Cova Financial Services Life Insurance Company
May 1, 1997, as amended September 8, 1997
PROFILE
of the Fixed and Variable Annuity Contract
This Profile is a summary of some of the more important points that you should
consider and know before purchasing the Contract. The Contract is more fully
described in the prospectus which accompanies this Profile. Please read the
prospectus carefully.
1. THE ANNUITY CONTRACT The fixed and variable annuity contract offered by Cova
is a contract between you, the owner, and Cova, an insurance company. The
Contract provides a means for investing on a tax-deferred basis in a fixed
account of Cova and 16 investment portfolios. The Contract is intended for
retirement savings or other long-term investment purposes and provides for a
death benefit and guaranteed income options.
The fixed account offers an interest rate that is guaranteed by the
insurance company, Cova. This interest rate is set once each year. While your
money is in the fixed account, the interest your money will earn as well as your
principal is guaranteed by Cova.
This Contract also offers 16 investment portfolios which are listed in
Section 4. These portfolios are designed to offer a better return than the fixed
account. However, this is NOT guaranteed. You can also lose your money.
You can put money into any or all of the investment portfolios and the
fixed account. You can transfer between accounts up to 12 times a year without
charge or tax implications. After 12 transfers, the charge is $25 or 2% of the
amount transferred, which ever is less.
The Contract, like all deferred annuity contracts, has two phases: the
accumulation phase and the income phase. During the accumulation phase, earnings
accumulate on a tax-deferred basis and are taxed as income when you make a
withdrawal. The income phase occurs when you begin receiving regular payments
from your Contract.
The amount of money you are able to accumulate in your account during the
accumulation phase will determine the amount of income payments during the
income phase.
2. ANNUITY PAYMENTS (THE INCOME PHASE) If you want to receive regular income
from your annuity, you can choose one of three options: (1) monthly payments for
your life (assuming you are the annuitant); (2) monthly payments for your life,
but with payments continuing to the beneficiary for 5, 10 or 20 years (as you
select) if you die before the end of the selected period; and (3) monthly
payments for your life and for the life of another person (usually your spouse)
selected by you. Once you begin receiving regular payments, you cannot change
your payment plan.
During the income phase, you have the same investment choices you had
during the accumulation phase. You can choose to have payments come from the
fixed account, the investment portfolios or both. If you choose to have any part
of your payments come from the investment portfolios, the dollar amount of your
payments may go up or down.
3. PURCHASE You can buy this Contract with $5,000 or more under most
circumstances. You can add $2,000 or more any time you like during the
accumulation phase. Your registered representative can help you fill out the
proper forms.
4. INVESTMENT OPTIONS
You can put your money in any or all of these investment portfolios which are
described in the prospectuses for the funds:
Managed by J.P. Morgan
Investment Management Inc.
Select Equity
Small Cap Stock
International Equity
Quality Bond
Large Cap Stock
Managed by Lord, Abbett & Co.
Bond Debenture
Growth and Income
Mid-Cap Value
Large Cap Research
Developing Growth
Managed by Van Kampen
American Capital
Investment Advisory Corp.
VKAC Growth and Income
Money Market
Quality Income
High Yield
Stock Index
Managed by Conning Asset
Management Company
(formerly General American
Investment Management Company)
Money Market
Depending upon market conditions, you can make or lose money in any of these
portfolios.
5. EXPENSES The Contract has insurance features and investment features, and
there are costs related to each.
Each year Cova deducts a $30 contract maintenance charge from your
Contract. Cova currently waives this charge if the value of your Contract is at
least $50,000. Cova also deducts for its insurance charges which total 1.40 % of
the average daily value of your Contract allocated to the investment portfolios.
There are also investment charges which range from 0.11% to 1.10% of the
average daily value of the investment portfolio depending upon the investment
portfolio.
If you take your money out, Cova may assess a withdrawal charge which is
equal to 5% of the purchase payment you withdraw. When you begin receiving
regular income payments from your annuity, Cova will assess a state premium tax
charge which ranges from 0-4 % depending upon the state.
The following chart is designed to help you understand the expenses in the
Contract. The column "Total Annual Expenses" shows the total of the $30 contract
maintenance charge (which is represented as .10% below) , the 1.40 % insurance
charges and the investment expenses for each investment portfolio. The next two
columns show you two examples of the expenses, in dollars, you would pay under a
Contract. The examples assume that you invested $1,000 in a Contract which earns
5% annually and that you withdraw your money: (1) at the end of year 1, and (2)
at the end of year 10. For year 1, the Total Annual Expenses are assessed as
well as the withdrawal charges. For year 10, the example shows the aggregate of
all the annual expenses assessed for the 10 years, but there is no withdrawal
charge.
The premium tax is assumed to be 0% in both examples.
<TABLE>
<CAPTION>
Examples:
Total Annual
Total Annual Total Annual Total Expenses At End of :
Insurance Portfolio Annual (1) (2)
Portfolio Charges Expenses Expenses 1 Year 10 Years
- ------------------------------------------------------------------------------------------------------------------------------------
Managed by J.P. Morgan Investment Management Inc.
<S> <C> <C> <C> <C> <C>
Select Equity 1.50% 0.85% 2.35% $73.80 $266.24
Small Cap Stock 1.50% 0.95% 2.45% $74.80 $276.23
International Equity 1.50% 0.95% 2.45% $74.80 $276.23
Quality Bond 1.50% 0.65% 2.15% $71.79 $245.92
Large Cap Stock 1.50% 0.75% 2.25% $72.80 $256.13
- ------------------------------------------------------------------------------------------------------------------------------------
Managed by Lord, Abbett & Co.
Bond Debenture 1.50% 0.85% 2.35% $73.80 $266.24
Growth and Income 1.50% 0.59% 2.09% $71.19 $239.74
Mid-Cap Value 1.50% 1.10% 2.60% $76.30 $291.02
Large Cap Research 1.50% 1.10% 2.60% $76.30 $291.02
Developing Growth 1.50% 1.00% 2.50% $75.30 $281.19
- ------------------------------------------------------------------------------------------------------------------------------------
Managed by Van Kampen American Capital Investment Advisory Corp.
VKAC Growth and Income 1.50% 0.70% 2.20% $72.29 $251.04
Money Market 1.50% 0.11% 1.61% $66.36 $188.79
Quality Income 1.50% 0.60% 2.10% $71.29 $240.77
High Yield 1.50% 0.85% 2.35% $73.80 $266.24
Stock Index 1.50% 0.60% 2.10% $71.29 $240.77
- ------------------------------------------------------------------------------------------------------------------------------------
Managed by Conning Asset Management Company
Money Market 1.50% 0.205% 1.705% $67.31 $199.08
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
For the newly formed Portfolios, the expenses have been estimated. The expenses
reflect any expense reimbursement or fee waiver. For more detailed information,
see the Fee Table in the Prospectus for the Contract.
6. TAXES Your earnings are not taxed until you take them out. If you take money
out, earnings come out first and are taxed as income. If you are younger than
59-1/2 when you take money out, you may be charged a 10% federal tax penalty on
the earnings. Payments during the income phase are considered partly a return of
your original investment. That part of each payment is not taxable as income.
7. ACCESS TO YOUR MONEY You can take money out at any time during the
accumulation phase. After the first year, you can take up to 10% of your total
purchase payments each year without charge from Cova. Withdrawals in excess of
that will be charged 5% of each payment you take out. After Cova has had a
payment for 5 years, there is no charge for withdrawals. Of course, you may also
have to pay income tax and a tax penalty on any money you take out. Each
purchase payment you add to your Contract has its own 5 year withdrawal charge
period.
8. PERFORMANCE The value of the Contract will vary up or down depending upon the
investment performance of the Portfolio(s) you choose. The following chart shows
total returns for each investment portfolio for the time periods shown. These
numbers reflect the insurance charges, the contract maintenance charge, the
investment expenses and all other expenses of the investment portfolio. These
numbers do not reflect any withdrawal charges which if applied would reduce such
performance. Past performance is not a guarantee of future results.
<TABLE>
<CAPTION>
Calendar Year
Portfolio 1996 1995 1994 1993 1992 1991 1990
- ------------------------------------------------------------------------------------------------------------------------------------
Managed by J.P. Morgan Investment Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Select Equity - - - - - - -
Small Cap Stock - -- - - - - -
International Equity - - - - - - -
Quality Bond - - - - - - -
Large Cap Stock - - - - - - -
Managed by Lord, Abbett & Co.
Bond Debenture - - - - - - -
Growth and Income 16.23% 26.73% 0.26% 12.28% 12.69% 24.23% 0.74%
Mid-Cap Value - - - - - - -
Large Cap Research - - - - - - -
Developing Growth - - - - - - -
Managed by Van Kampen American Capital Investment Advisory Corp.
