MONY VARIABLE ACCOUNT L, S-6/A, 2000-11-09

MONY VARIABLE ACCOUNT L
S-6/A, 2000-11-09

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<PAGE> 1

REGISTRATION NOS. 333-40554

811-6217
FISCAL YEAR END DECEMBER 31
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

------------------------

FORM S-6

PRE-EFFECTIVE AMENDMENT NO. 1

------------------------

FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF SECURITIES
OF UNIT INVESTMENT TRUSTS REGISTERED ON FORMS N-8B-2

MONY VARIABLE ACCOUNT L
(EXACT NAME OF TRUST)

MONY LIFE INSURANCE COMPANY
(NAME OF DEPOSITOR)

1740 BROADWAY
NEW YORK, NEW YORK 10019
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)

FREDERICK C. TEDESCHI
VICE PRESIDENT AND CHIEF COUNSEL -- OPERATIONS
MONY LIFE INSURANCE COMPANY
1740 BROADWAY
NEW YORK, NEW YORK 10019
(NAME AND ADDRESS OF AGENT FOR SERVICE)

APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING: As soon as possible after the
effective date of this Registration Statement.

Pursuant to Rule 24f-2 of the Investment Company Act of 1940, the
Registrant hereby declares that an indefinite amount of its securities is being
registered under the Securities Act of 1933.

Registrant hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until Registrant shall file a
further amendment which specifically states that this Registration Statement
shall become effective in accordance with Section 8(a) of the Securities Act of
1933 or until this Registration Statement shall become effective on such date as
the Commission, acting pursuant to said Section 8(a), may determine.

------------------------

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE> 2

CROSS REFERENCE TO ITEMS REQUIRED BY FORM N-8B-2

<TABLE>
<CAPTION>
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
----------- ---------------------
<S> <C>
1 Cover Page
2 Cover Page
3 Not applicable
4 Distribution of the Policy
5 Detailed Information About the Company and MONY Variable
Account L
6 MONY Variable Account L
7 Not required
8 Not required
9 Legal Proceedings
10 Detailed Information About the Policy; Detailed Information
About the Company and MONY Variable Account L; Charges and
Deductions; Other Information; Voting of Fund Shares; More
About the Policy
11 Detailed Information About the Company and MONY Variable
Account L; The Funds; Purchase of Portfolio Shares by MONY
Variable Account L
12 Detailed Information About the Company and MONY Variable
Account L; The Funds; Purchase of Portfolio Shares by MONY
Variable Account L
13 Detailed Information About the Policy; Charges and
Deductions; The Funds
14 Detailed Information About the Policy
15 Detailed Information About the Policy
16 The Funds; Detailed Information About the Policy; Detailed
Information About the Company and MONY Variable Account L
17 Detailed Information About the Policy
18 The Funds; Detailed Information About the Policy; Detailed
Information About the Company and MONY Variable Account L
19 Voting of Fund Shares; More About the Policy
20 Not applicable
21 Detailed Information About the Policy
22 Not applicable
23 Not applicable
24 Important Terms; More About the Policy
25 Detailed Information About the Company and MONY Variable
Account L
26 Not applicable
27 Detailed Information About the Company and MONY Variable
Account L
28 Detailed Information About the Company and MONY Variable
Account L
29 Detailed Information About the Company and MONY Variable
Account L
30 Not applicable
31 Not applicable
32 Not applicable
33 Not applicable
34 Not applicable
35 More About the Policy
36 Not applicable
37 Not applicable
38 Information About the Company and MONY Variable Account L;
More About the Policy
39 More About the Policy
40 Not applicable
41 More About the Policy
42 Not applicable
43 Not applicable
</TABLE>
<PAGE> 3

<TABLE>
<CAPTION>
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
----------- ---------------------
<S> <C>
44 Detailed Information About the Company and MONY Variable
Account L; Detailed Information About the Policy; More About
the Policy
45 Not applicable
46 Detailed Information About the Company and MONY Variable
Account L; Detailed Information About the Policy; More About
the Policy
47 Detailed Information About the Company and MONY Variable
Account L; Detailed Information About the Policy; More About
the Policy
48 Not applicable
49 Not applicable
50 Detailed Information About the Company and MONY Variable
Account L
51 Cover Page; Detailed Information About the Company and MONY
Variable Account L; Detailed Information About the Policy;
More About the Policy
52 Other Information
53 Other Information
54 Not applicable
55 Not applicable
56 Not required
57 Not required
58 Not required
59 Financial Statements
</TABLE>
<PAGE> 4

PROSPECTUS

Dated January 9, 2001

Flexible Premium Variable Life Insurance Policy

Issued by

MONY Life Insurance Company
MONY Variable Account L

MONY Life Insurance Company (the "Company") issues a flexible premium variable
life insurance policy described in this Prospectus. Among the policy's many
terms are:

Allocation of Premiums and Cash Values:

- The policy owner can tell us what to do with the premium payments. The policy
owner can also tell us what to do with the cash values the policy may create
as a result of those premium payments.

- The policy owner can tell us to place them into a separate account. That
separate account is called MONY Variable Account L.

- If the policy owner does, the owner can also tell us to place premium
payments and cash values into any or all of 37 different subaccounts.
Each of these subaccounts seeks to achieve a different investment
objective. If the policy owner tells us to place the premium payments
and cash values into one or more subaccounts of the separate account,
the policy owner bears the risk that the investment objectives will
not be met. That risk includes not earning any money on premium
payments and cash values and also that premium payments and cash value
may lose some or all of their value.

- The policy owner can also tell us to place some or all of the premium
payments and cash values into our account. Our account is called the
Guaranteed Interest Account. If the policy owner elects the Guaranteed
Interest Account, we will guarantee that those premium payments and cash
values will not lose any value. We also guarantee that we will pay not
less than 4.0% interest annually. We may pay more than 4.0% if we choose.
Premium payments and cash values the policy owner places into the
Guaranteed Interest Account become part of our assets.

Death Benefit:

- We will pay death benefit proceeds to the named beneficiary if the insured
dies before age 95 while the policy is in effect. The death proceeds will
never be less than the amount specified in the policy. It may be greater than
the amount specified if the policy's cash values increase.

Living Benefits:

- The policy owner may ask for some or all of the policy's cash value at any
time. The policy owner may borrow up to 90% of the policy's cash value from us
at any time. The policy owner will have to pay interest to us on the amount
borrowed.

Charges and Fees:

- The policy allows us to deduct certain charges from the cash value. These
charges are detailed in the policy and in this prospectus.

THESE ARE ONLY SOME OF THE TERMS OF THE POLICY.
PLEASE READ THE PROSPECTUS CAREFULLY FOR MORE COMPLETE DETAILS OF THE POLICY.

Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or passed upon the
adequacy or accuracy of the prospectus. Any representation to the contrary is a
criminal offense. This prospectus comes with prospectuses for the MONY Series
Fund, Inc., Enterprise Accumulation Trust, the T. Rowe Price Equity Series,
Inc., the T. Rowe Price Fixed Income Series, Inc., the T. Rowe Price
International Series, Inc., the Dreyfus Variable Investment Fund, The Dreyfus
Socially Responsible Growth Fund, Inc., the Dreyfus Stock Index Fund, the Van
Eck Worldwide Insurance Trust, The Universal Institutional Funds, Inc., Fidelity
Variable Insurance Products Fund, Fidelity Variable Insurance Products Fund II,
Fidelity Variable Insurance Products Fund III and Janus Aspen Series. You should
read these prospectuses carefully and keep them for future reference.

MONY Life Insurance Company
1740 Broadway, New York, New York 10019
1-800-487-6669

THIS PROSPECTUS MUST BE ACCOMPANIED BY, AND IS NOT VALID WITHOUT,
THE PROSPECTUSES FOR THE UNDERLYING FUNDS.
<PAGE> 5

[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 6

TABLE OF CONTENTS

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Summary of the Policy....................................... 1
Important Policy Terms.................................... 1
Purpose of the Policy..................................... 1
Explanation of a Case..................................... 2
Policy Premium Payments and Values........................ 2
Charges and Deductions.................................... 3
Fees and Expenses of the Funds............................ 4
The Death Benefit......................................... 11
Premium Features.......................................... 12
MONY Variable Account L................................... 12
Allocation Options........................................ 12
Transfer of Account Value................................. 12
Policy Loans.............................................. 12
Full Surrender............................................ 13
Partial Surrender......................................... 13
Right to Return Policy Period............................. 13
Grace Period and Lapse.................................... 13
Tax Treatment of Increases in Account Value............... 13
Tax Treatment of Death Benefit............................ 14
Riders.................................................... 14
Contacting the Company.................................... 14
Understanding the Policy.................................. 15
Detailed Information About the Company And MONY Variable
Account L................................................. 16
MONY Life Insurance Company............................... 16
Effects of Inflation...................................... 16
MONY Variable Account L................................... 16
The Funds................................................... 24
MONY Series Fund, Inc..................................... 24
Enterprise Accumulation Trust............................. 24
T. Rowe Price Equity Series, Inc.......................... 27
T. Rowe Price Fixed Income Series, Inc.................... 27
T. Rowe Price International Series, Inc................... 27
Van Eck Worldwide Insurance Trust......................... 27
Dreyfus Variable Investment Fund.......................... 28
The Dreyfus Socially Responsible Growth Fund, Inc......... 28
Dreyfus Stock Index Fund.................................. 28
The Universal Institutional Funds, Inc.................... 29
Fidelity Insurance Products Fund.......................... 29
Fidelity Insurance Products Fund II....................... 29
Fidelity Insurance Products Fund III...................... 29
Janus Aspen Series........................................ 31
Purchase of Portfolio Shares by MONY Variable Account L... 32
Detailed Information About The Policy....................... 33
Application for a Policy.................................. 33
Right to Examine a Policy -- Right to Return Policy
Period................................................. 35
Premiums.................................................. 35
Choice of Definition of Life Insurance.................... 36
</TABLE>

i
<PAGE> 7

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Guaranteed Death Benefit.................................. 36
Allocation of Net Premiums................................ 37
Death Benefits under the Policy........................... 37
Death Benefit Options..................................... 38
Changes in Death Benefit Amounts.......................... 39
Guaranteed Paid-Up Insurance.............................. 42
Guaranteed Death Benefit Rider............................ 42
Other Optional Insurance Benefits......................... 43
Benefits at Maturity...................................... 44
Policy Values............................................. 44
Determination of Account Value............................ 45
Calculating Unit Values for Each Subaccount............... 46
Transfer of Account Value................................. 46
Right to Exchange Policy.................................. 46
Policy Loans.............................................. 47
Full Surrender............................................ 48
Partial Surrender......................................... 48
Grace Period and Lapse.................................... 49
Charges and Deductions...................................... 52
Deductions from Premiums.................................. 53
Deductions from Account Value............................. 54
Guarantee of Certain Charges.............................. 56
Corporate Purchasers -- Reduction of Charges.............. 56
Other Information........................................... 56
Federal Income Tax Considerations......................... 56
Charge for Company Income Taxes........................... 60
Voting of Fund Shares..................................... 61
Disregard of Voting Instructions.......................... 61
Report to Policy Owners................................... 62
Substitution of Investments and Right to Change
Operations............................................. 62
Changes to Comply with Law................................ 63
Performance Information..................................... 63
The Guaranteed Interest Account............................. 64
General Description....................................... 64
Policy Charges............................................ 64
Transfers................................................. 65
Surrenders and Policy Loans............................... 65
More About The Policy....................................... 66
Ownership................................................. 66
Beneficiary............................................... 66
Notification and Claims Procedures........................ 66
Payments.................................................. 67
Payment Plan/Settlement Provisions........................ 67
Payment in Case of Suicide................................ 67
Assignment................................................ 67
Errors on the Application................................. 68
Incontestability.......................................... 68
Policy Illustrations...................................... 68
</TABLE>

ii
<PAGE> 8

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Distribution of the Policy................................ 68
Policy Owner Services..................................... 69
More About The Company...................................... 70
Management................................................ 70
State Regulation.......................................... 73
Records and Accounts...................................... 73
Legal Proceedings......................................... 73
Legal Matters............................................. 73
Registration Statement.................................... 74
Independent Accountants................................... 74
Financial Statements...................................... 74
Index to Financial Statements............................... F-1
Appendix A................................................ A-1
Appendix B................................................ B-1
Appendix C................................................ C-1
Appendix D................................................ D-1
Appendix E................................................ E-1
Appendix F................................................ F-1
Appendix G................................................ G-1
</TABLE>

iii
<PAGE> 9

[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 10

SUMMARY OF THE POLICY

This summary provides you with a brief overview of the more important
aspects of your policy. It is not intended to be complete. More detailed
information is contained in this prospectus on the pages following this Summary
and in your policy. This summary and the entire prospectus, will describe the
part of the policy involving Variable Account L. The prospectus also briefly
will describe the Guaranteed Interest Account. The Guaranteed Interest Account
is also described in your policy. BEFORE PURCHASING A POLICY, WE URGE YOU TO
READ THE ENTIRE PROSPECTUS CAREFULLY.

IMPORTANT POLICY TERMS

We are providing you with definitions for the following terms to make the
description of the policy provisions easier for you to understand.

Outstanding Debt -- The unpaid balance of any loan which the policy owner
requests on the policy. The unpaid balance includes accrued loan interest that
is due and has not been paid by the policy owner.

Loan Account -- An account to which amounts are transferred from the
subaccounts of MONY Variable Account L and the Guaranteed Interest Account as
collateral for any loan the policy owner requests. We will credit interest to
the Loan Account at a rate not less than 4.0%. The Loan Account is part of the
Company's general account.

Account Value -- The sum of the amounts under the policy held in each
subaccount of MONY Variable Account L, the Guaranteed Interest Account and the
Loan Account.

Cash Value -- The Account Value of the policy plus any refund of sales
charge.

Minimum Annual Premium -- The amount the Company determines is necessary to
keep the policy in effect.

Guaranteed Interest Account -- This account is part of the general account
of the Company. The policy owner may allocate all or a part of the policy's net
premium payments to this account. This account will credit the policy owner with
a fixed interest rate (which will not be less than 4.0%) declared by the
Company. (For more detailed information, see "The Guaranteed Interest Account,"
page 62.)

Specified Amount -- The minimum death benefit for as long as the policy
remains in effect.

Valuation Date -- Each day that the New York Stock Exchange is open for
trading.

Base Death Benefit -- Initially this is the Specified Amount for policies
under death benefit Option 1, or the Specified Amount plus the Account Value for
policies under death benefit Option 2.

Target Death Benefit -- The Target Death Benefit is the amount specified in
the application for the policy, or as changed by the policy owner from time to
time (Specified Amount) plus the Term Insurance Rider's benefit amount. You only
have a Target Death Benefit if you have a Term Insurance Rider.

PURPOSE OF THE POLICY

The policy offers insurance protection on the life of the insured. If the
insured is alive on the anniversary of the policy date when the insured is age
95, a maturity benefit will be paid instead of a death benefit. The policy
provides a base death benefit equal to (a) its Specified Amount, or (b) its
Specified Amount plus the Account Value. The policy also provides surrender and
loan privileges. The policy offers a choice of investment alternatives and an
opportunity for the policy's Account Value and its death benefit to grow based
on investment results. In addition, the policy owner chooses the amount and
frequency of premium payments, within certain limits.

1
<PAGE> 11

EXPLANATION OF A CASE

Each policy must be a part of a case. A case is a grouping of one or more
policies connected by a non-arbitrary factor. Examples of factors are
individuals who share a common employment, business or other relationship. The
sum of the premiums to be received by the Company in the first policy year for
the policies representing the case must be at least $100,000. The Company at its
sole discretion will determine what constitutes a case. A case may have one
policy owner (e.g., a single entity that owns all the policies in the case) or
as many policy owners as there are policies in the case.

POLICY PREMIUM PAYMENTS AND VALUES

The Company receives the policy premium payments. From those premium
payments, the Company makes deductions to pay premium and other taxes imposed by
state and local governments. The Company makes deductions to cover the cost to
the Company of a deferred acquisition tax imposed by the United States
government. The Company will also deduct a sales charge to cover the costs of
making the policies available to the public. After deduction of these charges,
the amount remaining is called the net premium payment.

The policy owner may allocate net premium payments among the various
subaccounts of MONY Variable Account L and/or the Guaranteed Interest Account.
The net premium payments the owner allocates among the various subaccounts of
MONY Variable Account L may increase or decrease in value on any day depending
on the investment experience of the subaccounts the owner selects. The death
benefit may or may not increase or decrease depending on several factors
including the death benefit option chosen. The death benefit will never decrease
below the Specified Amount of your policy.

Net premium payments allocated to the Guaranteed Interest Account will be
credited with interest at a rate determined by the Company. That rate will not
be less than 4.0%.

The value of the net premium payments allocated to MONY Variable Account L
and to the Guaranteed Interest Account are called the Account Value. There is no
guarantee that the policy's Account Value and death benefit will increase. You
bear the risk that the net premiums and Account Value allocated to MONY Variable
Account L may be worth more or less while the policy remains in effect.

If the owner cancels the policy and returns it to the Company during the
Right to Return Policy Period, premium payments will be returned to the owner by
the Company. After the Right to Return Policy Period, the owner may cancel your
policy by surrendering it to the Company. The Company will pay the owner the
Account Value plus any applicable refund of sales charges less any Outstanding
Debt. The Account Value plus any applicable refund of sales charge is called the
Cash Value of the policy.

Charges and fees such as the cost of insurance, administrative charges, and
mortality and expense risk charges are imposed by the policy. These charges and
fees are deducted by the Company from the policy's Account Value and are
described in further detail below.

The policy remains in effect until the earliest of:

- A grace period expires without the payment of sufficient additional
premium to cover policy charges or repayment of the Outstanding
Debt.

- Age 95.

- Death of the insured.

- Full surrender of the policy.

Generally, the policy remains in effect only as long as the Account Value
less Outstanding Debt is sufficient to pay all monthly deductions. However, a
Guaranteed Death Benefit Rider is also available at the time you purchase the
policy. It will extend the time during which the Specified Amount of the policy

2
<PAGE> 12

may remain in effect. The Guaranteed Death Benefit Rider requires the payment of
an agreed upon amount of premiums and is discussed below.

