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The MONYEquity Master
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Prospectus Portfolio
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Flexible Premium
Variable Universal Life
Insurance Policy
Issued by
The Mutual Life Insurance Company of New York
MONY Series Fund, Inc.
Enterprise Accumulation Trust
October 4, 1996
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PROSPECTUS
DATED OCTOBER 4, 1996
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
ISSUED BY
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
MONY VARIABLE ACCOUNT L
This prospectus describes a flexible premium variable universal life
insurance policy (individually, the "Policy," and collectively, the "Policies")
offered by The Mutual Life Insurance Company of New York (the "Company"). The
Policy, for so long as it remains in force, provides lifetime insurance
protection on the Insured named in the Policy through the Maturity Date. The
Policy is designed to provide maximum flexibility in connection with premium
payments and death benefits by permitting, subject to certain restrictions, the
frequency and amount of premium payments to vary and the death benefit payable
under the Policy to increase or decrease. A Policy may also be surrendered for
its Surrender Value.
The Company will pay the death proceeds when the Insured dies if the Policy
is still in force. The death proceeds will equal the death benefit, less any
Outstanding Debt reduced by any Unearned Loan Interest, and further reduced by
any charges due during the Grace Period. The Policy will remain in force as long
as the Cash Value less any Outstanding Debt remains positive. If at all times
during the first two Policy years, the sum of premiums paid less Partial
Surrenders taken (and their fees) is greater than or equal to the Minimum
Monthly Premium times the number of completed months this Policy has been in
force, the Policy and all Rider coverages will not lapse regardless of its Cash
Value less any Outstanding Debt.
The Policy permits the choice of two death benefit Options: under Option I,
the death benefit remains fixed at the Specified Amount chosen; under Option II,
the death benefit equals the Specified Amount plus Fund Value (under certain
circumstances the death benefit may be greater). Under Option II, the death
benefit will vary daily with the investment performance of the Subaccounts for
any Policy Owner who has allocated net premiums to the Variable Account. Under
either Option, for so long as the Policy remains in force, the death benefit
will never be less than the current Specified Amount.
The Policy also permits an owner of the Policy to obtain loans from the
Company in amounts up to 90% of the Cash Value of the Policy (less any
Outstanding Debt), and it permits an Owner to surrender a part of the Policy and
receive a part of the Surrender Value of the Policy.
Net premiums may be allocated at the Policy Owner's discretion to one or
more of the Subaccounts that comprise a separate account of the Company called
the MONY Variable Account L (the "Variable Account"), or to the Guaranteed
Interest Account of the Company. Any portion of a net premium allocated to one
or more of the Subaccounts is invested in the corresponding Portfolios of the
MONY Series Fund, Inc. (the "MONY Fund") or the Enterprise Accumulation Trust
(the "Accumulation Trust"). The available Portfolios of the MONY Fund currently
are: the Money Market Portfolio, the Government Securities Portfolio, the
Intermediate Term Bond Portfolio, and the Long Term Bond Portfolio. The
available Portfolios of the Accumulation Trust are: the Equity Portfolio, the
Small Cap Portfolio, the Managed Portfolio, the International Growth Portfolio,
and the High Yield Bond Portfolio. The Loan Account represents amounts set aside
as collateral for any Policy Debt.
To the extent that all or a portion of net premiums are allocated to the
Variable Account, the Fund Value under the Policy will vary based upon the
investment performance of the Subaccounts to which the Fund Value is allocated.
Net premiums allocated to the Guaranteed Interest Account are assets of the
General Account of the Company. The Fund Value in the Guaranteed Interest
Account will accrue interest at an interest rate that is guaranteed by the
Company. No minimum amount of Fund Value is guaranteed, except to the extent
premiums are allocated to the Guaranteed Interest Account.
A Policy may be returned during the Free Look Period (see "Right to Examine
a Policy -- Free Look Period," page 20), during which time net premium payments
allocated to the Variable Account will be invested in the Money Market
Subaccount.
It may not be advantageous to replace existing insurance with the Policy.
This prospectus generally describes only the portion of the Policy involving
the Variable Account. For a brief summary of the Guaranteed Interest Account,
see "The Guaranteed Interest Account," page 37.
In pursuing its investment objective, the High Yield Bond Subaccount
purchases shares of the High Yield Portfolio which may invest significantly in
lower rated bonds, commonly referred to as "Junk Bonds". Bonds of this type are
considered to be speculative with regard to the payment of interest and return
of principal. Investment in these types of securities have special risks and,
therefore, may not be suitable for all investors. Investors should carefully
assess the risks associated with allocating premium payments to this subaccount.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THIS PROSPECTUS IS ACCOMPANIED BY THE CURRENT PROSPECTUSES FOR THE MONY
SERIES FUND, INC. AND THE ENTERPRISE ACCUMULATION TRUST. THESE
PROSPECTUSES SHOULD BE READ CAREFULLY AND RETAINED FOR FUTURE
REFERENCE.
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THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
1740 BROADWAY
NEW YORK, NEW YORK 10019
1-800-487-6669
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TABLE OF CONTENTS
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TABLE OF CONTENTS..................................................................... i
IMPORTANT TERMS....................................................................... 1
SUMMARY OF THE POLICY................................................................. 3
Purpose of the Policy............................................................... 3
Policy Values....................................................................... 3
The Death Benefit................................................................... 3
Premium Features.................................................................... 4
Allocation Options.................................................................. 4
Transfer of Fund Value.............................................................. 5
Policy Loans........................................................................ 5
Full Surrender...................................................................... 5
Partial Surrender................................................................... 5
Preferred Partial Surrender......................................................... 5
Free Look Period.................................................................... 5
Grace Period and Lapse.............................................................. 6
Charges and Deductions.............................................................. 6
Deductions from Premiums......................................................... 6
Daily Deduction from the Variable Account........................................ 6
Deductions from Fund Value....................................................... 6
Fund Charge...................................................................... 7
Transaction and Other Charges.................................................... 8
Tax Treatment of Increases in Fund Value............................................ 8
Tax Treatment of Death Benefit...................................................... 8
The Guaranteed Interest Account..................................................... 8
Contacting the Company.............................................................. 8
INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT................................ 8
The Mutual Life Insurance Company of New York....................................... 8
MONY Variable Account L............................................................. 9
The Funds........................................................................... 9
Purchase of Portfolio Shares by the Variable Account................................ 10
The Money Market Portfolio....................................................... 11
The Government Securities Portfolio.............................................. 11
The Intermediate Bond Portfolio.................................................. 11
The Long Term Bond Portfolio..................................................... 11
The Equity Portfolio............................................................. 11
The Small Cap Portfolio.......................................................... 11
The Managed Portfolio............................................................ 12
The International Growth Portfolio............................................... 12
The High Yield Bond Portfolio.................................................... 12
THE POLICY............................................................................ 12
Application for a Policy............................................................ 12
Temporary Insurance Coverage..................................................... 12
Initial Premium Payment.......................................................... 13
Policy Date...................................................................... 13
Risk Classification.............................................................. 14
Right to Examine a Policy -- Free Look Period....................................... 14
Premiums............................................................................ 14
Premium Flexibility.............................................................. 14
Scheduled Premium Payments....................................................... 15
Modified Endowment Contracts..................................................... 15
Unscheduled Premium Payments..................................................... 15
Premium Payments Affect the Continuation of the Policy........................... 16
Allocation of Net Premiums.......................................................... 16
Death Benefits Under the Policy..................................................... 16
Option I......................................................................... 17
Option II........................................................................ 17
Examples of Options I and II..................................................... 17
Changes in Death Benefit Option.................................................. 18
Changes in Specified Amount......................................................... 18
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Increases........................................................................ 18
Decreases........................................................................ 19
Other Optional Insurance Benefits................................................... 19
Waiver of Monthly Deductions Rider............................................... 20
Accidental Death Benefit Rider................................................... 20
Purchase Option Rider............................................................ 20
Spouse's Term Rider.............................................................. 20
Children's Term Insurance Rider.................................................. 20
Benefits at Maturity................................................................ 20
Policy Values....................................................................... 21
Fund Value....................................................................... 21
Cash Value....................................................................... 21
Surrender Value.................................................................. 21
Determination of Fund Value......................................................... 21
Calculating Unit Values for Each Subaccount......................................... 22
Transfer of Fund Value.............................................................. 22
Right to Exchange Policy............................................................ 22
Policy Loans........................................................................ 23
Full Surrender...................................................................... 24
Partial Surrender................................................................... 24
Preferred Partial Surrender......................................................... 25
Grace Period and Lapse.............................................................. 25
Special Rule for First Two Policy Years.......................................... 25
Reinstatement....................................................................... 26
CHARGES AND DEDUCTIONS................................................................ 26
Deductions from Premiums............................................................ 26
Sales Charge..................................................................... 26
Tax Charges...................................................................... 27
Daily Deductions from the Variable Account.......................................... 27
Mortality and Expense Risk Charge................................................ 27
Monthly Deductions from Fund Value.................................................. 28
Cost of Insurance................................................................ 28
Administrative Charge............................................................ 28
Other Optional Insurance Benefits Charges........................................ 29
Fund Charge......................................................................... 29
Administrative Fund Charge....................................................... 29
Sales Fund Charge................................................................ 29
Effect of Changes in Specified Amount on the Fund Charge......................... 30
Transaction and Other Charges.................................................... 30
Guarantee of Certain Charges..................................................... 31
OTHER INFORMATION..................................................................... 31
Federal Income Tax Considerations................................................... 31
Definition of Life Insurance..................................................... 31
Diversification Requirements..................................................... 32
Tax Treatment of Policies........................................................ 32
Conventional Life Insurance Policies............................................. 32
Modified Endowment Contracts..................................................... 33
Reasonableness Requirement for Charges........................................... 34
Pension and Profit-Sharing Plans................................................. 34
Other Employee Benefit Programs.................................................. 34
Other............................................................................ 34
Charge for Company Income Taxes..................................................... 35
Voting of Fund Shares............................................................... 35
Disregard of Voting Instructions.................................................... 35
Report to Policy Owners............................................................. 36
Substitution of Investment and Right to Change Operations........................... 36
Changes to Comply with Law.......................................................... 36
PERFORMANCE INFORMATION............................................................... 37
THE GUARANTEED INTEREST ACCOUNT....................................................... 37
General Description................................................................. 37
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Limitations on Amounts in the Guaranteed Interest Account........................... 38
Death Benefit....................................................................... 38
Policy Charges...................................................................... 38
Transfers........................................................................... 39
Surrenders and Policy Loans......................................................... 39
MORE ABOUT THE POLICY................................................................. 39
Ownership........................................................................... 39
Joint Owners..................................................................... 39
Beneficiary......................................................................... 40
The Policy.......................................................................... 40
Notification and Claims Procedures.................................................. 40
Payments............................................................................ 40
Payment Plan/Settlement Provisions.................................................. 40
Payment in Case of Suicide.......................................................... 41
Assignment.......................................................................... 41
Errors on The Application........................................................... 41
Incontestability.................................................................... 41
Policy Illustrations................................................................ 41
Distribution of The Policy.......................................................... 41
MORE ABOUT THE COMPANY................................................................ 42
Management.......................................................................... 42
State Regulation.................................................................... 43
Telephone Transfer Privileges....................................................... 43
Legal Proceedings................................................................... 44
Legal Matters....................................................................... 44
Experts............................................................................. 44
Registration Statement.............................................................. 44
Independent Accountants............................................................. 44
Financial Statements................................................................ F-1
Appendix A............................................................................ A-1
Appendix B............................................................................ B-1
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IMPORTANT TERMS
AGE -- The Insured's age as of his or her nearest birthday on the Policy
Date, increased by the number of complete Policy Years elapsed.
BENEFICIARY -- The person or persons named by the Policy Owner in the
application or by proper later designation to receive the death benefit proceeds
upon the death of the Insured.
CASH VALUE -- The Fund Value for the Policy less the Fund Charge.
COMPANY, THE -- The Mutual Life Insurance Company of New York.
FREE LOOK PERIOD -- The Period which follows the application for the Policy
and its issuance to the Policy Owner and which follows any application for an
increase in Specified Amount. During the Free Look Period which follows the
issuance of the Policy, the Policy Owner may cancel the Policy and receive a
refund. During a Free Look Period following any increase in Specified Amount,
the Policy Owner has a right, in effect, to cancel the increase in Specified
Amount and have the charges and deductions attributable to such increase added
to the Fund Value.
FUND CHARGE -- A contingent deferred charge. The Fund Charge consists of
two separately calculated elements: the Administrative Fund Charge and the sales
Fund Charge. The Fund Charge is determined for the initial Specified Amount of
the Policy and for each increase in Specified Amount.
FUNDS -- The MONY Series Fund, Inc. and the Enterprise Accumulation Trust.
FUND VALUE -- The Fund Value is the sum of the amounts under the Policy
held in each Subaccount of the Variable Account and the Guaranteed Interest
Account, as well as any amount set aside in the Company's Loan Account, and any
interest thereon, to secure Outstanding Debt.
GENERAL ACCOUNT -- All assets of the Company other than those allocated to
the Variable Account or to any other segregated separate account of the Company.
GUARANTEED INTEREST ACCOUNT -- An account that is part of Company's General
Account to which all or a portion of net premium payments may be allocated for
accumulation at a fixed rate of interest (which may not be less than 5.0%)
declared by Company.
HOME OFFICE -- The Company's administrative office at 1740 Broadway, New
York, New York, 10019. "Home Office" also includes the Company's Syracuse
Operations Center at 1 MONY Plaza, Syracuse, N.Y. 13202.
INSURED -- The person upon whose life the Policy is issued and whose death
is the contingency upon which the death benefit proceeds are payable.
LOAN ACCOUNT -- An account to which amounts are transferred from the
Subaccounts and the Guaranteed Interest Account as collateral for any
Outstanding Debt. The Loan Account is part of the Company's General Account, and
it accumulates interest at a guaranteed rate of 5.0%.
MATURITY DATE -- The Policy Anniversary on which the Insured is Age 95.
MINIMUM MONTHLY PREMIUM -- The amount determined by the Company which is
necessary to keep the Policy in force for the first two Policy Years.
MONTHLY ANNIVERSARY DAY -- The day each month on which the monthly
deduction is due against the Fund Value. The first Monthly Anniversary Day is
the Policy Date.
OUTSTANDING DEBT -- The unpaid loan balance including accrued loan interest
due and unpaid.
PARTIAL SURRENDER -- The surrender of a portion of the Policy. At least
$500 of Surrender Value must remain after a Partial Surrender, or a full
surrender of the Policy will be required.
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POLICY DATE -- The date set forth on page 1 of the Policy that is used to
determine the Monthly Anniversary Day, Policy months, and Policy years. Policy
monthly, quarterly, semiannual and annual Anniversaries are measured from the
Policy Date. Each Policy month starts on the same date in each calendar month as
that specified as the Policy Date. Where the Policy Date is the 29th, 30th, or
31st of a month, and there is no such date in a calendar month, the Policy month
for such month will start on the last day of that calendar month.
POLICY OWNER OR OWNER -- The person who owns the Policy. The Policy Owner
will be the Insured unless otherwise stated in the application. If the Policy
has been absolutely assigned, the assignee becomes the Policy Owner. A
collateral assignee is not the Owner.
PORTFOLIO(S) -- The separate investment portfolios of the Funds.
PREFERRED PARTIAL SURRENDER -- An amount, up to 10% of Cash Value, which
may be surrendered without the application of a Fund Charge or reduction in
specified amount.
RIDER -- The addendum to a Policy which adds an optional insurance benefit
to the Policy.
SCHEDULED PREMIUM PAYMENTS -- The premium amount specified on the
application as the amount the Policy Owner intends to pay at fixed intervals
over a specified period of time. Within specified limits, premiums in excess of
the Scheduled Premium Payments may be paid. Scheduled Premium Payments may be
changed at any time. Scheduled Premium Payments are not required to paid.
SPECIFIED AMOUNT -- The minimum death benefit for so long as the Policy
remains in force. The Specified Amount may be increased or decreased under
certain circumstances.
SUBACCOUNTS -- The subdivisions of the Variable Account. Each Subaccount
invests exclusively in the shares of a corresponding Portfolio of one of the
Funds.
SURRENDER VALUE -- The Cash Value less any Outstanding Debt reduced by any
Unearned Loan Interest.
TARGET PREMIUM -- The maximum amount of premiums paid against which the
Fund Charge may be applied.
TRANSACTION DATE -- The date the Company receives a premium or acceptable
written or telephone request at the Home Office. If the premium or request
reaches the Home Office on a day which is not a Valuation Date or after the
close of business on a Valuation Date (i.e., after 4:00 p.m. Eastern Time), the
Transaction Date will be the next Valuation Date.
UNEARNED LOAN INTEREST -- The amount of interest on Outstanding Debt which
has not yet been earned by the Company. Interest on new Policy loans or
Outstanding Debt is charged in advance on the date of the loan or the Policy
Anniversary, as appropriate.
UNIT -- The bookkeeping measure used to value the amounts allocated to the
Subaccounts of the Variable Account.
UNIT VALUE -- The value of the Units of each Subaccount of the Variable
Account. Unit Values are calculated for each Subaccount on each Valuation Date.
VALUATION DATE -- Each date on which the Variable Account is valued, which
currently includes each day that the New York Stock Exchange is open for trading
and on which there is sufficient trading in the securities of a Portfolio of the
Funds to affect materially the unit value of the corresponding Subaccount of the
Variable Account.
VALUATION PERIOD -- The period that starts at the close of a Valuation Date
and ends at the close of the next succeeding Valuation Date.
VARIABLE ACCOUNT -- The Company's Variable Account L, a separate investment
account established by the Company to receive and invest the net premiums paid
under the Policy.
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SUMMARY OF THE POLICY
This summary is intended to provide a brief overview of the more
significant aspects of the Policy. Further detail is provided in this prospectus
and in the Policy. Unless the context indicates otherwise, the discussion in
this summary and the remainder of the prospectus relates to the portion of the
Policy involving the Variable Account. The Guaranteed Interest Account is
briefly described under "The Guaranteed Interest Account," on page 37 and in the
Policy.
PURPOSE OF THE POLICY
The Policy offers a Policy Owner insurance protection on the life of the
Insured through the Maturity Date for so long as the Policy is in force. A
maturity benefit will be paid in lieu of a death benefit when the Policy reaches
the Maturity Date during the Insured's lifetime. Like traditional fixed life
insurance, the Policy provides for a death benefit equal to its Specified
Amount, accumulation of cash value, and surrender and loan privileges. Unlike
traditional fixed life insurance, the Policy offers a choice of investment
alternatives and an opportunity for the Policy's Fund Value and its death
benefit, to grow based on investment results. The Policy is a flexible premium
policy, so that, unlike many other insurance policies, a Policy Owner may choose
the amount and frequency of premium payments, within certain limits.
POLICY VALUES
A Policy Owner may allocate net premium payments among the various
Subaccounts that comprise the Variable Account and that invest in corresponding
Portfolios of the MONY Series Fund and the Accumulation Trust. A Policy Owner
may also allocate net premium payments to the Guaranteed Interest Account. The
Loan Account represents amounts set aside in the General Account of the Company
as collateral for Outstanding Debt.
The Fund Value of the Policy is the sum of amounts allocated to the
Subaccounts of the Variable Account, the Guaranteed Interest Account and the
Loan Account. The Cash Value of the Policy is the Fund Value less the Fund
Charge. The Surrender Value of the Policy is the Cash Value less any Outstanding
Debt reduced by any Unearned Loan Interest.
Depending on the investment experience of the selected Subaccounts, the
Fund Value may increase or decrease on any day. The death benefit may or may not
increase or decrease depending upon several factors, including the death benefit
Option selected by the Policy Owner, although the death benefit will never
decrease below the Specified Amount provided the Policy is in force. There is no
guarantee that the Policy's Fund Value and death benefit will increase. The
Policy Owner bears the investment risk on that portion of the net premiums and
Fund Value allocated to the Variable Account.
The Policy will remain in force until the earliest of the Maturity Date,
the death of the Insured, or a full surrender of the Policy, unless, before any
of these events, the Policy lapses and a Grace Period expires without sufficient
additional premium payment or repayment of Outstanding Debt by the Policy Owner.
Generally, the Policy will remain in force only as long as the Cash Value
less any Outstanding Debt is sufficient to pay all the monthly deductions.
However, if the premiums paid meet the Minimum Monthly Premium requirement
during the first two Policy years, the Policy and all Rider coverages will
remain in force even if the Cash Value of the Policy less any Outstanding Debt
is not sufficient to pay the monthly deductions.
THE DEATH BENEFIT
The minimum Specified Amount for a Policy is $100,000. A Policy Owner may
elect one of two Options to calculate the amount of death benefit payable under
the Policy, which may increase the death benefit. Under Option I, the death
benefit will be equal to the Specified Amount of the Policy plus the increase in
Fund Value since the last Monthly Anniversary Day, or, if greater, the Fund
Value (determined as of the date of the Insured's death) plus the Fund Value on
the last Monthly Anniversary Day multiplied by a death benefit percentage
required by the federal tax law definition of life insurance. Under Option II,
the death benefit will be equal to the Specified Amount of the Policy plus the
Fund Value (determined as of the date of
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the Insured's death) or, if greater, the Fund Value (determined as of the date
of the Insured's death) plus the Fund Value on the last Monthly Anniversary Day
multiplied by the death benefit percentage. Policy Owners seeking to have
favorable investment performance reflected in increasing Fund Value should
choose Option I; Policy Owners seeking to have favorable investment performance
reflected in increasing insurance coverage should choose Option II. A Policy
Owner may change the death benefit Option and increase or decrease the Specified
Amount, subject to certain conditions. See "Death Benefits Under the Policy,"
page 16.
PREMIUM FEATURES
The Company requires a Policy Owner to pay an initial premium equal to at
least the Minimum Monthly Premium that is defined by the Company. Thereafter,
subject to certain limitations, a Policy Owner may choose the amount and
frequency of premium payments. The Policy, therefore, provides the Policy Owner
with the flexibility to vary premium payments to reflect varying financial
conditions.
When applying for a Policy, a Policy Owner will determine a Scheduled
Premium Payment that provides for the payment of level premiums in regular
intervals over a specified period of time. Each Policy Owner will receive a
premium reminder notice for the Scheduled Premium Payment on either an annual,
semiannual, or quarterly basis, at the option of the Policy Owner; however, the
Policy Owner may not be required to pay Scheduled Premium Payments. Premiums may
be paid monthly under the MONYMatic plan where the Owner authorizes the Company
to withdraw Scheduled Premium Payments from the Owner's checking account each
month.
The amount, frequency, and period of time over which a Policy Owner pays
premiums may affect whether or not the Policy will be classified as a modified
endowment contract, which is a type of life insurance contract subject to
different tax treatment for certain pre-death distributions. For more
information on the tax treatment of life insurance contracts, including those
classified as modified endowment contracts. See "Federal Income Tax
Considerations," page 31.
Payment of the Scheduled Premiums will not guarantee that a Policy will
remain in force. See "Grace Period and Lapse," page 25. Unscheduled premium
payments may not be less than $250. The Company also may reject or limit any
premium payment that would result in an immediate increase in the net amount at
risk under the Policy, although such a premium may be accepted with satisfactory
evidence of insurability.
ALLOCATION OPTIONS
The Subaccounts invest in portfolios of two mutual funds which offer the
Policy Owner the opportunity to direct the Company to invest in diversified
portfolios of stocks, bonds, money market instruments, or a combination of these
securities. Each of the Subaccounts invests exclusively in shares of a
designated portfolio (a "Portfolio") of the MONY Series Fund, Inc. (the "MONY
Series Fund") or the Enterprise Accumulation Trust (the "Accumulation Trust")
(collectively the "Funds"). The available Portfolios of the Funds, each of which
has a different investment objective, are the Money Market Portfolio, the
Government Securities Portfolio, the Intermediate Term Bond Portfolio, the Long
Term Bond Portfolio, the Equity Portfolio, the Small Cap Portfolio, the Managed
Portfolio, the International Growth Portfolio, and the High Yield Bond
Portfolio. See "The Funds," page 9.
MONY Life Insurance Company of America, a wholly-owned subsidary of the
Company is the investment manager of the MONY Series Fund. Enterprise Capital
Management, Inc., a subsidiary of the Company, is the investment manager of the
Accumulation Trust. OpCap Advisors, formerly known as Quest for Value Advisors,
a subsidiary of Oppenheimer Capital, is the sub-investment adviser, of the
Equity, Small Cap, and Managed Portfolios; Brinson Partners, Inc. is the
sub-investment adviser of the International Growth Portfolio; and Caywood-Scholl
Capital Corporation is the subinvestment adviser of the High Yield Bond
Portfolio.
The Policy Owner may choose to allocate net premium payments to any or all
of the available Subaccounts constituting the Variable Account, and to the
Guaranteed Interest Account.
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TRANSFER OF FUND VALUE
The Policy Owner may transfer Fund Value among the Subaccounts, and,
subject to certain other limitations, between the Subaccounts and the Guaranteed
Interest Account. Transfers may be made by telephone if an authorization for
telephone transfer form has been properly completed and signed and filed at the
Company's Syracuse Operations Center. See "Transfer of Fund Value," page 22.
POLICY LOANS
The Policy Owner may borrow from the Company an amount up to 90% of the
Policy's Cash Value less any existing Outstanding Debt. The minimum loan is
$250. The Policy will be the only security required for a loan. See "Policy
Loans," page 23.
The amount of any Outstanding Debt reduced by any Unearned Loan Interest is
subtracted from the death benefit or from the Cash Value upon surrender. See
"Full Surrender," page 24. Outstanding Debt may also impact the continuation of
the Policy. See "Grace Period and Lapse," page 25.
FULL SURRENDER
The Owner can surrender the Policy during the life of the Insured and
receive its Surrender Value, which is equal to the Fund Value less the Fund
Charge and less any Outstanding Debt reduced by any Unearned Loan Interest.
PARTIAL SURRENDER
Partial Surrenders are available under the Policy after the second Policy
anniversary so long as the Surrender Value remaining after giving effect to the
requested surrender and any fees which may be assessed as a result of the
Partial Surrender exceeds any minimum requirements. If a Partial Surrender is
for an amount which exceeds the amount available, it will be rejected and the
request will be returned to the Policy Owner. A Partial Surrender may decrease
the Specified Amount of a Policy if the Owner has elected death benefit Option
I, and it will decrease the death benefit if the death benefit is greater than
the Specified Amount under either Option I or II. See "Partial Surrender," at
page 24.
Among other restrictions, Partial Surrenders must be for at least $500, and
the Policy's Surrender Value after the surrender must be at least $500. A
Partial Surrender Fee of $25 or 2% of the amount surrendered, whichever is less,
will be assessed against the remaining Fund Value. In addition, a portion of the
Fund Charge may be assessed upon a Partial Surrender.
PREFERRED PARTIAL SURRENDER
A Policy Owner may obtain during any Policy year after the second Policy
anniversary amounts, up to 10% of Cash Value (on the date the first Partial
Surrender request is received), without the application of a Fund Charge or
reduction in specified amount. The Partial Surrender Fee, however, will be
charged. This amount is referred to as the Preferred Partial Surrender Amount.
See "Preferred Partial Surrender", page 25.
FREE LOOK PERIOD
A Policy Owner may obtain a full refund of the premium paid if the Policy
is returned within 10 days (or longer in certain states) after the Owner
receives it, within 10 days after the Company mails or delivers the notice of
the right of withdrawal, or 45 days after the application for the Policy is
completed, whichever is later. During the Free Look Period, net premiums will be
allocated to the Money Market Subaccount, which invests in the Money Market
Portfolio of the MONY Series Fund. During a Free Look Period following any
increase in Specified Amount, the Policy Owner has a right, in effect, to cancel
the increase in Specified Amount and have the charges and deductions
attributable to such increase added to the Fund Value. See "Right to Examine a
Policy -- Free Look Period", page 14.
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GRACE PERIOD AND LAPSE
Payment of Scheduled Premium Payments will not guarantee that a Policy will
remain in force. Instead, the duration of the Policy depends upon the Policy's
Cash Value less any Outstanding Debt. However, during the first two Policy
years, if on each Monthly Anniversary Day the sum of premiums paid, less the sum
of Partial Surrenders (and any fees relating thereto) and any Outstanding Debt
is greater than or equal to the Minimum Monthly Premium times the number of
completed Policy months, the Policy is guaranteed not to lapse, regardless of
the Policy's Cash Value less Outstanding Debt. Even if Scheduled Premium
Payments are made, the Policy will lapse any time the Cash Value less
Outstanding Debt is insufficient to pay the current monthly deduction and a
Grace Period expires without sufficient payment.
CHARGES AND DEDUCTIONS
DEDUCTIONS FROM PREMIUMS
Certain charges are deducted from each premium payment under a Policy prior
to applying the net premium to the Fund Value. These charges consist of the
following items:
SALES CHARGE -- A sales charge equal to 4% of each premium paid during the
first ten Policy Years, 2% of each premium paid in Policy Years 11 through 20,
and none thereafter.
TAX CHARGE -- A state premium tax charge for policyholders resident in New
York, currently equal to 0.8% of each premium, and a charge related to the
federal tax treatment of deferred acquisition costs currently equal to 1.25% of
each premium will be deducted to compensate the Company for these taxes. The
Company does not expect to make a profit from this charge. (See "Tax Charges",
page 27.)
DAILY DEDUCTION FROM THE VARIABLE ACCOUNT
A charge is deducted from the Variable Account each day for the Mortality
and Expense Risk Charge as described below.
MORTALITY AND EXPENSE RISK CHARGE -- A charge is deducted daily from each
Subaccount of the Variable Account for mortality and expense risks assumed by
the Company. For the first 10 Policy years, this charge is equal to .002055% of
the amount in the Subaccounts, which is equivalent to an annual rate of .75% of
Subaccount value. Each month the Policy remains in force after the tenth Policy
Anniversary, the Fund Value allocated to the Subaccounts will be credited with
an amount which will effectively reduce the Mortality and Expense Risk Charge.
This amount will be determined by multiplying the Fund Value in all Subaccounts
by .04167% which is equivalent to 0.5% on an annualized basis. This amount is
guaranteed and will be allocated among the Subaccounts proportionately on each
Monthly Anniversary Day following the tenth Policy Anniversary.
DEDUCTIONS FROM FUND VALUE
A charge called the Monthly Deduction is deducted from the Fund Value on
each Monthly Anniversary Day. The monthly deduction consists of the following
items:
COST OF INSURANCE -- This monthly charge compensates the Company for
providing life insurance coverage for the Insured. The amount of the charge is
equal to a current cost of insurance rate multiplied by the net amount at risk
under the Policy at the beginning of each Policy Month.
6
<PAGE> 12
ADMINISTRATIVE CHARGE -- An administrative charge is deducted each month
based on the Specified Amount of the Policy. The administrative charge decreases
after the first Policy year:
<TABLE>
<CAPTION>
EACH OF EACH POLICY MONTH
FIRST 12 POLICY MONTHS THEREAFTER
---------------------- -----------------
<S> <C> <C>
Specified Amount:
Less than $250,000............................ $ 31.50* $6.50
$250,000 to $499,999.......................... 28.50* 3.50
$500,000 or more.............................. 25.00* None
</TABLE>
- ---------------
* Reduced by $5.00 for issue ages 0 through 17.
OPTIONAL INSURANCE BENEFITS CHARGES -- The monthly deduction will include
charges for any other optional insurance benefits added to the Policy by Rider.
FUND CHARGE
The Company will assess a Fund Charge against Fund Value upon surrender of
a Policy or reduction in the Specified Amount within fourteen years of the
Policy Date or of a subsequent increase in Specified Amount. The Fund Charge
consists of two charges: an Administrative Fund Charge and a Sales Fund Charge.
ADMINISTRATIVE FUND CHARGE -- The Administrative Fund Charge is equal to an
amount per thousand of Specified Amount as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE
ISSUE AGE FUND CHARGE
------------------------------------------------------------------------ --------------
<S> <C>
0-25.................................................................... $ 2.50
26...................................................................... 3.00
27...................................................................... 3.50
28...................................................................... 4.00
29...................................................................... 4.50
30 or higher............................................................ 5.00
</TABLE>
The amount of the charge remains level for five years. After the fifth year, the
charge decreases by 10% per year until it reaches zero at the end of the 14th
year. See "Fund Charge -- Administrative Fund Charge", page 29.
SALES FUND CHARGE -- The Sales Fund Charge is equal to a percentage of the
premiums paid in the first five years, up to a maximum amount of premiums called
the Target Premium. The percentage of premiums varies by Age as follows:
<TABLE>
<CAPTION>
NON-QUALIFIED QUALIFIED
- ------------------------------------- -------------------------------------
ISSUE AGE PERCENTAGE ISSUE AGE PERCENTAGE
- ------------------------- ---------- ------------------------- ----------
<S> <C> <C> <C>
0-17..................... 50% 18-35.................... 75%
18-38.................... 75 36-37.................... 70
39-45.................... 70 38-45.................... 65
46-67.................... 65 46-68.................... 60
68....................... 60 69....................... 55
69....................... 55 70....................... 50
70-80.................... 50
</TABLE>
The Sales Fund Charge can increase as premiums are paid during the five
year period. Starting on the fifth anniversary, the charge decreases from its
maximum by 10% per year until it reaches zero at the end of the 14th year. The
Sales Fund Charge during the first two years that the Policy is in force is
limited. See "Fund Charge -- Sales Fund Charge", page 29.
7
<PAGE> 13
Administrative Fund Charges and Sales Fund Charges are determined in a
similar manner for increases in Specified Amount. Decreases in Specified Amount
may result in immediate deduction of a portion of the sales Fund Charge and
administrative Fund Charge from the Fund Value.
TRANSACTION AND OTHER CHARGES
A Partial Surrender Fee of the lesser of 2% of the amount surrendered and
$25 will be assessed against the remaining Fund Value for any Partial Surrender
or Preferred Partial Surrender. In addition, the Company reserves the right to
charge a fee of $25 on transfers which exceed twelve in any Policy year.
The operating expenses of the Variable Account are paid by the Company and
certain charges, deductions, and fees are made or imposed to compensate the
Company for these expenses and for the risk that the charges, deductions, and
fees may not be sufficient to compensate the Company. Investment advisory fees
and operating expenses of the Fund are paid by the Fund. For a description of
these charges, see "Charges and Deductions," page 26.
TAX TREATMENT OF INCREASES IN FUND VALUE
The Fund Value under the Policy is currently subject to the same federal
income tax treatment as the cash value under fixed life insurance. Therefore,
generally the Policy Owner will not be deemed to be in constructive receipt of
the Fund Value unless and until the Policy Owner is deemed to be in receipt of a
distribution from the Policy. For information on the tax treatment of the Policy
and on the tax treatment of a Full Surrender, a Partial Surrender, a Preferred
Partial Surrender, or a Policy loan, see "Federal Income Tax Considerations,"
page 31.
TAX TREATMENT OF DEATH BENEFIT
The death benefit under the Policy is currently subject to federal income
tax treatment consistent with that of fixed life insurance. Therefore, generally
the death benefit will be fully excludable from the gross income of the
Beneficiary under the Internal Revenue Code. See "Federal Income Tax
Considerations," page 31.
THE GUARANTEED INTEREST ACCOUNT
The Policy Owner may allocate all or a portion of net premium payments and
transfer Fund Value to the Guaranteed Interest Account, within specified limits.
Amounts allocated to the Guaranteed Interest Account are held in the Company's
General Account. The Company guarantees that the Fund Value allocated to the
Guaranteed Interest Account will be credited interest daily at a rate equivalent
to an effective annual rate of 5%. In addition, the Company may in its sole
discretion pay interest in excess of the guaranteed amount. After the tenth
Policy anniversary, the annual interest rates that apply to the Fund Value in
the Guaranteed Interest Account will be .5% higher than the rates applicable to
policies of the same type which have not yet reached their tenth policy
anniversary. This increase is guaranteed and will be credited only when interest
in excess of the 5% guaranteed rate is being applied to policies of the same
type which have not yet reached their tenth policy anniversary. See "The
Guaranteed Interest Account," page 37.
CONTACTING THE COMPANY
All written requests, notices, and forms required by the Policies, and any
questions or inquiries should be directed to the Company's Operations Center at
1 MONY Plaza, Syracuse, New York 13202.
INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
The Mutual Life Insurance Company of New York ("Company") is a mutual life
insurance company organized under the laws of the state of New York in 1842. The
principal office of the Company is located at
8
<PAGE> 14
1740 Broadway, New York, New York 10019. It is admitted to do business in all
states, as well as the District of Columbia, and Puerto Rico. As of the end of
1995, the Company had over $83.1 billion of life insurance in force and
consolidated assets of approximately $14.6 billion.
At October 4, 1996, the rating assigned to the Company by A. M. Best
Company, Inc., an independent insurance company rating organization, was A-
(Excellent) based upon an analysis of financial condition and operating
performance through the end of 1995. The A. M. Best rating of the Company should
be considered only as bearing on the ability of the Company to meet its
obligations under the Policies.
MONY Securities Corp., a wholly owned subsidiary of the Company, is the
principal underwriter for the Policies.
MONY VARIABLE ACCOUNT L
The MONY Variable Account L (the "Variable Account") is a separate
investment account of the Company and at present is used only to support
flexible premium variable life insurance policies. The assets in the Variable
Account are kept separate from the General Account assets and other separate
accounts of the Company.
The Company owns the assets in the Variable Account and is required to
maintain sufficient assets in the Variable Account with a total market value
equal to the Policy liabilities funded by the Variable Account. The Variable
Account is divided into subdivisions called Subaccounts. The income, gains, or
losses, realized or unrealized, of the Variable Account are credited to or
charged against the assets held in the Variable Account without regard to the
other income, gains, or losses of the Company. Assets in the Variable Account
attributable to the reserves and other liabilities under the Policies are not
chargeable with liabilities arising from any other business that the Company
conducts. However, the Company may transfer to its General Account any assets
which exceed anticipated obligations of the Variable Account. All obligations
arising under the Policy are general corporate obligations of the Company. The
Company may accumulate in the Variable Account proceeds from various Policy
charges and investment results applicable to those assets.
The Variable Account was established on November 28, 1990 under New York
law under the authority of the Board of Trustees of the Company. The Variable
Account is registered as a unit investment trust with the SEC. Such registration
does not involve any supervision by the SEC of the administration or investment
practices or policies of the Account.
There are currently nine Subaccounts within the Variable Account available
to the Policyholder. Each Subaccount invests exclusively in shares of a
designated Portfolio of the Funds. For example, the Long Term Bond Subaccount
invests solely in shares of the MONY Series Fund, Inc. Long Term Bond Portfolio.
These Portfolios are available to serve only as the underlying investment for
variable annuity and variable life insurance contracts issued through separate
accounts of the Company as well as other life insurance companies, and may be
available to certain pension accounts. They are not available directly to
individual investors. The Company may in the future establish additional
Subaccounts within the Variable Account, which may invest in other Portfolios of
the Funds or in other securities. Not all Subaccounts are available to the
Policy Owner.
THE FUNDS
Each Subaccount of the Variable Account currently invests only in shares of
a corresponding Portfolio of the MONY Series Fund, Inc. (the "MONY Series Fund")
or the Enterprise Accumulation Trust (the "Accumulation Trust") (the MONY Series
Fund and the Accumulation Trust are collectively called the "Funds"). The Funds
are diversified, open end management investment companies of the series type.
The Funds are registered with the SEC under the Investment Company Act of 1940.
Such registration does not involve supervision by the SEC of the investments or
investment policy of the Funds.
Of the seven separate Portfolios of the MONY Series Fund, currently only
four portfolios ("Portfolios"), each of which pursues different investment
objectives and policies, are available for purchase by corresponding Subaccounts
of the Variable Account available to the Policy Owner. MONY America acts as the
investment
9
<PAGE> 15
manager of the MONY Series Fund. MONY America is a registered investment adviser
under the Investment Advisers Act of 1940. As investment adviser to the MONY
Series Fund, MONY America receives a daily investment advisory fee equivalent to
an annual rate of 0.40 percent of the first $400 million, 0.35 percent of the
next $400 million, and 0.30 percent in excess of $800 million of the aggregate
average daily net assets of all Portfolios of the MONY Series Fund, as described
in the accompanying current prospectus for the MONY Series Fund. MONY America,
as investment adviser, has agreed to bear all expenses associated with
organizing the Fund, the initial registration of its securities, the calculation
of the net asset value of the Portfolios, and the compensation of the Fund's
directors, officers and employees who are interested persons of MONY America.
All other expenses will be borne by the Fund itself, subject to certain
limitations imposed by state law. MONY America has entered into a Services
Agreement with the Company for the provision of personnel, equipment, facilities
and other services, in order to carry out its duties as investment adviser to
the Fund.
Of the five separate Portfolios of the Accumulation Trust, currently all
five separate Portfolios, each of which pursues different investment objectives
and policies, are available for purchase by corresponding Subaccounts of the
Variable Account. Enterprise Capital Management, Inc., a wholly owned subsidiary
of the Company, acts as the investment manager of the Accumulation Trust. OpCap
Advisors, formerly known as Quest for Value Advisors, a subsidiary of
Oppenheimer Capital, acts as the sub-investment adviser to the Equity and
Managed Portfolios of the Accumulation Trust. Oppenheimer Capital is a
subsidiary of Oppenheimer Financial Corporation. The change of name to OpCap
Advisors was occasioned by the sale of certain of the operations of Quest for
Value Advisors to Oppenheimer Management Corporation in November 1995. No change
in the personnel responsible for the day-to-day management of the Equity and
Managed Portfolios will occur as a result of this change. GAMCO Investors, Inc.
acts as the sub-investment adviser to the Small Cap Portfolio. Brinson Partners,
Inc. acts as the sub-investment adviser to the International Growth Portfolio.
Caywood-Scholl Capital Corporation acts as sub-investment adviser to the High
Yield Bond Portfolio.
The investment objectives of each Portfolio are fundamental and may not be
changed without the approval of the holders of a majority of the outstanding
shares of the Portfolio affected (which, for each of the Funds, means the lesser
of (1) 67 percent of the Portfolio shares represented at a meeting at which more
than 50 percent of the outstanding Portfolio shares are represented or (2) more
than 50 percent of the outstanding Portfolio shares).
PURCHASE OF PORTFOLIO SHARES BY THE VARIABLE ACCOUNT
The shares of each Portfolio are purchased by the Company for the
corresponding Subaccount at net asset value, i.e., without sales load. All
dividends and capital gains distributions received from a Portfolio are
automatically reinvested in such Portfolio at net asset value, unless the
Company, on behalf of the Variable Account, elects otherwise. Fund shares will
be redeemed by the Company at their net asset value to the extent necessary to
make payments under the Policies.
Shares of the Funds are offered only for purchase by separate accounts of
insurance companies, which may or may not be affiliated with the Company, or
with each other. This is called "shared funding." They may also sell shares to
separate accounts to serve as an investment medium for variable life insurance
policies and for variable annuity contracts. Thus, the Funds serve as an
investment medium for both variable life insurance policies and variable annuity
contracts. This is called "mixed funding." The Company currently does not
foresee any disadvantages to Policy Owners arising from either mixed or shared
funding; however, due to differences in tax treatment or other considerations,
it is theoretically possible that the interests of owners of various contracts
for which the Funds serve as an investment medium might at some time be in
conflict. However, the Company's Board of Trustees, the MONY Series Fund's Board
of Directors, the Accumulation Trust's Board of Trustees, and any other
insurance companies that participate in the Funds are required to monitor events
in order to identify any material conflicts that arise from the use of the Funds
for mixed and/or shared funding. The Funds' Boards are required to determine
what action, if any, should be taken in the event of such a conflict. If such a
conflict were to occur, the Company might be required to withdraw the investment
10
<PAGE> 16
of one or more of its separate accounts from the Funds. This might force the
Funds to sell securities at disadvantageous prices.
A summary of the investment objective of each of the Portfolios of the
Funds is described below. There can be no assurance that any Portfolio will
achieve its objective. More detailed information is contained in the
accompanying prospectus of each Fund, including information on the risks
associated with the investment and investment techniques of each of the
Portfolios.
THE FUNDS' PROSPECTUSES ACCOMPANY THIS PROSPECTUS AND SHOULD BE
READ CAREFULLY BEFORE INVESTING.
THE MONEY MARKET PORTFOLIO
The investment objective of the Money Market Portfolio is to seek maximum
current income consistent with preservation of capital and maintenance of
liquidity. The Money Market Portfolio attempts to achieve this objective by
investing in money market instruments. MONY Series Fund offers this Portfolio.
THE GOVERNMENT SECURITIES PORTFOLIO
The investment objective of the Government Securities Portfolio is the
maximum current income over the intermediate term consistent with the
preservation of capital, through investment in highly-rated debt securities,
U.S. Government obligations, and money market instruments, with a dollar
weighted average life of up to ten years at the time of purchase. MONY Series
Fund offers this Portfolio.
THE INTERMEDIATE BOND PORTFOLIO
The investment objective of the Intermediate Bond Portfolio is to maximize
income over the intermediate term consistent with the preservation of capital.
The Portfolio seeks to achieve this objective by investing in highly rated debt
securities, U.S. Government obligations, and money market instruments, together
having a dollar-weighted average life of between 4 and 8 years. MONY Series Fund
offers this Portfolio.
THE LONG TERM BOND PORTFOLIO
The investment objective of the Long Term Bond Portfolio is to maximize
income over the longer term consistent with preservation of capital. The
Portfolio seeks to achieve its objective by investing in highly-rated debt
securities, U.S. Government obligations, and money market instruments, together
having a dollar-weighted average life of more than 8 years. MONY Series Fund
offers this Portfolio.
THE EQUITY PORTFOLIO
The investment objective of the Equity Portfolio is long-term capital
appreciation. The Portfolio seeks to achieve this investment objective by
investing in a diversified portfolio of primarily equity securities selected on
the basis of a value-oriented approach to investing. The Accumulation Trust
offers this Portfolio.
THE SMALL CAP PORTFOLIO
The Small Cap Portfolio seeks capital appreciation. The Portfolio pursues
its investment objective by investing in a diversified portfolio of primarily
equity securities of companies with market capitalization of under $1 billion.
The Accumulation Trust offers this Portfolio.
11
<PAGE> 17
THE MANAGED PORTFOLIO
The investment objective of the Managed Portfolio is to provide growth of
capital over time. The Portfolio seeks to achieve this investment objective by
investing in a portfolio consisting of common stocks, bonds and cash
equivalents, the percentage of which will vary over time based on the investment
manager's assessment of the relative investment values. The Accumulation Trust
offers this Portfolio.
THE INTERNATIONAL GROWTH PORTFOLIO
The investment objective of the International Growth Portfolio is to
provide capital appreciation, primarily through a diversified portfolio of
non-United States equity securities. The Accumulation Trust offers this
portfolio.
THE HIGH YIELD BOND PORTFOLIO
The investment objective of the High Yield Bond Portfolio is to provide
maximum current income, primarily from debt securities that are rated Ba or
lower by Moody's Investors Service, Inc. or BB or lower by Standard & Poor's
Corporation. The Accumulation Trust offers this portfolio.
THE POLICY
The variable life insurance benefits of the Policies are funded through the
Policy Owner's Fund Value in the Variable Account and the Guaranteed Interest
Account. The information included below describes the benefits, features,
charges, and other major provisions of the Policies.
APPLICATION FOR A POLICY
The Policy is designed to meet the needs of individuals and for
corporations who wish to provide coverage and benefits for key employees.
Individuals wishing to purchase the Policy must complete an application and
personally deliver it to a licensed agent of the Company, who is also a
registered representative of MONY Securities Corp. ("MSC"). The licensed agent
will then submit the completed application to the Company. The Policy may also
be sold through other broker-dealers authorized by MSC and applicable law to do
so. A Policy can be issued on the life of an Insured for Ages up to and
including Age 80 with evidence of insurability satisfactory to the Company. The
Insured's Age is calculated as of the Insured's birthday nearest the Policy
Date. Acceptance is subject to the Company's underwriting rules, and the Company
reserves the right to request additional information and to reject an
application.
The minimum Specified Amount which may be applied for is $100,000. However,
the Company also reserves the right to revise its rules from time to time to
specify a different minimum Specified Amount at issue for subsequent issued
Policies.
Each Policy is issued with a Policy Date, which is the date used to
determine the Monthly Anniversary Day, Policy Months, Policy Years, and Policy
monthly, quarterly, semiannual and annual Anniversaries. The Policy Date will be
stated on Page 1 of the Policy. The Policy Date will normally be the later of
the date that delivery of the Policy is authorized by the Company (the "Policy
Release Date") or the Policy Date requested in the application. Except as
provided under the temporary insurance procedures defined below, no premiums may
be paid with the application.
TEMPORARY INSURANCE COVERAGE
If an applicant desires interim insurance coverage prior to the Policy
Release Date, a Temporary Insurance Agreement is available. At the time an
application is accepted by a licensed agent of the Company, the applicant must
satisfactorily complete and sign the Temporary Insurance Agreement Form and
submit payment for at least one Minimum Monthly Premium for the Policy as
applied for. Coverage commences under the Temporary Insurance Agreement on the
date the Temporary Insurance Agreement Form is signed
12
<PAGE> 18
and the required premium amount has been paid, or if later, the requested Policy
Date. See "Premium Flexibility," page 14.
Once the coverage under the Temporary Insurance Agreement commences, it
generally will run until the Policy Release Date, but in no event for more than
90 days from the date the Temporary Insurance Agreement Form is signed. In
addition, this temporary insurance coverage will also cease on the earliest of
(a) the 45th day after the Temporary Insurance Agreement Form is signed if the
last of the medical exams and tests initially required under the Company's
published underwriting rules has not been completed by the applicant, (b) 5 days
after the Company sends notice to the applicant that it declines to issue any
Policy, (c) the date the applicant informs the Company that the Policy will be
refused, (d) the Policy Release Date, if the Policy is issued as applied for, or
(e) where the Policy is issued other than as applied for, the earlier of the
15th day after the Policy Release Date or the date the Policy takes effect. If
death occurs during the period of temporary coverage, the death benefit will be
(i) the lesser of $500,000 or the insurance coverage applied for on the life of
the proposed Insured (including any optional Riders), less (ii) the Deductions
from Premium and the Monthly Deduction due prior to the date of death.
During the period before the Policy Release Date, premiums paid with the
application pursuant to the Temporary Insurance Agreement will be held in the
Company's General Account. Except as provided below, interest will be credited
on the premium (less any Deductions from Premiums) held in the Company's General
Account. The interest rate will be set by the Company, but will not be less than
5 percent per year. If the Policy is issued and accepted, these amounts will be
applied to the Policy. These premiums will be returned (without interest) to the
applicant within 5 days after:
(1) the date the applicant informs the Company at or before the Policy
Release Date (or where the Policy is authorized for delivery other than as
applied for, on or before the 15th day after the Policy Release Date) that
the Policy will be refused; or
(2) the date which is 30 days after the application is signed, if any
medical exams or tests required by the Company have not yet been completed.
Premiums will be returned with interest to the applicant within 5 days after the
date the Company sends notice to the applicant declining to issue any Policy on
the Insured.
INITIAL PREMIUM PAYMENT
If the application is approved and the Policy is subsequently issued, the
balance due (if any) of the first Scheduled Premium Payment, as specified in the
Policy, is payable upon delivery of the Policy. The Policy will take effect on
the date the Policy is accepted by the applicant and the initial Scheduled
Premium Payment has been paid, or the Policy Date requested in the application,
if later. If a specific Policy Date has not been requested or if the Policy Date
requested is prior to the Policy Release Date, upon receipt of the balance due
(if any), the amount attributable to the Policy (including any premiums held in
the General Account under the Temporary Insurance Agreement plus any interest
credited in the General Account, less Deductions from Premiums) will be
transferred to the Money Market Subaccount of the Variable Account on the Policy
Release Date pending expiration of the applicable Free Look Period. After such
transfer, the Monthly Deduction due prior to or on the Policy Release Date will
be made. Upon expiration of the Free Look Period, amounts to be allocated to the
Subaccounts of the Variable Account will be allocated to those Subaccounts and
amounts to be allocated to the Guaranteed Interest Account will be allocated to
that Account. (See "Right to Examine A Policy -- Free Look Period," page 14.)
POLICY DATE
If a specific Policy Date has been requested which is later than the Policy
Release Date, the amount attributable to the Policy will be initially held in
the General Account until the Policy Date. On the Policy Date, the amount
attributable to the Policy less any Deductions from Premiums for the period
commencing with the Policy Date will be transferred to the Money Market
Subaccount of the Variable Account pending expiration of the applicable Free
Look Period. Upon the expiration of the applicable Free Look Period,
13
<PAGE> 19
amounts allocated to the Subaccounts of the Variable Account will be allocated
to those Subaccounts and amounts allocated to the Guaranteed Interest Account
will be allocated to that Account. See "Right to Examine A Policy -- Free Look
Period," below.
Subject to the Company's approval, a Policy may be backdated, but the
Policy Date may not be more than six months (a shorter period is required in
certain states) prior to the date of the application. Backdating can be
advantageous if the Insured's lower issue Age results in lower cost of insurance
rates. If the Policy is backdated, the initial Scheduled Premium Payment will
include sufficient premium to cover additional charges incurred for the
backdating period, since monthly deductions are made for the period the Policy
Date is backdated.
RISK CLASSIFICATION
Insureds are assigned to underwriting (risk) classes which are used in
calculating the cost of insurance and certain Rider charges. In assigning
Insureds to underwriting classes, the Company will normally use the medical or
paramedical underwriting method, which may require a medical examination of a
proposed Insured, although other forms of underwriting may be used when deemed
appropriate by the Company.
RIGHT TO EXAMINE A POLICY -- FREE LOOK PERIOD
The Free Look Period follows the application for the Policy and its
issuance to the Policy Owner, and it also follows any application for an
increase in Specified Amount and the issuance of an endorsement increasing the
Specified Amount. The period runs to the latest of the date which is (a) 45 days
after Part I of the application is signed, (b) 10 days (or longer in certain
states) after the Policy Owner receives the Policy, or the endorsement of an
increase in Specified Amount, as the case may be, or (c) 10 days after the
Company mails or personally delivers a notice of withdrawal right to the Policy
Owner. During the Free Look Period which follows the issuance of the Policy, the
Policy Owner may cancel the Policy and receive a refund of the full amount of
the premium paid. During a Free Look Period following any increase in Specified
Amount, the Policy Owner has a right, in effect, to cancel the increase in
Specified Amount and have the charges and deductions attributable to such
increase added to the Fund Value. During the Free Look Period, net premiums will
be allocated to the Money Market Subaccount, which invests in the Money Market
Portfolio of the MONY Series Fund. See "Allocation of Net Premiums," page 16.
PREMIUMS
The Policy is a flexible premium policy, and it provides considerable
flexibility, subject to the limitations described below, to pay premiums at the
Policy Owner's discretion.
PREMIUM FLEXIBILITY
The Company requires a Policy Owner to pay an amount equal to at least the
Minimum Monthly Premium to place the Policy in force. If the premiums are to be
paid less often than monthly, the premium required to place the Policy in force
is equal to the Minimum Monthly Premium multiplied by 12 divided by the
frequency of Scheduled Premium Payments. This Minimum Monthly Premium will be
based upon the Policy's Specified Amount and the Age, smoking status, gender
(unless unisex cost of insurance rates apply, see "Cost of Insurance," page 28),
and underwriting class of the Insured, and any Riders added to the Policy. The
Minimum Monthly Premium will be shown in the Policy. Thereafter, subject to the
limitations described below, a Policy Owner may choose the amount and frequency
of premium payments. The Policy, therefore, provides the Policy Owner with the
flexibility to vary premium payments to reflect varying financial conditions.
If on each Monthly Anniversary Day during the first two Policy years, the
sum of all premiums paid, less any Outstanding Debt and less any Partial
Surrenders (and their fees), is greater than or equal to the Minimum Monthly
Premium times the number of completed Policy months, the Policy is guaranteed
not to lapse, regardless of the Policy's Cash Value less Outstanding Debt. See
"Grace Period and Lapse," page 25.
14
<PAGE> 20
SCHEDULED PREMIUM PAYMENTS
When applying for a Policy, a Policy Owner will determine a Scheduled
Premium Payment that provides for the payment of level premiums at fixed
intervals over a specified period of time. Each Policy Owner will receive a
premium reminder notice for the Scheduled Premium Payment amount on either an
annual, semiannual, or quarterly basis, at the option of the Policy Owner. The
minimum Scheduled Premium Payment is equal to the Minimum Monthly Premium
multiplied by 12 divided by the Scheduled Premium Payment frequency. Although
reminder notices will be sent, the Policy Owner is not required to pay Scheduled
Premium Payments.
Premiums, other than the first, may also be paid monthly under the
MONYMatic plan where the Policy Owner authorizes the Company to withdraw
premiums from the Owner's checking account each month. Based on the Policy Date,
up to two Minimum Monthly Premiums must be paid in cash before the MONYMatic
plan will be accepted by the Company. Under the MONYMatic plan, the day on which
premiums are withdrawn will be the 15th of the month. Payment of the Scheduled
Premium Payments will not guarantee that a Policy will remain in force. Instead,
unless one of the Guaranteed Death Benefit Riders has been elected and all
requirements have been met, the duration of the Policy depends upon the Policy's
Cash Value, less any Outstanding Debt. In addition during the first two Policy
Years, if on each Monthly Anniversary Day the sum of premiums paid, less the sum
of Partial Surrenders (and any fees relating thereto) and any Outstanding Debt
is greater than or equal to the Minimum Monthly Premium times the number of
completed Policy Months, the Policy is guaranteed not to lapse, regardless of
the Policy's Cash Value less Outstanding Debt. Even if the Scheduled Premium
Payments are made, if either of these two provisions do not apply, the Policy
will lapse any time the Cash Value less Outstanding Debt is insufficient to pay
the current monthly deduction and a Grace Period expires without sufficient
payment.
MODIFIED ENDOWMENT CONTRACTS
The amount, frequency and period of time over which a Policy Owner pays
premiums may affect whether the Policy will be classified as a modified
endowment contract, which is a type of life insurance contract subject to
different tax treatment for certain pre-death distributions than conventional
life insurance contracts. See "Federal Income Tax Considerations -- Modified
Endowment Contracts," page 33.
UNSCHEDULED PREMIUM PAYMENTS
Generally, the Policy Owner can make unscheduled premium payments at any
time and in any amount as long as each payment is at least $250.00. The Company
may reject or limit any premium payment (Scheduled or unscheduled) that would
result in an immediate increase in the death benefit payable, although such a
premium may be accepted with satisfactory evidence of insurability. A premium
payment would result in an immediate increase if the death benefit under a
Policy is, or upon acceptance of the premium would be, equal to a Policy Owner's
Fund Value multiplied by a death benefit percentage as a result of the federal
income tax law definition of life insurance. See "Death Benefits under the
Policy," page 16 and "Federal Income Tax Considerations -- Definition of Life
Insurance," page 31. If satisfactory evidence of insurability is not received,
the payment, or a portion thereof may be returned. In addition, all or a portion
of a premium payment will be rejected and returned to the Policy Owner if it
would exceed the maximum premium limitations prescribed by the federal income
tax law definition of life insurance.
Unscheduled premium payments will be treated as premium payments, and not
as a repayment of Outstanding Debt, unless a Policy Owner requests otherwise. If
the Policy Owner does request that the payment be treated as a repayment of
Outstanding Debt, any portion of a payment that exceeds the amount of
Outstanding Debt will be applied to the Fund Value. Applicable taxes and sales
charges are not deducted from payments used as a repayment of Outstanding Debt,
but are deducted from any payment which constitutes a premium payment.
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<PAGE> 21
PREMIUM PAYMENTS AFFECT THE CONTINUATION OF THE POLICY
If premium payments are stopped, temporarily or permanently, the Policy
will continue in effect until the Cash Value less any Outstanding Debt can no
longer cover the Monthly Deductions from the Fund Value for the Policy and any
optional insurance benefits added by Rider. At that point, the Policy will
lapse. See "Grace Period and Lapse," page 25. If the Minimum Monthly Premium
requirements are satisfied during the first two Policy years, the Policy is
guaranteed not to lapse, regardless of the Policy's Cash Value less Outstanding
Debt during this two year period. See "Premiums -- Premium Flexibility," page
25.
Certain charges will be deducted from each premium payment. See "Charges
and Deductions," page 26. The remainder of the premium, referred to as the "net
premium", will be allocated as described below under "Allocation of Net
Premiums."
ALLOCATION OF NET PREMIUMS
In the application for the Policy, the Policy Owner selects the Subaccounts
of the Variable Account or the Guaranteed Interest Account to which net premium
payments will be allocated. During the Free Look Period, net premiums will be
allocated to the Money Market Subaccount, which invests in the Money Market
Portfolio of the MONY Series Fund. The Fund Value will be automatically
allocated according to the Policy Owner's instructions contained in the
application at the end of the Free Look Period. Net premiums received after the
Free Look Period will be allocated upon receipt among the Subaccounts of the
Variable Account and the Guaranteed Interest Account according to the Policy
Owner's most recent instructions. If instructions for allocation of premiums are
not included in the application or are incomplete, all allocations will be made
to the Money Market Subaccount until a subsequent notification of allocation
percentages is received.
Net premiums may be allocated in whole percentages to any number of
Subaccounts and to the Guaranteed Interest Account, provided that no allocation
may be for less than 10% of a net premium. Allocation percentages must sum to
100%. Available allocation alternatives include the nine Subaccounts and the
Guaranteed Interest Account.
A Policy Owner may change the allocation of net premiums at any time by
submitting a proper written request to the Company's Home Office. In addition,
changes in net premium allocation instructions may be made by telephone if an
authorization for telephone transfer form has been properly completed, signed
and filed at the Company's Syracuse Operations Center. The Company reserves the
right to discontinue telephone net premium allocation instructions. See
"Telephone Transfer Privileges", page 43. The revised allocation percentages
will be applied within seven days from receipt of notification.
Unscheduled premium payments may be allocated either by percentage or by
dollar amount. If the allocation is expressed in dollar amounts, the 10% limit
on allocation percentages does not apply.
DEATH BENEFITS UNDER THE POLICY
When the Policy is issued, the Company will determine the initial amount of
insurance based on the instructions provided in the application. That amount
will be shown on the specifications page of the Policy and is called the
"Specified Amount." The minimum Specified Amount is $100,000.
For so long as the Policy remains in force, the Company will, upon proof of
the death of an Insured, pay death benefit proceeds to a named Beneficiary.
Death benefit proceeds will consist of the death benefit under the Policy, plus
any insurance proceeds provided by Rider, less any Outstanding Debt reduced by
any Unearned Loan Interest (and, if in the Grace Period, further reduced by any
overdue charges).
Each Policy Owner may select one of two death benefit Options: Option I or
Option II. Generally the applicant designates the death benefit Option in the
application. If no Option is designated, Option I will be assumed by the Company
to have been selected. Subject to certain restrictions, the Policy Owner can
change the death benefit Option selected. So long as the Policy remains in
force, the death benefit under either Option will never be less than the
Specified Amount of the Policy.
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<PAGE> 22
OPTION I
Under Option I, the death benefit will be equal to the Specified Amount of
the Policy plus the increase in Fund Value since the last Monthly Anniversary
Day or, if greater, the Fund Value on the date of death plus the Fund Value
(determined as of the end of the Monthly Anniversary Day concurrent with or
prior to the date of death) multiplied by a Death Benefit Percentage. The death
benefit percentages vary according to the Age of the Insured and will be at
least equal to the percentage defined in the Internal Revenue Code, which
addresses the definition of a life insurance policy for tax purposes. See
"Federal Income Tax Considerations -- Definition of Life Insurance," page 31.
The Death Benefit Percentage is 150% for an Insured at Age 40 or under, and it
declines for older Insureds. A table showing the Death Benefit Percentages is in
Appendix A to this prospectus and in the Policy. Policy Owners who are seeking
to have favorable investment performance reflected in increasing Fund Value, and
not in increasing insurance coverage, should choose Option I.
OPTION II
Under Option II, the death benefit will be equal to the Specified Amount of
the Policy plus the Fund Value on the date of death or, if greater, the Fund
Value on the date of death plus the Fund Value (determined as of the end of the
Monthly Anniversary Day concurrent with or prior to the date of death)
multiplied by a Death Benefit Percentage. The Death Benefit Percentage is the
same as that used in connection with Option I and is stated in Appendix A. The
death benefit under Option II will always vary as Fund Value varies. Therefore,
Policy Owners who seek to have favorable investment performance reflected in
increased insurance coverage should choose Option II.
EXAMPLES OF OPTIONS I AND II
The following examples demonstrate the determination of death benefits
under Options I and II. The examples show three Policies -- Policies 1, 2, and
3 -- with the same Specified Amount, but Fund Values that vary as shown, and
which assume an Insured is Age 40 at the time of death and that there is no
Outstanding Debt. The date of death is also assumed to be on a Monthly
Anniversary Day.
<TABLE>
<CAPTION>
POLICY 1 POLICY 2 POLICY 3
-------- -------- --------
<S> <C> <C> <C>
Specified Amount................................... $100,000 $100,000 $100,000
Fund Value on Date of Death........................ $ 35,000 $ 60,000 $ 85,000
Death Benefit Percentage........................... 150% 150% 150%
Death Benefit under Option I....................... $100,000 $150,000 $212,500
Death Benefit under Option II...................... $135,000 $160,000 $212,500
</TABLE>
Under Option I, the death benefit for Policy 1 is equal to $100,000 since
the death benefit is the greater of the Specified Amount ($100,000) or the Fund
Value plus the Fund Value multiplied by the Death Benefit Percentage ($35,000
plus $35,000 X 150% = $87,500). In contrast, for both Policies 2 and 3 under
Option I, the Fund Value plus Fund Value multiplied by the Death Benefit
Percentage ($60,000 plus $60,000 X 150% = $150,000 for Policy 2; $85,000 plus
$85,000 X 150% = $212,500 for Policy 3) is greater than the Specified Amount
($100,000), so the death benefit is equal to the higher value. Under Option II,
the death benefit for Policy 1 is equal to $135,000 since the death benefit is
the greater of Specified Amount plus Fund Value ($100,000 + $35,000 = $135,000)
or the Fund Value plus Fund Value multiplied by the Death Benefit Percentage
($35,000 plus $35,000 X 150% = $87,500). Similarly, in Policy 2, Specified
Amount plus Fund Value ($100,000 + $60,000 = $160,000) is greater than Fund
Value plus Fund Value multiplied by the Death Benefit Percentage ($60,000 plus
$60,000 X 150% = $150,000). In contrast, in Policy 3, the Fund Value plus Fund
Value multiplied by the Death Benefit Percentage ($85,000 plus
$85,000 X 150% = $212,500) is greater than the Specified Amount plus Fund Value
($100,000 + $85,000 = $185,000), so the death benefit is equal to the higher
value.
Death benefit proceeds may be paid to a Beneficiary in a lump sum or under
a payment plan offered under the Policy. The Policy should be consulted for
details.
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<PAGE> 23
CHANGES IN DEATH BENEFIT OPTION
A Policy Owner may request that the death benefit under the Policy be
changed from Option I to Option II, or from Option II to Option I. Changes in
the death benefit Option may be made on any Monthly Anniversary Day and should
be made in writing to the Company's Home Office. A change from Option II to
Option I may be made without evidence of insurability; a change from Option I to
Option II will require evidence of insurability satisfactory to the Company. The
effective date of any such change requested between Monthly anniversaries will
be the next Monthly Anniversary Day after the change is accepted.
A change in the death benefit from Option I to Option II is accomplished by
reducing the Specified Amount of the Policy by the amount of the Policy's Fund
Value at the date of the change. This maintains the death benefit payable under
Option II at the amount that would have been payable under Option I immediately
prior to the change. Although there is no immediate change in the total death
benefit, the change to Option II will affect the determination of the death
benefit from that point on since the Fund Value will then be added to the new
Specified Amount, and the death benefit will then vary with Fund Value. This
change will not be permitted if it would result in a new Specified Amount of
less than $100,000.
