AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 20, 1997
FILE NO. 33-35412
811-06116
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
/X/
POST-EFFECTIVE AMENDMENT NO. 16
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
/X/
AMENDMENT NO. 17
------------------------
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
(Exact Name of Registrant)
NORTHBROOK LIFE INSURANCE COMPANY
(Name of Depositor)
MICHAEL J. VELOTTA
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
NORTHBROOK LIFE INSURANCE COMPANY
3100 SANDERS ROAD
NORTHBROOK, ILLINOIS 60062
847/402-2400
(Name and Complete Address of Agent for Service)
------------------------
COPIES TO:
RICHARD T. CHOI, ESQUIRE CHRISTINE A. EDWARDS, ESQUIRE
FREEDMAN, LEVY, KROLL & SIMONDS DEAN WITTER REYNOLDS INC.
650 CONNECTICUT AVENUE, N.W. TWO WORLD TRADE CENTER
WASHINGTON, D.C. 20006 NEW YORK, NEW YORK 10048
------------------------
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE BOX)
___ immediately upon filing pursuant to paragraph (b) of Rule 485
___ on (date) pursuant to paragraph (b) of Rule 485
_X_ 60 days after filing pursuant to paragraph (a)(1) of Rule 485
___ on (date) pursuant to paragraph (a)(1) of Rule 485
IF APPROPRIATE, CHECK THE FOLLOWING BOX:
__ This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
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<PAGE>
CROSS REFERENCE SHEET
Showing Location in Part A (Prospectus) and Part B of Registration Statement of
Information Required by Form N-4
<TABLE>
<CAPTION>
ITEM OF
FORM N-4 PROSPECTUS CAPTION
- - -------------------- ----------------------------------------------
<S> <C> <C> <C> <C>
1. Cover Page.......................................................... Cover Page
2. Definitions......................................................... Glossary
3. Synopsis............................................................ Introduction: Summary of Separate Account
Expenses
4. Condensed Financials................................................ --
(a) Chart.................................................... Condensed Financial Statements
(b) Performance Data......................................... Performance Data
(c) Location of Others....................................... Financial Statements
5. General............................................................. --
(a) Depositor................................................ Northbrook Life Insurance Company
(b) Registrant............................................... The Variable Account
(c) Portfolio Company........................................ Dean Witter Variable Investment Series
(d) Fund Prospectus.......................................... Dean Witter Variable Investment Series
(e) Voting Rights............................................ Voting Rights
(f) Administrators........................................... Charges & Other Deductions -- Contract
Maintenance Charge
6. Deductions & Expenses............................................... Charges & Other Deductions
(a) General.................................................. Charges & Other Deductions
(b) Sales Load %............................................. Surrender Charge
(c) Special Purchase Plans................................... N/A
(d) Commissions.............................................. Sales Commission
(e) Fund Expenses............................................ Summary of Expenses; Dean Witter Variable
Investment Series Expenses
(f) Organizational Expenses.................................. N/A
7. Contracts
(a) Persons with Rights...................................... The Contracts; Benefits; Income Payments;
Voting Rights; Assignments; Beneficiaries
Contract Owners
(b) (i) Allocation of Purchase Payments............... Allocation of Purchase Payments
(ii) Transfers..................................... Transfers
(iii) Exchanges..................................... N/A
(c) Changes.................................................. Modification
(d) Inquiries................................................ Customer Inquiries
8. Annuity Period...................................................... Income Payments
(a) Material Factors......................................... Amount of Variable Annuity Income Payments
(b) Dates.................................................... Income Starting Date
(c) Frequency, duration & level.............................. Amount of Variable Annuity Income Payments
(d) AIR...................................................... Amount of Variable Annuity Income Payments
(e) Minimum.................................................. Amount of Variable Annuity Income Payments
(f) -- Change Options........................................ Income Plans
-- Transfer.............................................. --
9. Death Benefit....................................................... Benefits Under the Contract
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ITEM OF
FORM N-4 PROSPECTUS CAPTION
- --------------------- ----------------------------------------------
10. Purchases & Contract Value
<S> <C> <C> <C> <C>
(a) Purchases................................................ Purchase of the Contract; Crediting of
Purchase Payments
(b) Valuation................................................ Value of Variable Account Accumulation Units
(c) Daily Calculation........................................ Value of Variable Account Accumulation Units;
Allocation of Purchase Payments
(d) Underwriter.............................................. Dean Witter Reynolds Inc.
11. Redemptions
(a) -- By Owners............................................. Surrender & Withdrawals
(b) -- By Annuitant.......................................... Annuity Options
(c) Texas ORP................................................ N/A
(d) Lapse.................................................... Default
(e) Free Look................................................ Introduction
12. Taxes............................................................... Federal Tax Matters
13. Legal Proceedings................................................... N/A
14. SAI Contents........................................................ SAI Table of Contents
15. Cover Page.......................................................... SAI: Cover Page
16. Table of Contents................................................... SAI: Table of Contents
17. General Information & History
(a) Depositor's Name......................................... Northbrook Life Insurance Company
(b) Assets of Sub-Account.................................... The Variable Account
(c) Control of Depositor..................................... Northbrook Life Insurance Company
18. Services
(a) Fees & Expenses of Registrant............................ Contract Maintenance Charge
(b) Management Contracts..................................... Contract Maintenance Charge; Sales Commissions
(c) Custodian SAI: Safekeeping of the Variable Account's
Assets
Independent Public Accountant............................ SAI: Experts
(d) Assets of Registrant..................................... SAI: Safekeeping of the Variable Account
Assets
(e) Affiliated Persons....................................... N/A
(f) Principal Underwriter.................................... Dean Witter Reynolds Inc.
19. Purchase of Securities Being Offered
(a) Offering................................................. SAI: Purchase of Contracts
(b) Sales load............................................... SAI: Sales Commissions
20. Underwriters
(a) Principal Underwriter.................................... N/A
(b) Continuous offering...................................... SAI: Purchase of Contracts
(c) Commissions.............................................. SAI: Sales Commissions; Dean Witter Reynolds
Inc.
(d) Unaffiliated Underwriters................................ N/A
21. Calculation of Performance Data..................................... SAI: Performance Data
22. Annuity Payments.................................................... SAI; Income Payments
23. Financial Statements
(a) Financial Statements of Registrant....................... SAI; Northbrook Variable Annuity Account
Financial Statements
(b) Financial Statements of Depositor........................ SAI; Northbrook Life Insurance Company
Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ITEM OF
FORM N-4 PROSPECTUS CAPTION
- --------------------- ----------------------------------------------
<S> <C> <C> <C> <C>
24a. Financial Statements................................................ Part C. Financial Statements
24b. Exhibits............................................................ Part C. Exhibits
25. Directors and Officers.............................................. Part C. Directors & Officers of Depositor
26. Persons Controlled By or Under Common Control
with Depositor or Registrant........................................ Part C. Persons Controlled by or Under Common
Control with Depositor or Registrant
27. Number of Contract Owners........................................... Part C. Number of Contract Owners
28. Indemnification..................................................... Part C. Indemnification
29a. Relationship of Principal Underwriter to Other
Investment Companies................................................ Part C. Relationship of Principal Underwriter
to Other Investment Companies
29b. Principal Underwriters.............................................. Part C. Principal Underwriters
29c. Compensation of Underwriter......................................... Part C. Compensation of Dean Witter
30. Location of Accounts and Records.................................... Part C. Location of Accounts and Records
31. Management Services................................................. Part C. Management Services
32. Undertakings........................................................ Part C. Undertakings
</TABLE>
<PAGE>
Registrant is filing this Post-effective Amendment No. 16 solely for the
purposes of expanding the Dollar Cost Averaging Program, offering Automatic
Portfolio Rebalancing and an optional Performance Income Benefit.