CHARGES AND DEDUCTIONS

The policy provides for the deduction of the various charges, costs and
expenses from the Account Value of the policy. These deductions are summarized
in the table below. Additional details can be found on pages 50-54.
--------------------------------------------------------------------------------

DEDUCTIONS FROM PREMIUMS

<TABLE>
<S> <C> <C>
-----------------------------------------------------------------------------------------------
Sales Charge -- Deducted from premium up to First 10 policy years -- 9%
the Target Premium After the 10th policy year -- 0%
Ten policy years after an increase in
Specified Amount -- 9%
-----------------------------------------------------------------------------------------------

Tax Charge State and local -- 0.8%; Federal -- 1.25%
-----------------------------------------------------------------------------------------------
</TABLE>

DEDUCTIONS FROM ACCOUNT VALUE
--------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
Cost of Insurance Charge Current cost of insurance rate x net amount
at risk at the beginning of the policy
month
----------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge -- First 10 policy years -- .60% of
Annual Rate subaccount value.
After the 10th policy year -- maximum of
.45% of subaccount value(1).
----------------------------------------------------------------------------------------------
Administrative Charge (all $7.50
policies) -- Monthly
Medical Underwriting Charge (applicable $5.00 for the first 3 policy years.
policies) -- Monthly
Guaranteed Issue Underwriting Charge $3.00 for the first 3 policy years.
(applicable policies) -- Monthly
----------------------------------------------------------------------------------------------
Guaranteed Death Benefit Charge $0.01 per $1,000 of policy Specified
Monthly Charge for Death Benefit Rider Amount. Please note that the Rider requires
that premiums on the policy itself be paid
in order to remain in effect.
----------------------------------------------------------------------------------------------
Optional Insurance Benefits Charge -- As applicable.
Monthly Deduction for any other optional
insurance Benefits added by rider.
----------------------------------------------------------------------------------------------
Transaction and Other Charges
-- Partial Surrender Fee Lesser of $25 or 2% of the partial
surrender amount
-- Transfer of Account Value Maximum of $25(2)
-- Premium allocation changes (over two in $25
any policy year
-- Reinstatement Fee $150
----------------------------------------------------------------------------------------------
</TABLE>

---------------
(1) Expected current amount of .30% of subaccount value.

(2) Currently, the Company does not assess a transfer charge. The Company
reserves the right to charge up to a maximum of $25 for transfers.

3
<PAGE> 13

FEES AND EXPENSES OF THE FUNDS

MONY Variable Account L is divided into subdivisions called subaccounts.
Each subaccount invests exclusively in shares of a designated portfolio. Each
portfolio pays a fee to its investment adviser to manage the portfolio. The
investment adviser fees for each portfolio are listed in the table below. Each
portfolio also incurs expenses in its operations. These expenses are also shown
in the table below. These fees and expenses vary by portfolio and are set forth
below. Their Boards govern the Funds. The advisory fees are summarized at pages
23-30. Fees and expenses of the Funds are described in more detail in the Funds'
prospectuses.

Information contained in the following table was provided by the respective
Funds and has not been independently verified by us.

ANNUAL EXPENSES FOR THE YEAR

ENDED DECEMBER 31, 1999

<TABLE>
<CAPTION>
DISTRIBUTION
MANAGEMENT (12b-1) OTHER TOTAL
FUND/PORTFOLIO FEES FEES EXPENSES EXPENSES
-------------- ---------- ------------ -------- --------
<S> <C> <C> <C> <C>
DREYFUS VARIABLE INVESTMENT FUND
Appreciation Portfolio.............................. 0.75% N/A 0.03% 0.78%
Small Company Stock Portfolio....................... 0.75% N/A 0.22% 0.97%
DREYFUS STOCK INDEX FUND.............................. 0.245% N/A 0.01% 0.26%
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC..... 0.75% N/A 0.04% 0.79%

ENTERPRISE ACCUMULATION TRUST

Growth Portfolio.................................... 0.75% N/A 0.09% 0.84%
Equity Portfolio.................................... 0.78% N/A 0.04% 0.82%
Small Company Growth Portfolio...................... 1.00% N/A 0.40% 1.40%(2)
Small Company Value Portfolio....................... 0.80% N/A 0.04% 0.84%
International Growth Portfolio...................... 0.85% N/A 0.16% 1.01%
High Yield Bond Portfolio........................... 0.60% N/A 0.09% 0.69%
Managed Portfolio................................... 0.72% N/A 0.04% 0.76%

FIDELITY VARIABLE INSURANCE PRODUCTS (VIP) FUND

Growth Portfolio.................................... 0.58% N/A 0.08% 0.66%(4)

FIDELITY VARIABLE INSURANCE PRODUCTS (VIP II) FUND II

Asset Manager Portfolio............................. 0.53% N/A 0.10% 0.63%(4)
Contrafund(R) Portfolio............................. 0.58% N/A 0.09% 0.67%(4)
</TABLE>

4
<PAGE> 14

Growth and Income Portfolio......................... 0.48% N/A 0.12% 0.60%(4)
Growth Opportunities Portfolio...................... 0.58% N/A 0.11% 0.69%(4)

JANUS ASPEN SERIES

Aggressive Growth Portfolio......................... 0.65% N/A 0.02% 0.67%(7)
Capital Appreciation Portfolio...................... 0.65% N/A 0.04% 0.69%(7)
International Growth Portfolio...................... 0.65% N/A 0.11% 0.76%(7)
Worldwide Growth Portfolio.......................... 0.65% N/A 0.05% 0.70%(7)
Strategic Value Portfolio........................... 0.65% 0.25% 0.35% 1.25%(8)
Flexible Income Portfolio........................... 0.65% N/A 0.07% 0.72%(7)

MONY SERIES FUND, INC.

Government Securities Portfolio..................... 0.50% N/A 0.08%(1) 0.58%
Intermediate Term Bond Portfolio.................... 0.50% N/A 0.07% 0.57%
Long Term Bond Portfolio............................ 0.50% N/A 0.05% 0.55%
Money Market Portfolio.............................. 0.40% N/A 0.04% 0.44%

T. ROWE PRICE EQUITY SERIES, INC.

Equity Income Portfolio............................. 0.85%(5) N/A 0.00% 0.85%
New America Growth Portfolio........................ 0.85%(5) N/A 0.00% 0.85%
Personal Strategy Balanced Portfolio................ 0.90%(5) N/A 0.00% 0.90%

T. ROWE PRICE FIXED INCOME SERIES, INC.

Limited-Term Bond Portfolio......................... 0.70%(5) N/A 0.00% 0.70%
Prime Reserve Portfolio............................. 0.55%(5) N/A 0.00% 0.55%

T. ROWE PRICE INTERNATIONAL SERIES, INC.

International Stock Portfolio....................... 1.05%(5) N/A 0.00% 1.05%(5)

THE UNIVERSAL INSTITUTIONAL FUNDS, INC.

Equity Growth Portfolio............................. 0.55% N/A 0.30% 0.85%(6)
Fixed Income Portfolio.............................. 0.40% N/A 0.30% 0.70%(6)
</TABLE>

5
<PAGE> 15

Worldwide Bond Fund................................. 1.00% N/A 0.22% 1.22%
Worldwide Hard Assets Fund.......................... 1.00% N/A 0.26% 1.26%
Worldwide Emerging Markets Fund..................... 1.00% N/A 0.54% 1.54%(3)
</TABLE>

---------------

(1) Expenses do not include custodial credits. With custodial credits, expenses
would have been 0.57%.

(2) Reflects contractual expense limitation. This contractual limitation is in
effect until April 30, 2001. Without expense limitation, total expenses
would have been as follows: Small Company Growth -- 1.55%.

(3) Does not include expense reimbursements. With expense reimbursements
expenses for Worldwide Emerging Markets is 1.34%.

(4) Expenses do not include reimbursements. With these expense reimbursements,
expenses would have been as follows: Fidelity VIP Growth -- 0.65%; Fidelity
VIP II Contrafund -- 0.65%; Fidelity VIP III Growth Opportunities -- 0.68%,
Fidelity VIP II Asset Manager -- 0.62%, and Fidelity VIP III Growth &
Income -- 0.59%.

(5) Management fees include operating expenses.

(6) Reflects a contractual expense limitation. Without the expense limitation,
total expenses would have been as follows: Fixed Income -- 0.96%; Equity
Growth -- 1.11%; and Value -- 1.22%.

(7) Expenses are based upon expenses for fiscal year ended December 31, 1999,
restated to reflect a reduction in management fee.

(8) Expenses are based on the estimated expenses that the new Service Shares
Class of the Portfolio expects to incur in its initial fiscal year. All
expenses are shown without the effect of any expense offset arrangements.

--------------------------------------------------------------------------------

FUND INVESTMENT ADVISER FEES
--------------------------------------------------------------------------------

DREYFUS VARIABLE INVESTMENT FUND

THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.

DREYFUS STOCK INDEX FUND

6
<PAGE> 16

--------------------------------------------------------------------------------

ENTERPRISE ACCUMULATION TRUST

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C> <C>
Growth Portfolio Annual rate of 0.75% of the average daily
net assets.
--------------------------------------------------------------------------------------------
Equity Portfolio Annual rate of 0.80% of the first $400
million, 0.75% of the next $400 million
and 0.70% in excess of $800 million of the
average daily net assets.
--------------------------------------------------------------------------------------------
Small Company Growth Portfolio Annual rate of 1.00% of the daily net
assets.
--------------------------------------------------------------------------------------------
Small Company Value Portfolio Annual rate of 0.80% of the first $400
million, 0.75% of the next $400 million
and 0.70% in excess of $800 million of the
average daily net assets.
--------------------------------------------------------------------------------------------
International Growth Portfolio Annual rate of 0.85% of the average daily
net assets.
--------------------------------------------------------------------------------------------
High Yield Bond Portfolio Annual rate of 0.60% of the average daily
net assets.
--------------------------------------------------------------------------------------------
Managed Portfolio Annual rate of 0.80% of the first $400
million, 0.75% of the next $400 million
and 0.70% in excess of $800 million of the
average daily net assets.
--------------------------------------------------------------------------------------------
</TABLE>

FIDELITY VARIABLE INSURANCE PRODUCTS FUND

7
<PAGE> 17

--------------------------------------------------------------------------------

FIDELITY VARIABLE INSURANCE PRODUCTS FUND II

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C> <C>
Asset Manager Portfolio The fee is calculated by adding a group
fee rate to an individual fee rate,
dividing by twelve, and multiplying the
result by the Fund's average net assets
throughout the month. The group fee rate
is based on the average net assets of all
the mutual funds advised by FMR. This
group rate cannot rise above 0.52% for
this Fund, and it drops as total assets
under management increase. The individual
fee rate for this Fund is 0.25% of the
Fund's average net assets.
--------------------------------------------------------------------------------------------
Contrafund(R) Portfolio The fee is calculated by adding a group
fee rate to an individual fee rate,
dividing by twelve, and multiplying the
result by the Fund's average net assets
throughout the month. The group fee rate
is based on the average net assets of all
the mutual funds advised by FMR. This
group rate cannot rise above 0.52% for
this Fund, and it drops as total assets
under management increase. The individual
fee rate for this Fund is 0.30% of the
Fund's average net assets.
--------------------------------------------------------------------------------------------
</TABLE>

FIDELITY VARIABLE INSURANCE PRODUCTS FUND III

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C> <C>
Growth and Income Portfolio The fee is calculated by adding a group
fee rate to an individual fee rate,
dividing by twelve, and multiplying the
result by the Fund's average net assets
throughout the month. The group fee rate
is based on the average net assets of all
the mutual funds advised by FMR. This
group rate cannot rise above 0.52% for
this Fund, and it drops as total assets
under management increase. The individual
fee rate for this Fund is 0.20% of the
Fund's average net assets.
--------------------------------------------------------------------------------------------
Growth Opportunities Portfolio The fee is calculated by adding a group
fee rate to an individual fee rate,
dividing by twelve, and multiplying the
result by the fund's average net assets
throughout the month. The group fee rate
is based on the average net assets of all
the mutual funds advised by FMR. This
group rate cannot rise above 0.52% for
this fund, and it drops as total assets
under management increase. The individual
fee rate for this fund is 0.30% of the
fund's average net assets.
--------------------------------------------------------------------------------------------
</TABLE>

8
<PAGE> 18

--------------------------------------------------------------------------------

JANUS ASPEN SERIES

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C> <C>
Aggressive Growth Portfolio Annual rate of 0.65% of the portfolio's
average daily net assets.
--------------------------------------------------------------------------------------------
Capital Appreciation Portfolio Annual rate of 0.65% of the portfolio's
average daily net assets.
--------------------------------------------------------------------------------------------
International Growth Portfolio Annual rate of 0.65% of the portfolio's
average daily net assets.
--------------------------------------------------------------------------------------------
Worldwide Growth Portfolio Annual rate of 0.65% of the portfolio's
average daily net assets.
--------------------------------------------------------------------------------------------
Strategic Value Portfolio Annual rate of 0.65% of the portfolio's
average daily net assets.
--------------------------------------------------------------------------------------------
Flexible Income Portfolio Annual rate of 0.65% of the first $300
million, 0.55% over $300 million of the
portfolio's average daily net assets.
--------------------------------------------------------------------------------------------
</TABLE>

--------------------------------------------------------------------------------

MONY SERIES FUND, INC.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C>
Long Term Bond Portfolio Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets
--------------------------------------------------------------------------------------------
Intermediate Term Bond Portfolio Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets
--------------------------------------------------------------------------------------------
Government Securities Portfolio Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets
--------------------------------------------------------------------------------------------
Money Market Portfolio Annual rate of 0.40% of the first $400
million, 0.35% of the next $400 million, and
0.30% of assets in excess of $800 million of
the portfolio's aggregate average daily net
assets.
--------------------------------------------------------------------------------------------
</TABLE>

9
<PAGE> 19

--------------------------------------------------------------------------------

T. ROWE PRICE EQUITY SERIES, INC.

T. ROWE PRICE FIXED INCOME SERIES, INC.

--------------------------------------------------------------------------------

T. ROWE PRICE INTERNATIONAL SERIES, INC.

--------------------------------------------------------------------------------

THE UNIVERSAL INSTITUTIONAL FUNDS, INC.

10
<PAGE> 20

--------------------------------------------------------------------------------

VAN ECK WORLDWIDE INSURANCE TRUST

THE DEATH BENEFIT

The minimum Specified Amount is $100,000. However, the Specified Amount may
be reduced to $50,000 if at least $50,000 is provided by a Term Insurance Rider
added to the policy. The policy owner may elect one of two options to compute
the amount of Base Death Benefit payable under the policy. The policy owner's
selection may increase the death benefit.

Option 1 -- The Base Death Benefit equals the greater of:

(a) the Specified Amount plus the increase in the Account Value since
the last monthly anniversary; or

(b) the Cash Value multiplied by a death benefit percentage required
by the Federal tax law definition of life insurance.

If the policy owner chooses Option 1, favorable investment performance
reduces the cost paid for the death benefit. This reduction will decrease
the deduction from Account Value.

Option 2 -- The Base Death Benefit equals the greater of:

(a) The Specified Amount plus the Account Value; or

(b) The Cash Value multiplied by a death benefit percentage required
by the Federal tax law definition of life insurance.

If the policy owner chooses Option 2, favorable investment performance
will increase the Account Value of the policy. This in turn increases
insurance coverage.

The Account Value used in these calculations is the Account Value as of the date
of the insured's death.

The 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 36.

When the policy owner applies for insurance, the policy owner can purchase
the Guaranteed Death Benefit Rider. This rider provides a guarantee that the
Specified Amount under the policy will remain in effect as long as:

(a) The required premiums (reduced by any partial surrenders and
applicable fees) have been paid; and

(b) The Account Value exceeds Outstanding Debt.

See "Guaranteed Death Benefit Rider," page 41.

11
<PAGE> 21

PREMIUM FEATURES

The policy owner must pay an initial premium equal to at least one fourth
of the Minimum Annual Premium. After that, subject to certain limitations, the
policy owner may choose the amount and frequency of premium payments as the
policy owner's financial situation and needs change.

When the policy owner applies for a policy, the policy owner determines the
level amount to pay at fixed intervals over a specified period of time. The
policy owner elects to receive a premium notice on an annual, semiannual or
quarterly basis. However, the policy owner may choose to skip or stop making
premium payments. The policy continues in effect until the Account Value (less
Outstanding Debt) can no longer cover:

(1) The monthly deductions for the policy, and

(2) Any optional insurance benefits added by rider.

The amount, frequency and period of time over which the policy owner pays
premiums may affect whether or not the policy will be classified as a modified
endowment contract. You will find more information on the tax treatment of life
insurance contracts, including modified endowment contracts under "Federal
Income Tax Considerations," page 55.

The payment of premiums the policy owner specifies on the application will
not guarantee that the policy will remain in effect. See "Grace Period and
Lapse," page 48. If any premium would result in an immediate increase in the net
amount at risk, the Company may, (1) reject a part of the premium payment, or
(2) limit the premium payment, unless the policy owner provides satisfactory
evidence of insurability.

MONY VARIABLE ACCOUNT L

MONY Variable Account L is a separate investment account whose assets are
owned by the Company. See "MONY Variable Account L," on page 16.

ALLOCATION OPTIONS

The policy owner may allocate premium payments and Account Values among the
various subaccounts of MONY Variable Account L. Each of the subaccounts uses
premium payments and Account Values to purchase shares of a designated portfolio
of the MONY Series Fund, Inc., the Enterprise Accumulation Trust, the T. Rowe
Price Equity Series, Inc., the T. Rowe Price Fixed Income Series, Inc., the T.
Rowe Price International Series, Inc., the Dreyfus Variable Insurance Fund, the
Dreyfus Stock Index Fund, The Dreyfus Socially Responsible Growth Fund, Inc.,
Fidelity Variable Insurance Products Fund, Fidelity Variable Insurance Products
Fund II, Fidelity Variable Insurance Products Fund III, Janus Aspen Series, The
Universal Institutional Funds, Inc. and the Van Eck Worldwide Insurance Trust
(the "Funds"). The subaccounts available to the policy owner and the investment
objectives of each available subaccount are described in detail beginning on
page 17.

TRANSFER OF ACCOUNT VALUE

The policy owner may transfer Account Value among the subaccounts. Subject
to certain limitations, the policy owner may also transfer between the
subaccounts and the Guaranteed Interest Account. See "Transfer of Account
Value," page 45.

POLICY LOANS

The policy owner may borrow up to 90% of the policy's Account Value (less
any Outstanding Debt) from the Company. See "Policy Loans," page 45.

The amount of Outstanding Debt is subtracted from the death benefit. The
Outstanding Debt is repaid from the proceeds of a full surrender. See "Full
Surrender," page 46. Outstanding Debt may also

12
<PAGE> 22

affect the continuation of the policy. See "Grace Period and Lapse," page 48.
The Company charges interest on policy loans. If the interest is not paid when
due, the amount due will be added to the principal amount of the Outstanding
Debt.

FULL SURRENDER

The policy owner can surrender the policy during the insured's lifetime and
receive the (a) Account Value, plus (b) any applicable refund of sales charge,
minus (c) any Outstanding Debt. See "Full Surrender," page 46.

PARTIAL SURRENDER

The policy owner may request a partial surrender if the Account Value less
Outstanding Debt after the deduction of the requested surrender amount and any
fees is greater than $500. If the requested amount exceeds the amount available,
we will reject the request and return it to the policy owner. A partial
surrender will generally decrease the Target Death Benefit. See "Partial
Surrender," at page 47.

Partial surrenders must be for at least $500. A partial surrender fee of
the lesser of $25 or 2% of the amount surrendered will be assessed against the
remaining Account Value.

RIGHT TO RETURN POLICY PERIOD

The policy owner has the right to examine the policy when it is received.
The policy owner may return the policy for any reason and obtain a full refund
of the premium paid if the policy is returned within 10 days (or longer in some
states) after it is received. The policy owner may also return the policy within
45 days after the date the application for the policy is signed. During the
Right to Return Policy Period, net premiums will be allocated to the general
account of the Company. See "Right to Examine a Policy -- Right to Return Policy
Period," page 34.