A change in the death benefit from Option II to Option I will result in a
decrease in the death benefit payable under the policy. The Specified Amount of
the Policy remains the same before and after the change; however, the death
benefit is reduced to an amount equal to the Specified Amount. From that point
on, the death benefit will equal the Specified Amount (or, if higher, the Fund
Value times the applicable Death Benefit Percentage, as required by the federal
tax law definition of life insurance). The change in Option will generally
reduce the death benefit payable in the future.
A change in death benefit Option may affect the monthly cost of insurance
charge since this charge varies with the net amount at risk, which generally is
the amount by which the death benefit exceeds Fund Value. See "Cost of
Insurance," page 28. Assuming that the Policy's death benefit is not based on
the Death Benefit Percentage under either Option I or II, changing from Option
II to Option I will generally decrease the net amount at risk, and therefore
decrease the cost of insurance charges. Changing from Option I to Option II will
generally result in a net amount at risk that remains level. Such a change,
however, will result in an increase in the cost of insurance charges over time,
since the cost of insurance rates increase with the Insured's Age.
CHANGES IN SPECIFIED AMOUNT
A Policy Owner may request an increase or decrease in the Specified Amount
under a Policy subject to approval from the Company. A change in Specified
Amount may be made at any time after the second Policy anniversary. Increases in
Specified Amount are not permitted on or after the policy anniversary nearest
the Insured's 81st birthday. Increasing the Specified Amount will generally
increase the death benefit payable under the Policy, and decreasing the
Specified Amount will generally decrease the death benefit payable. The amount
of change in the death benefit will depend, among other things, upon the death
benefit Option chosen by the Policy Owner and whether the death benefit under
the Policy is being calculated using the Death Benefit Percentage at the time of
the change. Changing the Specified Amount could affect the subsequent level of
the death benefit while the Policy is in force and the subsequent level of
Policy values. For example, an increase in Specified Amount may increase the net
amount at risk under a Policy, which will increase a Policy Owner's cost of
insurance charges over time. Conversely, a decrease in Specified Amount may
decrease the net amount at risk, which will decrease a Policy Owner's cost of
insurance charges over time.
Any request for an increase or decrease in Specified Amount must be made by
written application to the Company's Home Office. It will become effective on
the Monthly Anniversary Day on or next following the Company's acceptance of the
request. If the Policy Owner is not the Insured, the Company may also require
the consent of the Insured before accepting a request.
INCREASES
Additional evidence of insurability satisfactory to the Company will be
required for an increase in Specified Amount. An increase will not be given for
increments of Specified Amount less than $10,000.
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<PAGE> 24
A requested increase in the Specified Amount will create a new "coverage
segment" for which cost of insurance and other charges will be computed
separately. See "Charges and Deductions," page 26. In addition, the Fund Charge
associated with the Policy will increase. The Fund Charge for the increase is
calculated in a similar manner as for the original Specified Amount. The Target
Premiums, and the required premiums under the Guaranteed Death Benefit Rider, if
applicable, will also be adjusted prospectively to reflect the increase in
Specified Amount. If the Specified Amount is increased at the same time that a
premium payment is received, the increase will be processed before the premium
payment is processed.
If an increase creates a new coverage segment of Specified Amount, premiums
paid after the increase will be allocated to the original and the new coverage
segments in the same proportion that the guideline annual premiums defined by
the federal securities laws for each segment bear to the sum of the guideline
annual premiums for all segments. Fund Value will also be allocated to each
coverage segment.
You will have the right to cancel an increase in the Specified Amount
within the later of (i) 45 days after Part I of the application for the increase
is signed, (ii) ten days (or longer in certain states) after receipt of the
Policy endorsement applicable to the increase, or, (iii) ten days after mailing
or personal delivery of a notice as to the availability of the Free Look
provision. If the increase is canceled, any charges attributable to the increase
will be reversed and then added to your Fund Value, without sales or other
loads. The Policy Fund Charge will also be adjusted to the amount which would
have existed had the increase never taken place.
DECREASES
Any decrease in Specified Amount (whether specifically requested by the
Policy Owner or as a result of a Partial Surrender or a death benefit Option
change) will first be applied to reduce the coverage segments of Specified
Amount associated with the most recent increases, then the next most recent
increases successively, and finally to the original Specified Amount. A decrease
will not be permitted if the Specified Amount would fall below $100,000. A
decrease will not be given if less than $10,000.
If the reduction decreases the Specified Amount during the Fund Charge
period, the Fund Charge on the remaining Specified Amount will be reduced;
however, an amount equal to the reduction in the Fund Charge will be deducted
from the Fund Value. See "Fund Charge," page 29. Target Premiums, and the
required premiums under the Guaranteed Death Benefit Rider, if applicable, will
also be adjusted for the decrease in Specified Amount. If the Specified Amount
is decreased at the same time that a premium payment is received, the decrease
will be processed before the premium payment is processed. Rider coverages may
also be affected by a decrease in Specified Amount.
The Company reserves the right to disallow a requested decrease, and will
not permit a requested decrease, among other reasons, (i) if compliance with the
guideline premium limitations under federal tax law resulting from the requested
decrease would result in immediate termination of the Policy, or (ii) if, to
effect the requested decrease, payments to the Policy Owner would have to be
made from Fund Value for compliance with the guideline premium limitations, and
the amount of such payments would exceed the Surrender Value under the Policy.
If we do not approve a change you have requested, we will send you a written
notice of our decision about making the change. See "Federal Income Tax
Considerations -- Definition of Life Insurance," page 31.
OTHER OPTIONAL INSURANCE BENEFITS
Subject to certain requirements, a Policy Owner may elect to add one or
more of the optional insurance benefits described below to the Policy at the
time of application for a Policy. These other optional insurance benefits are
added to the Policy by Rider. A charge will be deducted monthly from the Fund
Value for each optional insurance benefit added to the Policy. See "Charges and
Deductions," page 26. The amounts of these benefits are fully guaranteed at
issue, and they can be canceled by the Policy Owner at any time. Certain
restrictions may apply and are described in the applicable Rider. In addition,
adding or canceling these benefits may have an effect on the Policy's status as
a modified endowment contract. See "Federal Income Tax
Considerations -- Modified Endowment Contracts," page 33. An insurance agent
authorized to sell the
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<PAGE> 25
Policy can describe these extra benefits further. Samples of the provisions are
available from the Company upon written request.
From time to time we may make available Riders other than those listed
below. Contact an insurance agent authorized to sell the Policy for a complete
list of the Riders available.
WAIVER OF MONTHLY DEDUCTIONS RIDER
This Rider provides that during a covered disability of the Insured, while
the Policy remains in force, the monthly administrative charges, cost of
insurance charges and Rider charges will be waived and therefore not deducted
from the Fund Value.
ACCIDENTAL DEATH BENEFIT RIDER
This Rider will pay the benefit amount selected if the Insured dies as a
result of an accident after the Insured's Age 5 and prior to Age 70. A benefit
equal to twice the Rider amount is payable if accidental death occurs as the
result of riding as a passenger in a public conveyance then being operated
commercially to transport passengers for hire. The maximum amount of coverage is
the initial specified amount but not more than the greater of $100,000 total
coverage of all such insurance in the Company or in any insurance company
affiliate of the Company nor more than $200,000 of all such coverages,
regardless of insurance companies issuing such coverages.
PURCHASE OPTION RIDER
This Rider provides the option to purchase up to $50,000, but not less than
$25,000, of additional coverage without providing additional evidence that the
Insured remains insurable. Increases under this Rider may be added on the Policy
anniversary when the Insured's Age is 25, 28, 31, 34, 37 and 40. In addition,
the future right to purchase new insurance on the next option date may be
advanced and exercised immediately upon marriage of the Insured, or the birth of
a child of the Insured, or upon the legal adoption of a child by the Insured. A
period of term insurance is automatically provided starting on the date of the
specified event. The interim term insurance, and the option to accelerate the
purchase of the coverage expires 60 days after the specified event.
SPOUSE'S TERM RIDER
This Rider provides for term insurance benefits on the life of the
Insured's spouse, to the spouse's Age 70. The minimum amount of coverage is
$25,000 and the maximum amount of coverage equals the Specified Amount of the
Policy. The Rider coverage may be converted without evidence of insurability to
any level premium, level face amount permanent plan of insurance offered by the
Company at any time prior to the Spouse's Age 65 or 5 years from the issue of
the Rider, if later.
CHILDREN'S TERM INSURANCE RIDER
This Rider provides term insurance coverage on the lives of the children of
the Insured under age 18 which continues to the Policy anniversary nearest the
Insured's Age 65 or the child's 22nd birthday, if earlier. It provides coverage
for children upon birth or legal adoption without presenting evidence of
insurability. Coverage is limited to the lesser of the initial Specified Amount
or $10,000. Upon the expiration of the Rider coverage it may be converted to any
level premium, level face amount permanent plan of insurance then offered by the
Company.
BENEFITS AT MATURITY
If the Insured is living on the Maturity Date, the Company will pay to the
Policy Owner, as an endowment benefit, the Surrender Value of the Policy.
Payment ordinarily will be made within seven days of the Policy Anniversary,
although payments may be postponed in certain circumstances. See "Payments,"
page 40.
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<PAGE> 26
POLICY VALUES
FUND VALUE
The Fund Value is the sum of the amounts under the Policy held in each
Subaccount of the Variable Account and any Guaranteed Interest Account, as well
as the amount set aside in the Company's Loan Account, and any interest thereon,
to secure Outstanding Debt.
On each Valuation Date, the portion of the Fund Value allocated to any
particular Subaccount will be adjusted to reflect the investment experience of
that Subaccount. On each Monthly Anniversary Day, the portion of the Fund Value
allocated to a particular Subaccount also will be adjusted to reflect the
assessment of the monthly deduction. See "Determination of Fund Value," page 21.
No minimum amount of Fund Value is guaranteed. A Policy Owner bears the risk for
the investment experience of Fund Value allocated to the Subaccounts.
CASH VALUE
The Cash Value of the Policy equals the Fund Value less the Fund Charge.
Thus, the Fund Value will exceed the Policy's Cash Value by the amount of the
Fund Charge. Once the Fund Charge has expired, the Fund Value will equal the
Cash Value.
SURRENDER VALUE
The Surrender Value of the Policy equals the Cash Value less any
Outstanding Debt reduced by any Unearned Loan Interest. The Owner can surrender
a Policy at any time while the Insured is living and receive its Surrender
Value. See "Surrender," page 24.
DETERMINATION OF FUND VALUE
Although the death benefit under a Policy can never be less than the
Policy's Specified Amount, the Fund Value will vary depending upon several
factors, including the investment performance of the Subaccounts to which Fund
Value has been allocated, payment of premiums, the amount of any Outstanding
Debt, Partial Surrenders, Preferred Partial Surrenders, and the charges assessed
in connection with the Policy. There is no guaranteed minimum Fund Value and the
Policy Owner bears the entire investment risk relating to the investment
performance of Fund Value allocated to the Subaccounts.
The amounts allocated to the Subaccounts will be invested in shares of the
corresponding Portfolios of the Funds. The value of the Subaccounts will reflect
the investment experience of the corresponding Portfolio. The investment
experience reflects the investment income, realized and unrealized capital gains
and losses and expenses of the Portfolio and any dividends or distributions
declared by a Portfolio. Any dividends or distributions from any Portfolio of
the Funds will be automatically reinvested in shares of the same Portfolio,
unless the Company, on behalf of the Variable Account, elects otherwise. The
Subaccount value will also reflect the mortality and expense risk charges the
Company makes each day to the Variable Account.
Amounts allocated to the Subaccounts are measured in terms of Units, which
are a measure of value used for bookkeeping purposes. The value of amounts
invested in each Subaccount is represented by the value of the Units credited to
the Policy for that Subaccount. On any given day, the amount in a Subaccount of
the Variable Account is equal to the Unit value times the number of Units
credited to the Policy in that Subaccount. The Units of each Subaccount will
have different Unit values.
Units of a Subaccount are purchased (credited) whenever premiums or
transfer amounts (including transfers from the Loan Account) are allocated to
that Subaccount. Units are redeemed (debited) to make Partial Surrenders,
Preferred Partial Surrenders, to transfer amounts from a Subaccount (including
transfers to the Loan Account), and to pay the death benefit when the Insured
dies. Units are also redeemed to pay the monthly deductions from the Policy's
Fund Value, for Policy transaction charges, and to pay Fund Charges, if any. The
number of Units purchased or redeemed in connection with any such transaction is
determined by dividing the dollar amount of such transaction by the Unit Value
of the affected Subaccount, calculated after
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<PAGE> 27
the close of business that day. The number of Units changes only as a result of
Policy transactions or charges; the number of Units credited will not change
because of subsequent changes in Unit Value.
Transactions are processed as of the Transaction Date. The Transaction Date
is the date a premium or an acceptable written or telephone request is received
at the Home Office. If the premium or request reaches the Home Office on a day
which is not a Valuation Date, or after the close of business on a Valuation
Date (that is, after 4:00 p.m. Eastern Time), the Transaction Date will be the
next succeeding Valuation Date. All Policy transactions are performed as of a
Valuation Date. If a Transaction Date or Monthly Anniversary Day occurs on a day
other than a Valuation Date (e.g., on a Saturday), the calculation will take
place on the next Valuation date (e.g., on the following Monday).
CALCULATING UNIT VALUES FOR EACH SUBACCOUNT
The Unit Value of a Subaccount on any Valuation Date is calculated by the
Company on every Valuation Date as follows:
1. Calculate the value of the shares of the Portfolio belonging to the
Subaccount as of the close of business that Valuation Date (before giving
effect to any Policy transactions for that day, such as premium payments or
surrenders). For this purpose, the Net Asset Value per share reported to the
Company by the managers of the Portfolio is used.
2. Add the value of any dividends or capital gains distributions
declared and reinvested by the Portfolio during the Valuation Period.
Subtract from this amount a charge for taxes, if any.
3. Subtract a charge for the mortality and expense risk assumed by the
Company under the Policy. See "Daily Deductions From the Variable
Account -- Mortality and Expense Risk Charge", page 27. If the previous day
was not a Valuation Date, then the charge is adjusted for the additional
days between valuations.
4. Divide the resulting amount by the number of Units held in the
Subaccount on the Valuation Date before the purchase or redemption of any
Units on that Date.
The Unit Value of each Subaccount on its first Valuation Date was set at $10.00.
TRANSFER OF FUND VALUE
Fund Value may be transferred after the Free Look Period among the
Subaccounts by the Policy Owner upon proper written request to the Company's
Home Office. Transfers may be made by telephone if an authorization for
telephone transfer form has been properly completed and signed and filed at the
Company's Syracuse Operations Center. See "Telephone Transfer Privileges," page
43. Currently, there are no limitations on the number of transfers between
Subaccounts, no minimum amount required for a transfer, nor any minimum amount
required to remain in a given Subaccount after a transfer. Further, no transfer
may be made if a Policy is in the Grace Period and a payment required to avoid
lapse is not paid. See "Grace Period and Lapse," page 25. No charges are
currently imposed upon such transfers. The Company reserves the right, however,
at a future date to assess a $25 transfer charge on Policy transfers in excess
of twelve in any Policy year and to discontinue telephone transfers.
Fund Value may also be transferred after the Free Look Period and within
specified limits from the Subaccounts to the Guaranteed Interest Account;
however, such a transfer will only be permitted in the Policy month following a
Policy Anniversary. Transfers from the Guaranteed Interest Account to the
Subaccounts are also restricted as described in "The Guaranteed Interest
Account," page 37.
RIGHT TO EXCHANGE POLICY
During the first 24 months following the Policy Date or an increase in the
Specified Amount, the Policy Owner may exercise the right to exchange the Policy
from one in which the investment experience is not guaranteed into a guaranteed
Policy. This is accomplished by the transfer of the entire amount in the
Subaccounts of the Variable Account to the Guaranteed Interest Account, and the
allocation of all future
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<PAGE> 28
premium payments to the Guaranteed Interest Account. This will, in effect, serve
as an exchange of the Policy for the equivalent of a flexible premium universal
life insurance policy. No charge will be imposed on the transfer in exercising
this exchange privilege. See "The Guaranteed Interest Account," page 37.
POLICY LOANS
The Policy Owner may borrow money from the Company at any time using the
Policy as the only security for the loan by submitting a proper written request
to the Company's Home Office. A loan may be taken any time a Policy has a
positive Cash Value. The minimum loan that can be taken is $250. The maximum
amount that can be borrowed at any time is 90% of the Cash Value of the Policy
less any Outstanding Debt. (If the loan is requested on a Monthly Anniversary
Day, the maximum loan amount is further reduced by the monthly deduction due on
that day.) The Outstanding Debt is the cumulative amount of outstanding loans
and loan interest payable to the Company at any time.
Loan interest is payable in advance at an annual rate of 5.4%. Since
interest is payable in advance, a Policy loan will generate Outstanding Debt
which exceeds the loan amount. For example, a $10,000 loan taken on the first
day of the Policy year will generate Outstanding Debt of $10,575. Interest on
the full amount of any Outstanding Debt is due for each subsequent Policy year
on the Policy Anniversary, until the Outstanding Debt is repaid. If interest is
not paid when due, it will be added to the amount of the Outstanding Debt.
The Owner may repay all or part of the Outstanding Debt at any time while
the Policy is in force. Only payments indicated as loan or interest payments
will be treated as such. Loan repayments reduce the Outstanding Debt by the
amount of the payment plus a factor reflecting the interest previously paid in
advance for that Policy year on the Outstanding Debt. For example, a loan
repayment of $10,000 on the first day of the Policy year will reduce the
Outstanding Debt by $10,575. The difference between the loan repayment and the
reduction in the Outstanding Debt is referred to as Unearned Loan Interest. If a
loan repayment is made which exceeds the Outstanding Debt, the excess will be
applied as a Scheduled Premium Payment.
When a Policy Owner takes a loan, an amount equal to the loan is
transferred out of the Policy Owner's Fund Value in the Subaccounts and the
Guaranteed Interest Account into the Loan Account to secure the loan. The Policy
Owner may, within certain limits, specify the amount or the percentage of the
loan amount to be deducted from the Subaccounts. The maximum portion of the loan
which may be allocated to the Guaranteed Interest Account is equal to the
Guaranteed Interest Account's prorated portion of the loan based on the Fund
Values on the date of the loan. If the Policy Owner does not specify the source
of the transfer, or if the transfer instructions are incorrect, loan amounts
will be deducted from the Subaccounts and the Guaranteed Interest Account in the
proportion that each bears to the Fund Value less Outstanding Debt. Each Policy
Anniversary, an amount equal to the loan interest due and unpaid for the Policy
Year will be transferred to the Loan Account from the Subaccounts and Guaranteed
Interest Account on the basis specified by the Policy Owner, or, if not
specified, on a proportional basis.
The Loan Account is a part of the Company's General Account. Amounts held
in the Loan Account are credited monthly with a fixed rate of interest equal to
an annualized rate of 5.0%. After the tenth Policy anniversary, the annual
interest rates that are applicable to the Loan Account will be .5% higher than
the rates applicable to policies of the same type which have not yet reached
their tenth policy anniversary. This increase is based on a reduction in the
Company's hold back margin for profit and expenses. This increase is guaranteed
and will be credited only when interest in excess of the 5% guaranteed rate is
being applied to amounts allocated to the Guaranteed Interest Account for
policies of the same type which have not yet reached their tenth policy
anniversary.
Loan repayments release funds from the Loan Account. Unless otherwise
requested by a Policy Owner, amounts released from the Loan Account as a result
of a loan repayment will be transferred into the Subaccounts and Guaranteed
Interest Account in accordance with the most recent allocation instructions for
Scheduled Premium Payments, subject to the limitation of maintaining no more
than $250,000 in the Guaranteed Interest Account. In addition, any interest
earned on the amount held in the Loan Account will be transferred to each of the
Subaccounts and Guaranteed Interest Account on the same basis.
23
<PAGE> 29
While the amount to secure the Outstanding Debt is held in the Loan
Account, the Policy Owner forgoes the investment experience of the Subaccounts
and the current interest rate of the Guaranteed Interest Account on that amount.
Thus Outstanding Debt, whether or not repaid, will have a permanent effect on
the Policy's values and may have an effect on the amount and duration of the
death benefit. If not repaid, the Outstanding Debt reduced by any Unearned Loan
Interest will be deducted from the amount of death benefit paid upon the death
of the Insured, or the Surrender Value paid upon surrender or maturity.
Outstanding Debt may affect the length of time the Policy remains in force.
After the second Policy Anniversary, the Policy will lapse when Cash Value minus
Outstanding Debt is insufficient to cover the monthly deduction against the
Policy's Fund Value on any Monthly Anniversary Day and the minimum payment
required is not made during the Grace Period. Moreover, the Policy may enter the
Grace Period more quickly when Outstanding Debt exists, because the Outstanding
Debt is not available to cover the monthly deduction. Additional payments or
repayment of a portion of Outstanding Debt may be required to keep the Policy or
Rider in force. See "Grace Period and Lapse," page 25.
A loan will not be treated as a distribution from the Policy and will not
result in taxable income to the Policy Owner unless the Policy is a modified
endowment contract, in which case a loan will be treated as a distribution that
may give rise to taxable income. For more information on the tax treatment of
loans, see "Federal Income Tax Considerations," page 31.
FULL SURRENDER
A Policy Owner may fully surrender a Policy at any time during the life of
the Insured. The amount received in the event of a full surrender is the
Policy's Surrender Value, which is equal to its Fund Value less any applicable
Fund Charge and less any Outstanding Debt reduced by any Unearned Loan Interest.
A Policy Owner may surrender a Policy by sending a written request together
with the Policy to the Company's Home Office. The proceeds will be determined as
of the end of the Valuation Period during which the request for a surrender is
received. A Policy Owner may elect to have the proceeds paid in cash or applied
under a payment plan offered under the Policy. See "Payment Plan," page 40. For
information on the tax effects of a surrender of a Policy, see "Federal Income
Tax Considerations," page 31.
PARTIAL SURRENDER
A Partial Surrender allows the Policy Owner to obtain a portion of the
Surrender Value of the Policy without having to surrender the Policy in full. A
Partial Surrender may be made after the second Policy anniversary. There is
currently no limit on the number of Partial Surrenders allowed in a Policy year,
but the Company reserves the right to limit the number of Partial Surrenders to
12 per year.
A Partial Surrender must be for at least $500 (plus the applicable fee),
and the Policy's Surrender Value after the Partial Surrender must be at least
$500.
The Policy Owner may make a Partial Surrender by submitting a proper
written request to the Company's Home Office. As of the effective date of any
Partial Surrender, the Policy Owner's Fund Value, Cash Value, and Surrender
Value will be reduced by the amount surrendered (plus the applicable fee). The
amount of the Partial Surrender (plus the applicable fee) will be allocated
proportionately to the Policy Owner's Fund Value in the Subaccounts and the
Guaranteed Interest Account unless otherwise requested by the Policy Owner. If
the Insured dies after the request for a Partial Surrender is sent to the
Company and prior to the Partial Surrender being effected, the amount of the
Partial Surrender will be deducted from the death benefit proceeds, which will
be determined without taking into account the amount surrendered.
When a Partial Surrender is made on a Policy on which the Owner has
selected death benefit Option I, the Specified Amount under the Policy is
decreased by the lesser of (i) the amount of the Partial Surrender or (ii) if
the death benefit prior to the Partial Surrender is greater than the Specified
Amount, the amount, if any, by which the Specified Amount exceeds the difference
between the death benefit and the amount of the Partial Surrender. A Partial
Surrender will not change the Specified Amount of a Policy on which the Owner
has selected death benefit Option II. However, assuming that the death benefit
is not equal to Fund Value plus
24
<PAGE> 30
Fund Value times a death benefit percentage, the Partial Surrender will reduce
the death benefit by the amount of the Partial Surrender. To the extent the
death benefit is based upon the Fund Value plus Fund Value times the death
benefit percentage applicable to the Insured, a Partial Surrender may cause the
death benefit to decrease by an amount greater than the amount of the Partial
Surrender. See "Death Benefits under the Policy," page 16.
A fee for each Partial Surrender will be assessed. See "Charges and
Deductions -- Transaction and Other Charges", page 30. In addition, a portion of
the Fund Charge may be assessed if the Specified Amount is reduced as a result
of the Partial Surrender. See "Charges and Deductions -- Fund Charge," page 29.
For information on the tax treatment of Partial Surrenders, see "Federal
Income Tax Considerations," page 31.
PREFERRED PARTIAL SURRENDER
A Fund Charge which otherwise would have been imposed, will not be imposed
to the extent required to permit the Policy Owner to receive amounts up to 10%
of the Cash Value of the Policy each year (on the date the first request for a
Partial Surrender is received in a Policy Year). The Partial Surrender Fee will,
however, be charged. The Company reserves the right to limit the number of
partial surrenders available under the Preferred Partial Surrender to not more
than 12 per policy year.
GRACE PERIOD AND LAPSE
In general, the Policy and all Riders attached to it will continue in force
as long as the Cash Value less Outstanding Debt of the Policy is sufficient to
pay all the deductions that are taken from Fund Value each month. The Policy
will lapse only when the Cash Value less Outstanding Debt is insufficient to
cover the current monthly deduction against the Policy's Fund Value on any
Monthly Anniversary Day, and a 61-day Grace Period expires without the Policy
Owner making a sufficient payment.
SPECIAL RULE FOR FIRST TWO POLICY YEARS
During the first two Policy years, if on each Monthly Anniversary Day the
sum of premiums paid, less the sum of Partial Surrenders (and its fees) and any
Outstanding Debt is greater than or equal to the Minimum Monthly Premiums times
the number of completed Policy months, the Policy and all attached Riders are
guaranteed not to lapse, regardless of the amount of Cash Value less Outstanding
Debt.
If the insufficiency occurs at any time after the second Policy
anniversary, or if the Minimum Monthly Premium test has not been met during the
first two Policy years, the Policy may be at risk of lapse, as explained below.
If an insufficiency occurs the Owner must pay during the Grace Period the
amount required under the Policy to avoid Lapse. In addition, payment of any
loan interest accrued for the Policy year but unpaid as of the Monthly
Anniversary Day when insufficiency occurs may be required prior to the end of
the Grace Period.
The Company will not accept any payment if it would cause the Policy
Owner's total premium payments to exceed the maximum permissible premium for the
Policy's Specified Amount under the Internal Revenue Code. This may occur when
the Policy Owner has Outstanding Debt, in which case the Policy Owner could
repay a sufficient portion of the Outstanding Debt to avoid termination. In this
instance, the Policy Owner may wish to repay an additional portion of the
Outstanding Debt to avoid recurrence of the potential lapse. If premium payments
have not exceeded the maximum permissible premiums for the Policy's Specified
Amount, the Policy Owner may also wish to make larger or more frequent premium
payments to avoid recurrence of the potential lapse.
If the Cash Value of the Policy less Outstanding Debt is insufficient to
cover the entire monthly deduction on a Monthly Anniversary Day, the Company
will deduct the amount that is available. The Company will notify the Policy
Owner (and any assignee of record) of the payment required to keep the Policy in
force. The Policy Owner will then have a Grace Period of 61 days, measured from
the date the notice
25
<PAGE> 31
is sent, to make the required payment. During the first two Policy years, the
payment required is the amount of Minimum Monthly Premium not paid plus not less
than two succeeding Minimum Monthly Premiums (or the number of Minimum Monthly
Premiums remaining until the next Scheduled Premium due date). After the Second
Policy anniversary, the payment required is the amount of the Monthly Deduction
not paid plus not less than two succeeding Monthly Deductions (or the number of
Monthly Deductions remaining until the next Scheduled Premium due date), grossed
up by the amount of the Deductions from Premiums (see "Charges and
Deductions -- Deductions from Premiums", page 26). The Policy will remain in
force through the Grace Period. Failure to make the required payment within the
Grace Period will result in termination of coverage under the Policy, and the
Policy will lapse. If the required payment is made during the Grace Period, any
premium paid will be allocated among the Subaccounts of the Variable Account and
the Guaranteed Interest Account in accordance with the Policy Owner's current
Scheduled Premium Payment allocation instructions. Any monthly deduction due
will be charged to the Subaccounts and the Guaranteed Interest Account on a
proportionate basis. If the Insured dies during the Grace Period, the death
benefit proceeds will equal the amount of the death benefit immediately prior to
the commencement of the Grace Period, reduced by any unpaid monthly deductions
and any Outstanding Debt reduced by any Unearned Loan Interest.
REINSTATEMENT
The Company will reinstate a lapsed Policy (but not a Policy which has been
surrendered for its Surrender Value) at any time within five years after the
Monthly Anniversary Day immediately before the start of the Grace Period but
before the Maturity Date, provided the Company receives the following: (i) a
written application from the Policy Owner; (ii) evidence of insurability
satisfactory to the Company; (iii) payment of all monthly deductions that were
due and unpaid during the Grace Period; (iv) payment of an amount at least
sufficient to keep the Policy in force for three months after the date of
reinstatement; and (v) payment of due and unpaid interest on Outstanding Debt to
the next succeeding Policy Anniversary Day.
When the Policy is reinstated, the Fund Value will be equal to the Fund
Value on the date of the lapse, subject to the following: (i) the Fund Charge
will be equal to the Fund Charge that would have existed had the Policy been in
force since the original Policy Date; (ii) the Fund Value will be reduced by the
decrease, if any, in the Fund Charge during the period which the Policy was not
in force; (iii) any Outstanding Debt on the date of lapse will also be
reinstated; and, (iv) no interest on amounts held in the Company's Loan Account
to secure Outstanding Debt will be paid or credited between lapse and
reinstatement. Reinstatement will be effective as of the Monthly Anniversary Day
on or preceding the date of approval by the Company, and Fund Value minus, if
applicable, Outstanding Debt will be allocated among the Subaccounts and the
Guaranteed Interest Account in accordance with the Policy Owner's most recent
Scheduled Premium Payment allocation instructions.
CHARGES AND DEDUCTIONS
DEDUCTIONS FROM PREMIUMS
Certain charges are deducted from each premium payment under a Policy prior
to allocation of the net premium to the Policy Owner's Fund Value. These charges
consists of the following items:
SALES CHARGE
The sales charge is equal to 4% of each premium paid during the first ten
Policy Years, 2% of each premium paid during Policy years 11 through 20, and
none thereafter.
The sales charge is deducted to compensate the Company for the cost of
distributing the Policies. The amount derived by the Company from the sales
charge is not expected to be sufficient to cover the sales and distribution
expenses in connection with the Policies. If surrendered within 15 years after
issuance, or within 15 years following an increase in the Specified Amount, the
Policy will also be subject to a Fund Charge, which is described on page 29. To
the extent that sales and distribution expenses exceed sales charges and any
26
<PAGE> 32
amounts derived from the sales Fund Charge, such expenses may be recovered from
other charges, including amounts derived indirectly from the charge for
mortality and expense risks and from mortality gains.
TAX CHARGES
All states levy taxes on life insurance premium payments. The amount of
these taxes vary from state to state, and may vary from jurisdiction to
jurisdiction within a state. For policyholders resident in New York, the Company
currently deducts an amount equal to 0.8% of each premium to pay applicable
premium taxes. Currently, these taxes range from 0% to 4%. The 0.8% deduction is
the actual premium tax imposed by the State of New York. The Company does not
expect to make a profit from this charge.
A charge currently equal to 1.25% of each premium payment is deducted from
each premium to cover the estimated cost for the Federal income tax treatment of
deferred acquisition costs determined solely by the amount of life insurance
premiums received. The Company believes this charge for deferred acquisitions
costs is reasonable in relation to the Company's increased federal tax burden
under IRC Section 848 resulting from the receipt of premium payments. No charge
will be deducted where premiums received from a Policy Owner are not subject to
this tax.
The Company reserves the right to increase or decrease charge for taxes due
to any change in tax law or due to any change in the cost to the Company.
DAILY DEDUCTIONS FROM THE VARIABLE ACCOUNT
MORTALITY AND EXPENSE RISK CHARGE
Each day a charge is deducted for mortality and expense risks assumed by
the Company. During the first 10 Policy years, this charge is equal to .002055%
per day of the amount in the Subaccounts of the Variable Account, which is
equivalent to an annual rate of .75% of the portion of the Policy Fund Value
allocated to the Variable Account. Each month the Policy remains in force after
the tenth Policy Anniversary, the Fund Value allocated to the Subaccounts will
be credited with an amount which will effectively reduce the Mortality and
Expense Risk Charge. This amount will be determined by multiplying the Fund
Value in all Subaccounts by 0.04167% which is equivalent to 0.5% on an
annualized basis. This amount is guaranteed and will be allocated among the
Subaccounts proportionately on each Monthly Anniversary Day following the tenth
Policy anniversary.
The mortality and expense risk charge is assessed to compensate the Company
for assuming mortality and expense risks under the Policies. The mortality risk
assumed is that Insureds, as a group, may live for a shorter period of time than
estimated and, therefore, the cost of insurance charges specified in the Policy
will be insufficient to meet the Company's actual claims. The expense risk the
Company assumes is that other expenses incurred in issuing and administering the
Policies and operating the Variable Account will be greater than the amount
estimated when setting the charges for these expenses. The Company will realize
a profit from this fee to the extent it is not needed to provide benefits and
pay expenses under the Policies. The Company may use this profit for other
purposes, including any distribution expenses not covered by the sales charge or
Sales Fund Charge.
This charge is not assessed against the amount of the Policy Fund Value
which is allocated to the Guaranteed Interest Account, nor to amounts in the
Loan Account.
27
<PAGE> 33
MONTHLY DEDUCTIONS FROM FUND VALUE
A charge called the monthly deduction is deducted from a Policy's Fund
Value in the Subaccounts and Guaranteed Interest Account beginning on the Policy
Date and on each Monthly Anniversary Day thereafter. The monthly deduction
consists of the following items:
COST OF INSURANCE
This monthly charge compensates the Company for the anticipated cost of
paying death benefits in excess of Fund Value to Beneficiaries of Insureds who
die. The amount of the charge is equal to a current cost of insurance rate
multiplied by the net amount at risk under a Policy at the beginning of the
Policy Month. The net amount at risk for these purposes is equal to the amount
of death benefit payable at the beginning of the Policy Month less the Fund
Value at the beginning of the Policy Month.
The Policy contains guaranteed cost of insurance rates that may not be
increased. The guaranteed rates are based on the 1980 Commissioners Standard
Ordinary Smoker and Nonsmoker Mortality Tables (for issue ages under 18, no
smoker/nonsmoker adjustment is made and where unisex cost of insurance rates
apply, the 1980 Commissioners Ordinary Mortality Table B). These rates are based
on the Age and underwriting class of the Insured. They are also based on the
gender of the Insured, except that unisex rates are used where appropriate under
applicable law, including in Policies purchased by employers and employee
organizations in connection with employment related insurance or benefit
programs. As of the date of this prospectus, the Company charges "current rates"
that are lower (i.e., less expensive) than the guaranteed rates, and the Company
may also change current rates in the future. Like the guaranteed rates, the
current rates also vary with the age, gender, smoking status, and underwriting
class of the Insured. In addition, they also vary with the policy duration. The
cost of insurance rate generally increases with the Age of the Insured.
If there have been increases in the Specified Amount, then for purposes of
calculating the cost of insurance charge, the Fund Value will first be applied
to the initial Specified Amount. If the Fund Value exceeds the initial Specified
Amount, the excess will then be applied to any increase in Specified Amount in
the order of the increases. If the death benefit equals the Fund Value
multiplied by the applicable death benefit percentage, any increase in Fund
Value will cause an automatic increase in the death benefit. The underwriting
class and duration for such increase will be the same as that used for the most
recent increase in Specified Amount (that has not been eliminated through a
subsequent decrease in Specified Amount).
ADMINISTRATIVE CHARGE
An administrative charge is deducted monthly from the Fund Value. The
amount of this charge varies by Issue Age of the Insured, Policy duration and
with the size of a Policy's Specified Amount.
<TABLE>
<CAPTION>
EACH POLICY MONTH
FIRST 12 POLICY MONTHS THEREAFTER
---------------------- -----------------
<S> <C> <C>
Specified Amount:
Less than $250,000............................ $31.50* $6.50
$250,000 to $499,999.......................... 28.50* 3.50
$500,000 or more.............................. 25.00* None
</TABLE>
- ---------------
* Reduced by $5.00 for issue ages 0 through 17.
For purposes of this charge, if an increase or decrease in Specified Amount
causes a Policy to change bands, the monthly administrative charges on the
Monthly Anniversary Day of the change will be adjusted to reflect the new
Specified Amount. The administrative charge is assessed to reimburse the Company
for the expenses associated with administration and maintenance of the Policies.
The administrative charge is guaranteed never to exceed these amounts. The
Company does not expect to profit from this charge.
28
<PAGE> 34
OTHER OPTIONAL INSURANCE BENEFITS CHARGES
The monthly deduction will include charges for any other optional insurance
benefits added to the Policy by Rider. See "Other Optional Insurance Benefits,"
page 19.
FUND CHARGE
There will be a difference between the Fund Value of the Policy and its
Cash Value for at least the first fourteen Policy years. This difference is the
Fund Charge, a contingent deferred load. It is a contingent load because it is
assessed only if the Policy is surrendered, if the Policy lapses, or if the
Specified Amount of the Policy is decreased. It is a deferred load because it is
not deducted from the premiums paid. The Fund Charge consists of two charges: an
Administrative Fund Charge and a Sales Fund Charge. The Company will assess the
Fund Charge against the Fund Value upon surrender, lapse or reduction in
Specified Amount within fourteen years after its issuance, or within fourteen
years following an increase in Specified Amount.
ADMINISTRATIVE FUND CHARGE
The Administrative Fund Charge is equal to an amount per thousand dollars
of Specified Amount as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE
ISSUE AGE FUND CHARGE
------------------------------------------------------------------------ --------------
<S> <C>
0-25.................................................................... $ 2.50
26...................................................................... 3.00
27...................................................................... 3.50
28...................................................................... 4.00
29...................................................................... 4.50
30 or higher............................................................ 5.00
</TABLE>
The amount of the charge remains level for five Policy years. After the fifth
Policy Anniversary, the charge decreases by 10% per year until it reaches zero
at the end of the 14th Policy year. An additional Administrative Fund Charge is
created each time a new coverage segment of Specified Amount is added. The
Administrative Fund Charge related to the increased Specified Amount decreases
over the 14 years following the date of the increase on a scale identical to
that of the original Administrative Fund Charge.
For example, if a Policy issued at Age 40 with an initial Specified Amount
of $100,000 is surrendered in the third Policy Year, the Administrative Fund
Charge would be $500 ($100 times $5.00). If that Policy is increased in the
fourth Policy year to $150,000 and is subsequently surrendered in the seventh
policy year, the total Administrative Fund Charge would be $650 ($100 times
$5.00 times 80%, plus $50 times $5.00.)
The Administrative Fund Charge is designed to cover the administrative
expenses associated with underwriting and issuing a Policy, including the costs
of processing applications, conducting medical examinations, determining
insurability and the Insured's underwriting class, and establishing policy
records. The Company does not expect to profit from the Administrative Fund
Charge.
SALES FUND CHARGE
To determine the Sales Fund Charge, a "Target Premium" is used. The Target
Premium is not based on the Minimum Annual Premiums or the Scheduled Premium
Payments. The maximum Sales Fund Charge for the initial Specified Amount of the
Policy will be equal to the following percentage of premiums paid up to one
Target Premium. The maximum Sales Fund Charge will not vary based on the amount
of premiums paid or the timing of the premium payments. The actual Sales Fund
Charge for a Policy is a percentage of the
29
<PAGE> 35
premiums paid on the Policy during the first five Policy years, up to the
maximum. This percentage varies by the Age of the Insured on the Policy Date as
follows:
<TABLE>
<CAPTION>
NON QUALIFIED QUALIFIED
------------------------------------------ ------------------------------------------
PERCENTAGE OF PERCENTAGE OF
AGE PREMIUMS PAID AGE PREMIUMS PAID
--------------------------- ------------- --------------------------- -------------
<S> <C> <C> <C>
0-17....................... 50% 18-35...................... 75%
18-38...................... 75 36-37...................... 70
39-45...................... 70 38-45...................... 65
46-67...................... 65 46-68...................... 60
68......................... 60 69......................... 55
69......................... 55 70......................... 50
70-80...................... 50
</TABLE>
Therefore, the Sales Fund Charge can increase as premiums are paid during the
five year period. Starting on the fifth Policy anniversary, the charge decreases
from its maximum by 10% per year until it reaches zero at the end of the 14th
year.
During the first two Policy years, the Sales Fund Charge will be further
limited.
As an example of the Sales Fund Charge calculation, if a Male Insured Age
25 purchases a Policy with a Specified Amount of $100,000, the Target Premium,
based upon the assumptions described above, would be $580.00 (Preferred,
nonsmoker, Death Benefit Option I). The maximum Sales Fund Charge during the
first five Policy Years would be 75% of this amount, or $435.00.
The purpose of the Sales Fund Charge is to reimburse the Company for some
of the expenses of distributing the Policies.
EFFECT OF CHANGES IN SPECIFIED AMOUNT ON THE FUND CHARGE
The Fund Charge will increase when a new coverage segment of Specified
Amount is created due to a requested increase in coverage. The Fund Charge
related to the increase will be calculated in the same manner as the Fund Charge
for the original Specified Amount, and will be reduced over the 15 year period
following the increase. For purposes of calculating the sales Fund Charge,
premiums paid after the increase will be allocated to Specified Amount segments
in the same proportion that the guideline annual premium as defined by the
federal securities laws for each segment bear to the sum of the guideline annual
premiums for all coverage segments. The new Fund Charge for the Policy will
equal the remaining portion of the Fund Charge for the original Specified
Amount, plus the Fund Charge related to the increase.
A portion of the Fund Charge will be deducted from the Fund Value whenever
the Specified Amount of the Policy is reduced. This may result from a requested
decrease, a change of death benefit option from Option II to Option I, or a
Partial Surrender. The Fund Charge, as well as the transaction charge assessed
for the Partial Surrender, if applicable, will be deducted from the Subaccounts
and the Guaranteed Interest Account on the same basis that the Partial Surrender
is allocated. For purposes of this calculation, if any Subaccount or the
Guaranteed Interest Account is insufficient to provide for its share of the
deduction, the entire deduction will be pro-rated among the Subaccounts from
which the Partial Surrender is deducted in relation to their Fund Values. The
remaining Fund Charge which applies to the Policy will be reduced
proportionately for the amount of the Fund Charge which was assessed against the
Fund Value.
TRANSACTION AND OTHER CHARGES
A Partial Surrender fee will be deducted from the Fund Value for each
Partial Surrender Transaction. The fee will equal the lesser of $25 and 2% of
the Partial Surrender amount. This charge is guaranteed not to exceed these
amounts.
The Company currently does not charge for transfers of Fund Value between
the Subaccounts. The Company does, however, reserve the right to assess a $25
charge on transfers which exceed twelve in any Policy year.
30
<PAGE> 36
The Company may charge the Subaccounts for federal income taxes incurred by
the Company that are attributable to the Variable Account and its Subaccounts.
No such charge is currently assessed. See "Charge for Company Income Taxes,"
page 35.
The Company will bear the direct operating expenses of the Variable
Account. The Subaccounts purchase shares of the corresponding Portfolio of the
underlying Funds. The Funds and each of their Portfolios incur certain charges
including the investment advisory fee and certain operating expenses. The Funds
are governed by their Boards. The Funds' expenses are not fixed or specified
under the terms of the Policy. The advisory fees and other expenses are more
fully described in the prospectuses of the Funds.
GUARANTEE OF CERTAIN CHARGES
The Company guarantees that certain charges will not increase. This
includes the charge for mortality and expense risks, the administrative charge,
the sales charge, the guaranteed cost of insurance rates, and the Fund Charge.
Any changes in the current cost of insurance charges or charges for
optional insurance benefits will be made by class of Insured and will be based
on changes in future expectations with respect to investment earnings,
mortality, length of time policies will remain in effect, expenses, and taxes.
In no event will they exceed the guaranteed rates defined in the Policy.
OTHER INFORMATION
FEDERAL INCOME TAX CONSIDERATIONS
The following discussion provides a general description of the federal
income tax considerations relating to the Policy. This discussion is based upon
the Company's understanding of the present federal income tax laws as they are
currently interpreted by the Internal Revenue Service ("IRS"). This discussion
is not intended as tax advice. Because of the inherent complexity of such laws
and the fact that tax results will vary according to the particular
circumstances of the individual involved, tax advice may be needed by a person
contemplating the purchase of the Policy. It should, therefore, be understood
that these comments concerning federal income tax consequences are not an
exhaustive discussion of all tax questions that might arise under the Policy and
that special rules which are not discussed herein may apply in certain
situations. Moreover, no representation is made as to the likelihood of
continuation of federal income tax or estate or gift tax laws or of the current
interpretations by the IRS or the courts. Future legislation may adversely
affect the tax treatment of life insurance policies or other tax rules described
in this discussion or that relate directly or indirectly to life insurance
policies. Finally, these comments do not take into account any state or local
income tax considerations which may be involved in the purchase of the Policy.
DEFINITION OF LIFE INSURANCE
Section 7702 of the Internal Revenue Code (the "Code") provides that if one
of two alternate tests are met, a policy will be treated as a life insurance
policy for federal tax purposes. These tests are referred to as the "Cash Value
Accumulation Test" and the "Guideline Premium/Cash Value Corridor Test".
The Policy described in this Prospectus is tested under the Guideline
Premium/Cash Value Corridor Test. This test provides for, among other things,
(i) a maximum allowable premium per thousand dollars of death benefit, known as
the "guideline annual premium", and (ii) a minimum ongoing "corridor" of death
benefit in relation to the Fund Value of the Policy, known as the "death benefit
percentage." See Appendix B, for a table of the Guideline Premium/Cash Value
Corridor Test factors.
The Company believes that the Policy meets this statutory definition of
life insurance and hence will receive federal income tax treatment consistent
with that of fixed life insurance. Thus, the death benefit should be excludable
from the gross income of the Beneficiary (whether the Beneficiary is a
corporation, individual or other entity) under Section 101(a)(1) of the Code for
purposes of the regular federal income tax and the Policy Owner generally should
not be deemed to be in constructive receipt of the cash values under the Policy
31
<PAGE> 37
until a full surrender thereof, maturity of the Policy, Partial Surrender, or
Preferred Partial Surrender. In addition, certain Policy loans may be taxable in
the case of Policies that are modified endowment contracts. Prospective Policy
Owners that intend to use Policies to fund deferred compensation arrangements
for their employees are urged to consult their tax advisors with respect to the
tax consequences of such arrangements. Prospective corporate Owners should
consult their tax advisors about the treatment of life insurance in their
particular circumstances for purposes of the alternative minimum tax applicable
to corporations.
DIVERSIFICATION REQUIREMENTS
To comply with regulations under Section 817(h) of the Code, each Portfolio
is required to diversify its investments. Generally, a Portfolio is required to
diversify its investments so that on the last day of each quarter of a calendar
year, no more than 55% of the value of its assets is represented by any one
investment, no more than 70% is represented by any two investments, no more than
80% is represented by any three investments, and no more than 90% is represented
by any four investments. Securities of a single issuer generally are treated for
purposes of Section 817(h) as a single investment. However, for this purpose,
each U.S. Government agency or instrumentality is treated as a separate issuer,
and any security issued, guaranteed, or insured (to the extent so guaranteed or
insured) by the U.S. or by an agency or instrumentality of the U.S. is treated
as a security issued by the U.S. Government or its agency or instrumentality,
whichever is applicable.
While there should be no question that, for federal income tax purposes,
the Portfolio shares underlying the Policies are owned by the Company and not by
a Policy Owner or any Beneficiary, no representation is or can be made regarding
the likelihood of the continuation of current interpretations by the IRS.
TAX TREATMENT OF POLICIES
The Technical and Miscellaneous Revenue Act of 1988 established a new class
of life insurance contracts referred to as modified endowment contracts. With
the enactment of this legislation, the Policies will be treated for tax purposes
in one of two ways. Policies that are not classified as modified endowment
contracts will be taxed as conventional life insurance contracts, as described
below. Taxation of pre-death distributions from Policies that are classified as
modified endowment contracts is somewhat different, as described below.
A life insurance contract becomes a "modified endowment contract" if, at
any time during the first seven contract years, the sum of actual premiums paid
exceeds the sum of the "seven-pay premium." Generally, the "seven-pay premium"
is the level annual premium, such that if paid for each of the first seven
years, will fully pay for all future death and endowment benefits under a
contract. For example, if the "seven-pay premiums" were $1,000, the maximum
premiums that could be paid during the first seven years to avoid "modified
endowment" treatment would be $1,000 in the first year; $2,000 through the first
two years and $3,000 through the first three years, etc. Under this test, a
Policy may or may not be a modified endowment contract, depending on the amount
of premiums paid during each of the Policy's first seven contract years. Changes
in benefits may require retesting to determine if the Policy is to be classified
as a modified endowment contract.
CONVENTIONAL LIFE INSURANCE POLICIES
If a Policy is not a modified endowment contract, upon full surrender or
maturity of a Policy for its Surrender Value, the excess, if any, of the
Surrender Value plus any outstanding Policy Debt over the cost basis under a
Policy will be treated as ordinary income for federal income tax purposes. A
Policy's cost basis will usually equal the premiums paid less any premiums
previously recovered through Partial Surrenders or Preferred Partial Surrenders.
Under Section 7702 of the Code, special rules apply to determine whether part or
all of the cash received through Partial Surrenders in the first 15 Policy years
is paid out of the income of the Policy and therefore subject to income tax.
Cash distributed to a Policy Owner on Partial Surrenders occurring more than 15
years after the Policy Date will be taxable as ordinary income to the Policy
Owner to the extent that it exceeds the cost basis under a Policy.
The Company also believes that loans received under Policies that are not
modified endowment contracts will be treated as indebtedness of the Owner, and
that no part of any loan under the Policy will constitute
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income to the Owner unless the Policy is surrendered or upon maturity of the
Policy. Interest paid (or accrued by an accrual basis taxpayer) on a loan under
a Policy that is not a modified endowment contract may be deductible, subject to
several limitations, depending on the use to which the proceeds are put and the
tax rules applicable to the Policy Owner. If, for example, the loan proceeds are
used by an individual for business or investment purposes, all or part of the
interest expense may be deductible. Generally, if the Policy Loan is used for
personal purposes by an individual, the interest expense is not deductible. The
deductibility of loan interest (whether incurred under a Policy Loan or on other
indebtedness) also may be subject to other limitations. For example, where the
interest is paid (or accrued by an accrued basis taxpayer) on a loan under a
Policy covering the life of an officer, employee, or person financially
interested in the trade or business of the Policy Owners, the interest may be
deductible to the extent that the interest is attributable to the first $50,000
of the Outstanding Debt. Other tax law provisions may limit the deduction of
interest payable on loan proceeds that are used to purchase or carry certain
life insurance policies.
MODIFIED ENDOWMENT CONTRACTS
Pre-death distributions from modified endowment contracts may give rise to
taxable income. Upon full surrender or maturity of the Policy, the Policy Owner
would recognize ordinary income for federal income tax purposes equal to the
amount by which the Surrender Value plus Outstanding Debt exceeds the investment
in the Policy (usually the premiums paid plus certain pre-death distributions
that were taxable less any premiums previously recovered that were excludable
from gross income). Upon Partial Surrenders, Preferred Partial Surrenders, and
Policy loans, the Policy Owner would recognize ordinary income to the extent
allocable to income (which includes all previously non-taxed gains) on the
Policy. The amount allocated to income is the amount by which the Fund Value of
the Policy exceeds investment in the Policy immediately before the distribution.
Under a tax law provision, if two or more policies which are classified as
modified endowment contracts are purchased from any one insurance company,
including the Company, during any calendar year, all such policies will be
aggregated for purposes of determining the portion of the pre-death
distributions allocable to income on the policies and the portion allocable to
investment in the policies.
Amounts received under a modified endowment contract that are included in
gross income are subject to an additional tax equal to 10% of the amount
included in gross income, unless an exception applies. The 10% additional tax
does not apply to any amount received: (i) when the taxpayer is at least 59 1/2
years old; (ii) which is attributable to the taxpayer becoming disabled; or
(iii) which is part of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life expectancy) of the
taxpayer or the joint lives (or joint life expectancies) of the taxpayer and his
or her beneficiary.
If a Policy was not originally a modified endowment contract but becomes
one, under Treasury Department regulations which are yet to be prescribed,
pre-death distributions received in anticipation of a failure of a Policy to
meet the seven-pay premium test are to be treated as pre-death distributions
from a modified endowment contract (and, therefore, are to be taxable as
described above) even though, at the time of the distribution(s), the Policy was
not yet a modified endowment contract. For this purpose, pursuant to the Code,
any distribution made within two years before the Policy is classified as a
modified endowment contract shall be treated as being made in anticipation of
the Policy's failing to meet the seven-pay premium test.
It is unclear whether interest paid (or accrued by an accrual basis
taxpayer) on Outstanding Debt with respect to a modified endowment contract
constitutes interest for federal income tax purposes. If it does constitute
interest, it may be deductible, subject to several limitations, depending on the
use to which the proceeds are put and the tax rules applicable to the Policy
Owner. If, for example, the loan proceeds are used by an individual for business
or investment purposes, all or part of the interest expense may be deductible.
Generally, if the Policy loan is used for personal purposes by an individual,
the interest expense is not deductible. The deductibility of loan interest
(whether incurred under a Policy Loan or on other indebtedness) also may be
subject to other limitations. For example, where the interest is paid (or
accrued by an accrual basis taxpayer) on a loan under a Policy covering the life
of an officer, employee, or person financially interested in the trade or
business of the Policy Owners, the interest may be deductible to the extent that
the interest is attributable to the first $50,000 of the Outstanding Debt. Other
tax law provisions may limit the deduction of interest payable on loan proceeds
that are used to purchase or carry certain life insurance policies.
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REASONABLENESS REQUIREMENT FOR CHARGES
Another provision of the tax law deals with allowable charges for mortality
costs and other expenses that are used in making calculations to determine
whether a contract qualifies as life insurance for federal income tax purposes.
For life insurance policies entered into on or after October 21, 1988, these
calculations must be based upon reasonable mortality charges and other charges
reasonably expected to be actually paid. The Treasury Department is expected to
promulgate regulations governing reasonableness standards for mortality charges.
The Company believes that the mortality costs and other expenses used in making
calculations to determine whether the Policy qualifies as life insurance meet
the current requirements. It is possible that future regulations will contain
standards that would require the Company to modify its mortality charges used
for the purposes of the calculations in order to retain qualification of the
Policy as life insurance for federal income tax purposes, and the Company
reserves the right to make any such modifications.
PENSION AND PROFIT-SHARING PLANS
If the Policies described in this Prospectus are purchased by a fund which
forms part of a pension or profit-sharing plan qualified under Sections 401(a)
or 403 of the Code for the benefit of participants covered under the plan, the
federal income tax treatment of such policies will be somewhat different from
that described above.
If purchased as part of a pension or profit sharing plan, the current cost
of insurance for the net amount at risk is treated as a "current fringe benefit"
and is required to be included annually in the plan participant's gross income.
This cost (generally referred to as the "P.S. 58" cost) is reported to the
participant annually. If the plan participant dies while covered by the plan and
the policy proceeds are paid to the participant's beneficiary, then the excess
of the death benefit over the Policy Fund Value will not be subject to Federal
income tax. However, the Policy Fund Value will generally be taxable to the
extent it exceeds the sum of $5,000 plus the participant's cost basis in the
Policy. The participant's cost basis will generally include the costs of
insurance previously reported as income to the participant. Special rules may
apply if the participant had borrowed from his Policy or was an owner-employee
under the plan.
There are limits on the amounts of life insurance that may be purchased on
behalf of a participant in a pension or profit sharing plan. Complex rules, in
addition to those discussed above, apply whenever life insurance is purchased by
a tax qualified plan.
OTHER EMPLOYEE BENEFIT PROGRAMS
Complex rules may apply when a Policy is held by an employer or a trust, or
acquired by an employee, in connection with the provision of employee benefits.
These Policy Owners also must consider whether the Policy was applied for by or
issued to a person having an insurable interest under applicable state law, as
the lack of insurable interest may, among other things, affect the qualification
of the Policy as life insurance for federal income tax purposes and the right of
the beneficiary to death benefits. Employers and employer-created trusts may be
subject to reporting, disclosure, and fiduciary obligations under the Employee
Retirement Income Security Act of 1974 (ERISA). The Policy Owners legal advisor
should be consulted to address these issues.
OTHER
Federal estate and gift and state and local estate, inheritance, and other
tax consequences of ownership or receipt of Policy proceeds depend on the
jurisdiction and the circumstances of each Owner or Beneficiary.
For complete information on federal, state, local and other tax
considerations, a qualified tax advisor should be consulted.
THE COMPANY DOES NOT MAKE ANY GUARANTEE REGARDING
THE TAX STATUS OF ANY POLICY.
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CHARGE FOR COMPANY INCOME TAXES
For federal income tax purposes, variable life insurance generally is
treated in a manner consistent with fixed life insurance. The Company will
review the question of a charge to the Variable Account for the Company's
federal income taxes periodically. A charge may be made for any federal income
taxes incurred by the Company that are attributable to the Variable Account.
This might become necessary if the tax treatment of the Company is ultimately
determined to be other than what the Company currently believes it to be, if
there are changes made in the federal income tax treatment of variable life
insurance at the insurance company level, or if there is a change in the
Company's tax status.
Under current laws, the Company may incur state and local taxes (in
addition to premium taxes imposed by the states) in several states. At present,
these taxes are not significant. If there is a material change in applicable
state or local tax laws or in the cost to the Company, the Company reserves the
right to charge the Account for such taxes, if any, attributable to the Account.
VOTING OF FUND SHARES
In accordance with its view of present applicable law, the Company will
exercise voting rights attributable to the shares of each portfolio of the Funds
held in the Subaccounts at any regular and special meetings of the shareholders
of the Funds on matters requiring shareholder voting under the Investment
Company Act of 1940. The Company will exercise these voting rights based on
instructions received from persons having the voting interest in corresponding
Subaccounts of the Variable Account. However, if the Investment Company Act of
1940 or any regulations thereunder should be amended, or if the present
interpretation thereof should change, and as a result the Company determines
that it is permitted to vote the shares of the Funds in its own right, it may
elect to do so.
The person having the voting interest under a Policy is the Policy Owner.
Unless otherwise required by applicable law, the number of votes as to which a
Policy Owner will have the right to instruct for any Portfolio will be
determined by dividing a Policy Owner's Fund Value in the Subaccount which
corresponds to the Portfolio by $100. Fractional votes will be counted. The
number of votes as to which a Policy Owner will have the right to instruct will
be determined as of the date determined by the Company, but in no event shall
such date be more than 90 days prior to the date established by the respective
Fund for determining shareholders eligible to vote at the meeting of the
respective Fund. If required by the Securities and Exchange Commission, the
Company reserves the right to determine in a different fashion the voting rights
attributable to the shares of the respective Fund based upon the instructions
received from Policy Owners. Voting instructions may be cast in person or by
proxy.
Voting rights attributable to the Policy Owner's Fund Value held in each
Subaccount for which no timely voting instructions are received will be voted by
the Company in the same proportion as the voting instructions which are received
in a timely manner for all Policies participating in that Subaccount. The
Company will also exercise the voting rights from assets in each Subaccount
which are not otherwise attributable to Policy Owners, if any, in the same
proportion as the voting instructions which are received in a timely manner for
all Policies participating in that Subaccount and generally will exercise voting
rights attributable to shares of Portfolios of the Funds held in its General
Account, if any, in the same proportion as votes cast with respect to shares of
Portfolios of the Funds held by the Variable Account and other separate accounts
of the Company, in the aggregate.
DISREGARD OF VOTING INSTRUCTIONS
The Company may, when required by state insurance regulatory authorities,
disregard voting instructions if the instructions require that voting rights be
exercised so as to cause a change in the subclassification or investment
objective of a Portfolio or to approve or disapprove an investment advisory
contract. In addition, the Company itself may disregard voting instructions of
changes initiated by Policy Owners in the investment policy or the investment
adviser (or portfolio manager) of a Portfolio, provided that the Company's
disapproval of the change is reasonable and is based on a good faith
determination that the change would be contrary to state law or otherwise
inappropriate, considering the Portfolio's objectives and purpose, and
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considering the effect the change would have on the Company. In the event the
Company does disregard voting instructions, a summary of that action and the
reasons for such action will be included in the next report to Policy Owners.
REPORT TO POLICY OWNERS
A statement will be sent at least annually to each Policy Owner setting
forth a summary of the transactions which occurred since the last statement and
indicating the death benefit, Specified Amount, Fund Value, Surrender Value, and
any Outstanding Debt. In addition, the statement will indicate the allocation of
Fund Value among the Guaranteed Interest Account, the Loan Account and the
Subaccounts and any other information required by law. Confirmations will be
sent out upon premium payments, transfers, loans, loan repayments, withdrawals,
and surrenders.
Each Policy Owner will also receive an annual and a semiannual report
containing financial statements for the Variable Account and the Funds, the
latter of which will include a list of the portfolio securities of the Funds, as
required by the Investment Company Act of 1940, and/or such other reports as may
be required by federal securities laws.
SUBSTITUTION OF INVESTMENTS AND RIGHT TO CHANGE OPERATIONS
The Company reserves the right, subject to compliance with the law as then
in effect, to make additions to, deletions from, or substitutions for the
securities that are held by the Variable Account or any of its other separate
accounts or that the Variable Account or any of its other separate accounts may
purchase. If shares of any or all of the Portfolios of the Funds should no
longer be available for investment, or if, in the judgment of the Company's
management, further investment in shares of any or all Portfolios of the Funds
should become inappropriate in view of the purposes of the Policies, the Company
may substitute shares of another Portfolio of the Funds or of a different fund
for shares already purchased, or to be purchased in the future under the
Policies.
Where required, the Company will not substitute any shares attributable to
a Policy Owner's interest in a Variable Account without notice, Policy Owner
approval, or prior approval of the Securities and Exchange Commission and
without following the filing or other procedures established by applicable state
insurance regulators.
The Company also reserves the right to establish additional Subaccounts of
the Variable Account, each of which would invest in a new portfolio of the
Funds, or in shares of another investment company, a portfolio thereof, or
another suitable investment vehicle, with a specified investment objective. New
Subaccounts may be established when, in the sole discretion of the Company,
marketing needs or investment conditions warrant, and any new Subaccounts will
be made available to existing Policy Owners on a basis to be determined by the
Company. The Company may also eliminate one or more Subaccounts if, in its sole
discretion, marketing, tax, or investment conditions so warrant.
In the event of any such substitution or change, the Company may, by
appropriate endorsement, make such changes in this and other policies as may be
necessary or appropriate to reflect such substitution or change. If deemed by
the Company to be in the best interests of persons having voting rights under
the Policies, the Variable Account may be operated as a management investment
company under the Investment Company Act of 1940 or any other form permitted by
law, it may be deregistered under that Act in the event such registration is no
longer required, or it may be combined with other separate accounts of the
Company or an affiliate thereof. Subject to compliance with applicable law, the
Company also may combine one or more Subaccounts and may establish a committee,
board, or other group to manage one or more aspects of the operation of the
Variable Account.
CHANGES TO COMPLY WITH LAW
The Company reserves the right to make any change without consent of Policy
Owners to the provisions of the Policy to comply with, or give Policy Owners the
benefit of, any Federal or State statute, rule, or
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regulation, including but not limited to requirements for life insurance
contracts under the Internal Revenue Code, under regulations of the United
States Treasury Department or any state.
PERFORMANCE INFORMATION
Performance information for the Subaccounts of the Variable Account may
appear in advertisements, sales literature, or reports to Policy Owners or
prospective purchasers. Performance information in advertisements or sales
literature may be expressed in any fashion permitted under applicable law, which
may include presentation of a change in a Policy Owner's Fund Value attributable
to the performance of one or more Subaccounts, or as a change in Policy Owner's
death benefit. Performance quotations may be expressed as a change in a Policy
Owner's Fund Value over time or in terms of the average annual compounded rate
of return on the Policy Owner's Fund Value, based upon a hypothetical Policy in
which premiums have been allocated to a particular Variable Account over certain
periods of time that will include one, five and ten years, or from the
commencement of operation of the Variable Account if less than one, five, or ten
years. Any such quotation may reflect the deduction of all applicable charges to
the Policy including premium load, the cost of insurance, the administrative
charge, and the mortality and expense risk charge. The quotation may also
reflect the deduction of the Fund Charge, if applicable, by assuming a surrender
at the end of the particular period, although other quotations may
simultaneously be given that do not assume a surrender and do not take into
account deduction of the Fund Charge.
Performance information for the Variable Account may be compared, in
advertisements, sales literature, and reports to Policy Owners to: (i) other
variable life separate accounts or investment products tracked by research
firms, ratings services, companies, publications, or persons who rank separate
accounts or investment products on overall performance or other criteria; and
(ii) the Consumer Price Index (measure for inflation) to assess the real rate of
return from the purchase of a Policy. Reports and promotional literature may
also contain the Company's rating or a rating of the Company's claim paying
ability as determined by firms that analyze and rate insurance companies and by
nationally recognized statistical rating organizations.
Performance information for any Subaccount of the Variable Account reflects
only the performance of a hypothetical Policy whose Fund Value is allocated to
the Variable Account during a particular time period on which the calculations
are based. Performance information should be considered in light of the
investment objectives and policies, characteristics and quality of the
Portfolios of the Funds in which the Variable Account invests, and the market
conditions during the given period of time, and should not be considered as a
representation of what may be achieved in the future.
THE GUARANTEED INTEREST ACCOUNT
Policy Owners may allocate all or a portion of their net premiums and
transfer Fund Value to the Guaranteed Interest Account of the Company. Amounts
allocated to the Guaranteed Interest Account become part of the "General
Account" of the Company, which supports insurance and annuity obligations.
Descriptions of the Guaranteed Interest Account are included in this Prospectus
for the convenience of the Purchaser. The Guaranteed Interest Account and the
General Account of the Company have not been registered under the Securities Act
of 1933 and the Investment Company Act of 1940. Accordingly, neither the
Guaranteed Interest Account nor any interest therein is generally subject to the
provisions of these Acts and, as a result, the staff of the Securities and
Exchange Commission has not reviewed the disclosure in this prospectus relating
to the Guaranteed Interest Account. Disclosures regarding the Guaranteed
Interest Account may, however, be subject to certain generally applicable
provisions of the federal securities laws relating to the accuracy and
completeness of statements made in the prospectus. For more details regarding
the Guaranteed Interest Account, see the Policy.
GENERAL DESCRIPTION
Amounts allocated to the Guaranteed Interest Account become part of the
General Account of Company which consists of all assets owned by the Company
other than those in the Variable Account and other
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separate accounts of the Company. Subject to applicable law, the Company has
sole discretion over the investment of the assets of its General Account.
The Policy Owner may elect to allocate net premiums to the Guaranteed
Interest Account, the Variable Account, or both. The Policy Owner may also
transfer Fund Value from the Subaccounts of the Variable Account to the
Guaranteed Interest Account, or from the Guaranteed Interest Account to the
Subaccounts, subject to the limitations described below. Company guarantees that
the Fund Value in the Guaranteed Interest Account will be credited with a
minimum interest rate of 0.013368% daily, compounded daily, for a minimum
effective annual rate of 5.0%. Such interest will be paid regardless of the
actual investment experience of the Guaranteed Interest Account. In addition,
Company may in its sole discretion declare current interest in excess of the
5.0% annual rate, which will be guaranteed for approximately one year. (The
portion of a Policy Owner's Fund Value that has been used to secure Outstanding
Debt will be credited with a guaranteed interest rate of 0.013368% daily,
compounded daily, for a minimum effective annual rate of 5.0%.) After the tenth
Policy anniversary, the annual interest rates that apply to the Fund Value in
the Guaranteed Interest Account and to the Loan Account will be .5% higher than
the rates applicable to policies of the same type which have not yet reached
their tenth policy anniversary. This increase is guaranteed and will be credited
only when interest in excess of the 5% guaranteed rate is being applied to
amounts allocated to the Guaranteed Interest Account for policies of the same
type which have not yet reached their tenth policy anniversary.
