As filed with the SEC on April 24, 1996
Registration No. 33-54926
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. []
Post-Effective Amendment No. [3]
REGISTRATION STATEMENT UNDER THE INVESTMENT
COMPANY ACT OF 1940 [X]
Amendment No. [5]
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
(Exact name of registrant)
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(Name of depositor)
82 Devonshire Street
Boston, Massachusetts 02109
(Address of depositor's principal executive offices)
Depositor's telephone number: (800) 544-8888
_________________________________________________
RODNEY R. ROHDA
Chairman
Fidelity Investments Life Insurance Company
82 Devonshire Street, R25C
Boston, Massachusetts 02109
(Name and address of agent for service)
___________________________________________________________
Copy to:
MICHAEL BERENSON
Jorden Burt Berenson & Johnson LLP
1025 Thomas Jefferson Street, Suite 400 East
Washington, D.C. 20007
___________________________________________________________
Individual Variable Annuity Contracts -- Pursuant to Rule 24f-2 under the
Investment Company Act of 1940, the Registrant has registered an indefinite
number of securities. Registrant's Rule 24f-2 Notice for the fiscal year
ending December 31, 1995 was filed February 26, 1996.
It is proposed that this filing will become effective (check appropriate
space):
immediately upon filing pursuant to paragraph (b) of rule 485
x on April 30, 1996, pursuant to paragraph (b) (1) (v) of rule 485
60 days after filing pursuant to paragraph (a) (1) of rule 485
on , pursuant to paragraph (a) (1) of rule 485
75 days after filing pursuant to paragraph (a) (2) of rule 485 Page _
of _
on , pursuant to paragraph (a) (2) of rule 485 Exhibit
Index Appears on Page __
CROSS REFERENCE TO ITEMS REQUIRED BY FORM N-4
Part A
Item N-4 Item Heading in Prospectus
Item 1 . Cover Page Cover Page
Item 2. Definitions Glossary
Item 3. Synopsis or Highlights Summary of the Contract
Item 4. Condensed Financial Information Not Applicable
Item 5. General Description of Facts About FILI
Registrant, Depositor, and The Variable Account, and
Portfolio Companies the Funds
a) Depositor FILI
b) Registrant The Variable Account
c) Portfolio Company The Funds
d) Prospectus The Funds
e) Voting Voting Rights
f) Administrator Charges
Item 6. Deductions and Expenses Charges
a) Deductions Charges
b) Sales load Not applicable
c) Special purchase plans Not applicable
d) Commissions Selling the Contracts
e) Registrant's expenses Charges
f) Portfolio company deductions The Funds
and expenses
g) Organizational expenses Not applicable
Item 7. General Description of Variable
Annuity Contracts
a) Rights Summary of the Contract;
Investment Allocation of
Your Purchase Payment;
Death Benefit; Facts About the
Contract; Types of
Annuity Income Options;
Voting Rights; Other
Contract Provisions
b) Provisions and limitations Investment Allocation of
Your Purchase Payment; Free Look
Privilege
c) Changes in contracts or Changes in Investment
operations Options
d) Contract owner inquiries Cover Page
Item 8. Annuity Period
a) Level of benefits Fixed, Variable or
Combination Annuity
Income; Types of
Annuity Income Options
b) Annuity commencement date Annuity Income Dates
c) Annuity payments Types of Annuity Income
Options
d) Assumed investment return Fixed, Variable or
Combination Annuity
Income
e) Minimums Cover Page, Summary of the Contract
f) Rights to change options or Investment Allocation of
transfer contract value Your Purchase Payment
Item 9. Death Benefit
a) Death benefit calculation Death Benefit
b) Forms of benefits Death Benefit; Types of Annuity
Income Options; Fixed, Variable
or Combination Annuity Income
Item 10. Purchases and Contract Values
a) Procedures for purchases Purchase of a Contract
b) Accumulation unit value Not Applicable
c) Calculation of accumulation Not Applicable
unit value
d) Principal underwriter Selling the Contracts
Item 11. Redemptions
a) Redemption procedures Not Applicable
b) Texas Optional Retirement Not Applicable
Program
c) Delay Postponement of
Benefits
d) Lapse Not Applicable
e) Revocation rights Free Look Privilege
Item 12. Taxes
a) Tax Consequences Tax Considerations
b) Qualified plans Tax Considerations
c) Impact of taxes Tax Considerations
Item 13. Legal Proceedings Litigation
Item 14. Table of Contents for Table of Contents for
Statement of Additional Statement of Additional
Information Information
Part B Heading in Statement of
Form N-4 Item Additional Information
Item 15. Cover Page Cover Page
Item 16. Table of Contents Table of Contents
Item 17. General Information and
History
a) Name change FILI
(prospectus)
b) Attribution of Assets Not Applicable
c) Control of Depositor FILI (prospectus)
Item 18. Services
a) Fees, expenses and costs Fee Table, (prospectus), Charges,
(prospectus); The Funds (prospectus)
b) Management - related Not applicable
services
c) Custodian and independent Independent Accountants
public accountant
d) Other custodianship Safekeeping of Variable Account
Assets
e) Administrative servicing Not applicable
agent
f) Depositor as principal Not Applicable
underwriter
Item 19. Purchase of Securities Being
Offered
a) Manner of Offering Distribution of the
Contracts; Selling the
Contracts (prospectus)
b) Sales load Not Applicable
Item 20. Underwriters
a) Depositor or affiliate as Selling the Contracts
principal underwriter (prospectus)
b) Continuous offering Distribution of Contracts
c) Underwriting commissions Not Applicable
d) Payments to underwriter Not Applicable
Item 21. Calculation of Performance Data Performance
Item 22. Annuity Payments Fixed, Variable or Combination
Annuity Income
Item 23. Financial Statements
a) Registrant Financial Statements
b) Depositor Financial Statements
PART A
INFORMATION REQUIRED IN A PROSPECTUS
PROSPECTUS
1.FIDELITY INCOME ADVANTAGE
This prospectus describes a single premium immediate variable annuity
contract (the "Contract") offered by Fidelity Investments Life Insurance
Company ("FILI", "we" or "us"), the insurance company that is part of the
group of financial service companies known as Fidelity Investments. Under
the Contract, we provide lifetime annuity income to you (the "Annuitant")
at regular intervals (the "Annuity Income Dates"). You choose the first
Annuity Income Date, which may be up to one year from the day we issue the
Contract (the "Contract Date"), and whether you want the Annuity Income
Dates to be monthly, quarterly, semi-annual or annual. Annuity income can
be for your lifetime, or for your lifetime and the lifetime of a second
person you name (the "Joint Annuitant"). You may choose a guaranteed
minimum number of years of annuity income.
There are three types of Contracts. You may purchase a "Non-qualified
Contract" with money from any source. In addition, you may purchase a
"Qualified Contract" that is an Individual Retirement Annuity with
contributions rolled-over from tax-qualified plans such as 403(b) plans,
401(k) plans, or IRAs. You may also arrange with your employer to purchase
a "Tax-Sheltered Annuity Contract" using money from a 403(b) tax-sheltered
annuity plan.
You purchase a Contract with a single payment (the "Purchase Payment"). You
may not make additional purchase payments. The minimum Purchase Payment for
a Contract is generally $25,000. You allocate your Purchase Payment between
fixed and variable annuity income. You may choose all fixed annuity income,
all variable annuity income, or a combination of the two. If you allocate
all or a portion to variable annuity income, you may choose one or more of
the ten Investment Options of the Fidelity Investments Variable Annuity
Account I (the "Variable Account"). Amounts allocated to the Investment
Options will result in annuity income that varies in amount according to
the investment results of the Investment Options. The Investment Options
invest exclusively in the mutual fund portfolios ("Portfolios") of Variable
Insurance Products Fund and Variable Insurance Products Fund II (the
"Funds"). Fidelity Management & Research Company ("FMR") manages the Funds.
Additional Investment Options may be added in the future.
For a Non-qualified Contract, the portion of annuity income that is
considered a return of the Purchase Payment will generally be non-taxable,
and the portion of annuity income that is considered a distribution of
earnings will generally be taxable. For Qualified Contracts and
Tax-Sheltered Annuity Contracts the entire amount of annuity income each
year will generally be taxable. For a more detailed discussion of the tax
treatment of annuity income, see TAX CONSIDERATIONS on page .
The portion of your Purchase Payment that you allocate to the Investment
Options will be allocated to the Money Market Investment Option for the
period we estimate or calculate your "free look" right to be in existence.
See FREE LOOK PRIVILEGE on page .
This prospectus provides information that you should know before purchasing
a Contract. Additional information about the Contract and the Variable
Account has been filed with the Securities and Exchange Commission in a
Statement of Additional Information dated April 30, 199 6 . The
Statement of Additional Information is incorporated by reference in this
prospectus and is available without charge by calling FILI at 800-544-2442.
The table of contents of the Statement of Additional Information appears on
page .
LIKE ALL VARIABLE ANNUITIES, THESE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE
SECURITIES COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
PLEASE READ THIS PROSPECTUS AND KEEP IT FOR FUTURE REFERENCE. IT IS NOT
VALID UNLESS ACCOMPANIED BY THE CURRENT PROSPECTUS FOR VARIABLE INSURANCE
PRODUCTS FUND AND VARIABLE INSURANCE PRODUCTS FUND II.
FOR FURTHER INFORMATION CALL FIDELITY INVESTMENTS
Nationwide 1-800-544-2442
Date: April 30, 199 6
PROSPECTUS CONTENTS
GLOSSARY
Summary of the Contract
FACTS ABOUT FILI, THE VARIABLE ACCOUNT AND THE FUNDS
FILI
The Variable Account
The Funds
FACTS ABOUT THE CONTRACT
Purchase of a Contract
Free Look Privilege
Investment Allocation of Your Purchase Payment
Charges
Annuity Income Dates
Signature Guarantee
Death Benefit
Fixed, Variable or Combination Annuity Income
Benchmark Rate of Return
Types of Annuity Income Options
Reports
MORE ABOUT THE CONTRACT
Tax Considerations
Other Contract Provisions
Selling the Contracts
Postponement of Benefits
MORE ABOUT THE VARIABLE ACCOUNT AND THE FUNDS
Changes in Investment Options
Net Rate of Return for an Investment Option
Voting Rights
Resolving Material Conflicts
Performance
Litigation
Appendix - Illustrations of Values
Table of Contents of the Statement of Additional Information
THE CONTRACT IS NOT AVAILABLE IN ALL STATES. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH SUCH OFFERING MAY NOT
LAWFULLY BE MADE. NO PERSON IS AUTHORIZED TO MAKE ANY REPRESENTATIONS IN
CONNECTION WITH THIS OFFERING OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS.
2.GLOSSARY
ANNUITANT - You are the Annuitant. You receive lifetime income. For
Qualified Contracts and Tax-Sheltered Annuity Contracts all annuity income
during your lifetime must be received only by you. Either you or the Joint
Annuitant generally must be no older than 85 years of age on the Contract
Date. You must also be an Owner.
ANNUITY INCOME DATES - The dates we determine the amount of annuity income.
If the New York Stock Exchange is closed on an Annuity Income Date, we will
determine the amount of annuity income on the next day it is open. You
choose whether you want Annuity Income Dates to be monthly, quarterly,
semi-annual or annual.
ANNUITY INCOME UNIT - A unit of measure used to calculate the amount of
variable annuity income.
BENCHMARK RATE OF RETURN - The return that is assumed in the calculation of
each amount of variable annuity income. The Benchmark Rate of Return
applies only to the variable income portion of the Contract.
The estimated first annuity income amount is calculated assuming that the
Investment Options will earn the Benchmark Rate of Return you choose. If
the performance (after all expenses) of the Investment Options you choose
matches the benchmark, annuity income will stay constant. If the
performance exceeds the benchmark, annuity income will increase. If
performance falls below the benchmark, annuity income will decrease.
If you choose a higher benchmark, annuity income will start at a higher
amount but you will need better investment performance in order to keep
annuity income from declining.
You will be able to choose a Benchmark Rate of Return of 3.5% or 5.0%. We
may make other rates available, as permitted by state law.
BENEFICIARY(IES) - The person(s) who may receive certain benefits under
this Contract when there is no longer a living Annuitant or Joint
Annuitant.
CODE - The Internal Revenue Code of 1986, as amended.
CONTRACT - A Contract designed to provide you and the Joint Annuitant, (if
any), with annuity income for your life (or lives) beginning with the first
Annuity Income Date.
CONTRACT DATE - The date your Contract becomes effective. This will be
stated in your Contract.
FUNDS - Variable Insurance Products Fund and Variable Insurance Products
Fund II.
INVESTMENT OPTIONS - Asset Manager Investment Option, Money Market
Investment Option, Investment Grade Bond Investment Option, High Income
Investment Option, Equity-Income Investment Option, Index 500 Investment
Option, Growth Investment Option, Overseas Investment Option, Asset
Manager: Growth Investment Option and Contrafund Investment Option. We may
make additional Investment Options available in the future. Each Investment
Option is a division of the Variable Account.
IRA - Refers generally to both an Individual Retirement Account and an
Individual Retirement Annuity as defined in Sections 408(a) and (b),
respectively, of the Code. When it is used to refer to a Qualified
Contract, it means a Contract that qualifies as an Individual Retirement
Annuity as defined in Section 408(b) of the Code.
JOINT ANNUITANT - The Joint Annuitant, (if any), receives lifetime annuity
income. However, for Qualified Contracts and Tax-Sheltered Annuity
Contracts, all annuity income during the Annuitant's lifetime must be
received only by the Annuitant. Either the Annuitant or the Joint Annuitant
generally must be no older than 85 years of age on the Contract Date. For
Non-qualified Contracts the Joint Annuitant may, but need not be, an Owner.
For Qualified Contracts and Tax-Sheltered Annuity Contracts the Joint
Annuitant may not be an Owner.
NET RATE OF RETURN - An index used to measure the investment performance of
an Investment Option from one Valuation Period to the next.
NON-QUALIFIED CONTRACT - A Contract other than a Qualified Contract or
Tax-Sheltered Annuity Contract. This type of Contract may be purchased with
money from any source.
OWNER(S) - The person(s) who have certain rights under the Contract. You
(the Annuitant) must be an Owner. If there is a Joint Annuitant, he or she
may also be an Owner (except for a Qualified Contract or Tax-Sheltered
Annuity Contract, where only one Owner is permitted). The Joint Annuitant
is never required to be an Owner. Only you and the Joint Annuitant, (if
any), may ever be Owners.
PORTFOLIO - An investment portfolio of a Fund.
QUALIFIED CONTRACT - A Contract that qualifies as an Individual Retirement
Annuity under Section 408(b) of the Code.
TAX-SHELTERED ANNUITY CONTRACT - A Contract purchased with money in a
tax-sheltered annuity under section 403(b) of the Code.
VALUATION PERIOD - The period of time from the time Annuity Income Unit
values are calculated to the next time such values are calculated. These
calculations are made as of the close of business (normally 4:00 p.m.
Eastern Time) each day the New York Stock Exchange is open for trading.
VARIABLE ACCOUNT - Fidelity Investments Variable Annuity Account I.
YOU - The Annuitant. The Annuitant is always an Owner.
THIS PAGE INTENTIONALLY LEFT BLANK
3.SUMMARY OF THE CONTRACT
The purpose of this variable annuity contract is to provide periodic
annuity income for your life, or for your life and the life of a Joint
Annuitant. You may select from a number of annuity income options. You may
also choose a guaranteed minimum number of years of annuity income. See
TYPES OF ANNUITY INCOME OPTIONS on page . You may choose annuity income
that is entirely fixed, entirely variable, or a combination of fixed and
variable. See FIXED, VARIABLE OR COMBINATION ANNUITY INCOME on page . We
guarantee to provide annuity income for each Annuity Income Date for your
lifetime and for the lifetime of the Joint Annuitant, (if any). We
guarantee the amount of fixed annuity income on each Annuity Income Date,
but we do not guarantee the amount of any variable annuity income. Neither
do we guarantee any minimum number of Annuity Income Dates, unless you
choose an option that provides for such a guarantee. The amount of variable
annuity income will fluctuate from one Annuity Income Date to the next
according to the investment results of the Investment Options you select.
The Investment Options invest in mutual fund portfolios that are managed by
Fidelity Management & Research Company.
You purchase the Contract with a single Purchase Payment. The minimum
Purchase Payment is generally $25,000. FILI reserves the right to reject
Purchase Payments in excess of limits it establishes from time to time. You
allocate your Purchase Payment between variable and fixed annuity income on
your application. This allocation may not be changed. The portion of your
Purchase Payment allocated to variable annuity income will be placed in the
Money Market Investment Option during the free look period (see FREE LOOK
PRIVILEGE on page ). You may currently reallocate among the Investment
Options at any time after the end of the free look period.
You may return the Contract for a refund during the free look period. ONCE
THE FREE LOOK PERIOD EXPIRES, THE CONTRACT MAY NOT BE RETURNED FOR A
REFUND. If neither you nor the Joint Annuitant survives to the first
Annuity Income Date, the Contract will be canceled and we will make a
refund equal to your Purchase Payment to your Beneficiary or Beneficiaries.
See DEATH BENEFIT on page .
There are three types of Contracts. You may purchase a Non-qualified
Contract with money from any source. In addition, you may purchase a
Qualified Contract that is an Individual Retirement Annuity with
contributions rolled-over from tax-qualified plans such as 403(b) plans,
401(k) plans, or IRAs. You may also arrange with your employer to purchase
a Tax-Sheltered Annuity Contract using money from a 403(b) tax-sheltered
annuity plan.
Under the Contract, we will distribute lifetime annuity income to you or to
you and the Joint Annuitant. The federal income tax laws have a special
requirement for Qualified and Tax-Sheltered Annuity Contracts that have a
Joint Annuitant. For these Contracts, during your lifetime annuity income
can be payable only to you.
You are an Owner of the Contract. The Joint Annuitant will also be an Owner
if so named on the application, except that for Qualified Contracts and
Tax-Sheltered Annuity Contracts you must be the only Owner.
There are currently ten Investment Options. Five Investment Options invest
in Variable Insurance Products Fund, which currently offers Money Market
Portfolio, High Income Portfolio, Equity-Income Portfolio, Growth Portfolio
and Overseas Portfolio. The remaining five Investment Options invest in
Variable Insurance Products Fund II, which currently offers Investment
Grade Bond Portfolio, Index 500 Portfolio, Asset Manager Portfolio, Asset
Manager: Growth Portfolio and Contrafund Portfolio. Variable Insurance
Products Fund and Variable Insurance Products Fund II are collectively
referred to as the "Funds."
We intend this summary to provide only an overview of the more significant
aspects of the Contract. You will find more detailed information in the
rest of this prospectus and in the Contract. Please retain the Contract
together with its attached application. Together they are the entire
agreement between you and FILI.
4.FEE TABLE
This information is intended to help you understand the various costs and
expenses that a Contract will bear directly or indirectly. It reflects
expenses of the Variable Account as well as the Portfolios. The tables
below do not reflect any deductions for taxes. Any applicable premium taxes
are deducted from a contract on the contract date. See CHARGES on page of
this Prospectus for additional information.
CONTRACT EXPENSES
NONE
SEPARATE ACCOUNT ANNUAL EXPENSES
(as a percentage of Portfolio average net assets)
Mortality and Expense Risk Charge 0.75%
Account Fees and Expenses:
Administrative Charge 0.25%
Total Separate Account Annual Expenses 1.00%
PORTFOLIO ANNUAL EXPENSES
(as a percentage of Portfolio average net assets)
MANAGEMENT OTHER TOTAL ANNUAL
FEES EXPENSES EXPENSES
ASSET MANAGER1 0. 71 % 0.08% 0. 79 %
MONEY MARKET 0. 24 % 0. 09 % 0. 33 %
INVESTMENT GRADE BOND 0. 45 % 0. 14 % 0. 59 %
HIGH INCOME1 0. 60 % 0. 11 % 0. 71 %
EQUITY-INCOME 0. 51 % 0. 10 % 0. 61 %
INDEX 5002 0.00% 0.28% 0. 28 %
GROWTH 0. 61 % 0. 09 % 0. 70 %
OVERSEAS 0. 76 % 0.15% 0. 91 %
ASSET MANAGER:
GROWTH1, 2 0. 71 % 0. 29 % 1.00 %
CONTRAFUND1 0. 61 % 0. 11 % 0. 72 %
(1) A portion of the brokerage commissions the fund paid was used to
reduce its expenses. Without this reduction total operating expenses would
have been for High Income: 0.71% [please note - there were brokerage
commissions paid, but it did not affect the ratio]; for Asset Manager
0.81%; for Asset Manager: Growth: 1.13%; and for Contrafund: 0.73%.
(2) The fund's expenses were voluntarily reduced by the fund's
investment adviser. Absent reimbursement, management fee, other expenses,
and total expenses would have been 0.28%, 0.19% and 0.47%, respectively
for Index 500 Portfolio; and 0.71%, 0.42% and 1.13%, respectively for Asset
Manager: Growth Portfolio.
The effects of the fees and charges shown above are reflected in the
illustrations of annuity income contained in the Appendix at the end of
this prospectus. The illustrations are intended to assist you in assessing
the effects of these fees and charges, and the effect of investment
performance, on the amount of your annuity income.
5.FACTS ABOUT FILI, THE VARIABLE ACCOUNT, AND THE FUNDS
FILI
FILI is a stock life insurance company organized under the laws of the
State of Utah. FILI was organized in 1981 under the laws of the
Commonwealth of Pennsylvania and changed its home state to Utah in 1992.
FILI is part of Fidelity Investments, a group of companies that provides a
variety of financial services and products. FILI is a wholly-owned
subsidiary of FMR Corp., the parent company of the Fidelity companies.
Through ownership of voting common stock, Edward C. Johnson 3d, Johnson
family members, and various trusts for the benefit of Johnson family
members form a controlling group with respect to FMR Corp. FMR Corp.
acquired FILI on December 30, 1986. Immediately before the acquisition FILI
(which was known by a different name) had no outstanding assets or
liabilities relating to annuity or insurance contracts. FILI's financial
statements appear in the Statement of Additional Information. Our principal
executive offices are located at 82 Devonshire Street, Boston,
Massachusetts 02109.
THE VARIABLE ACCOUNT
Fidelity Investments Variable Annuity Account I was established as a
separate investment account on July 22, 1987. It supports the Contracts and
other forms of variable annuity contracts, and may be used for other
purposes permitted by law.
The Variable Account is registered with the Securities and Exchange
Commission ("SEC") as a unit investment trust under the Investment Company
Act of 1940 ("1940 Act"). Financial statements for the Variable Account are
in the Statement of Additional Information.
FILI owns the assets in the Variable Account. The assets of the Variable
Account are kept separate from FILI's general account assets and from any
other separate accounts FILI may have, as required by law. The assets of
the Variable Account may not be charged with liabilities from any other
business FILI conducts. All income, gains and losses concerning assets
allocated to the Variable Account are credited to or charged against the
Variable Account without regard to other income, gains or losses of FILI.
Assets are maintained in the Variable Account at least equal to the
reserves and other liabilities of the Variable Account. If the assets
exceed the required reserves and other liabilities, FILI may transfer the
excess to its general account. FILI is obligated to provide all benefits
under the Contracts.
THE FUNDS
The Funds are Variable Insurance Products Fund and Variable Insurance
Products Fund II. Each Fund is an open-end, diversified management
investment company organized by FMR and is the type of investment company
commonly known as a series mutual fund.
The investment objectives of the Portfolios of Variable Insurance Products
Fund and Variable Insurance Products Fund II are described below. There is
of course no assurance that any Portfolio will meet its investment
objective.
Following the description of each Portfolio is a graph showing how your
annuity income can fluctuate based on past investment performance through
December 31, 199 5 . Each graph shows the effect that the Portfolio's
investment performance would have had if a Contract with a Benchmark Rate
of Return of 5.0%, providing an initial monthly annuity income of $500, was
purchased on the date the Portfolio commenced operations. Annuity income
increases for a given month if the annualized Net Rate of Return for that
month is higher than the Benchmark Rate of Return, and decreases for a
given month if the annualized Net Rate of Return is lower than the
Benchmark Rate of Return. The Purchase Payment necessary for an initial
monthly annuity income of $500 will vary depending on the age and sex of
the Annuitant (and Joint Annuitant, if any), the annuity income option and
the first Annuity Income Date. Suppose a 65 year old male who lives in a
state that does not charge a premium tax wishes to purchase $500 of initial
monthly variable annuity income beginning on the Contract Date. If there is
no Joint Annuitant and no guarantee period and he chooses a 5% Benchmark
Rate of Return, the Purchase Payment needed would be $73, 549 . If the
purchaser were female, the Purchase Payment necessary would be
$82, 441 . This is because females have a longer life expectancy than
males.
All the graphs take into account all charges under the Contract and the
actual expenses of the Portfolios.
N.FIA
6
6.THE PORTFOLIOS
ASSET MANAGER PORTFOLIO of Variable Insurance Products Fund II seeks high
total return with reduced risk over the long-term by allocating its assets
among stocks, bonds and short-term, fixed income instruments. The graph
below is based on a 5% Benchmark Rate of Return and initial monthly annuity
income of $500.
