rights and benefits under the Contract
will continue in effect during the lifetime of the Secondary Annuitant as if the
Secondary Annuitant were the Annuitant.
ASSIGNMENT
The Company will not be bound by any assignment until the assignment (or a
copy) is received by the Company at its Administrative Office. The Company is
not responsible for determining the validity or effect of any assignment. The
Company shall not be liable for any payment or other settlement made by the
Company before receipt of the assignment.
If the Contract is issued under certain retirement plans, then it may not
be assigned, pledged or otherwise transferred except under conditions allowed
under applicable law.
Because an assignment may be a taxable event, a Owner should consult a
competent tax advisor before assigning the Contract.
CHANGE OF BENEFICIARY
So long as the Contract is in effect, the Beneficiary or Successor
Beneficiary may be changed. A change is made by submitting a written request to
the Company at its Operation Center. The form of the request must be acceptable
to the Company. The Contract need not be returned unless requested by the
Company. The change will take effect as of the date the request is signed,
whether or not the Annuitant is living when the request is received by the
Company. The Company will not, however, be liable for any payment made or action
taken before receipt and acknowledgement of the request at its Operation Center.
46
<PAGE> 54
SUBSTITUTION OF SECURITIES
The Company may substitute shares of another mutual fund for shares of the
Funds already purchased or to be purchased in the future by Contract Purchase
Payments if
(1) the shares of any portfolio of the Funds is no longer available
for investment by MONY America Variable Account A, or
(2) in the judgment of the Company's Board of Directors, further
investment in shares of one or more of the portfolios of the Funds is
inappropriate based on the purposes of the Contract.
A substitution of securities in any subaccount will take place only with prior
approval of the Securities and Exchange Commission and under such requirements
as it may impose.
MODIFICATION OF THE CONTRACTS
Upon notice to the Owner, the Contract may be modified by the Company, but
only if such modification
(1) is necessary to make the Contract or MONY America Variable Account
A comply with any law or regulation issued by a governmental agency to
which the Company is subject, or
(2) is necessary to assure continued qualification of the Contract
under the Internal Revenue Code or other federal or state laws relating to
retirement annuities or annuity contracts, or
(3) is necessary to reflect a change in the operation of MONY America
Variable Account A or the subaccounts or the Guaranteed Interest Account,
or
(4) provides additional Settlement Options or fixed accumulation
options. In the event of any modification, the Company may make appropriate
endorsement in the Contract to reflect such modification.
CHANGE IN OPERATION OF MONY AMERICA VARIABLE ACCOUNT A
MONY America Variable Account A may be operated as a management company
under the 1940 Act or it may be deregistered under the 1940 Act in the event the
registration is no longer required
(1) at the Company's election, and
(2) subject to any necessary vote by persons having the right to give
voting instructions for shares of the Funds held by the subaccounts.
Deregistration of MONY America Variable Account A requires an order by the
Securities and Exchange Commission. If there is a change in the operation of
MONY America Variable Account A under this provision, the Company may make
appropriate endorsement to the Contract to reflect the change and take such
other action as may be necessary and appropriate to effect the change.
VOTING RIGHTS
All of the assets held in the subaccounts of MONY America Variable Account
A will be invested in shares of the designated portfolios of the Funds. The
Company is the legal holder of these shares. As such, it has the right to vote
on the following matters:
(1) Election of the Board of Directors of MONY Series Fund, Inc. or
the Board of Trustees of Enterprise Accumulation Trust;
(2) Certain matters that are required by the 1940 Act to be approved
or ratified by the shareholders of a mutual fund;
(3) Any other matter that may be voted upon at a shareholders'
meeting.
47
<PAGE> 55
To the extent required by law, the Company will vote the shares of each of the
Funds held in MONY America Variable Account A (whether or not attributable to
Owners). The Company will vote at shareholder meetings of each of the Funds
according to the instructions received from Owners. The number of votes will be
determined as of the record date selected by the Board of Directors or the Board
of Trustees of the respective Fund. The Company will furnish Owners with the
proper forms to enable them to give it these instructions. Currently, the
Company may disregard voting instructions under the circumstances described in
the following paragraph.
The Company may, if required by state insurance officials, disregard voting
instructions if those instructions would require shares to be voted to:
(1) Cause a change in the subclassification or investment objectives
or policies of one or more of the portfolios of either or both of the
Funds; or
(2) Approve or disapprove an investment adviser or principal
underwriter for either or both of the Funds.
In addition, the Company itself may disregard voting instructions that would
require the above changes if the Company reasonably disapproves those changes in
accordance with applicable federal regulations. If the Company does disregard
voting instructions, it will advise Owners of that action and its reasons for
the action in the next semiannual report to Owners.
- Each Owner will have the equivalent of one vote per $100 of value
attributable to the Contract held in each subaccount of MONY America
Variable Account A.
- Each owner will have fractional votes for amounts less than $100.
- For voting purposes, this value attributable to the Contract is equal to
the Fund Value.
- The votes are represented as votes per $100 of value in each subaccount
of MONY America Variable Account A. These votes are converted into a
proportionate number of votes in shares of the corresponding portfolio of
each of the Funds.
- Shares for which timely voting instructions are not received from Owners
will be voted by the Company. The Company will vote the shares in the
same proportion as those shares in that subaccount for which instructions
are received.
- Should applicable federal securities laws or regulations permit, the
Company may elect to vote shares of each of the Funds in its own right.
The number of corresponding shares of the portfolio for which the Owner may
give instructions is computed by:
(1) Determining the value attributable to the Contract held in that
subaccount;
(2) Dividing that value by the net asset value of one share in the
designated portfolio of the respective Fund.
Example: Contract value held in subaccount = $540
Net asset value of portfolio shares = $20 per share on the record date
May give instructions on 5.4 votes ($540 divided by $100)
Converts into instructions on 27 shares of the Fund ($540 divided by
$20)
Matters on which Owners may give voting instructions include the following:
(1) Approval of any change in the Investment Advisory Agreement and
Services Agreement, if any, for the portfolio(s) of the Fund(s)
corresponding to the Owner's selected subaccount(s);
(2) Any change in the fundamental investment policies of the
portfolio(s) corresponding to the Owner's selected subaccount(s); and
(3) Any other matter requiring a vote of the shareholders of either of
the Funds.
48
<PAGE> 56
Owners participating in a particular portfolio will vote separately on the
following matters pursuant to the requirements of Rule 18f-2 under the 1940 Act
(1) approval of the Investment Advisory Agreement, or
(2) any change in a portfolio's fundamental investment policies.
DISTRIBUTION OF THE CONTRACTS
MONY Securities Corporation ("MSC"), a New York corporation organized on
September 26, 1969 which is a wholly-owned subsidiary of the Company, will act
as the principal underwriter of the Contract pursuant to an underwriting
agreement with the Company. MSC is a registered broker-dealer under the
Securities Exchange Act of 1934 and is a member of the National Association of
Securities Dealers. The Contract is sold by individuals who are registered
representatives of MSC and who are licensed as life insurance agents for the
Company. The Contract may also be sold through other broker-dealers authorized
by MSC and applicable law to do so. Commissions and other expenses directly
related to the sale of the Contract will not exceed 6.0% of Purchase Payments.
Additional compensation may be paid for persistency, sales quality, and contract
size and for other services not directly related to the sale of the Contract.
Such services include the training of personnel and the production of
promotional material.
FEDERAL TAX STATUS
INTRODUCTION
The Contract described in this prospectus is designed for use by retirement
plans that may or may not qualify for favorable tax treatment under the
provisions of Section 401, 403 (other than 403(b)), 408(b), and 457 of the Code.
The ultimate effect of federal income taxes on
- the value of the Contract's Fund Value,
- annuity payments, and
- economic benefit to the Owner, Annuitant, and the Beneficiary may depend
upon
- the type of retirement plan for which the Contract is purchased, and
- the tax and employment status of the individual concerned.
The following discussion of the treatment of the Contract and of the
Company under the federal income tax laws is general in nature. The discussion
is based on the Company's understanding of current federal income tax laws, and
is not intended as tax advice. Any person considering the purchase of a Contract
should consult a qualified tax adviser. A more detailed description of the
treatment of the Contract under federal income tax laws is contained in the
Statement of Additional Information. THE COMPANY DOES NOT MAKE ANY GUARANTEE
REGARDING ANY TAX STATUS, FEDERAL, STATE, OR LOCAL, OF ANY CONTRACT OR ANY
TRANSACTION INVOLVING THE CONTRACT.
TAX TREATMENT OF THE COMPANY
Under existing federal income tax laws, the income of MONY America Variable
Account A, to the extent that it is applied to increase reserves under the
Contract, is substantially nontaxable to the Company.
TAXATION OF ANNUITIES IN GENERAL
The Contract offered by this prospectus are designed for use in connection
with Qualified Plans and Non-Qualified Plans. All or a portion of the
contributions to such plans will be used to make Purchase Payments under the
Contract. In general, contributions to Qualified Plans and income earned on
contributions to all plans are tax-deferred until distributed to plan
participants or their beneficiaries. Such
49
<PAGE> 57
tax deferral is not, however, available for Non-Qualified Plans if the Owner is
other than a natural person unless the contract is held as an agent for a
natural person. Annuity payments made as retirement distributions under a
Contract are generally taxable to the annuitant as ordinary income except to the
extent of
- Participant contributions (in the case of Qualified Plans), or
- Owner contributions (in the case of Non-Qualified Plans).
Owners, Annuitants, and Beneficiaries should seek qualified advice about the tax
consequences of distributions, withdrawals, and payments under the retirement
plans in connection with which the Contract is purchased.
The Company will withhold and remit to the United States Government and,
where applicable to state governments part of the taxable portion of each
distribution made under a Contract unless the Owner or Annuitant
(1) provides his or her taxpayer identification number to the Company, and
(2) notifies the Company that he or she chooses not to have amounts
withheld.
The Technical and Miscellaneous Revenue Act of 1988 ("TAMRA") has
requirements for determining the amount includable in gross income with respect
to distributions not received as an annuity. Distributions include those
resulting from gratuitous transfers. When computing the distributions for any 12
month period, distributions from all annuity contracts issued by the same
company to the Owner (other than those issued to qualified retirement plans)
will be treated as one annuity contract. The IRS is given power to prescribe
additional rules to prevent avoidance of this rule through serial purchases of
contracts or otherwise. None of these rules is expected to affect tax-benefited
plans.
Effective January 1, 1993, distributions of plan benefits from qualified
retirement plans, other than individual retirement arrangements ("IRAs"),
generally will be subject to mandatory federal income tax withholding unless
they either are:
(1) Part of a series of substantially equal periodic payments (at least
annually) for
(a) the participant's life or life expectancy,
(b) the joint lives or life expectancies of the participant and
his/her beneficiary,
(c) or a period certain of not less than 10 years; or
(2) Required by the Code upon the participant's attainment of age 70 1/2
or death.
Such withholding will apply even if the distribution is rolled over into
another qualified plan, including an IRA. The withholding can be avoided if the
participant's interest is directly transferred by the old plan to another
eligible qualified plan, including an IRA. A direct transfer to the new plan can
be made only in accordance with the terms of the old plan. If withholding is not
avoided, the amount withheld may be subject to income tax and excise tax
penalties.
Under the generation skipping transfer tax, the Company may be liable for
payment of this tax under certain circumstances. In the event that the Company
determines that such liability exists, an amount necessary to pay the generation
skipping transfer tax may be subtracted from the death benefit proceeds.
RETIREMENT PLANS
The Contract described in this Prospectus currently is designed for use
with the following types of retirement plans:
(1) Pension and Profit Sharing Plans established by business employers
and certain associations, as permitted by Sections 401(a) and 401(k) of the
Code, including those purchasers who would have been covered under the
rules governing H.R. 10 (Keogh) Plans;
50
<PAGE> 58
(2) Individual Retirement Annuities permitted by Section 408(b) of the
Code, including Simplified Employee Pensions established by employers
pursuant to Section 408(k);
(3) Deferred compensation plans provided by certain governmental
entities under Section 457; and
(4) Non-Qualified Plans.
Certain Individual Retirement Annuities are not available under contracts
issued in some states.
The tax rules applicable to participants in such retirement plans vary
according to the type of plan and its terms and conditions. Therefore, no
attempt is made here to provide more than general information about the use of
the Contract with the various types of retirement plans. Participants in such
plans as well as Owners, Annuitants, and Beneficiaries are cautioned that the
rights of any person to any benefits under these plans are subject to the terms
and conditions of the plans themselves, regardless of the terms and conditions
of the Contract. The Company will provide purchasers of Contracts used in
connection with Individual Retirement Annuities with such supplementary
information as may be required by the Internal Revenue Service or other
appropriate agency. Any person contemplating the purchase of a Contract should
consult a qualified tax adviser.
PERFORMANCE DATA
We may advertise the performance of the MONY America Variable Account A
subaccounts. We will also report performance to contract owners and may make
performance information available to prospective purchasers. This information
will be presented in compliance with applicable law.
Performance information contained in these advertisements is based upon
historical earnings and is not indicative of future performance. The data for
each subaccount reflects the investment results of the designated portfolio of
the Fund and recurring charges and deductions borne by or imposed on the
portfolio and the subaccount. Set forth below for each subaccount is the manner
in which the data contained in such advertisements will be calculated.
Money Market Subaccount. The performance data for this subaccount will
reflect the "yield" and "effective yield". The "yield" of the subaccount refers
to the income generated by an investment in the Subaccount over the seven day
period stated in the advertisement. This income is "annualized", that is, the
amount of income generated by the investment during that week is assumed to be
generated each week over a 52 week period and is shown as a percentage of the
investment. The "effective yield" is calculated similarly, but, when annualized,
the income earned by an investment in the subaccount is assumed to be
reinvested. The "effective yield" will be slightly higher than the "yield"
because of the compounding effect of this assumed reinvestment.
Subaccounts other than the Money Market Subaccount. The performance data
for these subaccounts will reflect the "yield" and "total return". The "yield"
of each of these subaccounts refers to the income generated by an investment in
that subaccount over the 30 day period stated in the advertisement and is the
result of dividing that income by the value of the subaccount. The value of each
subaccount is the average daily number of Units outstanding multiplied by the
Unit Value on the last day of the period. The "yield" reflects deductions for
all charges, expenses, and fees of both the Funds and the Variable Account other
than the Surrender Charge. "Total return" for each of these subaccounts refers
to the return a Owner would receive during the period indicated if a $1,000
Purchase Payment was made the indicated number of years ago. It reflects
historical investment results less charges and deductions of both the Funds and
MONY America Variable Account A, including any Surrender Charge imposed as a
result of the full Surrender, with the distribution being made in cash rather
than in the form of one of the settlement options, at the close of the period
for which the "total return" data is given. Total return data may also be shown
assuming that the Contract continues in force (i.e., was not surrendered) beyond
the close of the periods indicated, in which case that data would reflect all
charges and deductions of both the Funds and the Variable Account other than the
Surrender Charge. Returns for periods exceeding one year reflect the
51
<PAGE> 59
average annual total return for such period. In addition to the total return
data described above based upon a $1,000 investment, comparable data may also be
shown for an investment equal to the amount of the average purchase payment made
by a purchaser of a Contract during the prior year.
Non-Standardized Performance Data. From time to time, average annual total
return or other performance data may also be advertised in non-standardized
formats. Non-standard performance data will be accompanied by standard
performance data, and the period covered or other non-standard features will be
disclosed.
We may also use non-standard performance in cases where we add new
subaccounts which purchase shares of underlying funds in existence prior to the
formation of such subaccounts. In such cases we will use the historical
performance of the underlying fund with the current expenses of the applicable
subaccount under the Contract.
Performance information for MONY America Variable Account A may be compared
in advertisements, sales literature, and reports to contract owners to various
indices, including, without limitation, the Standard & Poor's 500 Indices and
the Lehman Brothers, Shearson, CDA/Wiesenberger, Russell, Merrill Lynch, and
Wilshire indices, and to various ranking services, including, without
limitation, the Lipper Annuity and Closed End Survey compiled by Lipper
Analytical Services and the VARDS report compiled by Variable Annuity Research
and Data Service and to the Consumer Price Index (a measure for inflation)in
order to provide the reader a basis for comparison of performance. Reports and
promotional literature may also contain the Company's rating or a rating of the
Company's claims paying ability as determined by firms that analyze and rate
insurance companies and by nationally recognized statistical rating
organization.
ADDITIONAL INFORMATION
This Prospectus does not contain all the information set forth in the
registration statement, certain portions of which have been omitted pursuant to
the rules and regulations of the Securities and Exchange Commission. The omitted
information may be obtained from the Commission's principal office in
Washington, D.C., upon payment of the fees prescribed by the Commission.
For further information with respect to the Company and the Contracts
offered by this Prospectus, including the Statement of Additional Information
(which includes financial statements relating to the Company), Owners and
prospective investors may also contact the Company at its address or phone
number set forth on the cover of this Prospectus for requesting such statement.
The Statement of Additional Information is available from the Company without
charge.
LEGAL PROCEEDINGS
There are no legal proceedings to which MONY America Variable Account A is
a party. The Company and the principal underwriter are engaged in various kinds
of routine litigation which, in the opinions of the Company and the principal
underwriter, are not of material importance in relation to the total capital and
surplus of the Company or the principal underwriter.
FINANCIAL STATEMENTS
The financial statements for the Company should be distinguished from the
financial statements of MONY America Variable Account A and should be considered
only as bearing on the ability of the Company to meet its obligations under the
Contract. The financial statements of the Company should not be considered as
bearing on the investment performance of the assets held in MONY America
Variable Account A. The financial statements of the Company and MONY America
Variable Account A are included in the Statement of Additional Information.
52
<PAGE> 60
TABLE OF CONTENTS
OF
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 2000
<TABLE>
<CAPTION>
ITEM PAGE
---- ----
<S> <C>
MONY Life Insurance Company of America...................... 1
Legal Opinion............................................... 1
Independent Accountants..................................... 1
Federal Tax Status.......................................... 2
Performance Data............................................ 5
Financial Statements........................................ F-1
</TABLE>
If you would like to receive a copy of the MONY America Variable Account A
Statement of Additional Information, please return this request to:
MONY Life Insurance Company of America
Mail Drop 8-27
1740 Broadway
New York, New York 10019
Your name _______________________________________________________
Address _________________________________________________________
City _____________________ State ____________ Zip ______________
Please send me a copy of the MONY America Variable Account A Statement of
Additional Information.
Policy Bx-98
Form No. 14432SL (5/00) 333-59717
53
<PAGE> 61
MONY CUSTOM MASTER
STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 2000
INDIVIDUAL FLEXIBLE PAYMENT
VARIABLE ANNUITY CONTRACT
ISSUED BY
MONY AMERICA VARIABLE ACCOUNT A
AND
MONY LIFE INSURANCE COMPANY OF AMERICA
This Statement of Additional Information is not a prospectus, but it
relates to, and should be read in conjunction with, the prospectus dated May 1,
2000 for the Individual Flexible Payment Variable Annuity Contract ("Contract")
issued by MONY Life Insurance Company of America ("Company"). The prospectus is
available, at no charge, by writing the Company at 1740 Broadway, New York, New
York 10019, Mail Drop 8-27 or by calling 1-800-487-6669.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
ITEM PAGE
---- ----
<S> <C>
MONY Life Insurance Company of America...................... 1
Legal Opinion............................................... 1
Independent Accountants..................................... 1
Federal Tax Status.......................................... 2
Performance Data............................................ 5
Financial Statements........................................ F-1
</TABLE>
Form No. 14432SL (5/00) 333-59717
<PAGE> 62
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY Life Insurance Company of America ("Company"), is a stock life
insurance company organized in the state of Arizona. The Company is the
corporate successor of Vico Credit Life Insurance Company, incorporated in
Arizona on March 6, 1969, re-named Vico Life Insurance Company on July 7, 1972,
and re-named Consumers National Life Insurance Company on December 22, 1977. The
Mutual Life Insurance Company of New York purchased Consumers National Life
Insurance Company on December 10, 1981 and changed the corporate name to MONY
Life Insurance Company of America. The Company is currently licensed to sell
life insurance in 49 states (not including New York), the District of Columbia,
the U.S. Virgin Island, and Puerto Rico.