VKAC Growth and Income 16.26% 30.36% -6.16% 13.76% - - -
Money Market 3.77% 4.38% 2.26% 1.37% 2.20% - -
Quality Income 1.07% 16.09% -6.16% 8.90% 5.53% 12.25% 5.09%
High Yield 9.48% 14.75% -6.00% 20.02% 17.23% 26.14% -1.01%
Stock Index 20.14% 34.54% -2.27% 6.33% 4.45% - -
Managed by Conning Asset Management Company
Money Market - - - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
9. DEATH BENEFIT If you die before moving to the income phase, the person you
have chosen as your beneficiary will receive a death benefit. This death benefit
will be the greater of three amounts: 1) the money you've put in less any money
you've taken out, and the related withdrawal charges, accumulated at 4% until
you reach age 80, or 2) the current value of your Contract, or 3) the value of
your Contract at the most recent 5th-year-anniversary plus any money you've
added since that anniversary minus any money you've taken out since that
anniversary, and the related withdrawal charges. If you die after age 80,
slightly different rules apply.
10. OTHER INFORMATION
Free Look. If you cancel the Contract within 10 days after receiving it (or
whatever period is required in your state), we will send your money back without
assessing a withdrawal charge. You will receive whatever your Contract is worth
on the day we receive your request. This may be more or less than your original
payment. If we're required by law to return your original payment, we will put
your money in the Money Market Portfolio, managed by Van Kampen American Capital
Investment Advisory Corp. , during the free-look period.
No Probate. In most cases, when you die, the person you choose as your
beneficiary will receive the death benefit without going through probate.
Who should purchase the Contract?
This Contract is designed for people seeking long-term tax-deferred accumulation
of assets, generally for retirement or other long-term purposes. The
tax-deferred feature is most attractive to people in high federal and state tax
brackets. You should not buy this Contract if you are looking for a short-term
investment or if you cannot take the risk of getting back less money than you
put in.
11. INQUIRIES
If you need more information, please contact us at:
Cova Life Sales Company
One Tower Lane, Suite 3000
Oakbrook Terrace, IL 60181
800-523-1661
Additional Features. This Contract has additional features you might be
interested in. These include:
You can arrange to have money automatically sent to you each month while your
Contract is still in the accumulation phase. Of course, you'll have to pay taxes
on money you receive. We call this feature the Systematic Withdrawal Program.
You can arrange to have a regular amount of money automatically invested in
investment portfolios each month, theoretically giving you a lower average cost
per unit over time than a single one time purchase. We call this feature Dollar
Cost Averaging.
Cova will automatically readjust the money between investment portfolios
periodically to keep the blend you select. We call this feature Automatic
Rebalancing.
Under certain circumstances, Cova will give you your money without a withdrawal
charge if you need it while you're in a nursing home. We call this feature the
Nursing Home Waiver.
These features are not available in all states and may not be suitable for your
particular situation.
The Fixed
And Variable Annuity
issued by
COVA VARIABLE ANNUITY ACCOUNT ONE
and
COVA FINANCIAL SERVICES
LIFE INSURANCE COMPANY
This prospectus describes the Fixed and Variable Annuity Contract offered by
Cova Financial Services Life Insurance Company (Cova).
The annuity contract has 17 investment choices - a fixed account which offers an
interest rate which is guaranteed by Cova, and 16 investment portfolios listed
below. The 16 investment portfolios are part of the Cova Series Trust, the Lord
Abbett Series Fund, Inc. or the General American Capital Company. You can put
your money in the fixed account and/or any of these investment portfolios.
Cova Series Trust:
Managed by J.P. Morgan
Investment Management Inc.
Select Equity
Small Cap Stock
International Equity
Quality Bond
Large Cap Stock
Managed by Lord, Abbett & Co.
Bond Debenture
Mid-Cap Value
Large Cap Research
Developing Growth
Managed by Van Kampen American Capital
Investment Advisory Corp.
VKAC Growth and Income
Money Market
Quality Income
High Yield
Stock Index
Lord Abbett Series Fund, Inc.:
Managed by Lord, Abbett & Co.
Growth and Income
General American Capital Company:
Managed by Conning Asset
Management Company
Money Market
Please read this prospectus before investing and keep it on file for future
reference. It contains important information about the Cova Fixed and Variable
Annuity Contract.
To learn more about the Cova Fixed and Variable Annuity Contract, you can obtain
a copy of the Statement of Additional Information (SAI) dated May 1, 1997. The
SAI has been filed with the Securities and Exchange Commission (SEC) and is
legally a part of the prospectus. The Table of Contents of the SAI is on Page 14
of this prospectus. For a free copy of the SAI, call us at (800) 831-5433 or
write us at: One Tower Lane, Suite 3000, Oakbrook Terrace, Illinois 60181-4644.
INVESTMENT IN A VARIABLE ANNUITY CONTRACT IS SUBJECT TO RISKS, INCLUDING THE
POSSIBLE LOSS OF PRINCIPAL. THE CONTRACTS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY FINANCIAL INSTITUTION AND ARE NOT FEDERALLY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD,
OR ANY OTHER AGENCY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
May 1, 1997, as amended September 8, 1997.
TABLE OF CONTENTS Page
INDEX OF SPECIAL TERMS 2
FEE TABLE 3
EXAMPLES 4
1. THE ANNUITY CONTRACT 6
2. ANNUITY PAYMENTS (THE INCOME PHASE) 6
3. PURCHASE 7
Purchase Payments 7
Allocation of Purchase Payments 7
Accumulation Units 7
4. INVESTMENT OPTIONS 8
Cova Series Trust 8
Lord Abbett Series Fund, Inc. 8
General American Capital Company 8
Transfers 8
Dollar Cost Averaging Program 8
Automatic Rebalancing Program 9
Approved Asset Allocation Programs 9
Voting Rights 9
Substitution 9
5. EXPENSES 9
Insurance Charges 9
Contract Maintenance Charge 10
Withdrawal Charge 10
Reduction or Elimination of the
Withdrawal Charge 10
Premium Taxes 10
Transfer Fee 10
Income Taxes 11
Investment Portfolio Expenses 11
6. TAXES 11
Annuity Contracts in General 11
Qualified and Non-Qualified Contracts 11
Withdrawals - Non-Qualified Contracts 11
Withdrawals - Qualified Contracts 11
Withdrawals - Tax-Sheltered Annuities 11
Diversification 11
7. ACCESS TO YOUR MONEY 12
Systematic Withdrawal Program 12
8. PERFORMANCE 12
9. DEATH BENEFIT 12
Upon Your Death 12
Death of Annuitant 13
10. OTHER INFORMATION 13
Cova 13
The Separate Account 13
Distributor 14
Ownership 14
Beneficiary 14
Assignment 14
Suspension of Payments or Transfers 14
Financial Statements 14
TABLE OF CONTENTS OF THE STATEMENT OF
ADDITIONAL INFORMATION 14
APPENDIX A
Condensed Financial Information A-1
APPENDIX B
Performance Information B-1
INDEX OF SPECIAL TERMS
We have tried to make this prospectus as readable and understandable for you as
possible. By the very nature of the contract, however, certain technical words
or terms are unavoidable. We have identified the following as some of these
words or terms. They are identified in the text in italic and the page that is
indicated here is where we believe you will find the best explanation for the
word or term.
Page
Accumulation Phase 6
Accumulation Unit 7
Annuitant 6
Annuity Date 6
Annuity Options 6
Annuity Payments 6
Annuity Unit 7
Beneficiary 14
Fixed Account 6
Income Phase 6
Investment Portfolios 8
Joint Owner 14
Non-Qualified 11
Owner 14
Purchase Payment 7
Qualified 11
Tax Deferral 11
COVA VARIABLE ANNUITY ACCOUNT ONE FEE TABLE
Owner Transaction Expenses
Withdrawal Charge (see Note 2 below)
5% of purchase payment withdrawn
Transfer Fee (see Note 3 below)
No charge for first 12 transfers in a contract year; thereafter, the fee is
$25 per transfer or, if less, 2% of the amount transferred.
Contract Maintenance Charge (see Note 4 below)
$30 per contract per year
Separate Account Annual Expenses
(as a percentage of average account value)
Mortality and Expense Risk Premium 1.25%
Administrative Expense Charge .15%
-----
TOTAL SEPARATE ACCOUNT
ANNUAL EXPENSES 1.40%
<TABLE>
<CAPTION>
Investment Portfolio Expenses
(as a percentage of the average daily net assets of an investment portfolio)
Other Expenses
(after expense
reimbursement for Total Annual
Management 12b-1 certain Portfolios - Portfolio
Fees Fees see Note 5 below) Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cova Series Trust
Managed by J.P. Morgan
Investment Management Inc.
Select Equity* .75% - - .10% .85%
Small Cap Stock* .85% - - .10% .95%
International Equity* .85% - - .10% .95%
Quality Bond* .55% - - .10% .65%
Large Cap Stock* .65% - - .10% .75%
- ------------------------------------------------------------------------------------------------------------------------------------
Managed by Lord, Abbett & Co.
Bond Debenture* .75% - - .10% .85%
Mid-Cap Value** 1.00% - - .10% 1.10%
Large Cap Research** 1.00% - - .10% 1.10%
Developing Growth** .90% - - .10% 1.00%
- ------------------------------------------------------------------------------------------------------------------------------------
Managed By Van Kampen American
Capital Investment Advisory Corp.