GRACE PERIOD AND LAPSE

The policy will remain in effect as long as:

(1) The Account Value less Outstanding Debt is sufficient to pay the
current monthly deduction; or

(2) The policy owner requested the Guaranteed Death Benefit Rider and
has met all the requirements of that rider.

If the policy is about to terminate (or Lapse), we will give the policy
owner notice that the policy owner must pay additional premiums. That notice
will tell the policy owner the minimum amount that must be paid if the policy is
to remain in effect and the date by which we must receive that amount (this
period is called the "grace period").

In addition, we calculate each month whether the policy owner has paid the
premiums required by the Guaranteed Death Benefit Rider. See "Guaranteed Death
Benefit," page 35. If the policy does not meet the test on that date, a notice
will be sent to the policy owner giving the policy owner 61 days from its date
to make additional payments to the Rider. See "Grace Period and Lapse," page 48.

TAX TREATMENT OF INCREASES IN ACCOUNT VALUE

The federal income tax laws generally tie the taxation of Account Values to
the policy owner's receipt of those Account Values. This policy is currently
subject to the same federal income tax treatment as fixed life insurance.
Certain policy loans may be taxable. Information on the tax treatment of the
policy can be found under "Federal Income Tax Considerations," on page 55.

13
<PAGE> 23

TAX TREATMENT OF DEATH BENEFIT

Generally, the death benefit will be fully excludable from the gross income
of the beneficiary under the Internal Revenue Code. Thus the death benefit
received by the beneficiary at the death of the insured will not be subject to
federal income taxes when received by the beneficiary. Also, a death benefit
paid by this policy is currently subject to federal income tax treatment as a
death benefit paid by a fixed life insurance policy. See "Federal Income Tax
Considerations," page 55.

RIDERS

Additional optional insurance benefits may be added to the policy by an
addendum called a rider. There are two riders available with this policy.

- Guaranteed Death Benefit Rider

- Term Insurance Rider

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.

14
<PAGE> 24

UNDERSTANDING THE POLICY

The following chart may help you to understand how the policy works.

[HOW THE POLICY WORKS FLOW CHART]

15
<PAGE> 25

DETAILED INFORMATION ABOUT THE COMPANY
AND MONY VARIABLE ACCOUNT L

MONY LIFE INSURANCE COMPANY

MONY Life Insurance Company issues the policy. In this prospectus MONY Life
Insurance Company is called the "Company." The Company is a stock life insurance
company organized in the State of New York. The Company is currently licensed to
sell life insurance and annuities in all 50 states of the United States, the
District of Columbia, the U.S. Virgin Islands, and Puerto Rico.

The principal office of the Company is located at 1740 Broadway, New York,
New York 10019. The Company was founded in 1842 as The Mutual Life Insurance
Company of New York. In 1998, The Mutual Life Insurance Company of New York
converted to a stock company through demutualization and was renamed MONY Life
Insurance Company. The demutualization did not have any material effect on the
obligations of the Company under the policies or on MONY Variable Account L.

At August 16, 1999, the rating assigned to the Company by A.M. Best
Company, Inc., an independent insurance company rating organization, was
upgraded to A (Excellent). This rating is based upon an analysis of financial
condition and operating performance. 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.

The Company intends to administer the policies itself.

MONY Securities Corporation, a wholly owned subsidiary of the Company, is
the principal underwriter for the policies.

EFFECTS OF INFLATION

The Company does not believe that inflation has had a material effect on
its results of operations except insofar as inflation affects interest rates.

MONY VARIABLE ACCOUNT L

MONY Variable Account L is a separate investment account of the Company.
Presently, only premium payments and cash values of flexible premium variable
life insurance policies are permitted to be allocated to MONY Variable Account
L. The assets in MONY Variable Account L are kept separate from the general
account assets and other separate accounts of the Company.

The Company owns the assets in MONY Variable Account L. The Company is
required to keep assets in MONY Variable Account L that equal the total market
value of the policy liabilities funded by MONY Variable Account L. Realized or
unrealized income gains or losses of MONY Variable Account L are credited or
charged against MONY Variable Account L assets without regard to the other
income, gains or losses of the Company. Reserves and other liabilities under the
policies are assets of MONY Variable Account L. MONY Variable Account L assets
are not chargeable with liabilities of the Company's other businesses.

Account Values allocated to the Guaranteed Interest Account are held in the
Company's general account. The Company's general account assets are subject to
the liabilities from the businesses the Company conducts. In addition, the
Company may transfer to its general account any assets that exceed anticipated
obligations of MONY Variable Account L. All obligations of the Company under the
policy are general corporate obligations of the Company. The Company may
accumulate in MONY Variable Account L proceeds from various policy charges and
investment results applicable to those assets.

MONY Variable Account L was authorized by the Board of Directors of the
Company and established under New York law on November 28, 1990. MONY Variable
Account L is registered with the SEC as a unit investment trust. The SEC does
not supervise the administration or investment

16
<PAGE> 26

practices or policies of MONY Variable Account L. No material change will be
made to the investment policy of MONY Variable Account L without prior
concurrence of the New York Insurance Department.

MONY Variable Account L is divided into subdivisions called subaccounts.
Each subaccount invests exclusively in shares of a designated portfolio of the
Funds. These portfolios serve only as the underlying investment for variable
annuity and variable life insurance contracts issued through separate accounts
of the Company or other life insurance companies. The portfolios may also be
available to certain pension accounts. The portfolios are not available directly
to individual investors. In the future, the Company may establish additional
subaccounts within MONY Variable Account L. Future subaccounts may invest in
other portfolios of the Funds or in other securities. Not all subaccounts are
available to you.

The subaccounts of MONY Variable Account L that are available to you
purchase shares from the underlying mutual funds and designated portfolios shown
in the following table with their respective investment objectives:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT, UNDERLYING MUTUAL FUND
AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
SOCIALLY RESPONSIBLE GROWTH SUBACCOUNT Seeks capital growth with current income
as a secondary goal. Invests primarily in
The Dreyfus Socially Responsible Growth common stock of companies that, in the
Fund, Inc. opinion of its management, meet
traditional investment standards and
conduct their business in a manner that
contributes to the enhancement of the
quality of life in America.
--------------------------------------------------------------------------------------------

STOCK INDEX SUBACCOUNT Seeks to match the total return of the
Standard & Poor's 500 Composite Stock
Dreyfus Stock Index Fund Price Index. To pursue this goal, the fund
generally invests in all 500 stocks in the
S&P 500(R) in proportion to their
weighting in the index.
--------------------------------------------------------------------------------------------

APPRECIATION SUBACCOUNT Seeks long-term capital growth consistent
with the preservation of capital; current
Dreyfus Variable Investment Fund income is a secondary goal. To pursue
Appreciation Portfolio these goals, the portfolio invests in
common stocks focusing on "blue chip"
companies with total market values of more
than $5 billion at the time of purchase.
--------------------------------------------------------------------------------------------

SMALL COMPANY STOCK SUBACCOUNT Seeks investment returns (consisting of
capital appreciation and income) that are
Dreyfus Variable Investment Fund greater than the total return performance
Small Company Stock Portfolio of stocks represented by the Russell
2500(TM) Index ("Russell 2500"). To pursue
this goal the portfolio normally invests
in a blended portfolio of growth and value
stocks of small and midsize domestic
companies, whose market values generally
range between $500 million and $5 billion.
--------------------------------------------------------------------------------------------
</TABLE>

17
<PAGE> 27

EQUITY SUBACCOUNT Seeks long-term capital appreciation by
investing primarily in U.S. common stock
Enterprise Accumulation Trust of companies that meet the portfolio
Equity Portfolio manager's criteria of high return on
investment capital, strong positions
within their industries, sound financial
fundamentals and management committed to
shareholder interests.
--------------------------------------------------------------------------------------------

SMALL COMPANY GROWTH SUBACCOUNT Seeks capital appreciation by investing
primarily in common stocks of small
Enterprise Accumulation Trust capitalization companies with
Small Company Growth Portfolio above-average growth characteristics that
are reasonably valued.
--------------------------------------------------------------------------------------------

SMALL COMPANY VALUE SUBACCOUNT Seeks maximum capital appreciation by
investing primarily in common stocks of
Enterprise Accumulation Trust small capitalization companies that the
Small Company Value Portfolio portfolio manager believes are undervalued
-that is the stock's market price does not
fully reflect the company's value.
--------------------------------------------------------------------------------------------

INTERNATIONAL GROWTH SUBACCOUNT I Seeks capital appreciation by investing
primarily in a diversified portfolio of
Enterprise Accumulation Trust non-United States equity securities that
International Growth Portfolio the portfolio manager believes are
undervalued.
--------------------------------------------------------------------------------------------
</TABLE>

18
<PAGE> 28

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT, UNDERLYING MUTUAL FUND
AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
HIGH YIELD BOND SUBACCOUNT Seeks maximum current income by primarily
investing in high-yield, income-producing
Enterprise Accumulation Trust U.S. corporate bonds rated B3 or better by
High Yield Bond Portfolio Moody's Investors Service, Inc., or B- or
better by Standard & Poor's Corporation.
These lower rated bonds are 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 has 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.
--------------------------------------------------------------------------------------------

MANAGED SUBACCOUNT Seeks growth of capital over time by
investing in a portfolio consisting of
Enterprise Accumulation Trust common stocks, bonds and cash equivalents,
Managed Portfolio the percentages of which vary over time
based on the investment manager's
assessment of economic and market trends
and its perception of the relative
investment values available from such
types of securities at any given time.
--------------------------------------------------------------------------------------------

GROWTH SUBACCOUNT II Seeks capital appreciation by investing
primarily in common stocks that it
Fidelity Variable Insurance Products Fund believes have above- average growth
Growth Portfolio potential -- that tends to be companies
with higher than average price/earnings
ratios, and with new products,
technologies, distribution channels or
other opportunities, or have a strong
industry or market position. May also
invest in foreign issuers.
--------------------------------------------------------------------------------------------

ASSET MANAGER SUBACCOUNT Seeks to obtain high total return with
reduced risk over the long term by
Fidelity Variable Insurance Products Fund allocating its assets among stocks, bonds,
II Asset Manager Portfolio and short-term investments.
--------------------------------------------------------------------------------------------

CONTRAFUND(R) SUBACCOUNT Seeks long-term capital appreciation by
investing mainly in equity securities of
Fidelity Variable Insurance Products Fund companies whose value is not fully
II Contrafund(R) Portfolio recognized by the public -- that
typically, includes companies in
turnaround situations, companies
experiencing transitory difficulties, and
undervalued companies. May also invest in
foreign issuers.
--------------------------------------------------------------------------------------------
</TABLE>

19
<PAGE> 29

GROWTH OPPORTUNITIES SUBACCOUNT Seeks capital growth by investing
primarily in common stocks. The manager is
Fidelity Variable Insurance Products Fund not constrained by any particular
III Growth Opportunities Portfolio investment style, and at any given time,
may tend to buy "growth" stocks, "value"
stocks, or a combination of both types.
May also invest in bonds, which may be
lower-quality debt securities and
securities of foreign issuers.
--------------------------------------------------------------------------------------------

AGGRESSIVE GROWTH SUBACCOUNT Seeks long-term growth of capital by
investing primarily in common stocks
Janus Aspen Series selected for their growth potential by
Aggressive Growth Portfolio investing at least 50% of its equity
assets in medium-sized companies with
market capitalization's falling within the
range of companies in the S&P MidCap 400
Index.
--------------------------------------------------------------------------------------------

CAPITAL APPRECIATION SUBACCOUNT Seeks long-term growth of capital. It
pursues its objective by investing
Janus Aspen Series primarily in common stocks selected for
Capital Appreciation Portfolio their growth potential. The portfolio may
invest in companies of any size from
larger, well-established companies to
smaller, emerging growth companies.
--------------------------------------------------------------------------------------------

WORLDWIDE GROWTH SUBACCOUNT Seeks long-term growth of capital in a
manner consistent with the preservation of
Janus Aspen Series capital by investing primarily in common
Worldwide Growth Portfolio stocks of companies of any size throughout
the world. Normally invests in issuers
from at least five different countries,
including the United States but may at
times invest in fewer than five countries
or even in a single country.
--------------------------------------------------------------------------------------------

INTERNATIONAL GROWTH SUBACCOUNT II Seeks long-term growth of capital by
investing at least 65% of its total assets
Janus Aspen Series in securities of issuers from at least
International Growth Portfolio five different countries, excluding the
United States. It intends to invest
substantially all of its assets in issuers
located outside the United States but may
at times invest in U.S. issuers and it may
at times invest all of its assets in fewer
than five countries or even a single
country.
--------------------------------------------------------------------------------------------
</TABLE>

20
<PAGE> 30

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT, UNDERLYING MUTUAL FUND
AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
FLEXIBLE INCOME SUBACCOUNT Seeks maximum total return, consistent
with preservation of capital by investing
Janus Aspen Series in a variety of income-producing
Flexible Income Portfolio securities such as corporate bonds and
notes, government securities and preferred
stock. As a fundamental policy, the
portfolio will invest at least 80% of its
assets in income-producing securities. The
portfolio may own an unlimited amount of
high-yield/high-risk securities, and these
may be a big part of the portfolio.
--------------------------------------------------------------------------------------------

VALUE SUBACCOUNT Seeks long-term growth of capital by
investing primarily in common stocks with
Janus Aspen Series the potential for long-term growth of
Strategic Value Portfolio capital using a "value" approach. The
value approach emphasizes investments in
companies the portfolio manager believes
are undervalued relative to their
intrinsic worth.
--------------------------------------------------------------------------------------------

GOVERNMENT SECURITIES SUBACCOUNT Seeks to maximize income and capital
appreciation by investing in bonds, notes
MONY Series Fund, Inc. and other obligations either issued or
Government Securities Portfolio guaranteed by the U.S. Government, its
agencies or instrumentalities, together
having a dollar weighted average maturity
of between 4 to 8 years.
--------------------------------------------------------------------------------------------

INTERMEDIATE TERM BOND SUBACCOUNT Seeks to maximize income and capital
appreciation over the intermediate term by
MONY Series Fund, Inc. investing in highly rated fixed-income
Intermediate Term Bond Portfolio securities issued by a diverse mix of
corporations, the U.S. Government and its
agencies or instrumentalities, as well as
mortgage-backed and asset-backed
securities, together having a
dollar-weighted average maturity of
between 4 and 8 years.
--------------------------------------------------------------------------------------------
</TABLE>

21
<PAGE> 31

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT, UNDERLYING MUTUAL FUND
AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM BOND SUBACCOUNT Seeks to maximize income and capital
appreciation over the longer term by
MONY Series Fund, Inc. investing in highly-rated fixed-income
Long Term Bond Portfolio securities issued by a diverse mix of
corporations, the U.S. Government and its
agencies or instrumentalities, as well as
mortgage-backed and asset-backed
securities, together having a
dollar-weighted average maturity of more
than 8 years.
--------------------------------------------------------------------------------------------

MONEY MARKET SUBACCOUNT Seeks to maximize current income
consistent with preservation of capital
MONY Series Fund, Inc. and maintenance of liquidity by investing
Money Market Portfolio primarily in high quality short-term money
market instruments.
--------------------------------------------------------------------------------------------

EQUITY INCOME SUBACCOUNT Seeks substantial dividend income as well
as long-term growth of capital through
T. Rowe Price Equity Series, Inc. investments in the common stocks of
T. Rowe Price Equity Income Portfolio established companies. The manager will
normally invest at least 65% of the fund's
total assets in the common stocks of
well-established companies paying above-
average dividends.
--------------------------------------------------------------------------------------------

NEW AMERICA GROWTH SUBACCOUNT Seeks long-term growth of capital by
investing primarily in the common stocks
T. Rowe Price Equity Series, Inc. of companies operating in sectors T. Rowe
T. Rowe Price New America Growth Portfolio Price believes will be the fastest growing
in the U.S.
--------------------------------------------------------------------------------------------

PERSONAL STRATEGY BALANCED SUBACCOUNT Seeks the highest total return over time
consistent with an emphasis on both
T. Rowe Price Equity Series, Inc. capital appreciation and income by
T. Rowe Price Personal Strategy Balanced investing in a diversified portfolio
Portfolio typically consisting of approximately 60%
stocks, 30% bonds, and 10% money market
securities.
--------------------------------------------------------------------------------------------

LIMITED-TERM BOND SUBACCOUNT Seeks a high level of income consistent
with moderate fluctuation in principal
T. Rowe Price Fixed Income Series, Inc. value by investing at least 65% of total
T. Rowe Price Limited-Term Bond Portfolio assets in short- and immediate-term bonds.
At least 90% of the portfolio will consist
of investment grade bonds. The fund's
dollar-weighted average effective maturity
will not exceed five years.
--------------------------------------------------------------------------------------------

PRIME RESERVE SUBACCOUNT Seeks preservation of capital, liquidity,
and consistent with these, the highest
T. Rowe Price Fixed Income Series, Inc. possible current income by investing in
T. Rowe Price Prime Reserve Portfolio high-quality U.S. dollar-denominated money
market securities.
--------------------------------------------------------------------------------------------
</TABLE>

22
<PAGE> 32

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT, UNDERLYING MUTUAL FUND
AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
INTERNATIONAL STOCK SUBACCOUNT Seeks long-term growth of capital through
investment primarily in the common stocks
T. Rowe Price International Series, Inc. of established, non-U.S. companies. The
T. Rowe Price International Stock manager employs a growth style, and will
Portfolio invest in developed and emerging countries
throughout the world with a focus on large
and to a lesser extent medium-sized
companies.
--------------------------------------------------------------------------------------------

EQUITY GROWTH SUBACCOUNT Seeks long-term capital appreciation by
investing primarily in growth-oriented
The Universal Institutional Funds, Inc. equity securities of large companies with
Equity Growth Portfolio market capitalizations of $1 billion or
more.
--------------------------------------------------------------------------------------------

FIXED INCOME SUBACCOUNT Seeks above-average total return over a
market cycle of three to five years by
The Universal Institutional Funds, Inc. investing primarily in a diversified mix
Fixed Income Portfolio of dollar denominated investment grade
fixed income securities, particularly U.S.
government securities, corporate bonds,
and mortgage securities. The portfolio may
invest, to a limited extent, foreign fixed
income securities.
----------------------------------------------------------------------------------------

WORLDWIDE BOND SUBACCOUNT Seeks high total return - income plus
capital appreciation - by investing
Van Eck Worldwide Insurance Trust globally, primarily in a variety of debt
Worldwide Bond Fund securities.
--------------------------------------------------------------------------------------------

WORLDWIDE EMERGING MARKETS SUBACCOUNT Seeks long-term capital appreciation by
investing primarily in equity securities
Van Eck Worldwide Insurance Trust in emerging markets around the world. The
Worldwide Emerging Markets Fund fund emphasizes investment in countries
that have relatively low gross national
product per capita, as well as the
potential for rapid economic growth.
--------------------------------------------------------------------------------------------

WORLDWIDE HARD ASSETS SUBACCOUNT Seeks long-term capital appreciation by
investing primarily in "hard asset
Van Eck Worldwide Insurance Trust securities." For the fund's purpose, "hard
Worldwide Hard Assets Fund asset securities" are stocks, bonds, and
other securities of companies that derive
at least 50% of gross revenue or profit
from exploration, development, production
or distribution of precious metals,
natural resources, real estate, or
commodities. Income is a secondary
consideration.
--------------------------------------------------------------------------------------------
</TABLE>

23
<PAGE> 33

THE FUNDS

The Funds (except for the Dreyfus Stock Index Fund, Janus Aspen Series
Aggressive Growth, Capital Appreciation and Strategic Value Portfolios) are
diversified, open-end management investment companies of the series type.
Dreyfus Stock Index Fund, and Janus Aspen Series Aggressive Growth, Capital
Appreciation and Strategic Value Portfolios are non-diversified, open-end
management investment companies. The Funds are registered with the SEC under the
Investment Company Act of 1940. The SEC does not supervise the investments or
investment policy of the Funds. Each available subaccount of MONY Variable
Account L will invest only in the shares of the designated portfolio of the
Funds.

