As filed with the Securities and Exchange Commission on December 8, 2000.
--------------------------------------------------------------------------------
File Nos. 033-35412
811-06116
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 31
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 38
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:
CHARLES M. SMITH, JR., ESQUIRE DANIEL J. FITZPATRICK, ESQUIRE
ALLSTATE LIFE INSURANCE COMPANY DEAN WITTER REYNOLDS INC.
3100 SANDERS ROAD, SUITE J5B TWO WORLD TRADE CENTER
NORTHBROOK, ILLINOIS 60062 NEW YORK, NEW YORK 10048
APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING: CONTINUOUS
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 60 days after filing
__ 60 days after filing pursuant to paragraph (a)(1) of Rule 485
_X_on December 8, 2000 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.
TITLE OF SECURITIES BEING REGISTERED: Units of Interest in the Northbrook
Variable Annuity Account II under Deferred Variable Annuity Contracts.
<PAGE>
Explanatory Note
Registrant is filing this amendment ("Amendment") to add the Enhanced Earnings
Death Benefit Option ("new Option") to the Morgan Stanley Dean Witter Variable
Annuity II contract ("Contract") described in the currently effective prospectus
and Statement of additional Information for that Contract. The new Option will
be offered to new and existing Contract owners and may be selected on its own or
in addition to any existing death or income benefit option. The Amendment is not
intended to amend or delete any part of the Registration Statement, except as
specifically noted herein.
<PAGE>
NORTHBROOK LIFE INSURANCE COMPANY
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
SUPPLEMENT, DATED DECEMBER 8, 2000, TO THE
MORGAN STANLEY DEAN WITTER VARIABLE ANNUITY II
PROSPECTUS DATED MAY 2, 2000
This supplement describes the Enhanced Earnings Death Benefit Option ("EEDBO")
now available with the Morgan Stanley Dean Witter Variable Annuity II contract
("Contract") offered by Northbrook Life Insurance Company.
PLEASE KEEP IN MIND, ONCE YOU HAVE SELECTED AN OPTIONAL INCOME OR DEATH BENEFIT
(EACH AN "OPTION"), YOUR ABILITY TO SELECT A DIFFERENT OPTION MAY BE LIMITED.
PLEASE CONSULT WITH YOUR FINANCIAL ADVISOR CONCERNING THE EFFECT OF SELECTING A
DIFFERENT OPTION BEFORE DOING SO. WE MAY DISCONTINUE THE OFFERING OF THIS OPTION
AT ANYTIME.
This supplement describes the EEDBO with the options available to
contractholders having an Effective Date prior to November 6, 2000 ("old
Options"). This supplement also describes the EEDBO with Income Benefit
Combination Option 2 and the Income and Death Benefit Combination Option ("new
options) available December 8, 2000 and as described in a separate supplement
dated December 8, 2000. Please keep this supplement for future reference
together with your prospectus. All capitalized terms have the same meaning as
those included in the prospectus.
THE EEDBO MAY NOT BE AVAILABLE IN ALL STATES.
Your prospectus is amended as follows:
Page 4: Insert the following after the first bullet under the "Expenses"
heading:
o If you select the Enhanced Earnings Death Benefit Option, the Total
Variable Account annual fees will equal 1.55% of average daily net assets
(1.68% if you also select the Enhanced Death Benefit Option, the
Performance Death Benefit Option, or the Performance Income Benefit Option,
1.79% if you also select the Performance Benefit Combination Option or the
Death Benefit Combination Option, 1.85% if you also select the Income
Benefit Combination Option 2, or 2.05% if you also select the Income and
Death Benefit Combination Option 2). If you qualify for and elect the
Longevity Reward Rider, the annual fees are reduced by 0.07% under any
Option listed above. See the description of each Option and the Rider for
the availability of each.