PROSPECTUS CHARTS
M&E 0.01
BRR 0.05
Month # of Days Asset Manager
Apr-82
May-82 31.00
Jun-82 30.00
Jul-82 31.00
Aug-82 31.00
Sep-82 30.00
Oct-82 31.00
Nov-82 30.00
Dec-82 31.00
Jan-83 31.00
Feb-83 28.00
Mar-83 31.00
Apr-83 30.00
May-83 31.00
Jun-83 30.00
Jul-83 31.00
Aug-83 31.00
Sep-83 30.00
Oct-83 31.00
Nov-83 30.00
Dec-83 31.00
Jan-84 31.00
Feb-84 29.00
Mar-84 31.00
Apr-84 30.00
May-84 31.00
Jun-84 30.00
Jul-84 31.00
Aug-84 31.00
Sep-84 30.00
Oct-84 31.00
Nov-84 30.00
Dec-84 31.00
Jan-85 31.00
Feb-85 28.00
Mar-85 31.00
Apr-85 30.00
May-85 31.00
Jun-85 30.00
Jul-85 31.00
Aug-85 31.00
Sep-85 30.00
Oct-85 31.00
Nov-85 30.00
Dec-85 31.00
Jan-86 31.00
Feb-86 28.00
Mar-86 31.00
Apr-86 30.00
May-86 31.00
Jun-86 30.00
Jul-86 31.00
Aug-86 31.00
Sep-86 30.00
Oct-86 31.00
Nov-86 30.00
Dec-86 31.00
Jan-87 31.00
Feb-87 28.00
Mar-87 31.00
Apr-87 30.00
May-87 31.00
Jun-87 30.00
Jul-87 31.00
Aug-87 31.00
Sep-87 30.00
Oct-87 31.00
Nov-87 30.00
Dec-87 31.00
Jan-88 31.00
Feb-88 29.00
Mar-88 31.00
Apr-88 30.00
May-88 31.00
Jun-88 30.00
Jul-88 31.00
Aug-88 31.00
Sep-88 30.00
Oct-88 31.00
Nov-88 30.00
Dec-88 31.00
Jan-89 31.00
Feb-89 28.00
Mar-89 31.00
Apr-89 30.00
May-89 31.00
Jun-89 30.00
Jul-89 31.00
Aug-89 31.00
Sep-89 30.00 $500
Oct-89 31.00 0.20 100.11% $499
Nov-89 30.00 0.40 100.32% $498
Dec-89 31.00 0.31 100.22% $497
Jan-90 31.00 -2.21 97.71% $484
Feb-90 28.00 1.03 100.95% $486
Mar-90 31.00 0.81 100.73% $488
Apr-90 30.00 -1.31 98.61% $479
May-90 31.00 5.10 105.01% $501
Jun-90 30.00 0.78 100.69% $503
Jul-90 31.00 -0.19 99.72% $499
Aug-90 31.00 -3.28 96.64% $480
Sep-90 30.00 -2.10 97.82% $468
Oct-90 31.00 0.51 100.42% $468
Nov-90 30.00 4.87 104.78% $489
Dec-90 31.00 2.90 102.81% $500
Jan-91 31.00 4.79 104.70% $522
Feb-91 28.00 3.91 103.83% $540
Mar-91 31.00 1.61 101.53% $545
Apr-91 30.00 1.50 101.42% $551
May-91 31.00 2.26 102.17% $561
Jun-91 30.00 -1.79 98.13% $548
Jul-91 31.00 2.51 102.42% $559
Aug-91 31.00 2.03 101.94% $567
Sep-91 30.00 0.58 100.50% $568
Oct-91 31.00 0.66 100.57% $569
Nov-91 30.00 -1.64 98.28% $557
Dec-91 31.00 4.32 104.23% $578
Jan-92 31.00 1.27 101.19% $582
Feb-92 29.00 1.94 101.86% $591
Mar-92 31.00 -0.24 99.67% $587
Apr-92 30.00 1.47 101.38% $592
May-92 31.00 1.04 100.96% $596
Jun-92 30.00 -0.08 99.84% $592
Jul-92 31.00 1.67 101.58% $599
Aug-92 31.00 -0.31 99.60% $594
Sep-92 30.00 0.63 100.54% $595
Oct-92 31.00 0.16 100.07% $593
Nov-92 30.00 2.18 102.10% $603
Dec-92 31.00 1.60 101.51% $610
Jan-93 31.00 1.80 101.71% $618
Feb-93 28.00 0.94 100.86% $621
Mar-93 31.00 2.83 102.74% $635
Apr-93 30.00 0.60 100.52% $636
May-93 31.00 1.70 101.61% $643
Jun-93 30.00 0.80 100.72% $645
Jul-93 31.00 1.23 101.14% $650
Aug-93 31.00 2.92 102.83% $666
Sep-93 30.00 0.07 99.99% $663
Oct-93 31.00 2.70 102.61% $677
Nov-93 30.00 -0.13 99.79% $673
Dec-93 31.00 4.05 103.96% $697
Jan-94 31.00 3.18 103.09% $716
Feb-94 28.00 -3.18 96.75% $690
Mar-94 31.00 -4.70 95.22% $654
Apr-94 30.00 0.07 99.99% $651
May-94 31.00 0.86 100.77% $654
Jun-94 30.00 -1.91 98.01% $638
Jul-94 31.00 1.73 101.64% $646
Aug-94 31.00 2.34 102.25% $658
Sep-94 30.00 -1.18 98.74% $647
Oct-94 31.00 0.49 100.40% $647
Nov-94 30.00 -1.47 98.45% $634
Dec-94 31.00 -2.20 97.72% $617
Jan-95 31.00 -0.65 99.27% $610
Feb-95 28.00 1.62 101.54% $617
Mar-95 31.00 1.32 101.23% $622
Apr-95 30.00 1.59 101.51% $629
May-95 31.00 1.28 101.19% $634
Jun-95 30.00 0.84 100.76% $636
Jul-95 31.00 3.56 103.47% $655
Aug-95 31.00 1.21 101.12% $660
Sep-95 30.00 1.26 101.18% $665
Oct-95 31.00 -1.31 98.61% $653
Nov-95 30.00 2.60 102.52% $667
Dec-95 31.00 2.53 102.44% $680
Listed in Order Max 716
to match MFPR Min 468
7
N.FIA
MONEY MARKET PORTFOLIO of Variable Insurance Products Fund seeks to obtain
as high a level of current income as is consistent with preserving capital
and providing liquidity. It invests only in high-quality money market
instruments. The graph below is based on a 5% Benchmark Rate of Return and
initial monthly annuity income of $500.
PROSPECTUS CHACUMULATIVE ONE MONTH TOTAL RETURNS
M&E 0.01
BRR 0.05
Month # of Days Money Market
Apr-82 $500
May-82 31.00 1.16 101.07% $503
Jun-82 30.00 1.12 101.04% $506
Jul-82 31.00 1.18 101.09% $510
Aug-82 31.00 1.03 100.94% $513
Sep-82 30.00 0.89 100.81% $515
Oct-82 31.00 0.86 100.78% $516
Nov-82 30.00 0.80 100.71% $518
Dec-82 31.00 0.77 100.68% $519
Jan-83 31.00 0.72 100.63% $521
Feb-83 28.00 0.63 100.56% $521
Mar-83 31.00 0.70 100.61% $523
Apr-83 30.00 0.68 100.60% $524
May-83 31.00 0.69 100.60% $525
Jun-83 30.00 0.68 100.60% $526
Jul-83 31.00 0.77 100.69% $527
Aug-83 31.00 0.80 100.72% $529
Sep-83 30.00 0.79 100.70% $530
Oct-83 31.00 0.80 100.71% $532
Nov-83 30.00 0.76 100.68% $533
Dec-83 31.00 0.77 100.68% $535
Jan-84 31.00 0.77 100.69% $536
Feb-84 29.00 0.73 100.65% $537
Mar-84 31.00 0.80 100.71% $539
Apr-84 30.00 0.80 100.72% $541
May-84 31.00 0.85 100.76% $543
Jun-84 30.00 0.85 100.77% $545
Jul-84 31.00 0.91 100.82% $547
Aug-84 31.00 0.92 100.83% $549
Sep-84 30.00 0.90 100.82% $551
Oct-84 31.00 0.90 100.81% $553
Nov-84 30.00 0.79 100.71% $555
Dec-84 31.00 0.75 100.66% $557
Jan-85 31.00 0.71 100.62% $558
Feb-85 28.00 0.62 100.54% $559
Mar-85 31.00 0.70 100.61% $560
Apr-85 30.00 0.68 100.60% $561
May-85 31.00 0.68 100.60% $562
Jun-85 30.00 0.62 100.54% $563
Jul-85 31.00 0.63 100.54% $563
Aug-85 31.00 0.63 100.55% $564
Sep-85 30.00 0.62 100.53% $565
Oct-85 31.00 0.65 100.56% $566
Nov-85 30.00 0.63 100.55% $566
Dec-85 31.00 0.65 100.57% $567
Jan-86 31.00 0.65 100.56% $568
Feb-86 28.00 0.57 100.50% $569
Mar-86 31.00 0.62 100.54% $570
Apr-86 30.00 0.57 100.49% $570
May-86 31.00 0.56 100.47% $570
Jun-86 30.00 0.54 100.45% $571
Jul-86 31.00 0.55 100.46% $571
Aug-86 31.00 0.52 100.44% $571
Sep-86 30.00 0.48 100.39% $571
Oct-86 31.00 0.49 100.40% $571
Nov-86 30.00 0.47 100.38% $571
Dec-86 31.00 0.49 100.40% $571
Jan-87 31.00 0.50 100.41% $571
Feb-87 28.00 0.43 100.36% $571
Mar-87 31.00 0.48 100.40% $570
Apr-87 30.00 0.48 100.40% $570
May-87 31.00 0.52 100.43% $571
Jun-87 30.00 0.52 100.44% $571
Jul-87 31.00 0.54 100.45% $571
Aug-87 31.00 0.54 100.45% $571
Sep-87 30.00 0.53 100.45% $572
Oct-87 31.00 0.57 100.49% $572
Nov-87 30.00 0.54 100.46% $572
Dec-87 31.00 0.59 100.51% $573
Jan-88 31.00 0.58 100.49% $573
Feb-88 29.00 0.51 100.43% $573
Mar-88 31.00 0.54 100.46% $574
Apr-88 30.00 0.52 100.44% $574
May-88 31.00 0.55 100.47% $574
Jun-88 30.00 0.56 100.48% $575
Jul-88 31.00 0.60 100.51% $575
Aug-88 31.00 0.63 100.55% $576
Sep-88 30.00 0.63 100.55% $577
Oct-88 31.00 0.66 100.57% $578
Nov-88 30.00 0.65 100.57% $579
Dec-88 31.00 0.71 100.63% $580
Jan-89 31.00 0.74 100.65% $581
Feb-89 28.00 0.67 100.59% $582
Mar-89 31.00 0.78 100.69% $584
Apr-89 30.00 0.77 100.69% $586
May-89 31.00 0.79 100.71% $587
Jun-89 30.00 0.75 100.67% $589
Jul-89 31.00 0.75 100.67% $590
Aug-89 31.00 0.73 100.64% $592
Sep-89 30.00 0.71 100.63% $593
Oct-89 31.00 0.69 100.60% $594
Nov-89 30.00 0.68 100.59% $595
Dec-89 31.00 0.71 100.62% $597
Jan-90 31.00 0.66 100.57% $597
Feb-90 28.00 0.60 100.53% $598
Mar-90 31.00 0.69 100.60% $600
Apr-90 30.00 0.63 100.55% $600
May-90 31.00 0.67 100.58% $601
Jun-90 30.00 0.64 100.56% $602
Jul-90 31.00 0.66 100.58% $603
Aug-90 31.00 0.65 100.56% $604
Sep-90 30.00 0.63 100.54% $605
Oct-90 31.00 0.65 100.57% $606
Nov-90 30.00 0.63 100.55% $607
Dec-90 31.00 0.65 100.56% $608
Jan-91 31.00 0.64 100.55% $608
Feb-91 28.00 0.54 100.46% $609
Mar-91 31.00 0.50 100.41% $609
Apr-91 30.00 0.56 100.48% $609
May-91 31.00 0.50 100.41% $609
Jun-91 30.00 0.44 100.36% $609
Jul-91 31.00 0.52 100.43% $609
Aug-91 31.00 0.46 100.38% $609
Sep-91 30.00 0.47 100.39% $609
Oct-91 31.00 0.45 100.37% $609
Nov-91 30.00 0.41 100.33% $608
Dec-91 31.00 0.44 100.35% $608
Jan-92 31.00 0.41 100.32% $607
Feb-92 29.00 0.34 100.26% $606
Mar-92 31.00 0.37 100.28% $606
Apr-92 30.00 0.33 100.25% $605
May-92 31.00 0.30 100.22% $604
Jun-92 30.00 0.33 100.25% $603
Jul-92 31.00 0.31 100.22% $601
Aug-92 31.00 0.30 100.22% $600
Sep-92 30.00 0.28 100.20% $599
Oct-92 31.00 0.28 100.19% $598
Nov-92 30.00 0.29 100.21% $597
Dec-92 31.00 0.30 100.21% $595
Jan-93 31.00 0.28 100.19% $594
Feb-93 28.00 0.26 100.18% $593
Mar-93 31.00 0.29 100.20% $592
Apr-93 30.00 0.26 100.18% $590
May-93 31.00 0.24 100.15% $589
Jun-93 30.00 0.29 100.21% $588
Jul-93 31.00 0.26 100.17% $586
Aug-93 31.00 0.27 100.18% $585
Sep-93 30.00 0.25 100.17% $584
Oct-93 31.00 0.24 100.15% $582
Nov-93 30.00 0.27 100.19% $581
Dec-93 31.00 0.27 100.18% $580
Jan-94 31.00 0.27 100.18% $578
Feb-94 28.00 0.24 100.16% $577
Mar-94 31.00 0.29 100.20% $576
Apr-94 30.00 0.28 100.20% $575
May-94 31.00 0.34 100.25% $574
Jun-94 30.00 0.34 100.26% $573
Jul-94 31.00 0.34 100.25% $572
Aug-94 31.00 0.40 100.31% $571
Sep-94 30.00 0.38 100.30% $571
Oct-94 31.00 0.41 100.32% $570
Nov-94 30.00 0.41 100.33% $570
Dec-94 31.00 0.45 100.36% $570
Jan-95 31.00 0.50 100.41% $570
Feb-95 28.00 0.45 100.37% $569
Mar-95 31.00 0.50 100.41% $569
Apr-95 30.00 0.45 100.37% $569
May-95 31.00 0.53 100.44% $569
Jun-95 30.00 0.48 100.40% $569
Jul-95 31.00 0.49 100.40% $569
Aug-95 31.00 0.48 100.39% $569
Sep-95 30.00 0.45 100.37% $569
Oct-95 31.00 0.49 100.40% $569
Nov-95 30.00 0.46 100.38% $569
Dec-95 31.00 0.44 100.35% $568
Listed in Order Max 609
to match MFPR Min 500
N.FIA
8
INVESTMENT GRADE BOND PORTFOLIO of Variable Insurance Products Fund II
seeks as high a level of current income as is consistent with the
preservation of capital by investing in a broad range of investment-grade
fixed-income securities. The graph below is based on a 5% Benchmark Rate of
Return and initial monthly annuity income of $500.
PROSPECTUS CHARTS
M&E 0.01
BRR 0.05
Month # of Days Investment Grade Bond
Apr-82
May-82 31.00
Jun-82 30.00
Jul-82 31.00
Aug-82 31.00
Sep-82 30.00
Oct-82 31.00
Nov-82 30.00
Dec-82 31.00
Jan-83 31.00
Feb-83 28.00
Mar-83 31.00
Apr-83 30.00
May-83 31.00
Jun-83 30.00
Jul-83 31.00
Aug-83 31.00
Sep-83 30.00
Oct-83 31.00
Nov-83 30.00
Dec-83 31.00
Jan-84 31.00
Feb-84 29.00
Mar-84 31.00
Apr-84 30.00
May-84 31.00
Jun-84 30.00
Jul-84 31.00
Aug-84 31.00
Sep-84 30.00
Oct-84 31.00
Nov-84 30.00
Dec-84 31.00
Jan-85 31.00
Feb-85 28.00
Mar-85 31.00
Apr-85 30.00
May-85 31.00
Jun-85 30.00
Jul-85 31.00
Aug-85 31.00
Sep-85 30.00
Oct-85 31.00
Nov-85 30.00
Dec-85 31.00
Jan-86 31.00
Feb-86 28.00
Mar-86 31.00
Apr-86 30.00
May-86 31.00
Jun-86 30.00
Jul-86 31.00
Aug-86 31.00
Sep-86 30.00
Oct-86 31.00
Nov-86 30.00
Dec-86 31.00
Jan-87 31.00
Feb-87 28.00
Mar-87 31.00
Apr-87 30.00
May-87 31.00
Jun-87 30.00
Jul-87 31.00
Aug-87 31.00
Sep-87 30.00
Oct-87 31.00
Nov-87 30.00
Dec-87 31.00
Jan-88 31.00
Feb-88 29.00
Mar-88 31.00
Apr-88 30.00
May-88 31.00
Jun-88 30.00
Jul-88 31.00
Aug-88 31.00
Sep-88 30.00
Oct-88 31.00
Nov-88 30.00
Dec-88 31.00 $500
Jan-89 31.00 0.87 100.78% $502
Feb-89 28.00 0.22 100.14% $501
Mar-89 31.00 0.62 100.54% $501
Apr-89 30.00 1.11 101.03% $504
May-89 31.00 1.11 101.03% $507
Jun-89 30.00 1.92 101.84% $515
Jul-89 31.00 1.56 101.47% $520
Aug-89 31.00 -0.80 99.12% $513
Sep-89 30.00 0.39 100.31% $513
Oct-89 31.00 1.55 101.46% $518
Nov-89 30.00 0.86 100.78% $520
Dec-89 31.00 0.41 100.32% $520
Jan-90 31.00 -0.23 99.69% $516
Feb-90 28.00 0.57 100.49% $517
Mar-90 31.00 0.30 100.22% $516
Apr-90 30.00 0.04 99.96% $513
May-90 31.00 1.57 101.48% $519
Jun-90 30.00 0.78 100.70% $520
Jul-90 31.00 0.99 100.91% $523
Aug-90 31.00 -0.01 99.91% $520
Sep-90 30.00 0.39 100.31% $520
Oct-90 31.00 0.01 99.92% $517
Nov-90 30.00 0.60 100.52% $518
Dec-90 31.00 1.04 100.95% $521
Jan-91 31.00 0.20 100.12% $519
Feb-91 28.00 1.01 100.93% $522
Mar-91 31.00 1.69 101.61% $528
Apr-91 30.00 1.47 101.39% $533
May-91 31.00 0.77 100.69% $535
Jun-91 30.00 0.19 100.11% $533
Jul-91 31.00 0.86 100.77% $535
Aug-91 31.00 2.09 102.00% $543
Sep-91 30.00 1.86 101.77% $551
Oct-91 31.00 1.09 101.01% $554
Nov-91 30.00 1.08 101.00% $557
Dec-91 31.00 2.98 102.90% $571
Jan-92 31.00 -0.99 98.92% $563
Feb-92 29.00 0.55 100.47% $563
Mar-92 31.00 -0.18 99.73% $559
Apr-92 30.00 0.73 100.65% $561
May-92 31.00 1.54 101.45% $566
Jun-92 30.00 1.16 101.08% $570
Jul-92 31.00 2.03 101.94% $579
Aug-92 31.00 0.60 100.52% $580
Sep-92 30.00 1.20 101.12% $584
Oct-92 31.00 -1.27 98.65% $573
Nov-92 30.00 -0.26 99.66% $569
Dec-92 31.00 1.42 101.33% $574
Jan-93 31.00 2.10 102.01% $583
Feb-93 28.00 1.70 101.62% $591
Mar-93 31.00 0.44 100.35% $590
Apr-93 30.00 0.61 100.53% $591
May-93 31.00 0.17 100.08% $589
Jun-93 30.00 1.91 101.83% $597
Jul-93 31.00 0.68 100.59% $599
Aug-93 31.00 1.78 101.69% $606
Sep-93 30.00 0.50 100.42% $606
Oct-93 31.00 0.50 100.41% $606
Nov-93 30.00 -0.49 99.43% $600
Dec-93 31.00 0.59 100.50% $601
Jan-94 31.00 1.13 101.04% $605
Feb-94 28.00 -1.64 98.28% $592
Mar-94 31.00 -2.28 97.64% $576
Apr-94 30.00 -0.90 99.02% $568
May-94 31.00 -0.27 99.64% $563
Jun-94 30.00 -0.27 99.65% $559
Jul-94 31.00 1.64 101.55% $566
Aug-94 31.00 0.09 100.00% $563
Sep-94 30.00 -1.08 98.84% $554
Oct-94 31.00 0.09 100.00% $552
Nov-94 30.00 0.18 100.10% $550
Dec-94 31.00 -0.45 99.47% $545
Jan-95 31.00 1.45 101.36% $550
Feb-95 28.00 1.93 101.85% $559
Mar-95 31.00 0.64 100.55% $559
Apr-95 30.00 1.36 101.28% $564
May-95 31.00 4.01 103.92% $584
Jun-95 30.00 0.77 100.69% $586
Jul-95 31.00 -0.34 99.57% $581
Aug-95 31.00 1.19 101.10% $585
Sep-95 30.00 0.93 100.85% $587
Oct-95 31.00 1.34 101.25% $592
Nov-95 30.00 1.48 101.40% $598
Dec-95 31.00 1.38 101.29% $603
Listed in Order Max 606
to match MFPR Min 500
9
N.FIA
HIGH INCOME PORTFOLIO of Variable Insurance Products Fund seeks to obtain a
high level of current income by investing primarily in high-yielding,
lower-rated, fixed-income securities. In choosing these securities growth
of capital will also be considered. The graph below is based on a 5%
Benchmark Rate of Return and initial monthly annuity income of $500.
PROSPECTUS CHARTS
M&E 0.01
BRR 0.05
Month # of Days High Income
Apr-82
May-82 31.00
Jun-82 30.00
Jul-82 31.00
Aug-82 31.00
Sep-82 30.00
Oct-82 31.00
Nov-82 30.00
Dec-82 31.00
Jan-83 31.00
Feb-83 28.00
Mar-83 31.00
Apr-83 30.00
May-83 31.00
Jun-83 30.00
Jul-83 31.00
Aug-83 31.00
Sep-83 30.00
Oct-83 31.00
Nov-83 30.00
Dec-83 31.00
Jan-84 31.00
Feb-84 29.00
Mar-84 31.00
Apr-84 30.00
May-84 31.00
Jun-84 30.00
Jul-84 31.00
Aug-84 31.00
Sep-84 30.00
Oct-84 31.00
Nov-84 30.00
Dec-84 31.00
Jan-85 31.00
Feb-85 28.00
Mar-85 31.00
Apr-85 30.00
May-85 31.00
Jun-85 30.00
Jul-85 31.00
Aug-85 31.00
Sep-85 30.00 $500
Oct-85 31.00 1.25 101.16% $504
Nov-85 30.00 1.44 101.36% $509
Dec-85 31.00 3.34 103.25% $523
Jan-86 31.00 1.24 101.15% $527
Feb-86 28.00 3.38 103.30% $542
Mar-86 31.00 2.47 102.38% $553
Apr-86 30.00 1.70 101.62% $559
May-86 31.00 1.53 101.44% $565
Jun-86 30.00 1.26 101.18% $569
Jul-86 31.00 -0.30 99.61% $565
Aug-86 31.00 0.40 100.31% $564
Sep-86 30.00 0.85 100.77% $566
Oct-86 31.00 2.99 102.90% $580
Nov-86 30.00 0.32 100.24% $579
Dec-86 31.00 0.63 100.54% $580
Jan-87 31.00 3.65 103.56% $598
Feb-87 28.00 1.73 101.65% $606
Mar-87 31.00 0.91 100.82% $608
Apr-87 30.00 -3.13 96.79% $587
May-87 31.00 -0.93 98.99% $578
Jun-87 30.00 2.16 102.08% $588
Jul-87 31.00 0.11 100.02% $586
Aug-87 31.00 0.83 100.74% $588
Sep-87 30.00 -3.48 96.44% $564
Oct-87 31.00 -4.78 95.14% $535
Nov-87 30.00 2.95 102.86% $548
Dec-87 31.00 1.60 101.51% $554
Jan-88 31.00 3.29 103.20% $569
Feb-88 29.00 2.99 102.91% $583
Mar-88 31.00 -0.72 99.20% $576
Apr-88 30.00 0.78 100.70% $578
May-88 31.00 -0.15 99.76% $574
Jun-88 30.00 2.10 102.02% $584
Jul-88 31.00 1.04 100.95% $587
Aug-88 31.00 -0.48 99.44% $581
Sep-88 30.00 0.80 100.72% $583
Oct-88 31.00 1.09 101.00% $586
Nov-88 30.00 -0.38 99.54% $581
Dec-88 31.00 0.79 100.70% $583
Jan-89 31.00 2.40 102.31% $594
Feb-89 28.00 0.49 100.41% $594
Mar-89 31.00 -1.28 98.64% $584
Apr-89 30.00 -1.11 98.81% $574
May-89 31.00 1.85 101.76% $582
Jun-89 30.00 2.86 102.78% $596
Jul-89 31.00 -0.66 99.26% $589
Aug-89 31.00 -0.58 99.34% $582
Sep-89 30.00 -3.50 96.42% $559
Oct-89 31.00 -4.29 95.63% $533
Nov-89 30.00 0.08 100.00% $531
Dec-89 31.00 -0.27 99.64% $527
Jan-90 31.00 -2.21 97.71% $512
Feb-90 28.00 -1.54 98.38% $502
Mar-90 31.00 -1.06 98.86% $494
Apr-90 30.00 0.30 100.22% $493
May-90 31.00 2.05 101.96% $501
Jun-90 30.00 1.58 101.50% $507
Jul-90 31.00 1.54 101.45% $512
Aug-90 31.00 -1.67 98.25% $501
Sep-90 30.00 -2.37 97.55% $486
Oct-90 31.00 -2.43 97.49% $472
Nov-90 30.00 2.35 102.27% $481
Dec-90 31.00 1.40 101.31% $485
Jan-91 31.00 2.12 102.03% $493
Feb-91 28.00 5.54 105.46% $518
Mar-91 31.00 3.54 103.45% $534
Apr-91 30.00 3.55 103.46% $550
May-91 31.00 1.47 101.38% $555
Jun-91 30.00 2.17 102.09% $565
Jul-91 31.00 3.78 103.69% $583
Aug-91 31.00 1.37 101.28% $588
Sep-91 30.00 2.24 102.16% $598
Oct-91 31.00 3.40 103.31% $616
Nov-91 30.00 0.85 100.77% $618
Dec-91 31.00 0.53 100.44% $618
Jan-92 31.00 5.34 105.25% $648
Feb-92 29.00 3.63 103.55% $668
Mar-92 31.00 3.23 103.14% $686
Apr-92 30.00 0.71 100.63% $688
May-92 31.00 1.20 101.11% $693
Jun-92 30.00 1.09 101.01% $697
Jul-92 31.00 1.96 101.87% $707
Aug-92 31.00 2.12 102.03% $718
Sep-92 30.00 1.04 100.96% $722
Oct-92 31.00 -1.49 98.43% $708
Nov-92 30.00 1.23 101.15% $713
Dec-92 31.00 1.03 100.94% $717
Jan-93 31.00 2.68 102.59% $733
Feb-93 28.00 1.71 101.63% $742
Mar-93 31.00 2.31 102.22% $755
Apr-93 30.00 0.66 100.58% $756
May-93 31.00 1.49 101.40% $764
Jun-93 30.00 2.58 102.50% $780
Jul-93 31.00 0.99 100.90% $784
Aug-93 31.00 1.07 100.98% $788
Sep-93 30.00 0.35 100.27% $787
Oct-93 31.00 2.36 102.27% $802
Nov-93 30.00 0.94 100.86% $805
Dec-93 31.00 1.61 101.52% $814
Jan-94 31.00 3.34 103.25% $837
Feb-94 28.00 -0.12 99.80% $832
Mar-94 31.00 -3.37 96.55% $800
Apr-94 30.00 -1.01 98.91% $788
May-94 31.00 0.19 100.10% $786
Jun-94 30.00 -0.37 99.55% $779
Jul-94 31.00 0.37 100.28% $778
Aug-94 31.00 0.00 99.91% $774
Sep-94 30.00 0.74 100.66% $776
Oct-94 31.00 -0.92 99.00% $765
Nov-94 30.00 -0.83 99.09% $755
Dec-94 31.00 0.56 100.47% $756
Jan-95 31.00 1.12 101.03% $760
Feb-95 28.00 3.43 103.35% $783
Mar-95 31.00 1.25 101.16% $789
Apr-95 30.00 2.93 102.85% $808
May-95 31.00 2.57 102.48% $825
Jun-95 30.00 0.27 100.19% $823
Jul-95 31.00 2.41 102.32% $838
Aug-95 31.00 0.79 100.70% $841
Sep-95 30.00 1.65 101.57% $851
Oct-95 31.00 0.94 100.85% $854
Nov-95 30.00 0.51 100.43% $855
Dec-95 31.00 1.18 101.09% $860
Listed in Order Max 855
to match MFPR Min 472
N.FIA
10
EQUITY-INCOME PORTFOLIO of Variable Insurance Products Fund seeks
reasonable income by investing primarily in income-producing equity
securities. In choosing these securities the Portfolio will also consider
the potential for capital appreciation. The Portfolio's goal is to achieve
a yield which exceeds the composite yield on the securities comprising the
Standard & Poor's 500 Composite Stock Price Index. The graph below is based
on a 5% Benchmark Rate of Return and initial monthly annuity income of
$500.