Registrant does not intend for this Post-effective Amendment No. 16 to amend or
delete, any other part of this Registration Statement except as specifically
noted herein.
<PAGE>
SUPPLEMENT DATED JANUARY 19, 1998
TO THE PROSPECTUS DATED MAY 1, 1997
OF NORTHBROOK VARIABLE ANNUITY ACCOUNT II
OF NORTHBROOK LIFE INSURANCE COMPANY
Northbrook Life Insurance Company ("Northbrook Life") is pleased to
announce the availability of three new optional enhancements, described below,
to the Contracts described in the Prospectus. Capitalized terms have the same
meaning as given to them in the Prospectus. Please retain this Supplement for
future reference.
DOLLAR COST AVERAGING PROGRAM
Northbrook Life now permits automatic transfers among any Sub-Accounts
of the Variable Account in the Dollar Cost Averaging Program. Accordingly,
please replace the words "the Money Market Sub-Account" with "any Sub-Accounts
of the Variable Account" in your Prospectus, as follows:
Page 3: Definition of Dollar Cost Averaging Program,
Page 5: Question 4, and
Page 14: Paragraph 6 under "Transfers".
AUTOMATIC PORTFOLIO REBALANCING
Northbrook Life Insurance Company now offers Automatic Portfolio Rebalancing.
Accordingly, your Prospectus is amended as follows:
Page 14: Add the following paragraphs after paragraph 6 under "Transfers":
Transfers may also be made automatically through Automatic Portfolio
Rebalancing prior to the Payout Start Date. By electing Automatic Portfolio
Rebalancing, all of the money allocated to Sub-Accounts of the Variable Account
will be rebalanced to the desired allocation on a quarterly basis (or other
frequencies that may be offered by the Company), determined from the first date
that you decide to rebalance. Upon rebalancing, your money will be transferred
among Sub-Accounts of the Variable Account to achieve the desired allocation.
The desired allocation will be the allocation initially selected,
unless subsequently changed. You may change the allocation at any time by giving
us written notice. The new allocation will be effective with the first
rebalancing that occurs after we receive the written request.
Transfers made through Automatic Portfolio Rebalancing are not assessed
a $25 charge and are not included in the twelve free transfers per Contract
Year. Any money allocated to the Fixed Account or the Dollar Cost Averaging
Fixed Account will not be included in the rebalancing.
PERFORMANCE INCOME BENEFIT
Northbrook Life Insurance Company now offers, at the time the Contract is
purchased, the option to elect the Performance Income Benefit. Accordingly, your
Prospectus is amended as follows:
Page 4: Add the definition of Performance Income Benefit:
Performance Income Benefit - An income benefit option which can be
selected at the time the Contract is purchased.
Page 6: Question 6 continued:
<PAGE>
After each reference to "Death Benefit provision" that appears in the first
sentence, insert "or the optional Performance Income Benefit". Also, at the end
of the first sentence, insert "When both the Performance Income Benefit and the
Performance Death Benefit are selected an additional Mortality and Expense Risk
Charge of .24% is assessed bringing the total charges for Contracts with both
the Performance Income Benefit and the Performance Death Benefit to a Mortality
and Expense Risk Charge of 1.49% and an Administrative Expense Charge of .10%."
Page 7: Replace the "Separate Account Annual Expenses" chart in its entirety
with the following chart:
SEPARATE ACCOUNT ANNUAL EXPENSES (as a percentage of account value)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Without an With an With Both the
Optional Optional Optional
Death Benefit Death Benefit Performance
Provision Provision or Income
the Optional Benefit and
Performance the Optional
Income Performance
Benefit Death Benefit
Mortality and Expense Risk Charge 1.25% 1.38% 1.49%
Administrative Expense Charge .10% .10% .10%
Total Separate Account Annual Expenses 1.35% 1.48% 1.59%
</TABLE>
Page 8: Replace the Example headings that read "(with an optional Death Benefit
provision**)" with the heading "(with an optional Death Benefit provision or the
optional Performance Income Benefit**)"
Add the following table under the section: "If you surrender your Contract...."
(with both the optional Performance Income Benefit and the optional Performance
Death Benefit****)
<TABLE>
<CAPTION>
1 Year 3 Year 5 Year 10 Year
------ ------ ------ -------
<S> <C> <C> <C> <C>
Money Market Sub-Account $65 $94 $125 $250
Quality Income Plus Sub-Account $65 $94 $126 $251
High Yield Sub-Account $65 $93 $125 $249
Utilities Sub-Account $66 $98 $133 $266
Income Builder Sub-Account $68 $103 $141 $281
Dividend Growth Sub-Account $65 $95 $128 $256
Capital Growth Sub-Account $67 $100 $136 $272
Global Dividend Growth Sub-Account $68 $104 $142 $284
European Growth Sub-Account $71 $112 $155 $310
Pacific Growth Sub-Account $73 $120 $169 $336
Capital Appreciation Sub-Account $68 $103 $141 $281
Equity Sub-Account $65 $94 $136 $252
Strategist Sub-Account $65 $94 $125 $250
Add the following table under the section: "If you do not surrender your Contract ...."
(with both the optional Performance Income Benefit and the optional Performance
Death Benefit ****)
<CAPTION>
1 Year 3 Year 5 Year 10 Year
------ ------ ------ -------
<S> <C> <C> <C> <C>
Money Market Sub-Account $22 $68 $117 $250
Quality Income Plus Sub-Account $22 $68 $117 $251
High Yield Sub-Account $22 $68 $116 $249
Utilities Sub-Account $24 $73 $124 $266
Income Builder Sub-Account $25 $77 $132 $281
Dividend Growth Sub-Account $23 $70 $119 $256
Capital Growth Sub-Account $24 $75 $128 $272
Global Dividend Growth Sub-Account $25 $78 $134 $284
European Growth Sub-Account $28 $86 $147 $310
Pacific Growth Sub-Account $31 $94 $160 $336
Capital Appreciation Sub-Account $25 $77 $132 $281
Equity Sub-Account $22 $69 $118 $252
Strategist Sub-Account $22 $68 $117 $250
**** Total Separate Account Annual Expenses of 1.59%
</TABLE>
<PAGE>
Page 16: In the third sentence under "Mortality and Expense Risk Charge,"
insert "or the optional Performance Income Benefit" after the phrase "optional
Death Benefit provision." Also, insert the following two sentences before the
last sentence of the first paragraph:
The assessment of the additional .13% for the optional Performance
Income Benefit is attributed to the assumption of additional
survivorship risks. When both the Performance Income Benefit and the
Performance Death Benefit are selected an additional .24% is assessed
for a total of 1.49%.
Page 17: At the end of the second paragraph under "Benefits Under The Contract,"
add the following two sentences:
If the Performance Income Benefit is selected at the time of purchase,
then the Performance Death Benefit is the only optional Death Benefit provision
available. Either of the optional Death Benefit provisions may not be available
in all states.
Page 19: At the end of the "Amount of Variable Annuity Income Payments" section
add the following:
The Performance Income Benefit is an optional benefit that you may
elect at the time you purchase your Contract. Your Performance Income Benefit,
on the date of issue, will equal the amount of your initial Purchase Payment.
For each Contract Anniversary, additional Purchase Payment or withdrawal we will
recalculate your Performance Income Benefit. The Performance Income Benefit will
be 1) increased by additional Purchase Payments and 2) reduced by withdrawals by
an amount equal to: (i) the Performance Income Benefit just before the
withdrawal, multiplied by (ii) the ratio of the withdrawal amount to the Cash
Value just before the withdrawal.