Page 7: Replace the section entitled "Variable Account Annual Expenses," with
the following table:
For Contracts Issue Prior to December 8, 2000 with old Options
Variable Account Annual Expenses
(As A Percentage Of Average Daily Net Asset Value
Deducted From Each Variable Sub-Account)
<TABLE>
<CAPTION>
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
With the With the With the With the With the Death
Basic Contract Enhanced Performance Performance Performance Benefit
Death Death Income Benefit Combination
Benefit Benefit Benefit Option Combination Option
Option Option Option
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Mortality and Expense Risk 1.25% 1.38% 1.38% 1.38% 1.49% 1.49%
Charge
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
Administrative Expense Charge 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
Total Variable Account Annual
Expenses 1.35% 1.48% 1.48% 1.48% 1.59% 1.59%
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
Variable Account Annual Expenses - With the EEDBO
(As A Percentage Of Average Daily Net Asset Value
Deducted From Each Variable Sub-Account)
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
Basic
Contract With With the With the With the With the With the Death
the Enhanced Enhanced Performance Performance Performance Benefit
Earnings Death Death Income Benefit Combination
Death Benefit Benefit Benefit Benefit Option Combination Option
Option (EEDBO) Option and Option Option
the EEDBO
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
Mortality and Expense Risk 1.45% 1.58% 1.58% 1. 58% 1.69% 1.69%
Charge
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
Administrative Expense Charge 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
Total Variable Account Annual
Expenses 1.55% 1.68% 1.68% 1.68% 1.79% 1.79%
------------------------------ --------------- -------------- -------------- --------------- -------------- --------------
For Contracts Issued After December 8, 2000 or Contracts Issued Prior to December 8, 2000 with New Options
Variable Account Annual Expenses
(As A Percentage Of Average Daily Net Asset Value
Deducted From Each Variable Sub-Account)
------------------------------- -------------- -------------- --------------- -------------- --------------
With the With the With the With the
Basic Performance Death Benefit Income Income and
Contract Death Combination Benefit Death Benefit
Benefit Option Combination Combination
Option Option 2 Option 2
------------------------------- -------------- -------------- --------------- -------------- --------------
------------------------------- -------------- -------------- --------------- -------------- --------------
Mortality and Expense Risk 1.25% 1.38% 1.49% 1.55% 1.75%
Charge
------------------------------- -------------- -------------- --------------- -------------- --------------
------------------------------- -------------- -------------- --------------- -------------- --------------
Administrative Expense Charge 0.10% 0.10% 0.10% 0.10% 0.10%
------------------------------- -------------- -------------- --------------- -------------- --------------
------------------------------- -------------- -------------- --------------- -------------- --------------
Total Variable Account Annual
Expenses 1.35% 1.48% 1.59% 1.65% 1.85%
------------------------------- -------------- -------------- --------------- -------------- --------------
Variable Account Annual Expenses - With the EEDBO
(As A Percentage Of Average Daily Net Asset Value
Deducted From Each Variable Sub-Account)
------------------------------- -------------- -------------- --------------- -------------- --------------
Basic
Contract With the With the With the With the
With the Performance Death Benefit Income Income and
Enhanced Death Combination Benefit Death Benefit
Earnings Benefit Option and Combination Combination
Death Option and the EEDBO Option 2 and Option 2 and
Benefit the EEDBO the EEDBO the EEDBO
Option
(EEDBO)
------------------------------- -------------- -------------- --------------- -------------- --------------
------------------------------- -------------- -------------- --------------- -------------- --------------
Mortality and Expense Risk 1.45% 1.58% 1.69% 1.75% 1.95%
Charge
------------------------------- -------------- -------------- --------------- -------------- --------------
------------------------------- -------------- -------------- --------------- -------------- --------------
Administrative Expense Charge 0.10% 0.10% 0.10% 0.10% 0.10%
------------------------------- -------------- -------------- --------------- -------------- --------------
------------------------------- -------------- -------------- --------------- -------------- --------------
Total Variable Account Annual
Expenses 1.55% 1.68% 1.79% 1.85% 2.05%
------------------------------- -------------- -------------- --------------- -------------- --------------
</TABLE>
Page 10: Replace "Example 1" with the following:
EXAMPLE 1
The example below shows the dollar amount of expenses that you would
bear directly or indirectly if you:
o invested $1,000 in a Variable Sub-Account,
o earned a 5% annual return on your investment,
o surrendered your Contract or you began receiving income payments for a
specified period of less than 120 months at the end of each time period,
o elected the Enhanced Earnings Death Benefit Option, and
o elected the Income and Death Benefit Combination Option 2.