VKAC Growth and Income .60% - - .10% .70%
Money Market# .00% - - .11% .11%
Quality Income .50% - - .10% .60%
High Yield .75% - - .10% .85%
Stock Index .50% - - .10% .60%
- ------------------------------------------------------------------------------------------------------------------------------------
Lord Abbett Series Fund, Inc.
Managed by Lord, Abbett & Co.
Growth and Income## .50% .07% .02% .59%
- ------------------------------------------------------------------------------------------------------------------------------------
General American Capital Company
Managed by Conning Asset
Management Company
Money Market .205% - - .00% .205%
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
* Annualized. The Portfolio commenced regular investment operations on April
2, 1996.
** The Portfolio has not yet commenced regular investment operations.
# Cova Investment Advisory Corporation (Cova Advisory), the investment
adviser for Cova Series Trust, currently waives its fees for the Money
Market Portfolio. Although not obligated to, Cova Advisory expects to
continue to waive its fees for the Money Market Portfolio. In the future,
Cova Advisory may charge its fees on a partial or complete basis. Absent
the management fee waiver, the total management fee on an annual basis for
the Money Market Portfolio is .50%. The examples shown below for the Money
Market Portfolio are calculated based upon a waiver of the management fee.
## The Growth and Income Portfolio of Lord Abbett Series Fund, Inc. has a
12b-1 plan which provides for payments to Lord, Abbett & Co. for remittance
to a life insurance company for certain distribution expenses (see the Fund
Prospectus). The 12b-1 plan provides that such remittances, in the
aggregate, will not exceed .15%, on an annual basis, of the daily net asset
value of shares of the Growth and Income Portfolio. As of May 1, 1997, no
payments have been made under the 12b-1 plan. For the year ending December
31, 1997, the 12b-1 fees are estimated to be .07%. The examples below for
this Portfolio reflect the estimated 12b-1 fees.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Examples
You would pay the following expenses on a $1,000 investment, assuming a
5% annual return on assets: (a) upon surrender at the end of each time period;
(b) if the contract is not surrendered or is annuitized.
Time Periods
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cova Series Trust
Managed by J.P. Morgan
Investment Management Inc.
Select Equity (a) $73.80 (a)$ 118.16
(b) $23.80 (b)$ 73.16
Small Cap Stock (a) $74.80 (a)$ 121.17
(b) $24.80 (b)$ 76.17
International Equity (a) $74.80 (a)$ 121.17
(b) $24.80 (b)$ 76.17
Quality Bond (a) $71.79 (a)$ 112.12
(b) $21.79 (b)$ 67.12
Large Cap Stock (a) $72.80 (a)$ 115.15
(b) $22.80 (b)$ 70.15
- ------------------------------------------------------------------------------------------------------------------------------------
Managed by Lord, Abbett & Co.
Bond Debenture (a) $73.80 (a)$ 118.16
(b) $23.80 (b)$ 73.16
Mid-Cap Value (a) $76.30 (a)$ 125.66
(b) $26.30 (b)$ 80.66
Large Cap Research (a) $76.30 (a)$ 125.66
(b) $26.30 (b)$ 80.66
Developing Growth (a) $75.30 (a)$ 122.67
(b) $25.30 (b)$ 77.67
- ------------------------------------------------------------------------------------------------------------------------------------
Managed by Van Kampen American
Capital Investment Advisory Corp.
VKAC Growth and Income (a) $72.29 (a)$ 113.63 (a)$ 162.42 (a)$ 251.04
(b) $22.29 (b)$ 68.63 (b)$ 117.42 (b)$ 251.04
Money Market (a) $66.36 (a)$ 95.62 (a)$ 132.07 (a)$ 188.79
(b) $16.36 (b)$ 50.62 (b)$ 87.07 (b)$ 188.79
Quality Income (a) $71.29 (a)$ 110.60 (a)$ 157.34 (a)$ 240.77
(b) $21.29 (b)$ 65.60 (b)$ 112.34 (b)$ 240.77
High Yield (a) $73.80 (a)$ 118.16 (a)$ 169.99 (a)$ 266.24
(b) $23.80 (b)$ 73.16 (b)$ 124.99 (b)$ 266.24
Stock Index (a) $71.29 (a)$ 110.60 (a)$ 157.34 (a)$ 240.77
(b) $21.29 (b)$ 65.60 (b)$ 112.34 (b)$ 240.77
- ------------------------------------------------------------------------------------------------------------------------------------
Lord Abbett Series Fund, Inc.
Managed by Lord, Abbett & Co.
Growth and Income (a) $71.19 (a)$ 110.30 (a)$ 156.83 (a)$ 239.74
(b) $21.19 (b)$ 65.30 (b)$ 111.83 (b)$ 239.74
- ------------------------------------------------------------------------------------------------------------------------------------
General American Capital Company
Managed by Conning Asset
Management Company
Money Market (a) $67.31 (a) $98.54
(b) $17.31 (b) $53.54
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Explanation of Fee Table and Examples
1. The purpose of the Fee Table is to show you the various expenses you will
incur directly or indirectly with the contract. The Fee Table reflects
expenses of the Separate Account as well as of the investment portfolios.
2. The withdrawal charge is 5% of the purchase payments you withdraw. After Cova
has had a purchase payment for 5 years, there is no charge by Cova for a
withdrawal of that purchase payment. You may also have to pay income tax and
a tax penalty on any money you take out. After the first year, you can take
up to 10% of your total purchase payments each year without a charge from
Cova.
3. Cova will not charge you the transfer fee even if there are more than 12
transfers in a year if the transfer is for the Dollar Cost Averaging,
Automatic Rebalancing or Approved Asset Allocation Programs.
4. Cova will not charge the contract maintenance charge if the value of your
contract is $50,000 or more, although, if you make a complete withdrawal,
Cova will charge the contract maintenance charge.
5. Since August 20, 1990, Cova has been reimbursing the investment portfolios of
Cova Series Trust for all operating expenses (exclusive of the management
fees) in excess of approximately .10%.
Absent the expense reimbursement and management fee waiver, the percentages
shown for total annual portfolio expenses (on an annualized basis) for the
year or period ended December 31, 1996 would have been .71% for the Quality
Income Portfolio, 1.04% for the High Yield Portfolio, .74% for the Money
Market Portfolio, .67% for the Stock Index Portfolio, 1.02% for the VKAC
Growth and Income Portfolio, 1.70% for the Select Equity Portfolio, 2.68% for
the Small Cap Stock Portfolio, 3.80% for the International Equity Portfolio,
1.52% for the Quality Bond Portfolio, 1.23% for the Large Cap Stock Portfolio
and 2.05% for the Bond Debenture Portfolio.
6. Premium taxes are not reflected. Premium taxes may apply depending on the
state where you live.
7. The assumed average contract size is $30,000.
8. THE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
There is an accumulation unit value history contained in Appendix A - Condensed
Financial Information.
1. THE ANNUITY CONTRACT
This Prospectus describes the Fixed and Variable Annuity Contract offered by
Cova.
An annuity is a contract between you, the owner, and an insurance company (in
this case Cova), where the insurance company promises to pay you an income, in
the form of annuity payments, beginning on a designated date that's at least 30
days in the future. Until you decide to begin receiving annuity payments, your
annuity is in the accumulation phase. Once you begin receiving annuity payments,
your contract switches to the income phase. The Contract benefits from tax
deferral.
Tax deferral means that you are not taxed on earnings or appreciation on the
assets in your contract until you take money out of your contract.
The contract is called a variable annuity because you can choose among 16
investment portfolios. Depending upon market conditions, you can make or lose
money in any of these portfolios. If you select the variable annuity portion of
the contract, the amount of money you are able to accumulate in your contract
during the accumulation phase depends upon the investment performance of the
investment portfolio(s) you select. The amount of the annuity payments you
receive during the income phase from the variable annuity portion of the
contract also depends upon the investment performance of the investment
portfolios you select for the income phase.
The contract also contains a fixed account. The fixed account offers an interest
rate that is guaranteed by Cova. This interest rate is set once each year. Cova
guarantees that the interest credited to the fixed account will not be less than
3% per year with respect to contracts issued on or after May 1, 1996. If you
select the fixed account, your money will be placed with the other general
assets of Cova. If you select the fixed account, the amount of money you are
able to accumulate in your contract during the accumulation phase depends upon
the total interest credited to your contract. The amount of the annuity payments
you receive during the income phase from the fixed account portion of the
contract will remain level for the entire income phase.
As owner of the contract, you exercise all rights under the contract. You can
change the owner at any time by notifying Cova in writing. You and your spouse
can be named joint owners. We have described more information on this in Section
10 - Other Information.
2. ANNUITY PAYMENTS (THE INCOME PHASE)
Under the contract you can receive regular income payments. You can choose the
month and year in which those payments begin. We call that date the annuity
date. Your annuity date must be the first day of a calendar month. You can also
choose among income plans. We call those annuity options.
We ask you to choose your annuity date and annuity option when you purchase the
contract. You can change either at any time before the annuity date with 30 days
notice to us. Your annuity date cannot be any earlier than one month after you
buy the contract. Annuity payments must begin by the annuitant's 85th birthday
or 10 years from the date the contract was issued, whichever is later. The
annuitant is the person whose life we look to when we make annuity payments.