We will recalculate the Performance Income Benefit until the oldest
Owner or Annuitant (if the Owner is a non-natural Owner) attains age 85. After
age 85, we will only recalculate the Performance Income Benefit to reflect
additional Purchase Payments and withdrawals.
To exercise your Performance Income Benefit, you must apply it to an
income plan. The Payout Start Date you select must begin on or after your tenth
Contract Anniversary and within 30 days after a Contract Anniversary. In
addition, you must apply your Performance Income Benefit to an income plan that
provides guaranteed payments for either a single or joint life for at least:
1. 10 years, if the Annuitant's age (or youngest Annuitant's age
in the case of joint Annuitants) is 80 or less on the date you
apply the Benefit, or
2. 5 years, if the Annuitant's age (or youngest Annuitant's age,
in the case of joint Annuitants) is greater than 80 on the date
you apply the Benefit.
If your current Cash Value is higher than the Performance Income
Benefit, you can apply the Cash Value to any income plan. The Performance
Income Benefit may not be available in all states.
<PAGE>
Part B
SUPPLEMENT DATED JANUARY 19, 1998 TO
THE STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 1997
OF NORTHBROOK VARIABLE ANNUITY ACCOUNT II
OF NORTHBROOK LIFE INSURANCE COMPANY
Under "Standardized Total Return" and "Other Total Return" replace the Example
headings that read "(with an optional Death Benefit provision**)" with the
heading "(with an optional Death Benefit provision or the optional Performance
Income Benefit**)".
Also insert the following tables:
Standardized Total Return
(With both the Optional Performance Income Benefit
and the Optional Performance Death Benefit)
<TABLE>
<CAPTION>
Sub-Account One-Year Since Inception
- ----------------------- -------- ---------------
<S> <C> <C>
Capital Growth 5.46% 11.38%
Dividend Growth 17.68% 22.04%
Equity 6.26% 9.70%
European Growth 23.61% 22.52%
Global Dividend Growth 11.40% 15.44%
High Yield 5.88% 6.63%
Money Market N/A N/A
Pacific Growth (2.08)% .62%
Quality Income Plus (4.37)% (.43)%
Strategist 8.88% 9.91%
Utilities 2.64% 7.63%
(With both the Optional Performance Income Benefit
and the Optional Performance Death Benefit)
<CAPTION>
10-Years or Since
Sub-Account 1 Year 5-Years Inception (if less)
- ----------------------- ------ ------- -------------------
<S> <C> <C> <C>
Capital Growth 5.46% 4.82% 8.45%
Dividend Growth 17.68% 13.15% 11.69%
Equity 6.26% 10.84% 11.25%
European Growth 23.61% 18.99% 16.05%
Global Dividend Growth 11.40% N/A 10.77%
High Yield 5.88% 11.11% 5.52%
Money Market N/A N/A N/A
Pacific Growth (2.08)% N/A (2.04)%
Quality Income Plus (4.37)% 5.71% 6.94%
Strategist 8.88% 7.23% 8.19%
Utilities 2.64% 8.71% 9.57%
Other Total Returns
(With both the Optional Performance Income Benefit
and the Optional Performance Death Benefit)
<CAPTION>
10-Years or Since
Sub-Account 1 Year 5-Years Inception (if less)
- ----------------------- ------ ------- -------------------
<S> <C> <C> <C>
Capital Growth 9.77% 5.03% 8.60%
Dividend Growth 21.99% 13.31% 11.74%
Equity 10.58% 11.01% 11.30%
European Growth 27.93% 19.13% 16.17%
Global Dividend Growth 15.72% N/A 11.80%
High Yield 10.20% 11.27% 5.58%
Money Market N/A N/A N/A
Pacific Growth 2.24% N/A (.74)%
Quality Income Plus (.06)% 5.91% 6.99%
Strategist 13.20% 7.41% 8.23%
Utilities 6.95% 8.89% 9.61%
</TABLE>
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant, Northbrook Variable Annuity Account II, has caused this
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, and its seal to be hereunto affixed and attested, all in the
Township of Northfield, State of Illinois, on the 13th day of November, 1997.
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
(REGISTRANT)
BY: NORTHBROOK LIFE INSURANCE COMPANY
(DEPOSITOR)
(SEAL)
Attest: /S/ BRENDA D. SNEED By: /S/ MICHAEL J. VELOTTA
------------------- ----------------------
Brenda D. Sneed Michael J. Velotta
Assistant Secretary Vice President, Secretary and
And Assistant General Counsel General Counsel
As required by the Securities Act of 1933, this Registration Statement has
been duly signed below by the following Directors and Officers of Northbrook
Life Insurance Company on the 13th day of November, 1997.
*/LOUIS G. LOWER, II Chairman of the Board of Directors and
- ------------------------ Chief Executive Officer
Louis G. Lower, II (Principal Executive Officer)
/S/ MICHAEL J. VELOTTA Vice President, Secretary, General
- ------------------------ Counsel and Director
Michael J. Velotta
*/PETER H. HECKMAN President, Chief Operating Officer
- ------------------------ and Director
Peter H. Heckman
*/JOHN R. HUNTER Assistant Vice President
- ------------------------ and Director
John R. Hunter
*/KEVIN R. SLAWIN Vice President and Director
- ------------------------ (Principal Financial Officer)
Kevin R. Slawin
*/CASEY J. SYLLA Chief Investment Officer and Director
- ------------------------
Casey J. Sylla
*/MARLA G. FRIEDMAN Vice President
- ------------------------
Marla G. Friedman
*/KAREN C. GARDNER Vice President
- ------------------------
Karen C. Gardner
*/JAMES P. ZILS Treasurer
- ------------------------
James P. Zils
*/KEITH A. HAUSCHILDT Assistant Vice President and Controller
- ------------------------ (Principal Accounting Officer)
Keith A. Hauschildt
*/ By Michael J. Velotta, pursuant to Power of Attorney, previously filed.
<PAGE>
PART C
OTHER INFORMATION
24A. FINANCIAL STATEMENTS
Northbrook Life Insurance Company Financial Statements and Financial
Schedule and Northbrook Variable Annuity Account II Financial Statements
are incorporated by reference to Registration Statement NO. 33-35412, filed
on May 1, 1997.
24B. EXHIBITS
The following exhibits, correspond to those required by paragraph (b) of
item 24 as to exhibits in Form N-4:
<TABLE>
<S> <C>
(1) Resolution of the Board of Directors of Northbrook Life Insurance Company authorizing
establishment of the Variable Annuity Account II*
(2) Not Applicable
(3)(a) Underwriting Agreement*
(b) Form of General Agency Agreement*
(4)(a) Form of Contract and Certificate Amendments*,**
(b) Form of Performance Benefit Income Rider
(c) Form of Performance Combination Rider
(5) Form of application for a Contract*
(6)(a) Articles of Incorporation of Northbrook Life Insurance Company*
(b) By-laws of Northbrook Life Insurance Company*
(7) Not applicable
(8) Participation Agreement***
(9) Opinion of Robert S. Seiler, Senior Vice President, Secretary and General Counsel of
Northbrook Life Insurance Company*
(10)(a) Consent of Accountants****
(b) Consent of Attorneys*****
(11) Not applicable
(12) Form of Agreement to Purchase Shares*
(13) Performance Data Calculations
(14) Financial Data Schedule******
(99) Powers of Attorney*
</TABLE>
- ------------------------
* Previously filed in Form N-4 Registration Statement No. 33-35412 dated
December 31, 1996 and incorporated by reference.
** Previously filed in Form N-4 Registration Statement No. 33-35412 dated
February 28, 1997 and incorporated by reference.
*** Previously filed in Form N-4 Registration Statement No. 33-35412 dated
April 30, 1996 and incorporated by reference.