MONY SERIES FUND, INC.

Only shares of four of the seven portfolios of the MONY Series Fund, Inc.
can be purchased by a subaccount available to the policy owner. Each of the
portfolios has different investment objectives and policies. The Company is a
registered investment adviser under the Investment Advisers Act of 1940. The
Company, as investment adviser, paid all expenses associated with organizing the
MONY Series Fund, Inc. when it was organized in 1985. Those expenses also
included the costs of the initial registration of its securities. The Company,
as investment adviser, currently pays the compensation of the Fund's directors,
officers and employees who are affiliated in some way with the Company. The MONY
Series Fund, Inc. pays for all other expenses including, for example, the
calculation of the net asset value of the portfolios. To carry out its duties as
investment adviser, the Company has entered into a Services Agreement with MONY
to provide personnel, equipment, facilities and other services. As the
investment adviser to the MONY Series Fund, Inc., the Company receives a daily
investment adviser fee for each portfolio (See chart below). Fees are deducted
daily and paid to the Company monthly.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISORY FEE
--------------------------------------------------------------------------------------------
<S> <C>
GOVERNMENT SECURITIES PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets
--------------------------------------------------------------------------------------------

INTERMEDIATE TERM BOND PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets
--------------------------------------------------------------------------------------------

LONG TERM BOND PORTFOLIO Annual rate of 0.50% of the first $400
million, 0.35% of the next $400 million, and
0.30% in excess of $800 million of the
portfolio's aggregate average daily net
assets
--------------------------------------------------------------------------------------------

MONEY MARKET PORTFOLIO Annual rate of 0.40% of the first $400
million, 0.35% of the next $400 million, and
0.30% of assets in excess of $800 million of
the portfolio's aggregate average daily net
assets.
--------------------------------------------------------------------------------------------
</TABLE>

ENTERPRISE ACCUMULATION TRUST

Enterprise Accumulation Trust has a number of portfolios, some of which are
currently available to be purchased by subaccounts available to the policy
owner. Enterprise Capital Management, Inc. ("Enterprise Capital"), a wholly
owned subsidiary of the Company, is the investment adviser of Enterprise

24
<PAGE> 34

Accumulation Trust. Enterprise Capital is responsible for the overall management
of the portfolios, including meeting the investment objectives and policies of
the portfolios. Enterprise Capital contracts with sub-investment advisers to
assist in managing the portfolios. For information on the sub-advisers for each
portfolio, see the Enterprise Accumulation Trust prospectus included in this
Prospectus Portfolio, Volume II -- Underlying Funds. Enterprise Accumulation
Trust pays an investment advisory fee to Enterprise Capital which in turn pays
the sub-investment advisers. Fees are deducted daily and paid to Enterprise
Capital on a monthly basis. The daily investment adviser fees and sub-investment
adviser fees for each portfolio are shown in the chart below.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT SUB-ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
GROWTH PORTFOLIO Annual rate of 0.75% of the Annual rate of 0.30% up to
average daily net assets. $1 billion and 0.20% in
Montag & Caldwell, Inc. is the excess of $1 billion of the
sub-investment adviser. portfolio's average daily
net assets.
------------------------------------------------------------------------------------------------------
EQUITY PORTFOLIO Annual rate of 0.80% of the Annual rate of 0.40% up to
first $400 million, 0.75% of $1 billion, and 0.30% in
TCW Investment Management Company the next $400 million and excess of $1 billion of the
is the sub-investment adviser. 0.70% in excess of $800 portfolio's average daily
million of the average daily net assets.
net assets.
------------------------------------------------------------------------------------------------------

SMALL COMPANY GROWTH PORTFOLIO Annual rate of 1.00% of the Annual rate of 0.65% of the
daily net assets. first $50 million, 0.55% of
William D. Witter, Inc. is the the next $50 million and
sub-investment adviser. 0.45% in excess of $100
million of the portfolio's
average daily net assets.
------------------------------------------------------------------------------------------------------

SMALL COMPANY VALUE PORTFOLIO Annual rate of 0.80% of the Annual rate of 0.40% of the
first $400 million, 0.75% of first $1 billion and 0.30%
Gabelli Asset Management Company the next $400 million and in excess of $1 billion of
is the sub-investment adviser. 0.70% in excess of $800 the portfolio's average
million of the average daily daily net assets.
net assets.
------------------------------------------------------------------------------------------------------

INTERNATIONAL GROWTH PORTFOLIO Annual rate of 0.85% of the Annual rate of 0.40% of the
average daily net assets. first $100 million, 0.35% of
Vontobel USA Inc. is the $100 million to $200
sub-investment adviser. million, 0.30% of $200
million to $500 million and
0.25% in excess of $500
million of the portfolio's
average daily net assets.
------------------------------------------------------------------------------------------------------
</TABLE>

25
<PAGE> 35

MANAGED PORTFOLIO Annual rate of 0.80% of the OpCap Advisors' fee for the
first $400 million, 0.75% of assets of the portfolio it
OpCap Advisors and Sanford C. the next $400 million and manages is an annual rate of
Bernstein & Co. are the 0.70% in excess of $800 0.40% up to $1 billion,
sub-investment advisers. million of the average daily 0.30% from $1 billion to $2
net assets. billion, and 0.25% in excess
of $2 billion of the
portfolio's aggregate
average daily net assets.
Sanford C. Bernstein & Co.,
Inc.'s fee for the assets of
the portfolio it manages is
an annual rate of 0.40% up
to $10 million, 0.30% from
$10 million to $50 million,
0.20% from $50 million to
$100 million, and 0.10% in
excess of $100 million of
the portfolio's average
daily net assets.
------------------------------------------------------------------------------------------------------
</TABLE>

26
<PAGE> 36

T. ROWE PRICE EQUITY SERIES, INC.
T. ROWE PRICE FIXED INCOME SERIES, INC.

T. Rowe Price Equity Series, Inc. has a number of portfolios, some of which
are currently available to be purchased by subaccounts available to the policy
owner. T. Rowe Price Fixed Income Series, Inc. has two portfolios, the shares of
which can be purchased by subaccounts available to the policy owner. T. Rowe
Price Associates, Inc. acts as the investment manager of T. Rowe Equity Series,
Inc. and T. Rowe Price Fixed Income Series, Inc. Fees are deducted daily and
paid to T. Rowe Price Associates, Inc. on a monthly basis. Management fees
include operating expenses. The daily investment adviser fees for each portfolio
are shown in the table below.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
------------------------------------------------------------------------------------------
<S> <C>
T. Rowe Price Equity Series, Inc. Annual rate of 0.85% of the portfolio's
T. Rowe Price Equity Income Portfolio average daily net assets.
------------------------------------------------------------------------------------------
T. Rowe Price Equity Series, Inc. Annual rate of 0.85% of the portfolio's
T. Rowe Price New America Growth Portfolio average daily net assets.
------------------------------------------------------------------------------------------
T. Rowe Price Equity Series Inc. Annual rate of 0.90% of the portfolio's
T. Rowe Price Personal Strategy Balanced average daily net assets.
Portfolio
------------------------------------------------------------------------------------------
T. Rowe Price Fixed Income Series, Inc. Annual rate of 0.70% of the portfolio's
T. Rowe Price Limited-Term Bond Portfolio average daily net assets.
------------------------------------------------------------------------------------------
T. Rowe Price Fixed Income Series, Inc. Annual rate of 0.55% of the portfolio's
T. Rowe Price Prime Reserve Portfolio average daily net assets.
------------------------------------------------------------------------------------------
</TABLE>

T. ROWE PRICE INTERNATIONAL SERIES, INC.

The International Stock Portfolio of T. Rowe Price International Series,
Inc. can be purchased by subaccounts available to the policy owner. Rowe
Price-Fleming International, Inc., an affiliate of T. Rowe Price Associates,
Inc., acts as the investment manager of T. Rowe Equity International Series,
Inc. Fees are deducted daily and paid to Rowe Price-Fleming International, Inc.
on a monthly basis. Management fees include operating expenses. The daily
investment adviser fees for the portfolio are shown in the table below.

VAN ECK WORLDWIDE INSURANCE TRUST

Van Eck Worldwide Insurance Trust has a number of portfolios, some of which
are currently available to be purchased by subaccounts available to the policy
owner. Van Eck Associates Corporation, is the investment manager of Worldwide
Insurance Trust. Van Eck Worldwide Insurance Trust pays an investment advisory
fee to Van Eck Associates Corporation. Fees are deducted daily and paid to Van
Eck

27
<PAGE> 37

Associates Corporation on a monthly basis. The daily investment adviser fees for
each portfolio are shown in the chart below.

WORLDWIDE EMERGING MARKETS FUND Annual rate of 1.00% of the portfolio's
aggregate average daily net assets.
------------------------------------------------------------------------------------------

WORLDWIDE HARD ASSETS FUND Annual rate of 1.00% of the first $500
million, .90% of the next $250 million, and
.70% in excess of $750 million of the
portfolio's aggregate average daily net
assets.
------------------------------------------------------------------------------------------
</TABLE>

THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
DREYFUS STOCK INDEX FUND
DREYFUS VARIABLE INVESTMENT FUND

Dreyfus Variable Investment Fund has a number of portfolios, some of which
are currently available to be purchased by subaccounts available to the policy
owner. The Dreyfus Corporation, is the investment adviser of the Dreyfus
Variable Investment Fund, the Dreyfus Stock Index Fund and The Dreyfus Socially
Responsible Growth Fund, Inc. As described below, The Dreyfus Corporation
contracts with sub-investment advisers to assist in managing some of the
portfolios as noted below. Fees are deducted on a monthly basis. The daily
investment adviser fees and sub-investment adviser fees for each portfolio are
shown in the chart below.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT SUB-ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
THE DREYFUS SOCIALLY RESPONSIBLE Annual rate of 0.75% of the The Dreyfus Corporation
GROWTH FUND, INC. portfolio's average daily pays the sub-investment
net assets. adviser an Annual rate of
NCM Capital Management Group, Inc. 0.10% of the first $32
million, 0.15% in excess of
$32 million up to $150
million, 0.20% in excess of
$150 million up to $300
million, 0.25% in excess of
$300 million of the
portfolio's average daily
net assets.
------------------------------------------------------------------------------------------------------
DREYFUS STOCK INDEX FUND Annual rate of 0.245% of The Dreyfus Corporation
the portfolio's average pays the sub-investment
Mellon Equity Associates daily net assets. adviser an annual rate of
0.095% of the portfolio's
average daily net assets.
------------------------------------------------------------------------------------------------------
</TABLE>

28
<PAGE> 38

DREYFUS VARIABLE INVESTMENT FUND Annual rate of 0.75% of the Not Applicable
SMALL COMPANY STOCK PORTFOLIO portfolio's average daily
net assets.
None
------------------------------------------------------------------------------------------------------
</TABLE>

THE UNIVERSAL INSTITUTIONAL FUNDS, INC.

The Universal Institutional Funds, Inc. has a number of portfolios, some of
which are currently available to be purchased by subaccounts available to the
policy owner. Fees are deducted daily and paid to the investment adviser on a
quarterly basis. The investment adviser and daily investment adviser fees for
each portfolio are shown in the chart below.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER INVESTMENT ADVISER FEE
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FIXED INCOME PORTFOLIO Miller Anderson & Sherrerd, Annual rate of 0.40% of the
LLP first $500 million, 0.35%
in excess of $500 million
up to $1 billion, 0.30% in
excess of $1 billion of the
portfolio's average daily
net assets.
---------------------------------------------------------------------------------------------

EQUITY GROWTH PORTFOLIO Morgan Stanley Dean Witter Annual rate of 0.55% of the
Investment Management Inc. first $500 million, 0.50%
in excess of $500 million
up to $1 billion, 0.45% in
excess of $1 billion of the
portfolio's average daily
net assets.
---------------------------------------------------------------------------------------------
</TABLE>

FIDELITY VARIABLE INSURANCE PRODUCTS FUND -- INITIAL CLASS -- GROWTH PORTFOLIO
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II -- INITIAL CLASS -- ASSET MANAGER
PORTFOLIO; CONTRAFUND(R) PORTFOLIO
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III -- INITIAL CLASS -- GROWTH AND
INCOME PORTFOLIO; GROWTH OPPORTUNITIES PORTFOLIO

Portfolios from each of three Fidelity Funds can be purchased by
subaccounts available to you. Fidelity Management & Research ("FMR") is each
Fund's investment manager. As the manager, FMR is responsible for choosing
investments for the funds and handling the Funds' business affairs. Affiliates
assist FMR with foreign investments. The daily investment adviser fees are shown
in the table below.

29
<PAGE> 39

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
PORTFOLIO AND SUB-INVESTMENT ADVISERS INVESTMENT ADVISER FEE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
FIDELITY VARIABLE INSURANCE PRODUCTS FUND -- GROWTH The fee is calculated by adding a group fee
PORTFOLIO rate to an individual fee rate, dividing by
twelve, and multiplying the result by the
Fund's average net assets throughout the
month. The group fee rate is based on the
average net assets of all the mutual funds
advised by FMR. This group rate cannot rise
above 0.52% for this Fund, and it drops as
total assets under management increase. The
individual fee rate for this fund is 0.30%
of the Fund's average net assets.
------------------------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUND The fee is calculated by adding a group fee
II -- ASSET MANAGER PORTFOLIO rate to an individual fee rate, dividing by
twelve, and multiplying the result by the
Fidelity Management & Research (U.K.) Inc. Fund's average net assets throughout the
Fidelity Management & Research Far East Inc. month. The group fee rate is based on the
Fidelity Investments Money Management, Inc. average net assets of all the mutual funds
advised by FMR. This group rate cannot rise
above 0.52% for this Fund, and it drops as
total assets under management increase. The
individual fee rate for this Fund is 0.25%
of the Fund's average net assets.
------------------------------------------------------------------------------------------------------

FIDELITY VARIABLE INSURANCE PRODUCTS FUND The fee is calculated by adding a group fee
II -- CONTRAFUND(R) PORTFOLIO rate to an individual fee rate, dividing by
Fidelity Management & Research (U.K.) Inc. and twelve, and multiplying the result by the
Fidelity Management & Research Far East Inc. are Fund's average net assets throughout the
the sub-investment advisers. month. The group fee rate is based on the
average net assets of all the mutual funds
advised by FMR. This group rate cannot rise
above 0.52% for this Fund, and it drops as
total assets under management increase. The
individual fee rate for this Fund is 0.30%
of the Fund's average net assets.
------------------------------------------------------------------------------------------------------

FIDELITY VARIABLE INSURANCE PRODUCTS FUND The fee is calculated by adding a group fee
III -- GROWTH AND INCOME PORTFOLIO rate to an individual fee rate, dividing by
twelve, and multiplying the result by the
Fidelity Management & Research (U.K.) Inc. Fund's average net assets throughout the
Fidelity Management & Research Far East Inc. month. The group fee rate is based on the
average net assets of all the mutual funds
advised by FMR. This group rate cannot rise
above 0.52% for this Fund, and it drops as
total assets under management increase. The
individual fee rate for this Fund is 0.20%
of the Fund's average net assets.
------------------------------------------------------------------------------------------------------
</TABLE>

30
<PAGE> 40

JANUS ASPEN SERIES

Janus Aspen Series has a number of portfolios, some of which are currently
available to be purchased by the subaccounts available to you. Janus Capital is
the investment adviser to each of the portfolios and is responsible for the
day-to-day management of the investment portfolios and other business affairs of
the portfolios. The daily investment advisory fee for each portfolio is shown in
the table below.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
------------------------------------------------------------------------------------------------------
<S> <C> <C>
JANUS ASPEN SERIES AGGRESSIVE GROWTH PORTFOLIO Annual rate of 0.65% of the portfolio's
average daily net assets.
------------------------------------------------------------------------------------------------------

JANUS ASPEN SERIES FLEXIBLE INCOME PORTFOLIO Annual rate of 0.65% of the first $300
million, 0.55% over $300 million of the
portfolio's average daily net assets.
------------------------------------------------------------------------------------------------------

JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO Annual rate of 0.65% of the portfolio's
average daily net assets.
------------------------------------------------------------------------------------------------------

JANUS ASPEN SERIES WORLDWIDE GROWTH PORTFOLIO Annual rate of 0.65% of the portfolio's
average daily net assets.
------------------------------------------------------------------------------------------------------

JANUS ASPEN SERIES CAPITAL APPRECIATION PORTFOLIO Annual rate of 0.65% of the portfolio's
average daily net assets.
------------------------------------------------------------------------------------------------------

JANUS ASPEN SERIES STRATEGIC VALUE PORTFOLIO Annual rate of 0.65% of the portfolio's
average daily net assets.
------------------------------------------------------------------------------------------------------
</TABLE>

The investment objectives of all portfolios (except the Janus Aggressive
Growth, Capital Appreciation, Flexible Income, Growth, International Growth and
Worldwide Growth portfolios) purchased by the subaccounts are fundamental and
may not be changed without the approval of the holders of a majority of the
outstanding shares of the affected portfolio. For each of the Funds this means
the lesser of (1) 67% of the portfolio shares represented at a meeting at which
more than 50% of the outstanding portfolio shares are represented or (2) more
than 50% of the outstanding portfolio shares. The investment objectives of the
Janus portfolios purchased by the corresponding subaccounts are non-fundamental
and may be changed by the Fund's Trustees without a shareholder vote.

31
<PAGE> 41

PURCHASE OF PORTFOLIO SHARES BY MONY VARIABLE ACCOUNT L

The Company purchases shares of each portfolio for the corresponding
sub-account at net asset value, i.e. without a sales load. Generally, all
dividends and capital gains distributions received from a portfolio are
automatically reinvested in the portfolio at net asset value. The Company, on
behalf of MONY Variable Account L, may elect not to reinvest dividends and
capital gains distributions. The Company redeems Fund shares at net asset value
to make payments under the Policies.