If you do not choose an annuity option at the time you purchase the contract, we
will assume that you selected Option 2 which provides a life annuity with 10
years of guaranteed payments.
During the income phase, you have the same investment choices you had just
before the start of the income phase. At the annuity date, you can choose
whether payments will come from the fixed account, the investment portfolio(s)
or a combination of both. If you don't tell us otherwise, your annuity payments
will be based on the investment allocations that were in place on the annuity
date.
If you choose to have any portion of your annuity payments come from the
investment portfolio(s), the dollar amount of your payment will depend upon 3
things: 1) the value of your contract in the investment portfolio(s) on the
annuity date, 2) the 3% assumed investment rate used in the annuity table for
the contract, and 3) the performance of the investment portfolios you selected.
If the actual performance exceeds the 3% assumed rate, your annuity payments
will increase. Similarly, if the actual rate is less than 3%, your annuity
payments will decrease.
You can choose one of the following annuity options. After annuity payments
begin, you cannot change the annuity option.
Option 1. Life Annuity. Under this option, we will make an annuity payment each
month so long as the annuitant is alive. After the annuitant dies, we stop
making annuity payments.
Option 2. Life Annuity with 5, 10 or 20 Years Guaranteed. Under this option, we
will make an annuity payment each month so long as the annuitant is alive.
However, if, when the annuitant dies, we have made annuity payments for less
than the selected guaranteed period, we will then continue to make annuity
payments for the rest of the guaranteed period to the beneficiary. If the
beneficiary does not want to receive annuity payments, he or she can ask us for
a single lump sum.
Option 3. Joint and Last Survivor Annuity. Under this option, we will make
annuity payments each month so long as the annuitant and a second person are
both alive. When either of these people dies, we will continue to make annuity
payments, so long as the survivor continues to live. The amount of the annuity
payments we will make to the survivor can be equal to 100%, 66-2/3% or 50% of
the amount that we would have paid if both were alive.
Annuity payments are made monthly unless you have less than $5,000 to apply
toward a payment ($2,000 if the contract is issued in Massachusetts or Texas).
In that case, Cova may provide your annuity payment in a single lump sum.
Likewise, if your annuity payments would be less than $100 a month ($20 in
Texas), Cova has the right to change the frequency of payments so that your
annuity payments are at least $100 ($20 in Texas).
3. PURCHASE
Purchase Payments
A purchase payment is the money you give us to buy the contract. The minimum we
will accept is $5,000 when the contract is bought as a non-qualified contract.
If you are buying the contract as part of an IRA (Individual Retirement
Annuity), 401(k) or other qualified plan, the minimum we will accept is $2,000.
The maximum we accept is $1 million without our prior approval. You can make
additional purchase payments of $2,000 or more to either type of contract.
Allocation of Purchase Payments
When you purchase a contract, we will allocate your purchase payment to the
fixed account and/or one or more of the investment portfolios you have selected.
If you make additional purchase payments, we will allocate them in the same way
as your first purchase payment unless you tell us otherwise. There is a $500
minimum balance requirement for the fixed account and for each investment
portfolio.
If you change your mind about owning this contract, you can cancel it within 10
days after receiving it (or the period required in your state). When you cancel
the contract within this time period, Cova will not assess a withdrawal charge.
You will receive back whatever your contract is worth on the day we receive your
request. In certain states or if you have purchased the contract as an IRA, we
may be required to give you back your purchase payment if you decide to cancel
your contract within 10 days after receiving it (or whatever period is required
in your state). If that is the case, we will put your purchase payment in the
Money Market Portfolio of the Cova Series Trust for 15 days after we allocate
your first purchase payment. (In some states, the period may be longer.) At the
end of that period, we will re-allocate those funds as you selected.
Once we receive your purchase payment and the necessary information, we will
issue your contract and allocate your first purchase payment within 2 business
days. If you do not give us all of the information we need, we will contact you
to get it. If for some reason we are unable to complete this process within 5
business days, we will either send back your money or get your permission to
keep it until we get all of the necessary information. If you add more money to
your contract by making additional purchase payments, we will credit these
amounts to your contract within one business day. Our business day closes when
the New York Stock Exchange closes, usually 4:00 p.m. Eastern time.
Accumulation Units
The value of the variable annuity portion of your contract will go up or down
depending upon the investment performance of the investment portfolio(s) you
choose. In order to keep track of the value of your contract, we use a unit of
measure we call an accumulation unit. (An accumulation unit works like a share
of a mutual fund.) During the income phase of the contract we call the unit an
annuity unit.
Every day we determine the value of an accumulation unit for each of the
investment portfolios. We do this by:
1. determining the total amount of money invested in the particular investment
portfolio;
2. subtracting from that amount any insurance charges and any other charges
such as taxes we have deducted; and
3. dividing this amount by the number of outstanding accumulation units.
The value of an accumulation unit may go up or down from day to day.
When you make a purchase payment, we credit your contract with accumulation
units. The number of accumulation units credited is determined by dividing the
amount of the purchase payment allocated to an investment portfolio divided by
the value of the accumulation unit for that investment portfolio.
We calculate the value of an accumulation unit for each investment portfolio
after the New York Stock Exchange closes each day and then credit your contract.
Example:
On Monday we receive an additional purchase payment of $5,000 from you. You
have told us you want this to go to the Quality Bond Portfolio. When the New
York Stock Exchange closes on that Monday, we determine that the value of an
accumulation unit for the Quality Bond Portfolio is $13.90. We then divide
$5,000 by $13.90 and credit your contract on Monday night with 359.71
accumulation units for the Quality Bond Portfolio.
4. INVESTMENT OPTIONS
The Contract offers 16 investment portfolios which are listed below. Additional
investment portfolios may be available in the future.
YOU SHOULD READ THE PROSPECTUSES FOR THESE FUNDS CAREFULLY BEFORE INVESTING.
COPIES OF THESE PROSPECTUSES ARE ATTACHED TO THIS PROSPECTUS.
Cova Series Trust
Cova Series Trust is managed by Cova Advisory, which is an indirect subsidiary
of Cova. Cova Series Trust is a mutual fund with multiple portfolios. Each
investment portfolio has a different investment objective. Cova Advisory has
engaged sub-advisers to provide investment advice for the individual investment
portfolios. The following investment portfolios are available under the
contract:
J.P. Morgan Investment Management Inc. is the sub-adviser to the following
portfolios:
Select Equity Portfolio
Small Cap Stock Portfolio
International Equity Portfolio
Quality Bond Portfolio
Large Cap Stock Portfolio
Lord, Abbett & Co. is the sub-adviser to the following portfolios:
Bond Debenture Portfolio
Mid-Cap Value Portfolio
Large Cap Research Portfolio
Developing Growth Portfolio
Van Kampen American Capital Investment Advisory Corp. is the sub-adviser to the
following portfolios:
VKAC Growth and Income Portfolio
Money Market Portfolio
Quality Income Portfolio
High Yield Portfolio
Stock Index Portfolio
Lord Abbett Series Fund, Inc.
Lord Abbett Series Fund, Inc. is a mutual fund with multiple portfolios. Each
portfolio is managed by Lord, Abbett & Co. The following portfolio is available
under the contract:
Growth and Income Portfolio
General American Capital Company
General American Capital Company is a mutual fund with multiple portfolios. Each
portfolio is managed by Conning Asset Management Company (formerly General
American Investment Management Company). The following investment portfolio is
available under the contract:
Money Market Fund
Transfers
You can transfer money among the fixed account and the 11 investment portfolios.
Transfers during the Accumulation Phase.
You can make 12 transfers every year during the accumulation phase without
charge. We measure a year from the anniversary of the day we issued your
contract. You can make a transfer to or from the fixed account and to or from
any investment portfolio. If you make more than 12 transfers in a year, there is
a transfer fee deducted. The fee is $25 per transfer or, if less, 2% of the
amount transferred. The following apply to any transfer during the accumulation
phase:
1. The minimum amount which you can transfer is $500 or your entire value in
the investment portfolio or fixed account.
2. Your request for transfer must clearly state which investment portfolio(s)
or the fixed account are involved in the transfer.
3. Your request for transfer must clearly state how much the transfer is for.
4. You cannot make any transfers within 7 calendar days of the annuity date.
Transfers during the Income Phase. You can only make transfers between the
investment portfolios once each year. We measure a year from the anniversary of
the day we issued your contract. You cannot transfer from the fixed account to
an investment portfolio, but you can transfer from one or more investment
portfolios to the fixed account at any time. If you make more than 12 transfers,
a transfer fee will be charged.
Cova has reserved the right during the year to terminate or modify the transfer
provisions described above.
You can make transfers by telephone. If you own the contract with a joint owner,
unless Cova is instructed otherwise, Cova will accept instructions from either
you or the other owner. Cova will use reasonable procedures to confirm that
instructions given us by telephone are genuine. If Cova fails to use such
procedures, we may be liable for any losses due to unauthorized or fraudulent
instructions. Cova tape records all telephone instructions.
Dollar Cost Averaging Program
The Dollar Cost Averaging Program allows you to systematically transfer a set
amount each month from the Money Market Portfolio or the fixed account to any of
the other investment portfolio(s). By allocating amounts on a regular schedule
as opposed to allocating the total amount at one particular time, you may be
less susceptible to the impact of market fluctuations.
