As filed with the Securities and Exchange Commission on November 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. 29
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 36
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
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.
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 3 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 _________________, TO THE
MORGAN STANLEY DEAN WITTER VARIABLE ANNUITY 3
PROSPECTUS DATED MAY 2, 2000
This supplement describes the Enhanced Earnings Death Benefit Option ("new
Option") now available with the Morgan Stanley Dean Witter Variable Annuity 3
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.
Please keep this supplement for future reference together with your prospectus.
All capitalized terms have the same meaning as those included in the prospectus.
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 1.60% of average
daily net assets (1.73% if you also select the Performance Death
Benefit Option, 1.84% if you select the Death Benefit Combination
Option, 1.90% if you select the Income Benefit Combination Option
2, or 2.10% if you select the Income and Death Benefit Combination
Option 2)
Page 7: Replace the section entitled "Variable Account Annual Expenses," with
the following table:
<TABLE>
<CAPTION>
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
------------------------------- -------------- -------------- --------------- -------------- --------------
------------------------------- -------------- -------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
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%
------------------------------- -------------- -------------- --------------- -------------- --------------
<PAGE>
------------------------------- -------------- -------------- --------------- -------------- --------------
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 1.50% 1.63% 1.74% 1.80% 2.00%
Charge
------------------------------- -------------- -------------- --------------- -------------- --------------
------------------------------- -------------- -------------- --------------- -------------- --------------
Administrative Expense Charge 0.10% 0.10% 0.10% 0.10% 0.10%
------------------------------- -------------- -------------- --------------- -------------- --------------
------------------------------- -------------- -------------- --------------- -------------- --------------
Total Variable Account Annual
Expenses 1.60% 1.73% 1.84% 1.90% 2.10%
------------------------------- -------------- -------------- --------------- -------------- --------------
</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 VARIABLE INSURANCE FUNDS
AIM V.I. Capital Appreciation $71 $123 $168 $319
AIM V.I. Growth $71 $123 $168 $319
AIM V.I. Value $72 $124 $170 $322
ALLIANCE VARIABLE PRODUCTS SERIES FUNDS
ALLIANCE Growth $75 $135 $188 $356
ALLIANCE Growth and Income $74 $130 $180 $342
ALLIANCE Premier Growth $77 $140 $196 $372
MORGAN STANLEY DEAN WITTER V.I.S.
Money Market $72 $124 $170 $323
Quality Income Plus $72 $124 $170 $323
Short-term Bond $73 $127 $175 $333
High Yield $72 $124 $171 $324
Utilities $73 $129 $178 $337
Income Builder $75 $133 $185 $351
Dividend Growth $72 $124 $170 $323
Capital Growth $74 $130 $180 $342
Global Dividend Growth $75 $133 $186 $353
European Growth $77 $140 $196 $372
Pacific Growth $81 $151 $215 $407
Equity $72 $124 $170 $322
S&P 500 Index $71 $123 $168 $319
Competitive Edge "Best Ideas" $72 $125 $172 $327
Strategist $72 $124 $170 $323
Aggressive Equity $72 $124 $170 $323
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.
U.S. Real Estate $75 $134 $187 $354
International Magnum $76 $136 $190 $360
Equity Growth $73 $126 $174 $331
Emerging Markets Equity $82 $155 $220 $417
Mid-cap Value $75 $133 $184 $350
PUTNAM VARIABLE TRUST
Putnam VT Growth & Income $71 $120 $164 $311
Putnam VT International Growth $76 $136 $190 $361
Putnam VT Voyager $71 $123 $168 $318
VAN KAMPEN LIFE INVESTMENT TRUST
Emerging Growth $73 $126 $174 $331
</TABLE>
<PAGE>
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 VARIABLE INSURANCE FUND
AIM V.I. Capital AppreciatioN $29 $89 $151 $319
AIM V.I. Growth $29 $89 $151 $319
AIM V.I. Value $29 $90 $153 $322
ALLIANCE VARIABLE PRODUCTS SERIES FUNDS
ALLIANCE Growth $33 $101 $171 $356
ALLIANCE Growth and Income $31 $96 $163 $342
ALLIANCE Premier GrowtH $35 $106 $179 $372
MORGAN STANLEY DEAN WITTER V.I.S.