The Company bears the full investment risk for the Fund Value allocated to
the Guaranteed Interest Account.
LIMITATIONS ON AMOUNTS IN THE GUARANTEED INTEREST ACCOUNT
No net premium or transfer to the Guaranteed Interest Account will be
accepted which would cause the Guaranteed Interest Account to exceed $250,000 on
the date of payment or transfer. The Company reserves the right to increase or
decrease this limit in the future. For payments which exceed the limit, the
Company will accept the portion of the payment up to $250,000 and will return
the excess payment to the Policy Owner. For transfers which exceed the limit,
the Company will accept the portion of the transfer up to the $250,000. The
amount of the requested transfer which would otherwise cause the Guaranteed
Interest Account to exceed $250,000 will be retained in the Subaccounts in the
same proportion that the amount actually transferred bears to the total
requested transfer amount. These limits are waived in the event the Policy Owner
elects the Right to Exchange Policy. See "Right to Exchange Policy", page 22.
DEATH BENEFIT
The death benefit under the Policy will be determined in the same fashion
for a Policy Owner who has Fund Value in the Guaranteed Interest Account as for
a Policy Owner who has Fund Value in the Subaccounts. The death benefit under
Option I will be equal to the Specified Amount of the Policy plus the increase
in Fund Value since the last Monthly Anniversary Day or, if greater, Fund Value
on the date of death plus Fund Value on the last Monthly Anniversary Day
multiplied by a death benefit percentage. Under Option II, the death benefit
will be equal to the Specified Amount of the Policy plus the Fund Value or, if
greater, Fund Value on the date of death plus Fund Value on the last Monthly
Anniversary Day multiplied by a death benefit percentage. See "Death Benefits
under the Policy," page 16.
POLICY CHARGES
Deductions from premium, monthly deductions from the Fund Value, and Fund
Charges will be the same for Policy Owners who allocate net premiums or transfer
Fund Value to the Guaranteed Interest Account as for Policy Owners who allocate
net premiums to the Subaccounts. These charges include the sales and tax
charges; the charges for the cost of insurance, administrative charge, the
charge for any optional insurance benefits added by Rider; and administrative
Fund Charge and the sales Fund Charge. Fees for Partial Surrenders and, if
applicable, transfer charges, will also be deducted from the Guaranteed Interest
Account.
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Charges applicable to the Portfolios, including the operating expenses of
the Portfolios, as well as the investment advisory fee charged by the Portfolio
managers, will not be paid directly or indirectly by Policy Owners to the extent
the Fund Value is allocated to the Guaranteed Interest Account. Likewise, the
mortality and expense risk charge applicable to the Fund Value allocated to the
Subaccounts is not deducted from Fund Value allocated to the Guaranteed Interest
Account. Any amounts that the Company pays for income taxes allocable to the
Subaccounts will not be charged against the Guaranteed Interest Account.
However, it is important to remember that Policy Owners will not participate in
the investment experience of the Subaccounts to the extent that Fund Values are
allocated to the Guaranteed Interest Account.
TRANSFERS
Amounts may be transferred after the Free Look Period from the Subaccounts
to the Guaranteed Interest Account and from the Guaranteed Interest Account to
the Subaccounts, subject to the following limitations.
Transfers to the Guaranteed Interest Account may be made at any time and in
any amount, subject to the $250,000 limit on total amounts allocated to the
Guaranteed Interest Account referenced above. These limits are waived in the
event the Policy Owner elects the Right to Exchange the Policy. See "Right to
Exchange Policy", page 22.
Transfers from the Guaranteed Interest Account to the Subaccounts are
limited to one in any Policy year. Further, transfers from the Guaranteed
Interest Account are limited to the greater of $5,000 and 25% of the Fund Value
allocated to the Guaranteed Interest Account on the date of the transfer.
Transfers from the Guaranteed Interest Account may only be made during the time
period which begins on the Policy Anniversary and which ends 30 days after the
Policy Anniversary. If the transfer request is received on the Policy
Anniversary, it will be processed as of the Policy Anniversary; if it is
received within 30 days after the Policy Anniversary, the transfer will be
effective as of the Valuation Date when it is received. Any request received
within 10 days before the Policy Anniversary will be deemed received on the
Policy Anniversary. Any transfer requests received at other times will not be
honored, and will be returned to the Policy Owner.
Currently there is no charge imposed upon transfers; however, the Company
reserves the right to assess such a charge in the future and to impose other
limitations on the number of transfers, the amount of transfers, and the amount
remaining in the Guaranteed Interest Account or Subaccounts after a transfer.
SURRENDERS AND POLICY LOANS
The Policy Owner may also make Full Surrenders, Partial Surrenders, and
Preferred Partial Surrenders from the Guaranteed Interest Account to the same
extent as a Policy Owner who has invested in the Subaccounts. See "Full
Surrender", page 24, "Partial Surrenders", page 24, and "Preferred Partial
Surrenders", page 25. Transfers and surrenders payable from the Guaranteed
Interest Account, and the payment of Policy loans allocated to the Guaranteed
Interest Account, may be delayed for up to six months.
MORE ABOUT THE POLICY
OWNERSHIP
The Policy Owner is the individual named as such in the application or in
any later change shown in the Company's records. While the Insured is living,
the Policy Owner alone has the right to receive all benefits and exercise all
rights that the Policy grants or the Company allows.
JOINT OWNERS
If more than one person is named as Policy Owner, they are joint owners.
Any Policy transaction requires the signature of all persons named jointly.
Unless otherwise provided, if a joint owner dies, ownership passes to the
surviving joint owner(s). When the last joint owner dies, ownership passes
through that person's estate, unless otherwise provided.
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BENEFICIARY
The Beneficiary is the individual named as such in the application or any
later change shown in the Company's records. The Policy Owner may change the
Beneficiary at any time during the life of the Insured by written request on
forms provided by the Company, which must be received by the Company at its Home
Office. The change will be effective as of the date this form is signed.
Contingent and/or concurrent Beneficiaries may be designated. The Policy Owner
may designate a permanent Beneficiary, whose rights under the Policy cannot be
changed without his or her consent. Unless otherwise provided, if no designated
Beneficiary is living upon the death of the Insured, the Policy Owner or the
Policy Owner's estate is the Beneficiary.
The Company will pay the death benefit proceeds to the Beneficiary. Unless
otherwise provided, in order to receive proceeds at the Insured's death, the
Beneficiary must be living at the time of the Insured's death.
THE POLICY
This Policy is a contract between the Policy Owner and the Company. The
entire contract consists of the Policy, a copy of the initial application, all
subsequent applications to change the Policy, any endorsements, all Riders, and
all additional Policy information sections (specification pages) added to the
Policy.
NOTIFICATION AND CLAIMS PROCEDURES
Any election, designation, change, assignment, or request made by the
Policy Owner must be in writing on a form acceptable to the Company. The Company
is not liable for any action taken before such written notice is received and
recorded. The Company may require that the Policy be returned for any Policy
change or upon its surrender.
In the event of an Insured's death while the Policy is in force notice
should be given to the Company as soon as possible. Claim procedure instructions
will be sent immediately. As due proof of death, the Company may require proof
of Age and a certified copy of a death certificate. The Company may also require
the Beneficiary and the Insured's next of kin to sign authorizations as part of
this process. These authorization forms allow the Company to obtain information
about the Insured, including but not limited to medical records of physicians
and hospitals used by the Insured.
PAYMENTS
The Company will pay death benefit proceeds, the Surrender Value on
surrender, Partial Surrenders, Preferred Partial Surrenders, and loan proceeds
based on allocations made to the Subaccounts, and will effect a transfer between
Subaccounts or from the Variable Account to the Guaranteed Interest Account
within seven days after the Company receives all the information needed to
process a payment.
However, the Company can postpone the calculation or payment of such a
payment or transfer of amounts based on investment performance of the
Subaccounts if:
The New York Stock Exchange is closed on other than customary weekend
and holiday closing or trading on the New York Stock Exchange is restricted
as determined by the SEC; or
An emergency exists, as determined by the SEC, as a result of which
disposal of securities is not reasonably practicable or it is not reasonably
practicable to determine the value of the Account's net assets; or
The SEC by order permits postponement for the protection of Policy
Owners.
PAYMENT PLAN/SETTLEMENT PROVISIONS
Maturity or surrender benefits may be used to purchase a payment plan
providing monthly income for the lifetime of the Insured, and death benefit
proceeds may be used to purchase a payment plan providing monthly income for the
lifetime of the Beneficiary. The monthly payments consisting of proceeds plus
interest will be
40
<PAGE> 46
paid in equal installments for at least ten years. The purchase rates for the
payment plan are guaranteed not to exceed those shown in the Policy, but current
rates that are lower (i.e., providing greater income) may be established by the
Company from time to time. This benefit is not available if the income would be
less than $25 a month. Maturity or surrender benefits or death benefit proceeds
may be used to purchase any other payment plan that the Company makes available
at that time.
PAYMENT IN CASE OF SUICIDE
If the Insured dies by suicide within two years from the Policy Date or
Reinstatement Date, the Company will limit the death benefit proceeds to the
premium payments less any Partial Surrender and Preferred Partial Surrender
amounts (and their fees) and less any Outstanding Debt reduced by any Unearned
Loan Interest. If an Insured dies by suicide within two years of the effective
date of any increase in the Specified Amount, the Company will refund the cost
of insurance charges made with respect to such increase.
ASSIGNMENT
The Policy Owner may assign a Policy as collateral security for a loan or
other obligation. No assignment will bind the Company unless the original, or,
with the consent of the Company, a copy, is received at the Company's Home
Office, and it will be effective only when recorded by the Company. An
assignment does not change the ownership of the Policy. However, after an
assignment, the rights of any Policy Owner or Beneficiary will be subject to the
assignment. The entire Policy, including any attached payment option or Rider,
will be subject to the assignment. The Company will rely solely on the
assignee's statement as to the amount of the assignee's interest. The Company
will not be responsible for the validity of any assignment. Unless otherwise
provided, the assignee may exercise all rights this Policy grants except (a) the
right to change the Policy Owner or Beneficiary; and (b) the right to elect a
payment option. Assignment of a Policy that is a modified endowment contract may
generate taxable income. (See "Federal Income Tax Considerations", page 31.)
ERRORS ON THE APPLICATION
If the Age or gender of the Insured has been misstated, the death benefit
under this Policy will be the greater of that which would be purchased by the
most recent cost of insurance charge at the correct Age and gender, or the death
benefit derived by multiplying the Fund Value by the death benefit percentage
for the correct Age and gender. If unisex cost of insurance rates apply, no
adjustment will be made for a misstatement of sex. See "Cost of Insurance", page
28.
INCONTESTABILITY
The Company may contest the validity of this Policy if any material
misstatements are made in the application. However, the Policy will be
incontestable as follows: the initial Specified Amount cannot be contested after
the Policy has been in force during the Insured's lifetime for two years from
the Policy Date; and an increase in the Specified Amount or any reinstatement
cannot be contested after the increase or the reinstated policy has been in
force during an Insured's lifetime for two years from its effective date.
POLICY ILLUSTRATIONS
Upon request, the Company will send the Policy Owner an illustration of
future benefits under the Policy based on both guaranteed and current cost
assumptions.
DISTRIBUTION OF THE POLICY
MONY Securities Corp. ("MSC"), a wholly owned subsidiary of the Company, is
principal underwriter (distributor) of the Policies. MSC is registered as a
broker-dealer under the Securities Exchange Act of 1934 and is a member of the
National Association of Securities Dealers. The Policies are sold by individuals
who
41
<PAGE> 47
are registered representatives of MSC and who are also licensed as life
insurance agents for the Company. The Policies may also be sold through other
broker/dealers authorized by MSC and applicable law to do so.
Except where MSC has authorized other broker/dealers to sell the Policies
(as described in the preceding paragraph), compensation payable for the sale of
the Policies will be based upon the following schedule. After issue of the
Contract, commissions will equal at most 50 percent of premiums paid.
Thereafter, commissions will equal at most 4.0 percent of any additional
premiums. Upon any subsequent increase in Specified Amount, commissions will
equal at most 50 percent of premiums paid on or after the increase up to a
maximum amount. Thereafter, commissions will return to no more than the 4.0
percent level. Further, registered representatives may be eligible to receive
certain bonuses and other benefits based on the amount of earned commissions.
Commissions may be required to be repaid to the Company if Sales Charges
are refunded upon exercise of the exchange privileges during the first 24 months
after the Policy Date or within 24 months following an increase in Specified
Amount.
In addition, registered representatives who meet specified production
levels may qualify, under sales incentive programs adopted by Company, to
receive noncash compensation such as expense-paid trips, expense-paid
educational seminars and merchandise. Company makes no separate deductions,
other than previously described, from premiums to pay sales commissions or sales
expenses.
MORE ABOUT THE COMPANY
MANAGEMENT
The trustees and officers of the Company at February 1, 1996 are listed
below. The business address for all trustees and officers of the Company is 1740
Broadway, New York, New York 10019.
Current Trustees of the Company are:
<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
-------------------------------- --------------------------------------------------------
<S> <C>
Claude M. Ballard............... Trustee
Tom H. Barrett.................. Trustee
David L. Call................... Trustee
G. Robert Durham................ Trustee
James B. Farley................. Trustee
Robert Holland, Jr. ............ Trustee
Robert R. Kiley................. Trustee
James L. Johnson................ Trustee
John R. Meyer................... Trustee
Paul A. Miller.................. Trustee
Jane C. Pfeiffer................ Trustee
Thomas C. Theobald.............. Trustee
</TABLE>
Current Officer-Trustees of the Company are:
<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
-------------------------------- --------------------------------------------------------
<S> <C>
Michael I. Roth................. Trustee, Chairman and Chief Executive Officer
Samuel J. Foti.................. Trustee, President and Chief Operating Officer
Kenneth M. Levine............... Executive Vice President and Chief Investment Officer
</TABLE>
42
<PAGE> 48
Other Officers of the Company are:
<TABLE>
<CAPTION>
NAME OFFICES WITH DEPOSITOR
-------------------------------- --------------------------------------------------------
<S> <C>
Thomas J. Conklin............... Senior Vice President
Richard E. Connors.............. Senior Vice President
Richard Daddario................ Executive Vice President and Chief Financial Officer
Phillip A. Eisenberg............ Senior Vice President and Chief Actuary
Stephen J. Hall................. Senior Vice President
Richard E. Mulroy, Jr. ......... Senior Vice President
Theodore J. Shalack............. Senior Vice President
Francis J. Waldron.............. Senior Vice President
David V. Weigel................. Treasurer
</TABLE>
No officer or trustee listed above receives any compensation from the
Variable Account. No separately allocable compensation has been paid by the
Company or any of its affiliates to any person listed for services rendered to
the Account.
STATE REGULATION
The Company is subject to the laws of the state of New York governing
insurance companies and to regulation by the Superintendent of Insurance of New
York. In addition, it is subject to the insurance laws and regulations of the
other states and jurisdictions in which it is licensed or may become licensed to
operate. An annual statement in a prescribed form must be filed with the
Superintendent of Insurance of New York and with regulatory authorities of other
states on or before March 1st in each year. This statement covers the operations
of the Company for the preceding year and its financial condition as of December
31st of that year. The Company's affairs are subject to review and examination
at any time by the Superintendent of Insurance or his agents, and subject to
full examination of Company's operations at periodic intervals.
TELEPHONE TRANSFER PRIVILEGES
A Policy Owner may request a transfer of Fund Value or change allocation
instructions for future premiums by telephone if an authorization for telephone
transfer form has been completed, signed, and received at the Company's Syracuse
Operations Center. All or part of any telephone conversation with respect to
transfer and allocation instructions may be recorded by the Company. Telephone
instructions received by the Company by 4:00 p.m. Eastern time on any Valuation
Date will be effected as of the end of that Valuation Date in accordance with
the Policy Owner's instructions, subject to the limitations stated in this
prospectus (presuming that the Free Look Period has expired). The Company
reserves the right to deny any telephone transfer or allocation request. If all
telephone lines are busy (which might occur, for example, during periods of
substantial market fluctuations), Policy Owners might not be able to request
transfers by telephone and would have to submit written requests. Telephone
transfer and allocation instructions will only be accepted if complete and
correct.
The Company has adopted guidelines relating to telephone transfers and
allocation instructions that, among other things, outlines procedures to be
followed which are designed, and which the Company believes are reasonable, to
prevent unauthorized instructions. If these procedures are followed, the Company
shall not be liable for, and the Policy Owner will therefore bear the entire
risk of, any loss as a result of the Company's following telephone instructions
in the event that such instructions prove to be fraudulent. A copy of the
guidelines and the Company's form for electing telephone transfer privileges is
available from licensed agents of the Company who are also registered
representatives of MSC or by calling 1-800-487-6669. The Company's form must be
signed and received at the Company's Syracuse Operations Center before telephone
transfers will be accepted.
43
<PAGE> 49
LEGAL PROCEEDINGS
There are no legal proceedings pending to which the Variable Account is a
party, or which would materially affect the Variable Account.
LEGAL MATTERS
Legal matters in connection with the issue and sale of the Policies
described in this Prospectus and the organization of the Company, its authority
to issue the Policies under New York law, and the validity of the forms of the
Policies under New York law have been passed on by the Vice President and Deputy
General Counsel of the Mutual of New York.
Legal matters relating to the federal securities and federal income tax
laws have been passed upon by Edward P. Bank, Vice President and Deputy General
Counsel of Mutual of New York.
EXPERTS
Actuarial matters included in this Prospectus have been examined by Evelyn
L. Peos, FSA, Vice President of the Company, whose opinion is filed as an
exhibit to the Registration Statement.
REGISTRATION STATEMENT
A Registration Statement under the Securities Act of 1933 has been filed
with the SEC relating to the offering described in this Prospectus. This
Prospectus does not include all of the information set forth in the Registration
Statement, as portions have been omitted pursuant to the rules and regulations
of the SEC. The omitted information may be obtained at the SEC's principal
office in Washington, D.C., upon payment of the SEC's prescribed fees.
INDEPENDENT ACCOUNTANTS
The audited financial statements for the Variable Account and for Company
included in this Prospectus and in the Registration Statement have been audited
by Coopers & Lybrand L.L.P., independent accountants, as indicated in their
reports thereon, and are included in reliance upon the authority of said firm as
experts in accounting and auditing. Coopers & Lybrand's office is located at
1301 Avenue of the Americas, New York, New York, 10019.
FINANCIAL STATEMENTS
The audited financial statements for the Variable Account as of December
31, 1995 and the periods ended December 31, 1995 and 1994 are set forth herein,
starting on page F-1. The audited financial statements of the Company as of and
for the years ended December 1995 and 1994 are set forth herein starting on page
F-17.
The financial statements of the Variable Account and Company as of and for
the periods ended December 31, 1995 and 1994 have been audited by Coopers &
Lybrand L.L.P. The financial statements of the Company should be distinguished
from the financial statements of the Variable Account and should be considered
only as bearing upon the ability of the Company to meet its obligations under
the Policies.
44
<PAGE> 50
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
With respect to MONY Variable Account L:
Report of Independent Accountants................................................... F-2
Statements of assets and liabilities as of December 31, 1995........................ F-3
Statements of operations for the year ended December 31, 1995....................... F-4
Statements of changes in net assets for the years ended December 31, 1995 and
1994............................................................................. F-5
Notes to financial statements....................................................... F-7
Report of Independent Accountants................................................... F-9
Statements of operations for the year ended December 31, 1994....................... F-10
Notes to financial statements....................................................... F-11
Report of Independent Accountants................................................... F-13
Statements of operations for the year ended December 31, 1993....................... F-14
Notes to financial statements....................................................... F-15
With respect to The Mutual Life Insurance Company of New York:
Report of Independent Accountants................................................... F-17
Balance sheets as of December 31, 1995 and 1994..................................... F-18
Statements of operations for the years ended December 31, 1995 and 1994............. F-19
Statements of capital and surplus for the years ended December 31, 1995 and 1994.... F-20
Statements of cash flows for the years ended December 31, 1995 and 1994............. F-21
Notes to financial statements....................................................... F-22
</TABLE>
F-1
<PAGE> 51
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of the
Mutual Life Insurance Company of New York and the
Contractholders of MONY Variable Account L:
We have audited the accompanying statements of assets and liabilities of
MONY Variable Account L (comprising, respectively, Equity Growth, Equity Income,
Intermediate Term Bond, Long Term Bond, Diversified and Money Market
Subaccounts) as of December 31, 1995, the related statements of operations for
the year then ended, and the statements of changes in net assets for each of the
two years in the period then ended. These financial statements are the
responsibility of MONY's management. Our responsibility is to express an opinion
on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1995, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY Variable Account L as of December 31, 1995, the
results of their operations for the year then ended, and the changes in their
net assets for each of the two years in the period then ended, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 19, 1996
F-2
<PAGE> 52
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)............. $ 54,194 $ 28,083 $ 6,408 $ 12,721 $ 52,290 $ 31,492
======== ======== ======== ======== ======== ========
Investments in MONY Series Fund, Inc. at
net asset value (Note 2)............... $ 59,532 $ 29,272 $ 6,512 $ 14,121 $ 58,406 $ 31,492
-------- -------- -------- -------- -------- --------
Net assets............................... $ 59,532 $ 29,272 $ 6,512 $ 14,121 $ 58,406 $ 31,492
======== ======== ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments.......... $ 73,547 $ 39,656 $ 8,388 $ 15,455 $ 62,214 $ 50,245
Cost of insurance withdrawals (Note
3).................................. (41,945) (24,960) (11,872) (33,885) (30,292) (41,265)
Undistributed net investment income.... 9,506 8,958 8,848 26,013 18,197 22,512
Accumulated net realized gains on
investments......................... 13,086 4,429 1,044 5,138 2,171 0
Unrealized appreciation of
investments......................... 5,338 1,189 104 1,400 6,116 0
-------- -------- -------- -------- -------- --------
Net assets............................... $ 59,532 $ 29,272 $ 6,512 $ 14,121 $ 58,406 $ 31,492
======== ======== ======== ======== ======== ========
Number of units outstanding*............. 2,137 1,016 336 605 2,427 1,997
-------- -------- -------- -------- -------- --------
Net asset value per unit outstanding..... $ 27.86 $ 28.81 $ 19.38 $ 23.34 $ 24.07 $ 15.77
======== ======== ======== ======== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-3
<PAGE> 53
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.......................... $ 3,917 $1,506 $363 $ 762 $3,088 $1,757
Mortality and expense risk charges (Note
3)..................................... 254 87 36 288 245 191
------- ------ ---- ------- ------ ------
Net investment income.................... 3,663 1,419 327 474 2,843 1,566
------- ------ ---- ------- ------ ------
Realized and unrealized gains on
investments (Note 2):
Proceeds from sales.................... 10,534 7,758 641 44,504 2,542 3,969
Cost of shares sold.................... 8,634 7,400 624 36,311 2,103 3,969
------- ------ ---- ------- ------ ------
Net realized gains on investments........ 1,900 358 17 8,193 439 0
Net increase in unrealized appreciation
of investments......................... 5,010 2,181 454 3,566 5,659 0
------- ------ ---- ------- ------ ------
Net realized and unrealized gains on
investments............................ 6,910 2,539 471 11,759 6,098 0
------- ------ ---- ------- ------ ------
Net increase in net assets resulting from
operations............................. $ 10,573 $3,958 $798 $ 12,233 $8,941 $1,566
======= ====== ==== ======= ====== ======
</TABLE>
See notes to financial statements.
F-4
<PAGE> 54
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
INTERMEDIATE
EQUITY GROWTH EQUITY INCOME TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT
----------------- ----------------- ---------------
1995 1994 1995 1994 1995 1994
------- ------- ------- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income......................... $ 3,663 $ 733 $ 1,419 $ 685 $ 327 $ 293
Net realized gains (losses) on investments.... 1,900 1,650 358 471 17 (10)
Net increase (decrease) in unrealized
appreciation of investments................ 5,010 (1,721) 2,181 (1,034) 454 (403)
------- ------- ------- ------- ------ ------
Net increase (decrease) in net assets resulting
from operations............................... 10,573 662 3,958 122 798 (120)
------- ------- ------- ------- ------ ------
From unit transactions:
Net proceeds from the issuance of units....... 21,677 8,872 20,006 6,536 516 456
Net asset value of units redeemed or used to
meet contract obligations.................. 9,320 11,608 6,980 8,665 418 413
------- ------- ------- ------- ------ ------
Net increase (decrease) from unit
transactions.................................. 12,357 (2,736) 13,026 (2,129) 98 43
------- ------- ------- ------- ------ ------
Net increase (decrease) in net assets........... 22,930 (2,074) 16,984 (2,007) 896 (77)
Net assets beginning of year.................... 36,602 38,676 12,288 14,295 5,616 5,693
------- ------- ------- ------- ------ ------
Net assets end of year*......................... $59,532 $36,602 $29,272 $12,288 $6,512 $5,616
======= ======= ======= ======= ====== ======
Units outstanding beginning of year............. 1,705 1,829 565 658 331 329
Units issued during the year.................... 815 419 735 297 28 27
Units redeemed during the year.................. 383 543 284 390 23 25
------- ------- ------- ------- ------ ------
Units outstanding end of year................... 2,137 1,705 1,016 565 336 331
======= ======= ======= ======= ====== ======
- ---------------
* Includes undistributed net investment income
of: $ 9,506 $ 5,843 $ 8,958 $ 7,539 $8,848 $8,521
</TABLE>
See notes to financial statements.
F-5
<PAGE> 55
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
LONG TERM BOND DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ----------------- -----------------
1995 1994 1995 1994 1995 1994
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............. $ 474 $ 3,093 $ 2,843 $ 976 $ 1,566 $ 1,323
Net realized gains on
investments.................... 8,193 233 439 438 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... 3,566 (6,749) 5,659 (1,347) 0 0
------- ------- ------- ------- ------- -------
Net increase (decrease) in net
assets resulting from
operations........................ 12,233 (3,423) 8,941 67 1,566 1,323
------- ------- ------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 739 578 17,167 3,644 1,811 1,542
Net asset value of units redeemed
or used to meet contract
obligations.................... 44,332 3,199 2,298 6,126 3,761 16,104
------- ------- ------- ------- ------- -------
Net increase (decrease) from unit
transactions...................... (43,593) (2,621) 14,869 (2,482) (1,950) (14,562)
------- ------- ------- ------- ------- -------
Net increase (decrease) in net
assets............................ (31,360) (6,044) 23,810 (2,415) (384) (13,239)
Net assets beginning of year........ 45,481 51,525 34,596 37,011 31,876 45,115
------- ------- ------- ------- ------- -------
Net assets end of year*............. $ 14,121 $45,481 $58,406 $34,596 $31,492 $31,876
======= ======= ======= ======= ======= =======
Units outstanding beginning of
year.............................. 2,521 2,664 1,805 1,939 2,123 3,103
Units issued during the year........ 28 31 728 191 117 108
Units redeemed during the year...... 1,944 174 106 325 243 1,088
------- ------- ------- ------- ------- -------
Units outstanding end of year....... 605 2,521 2,427 1,805 1,997 2,123
======= ======= ======= ======= ======= =======
- ---------------
* Includes undistributed net
investment income of: $ 26,013 $25,539 $18,197 $15,354 $22,512 $20,946
</TABLE>
See notes to financial statements.
F-6
<PAGE> 56
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by The Mutual Life Insurance Company of
New York ("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Flexible Premium Variable Life Insurance Policies. These
policies are issued by MONY. MONY is currently taxed as a life insurance company
and will include the Variable Account's operations in its tax return. MONY does
not expect, based upon current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
There are currently six subaccounts within the Variable Account, and each
invests only in a corresponding portfolio of the MONY Series Fund, Inc. (the
"Fund"). The Fund is registered under the 1940 Act as an open end, diversified,
management investment company.
A full presentation of the related financial statements and footnotes of
the Fund are contained on pages 66 to 128 and should be read in conjunction with
these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective portfolios of the Fund
is stated at value which is the net asset value of the Fund. Net asset values
are based upon market valuations of the securities held in each of the
corresponding portfolios of the Fund. For the Money Market Portfolio, the net
asset values are based on amortized cost of the securities held which
approximates value.
3. RELATED PARTY TRANSACTIONS
MONY is the legal holder of the assets of the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted monthly from the cash
value of the contract to compensate MONY. These deductions are treated as
contractholder redemptions by the Variable Account. The amount deducted for all
subaccounts for 1995 aggregated $13,986.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.60 percent of aggregate average daily
net assets. As MONY America, a wholly-owned subsidiary of MONY, acts as
investment adviser to the Fund, it receives amounts paid by the Fund for those
services.
F-7
<PAGE> 57
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1995 consist
of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares................................... 1,777 791 576 4,344 2,633 31,876
Amount................................... $36,274 $13,280 $5,966 $ 47,647 $34,139 $31,876
------- ------- ------ -------- ------- -------
Shares acquired:
Shares................................... 887 1,063 66 51 1,055 1,828
Amount................................... $22,637 $20,697 $ 703 $ 623 $17,166 $ 1,828
Shares received for reinvestment of
dividends:
Shares................................... 156 77 34 59 196 1,757
Amount................................... $ 3,917 $ 1,506 $ 363 $ 762 $ 3,088 $ 1,757
Shares redeemed:
Shares................................... 449 438 60 3,358 169 3,969
Amount................................... $ 8,634 $ 7,400 $ 624 $ 36,311 $ 2,103 $ 3,969
------- ------- ------ -------- ------- -------
Net change:
Shares................................... 594 702 40 (3,248) 1,082 (384)
Amount................................... $17,920 $14,803 $ 442 ($34,926) $18,151 ($ 384)
------- ------- ------ -------- ------- -------
Shares end of year:
Shares................................... 2,371 1,493 616 1,096 3,715 31,492
Amount................................... $54,194 $28,083 $6,408 $ 12,721 $52,290 $31,492
======= ======= ====== ======== ======= =======
</TABLE>
F-8
<PAGE> 58
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of the
Mutual Life Insurance Company of New York and
the Contractholders of MONY Variable Account L:
We have audited the accompanying statements of operations of MONY Variable
Account L (comprising, respectively, the Equity Growth, Equity Income,
Intermediate Term Bond, Long Term Bond, Diversified and Money Market
Subaccounts) for the year ended December 31, 1994. This financial statement is
the responsibility of MONY's management. Our responsibility is to express an
opinion on this financial statement based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the statements of operations are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the statements of operations. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the
statements of operations. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the statements of operations referred to above present
fairly, in all material respects, the results of operations for each of the
respective subaccounts constituting MONY Variable Account L for the year ended
December 31, 1994 in conformity with generally accepted accounting principles.
COOPERS & LYBRAND
New York, New York
February 15, 1995
F-9
<PAGE> 59
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT TOTAL
---------- ---------- ------------ --------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income....... $ 959 $ 764 $ 326 $ 3,379 $ 1,191 $ 1,573 $ 8,192
Mortality and expense
risk charges (Note
3).................. (226) (79) (33) (286) (215) (250) (1,089)
------- ------- ----- ------- ------- ------- -------
Net investment
income.............. 733 685 293 3,093 976 1,323 7,103
------- ------- ----- ------- ------- ------- -------
Realized and
unrealized gains
(losses) on
investments (Note
2):
Proceeds from
sales.......... 16,109 11,104 445 3,485 6,341 16,444 53,928
Cost of shares
sold........... 14,459 10,633 455 3,252 5,903 16,444 51,146
------- ------- ----- ------- ------- ------- -------
Net realized gains
(losses) on
investments......... 1,650 471 (10) 233 438 0 2,782
Net decrease in
unrealized
appreciation of
investments......... (1,721) (1,034) (403) (6,749) (1,347) 0 (11,254)
------- ------- ----- ------- ------- ------- -------
Net realized and
unrealized losses on
investments......... (71) (563) (413) (6,516) (909) 0 (8,472)
------- ------- ----- ------- ------- ------- -------
Net increase
(decrease) in net
assets resulting
from operations..... $ 662 $ 122 ($120) ($3,423) $ 67 $ 1,323 ($1,369)
======= ======= ===== ======= ======= ======= =======
</TABLE>
See notes to financial statements.
F-10
<PAGE> 60
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by The Mutual Life Insurance Company of
New York ("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Flexible Premium Variable Life Insurance Policies. These
policies are issued by MONY. MONY is currently taxed as a life insurance company
and will include the Variable Account's operations in its tax return. MONY does
not expect, based upon current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for Federal income tax purposes.
There are currently six subaccounts within the Variable Account, and each
invests only in a corresponding portfolio of the MONY Series Fund, Inc. (the
"Fund"). The Fund is registered under the 1940 Act as an open-end, diversified,
management investment company.
2. SIGNIFICANT ACCOUNTING POLICIES
A. Investments:
The investment in shares of each of the respective portfolios of the Fund
is stated at value which is the net asset value of the Fund. Net asset values
are based upon market valuations, as described below, of the securities held in
each of the corresponding portfolios.
Portfolio Valuations:
Short-term securities are valued at amortized cost. The amortized cost of a
security is determined by valuing it at original cost and thereafter amortizing
any discount or premium at a constant rate until maturity.
Common stocks traded on national securities exchanges are valued at the
last sales price as of the close of the New York Stock Exchange or at the last
bid price for over-the-counter securities.
Bonds are valued at the last available price provided by an independent
pricing service for securities traded on a national securities exchange. Bonds
that are listed on a national securities exchange but are not traded and bonds
that are regularly traded in the over-the-counter market are valued at the mean
of the last available bid and asked prices.
All other securities, including any restricted securities, will be valued
at their fair value as determined in good faith by the Board of Directors of the
Fund.
B. Security Transactions and Investment Income:
Security transactions are recorded as of the trade date.
Dividend income is recorded on the ex-dividend date.
Realized gains and losses from investments sold are determined on the basis
of identified cost for accounting and tax purposes.
F-11
<PAGE> 61
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted monthly from the cash
value of the contract to compensate MONY. These deductions are treated as
contractholder redemptions by the Variable Account. The amount deducted for 1994
aggregated $16,977.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.60 percent of aggregate average daily
net assets. As MONY America, a wholly-owned subsidiary of MONY, acts as
investment adviser to the Fund, it receives amounts paid by the Fund for those
services. MONY is the legal holder of the assets of the Variable Account.
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1994 consist
of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO TOTAL
--------- --------- ------------ --------- ----------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares............... 1,868 870 542 4,275 2,748 45,115 55,418
Amount............... $ 36,627 $ 14,253 $5,640 $46,942 $35,207 $ 45,115 $183,784
Shares acquired:
Shares............... 627 532 44 51 269 1,632 3,155
Amount............... $ 13,147 $ 8,896 $ 455 $ 578 $ 3,644 $ 1,632 $ 28,352
Shares received for
reinvestment of
dividends:
Shares............... 47 49 33 323 91 1,573 2,116
Amount............... $ 959 $ 764 $ 326 $ 3,379 $ 1,191 $ 1,573 $ 8,192
Shares redeemed:
Shares............... 765 660 43 305 475 16,444 18,692
Amount............... $ 14,459 $ 10,633 $ 455 $ 3,252 $ 5,903 $ 16,444 $ 51,146
------- ------- ------ ------- ------- ------- --------
Net change:
Shares............... (91) (79) 34 69 (115) (13,239) (13,421)
Amount............... $ (353) $ (973) $ 326 $ 705 $(1,068) $ (13,239) $(14,602)
------- ------- ------ ------- ------- ------- --------
Shares end of year:
Shares............... 1,777 791 576 4,344 2,633 31,876 41,997
Amount............... $ 36,274 $ 13,280 $5,966 $47,647 $34,139 $ 31,876 $169,182
======= ======= ====== ======= ======= ======= ========
</TABLE>
F-12
<PAGE> 62
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of the
Mutual Life Insurance Company of New York and
the Contractholders of MONY Variable Account L:
We have audited the accompanying statements of operations of MONY Variable
Account L (comprising, respectively, the Equity Growth, Equity Income,
Intermediate Term Bond, Long Term Bond, Diversified and Money Market
Subaccounts) for the year ended December 31, 1993. This financial statement is
the responsibility of MONY's management. Our responsibility is to express an
opinion on this financial statement based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the statements of operations are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the statements of operations. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the
statements of operations. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the statements of operations referred to above present
fairly, in all material respects, the results of operations for each of the
respective subaccounts constituting MONY Variable Account L for the year ended
December 31, 1993 in conformity with generally accepted accounting principles.
COOPERS & LYBRAND
New York, New York
February 15, 1994
F-13
<PAGE> 63
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT TOTAL
---------- ---------- ------------ --------- ---------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income............. $ 1,598 $1,071 $ 322 $ 2,952 $ 1,458 $1,325 $ 8,726
Mortality and expense risk
charges (Note 3).......... (240) (83) (34) (327) (213) (289) (1,186)
------- ------- ----- ------- ------- ------- -------
Net investment income....... 1,358 988 288 2,625 1,245 1,036 7,540
------- ------- ----- ------- ------- ------- -------
Realized and unrealized
gains on investments (Note
2):
Proceeds from sales.... 19,160 9,085 1,156 14,159 7,710 10,526 61,796
Cost of shares sold.... 16,865 7,905 1,063 12,216 7,297 10,526 55,872
------- ------- ----- ------- ------- ------- -------
Net realized gain on
investments............... 2,295 1,180 93 1,943 413 0 5,924
Net increase (decrease) in
unrealized appreciation of
investments............... (324) (433) 27 2,559 1,721 0 3,550
------- ------- ----- ------- ------- ------- -------
Net realized and unrealized
gain on investments....... 1,971 747 120 4,502 2,134 0 9,474
------- ------- ----- ------- ------- ------- -------
Net increase in net assets
resulting from
operations................ $ 3,329 $1,735 $ 408 $ 7,127 $ 3,379 $1,036 $17,014
======= ======= ===== ======= ======= ======= =======
</TABLE>
See notes to financial statements.
F-14
<PAGE> 64
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by The Mutual Life Insurance Company of
New York ("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Flexible Premium Variable Life Insurance Policies. These
policies are issued by MONY. MONY is currently taxed as a life insurance company
and will include the Variable Account's operations in its tax return. MONY does
not expect, based upon current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for Federal income tax purposes.
There are currently six subaccounts within the Variable Account, and each
invests only in a corresponding portfolio of the MONY Series Fund, Inc. (the
"Fund"). The Fund is registered under the 1940 Act as an open-end, diversified,
management investment company.
2. SIGNIFICANT ACCOUNTING POLICIES
A. Investments:
The investment in shares of the Fund is stated at the net asset values of
the Fund. The Fund's net asset values are based upon market valuations, as
described below, of the securities held in each of the corresponding portfolios.
Portfolio Valuations:
The Portfolios value all short-term securities at amortized cost. The
amortized cost of a security is determined by valuing it at original cost and
thereafter amortizing any discount or premium at a constant rate until maturity.
Common stocks traded on national securities exchanges are valued at the
last sales price as of the close of the New York Stock Exchange or at the last
bid price for over-the-counter securities.
Bonds are valued at the last available price provided by an independent
pricing service for securities traded on a national securities exchange. Bonds
that are listed on a national securities exchange but are not traded and bonds
that are regularly traded in the over-the-counter market are valued at the mean
of the last available bid and asked prices.
All other securities, including any restricted securities, will be valued
at their fair value as determined in good faith by the Board of Directors of the
Fund.
B. Security Transactions and Investment Income:
Security transactions are recorded as of the trade date.
Dividend income is recorded on the ex-dividend date. Interest income is
accrued as earned.
Realized gains and losses from investments sold are determined on the basis
of first-in, first-out for accounting and tax purposes.
F-15
<PAGE> 65
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS:
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted monthly from the cash
value of the contract to compensate MONY. These deductions are treated as
contractholder redemptions by the Variable Account. The amount deducted for 1993
aggregated $15,596.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.60 percent of aggregate average daily
net assets. As MONY America, a wholly-owned subsidiary of MONY, acts as
investment adviser to the Fund, it receives amounts paid by the Fund for those
services. MONY is the legal holder of the assets of the Variable Account.
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1993 consist
of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO TOTAL
------- ------- ------------ --------- ----------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares................ 2,082 828 572 4,784 2,563 52,061 62,890
Amount................ $38,597 $12,409 $5,882 $51,515 $32,314 $52,061 192,778
Shares acquired:
Shares................ 646 514 46 390 644 2,255 4,495
Amount................ $13,297 $ 8,678 $ 499 $ 4,691 $ 8,732 $ 2,255 $ 38,152
Shares received for
reinvestment of
dividends:
Shares................ 77 65 31 245 108 1,325 1,851
Amount................ $ 1,598 $ 1,071 $ 322 $ 2,952 $ 1,458 $ 1,325 $ 8,726
Shares redeemed:
Shares................ 937 537 107 1,144 567 10,526 13,818
Amount................ $16,865 $ 7,905 $1,063 $12,216 $ 7,297 $10,526 $ 55,872
------- ------- ------ ------- ------- ------- --------
Net change:
Shares................ (214) 42 (30) (509) 185 (6,945) (7,472)
Amount................ ($1,970) $ 1,844 ($242) ($4,573) $ 2,893 ($6,946) ($8,994)
------- ------- ------ ------- ------- ------- --------
Shares end of year:
Shares................ 1,868 870 542 4,275 2,748 45,115 55,418
Amount................ $36,627 $14,253 $5,640 $46,942 $35,207 $45,115 $183,784
======= ======= ====== ======= ======= ======= ========
</TABLE>
F-16
<PAGE> 66
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of
The Mutual Life Insurance Company of New York:
We have audited the accompanying balance sheets of The Mutual Life
Insurance Company of New York as of December 31, 1995 and 1994, and the related
statements of operations, surplus, and cash flows for the years then ended.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of The Mutual Life Insurance
Company of New York as of December 31, 1995 and 1994, and the results of its
operations and its cash flows for the years then ended in conformity with
accounting practices prescribed or permitted by the Insurance Department of the
State of New York, which are considered generally accepted accounting principles
for mutual life insurance companies.
Our audits were conducted for the purpose of expressing an opinion on the
financial statements taken as a whole. The Supplemental Schedule of Selected
Financial Data is presented to comply with the NAIC's Annual Statement
Instructions and is not a required part of the basic financial statements. The
Supplemental Schedule of Selected Financial Data has been subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, is fairly stated, in all material respects, in relation to the
basic financial statements taken as a whole.
New York, New York
February 21, 1996
F-17
<PAGE> 67
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------------
1995 1994
----------- -----------
<S> <C> <C>
ASSETS
Cash.............................................................. $ 17,199 $ 15,466
Investments:
Short-term investments.......................................... 248,671 135,206
Bonds........................................................... 3,769,905 3,568,544
Preferred stocks................................................ 17,173 19,467
Common stocks................................................... 264,166 191,795
Subsidiary companies............................................ 135,875 123,401
Mortgage loans.................................................. 1,636,538 1,771,305
Real estate..................................................... 1,739,890 1,943,241
Policy loans.................................................... 1,180,454 1,188,775
Other invested assets........................................... 352,536 339,151
Investment income due and accrued................................. 143,412 139,570
Premiums deferred and uncollected................................. 207,142 210,547
Separate account assets........................................... 1,530,226 1,835,772
Federal income taxes recoverable.................................. -- 45,045
Amounts due from reinsurers....................................... 81,200 104,622
Other assets...................................................... 46,705 38,094
----------- -----------
Total assets................................................. $11,371,092 $11,670,001
=========== ===========
POLICY RESERVES, LIABILITIES AND SURPLUS
Policy reserves:
Life insurance and annuity reserves............................. $ 7,316,732 $ 7,385,975
Health insurance reserves....................................... 146,802 134,796
Deposits left with the Company.................................. 513,347 496,421
Liabilities:
Dividends to policyholders...................................... 204,332 210,841
Policy claims in process of settlement.......................... 66,003 65,559
Funds held under coinsurance.................................... 112,025 117,379
Taxes accrued................................................... 64,148 160,636
Notes payable and accrued interest.............................. 76,405 --
Separate account liabilities.................................... 1,520,965 1,828,368
Other liabilities............................................... 290,083 266,080
Interest maintenance reserve.................................... 10,028 3,728
Investment reserves............................................. 90,000 90,000
Asset valuation reserve......................................... 271,205 230,148
----------- -----------
Total policy reserves and liabilities........................ 10,682,075 10,989,931
Surplus:
Surplus notes................................................... 72,317 72,317
Special surplus funds........................................... 27,250 27,150
Unassigned surplus.............................................. 589,450 580,603
----------- -----------
Surplus...................................................... 689,017 680,070
----------- -----------
Total policy reserves, liabilities and surplus............... $11,371,092 $11,670,001
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-18
<PAGE> 68
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF OPERATIONS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER
31,
----------------------------
1995 1994
---------- -----------
<S> <C> <C>
Premiums, annuity considerations and fund deposits............... $1,214,625 $ 1,380,437
Net investment income............................................ 627,609 590,504
Revenue from ceded reinsurance................................... 86,104 155,071
Other income (net)............................................... 20,934 38,969
---------- -----------
1,949,272 2,164,981
---------- -----------
Policyholder and contractholder benefits......................... 1,517,313 1,508,822
Change in policy and contract reserves........................... (56,389) (32,767)
Commissions...................................................... 62,211 70,923
Operating expenses............................................... 273,783 291,003
Reinsurance of group pension liabilities......................... 540,230 2,619,449
Transfer to/(from) separate accounts............................. (677,525) (2,607,724)
Other deductions (net)........................................... 7,094 6,927
---------- -----------
1,666,717 1,856,633
---------- -----------
Net gain from operations before dividends and federal income
taxes.......................................................... 282,555 308,348
Dividends to policyholders....................................... 210,675 215,932
---------- -----------
Net gain from operations before federal income taxes............. 71,880 92,416
Federal income taxes............................................. 10,057 6,700
---------- -----------
Net gain from operations......................................... 61,823 85,716
Net realized capital losses (See Note 8)....................... (8,480) (4,296)
---------- -----------
Net Income....................................................... $ 53,343 $ 81,420
========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-19
<PAGE> 69
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF SURPLUS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
---------------------
1995 1994
-------- --------
<S> <C> <C>
Surplus, beginning of year............................................. $680,070 $600,175
-------- --------
Net income............................................................. 53,343 81,420
Change in net unrealized capital gains/(losses)........................ 10,220 (55,211)
Change in non-admitted assets.......................................... (7,689) (5,274)
Change in asset valuation reserve...................................... (41,057) (5,149)
Change in policy reserve valuation basis............................... 5,081 --
Provision for contingencies............................................ (11,300) (9,800)
Issuance of surplus notes (See Note 17)................................ -- 69,990
Other changes to surplus............................................... 349 3,919
-------- --------
Net change in surplus for the year..................................... 8,947 79,895
-------- --------
Surplus, end of year................................................... $689,017 $680,070
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-20
<PAGE> 70
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
---------------------------
1995 1994
----------- -----------
<S> <C> <C>
CASH FLOW PROVIDED FROM OPERATIONS:
Premiums, annuity considerations and fund deposits.............. $ 1,221,753 $ 1,380,988
Investment income net of investment expenses.................... 674,055 640,325
Other income.................................................... 198,984 97,437
Net change in policy loans...................................... 8,388 23,940
Policy benefits paid............................................ (1,526,855) (1,492,816)
Transfers from/(to) separate accounts........................... 133,921 (11,525)
Commissions, other expenses and taxes paid...................... (325,054) (360,655)
Dividends to policyholders...................................... (217,183) (209,576)
Federal income taxes (excluding capital gains tax).............. (66,395) 6,502
----------- -----------
Net cash from operations..................................... 101,614 74,620
----------- -----------
PROCEEDS FROM INVESTMENTS SOLD, MATURED OR REPAID:
Bonds........................................................... 685,588 805,903
Stocks.......................................................... 81,590 115,515
Mortgage loans.................................................. 190,373 337,436
Real estate..................................................... 279,098 34,725
Other invested assets........................................... 15,260 27,615
Other........................................................... (45,091) 145
----------- -----------
Total investment proceeds.................................... 1,206,818 1,321,339
----------- -----------
OTHER CASH PROVIDED:
Notes payable (See Note 16)..................................... 76,341 --
Issuance of surplus notes (See Note 17)......................... -- 69,990
Other sources................................................... 8,263 1,381
----------- -----------
Total cash provided.......................................... 1,393,036 1,467,330
----------- -----------
CASH APPLIED:
Cost of investments acquired:
Bonds........................................................ 879,648 1,061,124
Stocks....................................................... 137,745 92,753
Mortgage loans............................................... 117,247 112,269
Real estate.................................................. 76,032 128,269
Other invested assets........................................ 24,318 36,988
----------- -----------
Total investments acquired................................. 1,234,990 1,431,403
----------- -----------
Other cash applied.............................................. 42,848 90,125
----------- -----------
Total cash applied........................................... 1,277,838 1,521,528
----------- -----------
Net change in cash and short-term investments................... 115,198 (54,198)
Cash and short-term investments, beginning of year................ 150,672 204,870
----------- -----------
Cash and short-term investments, end of year...................... $ 265,870 $ 150,672
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-21
<PAGE> 71
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Nature of Operations
The Mutual Life Insurance Company of New York (the "Company") is a mutual
life insurance company primarily engaged in the business of providing individual
life insurance and disability income protection and asset accumulation products.
The Company's principal markets consist of business owners, growing families,
and pre-retirees. The Company's insurance and financial products are marketed
and distributed directly to individuals primarily through the Company's career
agency sales force. These products are sold throughout the United States and
Puerto Rico.
Basis of Presentation
The Company's financial statements have been prepared on the basis of
accounting practices and procedures prescribed or permitted by the Insurance
Department of the State of New York, which are currently considered to be
generally accepted accounting principles ("GAAP") for mutual life insurance
companies domiciled in New York (see Note 18). The preparation of financial
statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
The following is a description of the principal accounting practices and
procedures:
a. Premiums are included in revenue over the premium payment periods
of the related policies. Annuity considerations and fund deposits are
included in revenue as received.
Commissions and other costs related to issuance, maintenance and
settlement of policies are charged to operations in the year incurred.
b. Short-term investments are carried at cost and consist of
securities with maturities of three months or less. Bonds eligible for
amortization under rules promulgated by the National Association of
Insurance Commissioners ("NAIC") are carried at amortized cost, while all
other bonds are carried at values adopted by the NAIC, which approximate
fair market value. Loan backed bonds and structured securities are valued
at amortized cost using the effective interest method considering
anticipated prepayments at the date of purchase; significant changes in the
estimated cash flows from the original purchase assumptions are accounted
for using the retrospective method. Common stocks are carried at market
value except investments in subsidiaries, which are generally carried on
the equity basis. Preferred stocks are carried principally at cost except
for those securities in or near default which are valued at market. Policy
loans are carried at their unpaid balances.
Mortgage loans other than those in process of foreclosure are carried
at their unpaid balances adjusted for unamortized discount. Real estate
owned for investment is carried at depreciated cost, less encumbrances ($2
million in 1995 and $7 million in 1994). Joint ventures and limited
partnerships in real estate, cable television and energy are included in
other invested assets and are carried principally at their equity value.
Other investments are generally carried at cost.
Real estate acquired through foreclosure is carried at the lower of
cost or estimated fair value at the time of foreclosure, less accumulated
depreciation and encumbrances. Mortgage loans in process of foreclosure are
also carried at the lower of cost or estimated fair value. Fair value is
determined by using the estimated discounted cash flows expected from the
underlying real estate properties. These projected cash flows are based on
estimates regarding future operating expenses, lease rates, occupancy
levels and investors' targeted yields.
F-22
<PAGE> 72
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: -- (CONTINUED)
The Company provides, through a direct charge to surplus, an
investment valuation reserve for permanent impairment of real estate
investments, joint ventures and limited partnerships in real estate and
mortgage loans delinquent for more than 60 days and restructured mortgage
loans. This reserve reflects, in part, the excess of the carrying value of
such assets over the estimated undiscounted cash flows expected from the
underlying real estate properties. These projected cash flows are based on
estimates similar to those described in the preceding paragraph. As of
December 31, 1995 and 1994, the Company's investment reserve for its
mortgage loan and real estate investments was $90 million.
c. Realized investment gains and losses (net of tax) for bonds and
mortgage loans resulting from changes in interest rates are deferred, and
credited or charged to the Interest Maintenance Reserve ("IMR"). These
amounts are amortized into net income over the remaining years to expected
maturity of the assets sold. Unrealized capital gains and losses are
recorded directly to surplus.
The Asset Valuation Reserve ("AVR") is based upon a formula prescribed
by the NAIC and functions as a reserve for potential non-interest-related
investment losses. In addition, realized investment gains and losses (not
subject to the IMR) and unrealized gains and losses result in offsetting
increases and decreases in the AVR. These changes to the AVR are recorded
directly to surplus.
d. Policy reserves for life insurance, annuities, and supplemental
benefits are computed by using prescribed statutory interest rates and
mortality factors. Reserves computed by a modified commissioners' reserve
valuation method represent approximately 74% of gross life insurance
reserves at December 31, 1995 and 1994.
Reserves for life insurance were principally determined by using the
1941, 1958 and 1980 Commissioners' Standard Ordinary Mortality and the
American Experience Tables and assumed interest rates ranging from 2.25% to
7%. Reserves for individual and group annuity mortality tables have assumed
interest rates ranging from 2.25% to 9.5%.
During 1995, the Company changed its methods of accounting for certain
minimum reserves with the approval of the New York State Insurance
Department. The Company incorporated 10-year select factors in its minimum
mortality standard for certain 1980 CSO products, resulting in an increase
in surplus of $5.1 million.
Policy claims in process of settlement include provisions for payments
to be made on reported claims and on claims incurred but not reported.
e. The Company's subsidiaries are not consolidated. The subsidiaries
are carried principally on the statutory equity basis. Changes in the
Company's equity in subsidiaries are included in unrealized capital gains
and losses. Dividends from subsidiaries are recognized as investment income
when declared.
f. Dividends to policyholders are determined annually by the Board of
Trustees.
g. Certain assets designated as "non-admitted" assets (principally
miscellaneous receivables) are excluded from the balance sheets.
h. Separate account assets and liabilities represent segregated funds
administered and invested by the Company for the benefit of certain
contractholders. Approximately 98% of these assets consist of securities
reported at market value and 2% consist of fixed income securities carried
at amortized cost. Premiums, benefits and expenses of the separate accounts
are included in the Company's statements of operations.
i. No deferred taxes are recognized for differences that exist between
financial reporting and taxable income.
F-23
<PAGE> 73
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: -- (CONTINUED)
j. The Company uses the constant-yield method of depreciation for
substantially all investment real estate, real estate joint ventures and
cable television limited partnerships acquired prior to January 1, 1991.
Acquisitions subsequent to January 1, 1991 and foreclosed real estate are
depreciated on the straight line method. Real estate assets and
improvements are generally depreciated over ten to forty year periods and
leasehold improvements over the lives of the leases. Depreciation expense
related to investments in real estate was $48.8 million and $50.5 million
in 1995 and 1994, respectively; accumulated depreciation was $214.3 million
and $185.1 million at December 31, 1995 and 1994, respectively.
k. Special surplus funds consist primarily of amounts required by the
State of New York to be assigned as surplus funds for group insurance,
separate accounts, and aviation reinsurance.
l. Certain amounts for 1994 have been reclassified to conform to the
1995 presentation.
2. REINSURANCE OF GROUP PENSION BUSINESS:
On December 31, 1993, the Company entered into an agreement with AEGON USA,
Inc. ("AEGON USA") under which the Company agreed to transfer $6.3 billion in
group pension assets and liabilities, including $2.7 billion of general account
assets and $3.6 billion of separate account assets. Pursuant to the transaction,
the Company transferred substantially all of its group pension business and
operations, including its full service group pension contracts, consisting
primarily of tax-deferred annuity, 401(k) and managed funds lines of business,
to AEGON USA's wholly-owned subsidiary, AUSA Life Insurance Company, Inc. ("AUSA
Life"). AUSA Life also acquired the corporate infrastructure supporting the
group pension business, including personnel, data processing systems, facilities
and regional offices. In connection with the transaction, the Company and AEGON
USA have entered into certain service agreements. These agreements, among other
things, provide that the Company will continue to manage the transferred assets,
and that AUSA Life will continue to provide certain administrative services to
the Company's remaining group pension contracts not included in the transfer.
Effective with the agreement, AUSA reinsured, on an indemnity reinsurance
basis, the contract liabilities funded by such general account assets. AUSA
agreed to reinsure such general account liabilities on an assumption reinsurance
basis upon the consent of general account contractholders to assumption of their
contracts pursuant to the Group Pension Transaction. The separate account assets
and liabilities were to be transferred to AUSA based upon the consent of
separate account contractholders to assumption of their contracts. As of
December 31, 1995, approximately $6.0 billion, representing 95% of the original
transferred contractholder liabilities were converted from indemnity to
assumption reinsurance, whereby AUSA Life replaced the Company as the primary
obligor. As of December 31, 1995, the remaining nontransferred assets subject to
indemnity reinsurance in the Company's general account amounted to approximately
$215 million in addition to separate account assets of approximately $110
million. To the extent that assumption reinsurance is precluded by law or
contractholder election, certain contracts will continue to be reinsured under
indemnity agreements. If any such contractholder rejects the assumption, or if
the assumption of any holder's contract is precluded by law, such holder's
contract will continue to be reinsured by AUSA Life on an indemnity reinsurance
basis, and the Company will remain contingently liable under the contract in the
event that AUSA Life fails to perform its reinsurance obligations.
In connection with the transaction at December 31, 1993, the Company made a
$200 million capital investment in AEGON USA by purchasing $150 million of
Series A and $50 million of Series B notes, which have a term of nine years and
receive a market rate of interest. In addition to interest payments on the
notes, the Company has the right to receive certain payments based on the
profits of the transferred business in force on the transaction date, a future
payment tied to the determination of the value of the transferred business at
the end of nine years, and a potential payment based on new business growth. The
Company has the option to
F-24
<PAGE> 74
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
2. REINSURANCE OF GROUP PENSION BUSINESS: -- (CONTINUED)
purchase additional Series A notes with payments from the profits of the
transferred business. Net operating losses, if any, on the transferred business
for any year will be carried forward to reduce profit payments in subsequent
years. Any deficit remaining at the end of the nine year term and any adjustment
related to the final value of the transferred business may only be applied to
reduce the principal amount of any outstanding Series A notes. At December 31,
1995, the Company owned $233.7 million of Series A Notes. During 1995 and 1994,
the Company earned $70.2 million and $84.7 million, respectively, based upon the
profits of the transferred group pension business and recorded this amount as
revenue from ceded reinsurance in the statement of operations. Pursuant to the
assumption agreement, the Company expects to acquire approximately $67 million
of additional Series A notes during 1996 with payments from the profits of the
transferred business.
3. SUBSIDIARY COMPANIES:
At December 31, 1995 and 1994, the Company's investments in subsidiaries,
all of which are wholly-owned, consisted of the following:
<TABLE>
<CAPTION>
1995 1994
------ ------
(IN MILLIONS)
<S> <C> <C>
MONY Life Insurance Company of America..................... $115.6 $104.9
Non-life subsidiaries...................................... 20.3 18.5
------ ------
$135.9 $123.4
====== ======
</TABLE>
At December 31, 1995, MONY Life Insurance Company of America ("MONY
America") had assets of $3.1 billion; including bonds ($1,018 million), mortgage
loans ($173 million) and separate account assets ($1,686 million); and
liabilities of $3.0 billion, primarily life insurance and annuity reserves ($1.3
billion) and separate account liabilities ($1.7 billion). Capital and surplus of
MONY America was $115.6 million. In 1995 and 1994, total revenues of MONY
America were $715 million and $597 million, benefits and expenses were $701 and
$585 million and net income, including realized capital losses, was $5 and $6
million, respectively.
During 1995, the Company contributed $10 million to the capital of MONY
America. During 1995 and 1994, the Company made aggregate capital contributions
of $2.5 and $3.5 million to certain non-life subsidiaries. The Company also
received aggregate capital distributions of $5.3 million in 1995 and $3 million
in 1994 from its non-life subsidiaries. In 1994, the Company purchased
commercial mortgages with a book value of $5 million from MONY America for
consideration of $4 million. The consideration was based on the estimated fair
value of the assets.
The Company and MONY America are parties to an agreement dated February 28,
1995 whereby the Company agrees to reimburse MONY America to the extent that
MONY America's recognized loss as a result of mortgage loan default or
foreclosure or subsequent sale of the underlying collateral exceeds the 75% loan
to value ratio for each such mortgage loan at origination. Pursuant to the
agreement, the Company made payments to MONY America totaling $2.1 million in
1995.
4. COMMITMENTS AND CONTINGENCIES:
The Company has guaranteed to certain states that the surplus of MONY
America will be maintained at amounts at least equal to the minimum surplus
required for admission to those states.
During 1986 and 1987, MONY Funding Inc., a wholly-owned subsidiary of the
Company, issued $150 million of 8 1/4% notes due October 29, 1996 and $125
million of 8 1/8% notes due April 7, 1997, and invested the proceeds in
partially amortizing and nonamortizing commercial mortgage loans scheduled to
mature concurrently with the notes. As of December 31, 1995, the Company had
repurchased approximately
F-25
<PAGE> 75
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
4. COMMITMENTS AND CONTINGENCIES: -- (CONTINUED)
$60 million of these notes. The Company has guaranteed the principal and
interest of the remaining outstanding notes.
At December 31, 1995, the Company has guaranteed $34 million related to
real estate held by unrelated investors.
The Company maintains lines of credit with domestic banks totaling $150
million with scheduled renewal dates during 1996. The Company has not borrowed
against its credit lines since 1982.
In 1994, the Company reached an agreement for the transfer of the
management of its information systems operations to Computer Sciences
Corporation ("CSC"). Under the terms of this agreement to operate, manage and
enhance its information systems operations, the Company will pay CSC an
estimated $171 million over the remaining contract period. The total payments
under the contract may vary based upon certain factors, including the volume of
computing services and the introduction of new information systems technology.
The Company is a defendant in various legal actions arising primarily from
its investment and insurance operations. In addition, insurance companies are
subject to assessments, up to statutory limits, by state guaranty funds for
losses of policyholders of insolvent insurance companies. In the opinion of
management, assessments and the outcome of the legal proceedings will not have a
material adverse effect on the financial position and the results of operations
of the Company.
5. PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS:
Employee and Field Underwriter Retirement Plans
The Company has a qualified pension plan covering substantially all of its
salaried employees. The provisions of the plan provide both (a) defined benefit
accruals based on (i) years of service, (ii) the employee's final average annual
compensation and (iii) wage bases or benefits under Social Security and (b)
defined contribution accruals based on a Company matching contribution equal to
100% of the employee's elective deferrals under the incentive savings plan for
employees up to 3% of the employee's eligible compensation and an additional 2%
of eligible compensation for each active participant. The Company's funding and
accounting policies are to contribute annually the maximum amount that can be
deducted for federal income taxes and to charge expenses in the year in which
the contributions are made. No contributions were made in the current year or
prior year because the plan was subject to the full funding limitation under
Section 412 of the Internal Revenue Code. At December 31, 1994, the plan's
accumulated benefit obligation, determined in accordance with Statements of
Financial Accounting Standards Nos. 87 and 88 and based on an assumed settlement
rate of 8%, was $226.5 million, including vested benefits of $225.5 million. The
fair value of Plan assets as of December 31, 1994 was $334.8 million.
The Company also has a qualified money purchase pension plan covering
substantially all career field underwriters. Company contributions of 5% of
earnings plus an additional 2% of such earnings in excess of the social security
wage base are made each year. In addition, after-tax voluntary field underwriter
contributions of up to 10% of earnings are allowed. At December 31, 1994, the
fair value of plan assets was $176.2 million.
The Company sponsors a non-qualified defined benefit pension plan, which
provides benefits in excess of Internal Revenue Service limits to certain
employees. The benefits are based on years of service and the employee's final
average annual compensation. Pension benefits are paid from the Company's
general account. The amounts accrued by the Company for this plan, based on an
assumed 7.3% weighted average interest rate for 1995 and 7.4% for 1994 were
$33.1 million and $32.4 million in 1995 and 1994, respectively. The Company also
maintains various non-qualified defined contribution plans for field
underwriters and key employees. The amounts accrued for these various plans were
$54.2 million and $43.4 million in 1995 and 1994, respectively.
F-26
<PAGE> 76
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
5. PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS: -- (CONTINUED)
Deferred Compensation Plan
The Company has incentive savings plans in which substantially all
employees and career field underwriters are eligible to participate. The Company
matches employee and field underwriter contributions up to 3% and 2%,
respectively, of eligible compensation as defined. In addition, for employees,
the Company contributes 2% of eligible compensation for non-officer employees,
and may contribute up to an additional 3%. In addition, the Company has two
compensation plans for key employees which allow deferral of current
compensation, as allowed by New York Insurance Law.
Postretirement Benefits
The Company provides certain health care and life insurance (postretirement
benefits) for retired employees and field underwriters. In accordance with NAIC
requirements, the Company accrues the estimated employee cost of retiree benefit
payments for current retirees and fully vested employees and field underwriters
by estimating the actuarial present value of benefits expected to be paid after
retirement.
At December 31, 1992, the Company determined that the total pre-tax
postretirement benefit obligation approximated $82.9 million. The Company has
elected to amortize this transition obligation over a period of twenty years as
an expense in its statement of operations. The amount of unrecognized transition
obligation was reduced by approximately $10.8 million due to plan amendments
adopted during 1995. The amount of transition obligation amortized in 1995 and
1994 totaled approximately $3.6 million and $4.2 million, respectively. The
total cost to provide life insurance and health benefits for fully vested and
retired employees and field underwriters including the expense described above,
was $9.2 million in 1995 and $12.4 million in 1994.
At December 31, 1995, the unfunded postretirement benefit obligation for
retirees and fully vested employees was $81.4 million, with $17.3 million
included in other liabilities. The discount rate used in determining the
accumulated postretirement benefit obligation was 6.75%, and the health care
cost trend rate was 11.0% graded to 6.0% over 14 years.
The health care cost trend rate assumption has an effect on the amounts
reported. To illustrate, an increase in the assumed health care cost trend rates
of one percentage point in each year would increase the estimated postretirement
benefit obligation as of December 31, 1995 by $0.8 million and the estimated
eligibility cost and interest cost components of net periodic postretirement
benefit cost for 1995 by $0.1 million.
6. FEDERAL INCOME TAXES:
The Company files a consolidated federal income tax return with its life
and non-life affiliates. The allocation of federal income taxes is based upon
separate return calculations with current credit for net losses. Intercompany
tax balances are settled annually in the first quarter.
The Company's federal income tax returns for years through 1989 have been
examined with no proposed material adjustments. In the opinion of management,
adequate provision has been made for any additional taxes which may become due
with respect to open years.
Pre-tax operating gains and pre-tax realized gains, as reported in the
accompanying statements of operations, differ from taxable income reported for
tax purposes. Significant differences include the deferral and amortization of
policy acquisition costs for tax purposes, the difference between statutory and
tax reserves, the taxable portion of the Company's surplus (as applicable to
mutual life insurers), depreciation expense and related recapture, capital gains
deferred to the IMR, alternative minimum tax preference items and equity in
partnerships and joint ventures.
F-27
<PAGE> 77
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
6. FEDERAL INCOME TAXES: -- (CONTINUED)
During 1994, the Company reached a settlement with the United States
Department of Justice relating to tax litigation for the years 1981-1983. The
settlement provided for a refund of taxes of $15 million. Interest on the refund
of approximately $30 million was included in other income in the 1994 statement
of operations. The Company recorded a $45 million receivable for the combined
tax refund and related interest as federal income taxes recoverable at December
31, 1994. The Company received $47 million on August 28, 1995 which included
additional interest through that date.