The minimum amount which can be transferred each month is $500. You must have at
least $6,000 in the Money Market Portfolio or the fixed account, (or the amount
required to complete your program, if less) in order to participate in the
Dollar Cost Averaging Program.
All Dollar Cost Averaging transfers will be made on the 15th day of the month
unless that day is not a business day. If it is not, then the transfer will be
made the next business day.
If you participate in the Dollar Cost Averaging Program, the transfers made
under the program are not taken into account in determining any transfer fee.
Automatic Rebalancing Program
Once your money has been allocated among the investment portfolios, the
performance of each portfolio may cause your allocation to shift. You can direct
us to automatically rebalance your contract to return to your original
percentage allocations by selecting our Automatic Rebalancing Program. You can
tell us whether to rebalance quarterly, semi-annually or annually. We will
measure these periods from the anniversary of the date we issued your contract.
The transfer date will be the 1st day after the end of the period you selected.
If you participate in the Automatic Rebalancing Program, the transfers made
under the program are not taken into account in determining any transfer fee.
Example:
Assume that you want your initial purchase payment split between 2 investment
portfolios. You want 40% to be in the Quality Bond Portfolio and 60% to be in
the Select Equity Portfolio. Over the next 2-1/2 months the bond market does
very well while the stock market performs poorly. At the end of the first
quarter, the Quality Bond Portfolio now represents 50% of your holdings
because of its increase in value. If you had chosen to have your holdings
rebalanced quarterly, on the first day of the next quarter, Cova would sell
some of your units in the Quality Bond Portfolio to bring its value back to
40% and use the money to buy more units in the Select Equity Portfolio to
increase those holdings to 60%.
Approved Asset Allocation Programs
Cova recognizes the value to certain owners of having available, on a continuous
basis, advice for the allocation of your money among the investment options
available under the contracts. Certain providers of these types of services have
agreed to provide such services to owners in accordance with Cova's
administrative rules regarding such programs.
Cova has made no independent investigation of these programs. Cova has only
established that these programs are compatible with our administrative systems
and rules. Approved asset allocation programs are only available during the
accumulation phase.
Even though Cova permits the use of approved asset allocation programs, the
contract was not designed for professional market timing organizations. Repeated
patterns of frequent transfers are disruptive to the operations of the
investment portfolios, and should Cova become aware of such disruptive
practices, we may modify the transfer provisions of the contract.
If you participate in an Approved Asset Allocation Program, the transfers made
under the program are not taken into account in determining any transfer fee.
Voting Rights
Cova is the legal owner of the investment portfolio shares. However, Cova
believes that when an investment portfolio solicits proxies in conjunction with
a vote of shareholders, it is required to obtain from you and other owners
instructions as to how to vote those shares. When we receive those instructions,
we will vote all of the shares we own in proportion to those instructions. This
will also include any shares that Cova owns on its own behalf. Should Cova
determine that it is no longer required to comply with the above, we will vote
the shares in our own right.
Substitution
Cova may be required to substitute one of the investment portfolios you have
selected with another portfolio. We would not do this without the prior approval
of the Securities and Exchange Commission. We will give you notice of our intent
to do this.
5. EXPENSES
There are charges and other expenses associated with the contracts that reduce
the return on your investment in the contract. These charges and expenses are:
Insurance Charges
Each day, Cova makes a deduction for its insurance charges. Cova does this as
part of its calculation of the value of the accumulation units and the annuity
units. The insurance charge has two parts: 1) the mortality and expense risk
premium and 2) the administrative expense charge.
Mortality and Expense Risk Premium. This charge is equal, on an annual basis, to
1.25% of the daily value of the contracts invested in an investment portfolio,
after expenses have been deducted. This charge is for all the insurance benefits
e.g., guarantee of annuity rates, the death benefits, for certain expenses of
the contract, and for assuming the risk (expense risk) that the current charges
will be insufficient in the future to cover the cost of administering the
contract. If the charges under the contract are not sufficient, then Cova will
bear the loss. Cova does, however, expect to profit from this charge. The
mortality and expense risk premium cannot be increased. Cova may use any profits
it makes from this charge to pay for the costs of distributing the contract.
Administrative Expense Charge. This charge is equal, on an annual basis, to .15%
of the daily value of the contracts invested in an investment portfolio, after
expenses have been deducted. This charge, together with the contract maintenance
charge (see below), is for all the expenses associated with the administration
of the contract. Some of these expenses are: preparation of the contract,
confirmations, annual reports and statements, maintenance of contract records,
personnel costs, legal and accounting fees, filing fees, and computer and
systems costs. Because this charge is taken out of every unit value, you may pay
more in administrative costs than those that are associated solely with your
contract. Cova does not intend to profit from this charge. However, if this
charge and the contract maintenance charge are not enough to cover the costs of
the contracts in the future, Cova will bear the loss.
Contract Maintenance Charge
During the accumulation phase, every year on the anniversary of the date when
your contract was issued, Cova deducts $30 from your contract as a contract
maintenance charge. (In South Carolina, the charge is the lesser of $30 or 2% of
the value of the contract.) This charge is for administrative expenses (see
above). This charge can not be increased.
Cova will not deduct this charge, if when the deduction is to be made, the value
of your contract is $50,000 or more. Cova may some time in the future
discontinue this practice and deduct the charge.
If you make a complete withdrawal from your contract, the contract maintenance
charge will also be deducted. A pro rata portion of the charge will be deducted
if the annuity date is other than an anniversary. After the annuity date, the
charge will be collected monthly out of the annuity payment.
Withdrawal Charge
During the accumulation phase, you can make withdrawals from your contract. Cova
keeps track of each purchase payment. Once a year after the first year, you can
withdraw up to 10% of your total purchase payments and no withdrawal charge will
be assessed on the 10%, if on the day you make your withdrawal the value of your
contract is $5,000 or more. Otherwise, the charge is 5% of each purchase payment
you take out. However, after Cova has had a purchase payment for 5 years, there
is no charge when you withdraw that purchase payment. For purposes of the
withdrawal charge, Cova treats withdrawals as coming from the oldest purchase
payment first. When the withdrawal is for only part of the value of your
contract, the withdrawal charge is deducted from the remaining value in your
contract.
NOTE: For tax purposes, withdrawals are considered to have come from the last
money into the contract. Thus, for tax purposes, earnings are considered to come
out first.
Cova does not assess the withdrawal charge on any payments paid out as annuity
payments or as death benefits.
After you have owned the contract for one year, if you, or your joint owner, has
been confined to a nursing home or hospital for at least 90 consecutive days
under a doctor's care and you need part or all of the money from your contract,
Cova will not impose a withdrawal charge. You or your joint owner cannot have
been so confined when you purchased your contract if you want to take advantage
of this provision. This is called the Nursing Home Waiver. This provision is not
available in all states.
Reduction or Elimination of the Withdrawal Charge
Cova will reduce or eliminate the amount of the withdrawal charge when the
contract is sold under circumstances which reduce its sales expense. Some
examples are: if there is a large group of individuals that will be purchasing
the contract or a prospective purchaser already had a relationship with Cova.
Cova will not deduct a withdrawal charge under a contract issued to an officer,
director or employee of Cova or any of its affiliates.
Premium Taxes
Some states and other governmental entities (e.g., municipalities) charge
premium taxes or similar taxes. Cova is responsible for the payment of these
taxes and will make a deduction from the value of the contract for them. Some of
these taxes are due when the contract is issued, others are due when annuity
payments begin. It is Cova's current practice to not charge anyone for these
taxes until annuity payments begin. Cova may some time in the future discontinue
this practice and assess the charge when the tax is due. Premium taxes generally
range from 0% to 4%, depending on the state.
Transfer Fee
You can make 12 free transfers every year. We measure a year from the day we
issue your contract. If you make more than 12 transfers a year, we will deduct a
transfer fee of $25 or 2% of the amount that is transferred whichever is less.
If the transfer is part of the Dollar Cost Averaging Program, the Automatic
Rebalancing Program or an Approved Asset Allocation Program, it will not count
in determining the transfer fee.
Income Taxes
Cova will deduct from the contract for any income taxes which it incurs because
of the contract. At the present time, we are not making any such deductions.
Investment Portfolio Expenses
There are deductions from and expenses paid out of the assets of the various
investment portfolios, which are described in the attached fund prospectuses.
6. TAXES
NOTE: Cova has prepared the following information on taxes as a general
discussion of the subject. It is not intended as tax advice to any individual.
You should consult your own tax adviser about your own circumstances. Cova has
included in the Statement of Additional Information an additional discussion
regarding taxes.
Annuity Contracts in General
Annuity contracts are a means of setting aside money for future needs - usually
retirement. Congress recognized how important saving for retirement was and
provided special rules in the Internal Revenue Code (Code) for annuities.
Simply stated these rules provide that you will not be taxed on the earnings on
the money held in your annuity contract until you take the money out. This is
referred to as tax deferral. There are different rules as to how you will be
taxed depending on how you take the money out and the type of contract -
qualified or non-qualified (see following sections).