The Company is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). MONY was organized as a mutual life insurance company under the laws
of the state of New York in 1842. MONY converted to a stock life insurance
company in November 1998 through demutualization and assumed its present name at
that time. In addition, MONY became a wholly-owned subsidiary of The MONY Group
Inc at that time. The principal offices of both MONY and the Company are at 1740
Broadway, New York, New York 10019. MONY had consolidated assets at the end of
1999 of approximately $25 billion. As of December 31, 1999, MONY had
approximately $300 million in shares in the Company. MONY intends from time to
time to make additional capital contributions to the Company as needed to enable
it to meet its reserve requirements and expenses in connection with its
business. Generally, MONY is under no obligation to make such contributions, and
its assets do not back the benefits payable under the Contract.
At August 16, 1999, the rating assigned to the Company by A.M. Best
Company, Inc., an independent insurance company rating organization, was A
(Excellent) based upon an analysis of financial condition and operating
performance. At the same date, MONY was rated A on the same basis. The A.M. Best
rating of the Company should be considered only as bearing on the ability of the
Company to meet its obligations under the Contract.
The Company has a service agreement with MONY whereby MONY provides the
Company with such personnel, facilities, etc., as are reasonably necessary for
the conduct of the Company's business. These services are provided on a cost
reimbursement basis. The Company intends to administer the Contract itself
utilizing the services provided by MONY as a part of the Service Agreement.
During 1999, the Company paid MONY $103.5 million, for all services
provided under the Service Agreement.
LEGAL OPINION
Legal matters relating to federal securities laws applicable to the issue
and sale of the Contract and all matters of Arizona law pertaining to the
Contract, including the validity of the Contract and the Company's right to
issue the Contract, have been passed upon by Edward P. Bank, Esq., then Vice
President and Deputy General Counsel, MONY.
INDEPENDENT ACCOUNTANTS
The audited financial statements of the Company and the Variable Account
appearing on the following pages have been audited by PricewaterhouseCoopers
LLP, independent accountants, and are included herein in reliance on the reports
of said firm given on the authority of that firm as experts in accounting and
auditing. PricewaterhouseCoopers LLP's office is located at 1177 Avenue of the
Americas, New York, New York 10036.
(1)
<PAGE> 63
FEDERAL TAX STATUS
INTRODUCTION
The Contract is designed for use to fund retirement plans which may or may
not be Qualified Plans under the provisions of the Internal Revenue Code (the
"Code"). The ultimate effect of federal income taxes on the Contract value, on
annuity payments, and on the economic benefit to the Owner, Annuitant, or
Beneficiary depends on the type of retirement plan for which the Contract is
purchased and upon the tax and employment status of the individual concerned.
The discussion contained herein is general in nature and is not intended as tax
advice.
Each person concerned should consult a competent tax adviser. No attempt is
made to consider any applicable state or other tax laws. Moreover, the
discussion herein is based upon the Company's understanding of current federal
income tax laws as they are currently interpreted. No representation is made
regarding the likelihood of continuation of those current federal income tax
laws or of the current interpretations by the Internal Revenue Service.
TAXATION OF ANNUITIES IN GENERAL
Section 72 of the Code governs taxation of annuities in general. Except in
the case of certain corporate and other non-individual Owners, there are no
income taxes on increases in the value of a Contract until a distribution
occurs, in the form of a full surrender, a partial surrender, a death benefit,
an assignment or gift of the Contract, or as annuity payments.
SURRENDERS, DEATH BENEFITS, ASSIGNMENTS AND GIFTS
An Owner who fully surrenders his or her Contract is taxed on the portion
of the payment that exceeds his or her cost basis in the Contract. For
Non-Qualified Contracts, the cost basis is generally the amount of the Purchase
Payments made for the Contract, and the taxable portion of the surrender payment
is taxed as ordinary income. For Qualified Contracts, the cost basis is
generally zero, except to the extent of non-deductible employee contributions,
and the taxable portion of the surrender payment is generally taxed as ordinary
income subject to special elective 5-year (and, for certain eligible persons,
10-year) income averaging in the case of certain Qualified Contracts. A
Beneficiary entitled to receive a lump sum death benefit upon the death of the
Annuitant is taxed on the portion of the amount that exceeds the Owner's cost
basis in the Contract. If the Beneficiary elects to receive annuity payments
within 60 days of the Annuitant's death, different tax rules apply. (See
"Annuity Payments" below.)
Partial surrenders received under Non-Qualified Contracts prior to
annuitization are first included in gross income to the extent Surrender Value
exceeds Purchase Payments less prior non-taxable distributions, and the balance
is treated as a non-taxable return of principal to the Owner. For partial
surrenders under a Qualified Contract, payments are generally prorated between
taxable income and non-taxable return of investment.
There are special rules for Qualified Plans or contracts involving 85
percent or more employee contributions. Since the cost basis of Qualified
Contracts is generally zero, however, partial surrender amounts will generally
be fully taxed as ordinary income.
An Owner who assigns or pledges a Non-Qualified Contract is treated as if
he or she had received the amount assigned or pledged and thus is subject to
taxation under the rules applicable to surrenders. An Owner who gives away the
Contract (i.e., transfers it without full and adequate consideration) to anyone
other than his or her spouse is treated for income tax purposes as if he or she
had fully surrendered the Contract.
ANNUITY PAYMENTS
The non-taxable portion of each annuity payment is determined by an
"exclusion ratio" formula which establishes the ratio that the cost basis of the
Contract bears to the total expected value of annuity payments for the term of
the annuity. The remaining portion of each payment is taxable. Such taxable
portion is taxed at
(2)
<PAGE> 64
ordinary income rates. For Qualified Contracts, the cost basis is generally
zero. With annuity payments based on life contingencies, the payments will
become fully taxable once the Annuitant lives longer than the life expectancy
used to calculate the non-taxable portion of the prior payments. Conversely, a
tax deduction in the Annuitant's last taxable year, equal to the unrecovered
cost basis, is available if the Annuitant does not live to life expectancy.
PENALTY TAX
Payments received by Owners, Annuitants, and Beneficiaries under both
Qualified and Non-Qualified Contracts may be subject to both ordinary income
taxes and a penalty tax equal to 10 percent of the amount received that is
includable in income. The penalty is not imposed on amounts received: (a) after
the taxpayer attains age 59 1/2; (b) in a series of substantially equal payments
made for life or life expectancy following separation from service; (c) after
the death of the Owner (or, where the Owner is not a human being, the death of
the Annuitant); (d) if the taxpayer is totally disabled; (e) upon early
retirement under the plan after the taxpayer's attainment of age 55; or (f)
which are used for certain medical care expenses. Exceptions (e) and (f) do not
apply to Individual Retirement Accounts and Annuities and Non-Qualified
Contracts. An additional exception for Non-Qualified Contracts is amounts
received as an immediate annuity.
INCOME TAX WITHHOLDING
The Company is required to withhold federal, and, where applicable, state,
income taxes on taxable amounts paid under the Contract unless the recipient
elects not to have withholding apply. The Company will notify recipients of
their right to elect not to have withholding apply.
Effective January 1, 1993, distributions of plan benefits from qualified
retirement plans, other than individual retirement arrangements ("IRAs"),
generally will be subject to mandatory federal income tax withholding unless
they either are:
1. Part of a series of substantially equal periodic payments (at least
annually) for the participant's life or life expectancy, the joint lives or
life expectancies of the participant and his/ her beneficiary, or a period
certain of not less than 10 years, or
2. Required by the Code upon the participant's attainment of age
70 1/2 or death.
Such withholding will apply even if the distribution is rolled over into
another qualified plan, including an IRA. The withholding can be avoided if the
participant's interest is directly transferred by the old plan to another
eligible qualified plan, including an IRA. A direct transfer to the new plan can
be made only in accordance with the terms of the old plan. If withholding is not
avoided, the amount withheld may be subject to income tax and excise tax
penalties.
DIVERSIFICATION STANDARDS
The United States Secretary of the Treasury has the authority to set
standards for diversification of the investments underlying variable annuity
contracts (other than pension plan contracts). The Secretary of the Treasury has
issued certain regulations. Further regulations may be issued. The Fund is
designed to be managed to meet the diversification requirements for the Contract
as those requirements may change from time to time. The Company intends to
satisfy those requirements so that the Contract will be treated as an annuity
contract.
The Secretary of the Treasury has announced that he expects to issue
regulations or Revenue Rulings that will prescribe the circumstances in which an
Owner's control of the investments of a segregated asset account may cause the
Owner, rather than the insurance company, to be treated as the owner of the
assets of the account. The regulations or Revenue Rulings could impose
requirements that are not reflected in the Contract. The Company, however, has
reserved certain rights to alter the Contract and investment alternatives so as
to comply with such regulations or Revenue Rulings. Since the regulations or
Revenue Rulings have not been issued, there can be no assurance as to the
content of such regulations or Revenue Rulings or even
(3)
<PAGE> 65
whether application of the regulations or Revenue Rulings will be prospective.
For these reasons, Owners are urged to consult with their own tax advisers.
QUALIFIED PLANS
The Contract is designed for use with several types of Qualified Plans. The
tax rules applicable to participants in such Qualified Plans vary according to
the type of plan and the terms and conditions of the plan itself. Moreover, many
of these tax rules were changed by the Tax Reform Act of 1986. Therefore, no
attempt is made herein to provide more than general information about the use of
the Contract with the various types of Qualified Plans. Participants under such
Qualified Plans as well as Owners, Annuitants, and Beneficiaries are cautioned
that the rights of any person to any benefits under such Qualified Plans may be
subject to the terms and conditions of the plans themselves, regardless of the
terms and conditions of the Contract issued in connection therewith. Following
are brief descriptions of the various types of Qualified Plans and of the use of
the Contract in connection therewith. Purchasers of the Contract should seek
competent advice concerning the terms and conditions of the particular Qualified
Plan and use of the Contract with that plan.
H.R. 10 PLANS
The Self-Employed Individuals Tax Retirement Act of 1962, as amended, which
is commonly referred to as "H.R. 10," permits self-employed individuals to
establish Qualified Plans for themselves and their employees. The tax
consequences to participants under such plans depend upon the plan itself. In
addition, such plans are limited by law to maximum permissible contributions,
distribution dates, and tax rates applicable to distributions. In order to
establish such a plan, a plan document, usually in prototype form pre-approved
by the Internal Revenue Service, is adopted and implemented by the employer.
INDIVIDUAL RETIREMENT ACCOUNTS AND ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to
individual retirement programs known as "Individual Retirement Accounts" and
"Individual Retirement Annuities." These Individual Retirement Accounts and
Annuities are subject to limitations on the amounts which may be contributed,
the persons who may be eligible, and on the time when distributions may
commence. In addition, distributions from certain types of Qualified Plans may
be placed on a tax-deferred basis into an Individual Retirement Account or
Annuity.
CORPORATE PENSION AND PROFIT-SHARING PLANS
Sections 401(a) and 403(a) of the Code permit corporate employers to
establish various types of retirement plans for employees. Such retirement plans
may permit the purchase of the Contract to provide benefits under the plans.
CERTAIN GOVERNMENTAL ENTITIES
Section 457 of the Code permits certain governmental entities to establish
deferred contribution plans. Such deferred contribution plans may permit the
purchase of the Contract to provide benefits under the plans.
(4)
<PAGE> 66
PERFORMANCE DATA
MONEY MARKET SUBACCOUNT
For the seven-day period ended December 31, 1999, the yield was 4.56% and
the effective yield was 4.67%.
The yield is calculated by dividing the result of subtracting the value of
one Unit at the end of the seven day period ("Seventh Day Value") from the value
of one Unit at the beginning of the seven day period ("First Day Value") by the
First Day Value (the resulting quotient being the "Base Period Return") and
multiplying the Base Period Return by 365 divided by 7 to obtain the annualized
yield.
The effective yield was calculated by compounding the Base Period Return
calculated in accordance with the preceding paragraph, adding 1 to the Base
Period Return, raising that sum to a power equal to 365 divided by 7 and
subtracting 1 from the result.
As the Money Market Subaccount invests only in shares of the Money Market
Portfolio of the Fund, the First Day Value reflects the per share net asset
value of the Money Market Portfolio (which will normally be $1.00) and the
number of shares of the Money Market Portfolio of the Fund held in the Money
Market Subaccount. The Seventh Day Value reflects increases or decreases in the
number of shares of the Money Market Portfolio of the Fund held in the Money
Market Subaccount due to the declaration of dividends (in the form of shares and
including dividends (in the form of shares) on shares received as dividends) of
the net investment income and the daily charges and deductions from the
Subaccount for mortality and expense risks and a deduction for the Annual
Contract Charge imposed on each Contract Anniversary which has been pro-rated to
reflect the shortened 7-day period and allocated to the Money Market Subaccount
in the proportion that the total value of the Money Market Subaccount bore to
the total value of the Variable Account at the end of the period indicated. Net
investment income reflects earnings on investments less expenses of the Fund
including the Investment Advisory Fee (which for calculating the yield and
effective yield quoted above is assumed to be .40 percent, the fee which would
be charged based upon the amount of assets under management on the last day of
the period for which the quoted yield is stated). Not reflected in either the
yield or effective yield are surrender charges, which will not exceed 7% of
total Purchase Payments made in the Contract Year of surrender and the preceding
7 Contract Years.
(5)
<PAGE> 67
SUBACCOUNTS OTHER THAN MONEY MARKET SUBACCOUNT
TOTAL RETURN:
The average annual total return for the Subaccounts other than the Money
Market Subaccount, assuming full surrender of the Contract for cash at the end
of the period, for the periods indicated is shown in the table below. This table
does not reflect the impact of the tax laws, if any, on total return as a result
of the surrender.
MONY AMERICA VARIABLE ACCOUNT A
TOTAL RETURN
(ASSUMING $1,000 PAYMENT AT BEGINNING OF
PERIOD AND SURRENDER AT END OF PERIOD)
<TABLE>
<CAPTION>
FOR THE
FOR THE FOR THE FOR THE PERIOD SINCE
1 YEAR ENDED 5 YEARS ENDED 10 YEARS ENDED INCEPTION THROUGH
SUBACCOUNT DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
---------- ------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Enterprise Equity............... 6.99% 19.99% 15.31% 15.44%
Enterprise Small Company
Value......................... 14.78% 17.07% 15.45% 15.33%
Enterprise Managed.............. 1.07% 19.04% 16.11% 17.20%
Enterprise International
Growth........................ 31.57% 14.75% N/A 14.38%
Enterprise High Yield Bond...... -3.88% 7.54% N/A 7.65%
Enterprise Growth............... 15.14% N/A N/A 19.46%
Enterprise Growth and Income.... 11.56% N/A N/A 12.62%
Enterprise Small Company
Growth........................ 43.93% N/A N/A 51.38%
Enterprise Equity Income........ -2.20% N/A N/A 0.25%
Enterprise Capital
Appreciation.................. 43.81% N/A N/A 54.13%
MONY Government Securities...... -6.85% 3.52% N/A 3.71%
MONY Intermediate Bond.......... -7.25% 4.39% 5.51% 5.70%
MONY Long Term Bond............. -14.51% 6.09% 6.79% 7.09%
Enterprise Multi-Cap Growth..... N/A N/A N/A 172.70%
Enterprise Balanced............. N/A N/A N/A -1.71%
Dreyfus Stock Index............. N/A N/A N/A -0.14%
The Dreyfus Socially Responsible
Growth........................ N/A N/A N/A 8.61%
Fidelity VIP Growth............. N/A N/A N/A 7.02%
Fidelity VIP II Contrafund...... N/A N/A N/A 2.99%
Fidelity VIP III Growth
Opportunities................. N/A N/A N/A -7.98%
Janus Aspen Series Aggressive
Growth........................ N/A N/A N/A 52.02%
Janus Aspen Series Balanced..... N/A N/A N/A 3.09%
Janus Aspen Series Capital
Appreciation.................. N/A N/A N/A 20.83%
Janus Aspen Series Worldwide
Growth........................ N/A N/A N/A 30.38%
</TABLE>
- ---------------
MONY America Variable Account A commenced operations on November 25, 1987. Total
return for the period since inception reflects the average annual total return
since the inception (commencement of operations) of each of the respective
Subaccounts, which is August 1988 for the Equity and Managed Subaccounts,
September 1988 for the Small Company Value Subaccount, January 1988 for the
Intermediate Term Bond Subaccount, February 1988 for the Long Term Bond
Subaccount, November 1994 for the Government Securities Subaccount, November
1994 for the International Growth and for the High Yield Bond Subaccounts and
November 1998 for the Equity Income, Growth and Income, Growth, Capital
Appreciation, and Small Company Growth Subaccounts, adjusted to reflect the
charges and expenses imposed by the Contract. Total return is not indicative of
future performance. The inception date for the Enterprise Multi-Cap Growth,
Enterprise Balanced, Dreyfus Stock Index, The Dreyfus Socially Responsible
Growth, Fidelity VIP Growth, Fidelity VIP II Contrafund, Fidelity VIP III Growth
Opportunities, Janus Aspen Series Aggressive Growth, Janus Aspen Series
Balanced, Janus Aspen Series Capital Appreciation and Janus Aspen Series
Worldwide Growth Subaccounts is July 1999.
(6)
<PAGE> 68
The table above assumes that a $1,000 payment was made to each Subaccount
at the beginning of the period shown, that no further payments were made, that
any distributions from the corresponding Portfolio of the Funds were reinvested,
and that the Owner surrendered the Contract for cash, rather than electing
commencement of annuity benefits in the form of one of the Settlement Options
available, at the end of the period shown. The average annual total return
percentages shown in the table reflect the historical rates of return,
deductions for all charges, expenses, and fees of both the Funds (including the
Investment Advisory Fees described in the Prospectus (see "Investment Advisory
Fee" at page 22) and the Variable Account which would be imposed on the payment
assumed, including a contingent deferred sales (Surrender) charge imposed as a
result of the full surrender allocated to each Subaccount in the proportion that
the total value of that Subaccount bore to the total value of the Variable
Account at the end of the period indicated.
The average annual total return for the Subaccounts other than the Money
Market Subaccount, assuming that the Contracts remain in force throughout the
periods indicated, is shown in the table below.