PROSPECTUS CHARTS
M&E 0.01
BRR 0.05
Month # of Days Equity Income
Apr-82
May-82 31.00
Jun-82 30.00
Jul-82 31.00
Aug-82 31.00
Sep-82 30.00
Oct-82 31.00
Nov-82 30.00
Dec-82 31.00
Jan-83 31.00
Feb-83 28.00
Mar-83 31.00
Apr-83 30.00
May-83 31.00
Jun-83 30.00
Jul-83 31.00
Aug-83 31.00
Sep-83 30.00
Oct-83 31.00
Nov-83 30.00
Dec-83 31.00
Jan-84 31.00
Feb-84 29.00
Mar-84 31.00
Apr-84 30.00
May-84 31.00
Jun-84 30.00
Jul-84 31.00
Aug-84 31.00
Sep-84 30.00
Oct-84 31.00
Nov-84 30.00
Dec-84 31.00
Jan-85 31.00
Feb-85 28.00
Mar-85 31.00
Apr-85 30.00
May-85 31.00
Jun-85 30.00
Jul-85 31.00
Aug-85 31.00
Sep-85 30.00
Oct-85 31.00
Nov-85 30.00
Dec-85 31.00
Jan-86 31.00
Feb-86 28.00
Mar-86 31.00
Apr-86 30.00
May-86 31.00
Jun-86 30.00
Jul-86 31.00
Aug-86 31.00
Sep-86 30.00
Oct-86 31.00 $500
Nov-86 30.00 2.18 102.09% $508
Dec-86 31.00 -3.00 96.92% $491
Jan-87 31.00 11.48 111.38% $544
Feb-87 28.00 2.33 102.25% $554
Mar-87 31.00 2.54 102.45% $566
Apr-87 30.00 -2.49 97.43% $549
May-87 31.00 0.62 100.53% $550
Jun-87 30.00 2.08 102.00% $558
Jul-87 31.00 3.81 103.72% $577
Aug-87 31.00 2.75 102.66% $590
Sep-87 30.00 -2.10 97.82% $574
Oct-87 31.00 -19.51 80.42% $460
Nov-87 30.00 -4.47 95.45% $437
Dec-87 31.00 5.11 105.02% $457
Jan-88 31.00 7.11 107.02% $488
Feb-88 29.00 4.96 104.87% $509
Mar-88 31.00 -1.74 98.18% $498
Apr-88 30.00 1.66 101.57% $504
May-88 31.00 1.34 101.25% $508
Jun-88 30.00 5.69 105.60% $534
Jul-88 31.00 -0.18 99.73% $531
Aug-88 31.00 -1.72 98.19% $519
Sep-88 30.00 2.97 102.89% $532
Oct-88 31.00 1.73 101.64% $538
Nov-88 30.00 -1.61 98.31% $527
Dec-88 31.00 0.91 100.83% $529
Jan-89 31.00 6.18 106.09% $559
Feb-89 28.00 -0.51 99.41% $554
Mar-89 31.00 2.17 102.08% $563
Apr-89 30.00 3.86 103.77% $582
May-89 31.00 2.97 102.88% $596
Jun-89 30.00 0.07 99.99% $594
Jul-89 31.00 5.83 105.74% $625
Aug-89 31.00 1.61 101.52% $632
Sep-89 30.00 -1.12 98.79% $622
Oct-89 31.00 -5.77 94.15% $583
Nov-89 30.00 0.57 100.49% $584
Dec-89 31.00 0.83 100.75% $585
Jan-90 31.00 -6.75 93.17% $543
Feb-90 28.00 0.59 100.52% $544
Mar-90 31.00 0.16 100.08% $542
Apr-90 30.00 -3.47 96.45% $521
May-90 31.00 6.62 106.53% $552
Jun-90 30.00 -1.00 98.92% $544
Jul-90 31.00 -2.45 97.47% $528
Aug-90 31.00 -7.99 91.94% $484
Sep-90 30.00 -7.76 92.17% $444
Oct-90 31.00 -2.55 97.37% $431
Nov-90 30.00 7.17 107.08% $459
Dec-90 31.00 2.33 102.24% $468
Jan-91 31.00 5.36 105.27% $490
Feb-91 28.00 6.89 106.80% $522
Mar-91 31.00 2.07 101.99% $530
Apr-91 30.00 0.47 100.38% $530
May-91 31.00 5.49 105.40% $556
Jun-91 30.00 -4.09 95.83% $531
Jul-91 31.00 5.67 105.58% $558
Aug-91 31.00 2.11 102.02% $567
Sep-91 30.00 -0.69 99.23% $560
Oct-91 31.00 1.67 101.58% $567
Nov-91 30.00 -4.31 95.61% $540
Dec-91 31.00 7.90 107.81% $579
Jan-92 31.00 1.35 101.26% $584
Feb-92 29.00 3.25 103.16% $601
Mar-92 31.00 -1.23 98.69% $590
Apr-92 30.00 3.13 103.05% $606
May-92 31.00 0.80 100.71% $608
Jun-92 30.00 -0.88 99.04% $599
Jul-92 31.00 3.06 102.98% $615
Aug-92 31.00 -2.19 97.73% $598
Sep-92 30.00 1.04 100.95% $601
Oct-92 31.00 1.20 101.11% $606
Nov-92 30.00 3.63 103.54% $625
Dec-92 31.00 2.82 102.73% $639
Jan-93 31.00 2.99 102.90% $655
Feb-93 28.00 2.25 102.17% $667
Mar-93 31.00 2.98 102.89% $683
Apr-93 30.00 -0.42 99.50% $677
May-93 31.00 1.81 101.72% $686
Jun-93 30.00 1.18 101.10% $690
Jul-93 31.00 1.36 101.27% $696
Aug-93 31.00 3.83 103.74% $719
Sep-93 30.00 -0.38 99.54% $713
Oct-93 31.00 0.91 100.82% $716
Nov-93 30.00 -1.75 98.17% $700
Dec-93 31.00 2.31 102.22% $713
Jan-94 31.00 4.40 104.31% $740
Feb-94 28.00 -2.58 97.34% $718
Mar-94 31.00 -4.18 95.74% $685
Apr-94 30.00 3.45 103.36% $705
May-94 31.00 0.95 100.86% $708
Jun-94 30.00 -0.62 99.30% $700
Jul-94 31.00 3.34 103.25% $720
Aug-94 31.00 5.15 105.06% $753
Sep-94 30.00 -1.64 98.28% $737
Oct-94 31.00 2.05 101.96% $749
Nov-94 30.00 -3.27 96.65% $721
Dec-94 31.00 0.33 100.24% $720
Jan-95 31.00 1.56 101.47% $727
Feb-95 28.00 3.81 103.73% $751
Mar-95 31.00 3.45 103.36% $773
Apr-95 30.00 2.78 102.70% $791
May-95 31.00 3.01 102.92% $811
Jun-95 30.00 1.44 101.36% $819
Jul-95 31.00 3.85 103.76% $846
Aug-95 31.00 1.25 101.16% $852
Sep-95 30.00 3.32 103.23% $876
Oct-95 31.00 -1.15 98.77% $862
Nov-95 30.00 4.32 104.23% $895
Dec-95 31.00 2.93 102.84% $916
Listed in Order Max 895
to match MFPR Min 431
11
N.FIA
INDEX 500 PORTFOLIO of Variable Insurance Products Fund II seeks to provide
investment results that correspond to the total return (i.e. the
combination of capital changes and income) of common stocks publicly traded
in the United States. In seeking this objective, the Portfolio attempts to
duplicate the composition and total return of the Standard & Poor's 500
Composite Stock Price Index. The graph below is based on a 5% Benchmark
Rate of Return and initial monthly annuity income of $500.
PROSPECTUS CHARTS
M&E 0.01
BRR 0.05
Month # of Days Index 500
Apr-82
May-82 31.00
Jun-82 30.00
Jul-82 31.00
Aug-82 31.00
Sep-82 30.00
Oct-82 31.00
Nov-82 30.00
Dec-82 31.00
Jan-83 31.00
Feb-83 28.00
Mar-83 31.00
Apr-83 30.00
May-83 31.00
Jun-83 30.00
Jul-83 31.00
Aug-83 31.00
Sep-83 30.00
Oct-83 31.00
Nov-83 30.00
Dec-83 31.00
Jan-84 31.00
Feb-84 29.00
Mar-84 31.00
Apr-84 30.00
May-84 31.00
Jun-84 30.00
Jul-84 31.00
Aug-84 31.00
Sep-84 30.00
Oct-84 31.00
Nov-84 30.00
Dec-84 31.00
Jan-85 31.00
Feb-85 28.00
Mar-85 31.00
Apr-85 30.00
May-85 31.00
Jun-85 30.00
Jul-85 31.00
Aug-85 31.00
Sep-85 30.00
Oct-85 31.00
Nov-85 30.00
Dec-85 31.00
Jan-86 31.00
Feb-86 28.00
Mar-86 31.00
Apr-86 30.00
May-86 31.00
Jun-86 30.00
Jul-86 31.00
Aug-86 31.00
Sep-86 30.00
Oct-86 31.00
Nov-86 30.00
Dec-86 31.00
Jan-87 31.00
Feb-87 28.00
Mar-87 31.00
Apr-87 30.00
May-87 31.00
Jun-87 30.00
Jul-87 31.00
Aug-87 31.00
Sep-87 30.00
Oct-87 31.00
Nov-87 30.00
Dec-87 31.00
Jan-88 31.00
Feb-88 29.00
Mar-88 31.00
Apr-88 30.00
May-88 31.00
Jun-88 30.00
Jul-88 31.00
Aug-88 31.00
Sep-88 30.00
Oct-88 31.00
Nov-88 30.00
Dec-88 31.00
Jan-89 31.00
Feb-89 28.00
Mar-89 31.00
Apr-89 30.00
May-89 31.00
Jun-89 30.00
Jul-89 31.00
Aug-89 31.00
Sep-89 30.00
Oct-89 31.00
Nov-89 30.00
Dec-89 31.00
Jan-90 31.00
Feb-90 28.00
Mar-90 31.00
Apr-90 30.00
May-90 31.00
Jun-90 30.00
Jul-90 31.00
Aug-90 31.00
Sep-90 30.00
Oct-90 31.00
Nov-90 30.00
Dec-90 31.00
Jan-91 31.00
Feb-91 28.00
Mar-91 31.00
Apr-91 30.00
May-91 31.00
Jun-91 30.00
Jul-91 31.00
Aug-91 31.00
Sep-91 30.00
Oct-91 31.00
Nov-91 30.00
Dec-91 31.00
Jan-92 31.00
Feb-92 29.00
Mar-92 31.00
Apr-92 30.00
May-92 31.00
Jun-92 30.00
Jul-92 31.00
Aug-92 31.00
Sep-92 30.00 1.16 $500
Oct-92 31.00 0.22 100.13% $499
Nov-92 30.00 3.41 103.32% $513
Dec-92 31.00 1.26 101.17% $517
Jan-93 31.00 0.64 100.55% $518
Feb-93 28.00 1.32 101.24% $522
Mar-93 31.00 2.20 102.11% $531
Apr-93 30.00 -2.55 97.37% $515
May-93 31.00 2.60 102.51% $526
Jun-93 30.00 0.26 100.18% $525
Jul-93 31.00 -0.46 99.46% $520
Aug-93 31.00 3.79 103.70% $537
Sep-93 30.00 -0.81 99.11% $530
Oct-93 31.00 2.04 101.95% $538
Nov-93 30.00 -0.97 98.95% $530
Dec-93 31.00 1.20 101.11% $534
Jan-94 31.00 3.37 103.28% $549
Feb-94 28.00 -2.71 97.22% $532
Mar-94 31.00 -4.34 95.58% $506
Apr-94 30.00 1.20 101.12% $510
May-94 31.00 1.55 101.46% $515
Jun-94 30.00 -2.44 97.48% $500
Jul-94 31.00 3.30 103.21% $514
Aug-94 31.00 3.99 103.90% $532
Sep-94 30.00 -2.43 97.49% $516
Oct-94 31.00 2.22 102.13% $525
Nov-94 30.00 -3.63 96.29% $504
Dec-94 31.00 1.46 101.37% $508
Jan-95 31.00 2.65 102.56% $519
Feb-95 28.00 3.83 103.75% $537
Mar-95 31.00 2.92 102.83% $550
Apr-95 30.00 2.94 102.86% $563
May-95 31.00 3.93 103.84% $582
Jun-95 30.00 2.27 102.19% $593
Jul-95 31.00 3.34 103.25% $609
Aug-95 31.00 0.25 100.16% $608
Sep-95 30.00 4.18 104.09% $630
Oct-95 31.00 -0.34 99.57% $625
Nov-95 30.00 4.35 104.26% $649
Dec-95 31.00 1.83 101.74% $658
Listed in Order Max 649
to match MFPR Min 499
N.FIA
12
GROWTH PORTFOLIO of Variable Insurance Products Fund seeks to achieve
capital appreciation normally through the purchase of common stocks
(although the Portfolio's investments are not restricted to any one type of
security). Capital appreciation may also be found in other types of
securities, including bonds and preferred stocks. The graph below is based
on a 5% Benchmark Rate of Return and initial monthly annuity income of
$500.
PROSPECTUS CHARTS
M&E 0.01
BRR 0.05
Month # of Days Growth
Apr-82
May-82 31.00
Jun-82 30.00
Jul-82 31.00
Aug-82 31.00
Sep-82 30.00
Oct-82 31.00
Nov-82 30.00
Dec-82 31.00
Jan-83 31.00
Feb-83 28.00
Mar-83 31.00
Apr-83 30.00
May-83 31.00
Jun-83 30.00
Jul-83 31.00
Aug-83 31.00
Sep-83 30.00
Oct-83 31.00
Nov-83 30.00
Dec-83 31.00
Jan-84 31.00
Feb-84 29.00
Mar-84 31.00
Apr-84 30.00
May-84 31.00
Jun-84 30.00
Jul-84 31.00
Aug-84 31.00
Sep-84 30.00
Oct-84 31.00
Nov-84 30.00
Dec-84 31.00
Jan-85 31.00
Feb-85 28.00
Mar-85 31.00
Apr-85 30.00
May-85 31.00
Jun-85 30.00
Jul-85 31.00
Aug-85 31.00
Sep-85 30.00
Oct-85 31.00
Nov-85 30.00
Dec-85 31.00
Jan-86 31.00
Feb-86 28.00
Mar-86 31.00
Apr-86 30.00
May-86 31.00
Jun-86 30.00
Jul-86 31.00
Aug-86 31.00
Sep-86 30.00 NEED #S
Oct-86 31.00 $500
Nov-86 30.00 2.20 102.12% $509
Dec-86 31.00 -1.86 98.06% $497
Jan-87 31.00 10.67 110.58% $547
Feb-87 28.00 4.95 104.87% $571
Mar-87 31.00 1.63 101.54% $578
Apr-87 30.00 0.00 99.92% $575
May-87 31.00 0.68 100.59% $576
Jun-87 30.00 2.94 102.86% $590
Jul-87 31.00 4.00 103.91% $611
Aug-87 31.00 2.98 102.89% $626
Sep-87 30.00 -1.14 98.78% $616
Oct-87 31.00 -21.97 77.96% $478
Nov-87 30.00 -7.02 92.90% $442
Dec-87 31.00 10.31 110.22% $485
Jan-88 31.00 2.17 102.08% $493
Feb-88 29.00 8.11 108.02% $531
Mar-88 31.00 -0.89 99.03% $524
Apr-88 30.00 1.26 101.18% $528
May-88 31.00 -0.89 99.03% $520
Jun-88 30.00 5.03 104.94% $544
Jul-88 31.00 -0.51 99.41% $538
Aug-88 31.00 -2.41 97.51% $523
Sep-88 30.00 2.82 102.74% $535
Oct-88 31.00 0.26 100.17% $534
Nov-88 30.00 -0.94 98.98% $526
Dec-88 31.00 1.03 100.94% $529
Jan-89 31.00 7.17 107.08% $564
Feb-89 28.00 -2.07 97.85% $550
Mar-89 31.00 3.02 102.93% $564
Apr-89 30.00 5.29 105.20% $591
May-89 31.00 3.58 103.49% $609
Jun-89 30.00 -1.32 98.60% $598
Jul-89 31.00 8.94 108.85% $648
Aug-89 31.00 1.71 101.62% $656
Sep-89 30.00 0.87 100.79% $658
Oct-89 31.00 -2.80 97.12% $637
Nov-89 30.00 1.64 101.56% $644
Dec-89 31.00 2.36 102.27% $656
Jan-90 31.00 -5.80 94.12% $615
Feb-90 28.00 0.96 100.88% $618
Mar-90 31.00 1.22 101.13% $622
Apr-90 30.00 -2.91 97.01% $601
May-90 31.00 8.85 108.76% $651
Jun-90 30.00 2.08 102.00% $661
Jul-90 31.00 -1.58 98.34% $648
Aug-90 31.00 -10.30 89.62% $578
Sep-90 30.00 -10.29 89.64% $516
Oct-90 31.00 -3.57 96.35% $495
Nov-90 30.00 8.10 108.01% $533
Dec-90 31.00 2.95 102.86% $546
Jan-91 31.00 6.66 106.57% $579
Feb-91 28.00 7.46 107.38% $620
Mar-91 31.00 3.02 102.93% $635
Apr-91 30.00 -0.93 98.99% $626
May-91 31.00 5.91 105.82% $660
Jun-91 30.00 -7.42 92.50% $608
Jul-91 31.00 9.53 109.44% $663
Aug-91 31.00 4.44 104.35% $689
Sep-91 30.00 0.78 100.70% $691
Oct-91 31.00 3.09 103.00% $708
Nov-91 30.00 -5.71 94.21% $665
Dec-91 31.00 13.21 113.11% $749
Jan-92 31.00 6.10 106.01% $791
Feb-92 29.00 2.09 102.01% $803
Mar-92 31.00 -6.13 93.79% $750
Apr-92 30.00 -3.92 96.00% $717
May-92 31.00 -0.85 99.07% $708
Jun-92 30.00 -3.88 96.04% $677
Jul-92 31.00 3.86 103.77% $700
Aug-92 31.00 -2.75 97.17% $677
Sep-92 30.00 1.76 101.68% $686
Oct-92 31.00 3.87 103.78% $709
Nov-92 30.00 6.68 106.59% $752
Dec-92 31.00 3.08 102.99% $772
Jan-93 31.00 1.97 101.88% $783
Feb-93 28.00 -2.06 97.86% $763
Mar-93 31.00 3.99 103.90% $790
Apr-93 30.00 -1.05 98.87% $778
May-93 31.00 7.45 107.36% $831
Jun-93 30.00 1.03 100.95% $836
Jul-93 31.00 -0.28 99.63% $830
Aug-93 31.00 5.02 104.93% $867
Sep-93 30.00 1.86 101.78% $879
Oct-93 31.00 0.96 100.87% $883
Nov-93 30.00 -4.05 95.87% $843
Dec-93 31.00 3.54 103.45% $868
Jan-94 31.00 2.51 102.42% $886
Feb-94 28.00 -1.03 98.89% $873
Mar-94 31.00 -4.54 95.38% $829
Apr-94 30.00 0.62 100.54% $830
May-94 31.00 -2.32 97.60% $807
Jun-94 30.00 -5.08 94.84% $762
Jul-94 31.00 3.47 103.38% $785
Aug-94 31.00 5.67 105.58% $825
Sep-94 30.00 -1.21 98.71% $811
Oct-94 31.00 4.06 103.97% $840
Nov-94 30.00 -3.99 95.93% $802
Dec-94 31.00 2.55 102.46% $819
Jan-95 31.00 -1.89 98.03% $799
Feb-95 28.00 4.14 104.06% $828
Mar-95 31.00 3.63 103.54% $854
Apr-95 30.00 3.37 103.28% $879
May-95 31.00 3.90 103.81% $909
Jun-95 30.00 8.85 108.76% $984
Jul-95 31.00 9.89 109.80% $1,076
Aug-95 31.00 1.23 101.14% $1,084
Sep-95 30.00 2.59 102.51% $1,107
Oct-95 31.00 -1.02 98.90% $1,090
Nov-95 30.00 -0.07 99.85% $1,084
Dec-95 31.00 -3.12 96.80% $1,045
Listed in Order Max 1,107
to match MFPR Min 442
13
N.FIA
OVERSEAS PORTFOLIO of Variable Insurance Products Fund seeks long-term
growth of capital primarily through investments in foreign securities.
Overseas Portfolio provides a means for investors to diversify their own
portfolios by participating in companies and economies outside of the
United States. The graph below is based on a 5% Benchmark Rate of Return
and initial monthly annuity income of $500.
PROSPECTUS CHARTS
M&E 0.01
BRR 0.05
Month # of Days Overseas
Apr-82
May-82 31.00
Jun-82 30.00
Jul-82 31.00
Aug-82 31.00
Sep-82 30.00
Oct-82 31.00
Nov-82 30.00
Dec-82 31.00
Jan-83 31.00
Feb-83 28.00
Mar-83 31.00
Apr-83 30.00
May-83 31.00
Jun-83 30.00
Jul-83 31.00
Aug-83 31.00
Sep-83 30.00
Oct-83 31.00
Nov-83 30.00
Dec-83 31.00
Jan-84 31.00
Feb-84 29.00
Mar-84 31.00
Apr-84 30.00
May-84 31.00
Jun-84 30.00
Jul-84 31.00
Aug-84 31.00
Sep-84 30.00
Oct-84 31.00
Nov-84 30.00
Dec-84 31.00
Jan-85 31.00
Feb-85 28.00
Mar-85 31.00
Apr-85 30.00
May-85 31.00
Jun-85 30.00
Jul-85 31.00
Aug-85 31.00
Sep-85 30.00
Oct-85 31.00
Nov-85 30.00
Dec-85 31.00
Jan-86 31.00
Feb-86 28.00
Mar-86 31.00
Apr-86 30.00
May-86 31.00
Jun-86 30.00
Jul-86 31.00
Aug-86 31.00
Sep-86 30.00
Oct-86 31.00
Nov-86 30.00
Dec-86 31.00
Jan-87 31.00 $500
Feb-87 28.00 0.10 100.02% $498
Mar-87 31.00 4.50 104.41% $518
Apr-87 30.00 7.27 107.18% $553
May-87 31.00 -1.43 98.49% $542
Jun-87 30.00 -4.88 95.04% $513
Jul-87 31.00 -1.14 98.77% $505
Aug-87 31.00 8.85 108.75% $547
Sep-87 30.00 -2.21 97.71% $532
Oct-87 31.00 -20.87 79.07% $419
Nov-87 30.00 0.91 100.83% $421
Dec-87 31.00 7.04 106.95% $448
Jan-88 31.00 -3.42 96.50% $431
Feb-88 29.00 2.66 102.58% $440
Mar-88 31.00 4.53 104.44% $458
Apr-88 30.00 1.65 101.57% $463
May-88 31.00 -1.83 98.09% $452
Jun-88 30.00 -1.76 98.16% $442
Jul-88 31.00 -0.74 99.18% $437
Aug-88 31.00 -3.50 96.42% $419
Sep-88 30.00 4.29 104.20% $435
Oct-88 31.00 4.43 104.34% $452
Nov-88 30.00 1.82 101.73% $458
Dec-88 31.00 0.20 100.11% $457
Jan-89 31.00 2.97 102.88% $468
Feb-89 28.00 1.73 101.65% $474
Mar-89 31.00 -0.09 99.82% $471
Apr-89 30.00 2.95 102.87% $483
May-89 31.00 -3.70 96.22% $463
Jun-89 30.00 -0.38 99.53% $459
Jul-89 31.00 9.35 109.26% $499
Aug-89 31.00 -0.71 99.21% $493
Sep-89 30.00 6.22 106.13% $521
Oct-89 31.00 -5.43 94.48% $490
Nov-89 30.00 5.39 105.31% $514
Dec-89 31.00 6.29 106.20% $544
Jan-90 31.00 -1.34 98.57% $534
Feb-90 28.00 -2.33 97.59% $519
Mar-90 31.00 3.78 103.69% $536
Apr-90 30.00 0.55 100.47% $537
May-90 31.00 6.54 106.44% $569
Jun-90 30.00 2.22 102.13% $579
Jul-90 31.00 5.06 104.97% $605
Aug-90 31.00 -10.19 89.74% $541
Sep-90 30.00 -9.50 90.42% $487
Oct-90 31.00 9.31 109.22% $530
Nov-90 30.00 -3.10 96.82% $511
Dec-90 31.00 -0.72 99.20% $504
Jan-91 31.00 0.97 100.88% $507
Feb-91 28.00 3.37 103.29% $522
Mar-91 31.00 -2.92 96.99% $504
Apr-91 30.00 2.20 102.11% $512
May-91 31.00 0.24 100.15% $511
Jun-91 30.00 -5.48 94.44% $481
Jul-91 31.00 4.96 104.87% $502
Aug-91 31.00 0.32 100.23% $501
Sep-91 30.00 4.07 103.99% $519
Oct-91 31.00 0.69 100.60% $520
Nov-91 30.00 -3.58 96.34% $499
Dec-91 31.00 3.48 103.39% $514
Jan-92 31.00 1.22 101.14% $517
Feb-92 29.00 -2.08 97.84% $504
Mar-92 31.00 -2.03 97.89% $492
Apr-92 30.00 6.22 106.13% $520
May-92 31.00 4.35 104.27% $539
Jun-92 30.00 -1.87 98.05% $527
Jul-92 31.00 -6.38 93.54% $491
Aug-92 31.00 -0.86 99.05% $484
Sep-92 30.00 -4.03 95.89% $462
Oct-92 31.00 -6.83 93.09% $429
Nov-92 30.00 -0.53 99.39% $424
Dec-92 31.00 2.49 102.40% $433
Jan-93 31.00 2.86 102.77% $443
Feb-93 28.00 1.96 101.88% $450
Mar-93 31.00 6.94 106.85% $478
Apr-93 30.00 6.65 106.56% $508
May-93 31.00 2.15 102.06% $516
Jun-93 30.00 -2.47 97.45% $501
Jul-93 31.00 3.95 103.86% $518
Aug-93 31.00 5.44 105.35% $543
Sep-93 30.00 -0.48 99.44% $538
Oct-93 31.00 3.62 103.53% $555
Nov-93 30.00 -4.22 95.70% $529
Dec-93 31.00 6.61 106.52% $561
Jan-94 31.00 6.52 106.43% $595
Feb-94 28.00 -1.76 98.16% $582
Mar-94 31.00 -2.48 97.44% $564
Apr-94 30.00 3.31 103.22% $580
May-94 31.00 -1.23 98.69% $570
Jun-94 30.00 -1.06 98.86% $562
Jul-94 31.00 2.65 102.56% $574
Aug-94 31.00 1.17 101.08% $577
Sep-94 30.00 -2.61 97.31% $560
Oct-94 31.00 2.06 101.97% $568
Nov-94 30.00 -3.79 96.13% $544
Dec-94 31.00 -0.57 99.35% $538
Jan-95 31.00 -4.15 95.77% $513
Feb-95 28.00 0.26 100.18% $512
Mar-95 31.00 3.08 102.99% $526
Apr-95 30.00 2.86 102.78% $538
May-95 31.00 1.39 101.30% $543
Jun-95 30.00 0.81 100.73% $544
Jul-95 31.00 4.44 104.35% $566
Aug-95 31.00 -2.78 97.14% $547
Sep-95 30.00 1.46 101.38% $553
Oct-95 31.00 -1.98 97.94% $539
Nov-95 30.00 1.16 101.08% $543
Dec-95 31.00 2.96 102.87% $556
Listed in Order Max 605
to match MFPR Min 419
14
N.FIA
ASSET MANAGER: GROWTH PORTFOLIO of Variable Insurance Products Fund II
seeks to maximize total return by allocating its assets among a mix of
domestic and foreign stocks, bonds and short-term fixed income instruments.