7. LEASES:
The Company has entered into various operating lease agreements for office
space and furniture and equipment. These leases have remaining non-cancelable
lease terms in excess of one year. Total rental expense for these operating
leases amounted to $25.1 million in 1995 and $25.8 million in 1994. The future
minimum rental obligations under these leases at December 31, 1995 are as
follows:
<TABLE>
<CAPTION>
(IN MILLIONS)
-------------
<S> <C>
1996............................................................. $ 20.2
1997............................................................. 18.2
1998............................................................. 14.3
1999............................................................. 11.1
2000............................................................. 11.3
Later years...................................................... 66.0
------
$ 141.1
======
</TABLE>
8. CAPITAL GAINS/(LOSSES):
The Company realized net capital losses (after tax and IMR) of $(8) million
in 1995 and $(4) million in 1994 as follows:
<TABLE>
<CAPTION>
1995 1994
---- ----
(IN MILLIONS)
<S> <C> <C>
REALIZED CAPITAL GAINS/(LOSSES)
Bonds and preferred stock................................. $ 1 $ 0
Common stock.............................................. 8 (2)
Mortgage loans............................................ (3) 7
Real estate and other investments......................... 0 (3)
--- ---
6 2
Tax provision............................................. (5) (4)
Transferred to IMR, net of taxes.......................... (9) (2)
--- ---
Net realized capital gains/(losses)..................... $(8) $(4)
=== ===
</TABLE>
During 1995 and 1994, realized capital gains resulting from changes in
interest rates on fixed income securities of $9.2 million (net of $4.9 million
tax) and $1.6 million (net of $0.6 million tax), respectively, were transferred
to the Company's IMR for future amortization into net income.
The Company incurred net unrealized gains of $10 million in 1995 and net
unrealized capital losses of $55 million in 1994. The 1995 and 1994 unrealized
gains and losses include writedowns of approximately $13 million and $86
million, respectively, on real estate acquired through foreclosure and mortgage
loans in
F-28
<PAGE> 78
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
8. CAPITAL GAINS/(LOSSES): -- (CONTINUED)
process of foreclosure, including real estate held by subsidiaries. These gains
and losses are detailed by asset type in the table below:
<TABLE>
<CAPTION>
1995 1994
---- ----
(IN MILLIONS)
<S> <C> <C>
UNREALIZED CAPITAL GAINS/(LOSSES)
Bonds and preferred stock................................. $ 7 $ 19
Common stock.............................................. 10 (6)
Mortgage loans............................................ (13) (10)
Real estate............................................... 0 (73)
Subsidiaries.............................................. 8 2
Other investments......................................... (2) 13
---- ----
Total unrealized capital losses......................... $ 10 $(55)
==== ====
</TABLE>
9. COMMON STOCKS:
Common stocks include marketable equity securities carried at market values
of $136.3 million and $55.9 million at December 31, 1995 and 1994, respectively,
and nonmarketable equity investments carried at estimated fair values of $127.9
million and $135.9 million at December 31, 1995 and 1994, respectively. The cost
of marketable equity securities was $115.1 million and $62.7 million at December
31, 1995 and 1994, respectively. At December 31, 1995, gross unrealized gains
were $29.8 million, and gross unrealized losses were $8.6 million for marketable
equity securities.
F-29
<PAGE> 79
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
10. FIXED INCOME SECURITIES:
Fixed Income Securities by Investment Type:
The amortized cost and estimated fair value (see note 13) of investments in
fixed income securities which include short-term investments, bonds and
preferred stocks as of December 31, 1995 and December 31, 1994 are as follows:
<TABLE>
<CAPTION>
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
-------------------- --------------- --------------- --------------------
(DOLLARS IN MILLIONS) 1995 1994 1995 1994 1995 1994 1995 1994
- ------------------------------------------- -------- -------- ------ ----- ----- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Treasury securities and obligations of
U.S. government agencies................. $ 165.0 $ 314.5 $ 4.5 $ 0.9 $ 0.0 $ 4.2 $ 169.5 $ 311.2
Collateralized Mortgage Obligations:
Government Agency-Backed................. 254.1 250.5 4.3 0.0 0.7 26.6 257.7 223.9
Non-Agency Backed........................ 66.3 52.2 2.4 0.1 0.2 2.6 68.5 49.7
Other asset-backed securities:
Government Agency-Backed................. 83.4 90.0 4.0 1.1 0.3 5.1 87.1 86.0
Non-Agency Backed........................ 221.7 168.9 13.3 2.4 0.3 3.7 234.7 167.6
Foreign governments........................ 4.5 4.5 0.1 0.0 0.0 0.1 4.6 4.4
Utilities.................................. 448.5 393.7 28.6 6.8 1.0 24.4 476.1 376.1
Affiliates................................. 30.2 30.2 0.7 0.0 0.0 0.1 30.9 30.1
Corporate bonds............................ 2,496.2 2,264.0 141.7 24.6 16.4 99.6 2,621.5 2,189.0
-------- -------- ------ ----- ----- ------ -------- --------
Total bonds............................ 3,769.9 3,568.5 199.6 35.9 18.9 166.4 3,950.6 3,438.0
Redeemable preferred stock................. 17.2 19.5 0.3 0.2 0.5 0.7 17.0 19.0
Commercial paper........................... 248.7 135.2 0.0 0.0 0.0 0.0 248.7 135.2
-------- -------- ------ ----- ----- ------ -------- --------
Total...................................... $4,035.8 $3,723.2 $199.9 $36.1 $19.4 $167.1 $4,216.3 $3,592.2
======== ======== ====== ===== ===== ====== ======== ========
</TABLE>
Amortized cost represents the principal amount of fixed income securities
adjusted by unamortized premium or discount and reduced by writedowns of $33.5
million and $40.5 million for bonds and $0.8 million and $0.3 million for
preferred stock at December 31, 1995 and 1994, respectively, as required by the
NAIC for securities which are in or near default.
At December 31, 1995, 79% of the Company's Collateralized Mortgage
Obligation (CMO) portfolio was held in U.S. government and government
agency-backed securities. The remainder of the CMO portfolio consisted of NAIC
category 1 investment grade securities.
Maturities of Fixed Income Securities:
The amortized cost of fixed income securities and estimated fair value by
maturity date (excluding scheduled sinking funds) as of December 31, 1995 is the
following:
<TABLE>
<CAPTION>
ESTIMATED
AMORTIZED FAIR
COST VALUE
-------- --------
(IN MILLIONS)
<S> <C> <C>
Due in one year or less................................. $ 335.4 $ 339.7
Due after one year through five years................... 795.0 819.6
Due after five years through ten years.................. 1,817.7 1,904.0
Due after ten years..................................... 1,087.7 1,153.0
-------- --------
$4,035.8 $4,216.3
======== ========
</TABLE>
F-30
<PAGE> 80
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
10. FIXED INCOME SECURITIES: -- (CONTINUED)
Expected maturities may differ from contractual maturities because
borrowers may have the right to call or prepay obligations with or without call
or prepayment penalties.
Proceeds from sales of investments in debt securities during 1995 and 1994
were $383.5 million and $331.9 million, respectively. Gross gains of $10.2
million in 1995 and $19.5 million in 1994, and gross losses of $14.5 million in
1995 and $10.9 million in 1994 were realized on these sales.
11. OFF-BALANCE SHEET RISK AND CONCENTRATION OF CREDIT RISK:
Financial Instruments with Off-Balance Sheet Risk:
In 1992, the Company entered into an agreement with a bank to lend
securities to approved borrowers. There were no loaned securities as of December
31, 1995 or 1994.
Concentration of Credit Risk:
At December 31, 1995 and 1994, the Company had no single investment
(excluding U.S. Treasury securities) exceeding 2.9% and 2.1%, respectively, of
total general account assets.
The bond portfolio is diversified by industry type. The industries that
comprise more than 10% of the carrying value of the bond portfolio at December
31, 1995 are Financial Services of $555 million (14.7%), Government and Agencies
of $507 million (13.5%), Public Utilities of $449 million (11.9%), Other
Manufacturing of $400 million (10.6%), and Consumer goods and services of $381
million (10.1%). At December 31, 1994, the industries comprising in excess of
10% of the bond portfolio carrying value were Government and Agencies of $677
million (18.9%), Financial Services of $477 million (13.4%), and Consumer goods
and services of $356 million (10.0%).
The Company holds below investment grade bonds of $227 million at December
31, 1995. Below investment grade bonds are defined as those securities rated in
categories 3 through 6 by the NAIC, which are approximately equivalent to bonds
rated below BBB by rating agencies. These bonds consist mostly of privately
issued bonds, which are monitored by the Company through extensive internal
analysis of the financial condition of the borrowers, and which include
protective debt covenants. Of these bonds, $131 million are in category 3, which
is considered to be medium quality by the NAIC. At December 31, 1994, the
Company's investments in below investment grade bonds were $231 million.
The Company has significant investments in commercial and agricultural
mortgage loans and real estate (including joint ventures and partnerships).
Approximately 53.5% of the Company's real estate and mortgage portfolio is
invested in office building properties. The locations of property
collateralizing mortgage loans and real estate investment carrying values (in
millions) at December 31, 1995 and 1994 are as follows:
<TABLE>
<CAPTION>
1995 1994
---------------- ----------------
GEOGRAPHIC REGION $ % $ %
- ------------------------------------------------------ ------ ----- ------ -----
<S> <C> <C> <C> <C>
Southeast............................................. $ 982 26.4 $1,133 28.0
West.................................................. 718... 19.3 742 18.3
Northeast............................................. 647 17.4 669 16.5
Mountain.............................................. 582 15.7 584 14.5
Southwest............................................. 393 10.6 463 11.5
Midwest............................................... 392 10.6 453 11.2
------ ----- ------ -----
Total............................................... $3,714 100.0% $4,044 100.0%
====== ===== ====== =====
</TABLE>
F-31
<PAGE> 81
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
11. OFF-BALANCE SHEET RISK AND CONCENTRATION OF CREDIT RISK: -- (CONTINUED)
The states with the largest concentrations of mortgage loans and real
estate investments at December 31, 1995 are: California, $539 million (14.5%);
New York, $329 million (8.9%); Texas, $325 million (8.8%); Georgia, $316 million
(8.5%); Arizona, $279 million (7.5%); Illinois, $246 million (6.6%); Florida,
$239 million (6.4%); Colorado, $195 million (5.3%).
12. MORTGAGE LOANS, REAL ESTATE AND OTHER INVESTED ASSETS:
The Company invests in mortgage loans collateralized by commercial and
agricultural real estate. Such mortgage loans consist primarily of first
mortgage liens on completed income producing properties. As of December 31,
1995, $395 million of mortgage loans have terms that require amortization, and
$1.2 billion of loans require partial amortization or are non-amortizing.
Mortgage loans delinquent over 90 days or in process of foreclosure were $48
million at December 31, 1995 and $33 million at December 31, 1994. Properties
acquired through foreclosure during the year amounted to $47 million and $108
million in 1995 and 1994, respectively.
The Company has performing restructured mortgage loans of $250 million as
of December 31, 1995 and $237 million as of December 31, 1994. The new terms
typically defer a portion of contract interest payments to future periods.
Interest is recognized in income based on the modified rate of the loan.
Deferred interest, which is the difference between the original contractual rate
and the modified rate, is excluded from income. Gross interest income on
restructured loans that would have been recorded in accordance with the loans'
original terms was approximately $24 million in 1995 and $23 million in 1994.
Gross interest income recognized in net income for the period from these loans
was approximately $17 million in 1995 and $16 million in 1994. There are no
commitments to lend additional funds to any debtor involved in a restructuring.
Other invested assets of $353 million and $339 million at December 31, 1995
and 1994, respectively, include, primarily, investments in real estate joint
ventures and limited partnerships.
13. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS:
The following table presents the carrying amounts and estimated fair values
of the Company's financial instruments at December 31, 1995. The calculations of
estimated fair values involve considerable judgement. Accordingly, these
estimates of fair value are not necessarily indicative of the values that could
be negotiated in an actual sale.
<TABLE>
<CAPTION>
ESTIMATED
CARRYING FAIR
AMOUNT VALUE
-------- ----------
(IN MILLIONS)
<S> <C> <C>
ASSETS:
Fixed Income Securities................................. 3,769.9 3,950.6
Separate Account Assets................................. 1,530.2 1,530.9
LIABILITIES:
Investment-type contracts............................... 1,745.0 1,747.5
Separate Account Liabilities............................ 1,521.0 1,520.5
</TABLE>
The estimated fair values of cash, short term investments, equity
securities, mortgage loans and short term notes payable approximate their
carrying amounts.
F-32
<PAGE> 82
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
13. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS: -- (CONTINUED)
The methods and assumptions utilized in estimating these fair values of
financial instruments are summarized as follows:
Fixed Income Securities (See Note 10)
The estimated fair values of fixed income securities are based upon quoted
market prices, where available. The fair values of fixed income securities not
actively traded and other non-publicly traded securities are estimated using
values obtained from independent pricing services or, in the case of private
placements, by discounting expected future cash flows using a current market
interest rate commensurate with the credit quality and term of the investments.
Mortgage Loans
The fair value of mortgage loans is estimated by discounting expected
future cash flows, using current interest rates for similar loans to borrowers
with similar credit risk. Loans with similar characteristics are aggregated for
purposes of the calculations.
Policy Loans
Policy loans are an integral component of insurance contracts and have no
maturity dates. Management has determined that it is not practicable to estimate
the fair value of policy loans.
Separate Account
The estimated fair value of separate account assets and liabilities is
based upon estimates of values available upon full surrender.
Investment-type contract liabilities
The fair values of the Company's liabilities under investment-type
contracts are estimated by discounting expected cash outflows using interest
rates currently offered for similar contracts with maturities consistent with
those remaining for the contracts being valued, where appropriate. The fair
values of other investment-type contracts are based on estimates of the value of
payments available upon full surrender.
F-33
<PAGE> 83
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
14. RESERVES:
The withdrawal characteristics of the Company's annuity actuarial reserves
and deposit liabilities as of December 31, 1995 were as follows:
<TABLE>
<CAPTION>
RESERVES
-------------
<S> <C>
(IN MILLIONS)
Not subject to discretionary withdrawal provision................ $ 1,190
SUBJECT TO DISCRETIONARY WITHDRAWAL -- WITH ADJUSTMENT:
- with market value adjustment.................................. 406
- at book value less surrender charges.......................... 179
- at market value............................................... 825
------
Subtotal.................................................... 1,410
SUBJECT TO DISCRETIONARY WITHDRAWAL -- WITHOUT ADJUSTMENT:
- at book value (minimal or no charge or adjustment)............ 1,001
------
Total annuity actuarial reserves and deposit liabilities
(gross)........................................................ 3,601
Less: Reinsurance........................................... 223
------
Total annuity actuarial reserves and deposit liabilities (net)... $ 3,378
======
</TABLE>
The amounts shown above are included in the Company's balance sheet as life
insurance and annuity reserves ($1.9 billion) and separate account liabilities
($1.5 billion).
15. REINSURANCE:
Life insurance business is ceded on a yearly renewable term basis under
various reinsurance contracts. The Company's practice is to retain no more than
$3 million of risk on any one person for individual products and $4.5 million
for last survivor products. The total amount of reinsured life insurance in
force on this basis was $8.2 billion and $8.9 billion at December 31, 1995 and
1994, respectively. Premiums ceded under these contracts were $34.3 million and
$33.0 million; benefit payments recovered were approximately $30.2 million and
$23.3 million; policy reserve credits recorded were $30.2 million and $28.9
million; and recoverable amounts on paid and unpaid losses were $7.3 million and
$8.2 million in 1995 and 1994, respectively.
The Company reinsured certain whole life contracts issued from 1985 through
1991 under an agreement which combines the modified coinsurance and the
coinsurance bases. This contract was amended effective December 31, 1995. The
policies previously reinsured were recaptured and replaced by whole life and
endowment policies for issue years through 1974. The amended agreement is a
combination of coinsurance and modified coinsurance. Reserves subject to this
agreement were $963 million in 1995 and $295.9 million in 1994, for which the
Company recorded policy reserve credits of $44 million and $45.0 million,
respectively. Premiums ceded under this contract were $57.5 million in 1995 and
$58.1 million in 1994.
The Company also reinsured certain whole life contracts issued from 1985
through 1988 under an agreement which combines the modified coinsurance and the
coinsurance bases. This contract was amended effective December 31, 1995. The
policies previously reinsured were recaptured and replaced by whole life and
endowment policies for issue years through 1974. The amended agreement is a
combination of coinsurance and modified coinsurance. Reserves subject to this
agreement were $785 million in 1995 and $325.0 million in 1994, for which the
Company recorded policy reserve credits of $34.2 million and $55.0 million in
1995 and 1994, respectively. The Company also recorded a dividend liability
credit of $16.0 million in 1995. Premiums ceded under this contract were $51
million in 1995 and $51.1 million in 1994.
F-34
<PAGE> 84
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
15. REINSURANCE: -- (CONTINUED)
The Company has entered into coinsurance agreements with other insurers
related to a portion of its disability income, extended term insurance,
guaranteed interest contract and long-term disability claim liabilities. Under
the terms of these agreements at December 31, 1995 and 1994, ceded premiums were
$43.7 million and $41.1 million, respectively. The total ceded reserves and
claims liabilities under these agreements were $241.5 million and $244 million
at December 31, 1995 and 1994, respectively.
During 1994, the Company entered into an agreement to reinsure
approximately 50% of its block of paid-up life insurance policies. Pursuant to
this agreement, the Company received a ceding commission of $12.7 million from
the reinsurer in 1994. The Company transferred assets equal to the total
liabilities ceded into a segregated portfolio within its general account to
secure benefit payments from the reinsurer and established a funds withheld
liability to the reinsurer for a corresponding amount. Reserves ceded under this
agreement were $103.5 and $111.4 million at December 31, 1995 and 1994,
respectively.
The Company is contingently liable with respect to ceded insurance should
any reinsurer be unable to meet its obligations under these agreements.
16. NOTES PAYABLE:
During 1995, the Company transferred $434.3 million of performing mortgage
loans to a trust which qualifies as a REMIC (Real Estate Mortgage Investment
Conduit) under Section 860 of the Internal Revenue Code. The trust issued two
classes of floating rate notes in equal principal amounts of $43.4 million,
totaling $86.8 million to third party investors, using the transferred mortgages
as collateral. The interest rate on these notes ranged from 6% to 6.19% during
1995. The proceeds of the assets of the trust will be the sole source of
payments on the notes. The Company has not guaranteed these notes or the
mortgage loans held by the trust. The cash flow from the collateralized
mortgages will be used to retire the debt over an estimated 24 month payment
schedule. The actual date on which the principal amount of the notes may be paid
in full could be substantially earlier or later based upon performance of these
mortgages, among other factors. The Company has accounted for this transaction
by consolidating the trust's mortgages and debt. The Insurance Department of the
State of New York has the authority to direct payment in full of the aggregate
outstanding principal balance of the notes and accrued interest at any time
prior to the maturity or payment in full of the outstanding notes.
17. SURPLUS NOTES:
In 1994, the Company completed the sale of $125 million of 30-year Surplus
Notes which generated net proceeds of $70 million after a discount of 42.146%
from the principal amount payable at maturity and issuance expenses of
approximately $2.3 million. The $70 million of net proceeds has increased the
Company's surplus by a corresponding amount. Following the discount period,
interest will begin to accrue on August 15, 1999; thereafter, interest on the
Notes is scheduled to be paid on February 15 and August 15 of each year,
commencing February 15, 2000, at a rate of 11.25% per annum. Each accrual and
payment of interest on the Notes may be made only with the prior approval of the
New York State Superintendent of Insurance. Accordingly, the Company has made no
charge against its surplus for the accretion of discount on the Notes as
authorized by the New York State Insurance Department.
18. ACCOUNTING DEVELOPMENTS:
During 1993, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 40, "Applicability of Generally Accepted Accounting
Principles to Mutual Life Insurance and Other Enterprises." The Interpretation
requires mutual life insurance companies which issue financial statements
described as prepared "in conformity with generally accepted accounting
principles" to apply all applicable authoritative accounting pronouncements in
preparing those statements. The provisions of this Interpretation
F-35
<PAGE> 85
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
18. ACCOUNTING DEVELOPMENTS: -- (CONTINUED)
are effective for fiscal years beginning after December 15, 1995. The
Interpretation indicates that financial statements of mutual life insurance
companies which are prepared on the basis of statutory accounting practices may
no longer receive an unqualified audit opinion stating that the financial
statements have been prepared in accordance with GAAP.
In January 1995, the FASB issued Statement of Financial Accounting
Standards No. 120, "Accounting and Reporting by Mutual Life Insurance
Enterprises and by Insurance Enterprises for Certain Long-Duration Participating
Contracts." This Statement extends the requirements of FASB Statements No. 60,
"Accounting and Reporting by Insurance Enterprises", No. 97, "Accounting and
Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for
Realized Gains and Losses from the Sale of Investments", and No. 113,
"Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration
Contracts", to mutual life insurance enterprises. In 1995, the AICPA established
accounting for certain participating life insurance contracts of mutual life
insurance enterprises in its Statement of Position 95-1, "Accounting for Certain
Insurance Activities of Mutual life Insurance Enterprises". FASB Statement No.
120 and the AICPA Statement of Position are effective for fiscal years beginning
after December 15, 1995.
F-36
<PAGE> 86
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA
FOR THE YEAR ENDED DECEMBER 31, 1995
(AMOUNTS IN $ THOUSANDS)
The following is a summary of certain financial data from the Company's
Annual Statement included in other exhibits and schedules subjected to audit
procedures by independent accountants and utilized by the Company's actuaries in
the determination of reserves.
<TABLE>
<S> <C>
INVESTMENT INCOME EARNED
U.S. Government Bonds........................................ 18,549
Other bonds (unaffiliated)................................... 275,209
Bonds of affiliates.......................................... 2,486
Preferred stocks (unaffiliated).............................. 1,218
Preferred stocks of affiliates............................... 0
Common stocks (unaffiliated)................................. 44,660
Common stocks of affiliates.................................. 92
Mortgage loans............................................... 146,445
Real estate.................................................. 307,462
Premium notes, policy loans and liens........................ 79,149
Collateral loans............................................. 0
Cash on hand and on deposit.................................. 361
Short-term investments....................................... 11,286
Other Invested Assets........................................ 21,401
Derivative Instruments....................................... (532)
Aggregate write-ins for investment income.................... 3,038
---------
Gross investment income................................... 910,824
=========
REAL ESTATE OWNED -- BOOK VALUE LESS ENCUMBRANCES.............. 1,739,890
MORTGAGE LOANS -- BOOK VALUE:
Farm mortgages............................................... 430,141
Residential mortgages........................................ 3,940
Commercial mortgages......................................... 1,203,521
---------
Total mortgage loans...................................... 1,637,602
=========
MORTGAGE LOANS BY STANDING -- BOOK VALUE:
Good standing................................................ 1,339,365
Good standing with restructured terms........................ 249,916
Interest overdue more than three months, not in
foreclosure............................................... 28,493
Foreclosure in process....................................... 19,828
OTHER LONG TERM ASSETS -- STATEMENT VALUE...................... 1,525,913
COLLATERAL LOANS............................................... 0
BONDS AND STOCKS OF PARENTS, SUBSIDIARIES AND
AFFILIATES -- BOOK VALUE
Bonds........................................................ 30,215
Preferred Stocks............................................. 0
Common Stocks................................................ 238,649
</TABLE>
F-37
<PAGE> 87
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA -- (CONTINUED)
<TABLE>
<S> <C>
BONDS AND SHORT-TERM INVESTMENTS BY CLASS AND MATURITY:
BONDS BY MATURITY -- STATEMENT VALUE
Due within one year or less............................... 433,460
Over 1 year through 5 years............................... 1,094,125
Over 5 years through 10 years............................. 1,969,495
Over 10 years through 20 years............................ 358,164
Over 20 years............................................. 163,332
---------
Total by Maturity....................................... 4,018,576
=========
BONDS BY CLASS -- STATEMENT VALUE
Class 1................................................... 2,231,202
Class 2................................................... 1,560,624
Class 3................................................... 131,219
Class 4................................................... 54,414
Class 5................................................... 7,328
Class 6................................................... 33,789
---------
Total by Class.......................................... 4,018,576
=========
TOTAL BONDS PUBLICLY TRADED.................................... 1,777,626
TOTAL BONDS PRIVATELY PLACED................................... 2,240,950
PREFERRED STOCKS -- STATEMENT VALUE............................ 17,173
COMMON STOCKS -- MARKET VALUE.................................. 400,041
SHORT TERM INVESTMENTS -- BOOK VALUE........................... 248,671
FINANCIAL OPTIONS OWNED -- STATEMENT VALUE..................... 0
FINANCIAL OPTIONS WRITTEN AND IN FORCE -- STATEMENT VALUE...... 0
FINANCIAL FUTURES CONTRACTS OPEN -- CURRENT PRICE.............. 0
CASH ON HAND & ON DEPOSIT...................................... 17,199
LIFE INSURANCE IN FORCE:
Industrial................................................... 0
Ordinary..................................................... 68,142,226
Credit Life.................................................. 0
Group Life................................................... 6,579,728
AMOUNT OF ACCIDENTAL DEATH INSURANCE IN FORCE UNDER ORDINARY
POLICIES..................................................... 4,185,362
LIFE INSURANCE POLICIES WITH DISABILITY PROVISIONS IN FORCE:
Industrial................................................... 0
Ordinary..................................................... 38,187,825
Credit Life.................................................. 0
Group Life................................................... 147,300
</TABLE>
F-38
<PAGE> 88
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA -- (CONTINUED)
<TABLE>
<S> <C>
SUPPLEMENTARY CONTRACTS IN FORCE:
Ordinary -- Not Involving Life Contingencies
Amount on Deposit......................................... 187,459
Income Payable............................................ 1,828
Ordinary -- Involving Life Contingencies
Income Payable............................................ 6,179
Group -- Not Involving Life Contingencies
Amount on Deposit......................................... 4,038
Income Payable............................................ 541
Group -- Involving Life Contingencies
Income Payable............................................ 7
ANNUITIES:
Ordinary
Immediate -- Amount of Income Payable..................... 7,165
Deferred -- Fully Paid Account Balance.................... 20,534
Deferred -- Not Fully Paid -- Account Balance............. 10,342
Group
Amount of Income Payable.................................. 27,650
Fully Paid Account Balance................................ 35,945
Not Fully Paid -- Account Balance......................... 0
ACCIDENT AND HEALTH INSURANCE -- PREMIUMS IN FORCE:
Ordinary..................................................... 79,012
Group........................................................ 4,217
Credit....................................................... 0
DEPOSIT FUNDS AND DIVIDEND ACCUMULATIONS:
Deposit Funds -- Account Balance.......................... 931,196
Dividend Accumulations -- Account Balance................. 305,758
</TABLE>
F-39
<PAGE> 89
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA -- (CONTINUED)
<TABLE>
<S> <C>
CLAIM PAYMENTS 1995:
Group Accident and Health Year -- Ended December 31, 1995
1995...................................................... 13,363
1994...................................................... 4,112
1993...................................................... 4,244
Other Accident & Health
1995...................................................... 2,471
1994...................................................... 4,056
1993...................................................... 8,430
Other Coverages that use developmental methods to calculate
claim reserves
1995...................................................... 0
1994...................................................... 0
1993...................................................... 0
</TABLE>
F-40
<PAGE> 90
APPENDIX A
DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
<TABLE>
<CAPTION>
ATTAINED AGE APPLICABLE PERCENTAGE
- -------------------------------------------------------------------------------------------------
<S> <C>
40 and Under................................................................ 150%
41.......................................................................... 143
42.......................................................................... 136
43.......................................................................... 129
44.......................................................................... 122
45.......................................................................... 115
46.......................................................................... 109
47.......................................................................... 103
48.......................................................................... 97
49.......................................................................... 91
50.......................................................................... 85
51.......................................................................... 78
52.......................................................................... 71
53.......................................................................... 64
54.......................................................................... 57
55.......................................................................... 50
56.......................................................................... 46
57.......................................................................... 42
58.......................................................................... 38
59.......................................................................... 34
60.......................................................................... 30
61.......................................................................... 28
62.......................................................................... 26
63.......................................................................... 24
64.......................................................................... 22
65.......................................................................... 20
66.......................................................................... 19
67.......................................................................... 18
68.......................................................................... 17
69.......................................................................... 16
70.......................................................................... 15
71.......................................................................... 13
72.......................................................................... 11
73.......................................................................... 09
74.......................................................................... 07
75-90....................................................................... 05
91.......................................................................... 04
92.......................................................................... 03
93.......................................................................... 02
94.......................................................................... 01
95.......................................................................... 00
</TABLE>
A-1
<PAGE> 91
APPENDIX B
ILLUSTRATIONS OF DEATH BENEFITS, ACCOUNT VALUES AND
SURRENDER VALUES, AND ACCUMULATED PREMIUMS
The following tables illustrate how the key financial elements of the
Policy work, specifically, how the death benefits, Fund Values and Surrender
Values could vary over an extended period of time. In addition, each table
compares these values with premiums paid accumulated with interest.
The Policies illustrated include the following:
<TABLE>
<CAPTION>
BENEFIT SPECIFIED SEE
SEX AGE SMOKER OPTION AMOUNT PAGE
- ------- --- --------------------- ------- -------- -----
<S> <C> <C> <C> <C> <C>
Male 45 Preferred Non-smoker 1 $200,000 B- 4
Female 45 Preferred Non-smoker 1 $200,000 B-14
Male 45 Standard Smoker 1 $200,000 B-24
Male 45 Preferred Non-smoker 2 $200,000 B-34
Male 35 Preferred Non-smoker 1 $200,000 B-44
Male 55 Preferred Non-smoker 1 $200,000 B-54
</TABLE>
The tables show how death benefits, Fund Values and Surrender Values of a
hypothetical Policy could vary over an extended period of time if the
Subaccounts of the Variable Account had constant hypothetical gross annual
investment returns of 0%, 6% or 12% over the periods indicated in each table.
The values will differ from those shown in the tables if the annual investment
returns are not absolutely constant. That is, the death benefits, Fund Values
and Surrender Values will be different if the returns averaged 0%, 6% or 12%
over a period of years but went above or below those figures in individual
Policy years. These illustrations assume that no Policy Loan has been taken. The
amounts shown would differ if unisex rates were used.
The amounts shown for death benefits, Fund Values and Surrender Values
sections reflect the fact the net investment return on the Policy is lower than
the gross investment return on the Subaccounts of the Variable Account. This
results from the charges levied against the Subaccounts of the Variable Account
(i.e., the mortality and expense risk charge) as well as the premium loads,
administrative charges and Fund Charges. The difference between the Fund Value
and the Surrender Value in the first 14 years is the Fund Charge.
The tables illustrate cost of insurance and expense charges at both current
rates (which are described under Cost Of Insurance, page 28.) and at the maximum
rates guaranteed in the Policies. The amounts shown at the end of each Policy
year reflect a daily charge against the Funds as well as those assessed against
the Subaccounts. These charges include the charge against the Subaccounts for
mortality and expense risks and the effect on each Subaccount's investment
experience of the charge to Portfolio assets for investment management and
direct expenses. The mortality and expense risk fee is .75% annually. The daily
charge for mortality and expense risks has been designed to effectively decrease
by 0.50% on an annualized basis in years 11 and later. This decrease is
guaranteed and is accomplished by increasing the separate account subaccount
fund value on each monthly anniversary after the 10th policy anniversary. The
amount of this increase is determined by multiplying the separate account
subaccount fund value by 0.04167%, which is equivalent to 0.5% on an annual
basis.
The tables also reflect a deduction for a daily investment advisory fee and
for other expenses of the Portfolio at a rate equivalent to an annual rate of
0.75% of the aggregate average daily net assets of the Portfolio. This
hypothetical rate is representative of the average maximum investment advisory
fee and other expenses of the Portfolios applicable to the Subaccounts of the
Variable Account. Actual fees and other expenses vary by Portfolio and may be
subject to agreements by the sponsor to waive or otherwise reimburse each
Portfolio for operating expenses which exceed certain limits. There can be no
assurance that the expense reimbursement arrangements will continue in the
future, and any unreimbursed expenses would be reflected in the values included
on the tables.
B-1
<PAGE> 92
The effect of these investment management, direct expenses and mortality
and expense risk charges on a 0% gross rate of return would result in a net rate
of return of -1.4916%, on 5% it would be 3.4711%, and on 10% it would be
8.4338%.
The tables assume the deduction of charges including administrative and
sales charges. For each age, there are tables for death benefit Options I and II
and each option is illustrated using current and guaranteed policy cost factors.
The tables reflect the fact that the Company does not currently make any charge
against the Variable Account for state or federal taxes. If such a charge is
made in the future, it will take a higher rate of return to produce after-tax
returns of 0%, 6% or 12%.
The Company will furnish, upon request, a comparable illustration based on
the age and sex of the proposed Insured, standard Premium Class assumptions and
an initial Specified Amount and Scheduled Premium Payments of the applicant's
choice. If a Policy is purchased, an individualized illustration will be
delivered reflecting the Scheduled Premium Payment chosen and the Insured's
actual risk class. After issuance, the Company will provide upon request an
illustration of future Policy benefits based on both guaranteed and current cost
factor assumptions and actual Account Value.
The following is the page of supplemental footnotes to each of the flexible
premium variable life to age 95 standard ledger statements which follow and
which begin on pages B-4, B-6, B-10, B-14, B-16, B-20, B-24, B-26, B-30, B-34,
B-36, B-40, B-44, B-46, B-50, B-54, B-56 and B-58.
B-2
<PAGE> 93
STANDARD LEDGER STATEMENT--SUPPLEMENTAL FOOTNOTE PAGE
MONY EQUITYMASTER
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
This Policy has been tested for the possibility of classification as a
Modified Endowment. This test is not a guarantee that a policy will not be
classified as a Modified Endowment.
This illustration has been checked against Federal Tax Laws relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or a change in
death benefit Option II to death benefit Option I and/or surrenders occurring in
the first 15 years may cause a taxable event. In addition, if the Policy is
defined as a Modified Endowment Contract, a loan, surrender, or assignment or
pledge (unless such assignment or pledge is defined and the maximum death
benefit is not in excess of $25,000) may be considered a Taxable Distribution
and a ten percent penalty may be added to any tax on the Distribution. Please
consult your tax advisor for advice.
Values shown on this illustration are based on a Policy owner tax bracket
of 31%.
Premiums are assumed to be paid at the beginning of the payment period.
Policy values and ages are shown as of the end of the Policy year and reflect
the effect of all loans and surrenders. The benefit payable at death, Fund Value
and Value Upon Surrender will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The Policy's Value On Surrender is net of any applicable surrender charge.
Premiums less the following deductions are added to the Fund Value. (1) A
premium tax charge of .8% of gross premiums in all Policy years. (2) A sales
charge on the gross premiums. The sales charges equal 4% in Policy years 1-10,
2% in Policy years 11-20, and 0% in Policy years 21 and later. (3) A DAC tax
charge of 1.25% of gross premiums in all Policy years.
Those columns assuming Guaranteed Charges use the current Monthly Mortality
Charges, current Monthly Administrative Charges, current Charges for Mortality
and Expense Risks, current Charges for Rider Benefits if any, and current
Premium Sales Charge ("Current Charges") for the first year as well as the
Assumed Hypothetical Gross Annual Investment Return indicated. Thereafter these
columns use Guaranteed Monthly Mortality Charges, current Monthly Administrative
Charges, Guaranteed Charges for Mortality and Expense Risks, Guaranteed Charges
for Rider Benefits if any, current Maximum Premium Sales Charge, and the Assumed
Hypothetical Gross Annual Investment Return indicated. Those columns assuming
Current Charges are based upon "Current Charges" and the Assumed Hypothetical
Gross Investment Return indicated.
The Current Charges are declared by The Mutual Life Insurance Company of
New York, are guaranteed for the first Policy year, and apply to policies issued
as of the Preparation Date shown. After the first Policy year, Current Charges
are not guaranteed, and may be changed at the discretion of The Mutual Life
Insurance Company of New York.
The difference between the Fund Value and the Value Upon Surrender is a
Fund Charge. A Fund Charge will apply during the first fourteen years from issue
or following a specified amount increase if the Policy is given up for its Value
Upon Surrender or is terminated, or if the specified amount is reduced. Any
applicable fund charge will be deducted from the Fund Value. Whenever there is a
partial surrender, the surrender amount and the surrender charge ($25.00 or 2%
of the amount surrendered, if less) could be deducted from the benefit payable
at death and will be deducted from the Fund Value and the Value Upon Surrender.
A Policy loan will have a permanent effect on benefits under this Policy.
Loan interest at an annual rate of 5.4% will be charged in advance (equivalent
to 5.75% in arrears). Amounts borrowed will be deposited in a loan account and
earn interest at an annual rate of 5.0%. This rate is determined by subtracting
a hold back margin for profit and expenses of .75% from the loan rate. After the
tenth Policy anniversary the annual interest rate applicable to the loan account
will be .5% higher based on a reduction in the hold back margin for profit and
expenses of .5%. This reduction is guaranteed and will be credited only when
interest in excess of the 5% guaranteed rate is being applied to amounts
allocated to the Guaranteed Interest Account for policies of the same type which
have not reached their tenth anniversary. Adverse tax consequences could occur
if a Policy subject to loans is surrendered or permitted to lapse.
Right to Return Policy -- This Policy may be returned to The Mutual Life
Insurance Company of New York during the period that starts with the Policy's
delivery and ends on the latest of: (a) 10 days after delivery of the Policy to
the rightsholder; (b) 45 days after part 1 of the application is signed; (c) 10
days after we mail or deliver a notice of withdrawal right. The Policy may be
returned by delivery or mail, along with a written notice to cancel, to our home
office, a local office, or to the agent who sold it. We will then promptly
refund any premiums paid.
B-3
<PAGE> 94
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 0.00%
(-1.49%
0.00% (-1.49% NET) 0.00% (-1.49% NET) NET)
--------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 351 2,154 200,000 351 2,154 200,000 351
2 47 3,088 0 2,140 4,205 200,000 2,140 4,205 200,000 2,442
3 48 3,088 0 3,025 6,186 200,000 3,025 6,186 200,000 3,577
4 49 3,088 0 4,916 8,077 200,000 4,916 8,077 200,000 5,667
5 50 3,088 0 6,718 9,880 200,000 6,718 9,880 200,000 7,664
6 51 3,088 0 8,751 11,597 200,000 8,751 11,597 200,000 9,843
7 52 3,088 0 10,678 13,208 200,000 10,678 13,208 200,000 11,959
8 53 3,088 0 12,502 14,715 200,000 12,502 14,715 200,000 14,011
9 54 3,088 0 14,202 16,099 200,000 14,202 16,099 200,000 16,023
10 55 3,088 0 15,782 17,363 200,000 15,782 17,363 200,000 17,975
11 56 3,088 0 17,381 18,646 200,000 17,381 18,646 200,000 19,953
12 57 3,088 0 18,827 19,775 200,000 18,827 19,775 200,000 21,755
13 58 3,088 0 20,121 20,754 200,000 20,121 20,754 200,000 23,467
14 59 3,088 0 21,245 21,561 200,000 21,245 21,561 200,000 25,114
15 60 3,088 0 22,179 22,179 200,000 22,179 22,179 200,000 26,715
16 61 3,088 0 22,587 22,587 200,000 22,587 22,587 200,000 27,936
17 62 3,088 0 22,763 22,763 200,000 22,763 22,763 200,000 29,012
18 63 3,088 0 22,708 22,708 200,000 22,708 22,708 200,000 29,904
19 64 3,088 0 22,336 22,336 200,000 22,336 22,336 200,000 30,675
20 65 3,088 0 21,621 21,621 200,000 21,621 21,621 200,000 31,327
21 66 3,088 0 20,579 20,579 200,000 20,579 20,579 200,000 31,881
22 67 3,088 0 19,116 19,116 200,000 19,116 19,116 200,000 32,276
23 68 3,088 0 17,176 17,176 200,000 17,176 17,176 200,000 32,474
24 69 3,088 0 14,699 14,699 200,000 14,699 14,699 200,000 32,413
25 70 3,088 0 11,639 11,639 200,000 11,639 11,639 200,000 32,033
26 71 3,088 0 7,872 7,872 200,000 7,872 7,872 200,000 31,328
27 72 3,088 0 3,146 3,146 200,000 3,146 3,146 200,000 30,213
28 73 3,088 0 0 0 0 0 0 0 28,718
29 74 3,088 0 0 0 0 0 0 0 26,706
30 75 3,088 0 0 0 0 0 0 0 24,117
31 76 3,088 0 0 0 0 0 0 0 20,943
32 77 3,088 0 0 0 0 0 0 0 16,998
33 78 3,088 0 0 0 0 0 0 0 12,120
34 79 3,088 0 0 0 0 0 0 0 5,335
<CAPTION>
CURRENT CHARGES
--------------------
0.00% (-1.49% NET)
--------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------ --------
<S> <C> <C>
1 2,154 200,000
2 4,507 200,000
3 6,738 200,000
4 8,828 200,000
5 10,826 200,000
6 12,689 200,000
7 14,488 200,000
8 16,224 200,000
9 17,920 200,000
10 19,556 200,000
11 21,218 200,000
12 22,703 200,000
13 24,100 200,000
14 25,430 200,000
15 26,715 200,000
16 27,936 200,000
17 29,012 200,000
18 29,904 200,000
19 30,675 200,000
20 31,327 200,000
21 31,881 200,000
22 32,276 200,000
23 32,474 200,000
24 32,413 200,000
25 32,033 200,000
26 31,328 200,000
27 30,213 200,000
28 28,718 200,000
29 26,706 200,000
30 24,117 200,000
31 20,943 200,000
32 16,998 200,000
33 12,120 200,000
34 5,335 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 73. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 80.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-4
<PAGE> 95
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
---------------------------------
0.00% (-1.49% NET)
---------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 351 2,154 200,000
2 47 3,088 0 0 0 2,442 4,507 200,000
3 48 3,088 0 0 0 3,577 6,738 200,000
4 49 3,088 0 0 0 5,667 8,828 200,000
5 50 3,088 0 0 0 7,664 10,826 200,000
6 51 3,088 0 0 0 9,843 12,689 200,000
7 52 3,088 0 0 0 11,959 14,488 200,000
8 53 3,088 0 0 0 14,011 16,224 200,000
9 54 3,088 0 0 0 16,023 17,920 200,000
10 55 3,088 0 0 0 17,975 19,556 200,000
11 56 3,088 0 0 0 19,953 21,218 200,000
12 57 3,088 0 0 0 21,755 22,703 200,000
13 58 3,088 0 0 0 23,467 24,100 200,000
14 59 3,088 0 0 0 25,114 25,430 200,000
15 60 3,088 0 0 0 26,715 26,715 200,000
16 61 3,088 0 0 0 27,936 27,936 200,000
17 62 3,088 0 0 0 29,012 29,012 200,000
18 63 3,088 0 0 0 29,904 29,904 200,000
19 64 3,088 0 0 0 30,675 30,675 200,000
20 65 3,088 0 0 0 31,327 31,327 200,000
21 66 3,088 0 0 0 31,881 31,881 200,000
22 67 3,088 0 0 0 32,276 32,276 200,000
23 68 3,088 0 0 0 32,474 32,474 200,000
24 69 3,088 0 0 0 32,413 32,413 200,000
25 70 3,088 0 0 0 32,033 32,033 200,000
26 71 3,088 0 0 0 31,328 31,328 200,000
27 72 3,088 0 0 0 30,213 30,213 200,000
28 73 3,088 0 0 0 28,718 28,718 200,000
29 74 3,088 0 0 0 26,706 26,706 200,000
30 75 3,088 0 0 0 24,117 24,117 200,000
31 76 3,088 0 0 0 20,943 20,943 200,000
32 77 3,088 0 0 0 16,998 16,998 200,000
33 78 3,088 0 0 0 12,120 12,120 200,000
34 79 3,088 0 0 0 5,335 5,335 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 73. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 80.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made by The Mutual Life Insurance Company of New York, MONY Series Fund
or Enterprise Accumulation Trust that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-5
<PAGE> 96
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 6.00%
(4.46%
0.00% (-1.49% NET) 6.00% (4.46% NET) NET)
--------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF ANNUAL LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- ------ --------- --------- ------ -------- --------- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 351 2,154 200,000 501 2,304 200,000 501
2 47 3,088 0 2,140 4,205 200,000 2,573 4,639 200,000 2,885
3 48 3,088 0 3,025 6,186 200,000 3,877 7,039 200,000 4,465
4 49 3,088 0 4,916 8,077 200,000 6,324 9,485 200,000 7,150
5 50 3,088 0 6,718 9,880 200,000 8,821 11,983 200,000 9,895
6 51 3,088 0 8,751 11,597 200,000 11,689 14,535 200,000 12,976
7 52 3,088 0 10,678 13,208 200,000 14,595 17,124 200,000 16,147
8 53 3,088 0 12,502 14,715 200,000 17,542 19,755 200,000 19,414
9 54 3,088 0 14,202 16,099 200,000 20,513 22,410 200,000 22,806
10 55 3,088 0 15,782 17,363 200,000 23,513 25,094 200,000 26,308
11 56 3,088 0 17,381 18,646 200,000 26,734 27,998 200,000 30,067
12 57 3,088 0 18,827 19,775 200,000 29,977 30,925 200,000 33,855
13 58 3,088 0 20,121 20,754 200,000 33,249 33,881 200,000 37,760
14 59 3,088 0 21,245 21,561 200,000 36,537 36,853 200,000 41,812
15 60 3,088 0 22,179 22,179 200,000 39,826 39,826 200,000 46,042
16 61 3,088 0 22,587 22,587 200,000 42,790 42,790 200,000 50,126
17 62 3,088 0 22,763 22,763 200,000 45,731 45,731 200,000 54,322
18 63 3,088 0 22,708 22,708 200,000 48,655 48,655 200,000 58,608
19 64 3,088 0 22,336 22,336 200,000 51,497 51,497 200,000 63,051
20 65 3,088 0 21,621 21,621 200,000 54,242 54,242 200,000 67,667
21 66 3,088 0 20,579 20,579 200,000 56,926 56,926 200,000 72,506
22 67 3,088 0 19,116 19,116 200,000 59,473 59,473 200,000 77,527
23 68 3,088 0 17,176 17,176 200,000 61,850 61,850 200,000 82,723
24 69 3,088 0 14,699 14,699 200,000 64,023 64,023 200,000 88,074
25 70 3,088 0 11,639 11,639 200,000 65,971 65,971 200,000 93,570
26 71 3,088 0 7,872 7,872 200,000 67,620 67,620 200,000 99,241
27 72 3,088 0 3,146 3,146 200,000 68,811 68,811 200,000 105,075
28 73 3,088 0 0 0 0 69,592 69,592 200,000 111,134
29 74 3,088 0 0 0 0 69,786 69,786 200,000 117,401
30 75 3,088 0 0 0 0 69,220 69,220 200,000 123,910
31 76 3,088 0 0 0 0 67,741 67,741 200,000 130,732
32 77 3,088 0 0 0 0 65,174 65,174 200,000 137,879
33 78 3,088 0 0 0 0 61,299 61,299 200,000 145,403
34 79 3,088 0 0 0 0 55,837 55,837 200,000 153,165
35 80 3,088 0 0 0 0 48,407 48,407 200,000 161,457
36 81 3,088 0 0 0 0 38,458 38,458 200,000 170,446
37 82 3,088 0 0 0 0 25,239 25,239 200,000 180,305
38 83 3,088 0 0 0 0 7,623 7,623 200,000 191,389
39 84 3,088 0 0 0 0 0 0 0 203,198
40 85 3,088 0 0 0 0 0 0 0 215,450
<CAPTION>
CURRENT CHARGES
--------------------
6.00% (4.46% NET)
--------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- -------- --------
<S> <C> <C>
1 2,304 200,000
2 4,950 200,000
3 7,626 200,000
4 10,312 200,000
5 13,057 200,000
6 15,821 200,000
7 18,676 200,000
8 21,628 200,000
9 24,703 200,000
10 27,889 200,000
11 31,332 200,000
12 34,804 200,000
13 38,392 200,000
14 42,128 200,000
15 46,042 200,000
16 50,126 200,000
17 54,322 200,000
18 58,608 200,000
19 63,051 200,000
20 67,667 200,000
21 72,506 200,000
22 77,527 200,000
23 82,723 200,000
24 88,074 200,000
25 93,570 200,000
26 99,241 200,000
27 105,075 200,000
28 111,134 200,000
29 117,401 200,000
30 123,910 200,000
31 130,732 200,000
32 137,879 200,000
33 145,403 200,000
34 153,165 200,000
35 161,457 200,000
36 170,446 200,000
37 180,305 200,000
38 191,389 200,958
39 203,198 213,358
40 215,450 226,223
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 84. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-6
<PAGE> 97
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
--------------------------------------------------------------------- 6.00%
(4.46%
0.00% (-1.49% NET) 6.00% (4.46% NET) NET)
-------------------------------- -------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ----- -------- --------- ----- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 0 0 0 0 228,154
42 87 3,088 0 0 0 0 0 0 0 241,294
43 88 3,088 0 0 0 0 0 0 0 254,876
44 89 3,088 0 0 0 0 0 0 0 268,893
45 90 3,088 0 0 0 0 0 0 0 283,336
46 91 3,088 0 0 0 0 0 0 0 298,164
47 92 3,088 0 0 0 0 0 0 0 313,861
48 93 3,088 0 0 0 0 0 0 0 330,532
49 94 3,088 0 0 0 0 0 0 0 348,435
50 95 3,888 0 0 0 0 0 0 0 367,890
<CAPTION>
CURRENT CHARGES
--------------------
6.00% (4.46% NET)
--------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------- --------
<S> <C> <C>
41 228,154 239,562
42 241,294 253,358
43 254,876 267,620
44 268,893 282,338
45 283,336 297,502
46 298,164 313,073
47 313,861 326,416
48 330,532 340,448
49 348,435 355,403
50 367,890 371,569
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 84. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the Contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-7
<PAGE> 98
<TABLE>
<S> <C> <C>
ALLOCATION OF VALUES
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 501 2,304 200,000
2 47 3,088 0 0 0 2,885 4,950 200,000
3 48 3,088 0 0 0 4,465 7,626 200,000
4 49 3,088 0 0 0 7,150 10,312 200,000
5 50 3,088 0 0 0 9,895 13,057 200,000
6 51 3,088 0 0 0 12,976 15,821 200,000
7 52 3,088 0 0 0 16,147 18,676 200,000
8 53 3,088 0 0 0 19,414 21,628 200,000
9 54 3,088 0 0 0 22,806 24,703 200,000
10 55 3,088 0 0 0 26,308 27,889 200,000
11 56 3,088 0 0 0 30,067 31,332 200,000
12 57 3,088 0 0 0 33,855 34,804 200,000
13 58 3,088 0 0 0 37,760 38,392 200,000
14 59 3,088 0 0 0 41,812 42,128 200,000
15 60 3,088 0 0 0 46,042 46,042 200,000
16 61 3,088 0 0 0 50,126 50,126 200,000
17 62 3,088 0 0 0 54,322 54,322 200,000
18 63 3,088 0 0 0 58,608 58,608 200,000
19 64 3,088 0 0 0 63,051 63,051 200,000
20 65 3,088 0 0 0 67,667 67,667 200,000
21 66 3,088 0 0 0 72,506 72,506 200,000
22 67 3,088 0 0 0 77,527 77,527 200,000
23 68 3,088 0 0 0 82,723 82,723 200,000
24 69 3,088 0 0 0 88,074 88,074 200,000
25 70 3,088 0 0 0 93,570 93,570 200,000
26 71 3,088 0 0 0 99,241 99,241 200,000
27 72 3,088 0 0 0 105,075 105,075 200,000
28 73 3,088 0 0 0 111,134 111,134 200,000
29 74 3,088 0 0 0 117,401 117,401 200,000
30 75 3,088 0 0 0 123,910 123,910 200,000
31 76 3,088 0 0 0 130,732 130,732 200,000
32 77 3,088 0 0 0 137,879 137,879 200,000
33 78 3,088 0 0 0 145,403 145,403 200,000
34 79 3,088 0 0 0 153,165 153,165 200,000
35 80 3,088 0 0 0 161,457 161,457 200,000
36 81 3,088 0 0 0 170,446 170,446 200,000
37 82 3,088 0 0 0 180,305 180,305 200,000
38 83 3,088 0 0 0 191,389 191,389 200,958
39 84 3,088 0 0 0 203,198 203,198 213,358
40 85 3,088 0 0 0 215,450 215,450 226,223
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 84. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-8
<PAGE> 99
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 228,154 228,154 239,562
42 87 3,088 0 0 0 241,294 241,294 253,358
43 88 3,088 0 0 0 254,876 254,876 267,620
44 89 3,088 0 0 0 268,893 268,893 282,338
45 90 3,088 0 0 0 283,336 283,336 297,502
46 91 3,088 0 0 0 298,164 298,164 313,073
47 92 3,088 0 0 0 313,861 313,861 326,416
48 93 3,088 0 0 0 330,532 330,532 340,448
49 94 3,088 0 0 0 348,435 348,435 355,403
50 95 3,088 0 0 0 367,890 367,890 371,569
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 84. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results nay be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-9
<PAGE> 100
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
--------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8)
END NET NET VALUE BENEFIT VALUE BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- --------- --------- --------- ------ -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 351 2,154 200,000 652 2,455 200,000
2 47 3,088 0 2,140 4,205 200,000 3,026 5,091 200,000
3 48 3,088 0 3,025 6,186 200,000 4,803 7,964 200,000
4 49 3,088 0 4,916 8,077 200,000 7,916 11,077 200,000
5 50 3,088 0 6,718 9,880 200,000 11,296 14,458 200,000
6 51 3,088 0 8,751 11,597 200,000 15,293 18,139 200,000
7 52 3,088 0 10,678 13,208 200,000 19,603 22,132 200,000
8 53 3,088 0 12,502 14,715 200,000 24,264 26,477 200,000
9 54 3,088 0 14,202 16,099 200,000 29,299 31,195 200,000
10 55 3,088 0 15,782 17,363 200,000 34,754 36,334 200,000
11 56 3,088 0 17,381 18,646 200,000 40,946 42,210 200,000
12 57 3,088 0 18,827 19,775 200,000 47,697 48,645 200,000
13 58 3,088 0 20,121 20,754 200,000 55,085 55,717 200,000
14 59 3,088 0 21,245 21,561 200,000 63,182 63,498 200,000
15 60 3,088 0 22,179 22,179 200,000 72,072 72,072 200,000
16 61 3,088 0 22,587 22,587 200,000 81,542 81,542 200,000
17 62 3,088 0 22,763 22,763 200,000 92,027 92,027 200,000
18 63 3,088 0 22,708 22,708 200,000 103,684 103,684 200,000
19 64 3,088 0 22,336 22,336 200,000 116,651 116,651 200,000
20 65 3,088 0 21,621 21,621 200,000 131,134 131,134 200,000
21 66 3,088 0 20,579 20,579 200,000 147,447 147,447 200,000
22 67 3,088 0 19,116 19,116 200,000 165,834 165,834 200,000
23 68 3,088 0 17,176 17,176 200,000 186,426 186,426 219,983
24 69 3,088 0 14,699 14,699 200,000 209,129 209,129 244,681
25 70 3,088 0 11,639 11,639 200,000 234,159 234,159 271,624
26 71 3,088 0 7,872 7,872 200,000 261,745 261,745 301,007
27 72 3,088 0 3,146 3,146 200,000 292,235 292,235 330,225
28 73 3,088 0 0 0 0 326,016 326,016 361,878
29 74 3,088 0 0 0 0 363,479 363,479 396,192
30 75 3,088 0 0 0 0 405,101 405,101 433,458
31 76 3,088 0 0 0 0 451,462 451,462 474,035
32 77 3,088 0 0 0 0 502,588 502,588 527,718
33 78 3,088 0 0 0 0 558,941 558,941 586,888
34 79 3,088 0 0 0 0 621,019 621,019 652,070
35 80 3,088 0 0 0 0 689,361 689,361 723,829
36 81 3,088 0 0 0 0 764,534 764,534 802,761
37 82 3,088 0 0 0 0 847,143 847,143 889,500
38 83 3,088 0 0 0 0 937,802 937,802 984,692
39 84 3,088 0 0 0 0 1,037,161 1,037,161 1,089,019
40 85 3,088 0 0 0 0 1,145,904 1,145,904 1,203,199
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(9) (10) (11)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- --------- ---------
<S> <C> <C> <C>
1 652 2,455 200,000
2 3,347 5,412 200,000
3 5,426 8,588 200,000
4 8,822 11,983 200,000
5 12,513 15,674 200,000
6 16,804 19,649 200,000