MONY AMERICA VARIABLE ACCOUNT A
TOTAL RETURN
(ASSUMING $1,000 PAYMENT AT BEGINNING OF
PERIOD AND CONTRACT CONTINUES IN FORCE)
<TABLE>
<CAPTION>
FOR THE
FOR THE FOR THE FOR THE PERIOD SINCE
1 YEAR ENDED 5 YEARS ENDED 10 YEARS ENDED INCEPTION THROUGH
SUBACCOUNT DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
---------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Enterprise Equity.............. 14.18% 21.11% 15.31% 15.44%
Enterprise Small Company
Value........................ 22.50% 18.18% 15.45% 15.33%
Enterprise Managed............. 7.86% 20.15% 16.11% 17.20%
Enterprise International
Growth....................... 40.42% 15.84% N/A 15.23%
Enterprise High Yield Bond..... 2.58% 8.54% N/A 8.43%
Enterprise Growth.............. 22.88% N/A N/A 26.88%
Enterprise Growth and Income... 19.06% N/A N/A 19.66%
Enterprise Small Company
Growth....................... 53.61% N/A N/A 60.93%
Enterprise Equity Income....... 4.38% N/A N/A 6.60%
Enterprise Capital
Appreciation................. 53.48% N/A N/A 63.97%
MONY Government Securities..... -0.59% 4.48% N/A 4.46%
MONY Intermediate Bond......... -1.01% 5.36% 5.51% 5.70%
MONY Long Term Bond............ -8.77% 7.06% 6.79% 7.09%
Enterprise Multi-Cap Growth.... N/A N/A N/A 191.03%
Enterprise Balanced............ N/A N/A N/A 4.90%
Dreyfus Stock Index............ N/A N/A N/A 6.57%
The Dreyfus Socially
Responsible Growth........... N/A N/A N/A 15.92%
Fidelity VIP Growth............ N/A N/A N/A 14.21%
Fidelity VIP II Contrafund..... N/A N/A N/A 9.91%
Fidelity VIP III Growth
Opportunities................ N/A N/A N/A -1.79%
Janus Aspen Series Aggressive
Growth....................... N/A N/A N/A 62.24%
Janus Aspen Series Balanced.... N/A N/A N/A 10.02%
Janus Aspen Series Capital
Appreciation................. N/A N/A N/A 28.95%
Janus Aspen Series Worldwide
Growth....................... N/A N/A N/A 39.14%
</TABLE>
- ---------------
MONY America Variable Account A commenced operations on November 25, 1987. Total
return for the period since inception reflects the average annual total return
since the inception (commencement of operations) of each of the Subaccounts,
which is August 1988 for the Equity and Managed Subaccounts, September 1988 for
the Small Company Value Subaccount, January 1988 for the Intermediate
(7)
<PAGE> 69
Term Bond Subaccount, February 1988 for the Long Term Bond Subaccount, November
1994 for the Government Securities Subaccount, and November 1994 for the
International Growth and for the High Yield Bond Subaccounts, and November 1998
for the Equity Income, Growth and Income, Growth, Capital Appreciation, and
Small Company Growth Subaccounts, adjusted to reflect the charges and expenses
imposed by the Contract. Total return is not indicative of future performance.
The inception date for the Enterprise Multi-Cap Growth, Enterprise Balanced,
Dreyfus Stock Index, The Dreyfus Socially Responsible Growth, Fidelity VIP
Growth, Fidelity VIP II Contrafund, Fidelity VIP III Growth Opportunities, Janus
Aspen Series Aggressive Growth, Janus Aspen Series Balanced, Janus Aspen Series
Capital Appreciation and Janus Aspen Series Worldwide Growth Subaccounts is July
1999.
The table above reflects the same assumptions and results as the table
appearing on page 6, except that no contingent deferred sales (surrender) charge
has been deducted. The data reflected in the table above reflects the average
annual total return an Owner would have received during that period if he did
not surrender his Contract.
30-DAY YIELD:
The yield for the Intermediate Term Bond, Long Term Bond, Government
Securities and High Yield Bond Subaccounts is shown in the table below.
MONY AMERICA VARIABLE ACCOUNT A
YIELD FOR 30-DAY PERIOD
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM GOVERNMENT HIGH YIELD
YIELD FOR 30 DAYS ENDED TERM BOND BOND SECURITIES BOND
----------------------- ------------ --------- ---------- ----------
<S> <C> <C> <C> <C>
December 31, 1999.................................. 5.09% 5.30% 4.98% 8.10%
</TABLE>
- ---------------
The 30-day yield is not indicative of future results.
For the Intermediate Term Bond, and Long Term Bond, Government Securities,
and High Yield Bond Portfolios, net investment income is the net of interest
earned on the obligation held by the Portfolio and expenses accrued for the
period. Interest earned on the obligation is determined by (i) computing the
yield to maturity based on the market value of each obligation held in the
corresponding Portfolio at the close of business on the thirtieth day of the
period (or as to obligations purchased during that 30-day period, based on the
purchase price plus accrued interest); (ii) dividing the yield to maturity for
each obligation by 360; (iii) multiplying that quotient by the market value of
each obligation (including actual accrued interest) for each day of the
subsequent 30-day month that the obligation is in the Portfolio; and (iv)
totaling the interest except, in the case of the column headed "No Surrender
Contract In Force", no contingent deferred sales (surrender) charge or annual
contract charge has been deducted:
(8)
<PAGE> 70
MONY AMERICA VARIABLE ACCOUNT A
YEAR TO DATE TOTAL RETURN
JANUARY 1 TO FEBRUARY 11, 2000
(ASSUMING $1,000 PAYMENT AT BEGINNING OF PERIOD)
<TABLE>
<CAPTION>
SURRENDER AT NO SURRENDER
SUBACCOUNT END OF PERIOD CONTRACT IN FORCE
- ---------- ------------- -----------------
<S> <C> <C>
Enterprise Equity........................................... -4.86% 1.54%
Enterprise Small Company Value.............................. -7.15% -0.91%
Enterprise Managed.......................................... -12.19% -6.29%
Enterprise International Growth............................. -8.14% -1.97%
Enterprise High Yield Bond.................................. -7.15% -0.91%
Enterprise Growth........................................... -11.43% -5.48%
Enterprise Growth and Income................................ -11.91% -5.99%
Enterprise Small Company Growth............................. 1.72% 8.56%
Enterprise Equity Income.................................... -15.86% -10.20%
Enterprise Capital Appreciation............................. -10.55% -4.53%
MONY Government Securities.................................. -6.78% -0.51%
MONY Intermediate Bond...................................... -6.78% -0.51%
MONY Long Term Bond......................................... -5.22% 1.16%
Enterprise Multi-Cap Growth................................. 3.94% 10.93%
Enterprise Balanced......................................... -9.68% -3.60%
Dreyfus Stock Index......................................... -11.58% -5.63%
The Dreyfus Socially Responsible Growth..................... -9.33% -3.24%
Fidelity VIP Growth......................................... -4.83% 1.57%
Fidelity VIP II Contrafund.................................. -6.96% -0.71%
Fidelity VIP III Growth Opportunities....................... -12.71% -6.84%
Janus Aspen Series Aggressive Growth........................ 7.75% 15.00%
Janus Aspen Series Balanced................................. -4.92% 1.47%
Janus Aspen Series Capital Appreciation..................... -4.06% 2.39%
Janus Aspen Series Worldwide Growth......................... 2.65% 9.55%
</TABLE>
OTHER NON-STANDARDIZED PERFORMANCE DATA:
From time to time, average annual total return or other performance data
may also be advertised in non-standardized formats. Non-standard performance
data will be accompanied by standard performance data, and the period covered or
other non-standard features will be disclosed.
FINANCIAL STATEMENTS
The financial statements of the Company should be distinguished from the
financial statements of the Variable Account. The financial statements of the
Company should be considered only as bearing upon the ability of the Company to
meet its obligations under the Contracts and should not be considered as bearing
on the investment performance of the assets held in the Variable Account.
(9)
<PAGE> 71
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
With respect to MONY America Variable Account A:
Report of Independent Accountants......................... F-2
Statements of assets and liabilities as of December 31,
1999................................................... F-3
Statements of operations for the periods ended December
31, 1999............................................... F-7
Statements of changes in net assets for the periods ended
December 31, 1999 and December 31, 1998................ F-11
Notes to financial statements............................. F-16
With respect to MONY Life Insurance Company of America:
Report of Independent Accountants......................... F-19
Balance sheets as of December 31, 1999 and 1998........... F-20
Statements of income and comprehensive income for the
years ended December 31, 1999, 1998 and 1997........... F-21
Statements of changes in shareholder's equity for the
years ended December 31, 1999, 1998 and 1997........... F-22
Statements of cash flows for the years ended December 31,
1999, 1998 and 1997.................................... F-23
Notes to financial statements............................. F-25
</TABLE>
F-1
<PAGE> 72
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account A -- MONY Custom Master:
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the MONY Custom
Master's Subaccounts of MONY America Variable Account A at December 31, 1999,
and the results of each of their operations and the changes in each of their net
assets for the periods presented, in conformity with accounting principles
generally accepted in the United States. These financial statements are the
responsibility of the MONY Life Insurance Company of America's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States, which 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, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at December 31, 1999 by correspondence with the fund transfer
agents, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 11, 2000
F-2
<PAGE> 73
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
----------------------------------------------------------------------------------------------------
MONY SERIES FUND, INC. ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------- ------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT SMALL COMPANY
TERM BOND BOND SECURITIES MONEY MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT** SUBACCOUNT
------------ ----------- ----------- ------------ ----------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in
respective Funds...... 835,880 1,035,966 1,354,247 80,749,984 693,003 1,446,326 3,537,198
========== =========== =========== =========== =========== =========== ============
Investments at cost..... $9,086,872 $13,154,344 $14,807,335 $80,749,984 $25,636,742 $43,508,082 $139,515,525
========== =========== =========== =========== =========== =========== ============
Investments in
respective Funds, at
net asset
value................. $9,044,217 $12,763,093 $14,774,836 $80,749,984 $26,763,810 $45,486,980 $128,400,304
Amount due from
respective Funds...... 0 527 1,525 100,698 110 508 34,128
Amount due from MONY
America............... 209 20,897 109,257 2,951,952 39,032 178,363 333,323
---------- ----------- ----------- ----------- ----------- ----------- ------------
Total assets... 9,044,426 12,784,517 14,885,618 83,802,634 26,802,952 45,665,851 128,767,755
---------- ----------- ----------- ----------- ----------- ----------- ------------
LIABILITIES
Amount due to MONY
America............... 4,846 7,370 9,237 140,620 14,145 23,999 102,063
Amount due to respective
Funds................. 209 20,897 109,257 2,951,952 39,032 178,363 333,323
---------- ----------- ----------- ----------- ----------- ----------- ------------
Total
liabilities... 5,055 28,267 118,494 3,092,572 53,177 202,362 435,386
---------- ----------- ----------- ----------- ----------- ----------- ------------
Net assets.............. $9,039,371 $12,756,250 $14,767,124 $80,710,062 $26,749,775 $45,463,489 $128,332,369
========== =========== =========== =========== =========== =========== ============
Net assets consist of:
Contractholders' net
payments............ $9,061,864 $13,291,884 $14,782,480 $79,597,156 $24,033,574 $41,141,156 $123,544,830
Undistributed net
investment income... 101,714 261,299 82,673 1,112,906 1,666,344 1,781,036 17,260,510
Accumulated net
realized gain (loss)
on investments...... (81,552) (405,682) (65,530) 0 (77,211) 562,399 (1,357,750)
Net unrealized
appreciation
(depreciation) of
investments......... (42,655) (391,251) (32,499) 0 1,127,068 1,978,898 (11,115,221)
---------- ----------- ----------- ----------- ----------- ----------- ------------
Net assets.............. $9,039,371 $12,756,250 $14,767,124 $80,710,062 $26,749,775 $45,463,489 $128,332,369
========== =========== =========== =========== =========== =========== ============
Number of units
outstanding*.......... 913,085 1,406,502 1,488,308 7,761,160 2,348,518 3,513,450 11,932,847
---------- ----------- ----------- ----------- ----------- ----------- ------------
Net asset value per unit
outstanding*.......... $ 9.90 $ 9.07 $ 9.92 $ 10.40 $ 11.39 $ 12.94 $ 10.75
========== =========== =========== =========== =========== =========== ============
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes
** Formerly Small Cap Subaccount
See notes to financial statements
F-3
<PAGE> 74
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ----------- ------------ ----------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective
Funds................... 1,715,381 3,079,684 33,455,756 14,035,236 2,518,230 4,931,459 3,525,786
=========== =========== ============ =========== =========== =========== ===========
Investments at cost....... $12,498,758 $15,930,268 $196,283,176 $81,737,127 $16,697,798 $26,990,213 $22,482,456
=========== =========== ============ =========== =========== =========== ===========
Investments in respective
Funds, at net asset
value................... $15,935,887 $15,583,202 $219,469,756 $86,457,054 $21,404,956 $26,481,936 $30,498,046
Amount due from MONY
America................. 50,240 211 676,929 346,886 186,004 25,517 70,300
Amount due from respective
Funds................... 0 322 3,420 646 912 0 555
----------- ----------- ------------ ----------- ----------- ----------- -----------
Total assets..... 15,986,127 15,583,735 220,150,105 86,804,586 21,591,872 26,507,453 30,568,901
----------- ----------- ------------ ----------- ----------- ----------- -----------
LIABILITIES
Amount due to MONY
America................. 7,972 8,608 118,386 44,769 11,380 13,977 15,973
Amount due to respective
Funds................... 50,240 211 676,929 346,886 186,004 25,517 70,300
----------- ----------- ------------ ----------- ----------- ----------- -----------
Total
liabilities.... 58,212 8,819 795,315 391,655 197,384 39,494 86,273
----------- ----------- ------------ ----------- ----------- ----------- -----------
Net assets................ $15,927,915 $15,574,916 $219,354,790 $86,412,931 $21,394,488 $26,467,959 $30,482,628
=========== =========== ============ =========== =========== =========== ===========
Net assets consist of:
Contractholders' net
payments.............. $11,979,124 $15,392,084 $195,004,557 $80,810,313 $16,370,071 $26,928,036 $22,050,475
Undistributed net
investment income
(loss)................ 207,945 671,490 (1,286,130) (409,971) (79,852) (133,336) (143,705)
Accumulated net realized
gain (loss) on
investments........... 303,717 (141,592) 2,449,783 1,292,662 397,111 181,536 560,268
Net unrealized
appreciation
(depreciation) of
investments........... 3,437,129 (347,066) 23,186,580 4,719,927 4,707,158 (508,277) 8,015,590
----------- ----------- ------------ ----------- ----------- ----------- -----------
Net assets................ $15,927,915 $15,574,916 $219,354,790 $86,412,931 $21,394,488 $26,467,959 $30,482,628
=========== =========== ============ =========== =========== =========== ===========
Number of units
outstanding*............ 1,074,763 1,520,029 16,952,783 7,122,762 1,281,793 2,472,972 1,802,006
----------- ----------- ------------ ----------- ----------- ----------- -----------
Net asset value per unit
outstanding*............ $ 14.82 $ 10.25 $ 12.94 $ 12.13 $ 16.69 $ 10.70 $ 16.92
=========== =========== ============ =========== =========== =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements
F-4
<PAGE> 75
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
----------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------
DREYFUS DREYFUS
MULTI-CAP STOCK SOCIALLY
GROWTH BALANCED INDEX RESPONSIBLE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- ------------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Shares held in respective
Funds........................ 3,194,439 1,852,357 1,171,053 157,035
=========== ========== =========== ==========
Investments at cost............ $37,544,170 $9,138,151 $41,882,017 $5,642,395
=========== ========== =========== ==========
Investments in respective
Funds, at net asset value.... $46,734,645 $9,632,256 $45,026,977 $6,135,348
Amount due from MONY
America...................... 666,574 111,957 343,680 67,432
Amount due from respective
Funds........................ 576 0 412 28
----------- ---------- ----------- ----------
Total assets.......... 47,401,795 9,744,213 45,371,069 6,202,808
----------- ---------- ----------- ----------
LIABILITIES
Amount due to MONY America..... 22,661 4,801 23,057 3,049
Amount due to respective
Funds........................ 666,574 111,957 343,680 67,432
----------- ---------- ----------- ----------
Total liabilities..... 689,235 116,758 366,737 70,481
----------- ---------- ----------- ----------
Net assets..................... $46,712,560 $9,627,455 $45,004,332 $6,132,327
=========== ========== =========== ==========
Net assets consist of:
Contractholders' net
payments................... $37,220,792 $9,147,172 $41,539,249 $5,425,646
Undistributed net investment
income (loss).............. (76,869) (23,876) 241,727 182,771
Accumulated net realized gain
on investments............. 378,162 10,054 78,396 30,957
Net unrealized appreciation
of investments............. 9,190,475 494,105 3,144,960 492,953
----------- ---------- ----------- ----------
Net assets..................... $46,712,560 $9,627,455 $45,004,332 $6,132,327
=========== ========== =========== ==========
Number of units outstanding*... 1,605,055 917,822 4,223,029 529,031
----------- ---------- ----------- ----------
Net asset value per unit
outstanding*................. $ 29.10 $ 10.49 $ 10.66 $ 11.59
=========== ========== =========== ==========
<CAPTION>
MONY CUSTOM MASTER
-------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS
-------------------------------------------
VIP III
VIP VIP II GROWTH
GROWTH CONTRAFUND OPPORTUNITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------ -------------
<S> <C> <C> <C>
ASSETS
Shares held in respective
Funds........................ 406,247 890,196 388,390
=========== =========== ==========
Investments at cost............ $19,390,309 $23,085,462 $8,696,125
=========== =========== ==========
Investments in respective
Funds, at net asset value.... $22,262,320 $25,904,698 $8,979,567
Amount due from MONY
America...................... 202,663 80,687 113,643
Amount due from respective
Funds........................ 253 26 36
----------- ----------- ----------
Total assets.......... 22,465,236 25,985,411 9,093,246
----------- ----------- ----------
LIABILITIES
Amount due to MONY America..... 11,322 12,886 4,585
Amount due to respective
Funds........................ 202,663 80,687 113,643
----------- ----------- ----------
Total liabilities..... 213,985 93,573 118,228
----------- ----------- ----------
Net assets..................... $22,251,251 $25,891,838 $8,975,018
=========== =========== ==========
Net assets consist of:
Contractholders' net
payments................... $19,321,250 $23,069,802 $8,713,850
Undistributed net investment
income (loss).............. (49,919) (61,843) (22,289)
Accumulated net realized gain
on investments............. 107,909 64,643 15
Net unrealized appreciation
of investments............. 2,872,011 2,819,236 283,442
----------- ----------- ----------
Net assets..................... $22,251,251 $25,891,838 $8,975,018
=========== =========== ==========
Number of units outstanding*... 1,948,202 2,355,687 913,852
----------- ----------- ----------
Net asset value per unit
outstanding*................. $ 11.42 $ 10.99 $ 9.82
=========== =========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements
F-5
<PAGE> 76
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
------------------------------------------------------
JANUS ASPEN SERIES FUND
------------------------------------------------------
AGGRESSIVE CAPITAL WORLDWIDE