PROSPECTUS CHARTS
M&E 0.01
BRR 0.05
Month # of Days Asset Manager:Growth
Apr-82
May-82 31.00
Jun-82 30.00
Jul-82 31.00
Aug-82 31.00
Sep-82 30.00
Oct-82 31.00
Nov-82 30.00
Dec-82 31.00
Jan-83 31.00
Feb-83 28.00
Mar-83 31.00
Apr-83 30.00
May-83 31.00
Jun-83 30.00
Jul-83 31.00
Aug-83 31.00
Sep-83 30.00
Oct-83 31.00
Nov-83 30.00
Dec-83 31.00
Jan-84 31.00
Feb-84 29.00
Mar-84 31.00
Apr-84 30.00
May-84 31.00
Jun-84 30.00
Jul-84 31.00
Aug-84 31.00
Sep-84 30.00
Oct-84 31.00
Nov-84 30.00
Dec-84 31.00
Jan-85 31.00
Feb-85 28.00
Mar-85 31.00
Apr-85 30.00
May-85 31.00
Jun-85 30.00
Jul-85 31.00
Aug-85 31.00
Sep-85 30.00
Oct-85 31.00
Nov-85 30.00
Dec-85 31.00
Jan-86 31.00
Feb-86 28.00
Mar-86 31.00
Apr-86 30.00
May-86 31.00
Jun-86 30.00
Jul-86 31.00
Aug-86 31.00
Sep-86 30.00
Oct-86 31.00
Nov-86 30.00
Dec-86 31.00
Jan-87 31.00
Feb-87 28.00
Mar-87 31.00
Apr-87 30.00
May-87 31.00
Jun-87 30.00
Jul-87 31.00
Aug-87 31.00
Sep-87 30.00
Oct-87 31.00
Nov-87 30.00
Dec-87 31.00
Jan-88 31.00
Feb-88 29.00
Mar-88 31.00
Apr-88 30.00
May-88 31.00
Jun-88 30.00
Jul-88 31.00
Aug-88 31.00
Sep-88 30.00
Oct-88 31.00
Nov-88 30.00
Dec-88 31.00
Jan-89 31.00
Feb-89 28.00
Mar-89 31.00
Apr-89 30.00
May-89 31.00
Jun-89 30.00
Jul-89 31.00
Aug-89 31.00
Sep-89 30.00
Oct-89 31.00
Nov-89 30.00
Dec-89 31.00
Jan-90 31.00
Feb-90 28.00
Mar-90 31.00
Apr-90 30.00
May-90 31.00
Jun-90 30.00
Jul-90 31.00
Aug-90 31.00
Sep-90 30.00
Oct-90 31.00
Nov-90 30.00
Dec-90 31.00
Jan-91 31.00
Feb-91 28.00
Mar-91 31.00
Apr-91 30.00
May-91 31.00
Jun-91 30.00
Jul-91 31.00
Aug-91 31.00
Sep-91 30.00
Oct-91 31.00
Nov-91 30.00
Dec-91 31.00
Jan-92 31.00
Feb-92 29.00
Mar-92 31.00
Apr-92 30.00
May-92 31.00
Jun-92 30.00
Jul-92 31.00
Aug-92 31.00
Sep-92 30.00
Oct-92 31.00
Nov-92 30.00
Dec-92 31.00
Jan-93 31.00
Feb-93 28.00
Mar-93 31.00
Apr-93 30.00
May-93 31.00
Jun-93 30.00
Jul-93 31.00
Aug-93 31.00
Sep-93 30.00
Oct-93 31.00
Nov-93 30.00
Dec-93 31.00
Jan-94 31.00
Feb-94 28.00
Mar-94 31.00
Apr-94 30.00
May-94 31.00
Jun-94 30.00
Jul-94 31.00
Aug-94 31.00
Sep-94 30.00
Oct-94 31.00
Nov-94 30.00
Dec-94 31.00
Jan-95 31.00 $500
Feb-95 28.00 1.50 101.42% $505
Mar-95 31.00 1.38 101.29% $510
Apr-95 30.00 2.62 102.54% $520
May-95 31.00 1.42 101.33% $525
Jun-95 30.00 4.01 103.92% $544
Jul-95 31.00 3.67 103.58% $561
Aug-95 31.00 4.49 104.40% $583
Sep-95 30.00 1.49 101.41% $589
Oct-95 31.00 -3.83 96.09% $564
Nov-95 30.00 1.78 101.70% $571
Dec-95 31.00 2.52 102.43% $582
Listed in Order Max 589
to match MFPR Min 500
15
N.FIA
CONTRAFUND PORTFOLIO of Variable Insurance Products Fund II seeks capital
appreciation by investing primarily in equity securities of companies that
are considered to be undervalued or out-of-favor by the Fund's advisor.
PROSPECTUS CHARTS
M&E 0.01
BRR 0.05
Month # of Days Contrafund
Apr-82
May-82 31.00
Jun-82 30.00
Jul-82 31.00
Aug-82 31.00
Sep-82 30.00
Oct-82 31.00
Nov-82 30.00
Dec-82 31.00
Jan-83 31.00
Feb-83 28.00
Mar-83 31.00
Apr-83 30.00
May-83 31.00
Jun-83 30.00
Jul-83 31.00
Aug-83 31.00
Sep-83 30.00
Oct-83 31.00
Nov-83 30.00
Dec-83 31.00
Jan-84 31.00
Feb-84 29.00
Mar-84 31.00
Apr-84 30.00
May-84 31.00
Jun-84 30.00
Jul-84 31.00
Aug-84 31.00
Sep-84 30.00
Oct-84 31.00
Nov-84 30.00
Dec-84 31.00
Jan-85 31.00
Feb-85 28.00
Mar-85 31.00
Apr-85 30.00
May-85 31.00
Jun-85 30.00
Jul-85 31.00
Aug-85 31.00
Sep-85 30.00
Oct-85 31.00
Nov-85 30.00
Dec-85 31.00
Jan-86 31.00
Feb-86 28.00
Mar-86 31.00
Apr-86 30.00
May-86 31.00
Jun-86 30.00
Jul-86 31.00
Aug-86 31.00
Sep-86 30.00
Oct-86 31.00
Nov-86 30.00
Dec-86 31.00
Jan-87 31.00
Feb-87 28.00
Mar-87 31.00
Apr-87 30.00
May-87 31.00
Jun-87 30.00
Jul-87 31.00
Aug-87 31.00
Sep-87 30.00
Oct-87 31.00
Nov-87 30.00
Dec-87 31.00
Jan-88 31.00
Feb-88 29.00
Mar-88 31.00
Apr-88 30.00
May-88 31.00
Jun-88 30.00
Jul-88 31.00
Aug-88 31.00
Sep-88 30.00
Oct-88 31.00
Nov-88 30.00
Dec-88 31.00
Jan-89 31.00
Feb-89 28.00
Mar-89 31.00
Apr-89 30.00
May-89 31.00
Jun-89 30.00
Jul-89 31.00
Aug-89 31.00
Sep-89 30.00
Oct-89 31.00
Nov-89 30.00
Dec-89 31.00
Jan-90 31.00
Feb-90 28.00
Mar-90 31.00
Apr-90 30.00
May-90 31.00
Jun-90 30.00
Jul-90 31.00
Aug-90 31.00
Sep-90 30.00
Oct-90 31.00
Nov-90 30.00
Dec-90 31.00
Jan-91 31.00
Feb-91 28.00
Mar-91 31.00
Apr-91 30.00
May-91 31.00
Jun-91 30.00
Jul-91 31.00
Aug-91 31.00
Sep-91 30.00
Oct-91 31.00
Nov-91 30.00
Dec-91 31.00
Jan-92 31.00
Feb-92 29.00
Mar-92 31.00
Apr-92 30.00
May-92 31.00
Jun-92 30.00
Jul-92 31.00
Aug-92 31.00
Sep-92 30.00
Oct-92 31.00
Nov-92 30.00
Dec-92 31.00
Jan-93 31.00
Feb-93 28.00
Mar-93 31.00
Apr-93 30.00
May-93 31.00
Jun-93 30.00
Jul-93 31.00
Aug-93 31.00
Sep-93 30.00
Oct-93 31.00
Nov-93 30.00
Dec-93 31.00
Jan-94 31.00
Feb-94 28.00
Mar-94 31.00
Apr-94 30.00
May-94 31.00
Jun-94 30.00
Jul-94 31.00
Aug-94 31.00
Sep-94 30.00
Oct-94 31.00
Nov-94 30.00
Dec-94 31.00
Jan-95 31.00 $500
Feb-95 28.00 5.07 104.99% $523
Mar-95 31.00 5.01 104.92% $546
Apr-95 30.00 5.42 105.33% $573
May-95 31.00 2.18 102.09% $583
Jun-95 30.00 6.56 106.47% $618
Jul-95 31.00 7.85 107.76% $663
Aug-95 31.00 1.26 101.17% $668
Sep-95 30.00 2.20 102.12% $680
Oct-95 31.00 -2.08 97.84% $662
Nov-95 30.00 1.83 101.75% $671
Dec-95 31.00 0.44 100.35% $671
Listed in Order Max 680
to match MFPR Min 500
Other separate accounts of FILI and separate accounts of other insurance
companies may also purchase shares of the Funds. It is possible that in the
future there may be conflicts between separate accounts. See RESOLVING
MATERIAL CONFLICTS on page .
FMR is the investment adviser for the Funds. FMR is a registered investment
adviser under the Investment Advisers Act of 1940. FMR is the original
Fidelity company and was founded in 1946. It provides a number of mutual
funds and other clients with investment research and portfolio management
services. It maintains a large staff of experienced investment personnel
and a full complement of related support facilities. As of December 31,
199 5 , it advised funds having more than 23 million
shareholder accounts with a total value of more than $ 35 0 billion.
FMR charges the Portfolios an investment management fee. These fees are
part of the Portfolios' operating expenses. See the attached prospectuses
for the Funds for discussions of the Funds' expenses.
You will find more complete information about the Funds, including the
risks associated with each Portfolio, in the accompanying prospectuses. You
should read them in conjunction with this prospectus.
7.FACTS ABOUT THE CONTRACT
PURCHASE OF A CONTRACT
FILI offers the Contracts only in states in which it has obtained approval.
Three types of Contracts are available. You can purchase a Non-qualified
Contract using money from any source. Qualified Contracts may be purchased
with money rolled over from a qualified retirement plan, such as a 401(k)
plan, 403(b) plan or IRA. You may also arrange with your employer to
purchase a Tax-Sheltered Annuity Contract with money in a tax-sheltered
annuity under section 403(b) of the Code.
The minimum Purchase Payment for a Contract is generally $25,000. You may
purchase a Qualified Contract only with a "rollover" (including a direct
trustee-to-trustee transfer, where permitted) of funds from another
qualified plan, tax-sheltered annuity or IRA.
You must be the Annuitant and the Owner of the Contract. If in addition to
you, another person is named as an Owner, that person must be the Joint
Annuitant. However, if you purchase the Contract as a Qualified Contract
(IRA) or a Tax-Sheltered Annuity Contract, you must be the sole Owner of
the Contract.
For all Contracts, either you or the Joint Annuitant must generally be no
more than 85 years old. When FILI receives your properly completed
application, your payment is applied to the purchase of a Contract within
two business days after receipt at the Annuity Service Center. Your
application will be considered properly completed as soon as (1) you have
provided all the information requested on the application form, including
your choice of annuity income option, (2) we have received adequate proof
of your date of birth (and the date of birth of the Joint Annuitant, if
any), and (3) the entire amount of your Purchase Payment has been received.
The date FILI credits the payment and issues your Contract is called the
Contract Date. If your application is incomplete, FILI will request the
information necessary to complete the application. If you do not furnish
the information within five days of the time FILI receives your
application, FILI will return your payment unless it obtains your specific
permission to keep it until you complete the application.
FREE LOOK PRIVILEGE
You may return a Contract for a refund within 10 days, (or longer where
required by applicable state insurance law), after you receive it (the
"free look period"). When you are replacing an existing annuity or life
insurance policy with a Contract, FILI will extend the free look period to
20 days, (or longer where required by applicable state insurance law). If
you choose to cancel the Contract, return it to the Annuity Service Center
with a written request within the free look period. FILI will promptly
refund the greater of (1) your Purchase Payment (without interest), and (2)
the amount of your Purchase Payment plus the investment performance of the
Money Market Investment Option. FILI will also make an adjustment for the
amount of any annuity income it paid before it received the Contract. This
provision may vary by state where required by applicable state insurance
law. ONCE THE FREE LOOK PERIOD EXPIRES, THE CONTRACT MAY NOT BE
RETURNED FOR A REFUND.
For most Contracts (other than replacements and exchanges), we estimate the
free look right to be in existence for 15 days after the Contract Date on
the assumption that you will receive the Contract five days after the
Contract Date. The Contract value in the Money Market Subaccount will
then be transferred to the Subaccounts you choose on the application or in
any later instructions to us. For Contracts with large Purchase
Payments, we may calculate the exact date your free look right expires
based on the actual date you receive the Contract.
INVESTMENT ALLOCATION OF YOUR PURCHASE PAYMENT
The portion of your Purchase Payment you allocate to the Investment Options
will be invested in the Money Market Investment Option for the period FILI
estimates or calculates your free look privilege to be in existence. At the
end of the Valuation Period in which your free look period expires any
amount then in the Money Market Investment Option will be exchanged for
Annuity Income Units in the percentages you have chosen. You allocate
percentages that are whole numbers, not fractions. Immediately following
the reallocations, the total dollar value of the Annuity Income Units will
be the same as the Free Look Units that were exchanged.
At least 10% of the variable portion of your Purchase Payment must be
allocated to each Investment Option you select.
You may currently transfer amounts among Investment Options as often as you
wish without charge. However, excessive trading activity can disrupt
Portfolio management strategy and increase Portfolio expenses, which are
borne by everyone participating in the Portfolio regardless of their
transfer activity. Therefore, FILI reserves the right to limit the number
of transfers permitted, but not to fewer than six per calendar year. You
tell us the percentage you want for your new allocation in each Investment
Option. Your allocation percentages will be in whole numbers, not
fractions.
You may change the allocations among the Investment Options by writing or
telephoning the Annuity Service Center. We will provide you with a Personal
Identification Number for making telephone reallocations. FILI and the
Funds reserve the right to change telephone reallocation provisions, or to
eliminate them, and to limit or reject any telephone reallocation at any
time. You may make up to eighteen telephone reallocations per calendar
year. Fidelity Investments Life will not accept exchange requests via
fax.
FILI will not be responsible for any losses resulting from unauthorized
telephone reallocations if it follows reasonable procedures designed to
verify the identity of the caller. FILI will request your Personal
Identification Number and may also record calls. You should verify the
accuracy of your confirmation statements immediately after you receive
them.
When you reallocate among Investment Options, FILI will redeem shares of
the appropriate Portfolios at their prices as of the end of the current
Valuation Period. Generally any Investment Option you transfer to is
credited at the same time. However, we may wait to credit the amount to a
new Investment Option until an Investment Option you transfer from becomes
liquid. This will happen only if (1) the Investment Option you transfer to
invests in a Portfolio that accrues dividends on a daily basis and requires
federal funds before accepting a purchase order, and (2) the Investment
Option you transfer from is investing in an equity Portfolio in an illiquid
position due to substantial redemptions or transfers that require it to
sell Portfolio securities in order to make funds available. The Investment
Option you transfer from will be liquid when it receives proceeds from
sales of Portfolio securities, the purchase of new Contracts, or otherwise.
During any period that we wait to credit an Investment Option for this
reason, the amount you transfer will be uninvested. After seven days the
transfer will be made even if the Investment Option you transfer from is
not liquid.
The amount of the allocation in each Investment Option will change with its
investment performance. You should periodically review the allocations in
light of market conditions and financial objectives.
CHARGES
The following are all the charges made under the Contract.
1. PREMIUM TAXES. Some states charge a "premium tax" based on the amount of
your Purchase Payment. State premium taxes range from 0% to 3.5%. In
addition, some counties, cities or towns may charge additional premium
taxes. If you reside in a place where premium taxes apply, any amount
needed to provide for the applicable premium taxes is deducted from your
Purchase Payment. The remainder of your Purchase Payment will be allocated
to the Investment Options and/or applied to the purchase of fixed annuity
income.
2. ADMINISTRATIVE CHARGES. Administrative charges compensate FILI for the
expenses incurred in administering the Contracts. These expenses include
the cost of issuing the Contract, making electronic funds transfers to your
bank account or issuing checks, maintaining necessary systems and records,
and providing reports. These expenses are covered by a daily administrative
charge.
Each day, a deduction is made from the assets of the Investment Options at
an effective annual rate of 0.25%. We guarantee this charge will never
increase. FILI does not expect to make a profit from this charge. This
charge does not affect the amount of fixed annuity income.
3. MORTALITY AND EXPENSE RISK CHARGE. A daily asset charge is deducted for
our assumption of mortality and expense risks. Each day an amount is
deducted from the assets of each Investment Option at an effective annual
rate of 0.75%. Of this charge, it is estimated that 0.50% is for assuming
mortality risks and it is estimated that 0.25% is for assuming expense
risks. We guarantee this charge will never increase.
The mortality risk is our obligation to provide annuity income for your
life (and the life of the Joint Annuitant, if any) no matter how long that
might be. The expense risk is our obligation to cover the cost of issuing
and administering the Contracts, no matter how large that cost may be. FILI
will realize a gain from the charge for these risks to the extent that it
is not needed to provide for benefits and expenses under the Contracts.
This charge does not affect the amount of fixed annuity income.
4. EXPENSES OF THE FUNDS. The Funds are charged management fees and incur
operating expenses. The effect of these fees and expenses is reflected in
the performance of the Investment Options. See the attached prospectuses
for the Funds for a description of the Funds' fees and expenses.
5. OTHER TAXES. FILI reserves the right to charge for certain taxes (other
than premium taxes) that it may have to fund. Currently, no such charges
are being made. See FILI'S TAX STATUS on page .
ANNUITY INCOME DATES
We provide annuity income for each Annuity Income Date. You select the
first Annuity Income Date when you purchase the Contract. The first Annuity
Income Date may be either the first or the fifteenth day of a month. All
subsequent Annuity Income Dates will be on the same day of the month as the
first Annuity Income Date. The first Annuity Income Date may be up to one
year after the Contract Date. The first Annuity Income Date generally may
not be earlier than 30 days after the Contract Date.
On the application, you choose the frequency of annuity income. You can
choose monthly, quarterly, semi-annual or annual annuity income.
SIGNATURE GUARANTEE
A signature guarantee is designed to protect you and Fidelity Investments
Life from fraud. Free look requests must include a signature guarantee if
any of the following situations apply:
1. The requested amount is more than $25,000.
2. In other circumstances where we deem it necessary for the protection of
you, the customer, (e.g. the signature does not resemble the signature we
have on file).
You should be able to obtain a signature guarantee from a bank, broker
dealer, (including Fidelity Investor Centers), credit union (if authorized
under state law), securities exchange or association, clearing agency, or
savings association. A notary public cannot provide a signature
guarantee.
DEATH BENEFIT
If no Annuitant or Joint Annuitant is alive on the first Annuity Income
Date, the Contract will be canceled and we will make a refund equal to your
Purchase Payment to your Beneficiary or Beneficiaries.
If your contract is a joint and survivor annuity and either you or the
Joint Annuitant die before the first Annuity Income Date we will adjust the
annuity income so that it equals what would have been paid under a single
life annuity issued to the survivor. This will usually result in greater
annuity income.
FIXED, VARIABLE OR COMBINATION ANNUITY INCOME
At the time of purchase, you allocate your Purchase Payment between fixed
and variable annuity income. You may choose all fixed annuity income, all
variable annuity income, or a combination of the two. Any portion of your
Purchase Payment allocated to fixed annuity income will always remain
allocated to fixed annuity income. Similarly, any portion of your Purchase
Payment allocated to variable annuity income will always remain allocated
to variable annuity income, but you can reallocate the variable portion of
your Contract among the various Investment Options after the free look
period.
If you allocate all of your Purchase Payment to fixed annuity income, FILI
will guarantee a specific amount of fixed annuity income that will be the
same on each Annuity Income Date, except as described for Options 3 and 4
under TYPES OF ANNUITY INCOME OPTIONS on page .
If you choose a combination of fixed and variable annuity income, a portion
of your annuity income will be fixed and a portion will vary according to
the investment experience of the Investment Options. We will guarantee the
dollar amount of the fixed annuity income portion on each Annuity Income
Date. Both fixed and variable annuity income decrease upon the death of the
Annuitant or Joint Annuitant as described for Options 3 and 4 under TYPES
OF ANNUITY INCOME OPTIONS on page .
If you choose all variable annuity income, all of your annuity income will
vary according to the investment experience of the Investment Options.
Variable annuity income may decrease upon the death of the Annuitant or
Joint Annuitant, as described for Options 3 and 4 under TYPES OF ANNUITY
INCOME OPTIONS on page .
Any portion of your Purchase Payment allocated to variable annuity income
will initially purchase Free Look Units. FILI will determine the number of
Free Look Units based upon (a) your age and sex (and the age and sex of the
Joint Annuitant, if any); (b) the type of annuity income option you choose;
(c) the frequency of Annuity Income Dates you choose; (d) the first Annuity
Income Date you choose; (e) the Benchmark Rate of Return you choose; and
(f) the value of the Free Look Units on the Contract Date. The value of the
Free Look Units reflects the investment performance of the Money Market
Investment Option. On the date the free look period ends, FILI will
exchange Free Look Units for Annuity Income Units in the Investment Options
you select. The total dollar value of the Annuity Income Units will be the
same as the Free Look Units that were exchanged.
The number of Annuity Income Units allocated to each Investment Option
under a single life Contract will not change unless you reallocate among
the Investment Options. If you choose a joint life Contract and benefits
are reduced due to your death or the death of the Joint Annuitant, the
number of Annuity Units will be reduced at that time.
FILI calculates the amount of your variable annuity income based on the
number of Annuity Income Units credited to each Investment Option. At the
close of business on each Annuity Income Date (or on the next Valuation
Date if the Annuity Income Date falls on a non-business day), the number of
Annuity Income Units is multiplied by the value of the Annuity Income Units
for each Investment Option. The amount of variable annuity income on the
Annuity Income Date will be the sum of annuity income amounts for each
Investment Option.
BENCHMARK RATE OF RETURN
When you purchase a Contract, FILI calculates an estimated first annuity
income amount, assuming that the Investment Options will earn the Benchmark
Rate of Return you choose. If the annualized investment return of the
Investment Options is greater than the Benchmark Rate of Return between the
Contract Date and the first Annuity Income Date, the first annuity income
amount will be higher than the estimate. If it is less, the first annuity
income amount will be lower than the estimate.
Income will increase from one Annuity Income Date to the next if the
annualized Net Rate of Return during that time is greater than the
Benchmark Rate of Return you choose, and will decrease if the annualized
Net Rate of Return is less than the Benchmark Rate of Return. Choosing a
5.0% Benchmark Rate of Return instead of a 3.5% Benchmark Rate of Return
will result in a higher initial amount of income, but income will increase
more slowly during periods of good investment performance and decrease more
rapidly during periods of poor investment performance.
The following graph illustrates the effect that your choice of a Benchmark
Rate of Return would have on your annuity income for a hypothetical
Contract. The graph assumes the following: (a) a Purchase Payment of
$100,000; (b) annuity income is entirely variable; (c) the Contract is a
single life Contract providing annuity income for ten years or the rest of
your life, whichever is longer; (d) you are a 65 year old male; and (f) the
selected Portfolios earn a constant 10% gross investment return before fees
and expenses (equal to an 8.1 8 % Net Rate of Return after fees and
expenses). Monthly income amounts are shown for two Benchmark Rates of
Return: 3.5% and 5.0% annually. Notice that with the lower Benchmark Rate
of Return your monthly income starts at a lower level but increases more
rapidly. With the higher Benchmark Rate of Return monthly income starts at
a higher level but increases less rapidly.
ANNUITY PAYMENTS
Male Age 65
10 C&C
Gross Rate Of Re 10.00%
Mutual Fund Fees 0.66%
Mortality & Expe 1.00%
Net Return: 8.18%
FILI: $574.87 $660.97
Year 3.50% 5.00%
1 $574.87 $660.97
2 $601 $681
3 $628 $702
4 $656 $723
5 $686 $745
6 $717 $767
7 $750 $791
8 $784 $815
9 $819 $839
10 $856 $865
11 $895 $891
12 $935 $918
13 $977 $946
14 $1,022 $974
15 $1,068 $1,004
16 $1,116 $1,034
17 $1,167 $1,066
18 $1,219 $1,098
19 $1,275 $1,131
20 $1,332 $1,165
21 $1,393 $1,201
22 $1,455 $1,237
23 $1,521 $1,275
24 $1,590 $1,313
25 $1,662 $1,353
Annuitant: Mr. Smith Management Fees: 0.87%
Premium: $100,000 Annuity M&E Charge: 1.00%
Age: 70
Sex: Male
Annuity Form: Life with a 10 year guarantee
TYPES OF ANNUITY INCOME OPTIONS
At the time of purchase, you have a choice among a number of annuity income
options. You also choose whether you want a minimum guaranteed number of
years of annuity income. For any income option, you may choose to receive
annuity income monthly, quarterly, semi-annually or annually. Once you make
these choices, they cannot be changed. The options FILI currently offers
are described below. Other annuity income options may be made available.
The federal income tax laws may limit your annuity income options where the
Contract is used as a Qualified Contract or a Tax-Sheltered Annuity
Contract.
1. SINGLE LIFE ANNUITY. We will provide annuity income for your entire
life, no matter how long that may be. Annuity income stops when you are no
longer living. It is possible that your total annuity income under this
option will be less than your Purchase Payment. It is even possible that
you might receive annuity income only once under this option. This would
happen if you were to die before the second Annuity Income Date. Because of
this risk, this option offers you the highest level of annuity income. The
Contract, like many annuities, pools the mortality experience of all
Annuitants and Joint Annuitants. In effect, Annuitants and Joint Annuitants
who live longer are subsidized by those who do not.
2. JOINT AND SURVIVOR ANNUITY WITH FULL ANNUITY INCOME TO THE SURVIVOR.
Under this option, we will provide annuity income jointly to you and the
Joint Annuitant while you are both living, except that for a Qualified
Contract or Tax-Sheltered Annuity Contract during your lifetime we provide
the income only to you. After the death of either of you, we will continue
to provide the full amount of annuity income to the survivor. Annuity
income stops when both you and the Joint Annuitant are no longer living. As
in the case of the single life annuity described above, there is the risk
that you may receive annuity income only once.
3. JOINT AND SURVIVOR ANNUITY WITH REDUCED ANNUITY INCOME TO THE SURVIVOR.
This option is like Option 2 above, except that annuity income is higher
while both you and the Joint Annuitant are living, and lower when only one
of you is still living. You indicate on your application whether annuity
income to the survivor is reduced to two-thirds, or one-half, of the amount
that it would have been were you both still alive.
4. JOINT AND SURVIVOR ANNUITY WITH FULL ANNUITY INCOME TO THE ANNUITANT IF
THE JOINT ANNUITANT DIES, BUT REDUCED ANNUITY INCOME TO THE JOINT ANNUITANT
IF THE ANNUITANT DIES. This option is like Option 3 above, but annuity
income is not reduced upon the death of the Joint Annuitant if the Joint
Annuitant is the first to die. In case you are the first to die, you
indicate on your application whether annuity income to the Joint Annuitant
is reduced to two-thirds, or one-half, of the amount that it would have
been were you both still alive. While you and the Joint Annuitant are both
still alive, this option provides greater annuity income than Option 2 but
not as much annuity income as Option 3.