You, as the owner, will not be taxed on increases in the value of your contract
until a distribution occurs - either as a withdrawal or as annuity payments.
When you make a withdrawal you are taxed on the amount of the withdrawal that is
earnings. For annuity payments, different rules apply. A portion of each annuity
payment is treated as a partial return of your purchase payments and will not be
taxed. The remaining portion of the annuity payment will be treated as ordinary
income. How the annuity payment is divided between taxable and non-taxable
portions depends upon the period over which the annuity payments are expected to
be made. Annuity payments received after you have received all of your purchase
payments are fully includible in income.
When a non-qualified contract is owned by a non-natural person (e.g.,corporation
or certain other entities other than tax-qualified trusts), the contract will
generally not be treated as an annuity for tax purposes.
Qualified and Non-Qualified Contracts
If you purchase the contract as an individual and not under any pension plan,
specially sponsored program or an individual retirement annuity, your contract
is referred to as a non-qualified contract.
If you purchase the contract under a pension plan, specially sponsored program,
or an individual retirement annuity, your contract is referred to as a qualified
contract. Examples of qualified plans are: Individual Retirement Annuities
(IRAs), Tax-Sheltered Annuities (sometimes referred to as 403(b) contracts),
H.R. 10 Plans (sometimes referred to as Keogh Plans), and pension and
profit-sharing plans, which include 401(k) plans.
Withdrawals - Non-Qualified Contracts
If you make a withdrawal from your contract, the Code treats such a withdrawal
as first coming from earnings and then from your purchase payments. Such
withdrawn earnings are includible in income.
The Code also provides that any amount received under an annuity contract which
is included in income may be subject to a penalty. The amount of the penalty is
equal to 10% of the amount that is includible in income. Some withdrawals will
be exempt from the penalty. They include any amounts: (1) paid on or after the
taxpayer reaches age 59-1/2; (2) paid after you die; (3) paid if the taxpayer
becomes totally disabled (as that term is defined in the Code); (4) paid in a
series of substantially equal payments made annually (or more frequently) under
a lifetime annuity; (5) paid under an immediate annuity; or (6) which come from
purchase payments made prior to August 14, 1982.
Withdrawals - Qualified Contracts
The above information describing the taxation of non-qualified contracts does
not apply to qualified contracts. There are special rules that govern with
respect to qualified contracts. We have provided a more complete discussion in
the Statement of Additional Information.
Withdrawals - Tax-Sheltered Annuities
The Code limits the withdrawal of purchase payments made by owners from certain
Tax-Sheltered Annuities. Withdrawals can only be made when an owner: (1) reaches
age 59-1/2; (2) leaves his/her job; (3) dies; (4) becomes disabled (as that term
is defined in the Code); or (5) in the case of hardship. However, in the case of
hardship, the owner can only withdraw the purchase payments and not any
earnings.
Diversification
The Code provides that the underlying investments for a variable annuity must
satisfy certain diversification requirements in order to be treated as an
annuity contract. Cova believes that the investment portfolios are being managed
so as to comply with the requirements.
Neither the Code nor the Internal Revenue Service Regulations issued to date
provide guidance as to the circumstances under which you, because of the degree
of control you exercise over the underlying investments, and not Cova would be
considered the owner of the shares of the investment portfolios. If this occurs,
it will result in the loss of the favorable tax treatment for the contract. It
is unknown to what extent owners are permitted to select investment portfolios,
to make transfers among the investment portfolios or the number and type of
investment portfolios owners may select from. If any guidance is provided which
is considered a new position, then the guidance would generally be applied
prospectively. However, if such guidance is considered not to be a new position,
it may be applied retroactively. This would mean that you, as the owner of the
contract, could be treated as the owner of the investment portfolios.
Due to the uncertainty in this area, Cova reserves the right to modify the
contract in an attempt to maintain favorable tax treatment.
7. ACCESS TO YOUR MONEY
You can have access to the money in your contract: (1) by making a withdrawal
(either a partial or a complete withdrawal); (2) by electing to receive
annuity payments; or (3) when a death benefit is paid to your beneficiary.
Under most circumstances, withdrawals can only be made during the accumulation
phase.
When you make a complete withdrawal you will receive the value of the contract
on the day you made the withdrawal less any applicable withdrawal charge, less
any premium tax and less any contract maintenance charge. (See Section 5.
Expenses for a discussion of the charges.)
Unless you instruct Cova otherwise, any partial withdrawal will be made pro-rata
from all the investment portfolios and the fixed account you selected. Under
most circumstances the amount of any partial withdrawal must be for at least
$500. Cova requires that after a partial withdrawal is made you keep at least
$500 in any selected investment portfolio.
INCOME TAXES, TAX PENALTIES AND CERTAIN RESTRICTIONS MAY APPLY TO ANY WITHDRAWAL
YOU MAKE.
There are limits to the amount you can withdraw from a qualified plan referred
to as a 403(b) plan. For a more complete explanation see Section 6. Taxes and
the discussion in the Statement of Additional Information.
Systematic Withdrawal Program
If you are 59-1/2 or older, you may use the Systematic Withdrawal Program. This
program provides an automatic monthly payment to you of up to 10% of your total
purchase payments each year. No withdrawal charge will be made for these
payments. Cova does not have any charge for this program, but reserves the right
to charge in the future. If you use this program, you may not also make a single
10% free withdrawal. For a discussion of the withdrawal charge and the 10% free
withdrawal, see Section 5. Expenses.
All Systematic Withdrawals will be paid on the 15th day of the month unless that
day is not a business day. If it is not, then the payment will be the next
business day.
INCOME TAXES MAY APPLY TO SYSTEMATIC WITHDRAWALS.
8. PERFORMANCE
Cova periodically advertises performance of the various investment portfolios.
Cova will calculate performance by determining the percentage change in the
value of an accumulation unit by dividing the increase (decrease) for that unit
by the value of the accumulation unit at the beginning of the period. This
performance number reflects the deduction of the insurance charges. It does not
reflect the deduction of any applicable contract maintenance charge and
withdrawal charge. The deduction of any applicable contract maintenance charge
and withdrawal charges would reduce the percentage increase or make greater any
percentage decrease. Any advertisement will also include total return figures
which reflect the deduction of the insurance charges, contract maintenance
charge and withdrawal charges.
Cova may, from time to time, include in its advertising and sales materials, tax
deferred compounding charts and other hypothetical illustrations, which may
include comparisons of currently taxable and tax deferred investment programs,
based on selected tax brackets.
Appendix B contains performance information that you may find informative.
Future performance will vary and the results shown are not necessarily
representative of future results.
9. DEATH BENEFIT
Upon Your Death
If you die before annuity payments begin, Cova will pay a death benefit to your
beneficiary (see below). If you have a joint owner, the death benefit will be
paid when the first of you dies. Joint owners must be spouses. The surviving
joint owner will be treated as the beneficiary.
The amount of the death benefit depends on how old you or your joint owner is.
Prior to you, or your joint owner, reaching age 80, the death benefit will be
the greater of:
1. Total purchase payments, less withdrawals (and any withdrawal charges paid
on the withdrawals) accumulated at 4% from the date your contract was
issued until the date of death; or
2. The value of your contract at the time the death benefit is to be paid; or
3. The value of your contract on the most recent five year anniversary before
the date of death, plus any subsequent purchase payments, less any
withdrawals (and any withdrawal charges paid on the withdrawals).
After you, or your joint owner, reaches age 80, the death benefit will be the
greater of:
1. Total purchase payments, less withdrawals (and any withdrawal charges paid
on the withdrawals) accumulated at 4% from the date your contract was
issued until you or your joint owner reaches age 80, plus any subsequent
purchase payments, less any withdrawals (and any withdrawal charges paid on
the withdrawals); or
2. The value of your contract at the time the death benefit is to be paid; or
3. The value of your contract on the most recent five year anniversary on or
before you or your joint owner reaches age 80, plus any subsequent purchase
payments, less any withdrawals (and any withdrawal charges paid on the
withdrawals).
The death benefit provisions described above may not be available in your state.
In those states where they are not available, the death benefit will be as
follows:
Prior to you, or your joint owner, reaching age 80, the death benefit will be
the greater of:
1. Total purchase payments, less withdrawals (and any withdrawal charges paid
on the withdrawals);
2. The value of your contract at the time the death benefit is to be paid; or
3. The value of your contract on the most recent five year anniversary before
the date of death, plus any subsequent purchase payments, less any
withdrawals (and any withdrawal charges paid on the withdrawals).
After you, or your joint owner, reaches age 80, the death benefit will be the
greater of:
1. Total purchase payments, less any withdrawals (and any withdrawal charges
paid on the withdrawals);
2. The value of your contract at the time the death benefit is to be paid; or
3. The value of your contract on the most recent five year anniversary on or
before you or your joint owner reaches age 80, plus any subsequent purchase
payments, less any withdrawals (and any withdrawal charges paid on the
withdrawals).
The entire death benefit must be paid within 5 years of the date of death unless
the beneficiary elects to have the death benefit payable under an annuity
option. The death benefit payable under an annuity option must be paid over the
beneficiary's lifetime or for a period not extending beyond the beneficiary's
life expectancy. Payment must begin within one year of the date of death. If the
beneficiary is the spouse of the owner, he/she can continue the contract in
his/her own name at the then current value. If a lump sum payment is elected and
all the necessary requirements are met, the payment will be made within 7 days.