GROWTH BALANCED APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds...................... 585,706 762,448 1,149,528 517,479
=========== =========== =========== ===========
Investments at cost.................................. $26,192,194 $19,482,881 $29,633,528 $19,706,724
=========== =========== =========== ===========
Investments in respective Fund, at net asset value... $34,960,770 $21,287,534 $38,129,829 $24,709,604
Amount due from MONY America......................... 482,131 273,179 247,910 510,718
Amount due from respective Funds..................... 250 520 326 29
----------- ----------- ----------- -----------
Total assets............................... 35,443,151 21,561,233 38,378,065 25,220,351
----------- ----------- ----------- -----------
LIABILITIES
Amount due to MONY America........................... 16,887 11,012 19,276 11,614
Amount due to respective Funds....................... 482,131 273,179 247,910 510,718
----------- ----------- ----------- -----------
Total liabilities.......................... 499,018 284,191 267,186 522,332
----------- ----------- ----------- -----------
Net assets........................................... $34,944,133 $21,277,042 $38,110,879 $24,698,019
=========== =========== =========== ===========
Net assets consist of:
Contractholders' net payments...................... $25,747,393 $19,256,794 $29,455,654 $19,524,963
Undistributed net investment income (loss)......... (65,628) 176,735 (15,093) (45,742)
Accumulated net realized gain on investments....... 493,792 38,860 174,017 215,918
Net unrealized appreciation (depreciation) of
investments..................................... 8,768,576 1,804,653 8,496,301 5,002,880
----------- ----------- ----------- -----------
Net assets........................................... $34,944,133 $21,277,042 $38,110,879 $24,698,019
=========== =========== =========== ===========
Number of units outstanding*......................... 2,153,830 1,933,982 2,955,486 1,775,017
----------- ----------- ----------- -----------
Net asset value per unit outstanding*................ $ 16.22 $ 11.00 $ 12.89 $ 13.91
=========== =========== =========== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements
F-6
<PAGE> 77
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------------------------------------------------------------
MONY SERIES FUND, INC ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------- -----------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL COMPANY
TERM BOND BOND SECURITIES MARKET EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income................. $ 157,156 $ 354,278 $173,260 $1,470,214 $1,836,251 $2,003,334 $ 18,094,761
Mortality and expense risk
charges....................... (55,358) (92,821) (90,385) (358,534) (169,705) (222,162) (833,604)
--------- --------- -------- ---------- ---------- ---------- ------------
Net investment income........... 101,798 261,457 82,875 1,111,680 1,666,546 1,781,172 17,261,157
--------- --------- -------- ---------- ---------- ---------- ------------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments................. (81,552) (405,659) (65,530) 0 (76,825) 562,323 (1,356,575)
Net change in unrealized
appreciation (depreciation)
of investments.............. (43,131) (391,894) (33,260) 0 1,114,149 1,958,981 (11,144,313)
--------- --------- -------- ---------- ---------- ---------- ------------
Net realized and unrealized gain
(loss) on investments......... (124,683) (797,553) (98,790) 0 1,037,324 2,521,304 (12,500,888)
--------- --------- -------- ---------- ---------- ---------- ------------
Net increase (decrease) in net
assets resulting from
operations.................... $ (22,885) $(536,096) $(15,915) $1,111,680 $2,703,870 $4,302,476 $ 4,760,269
========= ========= ======== ========== ========== ========== ============
</TABLE>
See notes to financial statements
F-7
<PAGE> 78
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
-------------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND SMALL COMPANY EQUITY CAPITAL
GROWTH BOND GROWTH INCOME GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ---------- ----------- ---------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income............... $ 286,891 $ 761,885 $ 0 $ 266 $ 0 $ 25,001 $ 0
Mortality and expense risk
charges..................... (78,859) (90,839) (1,285,538) (410,162) (79,785) (158,290) (143,656)
---------- --------- ----------- ---------- ---------- --------- ----------
Net investment income
(loss)...................... 208,032 671,046 (1,285,538) (409,896) (79,785) (133,289) (143,656)
---------- --------- ----------- ---------- ---------- --------- ----------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments............... 303,713 (141,592) 2,449,639 1,292,661 397,107 181,535 560,264
Net change in unrealized
appreciation
(depreciation) of
investments............... 3,431,921 (347,425) 23,150,925 4,713,749 4,698,213 (510,001) 8,006,641
---------- --------- ----------- ---------- ---------- --------- ----------
Net realized and unrealized
gain (loss) on
investments................. 3,735,634 (489,017) 25,600,564 6,006,410 5,095,320 (328,466) 8,566,905
---------- --------- ----------- ---------- ---------- --------- ----------
Net increase (decrease) in net
assets resulting from
operations.................. $3,943,666 $ 182,029 $24,315,026 $5,596,514 $5,015,535 $(461,755) $8,423,249
========== ========= =========== ========== ========== ========= ==========
</TABLE>
See notes to financial statements
F-8
<PAGE> 79
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------
DREYFUS DREYFUS
MULTI-CAP STOCK SOCIALLY
GROWTH BALANCED INDEX RESPONSIBLE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ----------------- ----------------- -----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 15, 1999* JULY 12, 1999* JULY 20, 1999* JULY 23, 1999*
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Dividend income................... $ 0 $ 0 $ 348,170 $196,560
Mortality and expense risk
charges......................... (76,869) (23,876) (106,443) (13,789)
---------- -------- ---------- --------
Net investment income (loss)...... (76,869) (23,876) 241,727 182,771
---------- -------- ---------- --------
Realized and unrealized gain
(loss) on investments:
Net realized gain on
investments................... 378,162 10,054 78,396 30,957
Net change in unrealized
appreciation of investments... 9,190,475 494,105 3,144,960 492,953
---------- -------- ---------- --------
Net realized and unrealized gain
(loss) on investments........... 9,568,637 504,159 3,223,356 523,910
---------- -------- ---------- --------
Net increase (decrease) in net
assets resulting from
operations...................... $9,491,768 $480,283 $3,465,083 $706,681
========== ======== ========== ========
<CAPTION>
MONY CUSTOM MASTER
---------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS
---------------------------------------------------------
VIP III
VIP VIP II GROWTH
GROWTH CONTRAFUND OPPORTUNITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ----------------- -----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 15, 1999* JULY 20, 1999* JULY 22, 1999*
THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
----------------- ----------------- -----------------
<S> <C> <C> <C>
Dividend income................... $ 0 $ 0 $ 0
Mortality and expense risk
charges......................... (49,919) (61,843) (22,289)
---------- ---------- --------
Net investment income (loss)...... (49,919) (61,843) (22,289)
---------- ---------- --------
Realized and unrealized gain
(loss) on investments:
Net realized gain on
investments................... 107,909 64,643 15
Net change in unrealized
appreciation of investments... 2,872,011 2,819,236 283,442
---------- ---------- --------
Net realized and unrealized gain
(loss) on investments........... 2,979,920 2,883,879 283,457
---------- ---------- --------
Net increase (decrease) in net
assets resulting from
operations...................... $2,930,001 $2,822,036 $261,168
========== ========== ========
</TABLE>
- ---------------
* Commencement of operations
See notes to financial statements
F-9
<PAGE> 80
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------------------------------------------
JANUS ASPEN SERIES FUND
-----------------------------------------------------------------------------
AGGRESSIVE CAPITAL WORLDWIDE
GROWTH BALANCED APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ----------------- ----------------- -----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 19, 1999* JULY 19, 1999* JULY 15, 1999 * JULY 15, 1999 *
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Dividend income................................... $ 0 $ 222,390 $ 68,036 $ 0
Mortality and expense risk charges................ (65,628) (45,655) (83,129) (45,742)
---------- ---------- ---------- ----------
Net investment income (loss)...................... (65,628) 176,735 (15,093) (45,742)
---------- ---------- ---------- ----------
Realized and unrealized gain (loss) on
investments:
Net realized gain on investments................ 493,792 38,860 174,017 215,918
Net change in unrealized appreciation of
investments................................... 8,768,576 1,804,653 8,496,301 5,002,880
---------- ---------- ---------- ----------
Net realized and unrealized gain on investments... 9,262,368 1,843,513 8,670,318 5,218,798
---------- ---------- ---------- ----------
Net increase (decrease) in net assets resulting
from operations................................. $9,196,740 $2,020,248 $8,655,225 $5,173,056
========== ========== ========== ==========
</TABLE>
- ---------------
* Commencement of operations
See notes to financial statements
F-10
<PAGE> 81
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
--------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
--------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT
TERM BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------------- ---------------------------------- ------------
FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD FOR THE
YEAR ENDED DECEMBER 8, 1998** YEAR ENDED DECEMBER 2, 1998** YEAR ENDED
DECEMBER 31, THROUGH DECEMBER 31, THROUGH DECEMBER 31,
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998 1999
------------ ------------------- ------------ ------------------- ------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)..... $ 101,798 $ (84) $ 261,457 $ (158) $ 82,875
Net realized gain (loss) on
investments.................... (81,552) 0 (405,659) (23) (65,530)
Net change in unrealized
appreciation (depreciation) of
investments.................... (43,131) 476 (391,894) 643 (33,260)
----------- -------- ----------- -------- -----------
Net increase (decrease) in net
assets resulting from
operations....................... (22,885) 392 (536,096) 462 (15,915)
----------- -------- ----------- -------- -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 10,114,352 244,986 15,854,885 387,777 15,969,188
Net asset value of units redeemed
or used to meet contract
obligations.................... (1,297,474) 0 (2,950,778) 0 (1,732,887)
----------- -------- ----------- -------- -----------
Net increase from unit
transactions..................... 8,816,878 244,986 12,904,107 387,777 14,236,301
----------- -------- ----------- -------- -----------
Net increase in net assets........ 8,793,993 245,378 12,368,011 388,239 14,220,386
Net assets beginning of period.... 245,378 0 388,239 0 546,738
----------- -------- ----------- -------- -----------
Net assets end of period*......... $ 9,039,371 $245,378 $12,756,250 $388,239 $14,767,124
=========== ======== =========== ======== ===========
Unit transactions:
Units outstanding beginning of
period........................... 24,535 0 39,054 0 54,777
Units issued during the period.... 1,019,555 24,535 1,685,745 39,054 1,608,412
Units redeemed during the
period........................... (131,005) 0 (318,297) 0 (174,881)
----------- -------- ----------- -------- -----------
Units outstanding end of period... 913,085 24,535 1,406,502 39,054 1,488,308
=========== ======== =========== ======== ===========
- ---------------
* Includes undistributed net
investment income (loss) of: $ 101,714 $ (84) $ 261,299 $ (158) $ 82,673
=========== ======== =========== ======== ===========
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
--------------------------------------------------------
MONY SERIES FUND, INC.
--------------------------------------------------------
GOVERNMENT
SECURITIES MONEY MARKET
SUBACCOUNT SUBACCOUNT
------------------- ----------------------------------
FOR THE PERIOD FOR THE FOR THE PERIOD
DECEMBER 2, 1998** YEAR ENDED DECEMBER 2, 1998**
THROUGH DECEMBER 31, THROUGH
DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------------- ------------ -------------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)..... $ (202) $ 1,111,680 $ 1,226
Net realized gain (loss) on
investments.................... 0 0 0
Net change in unrealized
appreciation (depreciation) of
investments.................... 761 0 0
-------- ------------ ----------
Net increase (decrease) in net
assets resulting from
operations....................... 559 1,111,680 1,226
-------- ------------ ----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 546,179 146,401,815 1,599,084
Net asset value of units redeemed
or used to meet contract
obligations.................... 0 (68,232,460) (171,283)
-------- ------------ ----------
Net increase from unit
transactions..................... 546,179 78,169,355 1,427,801
-------- ------------ ----------
Net increase in net assets........ 546,738 79,281,035 1,429,027
Net assets beginning of period.... 0 1,429,027 0
-------- ------------ ----------
Net assets end of period*......... $546,738 $80,710,062 $1,429,027
======== ============ ==========
Unit transactions:
Units outstanding beginning of
period........................... 0 142,487 0
Units issued during the period.... 54,777 14,259,179 159,572
Units redeemed during the
period........................... 0 (6,640,506) (17,085)
-------- ------------ ----------
Units outstanding end of period... 54,777 7,761,160 142,487
======== ============ ==========
- ---------------
* Includes undistributed net
investment income (loss) of: $ (202) $ 1,112,906 $ 1,226
======== ============ ==========
** Commencement of operations
</TABLE>
See notes to financial statements.
F-11
<PAGE> 82
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
--------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------------------------
EQUITY SMALL COMPANY VALUE MANAGED
SUBACCOUNT SUBACCOUNT*** SUBACCOUNT
---------------------------------- ---------------------------------- ------------
FOR THE YEAR FOR THE PERIOD FOR THE YEAR FOR THE PERIOD FOR THE YEAR
ENDED DECEMBER 1, 1998** ENDED DECEMBER 3, 1998** ENDED
DECEMBER 31, THROUGH DECEMBER 31, THROUGH DECEMBER 31,
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998 1999
------------ ------------------- ------------ ------------------- ------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)............. $ 1,666,546 $ (202) $ 1,781,172 $ (136) $ 17,261,157
Net realized gain (loss) on
investments............................ (76,825) (386) 562,323 76 (1,356,575)
Net change in unrealized appreciation
(depreciation) of investments.......... 1,114,149 12,919 1,958,981 19,917 (11,144,313)
----------- -------- ----------- -------- ------------
Net increase (decrease) in net assets
resulting from operations................ 2,703,870 12,331 4,302,476 19,857 4,760,269
----------- -------- ----------- -------- ------------
From unit transactions:
Net proceeds from the issuance of
units.................................. 28,754,279 631,080 45,228,505 362,502 144,669,632
Net asset value of units redeemed or used
to meet contract obligations........... (5,351,785) 0 (4,449,851) 0 (23,248,728)
----------- -------- ----------- -------- ------------
Net increase from unit transactions....... 23,402,494 631,080 40,778,654 362,502 121,420,904
----------- -------- ----------- -------- ------------
Net increase in net assets................ 26,106,364 643,411 45,081,130 382,359 126,181,173
Net assets beginning of period............ 643,411 0 382,359 0 2,151,196
----------- -------- ----------- -------- ------------
Net assets end of period*................. $26,749,775 $643,411 $45,463,489 $382,359 $128,332,369
=========== ======== =========== ======== ============
Unit transactions:
Units outstanding beginning of period..... 64,500 0 36,198 0 215,756
Units issued during the period............ 2,819,082 64,500 3,850,959 36,198 13,972,664
Units redeemed during the period.......... (535,064) 0 (373,707) 0 (2,255,573)
----------- -------- ----------- -------- ------------
Units outstanding end of period........... 2,348,518 64,500 3,513,450 36,198 11,932,847
=========== ======== =========== ======== ============
- ---------------
* Includes undistributed net investment
income (loss) of: $ 1,666,344 $ (202) $ 1,781,036 $ (136) $ 17,260,510
=========== ======== =========== ======== ============
** Commencement of operations
*** Formerly small cap subaccount
<CAPTION>
MONY CUSTOM MASTER
--------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------
MANAGED INTERNATIONAL GROWTH
SUBACCOUNT SUBACCOUNT
------------------- ----------------------------------
FOR THE PERIOD FOR THE YEAR FOR THE PERIOD
DECEMBER 1, 1998** ENDED DECEMBER 3, 1998**
THROUGH DECEMBER 31, THROUGH
DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------------- ------------ -------------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)............. $ (647) $ 208,032 $ (87)
Net realized gain (loss) on
investments............................ (1,175) 303,713 4
Net change in unrealized appreciation
(depreciation) of investments.......... 29,092 3,431,921 5,208
---------- ----------- --------
Net increase (decrease) in net assets
resulting from operations................ 27,270 3,943,666 5,125
---------- ----------- --------
From unit transactions:
Net proceeds from the issuance of
units.................................. 2,123,926 14,118,499 161,753
Net asset value of units redeemed or used
to meet contract obligations........... 0 (2,301,128) 0
---------- ----------- --------
Net increase from unit transactions....... 2,123,926 11,817,371 161,753
---------- ----------- --------
Net increase in net assets................ 2,151,196 15,761,037 166,878
Net assets beginning of period............ 0 166,878 0
---------- ----------- --------
Net assets end of period*................. $2,151,196 $15,927,915 $166,878
========== =========== ========
Unit transactions:
Units outstanding beginning of period..... 0 15,811 0
Units issued during the period............ 215,756 1,253,630 15,811
Units redeemed during the period.......... 0 (194,678) 0
---------- ----------- --------
Units outstanding end of period........... 215,756 1,074,763 15,811
========== =========== ========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (647) $ 207,945 $ (87)
========== =========== ========
** Commencement of operations
*** Formerly small cap subaccount
<CAPTION>
MONY CUSTOM MASTER
----------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------
HIGH YIELD BOND
SUBACCOUNT
----------------------------------
FOR THE YEAR FOR THE PERIOD
ENDED DECEMBER 9, 1998**
DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998
------------ -------------------
<S> <C> <C>
From operations:
Net investment income (loss)............. $ 671,046 $ 444
Net realized gain (loss) on
investments............................ (141,592) 0
Net change in unrealized appreciation
(depreciation) of investments.......... (347,425) 359
----------- --------
Net increase (decrease) in net assets
resulting from operations................ 182,029 803
----------- --------
From unit transactions:
Net proceeds from the issuance of
units.................................. 17,411,010 246,240
Net asset value of units redeemed or used
to meet contract obligations........... (2,265,166) 0
----------- --------
Net increase from unit transactions....... 15,145,844 246,240
----------- --------
Net increase in net assets................ 15,327,873 247,043
Net assets beginning of period............ 247,043 0
----------- --------
Net assets end of period*................. $15,574,916 $247,043
=========== ========
Unit transactions:
Units outstanding beginning of period..... 24,732 0
Units issued during the period............ 1,720,663 24,732
Units redeemed during the period.......... (225,366) 0
----------- --------
Units outstanding end of period........... 1,520,029 24,732
=========== ========
- ---------------
* Includes undistributed net investment
income (loss) of: $ 671,490 $ 444
=========== ========
** Commencement of operations
*** Formerly small cap subaccount
</TABLE>
See notes to financial statements.