Fund shares are offered only to insurance company separate accounts. The
insurance companies may or may not be affiliated with the Company or with each
other. This is called "shared funding." Shares may also be sold to separate
accounts to serve as the underlying investments for variable life insurance
policies, variable annuity policies and qualified plans. This is called "mixed
funding." Currently, the Company does not foresee any disadvantages to policy
owners due to mixed or shared funding. However, differences in tax treatment or
other considerations may at some time create conflict of interests between
owners of various contracts. The Company and the Boards of Directors of the
Funds, and any other insurance companies that participate in the Funds are
required to monitor events to identify material conflicts. If there is a
conflict because of mixed or shared funding, the Company might be required to
withdraw the investment of one or more of its separate accounts from the Funds.
This might force the Funds to sell securities at disadvantageous prices.

The investment objectives of each portfolio are substantially similar to
the investment objectives of the subaccount which purchases shares of that
portfolio. A summary of the investment objective of each of the subaccounts
available to you is found in the table on pages 17-23. No portfolio can assure
you that its objective will be achieved. You will find more detailed information
in the prospectus of each Fund that you received with this prospectus. The
Funds' prospectuses include information on the risks of each portfolio's
investments and investment techniques.

THE FUNDS' PROSPECTUSES ACCOMPANY THIS PROSPECTUS AND SHOULD BE
READ CAREFULLY BEFORE INVESTING

32
<PAGE> 42

DETAILED INFORMATION ABOUT THE POLICY

The Account Value in MONY Variable Account L and the Guaranteed Interest
Account provide many of the benefits of the policy. The information in this
section describes the benefits, features, charges, and other major provisions of
the policies and the extent to which those benefits depend upon the Account
Value.

APPLICATION FOR A POLICY

The policy design meets the needs of individuals and corporations that wish
to purchase life insurance benefits on the lives of key employees, members of
the employer's board of directors, certain selected independent contractors, or
certain selected highly compensated employees. The policy may be sold together
with other related policies forming a case. A purchaser must complete an
application and personally deliver it to a licensed agent of the Company, who is
also a registered representative of MONY Securities Corporation ("MSC"). The
licensed agent submits the application to the Company. The policy may also be
sold through other broker-dealers authorized under the law and by MSC. A policy
can be issued on the life of an insured not less than 18 years of age and up to
and including 80 years of age with evidence of insurability that satisfies the
Company. The age of the insured is the age on his or her birthday nearest the
date of the policy. The Company accepts the application subject to its
underwriting rules, and may request additional information or reject an
application.

The minimum Target Death Benefit is generally $100,000. The minimum
Specified Amount you may apply for is $100,000. The Specified Amount may be
reduced to $50,000 if at least $50,000 amount of Term Insurance Rider is added
to the policy. However, the Company reserves the right to revise its rules at
any time to require a different minimum Specified Amount and Target Death
Benefit at issue for subsequently issued policies.

Each policy is issued with a policy date. The policy date is used to
determine the policy months and years, and policy monthly, quarterly,
semi-annual and annual anniversaries. The policy date is stated on page 1 of the
policy. The policy date will normally be the later of (1) the date that delivery
of the policy is authorized by the Company ("Policy Release Date"), or (2) the
policy date requested in the application. No premiums may be paid with the
application except under the temporary insurance procedures defined below.

Temporary Insurance Coverage

If you want insurance coverage before the Policy Release Date, are actively
at work and have been at work for an average of 30 hours per week for 90 days
before coverage begins, you are eligible for a temporary insurance agreement.
You must sign a Life Insurance Binder Agreement and give it to the Company's
licensed agent. The agreement contains a question about your employment. Your
eligibility for temporary coverage will depend upon your answer to this
question. In addition, you must complete and sign the Life Insurance Binder
Agreement. You must also submit payment for at least the cost of term coverage
on the Policy as applied for. Your coverage under the Life Insurance Binder
Agreement starts on the date you sign the form and pay the premium amount, or if
later, the requested policy date. See "Premiums-Premium Flexibility," page 34.

Coverage under the Life Insurance Binder Agreement ends on the earliest of:

- the Policy Release Date, if the policy is issued as applied for;

- the date on which all or any portion of the policy premium or life
insurance binder premium is refunded;

- the date you withdraw the application for life insurance on the insured;

- the date on which the employment of the insured or the insured's status
terminates;

- no later than 90 days from the date the Life Insurance Binder Agreement
is effective;

- the date the Company declines to issue any policy; and

- the date you tell the Company that the policy will be refused.

33
<PAGE> 43

If the insured dies during the period of temporary coverage, the death
benefit will be:

(1) The insurance coverage applied for (including any optional riders)
up to $500,000,

less

(2) The deductions from premium and the monthly deduction due prior to
the date of death.

Premiums paid for temporary insurance coverage are held in the Company's
general account until the Policy Release Date. Except as provided below,
interest is credited on the premiums (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 4.0 % per year. In states where approval has been given
for the declaration of interest on a daily basis, the rate will be based on the
London Interbank Offered Rate. The interest rate credited for premiums held in
the general account will vary in accordance with such rate. If the policy is
issued and accepted, these amounts will be applied to the policy. These premiums
will be returned to you (without interest) within 5 days after the earliest of:

(1) The date you tell the Company that the policy will be refused. Your
refusal must be

(a) at or before the Policy Release Date, or

(b) (if the policy is authorized for delivery other than as applied
for), on or before the 15th day after the Policy Release Date; or

(2) The date the Company sends notice to you declining to issue any policy.

Initial Premium Payment

Once the application is approved and the policy owner is issued a policy,
the balance of the first scheduled premium payment is payable. The scheduled
premium payment specified in your policy must be paid in full when your policy
is delivered. Your policy is effective the later of (1) acceptance and payment
of the scheduled premium payment, or (2) the policy date requested in the
application. If you do not request a policy date or if the policy date you
request is earlier than the Policy Release Date, any premium balance remitted by
you will be transferred to the general account until the Right to Return Policy
Period has ended. The amount transferred would include amounts in the general
account under the Binder Agreement, plus interest credited minus deductions from
premiums. The monthly deduction due prior to or on the Policy Release Date will
be made. If you request a policy date which is later than the Policy Release
Date, premium will be held in the general account until the policy date. On the
Policy Date, premiums will be transferred to the general account until the Right
to Return Policy Period ends. During the Right to Return Policy Period, premiums
will be credited with an interest rate of 4%. When the Right to Return Policy
Period ends, the net premium, plus any interest credited by the Company, is
allocated to the subaccounts of MONY Variable Account L or the Guaranteed
Interest Account pursuant to your instructions. (See "Right to Examine a
Policy -- Right to Return Policy Period," page 34.)

Policy Date

The Company may approve the backdating of a policy. However, the policy may
be backdated for not more than 6 months (a shorter period is required in certain
states) prior to the date of the application. Backdating can be advantageous if
it lowers the insured's issue age and results in lower cost of insurance rates.
If the policy is backdated, the initial scheduled premium payment will include
sufficient premium to cover the extra charges for the backdating period. Extra
charges equal the monthly deductions for the period that the policy date is
backdated.

Risk Classification

Insureds are assigned to underwriting (risk) classes. Risk classes 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. This method may require a medical

34
<PAGE> 44

examination of any proposed insured that does not meet the Company's guaranteed
issue standards. The Company may use guaranteed issue underwriting when it is
considered appropriate.

RIGHT TO EXAMINE A POLICY -- RIGHT TO RETURN POLICY PERIOD

The Right to Return Policy Period follows the application for a policy and
its issuance to the policy owner. The period runs to the latest of:

(a) 45 days after Part I of the application is signed, or

(b) 10 days after the policy owner receives the policy, or

During this period, the policy owner may cancel the policy and receive a
refund of the full amount of the premium paid.

PREMIUMS

The policy is a flexible premium policy. The policy provides considerable
flexibility to the policy owner to determine the amount and frequency of premium
payments.

Case Premiums

Generally, to issue a policy, the Company requires the premiums for the
first policy year for the policy or policies representing a case to equal or
exceed $100,000. The Company may, in its sole discretion, allow a reduced
minimum case premium where the Company's rules for exceptions are met.

Premium Flexibility

The Company requires you to pay an amount equal to at least one fourth of
the Minimum Annual Premium to put the policy in effect. If the policy owner
wants to pay premiums less often than annually, the premium required to put the
policy in effect is equal to the lesser of:

(a) The Minimum Annual Premium divided by the frequency of the
scheduled premium payments, or

(b) 25% of the Minimum Annual Premium.

This Minimum Annual Premium will be based upon:

(1) The policy's Specified Amount,

(2) Any riders added to the policy, and

(3) The insured's

(a) Age,

(b) Smoking status,

(c) Gender (unless unisex cost of insurance rates apply, see
"Deductions from Account Value-Cost of Insurance," page 52), and

(d) Underwriting class.

The Minimum Annual Premium will be shown in the policy. Thereafter, subject
to the limitations described below, the policy owner may choose the amount and
frequency of premium payments to reflect varying financial conditions.

35
<PAGE> 45

Scheduled Premiums

When applying for a policy, a policy owner determines a scheduled premium
payment. This scheduled premium payment 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 an annual, semiannual or quarterly basis, at the policy owner's option. After
the Minimum Annual Premium has been paid, the minimum scheduled premium for any
policy is $100. Although reminder notices will be sent, the policy owner may not
be required to pay scheduled premium payments.

Payment of the scheduled premium payments will not guarantee that your
policy will remain in effect. (See "Grace Period and Lapse" in the Summary and
on page 48.)

CHOICE OF DEFINITION OF LIFE INSURANCE

When applying for the policy, the policy owner will choose one of two tests
to apply to the policy for compliance with the Federal tax law definition of
life insurance. These tests are the Cash Value Accumulation Test and the
Guideline Premium/Cash Value Corridor Test. The Death Benefit Percentage applied
to the policy varies according to the definition of life insurance chosen. See
"Federal Income Tax Considerations -- Definition of Life Insurance," on page 55.

GUARANTEED DEATH BENEFIT

Generally, the policy remains in effect so long as the Account Value less
Outstanding Debt is sufficient to pay the charges that maintain the policy. The
charges that maintain the policy are deducted monthly from the Account Value.
The Account Value of the policy is affected by:

(1) The investment experience of any amounts in the subaccounts of MONY
Variable Account L,

(2) The interest earned in the Guaranteed Interest Account, and

(3) The deduction from Account Value of the various charges, costs, and
expenses imposed by the policy provisions.

This in turn affects the length of time the policy remains in effect
without the payment of additional premiums. See "Grace Period and Lapse," page
48.

When the policy owner applies for a policy, the policy owner will be able
to choose the Guaranteed Death Benefit Rider. The Rider may extend the period
that the Specified Amount of the policy and certain other rider coverages will
remain in effect if the subaccounts suffer adverse investment experience. See
"Guaranteed Death Benefit Rider," page 41.

Modified Endowment Contracts

The amount, frequency and period of time over which the policy owner pays
premiums may affect whether the policy will be classified as a modified
endowment contract. A modified endowment contract is a type of life insurance
policy subject to different tax treatment than that given to a conventional life
insurance policy. The difference in tax treatment occurs when the policy owner
takes certain pre-death distributions from the policy. See "Federal Income Tax
Considerations -- Modified Endowment Contracts," page 57.

Unscheduled Premium Payments

Generally, the policy owner may make premium payments at any time and in
any amount as long as each payment is at least $250. However, if the premium
payment the policy owner wishes to make exceeds the Scheduled Premium payments
for the policy, the Company may reject or limit any unscheduled premium payment
that would result in an immediate increase in the death benefit payable. An
immediate increase would occur if the policy's death benefit equals a policy
owner's cash value multiplied by a death benefit percentage as a result of the
Federal income tax law definition of life insurance. See "Death

36
<PAGE> 46

Benefits Under the Policy," page 36 and "Federal Income Tax
Considerations -- Definition of Life Insurance," page 55. However, such a
premium may be accepted if satisfactory evidence of insurability is provided. If
satisfactory evidence of insurability is not received, the payment or a part of
it may be returned. In addition, all or a part 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.

Payments the policy owner sends to us will be treated as premium payments,
and not as repayment of Outstanding Debt, unless the policy owner requests
otherwise. If the policy owner requests that the payment be treated as a
repayment of Outstanding Debt, any part of a payment that exceeds the amount of
Outstanding Debt will be applied to the Account Value. Applicable taxes and
sales charges are only deducted from any payment that constitutes a premium
payment.

Premium Payments Affect the Continuation of the Policy

If the policy owner skips or stops paying premiums, the policy will
continue in effect until the Account Value less any Outstanding Debt can no
longer cover (1) the monthly deductions from the Account Value for the policy,
and (2) the charges for any optional insurance benefits added by rider. See
"Grace Period and Lapse." page 48.

The policy owner's Specified Amount is guaranteed to remain in effect as
long as a Guaranteed Death Benefit Rider is in effect. See "Guaranteed Death
Benefit Rider," on page 41.

ALLOCATION OF NET PREMIUMS

Net premiums may be allocated to any number of the 37 available subaccounts
and to the Guaranteed Interest Account. Allocations must be in whole
percentages, and no allocation may be for less than 10% of a net premium.
Allocation percentages must sum to 100%.

The Policy owner may change the allocation of net premiums at any time by
submitting a proper written request to our Customer Service Center at 1 MONY
Plaza, Syracuse, New York, 13202. The revised allocation percentages will be
effective 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. The death
benefit consists of a "Specified Amount" of insurance coverage and, if desired,
an additional amount of insurance coverage which is added by Term Insurance
Rider. The amount of the Term Insurance Rider is defined by the Target Death
Benefit. The Specified Amount is level until the Maturity Date unless changed by
the policy owner. The Target Death Benefit can be scheduled at issue in level,
increasing or decreasing amounts over the lifetime of the insured. The minimum
Target Death Benefit is generally $100,000. The minimum Specified Amount is
$100,000, although the Specified Amount may be reduced to $50,000 if at least
$50,000 of Term Insurance Rider is added to the Policy. The Target Death Benefit
and the Specified Amount will be shown on the specifications page of the policy.

As described below, over time the Base Death Benefit may vary from the
Specified Amount. This may result from:

(1) The operation of a death benefit Option,

(2) Increases to comply with the Federal income tax law definition of
life insurance,

(3) Changes in the death benefit Option, or

(4) Increases or decreases requested by the policy owner.
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<PAGE> 47

The Term Insurance Rider provides term insurance coverage which adjusts
automatically to equal the difference between the Target Death Benefit and the
Base Death Benefit. The Term Insurance Rider does not have a separate premium;
the cost is included in the monthly deductions discussed below. See "Term
Insurance Rider," page 42.

As long as the Policy remains in effect, the Company will, upon proof of
the death of an Insured, pay the death benefit proceeds to the named
beneficiary. Death benefit proceeds will consist of:

(1) The Base Death Benefit under the policy, plus

(2) Any amount provided by the Term Insurance Rider, less

(3) Any Outstanding Debt (and, if in the Grace Period, further reduced
by any overdue charges).

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.

DEATH BENEFIT OPTIONS

Each policy owner may select one of two death benefit Options: Option 1 or
Option 2. Generally, the policy owner designates the death benefit option in the
application. If no option is designated, the Company assumes Option 2 has been
selected. Subject to certain restrictions, you can change the death benefit
option selected. As long as the policy is in effect, the death benefit under
either option will never be less than the Specified Amount of the policy.

Option 1 -- The Base Death Benefit equals the greater of:

(a) The Specified Amount plus any increase in Account Value since the
last monthly anniversary, or

(b) The Cash Value 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. The Internal Revenue Code addresses the definition of a life
insurance policy for tax purposes. See "Federal Income Tax
Considerations -- Definition of Life Insurance," page 55. The death benefit
percentage is 250% for insureds 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 your policy. If you seek to have favorable
investment performance reflected in increasing Account Value, and not in
increasing insurance coverage, you should choose Option 1.

Option 2 -- The death benefit equals the greater of:

(a) The Specified Amount of the policy, plus the Account Value, or

(b) The Cash Value multiplied by a death benefit percentage.

The Account Value used in these calculations is determined as of the
date of the insured's death. The death benefit percentage is the same as
that used for Option 1 and is stated in Appendices A or B. The death
benefit in Option 2 will always vary as Account Value varies. If you seek
to have favorable investment performance reflected in increased insurance
coverage, you should choose Option 2.

In addition, the policy owner has the option at issue to select an
alternate Death Benefit Percentage. The alternate Death Benefit Percentage may
produce a higher Base Death Benefit amount beginning the later of the Insured's
age 55 or 10 years following policy issue. This alternate Death Benefit
Percentage grades back to the Federal income tax law Death Benefit Percentage at
the Maturity Date. Use of the alternate Death Benefit Percentage results in a
higher ratio of Base Death Benefit to Account Value than that resulting from the
use of the IRS' Death Benefit Percentage beginning the later of the Insured's
age 55 or 10 years following Policy issue. This higher percentage then gradually
reduces until, by the Maturity

38
<PAGE> 48

Date, it is equal to the ratio produced by the use of the IRS' Death Benefit
Percentage. Although use of the alternate Death Benefit Percentage results in a
higher Base Death Benefit than the IRS' Death Benefit Percentage, this higher
Base Death Benefit results in higher cost of insurance charges which has the
effect of reducing the Account Value and consequently future Base Death
Benefits. The election of the alternate Death Benefit Percentage may be
eliminated at any time; once eliminated, it cannot be reinstated. (See Appendix
B, E, and F for alternate death benefit percentages.)

Changes in Death Benefit Option

The policy owner may request that the death benefit option under your
policy be changed from Option 1 to Option 2, or Option 2 to Option 1. The policy
owner may make a change by sending a written request to the Company's
administrative office. A change from Option 2 to Option 1 is made without
providing evidence of insurability. A change from Option 1 to Option 2 will
require that you provide satisfactory evidence of insurability. The effective
date of a change requested between monthly anniversaries will be the next
monthly anniversary after the change is accepted by the Company.

If you change from Option 1 to Option 2 your policy's Specified Amount is
reduced by the amount of the policy's Account Value at the date of the change.
This maintains the Base Death Benefit payable under Option 2 at the amount that
would have been payable under Option 1 immediately prior to the change. The
total Base Death Benefit will not change immediately. The change to Option 2
will affect the determination of the Base Death Benefit from that point on. As
of the date of the change, the Account Value will be added to the new Specified
Amount. The death benefit will then vary with the Account Value. This change
will not be permitted if it would result in a new Specified Amount of less than
$100,000.

If you change from Option 2 to Option 1, the Specified Amount of the policy
will be increased by the amount of the policy's Account Value at the date of the
change. This maintains the Base Death Benefit payable under Option 1 at the
amount that would have been payable under Option 2 immediately prior to the
change. The total Base Death Benefit will not change immediately. The change to
Option 1 will affect the determination of the Base Death Benefit from that point
on. The change to Option 1 will generally reduce the death benefit payable in
the future.

Increases in the Specified Amount resulting from a change in death benefit
Option do not create new coverage segments. They increase the size of the oldest
coverage segments of the Specified Amount. Therefore, cost of insurance and
other charges are not computed separately for increases resulting from a death
benefit Option change.