THE EXAMPLE ASSUMES THAT ANY PORTFOLIO EXPENSE WAIVERS OR REIMBURSEMENT
ARRANGEMENTS DESCRIBED IN THE FOOTNOTES ABOVE ARE IN EFFECT FOR THE TIME
PERIODS PRESENTED BELOW. THE EXAMPLE DOES NOT INCLUDE ANY TAXES OR TAX
PENALTIES YOU MAY BE REQUIRED TO PAY IF YOU SURRENDER YOUR CONTRACT.
<TABLE>
<CAPTION>
1 YEARS 3 YEARS 5 YEARS 10 YEARS
------- ------- ------- --------
<S> <C> <C> <C> <C>
AIM CAPITAL APPRECIATION $72 $114 $160 $319
AIM GROWTH $72 $114 $160 $319
AIM VALUE $72 $115 $161 $322
ALLIANCE GROWTH $76 $126 $179 $356
ALLIANCE GROWTH AND INCOME $74 $122 $172 $342
ALLIANCE PREMIER GROWTH $77 $131 $188 $372
MSDW AGGRESSIVE EQUITY $69 $108 $149 $298
MSDW CAPITAL GROWTH $71 $114 $159 $318
MSDW COMPETITIVE EDGE $70 $109 $151 $302
MSDW DIVIDEND GROWTH $69 $108 $149 $298
MSDW EQUITY $69 $108 $149 $297
MSDW EUROPEAN GROWTH $75 $124 $175 $349
MSDW GLOBAL DIVIDEND GROWTH $73 $117 $165 $329
MSDW HIGH YIELD $69 $108 $150 $299
MSDW INCOME BUILDER $72 $117 $164 $327
MSDW MONEY MARKET $69 $108 $149 $298
MSDW PACIFIC GROWTH $79 $135 $194 $384
MSDW QUALITY INCOME PLUS $69 $108 $149 $298
MSDW S&P 500 INDEX $69 $107 $147 $294
MSDW SHORT-TERM BOND $70 $111 $154 $308
MSDW STRATEGIST $69 $108 $149 $298
MSDW UTILITIES $71 $113 $157 $313
MSDW EMERGING MARKETS EQUITY $82 $146 $212 $417
MSDW EQUITY GROWTH $73 $118 $166 $330
MSDW INTERNATIONAL MAGNUM $76 $127 $181 $360
MSDW MID-CAP VALUE $75 $124 $176 $350
MSDW U.S. REAL ESTATE $75 $126 $178 $354
PUTNAM GROWTH AND INCOME $71 $112 $156 $311
PUTNAM INTERNATIONAL GROWTH $76 $128 $182 $361
PUTNAM VOYAGER $71 $114 $159 $318
VAN KAMPEN EMERGING GROWTH $73 $118 $166 $330
INFORMATION FUND $72 $116 $162 $323
</TABLE>
Page 11: Replace "Example 2" with the following:
EXAMPLE 2
Same assumptions as Example 1 above, except that you decided not to
surrender your Contract, or you began receiving income payments (for at
least 120 months if under an Income Plan with a specified period), at the
end of each period.