F-12
<PAGE> 83
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------
GROWTH GROWTH AND INCOME
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE YEAR FOR THE PERIOD FOR THE YEAR FOR THE PERIOD
ENDED DECEMBER 1, 1998** ENDED DECEMBER 3, 1998**
DECEMBER 31, THROUGH DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------- ------------ -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)............. $ (1,285,538) $ (592) $ (409,896) $ (75)
Net realized gain (loss) on
investments............................ 2,449,639 144 1,292,661 1
Net change in unrealized appreciation
(depreciation) of investments.......... 23,150,925 35,655 4,713,749 6,178
------------ ---------- ----------- --------
Net increase (decrease) in net assets
resulting from operations................ 24,315,026 35,207 5,596,514 6,104
------------ ---------- ----------- --------
From unit transactions:
Net proceeds from the issuance of
units.................................. 218,185,753 1,594,029 87,801,810 265,896
Net asset value of units redeemed or used
to meet contract obligations........... (24,775,225) 0 (7,257,393) 0
------------ ---------- ----------- --------
Net increase from unit transactions....... 193,410,528 1,594,029 80,544,417 265,896
------------ ---------- ----------- --------
Net increase in net assets................ 217,725,554 1,629,236 86,140,931 272,000
Net assets beginning of period............ 1,629,236 0 272,000 0
------------ ---------- ----------- --------
Net assets end of period*................. $219,354,790 $1,629,236 $86,412,931 $272,000
============ ========== =========== ========
Unit transactions:
Units outstanding beginning of period..... 154,728 0 26,693 0
Units issued during the period............ 18,916,259 154,728 7,726,203 26,693
Units redeemed during the period.......... (2,118,204) 0 (630,134) 0
------------ ---------- ----------- --------
Units outstanding end of period........... 16,952,783 154,728 7,122,762 26,693
============ ========== =========== ========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (1,286,130) $ (592) $ (409,971) $ (75)
============ ========== =========== ========
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
-----------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------
EQUITY
SMALL COMPANY GROWTH INCOME
SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------------------------
FOR THE YEAR FOR THE PERIOD FOR THE YEAR FOR THE PERIOD
ENDED DECEMBER 3, 1998** ENDED DECEMBER 8, 1998**
DECEMBER 31, THROUGH DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------ ------------------- ------------ -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)............. $ (79,785) $ (67) $ (133,289) $ (47)
Net realized gain (loss) on
investments............................ 397,107 4 181,535 1
Net change in unrealized appreciation
(depreciation) of investments.......... 4,698,213 8,945 (510,001) 1,724
----------- -------- ----------- --------
Net increase (decrease) in net assets
resulting from operations................ 5,015,535 8,882 (461,755) 1,678
----------- -------- ----------- --------
From unit transactions:
Net proceeds from the issuance of
units.................................. 17,374,555 185,484 29,981,260 197,340
Net asset value of units redeemed or used
to meet contract obligations........... (1,189,968) 0 (3,250,564) 0
----------- -------- ----------- --------
Net increase from unit transactions....... 16,184,587 185,484 26,730,696 197,340
----------- -------- ----------- --------
Net increase in net assets................ 21,200,122 194,366 26,268,941 199,018
Net assets beginning of period............ 194,366 0 199,018 0
----------- -------- ----------- --------
Net assets end of period*................. $21,394,488 $194,366 $26,467,959 $199,018
=========== ======== =========== ========
Unit transactions:
Units outstanding beginning of period..... 17,887 0 19,409 0
Units issued during the period............ 1,354,866 17,887 2,757,380 19,409
Units redeemed during the period.......... (90,960) 0 (303,817) 0
----------- -------- ----------- --------
Units outstanding end of period........... 1,281,793 17,887 2,472,972 19,409
=========== ======== =========== ========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (79,852) $ (67) $ (133,336) $ (47)
=========== ======== =========== ========
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
----------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------
CAPITAL
APPRECIATION
SUBACCOUNT
----------------------------------
FOR THE YEAR FOR THE PERIOD
ENDED DECEMBER 8, 1998**
DECEMBER 31, THROUGH
1999 DECEMBER 31, 1998
------------ -------------------
<S> <C> <C>
From operations:
Net investment income (loss)............. $ (143,656) $ (49)
Net realized gain (loss) on
investments............................ 560,264 4
Net change in unrealized appreciation
(depreciation) of investments.......... 8,006,641 8,949
----------- --------
Net increase (decrease) in net assets
resulting from operations................ 8,423,249 8,904
----------- --------
From unit transactions:
Net proceeds from the issuance of
units.................................. 25,145,239 215,502
Net asset value of units redeemed or used
to meet contract obligations........... (3,310,266) 0
----------- --------
Net increase from unit transactions....... 21,834,973 215,502
----------- --------
Net increase in net assets................ 30,258,222 224,406
Net assets beginning of period............ 224,406 0
----------- --------
Net assets end of period*................. $30,482,628 $224,406
=========== ========
Unit transactions:
Units outstanding beginning of period..... 20,360 0
Units issued during the period............ 2,046,259 20,360
Units redeemed during the period.......... (264,613) 0
----------- --------
Units outstanding end of period........... 1,802,006 20,360
=========== ========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (143,705) $ (49)
=========== ========
** Commencement of operations
</TABLE>
See notes to financial statements.
F-13
<PAGE> 84
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
---------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------- DREYFUS DREYFUS
MULTI-CAP STOCK SOCIALLY
GROWTH BALANCED INDEX RESPONSIBLE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ------------------- ----------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 15,1999** JULY 12, 1999** JULY 20, 1999** JULY 23, 1999**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
----------------- ------------------- ----------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)..... $ (76,869) $ (23,876) $ 241,727 $ 182,771
Net realized gain (loss) on
investments.................... 378,162 10,054 78,396 30,957
Net change in unrealized
appreciation (depreciation) of
investments.................... 9,190,475 494,105 3,144,960 492,953
----------- ---------- ----------- ----------
Net increase (decrease) in net
assets resulting from
operations....................... 9,491,768 480,283 3,465,083 706,681
----------- ---------- ----------- ----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 38,409,014 9,569,175 43,565,519 5,686,675
Net asset value of units redeemed
or used to meet contract
obligations.................... (1,188,222) (422,003) (2,026,270) (261,029)
----------- ---------- ----------- ----------
Net increase from unit
transactions..................... 37,220,792 9,147,172 41,539,249 5,425,646
----------- ---------- ----------- ----------
Net increase in net assets........ 46,712,560 9,627,455 45,004,332 6,132,327
Net assets beginning of period.... 0 0 0 0
----------- ---------- ----------- ----------
Net assets end of period*......... $46,712,560 $9,627,455 $45,004,332 $6,132,327
=========== ========== =========== ==========
Unit transactions:
Units outstanding beginning of
period........................... 0 0 0 0
Units issued during the period.... 1,654,605 960,848 4,427,435 554,261
Units redeemed during the
period........................... (49,550) (43,026) (204,406) (25,230)
----------- ---------- ----------- ----------
Units outstanding end of period... 1,605,055 917,822 4,223,029 529,031
=========== ========== =========== ==========
- ---------------
* Includes undistributed net
investment income (loss) of: $ (76,869) $ (23,876) $ 241,727 $ 182,771
=========== ========== =========== ==========
** Commencement of operations
<CAPTION>
MONY CUSTOM MASTER
--------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS
--------------------------------------------------------------
VIP VIP II VIP III
GROWTH CONTRAFUND GROWTH OPPORTUNITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ------------------- --------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 15, 1999** JULY 20, 1999** JULY 22, 1999**
THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
----------------- ------------------- --------------------
<S> <C> <C> <C>
From operations:
Net investment income (loss)..... $ (49,919) $ (61,843) $ (22,289)
Net realized gain (loss) on
investments.................... 107,909 64,643 15
Net change in unrealized
appreciation (depreciation) of
investments.................... 2,872,011 2,819,236 283,442
----------- ----------- ----------
Net increase (decrease) in net
assets resulting from
operations....................... 2,930,001 2,822,036 261,168
----------- ----------- ----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 20,065,183 24,290,922 9,187,365
Net asset value of units redeemed
or used to meet contract
obligations.................... (743,933) (1,221,120) (473,515)
----------- ----------- ----------
Net increase from unit
transactions..................... 19,321,250 23,069,802 8,713,850
----------- ----------- ----------
Net increase in net assets........ 22,251,251 25,891,838 8,975,018
Net assets beginning of period.... 0 0 0
----------- ----------- ----------
Net assets end of period*......... $22,251,251 $25,891,838 $8,975,018
=========== =========== ==========
Unit transactions:
Units outstanding beginning of
period........................... 0 0 0
Units issued during the period.... 2,020,566 2,479,149 963,098
Units redeemed during the
period........................... (72,364) (123,462) (49,246)
----------- ----------- ----------
Units outstanding end of period... 1,948,202 2,355,687 913,852
=========== =========== ==========
- ---------------
* Includes undistributed net
investment income (loss) of: $ (49,919) $ (61,843) $ (22,289)
=========== =========== ==========
** Commencement of operations
</TABLE>
See notes to financial statements.
F-14
<PAGE> 85
MONY AMERICA
VARIABLE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY CUSTOM MASTER
---------------------------------------------------------------------------------
JANUS ASPEN SERIES FUND
---------------------------------------------------------------------------------
AGGRESSIVE CAPITAL WORLDWIDE
GROWTH BALANCED APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ------------------- ----------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JULY 19, 1999** JULY 19, 1999** JULY 15, 1999** JULY 15, 1999**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
----------------- ------------------- ----------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)................ $ (65,628) $ 176,735 $ (15,093) $ (45,742)
Net realized gain (loss) on investments..... 493,792 38,860 174,017 215,918
Net change in unrealized appreciation
(depreciation) of investments............. 8,768,576 1,804,653 8,496,301 5,002,880
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations................... 9,196,740 2,020,248 8,655,225 5,173,056
----------- ----------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units..... 26,709,744 19,947,065 30,469,798 20,188,770
Net asset value of units redeemed or used to
meet contract obligations................. (962,351) (690,271) (1,014,144) (663,807)
----------- ----------- ----------- -----------
Net increase from unit transactions........... 25,747,393 19,256,794 29,455,654 19,524,963
----------- ----------- ----------- -----------
Net increase in net assets.................... 34,944,133 21,277,042 38,110,879 24,698,019
Net assets beginning of period................ 0 0 0 0
----------- ----------- ----------- -----------
Net assets end of period*..................... $34,944,133 $21,277,042 $38,110,879 $24,698,019
=========== =========== =========== ===========
Unit transactions:
Units outstanding beginning of period......... 0 0 0 0
Units issued during the period................ 2,227,213 2,004,157 3,052,727 1,833,953
Units redeemed during the period.............. (73,383) (70,175) (97,241) (58,936)
----------- ----------- ----------- -----------
Units outstanding end of period............... 2,153,830 1,933,982 2,955,486 1,775,017
=========== =========== =========== ===========
- ---------------
* Includes undistributed net investment
income (loss) of: $ (65,628) $ 176,735 $ (15,093) $ (45,742)
=========== =========== =========== ===========
** Commencement of operations
</TABLE>
See notes to financial statements.
F-15
<PAGE> 86
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS:
MONY America Variable Account A (the "Variable Account") is a separate
investment account established on March 27, 1987 by MONY Life Insurance Company
of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Flexible Payment Variable Annuity policies
(MONYMaster, ValueMaster and MONY Custom Master). These policies are issued by
MONY America, which is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). For presentation purposes, the information related only to MONY Custom
Master is presented here.
There are twenty-five MONY Custom Master subaccounts within the Variable
Account, and each invests only in a corresponding portfolio of the MONY Series
Fund, Inc. (the "Fund"), the Enterprise Accumulation Trust ("Enterprise"),
Dreyfus Stock Index Fund, The Dreyfus Socially Responsible Growth Fund, Inc.,
Fidelity Variable Insurance Products Funds, or Janus Aspen Series Fund
(collectively, the "Funds"). The Funds are registered under the 1940 Act as open
end, diversified, management investment companies. The Fund and Enterprise are
affiliated with MONY.
A full presentation of the related financial statements and footnotes of
the Funds are contained on pages hereinafter and should be read in conjunction
with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES:
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
Investments:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset value is based upon market or fair
valuations of the securities held in each of the corresponding portfolios of the
Funds. For the money market portfolios, the net asset value is based on the
amortized cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses on redemption of investments in the portfolios of the
Funds are determined on the identified cost-basis. Dividend income is recorded
on ex-dividend date. Dividend income includes distributions of net investment
income and net realized gains received from the respective portfolios of the
Funds. Dividend income received is reinvested in additional shares of the
respective portfolios of the Funds.
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based upon current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
F-16
<PAGE> 87
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS:
MONY America is the legal owner of the assets of the Variable Account.
Purchase payments received from MONY America by the Variable Account
represent gross purchase payments recorded by MONY America less deductions
retained as compensation for any premium taxes.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 1.25% of the average daily net
assets of each of the subaccounts of MONY Custom Master. As investment adviser
to the Fund, it receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENT TRANSACTIONS:
Cost of shares acquired and the proceeds from shares redeemed by each
subaccount during the period ended December 31, 1999 were as follows:
<TABLE>
<CAPTION>
COST OF SHARES PROCEEDS FROM
MONY CUSTOM MASTER SUBACCOUNTS ACQUIRED SHARES REDEEMED
------------------------------ --------------- ---------------
<S> <C> <C>
MONY Series Fund, Inc.
Intermediate Term Bond Portfolio........................ $ 10,952,115 $ 2,185,748
Long Term Bond Portfolio................................ 16,932,328 4,114,199
Government Securities Portfolio......................... 17,089,687 2,936,059
Money Market Portfolio.................................. 153,910,849 76,060,106
Enterprise Accumulation Trust
Equity Portfolio........................................ 30,540,099 7,293,275
Small Company Value Portfolio........................... 47,031,134 6,451,151
Managed Portfolio....................................... 149,599,187 28,943,951
International Growth Portfolio.......................... 14,898,543 3,152,059
High Yield Bond Portfolio............................... 18,216,612 3,153,321
Growth Portfolio........................................ 229,613,909 37,373,953
Growth and Income Portfolio............................. 90,701,959 10,523,582
Small Company Growth Portfolio.......................... 18,158,671 2,043,402
Equity Income Portfolio................................. 31,004,297 4,417,915
Capital Appreciation Portfolio.......................... 26,744,870 5,038,134
Multi-Cap Growth Portfolio.............................. 38,964,748 1,798,740
Balanced Portfolio...................................... 9,794,655 666,559
Dreyfus
Dreyfus Stock Index Fund................................ 44,372,739 2,917,288
The Dreyfus Socially Responsible Growth Fund, Inc. ..... 5,828,410 413,532
Fidelity Variable Insurance Products Funds
VIP Growth Portfolio.................................... 20,407,138 1,124,739
VIP II Contrafund Portfolio............................. 24,933,110 1,912,291
VIP III Growth Opportunities Portfolio.................. 9,412,703 716,593
</TABLE>
F-17
<PAGE> 88
MONY AMERICA
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENT TRANSACTIONS: (CONTINUED)
<TABLE>
<CAPTION>
COST OF SHARES PROCEEDS FROM
MONY CUSTOM MASTER SUBACCOUNTS ACQUIRED SHARES REDEEMED
------------------------------ --------------- ---------------
<S> <C> <C>
Janus Aspen Series Fund
Aggressive Growth Portfolio............................. $ 27,260,606 $ 1,562,203
Balanced Portfolio...................................... 20,266,846 1,045,214
Capital Appreciation Portfolio.......................... 30,857,519 1,466,044
Worldwide Growth Portfolio.............................. 20,764,907 1,274,101
</TABLE>
F-18
<PAGE> 89
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholder of
MONY Life Insurance Company of America
In our opinion, the accompanying balance sheets and the related statements
of income and comprehensive income, changes in shareholder's equity and cash
flows present fairly, in all material respects, the financial position of MONY
Life Insurance Company of America (the "Company") at December 31, 1999 and 1998,
and the results of its operations and its cash flows for each of the three years
in the period ended December 31, 1999, in conformity with accounting principles
generally accepted in the United States. These financial statements are the
responsibility of the Company's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with auditing standards generally
accepted in the United States, which 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, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 10, 2000
F-19
<PAGE> 90
MONY LIFE INSURANCE COMPANY OF AMERICA
BALANCE SHEETS
DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
-------- --------
($ IN MILLIONS)
<S> <C> <C>
ASSETS
INVESTMENTS:
Fixed maturity securities available-for-sale, at fair
value..................................................... $1,048.8 $1,044.2
Mortgage loans on real estate (Note 8)...................... 165.0 120.1
Policy loans................................................ 58.8 52.1
Real estate (Note 8)........................................ 6.9 8.3
Other invested assets....................................... 2.3 4.7
-------- --------
1,281.8 1,229.4
Cash and cash equivalents................................... 28.9 133.4
Accrued investment income................................... 20.4 19.5
Amounts due from reinsurers................................. 18.6 24.4
Deferred policy acquisition costs........................... 406.4 318.6
Other assets................................................ 24.9 15.3
Separate account assets..................................... 4,387.2 4,148.8
-------- --------
Total assets.............................................. $6,168.2 $5,889.4
======== ========
LIABILITIES AND SHAREHOLDER'S EQUITY
Future policy benefits...................................... $ 123.4 $ 112.0
Policyholders' account balances............................. 1,154.1 1,187.1
Other policyholders' liabilities............................ 54.0 56.9
Accounts payable and other liabilities...................... 79.5 67.9
Note payable to affiliate................................... 49.0 0.0
Current federal income taxes payable........................ (2.3) 13.2
Deferred federal income taxes (Note 5)...................... 19.4 13.7
Separate account liabilities................................ 4,387.2 4,148.8
-------- --------
Total liabilities......................................... 5,864.3 5,599.6
Commitments and contingencies (Notes 12)
Common stock $1.00 par value; 5,000,000 shares authorized,
2,500,000 issued and outstanding.......................... 2.5 2.5
Capital in excess of par.................................... 199.7 189.7
Retained earnings........................................... 109.0 89.6
Accumulated other comprehensive income/(loss)............... (7.3) 8.0
-------- --------
Total shareholder's equity................................ 303.9 289.8
-------- --------
Total liabilities and shareholder's equity................ $6,168.2 $5,889.4
======== ========
</TABLE>
See accompanying notes to financial statements.
F-20
<PAGE> 91
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
REVENUES:
Universal life and investment-type product policy fees...... $143.1 $122.0 $100.8
Premiums.................................................... 9.2 1.7 0.1
Net investment income (Note 6).............................. 94.7 94.6 99.1
Net realized gains (losses) on investments (Note 6)......... (0.3) 7.1 2.7
Other income................................................ 7.6 7.6 5.5
------ ------ ------
254.3 233.0 208.2
------ ------ ------
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 43.6 34.9 30.6
Interest credited to policyholders' account balances........ 63.5 65.1 72.5
Amortization of deferred policy acquisition costs........... 43.5 35.5 46.3
Other operating costs and expenses.......................... 73.8 75.6 46.0
------ ------ ------
224.4 211.1 195.4
------ ------ ------
Income before income taxes.................................. 29.9 21.9 12.8
Income tax expense.......................................... 10.5 7.7 4.5
------ ------ ------
Net income.................................................. 19.4 14.2 8.3
Other comprehensive income/(loss), net (Note 6)............. (15.3) 1.1 3.3
------ ------ ------
Comprehensive income........................................ $ 4.1 $ 15.3 $ 11.6
====== ====== ======
</TABLE>
See accompanying notes to financial statements.
F-21
<PAGE> 92
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<TABLE>
<CAPTION>
ACCUMULATED TOTAL
CAPITAL OTHER SHARE-
COMMON IN EXCESS RETAINED COMPREHENSIVE HOLDER'S
STOCK OF PAR EARNINGS INCOME/(LOSS) EQUITY
------ --------- -------- ------------- --------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1996............. $2.5 $166.4 $ 67.1 $ 3.6 $239.6
Capital contribution................... 10.8 10.8
Comprehensive income:
Net income........................... 8.3 8.3
Other comprehensive income:
Unrealized gains on investments,
net of unrealized losses,
reclassification adjustments,
and taxes (Note 6).............. 3.3 3.3
---- ------ ------ ------ ------
Comprehensive income................... 11.6
------
Balance, December 31, 1997............. 2.5 177.2 75.4 6.9 262.0
Capital contribution................... 12.5 12.5
Comprehensive income:
Net income........................... 14.2 14.2
Other comprehensive income:
Unrealized gains on investments,
net of unrealized losses,
reclassification adjustments,
and taxes (Note 6).............. 1.1 1.1
---- ------ ------ ------ ------
Comprehensive income................... 15.3
------
Balance, December 31, 1998............. 2.5 189.7 89.6 8.0 289.8
Capital contribution................... 10.0 10.0
Comprehensive income:
Net income........................... 19.4 19.4
Other comprehensive income:
Unrealized losses on investments,
net of unrealized gains,
reclassification adjustments,
and taxes (Note 6).............. (15.3) (15.3)
---- ------ ------ ------ ------
Comprehensive income/(loss)............ (15.3)
------
Balance, December 31, 1999............. $2.5 $199.7 $109.0 $ (7.3) $303.9
==== ====== ====== ====== ======
</TABLE>
See accompanying notes to financial statements.