For Options 2, 3 and 4, if either you or the Joint Annuitant die before the
first Annuity Income Date, we will adjust the annuity income so that it
equals what would have been paid under a single life annuity issued to the
survivor. This will generally result in greater annuity income.
GUARANTEE PERIOD
On your application, you may choose a guaranteed number of years of annuity
income beginning with the first Annuity Income Date. You may choose a
number of years from five (5) to thirty (30). You may do this for any
annuity income option. If neither you nor the Joint Annuitant lives to the
end of the guarantee period, any remaining annuity income will go to your
Beneficiary or Beneficiaries. For Options 3 and 4 above, if you and the
Joint Annuitant die at the same time, the annuity income due to any
Beneficiary will be the same as if you died before the Joint Annuitant. If
you choose to have a guarantee period, the amount of annuity income on each
Annuity Income Date will be lower than if you had not chosen the guarantee.
If (a) you choose Option 2, 3 or 4 with a guarantee period, (b) an Owner
dies before the first Annuity Income Date, and (c) the survivor (whether it
is you or the Joint Annuitant) is not the deceased Owner's spouse, we will
adjust the guarantee period, as required by the federal income tax laws, so
that it is not longer than the life expectancy of the survivor. This may
result in a shorter guarantee period and a generally higher amount of
annuity income.
If a Beneficiary is entitled to annuity income, the Beneficiary may choose
(a) to continue receiving annuity income on each remaining Annuity Income
Date, or (b) to receive a lump sum instead. The Beneficiary must notify us
within 60 days of the date we receive notice of the relevant death to elect
a lump sum. Otherwise, the Beneficiary will receive annuity income for the
remaining guaranteed Annuity Income Dates.
A lump sum will become due under a Contract if there are guaranteed Annuity
Income Dates remaining and either: (a) a Beneficiary elects a lump sum on
the death of the last survivor of you and the Joint Annuitant, (if any);
(b) a Beneficiary receiving guaranteed annuity income dies, or (c) the last
survivor of you and the Joint Annuitant, (if any), dies and the Beneficiary
is no longer living. For (b) the lump sum will be paid to the Beneficiary's
estate. For (c) it will go to the estate of the last to die of you and the
Joint Annuitant, (if any).
The fixed annuity income portion of any lump sum will be the present value
of the annuity income for the remaining guaranteed Annuity Income Dates,
discounted at a rate that is one percent greater than the ten year United
States Treasury Bond rate on the first Business Day after the day FILI
receives due proof of the Beneficiary's death or the Beneficiary's election
at the Annuity Service Center.
The variable annuity income portion will be the present value of the
annuity income for the remaining guaranteed Annuity Income Dates, based on
interest compounded annually at the Benchmark Rate of Return that FILI used
in determining the annuity income on the first Annuity Income Date.
If FILI believes that the first annuity income amount due to any
Beneficiary will be less than $50, FILI may instead provide a lump sum for
the value of all remaining annuity income. The amount of the lump sum will
be determined on the same basis as described above for other lump sums.
REPORTS
If part or all of your Purchase Payment is allocated to variable income, we
will send you a statement showing the number of Annuity Income Units in
each variable Investment Option, and the value of each Annuity Income Unit,
at least once each calendar quarter, and each time you transfer Annuity
Income Units among the Investment Options.
We will also send you semiannual reports containing financial statements
for the Funds, and a list of portfolio securities of the Funds, as required
by the Investment Company Act of 1940.
8.MORE ABOUT THE CONTRACT
TAX CONSIDERATIONS
TREATMENT OF DISTRIBUTIONS
TAXATION OF DISTRIBUTIONS. The portion of an annuity income distribution
that is includible in ordinary income may vary depending on the annuity
income option selected under the Contract, but generally is the excess of
the distribution over the "exclusion amount." In the case of a variable
annuity income distribution, the exclusion amount is generally the
"investment in the contract" allocated to the variable annuity income,
adjusted for any guaranteed period, divided by the expected number of
periodic annuity income distributions (determined under Treasury Department
regulations). In the case of fixed annuity income distributions, the
exclusion amount is generally the amount determined by multiplying the
distribution by the ratio (determined under Treasury Department
regulations) of (1) the investment in the contract allocated to the fixed
annuity income, adjusted for any guaranteed period, to (2) the "expected
return" under the fixed annuity income distributions. For Qualified
Contracts and Tax-Sheltered Annuity Contracts, the investment in the
contract is generally zero. When the investment in the contract is zero,
annuity income distributions are fully taxable as ordinary income.
After the dollar amount of the investment in the contract, adjusted for any
guaranteed period, is deemed to be recovered, the entire amount of each
annuity income distribution will be fully includible in income. On the
other hand, should the annuity income distributions cease before the
adjusted investment in the contract is fully recovered, the person
receiving those distributions at the time of their death will be allowed a
deduction for the unrecovered amount of the adjusted investment in the
contract Where a guaranteed period of annuity income distributions is
selected and no Annuitant or Joint Annuitant lives to the end of that
period, the annuity income distributions made to the Beneficiary for the
remainder of that period are includible in income as follows: (1) if
received in a lump sum, they are included in income to the extent that they
exceed the unrecovered investment in the contract at the time; or (2) if
distributed as annuity income distributions, they are fully excluded from
income until the remaining investment in the contract is deemed to be
recovered, and all annuity income distributions thereafter are fully
includible in income.
PENALTY TAX. Certain distributions under the Contract may be subject to a
penalty tax equal to 10% of the portion of the distribution which is
includible in income. Annuity income distributions under Qualified
Contracts and Tax-Sheltered Annuity Contracts typically will not be subject
to the penalty tax. Also, the penalty tax generally will not be imposed on
distributions under a Non-qualified Contract that are made (1) on or after
the taxpayer attains age 59 1/2; (2) as part of a series of "substantially
equal periodic payments" over the life (or life expectancy) of the taxpayer
or the joint lives (or joint life expectancies) of the taxpayer and his or
her beneficiary; (3) under an "immediate annuity" (as that term is defined
in the tax law); or (4) in certain other situations. It is unclear at this
time whether annuity distributions under a Non-qualified Contract prior to
the recipient attaining age 59 1/2 satisfy an exception to the penalty tax.
Accordingly, a prospective purchaser of a Non-qualified Contract who
expects to receive distributions prior to attaining age 59 1/2 should
consult a qualified tax advisor regarding the application of the penalty
tax to those distributions.
WITHHOLDING AND REPORTING. FILI will, as required by law, withhold and
remit to the U.S. Government a part of the taxable portion of each
distribution under the Contract, unless a written election not to have any
amounts withheld is filed prior to the distribution. Also, FILI will report
all annuity income distributions made while you are alive as being
distributed in full to you, even if you name a Joint Annuitant.
QUALIFIED CONTRACTS AND TAX-SHELTERED ANNUITY CONTRACTS
The Contract may be used as an Individual Retirement Annuity under Section
408(b) of the Internal Revenue Code and as a qualified tax-sheltered
annuity under Section 403(b) of the Code. Section 408(b) of the Code
permits eligible individuals to contribute to an individual retirement
program known as an "Individual Retirement Annuity." Also, Section 403(b)
of the Code permits public school employees and employees of certain types
of charitable, educational and scientific organizations specified in
Section 501(c)(3) of the Code to have their employers purchase
tax-sheltered annuities for them and, subject to certain limitations, to
exclude the amount of purchase payments from gross income for tax purposes.
You should seek competent advice as to the tax consequences associated with
the use of a Contract as a Qualified Contract or Tax-Sheltered Annuity
Contract.
Because the Contract's minimum Purchase Payment is greater than the maximum
annual contribution permitted to an Individual Retirement Annuity or a
tax-sheltered annuity, a Qualified Contract and a Tax-Sheltered Annuity
Contract may be purchased only in connection with a "rollover" (including a
direct trustee-to-trustee transfer, where permitted). Specifically, a
Qualified Contract may be purchased only in connection with a rollover of
amounts from a qualified plan, tax-sheltered annuity, or IRA. Also, a
Tax-Sheltered Annuity Contract may be purchased only in connection with a
rollover of amounts from another tax-sheltered annuity.
If the Contract is used as a Qualified Contract or a Tax-Sheltered Annuity
Contract, you must be the sole Owner of the Contract and the Annuitant. If
you name a Joint Annuitant, all distributions made while you are alive must
be made to you. Also, if you name a Joint Annuitant who is not your spouse,
the annuity income options from which you may select may be limited,
depending on the difference in ages between you and the Joint Annuitant.
Furthermore, if you choose a guaranteed period, the length of the period
may have to be limited in order to satisfy certain minimum distribution
requirements of the Code.
In order to satisfy the requirements in the Code, you generally may not
purchase a Tax-Sheltered Annuity Contract unless you have reached age 59
1/2, separated from service, or become disabled (within the meaning of the
tax law). Certain payments, known as "eligible rollover distributions,"
from a Tax-Sheltered Annuity Contract will be subject to the new direct
rollover and mandatory withholding requirements enacted by Congress in
1992. Generally, distributions from a Tax-Sheltered Annuity Contract will
not constitute eligible rollover distributions. However, if an eligible
rollover distribution is made under a Tax-Sheltered Annuity Contract, you
will receive prior to the distribution a notice (from the plan
administrator or FILI) explaining generally the new direct rollover and
mandatory withholding requirements and how to avoid the mandatory
withholding thereunder by electing to have the distribution directly
transferred to certain qualified retirement plans.
TAX DEFERRAL UNTIL DISTRIBUTIONS ARE MADE
Under existing provisions of the Code, any increase in the value of the
Contract is generally not taxable until distributions are made under one of
the Contract's annuity income options. However, as discussed below, this
tax deferral generally applies only if (1) the Owner is an individual, (2)
the investments in the Variable Account are adequately diversified in
accordance with Treasury Department regulations, (3) FILI, rather than the
Owner, is considered the owner of the assets of the Variable Account for
Federal tax purposes, and (4) certain distribution requirements are met in
the event that you die.
NON-NATURAL OWNER. In certain circumstances, if an Owner were a
"non-natural" person, such as a corporation or a trust, the Contract would
not be treated as an annuity contract for Federal tax purposes, and the
Owner would be taxable currently on the income and gain from the assets of
the Variable Account. Accordingly, the Contract must be owned by an
individual (or individuals), and will not be issued to "non-natural"
persons.
DIVERSIFICATION REQUIREMENTS. For a Contract to be treated as an annuity
contract for Federal income tax purposes, the investments of the Variable
Account must be "adequately diversified." The Treasury Department has
issued regulations which prescribe standards for determining whether the
investments of the Variable Account are "adequately diversified." If the
Variable Account failed to comply with these diversification standards, the
Contracts would not be treated as annuity contracts for Federal income tax
purposes, and each Owner would be taxable currently on the income and gain
from the assets of the Variable Account. Although FILI does not control the
investments of the Funds, FILI has entered into agreements with the Funds
requiring them to operate in compliance with the Treasury Department
regulations so that the Variable Account will be considered "adequately
diversified."
OWNERSHIP TREATMENT. In certain circumstances, variable annuity contract
owners may be considered the owners, for Federal income tax purposes, of
the assets of the separate account used to support their contracts. In
those circumstances, income and gains from the separate account assets
would be includible in the contract owners' gross income. Several years
ago, the Internal Revenue Service (the "Service") stated in published
rulings that a variable contract owner will be considered the owner of
separate account assets if the owner possesses incidents of ownership in
those assets, such as the ability to exercise investment control over the
assets. More recently, the Treasury Department announced, in connection
with the issuance of regulations concerning investment diversification,
that those regulations "do not provide guidance concerning the
circumstances in which investor control of the investments of a segregated
asset account may cause the investor, rather than the insurance company, to
be treated as the owner of the assets in the account." This announcement
also stated that guidance would be issued by way of regulations or rulings
on the "extent to which policyholders may direct their investments to
particular sub-accounts [of a separate account] without being treated as
owners of the underlying assets." As of the date of this Prospectus, no
such guidance has been issued.
The ownership rights under the Contract are similar to, but different in
certain respects from, those described by the Service in rulings in which
it was determined that contract owners were not owners of separate account
assets. For example, the Owner of the Contract has a choice of more
Investment Options to which to allocate the Purchase Payment, and may be
able to transfer among Investment Options more frequently than in such
rulings. These differences could result in the Owner being treated as the
owner of the assets of the Variable Account, and thus income and gain from
such assets would be includible in the Owner's income annually. In
addition, it is not known what standards will be set forth in the
regulations or rulings which the Treasury Department has stated it expects
to issue. The Company therefore reserves the right to modify the Contract
as necessary to attempt to prevent the Owner from being considered the
owner of the assets of the Variable Account.
DISTRIBUTION REQUIREMENTS. To qualify as an annuity for Federal tax
purposes, the Contract must satisfy certain distribution requirements in
the event of your death. The Contract contains the required distribution
provisions. In certain situations, those provisions may limit the
guaranteed period over which annuity income distributions can be made (if
such a period is selected).
This discussion of the Tax Considerations assumes that the Contract will be
treated as an annuity contact for Federal income tax purposes and that FILI
will be treated as the owner of the Variable Account assets.
FILI'S TAX STATUS
FILI is taxed as a life insurance company under Subchapter L of the Code.
Since the operations of the Variable Account are part of, and are taxed
with, the operations of FILI, the Variable Account is not separately taxed
as a "regulated investment company" under Subchapter M of the Code. Under
existing Federal income tax laws, investment income and capital gains of
the Variable Account are not taxed to the extent they are applied to
increase reserves under a contract. FILI does not expect to incur Federal
income taxes attributable to the Variable Account. Based on this, no charge
is being made currently to the Variable Account for Federal income taxes.
FILI will periodically review the need for a charge to the Variable Account
for its Federal income taxes. Such a charge may be made in future years for
any Federal income taxes that would be attributable to the Contracts.
Under existing laws, FILI may incur state and local taxes (in addition to
premium taxes) in several states. At present, these taxes (other than
premium taxes) are not significant and are not charged against the
Contracts or the Variable Account. If the amount of these taxes changes
substantially, FILI may make charges for such taxes against the Variable
Account.
GENERAL TAX CONSIDERATIONS
The above discussion is not exhaustive and is not intended as tax advice.
The Federal income tax consequences associated with the purchase of an
immediate annuity, like the Contract, are complex, and the application of
the pertinent tax rules to a particular person may vary according to facts
specific to that person. A qualified tax advisor should always be consulted
regarding the application of law to individual circumstances. In
particular, if you name a Joint Annuitant who is not your spouse (or if the
Joint Annuitant is your spouse and you and your spouse do not file joint
income tax returns), you should consult a qualified tax advisor as to the
tax consequences of your particular arrangement.
This discussion is based on the Code, Treasury Department regulations, and
interpretations existing on the date of this Prospectus. These authorities,
however, are subject to change by Congress, the Treasury Department, and
judicial decisions.
This discussion does not address Federal estate and gift tax consequences,
or state or local tax consequences, associated with the purchase of a
Contract. In addition, Fidelity Investments Life Insurance Company makes no
guarantee regarding any tax treatment - Federal, state, or local - of any
contract or of any transaction involving a Contract.
9.OTHER CONTRACT PROVISIONS
You should also be aware of the following important provisions of your
Contract.
1. OWNER(S). Before a Contract is issued, the Owner(s) have the right to
(a) name the Joint Annuitant, (if any); (b) allocate the Purchase Payment
between fixed and variable annuity income; (c) choose an annuity income
option; (d) allocate the Purchase Payment among the Investment Options; (e)
choose the Benchmark Rate of Return; (f) name the Beneficiary or
Beneficiaries; and (g) select the first Annuity Income Date and how often
you will receive annuity income.
After a Contract is issued, each Owner named in the application has the
following rights: (a) the right to change any Beneficiary; (b) the right to
cancel the Contract during the free look period; (c) any right to
reallocate among the Investment Options; and (d) the right to instruct us
how to vote shares of an investment portfolio attributable to the Contract.
A Joint Annuitant who is not an Owner when a Contract is issued will
succeed to the rights in the paragraph above if he or she survives the
Owner. When no Owner or Joint Annuitant is still alive, each Beneficiary
will have (a) the right to reallocate among the Investment Options, and (b)
the right to instruct us how to vote shares of an investment portfolio
attributable to the Contract, with respect to his or her share of annuity
income.
2. ANNUITANT. You have the right to receive annuity income under the terms
of the Contract. You also have rights as an Owner as described above.
3. JOINT ANNUITANT. For Non-qualified Contracts, the Joint Annuitant, (if
any), has the right to receive annuity income jointly with you under the
terms of the Contract. The Joint Annuitant may also be an Owner, or succeed
to the rights of the Owner(s) as described above. For Qualified Contracts
and Tax-Sheltered Annuity Contracts, (a) all annuity income during your
lifetime must be received only by you, and (b) the Joint Annuitant may not
be an Owner.
4. BENEFICIARY. You may name one or more Beneficiaries when you complete
your application. You may change Beneficiaries later, unless you have
designated an irrevocable Beneficiary, in which case we will require the
consent of the irrevocable Beneficiary in writing. The Beneficiary (or
Beneficiaries) will receive (a) annuity income for the remainder of any
guarantee period after the death(s) of the Annuitant (and Joint Annuitant
if any); and (b) a refund of your Purchase Payment if you (and the Joint
Annuitant, if any) do not live to the first Annuity Income Date. Surviving
Beneficiaries will receive equal shares unless you specify otherwise. If a
Beneficiary receiving annuity income dies, we will provide a lump sum to
his or her estate. See TYPES OF ANNUITY INCOME OPTIONS on page .
5. MISSTATEMENT OF DATE OF BIRTH OR SEX. If the date of birth or sex of you
or the Joint Annuitant has been misstated, FILI will change the benefits to
those which the proceeds would have purchased had the correct date(s) of
birth and sex(es) been stated.
If the misstatement is not discovered until after the first Annuity Income
Date, FILI will take the following action: (1) if FILI provided too much
annuity income, FILI will add interest at the rate of 6% per year
compounded annually and withhold annuity income on subsequent following
Annuity Income Date(s) until it has recovered the excess; (2) if FILI
provided too little annuity income, we will make up the balance plus
interest at the rate of 6% per year compounded annually in a lump sum.
6. ASSIGNMENT. The Contract may not be assigned.
7. DIVIDENDS. The Contract is "non-participating." This means that there
are no dividends. Investment results of the Investment Options are
reflected in benefits.
8. NOTIFICATION OF DEATH. Any Beneficiary claiming an interest in the
Contract must provide us in writing with due proof of your death and the
death of the Joint Annuitant, (if any), at the Annuity Service Center. We
will not be responsible for any annuity income paid to you or the Joint
Annuitant, (if any), before we receive due proof of death at the Annuity
Service Center.
You and the Joint Annuitant are each responsible for notifying FILI of the
death of the other. Each Beneficiary is responsible for notifying FILI of
the death of the last surviving Annuitant or Joint Annuitant. Upon the
death of the last person with the right to receive annuity income under a
Contract, that person's executor is responsible for notifying FILI. If too
much annuity income is provided because FILI is not notified of a death,
FILI may withhold annuity income on subsequent Annuity Income Dates, or
take legal action, until it has recovered any excess amounts.
SELLING THE CONTRACTS
The Contracts are distributed through Fidelity Brokerage Services, Inc. and
Fidelity Insurance Agency, Inc. Each is a subsidiary of FMR Corp., the
parent company of FILI. Fidelity Brokerage Services, Inc. is the principal
underwriter (distributor) of the Contracts. Fidelity Distributors
Corporation is the distributor of the Fidelity family of funds, including
the Funds. The principal business address of Fidelity Brokerage Services,
Inc. and Fidelity Distributors Corporation is 82 Devonshire Street, Boston,
Massachusetts 02109. Fidelity Insurance Agency, Inc. receives sales
compensation from FILI of not more than 0.10% of the reserves held to
support the Contracts. Amounts paid by FILI to Fidelity Insurance Agency,
Inc. will be paid out of the general assets of FILI, which may include
proceeds derived from mortality and expense risk charges FILI deducts from
the Variable Account.
POSTPONEMENT OF BENEFITS
We will usually send annuity income within seven days of the Annuity Income
Date. We will usually send any lump sum distributions to Beneficiaries
within seven days of the day we receive proper notice. We will usually send
any Death Benefit within seven days after we receive due proof of your
death (for a single life Contract) or the deaths of you and the Joint
Annuitant (for a joint life Contract). However, we may delay sending these
amounts if (1) the disposal or valuation of the Variable Account's assets
is not reasonably practicable because the New York Stock Exchange is closed
for other than a regular holiday or weekend, trading is restricted by the
SEC, or the SEC declares that an emergency exists; or (2) the SEC by order
permits postponement for any other reason.
10.MORE ABOUT THE VARIABLE ACCOUNT AND THE FUNDS
CHANGES IN INVESTMENT OPTIONS
We may from time to time make additional investment options available to
you. These investment options will invest in investment portfolios that we
find suitable for the Contract.
FILI also has the right to eliminate any Investment Option, to combine two
or more Investment Options, or substitute a new portfolio or fund for the
Portfolio in which an Investment Option invests. A substitution may become
necessary if, in FILI's judgment, a Portfolio or Fund no longer suits the
purpose of the Contract. This may happen due to a change in laws or
regulations, or a change in a Portfolio's investment objectives or
restrictions, or because the Portfolio is no longer available for
investment, or for some other reason. FILI would obtain prior approval from
the SEC and any other required approvals before making such a substitution.
FILI also reserves the right to operate the Variable Account as a
management investment company under the 1940 Act or any other form
permitted by law or to deregister the Variable Account under such Act in
the event such registration is no longer required.
NET RATE OF RETURN FOR AN INVESTMENT OPTION
The Net Rate of Return reflects the investment performance of the
Investment Option, less all expenses and charges, for the Valuation Period.
FILI determines the Net Rate of Return of an Investment Option at the end
of each Valuation Period. Such determinations are made as of the close of
business each day the New York Stock Exchange is open for business.
Shares of the Funds are valued at net asset value. Any dividends or capital
gains distributions of a Portfolio of the Funds are reinvested in shares of
that Portfolio.
VOTING RIGHTS
FILI will vote shares of the Funds owned by the Variable Account according
to your instructions. However, if the Investment Company Act of 1940 or any
related regulations or interpretations should change, and FILI decides that
it is permitted to vote the shares of the Funds in its own right, it may
decide to do so.
FILI calculates the number of shares that you may instruct it to vote by
dividing the reserve maintained in each Investment Option to meet the
obligations under the Contract by the net asset value of one share of the
corresponding Portfolio. Fractional votes will be counted. FILI reserves
the right to modify the manner in which it calculates the weight to be
given to your voting instructions where such a change is necessary to
comply with federal regulations or interpretations of those regulations.
FILI will determine the number of shares you can instruct it to vote 90
days or less before the applicable Fund shareholder meeting. At least 14
days before the meeting, we will mail you material for providing your
voting instructions.
If your voting instructions are not received in time, FILI will vote the
shares in the same proportion as the instructions received with regard to
all other contracts issued through the Variable Account. FILI will also
vote shares it holds in the Variable Account that are not attributable to
contracts in the same proportionate manner. Under certain circumstances,
FILI may be required by state regulatory authorities to disregard voting
instructions. This may happen if following such instructions would change
the sub-classification or investment objectives of the Portfolios, or
result in the approval or disapproval of an investment advisory contract.
Under federal regulations, FILI may also disregard instructions to vote for
changes in investment policies or the investment adviser if it disapproves
of the proposed changes. FILI would disapprove a proposed change only if it
were contrary to state law, prohibited by state regulatory authorities, or
if it decided that the change would result in overly speculative or unsound
investments. If FILI ever disregards voting instructions, it will include a
summary of its actions in the next semi-annual report.
RESOLVING MATERIAL CONFLICTS
The Funds are available to separate accounts offering variable annuity and
variable life products of other participating insurance companies, as well
as to the Variable Account and other separate accounts FILI establishes.
Although FILI does not anticipate any disadvantages to this, there is a
possibility that a material conflict may arise between the interest of the
Variable Account and one or more of the other separate accounts
participating in a Fund. A conflict may occur due to a change in law
affecting the operations of variable life insurance and variable annuity
separate accounts, differences in the voting instructions we receive and
instructions received by other companies, or some other reason. In the
event of a conflict, it is possible that the Variable Account might be
required to withdraw its investment in the Funds. In the event of any
conflict, we will take any steps necessary to protect Annuitants, Joint
Annuitants and Beneficiaries.
PERFORMANCE
Performance information for the Investment Options may appear in reports
and advertising to current and prospective Owners, Annuitants, Joint
Annuitants and Beneficiaries. The performance information is based on
historical investment experience of the Investment Options and the Funds
and does not indicate or represent future performance.
Total returns are based on the overall dollar or percentage change in value
of a hypothetical investment. Total return quotations reflect changes in
Portfolio share price, the automatic reinvestment by the separate account
of all distributions and the deduction of applicable annuity charges.
A cumulative total return reflects performance over a stated period of
time. An average annual total return reflects the hypothetical annually
compounded return that would have produced the same cumulative total return
if the performance had been constant over the entire period. Because
average annual total returns tend to smooth out variations in an Investment
Option's returns, you should recognize that they are not the same as actual
year-by-year results.
Some Investment Options may also advertise yield. These measures reflect
the income generated by an investment in the Investment Option over a
specified period of time. This income is annualized and shown as a
percentage. Yields do not take into account capital gains or losses.
The Money Market Investment Option may advertise its current and effective
yield. Current yield reflects the income generated by an investment in the
Investment Option over a 7 day period. Effective yield is calculated in a
similar manner except that income earned is assumed to be reinvested. The
Investment Grade Bond and the High Income Investment Options may advertise
a 30 day yield which reflects the income generated by an investment in the
Investment Option over a 30 day period.
LITIGATION
Neither FILI, the Variable Account, nor Fidelity Brokerage Services, Inc.
is a party to any material litigation.
11.APPENDIX - ILLUSTRATIONS OF VALUES
The following tables have been prepared to show how investment performance
affects your variable annuity income over time. In these illustrations, we
assume that you are the person who will receive the variable annuity
income, and that the Contract is a Non-qualified Contract. The
illustrations show variable annuity income amounts and fixed annuity income
amounts.
The variable annuity income amounts reflect three different assumptions for
a constant investment return after all expenses: -1.6 5 %, the
Benchmark Rate of Return, and 10%. These are hypothetical rates of return
and, of course, FILI does not guarantee that you will earn these returns
for any one year or any sustained period of time. The tables are for
illustrative purposes only and do not represent past or future investment
returns.
Your variable income may be more or less than the income shown if the
actual returns of the Investment Options are different than those
illustrated. Since it is very likely that your investment returns will
fluctuate over time, you can expect that the amount of your annuity income
will also fluctuate. The total amount of annuity income ultimately received
will depend on how long you live and whether you choose a guarantee period
option.
Another factor which determines the amount of variable annuity income is
the Benchmark Rate of Return. You choose the Benchmark Rate of Return from
the options available. Income will increase from one Annuity Income Date to
the next if the annualized Net Rate of Return during that time is greater
than the Benchmark Rate of Return you choose, and will decrease if the
annualized Net Rate of Return is less than the Benchmark Rate of Return.