Death of Annuitant
If the annuitant, not an owner or joint owner, dies before annuity payments
begin, you can name a new annuitant. If no annuitant is named within 30 days of
the death of the annuitant, you will become the annuitant. However, if the owner
is a non-natural person (for example, a corporation), then the death or change
of annuitant will be treated as the death of the owner, and a new annuitant may
not be named.
Upon the death of the annuitant after annuity payments begin, the death benefit,
if any, will be as provided for in the annuity option selected.
10. OTHER INFORMATION
Cova
Cova Financial Services Life Insurance Company (Cova) was incorporated on August
17, 1981 as Assurance Life Company, a Missouri corporation, and changed its name
to Xerox Financial Services Life Insurance Company in 1985. On June 1, 1995, a
wholly-owned subsidiary of General American Life Insurance Company purchased
Cova which on that date changed its name to Cova Financial Services Life
Insurance Company.
Cova is licensed to do business in the District of Columbia and all states
except California, Maine, New Hampshire, New York and Vermont.
The Separate Account
Cova has established a separate account, Cova Variable Annuity Account One
(Separate Account), to hold the assets that underlie the contracts. The Board of
Directors of Cova adopted a resolution to establish the Separate Account under
Missouri insurance law on February 24, 1987. We have registered the Separate
Account with the Securities and Exchange Commission as a unit investment trust
under the Investment Company Act of 1940.
The assets of the Separate Account are held in Cova's name on behalf of the
Separate Account and legally belong to Cova. However, those assets that underlie
the contracts, are not chargeable with liabilities arising out of any other
business Cova may conduct. All the income, gains and losses (realized or
unrealized) resulting from these assets are credited to or charged against the
contracts and not against any other contracts Cova may issue.
Distributor
Cova Life Sales Company (Life Sales), One Tower Lane, Suite 3000, Oakbrook
Terrace, Illinois 60181-4644, acts as the distributor of the contracts. Life
Sales is an affiliate of Cova.
Commissions will be paid to broker-dealers who sell the contracts.
Broker-dealers will be paid commissions up to 5.5% of purchase payments but,
under certain circumstances, may be paid an additional .5% commission.
Sometimes, Cova enters into an agreement with the broker-dealer to pay the
broker-dealer persistency bonuses, in addition to the standard commissions. To
the extent that the withdrawal charge is insufficient to cover the actual cost
of distribution, Cova may use any of its corporate assets, including any profit
from the mortality and expense risk premium, to make up any difference.
Ownership
Owner. You, as the owner of the contract, have all the rights under the
contract. Prior to the annuity date, the owner is as designated at the time the
contract is issued, unless changed. On and after the annuity date, the annuitant
is the owner. The beneficiary becomes the owner when a death benefit is payable.
Joint Owner. The contract can be owned by joint owners. Any joint owner must be
the spouse of the other owner (except in Pennsylvania). Upon the death of either
joint owner, the surviving spouse will be the designated beneficiary. Any other
beneficiary designation at the time the contract was issued or as may have been
later changed will be treated as a contingent beneficiary unless otherwise
indicated.
Beneficiary
The beneficiary is the person(s) or entity you name to receive any death
benefit. The beneficiary is named at the time the contract is issued unless
changed at a later date. Unless an irrevocable beneficiary has been named, you
can change the beneficiary at any time before you die.
Assignment
You can assign the contract at any time during your lifetime. Cova will not be
bound by the assignment until it receives the written notice of the assignment.
Cova will not be liable for any payment or other action we take in accordance
with the contract before we receive notice of the assignment. AN ASSIGNMENT MAY
BE A TAXABLE EVENT.
If the contract is issued pursuant to a qualified plan, there may be limitations
on your ability to assign the contract.
Suspension of Payments or Transfers
Cova may be required to suspend or postpone payments for withdrawals or
transfers for any period when:
1. the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
2. trading on the New York Stock Exchange is restricted;
3. an emergency exists as a result of which disposal of shares of the
investment portfolios is not reasonably practicable or Cova cannot
reasonably value the shares of the investment portfolios;
4. during any other period when the Securities and Exchange Commission, by
order, so permits for the protection of owners.
Cova has reserved the right to defer payment for a withdrawal or transfer from
the fixed account for the period permitted by law but not for more than six
months.
Financial Statements
The consolidated financial statements of Cova and the Separate Account have been
included in the Statement of Additional Information.
Table of Contents of the
Statement of Additional Information
Company
Experts
Legal Opinions
Distribution
Performance Information
Tax Status
Annuity Provisions
Financial Statements
APPENDIX A
CONDENSED FINANCIAL INFORMATION
Accumulation Unit Value History
The following schedule includes accumulation unit values for the periods
indicated. This data has been extracted from the Separate Account's Financial
Statements. The Separate Account's Financial Statements have been audited by
KPMG Peat Marwick LLP, independent certified public accountants, whose report is
included in the Statement of Additional Information. This information should be
read in conjunction with the Separate Account's Financial Statements and related
notes which are included in the Statement of Additional Information.
<TABLE>
<CAPTION>
For the
period from
12/11/89
Year or Year or Year or Year or Year or Year or Year or (Start of
Period Period Period Period Period Period Period Operations)
Ended Ended Ended Ended Ended Ended Ended through
12/31/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cova Series Trust
Managed by Lord Abbett & Co.
Bond Debenture Sub-Account
Beginning of Period $10.10 * * * * * * *
End of Period 11.29
Number of Accum. Units
Outstanding 659,663
- ------------------------------------------------------------------------------------------------------------------------------------
Managed by J.P. Morgan
Investment Management Inc.
Select Equity Sub-Account
Beginning of Period $10.08 * * * * * * *
End of Period 10.84
Number of Accum. Units
Outstanding 2,044,523
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Stock Sub-Account
Beginning of Period $10.51 * * * * * * *
End of Period 11.31
Number of Accum. Units
Outstanding 1,237,405
International Equity Sub-Account
Beginning of Period $10.21 * * * * * * *
End of Period 10.97
Number of Accum. Units
Outstanding 1,306,892
Quality Bond Sub-Account
Beginning of Period $ 9.90 * * * * * * *
End of Period 10.37
Number of Accum. Units
Outstanding 508,830
Large Cap Stock Sub-Account
Beginning of Period $10.00 * * * * * * *
End of Period 11.33
Number of Accum. Units
Outstanding 1,389,606
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
* The Money Market Portfolio started regular investment operations on July 1,
1991, the Stock Index Portfolio started regular investment operations on
November 1, 1991, and the VKAC Growth and Income Portfolio started regular
investment operations on May 1, 1992. The accumulation unit values shown
for the beginning of the period for the Select Equity, Small Cap Stock,
International Equity, Quality Bond and Large Cap Stock Portfolios managed
by J.P. Morgan Investment Management Inc., and the Bond Debenture Portfolio
managed by Lord, Abbett & Co. reflect the date these investment portfolios
were first offered for sale to the public (5/1/96). The Mid-Cap Value,
Large Cap Research and Developing Growth Portfolios managed by Lord, Abbett
& Co. have not yet commenced regular investment operations. The General
American Capital Company Money Market Sub-Account started regular
investment operations on June 3, 1996.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Accumulation Unit Value History (continued)
For the
period from
12/11/89
Year or Year or Year or Year or Year or Year or Year or (Start of
Period Period Period Period Period Period Period Operations)
Ended Ended Ended Ended Ended Ended Ended through
12/31/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Managed by Van Kampen American
Capital Investment Advisory Corp.
Quality Income Sub-Account
Beginning of Period $15.33 $13.17 $13.97 $12.75 $12.02 $10.62 $ 9.97 $10.00
End of Period 15.54 15.33 13.17 13.97 12.75 12.02 10.62 9.97
Number of Accum. Units
Outstanding 3,334,960 2,690,633 2,576,412 3,659,656 1,891,499 563,960 564,940 253,695
- ------------------------------------------------------------------------------------------------------------------------------------
High Yield Sub-Account
Beginning of Period $19.52 $16.98 $18.02 $14.99 $12.75 $10.06 $10.02 $10.00
End of Period 21.42 19.52 16.98 18.02 14.99 12.75 10.06 10.02
Number of Accum. Units
Outstanding 2,001,184 1,870,232 1,157,642 1,045,815 361,296 298,202 280,854 250,000
Money Market Sub-Account
Beginning of Period $11.43 $10.90 $10.61 $10.46 $10.21 $10.00 * *
End of Period 11.88 11.43 10.90 10.61 10.46 10.21
Number of Accum. Units
Outstanding 2,584,926 2,987,132 6,963,421 617,575 385,448 527,571
VKAC Growth and Income Sub-Account
Beginning of Period $14.61 $11.20 $11.92 $10.47 $10.00 * * *
End of Period 17.01 14.61 11.20 11.92 10.47
Number of Accum. Units
Outstanding 1,905,896 1,342,833 977,209 547,643 250,919
Stock Index Sub-Account
Beginning of Period $15.77 $11.68 $11.87 $11.05 $10.55 $10.00 * *
End of Period 19.04 15.77 11.68 11.87 11.05 10.55
Number of Accum. Units
Outstanding 4,680,855 5,436,980 3,151,443 7,691,151 3,164,251 639,923
Lord Abbett Series Fund, Inc.