Money Market $29 $90 $153 $323
Quality Income PluS $29 $90 $153 $323
Short-term Bond $30 $93 $158 $333
High Yield $30 $90 $154 $324
Utilities $31 $95 $161 $337
Income Builder $32 $99 $168 $351
Dividend Growth $29 $90 $153 $323
Capital Growth $31 $96 $163 $342
Global Dividend Growth $33 $99 $169 $353
European Growth $35 $106 $179 $372
Pacific Growth $39 $117 $198 $407
Equity $29 $90 $153 $322
S&P 500 Index $29 $89 $151 $319
Competitive Edge "Best Ideas" $30 $91 $155 $327
Strategist $29 $90 $153 $323
Aggressive Equity $29 $90 $153 $323
THE UNIVERSAL INSTITUTIONAL FUND, INC.
U.S. Real Estate $33 $100 $170 $354
International Magnum $33 $102 $173 $360
Equity Growth $30 $92 $157 $331
Emerging Markets Equity $40 $121 $203 $417
Mid-cap Value $32 $99 $167 $350
PUTNAM VARIABLE TRUST
Putnam VT Growth & Income $28 $86 $147 $311
Putnam VT International Growth $34 $102 $173 $361
Putnam VT Voyager $29 $89 $151 $318
VAN KAMPEN LIFE INVESTMENT TRUST
Emerging Growth $30 $92 $157 $331
</TABLE>
<PAGE>
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 2.00%. 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 $45,000.
Page 16: Add the following to the third paragraph under the section entitled
"Accumulation Unit Value:"
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 four death or income benefit options.
Page 22: 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 select the Performance Death
Benefit Option, 1.49% if you select the Death Benefit Combination
Option, 1.55% if you select the Income Benefit Combination Option 2,
and 1.75% if you 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 1.50% of
average daily net assets you have invested in the Variable Sub-Accounts
(1.63% if you also select the Performance Death Benefit Option, 1.74%
if you select the Death Benefit Combination Option, 1.80% if you select
the Income Benefit Combination Option 2, or 2.00% if you select the
Income and Death Benefit Combination Option 2).
<PAGE>
Page 28: Replace the first paragraph under "Death Benefit Options" with the
following:
The Performance Death Benefit Option, Death Benefit Combination
Option, Income and Death Benefit Combination Option 2, and Enhanced
Earnings Death Benefit Option are optional 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 the Performance Death Benefit
Option, Death Benefit Combination Option, and Income and Death Benefit
Combination Option 2, 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>
Page 28: Insert the following after the seventh 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 A.
<PAGE>
Page 29: Insert the following after the second sentence of the second paragraph:
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 contrast is continued. For purposes of
calculating future death benefits, you spouse's age on this new Rider
date will be used to determine applicable death benefit amounts.
Page 34: Insert the following as Appendix A:
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.
<PAGE>
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.
<PAGE>
PART B
NORTHBROOK LIFE INSURANCE COMPANY
NORTHBROOK VARIABLE ANNUITY ACCOUNT II
SUPPLEMENT, DATED ____________________, TO THE
MORGAN STANLEY DEAN WITTER VARIABLE ANNUITY 3
STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 2000
This supplement amends the statement of additional information, dated May 1,
2000, for the Morgan Stanley Dean Witter Variable Annuity 3 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 ________, 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":
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Van Kampen Emerging Growth 96.39% N/A 61.23%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Emerging Markets 86.89% N/A 15.89%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Equity Growth 32.65% N/A 17.50%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
International Magnum 18.65% N/A 8.19%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
U.S. Real Estate -7.53% N/A -12.13%
--------------------------------------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE PERFORMANCE DEATH
BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Van Kampen Emerging Growth 96.13% N/A 61.02%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Emerging Markets 86.64% N/A 15.73%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Equity Growth 32.47% N/A 17.34%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
International Magnum 18.49% N/A 8.04%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
U.S. Real Estate -7.65% N/A -12.25%
-------------------------------------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE DEATH BENEFIT
COMBINATION OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------------------------------
-------------------------------------------------------------------
Van Kampen Emerging Growth 95.91% N/A 60.84%
-------------------------------------------------------------------
-------------------------------------------------------------------
Emerging Markets 86.43% N/A 15.60%
-------------------------------------------------------------------
-------------------------------------------------------------------
Equity Growth 32.32% N/A 17.21%
-------------------------------------------------------------------
-------------------------------------------------------------------
International Magnum 18.36% N/A 7.92%
-------------------------------------------------------------------
-------------------------------------------------------------------
U.S. Real Estate -7.76% N/A -12.36%
-------------------------------------------------------------------
(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
----------------------------------------------------------------------
----------------------------------------------------------------------
Van Kampen Emerging Growth 95.79% N/A 37.41%
----------------------------------------------------------------------
----------------------------------------------------------------------
Emerging Markets 86.32% N/A 8.66%
----------------------------------------------------------------------
----------------------------------------------------------------------
Equity Growth 32.24% N/A 26.76%
----------------------------------------------------------------------
----------------------------------------------------------------------