7 21,482 24,011 200,000
8 26,592 28,805 200,000
9 32,204 34,101 200,000
10 38,354 39,935 200,000
11 45,330 46,594 200,000
12 52,926 53,875 200,000
13 61,303 61,935 200,000
14 70,577 70,893 200,000
15 80,877 80,877 200,000
16 91,999 91,999 200,000
17 104,350 104,350 200,000
18 118,078 118,078 200,000
19 133,408 133,408 200,000
20 150,559 150,559 200,000
21 169,836 169,836 203,803
22 191,260 191,260 227,600
23 214,957 214,957 253,650
24 241,157 241,157 282,153
25 270,112 270,112 313,330
26 302,119 302,119 347,437
27 337,561 337,561 381,444
28 376,857 376,857 418,312
29 420,445 420,445 458,285
30 468,849 468,849 501,669
31 522,691 522,691 548,826
32 582,229 582,229 611,340
33 648,032 648,032 680,434
34 720,574 720,574 756,603
35 800,612 800,612 840,643
36 888,884 888,884 933,328
37 986,132 986,132 1,035,438
38 1,093,524 1,093,524 1,148,201
39 1,211,828 1,211,828 1,272,419
40 1,341,981 1,341,981 1,409,080
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-10
<PAGE> 101
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
-------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8)
END NET NET VALUE BENEFIT VALUE BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- --------- --------- --------- ----- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 0 1,264,758 1,264,758 1,327,996
42 87 3,088 0 0 0 0 1,394,497 1,394,497 1,464,222
43 88 3,088 0 0 0 0 1,535,948 1,535,948 1,612,745
44 89 3,088 0 0 0 0 1,689,976 1,689,976 1,774,474
45 90 3,088 0 0 0 0 1,857,496 1,857,496 1,950,371
46 91 3,088 0 0 0 0 2,039,413 2,039,413 2,141,384
47 92 3,088 0 0 0 0 2,242,553 2,242,553 2,332,255
48 93 3,088 0 0 0 0 2,470,540 2,470,540 2,544,656
49 94 3,088 0 0 0 0 2,727,836 2,727,336 2,782,392
50 95 3,088 0 0 0 0 3,020,010 3,020,010 3,050,210
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(9) (10) (11)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- --------- ---------
<S> <C> <C> <C>
41 1,485,103 1,485,103 1,559,358
42 1,642,245 1,642,245 1,724,357
43 1,814,699 1,814,699 1,905,434
44 2,003,755 2,003,755 2,103,942
45 2,210,786 2,210,786 2,321,325
46 2,437,043 2,437,043 2,558,895
47 2,688,285 2,688,285 2,795,817
48 2,967,872 2,967,872 3,056,908
49 3,281,000 3,281,000 3,346,620
50 3,634,229 3,634,229 3,670,571
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 3/5/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-11
<PAGE> 102
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER FUND VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 652 2,455 200,000
2 47 3,088 0 0 0 3,347 5,412 200,000
3 48 3,088 0 0 0 5,426 8,588 200,000
4 49 3,088 0 0 0 8,822 11,983 200,000
5 50 3,088 0 0 0 12,513 15,674 200,000
6 51 3,088 0 0 0 16,804 19,649 200,000
7 52 3,088 0 0 0 21,482 24,011 200,000
8 53 3,088 0 0 0 26,592 28,805 200,000
9 54 3,088 0 0 0 32,204 34,101 200,000
10 55 3,088 0 0 0 38,354 39,935 200,000
11 56 3,088 0 0 0 45,330 46,594 200,000
12 57 3,088 0 0 0 52,926 53,875 200,000
13 58 3,088 0 0 0 61,303 61,935 200,000
14 59 3,088 0 0 0 70,577 70,893 200,000
15 60 3,088 0 0 0 80,877 80,877 200,000
16 61 3,088 0 0 0 91,999 91,999 200,000
17 62 3,088 0 0 0 104,350 104,350 200,000
18 63 3,088 0 0 0 118,078 118,078 200,000
19 64 3,088 0 0 0 133,408 133,408 200,000
20 65 3,088 0 0 0 150,559 150,559 200,000
21 66 3,088 0 0 0 169,836 169,836 203,803
22 67 3,088 0 0 0 191,260 191,260 227,600
23 68 3,088 0 0 0 214,957 214,957 253,650
24 69 3,088 0 0 0 241,157 241,157 282,153
25 70 3,088 0 0 0 270,112 270,112 313,330
26 71 3,088 0 0 0 302,119 302,119 347,437
27 72 3,088 0 0 0 337,561 337,561 381,444
28 73 3,088 0 0 0 376,857 376,857 418,312
29 74 3,088 0 0 0 420,445 420,445 458,285
30 75 3,088 0 0 0 468,849 468,849 501,669
31 76 3,088 0 0 0 522,691 522,691 548,826
32 77 3,088 0 0 0 582,229 582,229 611,340
33 78 3,088 0 0 0 648,032 648,032 680,434
34 79 3,088 0 0 0 720,574 720,574 756,603
35 80 3,088 0 0 0 800,612 800,612 840,643
36 81 3,088 0 0 0 888,884 888,884 933,328
37 82 3,088 0 0 0 986,132 986,132 1,035,438
38 83 3,088 0 0 0 1,093,524 1,093,524 1,148,201
39 84 3,088 0 0 0 1,211,828 1,211,828 1,272,419
40 85 3,088 0 0 0 1,341,981 1,341,981 1,409,080
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-12
<PAGE> 103
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED BENEFIT
OF PREMIUM/ NET TOTAL VALUE ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 1,485,103 1,485,103 1,559,358
42 87 3,088 0 0 0 1,642,245 1,642,245 1,724,357
43 88 3,088 0 0 0 1,814,699 1,814,699 1,905,434
44 89 3,088 0 0 0 2,003,755 2,003,755 2,103,942
45 90 3,088 0 0 0 2,210,786 2,210,786 2,321,325
46 91 3,088 0 0 0 2,437,043 2,437,043 2,558,895
47 92 3,088 0 0 0 2,688,285 2,688,285 2,795,817
48 93 3,088 0 0 0 2,967,872 2,967,872 3,056,908
49 94 3,088 0 0 0 3,281,000 3,281,000 3,346,620
50 95 3,088 0 0 0 3,634,229 3,634,229 3,670,571
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-13
<PAGE> 104
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 0.00%
(-1.49%
0.00% (-1.49% NET) 0.00% (-1.49% NET) NET)
--------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 58 1,728 200,000 58 1,728 200,000 58
2 47 2,578 0 1,490 3,380 200,000 1,490 3,380 200,000 1,817
3 48 2,578 0 2,185 4,990 200,000 2,185 4,990 200,000 2,810
4 49 2,578 0 3,730 6,535 200,000 3,730 6,535 200,000 4,577
5 50 2,578 0 5,189 7,994 200,000 5,189 7,994 200,000 6,254
6 51 2,578 0 6,867 9,391 200,000 6,867 9,391 200,000 7,988
7 52 2,578 0 8,463 10,706 200,000 8,463 10,706 200,000 9,661
8 53 2,578 0 9,977 11,940 200,000 9,977 11,940 200,000 11,297
9 54 2,578 0 11,413 13,096 200,000 11,413 13,096 200,000 12,896
10 55 2,578 0 12,771 14,173 200,000 12,771 14,173 200,000 14,437
11 56 2,578 0 14,161 15,283 200,000 14,161 15,283 200,000 15,996
12 57 2,578 0 15,460 16,301 200,000 15,460 16,301 200,000 17,483
13 58 2,578 0 16,668 17,229 200,000 16,668 17,229 200,000 18,922
14 59 2,578 0 17,786 18,067 200,000 17,786 18,067 200,000 20,249
15 60 2,578 0 18,817 18,817 200,000 18,817 18,817 200,000 21,551
16 61 2,578 0 19,479 19,479 200,000 19,479 19,479 200,000 22,547
17 62 2,578 0 20,011 20,011 200,000 20,011 20,011 200,000 23,520
18 63 2,578 0 20,393 20,393 200,000 20,393 20,393 200,000 24,363
19 64 2,578 0 20,605 20,605 200,000 20,605 20,605 200,000 25,183
20 65 2,578 0 20,603 20,603 200,000 20,603 20,603 200,000 25,898
21 66 2,578 0 20,396 20,396 200,000 20,396 20,396 200,000 26,518
22 67 2,578 0 19,953 19,953 200,000 19,953 19,953 200,000 27,014
23 68 2,578 0 19,249 19,249 200,000 19,249 19,249 200,000 27,366
24 69 2,578 0 18,281 18,281 200,000 18,281 18,281 200,000 27,575
25 70 2,578 0 17,023 17,023 200,000 17,023 17,023 200,000 27,681
26 71 2,578 0 15,423 15,423 200,000 15,423 15,423 200,000 27,603
27 72 2,578 0 13,384 13,384 200,000 13,384 13,384 200,000 27,339
28 73 2,578 0 10,822 10,822 200,000 10,822 10,822 200,000 26,868
29 74 2,578 0 7,579 7,579 200,000 7,579 7,579 200,000 26,126
30 75 2,578 0 3,525 3,525 200,000 3,525 3,525 200,000 25,088
31 76 2,578 0 0 0 0 0 0 0 23,642
32 77 2,578 0 0 0 0 0 0 0 21,778
33 78 2,578 0 0 0 0 0 0 0 19,417
34 79 2,578 0 0 0 0 0 0 0 16,408
35 80 2,578 0 0 0 0 0 0 0 12,718
36 81 2,578 0 0 0 0 0 0 0 8,124
37 82 2,578 0 0 0 0 0 0 0 2,586
<CAPTION>
CURRENT CHARGES
-------------------
0.00% (-1.49% NET)
-------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------ --------
<S> <C> <C>
1 1,728 200,000
2 3,708 200,000
3 5,614 200,000
4 7,381 200,000
5 9,058 200,000
6 10,512 200,000
7 11,905 200,000
8 13,260 200,000
9 14,579 200,000
10 15,840 200,000
11 17,118 200,000
12 18,324 200,000
13 19,483 200,000
14 20,529 200,000
15 21,551 200,000
16 22,547 200,000
17 23,520 200,000
18 24,363 200,000
19 25,183 200,000
20 25,898 200,000
21 26,518 200,000
22 27,014 200,000
23 27,366 200,000
24 27,575 200,000
25 27,681 200,000
26 27,603 200,000
27 27,339 200,000
28 26,868 200,000
29 26,126 200,000
30 25,088 200,000
31 23,642 200,000
32 21,778 200,000
33 19,417 200,000
34 16,408 200,000
35 12,718 200,000
36 8,124 200,000
37 2,586 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 76. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 83.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-14
<PAGE> 105
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
0.00% (-1.49% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 0 0 58 1,728 200,000
2 47 2,578 0 0 0 1,817 3,708 200,000
3 48 2,578 0 0 0 2,810 5,614 200,000
4 49 2,578 0 0 0 4,577 7,381 200,000
5 50 2,578 0 0 0 6,254 9,058 200,000
6 51 2,578 0 0 0 7,988 10,512 200,000
7 52 2,578 0 0 0 9,661 11,905 200,000
8 53 2,578 0 0 0 11,297 13,260 200,000
9 54 2,578 0 0 0 12,896 14,579 200,000
10 55 2,578 0 0 0 14,437 15,840 200,000
11 56 2,578 0 0 0 15,996 17,118 200,000
12 57 2,578 0 0 0 17,483 18,324 200,000
13 58 2,578 0 0 0 18,922 19,483 200,000
14 59 2,578 0 0 0 20,249 20,529 200,000
15 60 2,578 0 0 0 21,551 21,551 200,000
16 61 2,578 0 0 0 22,547 22,547 200,000
17 62 2,578 0 0 0 23,520 23,520 200,000
18 63 2,578 0 0 0 24,363 24,363 200,000
19 64 2,578 0 0 0 25,183 25,183 200,000
20 65 2,578 0 0 0 25,898 25,898 200,000
21 66 2,578 0 0 0 26,518 26,518 200,000
22 67 2,578 0 0 0 27,014 27,014 200,000
23 68 2,578 0 0 0 27,366 27,366 200,000
24 69 2,578 0 0 0 27,575 27,575 200,000
25 70 2,578 0 0 0 27,681 27,681 200,000
26 71 2,578 0 0 0 27,603 27,603 200,000
27 72 2,578 0 0 0 27,339 27,339 200,000
28 73 2,578 0 0 0 26,868 26,868 200,000
29 74 2,578 0 0 0 26,126 26,126 200,000
30 75 2,578 0 0 0 25,088 25,088 200,000
31 76 2,578 0 0 0 23,642 23,642 200,000
32 77 2,578 0 0 0 21,778 21,778 200,000
33 78 2,578 0 0 0 19,417 19,417 200,000
34 79 2,578 0 0 0 16,408 16,408 200,000
35 80 2,578 0 0 0 12,718 12,718 200,000
36 81 2,578 0 0 0 8,124 8,124 200,000
37 82 2,578 0 0 0 2,586 2,586 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment return of
0.00%, contract lapses at age 76. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 83.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-15
<PAGE> 106
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 6.00%
(4.46%
0.00% (- 1.49% NET) 6.00% (4.46% NET) NET)
--------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------- -------- --------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 58 1,728 200,000 181 1,851 200,000 181
2 47 2,578 0 1,490 3,380 200,000 1,844 3,734 200,000 2,181
3 48 2,578 0 2,185 4,990 200,000 2,879 5,683 200,000 3,542
4 49 2,578 0 3,730 6,535 200,000 4,874 7,679 200,000 5,805
5 50 2,578 0 5,189 7,994 200,000 6,897 9,701 200,000 8,106
6 51 2,578 0 6,867 9,391 200,000 9,252 11,776 200,000 10,589
7 52 2,578 0 8,463 10,706 200,000 11,640 13,883 200,000 13,134
8 53 2,578 0 9,977 11,940 200,000 14,064 16,027 200,000 15,767
9 54 2,578 0 11,413 13,096 200,000 16,528 18,211 200,000 18,494
10 55 2,578 0 12,771 14,173 200,000 19,035 20,437 200,000 21,297
11 56 2,578 0 14,161 15,283 200,000 21,739 22,860 200,000 24,301
12 57 2,578 0 15,460 16,301 200,000 24,492 25,334 200,000 27,391
13 58 2,578 0 16,668 17,229 200,000 27,301 27,862 200,000 30,597
14 59 2,578 0 17,786 18,067 200,000 30,172 30,452 200,000 33,863
15 60 2,578 0 18,817 18,817 200,000 33,109 33,109 200,000 37,278
16 61 2,578 0 19,479 19,479 200,000 35,840 35,840 200,000 40,570
17 62 2,578 0 20,011 20,011 200,000 38,611 38,611 200,000 44,030
18 63 2,578 0 20,393 20,393 200,000 41,410 41,410 200,000 47,574
19 64 2,578 0 20,605 20,605 200,000 44,224 44,224 200,000 51,304
20 65 2,578 0 20,603 20,603 200,000 47,022 47,022 200,000 55,159
21 66 2,578 0 20,396 20,396 200,000 49,826 49,826 200,000 59,172
22 67 2,578 0 19,953 19,953 200,000 52,609 52,609 200,000 63,321
23 68 2,578 0 19,249 19,249 200,000 55,360 55,360 200,000 67,604
24 69 2,578 0 18,281 18,281 200,000 58,085 58,085 200,000 72,036
25 70 2,578 0 17,023 17,023 200,000 60,771 60,771 200,000 76,666
26 71 2,578 0 15,423 15,423 200,000 63,393 63,393 200,000 81,451
27 72 2,578 0 13,384 13,384 200,000 65,886 65,886 200,000 86,413
28 73 2,578 0 10,822 10,822 200,000 68,206 68,206 200,000 91,561
29 74 2,578 0 7,579 7,579 200,000 70,254 70,254 200,000 96,880
30 75 2,578 0 3,525 3,525 200,000 71,958 71,958 200,000 102,387
31 76 2,578 0 0 0 0 73,223 73,223 200,000 108,055
32 77 2,578 0 0 0 0 73,961 73,961 200,000 113,924
33 78 2,578 0 0 0 0 74,095 74,095 200,000 120,006
34 79 2,578 0 0 0 0 73,488 73,488 200,000 126,292
35 80 2,578 0 0 0 0 71,991 71,991 200,000 132,845
36 81 2,578 0 0 0 0 69,366 69,366 200,000 139,669
37 82 2,578 0 0 0 0 65,305 65,305 200,000 146,857
38 83 2,578 0 0 0 0 59,341 59,341 200,000 154,385
39 84 2,578 0 0 0 0 50,844 50,844 200,000 162,366
40 85 2,578 0 0 0 0 39,025 39,025 200,000 170,875
<CAPTION>
CURRENT CHARGES
--------------------
6.00% (4.46% NET)
--------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- -------- --------
<S> <C> <C>
1 1,851 200,000
2 4,071 200,000
3 6,347 200,000
4 8,610 200,000
5 10,910 200,000
6 13,113 200,000
7 15,378 200,000
8 17,731 200,000
9 20,177 200,000
10 22,699 200,000
11 25,423 200,000
12 28,233 200,000
13 31,158 200,000
14 34,143 200,000
15 37,278 200,000
16 40,570 200,000
17 44,030 200,000
18 47,574 200,000
19 51,304 200,000
20 55,159 200,000
21 59,172 200,000
22 63,321 200,000
23 67,604 200,000
24 72,036 200,000
25 76,666 200,000
26 81,451 200,000
27 86,413 200,000
28 91,561 200,000
29 96,880 200,000
30 102,387 200,000
31 108,055 200,000
32 113,924 200,000
33 120,006 200,000
34 126,292 200,000
35 132,845 200,000
36 139,669 200,000
37 146,857 200,000
38 154,385 200,000
39 162,366 200,000
40 170,875 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 88. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-16
<PAGE> 107
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW
YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
---------------------------------------------------------------------- 6.00%
(4.46%
0.00% (-1.49% NET) 6.00% (4.46% NET) NET)
-------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ----- -------- --------- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 2,578 0 0 0 0 22,751 22,751 200,000 180,113
42 87 2,578 0 0 0 0 499 499 200,000 190,386
43 88 2,578 0 0 0 0 0 0 0 201,400
44 89 2,578 0 0 0 0 0 0 0 212,777
45 90 2,578 0 0 0 0 0 0 0 224,506
46 91 2,578 0 0 0 0 0 0 0 236,556
47 92 2,578 0 0 0 0 0 0 0 249,325
48 93 2,578 0 0 0 0 0 0 0 262,937
49 94 2,578 0 0 0 0 0 0 0 277,553
50 95 2,578 0 0 0 0 0 0 0 293,353
<CAPTION>
CURRENT CHARGES
--------------------
6.00% (4.46% NET)
--------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- -------- --------
<S> <C> <C>
41 180,113 200,000
42 190,386 200,000
43 201,400 211,470
44 212,777 223,416
45 224,506 235,731
46 236,556 248,384
47 249,325 259,298
48 262,937 270,825
49 277,553 283,104
50 293,353 296,287
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 88. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-17
<PAGE> 108
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,378 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 0 0 181 1,851 200,000
2 47 2,578 0 0 0 2,181 4,071 200,000
3 48 2,578 0 0 0 3,542 6,347 200,000
4 49 2,578 0 0 0 5,805 8,610 200,000
5 50 2,578 0 0 0 8,106 10,910 200,000
6 51 2,578 0 0 0 10,589 13,113 200,000
7 52 2,578 0 0 0 13,134 15,378 200,000
8 53 2,578 0 0 0 15,767 17,731 200,000
9 54 2,578 0 0 0 18,494 20,177 200,000
10 55 2,578 0 0 0 21,297 22,699 200,000
11 56 2,578 0 0 0 24,301 25,423 200,000
12 57 2,578 0 0 0 27,391 28,233 200,000
13 58 2,578 0 0 0 30,597 31,158 200,000
14 59 2,578 0 0 0 33,863 34,143 200,000
15 60 2,578 0 0 0 37,278 37,278 200,000
16 61 2,578 0 0 0 40,570 40,570 200,000
17 62 2,578 0 0 0 44,030 44,030 200,000
18 63 2,578 0 0 0 47,574 47,574 200,000
19 64 2,578 0 0 0 51,304 51,304 200,000
20 65 2,578 0 0 0 55,159 55,159 200,000
21 66 2,578 0 0 0 59,172 59,172 200,000
22 67 2,578 0 0 0 63,321 63,321 200,000
23 68 2,578 0 0 0 67,604 67,604 200,000
24 69 2,578 0 0 0 72,036 72,036 200,000
25 70 2,578 0 0 0 76,666 76,666 200,000
26 71 2,578 0 0 0 81,451 81,451 200,000
27 72 2,578 0 0 0 86,413 86,413 200,000
28 73 2,578 0 0 0 91,561 91,561 200,000
29 74 2,578 0 0 0 96,880 96,880 200,000
30 75 2,578 0 0 0 102,387 102,387 200,000
31 76 2,578 0 0 0 108,055 108,055 200,000
32 77 2,578 0 0 0 113,924 113,924 200,000
33 78 2,578 0 0 0 120,006 120,006 200,000
34 79 2,578 0 0 0 126,292 126,292 200,000
35 80 2,578 0 0 0 132,845 132,845 200,000
36 81 2,578 0 0 0 139,669 139,669 200,000
37 82 2,578 0 0 0 146,857 146,857 200,000
38 83 2,578 0 0 0 154,385 154,385 200,000
39 84 2,578 0 0 0 162,366 162,366 200,000
40 85 2,578 0 0 0 170,875 170,875 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 88. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-18
<PAGE> 109
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,378 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 2,578 0 0 0 180,113 180,113 200,000
42 87 2,578 0 0 0 190,386 190,386 200,000
43 88 2,578 0 0 0 201,400 201,400 211,470
44 89 2,578 0 0 0 212,777 212,777 223,416
45 90 2,578 0 0 0 224,506 224,506 235,731
46 91 2,578 0 0 0 236,556 236,556 248,384
47 92 2,578 0 0 0 249,325 249,325 259,298
48 93 2,578 0 0 0 262,937 262,937 270,825
49 94 2,578 0 0 0 277,553 277,553 283,104
50 95 2,578 0 0 0 293,353 293,353 296,287
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6%, contract lapses at age 88. Assuming Current Charges and a Gross Investment
Return of 6%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-19
<PAGE> 110
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
------------------------------------------------------------------------- 12.00%
(-10.42%
0.00% (-1.49% NET) 12.00% (-10.42% NET) NET)
--------------------------------- ----------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- ------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 58 1,728 200,000 304 1,975 200,000 304
2 47 2,578 0 1,490 3,380 200,000 2,213 4,103 200,000 2,560
3 48 2,578 0 2,185 4,990 200,000 3,632 6,436 200,000 4,335
4 49 2,578 0 3,730 6,535 200,000 6,168 8,973 200,000 7,189
5 50 2,578 0 5,189 7,994 200,000 8,907 11,712 200,000 10,276
6 51 2,578 0 6,867 9,391 200,000 12,177 14,701 200,000 13,765
7 52 2,578 0 8,463 10,706 200,000 15,703 17,946 200,000 17,556
8 53 2,578 0 9,977 11,940 200,000 19,515 21,478 200,000 21,706
9 54 2,578 0 11,413 13,096 200,000 23,647 25,330 200,000 26,256
10 55 2,578 0 12,771 14,173 200,000 28,138 29,540 200,000 31,227
11 56 2,578 0 14,161 15,283 200,000 33,240 34,362 200,000 36,857
12 57 2,578 0 15,460 16,301 200,000 38,822 39,663 200,000 43,043
13 58 2,578 0 16,668 17,229 200,000 44,945 45,506 200,000 49,875
14 59 2,578 0 17,786 18,067 200,000 51,678 51,959 200,000 57,376
15 60 2,578 0 18,817 18,817 200,000 59,101 59,101 200,000 65,703
16 61 2,578 0 19,479 19,479 200,000 67,021 67,021 200,000 74,673
17 62 2,578 0 20,011 20,011 200,000 75,788 75,788 200,000 84,679
18 63 2,578 0 20,393 20,393 200,000 85,502 85,502 200,000 95,774
19 64 2,578 0 20,605 20,605 200,000 96,279 96,279 200,000 108,165
20 65 2,578 0 20,603 20,603 200,000 108,248 108,248 200,000 121,967
21 66 2,578 0 20,396 20,396 200,000 121,622 121,622 200,000 137,404
22 67 2,578 0 19,953 19,953 200,000 136,568 136,568 200,000 154,649
23 68 2,578 0 19,249 19,249 200,000 153,322 153,322 200,000 173,936
24 69 2,578 0 18,281 18,281 200,000 172,164 172,164 201,432 195,361
25 70 2,578 0 17,023 17,023 200,000 193,172 193,172 224,080 219,095
26 71 2,578 0 15,423 15,423 200,000 216,397 216,397 248,856 245,373
27 72 2,578 0 13,384 13,384 200,000 242,118 242,118 273,594 274,510
28 73 2,578 0 10,822 10,822 200,000 270,624 270,624 300,393 306,830
29 74 2,578 0 7,579 7,579 200,000 302,233 302,233 329,434 342,694
30 75 2,578 0 3,525 3,525 200,000 337,326 337,326 360,939 382,517
31 76 2,578 0 0 0 0 376,346 376,346 395,163 426,762
32 77 2,578 0 0 0 0 419,462 419,462 440,435 475,755
33 78 2,578 0 0 0 0 467,087 467,087 490,441 529,992
34 79 2,578 0 0 0 0 519,661 519,661 545,644 590,003
35 80 2,578 0 0 0 0 577,667 577,667 606,550 656,392
36 81 2,578 0 0 0 0 641,618 641,618 673,699 729,787
37 82 2,578 0 0 0 0 712,062 712,062 747,665 810,915
38 83 2,578 0 0 0 0 789,568 789,568 829,046 900,463
39 84 2,578 0 0 0 0 874,733 874,733 918,469 999,240
40 85 2,578 0 0 0 0 968,199 968,199 1,016,609 1,108,003
<CAPTION>
CURRENT CHARGES
-----------------------
12.00% (-10.42% NET)
-----------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- --------- ---------
<S> <C> <C>
1 1,975 200,000
2 4,450 200,000
3 7,139 200,000
4 9,993 200,000
5 13,081 200,000
6 16,289 200,000
7 19,800 200,000
8 23,670 200,000
9 27,938 200,000
10 32,629 200,000
11 37,978 200,000
12 43,885 200,000
13 50,436 200,000
14 57,657 200,000
15 65,703 200,000
16 74,673 200,000
17 84,679 200,000
18 95,774 200,000
19 108,165 200,000
20 121,967 200,000
21 137,404 200,000
22 154,449 200,000
23 173,936 205,244
24 195,361 228,573
25 219,095 254,151
26 245,373 282,179
27 274,510 310,196
28 306,830 340,582
29 342,694 373,537
30 382,517 409,293
31 426,762 448,100
32 475,755 499,543
33 529,992 556,492
34 590,003 619,503
35 656,392 689,211
36 729,787 766,276
37 810,915 851,461
38 90,063 945,486
39 999,240 1,049,202
40 1,108,003 1,163,403
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-20
<PAGE> 111
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (-10.42% NET)
-------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8)
END NET NET VALUE BENEFIT VALUE BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- --------- --------- --------- ----- -------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 2,578 0 0 0 0 1,070,629 1,070,629 1,124,161
42 87 2,578 0 0 0 0 1,182,737 1,182,737 1,241,874
43 88 2,578 0 0 0 0 1,305,243 1,305,243 1,370,505
44 89 2,578 0 0 0 0 1,438,922 1,438,922 1,510,868
45 90 2,578 0 0 0 0 1,584,522 1,584,522 1,663,748
46 91 2,578 0 0 0 0 1,742,822 1,742,822 1,829,964
47 92 2,578 0 0 0 0 1,918,968 1,918,968 1,995,727
48 93 2,578 0 0 0 0 2,115,942 2,115,942 2,179,420
49 94 2,578 0 0 0 0 2,337,470 2,337,470 2,884,219
50 95 2,578 0 0 0 0 2,588,319 2,588,319 2,614,202
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (-10.42% NET)
-------------------------------------
(9) (10) (11)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- ---------- ---------
<S> <C> <C> <C>
41 1,227,594 1,227,594 1,288,974
42 1,358,912 1,358,912 1,426,857
43 1,502,886 1,502,886 1,578,030
44 1,660,840 1,660,840 1,743,882
45 1,833,922 1,833,922 1,925,618
46 2,023,180 2,023,180 2,124,339
47 2,233,558 2,233,558 2,322,901
48 2,468,269 2,468,269 2,542,317
49 2,731,304 2,731,304 2,785,930
50 3,027,386 3,027,386 3,057,660
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-21
<PAGE> 112
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER FUND VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 0 0 304 1,975 200,000
2 47 2,578 0 0 0 2,560 4,450 200,000
3 48 2,578 0 0 0 4,335 7,139 200,000
4 49 2,578 0 0 0 7,189 9,993 200,000
5 50 2,578 0 0 0 10,276 13,081 200,000
6 51 2,578 0 0 0 13,765 16,289 200,000
7 52 2,578 0 0 0 17,556 19,800 200,000
8 53 2,578 0 0 0 21,706 23,670 200,000
9 54 2,578 0 0 0 26,256 27,938 200,000
10 55 2,578 0 0 0 31,227 32,629 200,000
11 56 2,578 0 0 0 36,857 37,978 200,000
12 57 2,578 0 0 0 43,043 43,885 200,000
13 58 2,578 0 0 0 49,875 50,436 200,000
14 59 2,578 0 0 0 57,376 57,657 200,000
15 60 2,578 0 0 0 65,703 65,703 200,000
16 61 2,578 0 0 0 74,673 74,673 200,000
17 62 2,578 0 0 0 84,679 84,679 200,000
18 63 2,578 0 0 0 95,774 95,774 200,000
19 64 2,578 0 0 0 108,165 108,165 200,000
20 65 2,578 0 0 0 121,967 121,967 200,000
21 66 2,578 0 0 0 137,404 137,404 200,000
22 67 2,578 0 0 0 154,649 154,649 200,000
23 68 2,578 0 0 0 173,936 173,936 205,244
24 69 2,578 0 0 0 195,361 195,361 228,573
25 70 2,578 0 0 0 219,095 219,095 254,151
26 71 2,578 0 0 0 245,373 245,373 282,179
27 72 2,578 0 0 0 274,510 274,510 310,196
28 73 2,578 0 0 0 306,830 306,830 340,582
29 74 2,578 0 0 0 342,694 342,694 373,537
30 75 2,578 0 0 0 382,517 382,517 409,293
31 76 2,578 0 0 0 426,762 426,762 448,100
32 77 2,578 0 0 0 475,755 475,755 499,543
33 78 2,578 0 0 0 529,992 529,992 556,492
34 79 2,578 0 0 0 590,003 590,003 619,503
35 80 2,578 0 0 0 656,392 656,392 689,211
36 81 2,578 0 0 0 729,787 729,787 766,276
37 82 2,578 0 0 0 810,915 810,915 851,461
38 83 2,578 0 0 0 900,463 900,463 945,486
39 84 2,578 0 0 0 999,240 999,240 1,049,202
40 85 2,578 0 0 0 1,108,003 1,108,003 1,163,403
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-22
<PAGE> 113
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 2,578 0 0 0 1,227,594 1,227,594 1,288,974
42 87 2,578 0 0 0 1,358,912 1,358,912 1,426,857
43 88 2,578 0 0 0 1,502,886 1,502,886 1,578,030
44 89 2,578 0 0 0 1,660,840 1,660,840 1,743,882
45 90 2,578 0 0 0 1,833,922 1,833,922 1,925,618
46 91 2,578 0 0 0 2,023,180 2,023,180 2,124,339
47 92 2,578 0 0 0 2,233,558 2,233,558 2,322,901
48 93 2,578 0 0 0 2,468,269 2,468,269 2,542,317
49 94 2,578 0 0 0 2,731,304 2,731,304 2,785,930
50 95 2,578 0 0 0 3,027,386 3,027,386 3,057,660
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-23
<PAGE> 114
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 0.00%
(- 1.49%
0.00% (- 1.49% NET) 0.00% (- 1.49% NET) NET)
--------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 622 2,704 200,000 622 2,704 200,000 622
2 47 4,162 0 2,683 5,122 200,000 2,683 5,122 200,000 3,146
3 48 4,162 0 3,492 7,405 200,000 3,492 7,405 200,000 4,385
4 49 4,162 0 5,622 9,535 200,000 5,622 9,535 200,000 6,914
5 50 4,162 0 7,603 11,516 200,000 7,603 11,516 200,000 9,310
6 51 4,162 0 9,830 13,352 200,000 9,830 13,352 200,000 11,945
7 52 4,162 0 11,894 15,025 200,000 11,894 15,025 200,000 14,433
8 53 4,162 0 13,754 16,493 200,000 13,754 16,493 200,000 16,820
9 54 4,162 0 15,414 17,762 200,000 15,414 17,762 200,000 19,068
10 55 4,162 0 16,834 18,791 200,000 16,834 18,791 200,000 21,158
11 56 4,162 0 18,228 19,794 200,000 18,228 19,794 200,000 23,180
12 57 4,162 0 19,371 20,545 200,000 19,371 20,545 200,000 25,040
13 58 4,162 0 20,242 21,025 200,000 20,242 21,025 200,000 26,554
14 59 4,162 0 20,819 21,211 200,000 20,819 21,211 200,000 27,930
15 60 4,162 0 21,101 21,101 200,000 21,101 21,101 200,000 29,109
16 61 4,162 0 20,669 20,669 200,000 20,669 20,669 200,000 29,698
17 62 4,162 0 19,847 19,847 200,000 19,847 19,847 200,000 29,989
18 63 4,162 0 18,580 18,580 200,000 18,580 18,580 200,000 29,960
19 64 4,162 0 16,812 16,812 200,000 16,812 16,812 200,000 29,606
20 65 4,162 0 14,456 14,456 200,000 14,456 14,456 200,000 28,983
21 66 4,162 0 11,503 11,503 200,000 11,503 11,503 200,000 28,108
22 67 4,162 0 7,832 7,832 200,000 7,832 7,832 200,000 26,910
23 68 4,162 0 3,348 3,348 200,000 3,348 3,348 200,000 25,315
24 69 4,162 0 0 0 0 0 0 0 23,183
25 70 4,162 0 0 0 0 0 0 0 20,339
26 71 4,162 0 0 0 0 0 0 0 16,785
27 72 4,162 0 0 0 0 0 0 0 12,318
28 73 4,162 0 0 0 0 0 0 0 6,935
29 74 4,162 0 0 0 0 0 0 0 367
<CAPTION>
CURRENT CHARGES
--------------------
0.00% (- 1.49% NET)
--------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------ --------
<S> <C> <C>
1 2,704 200,000
2 5,585 200,000
3 8,298 200,000
4 10,827 200,000
5 13,223 200,000
6 15,467 200,000
7 17,563 200,000
8 19,560 200,000
9 21,416 200,000
10 23,114 200,000
11 24,745 200,000
12 26,214 200,000
13 27,337 200,000
14 28,322 200,000
15 29,109 200,000
16 29,698 200,000
17 29,989 200,000
18 29,960 200,000
19 29,606 200,000
20 28,983 200,000
21 28,108 200,000
22 26,910 200,000
23 25,315 200,000
24 23,183 200,000
25 20,339 200,000
26 16,785 200,000
27 12,318 200,000
28 6,935 200,000
29 367 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 69. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 75.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-24
<PAGE> 115
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
---------------------------------
0.00% (-1.49% NET)
---------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 0 0 622 2,704 200,000
2 47 4,162 0 0 0 3,146 5,585 200,000
3 48 4,162 0 0 0 4,385 8,298 200,000
4 49 4,162 0 0 0 6,914 10,827 200,000
5 50 4,162 0 0 0 9,310 13,223 200,000
6 51 4,162 0 0 0 11,945 15,467 200,000
7 52 4,162 0 0 0 14,433 17,563 200,000
8 53 4,162 0 0 0 16,820 19,560 200,000
9 54 4,162 0 0 0 19,068 21,416 200,000
10 55 4,162 0 0 0 21,158 23,114 200,000
11 56 4,162 0 0 0 23,180 24,745 200,000
12 57 4,162 0 0 0 25,040 26,214 200,000
13 58 4,162 0 0 0 26,554 27,337 200,000
14 59 4,162 0 0 0 27,930 28,322 200,000
15 60 4,162 0 0 0 29,109 29,109 200,000
16 61 4,162 0 0 0 29,698 29,698 200,000
17 62 4,162 0 0 0 29,989 29,989 200,000
18 63 4,162 0 0 0 29,960 29,960 200,000
19 64 4,162 0 0 0 29,606 29,606 200,000
20 65 4,162 0 0 0 28,983 28,983 200,000
21 66 4,162 0 0 0 28,108 28,108 200,000
22 67 4,162 0 0 0 26,910 26,910 200,000
23 68 4,162 0 0 0 25,315 25,315 200,000
24 69 4,162 0 0 0 23,183 23,183 200,000
25 70 4,162 0 0 0 20,339 20,339 200,000
26 71 4,162 0 0 0 16,785 16,785 200,000
27 72 4,162 0 0 0 12,318 12,318 200,000
28 73 4,162 0 0 0 6,935 6,935 200,000
29 74 4,162 0 0 0 367 367 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 69. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 75.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change the hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-25
<PAGE> 116
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 6.00%
(4.46%
0.00% (-1.49% NET) 6.00% (4.46% NET) NET)
--------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 622 2,704 200,000 818 2,901 200,000 818
2 47 4,162 0 2,683 5,122 200,000 3,239 5,678 200,000 3,716
3 48 4,162 0 3,492 7,405 200,000 4,568 8,482 200,000 5,516
4 49 4,162 0 5,622 9,535 200,000 7,380 11,293 200,000 8,793
5 50 4,162 0 7,603 11,516 200,000 10,204 14,118 200,000 12,124
6 51 4,162 0 9,830 13,352 200,000 13,437 16,959 200,000 15,885
7 52 4,162 0 11,894 15,025 200,000 16,670 19,800 200,000 19,691
8 53 4,162 0 13,754 16,493 200,000 19,864 22,604 200,000 23,592
9 54 4,162 0 15,414 17,762 200,000 23,024 25,372 200,000 27,556
10 55 4,162 0 16,834 18,791 200,000 26,112 28,068 200,000 31,570
11 56 4,162 0 18,228 19,794 200,000 29,400 30,966 200,000 35,803
12 57 4,162 0 19,371 20,545 200,000 32,633 33,807 200,000 40,118
13 58 4,162 0 20,242 21,025 200,000 35,795 36,578 200,000 44,354
14 59 4,162 0 20,819 21,211 200,000 38,870 39,261 200,000 48,711
15 60 4,162 0 21,101 21,101 200,000 41,860 41,860 200,000 53,148
16 61 4,162 0 20,669 20,669 200,000 44,360 44,360 200,000 57,289
17 62 4,162 0 19,847 19,847 200,000 46,704 46,704 200,000 61,457
18 63 4,162 0 18,580 18,580 200,000 48,853 48,853 200,000 65,652
19 64 4,162 0 16,812 16,812 200,000 50,768 50,768 200,000 69,893
20 65 4,162 0 14,456 14,456 200,000 52,382 52,382 200,000 74,248
21 66 4,162 0 11,503 11,503 200,000 53,718 53,718 200,000 78,783
22 67 4,162 0 7,832 7,832 200,000 54,669 54,669 200,000 83,455
23 68 4,162 0 3,348 3,348 200,000 55,171 55,171 200,000 88,252
24 69 4,162 0 0 0 0 55,201 55,201 200,000 93,124
25 70 4,162 0 0 0 0 54,641 54,641 200,000 98,018
26 71 4,162 0 0 0 0 53,351 53,351 200,000 102,997
27 72 4,162 0 0 0 0 51,184 51,184 200,000 108,025
28 73 4,162 0 0 0 0 47,887 47,887 200,000 113,185
29 74 4,162 0 0 0 0 43,186 43,186 200,000 118,451
30 75 4,162 0 0 0 0 36,758 36,758 200,000 128,830
31 76 4,162 0 0 0 0 28,109 28,109 200,000 129,463
32 77 4,162 0 0 0 0 16,708 16,708 200,000 135,312
33 78 4,162 0 0 0 0 1,912 1,912 200,000 141,426
34 79 4,162 0 0 0 0 0 0 0 147,458
35 80 4,162 0 0 0 0 0 0 0 153,856
36 81 4,162 0 0 0 0 0 0 0 160,854
37 82 4,162 0 0 0 0 0 0 0 168,634
38 83 4,162 0 0 0 0 0 0 0 177,850
39 84 4,162 0 0 0 0 0 0 0 188,705
40 85 4,162 0 0 0 0 0 0 0 200,739
<CAPTION>
CURRENT CHARGES
---------------------
6.00% (4.46% NET)
---------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------- --------
<S> <C> <C>
1 2,901 200,000
2 6,155 200,000
3 9,430 200,000
4 12,707 200,000
5 16,038 200,000
6 19,407 200,000
7 22,821 200,000
8 26,332 200,000
9 29,904 200,000
10 33,527 200,000
11 37,369 200,000
12 41,292 200,000
13 45,137 200,000
14 49,102 200,000
15 53,148 200,000
16 57,289 200,000
17 61,457 200,000
18 65,652 200,000
19 69,893 200,000
20 74,248 200,000
21 78,783 200,000
22 83,455 200,000
23 88,252 200,000
24 93,124 200,000
25 98,018 200,000
26 102,997 200,000
27 108,025 200,000
28 113,185 200,000
29 118,451 200,000
30 123,830 200,000
31 129,463 200,000
32 135,312 200,000
33 141,426 200,000
34 147,458 200,000
35 153,856 200,000
36 160,854 200,000
37 168,634 200,000
38 177,850 200,000
39 188,705 200,000
40 200,739 210,776
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 79. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-26
<PAGE> 117
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
--------------------------------------------------------------------- 6.00%
(4.46%
0.00% (-1.49% NET) 6.00% (4.46% NET) NET)
-------------------------------- -------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ----- -------- --------- ----- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 4,162 0 0 0 0 0 0 0 213,137
42 87 4,162 0 0 0 0 0 0 0 225,860
43 88 4,162 0 0 0 0 0 0 0 238,911
44 89 4,162 0 0 0 0 0 0 0 252,268
45 90 4,162 0 0 0 0 0 0 0 265,913
46 91 4,162 0 0 0 0 0 0 0 279,780
47 92 4,162 0 0 0 0 0 0 0 294,692
48 93 4,162 0 0 0 0 0 0 0 310,854
49 94 4,162 0 0 0 0 0 0 0 328,507
50 95 4,162 0 0 0 0 0 0 0 347,940
<CAPTION>
CURRENT CHARGES
---------------------
6.00% (4.46% NET)
---------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- -------- --------
<S> <C> <C>
41 213,137 223,794
42 225,860 237,153
43 238,911 250,856
44 252,268 264,881
45 265,913 279,208
46 279,780 293,769
47 294,692 306,479
48 310,854 320,179
49 328,507 335,078
50 347,940 351,420
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 79. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-27
<PAGE> 118
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 0 0 818 2,901 200,000
2 47 4,162 0 0 0 3,716 6,155 200,000
3 48 4,162 0 0 0 5,516 9,430 200,000
4 49 4,162 0 0 0 8,793 12,707 200,000
5 50 4,162 0 0 0 12,124 16,038 200,000
6 51 4,162 0 0 0 15,885 19,407 200,000
7 52 4,162 0 0 0 19,691 22,821 200,000
8 53 4,162 0 0 0 23,592 26,332 200,000
9 54 4,162 0 0 0 27,556 29,904 200,000
10 55 4,162 0 0 0 31,570 33,527 200,000
11 56 4,162 0 0 0 35,803 37,369 200,000
12 57 4,162 0 0 0 40,118 41,292 200,000
13 58 4,162 0 0 0 44,354 45,137 200,000
14 59 4,162 0 0 0 48,711 49,102 200,000
15 60 4,162 0 0 0 53,148 53,148 200,000
16 61 4,162 0 0 0 57,289 57,289 200,000
17 62 4,162 0 0 0 61,457 61,457 200,000
18 63 4,162 0 0 0 65,652 65,652 200,000
19 64 4,162 0 0 0 69,893 69,893 200,000
20 65 4,162 0 0 0 74,248 74,248 200,000
21 66 4,162 0 0 0 78,783 78,783 200,000
22 67 4,162 0 0 0 83,455 83,455 200,000
23 68 4,162 0 0 0 88,252 88,252 200,000
24 69 4,162 0 0 0 93,124 93,124 200,000
25 70 4,162 0 0 0 98,018 98,018 200,000
26 71 4,162 0 0 0 102,997 102,997 200,000
27 72 4,162 0 0 0 108,025 108,025 200,000
28 73 4,162 0 0 0 113,185 113,185 200,000
29 74 4,162 0 0 0 118,451 118,451 200,000
30 75 4,162 0 0 0 123,830 123,830 200,000
31 76 4,162 0 0 0 129,463 129,463 200,000
32 77 4,162 0 0 0 135,312 135,312 200,000
33 78 4,162 0 0 0 141,426 141,426 200,000
34 79 4,162 0 0 0 147,458 147,458 200,000
35 80 4,162 0 0 0 153,856 153,856 200,000
36 81 4,162 0 0 0 160,854 160,854 200,000
37 82 4,162 0 0 0 168,634 168,634 200,000
38 83 4,162 0 0 0 177,850 177,850 200,000
39 84 4,162 0 0 0 188,705 188,705 200,000
40 85 4,162 0 0 0 200,739 200,739 210,776
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 79. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-28
<PAGE> 119
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 4,162 0 0 0 213,137 213,137 223,794
42 87 4,162 0 0 0 225,860 225,860 237,153
43 88 4,162 0 0 0 238,911 238,911 250,856
44 89 4,162 0 0 0 252,268 252,268 264,881
45 90 4,162 0 0 0 265,913 265,913 279,208
46 91 4,162 0 0 0 279,780 279,780 293,769
47 92 4,162 0 0 0 294,692 294,692 306,479
48 93 4,162 0 0 0 310,854 310,854 320,179
49 94 4,162 0 0 0 328,507 328,507 335,078
50 95 4,162 0 0 0 347,940 347,940 351,420
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 79. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-29
<PAGE> 120
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
--------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8)
END NET NET VALUE BENEFIT VALUE BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- --------- --------- --------- ------ -------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 622 2,704 200,000 1,015 3,097 200,000
2 47 4,162 0 2,683 5,122 200,000 3,821 6,259 200,000
3 48 4,162 0 3,492 7,405 200,000 5,741 9,654 200,000
4 49 4,162 0 5,622 9,535 200,000 9,375 13,288 200,000
5 50 4,162 0 7,603 11,516 200,000 13,281 17,194 200,000
6 51 4,162 0 9,830 13,352 200,000 17,888 21,410 200,000
7 52 4,162 0 11,894 15,025 200,000 22,823 25,954 200,000
8 53 4,162 0 13,754 16,493 200,000 28,090 30,829 200,000
9 54 4,162 0 15,414 17,762 200,000 33,738 36,086 200,000
10 55 4,162 0 16,834 18,791 200,000 39,785 41,742 200,000
11 56 4,162 0 18,228 19,794 200,000 46,654 48,219 200,000
12 57 4,162 0 19,371 20,545 200,000 54,118 55,292 200,000
13 58 4,162 0 20,242 21,025 200,000 62,258 63,041 200,000
14 59 4,162 0 20,819 21,211 200,000 71,170 71,561 200,000
15 60 4,162 0 21,101 21,101 200,000 80,987 80,987 200,000
16 61 4,162 0 20,669 20,669 200,000 91,458 91,458 200,000
17 62 4,162 0 19,847 19,847 200,000 103,117 103,117 200,000
18 63 4,162 0 18,580 18,580 200,000 116,160 116,160 200,000
19 64 4,162 0 16,812 16,812 200,000 130,830 130,830 200,000
20 65 4,162 0 14,456 14,456 200,000 147,419 147,419 200,000
21 66 4,162 0 11,503 11,503 200,000 166,399 166,399 200,000
22 67 4,162 0 7,832 7,832 200,000 187,659 187,659 223,314
23 68 4,162 0 3,348 3,448 200,000 211,019 211,019 249,003
24 69 4,162 0 0 0 0 236,703 236,703 276,943
25 70 4,162 0 0 0 0 264,935 264,935 307,324
26 71 4,162 0 0 0 0 295,962 295,962 340,356
27 72 4,162 0 0 0 0 330,269 330,269 373,204
28 73 4,162 0 0 0 0 368,260 368,260 408,768
29 74 4,162 0 0 0 0 410,425 410,425 447,363
30 75 4,162 0 0 0 0 457,360 457,360 489,375
31 76 4,162 0 0 0 0 509,767 509,767 535,256
32 77 4,162 0 0 0 0 567,445 567,445 595,818
33 78 4,162 0 0 0 0 630,891 630,891 662,436
34 79 4,162 0 0 0 0 700,656 700,656 735,688
35 80 4,162 0 0 0 0 777,319 777,319 816,185
36 81 4,162 0 0 0 0 861,495 861,495 904,570
37 82 4,162 0 0 0 0 953,839 953,839 1,001,530
38 83 4,162 0 0 0 0 1,055,018 1,055,018 1,107,769
39 84 4,162 0 0 0 0 1,165,735 1,165,735 1,224,022
40 85 4,162 0 0 0 0 1,286,751 1,286,751 1,351,089
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(9) (10) (11)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- ---------- ---------
<S> <C> <C> <C>
1 1,015 3,097 200,000
2 4,311 6,750 200,000
3 6,744 10,657 200,000
4 10,916 14,829 200,000
5 15,435 19,349 200,000
6 20,715 24,238 200,000
7 26,414 29,545 200,000
8 32,629 35,368 200,000
9 39,383 41,731 200,000
10 46,729 48,686 200,000
11 55,018 56,583 200,000
12 64,135 65,309 200,000
13 74,053 74,836 200,000
14 85,067 85,459 200,000
15 97,294 97,294 200,000
16 110,526 110,526 200,000
17 125,321 125,321 200,000
18 141,931 141,931 200,000
19 160,668 160,668 200,000
20 181,641 181,641 221,601
21 204,902 204,902 245,883
22 230,561 230,561 274,367
23 258,853 258,853 305,446
24 290,022 290,022 339,326
25 324,330 324,330 376,223
26 362,121 362,121 416,439
27 403,906 403,906 456,414
28 450,215 450,215 499,739
29 501,601 501,601 546,745
30 558,732 558,732 597,843
31 622,462 622,462 653,585
32 692,728 692,728 727,365
33 770,135 770,135 808,642
34 855,015 855,015 897,766
35 948,238 948,238 995,650
36 1,050,589 1,050,589 1,103,119
37 1,162,757 1,162,757 1,220,895
38 1,286,260 1,286,260 1,350,573
39 1,421,644 1,421,644 1,492,726
40 1,569,747 1,569,747 1,648,235
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the Actual Rates of Investment Return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-30
<PAGE> 121
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
-------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8)
END NET NET VALUE BENEFIT VALUE BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- --------- --------- --------- ----- -------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 4,162 0 0 0 0 1,418,892 1,418,892 1,489,837
42 87 4,162 0 0 0 0 1,563,072 1,563,072 1,641,226
43 88 4,162 0 0 0 0 1,720,278 1,720,278 1,806,292
44 89 4,162 0 0 0 0 1,891,421 1,891,421 1,985,992
45 90 4,162 0 0 0 0 2,077,580 2,077,580 2,181,459
46 91 4,162 0 0 0 0 2,279,877 2,279,877 2,393,871
47 92 4,162 0 0 0 0 2,506,417 2,506,417 2,606,674
48 93 4,162 0 0 0 0 2,761,288 2,761,288 2,844,126
49 94 4,162 0 0 0 0 3,049,260 3,049,260 3,110,246
50 95 4,162 0 0 0 0 3,376,524 3,376,524 3,410,289
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(9) (10) (11)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- ---------- ---------
<S> <C> <C> <C>
41 1,731,698 1,731,698 1,818,283
42 1,908,344 1,908,344 2,003,761
43 2,100,957 2,100,957 2,206,004
44 2,310,665 2,310,665 2,426,198
45 2,538,701 2,538,701 2,665,636
46 2,785,912 2,785,912 2,925,207
47 3,062,347 3,062,347 3,184,841
48 3,373,126 3,373,126 3,474,319
49 3,724,447 3,724,447 3,798,936
50 4,123,913 4,123,913 4,165,152
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-31
<PAGE> 122
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 0 0 1,015 3,097 200,000
2 47 4,162 0 0 0 4,311 6,750 200,000
3 48 4,162 0 0 0 6,744 10,657 200,000
4 49 4,162 0 0 0 10,916 14,829 200,000
5 50 4,162 0 0 0 15,435 19,349 200,000
6 51 4,162 0 0 0 20,715 24,238 200,000
7 52 4,162 0 0 0 26,414 29,545 200,000
8 53 4,162 0 0 0 32,629 35,368 200,000
9 54 4,162 0 0 0 39,383 41,731 200,000
10 55 4,162 0 0 0 46,729 48,686 200,000
11 56 4,162 0 0 0 55,018 56,583 200,000
12 57 4,162 0 0 0 64,135 65,309 200,000
13 58 4,162 0 0 0 74,053 74,836 200,000
14 59 4,162 0 0 0 85,067 85,459 200,000
15 60 4,162 0 0 0 97,294 97,294 200,000
16 61 4,162 0 0 0 110,526 110,526 200,000
17 62 4,162 0 0 0 125,321 125,321 200,000
18 63 4,162 0 0 0 141,931 141,931 200,000
19 64 4,162 0 0 0 160,668 160,668 200,000
20 65 4,162 0 0 0 181,641 181,641 221,601
21 66 4,162 0 0 0 204,902 204,902 245,883
22 67 4,162 0 0 0 230,561 230,561 274,367
23 68 4,162 0 0 0 258,853 258,853 305,446
24 69 4,162 0 0 0 290,022 290,022 339,326
25 70 4,162 0 0 0 324,330 324,330 376,223
26 71 4,162 0 0 0 362,121 362,121 416,439
27 72 4,162 0 0 0 403,906 403,906 456,414
28 73 4,162 0 0 0 450,215 450,215 499,739
29 74 4,162 0 0 0 501,601 501,601 546,745
30 75 4,162 0 0 0 558,732 558,732 597,843
31 76 4,162 0 0 0 622,462 622,462 653,585
32 77 4,162 0 0 0 692,728 692,728 727,365
33 78 4,162 0 0 0 770,135 770,135 806,642
34 79 4,162 0 0 0 855,015 855,015 897,766
35 80 4,162 0 0 0 948,238 948,238 995,650
36 81 4,162 0 0 0 1,050,589 1,050,589 1,103,119
37 82 4,162 0 0 0 1,162,757 1,162,757 1,220,895
38 83 4,162 0 0 0 1,286,260 1,286,260 1,350,573
39 84 4,162 0 0 0 1,421,644 1,421,644 1,492,726
40 85 4,162 0 0 0 1,569,747 1,569,747 1,648,235
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-32
<PAGE> 123
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW
YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER FUND VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 4,162 0 0 0 1,731,698 1,731,698 1,818,283
42 87 4,162 0 0 0 1,908,344 1,908,344 2,003,761
43 88 4,162 0 0 0 2,100,957 2,100,957 2,206,004
44 89 4,162 0 0 0 2,310,665 2,310,665 2,426,198
45 90 4,162 0 0 0 2,538,701 2,538,701 2,665,636
46 91 4,162 0 0 0 2,785,912 2,785,912 2,925,207
47 92 4,162 0 0 0 3,062,347 3,062,347 3,184,841
48 93 4,162 0 0 0 3,373,126 3,373,126 3,474,319
49 94 4,162 0 0 0 3,724,447 3,724,447 3,798,936
50 95 4,162 0 0 0 4,123,913 4,123,913 4,165,152
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-33
<PAGE> 124
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT PLUS FUND VALUE
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW
YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 0.00%
(-1.49%
0.00% (-1.49% NET) 0.00% (-1.49% NET) NET)
--------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 347 2,150 202,150 347 2,150 202,150 347
2 47 3,088 0 1,578 4,184 204,184 1,578 4,184 204,184 1,888
3 48 3,088 0 2,979 6,140 206,140 2,979 6,140 206,140 3,545
4 49 3,088 0 4,834 7,996 207,996 4,834 7,996 207,996 5,607
5 50 3,088 0 6,591 9,753 209,753 6,591 9,753 209,753 7,566
6 51 3,088 0 8,566 11,412 211,412 8,566 11,412 211,412 9,694
7 52 3,088 0 10,422 12,951 212,951 10,422 12,951 212,951 11,746
8 53 3,088 0 12,159 14,372 214,372 12,159 14,372 214,372 13,725
9 54 3,088 0 13,755 15,652 215,652 13,755 15,652 215,652 15,656
10 55 3,088 0 15,214 16,795 216,795 15,214 16,795 216,795 17,515
11 56 3,088 0 16,667 17,932 217,932 16,667 17,932 217,932 19,374
12 57 3,088 0 17,941 18,890 218,890 17,941 18,890 218,890 21,027
13 58 3,088 0 19,039 19,671 219,671 19,039 19,671 219,671 22,572
14 59 3,088 0 19,938 20,254 220,254 19,938 20,254 220,254 24,032
15 60 3,088 0 20,616 20,616 220,616 20,616 20,616 220,616 25,434
16 61 3,088 0 20,736 20,736 220,736 20,736 20,736 220,736 26,436
17 62 3,088 0 20,592 20,592 220,592 20,592 20,592 220,592 27,262
18 63 3,088 0 20,187 20,187 220,187 20,187 20,187 22,0187 27,865
19 64 3,088 0 19,428 19,428 219,428 19,428 19,428 219,428 28,318
20 65 3,088 0 18,295 18,295 218,295 18,295 18,295 218,295 28,623
21 66 3,088 0 16,804 16,804 216,804 16,804 16,804 216,804 28,796
22 67 3,088 0 14,875 14,875 214,875 14,875 14,875 214,875 28,776
23 68 3,088 0 12,464 12,464 212,464 12,464 12,464 212,464 28,518
24 69 3,088 0 9,527 9,527 209,527 9,527 9,527 209,527 27,951
25 70 3,088 0 6,047 6,047 206,047 6,047 6,047 206,047 27,009
26 71 3,088 0 1,934 1,934 201,934 1,934 1,934 201,934 25,694
27 72 3,088 0 0 0 0 0 0 0 23,915
28 73 3,088 0 0 0 0 0 0 0 21,723
29 74 3,088 0 0 0 0 0 0 0 18,981
30 75 3,088 0 0 0 0 0 0 0 15,646
31 76 3,088 0 0 0 0 0 0 0 11,747
32 77 3,088 0 0 0 0 0 0 0 7,123
33 78 3,088 0 0 0 0 0 0 0 1,662
<CAPTION>
CURRENT CHARGES
--------------------
0.00% (-1.49% NET)
--------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------- --------
<S> <C> <C>
1 2,150 202,150
2 4,493 204,493
3 6,707 206,707
4 8,769 208,769
5 10,728 210,728
6 12,539 212,539
7 14,276 214,276
8 15,939 215,939
9 17,553 217,553
10 19,096 219,096
11 20,639 220,639
12 21,976 221,976
13 23,204 223,204
14 24,348 224,348
15 25,434 225,434
16 26,436 226,436
17 27,262 227,262
18 27,865 227,865
19 28,318 228,318
20 28,623 228,623
21 28,796 228,796
22 28,776 228,776
23 28,518 228,518
24 27,951 227,951
25 27,009 227,009
26 25,694 225,694
27 23,915 223,915
28 21,723 221,723
29 18,981 218,981
30 15,646 215,646
31 11,747 211,747
32 7,123 207,123
33 1,662 201,662
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 72. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 79.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the Actual Rates of Investment Return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-34
<PAGE> 125
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK PLUS FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
---------------------------------
0.00% (-1.49% NET)
---------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 347 2,150 202,150
2 47 3,088 0 0 0 1,888 4,493 204,493
3 48 3,088 0 0 0 3,545 6,707 206,707
4 49 3,088 0 0 0 5,607 8,769 208,769
5 50 3,088 0 0 0 7,566 10,728 210,728
6 51 3,088 0 0 0 9,694 12,539 212,539
7 52 3,088 0 0 0 11,746 14,276 214,276
8 53 3,088 0 0 0 13,725 15,939 215,939
9 54 3,088 0 0 0 15,656 17,553 217,553
10 55 3,088 0 0 0 17,515 19,096 219,096
11 56 3,088 0 0 0 19,374 20,639 220,639
12 57 3,088 0 0 0 21,027 21,976 221,976
13 58 3,088 0 0 0 22,572 23,204 223,204
14 59 3,088 0 0 0 24,032 24,348 224,348
15 60 3,088 0 0 0 25,434 25,434 225,434
16 61 3,088 0 0 0 26,436 26,436 226,436
17 62 3,088 0 0 0 27,262 27,262 227,262
18 63 3,088 0 0 0 27,865 27,865 227,865
19 64 3,088 0 0 0 28,318 28,318 228,318
20 65 3,088 0 0 0 28,623 28,623 228,623
21 66 3,088 0 0 0 28,796 28,796 228,796
22 67 3,088 0 0 0 28,776 28,776 228,776
23 68 3,088 0 0 0 28,518 28,518 228,518
24 69 3,088 0 0 0 27,951 27,951 227,951
25 70 3,088 0 0 0 27,009 27,009 227,009
26 71 3,088 0 0 0 25,694 25,694 225,694
27 72 3,088 0 0 0 23,915 23,915 223,915
28 73 3,088 0 0 0 21,723 21,723 221,723
29 74 3,088 0 0 0 18,981 18,981 218,981
30 75 3,088 0 0 0 15,646 15,646 215,646
31 76 3,088 0 0 0 11,747 11,747 211,747
32 77 3,088 0 0 0 7,123 7,123 207,123
33 78 3,088 0 0 0 1,662 1,662 201,662
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 72. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 79.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-35
<PAGE> 126
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK PLUS FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 6.00%
(4.46%
0.00% (-1.49% NET) 6.00% (4.46% NET) NET)
--------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 347 2,150 202,150 497 2,300 202,300 497
2 47 3,088 0 1,578 4,184 204,184 2,010 4,616 204,616 2,329
3 48 3,088 0 2,979 6,140 206,140 3,824 6,986 206,986 4,429
4 49 3,088 0 4,834 7,996 207,996 6,227 9,389 209,389 7,079
5 50 3,088 0 6,591 9,753 209,753 8,663 11,825 211,825 9,774
6 51 3,088 0 8,566 11,412 211,412 11,450 14,295 214,295 12,783
7 52 3,088 0 10,422 12,951 212,951 14,249 16,778 216,778 15,863
8 53 3,088 0 12,159 14,372 214,372 17,061 19,274 219,274 19,017
9 54 3,088 0 13,755 15,652 215,652 19,861 21,758 221,758 22,273
10 55 3,088 0 15,214 16,795 216,795 22,649 24,230 224,230 25,611
11 56 3,088 0 16,667 17,932 217,932 25,602 26,867 226,867 29,156
12 57 3,088 0 17,941 18,890 218,890 28,515 29,463 229,463 32,665
13 58 3,088 0 19,039 19,671 219,671 31,384 32,017 232,017 36,234
14 59 3,088 0 19,938 20,254 220,254 34,184 34,500 234,500 39,891
15 60 3,088 0 20,616 20,616 220,616 36,885 36,885 236,885 43,666
16 61 3,088 0 20,736 20,736 220,736 39,143 39,143 239,143 47,223
17 62 3,088 0 20,592 20,592 220,592 41,243 41,243 241,243 50,785
18 63 3,088 0 20,187 20,187 220,187 43,176 43,176 243,176 54,303
19 64 3,088 0 19,428 19,428 219,428 44,836 44,836 244,836 57,849
20 65 3,088 0 18,295 18,295 218,295 46,184 46,184 246,184 61,423
21 66 3,088 0 16,804 16,804 216,804 47,221 47,221 247,221 65,044
22 67 3,088 0 14,875 14,875 214,875 47,841 47,841 247,841 68,648
23 68 3,088 0 12,464 12,464 212,464 47,975 47,975 247,975 72,185
24 69 3,088 0 9,527 9,527 209,527 47,549 47,549 247,549 75,578
25 70 3,088 0 6,047 6,047 206,047 46,510 46,510 246,510 78,747
26 71 3,088 0 1,934 1,934 201,934 44,729 44,729 244,729 81,679
27 72 3,088 0 0 0 0 41,947 41,947 241,947 84,264
28 73 3,088 0 0 0 0 38,238 38,238 238,238 86,534
29 74 3,088 0 0 0 0 33,334 33,334 233,334 88,327
30 75 3,088 0 0 0 0 27,003 27,003 227,003 89,568
31 76 3,088 0 0 0 0 19,074 19,074 219,074 90,255
32 77 3,088 0 0 0 0 9,394 9,394 209,394 90,187
33 78 3,088 0 0 0 0 0 0 0 89,205
34 79 3,088 0 0 0 0 0 0 0 86,300
35 80 3,088 0 0 0 0 0 0 0 81,920
36 81 3,088 0 0 0 0 0 0 0 75,966
37 82 3,088 0 0 0 0 0 0 0 68,064
38 83 3,088 0 0 0 0 0 0 0 59,250
39 84 3,088 0 0 0 0 0 0 0 48,543
40 85 3,088 0 0 0 0 0 0 0 35,478
<CAPTION>
CURRENT CHARGES
-------------------
6.00% (4.46% NET)
-------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------ --------
<S> <C> <C>
1 2,300 202,300
2 4,935 204,935
3 7,590 207,590
4 10,241 210,241
5 12,936 212,936
6 15,629 215,629
7 18,392 218,392
8 21,230 221,230
9 24,170 224,170
10 27,192 227,192
11 30,421 230,421
12 33,613 233,613
13 36,866 236,866
14 40,207 240,207
15 43,666 243,666
16 47,223 247,223
17 50,785 250,785
18 54,303 254,303
19 57,849 257,849
20 61,423 261,423
21 65,044 265,044
22 68,648 268,648
23 72,185 272,185
24 75,578 275,578
25 78,747 278,747
26 81,679 281,679
27 84,264 284,264
28 86,534 286,534
29 88,327 288,327
30 89,568 289,568
31 90,255 290,255
32 90,187 290,187
33 89,205 289,205
34 86,300 286,300
35 81,920 281,920
36 75,966 275,966
37 68,064 268,064
38 59,250 259,250
39 48,543 248,543
40 35,478 235,478
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 88.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-36
<PAGE> 127
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK PLUS FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
--------------------------------------------------------------------- 6.00%
(4.46%
0.00% (-1.49% NET) 6.00% (4.46% NET) NET)
-------------------------------- -------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ----- -------- --------- ----- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 0 0 0 0 19,938
42 87 3,088 0 0 0 0 0 0 0 1,381
<CAPTION>
CURRENT CHARGES
-------------------
6.00% (4.46% NET)
-------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------- --------
<S> <C> <C>
41 19,938 219,938
42 1,381 201,381
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, Contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 88.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-37
<PAGE> 128
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT PLUS
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
---------------------------------
6.00% (4.46% NET)
---------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 497 2,300 202,300
2 47 3,088 0 0 0 2,329 4,935 204,935
3 48 3,088 0 0 0 4,429 7,590 207,590
4 49 3,088 0 0 0 7,079 10,241 210,241
5 50 3,088 0 0 0 9,774 12,936 212,936
6 51 3,088 0 0 0 12,783 15,629 215,629
7 52 3,088 0 0 0 15,863 18,392 218,392
8 53 3,088 0 0 0 19,017 21,230 221,230
9 54 3,088 0 0 0 22,273 24,170 224,170
10 55 3,088 0 0 0 25,611 27,192 227,192
11 56 3,088 0 0 0 29,156 30,421 230,421
12 57 3,088 0 0 0 32,665 33,613 233,613
13 58 3,088 0 0 0 36,234 36,866 236,866
14 59 3,088 0 0 0 39,891 40,207 240,207
15 60 3,088 0 0 0 43,666 43,666 243,666
16 61 3,088 0 0 0 47,223 47,223 247,223
17 62 3,088 0 0 0 50,785 50,785 250,785
18 63 3,088 0 0 0 54,303 54,303 254,303
19 64 3,088 0 0 0 57,849 57,849 257,849
20 65 3,088 0 0 0 61,423 61,423 261,423
21 66 3,088 0 0 0 65,044 65,044 265,044
22 67 3,088 0 0 0 68,648 68,648 268,648
23 68 3,088 0 0 0 72,185 72,185 272,185
24 69 3,088 0 0 0 75,578 75,578 275,578
25 70 3,088 0 0 0 78,747 78,747 278,747
26 71 3,088 0 0 0 81,679 81,679 281,679
27 72 3,088 0 0 0 84,264 84,264 284,264
28 73 3,088 0 0 0 86,534 86,534 286,534
29 74 3,088 0 0 0 88,327 88,327 288,327
30 75 3,088 0 0 0 89,568 89,568 289,568
31 76 3,088 0 0 0 90,255 90,255 290,255
32 77 3,088 0 0 0 90,187 90,187 290,187
33 78 3,088 0 0 0 89,205 89,205 289,205
34 79 3,088 0 0 0 86,300 86,300 286,300
35 80 3,088 0 0 0 81,920 81,920 281,920
36 81 3,088 0 0 0 75,966 75,966 275,966
37 82 3,088 0 0 0 68,064 68,064 268,064
38 83 3,088 0 0 0 59,250 59,250 259,250
39 84 3,088 0 0 0 48,543 48,543 248,543
40 85 3,088 0 0 0 35,478 35,478 235,478
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 88.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-38
<PAGE> 129
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
---------------------------------
6.00% (4.46% NET)
---------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 19,938 19,938 219,938
42 87 3,088 0 0 0 1,381 1,381 201,381
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 88.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-39
<PAGE> 130
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT PLUS
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
------------------------------------------------------------------------ 12.00%
(10.42%
0.00% (-1.49% NET) 12.00% (10.42% NET) NET)
--------------------------------- ---------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 347 2,150 202,150 647 2,450 202,450 647
2 47 3,088 0 1,578 4,184 204,184 2,460 5,066 205,066 2,790
3 48 3,088 0 2,979 6,140 206,140 4,743 7,904 207,904 5,385
4 49 3,088 0 4,834 7,996 207,996 7,801 10,962 210,962 8,738
5 50 3,088 0 6,591 9,753 209,753 11,101 14,263 214,263 12,364
6 51 3,088 0 8,566 11,412 211,412 14,986 17,831 217,831 16,558
7 52 3,088 0 10,422 12,951 212,951 19,141 21,670 221,670 21,105
8 53 3,088 0 12,159 14,372 214,372 23,595 25,808 225,808 26,042
9 54 3,088 0 13,755 15,652 215,652 28,353 30,250 230,250 31,435
10 55 3,088 0 15,214 16,795 216,795 33,447 35,028 235,028 37,306
11 56 3,088 0 16,667 17,932 217,932 39,161 40,426 240,426 43,901
12 57 3,088 0 17,941 18,890 218,890 45,289 46,238 246,238 50,981
13 58 3,088 0 19,039 19,671 219,671 51,877 52,510 252,510 58,701
14 59 3,088 0 19,938 20,254 220,254 58,950 59,267 259,267 67,158
15 60 3,088 0 20,616 20,616 220,616 66,536 66,536 266,536 76,458
16 61 3,088 0 20,736 20,736 220,736 74,349 74,349 274,349 86,350
17 62 3,088 0 20,592 20,592 220,592 82,740 82,740 282,740 97,150
18 63 3,088 0 20,187 20,187 220,187 91,773 91,773 291,773 108,907
19 64 3,088 0 19,428 19,428 219,428 101,415 101,415 301,415 121,801
20 65 3,088 0 18,295 18,295 218,295 111,709 111,709 311,709 135,958
21 66 3,088 0 16,804 16,804 216,804 122,744 122,744 322,744 151,533
22 67 3,088 0 14,875 14,875 214,875 134,506 134,506 334,506 168,614
23 68 3,088 0 12,464 12,464 212,464 147,026 147,026 347,026 187,315
24 69 3,088 0 9,527 9,527 209,527 160,335 160,335 360,335 207,737
25 70 3,088 0 6,047 6,047 206,047 174,495 174,495 374,495 229,994
26 71 3,088 0 1,934 1,934 201,934 189,497 189,497 389,497 254,287
27 72 3,088 0 0 0 0 205,206 205,206 405,206 280,737
28 73 3,088 0 0 0 0 221,825 221,825 421,825 309,632
29 74 3,088 0 0 0 0 239,226 239,226 439,226 341,087
30 75 3,088 0 0 0 0 257,317 257,317 457,317 375,334
31 76 3,088 0 0 0 0 276,072 276,072 476,072 412,703
32 77 3,088 0 0 0 0 295,488 295,488 495,488 453,360
33 78 3,088 0 0 0 0 315,560 315,560 515,560 497,537
34 79 3,088 0 0 0 0 336,285 336,285 536,285 544,631
35 80 3,088 0 0 0 0 357,633 357,633 557,633 595,521
36 81 3,088 0 0 0 0 379,495 379,495 579,495 650,597
37 82 3,088 0 0 0 0 401,723 401,723 601,723 710,015
38 83 3,088 0 0 0 0 424,027 424,027 624,027 775,418
39 84 3,088 0 0 0 0 446,111 446,111 646,111 846,498
40 85 3,088 0 0 0 0 467,671 467,671 667,671 923,498
<CAPTION>
CURRENT CHARGES
----------------------
12.00% (10.42% NET)
----------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------- ---------
<S> <C> <C>
1 2,450 202,450
2 5,395 205,395
3 8,547 208,547
4 11,900 211,900
5 15,526 215,526
6 19,403 219,403
7 23,634 223,634
8 28,255 228,255
9 33,332 233,332
10 38,887 238,887
11 45,165 245,165
12 51,929 251,929
13 59,334 259,334
14 67,474 267,474
15 76,458 276,458
16 86,350 286,350
17 97,150 297,150
18 108,907 308,907
19 121,801 321,801
20 135,958 335,958
21 151,533 351,533
22 168,614 368,614
23 187,315 387,315
24 207,737 407,737
25 229,994 429,994
26 254,287 454,287
27 280,737 480,737
28 309,632 509,632
29 341,087 541,087
30 375,334 575,334
31 412,703 612,703
32 453,360 653,360
33 497,537 697,537
34 544,631 744,631
35 595,521 795,521
36 650,597 850,597
37 710,015 910,015
38 775,418 975,418
39 846,498 1,046,498
40 923,498 1,123,498
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-40
<PAGE> 131
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT PLUS
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 12.00%
(10.42%
0.00% (-1.49% NET) 12.00% (10.42% NET) NET)
-------------------------------- ---------------------------------- ---------
(1) (2) (3) (5) (6) (8) (9)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ----- -------- --------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 0 488,422 488,422 688,422 1,007,067
42 87 3,088 0 0 0 0 508,096 508,096 708,096 1,097,494
43 88 3,088 0 0 0 0 526,448 526,448 726,448 1,195,581
44 89 3,088 0 0 0 0 543,207 543,207 743,207 1,301,967
45 90 3,088 0 0 0 0 558,096 558,096 758,096 1,417,383
46 91 3,088 0 0 0 0 570,706 570,706 770,706 1,542,288
47 92 3,088 0 0 0 0 580,508 580,508 700,508 1,676,681
48 93 3,088 0 0 0 0 586,788 586,788 786,788 1,819,724
49 94 3,088 0 0 0 0 588,498 588,498 788,498 1,971,856
50 95 3,088 0 0 0 0 583,537 583,537 783,537 2,133,059
<CAPTION>
CURRENT CHARGES
------------------------
12.00% (10.42% NET)
------------------------
(11)
END (10) BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- --------- ---------
<S> <C> <C>
41 1,007,067 1,207,067
42 1,097,494 1,297,494
43 1,195,581 1,395,581
44 1,301,967 1,501,967
45 1,417,383 1,617,383
46 1,542,288 1,742,288
47 1,676,681 1,876,681
48 1,819,724 2,019,724
49 1,971,856 2,171,856
50 2,133,059 2,333,059
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, Contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change the hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-41
<PAGE> 132
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK PLUS FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-----------------------------------
12.00% (10.42% NET)
-----------------------------------
END UNSCHEDULED BENEFIT
OF PREMIUM/ NET TOTAL VALUE ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 647 2,450 202,450
2 47 3,088 0 0 0 2,790 5,395 205,395
3 48 3,088 0 0 0 5,385 8,547 208,547
4 49 3,088 0 0 0 8,738 11,900 211,900
5 50 3,088 0 0 0 12,364 15,526 215,526
6 51 3,088 0 0 0 16,558 19,403 219,403
7 52 3,088 0 0 0 21,105 23,634 223,634
8 53 3,088 0 0 0 26,042 28,255 228,255
9 54 3,088 0 0 0 31,435 33,332 233,332
10 55 3,088 0 0 0 37,306 38,887 238,887
11 56 3,088 0 0 0 43,901 45,165 245,165
12 57 3,088 0 0 0 50,981 51,929 251,929
13 58 3,088 0 0 0 58,701 59,334 259,334
14 59 3,088 0 0 0 67,158 67,474 267,474
15 60 3,088 0 0 0 76,458 76,458 276,458
16 61 3,088 0 0 0 86,350 86,350 286,350
17 62 3,088 0 0 0 97,150 97,150 297,150
18 63 3,088 0 0 0 108,907 108,907 308,907
19 64 3,088 0 0 0 121,801 121,801 321,801
20 65 3,088 0 0 0 135,958 135,958 335,958
21 66 3,088 0 0 0 151,533 151,533 351,533
22 67 3,088 0 0 0 168,614 168,614 368,614
23 68 3,088 0 0 0 187,315 187,315 387,315
24 69 3,088 0 0 0 207,737 207,737 407,737
25 70 3,088 0 0 0 229,994 229,994 429,994
26 71 3,088 0 0 0 254,287 254,287 454,287
27 72 3,088 0 0 0 280,737 280,737 480,737
28 73 3,088 0 0 0 309,632 309,632 509,632
29 74 3,088 0 0 0 341,087 341,087 541,087
30 75 3,088 0 0 0 375,334 375,334 575,334
31 76 3,088 0 0 0 412,703 412,703 612,703
32 77 3,088 0 0 0 453,360 453,360 653,360
33 78 3,088 0 0 0 497,537 497,537 697,537
34 79 3,088 0 0 0 544,631 544,431 744,631