Growth and Income Sub-Account
Beginning of Period $21.31 $16.64 $16.42 $14.50 $12.73 $10.15 $10.06 $10.00
End of Period 25.09 21.31 16.64 16.42 14.50 12.73 10.15 10.06
Number of Accum. Units
Outstanding 11,732,301 8,947,108 6,875,139 4,994,582 2,560,999 1,426,577 1,041,342 14,482
General American Capital Company
Money Market Sub-Account
Beginning of Period $10.00 * * * * * * *
End of Period 10.23
Number of Accum. Units
Outstanding 34,964
<FN>
* The Money Market Portfolio started regular investment operations on July 1,
1991, the Stock Index Portfolio started regular investment operations on
November 1, 1991, and the VKAC Growth and Income Portfolio started regular
investment operations on May 1, 1992. The accumulation unit values shown
for the beginning of the period for the Select Equity, Small Cap Stock,
International Equity, Quality Bond and Large Cap Stock Portfolios managed
by J.P. Morgan Investment Management Inc., and the Bond Debenture Portfolio
managed by Lord, Abbett & Co. reflect the date these investment portfolios
were first offered for sale to the public (5/1/96). The Mid-Cap Value,
Large Cap Research and Developing Growth Portfolios managed by Lord, Abbett
& Co. have not yet commenced regular investment operations. The General
American Capital Company Money Market Sub-Account started regular
investment operations on June 3, 1996.
</FN>
</TABLE>
APPENDIX B
PERFORMANCE INFORMATION
Future performance will vary and the results shown are not necessarily
representative of future results.
PART 1
Cova Series Trust, Lord Abbett Series Fund, Inc. and General American Capital
Company, Existing Portfolios
Van Kampen American Capital Investment Advisory Corp. is the sub-adviser for the
following portfolios of Cova Series Trust: Money Market, Stock Index, High
Yield, Quality Income and VKAC Growth and Income. J.P. Morgan Investment
Management Inc. is the sub-adviser for the following portfolios of Cova Series
Trust: Select Equity, Small Cap Stock, International Equity, Quality Bond and
Large Cap Stock. Lord Abbett &Co. is the sub-adviser for the Bond Debenture
Portfolio of Cova Series Trust. Lord, Abbett & Co. is the investment adviser for
Lord Abbett Series Fund, Inc. which currently has one operating portfolio:
Growth and Income. Conning Asset Management Company is the adviser for the Money
Market Fund of General American Capital Company. All of these portfolios began
operations before May 1, 1997. As a result, performance information is available
for these portfolios as well as for the accumulation unit values.
The performance figures shown for the portfolios in Column A in the chart below
reflect the actual fees and expenses paid by the portfolio. Column B presents
performance figures for the accumulation units which reflect the insurance
charges as well as the fees and expenses of the investment portfolio. Column C
presents performance figures for the accumulation units which reflect the
insurance charges, the contract maintenance charge, the fees and expenses of the
investment portfolio, and assume that you make a withdrawal at the end of the
period and therefore the withdrawal charge is reflected. For the Cova Series
Trust Portfolios, performance is shown from the dates shares were first offered
to the public as follows: December 11, 1989 for the Quality Income and High
Yield Portfolios; July 1, 1991 for the Money Market Portfolio; November 1, 1991
for the Stock Index Portfolio; May 1, 1992 for the VKAC Growth and Income
Portfolio; and May 1, 1996 for the Select Equity, Small Cap Stock, International
Equity, Quality Bond, Large Cap Stock and Bond Debenture Portfolios. For the
Lord Abbett Series Fund, Inc. Growth and Income Portfolio, operations commenced
on December 11, 1989. For the Money Market Fund of General American Capital
Company, performance is shown from June 3, 1996, the date on which shares were
first made available under certain Contracts.
<TABLE>
<CAPTION>
Part 1 Cova Series Trust
Average Annual Total Return for the periods ended 12/31/96
- ------------------------------------------------------------------------------------------------------------------------------------
Column A Column B Column C
Portfolio Performance Accumulation Unit Performance
- ------------------------------------------------------------------------------------------------------------------------------------
since since since
Portfolio 1 yr 5 yrs inception 1 yr 5 yrs inception 1 yr 5 yrs inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Select Equity - - - - 8.52% - - - - 7.48% - - - - 2.66%
Small Cap Stock - - - - 8.65% - - - - 7.57% - - - - 2.73%
International Equity - - - - 8.44% - - - - 7.36% - - - - 2.54%
Quality Bond - - - - 5.68% - - - - 4.76% - - - - (0.04)%
Large Cap Stock - - - - 14.35% - - - - 13.32% - - - - 8.48%
Bond Debenture - - - - 12.89% - - - - 11.86% - - - - 7.02%
VKAC Growth and Income 18.18% - - 13.50% 16.42% - - 12.04% 11.02% - - 11.01%
Money Market 5.42% 4.55% 4.64% 3.98% 3.08% 3.18% (1.31%) 1.89% 2.06%
Quality Income 2.82% 6.76% 8.04% 1.36% 5.27% 6.44% (4.01%) 4.08% 5.57%
High Yield 11.29% 12.50% 13.05% 9.73% 10.93% 11.39% 4.22% 9.83% 10.61%
Stock Index 22.48% 14.13% 16.10% 20.69% 12.52% 13.26% 15.23% 11.54% 12.28%
</TABLE>
<TABLE>
<CAPTION>
Part 1 Lord Abbett Series Fund, Inc.
Average Annual Total Return for the periods ended 12/31/96
- ------------------------------------------------------------------------------------------------------------------------------------
Column A Column B Column C
Portfolio Performance Accumulation Unit Performance
- ------------------------------------------------------------------------------------------------------------------------------------
since since since
Portfolio 1 yr 5 yrs inception 1 yr 5 yrs inception 1 yr 5 yrs inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Growth and Income 19.49% 16.16% 15.50% 17.76% 14.54% 13.92% 12.16% 13.50% 13.17%
</TABLE>
<TABLE>
<CAPTION>
APPENDIX B
PERFORMANCE INFORMATION (continued)
Part 1 General American Capital Company
Average Annual Total Return for the period ended 12/31/96
- ------------------------------------------------------------------------------------------------------------------------------------
Column A Column B Column C
Portfolio Performance Accumulation Unit Performance
- ------------------------------------------------------------------------------------------------------------------------------------
since since since
Portfolio inception inception inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market 3.17% 2.34% -2.47%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
PART 2
General American Capital
Company Performance
Even though the General American Capital Company Money Market Fund has not been
made available under certain Contracts until the date of this prospectus, the
General American Capital Company Money Market Fund has been in existence for
sometime and therefore has an investment performance history. In order to show
how investment performance of the General American Capital Company Money Market
Fund affects accumulation unit values, we have developed performance
information.
The chart below shows the investment performance of the General American Capital
Company Money Market Fund and the accumulation unit performance calculated by
assuming that accumulation units were invested in the General American Capital
Company Money Market Fund for the same periods.
The performance figures in Column A for the General American Capital Company
Money Market Fund reflect the fees and expenses paid by the portfolio. Column B
presents performance figures for the accumulation units which reflect the
insurance charges as well as the fees and expenses of the General American
Capital Company Money Market Fund. Column C presents performance figures for the
accumulation units which reflect the insurance charges, the contract maintenance
charge, the fees and expenses of the General American Capital Company Money
Market Fund, and assumes that you make a withdrawal at the end of the period and
therefore the withdrawal charge is reflected.
<TABLE>
<CAPTION>
Part 2 General American Capital Company Money Market Fund
Average Annual Total Return for the periods ended 12/31/96
- ------------------------------------------------------------------------------------------------------------------------------------
Column A Column B Column C
Fund Performance Accumulation Unit Performance
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio 1 yr 5 yrs 10 yrs 1 yr 5 yrs 10 yrs 1 yr 5 yrs 10 yrs
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market Fund 5.51% 4.49% 6.01% 4.11% 3.09% 4.61% (.99)% (1.51)% 4.51%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
________________________
________________________ STAMP
________________________
Cova Financial Services Life
Insurance Company
Attn: Variable Products
One Tower Lane
Suite 3000
Oakbrook Terrace, Illinois 60181-4644
Please send me, at no charge, the Statement of Additional Information dated May
1, 1997, for The Annuity Contract issued by Cova.
(Please print or type and fill in all information)
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip Code
CL-2088 (9/97) COVA VA
COVA
Cova Financial Services Life Insurance Company
Marketing and Executive Office
One Tower Lane, Suite 3000
Oakbrook Terrace, IL 60181-4644
800-523-1661
Annuity Service Office
P.O. Box 10366
Des Moines, IA 50306
515-243-5834
800-343-8496
CL-2081 (9/97) Policy Form Series 21-VARI-MOC (9/97)
XL-407, CL-407,
XL-617, CL-617