International Magnum 18.28% N/A 9.87%
----------------------------------------------------------------------
----------------------------------------------------------------------
U.S. Real Estate -7.82% N/A -3.29%
----------------------------------------------------------------------
(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
--------------------------------------------------------------------
--------------------------------------------------------------------
Van Kampen Emerging Growth 95.39% N/A 60.41%
--------------------------------------------------------------------
--------------------------------------------------------------------
Emerging Markets 85.94% N/A 15.29%
--------------------------------------------------------------------
--------------------------------------------------------------------
Equity Growth 31.96% N/A 16.89%
--------------------------------------------------------------------
--------------------------------------------------------------------
International Magnum 18.04% N/A 7.63%
--------------------------------------------------------------------
--------------------------------------------------------------------
U.S. Real Estate -8.01% N/A -12.60%
--------------------------------------------------------------------
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":
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------------------------------
-------------------------------------------------------------------
Van Kampen Emerging Growth 100.64% N/A 62.79%
-------------------------------------------------------------------
-------------------------------------------------------------------
Emerging Markets 91.14% N/A 17.97%
-------------------------------------------------------------------
-------------------------------------------------------------------
Equity Growth 36.90% N/A 19.55%
-------------------------------------------------------------------
-------------------------------------------------------------------
International Magnum 22.90% N/A 10.39%
-------------------------------------------------------------------
-------------------------------------------------------------------
U.S. Real Estate -3.28% N/A -9.31%
-------------------------------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE PERFORMANCE DEATH
BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------------------------------
-------------------------------------------------------------------
Van Kampen Emerging Growth 100.38% N/A 62.58%
-------------------------------------------------------------------
-------------------------------------------------------------------
Emerging Markets 90.89% N/A 17.81%
-------------------------------------------------------------------
-------------------------------------------------------------------
Equity Growth 36.72% N/A 19.40%
-------------------------------------------------------------------
-------------------------------------------------------------------
International Magnum 22.74% N/A 10.25%
-------------------------------------------------------------------
-------------------------------------------------------------------
U.S. Real Estate -3.40% N/A -9.43%
-------------------------------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE DEATH BENEFIT
COMBINATION OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------------------------------
-------------------------------------------------------------------
Van Kampen Emerging Growth 100.16% N/A 62.40%
-------------------------------------------------------------------
-------------------------------------------------------------------
Emerging Markets 90.68% N/A 17.68%
-------------------------------------------------------------------
-------------------------------------------------------------------
Equity Growth 36.57% N/A 19.27%
-------------------------------------------------------------------
-------------------------------------------------------------------
International Magnum 22.61% N/A 10.13%
-------------------------------------------------------------------
-------------------------------------------------------------------
U.S. Real Estate -3.51% N/A -9.53%
-------------------------------------------------------------------
(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
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Van Kampen Emerging Growth 100.04% N/A 37.57%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Emerging Markets 90.57% N/A 9.52%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Equity Growth 36.49% N/A 27.61%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
International Magnum 22.53% N/A 11.02%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
U.S. Real Estate -3.57% N/A -1.71%
-------------------------------------------------------------------------
(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
------------------------------------------------------------------------
-------------------------------------------------------------------------
Van Kampen Emerging Growth 99.64% N/A 61.98%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Emerging Markets 90.19% N/A 17.38%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Equity Growth 36.21% N/A 18.96%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
International Magnum 22.29% N/A 9.84%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
U.S. Real Estate -3.76% N/A -9.77%
-------------------------------------------------------------------------
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":
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AIM VARIABLE INSURANCE FUNDS
AIM V.I. Capital Appreciation 38.07% 22.72% 19.87%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AIM V.I. Growth 28.84% 25.68% 19.72%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AIM V.I. Value 23.59% 23.84% 20.23%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ALLIANCE VARIABLE PRODUCTS SERIES FUNDS
Alliance Growth 27.95% 28.87% 28.20%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Alliance Growth and Income 5.24% 21.53% 13.39%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Alliance Premier Growth N/A N/A 16.02%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
MORGAN STANLEY DEAN WITTER V.I.S.