F-22
<PAGE> 93
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
------- ------- -------
($ IN MILLIONS)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES (SEE NOTE 2):
Net income.................................................. $ 19.4 $ 14.2 $ 8.3
Adjustments to reconcile net income to net cash (used in)
operating activities:
Interest credited to policyholders' account balances...... 65.5 64.1 71.5
Universal life and investment-type product policy fee
income................................................. (102.9) (107.0) (98.1)
Capitalization of deferred policy acquisition costs....... (96.8) (74.9) (73.8)
Amortization of deferred policy acquisition costs......... 43.5 35.5 46.3
Provision for depreciation and amortization............... 0.2 1.0 0.4
Provision for deferred federal income taxes............... 13.9 (1.1) (13.4)
Net realized gains on investments......................... 0.3 (7.1) (2.7)
Change in other assets and accounts payable and other
liabilities............................................ 6.3 45.3 29.6
Change in future policy benefits.......................... 4.4 5.9 0.2
Change in other policyholders' liabilities................ (2.8) 15.7 5.0
Change in current federal income taxes payable............ (15.6) (4.6) (11.2)
------- ------- -------
Net cash (used in) operating activities..................... (64.6) (13.0) (37.9)
------- ------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales, maturities or repayments of:
Fixed maturities.......................................... 289.6 171.4 130.6
Equity securities......................................... 0.0 0.8 1.0
Mortgage loans on real estate............................. 24.5 37.6 37.7
Real estate............................................... 1.2 17.0 18.6
Other invested assets..................................... 3.9 0.6 1.5
Acquisitions of investments:
Fixed maturities.......................................... (352.3) (109.2) (157.6)
Equity securities......................................... (0.2) (0.1) (0.1)
Mortgage loans on real estate............................. (69.7) (24.3) (13.6)
Real estate............................................... (0.7) (0.6) (1.5)
Other invested assets..................................... (0.5) (0.3) (0.1)
Policy loans, net......................................... (6.6) (6.2) (4.4)
Other, net................................................ 0.5 (0.5) 0.3
------- ------- -------
Net cash (used in)/provided by investing activities......... $(110.3) $ 86.2 $ 12.4
------- ------- -------
</TABLE>
See accompanying notes to financial statements.
F-23
<PAGE> 94
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CASH FLOWS -- (CONTINUED)
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
--------- ------- -------
($ IN MILLIONS)
<S> <C> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Note payable to affiliate.............................. $ 50.5 $ 0.0 $ 0.0
Repayments of note to affiliate........................ (1.5) 0.0 0.0
Receipts from annuity and universal life policies
credited to policyholders' account balances.......... 1,395.4 811.8 810.4
Return of policyholders' account balances on annuity
policies and universal life policies................. (1,384.0) (797.6) (829.1)
Capital contribution................................... 10.0 0.0 0.0
--------- ------- -------
Net cash provided by/(used in) financing activities......... 70.4 14.2 (18.7)
--------- ------- -------
Net increase/(decrease) in cash and cash equivalents........ (104.5) 87.4 (44.2)
Cash and cash equivalents, beginning of year................ 133.4 46.0 90.2
--------- ------- -------
Cash and cash equivalents, end of year...................... $ 28.9 $ 133.4 $ 46.0
========= ======= =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes................................................ $ 12.1 $ 13.4 $ 29.1
Interest.................................................... $ 2.5 $ -- $ --
</TABLE>
See accompanying notes to financial statements.
F-24
<PAGE> 95
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND DESCRIPTION OF BUSINESS:
MONY Life Insurance Company of America (the "Company"), an Arizona stock
life insurance company, is a wholly-owned subsidiary of MONY Life Insurance
Company of New York ("MONY Life"), formerly The Mutual Life Insurance Company of
New York, which converted from a mutual life insurance company to a stock life
insurance company (the "Demutualization"). MONY Life is a wholly-owned
subsidiary of The MONY Group, Inc. (the "MONY Group").
The Company's primary business is to provide asset accumulation and life
insurance products to business owners, growing families, and pre-retirees. The
Company's insurance and financial products are marketed and distributed directly
to individuals primarily through MONY Life's career agency sales force. These
products are sold throughout the United States (except New York) and Puerto
Rico.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Presentation
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles ("GAAP"). The preparation of financial
statements in conformity with GAAP 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 revenues and expenses during the
reporting period. Actual results could differ significantly from those
estimates. The most significant estimates made in conjunction with the
preparation of the Company's financial statements include those used in
determining (i) deferred policy acquisition costs, (ii) the liability for future
policy benefits, and (iii) valuation allowances for mortgage loans and real
estate to be disposed of, and impairment writedowns for real estate held for
investment.
During 1997, the Company adopted Statement of Financial Accounting
Standards ("SFAS") No. 130, Reporting Comprehensive Income, which was issued by
the Financial Accounting Standards Board ("FASB") in June of 1997. SFAS No. 130
established standards for reporting and display of comprehensive income and its
components in general purpose financial statements. All periods presented herein
reflect the provisions of SFAS No. 130.
Valuation of Investments and Realized Gains and Losses
All of the Company's fixed maturity securities are classified as
available-for-sale and are reported at estimated fair value. Unrealized gains
and losses on fixed maturity securities are reported as a separate component of
other comprehensive income, net of deferred income taxes and an adjustment for
the effect on deferred policy acquisition costs that would have occurred if such
gains and losses had been realized. The cost of fixed maturity securities is
adjusted for impairments in value deemed to be other than temporary. These
adjustments are reflected as realized losses on investments. Realized gains and
losses on sales of investments are determined on the basis of specific
identification.
Mortgage loans on real estate are stated at their unpaid principal
balances, net of valuation allowances. Valuation allowances are established for
the excess of the carrying value of a mortgage loan over its estimated fair
value when the loan is considered to be impaired. Mortgage loans are considered
to be impaired when, based on current information and events, it is probable
that the Company will be unable to collect all amounts due according to the
contractual terms of the loan agreement. Estimated fair value is based on either
the present value of expected future cash flows discounted at the loan's
original effective interest rate, or the loan's observable market price (if
considered to be a practical expedient), or the fair value of the collateral if
the loan is collateral dependent and if foreclosure of the loan is considered
probable. The provision for loss is reported as a realized loss on investment.
Loans in foreclosure and loans considered to be impaired, other than
restructured loans, are placed on non-accrual status. Interest received on
non-accrual status mortgage loans is
F-25
<PAGE> 96
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
included in investment income in the period received. Interest income on
restructured mortgage loans is accrued at the restructured loans' interest rate.
Real estate held for investment, as well as related improvements, is
generally stated at cost less depreciation. Depreciation is determined using the
straight-line method over the estimated useful life of the asset (which may
range from 5 to 40 years). Cost is adjusted for impairment whenever events or
changes in circumstances indicate that the carrying amount of the asset may not
be recoverable. In performing the review for recoverability, management
estimates the future cash flows expected from real estate investments, including
the proceeds on disposition. If the sum of the expected undiscounted future cash
flows is less than the carrying amount of the real estate, an impairment loss is
recognized. Impairment losses are based on the estimated fair value of the real
estate, which is generally computed using the present value of expected future
cash flows from the real estate discounted at a rate commensurate with the
underlying risks. Real estate acquired in satisfaction of debt is recorded at
estimated fair value at the date of foreclosure. Real estate that management
intends to sell is classified as "to be disposed of". Real estate to be disposed
of is reported at the lower of its current carrying value or estimated fair
value less estimated sales costs. Changes in reported values relating to real
estate to be disposed of and impairments of real estate held for investment are
reported as realized gains or losses on investments.
Policy loans are carried at their unpaid principal balances.
Cash and cash equivalents include cash on hand, amounts due from banks and
highly liquid debt instruments with an original maturity of three months or
less.
Recognition of Insurance Revenue and Related Benefits
Premiums from universal life and investment-type contracts are reported as
deposits to policyholders' account balances. Revenue from these types of
products consists of amounts assessed during the period against policyholders'
account balances for policy administration charges, cost of insurance and
surrender charges. Policy benefits charged to expense include benefit claims
incurred in the period in excess of the related policyholders' account balance.
Premiums from non-participating term life and annuity policies with life
contingencies are recognized as premium income when due. Benefits and expenses
are matched with such income so as to result in the recognition of profits over
the life of the contracts. This match is accomplished by means of the provision
for liabilities for future policy benefits and the deferral and subsequent
amortization of policy acquisition costs.
Deferred Policy Acquisition Costs ("DAC")
The costs of acquiring new business, principally commissions, underwriting,
agency, and policy issue expenses, all of which vary with and are primarily
related to the production of new business, are deferred.
For universal life products and investment-type products, DAC is amortized
over the expected life of the contracts (ranging from 15 to 30 years) as a
constant percentage based on the present value of estimated gross profits
expected to be realized over the life of the contracts using the initial
locked-in discount rate. The discount rate for all products is 8%. Estimated
gross profits arise principally from investment results, mortality and expense
margins and surrender charges.
For non-participating term policies, DAC is amortized over the expected
life of the contracts (ranging from 5 to 20 years) in proportion to premium
revenue recognized.
DAC is subject to recoverability testing at the time of policy issuance and
loss recognition testing at the end of each accounting period. The effect on the
amortization of DAC of revisions in estimated experience is reflected in
earnings in the period such estimates are revised. In addition, the effect on
the DAC asset that
F-26
<PAGE> 97
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
would result from the realization of unrealized gains (losses) is recognized
through an offset to Other Comprehensive Income as of the balance sheet date.
Policyholders' Account Balances and Future Policy Benefits
Policyholders' account balances for universal life and investment-type
contracts represent an accumulation of gross premium payments plus credited
interest less expense and mortality charges and withdrawals. The weighted
average interest crediting rate for universal life products was approximately
5.8%, 5.7%, and 5.8% for the years ended December 31, 1999, 1998, and 1997,
respectively. The weighted average interest crediting rate for investment-type
products was approximately 5.4%, 5.5% and 5.7% for each of the years ended
December 31, 1999, 1998, and 1997, respectively.
GAAP reserves for non-participating term life policies are calculated using
a net level premium method on the basis of actuarial assumptions equal to
expected investment yields, mortality, terminations, and expenses applicable at
the time the insurance contracts are made, including a provision for the risk of
adverse deviation.
Federal Income Taxes
The Company files a consolidated federal income tax return with its parent,
MONY Life, along with MONY Life's other life and non-life subsidiaries. Deferred
income tax assets and liabilities are recognized based on the difference between
financial statement carrying amounts and income tax bases of assets and
liabilities using enacted income tax rates and laws.
The method of allocation between the companies is subject to written
agreement, approved by the Board of Directors. The allocation of federal income
taxes will be based upon separate return calculations with current credit for
losses and other federal income tax credits provided to the life insurance
members of the affiliated group. Intercompany balances are settled annually in
the fourth quarter of the year in which the return is filed.
Reinsurance
The Company has reinsured certain of its life insurance and annuity
business with life contingencies with MONY Life and other insurance companies
under various agreements. Amounts due from reinsurers are estimated based on
assumptions consistent with those used in establishing the liabilities related
to the underlying reinsured contracts. Policy and contract liabilities are
reported gross of reserve credits. Gains on reinsurance are deferred and
amortized into income over the remaining life of the underlying reinsured
contracts.
In determining whether a reinsurance contract qualifies for reinsurance
accounting, SFAS No. 113 "Accounting and Reporting for Reinsurance of
Short-Duration and Long-Duration Contracts" requires that there be a "reasonable
possibility" that the reinsurer may realize a "significant loss" from assuming
insurance risk under the contract. In making this assessment, the Company
projects the results of the policies reinsured under the contract under various
scenarios and assesses the probability of such results actually occurring. The
projected results represent the present value of all the cash flows under the
reinsurance contract. The Company generally defines a "reasonable possibility"
as having a probability of at least 10%. In assessing whether the projected
results of the reinsured business constitute a "significant loss", the Company
considers: (i) the ratio of the aggregate projected loss, discounted at an
appropriate rate of interest (the "aggregate projected loss"), to an estimate of
the reinsurer's investment in the contract, as hereafter defined, and (ii) the
ratio of the aggregate projected loss to an estimate of the total premiums to be
received by the reinsurer under the contract discounted at an appropriate rate
of interest.
F-27
<PAGE> 98
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
The reinsurer's investment in a reinsurance contract consists of amounts
paid to the ceding company at the inception of the contract (e.g. expense
allowances and the excess of liabilities assumed by the reinsurer over the
assets transferred to the reinsurer under the contract) plus the amount of
capital required to support such business consistent with prudent business
practices, regulatory requirements, and the reinsurer's credit rating. The
Company estimates the capital required to support such business based on what it
considers to be an appropriate level of risk-based capital in light of
regulatory requirements and prudent business practices.
Separate Accounts
Separate accounts are established in conformity with insurance laws and are
generally not chargeable with liabilities that arise from any other business of
the Company. Separate account assets are subject to general account claims only
to the extent that the value of such assets exceeds the separate account
liabilities. Investments held in separate accounts and liabilities of the
separate accounts are reported separately as assets and liabilities.
Substantially all separate account assets are reported at estimated fair value.
Investment income and gains or losses on the investments of separate accounts
accrue directly to contractholders and, accordingly, are not reflected in the
Company's statements of income and cash flows. Fees charged to the separate
accounts by the Company (including mortality charges, policy administration fees
and surrender charges) are reflected in the Company's revenues.
Statements of Cash Flows -- Non-cash Transactions
For the years ended December 31, 1999, 1998, and 1997, respectively, real
estate of $0.0 million, $0.5 million, and $0.0 million was acquired in
satisfaction of debt. At December 31, 1999 and 1998, the Company owned real
estate acquired in satisfaction of debt of $6.9 million and $8.0 million,
respectively.
New Accounting Pronouncements
In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." SFAS 133 requires all derivatives to be
recognized in the statement of financial position as either assets or
liabilities and measured at fair value. The corresponding derivative gains and
losses should be reported based on the hedge relationship that exists, if there
is one. Changes in the fair value of derivatives that are not designated as
hedges or that do not meet the hedge accounting criteria in SFAS 133, are
required to be reported in earnings. SFAS 133, as amended by SFAS 137, is
effective for all fiscal quarters of the fiscal years beginning after June 15,
2000. SFAS 137 delayed the effective date of SFAS 133 by one year. Adoption of
SFAS 133 is not expected to have a material effect on the Company's financial
condition or results of operations.
3. RELATED PARTY TRANSACTIONS:
MONY Life has a guarantee outstanding to one state that the statutory
surplus of the Company will be maintained at amounts at least equal to the
minimum surplus for admission to that states.
At December 31, 1999 and 1998, approximately 11% and 23% of the Company's
investments in mortgages were held through joint participation with MONY Life,
respectively. In addition, 100% of the Company's real estate and joint venture
investments were held through joint participation with MONY Life at December 31,
1999 and 1998.
The Company and MONY Life are parties to an agreement whereby MONY Life
agrees to reimburse the Company to the extent that the Company's recognized loss
as a result of mortgage loan default or foreclosure or subsequent sale of the
underlying collateral exceeds 75% of the appraised value of the loan at
origination for each such mortgage loan. Pursuant to the agreement, the Company
received payments from MONY Life of $0.0 million, $0.1 million and $0.1 million
for the years ending December 31, 1999, 1998 and 1997.
F-28
<PAGE> 99
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
The Company has a service agreement with MONY Life whereby MONY Life
provides personnel services, facilities, supplies and equipment to the Company
to conduct its business. The associated costs related to the service agreement
are allocated to the Company based on methods that management believes are
reasonable, including a review of the nature of such costs and time studies
analyzing the amount of employee compensation costs incurred by the Company. For
the years ended December 31, 1999, 1998, and 1997, the Company incurred expenses
of $51.0 million, $59.8 million and $30.5 million as a result of such
allocations. Accordingly, the Company recorded capital contributions from MONY
Life of $10.0 million, $12.5 million, and $10.8 million during 1999, 1998 and
1997 respectively. At December 31, 1999 and 1998 the Company had a payable to
MONY Life in connection with this service agreement of $10.3 million and $9.0
million, respectively, which is reflected in Accounts Payable and Other
Liabilities.
The Company has an investment advisory agreement with MONY Life whereby
MONY Life provides investment advisory services with respect to the investment
and management of the Company's investment portfolio. The amount of expenses
incurred by the Company related to this agreement was $0.8 million, $0.9 million
and $1.0 million for 1999, 1998 and 1997, respectively. In addition, the Company
recorded an intercompany payable of $66,816 and $88,401 at December 31, 1999 and
1998, respectively, related to this agreement which is included in Accounts
Payable and Other Liabilities in the balance sheet.
In addition to the agreements discussed above, the Company has various
other service and investment advisory agreements with MONY Life and affiliates
of the Company. The amount of expenses incurred by the Company related to these
agreements was $4.0 million, $2.0 million and $2.6 million for 1999, 1998 and
1997, respectively. In addition, the Company recorded an intercompany
(receivable)/payable of $0.2 million and $(0.2) million at December 31, 1999 and
1998, respectively, related to these agreements.
The Company has purchased bonds issued by the New York City Industrial
Development Agency for the benefit of MONY Life for its consolidation of site
locations to New York City in 1997, and subsequent spending on tenant
improvements, and furniture, fixtures, and equipment related to the New York
City site. Debt service under the bonds is funded by lease payments by MONY Life
to the bond trustee for the benefit of the fond holder (the Company). The bonds
are held by the Company and are listed as affiliated bonds. The carrying value
of these bonds is $10.9 million and $14.7 million as of December 31, 1999, and
December 31, 1998, respectively. The bonds outstanding as of December 31, 1999
mature on December 31, 2013, and have interest rates from 6.40% to 7.25%.
The Company entered into a modified coinsurance agreement with U.S.
Financial Life Insurance Company ("USFL"), an affiliate, effective January 1,
1999, whereby the Company agrees to reinsure 90% of all level term life
insurance policies written by USFL after January 1, 1999. Under the agreement,
the Company will share in all premiums and benefits for such policies based on
the 90% quota share percentage, after consideration of existing reinsurance
agreements previously in force on this business. In addition, the Company will
reimburse USFL for its quota share of expense allowances, as defined in the
agreement. At December 31, 1999, the Company recorded a payable of $7.8 million
to USFL in connection with this agreement which is included in Accounts Payable
and Other Liabilities in the balance sheet.
On March 5, 1999, the Company borrowed $50.5 million from MONY Benefits
Management Corp. ("MBMC"), an affiliate, in exchange for a note payable in the
same amount. The note bears interest at 6.75% per annum and matures on March 5,
2014. Principal and interest are payable quarterly to MBMC. The carrying value
of the note as of December 31, 1999 is $49.0 million.
F-29
<PAGE> 100
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
4. DEFERRED POLICY ACQUISITION COSTS:
Policy acquisition costs deferred and amortized in 1999, 1998 and 1997 are
as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year.................................. $318.6 $281.6 $262.3
Cost deferred during the year............................... 96.8 75.0 73.8
Amortized to expense during the year........................ (43.5) (35.5) (46.3)
Effect on DAC from unrealized gains (losses) (see Note 2)... 34.5 (2.5) (8.2)
------ ------ ------
Balance, end of year........................................ $406.4 $318.6 $281.6
====== ====== ======
</TABLE>
5. FEDERAL INCOME TAXES:
The Company files a consolidated federal income tax return with MONY Life
and MONY Life's other subsidiaries. Federal income taxes have been calculated in
accordance with the provisions of the Internal Revenue Code of 1986, as amended.