**** Previously filed in Form N-4 Registration Statement No. 33-35412 dated
May 1, 1997 and incorporated by reference.
***** Previously filed in Form N-4 Registration Statement No. 33-35412 dated
June 14, 1990 and incorporated by reference.
****** Previously filed in Depositor's Form 10-K, filed March 31, 1997.
<PAGE>
25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
NAME AND PRINCIPAL BUSINESS
ADDRESS POSITION AND OFFICE WITH DEPOSITOR OF THE TRUST
- - ------------------------------- ------------------------------------------------------------------
<S> <C>
Louis G. Lower, II Chairman of the Board of Directors and Chief Executive Officer
Michael J. Velotta Director, Vice President, Secretary and General Counsel
Peter H. Heckman Director, President and Chief Operating Officer
Marla G. Friedman Vice President
John R. Hunter Director and Assistant Vice President
Kevin R. Slawin Director and Vice President
Casey J. Sylla Director and Chief Investment Officer
Karen C. Gardner Vice President
James P. Zils Treasurer
Keith A. Hauschildt Assistant Vice President and Controller
Sarah R. Donahue Assistant Vice President
Ronald Johnson Assistant Vice President
Barry S. Paul Assistant Vice President
Emma M. Kalaidjian Assistant Secretary
Paul N. Kierig Assistant Secretary
Mary J. McGinn Assistant Secretary
Robert N. Roeters Assistant Vice President
Brenda D. Sneed Assistant Secretary and Assistant General Counsel
C. Nelson Strom Assistant Vice President and Corporate Actuary
Charles F. Thalheimer Assistant Vice President
Nancy M. Bufalino Assistant Treasurer
Patricia A. Wilson Assistant Vice President, Assistant Secretary and Assistant
Treasurer
</TABLE>
The principal business address of the foregoing officers and directors is
3100 Sanders Road, Northbrook, Illinois 60062.
26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH DEPOSITOR OR REGISTRANT
See 10-K Commission File #1-11840, The Allstate Corporation.
27. NUMBER OF CONTRACT OWNERS
As of November 7, 1997 there were in force 13,234 qualified and 73,585
non-qualified contracts. The Registrant began operations on October 25, 1990.
28. INDEMNIFICATION
The General Agency Agreement (Exhibit 3(b)) has a provision in which
Northbrook Life agrees to indemnify Dean Witter Reynolds as Underwriter for
certain damages and expenses that may be caused by actions, statements or
omissions by Northbrook Life. The Agreement to Purchase Shares contains a
similar provision in paragraph 16 of Exhibit 12.
Insofar as indemnification for liability arising out of 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
<PAGE>
against such liabilities (other than payment by the registrant of expenses
incurred by a director, officer or controlling person of the registrant in the
successful defense of any action, suit, or proceeding) is asserted such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
29A. RELATIONSHIP OF PRINCIPAL UNDERWRITER TO OTHER INVESTMENT COMPANIES
Dean Witter Distributors Inc. is the principal underwriter for the following
investment companies:
Dean Witter Liquid Asset Fund Inc.
Dean Witter Tax-Free Daily Income Trust
Dean Witter California Tax-Free Daily Income Trust
Dean Witter Retirement Series
Dean Witter Dividend Growth Securities Inc.
Dean Witter Natural Resource Development
Securities Inc.
Dean Witter World Wide Investment Trust
Dean Witter Capital Growth Securities
Dean Witter Convertible Securities Trust
Active Assets Tax-Free Trust
Active Assets Money Trust
Active Assets California Tax-Free Trust
Active Assets Government Securities Trust
Dean Witter Short-Term Bond Fund
Dean Witter Mid-Cap Growth Fund
Dean Witter U.S. Government Securities Trust
Dean Witter High Yield Securities Inc.
Dean Witter New York Tax-Free Income Fund
Dean Witter Tax-Exempt Securities Trust
Dean Witter California Tax-Free Income Fund
Dean Witter Limited Term Municipal Trust
Dean Witter World Wide Income Trust
Dean Witter Utilities Fund
Dean Witter Strategist Fund
Dean Witter New York Municipal Money
Market Trust
Dean Witter Intermediate Income Securities
Prime Income Trust
Dean Witter European Growth Fund Inc.
Dean Witter Developing Growth Securities Trust
Dean Witter Precious Metals and Minerals Trust
Dean Witter Pacific Growth Fund Inc.
Dean Witter Multi-State Municipal Series Trust
Dean Witter Federal Securities Trust
Dean Witter Short-Term U.S. Treasury Trust
Dean Witter Diversified Income Trust
Dean Witter Health Sciences Trust
Dean Witter Global Dividend Growth Securities
Dean Witter American Value Fund
Dean Witter U.S. Government Money Market Trust
Dean Witter Global Short-Term Income Fund Inc.
Dean Witter Premier Income Trust
Dean Witter Value-Added Market Series
Dean Witter Global Utilities Fund
Dean Witter High Income Securities
Dean Witter National Municipal Trust
Dean Witter International SmallCap Fund
Dean Witter Global Asset Allocation
Dean Witter Balanced Income Fund
Dean Witter Balanced Growth Fund
Dean Witter Hawaii Municipal Trust
Dean Witter Capital Appreciation Fund
Dean Witter Intermediate Term U.S. Treasury Trust
Dean Witter Information Fund
Dean Witter Japan Fund
Dean Witter Income Builder Fund
Dean Witter Special Value Fund
TCW/DW Core Equity Trust
TCW/DW North American Government
Income Trust
TCW/DW Latin American Growth Fund
TCW/DW Income and Growth Fund
TCW/DW Small Cap Growth Fund
TCW/DW Balanced Fund
TCW/DW Mid-Cap Equity Trust
TCW/DW Total Return Trust
TCW/DW Global Telecom Trust
TCW/DW Strategic Income Trust
<PAGE>
29B. PRINCIPAL UNDERWRITER
<TABLE>
<CAPTION>
NAME AND PRINCIPAL BUSINESS
ADDRESS OF EACH SUCH PERSON POSITIONS AND OFFICES WITH UNDERWRITER
- -------------------------------- ------------------------------------------------------------------
<S> <C>
Dean Witter Reynolds Inc. Underwriter
("Dean Witter")
Philip J. Purcell Chairman, Chief Executive Officer and Director
Richard M. Demartini President, Chief Operating Officer and Director, Dean Witter
Capital
James F. Higgins President and Chief Operating Officer and Director, Dean Witter
Financial
Stephen R. Miller Senior Executive Vice President and Director
Raymond J. Drop Executive Vice President
Robert J. Dwyer Executive Vice President, National Sales Director and Director
Christine A. Edwards Executive Vice President, Secretary, General Counsel and Director
Charles A. Fiumefreddo Executive Vice President and Director
Frederick J. Frohne Executive Vice President
Alfred J. Golden Executive Vice President
E. Davisson Hardman, Jr. Executive Vice President
Mitchell M. Merin Executive Vice President, Chief Administrative Officer and
Director
Laurence E. Mollner Executive Vice President
Jeremiah A. Mullins Executive Vice President
Richard F. Powers, III Executive Vice President and Director
John H. Schaefer Executive Vice President
Thomas C. Schneider Executive Vice President, Chief Financial Officer and Director
Robert B. Sculthorpe Executive Vice President
William B. Smith Executive Vice President and Director
Samule H. Wolcott, III Executive Vice President
Anthony Basile Senior Vice President
Ronald T. Carman Senior Vice President, Associate General Counsel and Assistant
Secretary
Michael T. Cunningham Senior Vice President
Mary E. Curran Senior Vice President
David Diaz Senior Vice President
Raymond F. Douglas Senior Vice President
Paul J. Dubow Senior Vice President and Deputy General Counsel
Michael T. Gregg Senior Vice President and Deputy General Counsel
Erick R. Holt Senior Vice President and Assistant Secretary
Birendra Kumar Senior Vice President and Treasurer
George R. Ross Senior Vice President
Robert P. Seass Senior Vice President
Joseph G. Siniscalchi Senior Vice President and Controller, Dean Witter Financial
Michael H. Stone Senior Vice President
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NAME AND PRINCIPAL BUSINESS
ADDRESS OF EACH SUCH PERSON POSITIONS AND OFFICES WITH UNDERWRITER
- -------------------------------- ------------------------------------------------------------------
<S> <C>
Lawrence Volpe Senior Vice President and Controller, Dean Witter Reynolds Inc.