Money Market -1.39% 2.95% 3.03%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Quality Income -10.32% 5.65% 5.81%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Short Term Bond N/A N/A -7.13%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
High Yield -7.39% 3.63% 6.31%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Utilities 6.40% 17.53% 12.15%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income Builder 0.85% N/A 7.54%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Dividend Growth -8.43% 16.33% 10.97%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital Appreciation 2.83% N/A 1.40%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital Growth 26.61% 21.80% 13.23%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Global Dividend Growth 8.30% 13.42% 11.09%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
European Growth 22.50% 22.44% 17.49%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Pacific Growth 58.81% -1.64% -3.03%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity 51.44% 33.12% 20.64%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
S&P 500 Index 13.25% N/A 15.37%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Competitive Edge "Best Ideas" 19.54% N/A 9.47%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Strategist 10.95% 13.92% 10.91%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Aggressive Equity N/A N/A 64.74%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUND, INC.
U.S. Real Estate -7.53% N/A -2.98%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
International Magnum 18.65% N/A 10.21%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity Growth 32.65% N/A 27.14%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Emerging Markets Equity 86.89% N/A 9.00%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Mid-Cap Value 14.13% N/A 21.07%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PUTNAM VARIABLE TRUST
Putnam VT Growth & Income -4.40% 17.05% 11.83%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Putnam VT International Growth 53.25% N/A 27.09%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Putnam VT Voyager 51.26% 29.13% 19.89%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
VAN KAMPEN LIFE INVESTMENT TRUST
Emerging Growth 96.39% N/A 37.83%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE PERFORMANCE DEATH
BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
------------------------------------------------------------------------------
------------------------------------------------------------------------------
One Year 5 Year Inception
------------------------------------------------------------------------------
------------------------------------------------------------------------------
AIM VARIABLE INSURANCE FUNDS
AIM V.I. Capital Appreciation 37.89% 22.56% 19.71%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
AIM V.I. Growth 28.67% 25.51% 19.56%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
AIM V.I. Value 23.42% 23.67% 20.07%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
ALLIANCE VARIABLE PRODUCTS SERIES FUNDS
Alliance Growth 27.78% 28.70% 28.03%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Alliance Growth and Income 5.10% 21.37% 13.24%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Alliance Premier Growth N/A N/A 15.87%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
MORGAN STANLEY DEAN WITTER V.I.S.
Money Market -1.52% 2.82% 2.90%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Quality Income Plus -10.44% 5.51% 5.67%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Short Term Bond N/A N/A -7.26%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
High Yield -7.52% 3.49% 6.17%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Utilities 6.26% 17.37% 12.01%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Income Builder 0.71% N/A 7.39%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Dividend Growth -8.55% 16.18% 10.82%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Capital Appreciation 2.81% N/A 1.31%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Capital Growth 26.44% 21.64% 13.08%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Global Dividend Growth 8.16% 13.28% 10.94%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
European Growth 22.33% 22.28% 17.34%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Pacific Growth 58.59% -1.77% -3.15%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Equity 51.24% 32.94% 20.48%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
S&P 500 Index 13.10% N/A 15.22%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Competitive Edge "Best Ideas" 19.38% N/A 9.32%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Strategist 10.80% 13.77% 10.77%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Aggressive Equity N/A N/A 64.52%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.
U.S. Real Estate -7.65% N/A -3.12%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
International Magnum 18.49% N/A 10.06%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Equity Growth 32.47% N/A 26.98%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Emerging Markets Equity 86.64% N/A 8.85%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Mid-Cap Value 13.98% N/A 20.91%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
PUTNAM VARIABLE TRUST
Putnam VT Growth & Income -4.53% 82.94% 11.69%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Putnam VT International Growth 53.05% N/A 26.93%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Putnam VT Voyager 51.06% 215.67% 19.74%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
VAN KAMPEN LIFE INVESTMENT TRUST
Emerging Growth 96.13% N/A 37.65%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
(WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE DEATH BENEFIT
COMBINATION OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
AIM VARIABLE INSURANCE FUNDS
AIM V.I. Capital Appreciation 37.73% 22.43% 19.58%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AIM V.I. Growth 28.52% 25.37% 19.43%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AIM V.I. Value 23.28% 23.54% 19.94%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ALLIANCE VARIABLE PRODUCTS SERIES FUNDS
Alliance Growth 27.63% 28.56% 27.89%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Alliance Growth and Income 4.97% 21.24% 13.12%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Alliance Premier Growth N/A N/A 15.73%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
MORGAN STANLEY DEAN WITTER V.I.S.