Two tables follow. The first is based on a 3.5% Benchmark Rate of Return,
and the second is based on a 5% Benchmark Rate of Return.
The income amounts shown reflect the deduction of all fees and expenses.
Portfolio management fees and operating expenses are assumed to be at an
annual rate of .6 6 % of their average daily net assets. Actual fees
and expenses under the Contract may be higher or lower, will vary from year
to year, and will depend on how you allocate among the portfolios. The
mortality and expense risk and administration charge are assumed to be at
an annual rate of 1% of the average daily net assets.
Upon request we will furnish a customized illustration based on your
individual circumstances and choice of annuity options.
12.FIDELITY INCOME ADVANTAGE ILLUSTRATION13.
N.FIA
34
ANNUITANT(S): JOHN DOE ANNUITY PURCHASE AMOUNT: $100,000
SEX: MALE CONTRACT DATE: 3/1/96
DATE OF BIRTH: 1/1/31 FIRST ANNUITY INCOME DATE: 4/1/96
PURCHASE PAYMENT ALLOCATION: 100% VARIABLE 0% FIXED
ANNUITY INCOME OPTION:
SINGLE LIFE ANNUITY FREQUENCY OF ANNUITY INCOME: MONTHLY
PREMIUM TAX FOR __________: 0%
The amount of monthly variable annuity income shown in the table below and
the graph that follows assumes a constant annual investment return. The
amount of variable annuity income you actually receive will depend on the
investment performance of the portfolios you select. Your variable income
can go up or down and no minimum dollar amount of variable income is
guaranteed. The amounts shown are based on a 3.5% Benchmark Rate of Return.
Annual rate of return after all expenses: (1)
Annuity Income Date Age -1.65% 3.5% 10%
Apr. 1, 1996 65 $ 592 $ 594 $ 597
Apr. 1, 1997 66 $ 562 $ 594 $ 635
Apr. 1, 1998 67 $ 534 $ 594 $ 675
Apr. 1, 1999 68 $ 508 $ 594 $ 717
Apr. 1, 2000 69 $ 482 $ 594 $ 762
Apr. 1, 2005 74 $ 374 $ 594 $ 1,033
Apr. 1, 2010 79 $ 289 $ 594 $ 1,401
Apr. 1, 2015 84 $ 224 $ 594 $ 1,900
(1) The corresponding returns before annuity and investment expenses are:
0%, 5.24%, and 11.85%
N.FIA
35
IF YOU APPLIED 100% OF YOUR PURCHASE PAYMENT TO FIXED ANNUITY INCOME ON THE
DATE OF THIS ILLUSTRATION, THE AMOUNT OF YOUR FIXED ANNUITY INCOME WOULD BE
$654.91.
FIDELITY INCOME ADVANTAGE
ANNUITY INCOME GRAPH
Current 0.66%
Male, Age 65, Life Only Updated 3/14/96
3.5%Benchmark
First Pay $593.44
Net Returns
Year -1.65% 3.50% 10.00%
1 $592 $594 $597
2 $562 $594 $635
3 $534 $594 $675
4 $508 $594 $717
5 $482 $594 $762
6 $458 $594 $810
7 $436 $594 $861
8 $414 $594 $915
9 $393 $594 $972
10 $374 $594 $1,033
11 $355 $594 $1,098
12 $337 $594 $1,167
13 $321 $594 $1,241
14 $305 $594 $1,319
15 $289 $594 $1,401
16 $275 $594 $1,489
17 $261 $594 $1,583
18 $248 $594 $1,682
19 $236 $594 $1,788
20 $224 $594 $1,900
$5,000.00 of your annuity income is tax free each year until the total
amount of tax-free income equals the amount of your original investment.
14.FIDELITY INCOME ADVANTAGE ILLUSTRATION15.
N.FIA
36
ANNUITANT(S): JOHN DOE ANNUITY PURCHASE AMOUNT: $100,000
SEX: MALE CONTRACT DATE: 3/1/96
DATE OF BIRTH: 1/1/31 FIRST ANNUITY INCOME DATE: 4/1/96
PURCHASE PAYMENT ALLOCATION: 100% VARIABLE 0% FIXED
ANNUITY INCOME OPTION:
SINGLE LIFE ANNUITY FREQUENCY OF ANNUITY INCOME: MONTHLY
PREMIUM TAX FOR __________: 0%
The amount of monthly variable annuity income shown in the table below and
the graph that follows assumes a constant annual investment return. The
amount of variable annuity income you actually receive will depend on the
investment performance of the portfolios you select. Your variable income
can go up or down and no minimum dollar amount of variable income is
guaranteed. The amounts shown are based on a 5.0% Benchmark Rate of Return.
Annual rate of return after all expenses: (1)
Annuity Income Date Age -1.65% 5% 10%
Apr. 1, 1996 65 $ 681 $ 685 $ 688
Apr. 1, 1997 66 $ 638 $ 685 $ 721
Apr. 1, 1998 67 $ 598 $ 685 $ 755
Apr. 1, 1999 68 $ 560 $ 685 $ 791
Apr. 1, 2000 69 $ 524 $ 685 $ 829
Apr. 1, 2005 74 $ 378 $ 685 $ 1,046
Apr. 1, 2010 79 $ 273 $ 685 $ 1,319
Apr. 1, 2015 84 $ 196 $ 685 $ 1,665
(1) The corresponding returns before annuity and investment expenses are:
0%, 6.77%, and 11.85%
N.FIA
37
IF YOU APPLIED 100% OF YOUR PURCHASE PAYMENT TO FIXED ANNUITY INCOME ON THE
DATE OF THIS ILLUSTRATION, THE AMOUNT OF YOUR FIXED ANNUITY INCOME WOULD BE
$654.91. FIDELITY INCOME ADVANTAGE
ANNUITY INCOME GRAPH
Current 0.66%
Male, Age 65, Life Only Updated 3/14/96
5%Benchmark
First Pa $683.86
Net Returns
Year -1.65% 5.00% 10.00%
1 $681 $685 $688
2 $638 $685 $721
3 $598 $685 $755
4 $560 $685 $791
5 $524 $685 $829
6 $491 $685 $868
7 $460 $685 $909
8 $431 $685 $953
9 $404 $685 $998
10 $378 $685 $1,046
11 $354 $685 $1,095
12 $332 $685 $1,148
13 $311 $685 $1,202
14 $291 $685 $1,259
15 $273 $685 $1,319
16 $255 $685 $1,382
17 $239 $685 $1,448
18 $224 $685 $1,517
19 $210 $685 $1,589
20 $196 $685 $1,665
$5,000.00 of your annuity income is tax free each year until the total
amount of tax-free income equals the amount of your original investment.
16.TABLE OF CONTENTS
OF THE STATEMENT OF ADDITIONAL INFORMATION
General Information
Performance
Safekeeping of Variable Account Assets
Distribution of the Contracts
State Regulation
Legal Matters
Registration Statement
Independent Accountants
Financial Statements
PART B
INFORMATION REQUIRED IN A STATEMENT
OF ADDITIONAL INFORMATION
FIDELITY INCOME ADVANTAGE
STATEMENT OF ADDITIONAL INFORMATION
APRIL 30, 199 6
This Statement of Additional Information supplements the information found
in the current Prospectus for the variable annuity contracts ("Contracts")
offered by Fidelity Investments Life Insurance Company through its Fidelity
Investments Variable Annuity Account I (the "Variable Account"). You may
obtain a copy of the Prospectus dated April 30, 199 6 , without
charge by calling 800-544-2442.
THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND SHOULD BE
READ TOGETHER WITH THE PROSPECTUS FOR THE CONTRACT.
TABLE OF CONTENTS PAGE
General Information
Performance
Yields
Annuity Income
Safekeeping of Variable Account Assets
Distribution of the Contracts
State Regulation
Legal Matters
Registration Statement
Independent Accountants
Financial Statements
GENERAL INFORMATION
We may advertise quotes of Owners, Annuitants, Joint Annuitants or
Beneficiaries discussing Fidelity Income Advantage or services provided by
FILI. In addition, we may from time to time use statistics in advertising
to support the growth of annuity sales. Information to support these
statistics may be obtained from the Life Insurance Marketing Research
Association, A.M. Best, American Council of Life Insurance or the Variable
Annuity Research and Data Service.
From time to time, we may reprint and use as advertising and sales
literature, articles or quotes from financial or business publications and
periodicals. In addition, we may reference or discuss the products and
services of other affiliated companies, which may include: Fidelity funds;
retirement investing; brokerage products and services; saving for college;
charitable giving; and the Fidelity credit card.
In addition, Fidelity Investments Life may also provide information to help
individuals understand their investment goals and explore various financial
strategies. In communicating these strategies, we may:
(solid bullet) compare the differences between tax deferred and taxable
investments;
(solid bullet) discuss factors to consider when purchasing the contract;
(solid bullet) discuss the effects of probate when transferring the
contract to heirs;
(solid bullet) discuss traditional sources of retirement income and
products which may be used to supplement that income;
(solid bullet) discuss effects of inflation on fixed-income sources and how
the variable investment options may be used as a potential hedge against
inflation during the deferral and income periods;
(solid bullet) illustrate and compare the effects additional payments have
on a contract;
(solid bullet) discuss strategies of reducing risk through diversification
of purchase payments and providing hypothetical investment mixes;
(solid bullet) discuss past returns of different classes of investments
based on data supplied through various sources such as Ibbotson Associates
of Chicago, Illinois, and;
(solid bullet) assist policyholders with inquiries regarding their annuity.
This information may be obtained from various sources such as The U.S.
Department of the Treasury, U.S. Department of Labor, and Individual
Annuitant Mortality Table. We may present this information through various
methods such as charts, graphs, illustrations, and tables.
You may purchase the contract with proceeds from various sources such as
transactions qualifying for a tax-free exchange under Section 1035 of the
Internal Revenue Code.
PERFORMANCE
Performance information for any Investment Option may be compared, in
reports and advertising to: (1) the Standard & Poor's Index of 500 stocks
("S&P 500"), Dow Jones Industrial Average ("DJIA"), Donoghue's Money Market
Institutional Averages; (2) other variable annuity separate accounts or
other investment products tracked by Lipper Analytical Services,
Morningstar, or the Variable Annuity Research and Data Service, widely used
independent research firms which rank mutual funds and other investment
companies by overall performance, investment objectives, and assets; and
(3) the Consumer Price Index (measure for inflation) to assess the real
rate of return from an investment. Unmanaged indices may assume the
reinvestment of dividends but generally do not reflect deductions for
annuity charges and investment management costs.
Total returns, yields and other performance information may be quoted
numerically or in a table, graph, or similar illustration. Reports and
advertising may also contain other information including the ranking of any
Investment Option derived from rankings of variable annuity separate
accounts or other investment products tracked by Lipper Analytical
Services, rating services, companies, publications or other persons who
rank separate accounts or other investment products.
The tables below provide performance results for each Investment Option
through 12/31/9 5 . The performance information is based on the
historical investment experience of the Investment Options and of the
Portfolios. It does not indicate or represent future performance.
Total Return
Total returns quoted in advertising reflect all aspects of an Investment
Option's return, including the automatic reinvestment by the separate
account of all distributions and any change in the Investment Option's
value over the period. Average annual returns are calculated by determining
the growth or decline in value of a hypothetical historical investment in
the Investment Option over a stated period, and then calculating the
annually compounded percentage rate that would have produced the same
result if the rate of growth or decline in value had been constant over the
period. For example, a cumulative return of 100% over ten years would
produce an average annual return of 7.18%, which is the steady rate that
would equal 100% growth on a compounded basis in ten years. While average
annual returns are a convenient means of comparing investment alternatives,
investors should realize that the Investment Option's performance is not
constant over time, but changes from year to year, and that average annual
returns represent averaged figures as opposed to the actual year-to-year
performance of an Investment Option.
Table 1 shows the average annual total return on a hypothetical investment
in the Investment Options for the last year, from the date that the
Portfolios began operations, and, for Portfolios in existence for five
years or more, for five years, through December 31, 199 5 . The
returns reflect the risk and administrative charge (1% on an annual basis).
Table 1: Average Annual Total Return for Period Ending on 12/31/9 5 .
Investment Option Start Date One Year Five Years Life of Fund
Asset Manager 9/6/89 15.79% 11.64% 10.14%
Money Market 4/1/82 4.82% 3.62% 5.03%
Investment Grade
Bond 12/5/88 16.15% 8.17% 7.85%
Equity-Income 10/9/86 33.75% 20.13% 12.21%
Growth 10/9/86 34.02% 19.58% 13.69%
High Income 9/19/85 19.40% 17.78% 10.36%
Overseas 1/28/87 8.58% 7.06% 6.24%
Index 500 8/27/92 35.82% N/A 14.33%
In addition to average annual returns, the Investment Options may quote
unaveraged or cumulative total returns reflecting the simple change in
value of an investment over a stated period. Table 2 shows the cumulative
total return on a hypothetical investment in the Investment Options from
the date the Portfolios began operations through December 31, 199 5 .
The returns reflect the risk and administrative charge (1% on an annual
basis).
Table 2: Cumulative Total Return for Period Ending on 12/31/9 5 .
Investment Option Start Date One Year Five Years Life of Fund
Asset Manager 9/6/89 15.79% 73.38% 84.08%
Money Market 4/1/82 4.82% 19.44% 63.33%*
Investment Grade
Bond 12/5/88 16.15% 48.06% 70.58%
Equity-Income 10/9/86 33.75% 150.04% 189.59%
Growth 10/9/86 34.02% 144.42% 226.81%
High Income 9/19/85 19.40% 126.53% 168.03%
Overseas 1/28/87 8.58% 40.63% 71.60%
Index 500 8/27/92 35.82% N/A 56.39%
* 10 Years
YIELDS
Some Investment Options may also advertise yields. Yields quoted in
advertising reflect the change in value of a hypothetical investment in the
Investment Option over a stated period of time, not taking into account
capital gains or losses. Yields are annualized and stated as a percentage.
Yields quoted in advertising may be based on historical seven day periods.
Current yield for the Money Market Investment Option reflects the income
generated by the Investment Option over a 7 day period. Current yield is
calculated by determining the change (net of management fees and the 1%
insurance charge) of a hypothetical account containing one share of the
underlying Portfolio exclusive of capital changes. This change is divided
by the value of the account at the beginning of the base period to obtain
the base period return. This base period return is annualized by
multiplying by (365/7). The resulting yield figure is carried to the
nearest hundredth of a percent. Effective yield is obtained by compounding
the base period return over a one year period. Since the reinvestment of
income is assumed in the calculation of the effective yield, it will
generally be higher than the current yield. For the 7 day period ending on
12/31/9 5 , the Money Market Investment Option had a current yield of
4. 50 % and an effective yield of 4. 61 %.
A 30 day yield for bond Investment Options reflects the income generated by
an Investment Option over a 30 day period. Current yield is calculated by
determining the interest income (net of management fees and the 1%
insurance charge) of a hypothetical account containing one share exclusive
of capital changes. Yield will be computed by dividing the net interest
income during the period by the value of the hypothetical account at the
end of the period. Income is calculated for purposes of yield quotations in
accordance with standardized methods applicable to all bond funds. In
general, interest income is reduced with respect to bonds trading at a
premium over their par value by subtracting a portion of premium from
income on a daily basis and is increased with respect to bonds trading at a
discount by adding a portion of the discount to daily income. Capital gains
and losses are generally excluded from the calculation. The 30 day yield
for the period ending on 12/31/9 5 was 4.50 % for the
Investment Grade Bond Investment Option and 8.12 % for the High
Income Investment Option.
ANNUITY INCOME
Periodic annuity income amounts may be illustrated using the historical
performance of the Investment Options, the Standard & Poor's 500 Composite
Stock Price Index or other recognized investment benchmark portfolios. All
illustrations will reflect the 1% annual annuity charge and actual or
assumed Portfolio expenses.
SAFEKEEPING OF VARIABLE ACCOUNT ASSETS
The assets of the Variable Account are held by FILI. The assets of the
Variable Account are held apart from our general account assets and any
other separate accounts we may establish. We maintain records of all
purchases and redemptions of the shares of the Funds held by the variable
Investment Options. We maintain fidelity bond coverage for the acts of our
officers and employees.
DISTRIBUTION OF THE CONTRACTS
As explained in the prospectus, the Contracts are distributed through
Fidelity Brokerage Services, Inc. and Fidelity Insurance Agency, Inc.,
which are affiliated with FMR Corp. and FILI. The offering of the contracts
is continuous, and we do not anticipate discontinuing offering the
Contracts. However, we reserve the right to discontinue offering the
contracts.
STATE REGULATION
FILI is subject to regulation by the Department of Insurance of the State
of Utah, which periodically examines our financial condition and
operations. We are also subject to the insurance laws and regulations of
all jurisdictions where we do business. The Contract described in the
Prospectus and Statement of Additional Information has been filed with and,
where required, approved by, insurance officials in those jurisdictions
where it is sold.
We are required to submit annual statements of our operations, including
financial statements, to the insurance departments of the various
jurisdictions where we do business to determine solvency and compliance
with applicable insurance laws and regulations.
LEGAL MATTERS
The legal validity of the Contracts described in the Prospectus and
Statement of Additional Information has been passed on by David J.
Pearlman, Senior Legal Counsel of Fidelity Investment Life Insurance
Company. Jorden Burt Berenson & Johnson LLP of Washington, D.C.
has passed on matters relating to federal securities laws.
REGISTRATION STATEMENT
We have filed a Registration Statement under the Securities Act of 1933
with the SEC relating to the Contracts. The Prospectus and Statement of
Additional Information do not include all the information in the
Registration Statement. We have omitted certain portions pursuant to SEC
rules. You may obtain the omitted information from the SEC's main office in
Washington, D.C. by paying the SEC's prescribed fees.
INDEPENDENT ACCOUNTANTS
The consolidated statements of financial condition of
Fidelity Investments Life Insurance Company as of December 31, 199 5
and 199 4, and the related consolidated statements of income,
stockholder's equity, and cash flows for each of the three years in the
period ended December 31, 199 5 , and the statement of assets and
liabilities of the Fidelity Investments Variable Annuity Account I as of
December 31, 199 5 , and the related statements of operations and
changes in net assets for the years ended December 31, 199 5 and
199 4 included in this registration statement have been included
herein in reliance on the reports of Coopers & Lybrand L.L.P., independent
accountants, on the authority of that firm as experts in accounting and
auditing.
FINANCIAL STATEMENTS
The financial statements of FILI included herein should be distinguished
from the financial statements of the Variable Account and should be
considered only as bearing upon our ability to meet our obligations under
the Contracts.
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
___________________________________
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 199 5 , 199 4 AND 199 3
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholder of Fidelity Investments Life
Insurance Company:
We have audited the accompanying consolidated statements of financial
condition of Fidelity Investments Life Insurance Company (a
wholly - owned subsidiary of FMR Corp.) as of December 31, 199 5
and 199 4 , and the related consolidated statements of income,
stockholder's equity, and cash flows for each of the three years in the
period ended December 31, 199 5 . 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 in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the consolidated financial condition of Fidelity
Investments Life Insurance Company as of December 31, 199 5 and
199 4 , and the consolidated results of its operations and its cash
flows for each of the three years in the period ended December 31,
199 5 in conformity with generally accepted accounting principles.
Boston, Massachusetts
January 2 6 , 199 6 COOPERS & LYBRAND L.L.P.
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF FMR CORP.)
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 1995 AND 1994
ASSETS 1995 1994
Debt securities $ 159,755,595 $ 121,988,934
available-for-sale
Policy loans 114,595 138,058
Total investments 159,870,190 122,126,992
Cash and cash 2,298,255 2,671,459
equivalents
Accrued investment 2,604,761 2,081,817
income
Deferred policy 13,240,829 10,431,547
acquisition costs
Goodwill, net of 3,628,900 3,742,420
accumulated
amortization of
$1,157,808 in 1995
and $1,044,288 in
1994
Other assets 608,621 353,283
Deferred taxes 7,940,026 7,498,245
Separate account 4,485,145,40 2,972,641,92
assets 9 1
Total assets $ 4,675,336,9 $ 3,121,547,6
91 84
LIABILITIES
Future contract and $ 71,535,637 $ 56,132,257
policy benefits
Payable to affiliates 2,894,161 842,066
Other liabilities and 3,420,811 1,124,740
accrued expenses
Federal income taxes 527,311 809,222
payable
Separate account 4,480,757,96 2,969,840,18
liabilities 3 4
Total liabilities 4,559,135,88 3,028,748,46
3 9
Commitments and
contingencies (Note
7)
STOCKHOLDER'S
EQUITY
Common stock, par 3,000,000 3,000,000
value $10 per share -
authorized,
1,000,000 shares;
issued and
outstanding,
300,000 shares
Additional paid-in 68,048,088 68,048,088
capital
Unrealized gain (loss) 2,364,688 (2,689,787)
on securities
available-for-
sale, net of tax
Retained earnings 42,788,332 24,440,914
Total 116,201,108 92,799,215
stockholder's equity
Total liabilities and $ 4,675,336,9 $ 3,121,547,6
stockholder's equity 91 84
See accompanying notes to the consolidated financial statements
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF FMR CORP.)
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
REVENUES 1995 1994 1993
Fees charged to $ 39,171,36 $ 28,423,04 $ 15,447,16
contractholders 0 1 3
Net investment 10,758,217 6,052,171 4,450,771
income
Realized losses, net (14,021) (176,109) (39,719)
Cost sharing and -- -- 2,472,863
miscellaneous
revenue (1)
49,915,556 34,299,103 22,331,078
BENEFITS AND
EXPENSES
Return credited to 4,179,438 2,100,679 1,608,434
contractholders and
other benefits
Underwriting, 16,930,300 11,958,754 10,625,888
acquisition and
insurance expenses
(1)
Amortization of 113,520 113,520 113,520
goodwill
21,223,258 14,172,953 12,347,842
Income before federal 28,692,298 20,126,150 9,983,236
income tax
Federal income tax 10,344,880 7,016,062 3,521,587
Net income $ 18,347,41 $ 13,110,08 $ 6,461,649
8 8
(1) Includes affiliated party transactions. (Note 5)
See accompanying notes to the consolidated financial statements
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF FMR CORP.)
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Common Additional Unrealized Retained Total
stock paid-in gain (loss) on earnings stockholder's
capital securities equity
available-for-
sale
Balance at $ 3,000,00 $ 42,048,08 $ -- $ 4,869,17 $ 49,917,265
January 1, 0 8 7
1993
Net income 6,461,649 6,461,649
Capital 18,000,000 18,000,000
contribution
from parent
Balance at 3,000,000 60,048,088 0 11,330,826 74,378,914
December
31, 1993
Adjustment (990,956) (990,956)
to
beginning
balance for
change in
accounting
principle,
net of tax
benefit of
$533,602
Net income 13,110,088 13,110,088
Capital 8,000,000 8,000,000
contribution
from parent
Change in (1,698,831 (1,698,831)
unrealized )
gain (loss),
net of tax
benefit of
$594,591
Balance at 3,000,000 68,048,088 (2,689,787 24,440,91 92,799,215
December ) 4
31, 1994
Net income 18,347,41 18,347,418
8
Change in 5,054,475 5,054,475
unrealized
gain (loss),
net of tax
of
$2,721,642
Balance at $ 3,000,00 $ 68,048,08 $ 2,364,68 $ 42,788,33 $ 116,201,108
December 0 8 8 2
31, 1995
</TABLE>
See accompanying notes to the consolidated financial statements
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF FMR CORP.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1995 1994 1993
Cash flows from
operating activities:
Net income $ 18,347,418 $ 13,110,088 $ 6,461,649
Adjustments to
reconcile net income to
net
cash provided by (used
in) operating activities:
Amortization of bond 1,118,451 1,358,067 1,101,600
discount and
premium
Realized loss on 14,021 176,109 39,719
investments
Amortization of 113,520 113,520 113,520
goodwill
Depreciation and 847,767 763,484 475,062
amortization
Increase in future 1,875,338 1,930,775 1,441,368
contract and
policy benefits
Changes in assets and
liabilities:
Deferred policy (3,380,870) (3,578,600) (4,671,454)
acquisition costs
Deferred taxes (3,238,592) (2,179,003) (1,918,693)
Accrued investment (522,944) (798,721) (338,433)
income
Amounts due (from) to (1,585,709) 389,538 (1,850,599)
separate
accounts
Other liabilities and 4,141,424 1,864,380 (1,621,763)
amounts due ( to )
from affiliates
Net cash provided by 17,729,824 13,149,637 (768,024)
(used in)
operating activities
Cash flows from
investing activities:
Purchase of (49,253,987) (71,233,114) (32,046,597)
investments
Proceeds from 18,130,971 24,136,007 8,161,730
investments sold
Increase in other (508,054) (87,246) (374,942)
assets
Additions to separate (785,157,232 (868,356,472 (1,021,822,031
accounts ) ) )
Net change in -- -- 3,329,185
short-term investments
Net cash used in (816,788,302 (915,540,825 (1,042,752,655
investing activities ) ) )
Cash flows from
financing activities:
Considerations and 908,482,198 952,425,197 1,051,127,59
deposits on variable 3
annuity products
Payments to (109,796,924 (60,291,338) (22,899,307)
contractholders )
Capital contribution -- 8,000,000 18,000,000
from parent
Net cash provided by 798,685,274 900,133,859 1,046,228,28
financing activities 6
Net (decrease) increase (373,204) (2,257,329) 2,707,607
in cash and cash
equivalents
Cash and cash
equivalents:
Beginning of year 2,671,459 4,928,788 2,221,181
End of year $ 2,298,255 $ 2,671,459 $ 4,928,788
</TABLE>
See accompanying notes to the consolidated financial statements
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF FMR CORP.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying consolidated financial statements of Fidelity Investments
Life Insurance Company ("the Company") have been prepared on the basis of
generally accepted accounting principles ("GAAP"), which vary in certain
respects from reporting practices prescribed by state insurance regulatory
authorities (Note 4).
The consolidated financial statements include the accounts of Fidelity
Investments Life Insurance Company (FILI), a Utah domiciled insurance
company, and Empire Fidelity Investments Life Insurance Company (EFILI), a
wholly-owned insurance company operating exclusively in the S tate of
New York. All intercompany accounts have been eliminated in consolidation.
The Company issues variable deferred and immediate annuity contracts and
is licensed in all states. Amounts invested in the fixed option of the
contracts are allocated to the General Account of the Company. Amounts
invested in the variable option of the contracts are allocated to the
Variable Annuity Account, a separate account of the Company. Amounts
invested in the variable life policies are allocated to the Variable Life
Account , also a separate account of the Company . The assets of the
Variable Annuity and Life Accounts are invested in the portfolios of the
Variable Insurance Products Fund and the Variable Insurance Products Fund
II and are reported at the net asset value of such portfolios.
The use of estimates and assumptions is inherent in the preparation of
financial statements in conformity with GAAP. Actual results could differ
from those estimates.
INVESTMENTS
Investments in debt securities available-for-sale are reported at fair
value. Fair values are derived from external market quotations. Unrealized
gains or losses on these debt securities are excluded from earnings and
reported as a separate component of stockholder's equity, net of taxes,
until realized.
The discount or premium on debt securities is amortized using the interest
method. Loan-backed and structured securities are amortized including
anticipated prepayments at the date of purchase.
Policy loans are carried at outstanding principal balances, not in excess
of policy cash surrender value. These loans are an integral part of the
insurance products and have no maturity dates. Consequently, it is
impractical to determine the market value of policy loans.
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF FMR CORP.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
INVESTMENTS (CONTINUED)
Investment income is recognized on the accrual basis. Realized gains or
losses on investments sold are determined on the basis of the specific
identification method. Unrealized gains or losses on the Company's funds
retained in the separate accounts are reflected in income.