<TABLE>
<CAPTION>
1 YEARS 3 YEARS 5 YEARS 10 YEARS
------- ------- ------- --------
<S> <C> <C> <C> <C>
AIM CAPITAL APPRECIATION $29 $89 $151 $319
AIM GROWTH $29 $89 $151 $319
AIM VALUE $29 $90 $153 $322
ALLIANCE GROWTH $33 $101 $171 $356
ALLIANCE GROWTH AND INCOME $31 $96 $163 $342
ALLIANCE PREMIER GROWTH $35 $106 $179 $372
MSDW AGGRESSIVE EQUITY $27 $82 $141 $298
MSDW CAPITAL GROWTH $29 $89 $151 $318
MSDW COMPETITIVE EDGE $27 $84 $143 $302
MSDW DIVIDEND GROWTH $27 $82 $141 $298
MSDW EQUITY $27 $82 $140 $297
MSDW EUROPEAN GROWTH $32 $98 $167 $349
MSDW GLOBAL DIVIDEND GROWTH $30 $92 $156 $329
MSDW HIGH YIELD $27 $83 $141 $299
MSDW INCOME BUILDER $30 $91 $155 $327
MSDW MONEY MARKET $27 $82 $141 $298
MSDW PACIFIC GROWTH $36 $110 $186 $384
MSDW QUALITY INCOME PLUS $27 $82 $141 $298
MSDW S&P 500 INDEX $26 $81 $139 $294
MSDW SHORT-TERM BOND $28 $86 $146 $308
MSDW STRATEGIST $27 $82 $141 $298
MSDW UTILITIES $28 $87 $148 $313
MSDW EMERGING MARKETS EQUITY $40 $121 $203 $417
MSDW EQUITY GROWTH $30 $93 $157 $330
MSDW INTERNATIONAL MAGNUM $33 $102 $173 $360
MSDW MID-CAP VALUE $32 $99 $167 $350
MSDW U.S. REAL ESTATE $33 $100 $170 $354
PUTNAM GROWTH AND INCOME $28 $86 $147 $311
PUTNAM INTERNATIONAL GROWTH $34 $102 $173 $361
PUTNAM VOYAGER $29 $89 $151 $318
VAN KAMPEN EMERGING GROWTH $30 $93 $157 $330
INFORMATION FUND $29 $90 $153 $323
</TABLE>
Replace the paragraph following "Example 2" with the following:
PLEASE REMEMBER THAT YOU ARE LOOKING AT EXAMPLES AND NOT A REPRESENTATION
OF PAST OR FUTURE EXPENSES. YOUR ACTUAL EXPENSES MAY BE LOWER OR GREATER
THAN THOSE SHOWN ABOVE. SIMILARLY, YOUR RATE OF RETURN MAY BE LOWER OR
GREATER THAN 5%, WHICH IS NOT GUARANTEED. THE ABOVE EXAMPLES ASSUME THE
ELECTION OF BOTH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE INCOME
AND DEATH BENEFIT COMBINATION OPTION 2, WITH A MORTALITY AND EXPENSE RISK
CHARGE OF 1.95%. IF THOSE OPTIONS WERE NOT ELECTED, THE EXPENSE FIGURES
SHOWN ABOVE WOULD BE SLIGHTLY LOWER. TO REFLECT THE CONTRACT MAINTENANCE
CHARGE IN THE EXAMPLES, WE ESTIMATED AN EQUIVALENT PERCENTAGE CHARGE, BASED
UPON AN ASSUMED AVERAGE CONTRACT SIZE OF $54,945.
Page 15: Add the following to the third paragraph, as amended by the previous
Supplement under the section entitled "Accumulation Unit Values:"
Finally, we determine five additional sets of Accumulation Unit Values
(sets 6-10) that reflect the cost of the Enhanced Earnings Death Benefit
Option when selected alone and when selected along with each of the other
death or income benefit options.
Page 21: Replace the first sentence of the first paragraph under the section
entitled "Mortality and Expense Risk Charge" with the following:
We deduct a mortality and expense risk charge daily at an annual rate of
1.25% of the average daily net assets you have invested in the Variable
Sub-Accounts (1.38% if you also select the Enhanced Death Benefit Option,
the Performance Death Benefit Option, or the Performance Income Benefit
Option, 1.49% if you select the Death Benefit Combination Option or the
Performance Benefit Combination Option, 1.55% if you also select the Income
Benefit Combination Option 2, and 1.75% if you also select the Income and
Death Benefit Combination Option 2). If you select the Enhanced Earnings
Death Benefit Option, we deduct a mortality and expense risk charge daily
at an annual rate of 1.45% of average daily net assets you have invested in
the Variable Sub-Accounts (1.58% if you also select the Enhanced Death
Benefit Option, the Performance Death Benefit Option, or the Performance
Income Benefit Option, 1.69% if you also select the Death Benefit
Combination Option or the Performance Benefit Combination Option, 1.75% if
you also select the Income Benefit Combination Option 2, or 1.95% if you
also select the Income and Death Benefit Combination Option 2).
Page 26: Replace the first paragraph under "Death Benefit Options" with the
following:
The Enhanced Death Benefit, the Performance Death Benefit, the Performance
Benefit Combination, the Death Benefit Combination, the Income and Death
Benefit Combination Option 2, and the Enhanced Earnings Death Benefit
Option, are optional death benefits that you may elect. If the Contract
owner is a natural person, these death benefit options apply only on the
death of the Contract owner. If the Contract owner is not a natural person,
these options apply only on the death of the Annuitant. For Contracts with
a death benefit option, the death benefit will be the greater of Death
Benefit Amounts (1) through (3) above, or (4) the death benefit option you
selected. For Contracts with the Enhanced Earnings Death Benefit Option,
the death benefit will be increased as described on page __ below. The
death benefit options may not be available in all states.