Money Market -1.64% 2.70% 2.78%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Quality Income Plus -10.55% 5.40% 5.55%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Short-Term Bond N/A N/A -7.36%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
High Yield -7.62% 3.38% 6.05%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Utilities 6.13% 17.24% 11.88%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income Builder 0.60% N/A 7.27%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Dividend Growth -8.66% 16.05% 10.70%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital Appreciation 2.83% N/A 1.40%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital Growth 26.29% 21.51% 12.96%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Global Dividend Growth 8.03% 13.15% 10.82%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
European Growth 22.20% 22.14% 17.21%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Pacific Growth 58.42% -1.88% -3.26%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity 51.07% 32.80% 20.35%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
S&P 500 Index 12.97% N/A 15.09%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Competitive Edge "Best Ideas" 19.24% N/A 9.20%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Strategist 10.68% 13.64% 10.65%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Aggressive Equity N/A N/A 64.33%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.
U.S. Real Estate -7.76% N/A -3.23%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
International Magnum 18.36% N/A 9.94%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity Growth 32.32% N/A 26.83%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Emerging Markets Equity 86.43% N/A 8.73%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Mid-Cap Value 13.85% N/A 20.77%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PUTNAM VARIABLE TRUST
Putnam VT Growth & Income -4.64% 16.76% 11.57%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Putnam VT International Growth 52.88% N/A 26.78%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Putnam VT Voyager 50.89% 28.82% 19.61%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
VAN KAMPEN LIFE INVESTMENT TRUST
Emerging Growth 95.91% N/A 37.50%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(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
-----------------------------------------------------------------------
-----------------------------------------------------------------------
AIM VARIABLE INSURANCE FUNDS
AIM V.I. Capital Appreciation 37.65% 22.35% 19.51%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
AIM V.I. Growth 28.44% 25.30% 19.36%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
AIM V.I. Value 23.21% 23.46% 19.87%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
ALLIANCE VARIABLE PRODUCTS SERIES FUNDS
Alliance Growth 27.55% 28.49% 27.82%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Alliance Growth and Income 4.91% 21.17% 13.05%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Alliance Premier Growth N/A N/A 15.66%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
MORGAN STANLEY DEAN WITTER V.I.S.
Money Market -1.70% 2.64% 2.72%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Quality Income Plus -10.60% 5.33% 5.49%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Short-Term Bond N/A N/A -7.42%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
High Yield -7.68% 3.32% 5.99%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Utilities 6.07% 17.17% 11.82%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Income Builder 0.54% N/A 7.21%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Dividend Growth -8.72% 15.98% 10.63%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Capital Appreciation 2.83% N/A 1.40%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Capital Growth 26.21% 21.43% 12.89%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Global Dividend Growth 7.96% 13.08% 10.75%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
European Growth 22.12% 22.07% 17.14%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Pacific Growth 58.32% -1.94% -3.32%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Equity 50.97% 32.72% 20.27%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
S&P 500 Index 12.90% N/A 15.02%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Competitive Edge "Best Ideas" 19.17% N/A 9.13%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Strategist 10.61% 13.58% 10.58%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Aggressive Equity N/A N/A 64.23%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.