A summary of the Federal income tax expense (benefit) is presented below:
<TABLE>
<CAPTION>
1999 1998 1997
----- ----- ------
($ IN MILLIONS)
<S> <C> <C> <C>
Federal income tax expense (benefit):
Current................................................... $(3.4) $ 8.8 $ 17.9
Deferred.................................................. 13.9 (1.1) (13.4)
----- ----- ------
Total.................................................. $10.5 $ 7.7 $ 4.5
===== ===== ======
</TABLE>
Federal income taxes reported in the statements of income may be different
from the amounts determined by multiplying the earnings before federal income
taxes by the statutory federal income tax rate of 35%. The sources of the
difference and the tax effects of each are as follows:
<TABLE>
<CAPTION>
1999 1998 1997
----- ----- -----
($ IN MILLIONS)
<S> <C> <C> <C>
Tax at statutory rate....................................... $10.5 $ 7.7 $ 4.5
Dividends received deduction................................ (1.1) (1.1) (1.2)
Other....................................................... 1.1 1.1 1.2
----- ----- -----
Provision for income taxes.................................. $10.5 $ 7.7 $ 4.5
===== ===== =====
</TABLE>
The Company's federal income tax returns for years through 1993 have been
examined by the Internal Revenue Service ("IRS"). No material adjustments were
proposed by the IRS as a result of these examinations. In the opinion of
management, adequate provision has been made for any additional taxes which may
become due with respect to open years.
F-30
<PAGE> 101
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
The components of deferred tax liabilities and assets at December 31, 1999
and 1998 are as follows:
<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
Deferred policy acquisition costs........................... $117.0 $ 91.8
Fixed maturities............................................ 0.0 12.0
Other, net.................................................. 7.8 4.4
------ ------
Total deferred tax liabilities.............................. 124.8 108.2
------ ------
Policyholder and separate account liabilities............... 96.5 93.7
Real estate and mortgages................................... 0.7 0.8
Fixed maturities............................................ 8.2 0.0
------ ------
Total deferred tax assets................................... 105.4 94.5
------ ------
Net deferred tax asset/(liability).......................... $(19.4) $(13.7)
====== ======
</TABLE>
The Company is required to establish a valuation allowance for any portion
of the deferred tax asset that management believes will not be realized. In the
opinion of management, it is more likely than not that it will realize the
benefit of the deferred tax assets and, therefore, no such valuation allowance
has been established.
6. INVESTMENT INCOME, REALIZED AND UNREALIZED INVESTMENT GAINS (LOSSES), AND
OTHER COMPREHENSIVE INCOME:
Net investment income for the years ended December 31, 1999, 1998 and 1997
was derived from the following sources:
<TABLE>
<CAPTION>
1999 1998 1997
----- ----- ------
($ IN MILLIONS)
<S> <C> <C> <C>
NET INVESTMENT INCOME
Fixed maturities............................................ $77.0 $77.2 $ 78.4
Mortgage loans.............................................. 11.6 11.0 12.1
Real estate................................................. 0.5 0.5 2.0
Policy loans................................................ 3.8 3.6 3.5
Other investments (including cash & cash equivalents)....... 6.6 5.3 6.4
----- ----- ------
Total investment income..................................... 99.5 97.6 102.4
Investment expenses......................................... 4.8 3.0 3.3
----- ----- ------
Net investment income....................................... $94.7 $94.6 $ 99.1
===== ===== ======
</TABLE>
Net realized gains (losses) on investments for the years ended December 31,
1999, 1998 and 1997 are summarized as follows:
<TABLE>
<CAPTION>
1999 1998 1997
----- ---- -----
($ IN MILLIONS)
<S> <C> <C> <C>
NET REALIZED GAINS (LOSSES) ON INVESTMENTS
Fixed maturities............................................ $(0.2) $2.6 $(0.7)
Mortgage loans.............................................. (0.3) 1.4 2.4
Real estate................................................. (0.5) 2.5 0.5
Other invested assets....................................... 0.7 0.6 0.5
----- ---- -----
Net realized gains/(losses) on investments.................. $(0.3) $7.1 $ 2.7
===== ==== =====
</TABLE>
F-31
<PAGE> 102
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
The net change in unrealized investment gains (losses) represents the only
component of other comprehensive income for the years ended December 31, 1999,
1998, and 1997. Following is a summary of the change in unrealized investment
gains (losses) net of related deferred income taxes and adjustment for deferred
policy acquisition costs (see Note 2), which are reflected in Accumulated Other
Comprehensive Income for the periods presented:
<TABLE>
<CAPTION>
1999 1998 1997
------ ----- -----
($ IN MILLIONS)
<S> <C> <C> <C>
CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS, NET
Fixed maturities............................................ $(58.0) $ 4.8 $13.2
Other....................................................... 0.0 (0.6) 0.1
------ ----- -----
Subtotal.................................................... (58.0) 4.2 13.3
Effect on unrealized gains (losses) on investments
attributable to:
DAC....................................................... 34.5 (2.5) (8.2)
Deferred federal income taxes............................. 8.2 (0.6) (1.8)
------ ----- -----
Change in unrealized gains (losses) on investments, net..... $(15.3) $ 1.1 $ 3.3
====== ===== =====
</TABLE>
The following table sets forth the reclassification adjustments required
for the years ended December 31, 1999, 1998, and 1997 to avoid double-counting
in comprehensive income items that are included as part of net income for a
period that also had been part of other comprehensive income in earlier periods:
<TABLE>
<CAPTION>
1999 1998 1997
------ ----- ----
($ IN MILLIONS)
<S> <C> <C> <C>
RECLASSIFICATION ADJUSTMENTS
Unrealized gains (losses) on investments arising during
period.................................................... $(15.4) $ 1.9 $3.3
Reclassification adjustment for gains included in net
income.................................................... 0.1 (0.8) 0.0
------ ----- ----
Unrealized gains (losses) on investments, net of
reclassification adjustments.............................. $(15.3) $ 1.1 $3.3
====== ===== ====
</TABLE>
Unrealized gains (losses) on investments arising during the period reported
in the above table for the years ended December 31, 1999, 1998 and 1997 are net
of income tax expense (benefit) of $(8.2) million, $0.1 million, and $1.8
million, respectively, and $34.3 million, $(0.5) million, and $(8.2) million,
respectively, relating to the effect of such unrealized gains (losses) on DAC.
Reclassification adjustments reported in the above table for the years
ended December 31, 1999, 1998 and 1997 are net of income tax expense (benefit)
of $0.0 million, $0.5 million and $0.0 million, respectively, and $0.2 million,
$(2.0) million and $0.0 million, respectively, relating to the effect of such
amounts on DAC.
F-32
<PAGE> 103
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
7. INVESTMENTS:
Fixed Maturity Securities Available-for-Sale:
The amortized cost, gross unrealized gains and losses, and estimated fair
value of fixed maturity securities available-for-sale as of December 31, 1999
and December 31, 1998 are as follows:
<TABLE>
<CAPTION>
GROSS GROSS
UNREALIZED UNREALIZED ESTIMATED
AMORTIZED COST GAINS LOSSES FAIR VALUE
-------------------- ------------- ------------- ----------------------
1999 1998 1999 1998 1999 1998 1999 1998
-------- -------- ---- ----- ----- ---- -------- ----------
($ IN MILLIONS)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
US Treasury securities and
obligations of US
government agencies...... $ 26.6 $ 5.3 $0.0 $ 0.0 $ 1.1 $0.0 $ 25.5 $ 5.3
Collateralized mortgage
obligations:
Government
agency-backed.......... 82.4 106.3 0.3 1.9 0.4 0.0 82.3 108.2
Non-agency backed........ 34.4 37.7 0.6 1.8 0.3 0.0 34.7 39.5
Other asset-backed
securities:
Government
agency-backed.......... 0.1 0.1 0.0 0.0 0.0 0.0 0.1 0.1
Non-agency backed........ 104.6 83.4 0.2 1.9 4.4 0.3 100.4 85.0
Utilities.................. 113.2 101.9 0.2 3.4 3.4 2.7 110.0 102.6
Corporate bonds............ 704.2 664.8 2.7 24.8 22.0 0.8 684.9 688.8
Affiliates................. 11.3 14.7 0.0 0.0 0.4 0.0 10.9 14.7
-------- -------- ---- ----- ----- ---- -------- --------
Total............. $1,076.8 $1,014.2 $4.0 $33.8 $32.0 $3.8 $1,048.8 $1,044.2
======== ======== ==== ===== ===== ==== ======== ========
</TABLE>
The carrying value of the Company's fixed maturity securities at December
31, 1999 and 1998 is net of adjustments for impairments in value deemed to be
other than temporary of $0.5 million and $0.5 million, respectively.
At December 31, 1999 and 1998, there were no fixed maturity securities
which were non-income producing for the twelve months preceding such dates.
The Company classifies fixed maturity securities which, (i) are in default
as to principal or interest payments, (ii) are to be restructured pursuant to
commenced negotiations, (iii) went into bankruptcy subsequent to acquisition or
(iv) are deemed to have other than temporary impairments to value, as "problem
fixed maturity securities." At December 31, 1999 and 1998, the carrying value of
problem fixed maturities held by the Company was $4.8 million and $4.4 million,
respectively. In addition, at December 31, 1999 and 1998, the Company held $0.0
million and $2.7 million of fixed maturity securities which had been
restructured. Gross interest income that would have been recorded in accordance
with the original terms of restructured fixed maturity securities amounted to
$0.0 million and $0.3 million for the year ended December 31, 1999 and 1998.
Gross interest income on these fixed maturity securities included in net
investment income aggregated $0.0 million and $0.5 million for the year ended
December 31, 1999 and 1998.
F-33
<PAGE> 104
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
The amortized cost and estimated fair value of fixed maturity securities,
by contractual maturity dates, (excluding scheduled sinking funds) as of
December 31, 1999 are as follows:
<TABLE>
<CAPTION>
1999
-----------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
--------- ----------
($ IN MILLIONS)
<S> <C> <C>
Due in one year or less..................................... $ 75.8 $ 76.2
Due after one year through five years....................... 275.8 274.9
Due after five years through ten years...................... 383.8 366.5
Due after ten years......................................... 119.9 113.7
-------- --------
Subtotal.......................................... 855.3 831.3
Mortgage-backed and other asset-backed securities........... 221.5 217.5
-------- --------
Total............................................. $1,076.8 $1,048.8
======== ========
</TABLE>
Fixed maturity securities that are not due at a single maturity date have
been included in the preceding table in the year of final maturity. Actual
maturities may differ from contractual maturities because borrowers may have the
right to call or prepay obligations with or without call or prepayment
penalties.
Proceeds from sales of fixed maturity securities during 1999, 1998 and 1997
were $80.1 million, $45.1 million and $31.3 million, respectively. Gross gains
of $0.2 million, $0.7 million, and $0.5 million and gross losses of $2.0
million, $0.1 million, and $1.1 million were realized on these sales,
respectively.
8. MORTGAGE LOANS ON REAL ESTATE AND REAL ESTATE
Mortgage loans on real estate at December 31, 1999 and 1998 consist of the
following:
<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
Commercial mortgage loans................................... $ 53.9 $ 28.5
Agricultural and other loans................................ 113.4 93.5
------ ------
Total loans................................................. 167.3 122.0
Less: valuation allowances.................................. (2.3) (1.9)
------ ------
Mortgage loans, net of valuation allowances................. $165.0 $120.1
====== ======
</TABLE>
An analysis of the valuation allowances for 1999, 1998 and 1997 is as
follows:
<TABLE>
<CAPTION>
1999 1998 1997
---- ----- -----
($ IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year.................................. $1.9 $ 2.5 $ 4.6
Increase (decrease) in allowance............................ 0.4 (0.4) (0.3)
Reduction due to pay downs and pay offs..................... 0.0 0.0 (1.8)
Transfers to real estate.................................... 0.0 (0.2) 0.0
---- ----- -----
Balance, end of year........................................ $2.3 $ 1.9 $ 2.5
==== ===== =====
</TABLE>
F-34
<PAGE> 105
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
Impaired mortgage loans along with related valuation allowances were as
follows:
<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
Investment in impaired mortgage loans (before valuation
allowances):
Loans that have valuation allowances...................... $ 9.6 $ 9.4
Loans that do not have valuation allowances............... 4.3 5.8
----- -----
Subtotal............................................... 13.9 15.2
Valuation allowances........................................ (0.5) (0.5)
----- -----
Impaired mortgage loans, net of valuation allowances... $13.4 $14.7
===== =====
</TABLE>
Impaired mortgage loans that do not have valuation allowances are loans
where the net present value of the expected future cash flows related to the
loan or the fair value of the collateral equals or exceeds the recorded
investment in the loan. Such loans primarily consist of restructured loans or
loans on which impairment writedowns were taken prior to the adoption of SFAS
No. 114, "Accounting by Creditors for Impairment of a Loan".
During 1999 and 1998, the average recorded investment in impaired mortgage
loans was approximately $14.1 million and $15.1 million, respectively. During
1999, 1998, and 1997, the Company recognized $1.0 million, $1.1 million, and
$1.1 million, respectively, of interest income on impaired loans.
At December 31, 1999 and 1998, there were no mortgage loans which were
non-income producing for the twelve months preceding such dates.
At December 31, 1999 and 1998, the Company had restructured mortgage loans
of $11.9 million and $14.3 million, respectively. Interest income of $1.0
million, $1.0 million, and $1.0 million was recognized on restructured mortgage
loans in 1999, 1998, and 1997, respectively. Gross interest income on these
loans that would have been recorded in accordance with the original terms of
such loans amounted to approximately $1.2 million in 1999, 1998 and 1997.
The carrying value of real estate is $6.9 million and $8.3 million as of
December 31, 1999 and 1998, respectively. Real estate is categorized are either
real estate to be disposed of or real estate held for investment.
The carrying value of real estate to be disposed of as of December 31, 1999
was $1.6 million, net of $0.5 million relating to impairments taken upon
foreclosure of mortgage loans and $0.2 million of accumulated depreciation.
There was no real estate to be disposed of as of December 31, 1998.
The carrying value of real estate held for investment as of December 31,
1999 was $5.3 million, net of $0.7 million relating to impairments taken upon
foreclosure of mortgage loans and $1.9 million of accumulated depreciation. The
carrying value of real estate held for investment as of December 31, 1998 was
$8.3 million, net of $1.6 million relating to impairments taken upon foreclosure
of mortgage loans and $1.9 million of accumulated depreciation.
At December 31, 1999 and 1998, there was no real estate which was
non-income producing for the twelve months preceding such dates.
The carrying value of impaired real estate as of December 31, 1999 and 1998
was $4.4 million and $8.3 million, respectively. The depreciated cost of such
real estate as of December 31, 1999 and 1998 was $5.8 million and $10.2 million
before impairment writedowns of $1.4 million and $1.9 million, respectively. The
aforementioned impairments occurred primarily as a result of low occupancy
levels and other market related factors. There were no losses recorded during
1999, 1998, and 1997 related to impaired real estate.
F-35
<PAGE> 106
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
9. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS:
The estimated fair values of the Company's financial instruments
approximate their carrying amounts. The methods and assumptions utilized in
estimating the fair values of the Company's financial instruments are summarized
as follows:
Fixed Maturities
The estimated fair values of fixed maturity securities are based upon
quoted market prices, where available. The fair values of fixed maturity
securities not actively traded and other non-publicly traded securities are
estimated using values obtained from independent pricing services or, in the
case of private placements, by discounting expected future cash flows using a
current market interest rate commensurate with the credit quality and term of
the investments.
Mortgage Loans
The fair values of mortgage loans are estimated by discounting expected
future cash flows, using current interest rates for similar loans to borrowers
with similar credit risk. Loans with similar characteristics are aggregated for
purposes of the calculations. The fair value of mortgages in process of
foreclosure is the estimated fair value of the underlying collateral.
Policy Loans
Policy loans are an integral component of insurance contracts and have no
maturity dates. Management has determined that it is not practicable to estimate
the fair value of policy loans.
Separate Account Assets and Liabilities
The estimated fair value of assets held in Separate Accounts is based on
quoted market prices. The fair value of liabilities related to Separate Accounts
is the amount payable on demand, which includes surrender charges.
Investment-Type Contracts
The fair values of annuities are based on estimates of the value of
payments available upon full surrender. The fair values of the Company's
liabilities under guaranteed investment contracts are estimated by discounting
expected cash outflows using interest rates currently offered for similar
contracts with maturities consistent with those remaining for the contracts
being valued.
10. REINSURANCE:
Life insurance business is ceded on a yearly renewable term basis under
various reinsurance contracts. The Company's general practice is to retain no
more than $0.5 million of risk on any one person for individual products and
$0.5 million for last survivor products.
F-36
<PAGE> 107
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
The following table summarizes the effect of reinsurance for the years
indicated:
<TABLE>
<CAPTION>
1999 1998 1997
----- ----- -----
($ IN MILLIONS)
<S> <C> <C> <C>
Direct premiums............................................. $ 7.1 $ 2.5 $ 0.1
Reinsurance assumed......................................... 4.0 0.0 0.0
Reinsurance ceded........................................... (1.9) (0.8) 0.0
----- ----- -----
Net premiums.............................................. $ 9.2 $ 1.7 $ 0.1
===== ===== =====
Universal life and investment type product policy fee income
ceded..................................................... $19.7 $17.4 $16.1
===== ===== =====
Policyholders' benefits ceded............................... $27.8 $21.8 $12.1
===== ===== =====
Policyholders' benefits assumed............................. $ 0.1 $ 0.0 $ 0.0
===== ===== =====
</TABLE>
The Company is contingently liable with respect to ceded insurance should
any reinsurer be unable to meet its obligations under these agreements. To limit
the possibility of such losses, the Company evaluates the financial condition of
its reinsurers and monitors concentration of credit risk.
Effective September 1, 1999, the Company recaptured its reinsurance
agreements with MONY Life for all in force and new business. The Company
simultaneously entered into new reinsurance agreements with third party
reinsurers which reinsured the same block of business as that previously
reinsured by MONY Life. Under the new reinsurance agreements, the Company
increased its retention limits on new business for any one person for individual
products from $0.5 million to $4.0 million and on last survivor products from
$0.5 million to $6.0 million.
11. OFF-BALANCE SHEET RISK AND CONCENTRATION OF CREDIT RISK:
Financial Instruments with Off-Balance Sheet Risk:
Pursuant to a securities lending agreement with a major financial
institution, the Company from time to time lends securities to approved
borrowers. At December 31, 1999 and 1998, securities loaned by the Company under
this agreement had a carrying value of approximately $18.0 million and $4.1
million, respectively. The minimum collateral on securities loaned is 102% of
the market value of the loaned securities. Such securities are marked to market
on a daily basis and the collateral is correspondingly increased or decreased.
Concentration of Credit Risk:
At December 31, 1999 and 1998, the Company had no single investment or
series of investments with a single issuer, (excluding US Treasury securities
and obligations of US government agencies) exceeding 1.7% of total cash and
invested assets.
The Company's fixed maturity securities are diversified by industry type.
The industries that comprise 10% or more of the carrying value of the fixed
maturity securities at December 31, 1999 are Consumer Goods and Services of
$173.0 million (16.5%), Energy of $137.9 million (13.2%), Non-Government Asset/
Mortgage-Backed of $135.1 million (12.9%), Public Utilities of $110.0 million
(10.5%) and Government and Agencies of $107.9 million (10.3%).
At December 31, 1998 the industries that comprise 10% or more of the
carrying value Company's fixed maturity securities were Consumer Goods and
Services of $138.5 million (13.3%), Non-Government Asset/ Mortgage Backed of
$124.5 million (11.9%), Financial Services of $119.8 million (11.5%), Other
Manufacturing $116.4 million (11.1%), Government and Agencies $113.6 million
(10.9%) and Energy $112.1 (10.7%).