Page 26: Insert after the last paragraph under "Death Benefit Options:"
ENHANCED EARNINGS DEATH BENEFIT OPTION.
You may elect the Enhanced Earnings Death Benefit Option alone or together
with any other death and/or income benefit option offered under the
Contract. Under the Enhanced Earnings Death Benefit Option, if the oldest
Contract owner (or the Annuitant if the Contract owner is a non-natural
person) is age 69 or younger on the date we issue the rider for this option
("Rider Date"), the death benefit is increased by:
o 40% of the lesser of the In-Force Premium or Death Benefit Earnings.
If the oldest Contract owner (or the Annuitant if the Contract owner is a
non-natural person) is between the ages of 70 and 79 on the Rider Date, the
death benefit is increased by:
o 25% of the lesser of the In-Force Premium or Death Benefit Earnings.
For purpose of calculating the Enhanced Earnings Death Benefit, the
following definitions apply:
In-Force Premium equals the Contract Value on the Rider Date plus all
purchase payments after the Rider Date less the sum of all
Excess-of-Earnings Withdrawals after the Rider Date. If the Rider Date is
the same as the Issue Date, then the Contract Value on the Rider Date is
equal to your initial purchase payment.
Death Benefit Earnings equal the Contract Value minus the In-Force Premium.
The Death Benefit Earnings amount will never be less than zero.
An Excess-of-Earnings Withdrawal is the amount of a withdrawal which is in
excess of the Death Benefit Earnings in the Contract immediately prior to
the withdrawal.
We will calculate the Enhanced Earnings Death Benefit Option as of the date
we receive Due Proof of Death. We will pay the Enhanced Earnings Death
Benefit with the death benefit as described under "Death Benefit Payments"
below.
The value of the Enhanced Earnings Death Benefit depends largely on the
amount of earnings that accumulate under your Contract. If you expect to
withdraw the earnings from your Contract Value, electing the Enhanced
Earnings Death Benefit Option may not be appropriate. For purposes of
calculating the Enhanced Earnings Death Benefit, earnings are considered to
be withdrawn first before purchase payments. Your Financial Advisor can
help you decide if the Enhanced Earnings Death Benefit Option is right for
you.
For examples of how the death benefit is calculated under the Enhanced
Earnings Death Benefit Option, see Appendix B.
Page 27: Insert the following after the fourth sentence of the fourth paragraph
under "Death Benefit Payments":
If the Enhanced Earnings Death Benefit Option has been elected, on the date
the contract is continued, the Rider Date for this Option is reset to the
date the contract is continued. For purposes of calculating future death
benefits, your spouse's age on this new Rider date of will be used to
determine applicable death benefit amounts.
Page __: Insert the following as Appendix B:
CALCULATION OF ENHANCED EARNINGS DEATH BENEFIT
EXAMPLE 1. In this example, assume that the oldest Owner is age 65 at the
time the Contract is issued and elects the Enhanced Earnings Death Benefit
Option when the Contract is issued. The Owner makes an initial purchase
payment of $100,000. After four years, the Owner dies. On the date
Northbrook receives Due Proof of Death, the Contract Value is $125,000.
Prior to his death, the Owner did not make any additional purchase payments
or take any withdrawals.
Excess-of-Earnings Withdrawals = $0 In-Force Premium =
$100,000 ($100,000 + $0 - $0) Death Benefit Earnings = $25,000
($125,000 - $100,000) Enhanced Earnings Death Benefit = 40% x
$25,000 = $10,000.
Since Death Benefit Earnings are less than In-Force Premium, the Death
Benefit Earnings are used to compute the Enhanced Earnings Death Benefit
amount.
EXAMPLE 2. In the second example, assume the same facts as above, except
that the Owner has taken a withdrawal of $10,000 during the second year of
the Contract. At the time the withdrawal is taken, the Contract Value is
$105,000. Here, $5,000 of the withdrawal is in excess of the Death Benefit
Earnings at the time of the withdrawal. The Contract Value on the date
Northbrook receives due proof of death will be assumed to be $114,000.