35 80 3,088 0 0 0 595,521 595,521 795,521
36 81 3,088 0 0 0 650,597 650,597 850,597
37 82 3,088 0 0 0 710,015 710,015 910,015
38 83 3,088 0 0 0 775,418 775,418 975,418
39 84 3,088 0 0 0 846,498 844,498 1,046,498
40 85 3,088 0 0 0 923,498 923,498 1,123,498
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-42
<PAGE> 133
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK PLUS FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 1,007,067 1,007,067 1,207,067
42 87 3,088 0 0 0 1,097,494 1,097,494 1,297,494
43 88 3,088 0 0 0 1,195,581 1,195,581 1,395,581
44 89 3,088 0 0 0 1,301,967 1,301,967 1,501,967
45 90 3,088 0 0 0 1,417,383 1,417,383 1,617,383
46 91 3,088 0 0 0 1,542,288 1,542,288 1,742,288
47 92 3,088 0 0 0 1,676,681 1,676,681 1,876,681
48 93 3,088 0 0 0 1,819,724 1,819,724 2,019,724
49 94 3,088 0 0 0 1,971,856 1,971,856 2,171,856
50 95 3,088 0 0 0 2,133,059 2,133,059 2,333,059
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-43
<PAGE> 134
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 0.00%
(-1.49%
0.00% (-1.49% NET) 0.00% (-1.49% NET) NET)
--------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 888 200,000 0 888 200,000 0
2 37 1,646 0 343 1,968 200,000 343 1968 200,000 437
3 38 1,646 0 775 3,010 200,000 775 3,010 200,000 985
4 39 1,646 0 1,780 4,015 200,000 1,780 4,015 200,000 2,081
5 40 1,646 0 2,749 4,984 200,000 2,749 4,984 200,000 3,139
6 41 1,646 0 3,906 5,917 200,000 3,906 5,917 200,000 4,360
7 42 1,646 0 5,005 6,793 200,000 5,005 6,793 200,000 5,545
8 43 1,646 0 6,071 7,635 200,000 6,071 7,635 200,000 6,718
9 44 1,646 0 7,080 8,421 200,000 7,080 8,421 200,000 7,855
10 45 1,646 0 8,035 9,152 200,000 8,035 9,152 200,000 8,959
11 46 1,646 0 9,019 9,913 200,000 9,019 9,913 200,000 10,072
12 47 1,646 0 9,953 10,623 200,000 9,953 10,623 200,000 11,135
13 48 1,646 0 10,838 11,285 200,000 10,838 11,285 200,000 12,168
14 49 1,646 0 11,651 11,874 200,000 11,651 11,874 200,000 13,152
15 50 1,646 0 12,394 12,394 200,000 12,394 12,394 200,000 14,086
16 51 1,646 0 12,843 12,843 200,000 12,843 12,843 200,000 14,748
17 52 1,646 0 13,201 13,201 200,000 13,201 13,201 200,000 15,339
18 53 1,646 0 13,469 13,469 200,000 13,469 13,469 200,000 15,884
19 54 1,646 0 13,624 13,624 200,000 13,624 13,624 200,000 16,381
20 55 1,646 0 13,668 13,668 200,000 13,668 13,668 200,000 16,854
21 56 1,646 0 13,611 13,611 200,000 13,611 13,611 200,000 17,335
22 57 1,646 0 13,399 13,399 200,000 13,399 13,399 200,000 17,727
23 58 1,646 0 13,031 13,031 200,000 13,031 13,031 200,000 18,009
24 59 1,646 0 12,484 12,484 200,000 12,484 12,484 200,000 18,181
25 60 1,646 0 11,736 11,736 200,000 11,736 11,736 200,000 18,222
26 61 1,646 0 10,761 10,761 200,000 10,761 10,761 200,000 18,134
27 62 1,646 0 9,534 9,534 200,000 9,534 9,534 200,000 17,893
28 63 1,646 0 8,050 8,050 200,000 8,050 8,050 200,000 17,479
29 64 1,646 0 6,213 6,213 200,000 6,213 6,213 200,000 16,913
30 65 1,646 0 3,989 3,989 200,000 3,989 3,989 200,000 16,193
31 66 1,646 0 1,320 1,320 200,000 1,320 1,320 200,000 15,296
32 67 1,646 0 0 0 0 0 0 0 14,220
33 68 1,646 0 0 0 0 0 0 0 12,918
34 69 1,646 0 0 0 0 0 0 0 11,317
35 70 1,646 0 0 0 0 0 0 0 9,344
36 71 1,646 0 0 0 0 0 0 0 6,988
37 72 1,646 0 0 0 0 0 0 0 4,143
38 73 1,646 0 0 0 0 0 0 0 836
<CAPTION>
CURRENT CHARGES
--------------------
0.00% (-1.49% NET)
--------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------ --------
<S> <C> <C>
1 888 200,000
2 2,062 200,000
3 3,220 200,000
4 4,315 200,000
5 5,373 200,000
6 6,371 200,000
7 7,332 200,000
8 8,282 200,000
9 9,196 200,000
10 10,076 200,000
11 10,966 200,000
12 11,805 200,000
13 12,615 200,000
14 13,375 200,000
15 14,086 200,000
16 14,748 200,000
17 15,339 200,000
18 15,884 200,000
19 16,381 200,000
20 16,854 200,000
21 17,335 200,000
22 17,727 200,000
23 18,009 200,000
24 18,181 200,000
25 18,222 200,000
26 18,134 200,000
27 17,893 200,000
28 17,479 200,000
29 16,913 200,000
30 16,193 200,000
31 15,296 200,000
32 14,220 200,000
33 12,918 200,000
34 11,317 200,000
35 9,344 200,000
36 6,988 200,000
37 4,143 200,000
38 836 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, Contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 67. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 74.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-44
<PAGE> 135
<TABLE>
<S> <C> <C>
ALLOCATION OF VALUES
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
---------------------------------
0.00% (-1.49% NET)
---------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 0 0 888 200,000
2 37 1,646 0 0 0 437 2,062 200,000
3 38 1,646 0 0 0 985 3,220 200,000
4 39 1,646 0 0 0 2,081 4,315 200,000
5 40 1,646 0 0 0 3,139 5,373 200,000
6 41 1,646 0 0 0 4,360 6,371 200,000
7 42 1,646 0 0 0 5,545 7,332 200,000
8 43 1,646 0 0 0 6,718 8,282 200,000
9 44 1,646 0 0 0 7,855 9,196 200,000
10 45 1,646 0 0 0 8,959 10,076 200,000
11 46 1,646 0 0 0 10,072 10,966 200,000
12 47 1,646 0 0 0 11,135 11,805 200,000
13 48 1,646 0 0 0 12,168 12,615 200,000
14 49 1,646 0 0 0 13,152 13,375 200,000
15 50 1,646 0 0 0 14,086 14,086 200,000
16 51 1,646 0 0 0 14,748 14,748 200,000
17 52 1,646 0 0 0 15,339 15,339 200,000
18 53 1,646 0 0 0 15,884 15,884 200,000
19 54 1,646 0 0 0 16,381 16,381 200,000
20 55 1,646 0 0 0 16,854 16,854 200,000
21 56 1,646 0 0 0 17,335 17,335 200,000
22 57 1,646 0 0 0 17,727 17,727 200,000
23 58 1,646 0 0 0 18,009 18,009 200,000
24 59 1,646 0 0 0 18,181 18,181 200,000
25 60 1,646 0 0 0 18,222 18,222 200,000
26 61 1,646 0 0 0 18,134 18,134 200,000
27 62 1,646 0 0 0 17,893 17,893 200,000
28 63 1,646 0 0 0 17,479 17,479 200,000
29 64 1,646 0 0 0 16,913 16,913 200,000
30 65 1,646 0 0 0 16,193 16,193 200,000
31 66 1,646 0 0 0 15,296 15,296 200,000
32 67 1,646 0 0 0 14,220 14,220 200,000
33 68 1,646 0 0 0 12,918 12,918 200,000
34 69 1,646 0 0 0 11,317 11,317 200,000
35 70 1,646 0 0 0 9,344 9,344 200,000
36 71 1,646 0 0 0 6,988 6,988 200,000
37 72 1,646 0 0 0 4,143 4,143 200,000
38 73 1,646 0 0 0 836 836 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 67. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 74.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-45
<PAGE> 136
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 6.00%
(4.46%
0.00% (-1.49% NET) 6.00% (4.46% NET) NET)
--------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 888 200,000 0 960 200,000 0
2 37 1,646 0 343 1,968 200,000 549 2,174 200,000 646
3 38 1,646 0 775 3,010 200,000 1,186 3,420 200,000 1,408
4 39 1,646 0 1,780 4,015 200,000 2,466 4,701 200,000 2,795
5 40 1,646 0 2,749 4,984 200,000 3,783 6,017 200,000 4,222
6 41 1,646 0 3,906 5,917 200,000 5,361 7,372 200,000 5,892
7 42 1,646 0 5,005 6,793 200,000 6,956 8,743 200,000 7,606
8 43 1,646 0 6,071 7,635 200,000 8,592 10,156 200,000 9,389
9 44 1,646 0 7,080 8,421 200,000 10,249 11,590 200,000 11,222
10 45 1,646 0 8,035 9,152 200,000 11,928 13,045 200,000 13,108
11 46 1,646 0 9,019 9,913 200,000 13,741 14,634 200,000 15,120
12 47 1,646 0 9,953 10,623 200,000 15,593 16,263 200,000 17,181
13 48 1,646 0 10,838 11,285 200,000 17,487 17,934 200,000 19,317
14 49 1,646 0 11,651 11,874 200,000 19,405 19,628 200,000 21,510
15 50 1,646 0 12,394 12,394 200,000 21,348 21,348 200,000 23,765
16 51 1,646 0 12,843 12,843 200,000 23,097 23,097 200,000 25,862
17 52 1,646 0 13,201 13,201 200,000 24,855 24,855 200,000 28,008
18 53 1,646 0 13,469 13,469 200,000 26,625 26,625 200,000 30,228
19 54 1,646 0 13,624 13,624 200,000 28,388 28,388 200,000 32,527
20 55 1,646 0 13,668 13,668 200,000 30,146 30,146 200,000 34,932
21 56 1,646 0 13,611 13,611 200,000 31,916 31,916 200,000 37,483
22 57 1,646 0 13,399 13,399 200,000 33,643 33,643 200,000 40,095
23 58 1,646 0 13,031 13,031 200,000 35,330 35,330 200,000 42,755
24 59 1,646 0 12,484 12,484 200,000 36,957 36,957 200,000 45,467
25 60 1,646 0 11,736 11,736 200,000 38,503 38,503 200,000 48,220
26 61 1,646 0 10,761 10,761 200,000 39,946 39,946 200,000 51,021
27 62 1,646 0 9,534 9,534 200,000 41,265 41,265 200,000 53,857
28 63 1,646 0 8,050 8,050 200,000 42,454 42,454 200,000 56,719
29 64 1,646 0 6,213 6,213 200,000 43,431 43,431 200,000 59,630
30 65 1,646 0 3,989 3,989 200,000 44,166 44,166 200,000 62,600
31 66 1,646 0 1,320 1,320 200,000 44,606 44,606 200,000 65,619
32 67 1,646 0 0 0 0 44,713 44,713 200,000 68,697
33 68 1,646 0 0 0 0 44,424 44,424 200,000 71,812
34 69 1,646 0 0 0 0 43,667 43,667 200,000 74,927
35 70 1,646 0 0 0 0 42,382 42,382 200,000 78,007
36 71 1,646 0 0 0 0 40,438 40,438 200,000 81,061
37 72 1,646 0 0 0 0 37,583 37,583 200,000 84,041
38 73 1,646 0 0 0 0 33,810 33,810 200,000 86,985
39 74 1,646 0 0 0 0 28,810 28,810 200,000 89,821
40 75 1,646 0 0 0 0 22,254 22,254 200,000 92,531
<CAPTION>
CURRENT CHARGES
--------------------
6.00% (4.46% NET)
--------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------ --------
<S> <C> <C>
1 960 200,000
2 2,271 200,000
3 3,663 200,000
4 5,030 200,000
5 6,457 200,000
6 7,903 200,000
7 9,393 200,000
8 10,953 200,000
9 12,563 200,000
10 14,225 200,000
11 16,014 200,000
12 17,851 200,000
13 19,764 200,000
14 21,734 200,000
15 23,765 200,000
16 25,862 200,000
17 28,008 200,000
18 30,228 200,000
19 32,527 200,000
20 34,932 200,000
21 37,483 200,000
22 40,095 200,000
23 42,755 200,000
24 45,467 200,000
25 48,220 200,000
26 51,021 200,000
27 53,857 200,000
28 56,719 200,000
29 59,630 200,000
30 62,600 200,000
31 65,619 200,000
32 68,697 200,000
33 71,812 200,000
34 74,927 200,000
35 78,007 200,000
36 81,061 200,000
37 84,041 200,000
38 86,985 200,000
39 89,821 200,000
40 92,531 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 92.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-46
<PAGE> 137
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
---------------------------------------------------------------------- 6.00%
(4.46%
0.00% (-1.49% NET) 6.00% (4.46% NET) NET)
-------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ----- -------- --------- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 76 1,646 0 0 0 0 13,804 13,804 200,000 95,134
42 77 1,646 0 0 0 0 3,059 3,059 200,000 97,548
43 78 1,646 0 0 0 0 0 0 0 99,712
44 79 1,646 0 0 0 0 0 0 0 101,137
45 80 1,646 0 0 0 0 0 0 0 102,047
46 81 1,646 0 0 0 0 0 0 0 102,384
47 82 1,646 0 0 0 0 0 0 0 101,937
48 83 1,646 0 0 0 0 0 0 0 101,172
49 84 1,646 0 0 0 0 0 0 0 99,565
50 85 1,646 0 0 0 0 0 0 0 96,780
51 86 1,646 0 0 0 0 0 0 0 92,591
52 87 1,646 0 0 0 0 0 0 0 86,453
53 88 1,646 0 0 0 0 0 0 0 77,919
54 89 1,646 0 0 0 0 0 0 0 66,217
55 90 1,646 0 0 0 0 0 0 0 50,297
56 91 1,646 0 0 0 0 0 0 0 28,384
<CAPTION>
CURRENT CHARGES
--------------------
6.00% (4.46% NET)
--------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------- --------
<S> <C> <C>
41 95,134 200,000
42 97,548 200,000
43 99,712 200,000
44 101,137 200,000
45 102,047 200,000
46 102,384 200,000
47 101,937 200,000
48 101,172 200,000
49 99,565 200,000
50 96,780 200,000
51 92,591 200,000
52 86,453 200,000
53 77,919 200,000
54 66,217 200,000
55 50,297 200,000
56 28,384 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 92.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-47
<PAGE> 138
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 THE MUTUAL INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 0 0 960 200,000
2 37 1,646 0 0 0 646 2,271 200,000
3 38 1,646 0 0 0 1,408 3,643 200,000
4 39 1,646 0 0 0 2,795 5,030 200,000
5 40 1,646 0 0 0 4,222 6,457 200,000
6 41 1,646 0 0 0 5,892 7,903 200,000
7 42 1,646 0 0 0 7,606 9,393 200,000
8 43 1,646 0 0 0 9,389 10,953 200,000
9 44 1,646 0 0 0 11,222 12,563 200,000
10 45 1,646 0 0 0 13,108 14,225 200,000
11 46 1,646 0 0 0 15,120 16,014 200,000
12 47 1,646 0 0 0 17,181 17,851 200,000
13 48 1,646 0 0 0 19,317 19,764 200,000
14 49 1,646 0 0 0 21,510 21,734 200,000
15 50 1,646 0 0 0 23,765 23,765 200,000
16 51 1,646 0 0 0 25,862 25,862 200,000
17 52 1,646 0 0 0 28,008 28,008 200,000
18 53 1,646 0 0 0 30,228 30,228 200,000
19 54 1,646 0 0 0 32,527 32,527 200,000
20 55 1,646 0 0 0 34,932 34,932 200,000
21 56 1,646 0 0 0 37,483 37,483 200,000
22 57 1,646 0 0 0 40,095 40,095 200,000
23 58 1,646 0 0 0 42,755 42,755 200,000
24 59 1,646 0 0 0 45,467 45,467 200,000
25 60 1,646 0 0 0 48,220 48,220 200,000
26 61 1,646 0 0 0 51,021 51,021 200,000
27 62 1,646 0 0 0 53,857 53,857 200,000
28 63 1,646 0 0 0 56,719 56,719 200,000
29 64 1,646 0 0 0 59,630 59,630 200,000
30 65 1,646 0 0 0 62,600 62,600 200,000
31 66 1,646 0 0 0 65,619 65,619 200,000
32 67 1,646 0 0 0 68,697 68,697 200,000
33 68 1,646 0 0 0 71,812 71,812 200,000
34 69 1,646 0 0 0 74,927 74,927 200,000
35 70 1,646 0 0 0 78,007 78,007 200,000
36 71 1,646 0 0 0 81,061 81,061 200,000
37 72 1,646 0 0 0 84,041 84,041 200,000
38 73 1,646 0 0 0 86,985 86,985 200,000
39 74 1,646 0 0 0 89,821 89,821 200,000
40 75 1,646 0 0 0 92,531 92,531 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 92.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-48
<PAGE> 139
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 76 1,646 0 0 0 95,134 95,134 200,000
42 77 1,646 0 0 0 97,548 97,548 200,000
43 78 1,646 0 0 0 99,712 99,712 200,000
44 79 1,646 0 0 0 101,137 101,137 200,000
45 80 1,646 0 0 0 102,047 102,047 200,000
46 81 1,646 0 0 0 102,384 102,384 200,000
47 82 1,646 0 0 0 101,937 101,937 200,000
48 83 1,646 0 0 0 101,172 101,172 200,000
49 84 1,646 0 0 0 99,565 99,565 200,000
50 85 1,646 0 0 0 96,780 96,780 200,000
51 86 1,646 0 0 0 92,591 92,591 200,000
52 87 1,646 0 0 0 86,453 86,453 200,000
53 88 1,646 0 0 0 77,919 77,919 200,000
54 89 1,646 0 0 0 66,217 66,217 200,000
55 90 1,646 0 0 0 50,297 50,297 200,000
56 91 1,646 0 0 0 28,384 28,384 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 92.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-49
<PAGE> 140
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
------------------------------------------------------------------------ 12.00%
(10.42%
0.00% (-1.49% NET) 12.00% (10.42% NET) NET)
--------------------------------- ---------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 888 200,000 0 1,032 200,000 0
2 37 1,646 0 343 1,968 200,000 765 2,389 200,000 865
3 38 1,646 0 775 3,010 200,000 1,631 3,866 200,000 1,866
4 39 1,646 0 1,780 4,015 200,000 3,240 5,475 200,000 3,599
5 40 1,646 0 2,749 4,984 200,000 4,996 7,231 200,000 5,490
6 41 1,646 0 3,906 5,917 200,000 7,138 9,149 200,000 7,758
7 42 1,646 0 5,005 6,793 200,000 9,437 11,225 200,000 10,219
8 43 1,646 0 6,071 7,635 200,000 11,934 13,499 200,000 12,918
9 44 1,646 0 7,080 8,421 200,000 14,628 15,969 200,000 15,857
10 45 1,646 0 8,035 9,152 200,000 17,542 18,659 200,000 19,062
11 46 1,646 0 9,019 9,913 200,000 20,845 21,739 200,000 22,674
12 47 1,646 0 9,953 10,623 200,000 24,454 25,124 200,000 26,624
13 48 1,646 0 10,838 11,285 200,000 28,404 28,850 200,000 30,972
14 49 1,646 0 11,651 11,874 200,000 32,714 32,937 200,000 35,745
15 50 1,646 0 12,394 12,394 200,000 37,429 37,429 200,000 40,992
16 51 1,646 0 12,843 12,843 200,000 42,375 42,375 200,000 46,547
17 52 1,646 0 13,201 13,201 200,000 47,812 47,812 200,000 52,677
18 53 1,646 0 13,469 13,469 200,000 53,803 53,803 200,000 59,471
19 54 1,646 0 13,624 13,624 200,000 60,400 60,400 200,000 67,008
20 55 1,646 0 13,668 13,668 200,000 67,681 67,681 200,000 75,394
21 56 1,646 0 13,611 13,611 200,000 75,758 75,758 200,000 84,766
22 57 1,646 0 13,399 13,399 200,000 84,685 84,685 200,000 95,160
23 58 1,646 0 13,031 13,031 200,000 94,579 94,579 200,000 106,692
24 59 1,646 0 12,484 12,484 200,000 105,562 105,562 200,000 119,510
25 60 1,646 0 11,736 11,736 200,000 117,776 117,776 200,000 133,771
26 61 1,646 0 10,761 10,761 200,000 131,391 131,391 200,000 149,667
27 62 1,646 0 9,534 9,534 200,000 146,607 146,607 200,000 167,371
28 63 1,646 0 8,050 8,050 200,000 163,658 163,658 206,209 186,969
29 64 1,646 0 6,213 6,213 200,000 182,568 182,568 226,384 208,661
30 65 1,646 0 3,989 3,989 200,000 203,450 203,450 248,209 232,678
31 66 1,646 0 1,320 1,320 200,000 226,515 226,515 271,818 259,273
32 67 1,646 0 0 0 0 251,947 251,947 299,817 288,696
33 68 1,646 0 0 0 0 278,982 279,982 330,379 321,238
34 69 1,646 0 0 0 0 310,883 310,883 363,733 357,214
35 70 1,646 0 0 0 0 344,947 344,947 400,139 396,970
36 71 1,646 0 0 0 0 382,486 382,486 439,859 440,914
37 72 1,646 0 0 0 0 423,978 423,978 479,095 489,576
38 73 1,646 0 0 0 0 469,959 499,959 521,655 543,534
39 74 1,646 0 0 0 0 520,964 520,964 567,850 603,391
40 75 1,646 0 0 0 0 577,644 577,644 618,079 669,873
<CAPTION>
CURRENT CHARGES
-------------------
12.00% (10.42% NET)
-------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- -------- --------
<S> <C> <C>
1 1,032 200,000
2 2,489 200,000
3 4,101 200,000
4 5,833 200,000
5 7,725 200,000
6 9,769 200,000
7 12,006 200,000
8 14,482 200,000
9 17,197 200,000
10 20,180 200,000
11 23,568 200,000
12 27,294 200,000
13 31,419 200,000
14 35,968 200,000
15 40,992 200,000
16 46,547 200,000
17 52,677 200,000
18 59,471 200,000
19 67,008 200,000
20 75,394 200,000
21 84,766 200,000
22 95,160 200,000
23 106,692 200,000
24 119,510 200,000
25 133,771 200,000
26 149,667 200,000
27 167,371 214,235
28 186,969 235,581
29 208,661 258,740
30 232,678 283,867
31 259,273 311,127
32 288,696 343,548
33 321,238 379,061
34 357,214 417,940
35 396,970 460,485
36 440,914 507,051
37 489,576 553,221
38 543,534 603,323
39 603,391 657,696
40 669,873 716,764
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
Mony Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-50
<PAGE> 141
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
-------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8)
END NET NET VALUE BENEFIT VALUE BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- --------- --------- --------- ----- -------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 76 1,646 0 0 0 0 640,798 640,798 672,838
42 77 1,646 0 0 0 0 710,436 710,436 745,958
43 78 1,646 0 0 0 0 787,183 787,183 826,543
44 79 1,646 0 0 0 0 871,719 871,719 915,304
45 80 1,646 0 0 0 0 964,773 964,773 1,013,011
46 81 1,646 0 0 0 0 1,067,118 1,067,118 1,120,474
47 82 1,646 0 0 0 0 1,179,573 1,179,573 1,238,552
48 83 1,646 0 0 0 0 1,302,973 1,302,973 1,368,121
49 84 1,646 0 0 0 0 1,438,197 1,438,197 1,510,107
50 85 1,646 0 0 0 0 1,586,175 1,586,175 1,665,483
51 86 1,646 0 0 0 0 1,747,891 1,747,891 1,835,286
52 87 1,646 0 0 0 0 1,924,397 1,924,397 2,020,616
53 88 1,646 0 0 0 0 2,116,813 2,116,813 2,222,654
54 89 1,646 0 0 0 0 2,3263,15 2,326,315 2,442,631
55 90 1,646 0 0 0 0 2,554,145 2,554,145 2,681,852
56 91 1,646 0 0 0 0 2,801,529 2,801,529 2,941,606
57 92 1,646 0 0 0 0 3,077,820 3,077,820 3,200,932
58 93 1,646 0 0 0 0 3,387,960 3,387,960 3,489,598
59 94 1,646 0 0 0 0 3,738,035 3,738,035 3,812,795
60 95 1,646 0 0 0 0 4,135,640 4,135,640 4,176,996
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(9) (10) (11)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- ---------- ---------
<S> <C> <C> <C>
41 743,833 743,833 781,025
42 825,613 825,613 866,894
43 915,994 915,994 961,794
44 1,015,619 1,015,619 1,066,400
45 1,125,529 1,125,529 1,181,805
46 1,246,738 1,246,738 1,309,075
47 1,380,262 1,380,262 1,449,275
48 1,527,711 1,527,711 1,604,096
49 1,690,131 1,690,131 1,774,638
50 1,868,809 1,868,809 1,962,249
51 2,065,279 2,065,279 2,168,542
52 2,280,979 2,280,979 2,395,027
53 2,517,684 2,517,684 2,643,568
54 2,777,159 2,777,159 2,916,017
55 3,061,290 3,061,290 3,214,354
56 3,371,785 3,371,785 3,540,374
57 3,716,590 3,716,590 3,865,253
58 4,100,320 4,100,320 4,223,329
59 4,530,124 4,530,124 4,620,727
60 5,015,028 5,015,028 5,065,178
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-51
<PAGE> 142
<TABLE>
<S> <C> <C>
ALLOCATION OF VALUES
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
12.00% (10.42% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 0 0 1,032 200,000
2 37 1,646 0 0 0 865 2,489 200,000
3 38 1,646 0 0 0 1,866 4,101 200,000
4 39 1,646 0 0 0 3,599 5,833 200,000
5 40 1,646 0 0 0 5,490 7,725 200,000
6 41 1,646 0 0 0 7,758 9,769 200,000
7 42 1,646 0 0 0 10,219 12,006 200,000
8 43 1,646 0 0 0 12,918 14,482 200,000
9 44 1,646 0 0 0 15,857 17,197 200,000
10 45 1,646 0 0 0 19,062 20,180 200,000
11 46 1,646 0 0 0 22,674 23,568 200,000
12 47 1,646 0 0 0 26,624 27,294 200,000
13 48 1,646 0 0 0 30,972 31,419 200,000
14 49 1,646 0 0 0 35,745 35,968 200,000
15 50 1,646 0 0 0 40,992 40,992 200,000
16 51 1,646 0 0 0 46,547 46,547 200,000
17 52 1,646 0 0 0 52,677 52,677 200,000
18 53 1,646 0 0 0 59,471 59,471 200,000
19 54 1,646 0 0 0 67,008 67,008 200,000
20 55 1,646 0 0 0 75,394 75,394 200,000
21 56 1,646 0 0 0 84,766 84,766 200,000
22 57 1,646 0 0 0 95,160 95,160 200,000
23 58 1,646 0 0 0 106,692 106,692 200,000
24 59 1,646 0 0 0 119,510 119,510 200,000
25 60 1,646 0 0 0 133,771 133,771 200,000
26 61 1,646 0 0 0 149,667 149,667 200,000
27 62 1,646 0 0 0 167,371 167,371 214,235
28 63 1,646 0 0 0 186,969 186,969 235,581
29 64 1,646 0 0 0 208,661 208,661 258,740
30 65 1,646 0 0 0 232,678 232,678 283,867
31 66 1,646 0 0 0 259,273 259,273 311,127
32 67 1,646 0 0 0 288,696 288,696 343,548
33 68 1,646 0 0 0 321,238 321,238 379,061
34 69 1,646 0 0 0 357,214 357,214 417,940
35 70 1,646 0 0 0 396,970 396,970 460,485
36 71 1,646 0 0 0 440,914 440,914 507,051
37 72 1,646 0 0 0 489,576 489,576 553,221
38 73 1,646 0 0 0 543,534 543,534 603,323
39 74 1,646 0 0 0 603,391 603,391 657,696
40 75 1,646 0 0 0 669,873 669,873 716,764
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-52
<PAGE> 143
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER FUND VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 76 1,646 0 0 0 743,833 743,833 781,025
42 77 1,646 0 0 0 825,613 825,613 866,894
43 78 1,646 0 0 0 915,994 915,994 961,794
44 79 1,646 0 0 0 1,015,619 1,015,619 1,066,400
45 80 1,646 0 0 0 1,125,529 1,125,529 1,181,805
46 81 1,646 0 0 0 1,246,738 1,246,738 1,309,075
47 82 1,646 0 0 0 1,380,262 1,380,262 1,449,275
48 83 1,646 0 0 0 1,527,711 1,527,711 1,604,096
49 84 1,646 0 0 0 1,690,131 1,690,131 1,774,638
50 85 1,646 0 0 0 1,868,809 1,868,809 1,962,249
51 86 1,646 0 0 0 2,065,279 2,065,279 2,168,542
52 87 1,646 0 0 0 2,280,979 2,280,979 2,395,027
53 88 1,646 0 0 0 2,517,684 2,517,684 2,643,568
54 89 1,646 0 0 0 2,777,159 2,777,159 2,916,017
55 90 1,646 0 0 0 3,061,290 3,061,290 3,214,354
56 91 1,646 0 0 0 3,371,785 3,371,785 3,540,374
57 92 1,646 0 0 0 3,716,590 3,716,590 3,865,253
58 93 1,646 0 0 0 4,100,320 4,100,320 4,223,329
59 94 1,646 0 0 0 4,530,124 4,530,124 4,620,727
60 95 1,646 0 0 0 5,015,028 5,015,028 5,065,178
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-53
<PAGE> 144
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 5,010.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 0.00%
(-1.49%
0.00% (-1.49% NET) 0.00% (-1.49% NET) NET)
--------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 1,330 3,632 200,000 1,330 3,632 200,000 1,330
2 57 5,010 0 3,701 6,488 200,000 3,701 6,488 200,000 4,642
3 58 5,010 0 4,910 9,166 200,000 4,910 9,166 200,000 6,791
4 59 5,010 0 7,394 11,651 200,000 7,394 11,651 200,000 10,196
5 60 5,010 0 9,668 13,925 200,000 9,668 13,925 200,000 13,372
6 61 5,010 0 12,142 15,973 200,000 12,142 15,973 200,000 16,713
7 62 5,010 0 14,372 17,778 200,000 14,372 17,778 200,000 19,971
8 63 5,010 0 16,366 19,345 200,000 16,366 19,345 200,000 23,146
9 64 5,010 0 18,040 20,594 200,000 18,040 20,594 200,000 26,223
10 65 5,010 0 19,379 21,507 200,000 19,379 21,507 200,000 29,083
11 66 5,010 0 20,563 22,265 200,000 20,563 22,265 200,000 31,810
12 67 5,010 0 21,355 22,632 200,000 21,355 22,632 200,000 34,268
13 68 5,010 0 21,709 22,560 200,000 21,709 22,560 200,000 36,580
14 69 5,010 0 21,576 22,001 200,000 21,576 22,001 200,000 38,692
15 70 5,010 0 20,921 20,921 200,000 20,921 20,921 200,000 40,587
16 71 5,010 0 19,217 19,217 200,000 19,217 19,217 200,000 41,786
17 72 5,010 0 16,664 16,664 200,000 16,664 16,664 200,000 42,661
18 73 5,010 0 13,327 13,327 200,000 13,327 13,327 200,000 43,005
19 74 5,010 0 8,949 8,949 200,000 8,949 8,949 200,000 43,038
20 75 5,010 0 3,282 3,282 200,000 3,282 3,282 200,000 42,605
21 76 5,010 0 0 0 0 0 0 0 41,796
22 77 5,010 0 0 0 0 0 0 0 40,362
23 78 5,010 0 0 0 0 0 0 0 38,178
24 79 5,010 0 0 0 0 0 0 0 34,438
25 80 5,010 0 0 0 0 0 0 0 29,452
26 81 5,010 0 0 0 0 0 0 0 23,075
27 82 5,010 0 0 0 0 0 0 0 14,881
28 83 5,010 0 0 0 0 0 0 0 5,682
<CAPTION>
CURRENT CHARGES
-------------------
0.00% (-1.49% NET)
--------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- ------ --------
<S> <C> <C>
1 3,632 200,000
2 7,429 200,000
3 11,048 200,000
4 14,452 200,000
5 17,629 200,000
6 20,544 200,000
7 23,376 200,000
8 26,126 200,000
9 28,777 200,000
10 31,212 200,000
11 33,512 200,000
12 35,545 200,000
13 37,431 200,000
14 39,117 200,000
15 40,587 200,000
16 41,786 200,000
17 42,661 200,000
18 43,005 200,000
19 43,038 200,000
20 42,605 200,000
21 41,796 200,000
22 40,362 200,000
23 38,178 200,000
24 34,438 200,000
25 29,452 200,000
26 23,075 200,000
27 14,881 200,000
28 5,682 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 76. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 84.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $68,128.20 INITIAL GUIDELINE ANNUAL: $5,926.12 INITIAL TWO YEAR MINIMUM: $5,010.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-54
<PAGE> 145
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 5,010.00 THE MUTUAL INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
---------------------------------
0.00% (-1.49% NET)
---------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 0 0 1,330 3,632 200,000
2 57 5,010 0 0 0 4,642 7,429 200,000
3 58 5,010 0 0 0 6,791 11,048 200,000
4 59 5,010 0 0 0 10,196 14,452 200,000
5 60 5,010 0 0 0 13,372 17,629 200,000
6 61 5,010 0 0 0 16,713 20,544 200,000
7 62 5,010 0 0 0 19,971 23,376 200,000
8 63 5,010 0 0 0 23,146 26,126 200,000
9 64 5,010 0 0 0 26,223 28,777 200,000
10 65 5,010 0 0 0 29,083 31,212 200,000
11 66 5,010 0 0 0 31,810 33,512 200,000
12 67 5,010 0 0 0 34,268 35,545 200,000
13 68 5,010 0 0 0 36,580 37,431 200,000
14 69 5,010 0 0 0 38,692 39,117 200,000
15 70 5,010 0 0 0 40,587 40,587 200,000
16 71 5,010 0 0 0 41,786 41,786 200,000
17 72 5,010 0 0 0 42,661 42,661 200,000
18 73 5,010 0 0 0 43,005 43,005 200,000
19 74 5,010 0 0 0 43,038 43,038 200,000
20 75 5,010 0 0 0 42,605 42,605 200,000
21 76 5,010 0 0 0 41,796 41,796 200,000
22 77 5,010 0 0 0 40,362 40,362 200,000
23 78 5,010 0 0 0 38,178 38,178 200,000
24 79 5,010 0 0 0 34,438 34,438 200,000
25 80 5,010 0 0 0 29,452 29,452 200,000
26 81 5,010 0 0 0 23,075 23,075 200,000
27 82 5,010 0 0 0 14,881 14,881 200,000
28 83 5,010 0 0 0 5,682 5,682 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 76. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 84.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $68,128.20 INITIAL GUIDELINE ANNUAL: $5,926.12 INITIAL TWO YEAR MINIMUM: $5,010.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-55
<PAGE> 146
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 5,010.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT
CHARGES
GUARANTEED CHARGES ---------
----------------------------------------------------------------------- 6.00%
(4.46%
0.00% (-1.49% NET) 6.00% (4.46% NET) NET)
--------------------------------- --------------------------------- ---------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET NET VALUE BENEFIT VALUE BENEFIT VALUE
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER
- ---- --- --------- --------- --------- ------ -------- --------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 1,330 3,632 200,000 1,578 3,881 200,000 1,578
2 57 5,010 0 3,701 6,488 200,000 4,405 7,192 200,000 5,375
3 58 5,010 0 4,910 9,166 200,000 6,261 10,518 200,000 8,254
4 59 5,010 0 7,394 11,651 200,000 9,586 13,842 200,000 12,638
5 60 5,010 0 9,668 13,925 200,000 12,893 17,149 200,000 17,045
6 61 5,010 0 12,142 15,973 200,000 16,592 20,423 200,000 21,868
7 62 5,010 0 14,372 17,778 200,000 20,243 23,648 200,000 26,860
8 63 5,010 0 16,366 19,345 200,000 23,850 26,830 200,000 32,034
9 64 5,010 0 18,040 20,594 200,000 27,337 29,891 200,000 37,383
10 65 5,010 0 19,379 21,507 200,000 30,687 32,815 200,000 42,807
11 66 5,010 0 20,563 22,265 200,000 34,157 35,860 200,000 48,499
12 67 5,010 0 21,355 22,632 200,000 37,469 38,746 200,000 54,273
13 68 5,010 0 21,709 22,560 200,000 40,585 41,436 200,000 60,255
14 69 5,010 0 21,576 22,001 200,000 43,466 43,891 200,000 66,422
15 70 5,010 0 20,921 20,921 200,000 46,087 46,087 200,000 72,786
16 71 5,010 0 19,217 19,217 200,000 47,940 47,940 200,000 78,906
17 72 5,010 0 16,664 16,664 200,000 49,265 49,265 200,000 85,200
18 73 5,010 0 13,327 13,327 200,000 50,118 50,118 200,000 91,561
19 74 5,010 0 8,949 8,949 200,000 50,296 50,296 200,000 98,193
20 75 5,010 0 3,282 3,282 200,000 49,600 49,600 200,000 105,049
21 76 5,010 0 0 0 0 47,966 47,966 200,000 112,301
22 77 5,010 0 0 0 0 45,095 45,095 200,000 119,846
23 78 5,010 0 0 0 0 40,737 40,737 200,000 127,725
24 79 5,010 0 0 0 0 34,573 34,573 200,000 135,719
25 80 5,010 0 0 0 0 26,175 26,175 200,000 144,155
26 81 5,010 0 0 0 0 14,914 14,914 200,000 153,191
27 82 5,010 0 0 0 0 0 0 0 162,964
28 83 5,010 0 0 0 0 0 0 0 173,910
29 84 5,010 0 0 0 0 0 0 0 186,152
30 85 5,010 0 0 0 0 0 0 0 199,603
31 86 5,010 0 0 0 0 0 0 0 213,565
32 87 5,010 0 0 0 0 0 0 0 228,027
33 88 5,010 0 0 0 0 0 0 0 242,996
34 89 5,010 0 0 0 0 0 0 0 258,467
35 90 5,010 0 0 0 0 0 0 0 274,431
36 91 5,010 0 0 0 0 0 0 0 290,851
37 92 5,010 0 0 0 0 0 0 0 308,200
38 93 5,010 0 0 0 0 0 0 0 326,590
39 94 5,010 0 0 0 0 0 0 0 346,283
40 95 5,010 0 0 0 0 0 0 0 367,608
<CAPTION>
CURRENT CHARGES
---------------------
6.00% (4.46% NET)
---------------------
(10) (11)
END BENEFIT
OF FUND PAYABLE
YEAR VALUE AT DEATH
- ---- -------- --------
<S> <C> <C>
1 3,881 200,000
2 8,161 200,000
3 12,511 200,000
4 16,895 200,000
5 21,301 200,000
6 25,698 200,000
7 30,265 200,000
8 35,013 200,000
9 39,937 200,000
10 44,935 200,000
11 50,202 200,000
12 55,550 200,000
13 61,107 200,000
14 66,848 200,000
15 72,786 200,000
16 78,906 200,000
17 85,200 200,000
18 91,561 200,000
19 98,193 200,000
20 105,049 200,000
21 112,301 200,000
22 119,846 200,000
23 127,725 200,000
24 135,719 200,000
25 144,155 200,000
26 153,191 200,000
27 162,964 200,000
28 173,910 200,000
29 186,152 200,000
30 199,603 209,583
31 213,565 224,244
32 228,027 239,428
33 242,996 255,146
34 258,467 271,390
35 274,431 288,152
36 290,851 305,393
37 308,200 320,528
38 326,590 336,387
39 346,283 353,208
40 367,608 371,285
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 82. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $68,128.20 INITIAL GUIDELINE ANNUAL: $5,926.12 INITIAL TWO YEAR MINIMUM: $5,010.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-56
<PAGE> 147
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 5,010.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 0 0 1,578 3,881 200,000
2 57 5,010 0 0 0 5,375 8,161 200,000
3 58 5,010 0 0 0 8,254 12,511 200,000
4 59 5,010 0 0 0 12,638 16,895 200,000
5 60 5,010 0 0 0 17,045 21,301 200,000
6 61 5,010 0 0 0 21,868 25,698 200,000
7 62 5,010 0 0 0 26,860 30,265 200,000
8 63 5,010 0 0 0 32,034 35,013 200,000
9 64 5,010 0 0 0 37,383 39,937 200,000
10 65 5,010 0 0 0 42,807 44,935 200,000
11 66 5,010 0 0 0 48,499 50,202 200,000
12 67 5,010 0 0 0 54,273 55,550 200,000
13 68 5,010 0 0 0 60,255 61,107 200,000
14 69 5,010 0 0 0 66,422 66,848 200,000
15 70 5,010 0 0 0 72,786 72,786 200,000
16 71 5,010 0 0 0 78,906 78,906 200,000
17 72 5,010 0 0 0 85,200 85,200 200,000
18 73 5,010 0 0 0 91,561 91,561 200,000
19 74 5,010 0 0 0 98,193 98,193 200,000
20 75 5,010 0 0 0 105,049 105,049 200,000
21 76 5,010 0 0 0 112,301 112,301 200,000
22 77 5,010 0 0 0 119,846 119,846 200,000
23 78 5,010 0 0 0 127,725 127,725 200,000
24 79 5,010 0 0 0 135,719 135,719 200,000
25 80 5,010 0 0 0 144,155 144,155 200,000
26 81 5,010 0 0 0 153,191 153,191 200,000
27 82 5,010 0 0 0 162,964 162,964 200,000
28 83 5,010 0 0 0 173,910 173,910 200,000
29 84 5,010 0 0 0 186,152 186,152 200,000
30 85 5,010 0 0 0 199,603 199,603 209,583
31 86 5,010 0 0 0 213,565 213,565 224,244
32 87 5,010 0 0 0 228,027 228,027 239,428
33 88 5,010 0 0 0 242,996 242,996 255,146
34 89 5,010 0 0 0 258,467 258,467 271,390
35 90 5,010 0 0 0 274,431 274,431 288,152
36 91 5,010 0 0 0 290,851 290,851 305,393
37 92 5,010 0 0 0 308,200 308,200 320,528
38 93 5,010 0 0 0 326,590 326,590 336,387
39 94 5,010 0 0 0 346,283 346,283 353,208
40 95 5,010 0 0 0 367,608 367,608 371,285
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 82. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $68,128.20 INITIAL GUIDELINE ANNUAL: $5,926.12 INITIAL TWO YEAR MINIMUM: $5,010.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-57
<PAGE> 148
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 5010.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
--------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8)
END NET NET VALUE BENEFIT VALUE BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- --------- --------- --------- ------ -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 1,330 3,632 200,000 1,827 4,129 200,000
2 57 5,010 0 3,701 6,488 200,000 5,141 7,927 200,000
3 58 5,010 0 4,910 9,166 200,000 7,734 11,991 200,000
4 59 5,010 0 7,394 11,651 200,000 12,076 16,333 200,000
5 60 5,010 0 9,668 13,925 200,000 16,716 20,973 200,000
6 61 5,010 0 12,142 15,973 200,000 22,103 25,934 200,000
7 62 5,010 0 14,372 17,778 200,000 27,840 31,245 200,000
8 63 5,010 0 16,366 19,345 200,000 33,983 36,962 200,000
9 64 5,010 0 18,040 20,594 200,000 40,518 43,072 200,000
10 65 5,010 0 19,379 21,507 200,000 47,496 49,625 200,000
11 66 5,010 0 20,563 22,265 200,000 55,372 57,075 200,000
12 67 5,010 0 21,355 22,632 200,000 63,910 65,187 200,000
13 68 5,010 0 21,709 22,560 200,000 73,205 74,057 200,000
14 69 5,010 0 21,576 22,001 200,000 83,382 83,008 200,000
15 70 5,010 0 20,921 20,921 200,000 94,608 94,608 200,000
16 71 5,010 0 19,217 19,217 200,000 106,627 106,627 200,000
17 72 5,010 0 16,664 16,664 200,000 120,034 120,034 200,000
18 73 5,010 0 13,327 13,327 200,000 135,219 135,219 200,000
19 74 5,010 0 8,949 8,949 200,000 152,523 152,523 200,000
20 75 5,010 0 3,282 3,282 200,000 172,449 172,449 200,000
21 76 5,010 0 0 0 0 195,770 195,770 205,558
22 77 5,010 0 0 0 0 221,871 221,871 232,964
23 78 5,010 0 0 0 0 250,651 250,651 263,184
24 79 5,010 0 0 0 0 282,369 282,369 296,487
25 80 5,010 0 0 0 0 317,300 317,300 333,165
26 81 5,010 0 0 0 0 355,738 355,738 373,525
27 82 5,010 0 0 0 0 397,995 397,995 417,895
28 83 5,010 0 0 0 0 444,390 444,390 466,609
29 84 5,010 0 0 0 0 495,259 495,259 520,022
30 85 5,010 0 0 0 0 550,957 550,957 578,505
31 86 5,010 0 0 0 0 611,862 611,862 642,455
32 87 5,010 0 0 0 0 678,373 678,373 712,291
33 88 5,010 0 0 0 0 750,917 750,917 788,463
34 89 5,010 0 0 0 0 829,944 829,944 871,441
35 90 5,010 0 0 0 0 915,926 915,926 961,722
36 91 5,010 0 0 0 0 1,009,332 1,009,332 1,059,798
37 92 5,010 0 0 0 0 1,113,571 1,113,571 1,158,114
38 93 5,010 0 0 0 0 1,230,487 1,230,487 1,267,401
39 94 5,010 0 0 0 0 1,362,346 1,362,346 1,389,592
40 95 5,010 0 0 0 0 1,511,980 1,511,980 1,527,099
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(9) (10) (11)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- --------- ---------
<S> <C> <C> <C>
1 1,827 4,129 200,000
2 6,138 8,924 200,000
3 9,840 14,096 200,000
4 15,393 19,649 200,000
5 21,357 25,614 200,000
6 28,176 32,006 200,000
7 35,653 39,059 200,000
8 43,871 46,850 200,000
9 52,898 55,452 200,000
10 62,733 64,862 200,000
11 73,824 75,526 200,000
12 86,026 87,303 200,000
13 99,601 100,453 200,000
14 114,716 115,142 200,000
15 131,600 131,600 200,000
16 150,084 150,084 200,000
17 170,919 170,919 200,000
18 194,357 194,357 215,736
19 220,388 220,388 240,223
20 249,290 249,290 266,740
21 281,534 281,534 295,610
22 317,195 317,195 333,055
23 356,616 356,616 374,447
24 400,089 400,089 420,094
25 448,064 448,064 470,467
26 500,985 500,985 526,035
27 559,301 559,301 587,266
28 623,703 623,703 654,888
29 694,660 694,660 729,393
30 772,739 772,739 811,376
31 858,612 858,612 901,543
32 952,915 952,915 1,000,560
33 1,056,424 1,056,424 1,109,245
34 1,169,916 1,169,916 1,228,412
35 1,294,221 1,294,221 1,358,932
36 1,430,093 1,430,093 1,501,598
37 1,580,943 1,580,943 1,644,181
38 1,748,780 1,748,780 1,801,244
39 1,936,704 1,936,704 1,975,438
40 2,148,629 2,148,629 2,170,116
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $68,128.20 INITIAL GUIDELINE ANNUAL: $5,926.12 INITIAL TWO YEAR MINIMUM: $5,010.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-58
<PAGE> 149
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 5,010.00 THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 0 0 1,827 4,129 200,000
2 57 5,010 0 0 0 6,138 8,924 200,000
3 58 5,010 0 0 0 9,840 14,096 200,000
4 59 5,010 0 0 0 15,393 19,649 200,000
5 60 5,010 0 0 0 21,357 25,614 200,000
6 61 5,010 0 0 0 28,176 32,006 200,000
7 62 5,010 0 0 0 35,653 39,059 200,000
8 63 5,010 0 0 0 43,871 46,850 200,000
9 64 5,010 0 0 0 52,898 55,452 200,000
10 65 5,010 0 0 0 62,733 64,862 200,000
11 66 5,010 0 0 0 73,824 75,526 200,000
12 67 5,010 0 0 0 86,026 87,303 200,000
13 68 5,010 0 0 0 99,601 100,453 200,000
14 69 5,010 0 0 0 114,716 115,142 200,000
15 70 5,010 0 0 0 131,600 131,600 200,000
16 71 5,010 0 0 0 150,084 150,084 200,000
17 72 5,010 0 0 0 170,919 170,919 200,000
18 73 5,010 0 0 0 194,357 194,357 215,736
19 74 5,010 0 0 0 220,388 220,388 240,223
20 75 5,010 0 0 0 249,290 249,290 266,740
21 76 5,010 0 0 0 281,534 281,534 295,610
22 77 5,010 0 0 0 317,195 317,195 333,055
23 78 5,010 0 0 0 356,616 356,616 374,447
24 79 5,010 0 0 0 400,089 400,089 420,094
25 80 5,010 0 0 0 448,064 448,064 470,467
26 81 5,010 0 0 0 500,985 500,985 526,035
27 82 5,010 0 0 0 559,301 559,301 587,266
28 83 5,010 0 0 0 623,703 623,703 654,888
29 84 5,010 0 0 0 694,660 694,660 729,393
30 85 5,010 0 0 0 772,739 772,739 811,376
31 86 5,010 0 0 0 858,612 858,612 901,543
32 87 5,010 0 0 0 952,915 952,915 1,000,560
33 88 5,010 0 0 0 1,056,424 1,056,424 1,109,245
34 89 5,010 0 0 0 1,169,916 1,169,916 1,228,412
35 90 5,010 0 0 0 1,294,221 1,294,221 1,358,932
36 91 5,010 0 0 0 1,430,093 1,430,093 1,501,598
37 92 5,010 0 0 0 1,580,943 1,580,943 1,644,181
38 93 5,010 0 0 0 1,748,780 1,748,780 1,801,244
39 94 5,010 0 0 0 1,936,704 1,936,704 1,975,438
40 95 5,010 0 0 0 2,148,629 2,148,629 2,170,116
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NY.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by The Mutual Life Insurance Company of New York,
MONY Series Fund or Enterprise Accumulation Trust that these hypothetical rates
of return can be achieved for any one year, or sustained over any period of
time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $68,128.20 INITIAL GUIDELINE ANNUAL: $5,926.12 INITIAL TWO YEAR MINIMUM: $5,010.00
DATE PREPARED: 5/3/96 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-59
<PAGE> 150
PROSPECTUS DATED MAY 1, 1996
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
1-800-487-6669
MONY Series Fund, Inc. (the "Fund"), a diversified open-end management
investment company, is intended to provide a wide range of investment
alternatives through its seven separate Portfolios, each of which is, for
investment and federal tax purposes, in effect a separate fund. A separate class
of stock will be issued for each Portfolio.
Shares of all Portfolios of the Fund are currently sold to MONY Life
Insurance Company of America ("MONY America") and The Mutual Life Insurance
Company of New York ("MONY") for allocation to MONY America Variable Account L
and MONY Variable Account L to fund the benefits under Flexible Premium Variable
Life Insurance Contracts issued by those companies and for allocation to MONY
America Variable Account A and MONY Variable Account A to fund benefits under
Flexible Payment Variable Annuity Contracts issued by those companies. Shares of
all Portfolios of the Fund, other than the Government Securities Portfolio, are
sold to MONY America and MONY for allocation to MONY America Variable Account S
and MONY Variable Account S to fund benefits under Variable Life Insurance with
Additional Premium Option contracts issued by those companies and to MONY for
allocation to Keynote Series Account ("Keynote") to fund benefits under
Individual Variable Annuity Contracts. These variable accounts ("Variable
Accounts") invest in shares of the Fund in accordance with allocation
instructions received from Contract holders. Such allocation rights are further
described in the attached prospectus for one of the contracts. The Variable
Accounts invest in shares of the Fund through subaccounts that correspond to the
Portfolios. The Variable Accounts will redeem shares of the Fund to the extent
necessary to provide benefits under the Contracts or for such other purposes as
may be consistent with the Contracts.
The investment objectives of the Portfolios are:
INTERMEDIATE TERM BOND PORTFOLIO: The maximum income over the
intermediate term consistent with preservation of capital, through
investment in highly-rated debt securities, U.S. Government obligations, and
money market instruments, together having a dollar-weighted average life of
between 4 and 8 years.
LONG TERM BOND PORTFOLIO: The maximum income over the longer term
consistent with preservation of capital, through investment in highly-rated
debt securities, U.S. Government obligations, and money market instruments,
together having a dollar-weighted average life of more than 8 years.
GOVERNMENT SECURITIES PORTFOLIO: The maximum current income over the
intermediate term consistent with preservation of capital, through
investment in highly-rated debt securities of the United States government
and its agencies and money market instruments, with a dollar-weighted
average life of up to ten years at the time of purchase.
MONEY MARKET PORTFOLIO: The maximum current income consistent with
preservation of capital and maintenance of liquidity, through investment in
money market instruments. The Money Market Portfolio is neither insured nor
guaranteed by the United States Government, and, while the Money Market
Portfolio seeks to maintain a stable net asset value of $1.00 per share,
there is no assurance that it will be able to do so.
There can be no assurance that the objective of any Portfolio will be realized.
See INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS at pages 8-9.
---------------------
THIS PROSPECTUS SETS FORTH CONCISELY THE INFORMATION ABOUT THE FUND THAT A
PROSPECTIVE INVESTOR OUGHT TO KNOW BEFORE INVESTING. READ THIS PROSPECTUS
CAREFULLY AND RETAIN IT FOR FUTURE REFERENCE.
---------------------
ADDITIONAL INFORMATION ABOUT THE FUND HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION AND IS AVAILABLE WITHOUT CHARGE BY CALLING
1-800-487-6669 OR BY SENDING A REQUEST TO: MONY SERIES FUND, INC., 1740
BROADWAY, NEW YORK, NEW YORK 10019. THE STATEMENT OF ADDITIONAL INFORMATION,
DATED MAY 1, 1996, IS INCORPORATED BY REFERENCE INTO THIS PROSPECTUS.
---------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
<PAGE> 151
MONY SERIES FUND, INC.
---------------------
PROSPECTUS
---------------------
NO DEALER, SALESMAN, OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS, AND IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST
NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND OR THE INVESTMENT
ADVISER. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY STATE IN WHICH
SUCH OFFERING MAY NOT LAWFULLY BE MADE.
---------------------
CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PROSPECTUS SUMMARY.................................................................... 1
The Fund............................................................................ 1
The Accounts and the Contracts...................................................... 1
Investment Objectives and Risks of the Portfolios................................... 1
Investment Adviser.................................................................. 2
Investment Management Fees and Expenses............................................. 2
Responsibility for Day-to-Day Management of the Fund................................ 3
Purchase and Redemption of Shares................................................... 3
Financial Highlights................................................................ 3
Financial Highlights Table.......................................................... 4
STRUCTURE OF THE FUND................................................................. 8
INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS.................................. 8
Intermediate Term Bond Portfolio.................................................... 8
Long Term Bond Portfolio............................................................ 9
Government Securities Portfolio..................................................... 9
Money Market Portfolio.............................................................. 10
INVESTMENT RESTRICTIONS APPLICABLE TO THE PORTFOLIOS.................................. 10
Loans of Portfolio Securities....................................................... 11
State Law Restrictions.............................................................. 12
Federal Income Tax Status........................................................... 12
MANAGEMENT OF THE FUND................................................................ 13
Investment Management Arrangements and Expenses..................................... 13
Responsibility for Day-to-Day Management of the Fund................................ 15
Custodian, Transfer Agent, and Dividend Disbursing Agent............................ 15
PURCHASE AND REDEMPTION OF SHARES..................................................... 15
DETERMINATION OF NET ASSET VALUE...................................................... 16
Valuation of Intermediate Term Bond, Long Term Bond, and Government Securities
Portfolios....................................................................... 16
Valuation of Money Market Portfolio................................................. 16
SHARES IN THE FUND.................................................................... 17
Voting Rights....................................................................... 18
Dividends, Distributions, and Taxes................................................. 18
Shareholder Reports and Inquiries................................................... 19
CALCULATION OF PERFORMANCE OF THE PORTFOLIOS.......................................... 19
ADDITIONAL INFORMATION................................................................ 20
Appendix A: Securities in Which the Money Market Portfolio May Currently Invest....... A-1
Appendix B: Debt Ratings.............................................................. B-1
</TABLE>
(i)
<PAGE> 152
PROSPECTUS SUMMARY
The following summary should be read in conjunction with the detailed
information appearing elsewhere in this Prospectus.
THE FUND
MONY Series Fund, Inc. (the "Fund"), a diversified open-end management
investment company, is a Maryland corporation organized on December 14, 1984.
The Fund currently consists of seven (7) separate Portfolios: the Equity Income
Portfolio, the Equity Growth Portfolio, the Intermediate Term Bond Portfolio,
the Long Term Bond Portfolio, the Government Securities Portfolio, the Money
Market Portfolio, and the Diversified Portfolio. Each Portfolio is, for
investment and federal tax purposes, in effect a separate investment fund, and
the Fund will issue a separate class of capital stock for each Portfolio. In
other respects the Fund is treated as one entity. For more detailed information,
see STRUCTURE OF THE FUND at page 8.
THE ACCOUNTS AND THE CONTRACTS
Shares of all Portfolios in the Fund are currently sold to MONY Life
Insurance Company of America ("MONY America") and The Mutual Life Insurance
Company of New York ("MONY") for allocation to MONY America Variable Account L
and MONY Variable Account L to fund benefits under Flexible Premium Variable
Life Insurance Contracts issued by those companies and to those companies for
allocation to MONY America Variable Account A and MONY Variable Account A to
fund benefits under Flexible Payment Variable Annuity contracts issued by those
companies. Shares of all Portfolios, other than the Government Securities
Portfolio, are also sold to the MONY America and MONY for allocation to MONY
America Variable Account S and MONY Variable Account S to fund benefits under
Variable Life Insurance with Additional Premium Option contracts issued by those
companies. In addition, shares of the Fund are sold to MONY for allocation to
Keynote Series Account ("Keynote") to fund benefits under Individual Variable
Annuity Contracts and, until June 24, 1994, were sold to MONY for allocation to
Keynote Series Account to fund benefits under Group Annuity Contracts issued by
MONY. Each Contract holder allocates the net premiums and the assets relating to
these Contracts, within the limitations described in the Contracts, among the
subaccounts of these variable accounts ("Variable Accounts") which in turn are
invested in the corresponding Portfolios of the Fund. Contract holders should
consider that the investment return experience of the Portfolios will affect the
value of the Contracts and may affect the amount of benefits received under the
Contracts. The attached prospectus for the Contracts describes the Contracts and
the relationship between changes in the value of shares of each Portfolio and
changes in the benefits payable under the Contracts. The rights of the Variable
Accounts as shareholders should be distinguished from the rights of a Contract
holder which are described in the contracts. Because the shares of the Fund will
be sold to MONY America and MONY for allocation to the Variable Accounts, the
terms "shareholder" or "shareholders" in this Prospectus refer to those
Companies.
INVESTMENT OBJECTIVES AND RISKS OF THE PORTFOLIOS
Each of the Portfolios seeks to achieve a different investment objective.
Accordingly, each Portfolio can be expected to have different investment results
and to be subject to different financial and market risks and current income
volatility. Financial risk refers to the ability of an issuer of a debt security
to pay principal and interest on that security, and to the earnings stability
and overall financial soundness of an issuer of an equity security. Market risk
refers to the degree to which the price of a security will react to changes in
conditions in securities markets in general and, with particular reference to
debt securities, to changes in the overall level of interest rates. Current
income volatility refers to the degree and rapidity with which changes in the
overall level of interest rates become reflected in the level of current income
of the Portfolios.
The investment objectives and risks of the available Portfolios are:
Intermediate Term Bond Portfolio: The Intermediate Term Bond Portfolio,
having a dollar-weighted average life of between 4 and 8 years, seeks to
maximize income over the intermediate term consistent with
1
<PAGE> 153
preservation of capital. The Portfolio will invest primarily in intermediate
term bonds. The Intermediate Term Bond Portfolio should be subject to relatively
little financial risk and a moderate level of market risk.
Long Term Bond Portfolio: The Long Term Bond Portfolio, having a
dollar-weighted average life of more than 8 years, seeks to maximize income over
the longer term consistent with preservation of capital. The Portfolio will
invest primarily in long term bonds. The Long Term Bond Portfolio should be
subject to relatively little financial risk and a higher level of market risk
than the Intermediate Term Bond Portfolio.
Government Securities Portfolio: The Government Securities Portfolio seeks
to maximize current income over the intermediate term consistent with
preservation of capital, through investment in highly-rated debt securities of
the United States government and its agencies and money market instruments, with
a dollar-weighted average life of up to ten years at the time of purchase. The
Government Securities Portfolio should be subject to relatively little financial
risk and a moderate level of market risk.
Money Market Portfolio: The Money Market Portfolio seeks to maximize
current income consistent with the preservation of capital and the maintenance
of liquidity. The Portfolio will invest primarily in money market instruments.
The Money Market Portfolio should be subject to little market risk or financial
risk but should be subject to a high level of current income volatility.
There can be no assurance that the objectives of any Portfolio will be
realized. For more detailed information, see INVESTMENT OBJECTIVES AND POLICIES
OF THE PORTFOLIOS at pages 8-9 and INVESTMENT RESTRICTIONS APPLICABLE TO THE
PORTFOLIOS at pages 10-11.
INVESTMENT ADVISER
The Investment Adviser of all the Portfolios of the Fund is MONY America, a
wholly-owned subsidiary of MONY. MONY America has entered into a Services
Agreement with MONY for the provision of personnel, equipment, facilities and
other services in order to carry out its duties as investment adviser to the
Fund. For more detailed information, see INVESTMENT MANAGEMENT ARRANGEMENTS AND
EXPENSES at page 13.
INVESTMENT MANAGEMENT FEES AND EXPENSES
MONY America's fee for its investment management services to the Equity
Income, Equity Growth, Intermediate Term Bond, Long Term Bond, Government
Securities, Money Market, and Diversified Portfolios of the Fund is a daily
charge equal to an annual rate of .40 percent of the first $400 million of the
aggregate average daily net assets of those Portfolios, .35 percent of the next
$400 million of the aggregate average daily net assets of those Portfolios, and
.30 percent of the aggregate average daily net assets of those Portfolios in
excess of $800 million. MONY America has agreed to bear all expenses associated
with organizing the Fund, the initial registration of its securities, the
calculation of the net asset value of the Portfolios, and the compensation of
the Fund's directors, officers and employees who are interested persons of MONY
America. All other expenses will be borne by the Fund, subject to certain
limitations imposed by state law. For more detailed information, see INVESTMENT
MANAGEMENT ARRANGEMENTS AND EXPENSES at page 13.
RESPONSIBILITY FOR DAY-TO-DAY MANAGEMENT OF THE FUND
Day to day management of all the Portfolios of the Fund are undertaken by a
committee of MONY America, investment adviser to the Fund.
PURCHASE AND REDEMPTION OF SHARES
Shares in each of the Portfolios are offered continuously to MONY and MONY
America for allocation to the Variable Accounts at prices equal to their
respective net asset values per share, without the imposition of an additional
sales charge at the Fund level. The shares' redemption prices are also equal to
their respective net asset values per share as next determined after the receipt
of proper notice of redemption. For more detailed information, see DETERMINATION
OF NET ASSET VALUE at page 16.
2
<PAGE> 154
FINANCIAL HIGHLIGHTS
Set forth on the following pages are highlights of the operations of each
Portfolio of the Fund. Additional financial information is contained in the
Statement of Additional Information of the Fund and in the Annual Report of the
Fund, both of which are available, free of charge, by contacting the Fund at the
address or at the telephone number set forth on the cover of this Prospectus.
The Annual Report also contains a discussion of the performance of the Fund
during 1995 as well as line graphs which depict the value at inception and for
each year subsequent to inception of a $10,000 investment made in each Portfolio
of the Fund. These graphs also depict the performance of an investment over the
same period in securities which comprise a broad based, unmanaged securities
market index.
3
<PAGE> 155
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................... $ 9.75 $ 10.51 $ 10.33 $ 10.22 $ 9.69 $ 9.85
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.63 0.60 0.47 0.59 0.77 0.84
Net gains (losses) on investments
(both realized and unrealized)... 0.82 (0.76) 0.34 0.11 0.71 (0.16)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations..................... 1.45 (0.16) 0.81 0.70 1.48 0.68
Less distributions
Dividends (from net investment
income).......................... (0.63) (0.60) (0.47) (0.59) (0.77) (0.84)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.16) 0.00* 0.00 0.00
Distributions (from additional
paid-in capital)................. 0.00 0.00 0.00 0.00 (0.18) 0.00
----------- ----------- ----------- ----------- ----------- -----------
Total distributions............. (0.63) (0.60) (0.63) (0.59) (0.95) (0.84)
Net asset value, end of year........ $ 10.57 $ 9.75 $ 10.51 $ 10.33 $ 10.22 $ 9.69
=========== =========== =========== =========== =========== ===========
Total return.................... 14.82% (1.52%) 7.84% 6.85% 15.27% 6.90%
Ratios/Supplemental Data
Net assets, end of year............. $37,519,833 $32,283,693 $31,326,168 $20,911,161 $22,005,519 $20,260,361
Ratio of net investment income to
average net assets................. 6.10% 5.66% 5.26% 6.24% 7.88% 8.52%
Ratio of expenses to average net
assets............................. 0.49% 0.52% 0.52% 0.53% 0.51% 0.54%
Portfolio turnover rate............. 32.07% 25.41% 50.61% 62.27% 55.03% 20.06%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------
1989 1988 1987 1986
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of
year............................... $ 9.63 $ 9.93 $ 12.15 $ 11.92
----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.90 0.86 0.89 0.98
Net gains (losses) on investments
(both realized and unrealized)... 0.22 (0.29) (0.88) 0.47
----------- ----------- ----------- -----------
Total from investment
operations..................... 1.12 0.57 0.01 1.45
Less distributions
Dividends (from net investment
income).......................... (0.90) (0.87) (1.59) (1.12)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.64) (0.10)
Distributions (from additional
paid-in capital)................. 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions............. (0.90) (0.87) (2.23) (1.22)
Net asset value, end of year........ $ 9.85 $ 9.63 $ 9.93 $ 12.15
=========== =========== =========== ===========
Total return.................... 11.63% 5.74% 0.08% 12.16%
Ratios/Supplemental Data
Net assets, end of year............. $20,419,237 $23,192,883 $25,217,761 $27,051,933
Ratio of net investment income to
average net assets................. 8.67% 8.43% 8.18% 8.34%
Ratio of expenses to average net
assets............................. 0.60% 0.55% 0.60% 0.60%
Portfolio turnover rate............. 30.99% 24.77% 32.23% 81.92%
</TABLE>
- ---------------
* Less than $.01 per share.
4
<PAGE> 156
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................... $ 10.47 $ 12.05 $ 11.19 $ 11.03 $ 10.47 $ 10.70
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.74 0.84 0.50 0.81 0.72 0.90
Net gains (losses) on investments
(both realized and unrealized)... 2.41 (1.58) 1.09 0.16 1.12 (0.23)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations..................... 3.15 (0.74) 1.59 0.97 1.84 0.67
Less distributions
Dividends (from net investment
income).......................... (0.74) (0.84) (0.50) (0.74) (0.72) (0.90)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.23) 0.00* (0.37) 0.00
Distributions (from additional
paid-in capital)................. 0.00 0.00 0.00 (0.07) (0.19) 0.00
----------- ----------- ----------- ----------- ----------- -----------
Total distributions............. (0.74) (0.84) (0.73) (0.81) (1.28) (0.90)
Net asset value, end of year........ $ 12.88 $ 10.47 $ 12.05 $ 11.19 $ 11.03 $ 10.47
=========== =========== =========== =========== =========== ===========
Total return.................... 30.04% (6.14%) 14.21% 8.79% 17.57% 6.26%
Ratios/Supplemental Data
Net assets, end of year............. $62,017,889 $44,012,329 $63,044,619 $29,564,159 $23,207,734 $20,532,817
Ratio of net investment income to
average net assets................. 6.58% 6.45% 5.69% 7.71% 8.12% 8.72%
Ratio of expenses to average net
assets............................. 0.48% 0.49% 0.48% 0.51% 0.51% 0.53%
Portfolio turnover rate............. 79.45% 110.19% 45.93% 0.17% 63.68% 27.49%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------
1989 1988 1987 1986
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of
year............................... $ 9.97 $ 10.28 $ 12.87 $ 12.32
----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.96 0.96 0.92 1.02
Net gains (losses) on investments
(both realized and unrealized)... 0.73 (0.10) (1.11) 0.81
----------- ----------- ----------- -----------
Total from investment
operations..................... 1.69 0.86 (0.19) 1.83
Less distributions
Dividends (from net investment
income).......................... (0.96) (1.17) (1.58) (0.91)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.82) (0.37)
Distributions (from additional
paid-in capital)................. 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions............. (0.96) (1.17) (2.40) (1.28)
Net asset value, end of year........ $ 10.70 $ 9.97 $ 10.28 $ 12.87
=========== =========== =========== ===========
Total return.................... 16.95% 8.37% (1.48%) 14.85%
Ratios/Supplemental Data
Net assets, end of year............. $20,770,552 $23,840,760 $26,798,016 $28,623,485
Ratio of net investment income to
average net assets................. 8.54% 9.04% 8.44% 8.27%
Ratio of expenses to average net
assets............................. 0.64% 0.54% 0.60% 0.60%
Portfolio turnover rate............. 36.00% 42.79% 128.24% 68.77%
</TABLE>
- ---------------
* Less than $.01 per share.