and Dean Witter Capital
Lorena J. Kern Senior Vice President
Kathryn M. McNamara Senior Vice President and Director of Governmental Affairs
Michael D. Browne Assistant Secretary
Linda M. Butler Assistant Secretary
Marilyn Cranney Assistant Secretary
Sheldon Curtis Assistant Secretary
Barry Fink Assistant Secretary
Sabrina Hurley Assistant Secretary
Barbara B. Kiley Assistant Secretary
</TABLE>
The principal address of Dean Witter is Two World Trade Center, New York,
New York 10048.
29C. COMPENSATION OF DEAN WITTER
The following commissions and other compensation were received by each
principal underwriter, directly or indirectly, from the Registrant during the
Registrant's last fiscal year:
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5)
NET COMPENSATION
UNDERWRITING OR REDEMPTION
NAME OF DISCOUNTS AND OR BROKERAGE
PRINCIPAL COMMISSIONS ANNUITIZATION COMMISSIONS COMPENSATION
- ---------------- ------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Dean Witter
Reynolds Inc. $53,617,941
</TABLE>
30. LOCATION OF ACCOUNTS AND RECORDS
Michael J. Velotta
Northbrook Life Insurance Company
3100 Sanders Road
Northbrook, Illinois 60062
31. MANAGEMENT SERVICES
None
<PAGE>
32. UNDERTAKINGS
The Registrant promises 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. Registrant furthermore agrees to include either 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 a post
card or similar written communication affixed to or included in the Prospectus
that the applicant can remove to send for a Statement of Additional Information.
Finally, the Registrant agrees to deliver any Statement of Additional
Information and any Financial Statements required to be made available under
this Form N-4 promptly upon written or oral request.
33. REPRESENTATIONS PURSUANT TO SECTION 403(B) OF THE INTERNAL REVENUE CODE
The Company represents that it is relying upon a November 28, 1988
Securities and Exchange Commission no-action letter issued to the American
Council of Life Insurance ("ACLI") and that the provisions of paragraphs 1-4 of
the no-action letter have been complied with.
34. REPRESENTATION REGARDING CONTRACT EXPENSES
Northbrook Life Insurance Company ("Northbrook Life") represents that the
fees and charges deducted under the Group and Individual Variable Annuity
Contracts hereby registered by this Registration Statement, in the aggregate,
are reasonable in relation to the services rendered, the expenses expected to be
incurred, and the risks assumed by Northbrook Life.
NLU839 (11/97)
NORTHBROOK LIFE INSURANCE COMPANY
(herein called "we" or "us")
Performance Income Benefit Rider
This rider was issued because you selected the Performance Income Benefit at the
time you applied for this annuity.
The following changes are made to your Contract.
<TABLE>
<S> <C> <C>
I. Throughout the PAYOUT PHASE section of your Contract, the term "cash value" is replaced with "the greater of the
cash value or the Performance Income Benefit" if:
- the owner elects a payout start date on or after the tenth contract anniversary, and
- the payout start date occurs during the 30 day period following a contract anniversary.
If the amount applied to an income plan is the Performance Income Benefit, then the income plan must provide payments
guaranteed for either single or joint life with a period certain of at least:
- 10 years, if the youngest annuitant's age is 80 or less on the date the amount is applied, or
- 5 years, if the youngest annuitant's age is greater than 80 on the date the amount is applied.
If the amount applied to an income plan is the cash value, then the income plan may be any plan then offered by us.
II. At issue, the Performance Income Benefit is equal to the initial purchase payment.
After issue, the Performance Income Benefit is recalculated when a purchase payment or withdrawal is made or on a
contract anniversary as follows:
A. For purchase payments, the Performance Income Benefit is equal to the most recently calculated
Performance Income Benefit plus the purchase payment.
B. For withdrawals, the Performance Income Benefit is equal to the most recently calculated
Performance Income Benefit reduced by a withdrawal adjustment.
The adjustment is equal to (1) divided by (2), with the result multiplied by (3), where:
(1) = the withdrawal amount.
(2) = the cash value immediately prior to the withdrawal.
(3) = the most recently calculated Performance Income Benefit.
C. On each contract anniversary, the Performance Income Benefit is equal to the greater of the cash value
or the most recently calculated Performance Income Benefit.
In the absence of any withdrawals or purchase payments, the Performance Income Benefit will be the greatest of all
contract anniversary cash values on or prior to the payout start date.
The Performance Income Benefit will be recalculated for purchase payments, withdrawals and on contract anniversaries
until the oldest owner or the annuitant, if the owner is a non-natural person, attains age 85.
After age 85, the Performance Income Benefit will be recalculated only for purchase payments and withdrawals.
III. The Mortality and Expense Risk Charge provision of your Contract is modified as follows:
The annualized mortality and expense risk charge of 1.25% is changed to 1.38%.
</TABLE>
Except as amended, the Contract remains unchanged.
Michael J. Velotta Louis G. Lower, II
Secretary Chief Executive Officer
<PAGE>
NLU842 (11/97)
NORTHBROOK LIFE INSURANCE COMPANY
(herein called "we" or "us")
Performance Benefit Combination Rider
This rider was issued because you selected the Performance Death Benefit for the
death of any owner and the Performance Income Benefit at the time you applied
for this annuity.
The following changes are made to your Contract.
<TABLE>
Performance Income Benefit
- --------------------------
<S> <C> <C>
I. Throughout the PAYOUT PHASE section of your Contract, the term "cash value" is replaced with "the greater of the
cash value or the Performance Income Benefit" if:
- the owner elects a payout start date on or after the tenth contract anniversary, and
- the payout start date occurs during the 30 day period following a contract anniversary.
If the amount applied to an income plan is the Performance Income Benefit, then the income plan must provide
payments guaranteed for either single or joint life with a period certain of at least:
- 10 years, if the youngest annuitant's age is 80 or less on the date the amount is applied, or
- 5 years, if the youngest annuitant's age is greater than 80 on the date the amount is applied.
If the amount applied to an income plan is the cash value, then the income plan may be any plan then offered by us.
II. At issue, the Performance Income Benefit is equal to the initial purchase payment.
After issue, the Performance Income Benefit is recalculated when a purchase payment or withdrawal is made or on a
contract anniversary as follows:
A. For purchase payments, the Performance Income Benefit is equal to the most recently calculated
Performance Income Benefit plus the purchase payment.
B. For withdrawals, the Performance Income Benefit is equal to the most recently calculated
Performance Income Benefit reduced by a withdrawal adjustment. The adjustment is equal to
(1) divided by (2), with the result multiplied by (3), where:
(1) = the withdrawal amount.
(2) = the cash value immediately prior to the withdrawal.
(3) = the most recently calculated Performance Income Benefit.
C. On each contract anniversary, the Performance Income Benefit is equal to the greater of the cash value
or the most recently calculated Performance Income Benefit.
In the absence of any withdrawals or purchase payments, the Performance Income Benefit will be the greatest
of all contract anniversary cash values on or prior to the payout start date.