Excess of Earnings Withdrawals = $5,000 ($10,000 - $5,000)
In-Force Premium = $95,000 ($100,000 + $0 - $5,000) Death
Benefit Earnings = $19,000 ($114,000 - $95,000) Enhanced
Earnings Death Benefit = 40% x $19,000 = $7,600.
Since Death Benefit Earnings are less than In-Force Premium, the Death
Benefit Earnings are used to compute the Enhanced Earnings Death Benefit
amount.
EXAMPLE 3. This third example is intended to illustrate the effect of
adding the Enhanced Earnings Death Benefit Option after the Contract has
been issued and the effect of later purchase payments. In this example,
assume that the oldest Owner is age 75 at the time the Enhanced Earnings
Death Benefit is elected. At the time the Contract is issued, the Owner
makes a purchase payment of $100,000. After two years pass, the Owner
elects to add the Enhanced Earnings Death Benefit Option. On the date this
Option is added, the Contract Value is $110,000. Two years later, the Owner
withdraws $50,000. Immediately prior to the withdrawal, the Contract Value
is $130,000. Another two years later, the Owner makes an additional
purchase payment of $40,000. A year later, the owner dies with a Contract
Value of $140,000 on the date we receive Due Proof of Death.
Excess of Earnings Withdrawals = $30,000 ($50,000 - $20,000)
In-Force Premium = $120,000 ($110,000 + $40,000 - $30,000)
Death Benefit Earnings = $20,000 ($140,000 - $120,000)
Enhanced Earnings Death Benefit = 25% of $20,000 = $5,000.
In this example, In-Force Premium is the Contract Value on the date the
Rider was issued plus all later withdrawals and minus Excess-of-Earnings
withdrawals. Since Death Benefit Earnings are less than In-Force Premium,
the Death Benefit Earnings are used to compute the Enhanced Earnings Death
Benefit amount.
PART B
NORTHBROOK LIFE INSURANCE COMPANY
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
SUPPLEMENT, DATED DECEMBER 8, 2000, TO THE
MORGAN STANLEY DEAN WITTER VARIABLE ANNUITY II
STATEMENT OF ADDITIONAL INFORMATION DATED MAY 2, 2000
This supplement amends the statement of additional information, dated May 2,
2000, for the Morgan Stanley Dean Witter Variable Annuity II Contracts as
follows:
Under the section entitled "Standardized Total Returns", add the following
separate paragraph immediately after the sixth paragraph:
Contracts with the Enhanced Earnings Death Benefit Option were first
offered to the public as of December 8, 2000. The Variable Sub-Accounts
were available for investment prior to that date. Accordingly, performance
figures for Variable Sub-Accounts for periods prior to the availability of
the Enhanced Earnings Death Benefit Option reflect the historical
performance of the Variable Sub-Accounts, adjusted to reflect the current
charge for such features as if they had been available throughout the
periods shown, as well as the withdrawal and contract maintenance charge.
Add the following tables to the performance tables under "Standardized Total
Returns":
[Performance information to be provided in subsequent amendment.]
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION)
<TABLE>
<CAPTION>
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND EITHER THE ENHANCED DEATH
BENEFIT OPTION, THE PERFORMANCE DEATH BENEFIT OPTION, OR THE PERFORMANCE INCOME
BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND EITHER THE PERFORMANCE
DEATH BENEFIT OPTION OR THE DEATH BENEFIT COMBINATION OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE INCOME BENEFIT COMBINATION OPTION 2)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
</TABLE>
Add the following to the seventh paragraph under "Non-Standardized Total
Returns":
Contracts with the Enhanced Earnings Death Benefit Option were first
offered to the public as of __________, 2000. The Variable Sub-Accounts
were available for investment prior to that date. Accordingly, performance
figures for Variable Sub-Accounts for periods prior to the availability of
the Enhanced Earnings Death Benefit Option reflect the historical
performance of the Variable Sub-Accounts, adjusted to reflect the current
charge for this feature as if it had been available throughout the periods
shown, excluding the withdrawal charge but including the contract
maintenance charge.