5
<PAGE> 157
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............... 0.05 0.03 0.01 0.03 0.06 0.07
Less distributions
Dividends (from net investment
income)............................ (0.05) (0.03) (0.01) (0.03) (0.06) (0.07)
------------ ----------- ----------- ----------- ----------- -----------
Net asset value, end of year.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ =========== =========== =========== =========== ===========
Total return...................... 5.57% 5.33% 2.75% 3.31% 5.60% 7.22%
Ratios/Supplemental Data
Net assets, end of year............... $110,366,978 $83,352,731 $65,474,860 $50,892,593 $34,642,974 $26,924,389
Ratio of net investment income to
average net assets.................. 5.30% 3.77% 2.62% 3.17% 5.80% 7.63%
Ratio of expenses to average net
assets.............................. 0.46% 0.49% 0.46% 0.48% 0.54% 0.54%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------
1989 1988 1987 1986
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year.... $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ---------- ---------- ----------
Income from investment operations
Net investment income............... 0.08 0.07 0.05 0.05
Less distributions
Dividends (from net investment
income)............................ (0.08) (0.07) (0.05) (0.05)
----------- ---------- ---------- ----------
Net asset value, end of year.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========== ==========
Total return...................... 8.20% 6.56% 5.34% 5.26%
Ratios/Supplemental Data
Net assets, end of year............... $10,817,623 $4,552,241 $2,883,644 $2,271,034
Ratio of net investment income to
average net assets.................. 8.06% 6.77% 5.36% 5.23%
Ratio of expenses to average net
assets.............................. 0.92% 1.08% 1.50% 1.50%
</TABLE>
6
<PAGE> 158
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE
PERIOD
MAY 1, 1991**
FOR THE YEARS ENDED DECEMBER 31, THROUGH
------------------------------------------------------ DECEMBER 31,
1995 1994 1993 1992 1991
--------- --------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................... $ 9.51 $ 9.72 $ 9.66 $ 10.70 $ 10.00
---------- ---------- ----------- ----------- -----------
Income from investment operations
Net investment income................................ 0.34 0.05 0.52 1.00 0.27
Net gains (losses) on investments (both realized and
unrealized)......................................... 0.70 (0.21) 0.27 (0.25) 0.70
---------- ---------- ----------- ----------- -----------
Total from investment operations.................. 1.04 (0.16) 0.79 0.75 0.97
Less distributions
Dividends (from net investment income)............... (0.34) (0.05) (0.52) (1.00) (0.27)
Distributions (from realized capital gains).......... (0.00)* 0.00 (0.21) (0.79) 0.00
Distributions (in excess of realized capital
gains).............................................. (0.00) 0.00 0.00* 0.00 0.00
---------- ---------- ----------- ----------- -----------
Total distributions............................... (0.34) (0.05) (0.73) (1.79) (0.27)
Net asset value, end of period......................... $ 10.21 $ 9.51 $ 9.72 $ 9.66 $ 10.70
========== ========== =========== =========== ===========
Total return...................................... 10.89% (2.68%)++ 8.18% 7.01% 9.70%+
Ratios/Supplemental Data
Net assets, end of period.............................. $8,555,893 $1,204,231 $20,036,097 $19,096,791 $42,235,195
Ratio of net investment income to average net assets... 6.10% 5.43%++ 5.06% 6.25% 5.75%++
Ratio of expenses to average net assets................ 0.74% 0.57%++ 0.53% 0.50% 0.43%++
Portfolio turnover rate................................ 0.28% 7.82% 41.01% 28.28% 151.81%
</TABLE>
- ---------------
* Less than $.01 per share.
** Commencement of operations.
+ Average annual.
++ Annualized since Portfolio was dormant from June 24, 1994 to November 18,
1994.
++ Annualized.
7
<PAGE> 159
STRUCTURE OF THE FUND
The Fund, a Maryland corporation organized on December 14, 1984, currently
is composed of seven different Portfolios that are, in effect, separate
investment funds: the Equity Income Portfolio, the Equity Growth Portfolio, the
Intermediate Term Bond Portfolio, the Long Term Bond Portfolio, the Government
Securities Portfolio, the Money Market Portfolio, and the Diversified Portfolio.
Until November 18, 1994, the Government Securities Portfolio had been known as
the Intermediate Government Bond Portfolio. The Fund issues a separate class of
capital stock for each Portfolio. Each share of capital stock issued with
respect to a Portfolio will have a pro-rata interest in the assets of that
Portfolio and will have no interest in the assets of any other Portfolio. Each
Portfolio bears its own liabilities and also its proportionate share of the
general liabilities of the Fund. The Fund is registered under the Investment
Company Act of 1940 (the "1940 Act") as an open-end, diversified, management
investment company. This registration does not imply any supervision by the
Securities and Exchange Commission over the Fund's management or its investment
policies or practices.
Shares of the Fund allocated to Keynote were presented for redemption in
kind on June 24, 1994. This redemption is as a result of the sale by MONY of its
group pension operation to AEGON USA, Inc. ("AEGON") and the transfer of group
annuity contracts, the purchase payments for which are allocated to Keynote, to
a wholly-owned life insurance subsidiary of AEGON. As a part of the agreement of
sale, shares of another series mutual fund were substituted for shares of the
Fund allocated to Keynote.
INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS
Each Portfolio of the Fund has a different investment objective which it
pursues through separate investment policies as described below. Since each
Portfolio has a different investment objective, each can be expected to have
different investment results and incur different market and financial risks. The
Fund may in the future establish other Portfolios with different investment
objectives.
The investment objectives of each Portfolio are fundamental and may not be
changed without the approval of the holders of a majority of the outstanding
shares of the Portfolio affected (which for this purpose and under the 1940 Act
means the lesser of (i) 67 percent of the Portfolio shares represented at a
meeting at which more than 50 percent of the outstanding Portfolio shares are
represented or (ii) more than 50 percent of the outstanding Portfolio shares).
The policies by which a Portfolio seeks to achieve its investment objectives,
however, are not fundamental. They may be changed by the Board of Directors of
the Fund without shareholder approval.
Each Portfolio has a different portfolio turnover rate which is the
percentage computed by dividing the lesser of portfolio purchases or sales by
the average value of the Portfolio, in each case excluding securities with
maturities at the time of acquisition of one year or less. Brokerage expenses
can be expected to be higher as a result of higher turnover rates. The rate of
portfolio turnover is not a limiting factor when it is deemed appropriate to
purchase or sell securities of a Portfolio.
There is no guarantee that any of the objectives of any Portfolio will be
met. The following paragraphs describe the investment objectives, policies and
portfolio turnover rates of each available Portfolio.
INTERMEDIATE TERM BOND PORTFOLIO
The objective of the Intermediate Term Bond Portfolio is to maximize income
over the intermediate term consistent with preservation of capital.
The Intermediate Term Bond Portfolio seeks to achieve this objective by
following the policy of investing in (i) debt securities which, at the time of
purchase, have a rating within the four highest grades as determined by either
Moody's Investors Service, Inc. or Standard & Poor's Corporation as described in
Appendix B; (ii) obligations of the U.S. Government, its agencies or
instrumentalities; and (iii) high-quality, short-term obligations as described
in Appendix A. The Intermediate Term Bond Portfolio will be managed so as to
maintain a dollar-weighted average life of between 4 and 8 years.
8
<PAGE> 160
Since the value of fixed income securities generally fluctuates inversely
with changes in interest rates, the average life of the Intermediate Term Bond
Portfolio will vary to reflect the Investment Adviser's assessment of
prospective changes in interest rates, so that the Intermediate Term Bond
Portfolio may benefit from relative price appreciation when interest rates
decline and may protect capital value when interest rates rise. The success of
this strategy will depend on the Investment Adviser's ability to forecast
changes in interest rates, and there is a corresponding risk that the value of
the securities held in the Portfolio will decline. Because of their relatively
shorter maturities, the value of the bonds in this Portfolio will be less
sensitive to changes in interest rates than the longer-term bonds held in the
Long Term Bond Portfolio and similar to the bonds held in the Government
Securities Portfolio. Thus, compared to the Long Term Bond Portfolio, there will
be less of a risk that the value of the securities held in the Intermediate Term
Bond Portfolio will decline, but not as much of a likelihood for greater
appreciation in value. Compared to the Government Securities Portfolio, there
will be a similar risk that the value of the securities held in the Intermediate
Term Bond Portfolio will decline and a similar likelihood for appreciation in
value.
The annual portfolio turnover rate of the Intermediate Term Bond Portfolio
is not likely to exceed 100%.
LONG TERM BOND PORTFOLIO
The objective of the Long Term Bond Portfolio is to maximize income over
the longer term consistent with preservation of capital.
The Long Term Bond Portfolio seeks to achieve this objective by following
the policy of investing in
(i) debt securities which, at the time of purchase, have a rating within the
four highest grades as determined by either Moody's Investors Service, Inc. or
Standard & Poor's Corporation as described in Appendix B; (ii) obligations of
the U.S. Government, its agencies or instrumentalities; and (iii) high-quality,
short-term obligations as described in Appendix A. The Long Term Bond Portfolio
will be managed so as to maintain a dollar-weighted average life in excess of 8
years.
Since the value of fixed income securities generally fluctuates inversely
with changes in interest rates, the average life of the Long Term Bond Portfolio
will vary to reflect the Investment Adviser's assessment of prospective changes
in interest rates, so that the Long Term Bond Portfolio may benefit from
relative price appreciation when interest rates decline and may protect capital
value when interest rates rise. The success of this strategy will depend on the
Investment Adviser's ability to forecast changes in interest rates, and there is
a corresponding risk that the value of the securities held in the Long Term Bond
Portfolio will decline. Because of their relatively longer maturities, the value
of the bonds in this Portfolio will be more sensitive to changes in interest
rates than the relatively shorter-term bonds held in the Intermediate Term Bond
Portfolio and the Government Securities Portfolio. Thus, compared to the
Intermediate Term Bond Portfolio and the Government Securities Portfolio, there
will be more of a risk that the value of securities held in the Long Term Bond
Portfolio will decline, but more of a likelihood for greater appreciation in
value.
The annual portfolio turnover rate of the Long Term Bond Portfolio is not
likely to exceed 100 percent.
GOVERNMENT SECURITIES PORTFOLIO
The primary objective of the Government Securities Portfolio is to maximize
income over the intermediate term consistent with preservation of capital.
The Government Securities Portfolio will seek to achieve this objective by
following a policy of investing in highly-rated debt securities of the United
States government and its agencies; and money market instruments. The Government
Securities Portfolio will be managed so as to maintain a dollar-weighted average
life of up to ten years at time of purchase.
Since the value of fixed income securities generally fluctuates inversely
with changes in interest rates, the average life of the Government Securities
Portfolio will vary to reflect the Investment Adviser's assessment of
prospective changes in interest rates, so that the Government Securities
Portfolio may benefit from relative price appreciation when interest rates
decline and may protect capital value when interest rates rise. The success of
this strategy will depend on the Investment Adviser's ability to forecast
changes in interest rates,
9
<PAGE> 161
and there is a corresponding risk that the value of the securities held in the
Government Securities Portfolio will decline. Because of their relatively
shorter maturities, the value of the bonds in this Portfolio will be less
sensitive to changes in interest rates than the relatively longer-term bonds
held in the Long Term Bond Portfolio. Because of the relatively similar
maturities, the value of the bonds in this Portfolio will be similar to changes
in interest rates in the Intermediate Term Bond Portfolio. Thus, compared to the
Long Term Bond Portfolio, there will be less of a risk that the value of
securities held in the Government Securities Portfolio will decline, but not as
much of a likelihood for greater appreciation in value. Compared to the
Intermediate Term Bond Portfolio, there will be a similar risk that the value of
securities held in the Government Securities Portfolio will decline and a
similar likelihood for appreciation in value.
The annual portfolio turnover rate of the Government Securities Portfolio
is not likely to exceed 100 percent. For 1991, the portfolio turnover rate
exceeded 100 percent. The Government Securities Portfolio commenced operation on
May 1, 1991. On June 24, 1994, the Keynote Series Account requested redemption
of all shares of this Portfolio. Effective on and after November 18, 1994,
shares of the Portfolio will be offered to MONY America and MONY for allocation
to MONY America Variable Account A and MONY Variable Account A to fund Flexible
Payment Variable Annuity Contracts issued by those companies. As this Portfolio
is, in effect, a start-up fund, a larger than normal number of transactions can
be expected as the fund matures, and, therefore, the additional transaction
expenses associated with high portfolio turnover rates may adversely impact
purchasers of this Portfolio's shares.
MONEY MARKET PORTFOLIO
The objective of the Money Market Portfolio is to maximize current income
consistent with the preservation of capital and maintenance of liquidity.
The Money Market Portfolio seeks to achieve this objective by following the
policy of investing primarily in money market instruments denominated in U.S.
dollars that mature in one year or less from the date the Money Market Portfolio
acquires them. Money market instruments include short-term obligations of the
U.S. Government, its agencies or instrumentalities, of domestic corporations and
of banks. They also include commercial paper and other corporate obligations.
The Money Market Portfolio may also enter into repurchase and reverse repurchase
agreements. A detailed description of the money market instruments in which the
Money Market Portfolio may invest, of the repurchase and reverse repurchase
agreements it may enter into, and of the risks associated with those instruments
and agreements may be found in Appendix A. The dollar-weighted average life to
maturity of the securities held by the Money Market Portfolio is expected to be
less than 90 days.
Because of the high-quality, short-term nature of the Money Market
Portfolio's holdings, increases in the value of an investment in the Portfolio
will be derived almost entirely from interest on the securities held by it.
The Money Market Portfolio will attempt, consistent with preservation of
capital, to achieve the highest possible yield from its investments. Yield with
respect to the Money Market Portfolio normally will fluctuate, sometimes
substantially, on a daily basis and is affected by changes in interest rates on
money market instruments, average portfolio maturities, the type and quality of
portfolio securities held, and the expenses of the Money Market Portfolio.
Therefore, the yield for any given past period should not be considered as
representative of the yield for any future period.
Because of the short term nature of the securities in which the Money
Market Portfolio will invest, and because the Portfolio's investments will be
constantly changing in response to market conditions, an annual portfolio
turnover rate for the Money Market Portfolio would not be meaningful and will
not be determined. The Rules of the Securities and Exchange Commission reflect
that such calculations would not be meaningful and, therefore, do not require
calculation of turnover rates for securities with a maturity of one year or
less.
INVESTMENT RESTRICTIONS APPLICABLE TO THE PORTFOLIOS
The Fund has adopted restrictions relating to the investment of assets of
the Portfolios and their activities. The investment restrictions are fundamental
policies and may not be changed without the approval of a
10
<PAGE> 162
majority vote of the outstanding shares (as defined above at page 8) of each of
the Portfolios affected. (See VOTING RIGHTS at page 18.) These investment
restrictions, which apply to the Fund's seven current Portfolios, may be
different for any new portfolios that the Fund may create in the future.
Some of the Fund's investment restrictions have the effect of limiting
certain practices, while, however, allowing a portion of a Portfolio's net
assets to be at risk. These investment restrictions are:
1. The Portfolios will not purchase real estate or real estate
mortgages, except that the right is reserved for each Portfolio to purchase
and sell securities which are secured by real estate or real estate
mortgages and securities of real estate investment trusts or other issuers
that invest or deal in the foregoing. This restriction does not apply to
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities. This restriction does not prohibit the Fund in the
future from establishing one or more real estate portfolios.
2. Loans, both short and long term, may be made by a Portfolio only
through the purchase or acquisition of privately placed bonds, debentures,
notes or other evidences of indebtedness that may or may not be convertible
into stock of a type customarily acquired by institutional investors,
provided, however, that no such purchase or acquisition will be made if, as
a result thereof, more than 10 percent of the value of the Portfolio's
assets would be so invested. Repurchase agreements are not subject to this
restriction.
3. Borrowing of money will not be made by any Portfolio, except as a
temporary position for emergency purposes (to facilitate redemptions but
not for leveraging or for investment) and then only from banks in an amount
not exceeding 10 percent of the value of a Portfolio's assets (including
the amount borrowed) less liabilities (not including the amount borrowed as
a result of the borrowing) at the time such borrowing is made, and during
any period when outstanding indebtedness for money borrowed shall exceed 5
percent of the value of its total assets, the Portfolio will make no
purchases of securities.
4. In general, the Portfolios will not invest more than 10 percent of
any Portfolio's total assets in illiquid assets, including illiquid
restricted securities, repurchase agreements maturing in more than seven
days, and nonnegotiable time deposits maturing in more than seven days.
More detailed information about these investment restrictions, as well as
other investment restrictions applicable to the Portfolios, is contained in the
Statement of Additional Information (INVESTMENT RESTRICTIONS). In addition, the
Fund intends to comply with the various requirements of the Internal Revenue
Code to qualify as a "regulated investment company" under the Code. For a
description of these requirements see FEDERAL INCOME TAX STATUS on page 12.
LOANS OF PORTFOLIO SECURITIES
Each Portfolio may from time to time lend the securities it holds to
broker-dealers, provided that the aggregate value of the securities so lent by
any Portfolio does not exceed 10 percent of the value of that Portfolio's assets
and further provided that such loans are made pursuant to written agreements and
are continuously secured by collateral in the form of cash, U.S. Government
securities, or irrevocable standby letters of credit in an amount equal to at
least the market value at all times of the loaned securities plus the accrued
interest and dividends. During the time securities are on loan, the Portfolio
will continue to receive the interest and dividends, or amount equivalent
thereto, on the loaned securities while receiving a fee from the borrower or
earning interest on the investment of the cash collateral. The right to
terminate the loan will be given to either party subject to appropriate notice.
Upon termination of the loan, the borrower will return to the lender securities
identical to the loaned securities. The Portfolio will not have the right to
vote securities on loan, but would terminate the loan and retain the right to
vote if that were considered important with respect to the investment.
The primary risk in lending securities is that the borrower may become
insolvent on a day on which the loaned security is rapidly advancing in price.
In such event, if the borrower fails to return the loaned securities, the
existing collateral might be insufficient to purchase back the full amount of
the security loaned, and the borrower would be unable to furnish additional
collateral. The borrower would be liable for any shortage; but
11
<PAGE> 163
the Portfolio would be an unsecured creditor with respect to such shortage and
might not be able to recover all or any of it. However, this risk may be
minimized by a careful selection of borrowers and securities to be lent and by
monitoring collateral.
No Portfolio will lend securities to broker-dealers affiliated with the
Fund or MONY. This will not affect the Fund's ability to maximize a Portfolio's
securities lending opportunities.
STATE LAW RESTRICTIONS
The investments of Keynote and the MONY Variable Accounts, and the MONY
America Variable Accounts are subject to the provisions of the New York and
Arizona insurance law, respectively, applicable to the investments of life
insurance company separate accounts. Although these state law investment
restrictions do not apply directly to the Fund, the Portfolios will comply,
without the approval of shareholders, with such statutory requirements, as they
exist or may be amended.
Under pertinent provisions of New York law, as they currently exist, the
assets of Keynote and the MONY Variable Accounts may be invested in any
investments (1) permitted by agreement between these Variable Accounts and their
Contract holders and (2) acquired in good faith and with that degree of care in
acquiring investments that an ordinarily prudent person in a like position would
use under similar circumstances. The only agreement with Contract holders
pertaining to investments permitted for the Variable Accounts is as described in
the prospectuses for the Contracts, namely that the Variable Accounts will
invest only in shares of the Fund. The investment of the assets of the Fund are
subject to the investment objectives, policies and restrictions applicable to
the Portfolios, as described in this Prospectus (see INVESTMENT OBJECTIVES AND
POLICIES OF THE PORTFOLIOS at page 8 and INVESTMENT RESTRICTIONS APPLICABLE TO
THE PORTFOLIOS at page 10) and in the Statement of Additional Information
(INVESTMENT RESTRICTIONS).
The pertinent provisions of Arizona law, as they currently exist, are in
summary form as follows:
The assets of variable accounts established by MONY America may be invested
in any investments that are of the kind permitted and that satisfy the
qualitative requirements, but without regard to quantitative restrictions.
Bonds, debentures, notes, commercial paper and other evidences of indebtedness,
and preferred, guaranteed or preference stocks must have received an investment
grade rating approved by the Director of Insurance. Funds may not be invested in
foreign banks (other than foreign branches of domestic banks) except that
investments may be made in obligations issued, assumed or guaranteed by the
International Bank for Reconstruction and Development. Investments not otherwise
permitted under Arizona law may be made in an amount not exceeding in the
aggregate 10 percent of assets and not exceeding 2 percent of assets as to any
one such investment.
Although compliance with New York and Arizona laws described above will
ordinarily result in compliance with any applicable laws of other states, under
some circumstances the laws of other states could impose additional
restrictions. Accordingly, if any state or other jurisdiction in which the
Variable Accounts propose to do business imposes limits applicable to the
Variable Accounts, in addition to any imposed by New York and Arizona law, the
Fund will comply with such further investment limits.
FEDERAL INCOME TAX STATUS
The Fund and each of its Portfolios intend to qualify as "regulated
investment companies" under the applicable provisions of the Internal Revenue
Code of 1986, as amended (the "Code"). To qualify for treatment as regulated
investment companies, the Fund and each of its Portfolios must, among other
things, satisfy the following requirements:
1. At least 90 percent of the gross income of each of the Portfolios
must be derived from dividends, interest, payments with respect to
securities loans (as defined in section 512(a)(5) of the Code), and gains
from the sale or other disposition of stock or securities (as defined in
section 2(a)(36) of the Investment Company Act of 1940, as amended) or
foreign currencies, or other income (including but not limited to gains
from options, futures, or forward contracts) derived with respect to its
business of
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investing in such stock, securities or currencies. For purposes of meeting
this requirement, foreign currency gains which are not ancillary to the
Portfolio's principal business of investing in stock or securities (or
options and futures with respect to stock or securities) may be excluded
from qualifying income.
2. Each Portfolio must derive less than 30 percent of its gross income
in each taxable year from the sale or other disposition of stock,
securities held for less than 3 months, options, futures, forward
contracts, or foreign currency gains not related to a Portfolio's principal
business of investing in stock or securities. No portfolio will be
disqualified under this test by reason of sales resulting from abnormal
redemptions on any day occurring before the close of the fifth business day
after such day if the sum of the percentages of assets redeemed, for any
day on which such percentage exceeds 1% for the day in question and any
prior day in the taxable year exceeds 30% and the Fund would meet this test
if all its portfolios were treated as a single company.
3. At the close of each calendar quarter, at least 50 percent of the
value of the total assets of each of the Portfolios must be represented by
cash and cash items (including receivables), Government securities,
securities of other regulated investment companies, and other securities
(limited for each portfolio in respect of any one issuer, to an amount not
greater in value than 5 percent of the value of the total assets of that
Portfolio and to not more than 10 percent of the outstanding voting
securities of the issuer).
4. At the close of each calendar quarter, no more than 25 percent of
the value of the total assets of each of the Portfolios may be invested in
the securities of any one issuer except that this limitation shall not
apply to Government securities or securities of other regulated investment
companies. In addition, at the close of each calendar quarter, no more than
25 percent of the value of the total assets of each of the Portfolios may
be invested in the securities of 2 or more issuers which the Portfolio
controls and which are engaged in the same or similar trades or businesses.
For substantially all federal income tax purposes, each Portfolio of the
Fund is a separate entity. This means that the investment results of each
Portfolio will be calculated separately from those of the other Portfolios for
purposes of determining whether each Portfolio qualifies as a regulated
investment company and for purposes of determining the net ordinary income (or
loss) and net realized capital gains (or losses).
For information regarding the federal income tax implications of the Fund
and its Portfolios qualifying as a regulated investment company, see DIVIDENDS,
DISTRIBUTIONS AND TAXES at pages 18.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury Regulations currently in effect. For the
complete provisions, reference should be made to the pertinent Code Sections and
Treasury Regulations. The Code and these Regulations are subject to change by
legislative, administrative or judicial actions.
MANAGEMENT OF THE FUND
The Board of Directors of the Fund is responsible for the management of the
business of the Fund under the laws of the State of Maryland, and it is
primarily responsible for reviewing the activities of the investment adviser.
INVESTMENT MANAGEMENT ARRANGEMENTS AND EXPENSES
The Fund has entered into an Investment Advisory Agreement with MONY
America under which MONY America will carry on the overall day-to-day management
of the Equity Income, Equity Growth, Intermediate Term Bond, Long Term Bond,
Government Securities, Money Market, and Diversified Portfolios of the Fund, and
provide investment advice and related services for each of those Portfolios. If
the Fund creates new portfolios in the future, MONY America may be appointed to
act as investment adviser and manager for those portfolios, as well, or the Fund
may appoint a different investment adviser for any new portfolio.
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MONY America receives an investment management fee as compensation for its
services to the Equity Income, Equity Growth, Intermediate Term Bond, Long Term
Bond, Government Securities, Money Market, and Diversified Portfolios of the
Fund. The fee is a daily charge equal to an annual rate of .40 percent of the
first $400 million of the aggregate average daily net assets of those
Portfolios, .35 percent of the next $400 million of the aggregate average daily
net assets of those Portfolios, and .30 percent of the aggregate average daily
net assets of those Portfolios in excess of $800 million. Each daily charge for
the fee is divided among those Portfolios in proportion to their net assets on
that date. MONY America has agreed to bear all expenses (i) for the Fund's
organization, (ii) related to initial registration and qualification under
federal and state securities laws, (iii) associated with calculating net asset
value of the Portfolios, and (iv) for compensation of the Fund's directors,
officers and employees who are interested persons (as defined by the 1940 Act)
of MONY America. All other expenses will be borne by the Fund, including any
extraordinary or non-recurring expenses. With respect to the expenses of
preparing, printing and mailing prospectuses, see PURCHASE AND REDEMPTION OF
SHARES at page 15. MONY America has agreed to reimburse the Fund for the amount,
if any, by which the aggregate ordinary operating expenses of any Portfolio in
any calendar year exceed the most restrictive expense limitations then in effect
under any state securities law or regulations. Under the most restrictive state
regulations currently in effect, the Adviser would be required to reimburse the
Fund for investment management fees received by the Adviser from the Fund, to
the extent that any Portfolio's aggregate ordinary operating expense (excluding
interest, taxes, brokerage fees and commissions, and extraordinary charges such
as litigation costs) exceed in any fiscal year 2.5 percent of the first
$30,000,000 of average daily net assets of such Portfolio, 2.0 percent of the
next $70,000,000 of average daily net assets of such Portfolio, and 1.5 percent
of the average daily net assets of such Portfolio in excess of $100,000,000. No
fee payments would be made to MONY America with respect to any Portfolio during
any calendar year to the extent that those payments would cause that Portfolio's
expenses to exceed the expense limitations applicable to the Portfolio.
MONY America, a wholly-owned subsidiary of MONY, is registered as an
investment adviser under the Investment Advisers Act of 1940 and, prior to
registration in 1985, had not performed services as an investment adviser. MONY
America has entered into a Services Agreement with MONY to provide it with
personnel, services, facilities, supplies, and equipment in order to carry out
many of its duties to provide investment management services under the
Investment Advisory Agreement. MONY America pays MONY for such services.
Because the Investment Advisory Agreement and the Services Agreement are
interrelated and dependent on each other, MONY may be deemed to be an investment
adviser of the Fund for certain federal regulatory purposes. MONY is registered
as an investment adviser under the Investment Advisers Act of 1940. Its
principal business address, as well as that of the Investment Adviser, is 1740
Broadway, New York, New York 10019.
Although MONY America's lack of previous experience in advising a mutual
fund might be considered a risk factor, it is anticipated that many of MONY
America's duties will be carried out by MONY and its personnel under the
Services Agreement and therefore MONY's experience as an investment manager
should also be considered. MONY is a mutual life insurance company organized
under the laws of New York in 1842 and licensed to do business in all fifty
states, the District of Columbia, Puerto Rico, the Virgin Islands and certain
Canadian provinces. MONY manages the investment of assets held in its own
general account, various separate accounts established by MONY, and the assets
of its employee thrift plan trust. From 1969 to 1981, MONY provided investment
advisory services to MONY Advisers, Inc. (a wholly-owned subsidiary of MONY)
which acted as investment adviser to The MONY Fund, Inc., a registered
diversified open-end management investment company. As of December 31, 1995,
total assets under management in the accounts managed by MONY were approximately
$18.9 billion and included common stocks with a value of approximately $773
million, long and medium term publicly-traded fixed income securities with a
value of approximately $6.5 billion, and short-term debt obligations with a
value of approximately $593 million. The size of the accounts and portfolios
managed by MONY or its personnel does not assure that a shareholder of the Fund
will realize any gain or be protected from any loss.
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The Investment Advisory Agreement was initially approved by the Fund's
Board of Directors, including a majority of the non-interested directors (as
defined by the 1940 Act), on January 2, 1985 and continuance for an additional
year was most recently approved on February 8, 1996. The Services Agreement was
similarly approved on January 2, 1985 and continuance for an additional year was
most recently approved by the Fund's Board of Directors on February 8, 1996.
Both Agreements will continue in effect if approved annually by (1) a majority
of the non-interested directors (as defined by the 1940 Act) of the Fund's Board
of Directors, and (2) a majority of the entire Board of Directors or a majority
vote of the voting shares of each Portfolio. If a majority of the voting shares
of any Portfolio vote to approve both Agreements, they will remain in effect
with respect to that Portfolio, even if they are not approved by a majority of
the voting shares of any other Portfolio or by a majority of the voting shares
of the entire Fund. The Agreements are not assignable. The Investment Advisory
Agreement may be terminated without penalty upon 60 days' notice by the Fund's
Board of Directors or by a majority vote of its shareholders, and upon 90 days'
notice by the Investment Adviser. The Services Agreement may be terminated
without penalty upon 60 days' notice by either party.
MONY America and MONY serve as investment managers or advisers in managing
their own assets and, in the case of MONY, the assets of separate accounts and
certain of its subsidiaries. In the future, MONY America and MONY may serve as
investment manager or adviser to other investment companies. When investment
opportunities arise that may be appropriate for more than one account or entity
for which MONY America or MONY serves as investment manager or adviser,
including for their own accounts, MONY America or MONY and their personnel will
not favor one over another and may allocate investments among them in an
impartial manner believed to be equitable to each entity involved. The
allocations will be based on each entity's investment objectives and its current
cash and investment positions. Because the various entities for which MONY
America or MONY acts or may act as investment manager or adviser, including for
their own accounts, have different investment objectives and positions, MONY
America or MONY may from time to time buy a particular security for one or more
such entities while at the same time it sells such securities for another.
RESPONSIBILITY FOR DAY-TO-DAY MANAGEMENT OF THE FUND
As investment adviser, MONY America is responsible for the day-to-day
management of each of the Portfolios of the Fund. Investment decisions are made
by a committee of the investment adviser.
CUSTODIAN, TRANSFER AGENT, AND DIVIDEND DISBURSING AGENT
Chemical Bank, 277 Park Avenue, New York, New York 10172 is the custodian
of the securities held by the Portfolios of the Fund, and is authorized to use
the facilities of the Depository Trust Company and the facilities of the
book-entry system for the Federal Reserve Bank. The Fund acts as its own
transfer agent and dividend-disbursing agent.
PURCHASE AND REDEMPTION OF SHARES
Shares in the Fund are currently being offered continuously, without sales
charge at the Fund level, at prices equal to the respective net asset values of
the Portfolios to MONY and MONY America for allocation to the Variable Accounts
to fund benefits payable under the Contracts described in the attached
prospectus. The Fund sells its shares through MONY Securities Corp. ("MSC")
(which acts as "principal underwriter" of the Contracts and therefore of the
shares of the Fund) to MONY and MONY America, for allocation to the Variable
Accounts. MSC is registered as a broker-dealer under the Securities Exchange Act
of 1934 and is a member of the National Association of Securities Dealers. It is
expected that there will be no distribution expenses for the Fund, other than
expenses for preparing, printing and mailing prospectuses. These expenses, and
any other distribution expenses, will be borne by MSC pursuant to an
underwriting agreement that will comply with pertinent provisions of the 1940
Act and rules of the Securities and Exchange Commission under that Act. The Fund
may at some later date also offer its shares to other separate accounts of MONY,
MONY America, or other MONY subsidiaries.
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The Fund is required to redeem all full and fractional shares of the Fund
for cash within seven days of receipt of proper notice of redemption. The
redemption price is the net asset value per share next determined after the
initial receipt of proper notice of redemption.
The right to redeem shares or to receive payment with respect to any
redemption may be suspended only (i) for any period during which trading on the
New York Stock Exchange is restricted as determined by the Securities and
Exchange Commission or when the New York Stock Exchange is closed (other than
customary weekend and holiday closings), (ii) for any period during which an
emergency exists as defined by the Securities and Exchange Commission as a
result of which disposal of a Portfolio's securities or determination of the net
asset value of each Portfolio is not reasonably practicable, and (iii) for such
other periods as the Securities and Exchange Commission may by order permit for
the protection of shareholders of each Portfolio.
DETERMINATION OF NET ASSET VALUE
The net asset value of the shares of each Portfolio will be determined by
the Investment Adviser once daily immediately after the declaration of
dividends, if any, at a time to be determined by the Fund's Board of Directors,
currently 4:00 p.m. New York City time, on each day during which the New York
Stock Exchange is open for business or on any other day in which there is
sufficient trading in the securities held by a Portfolio to result in a material
change in the value of such shares. The net asset value per share of each
Portfolio except the Money Market Portfolio is computed by adding the sum of the
value of the securities held by that Portfolio plus any cash or other assets it
holds, subtracting all its liabilities, and dividing the result by the total
number of shares outstanding of that Portfolio at such time. Expenses, including
the investment management fee payable to MONY America, are accrued daily.
High-quality, short-term debt obligations held in any of the Portfolios
with a remaining maturity of 60 days or less will be valued on an amortized-cost
basis. This means that each obligation will be valued initially at its purchase
price and thereafter by amortizing any discount or premium uniformly to
maturity, regardless of the impact of fluctuating interest rates on the market
value of the obligation. This highly practical method of valuation is in
widespread use and almost always results in a value that is extremely close to
the actual market value. The Fund's Board of Directors will review obligations
being valued under this method where credit or other factors may indicate the
method is not appropriate or where the rules of the Securities and Exchange
Commission require such examination. Short-term debt obligations with a
remaining maturity of more than 60 days will be valued in the same way as are
debt securities held in the Intermediate Term Bond, Long Term Bond and
Government Securities Portfolios, as described below in "Valuation of
Intermediate Term Bond, Long Term Bond and Government Securities Portfolios".
VALUATION OF INTERMEDIATE TERM BOND, LONG TERM BOND AND GOVERNMENT SECURITIES
PORTFOLIOS
In determining the net asset value of securities held in the Intermediate
Term Bond, Long Term Bond, and Government Securities Portfolios, securities will
be valued based on a decision as to the broadest and most representative market
for such security. The value will be based on either (i) the last available sale
price on a national securities exchange, (ii) in the absence of recorded sales,
the average of readily available closing bid and asked prices on national
securities exchanges, or (iii) the average of the quoted bid and asked prices in
the over-the-counter market. Securities or assets for which market quotations
are not readily available will be valued at fair value as determined by the
Investment Adviser under the direction of the Board of Directors of the Fund.
VALUATION OF MONEY MARKET PORTFOLIO
The net asset value of shares of the Money Market Portfolio will normally
remain at $1.00 per share, because the net investment income of this Portfolio
(including realized and unrealized gains and losses on Portfolio holdings) will
be declared as a dividend each time the Portfolio's net income is determined
(see DIVIDENDS, DISTRIBUTIONS AND TAXES, at page 18). If in the view of the
Board of Directors of the Fund it is inadvisable to continue to maintain the net
asset value of the Money Market Portfolio at $1.00 per
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share, the Board reserves the right to alter the procedure. The Fund will notify
Shareholders of any such alteration.
The Fund will value all short-term debt obligations held in the Money
Market Portfolio on an amortized-cost basis. The regulations of the Securities
and Exchange Commission (SEC) require that, as a condition for using amortized
cost valuation, the Money Market Portfolio (i) maintain a dollar-weighted
average portfolio maturity not exceeding 90 days, and (ii) limit its portfolio
investments to those United States dollar-denominated instruments determined to
present minimal credit risks and which at the time of acquisition are Eligible
Securities. Eligible Securities include any security (i) issued with, or with a
remaining maturity of, 397 days or less which is rated (or, if unrated, the
issuer of which also issues short-term securities any one of which, comparable
in priority and security, is rated) by an SEC designated statistical rating
organization in one of the two highest rating categories for short-term debt
obligations; or (ii) the issuer of which does not have any securities which have
a short term rating but which security is (x) comparable in priority and
security to a security which has been rated in one of the two highest rating
categories for short term debt obligations by an SEC designated statistical
rating organization, and (y) not a security which had an original maturity in
excess of 397 days and which received a rating as a long term debt obligation
from such a rating organization that was not within the two highest rating
categories. In the event of sizable changes in interest rates, however, the
value determined by amortized cost valuation may be higher or lower than the
price that would be received if the obligation were sold. On these occasions (if
any should occur) as a further condition to using amortized-cost valuation,
procedures have been established by the Board of Directors to determine whether
the deviation might be enough to affect the value of shares in the Money Market
Portfolio by more than one-half of one percent, and if it does, an appropriate
adjustment will be made in the value of the obligations.
SHARES IN THE FUND
The authorized capital stock of the Fund consists of 2 billion shares, par
value $.01 per share. The shares of capital stock are divided into seven
classes: Equity Income Portfolio Capital Stock (150 million shares); Equity
Growth Portfolio Capital Stock (150 million shares); Intermediate Term Bond
Portfolio Capital Stock (150 million shares); Long Term Bond Portfolio Capital
Stock (150 million shares); Government Securities Portfolio Capital Stock (150
million shares); Money Market Portfolio Capital Stock (250 million shares); and
Diversified Portfolio Capital Stock (150 million shares). The Fund may in the
future allocate some of the remaining authorized shares to these classes, or
create new classes of capital stock corresponding to new portfolios and allocate
some of the remaining authorized shares to such new classes and then issue
shares of such new classes. Each share of stock will have a pro-rata interest in
the assets of the Portfolio to which the stock of that class relates and will
have no interest in the assets of any other Portfolio. Holders of shares of any
Portfolio are entitled to redeem their shares as set forth under PURCHASE AND
REDEMPTION OF SHARES at page 15. The shares of each Portfolio, when issued, will
be fully paid and non-assessable, will have no preemptive, conversion, exchange
or similar rights, and will be freely transferable. The shares do not have
cumulative voting rights. Holders of more than 50 percent of the shares of the
Fund voting for the election of directors can, if they choose to do so, elect
all of the Fund's directors, and in such event the holders of the remaining
shares would not be able to elect any directors.
MONY provided the initial capital for each of the Fund's Portfolios. MONY
held shares attributable to its initial capital investment. At December 31,
1993, MONY had redeemed all shares attributable to its initial capital
investment, except that MONY provided $1,000,000 in capital to the Government
Securities Portfolio on November 18, 1994. Additional shares may be acquired by
MONY during the Fund's operation or any new portfolio's start-up period. The
acquisition of shares by MONY will enable the Portfolios (or any new portfolios)
to avoid an unrealistically poor investment performance that might otherwise
result because the amounts available for investment were too small, as well as
to satisfy the net worth requirements of the 1940 Act. MONY may also acquire
additional shares through dividend reinvestment in connection with the shares
acquired during the start-up period. Any shares acquired by MONY (other than for
allocation to MONY Variable Account A, MONY Variable Account L, MONY Variable
Account S, or the Keynote Series Account) will be acquired for investment and
can be disposed of only by redemption. They will not be redeemed
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by MONY until the other assets of the Portfolios are large enough so that
redemption will not have an adverse effect upon investment performance. MONY
will vote these shares in the same proportion as the shares held in the Variable
Accounts, which generally are voted in accordance with the instructions of
Contract holders.
VOTING RIGHTS
All shares of capital stock of the Fund have equal voting rights
(regardless of the net asset value per share) except that only shares of the
respective Portfolios are entitled to vote on matters concerning only that
Portfolio. Pursuant to the 1940 Act and the rules and regulations thereunder,
certain matters approved by a vote of all shareholders of the Fund may not be
binding on a Portfolio whose shareholders have not approved that matter. Each
outstanding share of each Portfolio is entitled to one vote and to participate
equally in dividends and distributions declared by that Portfolio and, upon
dissolution or liquidation, in the Portfolio's net assets after satisfying
outstanding liabilities.
The voting rights of Contract holders, and limitations on those rights, are
explained in the accompanying prospectus for the Contract. MONY and MONY America
as the owners of the assets in the Variable Accounts, are entitled to vote all
of the shares of the Fund attributable to the Variable Accounts, but they will
generally do so in accordance with the instructions of Contract holders. Under
certain circumstances, however, MONY and MONY America may disregard voting
instructions received from Contract holders. The Fund might under these
circumstances be deemed to be controlled by MONY and MONY America by virtue of
the definitions contained in the 1940 Act although the Fund disclaims that such
control exists.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The Fund and each of its portfolios intend to qualify as "regulated
investment companies" under the applicable provisions of the Internal Revenue
Code of 1986, as amended (the "Code"). For a description of the restrictions
that apply to qualifying as a regulated investment company, see FEDERAL INCOME
TAX STATUS at page 12. Under those provisions, the Fund and each of its
portfolios will not be subject to federal income tax on the portion of its net
ordinary income and net realized capital gains that each portfolio distributes
to MONY and MONY America, for allocation to the Variable Accounts or to MONY
with respect to shares acquired with initial or additional capital. Since the
only shareholders of the Fund will be MONY and MONY America there is no
discussion in this Prospectus of the federal income tax consequences at the
shareholder level. For information concerning the federal tax consequences to
the Contract holders, see the attached prospectus for the Contracts.
The Fund intends to distribute as dividends substantially all the net
ordinary income, if any, of each Portfolio. For dividend purposes, net ordinary
income of each Portfolio, other than the Money Market Portfolio and the
short-term debt portion of any other Portfolio, consists of (i) all dividends
received (other than stock dividends), (ii) plus all interest and other ordinary
income accrued, (iii) plus all short-term capital gains realized, (iv) less the
expenses of such Portfolio (including fees payable to the Investment Adviser).
Net ordinary income of the Money Market Portfolio and the short-term debt
portion of any other Portfolio consists of (i) interest accrued and/or discount
earned (including both original issue and market discount), (ii) plus all
realized net short-term capital gains, (iii) less the expenses of the Portfolio
(including the fees payable to the Investment Adviser). Dividends on the Money
Market Portfolio will be declared and reinvested daily in additional full and
fractional shares of the Portfolio. Shares corresponding to the Money Market
Portfolio will begin accruing dividends on the day following the date on which
they are issued. Dividends from investment income of the other Portfolios will
be declared and reinvested in additional full and fractional shares annually,
although the Fund may make distributions more frequently, except that MONY may
elect to receive dividends on the shares acquired to provide operating capital
in cash.
The Fund will also declare and distribute annually before the close of its
fiscal year all net realized capital gains of each portfolio of the Fund (other
than short-term gains of the Money Market Portfolio, which are declared as
dividends daily). In determining the amount of capital gains to be distributed,
the realized capital gains and losses of each of the Portfolios are calculated
separately. This will not cause any of the Portfolios to
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have a different investment performance than it would if it were taxed, together
with the other Portfolios, as a single investment company and it will not affect
the value of Contract holders' interests under the Contracts.
The Fund and each of its Portfolios intend to declare dividends in December
of each calendar year to shareholders of record as of a specified date in such
month and distribute such dividends in January of the following calendar year.
In determining the capital gains distribution, the Fund and each of its
Portfolios will calculate net realized capital gains on the basis of the fiscal
year ending October 31 of the current calendar year.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury Regulations currently in effect. For the
complete provisions, reference should be made to the pertinent Code Sections and
Treasury Regulations. The Code and these Regulations are subject to change by
legislative, administrative or judicial actions.
SHAREHOLDER REPORTS AND INQUIRIES
The Fund will send each shareholder, at least annually, reports showing as
of a specified date the number of shares in each Portfolio credited to the
shareholder. The Fund will also send Contract holders semiannual reports showing
the financial condition of the Portfolios and the investments held in each. The
annual report may take the form of an updated copy of the Prospectus.
CALCULATION OF PERFORMANCE OF THE PORTFOLIOS
From time to time the performance of one or more of the Portfolios may be
advertised. The performance data contained in these advertisements is based upon
historical earnings and is not indicative of future performance. The data for
each Portfolio reflects the results of that Portfolio of the Fund and recurring
charges and deductions borne by or imposed on the Portfolio. Set forth below for
each Portfolio is the manner in which the data contained in such advertisements
will be calculated.
Money Market Portfolio. The performance data for this Portfolio will
reflect the "yield" and "effective yield". The "yield" of the Portfolio refers
to the income generated by an investment in the Portfolio over the seven day
period stated in the advertisement. This income is "annualized", that is, the
amount of income generated by the investment during that week is assumed to be
generated each week over a 52-week period and is shown as a percentage of the
investment. The "effective yield" is calculated similarly, but, when annualized,
the income earned by an investment in the Portfolio is assumed to be reinvested.
The "effective yield" will be slightly higher than the "yield" because of the
compounding effect of this assumed reinvestment.
All Other Portfolios. The performance data for the Portfolios will reflect
the "yield" and "total return". The "yield" of each of the Portfolios (except
for a 7 day period for the Money Market Portfolio) refers to the income
generated by an investment in that Portfolio over the 30 day period stated in
the advertisement and is the result of dividing that income by the value of the
Portfolio. The value of each Portfolio is the average daily number of shares
outstanding multiplied by the net asset value on the last day of the period.
"Total return" for each of these Portfolios refers to the return a Shareholder
would receive during the period indicated if a $1,000 investment was made the
indicated number of years ago. It reflects investment results less charges and
deductions of the Fund. Returns for periods exceeding one year reflect the
average annual total return for such period. Total return data may also be shown
for larger investments which would reflect the average size purchase payment
made for Contracts, the purchasers of which may allocate purchase payments to
Subaccounts which purchase shares of the Portfolios of the Fund.
In addition, reference in advertisements may be made to various indices,
including, without limitation, the Standard & Poor's 500 Stock Index and the
Shearson Lehman Brothers, Government/Corporate Index, and to various ranking
services, including, without limitation, the Lipper Annuity and Closed End
Survey compiled by Lipper Analytical Services and the VARDS report compiled by
Variable Annuity Research and Data Service in order to provide the reader a
basis for comparison.
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ADDITIONAL INFORMATION
This Prospectus does not contain all the information set forth in the
registration statement, certain portions of which have been omitted pursuant to
the rules and regulations of the Securities and Exchange Commission. The omitted
information may be obtained from the Commission's principal office in
Washington, D.C., upon payment of the fees prescribed by the Commission.
For further information, including the Statement of Additional Information,
shareholders may also contact the Fund's office at the address or at the phone
number set forth on the cover of this Prospectus.
20
<PAGE> 172
APPENDIX A
SECURITIES IN WHICH THE MONEY MARKET
PORTFOLIO MAY CURRENTLY INVEST
The Money Market Portfolio, and the other Portfolios to the extent their
investment policies so provide, may invest in the following short-term, debt
securities regularly bought and sold by financial institutions:
1. U.S. Treasury Bills, other obligations issued or guaranteed by the
U.S. Government, obligations of U.S. agencies or instrumentalities which
are backed by the U.S. Treasury, and obligations issued or guaranteed by
U.S. agencies or instrumentalities and backed solely by the issuing agency
or instrumentality. These are debt securities (including bills,
certificates of indebtedness, notes, and bonds) issued or guaranteed by the
U.S. Treasury or by an agency or instrumentality of the U.S. Government
that is established under the authority of an act of Congress. Such
agencies or instrumentalities include, but are not limited to, the Federal
National Mortgage Association, the Federal Farm Credit Bank, the Federal
Home Loan Bank and the Government National Mortgage Association. Although
all obligations of agencies and instrumentalities are not direct
obligations of the U.S. Treasury, payment of the interest and principal on
them is generally backed directly or indirectly by the U.S. Treasury. This
support can range from the backing of the full faith and credit of the
United States, to U.S. Treasury guarantees, or to the backing solely of the
issuing agency or instrumentality itself.
2. Obligations (including certificates of deposit, bankers'
acceptances and time deposits) of any bank organized under the laws of the
United States or any state thereof or of foreign branches of such banks or
foreign banks, provided that such bank has, at the time of the Portfolio's
investment, total assets of at least $1 billion or the equivalent. The term
"certificates of deposit" includes both Eurodollar certificates of deposit,
which are traded in the over-the-counter market, and Eurodollar time
deposits, for which there is generally not a market. "Eurodollars" are
dollars deposited in banks outside the United States. An investment in
Eurodollar instruments involves risks that are different in some respects
from an investment in debt obligations of domestic issuers, including
future political and economic developments such as possible expropriation
or confiscatory taxation that might adversely affect the payment of
principal and interest on the Eurodollar instruments. In addition, foreign
branches of domestic banks and foreign banks may not be subject to the same
accounting, auditing and financial standards and requirements as domestic
banks. Finally, in the event of default, judgments against a foreign branch
or foreign bank might be difficult to obtain or enforce.
"Certificates of deposit" are certificates evidencing the indebtedness
of a commercial bank to repay funds deposited with it for a definite period
of time (usually from 14 days to one year). "Bankers' acceptances" are
credit instruments evidencing the obligation of a bank to pay a draft which
has been drawn on it by a customer. These instruments reflect the
obligation both of the bank and of the drawer to pay the face amount of the
instrument upon maturity. "Time deposits" are non-negotiable deposits in a
bank for a fixed period of time.
3. Commercial paper issued by domestic corporations which at the date
of investment is rated (a) "high quality" by Moody's Investors Service,
Inc. ("Moody's") or Standard & Poor's Corporation ("S&P"), provided that in
no event will the Portfolio invest in commercial paper rated lower than
Prime 2 by Moody's or A-2 by S&P or, (b) if not rated, issued by domestic
corporations which have an outstanding senior long-term debt issue rated Aa
or better by Moody's or AA or better by S&P. See Appendix B for an
explanation of the ratings issued by Moody's and S&P. "Commercial paper"
consists of short-term (usually from 1 to 270 days) unsecured promissory
notes issued by corporations in order to finance their current operations.
4. Other corporate obligations issued by domestic corporations which
at the date of investment are rated Aa or better by Moody's or AA or better
by S&P. See Appendix B for rating information. "Corporate obligations" are
bonds and notes issued by corporations and other business organizations,
including business trusts, in order to finance their long-term credit
needs.
5. Repurchase Agreements. When the Money Market Portfolio purchases
money market securities of the types described above, it may on occasion
enter into a repurchase agreement with the seller wherein the seller and
the buyer agree at the time of sale to a repurchase of the security at a
mutually agreed upon
A-1
<PAGE> 173
time and price. The period of maturity is usually quite short, possibly
overnight or a few days, although it may extend over a number of months.
The resale price is in excess of the purchase price, reflecting an
agreed-upon market rate of interest effective for the period of time the
Portfolio's money is invested in the security, and is not related to the
coupon rate of the purchased security. Repurchase agreements may be
considered loans of money to the seller of the underlying security, which
are collateralized by the securities underlying the repurchase agreement.
The Fund will not enter into repurchase agreements unless the agreement is
"fully collateralized," i.e., the value of the securities is, and during
the entire term of the agreement remains, at least equal to the amount of
the "loan" including accrued interest. The Fund's custodian bank will take
possession of the securities underlying the agreement, and the Fund will
value them daily to assure that this condition is met. The Fund has adopted
standards for the parties with whom it will enter into repurchase
agreements which it believes are reasonably designed to assure that such a
party presents no serious risk of becoming involved in bankruptcy
proceedings within the time frame contemplated by the repurchase agreement.
In the event that a seller defaults on a repurchase agreement, the Fund may
incur a loss in the market value of the collateral, as well as disposition
costs; and, if a party with whom the Fund had entered into a repurchase
agreement becomes involved in bankruptcy proceedings, the Fund's ability to
realize on the collateral may be limited or delayed and a loss may be
incurred if the collateral security of the repurchase agreement declines in
value during the bankruptcy proceedings.
6. Reverse Repurchase Agreements. The Portfolio may enter into reverse
repurchase agreements with banks, which agreements have the characteristics
of borrowing and involve the sale of securities held by the Portfolio with
an agreement to repurchase the securities at an agreed-upon price and date,
which reflect a rate of interest paid for the use of funds for the period.
Generally, the effect of such a transaction is that the Portfolio can
recover all or most of the cash invested in the securities involved during
the term of the reverse repurchase agreement, while in many cases it will
be able to keep some of the interest income associated with those
securities. Such transactions are only advantageous if the Portfolio has an
opportunity to earn a greater rate of interest on the cash derived from the
transaction than the interest cost of obtaining that cash. The Portfolio
may be unable to realize a return from the use of the proceeds equal to or
greater than the interest required to be paid. Opportunities to achieve
this advantage may not always be available, and the Portfolio intends only
to use the reverse repurchase technique when it appears to be to its
advantage to do so. The use of reverse repurchase agreements may magnify
any increase or decrease in the value of the Portfolio's securities. The
Fund's custodian bank will maintain in a separate account securities of the
Portfolio that have a value equal to or greater than the Portfolio's
commitments under reverse repurchase agreements.
Notwithstanding the above, it is the present intention of the Fund that the
Money Market Portfolio continue to qualify under the requirements of Rule 2a-7
of the Securities and Exchange Commission ("SEC") which permits the Portfolio to
use the amortized cost method of valuation to calculate net asset value if the
Portfolio's funds are invested in accordance with its guidelines. Briefly, those
guidelines require investment in Eligible Securities (see VALUATION OF MONEY
MARKET PORTFOLIO at page 16 for a discussion of Eligible Securities) which
qualify as First or Second Tier securities under the Rule. First Tier securities
include any Eligible Security which (i) is rated (or, if unrated, the issuer of
which also issues short-term securities any one of which, comparable in priority
and security, is rated) by an SEC designated statistical rating organization in
its highest category for short-term debt obligations, or (ii) is a security
having a remaining maturity of 397 days or less when acquired but which has an
original maturity in excess of 397 days and which is now comparable in priority
and security to a short-term security of the same issuer which is rated by an
SEC designated statistical rating organization in the highest category for
short-term debt obligations; or (iii) is unrated as a short-term security (and,
if rated as a long-term security, received a rating in one of the two highest
categories) and is issued by an issuer which has no rated short-term debt
obligations comparable in priority and security. A Second Tier security is any
Eligible Security (see VALUATION OF MONEY MARKET PORTFOLIO at page 16 for a
discussion of Eligible Securities) which is not a First Tier security.
A-2
<PAGE> 174
APPENDIX B
DEBT RATINGS
Moody's Investors Service, Inc. describes the four highest grades of
corporate debt securities and "Prime-1" and "Prime-2" commercial papers as
follows:
BONDS:
<TABLE>
<S> <C>
Aaa -- Bonds which are rated Aaa are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as "gilt edge."
Interest payments are protected by a large or by an exceptionally stable margin
and principal is secure. While the various protective elements are likely to
change, such changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issue.
Aa -- Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection may
not be as large as in Aaa securities or fluctuation of protective elements may be
of greater amplitude or there may be other elements present which make the long
term risks appear somewhat larger than in Aaa securities.
A -- Bonds which are rated A possess many favorable investment attributes and are to
be considered as upper medium grade obligations. Factors giving security to
principal and interest are considered adequate but elements may be present which
suggest a susceptibility to impairment sometime in the future.
Baa -- Bonds which are rated Baa are considered as medium grade obligations, i.e., they
are neither highly protected nor poorly secured. Interest payments and principal
security appear adequate for the present but certain protective elements may be
lacking or may be characteristically unreliable over any great length of time.
Such bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
</TABLE>
COMMERCIAL PAPER:
Issuers rated Prime-1 (or related supporting institutions) have a superior
capacity for repayment of short-term promissory obligations. Prime-1 repayment
capacity will normally be evidenced by the following characteristics:
- Leading market positions in well-established industries.
- High rates of return of funds employed.
- Conservative capitalization structures with moderate reliance on debt
and ample asset protection.
- Broad margins in earnings coverage of fixed financial charges and high
internal cash generation.
- Well-established access to a range of financial markets and assured
sources of alternate liquidity.
Issuers rated Prime-2 (or related supporting institutions) have a strong
capacity for repayment of short-term promissory obligations. This will normally
be evidenced by any of the characteristics cited above but to a lesser degree.
Earnings trends and coverage ratios, while sound, will be more subject to
variation. Capitalization characteristics, while still appropriate, may be more
affected by external conditions. Ample alternate liquidity is maintained.
B-1
<PAGE> 175
Standard & Poor's Corporation describes the four highest grades of
corporate debt securities and A commercial paper as follows:
BONDS:
<TABLE>
<S> <C>
AAA -- Bonds rated AAA are highest grade obligations. They possess the ultimate degree
of protection as to principal and interest. Marketwise, they move with interest
rates, and hence provide the maximum safety on all counts.
AA -- Bonds rated AA also qualify as high grade options and in the majority of
instances differ from AAA issues only in small degree. Here, too, prices move
with the long term money market.
A -- Bonds rated A are regarded as upper medium grade. They have considerable
investment strength but are not entirely free from adverse effects of changes in
economic and trade conditions. Interest and principal are regarded as safe. They
predominantly reflect money rates in their market behavior, but to some extent,
also economic conditions.
BBB -- The BBB, or medium grade category, is borderline between definitely sound
obligations and those where the speculative element begins to predominate. These
bonds have adequate asset coverage and normally are protected by satisfactory
earnings. Their susceptibility to changing conditions, particularly to
depressions, necessitates constant watching. Marketwise, the bonds are more
responsive to business and trade conditions than to interest rates. This group is
the lowest which qualifies for commercial bank investment.
</TABLE>
COMMERCIAL PAPER:
Commercial paper rated A by Standard & Poor's Corporation has the following
characteristics: Liquidity ratios are better than the industry average. Long
term senior debt rating is A or better. In some cases BBB credits may be
acceptable. The issuer has access to at least two additional channels of
borrowing. Basic earnings and cash flow have an upward trend with allowances
made for unusual circumstances. Typically, the issuer's industry is well
established, the issuer has a strong position within its industry and the
reliability and quality of management are unquestioned. Issues rated A are
further referred to by use of numbers 1, 2 and 3 to denote relative strength
within this classification.
B-2
<PAGE> 176
ENTERPRISE ACCUMULATION TRUST
ATLANTA FINANCIAL CENTER
3343 PEACHTREE ROAD, N.E., STE. 450
ATLANTA, GEORGIA 30326-1022
(800) 432-4320
------------------------
ENTERPRISE ACCUMULATION TRUST (the "Fund") is a registered open-end
diversified management investment company offering a broad range of investment
alternatives through its five Portfolios. It permits an investor the flexibility
of choosing among different investment objectives, through the following
Portfolios, each of which is a separate series of shares of beneficial interest
of the Fund ("Shares"). The Fund's principal Investment Adviser, Enterprise
Capital Management, Inc., selects, subject to shareholder approval, separate
sub-advisers referred to as "Portfolio Managers" that provide investment advice
for the Portfolios and that are selected on the basis of able investment
performance in their respective areas of responsibilities. The investment
objective of each Portfolio is as follows:
EQUITY PORTFOLIO: Seeks long term capital appreciation through
investment in a diversified portfolio of equity securities selected on the
basis of a value-oriented approach to investing.
SMALL CAP PORTFOLIO: Seeks capital appreciation through investment in
a diversified portfolio of equity securities of companies with market
capitalizations of under $1 billion.
INTERNATIONAL GROWTH PORTFOLIO: Seeks capital appreciation, primarily
through a diversified portfolio of non-United States equity securities.
MANAGED PORTFOLIO: Seeks growth of capital over time through
investment in a portfolio consisting of common stocks, bonds and cash
equivalents, the percentages of which will vary based on management's
assessments of relative investment values.
HIGH-YIELD BOND PORTFOLIO: Seeks maximum current income, primarily
from debt securities that are rated Ba or lower by Moody's Investor
Service, Inc. or BB by Standard & Poor's Corporation ("S&P").
Shares of the Fund are currently sold to variable accounts of The Mutual
Life Insurance Company of New York ("MONY") and a life insurance company
affiliate of MONY that were established to fund certain Flexible Payment
Variable Annuity and Life Insurance contracts (the "Contracts"). These variable
accounts (the "Variable Accounts") invest in Shares of the Fund in accordance
with allocation instructions received from holders (the "Contractholders") of
the Contracts. Allocation rights are further described in the attached
prospectus for the Contracts. The Variable Accounts will redeem Shares to the
extent necessary to provide benefits under the Contracts. In the future, Shares
may be sold to certain other variable accounts and affiliated entities of MONY.
It is possible, although not presently anticipated, that a material conflict
could arise between and among the various variable accounts which invest in the
Fund. Such conflict could cause the liquidation of assets of one or more of the
Fund Portfolios to raise cash at times not otherwise deemed advantageous by the
Investment Adviser or Portfolio Managers. See "Management of the Fund," p. 17.
This Prospectus sets forth concisely information about the Fund that a
prospective investor ought to know before investing, and offers of sales of
shares of the Fund, must be accompanied by a current prospectus for one of the
Contracts and both should be retained for future reference. A Statement of
Additional Information dated July 12, 1996 has been filed with the Securities
and Exchange Commission and is available without charge upon written request to
MONY, Maildrop 76-18, 500 Frank W. Burr Blvd., Teaneck, N.J. 07666-6888
[1-800-487-6669]. The Statement of Additional Information (which is incorporated
in its entirety by reference in this Prospectus) contains more detailed
information about the Fund and its management, including more complete
information about certain risk factors.
------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
ENTERPRISE CAPITAL MANAGEMENT, INC.
INVESTMENT ADVISER
Prospectus dated July 12, 1996
IN PURSUING ITS INVESTMENT OBJECTIVE, THE HIGH-YIELD BOND PORTFOLIO MAY
INVEST SIGNIFICANTLY IN LOWER-RATED BONDS, COMMONLY REFERRED TO AS "JUNK BONDS."
BONDS OF THIS TYPE ARE CONSIDERED TO BE SPECULATIVE WITH REGARD TO THE PAYMENT
OF INTEREST AND RETURN OF PRINCIPAL. INVESTMENT IN THESE TYPES OF SECURITIES
HAVE SPECIAL RISKS AND THEREFORE, MAY NOT BE SUITABLE FOR ALL INVESTORS.
INVESTORS SHOULD CAREFULLY ASSESS THE RISKS ASSOCIATED WITH AN INVESTMENT IN
THIS PORTFOLIO. PLEASE REFER TO PAGE 15 OF THE PROSPECTUS.
<PAGE> 177
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Prospectus Summary.................................................................... 1
Financial Highlights.................................................................. 3
Equity Portfolio...................................................................... 4
Small Cap Portfolio................................................................... 5
Managed Portfolio..................................................................... 6
International Growth Portfolio........................................................ 7
High-Yield Bond Portfolio............................................................. 8
Investment Objectives and Policies.................................................... 9
Investment Techniques and Associated Risks............................................ 12
Investment Restrictions............................................................... 17
Management of the Fund................................................................ 17
Determination of Net Asset Value...................................................... 19
Purchase of Shares.................................................................... 20
Redemption of Shares.................................................................. 20
State Law Restrictions................................................................ 20
Dividends, Distributions and Taxes.................................................... 21
Calculation of Performance............................................................ 21
Additional Information................................................................ 22
</TABLE>
i
<PAGE> 178
PROSPECTUS SUMMARY
The Fund............................ The Fund is a Massachusetts business
trust which issues its shares in
series as is designated as a
"Portfolio". Together, the five
Portfolios are designed to enable an
investor to choose a number of
investment alternatives to achieve
financial goals and to shift assets
conveniently among Portfolios when
and if investment aims or perception
of the marketplace change.
Investment Objectives and
Restrictions........................ The investment objective of each of the
Portfolios is set forth on the cover
page of this Prospectus. These
objectives are described in more
detail under the heading "Investment
Objectives and Policies." Although
each Portfolio will be actively
managed by experienced professionals,
there can be no assurance that the
objectives will be achieved.
The value of the portfolio securities
of each Portfolio and therefore the
Portfolio's net asset value per share
may increase or decrease because of
varying factors. There are generally
two types of risk associated with an
investment in one or more of the
Portfolios: market (or interest rate)
risk and financial (or credit) risk.
Market risk for equities is the risk
associated with movement of the stock
market in general. Market risk for
fixed income securities is the risk
that interest rates will change,
thereby affecting their value.
Generally, the value of fixed income
securities declines as interest rates
rise, and conversely, their value
rises as interest rates decline. The
second type of risk, financial or
credit risk, is associated with the
financial condition and profitability
of an individual equity or fixed
income issuer. The financial risk in
owning equities is related to
earnings stability and overall
financial soundness of individual
issuers and of issuers collectively
which are part of a particular
industry. For fixed income
securities, credit risk relates to
the financial ability of an issuer to
make periodic interest payments and
ultimately repay the principal at
maturity. The high-yield bonds in
which the High-Yield Bond Portfolio
will invest are subject to greater
risks than lower yielding, higher
rated fixed income securities. (See
"Additional Information on Investment
Objectives and Policies" for risk
aspects of the individual
Portfolios).
Investment Adviser.................. Enterprise Capital Management, Inc.
("Enterprise Capital"), the
investment adviser of each of the
Portfolios, serves also as investment
adviser to The Enterprise Group of
Funds, Inc., a registered investment
company consisting of approximately
$737 mil-
<PAGE> 179
lion of assets under management at
March 31, 1996. Enterprise Capital is
a subsidiary of The Mutual Life
Insurance Company of New York
("MONY") and has approximately $2.62
billion total assets under
management. Portfolio Managers are as
follows: OpCap Advisors for the
Equity and Managed Portfolios; GAMCO
Investors, Inc. for the Small Cap
Portfolio; Brinson Partners, Inc. for
the International Growth Portfolio;
and Caywood-Scholl Capital
Management, Inc. for the High-Yield
Bond Portfolio.
Management Fee...................... Enterprise Capital receives a monthly
fee and pays a portion of such fee to
the respective Portfolio Manager from
each Portfolio at varying annual
percentage rates of average daily net
assets, as follows: .80 percent of
average daily net assets for the
Equity, Small Cap, and Managed
Portfolios up to $400 million; .75
percent for assets from $400 million
to $800 million; and .70 percent for
assets in excess of $800 million; .60
percent of average daily net assets
for the High-Yield Bond Portfolio and
.85 percent of average daily net
assets for the International Growth
Portfolio.
Purchases and Redemption of
Shares.............................. Currently, shares of the Fund are sold
at their net asset value per share,
without sales charge, for allocation
to the Variable Accounts as the
underlying investment for the
Contracts. Accordingly, the interest
of the Contractholder with respect to
the Fund is subject to the terms of
the Contract as described in the
accompanying Prospectus for the
Contract, which should be reviewed
carefully by a person considering the
purchase of a Contract. That
Prospectus describes the relationship
between increases or decreases in the
net asset value of Fund shares and
any distributions on such shares, and
the benefits provided under a
Contract. The rights of the Variable
Accounts as shareholders of the Fund
should be distinguished from the
rights of a Contractholder which are
described in the Contract. As long as
shares of the Fund are sold for
allocation to the Variable Accounts,
the terms "shareholder" or
"shareholders" in this Prospectus
shall refer to the Variable Accounts.
Shares are redeemed at their
respective net asset values as next
determined after receipt of proper
notice of redemption.