U.S. Real Estate -7.82% N/A -3.29%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
International Magnum 18.28% N/A 9.87%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Equity Growth 32.24% N/A 26.76%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Emerging Markets Equity 86.32% N/A 8.66%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Mid-Cap Value 13.78% N/A 20.70%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
PUTNAM VARIABLE TRUST
Putnam VT Growth & Income -4.70% 16.69% 11.50%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Putnam VT International Growth 52.78% N/A 26.71%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Putnam VT Voyager 50.80% 28.75% 19.54%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
VAN KAMPEN LIFE INVESTMENT TRUST
Emerging Growth 95.79% N/A 37.41%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
(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
----------------------------------------------------------------------
----------------------------------------------------------------------
AIM VARIABLE INSURANCE FUNDS
AIM V.I. Capital Appreciation 37.36% 22.11% 17.82%
----------------------------------------------------------------------
----------------------------------------------------------------------
AIM V.I. Growth 28.18% 25.05% 17.68%
----------------------------------------------------------------------
----------------------------------------------------------------------
AIM V.I Value 22.95% 23.21% 18.14%
----------------------------------------------------------------------
----------------------------------------------------------------------
ALLIANCE VARIABLE PRODUCTS SERIES FUNDS
Alliance Growth 27.29% 28.23% 25.02%
----------------------------------------------------------------------
----------------------------------------------------------------------
Alliance Growth and Income 4.69% 20.92% 12.11%
----------------------------------------------------------------------
----------------------------------------------------------------------
Alliance Premier Growth N/A N/A 7.17%
----------------------------------------------------------------------
----------------------------------------------------------------------
MORGAN STANLEY DEAN WITTER V.I.S.
Money Market -1.90% 2.43% 2.52%
----------------------------------------------------------------------
----------------------------------------------------------------------
Quality Income Plus -10.79% 5.12% 5.28%
----------------------------------------------------------------------
----------------------------------------------------------------------
Short-Term Bond N/A N/A -7.62%
----------------------------------------------------------------------
----------------------------------------------------------------------
High Yield -7.87% 3.11% 5.78%
----------------------------------------------------------------------
----------------------------------------------------------------------
Utilities 5.85% 16.93% 11.59%
----------------------------------------------------------------------
----------------------------------------------------------------------
Income Builder 0.33% N/A 6.98%
----------------------------------------------------------------------
----------------------------------------------------------------------
Dividend Growth -8.91% 15.75% 10.41%
----------------------------------------------------------------------
----------------------------------------------------------------------
Capital Appreciation 2.83% N/A 1.40%
----------------------------------------------------------------------
----------------------------------------------------------------------
Capital Growth 25.95% 21.19% 12.66%
----------------------------------------------------------------------
----------------------------------------------------------------------
Global Dividend Growth 7.74% 12.85% 10.53%
----------------------------------------------------------------------
----------------------------------------------------------------------
European Growth 21.87% 21.82% 16.91%
----------------------------------------------------------------------
----------------------------------------------------------------------
Pacific Growth 57.99% -2.14% -3.52%
----------------------------------------------------------------------
----------------------------------------------------------------------
Equity 50.66% 32.45% 20.03%
----------------------------------------------------------------------
----------------------------------------------------------------------
S&P 500 Index 12.67% N/A 14.78%
----------------------------------------------------------------------
----------------------------------------------------------------------
Competitive Edge "Best Ideas" 18.92% N/A 8.90%
----------------------------------------------------------------------
----------------------------------------------------------------------
Strategist 10.38% 13.35% 10.36%
----------------------------------------------------------------------
----------------------------------------------------------------------
Aggressive Equity N/A N/A 63.89%
----------------------------------------------------------------------
----------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUND, INC.
U.S. Real Estate -8.01% N/A -3.49%
----------------------------------------------------------------------
----------------------------------------------------------------------
International Magnum 18.04% N/A 9.64%
----------------------------------------------------------------------
----------------------------------------------------------------------
Equity Growth 31.96% N/A 26.50%
----------------------------------------------------------------------
----------------------------------------------------------------------
Emerging Markets Equity 85.94% N/A 8.44%
----------------------------------------------------------------------
----------------------------------------------------------------------
Mid-Cap Value 13.54% N/A 18.07%
----------------------------------------------------------------------
----------------------------------------------------------------------
PUTNAM VARIABLE TRUST
Putnam VT Growth & Income -4.90% 16.46% 11.28%
----------------------------------------------------------------------
----------------------------------------------------------------------
Putnam VT International Growth 52.47% N/A 23.02%
----------------------------------------------------------------------
----------------------------------------------------------------------
Putnam VT Voyager 50.49% 28.49% 19.30%
----------------------------------------------------------------------
----------------------------------------------------------------------
VAN KAMPEN LIFE INVESTMENT TRUST
Emerging Growth 95.39% N/A 37.14%
----------------------------------------------------------------------
----------------------------------------------------------------------
<PAGE>
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 8th 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 8th 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
(13)(d) Performance Data Calculations