Add the following tables to the performance tables under "Non-Standardized Total
Returns":
[Performance information to be provided in subsequent amendment.]
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION)
<TABLE>
<CAPTION>
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND EITHER THE ENHANCED DEATH
BENEFIT OPTION, THE PERFORMANCE DEATH BENEFIT OPTION, OR THE PERFORMANCE INCOME
BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND EITHER THE PERFORMANCE
DEATH BENEFIT OPTION OR THE DEATH BENEFIT COMBINATION OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE INCOME BENEFIT
COMBINATION OPTION 2)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE INCOME AND DEATH
BENEFIT COMBINATION OPTION 2)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
</TABLE>
Replace the second paragraph under "Adjusted Historical Total Returns" with the
following:
The adjusted historical total returns for the Variable Sub-Accounts for the
periods ended December 31, 1999 are set out below. No adjusted historical
total returns are shown for the Money Market Variable Sub-Account. Where
the returns included in the following tables give effect to the Enhanced
Earnings Death Benefit Option, the performance figures have been adjusted
to reflect the current charge for the feature as if that feature had been
available throughout the periods shown.
Add the following tables to the performance tables under "Adjusted Historical
Total Returns":
[Performance information to be provided in subsequent amendment.]
<TABLE>
<CAPTION>
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND EITHER THE ENHANCED DEATH
BENEFIT OPTION, THE PERFORMANCE DEATH BENEFIT OPTION, OR THE PERFORMANCE INCOME
BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND EITHER THE PERFORMANCE
DEATH BENEFIT OPTION OR THE DEATH BENEFIT COMBINATION OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE INCOME BENEFIT COMBINATION OPTION 2)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------
</TABLE>
PART C
Part C is hereby amended to include the following exhibits:
Item 24(b). EXHIBITS
(4)(f) Enhanced Earnings Death Benefit Rider
(9)(d) Opinion and Consent of General Counsel
(10)(a) Consent of Independent Auditors *
(10)(b) Consent of Outside Counsel *
(13)(d) Performance Data Calculations *
* To be included in subsequent amendment.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant has caused this Registration Statement, as amended, to be
signed on its behalf by the undersigned, thereunto duly authorized, all in the
Township of Northbrook, State of Illinois, on the 6th day of November, 2000.
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
(REGISTRANT)
BY: NORTHBROOK LIFE INSURANCE COMPANY
(DEPOSITOR)
By: /s/MICHAEL J. VELOTTA
--------------------------
Michael J. Velotta
Vice President, Secretary and
General Counsel
As required by the Securities Act of 1933, this Registration Statement, as
amended, has been duly signed below by the following Directors and Officers of
Northbrook Life Insurance Company on the 6th day of November, 2000.
<TABLE>
<CAPTION>
<S> <C>
*/THOMAS J. WILSON, II Director, President and Chief Executive
---------------------- Officer
Thomas J. Wilson, II
/s/ MICHAEL J. VELOTTA Director, Vice President, Secretary and
------------------------------ General Counsel
Michael J. Velotta
*/MARGARET G. DYER Director
----------------------
Margaret G. Dyer
*/ MARLA G. FRIEDMAN Director and Vice President
----------------------
Marla G. Friedman
*/JOHN C. LOUNDS Director
----------------------
John C. Lounds
*/J. KEVIN McCARTHY Director
----------------------
J. Kevin McCarthy
*/STEVEN C. VERNEY Director
----------------------
Steven C. Verney
*/SAMUEL H. PILCH Vice President and Controller
----------------------
Samuel H. Pilch
*/CASEY J. SYLLA Chief Investment Officer
----------------------
Casey J. Sylla
</TABLE>
*/ By Michael J. Velotta, pursuant to Power of Attorney, filed in Registrant's
Registration Statement (File no. 333-43086).
<PAGE>
EXHIBIT LIST
-------------------------------------------------------------------------------
The following exhibits are filed herewith:
-------------------------------------------------------------------------------
EXHIBIT NO. DESCRIPTION
(4)(f) Enhanced Earnings Death Benefit Rider
(9)(d) Opinion and Consent of General Counsel
(10)(a) Consent of Independent Auditors *
(10)(b) Consent of Outside Counsel *
(13)(d) Performance Data Calculations *
* To be filed by subsequent amendment.