The above is qualified in its entirety by the detailed information
appearing elsewhere in this Prospectus, the Statement of Additional Information,
and the accompanying Prospectus for the Contract.
2
<PAGE> 180
FINANCIAL HIGHLIGHTS
The financial highlights for each of the years presented below have been
audited by the Fund's independent accountants. This information should be read
in conjunction with the Trust's 1995 financial statements, financial highlights
and related notes thereto included in the Statement of Additional Information.
Further information regarding the performance of each Portfolio is available in
the Fund's Annual Report. Annual Reports may be obtained without charge upon
written request to MONY, Maildrop 76-18, 500 Frank W. Burr Blvd., Teaneck, N.J.
07666-6888 (1-800-487-6669).
3
<PAGE> 181
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988
-------- ------- ------- ------- ------- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year....................... $ 18.14 $ 17.95 $ 17.23 $ 15.24 $ 11.92 $ 12.50 $10.19 $10.00#
-------- ------- ------- ------- ------- ------- ------ ------
Income from investment
operations:
Net investment income...... 0.33 0.28 0.18 0.17 0.24 0.30 0.26 0.00
Net realized and unrealized
gain (loss) on
investments.............. 6.38 0.41 1.13 2.49 3.42 (0.58) 2.05 0.19
-------- ------- ------- ------- ------- ------- ------ ------
Total from investment
operations......... 6.71 0.69 1.31 2.66 3.66 (0.28) 2.31 0.19
-------- ------- ------- ------- ------- ------- ------ ------
Less dividends and
distributions:
Dividends to shareholders
from net investment
income................... (0.49) (0.18) (0.17) (0.24) (0.34) (0.21) 0.00 0.00
Distributions to
shareholders from net
realized capital gains... (1.01) (0.32) (0.42) (0.43) 0.00 (0.09) 0.00 0.00
-------- ------- ------- ------- ------- ------- ------ ------
Total dividends and
distributions...... (1.50) (0.50) (0.59) (0.67) (0.34) (0.30) 0.00 0.00
-------- ------- ------- ------- ------- ------- ------ ------
Net asset value, end of
year....................... $ 23.35 $ 18.14 $ 17.95 $ 17.23 $ 15.24 $ 11.92 $12.50 $10.19
======== ======= ======= ======= ======= ======= ====== ======
Total return......... 38.4% 3.9% 7.8% 17.9% 31.2% (2.2)% 22.7% 1.9%
-------- ------- ------- ------- ------- ------- ------ ------
Net assets, end of year
(000)...................... $167,963 $88,583 $66,172 $33,581 $17,221 $10,248 $5,997 $1,059
-------- ------- ------- ------- ------- ------- ------ ------
Ratio of net operating
expenses to average net
assets..................... 0.69%(1) 0.67%(1) 0.72% 0.79% 0.86% 0.92%(1) 0.85%(1) 0.85%**(1)
-------- ------- ------- ------- ------- ------- ------ ------
Ratio of net investment
income to average net
assets..................... 1.94%(1) 1.81%(1) 1.47% 1.48% 2.09% 3.45%(1) 3.93%(1) 0.10%**(1)
-------- ------- ------- ------- ------- ------- ------ ------
Portfolio turnover........... 29% 38% 15% 27% 41% 49% 28% 0%
-------- ------- ------- ------- ------- ------- ------ ------
</TABLE>
- ---------------
# Initial public offering price per share.
** Annualized.
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been .72% and 1.91%,
respectively in 1995; .69% and 1.79%, respectively, in 1994; .99% and 3.38%,
respectively, in 1990; 1.54% and 3.24%, respectively, in 1989; and 6.79% and
(5.84)% respectively, for the period 8/1/88 - 12/31/88.
4
<PAGE> 182
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988
-------- -------- -------- ------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of year.................. $ 17.56 $ 18.62 $ 16.72 $ 15.11 $10.46 $12.06 $10.19 $10.00#
-------- -------- -------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income.... 0.32 0.19 0.10 0.09 0.09 0.31 0.17 0.00
Net realized and
unrealized gain (loss)
on investments......... 1.75 (0.16) 2.98 3.05 4.86 (1.47) 1.70 0.19
-------- -------- -------- -------- -------- -------- -------- --------
Total from
investment
operations....... 2.07 0.03 3.08 3.14 4.95 (1.16) 1.87 0.19
-------- -------- -------- -------- -------- -------- -------- --------
Less dividends and
distributions:
Dividends to shareholders
from net investment
income................. (0.40) (0.10) (0.10) (0.10) (0.30) (0.15) 0.00 0.00
Distributions to
shareholders from net
realized capital
gains.................. (0.75) (0.99) (1.08) (1.43) 0.00 (0.29) 0.00 0.00
-------- -------- -------- -------- -------- -------- -------- --------
Total dividends and
distributions.... (1.15) (1.09) (1.18) (1.53) (0.30) (0.44) 0.00 0.00
-------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of
year..................... $ 18.48 $ 17.56 $ 18.62 $ 16.72 $15.11 $10.46 $12.06 $10.19
======== ======== ======== ======== ======== ======== ======== ========
Total return....... 12.3% 0.0% 19.5% 21.5% 48.1% (9.8)% 18.4% 1.9%
-------- -------- -------- -------- -------- -------- -------- --------
Net assets, end of year
(000).................... $166,061 $144,880 $105,635 $31,211 $9,777 $2,744 $2,302 $ 571
-------- -------- -------- -------- -------- -------- -------- --------
Ratio of net operating
expenses to average net
assets................... 0.69%(1) 0.66%(1) 0.74% 0.86% 1.00%(1) 1.02%(1) 0.95%(1) 0.95%**(1)
-------- -------- -------- -------- -------- -------- -------- --------
Ratio of net investment
income to average net
assets................... 1.86%(1) 1.30%(1) 1.06% 1.05% 1.41%(1) 3.32%(1) 2.48%(1) 0.23%**(1)
-------- -------- -------- -------- -------- -------- -------- --------
Portfolio turnover......... 70% 58% 70% 105% 120% 44% 58% 0%
-------- -------- -------- -------- -------- -------- -------- --------
</TABLE>
- ---------------
# Initial public offering price per share.
** Annualized.
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been .72% and 1.83%,
respectively in 1995; .67% and 1.29%, respectively, in 1994; 1.19% and
1.22%, respectively, in 1991; 1.62% and 2.38%, respectively, in 1990; 2.38%
and 1.05%, respectively, in 1989; and 9.22% and (8.04)%, respectively, for
the period 8/1/88 - 12/31/88.
5
<PAGE> 183
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988
---------- -------- -------- -------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year...... $ 20.82 $ 21.35 $ 20.11 $ 17.56 $ 12.43 $ 13.80 $ 10.44 $10.00#
---------- -------- -------- -------- ------- ------- ------- ------
Income from investment
operations:
Net investment
income............... 0.40 0.40 0.46 0.25 0.29 0.31 0.34 0.05
Net realized and
unrealized gain
(loss) on
investments.......... 8.97 0.15 1.55 2.95 5.31 (0.81) 3.06 0.39
---------- -------- -------- -------- ------- ------- ------- ------
Total from
investment
operations..... 9.37 0.55 2.01 3.20 5.60 (0.50) 3.40 0.44
---------- -------- -------- -------- ------- ------- ------- ------
Less dividends and
distributions:
Dividends to
shareholders from net
investment income.... (0.75) (0.46) (0.24) (0.27) (0.39) (0.28) (0.03) 0.00
Distributions to
shareholders from net
realized capital
gains................ (1.38) (0.62) (0.53) (0.38) (0.08) (0.59) (0.01) 0.00
---------- -------- -------- -------- ------- ------- ------- ------
Total dividends
and
distributions... (2.13) (1.08) (0.77) (0.65) (0.47) (0.87) (0.04) 0.00
---------- -------- -------- -------- ------- ------- ------- ------
Net asset value, end of
year................... $ 28.06 $ 20.82 $ 21.35 $ 20.11 $ 17.56 $ 12.43 $ 13.80 $10.44
========== ======== ======== ======== ======= ======= ======= ======
Total return..... 46.9% 2.6% 10.4% 18.6% 46.0% (3.6)% 32.6% 4.4%
---------- -------- -------- -------- ------- ------- ------- ------
Net assets, end of year
(000).................. $1,264,718 $689,252 $525,163 $236,175 $98,468 $45,955 $22,459 $3,238
---------- -------- -------- -------- ------- ------- ------- ------
Ratio of net operating
expenses to average net
assets................. 0.67%(1) 0.64%(1) 0.66% 0.69% 0.73% 0.80% 0.85%(1) 0.85%**(1)
---------- -------- -------- -------- ------- ------- ------- ------
Ratio of net investment
income to average net
assets................. 1.80%(1) 2.23%(1) 3.21% 2.06% 2.42% 3.79% 5.10%(1) 3.88%**(1)
---------- -------- -------- -------- ------- ------- ------- ------
Portfolio turnover....... 31% 33% 21% 23% 57% 112% 196% 38%
---------- -------- -------- -------- ------- ------- ------- ------
</TABLE>
- ---------------
# Initial public offering price per share.
** Annualized.
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been .67% and 1.80%,
respectively, in 1995; .64% and 2.23%, respectively, in 1994; 1.05% and
4.09%, respectively, in 1989; and 3.37% and 1.36% for the period
8/1/88 - 12/31/88.
6
<PAGE> 184
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
PERIOD OF
NOVEMBER 18, 1994
YEAR ENDED -
DECEMBER 31,1995 DECEMBER 31,1994
----------------- -----------------
<S> <C> <C>
Net asset value, beginning of year................... $ 4.96 $ 5.00
----- -----
Income from investment operations:
Net investment income.............................. 0.04 0.00
Net realized and unrealized gain (loss) on
investments..................................... 0.67 (0.04)
----- -----
Total from investment operations........... 0.71 (0.04)
----- -----
Less dividends and distributions:
Dividends to shareholders from net investment
income.......................................... (0.04) 0.00
Distributions to shareholders from net realized
capital gains................................... (0.24) 0.00
----- -----
Total dividends and distributions.......... (0.28) 0.00
----- -----
Net asset value, end of year......................... $ 5.39 $ 4.96
----- -----
Total return............................... 14.6% (0.8)%*
----- -----
Net assets, end of year (000)........................ $18,598 $ 3,247
===== =====
Ratio of net operating expenses to average net
assets............................................. 1.55%(1) 1.55%**(1)
----- -----
Ratio of net investment income to average net
assets............................................. 1.17%(1) 0.80%**(1)
----- -----
Portfolio turnover................................... 27% 0%
----- -----
</TABLE>
- ---------------
* Not annualized.
** Annualized.
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been 2.21% and .51%,
respectively, in 1995; and 8.85% and (6.34%), respectively, in 1994.
7
<PAGE> 185
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
PERIOD OF
YEAR ENDED NOVEMBER 18, 1994 -
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -------------------
<S> <C> <C>
Net asset value, beginning of year..................... $ 4.98 $ 5.00
------- ------
Income from investment operations:
Net investment income................................ 0.45 0.04
Net realized and unrealized gain (loss) on
investments....................................... 0.35 (0.01)
------- ------
Total from investment operations............. 0.80 0.03
------- ------
Less dividends and distributions:
Dividends to shareholders from net investment
income............................................ (0.45) (0.05)
Distributions to shareholders from net realized
capital gains..................................... (0.02) 0.00
------- ------
Total dividends and distributions............ (0.47) (0.05)
------- ------
Net asset value, end of year........................... $ 5.31 $ 4.98
======= ======
Total return................................. 16.6% 0.5%*
------- ------
Net assets, end of year (000).......................... $15,223 $ 1,421
------- ------
Ratio of net operating expenses to average net
assets............................................... 0.85%(1) 0.85%**(1)
------- ------
Ratio of net investment income to average net assets... 8.51%(1) 7.84%**(1)
------- ------
Portfolio turnover..................................... 115% 0%
------- ------
</TABLE>
- ---------------
* Not annualized.
** Annualized.
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been 1.59% and 7.77%,
respectively, in 1995; and 7.0% and .80%, respectively, in 1994.
8
<PAGE> 186
INVESTMENT OBJECTIVES AND POLICIES
The investment objectives and policies of each Portfolio of the Fund are
described below. Investment objectives of each Portfolio are fundamental
policies which cannot be changed for any Portfolio without a majority vote of
the shareholders of that Portfolio; investment policies are not fundamental and
may be adjusted by the Portfolio Managers, subject to the oversight of
Enterprise Capital, at any time, usually in response to its perception of
developments in the securities markets. The extent to which a Portfolio will be
able to achieve its distinct investment objectives depend upon each Portfolio
Manager's ability to evaluate and develop the information it receives into a
successful investment program. Although each Portfolio will be managed by
experienced professionals, there can be no assurance that any Portfolio will
achieve its investment objectives. The values of the securities held in each
Portfolio will fluctuate and the net asset value per share at the time shares
are redeemed may be more or less than the net asset value per share at the time
of purchase. Investors should also refer to "Investment Techniques" for
additional information concerning the investment techniques employed for some or
all of the Portfolios.
EQUITY PORTFOLIO
The investment objective of the Equity Portfolio is long term capital
appreciation through investment in securities (primarily equity securities) of
companies that are believed by the Portfolio Manager to be undervalued in the
marketplace in relation to factors such as the companies' assets or earnings. It
is the Portfolio Manager's intention to invest in securities of companies which
in the Portfolio Manager's opinion possess one or more of the following
characteristics: undervalued assets, valuable consumer or commercial franchises,
securities valuation below peer companies, substantial and growing cash flow
and/or a favorable price to book value relationship. Investment policies aimed
at achieving the Portfolio's objective are set in a flexible framework of
securities selection which primarily includes equity securities, such as common
stocks, preferred stocks, convertible securities, rights and warrants in
proportions which vary from time to time. Under normal circumstances at least
65% of the Portfolio's assets will be invested in equity securities. The
Portfolio will invest primarily in stocks listed on the New York Stock Exchange.
In addition, it may also purchase securities listed on other domestic securities
exchanges, securities traded in the domestic over-the-counter market and foreign
securities provided that they are listed on a domestic or foreign securities
exchange or represented by American Depository Receipts listed on a domestic
securities exchange or traded in the United States over-the-counter market.
SMALL CAP PORTFOLIO
The investment objective of the Small Cap Portfolio is to seek capital
appreciation through investments in a diversified portfolio consisting primarily
of equity securities of companies with market capitalizations of under $1
billion. Smaller-capitalization companies are often under-priced for the
following reasons: (i) institutional investors, which currently represent a
majority of the trading volume in the shares of publicly traded companies, are
often less interested in such companies because in order to acquire an equity
position that is large enough to be meaningful to an institutional investor,
such an investor may be required to buy a large percentage of the company's
outstanding equity securities and (ii) such companies may not be regularly
researched by stock analysts, thereby resulting in greater discrepancies in
valuation. The Portfolio may also purchase securities in initial public
offerings, or shortly after such offerings have been completed, when the
Portfolio Manager believes that such securities have greater-than-average market
appreciation potential. Under normal circumstances at least 65% of the
Portfolio's assets will be invested in equity securities. The majority of
securities purchased by the Portfolio will be traded on the New York Stock
Exchange, the American Stock Exchange or in the over-the-counter market, and
will also include options, warrants, bonds, notes and debentures which are
convertible into or exchangeable for, or which grant a right to purchase or
sell, such securities. In addition, the Portfolio may also purchase foreign
securities provided that they are listed on a domestic or foreign securities
exchange or are represented by American Depository Receipts listed on a domestic
securities exchange or traded in the United States over-the-counter market.
In pursuing its objective, the Portfolio's strategy will be to invest in
stocks of companies with value that may not be fully reflected by current stock
price. The Portfolio Manager attempts to identify a universe of
9
<PAGE> 187
stocks for which the market has relatively low expectations as measured by
overall price relative to fundamental measures of growth and valuation. To
institute this strategy, the Portfolio Manager utilizes various proprietary
valuation tools centered around price/sales ratios to target investments in
companies whose growth potential exceeds commonly perceived expectations.
INTERNATIONAL GROWTH PORTFOLIO
The International Growth Portfolio seeks capital appreciation, primarily
through a diversified portfolio of non-United States equity securities. It is a
fundamental policy of the Portfolio that it will invest at least 80% of the
value of its assets (except when maintaining a temporary defensive position) in
equity securities of companies domiciled outside the United States. That portion
of the Portfolio not invested in equity securities is, in normal circumstances,
invested in U.S. and foreign government securities, high-grade commercial paper,
certificates of deposit, foreign currency, bankers' acceptances, cash and cash
equivalents, time deposits, repurchase agreements and similar money market
instruments, both foreign and domestic. The Portfolio may invest in convertible
debt securities of foreign issuers which are convertible into equity securities
at such time as a market for equity securities is established in the country
involved.
The Portfolio Manager's investment perspective for the Portfolio is to
invest in the equity securities of non-U.S. markets and companies which are
believed to be undervalued based upon internal research and proprietary
valuation systems. This international equity strategy reflects the Portfolio
Manager's decisions concerning the relative attractiveness of asset classes, the
individual international equity markets, industries across and within those
markets, other common risk factors within those markets and individual
international companies. The Portfolio Manager initially identifies those
securities which it believes to be undervalued in relation to the issuer's
assets, cash flow, earnings and revenues. The relative performance of foreign
currencies is an important factor in the Portfolio's performance. The Portfolio
Manager may manage the Portfolio's exposure to various currencies to take
advantage of different yield, risk and return characteristics. The Portfolio
Manager's proprietary valuation model determines which securities are potential
candidates for inclusion in the Portfolio.
The benchmark for the fund is the Morgan Stanley Capital International
Non-U.S. Equity (Free) Index (the "Benchmark"). The Benchmark is a market driven
broad based index which includes non-U.S. equity markets in terms of
capitalization and performance. The Benchmark is designed to provide a
representative total return for all major stock exchanges located outside the
U.S. From time to time, the Portfolio Manager may substitute securities in an
equivalent index when it believes that such securities in the index more
accurately reflect the relevant international market.
As a general matter, the Portfolio Manager will purchase for the Fund only
securities contained in the underlying index relevant to the Benchmark. The
Portfolio Manager will attempt to enhance the long-term return and risk
performance of the Portfolio relative to the Benchmark by deviating from the
normal Benchmark mix of country allocation and currencies in reaction to
discrepancies between current market prices and fundamental values. The active
management process is intended to produce a superior performance relative to the
Benchmark index.
The Portfolio Manager will purchase securities of companies domiciled in a
minimum of eight to 12 countries outside the United States.
MANAGED PORTFOLIO
The investment objective of the Managed Portfolio is to achieve growth of
capital over time through investment in a portfolio consisting of common stocks,
bonds and cash equivalents, the percentages of which will vary based on the
Portfolio Manager's assessments of the relative outlook for such investments. In
seeking to achieve its investment objective, the types of equity securities in
which the Portfolio may invest are likely to be the same as those in which the
Equity Portfolio invests, although securities of the type in which the Small Cap
Portfolio invests may, to a lesser extent, be included. Debt securities are
expected to be predominantly investment grade intermediate to long term U.S.
Government and corporate debt, although the Portfolio will also invest in
high-quality short-term money market and cash equivalent securities and may
invest almost all
10
<PAGE> 188
of its assets in such securities when the Portfolio Manager deems it advisable
in order to preserve capital. In addition, the Portfolio may also purchase
foreign securities provided that they are listed on a domestic or foreign
securities exchange or are represented by American Depository Receipts listed on
a domestic securities exchange or traded in the United States over-the-counter
market.
The allocation of the Portfolio's assets among the different types of
permitted investments will vary from time to time based upon the Portfolio
Manager's evaluation of economic and market trends and its perception of the
relative values available from such types of securities at any given time. There
is neither a minimum nor a maximum percentage of the Portfolio's assets that
may, at any given time, be invested in any of the types of investments
identified above. Consequently, while the Portfolio will earn income to the
extent it is invested in bonds or cash equivalents, the Portfolio does not have
any specific income objective.
HIGH-YIELD BOND PORTFOLIO
The investment objective of the High-Yield Bond Portfolio is maximum
current income, primarily from debt securities that are rated Ba or lower by
Moody's or BB or lower by S&P. It is a fundamental policy of the Portfolio that
it will invest at least 80% of the value of its total assets (except when
maintaining a temporary defensive position) in high-yielding, income-producing
corporate bonds that are rated B3 or better by Moody's or B- or better by S&P.
The corporate bonds in which the Portfolio invests are high-yielding but
normally carry a greater credit risk than bonds with higher ratings. In
addition, such bonds may involve greater volatility of price than higher-rated
bonds. For a discussion of High-Yield Securities and related risks, see
"Investment Techniques and Associated Risks -- High-Yield Securities" at page
15.
The Portfolio's investments are selected by the Portfolio Manager after
careful examination of the economic outlook to determine those industries that
appear favorable for investments. Industries going through a perceived decline
generally are not candidates for selection. After the industries are selected,
bonds of issuers within those industries are selected based on their
creditworthiness, their yields in relation to their credit and the relative
strength of their common stock prices. Companies near or in bankruptcy are not
considered for investment. The Portfolio does not purchase bonds which are rated
Ca or lower by Moody's or CC or lower by S&P or which, if unrated, in the
judgment of the Portfolio Manager have characteristics of such lower-grade
bonds. Should an investment purchased with the above-described credit quality
requisites be downgraded to Ca or lower or CC or lower, the Portfolio Manager
shall have discretion to hold or liquidate the security.
Subject to the restrictions described above, under normal circumstances, up
to 20% of the Portfolio's assets may include: (1) bonds rated Caa by Moody's or
CCC by S&P; (2) unrated debt securities which, in the judgment of the Portfolio
Manager have characteristics similar to those described above; (3) convertible
debt securities; (4) puts, calls and futures as hedging devices; (5) foreign
issuer debt securities; and (6) short-term money market instruments, including
certificates of deposit, commercial paper, U.S. Government Securities and other
income-producing cash equivalents. For a discussion on options and futures and
their related risks, see "Investment Techniques and Associated Risks," at page
12.
ADDITIONAL INFORMATION ON INVESTMENT OBJECTIVES AND POLICIES
For the Equity and Small Cap Portfolios, at times when the investment
climate is viewed as favorable, common stocks will be heavily emphasized. Under
normal circumstances, at least 65% of each Portfolio's total assets will be
invested in common stocks or securities convertible into common stocks.
Under normal conditions, no less than 80% of the total assets of the
International Growth and High-Yield Bond Portfolios will be invested in equity
or debt securities identified in the respective Portfolio policies listed above.
In the event that future economic or financial conditions adversely affect
equity securities, or stocks are considered overvalued, each of the Equity,
Small Cap, and International Growth Portfolios may temporarily invest a
substantial portion of its assets in debt securities, with an emphasis on money
market instruments or
11
<PAGE> 189
cash and cash equivalents until the Portfolio Manager determines, that market
conditions warrant returning to investments in equity securities. Please refer
to the discussion on Defensive Tactics at page 16.
Each Portfolio will in the normal course have varying amounts of cash
assets which have not yet been invested in accordance with its objectives. This
cash will be temporarily invested in high quality short term money market
securities and cash equivalents.
MANAGEMENT OF ASSETS
The Portfolio Managers intend to manage each Portfolio's assets by buying
and selling securities to help attain its investment objective. This may result
in increases or decreases in a Portfolio's current income available for
distribution to its shareholders. While none of the Portfolios is managed with
the intent of generating short-term capital gains, each of the Portfolios may
dispose of investments (including money market instruments) regardless of the
holding period if, in the opinion of the Portfolio Manager, an issuer's
creditworthiness or perceived changes in a company's growth prospects or asset
value make selling them advisable. Such an investment decision may result in
capital gains or losses and could result in a high portfolio turnover rate
during a given period, resulting in increased transaction costs related to
equity securities. Disposing of debt securities in these circumstances should
not increase direct transaction costs since debt securities are normally traded
on a principal basis without brokerage commissions. However, such transactions
do involve a mark-up or mark-down of the price.
During periods of unusual market conditions when the Portfolio Manager
believes that investing for defensive purposes is appropriate, or in order to
meet anticipated redemption requests, part or all of the assets of one or more
of the Portfolios may be invested in cash or cash equivalents including
obligations listed below.
The portfolio turnover rates of the Portfolios cannot be accurately
predicted. Nevertheless, it is anticipated that the International Growth
Portfolio will have an annual turnover rate (excluding turnover of securities
having a maturity of one year or less) of 100% or less. A 100% annual turnover
rate would occur, for example, if all the securities in a Portfolio's investment
portfolio were replaced once in a period of one year.
INVESTMENT TECHNIQUES AND ASSOCIATED RISKS
The investment techniques or instruments described below are used for the
Portfolios' investment programs:
Short-Term Investments. Each Portfolio typically invests a part of its
assets in various types of U.S. Government securities and high-quality,
short-term debt securities with remaining maturities of one year or less ("money
market instruments"). This type of short-term investment is made to provide
liquidity for the purchase of new investments and to effect redemptions of
shares. The money market instruments in which each Portfolio may invest include
government obligations, certificates of deposit, bankers' acceptances,
commercial paper, short-term corporate securities and repurchase agreements. The
International Growth Portfolio may invest in all of the above, both foreign and
domestic, including foreign currency, foreign time deposits, and foreign bank
acceptances.
Repurchase Agreements. Each Portfolio may acquire securities subject to
repurchase agreements. Under a typical repurchase agreement, a Portfolio would
acquire a debt security for a relatively short period (usually for one day and
not for more than one week) subject to an obligation of the seller to repurchase
and of the Portfolio to resell the debt security at an agreed-upon higher price,
thereby establishing a fixed investment return during the Portfolio's holding
period. A Portfolio will enter into repurchase agreements with member banks of
the Federal Reserve System having total assets in excess of $500 million and
with dealers registered with the Securities and Exchange Commission. Under each
repurchase agreement the selling institution will be required to maintain as
collateral securities whose market value is at least equal to the repurchase
price. Repurchase agreements could involve certain risks in the event of default
or insolvency of the selling institution, including costs of disposing of
securities held as collateral and any loss resulting from delays or restrictions
upon the Portfolio's ability to dispose of securities. Pursuant to guidelines
established by the Fund's Board of Trustees, the Portfolio Manager considers the
creditworthiness of those banks and non-
12
<PAGE> 190
bank dealers with which a Portfolio enters into repurchase agreements and
monitors on an ongoing basis the value of securities held as collateral to
ensure that such value is maintained at the required level. A Portfolio will not
enter into a repurchase agreement with a dealer if the agreement has a maturity
beyond seven days.
Loans of Portfolio Securities. Each Portfolio may lend its portfolio
securities if such loans are secured continuously by collateral (cash, U.S.
Government or agency obligations or letters of credit) maintained on a daily
basis in an amount at least equal at all times to the market value of the
securities loaned and if the Portfolio does not incur any fees (other than the
transaction fees of its custodian bank) in connection with such loans. A
Portfolio may call the loan at any time on five days' notice and reacquire the
loaned securities. During the loan period, the Portfolio would continue to
receive the equivalent of the interest paid by the issuer on the securities
loaned and would also have the right to receive the interest on investment of
the cash collateral in short-term debt instruments. A portion of either or both
kinds of such interest may be paid to the borrower of such securities. It is not
intended that the value of the securities loaned, if any, would exceed 10% of
the value of a Portfolio's total assets. Securities loans must also meet
applicable tests under the Internal Revenue Code of 1986, as amended (the
"Code"). A Portfolio could experience various costs or losses if a borrower
defaults on its obligation to return the borrowed securities.
Options and Futures. To the extent permitted by Arizona and New York law,
each of the Equity, Small Cap and International Growth Portfolios intend to
engage in futures contracts or options on futures contracts for bona fide
hedging or other purposes, and to write calls and puts on individual securities.
When either the Equity, Small Cap or International Growth Portfolio anticipates
a significant market or market sector advance, the purchase of a futures
contract affords a hedge against not participating in the advance at a time when
such Portfolio is not fully invested ("anticipatory hedge"). Such a purchase of
a futures contract would serve as a temporary substitute for the purchase of
individual securities, which then may be purchased in an orderly fashion once
the market has stabilized. As individual securities are purchased, an equivalent
amount of futures contracts could be terminated by offsetting sales. Any such
Portfolio may sell futures contracts in anticipation of or in a general market
or market sector decline that may adversely affect the market value of such
Portfolio's securities ("defensive hedge"). To the extent that the Equity, Small
Cap or International Growth Portfolio of securities changes in value in
correlation with the underlying security or index, the sale of futures contracts
would substantially reduce the risk to the Portfolios of a market decline and by
so doing, provide an alternative to the liquidation of securities positions in
the Portfolios with attendant transaction costs. So long as the Commodity
Futures Trading Commission rules so require, none of the Equity, Small Cap or
International Growth Portfolios will enter into any financial futures or options
contract unless such transactions are for bona-fide hedging purposes, or for
other purposes only if the aggregate initial margins and premiums required to
establish such non-hedging positions would not exceed 5% of the liquidation
value of such Portfolio's assets. When writing put options, a Portfolio will
maintain in a segregated account at its Custodian liquid assets with a value
equal to at least the exercise price of the option to secure its obligation to
pay for the underlying security. As a result, such Portfolio forgoes the
opportunity of trading the segregated assets or writing calls against those
assets. There may not be a complete correlation between the price of options and
futures and the market prices of the underlying securities. The Portfolio may
lose the ability to profit from an increase in the market value of the
underlying security or may lose its premium payment. If due to a lack of a
market a Portfolio could not effect a closing purchase transaction with respect
to an over-the-counter ("OTC") option, it would have to hold the callable
securities until the call lapsed or was exercised.
The Managed Portfolio is authorized to, but does not presently intend to,
purchase, sell and write options and purchase and sell futures contracts for
hedging and other purposes. In the event that the Portfolio Manager intends in
the future to engage in such transactions, appropriate disclosures will be made
to existing and prospective shareholders.
Except as otherwise indicated, the Portfolio Managers may engage in the
following hedging transactions to seek to hedge all or a portion of a
Portfolio's assets against market value changes resulting from changes in equity
values, interest rates and currency fluctuations utilizing covered options,
futures and forwards. Hedging is a means of offsetting, or neutralizing, the
price movement of an investment by making another investment, the price of which
should tend to move in the opposite direction from the original investment.
13
<PAGE> 191
CALL OPTIONS
The Portfolios may write (sell) call options that are listed on national
securities exchanges or are available in the over-the-counter market through
primary broker-dealers. Call options are short-term contracts with a duration of
nine months or less. Such Portfolios of the Fund may only write call options
which are "covered," meaning that the Portfolio either owns the underlying
security or has an absolute and immediate right to acquire that security,
without additional cash consideration, upon conversion or exchange of other
securities currently held in the Portfolio. In addition, no Portfolio will,
prior to the expiration of a call option, permit the call to become uncovered.
If a Portfolio writes a call option, the purchaser of the option has the right
to buy (and the Portfolio has the option to sell) the underlying security
against payment of the exercise price throughout the term of the option. The
Portfolio's obligation to deliver the underlying security against payment of the
exercise price would terminate either upon expiration of the option or earlier
if the Portfolio were to effect a "closing purchase transaction" through the
purchase of an equivalent option on an exchange. The Portfolio would not be able
to effect a closing purchase transaction after it had received notice of
exercise. The International Growth Portfolio may purchase and write covered call
options on foreign and U.S. securities and indices and enter into related
closing transactions.
Generally, such a Portfolio intends to write listed covered calls when it
anticipates that the rate of return from doing so is attractive, taking into
consideration the premium income to be received, the risks of a decline in
securities prices during the term of the option, the probability that closing
purchase transactions will be available if a sale of the securities is desired
prior to the exercise, or expiration of the options, and the cost of entering
into such transactions. A principal reason for writing calls on a securities
portfolio is to attempt to realize, through the receipt of premium income, a
greater return than would be earned on the securities alone. A covered call
writer such as a Portfolio, which owns the underlying security has, in return
for the premium, given the opportunity for profit from a price increase in the
underlying security above the exercise price, but it has retained the risk of
loss should the price of the security decline.
The writing of covered call options involves certain risks. A principal
risk arises because exchange and over-the-counter markets for options are a
relatively new and untested concept; it is impossible to predict the amount of
trading interest which may exist in such options, and there can be no assurance
that viable exchange and over-the-counter markets will develop or continue. The
Portfolios will write covered call options only if there appears to be a liquid
secondary market for such options. If, however, an option is written and a
liquid secondary market does not exist, it may be impossible to effect a closing
purchase transaction in the option. In that event, the Portfolio may not be able
to sell the underlying security until the option expires or the option is
exercised, even though it may be advantageous to sell the underlying security
before that time.
The Portfolios will only engage in hedging transactions against changes
resulting from market conditions in the values of securities owned or expected
to be owned by the Portfolios. Unless otherwise indicated, a Portfolio will not
enter into a hedging transaction (except for closing transactions) if,
immediately thereafter, the sum of the amount of the initial deposits and
premiums on open contracts and options would exceed 20% of the Portfolio's total
assets taken at current value.
PORTFOLIO TRANSACTIONS
The Portfolio Managers' primary consideration when executing security
transactions with broker-dealers is to obtain, and maintain the availability of,
execution at the most favorable prices and in the most effective manner
possible. A Portfolio Manager may select, under certain conditions, Oppenheimer
& Co., Inc., an affiliate of the OpCap Advisors, Inc., the Portfolio Manager of
the Equity and Managed Portfolios, to execute each Portfolio's transactions.
When selecting broker-dealers, other than Oppenheimer & Co., Inc., to execute a
Portfolio's transactions, the Portfolio Managers may consider their record of
sales of shares of other investment company clients of the Portfolio Managers.
Selection of broker-dealers to execute portfolio transactions must be done in a
manner consistent with the foregoing primary consideration, the "Rules of Fair
Practice" of the National Association of Securities Dealers, Inc. and such other
policies as the Board of Trustees may determine. (For a further discussion of
portfolio trading, see the Statement of Additional Information, "Investment
Management and Other Services.")
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GENERAL RISKS ASSOCIATED WITH EQUITY (EQUITY, SMALL CAP, INTERNATIONAL GROWTH
AND MANAGED) PORTFOLIOS
The Equity Portfolios seek to reduce risk of loss of principal due to
changes in the value of individual stocks by investing in a diversified
portfolio of common stocks and through the use of options on stocks. Such
investment techniques do not, however, eliminate all risks. Investors should
expect the value of the Equity Portfolios and the net asset value of their
shares to fluctuate based on market conditions.
RISK ASPECTS OF THE INDIVIDUAL PORTFOLIOS
Small Cap Portfolio. The Small Cap Portfolio is expected to have greater
risk exposure and reward potential than a fund which invests primarily in
larger-capitalization companies. The trading volumes of securities of
smaller-capitalization companies are normally less than those of
larger-capitalization companies. This often translates into greater price
swings, both upward and downward. Since trading volumes are lower, new demand
for the securities of such companies could result in disproportionately large
increases in the price of such securities. The waiting period for the
achievement of an investor's objectives might be longer since these securities
are not closely monitored by research analysts and, thus, it takes more time for
investors to become aware of fundamental changes or other factors which have
motivated the Portfolio's purchase. Smaller-capitalization companies often
achieve higher growth rates and experience higher failure rates than do
larger-capitalization companies.
It is the present intention of the Equity, Small Cap, International Growth
and Managed Portfolio Managers with respect to each of the respective Portfolios
to invest no more than 5 percent of its net assets in bonds rated below Baa3 by
Moody's or BBB by S&P (commonly known as "junk bonds"). In the event that the
Portfolio Managers intend in the future to invest more than 5% of the net assets
of any such Portfolio in junk bonds, appropriate disclosures will be made to
existing and prospective shareholders. For information about the possible risks
of investing in junk bonds see "High-Yield Securities" below and "Investment of
the Assets" in the Statement of Additional Information.
International Growth Portfolio. The International Growth Portfolio carries
additional risks associated with possibly less stable foreign securities and
currencies. Refer to "Foreign Currency and Values" and "Foreign Securities"
sections of the Statement of Additional Information.
Managed Portfolio. An investment in the Managed Portfolio will entail both
market and financial risk, the extent of which depends on the amount of the
Portfolio's assets which are committed to equity, longer term debt or money
market securities at any particular time. The Managed Portfolio may invest in
mortgage-backed securities. Such securities, while similar to other fixed-income
securities, involve additional risk because mortgage prepayments are passed
through to the holder of the mortgage-backed security and must be reinvested.
When interest rates fall, prepayments tend to rise. The Portfolio may have to
reinvest that portion of its assets invested in such securities more frequently
when interest rates are low than when interest rates are high.
Although the Managed Portfolio seeks to reduce credit risks, i.e., failure
of obligors to pay interest and principal, through careful selection of
investments, and it seeks to reduce market risks resulting from fluctuations in
the principal value of debt obligations due to changes in prevailing interest
rates by careful timing of maturities of investments, such risks cannot be
eliminated, and these factors will affect the net asset value of shares in the
Managed Portfolio. The value of debt obligations has an inverse relationship
with prevailing interest rates. The risks of investing in fixed income
securities are greater when such securities are high-yield securities.
HIGH-YIELD SECURITIES
Notwithstanding the investment policies and restrictions applicable to the
High-Yield Bond Portfolio which are designed to reduce risks associated with
such investments, high-yield securities may carry higher levels of risk than
many other types of income producing securities. These risks are of three basic
types: the risk that the issuer of the high-yield bond will default in the
payment of principal and interest; the risk that the value of the bond will
decline due to rising interest rates, economic conditions, or public perception;
and the
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risk that the investor in such bonds may not be able to readily sell such bonds.
Each of the major categories of risk are impacted by various factors, as
discussed below:
High-Yield Bond Market
The high-yield bond market is relatively new and has grown in the context
of a long economic expansion. Any downturn in the economy may have a negative
impact on the perceived ability of the issuer to make principal and interest
payments which may adversely affect the value of outstanding high-yield
securities and reduce market liquidity.
Sensitivity to Interest Rate and Economic Changes
In general, the market prices of bonds bear an inverse relationship to
interest rates; as interest rates increase, the prices of bonds decrease. The
same relationship may hold for high-yield bonds, but in the past high-yield
bonds have been somewhat less sensitive to interest rate changes than treasury
and investment grade bonds. While the price of high-yield bonds may not decline
as much, relatively, as the prices of treasury or investment grade bonds decline
in an environment of rising interest rates, the market price, or value, of a
high-yield bond will be expected to decrease in periods of increasing interest
rates, negatively impacting the net asset value of the High-Yield Bond
Portfolio. High-yield bond prices may not increase as much, relatively, as the
prices of treasury or investment grade bonds in periods of decreasing interest
rates. Payments of principal and interest on bonds are dependent upon the
issuer's ability to pay. Because of the generally lower creditworthiness of
issuers of high-yield bonds, changes in the economic environment generally, or
in an issuer's particular industry or business, may severely impact the ability
of the issuer to make principal and interest payments and may depress the price
of high-yield securities more significantly than such changes would impact
higher rated, investment grade securities.
Payment Expectations
Many high-yield bonds contain redemption or call provisions which might be
expected to be exercised in periods of decreasing interest rates. Should bonds
in which the High-Yield Bond Portfolio has invested be redeemed or called during
such an interest rate environment, the Portfolio would have to sell such
securities without reference to their investment merit and reinvest the proceeds
received in lower-yielding securities, resulting in a decreased return for
investors in the High-Yield Bond Portfolio. In addition, such redemptions or
calls may reduce the High-Yield Bond Portfolio's asset base over which the
Portfolio's investment expenses may be spread.
Liquidity and Valuation
Because of periods of relative illiquidity, many high-yield bonds may be
thinly traded. As a result, the Board of Directors' ability to accurately value
high-yield bonds and determine the net asset value of the High-Yield Bond
Portfolio, as well as the Portfolio's ability to sell such securities, may be
limited. Public perception of and adverse publicity concerning high-yield
securities may have a significant negative impact on the value and liquidity of
high-yield securities, even though not based on fundamental investment analysis.
DEFENSIVE TACTICS
Any or all of the Portfolios may at times for defensive purposes, at the
determination of the Portfolio Manager, temporarily place all or a portion of
their assets in cash, short-term commercial paper (i.e. short-term unsecured
promissory notes issued by corporations to finance short-term credit needs),
United States Government Securities, high-quality debt securities (including
"Eurodollar" and "Yankee Dollar" obligations, i.e., U.S. issuer borrowings
payable overseas in U.S. funds and obligations of foreign issuers payable in
U.S. funds), non-convertible preferred stocks and obligations of banks when in
the judgment of the Portfolio Manager such investments are appropriate in light
of economic or market conditions. The International Growth Portfolio may invest
in all of the above, both foreign and domestic, including foreign currency,
foreign
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time deposits, and foreign bank acceptances. When a Portfolio takes a defensive
position, it may not be following the fundamental investment policy of the
Portfolio.
Tax Considerations
To the extent that the High-Yield Bond Portfolio invests in securities
structured as zero coupon bonds, the Portfolio will be required to report
interest income even though no cash interest payment is received until maturity
of the bond. Investors in the High-Yield Bond Portfolio would be taxed on this
interest income even though no cash distribution of such interest is received in
the year in which such income is taxed.
INVESTMENT RESTRICTIONS
Each Portfolio is subject to certain investment restrictions which,
together with its investment objective, are fundamental policies changeable only
by shareholder vote. Under some of those restrictions, each Portfolio may not:
1. Invest more than 5% of the value of its total assets in the securities
of any one issuer, or purchase more than 10% of the voting securities, or more
than 10% of any class of security, of any issuer (for this purpose all
outstanding debt securities of an issuer are considered as one class and all
preferred stock of an issuer are considered as one class).
2. Concentrate its investments in any particular industry, but if deemed
appropriate for attaining its investment objective, a Portfolio may invest up to
25% of its total assets (valued at the time of investment) in any one industry
classification used by that Portfolio for investment purposes.
3. Invest more than 5% of the value of its total assets in securities of
issuers having a record, together with predecessors, of less than three years of
continuous operation.
4. Make loans, except through the purchase of U.S. Government securities
and corporate debt obligations, repurchase agreements or lending portfolio
securities as described above under "Loans of Portfolio Securities."
5. Borrow money in excess of 10% of the value of its total assets. It may
borrow only as a temporary measure for extraordinary or emergency purposes and
will make no additional investments while such borrowings exceed 5% of the total
assets. Such prohibition against borrowing does not prohibit escrow or other
collateral or margin arrangements in connection with the hedging instruments
which a Portfolio is permitted to use by any of its other fundamental policies.
6. Invest more than 10% of its net assets in illiquid securities
(securities for which market quotations are not readily available) and
repurchase agreements which have a maturity of longer than seven days. Other
investment restrictions are described in the Statement of Additional
Information.
All percentage limitations apply immediately after a purchase or initial
investment and any subsequent change in any applicable percentage resulting from
market fluctuations or other changes in the amount of total assets does not
require elimination of any security from a Portfolio.
MANAGEMENT OF THE FUND
The Fund's Board of Trustees has overall responsibility for the management
of the Fund under the laws of Massachusetts governing the responsibilities of
trustees of a Massachusetts business trust. In general, such responsibilities
are comparable to those of directors of a Massachusetts business corporation.
The Board of Trustees of the Fund has undertaken to monitor the Fund for the
existence of any material irreconcilable conflict between the interests of
variable annuity Contractholders and variable life insurance Contractholders and
shall report any such conflict to the boards of MONY and MONY America. The
Boards of Directors of those companies have agreed to be responsible for
reporting any potential or existing conflicts to the Trustees of the Fund and,
at their own cost, to remedy such conflict up to and including establishing a
new registered management investment company and segregating the assets
underlying the variable annuity contracts and the
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variable life insurance contracts. The Statement of Additional Information
contains information about the Trustees and Officers of the Fund.
INVESTMENT ADVISER AGREEMENT
Enterprise Capital provides administrative services to the Portfolios,
subject to the direction of the Board and in keeping with the stated investment
objectives of each Portfolio. Enterprise Capital and the Fund have entered into
Portfolio Manager Agreements with each of the Portfolio Managers discussed
below.
Enterprise Capital is assisted in this duty by Evaluation Associates, Inc.,
which has had 24 years of experience in evaluating investment advisers for
individuals and institutional investors. The oversight and management services
provided by Enterprise Capital include (i) supervising the Portfolio Managers'
compliance with state and federal regulations, including the Investment Company
Act, (ii) evaluating the Portfolio Managers' performance, (iii) analyzing the
composition of the investment portfolios of each Portfolio of the Fund and
preparing reports thereon for the Board or any committee of the board, (iv)
evaluating each Portfolio's performance in comparison to similar mutual funds
and other market information, (v) conducting searches, upon a request of the
Board, for a replacement for any Portfolio Manager then serving the Fund, and
(vi) preparing presentations to shareholders which analyze the Fund's overall
investment program and performance.
Enterprise Capital is a subsidiary of MONY, one of the nation's largest
insurance companies. Enterprise Capital serves as the investment adviser to The
Enterprise Group of Funds, Inc., a registered investment company consisting of
ten separate investment portfolios with assets of $737 million at March 31,
1996. Total assets under management at March 31, 1996 are approximately $2.62
billion. Enterprise Capital's address is Atlanta Financial Center, 3343
Peachtree Road, Ste. 450, Atlanta, Georgia 30326-1022. MONY's address is 1740
Broadway, New York, New York 10019.
PORTFOLIO MANAGERS
Equity Portfolio
The Portfolio Manager of the Equity Portfolio is OpCap Advisors which is a
subsidiary of Oppenheimer Capital, a general partnership. The Portfolio Manager
and its affiliates have operated as investment advisers to both mutual funds and
other clients since 1968, and had approximately $40 billion under management as
of March 31, 1996. Eileen Rominger, Senior Vice President of Oppenheimer
Capital, is responsible for the day-to-day management of the Portfolio. Ms.
Rominger has more than 17 years experience in the investment industry. The
annual Management Fee is .80% of average daily net assets up to $400 million;
.75% of average daily net assets from $400 million to $800 million; and .70% of
average daily net assets in excess of $800 million, and the Portfolio Manager
receives .40% of average daily net assets up to $1,000,000,000 and .30%
thereafter. Usual investment minimum is $10 million. Representative clients
include Pacific Telesis Group, Caterpillar, Inc. and NY State Electric & Gas
OpCap's address is One World Financial Center, New York, New York 10281.
Small Cap Portfolio
The Portfolio Manager of the Small Cap Portfolio is GAMCO Investors, Inc.
("GAMCO"). Its offices are located at One Corporate Center, Rye, New York 10580.
GAMCO is a majority owned subsidiary of Gabelli Funds, Inc. GAMCO's predecessor,
Gabelli & Company, Inc., was founded in 1977 by Mario J. Gabelli, who served as
its chief investment officer since inception. Mr. Gabelli is responsible for the
day-to-day management of the Portfolio. He has more than 30 years experience in
the investment industry. Representative clients include: AT&T; Halliburton Co.
and ITT Corp. As of March 31, 1996, total assets under management for all
clients were $5.1 billion. Usual investment minimum is $1 million. The annual
Management Fee is .80% of average daily net assets up to $400 million; .75% of
average daily net assets from $400 million to $800 million; and .70% of average
daily net assets in excess of $800 million; and the Portfolio Manager receives
.40% of average daily net assets up to $1,000,000,000 and .30% thereafter.
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International Growth Portfolio
The Portfolio Manager of the International Growth Portfolio is Brinson
Partners, Inc. which is a wholly owned subsidiary of Brinson Holdings, Inc. and
is an acquisition of Swiss Bank Corporation presently pending. Investments of
the International Growth Portfolio are managed by a committee of the Portfolio
Manager. As of December 31, 1995, Brinson Partners Inc.'s assets under
management for all clients approximated $53 billion. Usual investment minimum:
$25 million. Representative clients not disclosed due to confidentiality
agreements. Brinson's address is 209 South LaSalle Street, Chicago, Illinois
60604. The annual Management Fee is .85% of average daily net assets, and the
Portfolio Manager receives 53% of that fee for assets under management up to
$100 million; 41% of that fee for assets under management from $100 million to
$200 million; 38% of that fee for assets from $200 million to $500 million; and
29% of that fee for assets greater than $500 million.
Managed Portfolio
The Portfolio Manager of the Managed Portfolio is OpCap Advisors, described
in the paragraph referencing the Equity Portfolio. Richard J. Glasebrook II,
Managing Director of Oppenheimer Capital, is responsible for the day-to-day
management of the Portfolio. He has more than 22 years of investment industry
experience. The annual Management Fee is .80% of average daily net assets up to
$400 million; .75% of average daily net assets from $400 million to $800
million; and .70% of average daily net assets in excess of $800 million, and the
Portfolio Manager receives .40% of average daily net assets up to $1,000,000,000
and .30% thereafter.
High-Yield Bond Portfolio
The Portfolio Manager of the High-Yield Bond Portfolio is Caywood-Scholl
Capital Management ("Caywood-Scholl"). This firm was formed in April 1986 and is
owned by its employees. Mr. Caywood, Managing Director and Chief Executive
Officer, is responsible for the day-to-day management of the Portfolio. He has
more than 27 years investment industry experience. Caywood-Scholl provides
investment advice exclusively with respect to high-yield, low grade fixed income
instruments. As of March 31, 1994, assets under management for all clients
approximated $643 million. Usual investment minimum: $1 million. Representative
clients include: Hospital Corporation of America; Colonial Penn Insurance; and
Golden Rule Insurance. The address of Caywood-Scholl Capital Management is 4350
Executive Drive, Suite 125, San Diego, California 92121. The annual Management
Fee is .60% of average daily net assets, and the Portfolio Manager receives 50%
of that fee for assets up to $100,000,000 and 42% of that fee for assets above
$100,000,000.
General Portfolio Information
Under the Investment Adviser Agreement, each Portfolio is responsible for
bearing organizational expenses, taxes and governmental fees; brokerage
commissions, interest and other expenses incurred in acquiring and disposing of
portfolio securities; Trustees' fees, out of pocket travel expenses and other
expenses for trustees who are not interested persons; legal, fund accounting and
audit expenses; custodian, dividend disbursing and transfer agent fees; and
other expenses not expressly assumed by Enterprise Capital under the Investment
Adviser Agreement.
The Statement of Additional Information contains more information about the
Investment Adviser Agreement, including a more complete description of the
management fee and expense arrangements, exculpation provisions and portfolio
transactions for the Fund.
DETERMINATION OF NET ASSET VALUE
The net asset value per share is calculated separately for each Portfolio.
The net asset value of each Portfolio is determined at the close of the regular
trading session ("Close") of the New York Stock Exchange ("NYSE") (currently
4:00 p.m. Eastern Time) each day the NYSE is open and on each other day on which
there is a sufficient degree of trading in any Portfolio's portfolio securities
affecting materially the value of
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such securities (if the Fund receives a request to redeem its shares that day),
by dividing the value of the Portfolio's net assets by the number of shares
outstanding. The Fund's Board of Trustees has established procedures to value
the Portfolios' securities to determine net asset value; in general, those
valuations are based on market value, with special provisions for (i) securities
(including restricted securities) not having readily available market quotations
and (ii) short-term debt securities. Further details are in the Statement of
Additional Information.
PURCHASE OF SHARES
Investments in the Fund may be made by the Variable Accounts. Persons
desiring to purchase Contracts funded by any Portfolio or Portfolios of the Fund
should read this Prospectus in conjunction with the Prospectus of the
Contract(s).
Shares of each Portfolio of the Fund are offered to the Variable Accounts
without sales charge at the respective net asset values of the Portfolios next
determined after receipt by the Fund of the purchase payment in the manner set
forth above under "Determination of Net Asset Value." Certificates representing
shares of the Fund will not be physically issued. Enterprise Fund Distributors,
Inc. acts without remuneration from the Fund as the exclusive Distributor of the
Fund's shares. The principal executive office of the Distributor is located at
Atlanta Financial Center, 3343 Peachtree Road, N.E., Suite 450, Atlanta, Georgia
30326-1022.
REDEMPTION OF SHARES
Shares of any Portfolio of the Fund can be redeemed by the Variable
Accounts at any time for cash, at the net asset value next determined after
receipt of the redemption request in proper form. The market value of the
securities in each of the Portfolios is subject to daily fluctuation and the net
asset value of each Portfolio's shares will fluctuate accordingly. The
redemption value of the Fund's shares may be either more or less than the
original cost to the Variable Account. Payment for redeemed shares is ordinarily
made within seven days after receipt by the Fund's transfer agent of redemption
instructions in proper form. The redemption privilege may be suspended and
payment postponed during any period when: (1) the New York Stock Exchange is
closed other than for customary weekend or holiday closings or trading thereon
is restricted as determined by the Securities and Exchange Commission; (2) an
emergency, as defined by the Securities and Exchange Commission exists making
trading of portfolio securities or valuation of net assets not reasonably
practicable; (3) the Securities and Exchange Commission has by order permitted
such suspension.
STATE LAW RESTRICTIONS
The investments of the MONY and MONY America Variable Accounts are subject
to the provisions of the New York and Arizona insurance law, respectively,
applicable to the investments of life insurance company separate accounts.
Although these state law investment restrictions do not apply directly to the
Fund, the Portfolios will comply, without the approval of shareholders, with
such statutory requirements, as they exist or may be amended.
Under pertinent provisions of New York law, as they currently exist, the
assets of the Variable Accounts of MONY may be invested in any investments (1)
permitted by agreement between these Variable Accounts and their Contractholders
and (2) acquired in good faith and with that degree of care in acquiring
investments that an ordinarily prudent person in a like position would use under
similar circumstances. The only agreement with Contractholders pertaining to
investments permitted for the Variable Accounts is as described in the
prospectuses for the Contracts, namely that the Variable Accounts will invest
only in shares of the Fund. The investment of the assets of the Fund are subject
to the investment objectives, policies and restrictions applicable to the
Portfolios, as described in this prospectus (see "Investment Objectives And
Policies" at page 9 and "Investment Restrictions" at page 17 and Statement of
Additional Information, "Investment Restrictions").
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The pertinent provisions of Arizona law, as they currently exist, are in
summary form as follows:
The assets of Variable Accounts established by MONY America may be
invested in any investments that are of the kind permitted and that satisfy
the quantitative requirements, but without regard to quantitative
restrictions. Bonds, debentures, notes, commercial paper and other
evidences of indebtedness, and preferred, guaranteed or preference stock
must have received an investment grade rating approved by the Director of
Insurance. Funds may not be invested in foreign banks (other than foreign
branches of domestic banks) except that investments may be made in
obligations issued, assumed or guaranteed by the International Bank for
Reconstruction and Development. Investments not otherwise permitted under
Arizona law may be made in an amount not exceeding in the aggregate 10
percent of assets and not exceeding 2 percent of assets as to any one such
investment.
Although compliance with New York and Arizona laws described above will
ordinarily result in compliance with any applicable laws of other states, under
some circumstances the laws of other states could impose additional
restrictions. Accordingly, if any state or other jurisdiction in which the
Variable Accounts propose to do business imposes limits applicable to the
Variable Accounts, in addition to any imposed by New York and Arizona law, the
Fund will comply with such further investment limits.
DIVIDENDS, DISTRIBUTIONS AND TAXES
Each Portfolio intends to distribute substantially all of its net
investment income and any net realized capital gains. Dividends from net
investment income and any distributions of realized capital gains will be paid
in additional shares of the Portfolio paying the dividend or making the
distribution and credited to the shareholder's account unless the shareholder
elects to receive such dividends or distributions in cash.
Equity, Small Cap, International Growth and Managed Portfolios. Dividends
from net investment income, if any, on the Small Cap, Equity, International
Growth and Managed Portfolios will be declared and paid at least annually, and
any net realized capital gains will be declared and paid at least once per
calendar year.
High-Yield Bond Portfolio. Dividends from investment income are declared
and paid quarterly. Distributions of realized net short-term capital gains, if
any, and realized long-term capital gains will be declared and paid at least
once per calendar year.
Taxes. Because the Fund intends to distribute all of the net investment
income and capital gains of each Portfolio and otherwise qualify each Portfolio
as a regulated investment company under Subchapter M of the Internal Revenue
Code, it is not expected that any Portfolio of the Fund will be required to pay
any federal income tax on such income and capital gains. Since the Variable
Accounts are the shareholders of the Fund, no discussion is presented herein as
to the federal income tax consequences at the shareholder level. For information
concerning the federal income tax consequences to Contractholders, see the
accompanying Prospectus for the Contracts.
CALCULATION OF PERFORMANCE
From time to time the performance of one or more of the Portfolios may be
advertised. The performance data contained in these advertisements is based upon
historical earnings and is not indicative of future performance. The data for
each Portfolio reflects the results of that Portfolio of the Fund and recurring
charges and deductions borne by or imposed on the Portfolio. As the performance
for any Portfolio does not include charges and deductions under the Contracts,
comparisons with other portfolios used in connection with different variable
accounts may not be useful. Set forth below for each Portfolio is the manner in
which the data contained in such advertisements will be calculated.
The performance data for these Portfolios will reflect the "yield" and
"total return". The "yield" of each of these Portfolios refers to the income
generated by an investment in that Portfolio over the 30-day period stated in
the advertisement and is the result of dividing that income by the value of the
Portfolio. The value of each Portfolio is the average daily number of shares
outstanding multiplied by the net asset value per share on
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the last day of the period. "Total Return", for each of these Portfolios refers
to the value a Shareholder would receive on the date indicated if a $1,000
investment had been made the indicated number of years ago. It reflects
historical investment results less charges and deductions of the Fund.
In addition, reference in advertisements may be made to various indices,
including, without limitation, the Standard & Poor's 500 Stock Index, the
Russell 2000 and the Lehman Brothers Corporate/Government Index, and various
rankings by independent evaluators such as Morningstar and Lipper Analytical
Services, Inc. in order to provide the reader a basis for comparison.
ADDITIONAL INFORMATION
Organization of the Fund. The Fund, under the name of Quest for Value
Accumulation Trust, was organized as a Massachusetts business trust on March 2,
1988, and is registered with the Securities and Exchange Commission as an
open-end diversified management investment company. The Fund changed its name to
the Enterprise Accumulation Trust on September 16, 1994. When issued, shares are
fully paid and have no preemptive or conversion rights. The shares of beneficial
interest of the Fund, $0.01 par value, are divided into five separate series.
The shares of each series are freely transferable and equal as to earnings,
assets and voting privileges with all other shares of that series. There are no
conversion, preemptive or other subscription rights. Upon liquidation of the
Fund or any Portfolio, shareholders of a Portfolio are entitled to share pro
rata in the net assets of that Portfolio available for distribution to
shareholders after all debts and expenses have been paid. The shares do not have
cumulative voting rights.
The Fund's Board of Trustees, whose responsibilities are comparable to
those of directors of a Massachusetts corporation, is empowered to issue
additional classes of shares, which classes may either be identical except as to
dividends or may have separate assets and liabilities. Classes having separate
assets and liabilities are referred to as "series". The creation of additional
series and offering of their shares (the proceeds of which would be invested in
separate, independently managed portfolios with distinct investment objectives,
policies and restrictions) would not affect the interests of the current
shareholders in the existing Portfolios.
The assets received by the Fund on the sale of shares of each Portfolio and
all income, earnings, profits and proceeds thereof, subject only to the rights
of creditors, are allocated to each Portfolio, and constitute the assets of such
Portfolio. The assets of each Portfolio are required to be segregated on the
Fund's books of account. The Fund's Board of Trustees has agreed to monitor the
portfolio transactions and management of each of the Portfolios and to consider
and resolve any conflict that may arise. Direct expenses will be allocated to
each Portfolio and general expenses of the Fund will be prorated by total net
assets.
Voting. For matters affecting only one Portfolio, only the shareholders of
that Portfolio are entitled to vote. For matters relating to all the Portfolios
but affecting the Portfolios differently, separate votes by the Portfolio are
required. Approval of an Investment Management or Portfolio Manager Agreements
and a change in fundamental policies would be regarded as matters requiring
separate voting by each Portfolio. To the extent required by law, the Variable
Accounts, which are the shareholders of the Fund, will vote the shares of the
Fund, or any Portfolio of the Fund, held in the Variable Accounts in accordance
with instructions from Contractholders, as described under the caption "Voting
Rights" in the accompanying Prospectus for the Contracts. Shares for which no
instructions are received from Contractholders, as well as shares which
Enterprise Capital or its parent, MONY, may own, will be voted in the same
proportion as shares for which instructions are received. The Fund does not
intend to hold annual meetings of shareholders. However, the Board of Trustees
will call special meetings of shareholders for action by shareholder vote as may
be requested in writing by holders of 10% or more of the outstanding shares of a
Portfolio or as may be required by applicable laws or the Declaration of Trust
pursuant to which the Fund has been organized.
Under Massachusetts law shareholders could, in certain circumstances, be
held personally liable as partners for Fund obligations. The Fund's Declaration
of Trust contains an express disclaimer of shareholder liability for acts or
obligations of the Fund and requires that notice of such disclaimer be given in
each instrument entered into or executed by the Fund. The Declaration of Trust
also provides for indemnification out of the Fund's property for any shareholder
held personally liable for any Fund obligation. Thus, the risk of
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loss to a shareholder from being held personally liable for obligations of the
Fund is limited to the unlikely circumstance in which the Fund itself would be
unable to meet its obligations.
Custodian and Transfer Agent. The custodian of the assets of the Fund is
State Street Bank and Trust Company, P.O. Box 8505, Boston, MA 02266-8505, which
also acts as transfer agent and shareholder servicing agent for the Fund.
Contractholder Inquiries. Inquiries concerning the purchase and sale of
shares of the Fund as well as inquiries concerning dividends and account
statements should be directed to MONY. Inquiries concerning management and
investment policies of the Fund should be directed to Enterprise Capital, 3343
Peachtree Road, Ste. 450, Atlanta, Georgia 30326; or telephone 1-800-432-4320.
Annual Report. The Fund's latest annual report, which includes the
Management's Discussion and Analysis, is available upon request and without
charge upon written request to MONY, Mail Drop 76-18, 500 Frank W. Burr Blvd.,
Teaneck, New Jersey 07666-6888.
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APPENDIX
DESCRIPTION OF COMMERCIAL PAPER AND CORPORATE BOND RATINGS
Commercial Paper Ratings
Moody's commercial paper ratings are opinions of the ability of issuers to
repay promissory obligations when due. Moody's employs the following three
designations, all judged to be investment grade, to indicate the relative
repayment capacity of rated issuers: Prime 1 -- Superior Ability for Repayment;
Prime 2 -- Strong Ability for Repayment; Prime 3 -- Acceptable Ability for
Repayment.
S & P's commercial paper rating is a current assessment of the likelihood
of timely payment. Ratings are graded into four categories, ranging from "A" for
the highest quality obligations to "D" for the lowest. Issues assigned the
highest rating, "A", are regarded as having the greatest capacity for timely
payment. Issues in this category are delineated with the numbers "1", "2", and
"3" to indicate the relative degree of safety. The designation "A-1" indicates
that the degree of safety regarding timely payment is either overwhelming or
very strong. The "A+" designation is applied to those issues rated "A-1" which
possess overwhelming safety characteristics. Capacity for timely payment on
issues with the designation "A-2" is strong. However, the relative degree of
safety is not as high as for issues designated "A-1."
Fitch's commercial paper ratings represent Fitch's assessment of the
issuer's ability to meet its obligations in a timely manner. The assessment
places emphasis on the existence of liquidity. Ratings range from "F-1+" which
represents exceptionally strong credit quality to "F-4" which represents weak
credit quality.
Duff's short-term ratings apply to all obligations with maturities of under
one year, including commercial paper, the uninsured portion of certificates of
deposit, unsecured bank loans, master notes, bankers' acceptances, irrevocable
letters of credit and current maturities of long-term debt. Emphasis is placed
on liquidity. Ratings range for Duff 1+ for the highest quality to Duff 5 for
the lowest, issuers in default. Issues rated Duff 1+ are regarded as having the
highest certainty of timely payment. Issues rated Duff 1 are regarded as having
very high certainty of timely payment.
Thomson's BankWatch, Inc. ("TBW") assigns only one Issuer Rating to each
company, based upon a qualitative and quantitative analysis of the consolidated
financials of an issuer and its subsidiaries. The rating incorporates TBW's
opinion of the vulnerability of the company to adverse developments which may
impact the marketability of its securities, as well as the issuer's ability to
repay principal and interest. Ratings range from "A" for highest quality to "E"
for the lowest, companies with very serious problems.
Bond Ratings
A bond rated "Aaa" by Moody's is judged to be the best quality. They carry
the smallest degree of investment risk. Interest payments are protected by a
large or by an exceptionally stable margin and principal is deemed secure. While
the various protective elements may change, such foreseeable changes are
unlikely to impair the fundamentally strong position of such issues. Bonds which
are rated "Aa" are judged to be of high quality by all standards. Together with
the "Aaa" group they comprise what are generally known as high grade bonds.
Margins of protection on "Aa" bonds may not be as large as on "Aaa" securities
or fluctuations of protective elements may be of greater magnitude or there may
be other elements present which make the long-term risks appear somewhat larger
than "Aaa" securities. Bonds which are rated "A" possess many favorable
investment attributes and are to be considered as upper medium grade
obligations. Factors giving security to principal and interest are considered
adequate but elements may be present which suggest a susceptibility to
impairment some time in the future. Bonds rated "Baa" are considered medium
grade obligations whose interest payments and principal security appear adequate
for the present but may lack certain protective elements or may be
characteristically unreliable over any great length of time. Moody's applies
numerical modifiers "1," "2" and "3" in each generic rating classification from
"Aa" through "B" in its corporate bond rating system. The modifier "1" indicates
that the security ranks in the higher end of its generic rating category; the
modifier "2" indicates a mid-range ranking; and the modifier "3" indicates that
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the issue ranks in the lower end of its generic rating category. Bonds rated
"Ba" are judged to have speculative elements and bonds rated below "Ba" are
speculative to a higher degree.
Debt rated "AAA" by S & P has the highest rating assigned by it. Capacity
to pay interest and repay principal is extremely strong. Debt rated "AA" has a
strong capacity to pay interest and repay principal and differs from "AAA"
issues only in small degree. Debt rated "A" has a strong capacity to pay
interest and repay principal although it is somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than debt in
higher rated categories. Debt rated "BBB" is regarded as having an adequate
capacity to pay interest and repay principal. Whereas it normally exhibits
adequate protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay interest and
repay principal for debt in this category than in higher rated categories. Debt
rated "BB" and below is regarded as having predominantly speculative
characteristics with respect to capacity to pay interest and repay principal.
Debt rated "AAA", the highest rating by Fitch, is considered to be of the
highest credit quality. The obligor has an exceptionally strong ability to pay
interest and repay principal, which is unlikely to be affected by reasonably
foreseeable events. Debt rated "AA" is regarded as very high credit quality. The
obligor's ability to pay interest and repay principal is very strong. Debt rated
"A" is of high credit quality. The obligor's ability to pay interest and repay
principal is considered to be strong, but may be more vulnerable to adverse
changes in economic conditions and circumstances than debt with higher ratings.
Debt rated "BBB" is of satisfactory credit quality. The obligor's ability to pay
interest and repay principal is adequate; however, a change in economic
conditions may adversely affect timely payment. Plus (+) and minus (-) signs are
used with a rating symbol (except "AAA") to indicate the relative position
within the category.
Debt rated "AAA", the highest rating by Duff's, is considered to be of the
highest credit quality. The risk factors are negligible being only slightly more
than for risk-free U.S. Treasury debt. Debt rated "AA" is regarded as high
credit quality. Protection factors are strong. Risk is modest but may vary
slightly from time-to-time because of economic conditions. Debt rated "A" is
considered to have average but adequate protection factors. Bonds rated "BBB"
are considered to have below average protection factors but still sufficient for
prudent investment. Bonds rated "BB" and below are below investment grade and
possess fluctuating protection factors and risk.
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<TABLE>
<S> <C>
The Mutual Life Insurance Company of New York -------------
Administrative Offices
1740 Broadway, New York, NY 10019 Bulk Rate
U.S. Postage
P A I D
Permit No.
4238
Syracuse, New
York
-------------
Form No. 14331 SL (10/96) [MONY LOGO]
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