Decreases due to a death benefit Option change will not reduce the Target
Death Benefit but may reduce the Specified Amount. Any decrease associated with
an Option change will maintain the net amount at risk for each coverage layer at
the time of the change.

A change in the death benefit option may affect the monthly cost of
insurance charge since this charge varies with the net amount at risk.
Generally, the net amount at risk is the amount by which the Base Death Benefit
exceeds Account Value. See "Deductions from Account Value-Cost of Insurance,"
page 52. If the policy's Base Death Benefit is not based on the death benefit
percentage under Option 1 or 2, changing from Option 2 to Option 1 will
generally decrease the net amount at risk. Therefore, this change may decrease
the cost of insurance charges. Changing from Option 1 to Option 2 will generally
result in a net amount at risk that remains level. However, such a change will
result in an increase in the cost of insurance charges over time. This results
because the cost of insurance rates increase with the insured's age.

CHANGES IN DEATH BENEFIT AMOUNTS

The policy owner may increase or decrease the Target Death Benefit subject
to Company approval. The Target Death Benefit is the Specified Amount plus the
benefit amount of the Term Insurance Rider. Increases or decreases in the Target
Death Benefit can be done on a scheduled or unscheduled basis.

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<PAGE> 49

Scheduled Increases in Target Death Benefits

Increases to the Target Death Benefit may be scheduled:

(1) At the time of application for the Policy, or

(2) At the time of the application for an unscheduled increase.

Scheduled increases or decreases will be effective on the requested date. A
scheduled increase may only be made by increasing the amount of the Term
Insurance Rider. Since these increases are scheduled at issue, evidence of
insurability will not be required at the time the increase becomes effective.
Scheduled increases do not create new "coverage segments." Therefore, cost of
insurance and other charges are not computed separately for such increases.

Unscheduled Increases in Target Death Benefit

A policy owner may request an unscheduled increase in the Target Death
Benefit at any time after issue prior to the insured's age 81 (or age 65 for
policies issued on a guaranteed basis). Additional evidence of insurability
satisfactory to the Company will be required. An unscheduled increase will not
be given for increments less than $10,000. Requests for an unscheduled increase
must be made by written application to the Customer Service Center. The increase
will become effective on the monthly anniversary following the approval of the
request by the Company.

An unscheduled increase in the Target Death Benefit may consist of any
combination of increases in Specified Amount and/or Term Insurance Rider.

- Unless otherwise indicated, any request for an unscheduled increase to
the Target Death Benefit will be assumed to be a request for an increase
to the Specified Amount.

- An unscheduled increase in Specified Amount will increase the Target
Death Benefit by an equal amount so that the Term Insurance Rider amount
will remain unchanged after the increase.

An unscheduled increase in Specified Amount will create a new "coverage
segment" for which cost of insurance and other charges are computed separately.
If the Specified Amount is increased:

- Additional sales charges associated with the increase will be incurred.

- The sales charge for the increase is calculated in a similar way as for
the original 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
income tax laws) for each segment bear to the sum of the guideline annual
premiums for all segments.

- The Company deducts a Sales Charge from each premium allocated to each
segment up to the "Target Premium" paid in each year during the first ten
policy years following an increase in Specified Amount.

- The Target Premiums and the required premiums under the Guaranteed Death
Benefit Rider, if applicable, will also be adjusted.

- The adjustment will be done prospectively to reflect the increase.

- 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 unscheduled increase creates a new coverage segment of Specified
Amount, the Account Value after the increase will be allocated:

(1) first to the original coverage segment, and

(2) second to each coverage segment in order of the increases.

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<PAGE> 50

(3) Allocations will be in the same proportion that the guideline annual
premiums (defined by the Federal income tax laws) for each segment bear
to the sum of the guideline annual premiums for all segments.

Increasing the Specified Amount will generally increase the Base Death
benefit of the policy. The amount of the change in the Base Death Benefit will
depend, among other things on:

(1) The death benefit Option chosen by the policy owner, and

(2) Whether the Base Death Benefit under the policy is being calculated
using a Death Benefit Percentage at the time of the change.

Changing the Specified Amount could affect:

(1) The subsequent level of the Base Death Benefit while the policy is in
effect, and

(2) 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.

Decreases In Target Death Benefits

Any decrease in Specified Amount (whether scheduled or unscheduled) will
reduce the Target Death Benefit of the policy and may reduce the Specified
Amount of the policy at issue. Any decrease will be applied:

(1) First to reduce the coverage segments of Term Insurance Rider
associated with the most recent increases, then

(2) To the next most recent increases of Term Insurance Rider successively,
and last

(3) To the original coverage segment of Term Insurance Rider.

After all coverage segments of Term Insurance Rider have been entirely
eliminated, then coverage segments of the Specified Amount will be reduced in a
similar order. A decrease will not be permitted if less than $10,000. In
addition, no transaction will be permitted if the Specified Amount would fall
below the minimum we require to issue the policy at the time of the reduction.

The required premiums under the Guaranteed Death Benefit Rider, if
applicable, will be adjusted for the decrease in death benefits. If the Target
Death Benefit or Specified Amount is decreased, target premiums will also be
adjusted for the decrease. If the target death benefit is decreased at the same
time that a premium payment is received, the decrease will be processed before
the premium payment is processed. Decreases become effective on the monthly
anniversary following the approval of the request by the Company.

The Company reserves the right to reject a requested decrease. Decreases
will not be permitted if:

(1) Compliance with the guideline premium limitations under federal tax law
resulting from the decrease would result in immediate termination of
your policy, or

(2) To effect the decrease, payments to you would have to be made from
Account Value for compliance with the guideline premium limitations,
and the amount of the payments would exceed the Account Value of the
policy.

If a requested change is not approved, we will send you a written notice of our
decision. See "Federal Income Tax Considerations -- Definition of Life
Insurance," page 55.

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<PAGE> 51

Decreasing the Specified Amount will generally decrease the Base Death
Benefit. The amount of change in the Base Death Benefit will depend, among other
things, on:

(1) The death benefit Option chosen, and

(2) Whether the Base Death Benefit under the policy is being calculated
using a death benefit percentage at the time of the change.

Changing the Specified Amount could affect the subsequent level of the Base
Death Benefit while the policy is in effect and the subsequent level of policy
values. For example, 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.

GUARANTEED PAID-UP INSURANCE

On the policy anniversary the Specific Amount may be reduced to an amount
that the Surrender Value will maintain in force until Age 95 when applied as a
net single premium. However, the maximum amount of Surrender Value that may be
applied will not be greater than that needed to provide an amount at risk equal
to the amount at risk immediately before this option becomes effective. Any
surrender value in excess of the amount applied will be refunded to you.

Surrenders for surrender value may be made at any time (see 6 below).

On or after the effective date of this option:

(1) it may not be revoked;

(2) we will not accept any further premiums;

(3) no further optional policy changes may be made;

(4) the Policy is no longer subject to the Administrative Charge;

(5) any loan balance and loan interest which existed immediately before the
effective date will be set to 0;

(6) any partial surrender will result in a recalculation of the Specified
Amount and surrender value;

(7) any additional benefit provided by rider will terminate; and

(8) the death benefit will equal the reduced Specified Amount.

The endorsement issued to reflect this change will show the reduced
Specified Amount and the guaranteed surrender value on the effective date and
each policy anniversary thereafter.

GUARANTEED DEATH BENEFIT RIDER

When the policy owner applies for a policy, the policy owner may also elect
the Guaranteed Death Benefit Rider. This rider may extend the period the
Specified Amount of the policy remains in effect. An extra charge is deducted
from the Account Value each month and premiums at least equal to the cumulative
Monthly Guaranteed Premium must have been paid.

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<PAGE> 52

In order to remain in effect, the Guaranteed Death Benefit Rider requires
that you have paid a certain amount of premiums during the time that the Rider
is in effect. This amount is described in the next paragraph. If the premiums
you have paid do not equal or exceed this amount, the rider will automatically
end. In addition, this rider will automatically end at the insured's age 95
("Guarantee Period"). An extra charge will be deducted from the Account Value
each month during the Guarantee Period. This charge will end at the conclusion
of the Guarantee Period, and it will end if on any monthly anniversary date you
have not paid the amount of premiums the rider requires you to pay. See
"Deductions from Account Value-Guaranteed Death Benefit Charge," page 53.

On each monthly anniversary day we test to determine whether you have paid
the amount of premiums you are required to pay in order to keep the Guaranteed
Death Benefit Rider in effect. To remain in effect, we make two tests. Under the
first test the Account Value must exceed Outstanding Debt. Under the second test
we:

(1) total the actual premiums you have paid for the policy, and

(2) subtract the amount of partial surrenders (and associated fees).

The result must equal or exceed:

(1) the Monthly Guarantee Premium for the Rider, times

(2) the number of compete months since the policy date.

If the policy meets both tests on the monthly anniversary day, the rider remains
in effect until the next monthly anniversary date. If the policy fails to meet
either test, we will send you a notice that requires you to pay additional
premiums within the time specified in the notice. This time is called the grace
period for the rider. If you fail to pay the additional premiums required the
Guarantee Period, and therefore the Rider, will end. Once ended, the Rider can
not be reinstated.

The grace period for this Rider is explained in the section called "Grace
Period and Lapse -- If Guaranteed Death Benefit Is in Effect" on page 49.

Please refer to the policy for additional information on the Guaranteed
Death Benefit Rider.

OTHER OPTIONAL INSURANCE BENEFITS

Subject to certain requirements, you may elect to add one or more of the
optional insurance benefits described below. Optional insurance benefits are
added when you apply for your policy. These other optional benefits are added to
your policy by an addendum called a rider. A charge is deducted monthly from the
Account Value for each optional benefit added to your policy. See "Charges and
Deductions," page 44. The amounts of these benefits are fully guaranteed at
issue. You can cancel these benefits 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 your policy's status as a modified
endowment contract. See "Federal Income Tax Considerations -- Modified Endowment
Contracts," page 57. An insurance agent authorized to sell the 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.

Term Insurance Rider

The policy can be issued with a Term Insurance Rider as a portion of the
total death benefit. This Rider provides term life insurance on the life of the
insured, which is annually renewable to attained age 95. As described below, the
amount of coverage provided by the Rider varies over time.

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<PAGE> 53

When the policy is issued, a schedule of death benefit amount called the
"Target Death Benefit" is established. The Target Death Benefit may be varied as
often as each policy year, and subject to the Company's rules, may be changed
after issue. See "Death Benefits Under the Policy," page 36.

The amount of the Term Insurance Rider in effect at any time is equal to
the difference between the scheduled Target Death Benefit and the Base Death
Benefit in effect. The Rider is dynamic, it adjusts for variations in the Base
Death Benefit under the policy (e.g., changes resulting from the Federal income
tax law definition of life insurance). The Company generally restricts the
amount of the Target Death Benefit at issue to an amount not more than 900% of
the Specified Amount. For example, if the Specified Amount is $100,000 then the
maximum amount of the Target Death Benefit allowed is $900,000.

For example, assume the Base Death Benefit varies according to the
following schedule. The Term Insurance Rider will adjust to provide death
proceeds equal to the Target Death Benefit each year.

<TABLE>
<CAPTION>
BASE DEATH BENEFIT TARGET DEATH BENEFIT TERM INSURANCE RIDER AMOUNT
------------------ -------------------- ---------------------------
<S> <C> <C>
$500,000 $550,000 $50,000
$501,500 $550,000 $48,500
$501,250 $550,000 $48,750
</TABLE>

Since the Term Insurance Rider is dynamic, it is possible that the Rider
may be eliminated entirely as a result of increases in the Base Death Benefit.
Using the above example, if the Base Death Benefit grew to $550,000, the Term
Insurance Rider would be reduced to zero. (It can never be reduced below zero.)
Even though the Rider amount is reduced to zero, the Rider will remain in effect
until it is removed from the policy. Therefore, if the Base Death Benefit is
subsequently reduced below the Target Death Benefit, a Rider amount will
reappear as needed to maintain the Target Death Benefit at the requested level.

There is no defined premium for the Term Insurance Rider. The cost of the
Rider is added to the monthly deductions, and is based on the insured's attained
age and premium class. The Company may adjust the rate charged for the Rider
from time to time. The rate will never exceed the guaranteed cost of insurance
rates for the Rider for that policy year. The cost for the Rider is added to the
Company's calculation of the Monthly Guarantee Premium and to the calculation of
the Minimum Annual Premium.

BENEFITS AT MATURITY

The maturity date for this policy is the policy anniversary on which the
insured is age 95. If the insured is living on the maturity date, the Company
will pay to you, as an endowment benefit, the Account Value of the policy less
Outstanding Debt. Ordinarily, the Company pays within seven days of the policy
anniversary. Payments may be postponed in certain circumstances. See "Payments,"
page 65.

POLICY VALUES

Account Value

The Account Value is the sum of the amounts under the policy held in each
subaccount of MONY America Variable Account L and any Guaranteed Interest
Account. It also includes the amount set aside in the Company's loan account,
and any interest, to secure Outstanding Debt.

On each Valuation Date, the part of the Account Value allocated to any
particular subaccount is adjusted to reflect the investment experience of that
subaccount. On each monthly anniversary day, the Account Value also is adjusted
to reflect the assessment of the monthly deduction. See "Determination of
Account Value," page 43. No minimum amount of Account Value allocated to a
particular subaccount is guaranteed. A policy owner bears the risk for the
investment experience of Account Value allocated to the subaccounts.

44
<PAGE> 54

Surrender Value

The owner can surrender a policy at any time while the insured is living
and receive its Cash Value less any Outstanding Debt. The Cash Value of the
policy equals the Account Value plus any applicable refund of sales charges.
Thus, the Cash Value will exceed the policy's Account Value by the refund amount
in the three years following policy issuance. Once the refund of sales charges
has expired, the Surrender Value will equal the Account Value (less any
Outstanding Debt). See "Full Surrender," page 46.

DETERMINATION OF ACCOUNT VALUE

Although the death benefit under a policy can never be less than the
policy's Specified Amount, the Account Value will vary. The Account Value varies
depending on several factors:

- Payment of premiums.

- Amount held in the Loan Account to secure any Outstanding Debt.

- Partial surrenders.

- The charges assessed in connection with the policy.

- Investment experience of the subaccounts.

- Amounts credited to the Guaranteed Interest Account.

There is no guaranteed minimum Account Value and you bear the entire risk
relating to the investment performance of Account Value allocated to the
subaccounts.

The Company invests amounts allocated to the subaccounts in shares of the
corresponding portfolios of the Funds. The values of the subaccounts reflect the
investment experience of the corresponding portfolio. The investment experience
reflects:

- The investment income.

- Realized and unrealized capital gains and losses.

- Expenses of a portfolio including the investment adviser fee.

- Any dividends or distributions declared by a portfolio.

Any dividends or distributions from any portfolio of the Funds are reinvested
automatically in shares of the same portfolio. However, the Company, on behalf
of MONY Variable Account L, may elect 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. Units
are a measure of value used for bookkeeping purposes. The value of amounts
invested in each subaccount is represented by the value of units credited to the
policy for that subaccount. (See "Calculating Unit Values for Each Subaccount,"
on page 45.) On any day, the amount in a subaccount of MONY Variable Account L
is equal to the unit value times the number of units in that subaccount credited
to the policy. The units of each subaccount will have different unit values.

Units of a subaccount are purchased (credited) whenever net premiums or
transfer amounts (including transfers from the loan account) are allocated to
that subaccount. Units are redeemed (debited) to:

- Make partial surrenders.

- Make full surrenders.

- Transfer amounts from a subaccount (including transfers to the loan
account).

45
<PAGE> 55

- Pay the death benefit when the insured dies.

- Pay monthly deductions from the policy's Account Value.

- Pay policy transaction charges.

- Pay partial surrender fees.

The number of units purchased or redeemed is determined by dividing the dollar
amount of the transaction by the unit value of the affected subaccount, computed
after 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 later changes in unit value.

Transactions are processed when a premium or an acceptable written or
telephone request is received at the Company's administrative office. If the
premium or request reaches the administrative office on a day that is not a
Valuation Date, or after the close of business on a Valuation Date (after 4:00
p.m. Eastern Time), the transaction date will be the next 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.,
Saturday), the calculations will be done on the next day that the New York Stock
Exchange is open for trading.

CALCULATING UNIT VALUES FOR EACH SUBACCOUNT

The Company calculates the unit value of a subaccount on any 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. This
calculation is done 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) 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 ACCOUNT VALUE

You may transfer Account Value among the subaccounts after the Right to
Return Policy Period by sending a proper written request to the Customer Service
Center. Currently, there are:

(1) No limitations on the number of transfers between subaccounts.

(2) No minimum amount required for a transfer.

(3) No minimum amount required to remain in a given subaccount after a
transfer.

After the Right to Return Policy Period, Account Value may also be
transferred from the subaccounts to the Guaranteed Interest Account. Transfers
from the Guaranteed Interest Account to the subaccounts will only be permitted
in the policy month following a policy anniversary as described in "The
Guaranteed Interest Account," page 62.

RIGHT TO EXCHANGE POLICY

During the first 24 months following the policy date, you may exchange your
policy for a policy where the investment experience is guaranteed. To accomplish
this, the entire amount in the subaccounts of MONY Variable Account L is
transferred to the Guaranteed Interest Account. All future premiums are
allocated to the Guaranteed Interest Account. This serves as an exchange of your
policy for the equivalent

46
<PAGE> 56

of a flexible premium universal life policy. See "The Guaranteed Interest
Account," page 61. No charge is imposed on the transfer when you exercise the
exchange privilege.

POLICY LOANS

The policy owner may borrow money from the Company at any time using the
policy as security for the loan. A loan is taken by submitting a proper written
request to the Company's administrative office. A policy owner may take a loan
any time a policy is in effect. The minimum amount a policy owner may borrow is
$250 (except for policies offered or issued in Connecticut where the minimum
amount is $200). The maximum amount that may be borrowed at any time is 90% of
the Account Value of the policy less any Outstanding Debt. (If you request a
loan on a monthly anniversary day, the maximum loan is 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 arrears on each policy anniversary at an annual
rate of 4.6%. Interest on the full amount of any Outstanding Debt is due 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
your policy is in effect. Only payments shown as loan or interest payments will
be treated as such. If a loan repayment is made which exceeds the Outstanding
Debt, the excess will be applied as a scheduled premium payment. The payment
will be subject to the rules on acceptance of premium payments.

When a loan is taken, an amount equal to the loan is transferred out of the
policy owner's Account Value into the loan account to secure the loan. Within
certain limits, you may specify the amount or the percentage of the loan amount
to be deducted from the subaccounts and the Guaranteed Interest Account. The
request for a loan will not be accepted if (1) you do not specify the source of
the transfer, or (2) if the transfer instructions are incorrect. On each policy
anniversary, an amount equal to the loan interest due and unpaid for the policy
year will be transferred to the loan account. The transfer is made from the
subaccounts and the Guaranteed Interest Account on a proportional basis.

The loan account is part of the Company's general account. Amounts held in
the loan account are credited monthly with an annual rate of interest not less
than 4.0%. After the tenth policy anniversary, the annual interest rate that
applies to the Loan Account is expected to be 0.3% higher than otherwise
applicable. In states where approval has been given for the declaration of
interest on a daily basis, the rate will be based on the London Interbank
Offered Rate and the increase in the interest rate after the tenth policy year
will not apply.