In May 1993, the Financial Accounting Standard Board issued Statement of
Financial Accounting Standards No. 115, "Accounting for Certain Investments
in Debt and Equity Securities" (SFAS 115). The Company adopted the
provisions of the statement on January 1, 1994. SFAS 115 requires that
investments in debt securities be classified into three categories and
carried at fair value if they are not classified as held to maturity. The
Company classifies all its debt securities as available-for-sale. In
accordance with SFAS 115, prior period financial statements have not been
restated to reflect the change in accounting principle. The cumulative
effect , as of January 1, 1994, of adopting SFAS 115 was not
material to the financial statements.
CASH EQUIVALENTS
The Company considers all highly liquid debt instruments purchased with an
original maturity date of three months or less to be cash equivalents. Cash
equivalents are stated at cost which approximates market.
SEPARATE ACCOUNTS
Separate account assets represent managed funds held for the benefit of
the variable annuity and variable life insurance contractholders and are
reported at fair value. Since the contractholders receive the full benefit
and bear the full risk of the separate account investments, the investment
results of the separate accounts are reflected in the liabilities related
to separate accounts. The excess of the separate account assets over
separate account liabilities represents funds of the Company retained in
the separate accounts.
FUTURE CONTRACT AND POLICY BENEFITS AND FEES CHARGED TO CONTRACTHOLDERS
Future contract and policy benefits represent the reserve liability which
approximates the contractholder's account balance. Fees charged to
contractholders include the cost of providing insurance protection for
variable life contractholders, mortality and expense risk charges,
surrender charges and an annual administrative charge for variable annuity
contractholders.
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF FMR CORP.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES (continued)
DEFERRED POLICY ACQUISITION COSTS
The costs of acquiring new business, principally first-year commissions
and certain expenses of policy issue and underwriting, all of which vary
with and are related to the production of new business, have been deferred.
These acquisition costs are being amortized in proportion to the present
value of expected future gross profits from interest margins, mortality and
other elements of performance under the contracts.
INCOME TAXES
In February 1992, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 109 "Accounting for Income
Taxes" (SFAS 109). The Company adopted the provisions of this new standard
in its financial statements for the year ended December 31, 1993 (Note 3).
Under SFAS 109, the liability method is used in accounting for income
taxes. Under this method, deferred tax assets and liabilities are
determined based on differences between financial reporting and tax bases
of assets and liabilities and are measured using the enacted tax rates and
laws that will be in effect when the differences are expected to reverse.
The cumulative impact of this change was not material to the consolidated
financial statements.
GOODWILL
Goodwill, representing the excess of FMR Corp.'s cost over the net assets
of the Company at the date of acquisition, has been reflected in these
financial statements net of certain identifiable tax benefits realized and
is being amortized on a straight - line basis over 40 years.
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF FMR CORP.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2. INVESTMENTS
The components of net investment income are as follows:
Years ended December 31,
1995 1994 1993
Debt $ 9,762,049 $ 5,956,902 $ 4,109,816
securities
Short-term 459,245 453,138 167,374
investments
and
cash
equivalents
Policy loans 8,288 9,329 10,030
Investment in 1,002,072 15,890 416,681
separate
accounts
Total 11,231,654 6,435,259 4,703,901
investment
income
Investment 473,437 383,088 253,130
expenses
Net $ 10,758,217 $ 6,052,171 $ 4,450,771
investment
income
Gross realized gains and losses from sales of debt securities were as
follows:
Years ended December 31,
1995 1994 1993
Gross $ 4,605 $ 462 $ 45,861
realized gains
Gross $ 18,626 $ 176,571 $ 85,580
realized
losses
Gross unrealized appreciation (depreciation) for debt securities by type
of issuer were as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
December 31, 1995
Amortized Gross Gross Fair
cost unrealized unrealized value
gains losses
U.S. Treasury $ 24,297,882 $ 834,737 $ -- $ 25,132,619
securities and
obligations of
U.S.
government
corporations
and agencies
Debt 690,789 10,851 -- 701,640
securities
issued by
foreign
governments
Corporate 131,128,941 2,822,734 (30,339) 133,921,336
securities
Totals $ 156,117,61 $ 3,668,32 $ (30,339) $ 159,755,59
2 2 5
</TABLE>
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF FMR CORP.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2. INVESTMENTS (continued)
December 31, 199 4
Amortized Gross Gross Fair
cost unrealized unrealized value
gains losses
U.S. Treasury $ 24,292,963 $ -- $ (876,595) $ 23,416,368
securities
and
obligations of
U.S.
government
corporations
and agencies
Debt 944,440 1,350 (6,583) 939,207
securities
issued by
foreign
governments
Corporate 100,889,665 30,881 (3,287,187) 97,633,359
securities
Totals $ 126,127,06 $ 32,231 $ (4,170,36 $ 121,988,93
8 5) 4
The amortized cost and fair value of debt securities at December 31, 1995,
by contractual maturity, are shown below. Expected maturities may differ
from contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or prepayment penalties.
Amortized Fair
cost value
Due in 1 year $ 39,893,761 $ 40,186,313
or less
Due after 1 99,858,902 102,302,187
year through
5 years
Due after 5 14,255,849 14,860,598
years through
10 years
Due after 10 2,109,100 2,406,497
years
$ 156,117,612 $ 159,755,59
5
All debt securities are investment grade and there are no significant
concentrations by issuer or by industry other than U.S. government
securities.
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF FMR CORP.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
3. INCOME TAXES
Significant components of the provision for income taxes attributable to
operations were as follows:
Years ended December 31,
1995 1994 1993
Current $ 13,508,303 $ 9,106,301 $ 5,440,280
Deferred (3,163,423) (2,090,239) (1,918,693)
Net tax $ 10,344,880 $ 7,016,062 $ 3,521,587
provision
Deferred income taxes reflect the net tax effects of temporary differences
between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes.
Significant components of the Company's deferred tax assets are as follows:
Years ended December 31,
1995 1994
Deferred $ 8,303,903 $ 5,977,348
policy
acquisition
costs
Unrealized (1,273,295) 1,448,347
(gain) loss on
securities
available-for-s
ale
Reserves 1,027,221 46,953
Othe r, net (117,803) 25,597
Total net $ 7,940,026 $ 7,498,245
deferred tax
assets
Management believes that the Company's future and carryback income will be
sufficient to realize the net deferred tax assets.
FILI files a consolidated life insurance return with its subsidiary,
EFILI. Under a tax sharing agreement, each company is charged or credited
its share of taxes as determined on a separate-company basis. FILI paid
federal income taxes of $13,790,214, $8,642,087, and $5,095,000, in 1995,
1994 and 1993, respectively.
The effective tax rates approximate the statutory federal income tax rates
for the years ended 1995, 1994 and 1993.
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF FMR CORP.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
4. STOCKHOLDER'S EQUITY AND DIVIDEND RESTRICTIONS
Generally, the net assets of the Company available for transfer to FMR
Corp. are limited to the excess of FILI's net assets, as determined in
accordance with statutory accounting practices, over minimum statutory
capital requirements; however, payments of such amounts as dividends may be
subject to approval by regulatory authorities.
Net income and capital stock and surplus as determined in accordance with
statutory accounting practices were as follows:
Years ended December 31,
1995 1994 1993
Net income $ 12,651,624 $ 8,587,674 $ 2,680,974
Capital stock $ 86,495,098 $ 74,227,508 $ 58,330,526
and surplus
5. AFFILIATED COMPANY TRANSACTIONS
The Company's insurance contracts are distributed through Fidelity
Brokerage Services, Inc. (FBSI) and Fidelity Insurance Agency, Inc. (FIA),
both of which are affiliated with FMR Corp. FILI and EFILI have entered
into agreements with FIA under which FILI pays FIA first year sales
compensation of $50 a contract and, prior to 1994, renewal sales
compensation of 0.35% of the contract value as of the end of each contract
year. The renewal sales compensation rate was decreased to 0.10% during
1993. EFILI pays FIA first year sales compensation of 3% of payments
received in the first contract year. The Company compensated FIA in the
amount of $6,833,848, $6,044,200, and $8,420,388, in 1995, 1994, and 1993,
respectively.
The Company has entered into administrative service agreements with its
affiliates whereby the Company provides certain administrative and
accounting functions. The Company received $988,878, $730,790, and
$1,075,732, in 1995, 1994, and 1993, respectively, for such services. The
reimbursements are accounted for as a direct reduction of the Company's
expenses.
FMR Corp. maintains a noncontributory trusteed defined benefit pension
plan covering substantially all eligible Company employees. The benefits
earned are based on years of service and the employees' compensation during
the last five years of employment. FMR Corp.'s policy for the plan is to
fund the maximum amount deductible for income tax purposes, and to charge
each subsidiary for its share of such contributions. Pension costs of
$107,143, $81,946, and $53,145, were charged to the Company in 1995, 1994,
and 1993, respectively.
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(A WHOLLY-OWNED SUBSIDIARY OF FMR CORP.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
5. AFFILIATED COMPANY TRANSACTIONS (continued)
FMR Corp. sponsors a trusteed Profit-Sharing Plan and a contributory
401(k) Thrift Plan covering substantially all eligible Company employees.
Payments are made to the trustee by FMR Corp. annually for the
Profit-Sharing Plan and monthly for the 401(k) Thrift Plan. FMR Corp.'s
policy is to fund all costs accrued and to charge each subsidiary for its
share of the cost. The cost charged to the Company for these plans amounted
to $424,336, $330,683, and $227,149, in 1995, 1994, and 1993, respectively.
FILI had a market penetration agreement with Fidelity Management and
Research Company (FMR), an affiliate of FMR Corp., in which FMR compensated
FILI for a portion of FILI's annual operating expenses. Under this
agreement, FMR paid FILI $2,472,863 in 1993. The Agreement was terminated
in 1993.
6. UNDERWRITING, ACQUISITION AND INSURANCE EXPENSES
Underwriting, acquisition and insurance expenses were as follows:
Years ended December 31,
1995 1994 1993
Commissions $ 4,215,653 $ 2,463,918 $ 3,770,114
Taxes, 738,365 1,057,712 740,107
licenses and
fees
Amortization 571,588 382,665 189,625
of deferred
policy
acquisition
costs
General 11,404,694 8,054,459 5,926,042
insurance
expenses
$ 16,930,30 $ 11,958,75 $ 10,625,88
0 4 8
7. COMMITMENTS AND CONTINGENCIES
Reinsurance
FILI reinsures certain of its life contracts risks with other companies.
FILI retains a maximum coverage per individual life of $25,000 plus 30% of
the excess over $25,000; the maximum initial retention not to exceed
$100,000.
In 1994, the Company entered into agreements to reinsure certain guarantee
provisions and mortality losses on its annuity contracts. The Company is
contingently liable for claims reinsured that the assuming company is
unable to pay.
Premiums ceded under these reinsurance contracts for all periods, were
not material to the consolidated financial statements.
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31,
1995
ASSETS
Investments at
Current Market
Value:
Variable Insurance
Products Fund (VIP)
Money Market $ 389,090,566
Portfolio -
389,090,566 shares
(cost
$389,090,566)
High Income 175,690,900
Portfolio -
14,580,158 shares
(cost
$164,501,539)
Equity-Income 1,172,168,564
Portfolio -
60,828,670 shares
(cost
$924,251,496)
Growth Portfolio - 716,086,802
24,523,521 shares
(cost $554,598,145)
Overseas Portfolio 182,902,593
- - 10,727,425 shares
(cost $169,954,198)
Variable Insurance
Products Fund II
(VIP II)
Investment Grade 69,707,228
Bond Portfolio -
5,585,515 shares
(cost
$65,439,944)
Asset Manager 741,051,925
Portfolio -
46,931,724 shares
(cost
$671,552,263)
Index 500 Portfolio 117,640,201
- - 1,553,826 shares
(cost $101,029,768)
Asset Manager 51,107,139
Growth Portfolio -
4,338,467 shares
(cost
$47,893,413)
Contrafund 457,305,867
Portfolio -
33,186,202 shares
(cost
$400,203,737)
Total Assets $ 4,072,751,78
5
LIABILITIES
Total Liabilities 0
NET ASSETS
Variable Annuity $ 4,007,720,67
Contracts 6
Annuity Reserves 61,168,184
Retained in Variable 3,862,925
Account by Fidelity
Investments Life
Insurance Company
Total Net Assets $ 4,072,751,78
5
See accompanying notes which are an integral part of the financial
statements
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
FOR THE PERIODS ENDED DECEMBER 31, 199 5 AND 199 4
SUB-ACCOUNTS INVESTING IN:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP - VIP -
MONEY MARKET HIGH INCOME
12/31/95 12/31/94 12/31/95 12/31/94
INCOME:
Dividends $ 20,938,185 $ 11,686,931 $ 7,310,462 $ 9,735,149
EXPENSES:
Mortality, 3,678,351 2,723,808 1,424,671 991,614
expense
risk and
administrative
charges
Net investment 17,259,834 8,963,123 5,885,791 8,743,535
income (loss)
Realized gain 0 0 3,468,694 854,088
Unrealized 0 0 14,660,109 (12,216,013)
appreciation
(depreciation)
during the year
Net increase 17,259,834 8,963,123 24,014,594 (2,618,390)
(decrease)
in net assets
from
operations
Payments 589,374,914 645,128,307 12,599,198 10,302,633
received
from contract
owners
Transfers (537,429,13 (440,313,06 46,281,625 (7,640,512)
between 7) 8)
subaccounts,
net
Transfers for (22,365,620) (10,448,768) (2,787,385) (1,753,628)
contract
benefits and
terminations
Other transfers (4,245,397) (6,617,738) 197,290 (335,197)
(to) from
Fidelity
Investments
Life
Insurance
Co., net
Net increase in 25,334,760 187,748,733 56,290,728 573,296
net assets
from contract
transactions
Retained in 78,923 83,389 77,233 (66,040)
(returned
from) Variable
Annuity
Account I, net
Total increase 42,673,517 196,795,245 80,382,555 (2,111,134)
(decrease)
in net assets
Net assets at 346,417,049 149,621,804 95,308,345 97,419,479
beginning
of period
Net assets at $ 389,090,56 $ 346,417,04 $ 175,690,90 $ 95,308,34
end 6 9 0 5
of period
</TABLE>
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
FOR THE PERIODS ENDED DECEMBER 31, 199 5 AND 199 4
SUB-ACCOUNTS INVESTING IN: (CONTINUED)
VIP - VIP - VIP -
EQUITY-INCOME GROWTH OVERSEAS
12/31/95 12/31/94 12/31/95 12/31/94 12/31/95 12/31/94
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
$ 54,694,031 $ 31,623,795 $ 2,257,895 $ 17,356,335 $ 1,831,239 $ 927,365
4,897,920 5,588,458 3,309,856 2,035,083 2,337,367
8,919,504
45,774,527 26,725,875 (3,330,563) 14,046,479 (203,844) (1,410,002)
4,662,258 1,613,266 11,540,837 3,529,822 12,959,632 2,699,999
(3,051,717) 132,834,436 (18,591,886) 2,395,325 (3,980,894)
205,095,093
25,287,424 141,044,710 (1,015,585) 15,151,113 (2,690,897)
255,531,878
49,775,058 45,108,759 33,823,761 8,380,232 36,453,091
57,511,018
188,039,121 137,989,441 97,577,220 (86,638,426) 68,743,917
249,610,294
(8,045,269) (12,135,047) (6,747,012) (5,189,348) (4,757,369)
(20,090,771
)
(1,005,641) (60,732) (733,767) (673,124) (321,867)
(533,194
)
228,763,269 170,902,421 123,920,202 (84,120,666) 100,117,772
286,497,347
(35,387) 338,618 38,235 (48,579) 41,762
602,520
254,015,306 312,285,749 122,942,852 (69,018,132) 97,468,637
542,631,745
375,521,513 403,801,053 280,858,201 251,920,725 154,452,088
629,536,819
$ 629,536,81 $ 716,086,80 $ 403,801,05 $ 182,902,59 $ 251,920,72
$ 1,172,168,5 9 2 3 3 5
64
</TABLE>
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
FOR THE PERIODS ENDED DECEMBER 31, 199 5 AND 199 4
SUB-ACCOUNTS INVESTING IN: (CONTINUED)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP II -
INVESTMENT VIP II -
GRADE BOND ASSET MANAGER
12/31/95 12/31/94 12/31/95 12/31/94
INCOME:
Dividends $ 1,682,779 $ 146,009 $ 17,964,093 $ 43,505,789
EXPENSES:
Mortality, 565,912 493,299 7,872,594 9,305,324
expense
risk and
administrative
charges
Net investment 1,116,867 (347,290) 10,091,499 34,200,465
income (loss)
Realized gain 681,765 164,646 35,055,886 8,525,009
Unrealized 6,589,640 (2,318,772) 68,350,367 (111,856,429
appreciation )
(depreciation)
during the year
Net increase 8,388,272 (2,501,416) 113,497,752 (69,130,955)
(decrease)
in net assets
from
operations
Payments 3,797,513 2,843,791 14,616,755 74,008,649
received
from contract
owners
Transfers 12,841,617 (8,909,404) (259,695,78 97,040,979
between 9)
subaccounts,
net
Transfers for (2,353,886) (1,772,096) (27,122,697) (19,839,734)
contract
benefits and
terminations
Other transfers (18,023) (282,453) (4,923,994) (4,640,807)
(to) from
Fidelity
Investments
Life
Insurance
Co., net
Net increase in 14,267,221 (8,120,162) (277,125,72 146,569,087
net assets 5)
from contract
transactions
Retained in 14,585 (84,606) (63,314) (365,925)
(returned
from) Variable
Annuity
Account I, net
Total increase 22,670,078 (10,706,184) (163,691,28 77,072,207
(decrease) 7)
in net assets
Net assets at 47,037,150 57,743,334 904,743,212 827,671,005
beginning
of period
Net assets at $ 69,707,22 $ 47,037,15 $ 741,051,92 $ 904,743,2
end 8 0 5 12
of period
</TABLE>
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
FOR THE PERIODS ENDED DECEMBER 31, 199 5 AND 199 4
SUB-ACCOUNTS INVESTING IN: (CONTINUED)
VIP II -
ASSET
VIP II - MANAGER: VIP II -
INDEX 500 GROWTH CONTRAFU TOTAL
ND
12/31/94 12/31/95* 12/31/95* 12/31/94
12/31/95 12/31/95
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
$ 502,158 $ 31,421 $ 2,142,569 $ 5,839,546 $ 115,162,957 $ 115,012,794
203,190 285,667 2,454,097 33,423,365 24,262,378
599,028
(96,870) (171,769) 1,856,902 3,385,449 81,739,592 90,750,416
1,070,836 122,245 327,488 1,396,988 71,164,384 17,509,075
116,393 3,213,726 57,102,130 506,182,463 (151,899,318
15,941,637 )
66,869 5,398,116 61,884,567 659,086,439 (43,639,827)
16,915,603
2,126,520 7,219,229 66,578,676 814,858,121 854,461,810
9,671,827
5,461,747 38,762,122 330,539,95 0 0
67,738,298 5
(553,236) (419,868) (2,976,326) (97,101,098) (53,917,112)
(1,660,150)
(50,148) 102,104 893,178 (9,136,467) (13,987,618)
125,425
6,984,883 45,663,587 395,035,48 708,620,556 786,557,080
75,875,400 3
(17,417) 45,436 385,817 1,539,692 (405,989)
108,453
7,034,335 51,107,139 457,305,86 1,369,246,68 742,511,264
92,899,456 7 7
17,706,410 0 0 2,703,505,09 1,960,993,83
24,740,745 8 4
$ 24,740,745 $ 51,107,139 $ 457,305,86 $ 4,072,751,78 $ 2,703,505,09
$ 117,640,20 7 5 8
1
</TABLE>
* FOR THE PERIOD JANUARY 3, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 1995.
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIODS ENDED DECEMBER 31, 1995 AND 1994
1. ORGANIZATION
Fidelity Investments Variable Annuity Account I (the Account), a unit
investment trust registered under the Investment Company Act of 1940 as
amended, was established by Fidelity Investments Life Insurance Company
(FILI) on July 22, 1987 and exists in accordance with the regulations of
the Utah Insurance Department. The Account is a funding vehicle for
individual Fidelity Retirement Reserves and Fidelity Income Advantage
variable annuity contracts. FILI is a wholly-owned subsidiary of FMR Corp.
Beginning in 1995, FILI added two new subaccounts to the Account; Asset
Manager: Growth and Contrafund.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments are made in the portfolios of the Variable Insurance Products
Fund and the Variable Insurance Products Fund II and are valued at the
reported net asset values of such portfolios. Transactions are recorded on
the trade date. Income from dividends is recorded on the ex-dividend date.
Realized gains and losses on the sales of investments are computed on the
basis of the identified cost of the investment sold.
In addition to the Account, a contractholder may also allocate funds to the
Fixed Account, which is part of FILI's general account. Because of
exemptive and exclusionary provisions, interests in the Fixed Account have
not been registered under the Securities Act of 1933 and FILI's general
account has not been registered as an investment company under the
Investment Company Act of 1940.
Annuity reserves are computed for contracts in the income stage according
to the 1983a Individual Annuitant Mortality Table. The assumed investment
return is 3.5% unless the annuitant elects otherwise, in which case the
rate may vary from 3.5% to 7%, as regulated by the laws of the respective
states. The mortality risk is fully borne by FILI and may result in
additional amounts being transferred into the Account by FILI.
The operations of the Account are included in the federal income tax return
of FILI, which is taxed as a Life Insurance Company under the provisions of
the Internal Revenue Code (the Code).
3. EXPENSES
FILI deducts a daily charge from the net assets of the Account (equivalent
to an effective annual rate of 1% of net assets) for administrative
expenses and for the assumption of mortality and expense risks. FILI also
deducts an annual maintenance charge of $30 from the Fidelity Retirement
Reserves contract value. The maintenance charge is waived on certain
contracts.
Under the current provisions of the Code, FILI does not expect to incur
federal income taxes on the earnings of the Account to the extent the
earnings are credited under the contracts. FILI incurs federal income taxes
on the difference between the financial statement carrying value of
reserves for contracts in the income stage and those reserves held for
federal income tax purposes. The tax effect of this temporary difference is
expected to be recovered by FILI. As such, no charge is being made
currently to the Account for federal income taxes. FILI will review
periodically the status of such decision based on changes in the tax law.
Such a charge may be made in future years for any federal income taxes that
would be attributable to the contracts.
4. AFFILIATED COMPANY TRANSACTIONS
The contracts are distributed through Fidelity Brokerage Services, Inc.
(FBSI) and Fidelity Insurance Agency, Inc. (FIA), both of which are
affiliated with FMR Corp. FBSI is the distributor and principal underwriter
of the contracts. Fidelity Management & Research Company, an affiliate of
FMR Corp., acts as investment advisor to each portfolio. Fidelity
Investments Institutional Operations Co., an affiliate of FMR Corp., is the
transfer and shareholder servicing agent for the portfolios.
5. PURCHASES AND SALES OF INVESTMENTS
The following table shows aggregate cost of shares purchased and proceeds
from sales of each subaccount for the year ended December 31, 1995:
Purchases Sales
Money Market $ 236,741,106 $ 194,067,589
High Income $ 101,496,876 $ 39,243,123
Equity-Income $ 344,537,096 $ 11,662,701
Growth $ 198,936,009 $ 31,025,534
Overseas $ 10,616,367 $ 94,989,474
Investment Grade $ 26,555,526 $ 11,156,850
Asset Manager $ 18,248,586 $ 285,346,129
Index 500 $ 81,288,083 $ 5,401,100
Asset Manager: $ 51,152,381 $ 3,586,459
Growth
Contrafund $ 404,441,045 $ 5,634,299
6. UNIT VALUES
A summary of changes in accumulation unit values and accumulation units
outstanding for variable annuity contracts at December 31, 1995 and 1994
are as follows:
Beginning Payments
Balance Received
Units from Contract
Owners
JANUARY 1, 1995 TO DECEMBER 31, 1995
Money Market 24,546,739 38,644,291
Subaccount
High Income 5,106,950 605,925
Subaccount
Equity-Income 30,415,281 2,381,915
Subaccount
Growth Subaccount 17,470,386 1,561,974
Overseas Subaccount 14,336,196 467,953
Investment Grade 3,151,087 239,183
Subaccount
Asset Manager 56,621,559 875,715
Subaccount
Index 500 Subaccount 2,102,667 687,171
Asset Manager: Growth 0 646,949
Subaccount*
Contrafund 0 5,345,476
Subaccount*
JANUARY 1, 1994 TO DECEMBER 31,
1994
Money Market 10,961,418 45,986,781
Subaccount
High Income 5,122,946 543,753
Subaccount
Equity-Income 19,318,902 2,475,299
Subaccount
Growth Subaccount 12,073,224 1,498,018
Overseas Subaccount 8,857,429 2,027,482
Investment Grade 3,714,356 189,214
Subaccount
Asset Manager 48,441,225 4,435,210
Subaccount
Index 500 Subaccount 1,509,615 186,966
6. UNIT VALUES (CONTINUED)
Transfers Contract Units Ending Balance
between Terminatio Unit Value Dollars
Subaccoun ns
ts, Net
Units
(35,319,30 (1,602,881 26,268,846 $14.66 $ 385,129,5
3) ) 03
2,334,094 (249,654 7,797,315 $22.05 171,920,26
) 0
10,482,774 (1,342,848 41,937,122 $27.44 1,150,938,
) 872
4,557,411 (569,902 23,019,869 $30.80 708,919,06
) 6
(4,944,962 (298,811 9,560,376 $19.00 181,618,83
) ) 3
796,388 (193,551 3,993,107 $16.99 67,854,942
)
(15,993,89 (1,681,742 39,821,641 $18.29 728,500,35
1) ) 6
4,837,242 (293,280 7,333,800 $15.54 113,950,09
) 1
3,573,788 (185,303 4,035,434 $12.21 49,254,936
)
27,832,893 (756,423 32,421,946 $13.87 449,633,81
) 7
$ 4,007,720
,676
(31,511,31 (890,145 24,546,739 $13.99 $ 343,347,5
5) ) 46
(428,508 (131,241 5,106,950 $18.47 94,304,578
) )
9,202,615 (581,535 30,415,281 $20.52 624,110,77
) 2
4,281,623 (382,479 17,470,386 $22.98 401,457,00
) 4
3,743,391 (292,108 14,336,196 $17.50 250,816,04
) 0
(615,576 (136,909 3,151,087 $14.63 46,099,576
) )
5,336,152 (1,591,026 56,621,559 $15.80 894,583,89
) 1
474,149 (68,063 2,102,667 $11.44 24,053,586
)
$ 2,678,772
,993
* FOR THE PERIOD JANUARY 3, 1995 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1995.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Contract Owners of Fidelity Investments Variable Annuity Account I:
We have audited the accompanying statement of assets and liabilities of
Fidelity Investments Variable Annuity Account I (comprised of Money Market
Subaccount, High Income Subaccount, Equity-Income Subaccount, Growth
Subaccount, Overseas Subaccount, Investment Grade Bond Subaccount, Asset
Manager Subaccount, Index 500 Subaccount, Asset Manager: Growth Subaccount
and Contrafund Subaccount) of Fidelity Investments Life Insurance Company
as of December 31, 1995, and the related statements of operations and
changes in net assets for each of the periods indicated therein. 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 in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the aforementioned
subaccounts comprising Fidelity Investments Variable Annuity Account I of
Fidelity Investments Life Insurance Company as of December 31, 1995, and
the results of their operations and the changes in their net assets for
each of the periods indicated therein, in conformity with generally
accepted accounting principles.