The Performance Income Benefit will be recalculated for purchase payments, withdrawals and on contract
anniversaries until the oldest owner or the annuitant, if the owner is a non-natural person, attains age 85.
After age 85, the Performance Income Benefit will be recalculated only for purchase payments and withdrawals.
Performance Death Benefit
- -------------------------
If the owner is a natural person, the Performance Death Benefit applies only to the death of the owner. If the owner is
not a natural person, the Performance Death Benefit applies only to the death of the annuitant. This is unlike the
death benefit defined in the Death Benefit provision of your Contract which may apply to the death of the annuitant even
if the owner is a natural person.
I. The Death Benefit provision of your Contract is modified as follows:
The Death Benefit will be the greatest of the values stated in your Contract, or the value of the
Performance Death Benefit.
At issue, the Performance Death Benefit is equal to the initial purchase payment.
After issue, the Performance Death Benefit is recalculated when a purchase payment or withdrawal is made
or on a contract anniversary as follows:
A. For purchase payments, the Performance Death Benefit is equal to the most recently calculated Performance
Death Benefit plus the purchase payment.
B. For withdrawals, the Performance Death Benefit is equal to the most recently calculated Performance Death
Benefit reduced by a withdrawal adjustment.
The adjustment is equal to (1) divided by (2), with the result multiplied by (3), where:
(1) = the withdrawal amount.
(2) = the cash value immediately prior to the withdrawal.
(3) = the most recently calculated Performance Death Benefit.
C. On each contract anniversary, the Performance Death Benefit is equal to the greater of the cash value or
the most recently calculated Performance Death Benefit.
In the absence of any withdrawals or purchase payments, the Performance Death Benefit will be the greatest of all
contract anniversary cash values on or prior to the date we calculate the death benefit.
The Performance Death Benefit will be recalculated for purchase payments, withdrawals and on contract anniversaries
until the oldest owner or the annuitant, if the owner is a non-natural person, attains age 85.
After age 85, the Performance Death Benefit will be recalculated only for purchase payments and withdrawals.
Mortality and Expense Risk Charge
- ---------------------------------
The Mortality and Expense Risk Charge provision of your Contract is modified as follows:
The annualized mortality and expense risk charge of 1.25% is changed to 1.49%.
</TABLE>
Except as amended, the Contract remains unchanged.
Michael J. Velotta Louis G. Lower, II
Secretary Chief Executive Officer
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
- --------------------
NO. YEARS 1.000
<S> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- --------- ----------- --------- ----------
INIT DEPOSIT 29-Dec-95 1000.00 24.277566 41.19029
FEE 31-Dec-96 0.669 26.753971 0.02501
RESULTING VALUE 31-Dec-96 26.753971 41.16529 1101.3348
1.000
FORMULA: 1000*(1+T)= 1101.3348 -(0.85 * 1000 * 0.05)
= 1058.8348
Standardized Return = T = 5.88%
R = 5.88%
NLIC VAII EQUITY
- ----------------
NO. YEARS 1.000
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- -------- ---------- --------- ---------
INIT DEPOSIT 29-Dec-95 1000.00 40.008767 24.99452
FEE 31-Dec-96 0.669 44.239754 0.01512
RESULTING VALUE 31-Dec-96 44.239754 24.97940 1105.0825
1.000
FORMULA: 1000*(1+T)= 1105.0825 -(0.85 * 1000 * 0.05)
= 1062.5825
Standardized Return = T = 6.26%
R = 6.26%
NLIC VAII QUALITY INCOME
- ------------------------
NO. YEARS 1.000
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ------------ --------- -------- ---------- --------- ---------
INIT DEPOSIT 29-Dec-95 1000.00 19.451222 51.41065
FEE 31-Dec-96 0.669 19.439970 0.03441
RESULTING VALUE 31-Dec-96 19.439970 51.37624 998.7525
1.000
FORMULA: 1000*(1+T)= 998.7525 -(0.85 * 1000 * 0.05)
= 956.2525
Standardized Return = T = -4.37%
R = -4.37%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
- --------------------
NO. YEARS 1.000
<S> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- ------- ---------- --------- ----------
INIT DEPOSIT 29-Dec-95 1000.00 19.251428 51.94420
FEE 31-Dec-96 0.669 21.791756 0.03070
RESULTING VALUE 31-Dec-96 21.791756 51.91350 1131.2863
1.000
FORMULA: 1000*(1+T)= 1131.2863 -(0.85 * 1000 * 0.05)
= 1088.7863
Standardized Return = T = 8.88%
R = 8.88%
NLIC VAII DIVIDEND GROWTH
- --------------------------
NO. YEARS 1.000
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- ------- ---------- --------- ---------
INIT DEPOSIT 29-Dec-95 1000.00 17.515440 57.09249
FEE 31-Dec-96 0.669 21.367455 0.03131
RESULTING VALUE 31-Dec-96 21.367455 57.06118 1219.2521
1.000
FORMULA: 1000*(1+T)= 1219.2521 -(0.85 * 1000 * 0.05)
= 1176.7521
Standardized Return = T = 17.68%
R = 17.68%
NLIC VAII UTILITIES
- -------------------
NO. YEARS 1.000
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- ----------- ------- ---------- --------- ---------
INIT DEPOSIT 29-Dec-95 1000.00 17.518661 57.08199
FEE 31-Dec-96 0.669 18.736675 0.03571
RESULTING VALUE 31-Dec-96 18.736675 57.04628 1068.8577
1.000
FORMULA: 1000*(1+T)= 1068.8577 -(0.85 * 1000 * 0.05)
= 1026.3577
Standardized Return = T = 2.64%
R = 2.64%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
- -------------------------
NO. YEARS 1.000
<S> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- -------- ---------- --------- ---------
INIT DEPOSIT 29-Dec-95 1000.00 18.757024 53.31336
FEE 31-Dec-96 0.669 23.995252 0.02788
RESULTING VALUE 31-Dec-96 23.995252 53.28548 1278.5985
1.000
FORMULA: 1000*(1+T)= 1278.5985 -(0.85 * 1000 * 0.05)
= 1236.0985
Standardized Return = T = 23.61%
R = 23.61%
NLIC VAII CAPITAL GROWTH
- ------------------------
NO. YEARS 1.000
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- ------- ---------- --------- ---------
INIT DEPOSIT 29-Dec-95 1000.00 14.750725 67.79328
FEE 31-Dec-96 0.669 16.192376 0.04132
RESULTING VALUE 31-Dec-96 16.192376 67.75196 1097.0652
1.000
FORMULA: 1000*(1+T)= 1097.0652 -(0.85 * 1000 * 0.05)
= 1054.5652
Standardized Return = T = 5.46%
R = 5.46%
NLIC VAII PACIFIC GROWTH