Loan repayments release funds from the loan account. Unless you request
otherwise, amounts released from the loan account will be transferred into the
subaccounts and Guaranteed Interest Account pursuant to your most recent valid
allocation instructions for scheduled premium payments. In addition, any
interest earned on the amount held in the Loan Account will be transferred each
policy anniversary to each of the subaccounts and the Guaranteed Interest
Account on the same basis.

Amounts held in the loan account to secure Outstanding Debt forego the
investment experience of the subaccounts and the current interest rate of the
Guaranteed Interest Account. Thus Outstanding Debt, whether or not repaid, has a
permanent effect on your policy values and may have an effect on the amount and
duration of the death benefit. If not repaid, the Outstanding Debt will be
deducted from the amount of the death benefit upon the death of the insured, or
the Cash Value paid upon surrender or maturity.

Outstanding Debt may affect the length of time the policy remains in
effect. Unless the Guaranteed Death Benefit Rider is in effect, the policy will
lapse when (1) the Account Value minus Outstanding is insufficient to cover the
monthly deduction against the policy's Account Value on any monthly anniversary
day, and (2) 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. In addition, the guarantee period under the Guaranteed Death Benefit
Rider may end if Outstanding Debt exceeds the Account Value of the policy.
Additional
47
<PAGE> 57

payments or repayments of a part of Outstanding Debt may be required to keep the
Policy or Rider in effect. See "Grace Period and Lapse," page 48.

A loan will not be treated as a distribution from your policy and will not
result in taxable income to you unless your policy is a modified endowment
contract. If your policy is a modified endowment contract, a loan will be
treated as a distribution that may give rise to taxable income. If your policy
lapses with an outstanding loan balance there could be adverse federal income
tax consequences depending on the particular facts and circumstances. For
example, if (1) your policy lapses with an outstanding loan balance, and (2) it
does not lapse under a non-forfeiture option, you can have ordinary income to
the extent the outstanding loan exceeds your investment in the policy (i.e.
generally premiums paid less prior non-taxable distributions). For more
information on the tax treatment of loans, see "Federal Income Tax
Considerations," page 55.

FULL SURRENDER

A policy owner may fully surrender a policy at any time during the life of
the insured. The amount received for a full surrender is the policy's Account
Value plus (1) any applicable refund of sales charge, reduced by (2) any
Outstanding Debt. For purposes of calculating the Account Value, the net asset
value of shares of the portfolios of the applicable subaccounts will be
determined on (1) the Valuation Date that we receive your request at our
administrative office, or (2) on the next Valuation Date if that day is not a
Valuation Date.

A policy owner may surrender a policy by sending a written request together
with the policy to the Company's administrative office. The proceeds will be
determined as of the end of the valuation period during which the request for
surrender is received. A policy owner may elect to (1) have the proceeds paid in
cash, or (2) apply the proceeds under a payment plan offered under the policy.
See "Payment Plan Settlement Provisions," page 65. For information on the tax
effects of surrender of a policy, see "Federal Income Tax Consideration," page
55.

PARTIAL SURRENDER

With a partial surrender, the policy owner obtains a part of the Account
Value of the policy without having to surrender the policy in full. The policy
owner may request a partial surrender beginning in the first policy year. The
partial surrender and the corresponding calculation of net asset value will take
effect on (1) the Valuation Date that we receive your request at out
administrative office, or (2) on the next Valuation Date if that day is not a
Valuation Date. 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). In
addition, the policy's Account Value less Outstanding Debt must be at least $500
after the partial surrender. In addition, the partial surrender must not reduce
the Target Death Benefit or Specified Amount below the minimum we require to
issue the policy.

The policy owner may make a partial surrender by submitting a proper
written request to the Company's administrative office. As of the effective date
of any partial surrender, the policy owner's Account Value and Surrender Value
are reduced by the amount surrendered (plus the applicable fee). The amount of
the partial surrender (plus the applicable fee) will be deducted proportionately
from the policy owner's Account Value in the subaccounts and the Guaranteed
Interest Account.

48
<PAGE> 58

When a partial surrender is made and you selected death benefit Option 1,
the Target Death Benefit and the Base Death Benefit of your policy is generally
decreased by the amount of the partial surrender (plus its fee). The Specified
Amount under the policy is decreased by the lesser of:

(1) the amount of the partial surrender, or

(2) if the Base Death Benefit prior to the partial surrender is greater
than the Specified Amount, the amount, if any, that the Specified
Amount exceeds the difference between the Base Death Benefit less the
amount of the partial surrender.

The Target Death Benefit under the policy is reduced by the lesser of:

(1) the amount of the partial surrender, or

(2) if the Base Death Benefit prior to the partial surrender is greater
than the Target Death Benefit, the amount, if any, that the Target
Death Benefit exceeds the difference between the Base Death Benefit and
the amount of the partial surrender.

When a partial surrender is made and you selected death benefit Option 2,
the Target Death Benefit is generally decreased by the amount of the partial
surrender (plus the amount of the partial surrender fee). The partial surrender
will not change the Specified Amount of the policy. However, assuming that the
Base Death Benefit under Option 2 is not equal to the Cash Value times the
applicable death benefit percentage, the partial surrender will reduce the Base
Death Benefit by the amount of the partial surrender. If the Option 2 death
benefit is based upon the Cash Value times the death benefit percentage, a
partial surrender may cause the Base Death Benefit to decrease by an amount
greater than the amount of the partial surrender. The Target Death Benefit under
the policy is reduced by the lesser of:

(1) the amount of the partial surrender, or

There is a fee for each partial surrender of the lesser of $25 or 2% of the
partial surrender amount. See "Charges and Deductions -- Transaction and Other
Charges," page 53.

For information on the tax treatment of partial surrenders, see "Federal
Income Tax Considerations," page 54.

GRACE PERIOD AND LAPSE

Your policy will lapse only when:

(1) The Account Value less Outstanding Debt is insufficient to cover the
current monthly deduction against the policy's Account Value on any
monthly anniversary day, and

(2) A 61-day Grace Period expires without the policy owner making a
sufficient payment.

If Guaranteed Death Benefit Rider Is Not in Effect

To avoid lapse if (1) an insufficiency occurs, and (2) a Guaranteed Death
Benefit Rider is not in effect, the policy owner must pay the required amount
during the grace period. When an insufficiency occurs, you may also be required
to pay any unpaid, loan interest accrued for the policy year. The interest
amount will also have to be paid prior to the end of the grace period.

We will reject any payment if is means your total premium payments will
exceed the maximum permissible premium for your policy's Specified Amount under
the Internal Revenue Code. This may happen when the policy owner has Outstanding
Debt. In this event, the policy owner could repay enough of the Outstanding Debt
to avoid termination. The policy owner may also wish to repay an additional part
of the Outstanding Debt to avoid recurrence of the potential lapse. If premium
payments have not

49
<PAGE> 59

exceeded the maximum permissible premiums, the policy owner may wish to make
larger or more frequent premium payments to avoid recurrence of the potential
lapse.

If the Account Value less Outstanding Debt will not cover the entire
monthly deduction on a monthly anniversary day, we will deduct the amount that
is available. We will notify the policy owner (and any assignee of record) of
the payment required to keep your policy in effect. You will then have a grace
period of 61 days, from the date the notice was sent, to make the payment. The
payment required is:

(1) the amount of the monthly deduction not paid, plus

(2) not less than two succeeding monthly deductions (or the number of
monthly deductions remaining until the next scheduled premium due date,
if more than two), grossed up by

(3) the amount of the deductions from premiums.

(See "Charges and Deductions -- Deductions from Premiums," page 51). The policy
will remain in effect through the grace period. If the owner fails to make the
required payment within the grace period, the coverage under the policy will end
and your policy will lapse. Required premium payments made during the grace
period will be allocated among the subaccounts and the Guaranteed Interest
Account. The allocation is made in according to your current scheduled premium
payment allocation instructions. Any monthly deduction due will be charged
proportionately to the subaccounts and the Guaranteed Interest Account. If the
insured dies during the grace period, the death benefit proceeds will equal:

(1) The amount of the death benefit immediately prior to the start of the
grace period, reduced by

(2) Any unpaid monthly deductions and any Outstanding Debt.

If Guaranteed Death Benefit Rider Is in Effect

The Specified Amount of your policy will not lapse during the guarantee
period even if the Account Value less Outstanding Debt is not enough to cover
all the deductions from the Account Value on any monthly anniversary day if:

(1) A Guaranteed Death Benefit Rider is in effect, and

(2) The test for continuation of the guarantee period has been met.

See "Guaranteed Death Benefit Rider," page 41.

While the Guaranteed Death Benefit Rider is in effect, the Account Value of
the policy may be reduced by monthly deductions but not below zero. During the
guarantee period, we will waive any monthly deduction that will reduce the
Account Value below zero. If the Guaranteed Death Benefit Rider is ended, the
normal test for lapse will resume.

Reinstatement

We will reinstate a lapsed policy at any time:

(1) Before the maturity date, and

(2) Within five years after the monthly anniversary day which precedes the
start of the grace period.

To reinstate a lapsed policy we must also receive:

(1) A written application from you

(2) Evidence of insurability satisfactory to us

(3) Payment of all monthly deductions that were due and unpaid during the
grace period

(4) Payment of an amount at least sufficient to keep your policy in effect
for three months after the reinstatement date

50
<PAGE> 60

(5) Payment of due and unpaid interest on Outstanding Debt to the next
succeeding policy anniversary day, and

(6) Payment of the reinstatement fee.

When your policy is reinstated, the Account Value will be equal to the
Account Value on the date of the lapse subject to the following:

(1) Any Outstanding Debt on the date of lapse must be paid or reinstated.

(2) No interest on amounts held in our 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
proceeding the date of approval by us. At that time, the Account Value minus, if
applicable, Outstanding Debt will be allocated among the subaccounts and the
Guaranteed Interest Account pursuant to your most recent scheduled premium
payment allocation instructions.

51
<PAGE> 61

CHARGES AND DEDUCTIONS
--------------------------------------------------------------------------------

DEDUCTIONS FROM PREMIUMS

<TABLE>
<CAPTION>
<S> <C> <C>
-----------------------------------------------------------------------------------------------
Sales Charge -- Deducted from premium up to First 10 policy years -- 9%
the Target Premium After the 10th policy year -- 0%
Ten policy years after an increase in
Specified Amount -- 9%
-----------------------------------------------------------------------------------------------

Tax Charge State and local -- 0.8%; Federal -- 1.25%
-----------------------------------------------------------------------------------------------
</TABLE>

DEDUCTIONS FROM ACCOUNT VALUE
--------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
Cost of Insurance Charge Current cost of insurance rate x net amount
at risk at the beginning of the policy
month
----------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge -- First 10 policy years -- .60% of
Annual Rate subaccount value.
After the 10th policy year -- maximum of
.45% of
subaccount value(1).
----------------------------------------------------------------------------------------------
Administrative Charge (all $7.50
policies) -- Monthly
Medical Underwriting Charge (applicable $5.00 for the first 3 policy years.
policies) -- Monthly
Guaranteed Issue Underwriting Charge $3.00 for the first 3 policy years.
(applicable policies) -- Monthly
----------------------------------------------------------------------------------------------
Guaranteed Death Benefit Charge $0.01 per $1,000 of policy Specified
Monthly Charge for Death Benefit Rider Amount. Please note that the Rider requires
that premiums on the policy itself be paid
in order to remain in effect.
----------------------------------------------------------------------------------------------
Optional Insurance Benefits Charge -- As applicable.
Monthly Deduction for any other optional
insurance Benefits added by rider.
----------------------------------------------------------------------------------------------
Transaction and Other Charges
-- Partial Surrender Fee Lesser of $25 or 2% of the partial
surrender amount
-- Transfer of Account Value Maximum of $25(2)
-- Premium allocation changes (over two in $25
any policy year
-- Reinstatement Fee $150
----------------------------------------------------------------------------------------------
</TABLE>

---------------
(1) Expected current amount of .30% of subaccount value.
(2) Currently, the Company does not assess a transfer charge. The Company
reserves the right to charge up to a maximum of $25 for transfers.

The following provides additional details of the deductions from premium
payments under a policy prior to allocating net premium payments to the
subaccounts of the MONY Variable Account L or to the Guaranteed Interest Account
and of th deductions from MONY Variable Account L and from the policy's Account
Value.

52
<PAGE> 62

DEDUCTIONS FROM PREMIUMS

The sales charge and tax charges are deducted from the gross premium prior
to applying the net premium to the Account Value. The sales charge is deducted
from gross premium only up to Target Premium. Tax charges are deducted against
the entire gross premium.

Sales Charge -- During the first ten policy years and during the
ten policy years following an increase in Specified
Amount -- 9%
After the tenth policy year -- 0%

The Target Premium is an amount equal to the maximum amount of premium
which may be paid for a death benefit Option 1 policy without violating the
limits imposed by the Federal income tax law definition of a modified endowment
contract. See "Modified Endowment Contracts," page 57. The Target Premium is not
based on scheduled premium. The Target Premium for the policy and Specified
Amount coverage segments added since the policy date will be stated in the
policy.

The sales charge compensates us for the cost of distributing the policies.
This charge is not expected to be enough to cover sales and distribution
expenses for the policies. To the extent that sales and distribution expenses
exceed sales charges, amounts derived from surrender charges will be used.
Expenses in excess of the sales and surrender charges may be recovered from
other charges, including amount indirectly derived from the charge for mortality
and expense risks and mortality gains.

A portion of the sales charges previously deducted from premium payments
may be refunded if:

(1) the policy is surrendered in the first three policy years, and

(2) the policy is not in default.

<TABLE>
<CAPTION>
YEAR OF SURRENDER AMOUNT OF REFUND
----------------- ----------------
<S> <C>
First policy year.................... Sum of all sales charge deductions in that
year
Second policy year................... 66.67% of sales charge deductions in the
first policy year
Third policy year.................... 33.33% of sales charge deductions in the
first policy year
</TABLE>

No refund will be paid if the policy is in default.

Tax Charges -- State and local premium tax -- currently 0.8%
Federal tax for deferred acquisition costs of the
Company -- 1.25%

All states levy taxes on life insurance premium payments. 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. The 0.8%
current deduction is the actual premium tax imposed by the State of New York. We
do not expect to profit from this charge.

The 1.25% current charge against each premium covers our estimated cost for
the Federal income tax treatment of deferred acquisition costs. This is
determined solely by the amount of life insurance premiums received. We believe
this charge is reasonable in relation to our increased federal tax burden under
IRC Section 848 resulting from the receipt of premium payments. No charge will
be deducted where premiums received from you are not subject to this tax.

We reserve the right to increase or decrease the charge for taxes due to
any change in tax law or due to any change in the cost to us. In addition, if an
insured changes his or her place of residence, we should be notified of the
change. Any change in the tax rate will be effective on the next policy
anniversary.

53
<PAGE> 63

DEDUCTIONS FROM ACCOUNT VALUE

A charge called the Monthly Deduction is deducted from the Account Value on
each monthly anniversary day. The Monthly Deduction consists of the following
items:

Cost of Insurance -- This charge compensates us for the anticipated cost
of paying death benefits in excess of Account Value
to insureds' beneficiaries. 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. Here,
net amount at risk equals the death benefit payable
at the beginning of the policy month less the
Account Value at that time.

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 until attained age 15. Where unisex cost of
insurance rates apply, the 1980 Commissioners Ordinary Smoker and Nonsmoker
Mortality Table B applies.) These rates are based on the age and underwriting
class of the insured. They are also based on the gender of the insured. Unisex
rates are used for cases purchased on a split dollar basis, and where
appropriate under applicable law, including policies purchased by employers and
employee organizations in connection with employment related insurance or
benefit programs. As of the date of this prospectus, we charge "current rates"
that are lower (i.e., less expensive) than the guaranteed rates. We may 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.

Lower cost of insurance rates are offered at most ages for insureds who:

(1) qualify for the standard underwriting class, and

(2) whose applications are fully underwritten (i.e., subject to
evidence of the insured's insurability).

Current insurance rates are generally higher if the policies are issued on
a guaranteed issue basis, where evidence of insurability is not required.
Policies issued to employers, trustees and similar entities are often issued on
a guaranteed issue basis. Only limited underwriting information is obtained when
underwriting on a guaranteed issue basis. Therefore, policies in this
underwriting class may present an additional mortality expense to us relative to
fully underwritten policies. The additional risk is generally reflected in
higher current insurance rates, which are nevertheless guaranteed not to exceed
the 1980 Commissioners' Standard Ordinary Mortality Tables.

We may offer insurance coverage up to $2.5 million on a guaranteed issue or
simplified issue basis under policies in a single case that meet our
requirements at the time of policy issue.

If there have been increases in the Specified Amount, then for purposes of
calculating the cost of insurance charge, the Account Value will first be
applied to the initial Specified Amount. If the Account 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 Base Death Benefit equals
the Surrender Value multiplied by the applicable death benefit percentage, any
increase in Account Value will cause an automatic increase in the Base 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 later decrease in Specified Amount.

Mortality and Expense Risk
Charge -- First 10 policy years -- .05% per month of
subaccount value which is equivalent to an annual
rate of .60% of subaccount value.

54
<PAGE> 64

After the 10th policy year -- Charge expected to be
reduced to an amount equal to .025% per month of
subaccount value equivalent to .30% annually. A
reduction to an annual rate of .45% of subaccount
value is guaranteed.

This charge compensates us 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. Therefore, the cost of insurance
charges specified in the policy will not be enough to meet our actual claims. We
assume an expense risk that other expenses incurred in issuing and administering
the policies and operating MONY Variable Account L will be greater than the
amount estimated when setting the charges for these expenses. We will realize a
profit from this fee to the extent it is not needed to provide benefits and pay
expenses under the policies. We may use this profit for other purposes. These
purposes may include any distribution expenses not covered by the sales charge
or surrender charge.

This charge is not assessed against the amount of the policy Account Value
that is allocated to the Guaranteed Interest Account, nor to amounts in the loan
account.

Administrative Charge -- $7.50 per month (all policies)

Medical Underwriting
Charge -- $5.00 per month (applicable policies) for the first
3 policy years.

Guaranteed Issue Charge -- $3.00 per month (applicable policies) for the first
3 policy years.

The administrative charge, medical underwriting charge and guaranteed issue
charge reimburses us for expenses associated with administration and maintenance
of the policies. The charge is guaranteed never to exceed $7.50. We do not
expect to profit from these charges.

Guaranteed Death Benefit
Charge -- If you elect the Guaranteed Death Benefit Rider,
you will be charged $0.01 per $1,000 of policy
Specified Amount per month during the term of the
Guaranteed Death Benefit Rider. This charge is
guaranteed never to exceed this amount.

Optional Insurance Benefits
Charge -- A monthly deduction for any other optional
insurance benefits added to the policy by rider.