Boston, Massachusetts
January 26, 1996 COOPERS & LYBRAND L.L.P.
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
a) Financial Statements included in Part B
The following financial statements of Fidelity Investments Variable
Annuity Account I and of Fidelity Investments Life Insurance Company are
filed in Part B.
Statement of Assets and Liabilities for Fidelity Investments Variable
Annuity Account I as of December 31, 1995.
Statements of Operations and Changes in Net Assets for Fidelity
Investments Variable Annuity Account I for Years Ended December 31, 1995
and 1994.
Report of Coopers & Lybrand on the Financial Statements of Fidelity
Investments Variable Annuity Account I.
Balance Sheets of Fidelity Investments Life Insurance Company as of
December 31, 1995 and 1994.
Statements of Income for Fidelity Investments Life Insurance Company for
the Years Ended December 31, 1995, 1994, and 1993.
Statements of Changes in Stockholder's Equity for Fidelity Investments
Life Insurance Company for the Years Ended December 31, 1995, 1994 and
1993.
Statements of Cash Flows for Fidelity Investments Life Insurance Company
for the Years Ended December 31, 1995, 1994 and 1993.
Report of Coopers & Lybrand on Financial Statements of Fidelity
Investments Life Insurance Company.
There are no financial statements included in Part A.
b) Exhibits
(1) Resolution of Board of Directors of Fidelity Investments Life
Insurance Company ("Fidelity Investments Life") establishing the Fidelity
Investments Variable Annuity Account I. (Note 1)
(2) Not Applicable.
(3) (a) Distribution Agreement between Fidelity Investments Life,
Fidelity Insurance Agency and Fidelity Brokerage Services, Inc. (Note 18)
(b) Commission Schedule. (Note 4)
(4) (a) Specimen Variable Annuity Contract. (Note 15)
(c) Endorsement for Qualified Contracts. (Note 16)
(5) (a) Application for Variable Annuity Contract. (Note 15)
(6) (i) Articles of Domestication (Incorporation) of Fidelity
Investments Life. (Note 15)
(ii) Revised Bylaws of Fidelity Investments Life. (Note 16)
(7) Not Applicable.
(8) Not applicable
(9) Opinion and consent of David J. Pearlman, as to the Legality of
securities being issued.
(Note 17).
C-1
(10) Written consent of Coopers & Lybrand. (Note 17)
Written consent of Jorden Burt Berenson & Johnson LLP. (Note 17)
(11) Not Applicable.
(12) Not Applicable.
(13) Not applicable
(14) (a) Form of Participation Agreement between Fidelity Investments
Life and Variable Insurance Products Fund. (Note 2)
(b) Form of Participation Agreement between Fidelity Investments Life
and Variable Insurance Products Fund II. (Note 7)
(15) Powers of Attorney (Note 17)
(Note 1) Incorporated by reference to original Registration Statement on
Form N-4 filed September 2, 1987, Reg. No. 33-16966, on behalf of Fidelity
Investments Variable Annuity Account I.
(Note 2) Incorporated by reference to Registration Statement on Form S-6
filed July 28, 1987, Reg. No. 33-16105, on behalf of Fidelity Investments
Variable Life Account I.
(Note 3) Incorporated by reference to Pre-Effective Amendment No. 1 to
Registration Statement referenced in Note 2, filed November 10, 1987.
(Note 4) Incorporated by reference to Pre-Effective Amendment No. 1 to
Registration Statement referenced in Note 1, filed December 9, 1987.
(Note 5) Incorporated by reference to Post-Effective Amendment No. 1 to
Registration Statement referenced in Note 2, filed March 2, 1988.
(Note 6) Incorporated by reference to Post-Effective Amendment No. 1 to
Registration Statement reference in Note 1, file April 28, 1988.
(Note 7) Incorporated by reference to Registration Statement on Form N-4,
filed September 23, 1988, Reg. No. 33-24400, on behalf of Fidelity
Investments Variable Annuity Account I.
There is no Note 8.
(Note 9) Incorporated by reference to Post-Effective Amendment No. 3 to
Registration Statement referenced in Note 2, filed May 1, 1989.
(Note 10) Incorporated by reference to Post-Effective Amendment No. 3 to
Registration Statement referenced in Note 1, filed March 2, 1990.
(Note 11) Incorporated by reference to Post-Effective Amendment No. 3 to
Registration Statement referenced in Note 7, filed April 26, 1990.
(Note 12) Incorporated by reference to Post-Effective Amendment No. 4 to
Registration Statement referenced in Note 7, filed March 1, 1991.
C-2
(Note 13) Incorporated by reference to Post-Effective Amendment No. 5 to
Registration Statement 33-24400 filed April 29, 1991.
(Note 14) Incorporated by reference to Post-Effective Amendment No. 6 to
Registration Statement 33-24400 filed April 27, 1992.
(Note 15) Incorporated by reference to Registration Statement on Form N-4,
filed November 23, 1992, Reg. No. 33-54926, on behalf of Fidelity
Investments Variable Annuity Account I.
(Note 16) Incorporated by reference to Pre-Effective Amendment No. 1 to
Registration Statement on Form N-4, Reg. No. 33-54926, on behalf of
Fidelity Investments Variable Annuity Account I.
(Note 17) Filed herewith.
(Note 18) Incorporated by reference to Post-Effective Amendment No. 9 to
Registration Statement 33-24400 filed April 21, 1995.
C-3
Item 25. Directors and Officers of the Depositor
The directors and officers of Fidelity Investments Life are as follows:
Directors of Fidelity Investments Life
EDWARD C. JOHNSON 3d, Director and Chairman of the Board
J. GARY BURKHEAD, Director
JAMES C. CURVEY, Director
ROBERT C. POZEN, Director
JOHN J. REMONDI, Director
RODNEY R. ROHDA, Director and Chairman
DENIS M. McCARTHY, Director
Executive Officers Who Are Not Directors
Executive officers of Fidelity Investments Life who are not
directors are as follows:
RICHARD D. JAMEISON, President
JOSEPH L. KURTZER, JR., Treasurer
DAVID J. PEARLMAN, Vice President, Senior Legal Counsel and Secretary
The principal business address of all persons listed in Item 25 is 82
Devonshire Street, Boston, Massachusetts 02109.
C-4
Item 26. Persons Controlled By or Under Common Control with the Depositor
or Registrant.
See Exhibit 26 of the original registration statement on Form N-4 filed
August 17, 1991, Reg. No. 33-42376, on behalf of Empire Fidelity
Investments Variable Annuity Account A, which is incorporated herein by
reference.
Item 27. Number of Contract Owners.
On December 31, 1995, there were 432 of Registrant's Qualified Contracts
and 180 of Registrant's Non-qualified contracts outstanding.
Item 28. Indemnification
FMR Corp. and its subsidiaries own a directors' and officers' liability
reimbursement contract (the "Policy"), issued by National Union Fire
Insurance Company, that provides coverage for "Loss" (as defined in the
Policy) arising from any claim or claims by reason of any breach of duty,
neglect, error, misstatement, misleading statement, omission or other act
done or wrongfully attempted by a person while he or she is acting in his
or her capacity as a director or officer. The coverage is provided to
these insureds, including Fidelity Investments Life, to the extent required
or permitted according to applicable law, common or statutory, or under
their respective charters or by-laws, to indemnify directors or officers
for Loss arising from the above-described matters. Coverage is also
provided to the individual directors or officers for such Loss, for which
they shall not be indemnified, subject to relevant contract exclusions.
Loss is essentially the legal liability on claims against a director or
officer, including damages, judgements, settlements, costs, charges and
expenses (excluding salaries of officers or employees) incurred in the
defense of actions, suits or proceedings and appeals therefrom.
There are a number of exclusions from coverage. Among the matters excluded
are Losses arising as the result of (1) fines or penalties imposed by law
or other matters that may be deemed uninsurable under the law pursuant to
which the Policy is construed, (2) claims brought about or contributed to
by the fraudulent, dishonest, or criminal acts of a director or officer,
(3) any claim made against the directors or officers for violation of any
of the responsibilities, obligations, or duties imposed upon fiduciaries by
the Employee Retirement Income Security Act of 1974 or amendments thereto,
(4) professional errors or omissions, and (5) claims for an accounting of
profits in fact made from the purchase or sale by a director or officer of
any securities of the insured corporations within the meaning of Section
16(b) of the Securities Exchange Act of 1934 and amendments thereto or
similar provisions of any state statutory law.
The limit of coverage of the Policy is $10 million, as an annual aggregate
limit, with 95% co-insurance for the first $1 million of coverage, and with
a deductible of $500,000 in the event that Fidelity Investments Life
indemnifies the director or officer, or a deductible of $5,000 per
individual director or officer (with a maximum aggregate per loss
deductible of $25,000) if Fidelity Investments Life does not indemnify the
director or officer.
Utah Revised Business Corporation Act Section 16-10a-902 et seq. provides,
in part, that a corporation may indemnify a director, officer, employee or
agent against liability if he acted in good faith and in a manner he
reasonably believed to be in, or not opposed to, the best interest of the
corporation, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful.
The Text of Article XIV of FILI's By-Laws, which relates to indemnification
of the directors and officers, is as follows:
C-5
INDEMNIFICATION OF DIRECTORS, OFFICERS AND PERSONS
ADMINISTERING EMPLOYEE BENEFIT PLANS
Each officer or Director or former officer or Director of the Corporation,
and each person who shall, at the Corporation's request, have served as an
officer or director of another corporation or as trustee, partner or
officer of a trust, partnership or association, and each person who shall,
at the Corporation's request, have served in any capacity with respect to
any employee benefit plan, whether or not then in office then serving with
respect to such employee benefit plan, and the heirs, executors,
administrators, successors and assigns of each of them, shall be
indemnified by the Corporation against all satisfaction of judgements, in
compromise and or as fines or penalties and fees and disbursement of
counsel, imposed upon or reasonably incurred by him or them in connection
with or arising out of any action, suit or proceeding, by reason of his
being or having been such officer, trustee, partner or director, or by
reason of any alleged act or omission by him in such capacity or in serving
with respect to an employee benefit plan, including the cost of reasonable
settlements (other than amounts paid to the Corporation itself) made with a
view to curtailment of costs of litigation.
The Corporation shall not, however, indemnify any such person, or his
heirs, executors, administrators, successors, or assigns, with respect to
any matter as to which his conduct shall be finally adjudged in any such
action, suit, or proceedings to constitute willful misconduct or
recklessness or to the extent that such matter relates to service with
respect to any employee benefit plan, to not be in the best interest of the
participants or beneficiaries of such employee benefit plan.
Such indemnification may include payment by the Corporation of expenses
incurred in defending any such action, suit, or proceeding in advance of
the final disposition thereof, upon receipt of an undertaking by or on
behalf of the person indemnified to repay such payment if it shall
ultimately be determined that he is not entitled to be indemnified by the
Corporation. Such undertaking may be accepted by the corporation without
reference to the financial ability of such person to make repayment.
The foregoing rights of indemnification shall not be exclusive of other
rights to which any such director, officer, trustee, partner or person
serving with respect to an employee benefit plan may be entitled as a
matter of law. These indemnity provisions shall be separable, and if any
portion thereof shall be finally adjudged to be invalid, such invalidity
shall not affect any other portion which can be given effect.
The Board of Directors may purchase and maintain insurance on behalf of any
persons who is or was a Director, officer, trustee, partner, employee or
other agent of the Corporation, or is or was serving at the request of the
Corporation as a director, officer, trustee, partner, employee or other
agent of another corporation, association, trust or partnership, against
any liability incurred by him in any such, whether or not the Corporation
would have the power to indemnify him against such liability.
Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to directors, officers, and controlling persons of
the Registrant pursuant to the foregoing provisions, or otherwise, the
Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment
by the Registrant of expenses incurred or paid by a director or officer, or
controlling persons 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 its is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
C-6
Item 29. Principal Underwriters.
(a) Fidelity Brokerage Services, Inc. acts as distributor for other
variable life and variable annuity contracts registered by separate
accounts of Fidelity Investments Life, Empire Fidelity Investments Life
Insurance Company, Monarch Life Insurance Company, and PFL Life Insurance
Company.
(b)
Name and Principal Positions and Offices with Underwriter
Business Address
Roger T. Servison Director
Steven Akin Director and President
Rodney Rohda Director
Edward L. McCartney Executive Vice President
Thomas E. Lewis Executive Vice President
Bruce MacAlpine Executive Vice President
Shaugn S. Stanley Treasurer and Chief Financial Officer
Jeffrey R. Larsen Legal Counsel & Clerk
Linda Holland Compliance Officer
(c) Commissions and other compensation received by principal underwriter.
See Item 24 (b)(3)(b). No compensation was received by the principal
underwriter from the registrant or depositor during the registrant's or
depositor's last fiscal year.
The address for each person named in Item 29 is 82 Devonshire Street,
Boston, Massachusetts 02109.
Item 30. Location of Accounts and Records
The records regarding the Account required to be maintained by Section
31(a) of the Investment Company Act of 1940, and Rules 31a-1 to 31a-3
promulgated thereunder, are maintained at Fidelity Investments Life
Insurance Company at 82 Devonshire Street, Boston, Massachusetts 02109.
C-7
Item 31. Management Service
Not applicable.
Item 32. Undertakings
(a) Registrant undertakes to file a post-effective amendment to this
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 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 postcard 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 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.
(d) Registrant represents that it meets the definition of a "separate
account" under the federal
securities laws.
C-8
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act
of 1940, the Registrant, Fidelity Investments Variable Annuity Account I,
certifies that it meets the requirements of the Securities Act Rule 485(b)
for effectiveness of this Registration Statement and has caused this
Post-Effective Amendment No. 3 to the Registration Statement to be signed
on its behalf in the city of Boston and the Commonwealth of Massachusetts,
on this 24th day of April, 1996.
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
(Registrant)
By: FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(Depositor)
By: _________________________ Attest:_____________________
Rodney R. Rohda, Chairman and David J. Pearlman,
Chief Executive Officer Secretary
As required by the Securities Act of 1933, this Post-Effective Amendment
No. 3 to the Registration Statement has been signed below by the following
persons in the capacities indicated on this 24th day of April, 1996.
Signature Title
_________________ Chairman and Director )
Rodney R. Rohda (Chief Executive Officer) )
)
_________________ )
Joseph L. Kurtzer Jr. Treasurer )
)
________________ )
Edward C. Johnson 3d Director )
)
________________ Director )
J. Gary Burkhead ) By: _______________
) David J. Pearlman
_________________ Director ) (Attorney-in-Fact)
James C. Curvey )
)
_________________ Director )
John J. Remondi )
)
_________________ Director )
Robert C. Pozen )
)
_________________ Director )
Denis M. McCarthy )
)
C-9
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act
of 1940, the Registrant, Fidelity Investments Variable Annuity Account I,
certifies that it meets the requirements of the Securities Act Rule 485(b)
for effectiveness of this Registration Statement and has caused this
Post-Effective Amendment No. 3 to the Registration Statement to be signed
on its behalf in the city of Boston and the Commonwealth of Massachusetts,
on this 24th day of April, 1996.
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
(Registrant)
By: FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
(Depositor)
By: \s\Rodney R. Rohda Attest:_\s\ David J. Pearlman
Rodney R. Rohda, Chairman and David J. Pearlman,
Chief Executive Officer Secretary
As required by the Securities Act of 1933, this Post-Effective Amendment
No.10 to the Registration Statement has been signed below by the following
persons in the capacities indicated on this 24th day of April, 1996.
Signature Title
_________________ Chairman and Director )
Rodney R. Rohda (Chief Executive Officer) )
)
_________________ )
Joseph L. Kurtzer Jr. Treasurer )
)
________________ )
Edward C. Johnson 3d Director )
)
)
________________ Director )
J. Gary Burkhead ) By: \s\ David J. Pearlman
) David J. Pearlman
_________________ Director ) (Attorney-in-Fact)
James C. Curvey )
)
_________________ Director )
John J. Remondi )
)
_________________ Director )
Robert C. Pozen )
)
_________________ Director )
Denis M. McCarthy )
C-9
EXHIBIT INDEX
Exhibit Sequential Page Number
(9) Opinion and consent of David J. Pearlman,
as to the legality of securities being issued. C-10
(10)(a) Written consent of Coopers & Lybrand., C-11
(10)(b) Written consent of Jorden Burt Berenson & Johnson LLP. C-12
POWER OF ATTORNEY
I, the undersigned Director of Fidelity Investments Life Insurance Company
(the "Company"), hereby constitute and appoint David J. Pearlman, my true
and lawful attorney-in-fact, with full power of substitution, to sign for
me and in my name in the appropriate capacities, all initial Registration
Statements of the Company, all Pre-Effective Amendments to any Registration
Statements, any and all subsequent Post-Effective Amendments to said
Registration Statements, and any supplements or other instruments in
connection therewith, and generally to do all such things in my name and
behalf in connection therewith as said attorney-in-fact deem necessary or
appropriate, to comply with the provisions of the Securities Act of 1933
and Investment Company Act of 1940, and all related requirements of the
Securities and Exchange Commission, hereby ratifying and confirming all
that said attorney-in-fact or his substitutes may do or cause to be done by
virtue hereof.
Signature Date
\s\ Edward C. Johnson 3d April 4, 1996
Edward C. Johnson 3d
Expires: December 31, 1996
POWER OF ATTORNEY
I, the undersigned Director of Fidelity Investments Life Insurance Company
(the "Company"), hereby constitute and appoint David J. Pearlman, my true
and lawful attorney-in-fact, with full power of substitution, to sign for
me and in my name in the appropriate capacities, all initial Registration
Statements of the Company, all Pre-Effective Amendments to any Registration
Statements, any and all subsequent Post-Effective Amendments to said
Registration Statements, and any supplements or other instruments in
connection therewith, and generally to do all such things in my name and
behalf in connection therewith as said attorney-in-fact deem necessary or
appropriate, to comply with the provisions of the Securities Act of 1933
and Investment Company Act of 1940, and all related requirements of the
Securities and Exchange Commission, hereby ratifying and confirming all
that said attorney-in-fact or his substitutes may do or cause to be done by
virtue hereof.
Signature Date
\s\ J. Gary Burkhead April 4, 1996
J. Gary Burkhead
POWER OF ATTORNEY
I, the undersigned Director of Fidelity Investments Life Insurance Company
(the "Company"), hereby constitute and appoint David J. Pearlman, my true
and lawful attorney-in-fact, with full power of substitution, to sign for
me and in my name in the appropriate capacities, all initial Registration
Statements of the Company, all Pre-Effective Amendments to any Registration
Statements, any and all subsequent Post-Effective Amendments to said
Registration Statements, and any supplements or other instruments in
connection therewith, and generally to do all such things in my name and
behalf in connection therewith as said attorney-in-fact deem necessary or
appropriate, to comply with the provisions of the Securities Act of 1933
and Investment Company Act of 1940, and all related requirements of the
Securities and Exchange Commission, hereby ratifying and confirming all
that said attorney-in-fact or his substitutes may do or cause to be done by
virtue hereof.
Signature Date
\s\ James C. Curvey April 4, 1996
James C. Curvey
POWER OF ATTORNEY
I, the undersigned Director of Fidelity Investments Life Insurance Company
(the "Company"), hereby constitute and appoint David J. Pearlman, my true
and lawful attorney-in-fact, with full power of substitution, to sign for
me and in my name in the appropriate capacities, all initial Registration
Statements of the Company, all Pre-Effective Amendments to any Registration
Statements, any and all subsequent Post-Effective Amendments to said
Registration Statements, and any supplements or other instruments in
connection therewith, and generally to do all such things in my name and
behalf in connection therewith as said attorney-in-fact deem necessary or
appropriate, to comply with the provisions of the Securities Act of 1933
and Investment Company Act of 1940, and all related requirements of the
Securities and Exchange Commission, hereby ratifying and confirming all
that said attorney-in-fact or his substitutes may do or cause to be done by
virtue hereof.
Signature Date
\s\ John J. Remondi April 4, 1996
John J. Remondi
POWER OF ATTORNEY
I, the undersigned Director of Fidelity Investments Life Insurance Company
(the "Company"), hereby constitute and appoint David J. Pearlman, my true
and lawful attorney-in-fact, with full power of substitution, to sign for
me and in my name in the appropriate capacities, all initial Registration
Statements of the Company, all Pre-Effective Amendments to any Registration
Statements, any and all subsequent Post-Effective Amendments to said
Registration Statements, and any supplements or other instruments in
connection therewith, and generally to do all such things in my name and
behalf in connection therewith as said attorney-in-fact deem necessary or
appropriate, to comply with the provisions of the Securities Act of 1933
and Investment Company Act of 1940, and all related requirements of the
Securities and Exchange Commission, hereby ratifying and confirming all
that said attorney-in-fact or his substitutes may do or cause to be done by
virtue hereof.
Signature Date
\s\ Rodney R. Rohda April 4, 1996
Rodney R. Rohda
POWER OF ATTORNEY
I, the undersigned Director of Fidelity Investments Life Insurance Company
(the "Company"), hereby constitute and appoint David J. Pearlman, my true
and lawful attorney-in-fact, with full power of substitution, to sign for
me and in my name in the appropriate capacities, all initial Registration
Statements of the Company, all Pre-Effective Amendments to any Registration
Statements, any and all subsequent Post-Effective Amendments to said
Registration Statements, and any supplements or other instruments in
connection therewith, and generally to do all such things in my name and
behalf in connection therewith as said attorney-in-fact deem necessary or
appropriate, to comply with the provisions of the Securities Act of 1933
and Investment Company Act of 1940, and all related requirements of the
Securities and Exchange Commission, hereby ratifying and confirming all
that said attorney-in-fact or his substitutes may do or cause to be done by
virtue hereof.
Signature Date
\s\ Robert C. Pozen April 4, 1996
Robert C. Pozen
POWER OF ATTORNEY
I, the undersigned Director of Fidelity Investments Life Insurance Company
(the "Company"), hereby constitute and appoint David J. Pearlman, my true
and lawful attorney-in-fact, with full power of substitution, to sign for
me and in my name in the appropriate capacities, all initial Registration
Statements of the Company, all Pre-Effective Amendments to any Registration
Statements, any and all subsequent Post-Effective Amendments to said
Registration Statements, and any supplements or other instruments in
connection therewith, and generally to do all such things in my name and
behalf in connection therewith as said attorney-in-fact deem necessary or
appropriate, to comply with the provisions of the Securities Act of 1933
and Investment Company Act of 1940, and all related requirements of the
Securities and Exchange Commission, hereby ratifying and confirming all
that said attorney-in-fact or his substitutes may do or cause to be done by
virtue hereof.
Signature Date
\s\ Denis M. McCarthy April 4, 1996
Denis M. McCarthy
POWER OF ATTORNEY
I, the undersigned Treasurer of Fidelity Investments Life Insurance
Company (the "Company"), hereby constitute and appoint David J. Pearlman,
my true and lawful attorney-in-fact, with full power of substitution, to
sign for me and in my name in the appropriate capacities, all initial
Registration Statements of the Company, all Pre-Effective Amendments to any
Registration Statements, any and all subsequent Post-Effective Amendments
to said Registration Statements, and any supplements or other instruments
in connection therewith, and generally to do all such things in my name and
behalf in connection therewith as said attorney-in-fact deem necessary or
appropriate, to comply with the provisions of the Securities Act of 1933
and Investment Company Act of 1940, and all related requirements of the
Securities and Exchange Commission, hereby ratifying and confirming all
that said attorney-in-fact or his substitutes may do or cause to be done by
virtue hereof.
Signature Date
\s\ Joseph L. Kurtzer, Jr. April 4, 1996
Joseph L. Kurtzer Jr.
April 24, 1996
Board of Directors
Fidelity Investments Life Insurance Company
82 Devonshire Street
Boston, MA 02109
Ladies and Gentlemen:
In my capacity as Associate General Counsel of FMR Corp., I have provided
legal advice to Fidelity Investments Life Insurance Company ("Fidelity
Life"), with respect to the existence of Fidelity Investments Variable
Annuity Account I (the "Account") pursuant to Section 31A-5-217.5 of the
Utah Insurance Code. The Account was established by Fidelity Life on July
22, 1987 for investment of assets under certain variable annuity contracts
(the "Contracts"). I have participated in the preparation and review of
Post-Effective Amendment No. 3 to the Registration Statement on Form N-4
for the registration of the Contracts with the Securities and Exchange
Commission under the Securities Act of 1933, Reg. No. 33-54926 and the
registration of the Account under the Investment Company Act of 1940.
I am of the following opinion:
(1) Fidelity Life is duly organized and validly existing under the laws of
the State of Utah.
(2) The Account was duly created under the laws of the Commonwealth of
Pennsylvania and validly exists as a separate account of Fidelity Life
under the laws of Utah.
(3) The portion of the assets to be held in the Account equal to the
reserve and other liabilities for variable benefits under the Contracts is
not chargeable with liabilities arising out of any other business Fidelity
Life may conduct.
(4) The Contracts, when issued as set forth in the Registration Statement,
will be legal and binding obligations of Fidelity Life in accordance with
their terms.
In arriving at the foregoing opinion, I have made such examination of law
and examined such records and other documents as I judged to be necessary
or appropriate.
I hereby consent to the filing of this opinion as an Exhibit to the
Registration Statement, and to the reference to my name under the heading
"Legal Matters" in the Statement of Additional Information.
Very truly yours,
David J. Pearlman
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the inclusion in this registration statement on Form N-4
(File No. 33-54926) of our reports dated January 26, 1996, on our audits of
the consolidated financial statements of Fidelity Investments Life
Insurance Company and the financial statements of Fidelity Invesments
Variable Annuity Account I. We also consent to the reference of our Firm
under the caption "Independent Accountants" in the Statement of Additional
Information.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
April 22, 1996
JORDEN BURT BERENSON & JOHNSON LLP
SUITE 400 EAST
1025 THOMAS JEFFERSON STREET, N.W.
WASHINGTON, D.C. 20007-0805
(202) 965-8100
TELECOPIER (202) 965-8104
AFFILIATED COUNSEL:
IN WASHINGTON, D.C.
SUITE 500 JONES & BLOUCH L.L.P.
777 BRICKELL AVENUE
MIAMI, FLORIDA 33131-2803 IN MIAMI, FLORIDA
(305) 371-2600 CANTOR & MORANTE, P.A.
April 12, 1996
Fidelity Investments Life Insurance Company
Fidelity Investments Variable Annuity Account I
82 Devonshire Street
Boston, Massachusetts 02109
Re: Registration No. 33-54926
Ladies and Gentlemen:
We hereby consent to the reference to our name under the caption "Legal
Matters" in the Statement of Additional Information contained in
Post-Effective Amendment No. 3 to the Registration Statement on Form N-4
(File No. 33-54926) for Fidelity Investments Variable Annuity Account I
filed by the Account with the Securities and Exchange Commission pursuant
to the Securities Act of 1933 and the Investment Company Act of 1940.
Very truly yours,
Jorden Burt Berenson & Johnson LLP
By:\s\ Michael Berenson
Michael Berenson
<TABLE> <S> <C>
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<NAME> Fidelity Investments Variable Annuity Account I
<SERIES>
<NUMBER> 1
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<MULTIPLIER> 1,000
<S>
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<FISCAL-YEAR-END> dec-31-1995
<PERIOD-END> dec-31-1995
<INVESTMENTS-AT-COST> 3,488,515
<INVESTMENTS-AT-VALUE> 4,072,752
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<NET-CHANGE-FROM-OPS> 659,086
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