F-37
<PAGE> 108
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
The Company holds below investment grade fixed maturity securities with a
carrying value of $55.0 million at December 31, 1999. These investments consist
mostly of privately issued bonds which are monitored by the Company through
extensive internal analysis of the financial condition of the issuers and which
generally include protective debt covenants. At December 31, 1998, the carrying
value of the Company's investments in below investment grade fixed maturity
securities amounted to $52.3 million.
The Company has investments in commercial and agricultural mortgage loans
and real estate. The locations of property collateralizing mortgage loans and
real estate investment carrying values at December 31, 1999 and 1998 are as
follows ($ in millions):
<TABLE>
<CAPTION>
1999 1998
---------------- ---------------
<S> <C> <C> <C> <C>
GEOGRAPHIC REGION
West...................................................... $ 58.9 34.3% $ 54.9 42.7%
Southeast................................................. 45.4 26.4 5.9 4.6
Mountain.................................................. 28.4 16.5 25.9 20.2
Southwest................................................. 14.3 8.3 14.6 11.4
Midwest................................................... 14.2 8.3 13.2 10.3
Northeast................................................. 10.7 6.2 13.9 10.8
------ ------ ------ -----
Total................................................... $171.9 100.0% $128.4 100.0%
====== ====== ====== =====
</TABLE>
The states with the largest concentrations of mortgage loans and real
estate investments at December 31, 1999 are: California, $32.8 million (19.1%);
District of Columbia, $28.4 million (16.5%); Washington, $16.0 million (9.3%);
Texas, $11.5 million (6.7%); New York, $10.7 million (6.2%); Oregon, $10.1
million (5.9%); Arizona, $9.1 million (5.3%); Idaho, $8.9 million (5.2%); and
Missouri, $8.5 million (4.9%).
As of December 31, 1999 and 1998, the real estate and mortgage loan
portfolio by property type were as follows ($ in millions):
<TABLE>
<CAPTION>
1999 1998
---------------- ----------------
<S> <C> <C> <C> <C>
PROPERTY TYPE
Agricultural.............................................. $112.2 65.3% $ 92.5 72.0%
Office buildings.......................................... 46.9 27.3 14.9 11.6
Hotel..................................................... 5.3 3.1 5.1 4.0
Industrial................................................ 2.3 1.3 4.6 3.6
Retail.................................................... 2.0 1.2 6.0 4.7
Other..................................................... 1.8 1.0 3.9 3.0
Apartment buildings....................................... 1.4 0.8 1.4 1.1
------ ------ ------ ------
Total................................................... $171.9 100.0% $128.4 100.0%
====== ====== ====== ======
</TABLE>
12. COMMITMENTS AND CONTINGENCIES:
In late 1995 and thereafter a number of purported class actions have been
commenced in various state and federal courts against the Company alleging that
the Company engaged in deceptive sales practices in connection with the sale of
whole and universal life insurance policies in the 1980s and 1990s. Although the
claims asserted in each case are not identical, they seek substantially the same
relief under essentially the same theories of recovery (i.e., breach of
contract, fraud, negligent misrepresentation, negligent supervision and
training, breach of fiduciary duty, unjust enrichment and violation of state
insurance and/or deceptive business practice laws). Plaintiffs in these cases
(including the Goshen case discussed below) seek primarily equitable relief
(e.g., reformation, specific performance, mandatory injunctive relief
prohibiting the Company
F-38
<PAGE> 109
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
from canceling policies for failure to make required premium payments,
imposition of a constructive trust and creation of a claims resolution facility
to adjudicate any individual issues remaining after resolution of all class-wide
issues) as opposed to compensatory damages, although they also seek compensatory
damages in unspecified amounts. The Company has answered the complaints in each
action (except for one being voluntarily held in abeyance). The Company has
denied any wrongdoing and has asserted numerous affirmative defenses.
On June 7, 1996, the New York State Supreme Court certified one of those
cases, Goshen v. The Mutual Life Insurance Company of New York and MONY Life
Insurance Company of America, the Goshen case, being the first of the
aforementioned class actions filed, as a nationwide class consisting of all
persons or entities who have, or at the time of the policy's termination had, an
ownership interest in a whole life or universal life insurance policy issued by
the Company and sold on an alleged "vanishing premium" basis during the period
January 1, 1982 to December 31, 1995. On March 27, 1997, the Company filed a
motion to dismiss or, alternatively, for summary judgement on all counts of the
complaint. All of the other putative class actions have been consolidated and
transferred by the Judicial Panel on Multidistrict Litigation to the United
States District Court for the District of Massachusetts, or are being
voluntarily held in abeyance pending the outcome of the Goshen case.
On October 21, 1997, the New York State Supreme Court granted the Company's
motion for summary judgement and dismissed all claims filed in the Goshen case
against the Company. On December 20, 1999, the New York State Court of Appeals
affirmed the dismissal of all but one of the claims in the Goshen case (a claim
under New York's General Business Law), which has been remanded back to the New
York State Supreme Court for further proceedings consistent with the opinion.
The Company intends vigorously to defend that litigation. There can be no
assurance that the present or future litigation relating to sales practices will
not have a material adverse effect on the Company.
In addition to the matters discussed above, the Company is involved in
various other legal actions and proceedings in connection with its business. The
claimants in certain of these actions and proceedings seek damages of
unspecified amounts.
While the outcome of such matters cannot be predicted with certainty, in
the opinion of management, any additional liability beyond that recorded in the
financial statements at December 31, 1999, resulting from the resolution of
these matters will not have a material adverse effect on the Company's financial
position or results of operations.
Insurance companies are subject to assessments up to statutory limits, by
state guaranty funds for losses of policyholders of insolvent insurance
companies. In the opinion of management, such assessments will not have a
material adverse effect on the financial position and the results of operations
of the Company.
At December 31, 1999, the Company had commitments outstanding of $3.7
million for fixed rate agricultural loans with periodic interest rate reset
dates. The initial interest rates on such agricultural loans range from 7.90% to
8.44%. There were no outstanding commitments for private fixed maturity
securities or commercial mortgages as of December 31, 1999.
13. STATUTORY FINANCIAL INFORMATION AND REGULATORY RISK-BASED CAPITAL:
Statutory net income reported by the Company for the years ended December
31, 1999, 1998, and 1997 was $(18.2) million, $11.1 million, and $9.7 million,
respectively. The combined statutory surplus of the Company as of December 31,
1999 and 1998 was $140.2 million and $146.8 million, respectively.
In March 1998, the National Association of Insurance Commissioners ("NAIC")
voted to adopt its Codification of Statutory Accounting Principles project
(referred to hereafter as "codification"). Codification is a modified form of
statutory accounting principles that will result in changes to the current NAIC
Accounting Practices and Procedures Manual applicable to insurance enterprises.
Although adoption of
F-39
<PAGE> 110
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
codification by all states is not a certainty, the NAIC has recommended that all
states enact codification as soon as practicable with an effective date of
January 1, 2001. It is currently anticipated that codification will become a
NAIC state accreditation requirement starting in 2002. In addition, the American
Institute of Certified Public Accountants and the NAIC have agreed to continue
to allow the use of certain permitted accounting practices when codification
becomes effective in 2001. Any accounting differences from codification
principles, however, must be disclosed and quantified in the footnotes to the
audited financial statements. Therefore, codification will likely result in
changes to what are currently considered prescribed statutory insurance
accounting practices.
Each insurance company's state of domicile imposes minimum risk-based
capital requirements. The formulas for determining the amount of risk-based
capital specify various weighting factors that are applied to financial balances
or various levels of activity based on the perceived degree of risk. Regulatory
compliance is determined by a ratio of the Company's regulatory total adjusted
capital, as defined by the NAIC, to its authorized control level risk-based
capital, as defined by the NAIC. Companies below specific trigger points or
ratios are classified within certain levels, each of which requires specified
corrective action. The Company exceeded the minimum risk-based capital
requirements.
As part of their routine regulatory oversight, the Arizona State Insurance
Department completed an examination of the Company for each of the three years
in the period ended December 31, 1996. The report, which became available March
17, 1998, did not cite any matters which will result in a material effect on the
Company's financial condition or results of operations.
F-40
<PAGE> 111
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) The following Financial Statements are included in this Registration
Statement:
(1) With respect to MONY America Variable Account A:
(a) Report of Independent Accountants
(b) Statements of assets and liabilities as of December 31, 1999
(c) Statements of operations for the year ended December 31, 1999
(d) Statements of changes in net assets for the years ended
December 31, 1999 and 1998
(e) Notes to financial statements
(2) With respect to MONY Life Insurance Company of America:
(a) Report of Independent Accountants;
(b) Balance sheets as of December 31, 1999 and 1998;
(c) Statements of income and comprehensive income for the years
ended December 31, 1999, 1998 and 1997;
(d) Statements of changes in shareholder's equity for the years
ended December 31, 1999, 1998 and 1997;
(e) Statements of cash flows for the years ended December 31, 1999,
1998 and 1997;
(f) Notes to financial statements.
(b) EXHIBITS
(1) Resolutions of Board of Directors of MONY Life Insurance Company
of America ("Company") authorizing the establishment of MONY America
Variable Account A ("Variable Account"), adopted March 27, 1987, filed as
Exhibit 1 of Registration Statement Nos. 33-14362 and 811-5166, dated May
18, 1987, is incorporated herein by reference.
(2) Not applicable.
(3)(a) Distribution Agreement among MONY Life Insurance Company of
America, MONY Securities Corporation, and MONY Series Fund, Inc., filed as
Exhibit 3(a) of Post-Effective Amendment No. 3, dated February 28, 1991, to
Registration Statement No. 33-20453, is incorporated herein by reference.
(b) Specimen Agreement with Registered Representatives, filed as
Exhibit 3(b) of Pre-Effective Amendment No. 1, dated December 17, 1990, to
Registration Statement Nos. 33-37722 and 811-6216, is incorporated herein
by reference.
(c) Specimen Agreement (Career Contract) between the Company and
selling agents (with Commission Schedule), filed as Exhibit 3(c) of
Pre-Effective Amendment No. 1, dated October 26, 1987, to Registration
Statement Nos. 33-14362 and 811-5166, is incorporated herein by reference.
(4) Proposed form of Flexible Payment Variable Annuity Contracts,
filed as Exhibit (4) of Registration Statement dated July 23, 1998,
Registration Nos. 333-59717 and 811-5166, is incorporated herein by
reference.
(5) Proposed form of Application for Flexible Payment Variable Annuity
Contract, to be filed by amendment.
(6) Articles of Incorporation and By-Laws of the Company, filed as
Exhibits 6(a) and 6(b), respectively, of Registration Statement No.
33-13183, dated April 6, 1987, is incorporated herein by reference.
(7) Not applicable.
<PAGE> 112
(8) Not applicable.
(9) Opinion and Consent of Edward P. Bank, Vice President and Deputy
General Counsel, The Mutual Life Insurance Company of New York, as to the
legality of the securities being registered, filed as Exhibit (9) of
Registration Statement dated October 13, 1998, Registration Nos. 333-59717
and 811-5166, is incorporated herein by reference.
(10) Consent of PricewaterhouseCoopers LLP, Independent Accountants
for MONY America Variable Account A, is filed herewith as Exhibit (10).
Consent of PricewaterhouseCoopers LLP, Independent Accountants for
MONY Life Insurance Company of America, is filed herewith as Exhibit (10).
(11) Not applicable.
(12) Not applicable.
(13) Calculation of Performance Data, is filed herewith as Exhibit 13.
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
---- -----------------------------------
<S> <C>
Michael I. Roth.............................. Director, Chairman and Chief Executive
Officer
Samuel J. Foti............................... Director, President and Chief Operating
Officer
Kenneth M. Levine............................ Director and Executive Vice President
Richard E. Connors........................... Director
Richard Daddario............................. Director, Vice President, and Controller
Philip A. Eisenberg.......................... Director, Vice President, and Actuary
Margaret G. Gale............................. Director and Vice President
Stephen J. Hall.............................. Director
Charles P. Leone............................. Director, Vice President and Chief Compliance
Officer
Sam Chiodo................................... Vice President -- Corporate and Strategic
Marketing
William D. Goodwin........................... Vice President
Evelyn L. Peos............................... Vice President and Illustration Actuary
Michael Slipowitz............................ Vice President
David S. Waldman............................. Secretary
David V. Weigel.............................. Treasurer
</TABLE>
The business address for all officers and directors of MONY America is 1740
Broadway, New York, New York 10019.
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT
No person is directly or indirectly controlled by the Registrant. The
Registrant is a separate account of MONY Life Insurance Company of America, a
wholly-owned subsidiary of MONY Life Insurance Company ("MONY").
The following is a diagram showing all corporations directly or indirectly
controlled by or under common control with MONY Life Insurance Company of
America, showing the state or other sovereign power under the laws of which each
is organized and the percentage ownership of voting securities giving rise to
the control relationship. (See diagram on following page.) Omitted from the
diagram are subsidiaries of MONY that, considered in the aggregate, would not
constitute a "significant subsidiary" (as that term is defined in Rule 8b-2
under Section 8 of the Investment Company Act of 1940) of MONY.
II-2
<PAGE> 113
[ORGANIZATIONAL CHART]
II-3
<PAGE> 114
ITEM 27. NUMBER OF CONTRACT OWNERS:
As of December 31, 1999 MONY America Variable Account A had 82,805 owners
of Contracts.
ITEM 28. INDEMNIFICATION
The By-Laws of MONY Life Insurance Company of America provide, in Article
VI as follows:
SECTION 1. The Corporation shall indemnify any existing or former
director, officer, employee or agent of the Corporation against all expenses
incurred by them and each of them which may arise or be incurred, rendered or
levied in any legal action brought or threatened against any of them for or on
account of any action or omission alleged to have been committed while acting
within the scope of employment as director, officer, employee or agent of the
Corporation, whether or not any action is or has been filed against them and
whether or not any settlement or compromise is approved by a court, all subject
and pursuant to the provisions of the Articles of Incorporation of this
Corporation.
SECTION 2. The indemnification provided in this By-Law shall not be deemed
exclusive of any other rights to which those seeking indemnification may be
entitled under By-Law, agreement, vote of stockholders or disinterested
directors or otherwise, both as to action in his official capacity and as to
action in another capacity while holding office, and shall continue as to a
person who has ceased to be a director, officer, employee or agent 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 for such
liabilities (other than the payment by the Registrant of expense 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.
ITEM 29. PRINCIPAL UNDERWRITERS
(a) MONY Securities Corporation ("MSC") is the principal underwriter of the
Registrant and the Fund. MONY Life Insurance Company ("MONY") also acts as
sub-investment adviser to the Fund through a services agreement.
(b) The names, titles, and principal business addresses of the officers of
MONY and MSC are listed on Schedules A and D of the respective Forms ADV for
MONY (Registration No. 801-13564), as filed with the Commission on December 20,
1977 and as amended, and on Schedule A of Form BD for MSC (Registration No.
8-15289) as filed with the Commission on November 23, 1969 and as amended and on
the individual officer's Form U-4, the texts of which are hereby incorporated by
reference.
(c) The following table sets forth commissions and other compensation
received by each principal underwriter, directly or indirectly, from MONY
America Variable Account A during fiscal year 1999:
<TABLE>
<CAPTION>
NET
UNDERWRITING
DISCOUNTS AND COMPENSATION BROKERAGE OTHER
NAME OF COMMISSIONS ON REDEMPTION COMMISSIONS COMPENSATION
PRINCIPAL ------------- ------------- ----------- ------------
UNDERWRITER 1999 1999 1999 1999
----------- ------------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
MONY Securities Corporation............ 0 0 0 0
</TABLE>
II-4
<PAGE> 115
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
Accounts, books, and other documents required to be maintained by Section
31(a) of the Investment Company Act of 1940 and the Rules promulgated thereunder
are maintained by MONY Life Insurance Company of America, in whole or in part,
at its principal offices at 1740 Broadway, New York, New York 10019, at its
Operations Center at 1 MONY Plaza, Syracuse, New York 13202 or at its Marketing
Center at 1740 Broadway, New York, New York 10019.
ITEM 31. MANAGEMENT SERVICES
Not applicable.
ITEM 32. UNDERTAKINGS
(a) Registrant hereby undertakes to file post-effective amendments to the
Registration Statement as frequently as is necessary to ensure that the audited
financial statements in the Registration Statement are never more than 16 months
old for so long as payments under the variable annuity contracts may be
accepted;
(b) Registrant hereby undertakes to include either (1) as part of any
application to purchase a contract offered by the prospectus, a space that an
applicant can check to request a Statement of Additional Information, or (2) a
post card or similar written communication affixed to or included in the
prospectus that the applicant can remove to send for a Statement of Additional
Information;
(c) Registrant hereby undertakes to deliver any Statement of Additional
Information and any financial statements required to be made available under
this Form promptly upon written or oral request.
REPRESENTATIONS RELATING TO SECTION 26 OF
THE INVESTMENT COMPANY ACT OF 1940
Registrant and MONY Life Insurance Company of America represent that the
fees and charges deducted under the Contract, in the aggregate, are reasonable
in relation to the services rendered, the expenses expected to be incurred and
the risks assumed by MONY Life Insurance Company of America.
II-5
<PAGE> 116
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, MONY America Variable Account A,
has duly caused this Post-Effective Amendment No. 7 to this Registration
Statement to be signed on its behalf by the undersigned thereunto duly
authorized, in the City of New York and the State of New York, on this day
of 2000.
MONY AMERICA VARIABLE ACCOUNT A
(Registrant)
MONY Life Insurance Company of America
(Depositor)
By: /s/ MICHAEL I. ROTH
------------------------------------
Michael I. Roth, Director, Chairman
of
the Board, and Chief Executive
Officer
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 7 to this Registration Statement has been signed
below by the following persons in the capacities and on the date indicated.
<TABLE>
<CAPTION>
SIGNATURE DATE
--------- ----
<S> <C>
/s/ MICHAEL I. ROTH
- -----------------------------------------------------
Michael I. Roth
Director, Chairman of the Board, and
Chief Executive Officer
/s/ SAMUEL J. FOTI
- -----------------------------------------------------
Samuel J. Foti
Director, President, and Chief Operating Officer
/s/ RICHARD DADDARIO
- -----------------------------------------------------
Richard Daddario
Director, Vice President, and Controller
(Principal Financial and Accounting Officer)
/s/ KENNETH M. LEVINE
- -----------------------------------------------------
Kenneth M. Levine
Director and Executive Vice President
/s/ PHILLIP A. EISENBERG
- -----------------------------------------------------
Phillip A. Eisenberg
Director, Vice President, and Actuary
/s/ MARGARET G. GALE
- -----------------------------------------------------
Margaret G. Gale
Director and Vice President
/s/ CHARLES P. LEONE
- -----------------------------------------------------
Charles P. Leone
Director, Vice President, and
Chief Compliance Officer
/s/ RICHARD E. CONNORS
- -----------------------------------------------------
Richard E. Connors
Director
</TABLE>
II-6
<PAGE> 117
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
<C> <S>
Consent of PricewaterhouseCoopers LLP, Independent
(10) Accountants
</TABLE>
II-7
<PAGE> 1
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in this Registration Statement on Form N-4
(Registration No. 333-59717) of our report dated February 11, 2000 relating to
the financial statements of MONY America Variable Account A-MONY Custom Master
and of our report dated February 10, 2000 relating to the financial statements
of MONY Life Insurance Company of America, which appear in such Registration
Statement. We also consent to the reference to us under the heading "Independent
Accountants" in such Registration Statement.
PricewaterhouseCoopers LLP
New York, New York
April 17, 2000