- ------------------------
NO. YEARS 1.000
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- ------- ---------- --------- ---------
INIT DEPOSIT 29-Dec-95 1000.00 9.574734 104.44154
FEE 31-Dec-96 0.669 9.788757 0.06834
RESULTING VALUE 31-Dec-96 9.788757 104.37320 1021.6839
1.000
FORMULA: 1000*(1+T)= 1021.6839 -(0.85 * 1000 * 0.05)
= 979.1839
Standardized Return = T = -2.08%
R = -2.08%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII GLOBAL DIVIDEND GROWTH
- ---------------------------------
NO. YEARS 1.000
<S> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- ------- ---------- --------- ---------
INIT DEPOSIT 29-Dec-95 1000.00 11.879940 84.17551
FEE 31-Dec-96 0.669 13.747230 0.04866
RESULTING VALUE 31-Dec-96 13.747230 84.12684 1156.5111
1.000
FORMULA: 1000*(1+T)= 1156.5111 -(0.85 * 1000 * 0.05)
= 1114.0111
Standardized Return = T = 11.40%
R = 11.40%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII HIGH YIELD
- --------------------
31-Dec-91
TO NO. YEARS 5.000
31-Dec-96
<S> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- -------- ---------- --------- ---------
INIT DEPOSIT 31-Dec-91 1000.00 15.684458 63.75738
FEE 31-Dec-92 0.669 18.281144 0.03660
FEE 31-Dec-93 0.669 22.343890 0.02994
FEE 31-Dec-94 0.669 21.505368 0.03111
FEE 31-Dec-95 0.669 24.277566 0.02756
FEE 31-Dec-96 0.669 26.753971 0.02501
RESULTING VALUE 31-Dec-96 26.753971 63.60718 1701.7446
5.000
FORMULA: 1000*(1+T)= 1701.7446 -(0.85 * 1000 * 0.01)
= 1693.24458
Standardized Return = T = 11.11%
R = 69.32%
NLIC VAII EQUITY
31-Dec-91
TO NO. YEARS 5.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- ------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-91 1000.00 26.237088 38.11399
FEE 31-Dec-92 0.669 25.862407 0.02587
FEE 31-Dec-93 0.669 30.471461 0.02195
FEE 31-Dec-94 0.669 28.207377 0.02372
FEE 31-Dec-95 0.669 40.008767 0.01672
FEE 31-Dec-96 0.669 44.239754 0.01512
RESULTING VALUE 31-Dec-96 44.239754 38.01060 1681.5797
5.000
FORMULA: 1000*(1+T)= 1681.5797 -(0.85 * 1000 * 0.01)
= 1673.07972
Standardized Return = T = 10.84%
R = 67.31%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII QUALITY INCOME
31-Dec-91
TO NO. YEARS 5.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- -------- ---------- --------- ---------
<S> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-91 1000.00 14.591585 68.53265
FEE 31-Dec-92 0.669 15.549586 0.04302
FEE 31-Dec-93 0.669 17.292914 0.03869
FEE 31-Dec-94 0.669 15.853091 0.04220
FEE 31-Dec-95 0.669 19.451222 0.03439
FEE 31-Dec-96 0.669 19.439970 0.03441
RESULTING VALUE 31-Dec-96 19.439970 68.33993
1328.5262
5.000
FORMULA: 1000*(1+T)= 1328.5262 -(0.85 * 1000 * 0.01)
= 1320.02622
Standardized Return = T = 5.71%
R = 32.00%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII STRATEGIST
31-Dec-91
TO NO. YEARS 5.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- -------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-91 1000.00 15.240329 65.61538
FEE 31-Dec-92 0.669 16.084695 0.04159
FEE 31-Dec-93 0.669 17.476540 0.03828
FEE 31-Dec-94 0.669 17.894525 0.03739
FEE 31-Dec-95 0.669 19.251428 0.03475
FEE 31-Dec-96 0.669 21.791756 0.03070
RESULTING VALUE 31-Dec-96 21.791756 5.43267 1425.8929
5.000
FORMULA: 1000*(1+T)= 1425.8929 -(0.85 * 1000 * 0.01)
= 1417.39287
Standardized Return = T = 7.23%
R = 41.74%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII DIVIDEND GROWTH
31-Dec-91
TO NO. YEARS 5.000
31-Dec-96
<S> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- -------- ---------- ---------
INIT DEPOSIT 31-Dec-91 1000.00 11.439575 87.41583
FEE 31-Dec-92 0.669 12.177683 0.05494
FEE 31-Dec-93 0.669 13.704975 0.04881
FEE 31-Dec-94 0.669 13.120081 0.05099
FEE 31-Dec-95 0.669 17.515440 0.03819
FEE 31-Dec-96 0.669 21.367455 0.03131
RESULTING VALUE 31-Dec-96 21.367455 87.19159
1863.0624
5.000
FORMULA: 1000*(1+T)= 1863.0624 -(0.85 * 1000 * 0.01)
= 1854.56235
Standardized Return = T = 13.15%
R = 85.46%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII UTILITIES
31-Dec-91
TO NO. YEARS 5.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- ------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-91 1000.00 12.238950 81.70636
FEE 31-Dec-92 0.669 13.568366 0.04931
FEE 31-Dec-93 0.669 15.450133 0.04330
FEE 31-Dec-94 0.669 13.845961 0.04832
FEE 31-Dec-95 0.669 17.518661 0.03819
FEE 31-Dec-96 0.669 18.736675 0.03571
RESULTING VALUE 31-Dec-96 18.736675 81.49154 1526.8805
5.000
FORMULA: 1000*(1+T)= 1526.8805 -(0.85 * 1000 * 0.01)
= 1518.38052
Standardized Return = T = 8.71%
R = 51.84%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NLIC VAII EUROPEAN GROWTH
31-Dec-91
TO NO. YEARS 5.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- --------- ---------- ------------ --------- ---------
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-91 1000.00 10.000386 99.99614
FEE 31-Dec-92 0.669 10.235178 0.06536
FEE 31-Dec-93 0.669 14.192826 0.04714
FEE 31-Dec-94 0.669 15.157447 0.04414
FEE 31-Dec-95 0.669 18.757024 0.03567
FEE 31-Dec-96 0.669 23.995252 0.02788
RESULTING VALUE 31-Dec-96 23.995252 99.77595 2394.1491
5.000
FORMULA: 1000*(1+T)= 2394.1491 -(0.85 * 1000 * 0.01)
= 2385.64911
Standardized Return = T = 18.99%
R = 138.56%
</TABLE>
<TABLE>
<CAPTION>
NLIC VAII CAPITAL GROWTH
31-Dec-91
TO NO. YEARS 5.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- -------- -------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-91 1000.00 12.671942 78.91450
FEE 31-Dec-92 0.669 12.675435 0.05278
FEE 31-Dec-93 0.669 11.603141 0.05766
FEE 31-Dec-94 0.669 11.219706 0.05963
FEE 31-Dec-95 0.669 14.750725 0.04535
FEE 31-Dec-96 0.669 16.192376 0.04132
RESULTING VALUE 31-Dec-96 16.192376 78.65777 1273.6562
5.000
FORMULA: 1000*(1+T)= 1273.6562 -(0.85 * 1000 * 0.01)
= 1265.15623
Standardized Return = T = 4.82%
R = 26.52%
NLIC VAII HIGH YIELD
31-Dec-86
TO NO. YEARS 10.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ------------ --------- -------- ----------- ----------
<S> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-86 1000.00 15.544125 64.33299
FEE 31-Dec-87 0.669 14.833365 0.04510
FEE 31-Dec-88 0.669 16.207813 0.04128
FEE 31-Dec-89 0.669 13.944138 0.04798
FEE 31-Dec-90 0.669 10.044353 0.06660
FEE 31-Dec-91 0.669 15.684458 0.04265
FEE 31-Dec-92 0.669 18.281144 0.03660
FEE 31-Dec-93 0.669 22.343890 0.02994
FEE 31-Dec-94 0.669 21.505368 0.03111
FEE 31-Dec-95 0.669 24.277566 0.02756
FEE 31-Dec-96 0.669 26.753971 0.02501
RESULTING VALUE 31-Dec-96 26.753971 63.93917 1710.6266
10.000
FORMULA: 1000*(1+T)= 1710.6266 -(0.85 *1000 * 0)
= 1710.6266
Standardized Return = T = 5.52%
R = 71.06%
NLIC VAII EQUITY
31-Dec-86
TO NO. YEARS 10.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ------------ --------- --------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
INIT DEPOSIT 31-Dec-86 1000.00 15.162980 65.95010
FEE 31-Dec-87 0.669 13.995299 0.04780
FEE 31-Dec-88 0.669 15.101812 0.04430
FEE 31-Dec-89 0.669 17.669928 0.03786
FEE 31-Dec-90 0.669 16.760562 0.03992
FEE 31-Dec-91 0.669 26.237088 0.02550
FEE 31-Dec-92 0.669 25.862407 0.02587
FEE 31-Dec-93 0.669 30.471461 0.02195
FEE 31-Dec-94 0.669 28.207377 0.02372
FEE 31-Dec-95 0.669 40.008767 0.01672
FEE 31-Dec-96 0.669 44.239754 0.01512
RESULTING VALUE 31-Dec-96 44.239754 65.65134 2904.3990
10.000
FORMULA: 1000*(1+T)= 2904.3990 -(0.85 *1000 * 0)
= 2904.39901
Standardized Return = T = 11.25%
R = 190.44%
<PAGE>
NLIC VAII QUALITY INCOME
- ------------------------
01-Mar-87
TO NO. YEARS 9.837
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- -------- -------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 01-Mar-87 1000.00 10.000000 100.00000
1 FEE 01-Mar-88 0.669 10.527512 0.06355
2 FEE 01-Mar-89 0.669 10.713983 0.06244
3 FEE 01-Mar-90 0.669 11.612835 0.05761
4 01-Mar-91 0.669 12.802895 0.05225
5 01-Mar-92 0.669 14.455299 0.04628
6 01-Mar-93 0.669 16.367151 0.04087
7 01-Mar-94 0.669 16.910795 0.03956
8 01-Mar-95 0.669 16.680983 0.04011
9 01-Mar-96 0.669 19.004160 0.03520
10 31-Dec-96 0.669 19.439970 0.03441
RESULTING VALUE 31-Dec-96 19.439970 99.52771 1934.8157
9.837
FORMULA: 1000*(1+T)= 1934.8157
= 1934.81565
Standardized Return = T = 6.94%
R = 93.48%
NLIC VAII STRATEGIST
- --------------------
01-Mar-87
TO NO. YEARS 9.837
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ------------ --------- -------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 01-Mar-87 1000.00 10.000000 100.00000
1 FEE 01-Mar-88 0.669 10.731322 0.06234
2 FEE 01-Mar-89 0.669 11.189186 0.05979
3 FEE 01-Mar-90 0.669 12.049398 0.05552
4 01-Mar-91 0.669 13.472113 0.04966
5 01-Mar-92 0.669 15.368011 0.04353
6 01-Mar-93 0.669 16.463313 0.04064
7 01-Mar-94 0.669 17.633337 0.03794
8 01-Mar-95 0.669 18.036454 0.03709
9 01-Mar-96 0.669 19.831432 0.03373
10 31-Dec-96 0.669 21.791756 0.03070
RESULTING VALUE 31-Dec-96 21.791756 99.54906 2169.3488
9.837
FORMULA: 1000*(1+T)= 2169.3488
= 2169.34879
Standardized Return = T = 8.19%
R = 116.93%
<PAGE>
NLIC VAII DIVIDEND GROWTH
- -------------------------
01-Mar-90
TO NO. YEARS 6.836
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- -------- -------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 01-Mar-90 1000.00 10.000000 100.00000
1 FEE 01-Mar-91 0.669 10.271708 0.06513
2 FEE 01-Mar-92 0.669 11.497121 0.05819
3 FEE 01-Mar-93 0.669 12.597068 0.05311
4 01-Mar-94 0.669 13.517273 0.04949
5 01-Mar-95 0.669 13.885937 0.04818
6 01-Mar-96 0.669 18.565514 0.03603
7 31-Dec-96 0.669 21.367455 0.03131
RESULTING VALUE 31-Dec-96 21.367455 99.65856 2129.4498
6.836
FORMULA: 1000*(1+T)= 2129.4498
= 2129.44977
Standardized Return = T = 11.69%
R = 112.94%
NLIC VAII UTILITIES
- -------------------
01-Mar-90
TO NO. YEARS 6.836
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- -------- -------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 01-Mar-90 1000.00 10.000000 100.00000
1 FEE 01-Mar-91 0.669 10.645816 0.06284
2 FEE 01-Mar-92 0.669 11.791549 0.05674
3 FEE 01-Mar-93 0.669 14.580927 0.04588
4 01-Mar-94 0.669 14.667722 0.04561
5 01-Mar-95 0.669 14.373964 0.04654
6 01-Mar-96 0.669 17.625346 0.03796
7 31-Dec-96 0.669 18.736675 0.03571
RESULTING VALUE 31-Dec-96 18.736675 99.66873 1867.4605
6.836
FORMULA: 1000*(1+T)= 1867.4605
= 1867.46051
Standardized Return = T = 9.57%
R = 86.75%
<PAGE>
NLIC VAII EUROPEAN GROWTH
- -------------------------
01-Mar-91
TO NO. YEARS 5.837
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- -------- ------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 01-Mar-91 1000.00 10.000000 100.00000
1 FEE 01-Mar-92 0.669 10.281783 0.06507
2 FEE 01-Mar-93 0.669 10.692710 0.06257
3 FEE 01-Mar-94 0.669 14.670442 0.04560
4 01-Mar-95 0.669 15.518580 0.04311
5 01-Mar-96 0.669 19.698013 0.03396
6 31-Dec-96 0.669 23.995252 0.02788
RESULTING VALUE 31-Dec-96 23.995252 99.72181 2392.8500
5.837
FORMULA: 1000*(1+T)= 2392.8500
= 2384.34998
Standardized Return = T = 16.05%
R = 138.43%
NLIC VAII CAPITAL GROWTH
- ------------------------
01-Mar-91
TO NO. YEARS 5.837
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- -------- ------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 01-Mar-91 1000.00 10.000000 100.00000
1 FEE 01-Mar-92 0.669 12.112740 0.05523
2 FEE 01-Mar-93 0.669 11.786966 0.05676
3 FEE 01-Mar-94 0.669 11.661460 0.05737
4 01-Mar-95 0.669 12.035899 0.05558
5 01-Mar-96 0.669 15.551208 0.04302
6 31-Dec-96 0.669 16.192376 0.04132
RESULTING VALUE 31-Dec-96 16.192376 99.69072 1614.2297
5.837
FORMULA: 1000*(1+T)= 1614.2297
= 1605.7297
Standardized Return = T = 8.45%
R = 60.57%
<PAGE>
NLIC VAII PACIFIC GROWTH
- -------------------------
23-Feb-94
TO NO. YEARS 2.853
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- -------- ------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 23-Feb-94 1000.00 9.997822 100.02178
1 FEE 23-Feb-95 0.669 8.594933 0.07784
2 FEE 23-Feb-96 0.669 10.339198 0.06471
3 FEE 31-Dec-96 0.669 9.788757 0.06834
RESULTING VALUE 31-Dec-96 9.788757 99.81090 977.0247
2.853
FORMULA: 1000*(1+T)= 977.0247
= 943.024672
Standardized Return = T = -2.04%
R = -5.70%
NLIC VAII GLOBAL DIVIDEND GROWTH
- --------------------------------
23-Feb-94
TO NO. YEARS 2.853
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
- ----------- -------- ------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
0 INIT DEPOSIT 23-Feb-94 1000.00 9.997822 100.02178
1 FEE 23-Feb-95 0.669 9.940666 0.06730
2 FEE 23-Feb-96 0.669 12.277162 0.05449
3 FEE 31-Dec-96 0.669 13.747230 0.04866
RESULTING VALUE 31-Dec-96 13.747230 99.85133 1372.6792
2.853
FORMULA: 1000*(1+T)= 1372.6792
= 1338.67923
Standardized Return = T = 10.77%
R = 33.87%
</TABLE>