Transaction and Other
Charges -- Partial Surrender Fee -- lesser of $25 or 2% of the
partial surrender amount

Transfer of Account Value -- Currently the Company
does not assess a transfer charge. The Company
reserves the right to charge up to a maximum of $25
for transfers

Premium allocation changes -- $25 for more than 2
in any policy year

Reinstatement fee -- $150

The charges for the partial surrender fee, transfer of account value,
premium allocation changes and reinstatement are guaranteed not to exceed the
amounts stated above.

We may charge the subaccounts for federal income taxes that are incurred by
us and are attributable to MONY Variable Account L and its subaccounts. No such
charge is currently assessed. See "Charge for Company Income Taxes," page 59.

We will bear the direct operating expenses of MONY Variable Account L. The
subaccounts purchase shares of the corresponding portfolio of the underlying
Fund. The Fund's expenses are not fixed or specified under the terms of the
policy.

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GUARANTEE OF CERTAIN CHARGES

We guarantee that certain charges will not increase. This includes:

(1) Mortality and expense risk charge.

(2) Administrative charge.

(3) Guaranteed Death Benefit charge.

(4) Sales charge.

(5) Guaranteed cost of insurance rates.

(6) Certain transaction charges.

Any changes in the current cost of insurance charges related to the Base
Death Benefit or the monthly charge for the Term Insurance Rider will be made
based on the class of the insured. Changes will be based on changes in:

(1) Future expectations with respect to investment earnings,

(2) Mortality,

(3) Length of time policies will remain in effect,

(4) Expenses, and

(5) Taxes.

In no event will they exceed the guaranteed rates defined in the policy.

CORPORATE PURCHASERS -- REDUCTION OF CHARGES

The policy is available for purchase by individuals and by corporations and
other institutions. We may reduce the amount of sales charge, mortality and
expense risk charge, the cost of insurance charges, underwriting charge or issue
charge if:

(1) Corporate or other group or sponsored arrangements, purchase one
or more policies constituting a case, and

(2) The expenses associated with the sale of the policy or policies or
the underwriting or other administrative costs associated with the policy
or policies are reduced.

Sales, underwriting or other administrative expenses may be reduced for
reasons such as expected economies resulting from a corporate purchase or a
group or sponsored arrangement. In addition, we may reduce the minimum Specified
Amount, Target Death Benefit, or Minimum Annual Premium for policies
representing the case. Any reduction will be:

(1) Reasonable

(2) Apply uniformly to all prospective policy purchasers in the class,
and

(3) Not be unfairly discriminatory to the interests of any policy
owner.

OTHER INFORMATION

FEDERAL INCOME TAX CONSIDERATIONS

The following provides a general description of the federal income tax
considerations relating to the policy. This discussion is based upon our
understanding of the present federal income tax laws as the Internal Revenue
Service ("IRS") currently interprets them. This discussion is not intended as
tax advice. Tax laws are very complex and tax results will vary according to
your individual circumstances. A person

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considering the purchase of the policy may need tax advice. It should be
understood that these comments on federal income tax consequences are not an
exhaustive discussion of all tax questions that might arise under the policy.
Special rules that are not discussed here may apply in certain situations. We
make no representation as to the likelihood of continuation of federal income
tax or estate or gift tax laws or of the current interpretations of the IRS or
the courts. Future legislation may adversely affect the tax treatment of life
insurance policies or other tax rules that we describe here or that relate
directly or indirectly to life insurance policies. Our comments do not take into
account any state or local income tax considerations that may be involved in the
purchase of the policy.

Definition of Life Insurance

Under section 7702 of the Internal Revenue Code (the "Code"), a policy will
be treated as a life insurance policy for federal tax purposes if one of two
alternate tests are met. These tests are:

(1) "Cash Value Accumulation Test"

(2) "Guideline Premium/Cash Value Corridor Test"

When you apply for a policy you will irrevocably choose which of these two tests
will be applied to your policy.

If your policy is tested under the Guideline Premium/Cash Value Corridor
Test. This test provides for, among other things:

(1) A maximum allowable premium per thousand dollars of death benefit,
known as the "guideline annual premium," and

(2) A minimum ongoing "corridor" of death benefit in relation to the
Account Value of the policy, known as the "death benefit percentage."

See Appendix A, for a table of the Guideline Premium/Cash Value Corridor Test
factors. If your policy is tested under the Cash Value Accumulation Test, a
table of factors will be shown in your policy.

We believe 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. You generally should not be considered to be
in constructive receipt of the cash values under the policy until a full
surrender, maturity of the policy, or a 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, on the last day of each
quarter of a calendar year,

(1) No more than 55% of the value of the portfolio's assets can be
represented by any one investment,

(2) No more than 70% can be represented by any two investments,

(3) No more than 80% can be represented by any three investments, and

(4) No more than 90% can be represented by any four investments.

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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. Any security issued,
guaranteed, or insured (to the extent guaranteed and 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, as applicable.

Currently, for federal income tax purposes, the portfolio shares underlying
the policies are owned by the Company and not by you or any beneficiary.
However, 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. 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, which if paid for each of the first seven years, will
fully pay for all future death and endowment benefits under a contract.

Example: "Seven-pay premium" = $1,000
Maximum premium to avoid "modified endowment" treatment =
First year -- $1,000
Through first two years -- $2,000
Through first three years -- $3,000 etc.

Under this test, a policy may or may not be a modified endowment contract. The
outcome depends on the amount of premiums paid during each of the policy's first
seven contract years. Changes in benefits may require testing to determine if
the policy is to be classified as a modified endowment contract. A modified
endowment contract is treated differently for tax purposes then a conventional
life insurance contract.

Conventional Life Insurance Policies

If a policy is not a modified endowment contract distributions are treated
as follows. Upon a full surrender or maturity of a policy for its Cash Value,
the excess if any, of the Cash Value minus 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. Under Section 7702 of the Code, special
rules apply to determine whether part or all 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.

We believe that loans received under policies that are not modified
endowment contracts will be treated as indebtedness of the owner. Thus, no part
of any loan under the policy will constitute 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. Deductibility will be subject to several
limitations, depending upon (1) the use to which the proceeds are put and (2)
the tax rules applicable to the policy owner. If, for example, an individual for
business or investment purposes uses the loan proceeds, all or part of the
interest expense may be deductible. Generally, if an individual uses the policy
loan for personal purposes, the interest expense is not deductible. The
deductibility of loan interest (whether incurred under a policy loan or other
indebtedness) also may be subject to other limitations.

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For example, the interest may be deductible to the extent that the interest
is attributable to the first $50,000 of the Outstanding Debt where:

- The interest is paid (or accrued by an accrual basis taxpayer) on a loan
under a policy, and

- The policy covers the life of an officer, employee, or person financially
interested in the trade or business of the policy owners.

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 result in
taxable income. Upon full surrender or maturity of the policy, the policy owner
would recognize ordinary income for federal income tax purposes. Ordinary income
will equal the amount by which the Cash Value plus Outstanding Debt exceeds the
investment in the policy. (The investment in the policy is 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 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 Account
Value of the policy exceeds investment in the policy immediately before
distribution. The tax law provides for aggregation of two or more policies
classified as modified endowment contracts if:

(1) The policies are purchased from any one insurance company
(including the Company), and

(2) The purchases take place during a calendar year.

The policies are aggregated for the purpose of determining the part of the
pre-death distributions allocable to income on the policies and the part
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. This additional tax is 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:

(1) When the taxpayer is at least 59 1/2 years old;

(2) Which is attributable to the taxpayer becoming disabled; or

(3) 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.

A contract may not be a modified endowment contract originally but may
become one later. Treasury Department regulations, yet to be prescribed, cover
pre-death distributions received in anticipation of the policy's failure to meet
the seven-pay premium test. These distributions are to be treated as pre-death
distributions from a modified endowment contract (and, therefore, are to be
taxed as described above). This treatment is applied even though the policy was
not yet a modified endowment contract. The Code defines a distribution in
anticipation of failing the test as one made within two years of the policy
being classified as a modified endowment contract.

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, its deductibility will be subject to the same limitations as
conventional life insurance contracts (see "Conventional Life Insurance
Policies," page 56.)

Reasonableness Requirement for Charges

The tax law also deals with allowable mortality costs and other expenses
used in the calculations to determine whether a contract qualifies as life
insurance for income tax purposes. For policies entered into
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on or after October 21, 1988, the calculations must be based upon, (1)
reasonable mortality charges, and (2) other charges reasonably expected to be
paid. The Treasury Department is expected to declare regulations governing
reasonableness standards for mortality charges. We believe our mortality costs
and other expenses used in these calculations meet the current requirements. It
is possible that future regulations will contain standards that would require us
to modify our mortality charges for these calculations. We reserve the right to
make modifications to retain the policy's qualification as life insurance for
federal income tax purposes.

Pension and Profit Sharing Plans

Policies purchased by a fund, which is part of a pension or profit sharing
plan (under Sections 401(a) or 403 of the Code), will be treated differently
from that described above. For participants in these plans, the current cost of
insurance for the net amount at risk is treated as a "current fringe benefit."
The current cost of insurance must be included annually in the plan
participant's gross income. This cost (referred to as the "P.S. 58" cost) is
reported to the participant annually. The excess of the death benefit over the
policy Account Value will not be subject to federal income tax if:

(1) The plan participant dies while covered by the plan, and

(2) The policy proceeds are paid to the participant's beneficiary.

However, the policy Account Value will generally be taxable to the extent it
exceeds the sum of (1) $5,000 plus (2) 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 has borrowed from his or her 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, to provide for 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. The lack of insurable
interest may, among other things, affect the qualification of the policy as life
insurance for federal income tax purposes. It may also affect 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 owner's 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

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
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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:

(1) The tax treatment of the Company is ultimately determined to be
other than what the Company currently believes it to be,

(2) There are changes made in the federal income tax treatment of
variable life insurance at the insurance company level, or

(3) 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 any such taxes attributable to the Account.

VOTING OF FUND SHARES

Based on 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. We will exercise such rights at any regular and special
meetings of the shareholders of the Funds on matters requiring shareholder
voting under the Investment Company Act of 1940. Our will exercise of these
voting rights will be based on instructions received from persons having the
voting interest in corresponding subaccounts of MONY Variable Account L. We may
elect to vote the shares of the Funds in our own right if:

(1) The Investment Company Act of 1940 or any regulations thereunder
is amended, or

(2) The present interpretation of the Act should change, and

(3) As a result we determine that it is permitted to vote the shares
of the Funds in our own right.

The person having the voting interest under a policy is the policy owner.
Unless otherwise required by applicable law, a policy owner will have the right
to instruct for the number of votes of any portfolio determined by dividing his
or her Account Value in the subaccount that corresponds to the portfolio by
$100. Fractional votes will be counted. The number policy owner votes will be
determined as of the date set by the Company. However, such date will not be
more than 90 days prior to the date established by the corresponding Fund for
determining shareholders eligible to vote at that Fund's meeting. If required by
the Securities and Exchange Commission, the Company reserves the right to
determine the voting rights in a different fashion. Voting instructions may be
cast in person or by proxy.

If the Company does not receive voting instructions from the policy owner
on time, the Company will vote his or her votes. The Company will vote in the
same proportion as voting instructions received on time 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. These votes will be exercised in the same proportion as the
voting instructions that are received on time for all policies participating in
that subaccount. Generally, the Company will vote any voting rights attributable
to shares of portfolios of the Funds held in its General Account. These votes
will be exercised in the same proportion as the aggregate votes cast with
respect to shares of portfolios of the Funds held by MONY Variable Account L and
other separate accounts of the Company.

DISREGARD OF VOTING INSTRUCTIONS

The Company may disregard voting instructions when required by state
insurance regulatory authorities, if, (1) the instructions require that voting
rights be exercised so as to cause a change in the subclassification or
investment objective of a Portfolio, or (2) 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. The

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Company's disapproval of such change must be reasonable and must be 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
considering the effect the change would have on the Company. If 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:

(1) A summary of the transactions which occurred since the last
statement, and

(2) Indicating the death benefit, Specified Amount, Account Value,
Cash Value, and any Outstanding Debt.

In addition, the statement will indicate the allocation of Account 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 MONY Variable Account L and the Funds. The
Funds' statement 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 or may be purchased by MONY Variable Account L or
any of its other separate accounts. 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 if:

(1) Shares of any or all of the portfolios of the Funds should no
longer be available for investment or,

(2) 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.

Where required, the Company will not substitute any shares attributable to
a policy owner's interest in MONY Variable Account L without notice, policy
owner approval, or prior approval of the Securities and Exchange Commission. The
Company will also follow the filing or other procedures established by
applicable state insurance regulators. Applicable state insurance regulators
include the Commissioner of Insurance of the State of Arizona.

The Company also reserves the right to establish additional subaccounts of
MONY Variable Account L. Each additional subaccount would invest in (1) a new
portfolio of the Funds, or (2) in shares of another investment company, a
portfolio thereof, or (3) 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.

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If a substitution or change is made, the Company may make changes in this
and other policies as may be necessary or appropriate to reflect such
substitution or change. If the Company considers it to be in the best interests
of persons having voting rights under the policies, MONY Variable Account L may:

(1) Be operated as a management investment company under the
Investment Company Act of 1940 or any other form permitted by law,

(2) Be deregistered under that Act if such registration is no longer
required, or

(3) 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 MONY Variable Account L.

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 regulation. Federal and State
laws include but not limited to requirements for life insurance contracts under
the Internal Revenue Code, and regulations of the United States Treasury
Department or any state.

PERFORMANCE INFORMATION

Performance information for the subaccounts of MONY Variable Account L 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. This
may include presentation of a change in a policy owner's Account Value
attributable to the performance of one or more subaccounts, or as a change in a
policy owner's death benefit. Performance quotations may be expressed as a
change in a policy owner's Account Value over time or in terms of the average
annual compounded rate of return on the policy owner's Account Value. Such
performance is 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 surrender charge, if applicable, by assuming surrender at the end of the
particular period. However, other quotations may simultaneously be given that do
not assume surrender and do not take into account deduction of the surrender
charge.

Performance information for MONY Variable Account L may be compared, in
advertisements, sales literature, and reports to policy owners to:

(1) 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

(2) 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 MONY Variable Account L
reflects only the performance of a hypothetical policy whose Account Value is
allocated to MONY Variable Account L during a particular time period on which
the calculations are based. Performance information should be
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considered in light of the investment objectives and policies, characteristics
and quality of the portfolios of the Funds in which MONY Variable Account L
invests. 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.

We may also use non-standard performance in cases where we add new
subaccounts which purchase shares of underlying funds in existence prior to the
formation of such subaccounts. In such cases we will use the historical
performance of the underlying fund with the current expenses of the applicable
subaccount under the policy.

THE GUARANTEED INTEREST ACCOUNT

You may allocate all or a portion of your net premiums and transfer Account
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. The amounts allocated
to the General Account of the Company are subject to the liabilities arising
from the business the Company conducts. 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 MONY Variable Account L and other separate accounts of the
Company. Subject to applicable law, the Company has sole discretion over the
investment of the assets of its General Account.

You may elect to allocate net premiums to the Guaranteed Interest Account,
MONY Variable Account L, or both. You may also transfer Account Value from the
subaccounts of MONY Variable Account L to the Guaranteed Interest Account or
from the Guaranteed Interest Account to the subaccounts. The Company guarantees
that the Account Value in the Guaranteed Interest Account will be credited with
a minimum interest rate of 0.010746% daily, compounded daily, for a minimum
effective annual rate of 4.0%. 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
4.0% annual rate, which will be guaranteed for approximately one year. The
Company's investment strategy is to acquire securities which will allow annual
interest credits to the Guaranteed Interest Account to vary in accordance with
the London Interbank Offered Rate (LIBOR). Annual credits can be less than,
equal to or greater than LIBOR. The Company reserves the right to change its
interest strategy. (The portion of a policy owner's Account Value that has been
used to secure Outstanding Debt will be credited with a guaranteed interest rate
of 0.010746% daily, compounded daily, for a minimum effective annual rate of
4.0%.)

The Company bears the full investment risk for the Account Value allocated
to the Guaranteed Interest Account.

POLICY CHARGES

Deductions from premium, monthly deductions from the Account Value, other
than the mortality and expense risk fee, will be the same for policy owners who
allocate net premiums or transfer Account Value

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to the Guaranteed Interest Account or allocate net premiums to the subaccounts.
These charges include the sales and tax charges; the charges for the cost of
insurance, administrative charge, issue charge, and the charge for the Term
Insurance Rider. Fees for partial surrenders and, if applicable, transfer
charges, will also be deducted from the Guaranteed Interest Account.

You will not directly or indirectly pay charges applicable to the
portfolios, including the operating expenses of the portfolios, and the
investment advisory fee charged by the portfolio managers if your Account Value
is allocated to the Guaranteed Interest Account. Likewise, the mortality and
expense risk charge applicable to the Account Value allocated to the subaccounts
is not deducted from Account 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 you will not participate in the investment experience
of the subaccounts to the extent that Account Values are allocated to the
Guaranteed Interest Account.

TRANSFERS

Amounts may be transferred after the Right to Return Policy 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 referenced above (this limit
is waived if the policy owner elects the Right to Exchange the Policy).

- Transfers from the Guaranteed Interest Account to the subaccounts are
limited to one in any policy year.

- Transfers from the Guaranteed Interest Account are limited to the greater
of $5,000 and 25% of the Account 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 the transfer request is received
within 30 days after the policy anniversary, the transfer will be effective as
of the close of business on the day received if it is a Valuation Date. If it is
not a Valuation Date, then at the close of business on the next day which is a
Valuation Date. Any request received within 10 days before the policy
anniversary will be considered 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 on transfers of Account Value between
subaccounts or between the Guaranteed Interest Account and the subaccounts. The
Company reserves the right to charge up to a maximum of $25 for transfers. In
addition, we reserve the right 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

You may also make full surrenders and partial surrenders from the
Guaranteed Interest Account to the same extent as if you had invested in the
subaccounts. See "Full Surrender," page 46 and "Partial Surrender", page 47.
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. However, with respect to policies issued for
delivery to residents of the Commonwealth of Pennsylvania, the Company will not
delay payment of surrenders or loans, the proceeds of which will be used to pay
premiums on the policy.

65
<PAGE> 75

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.

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. The Company must receive the request at its
administrative 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, the beneficiary must be living at the time of the insured's
death to receive the proceeds.

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 you 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.

If an insured dies while the policy is in effect, 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.

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<PAGE> 76

PAYMENTS

Within seven days after the Company receives all the information needed for
processing a payment, the Company will:

(1) Pay death benefit proceeds,

(2) Pay the Cash Value on surrender, partial surrenders and loan
proceeds based on allocations made to the subaccounts, and

(3) Effect a transfer between subaccounts or from the Variable Account
to the Guaranteed Interest Account.

However, payment of any partial surrender or loan payment involving a
determination of account value in the GIA (except when used to pay premiums) may
be postponed for up to 6 months from the date we receive the request for
surrender or loan. The Company can also 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.

Interest will be paid on death proceeds from the date of the insured's
death to the date of payment. We will determine the interest rate for each year,
and this rate will not be less than the annual rate paid under Settlement Option
1.

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. 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 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, (1) while sane or insane, (2) 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
amounts (and their fees) and any Outstanding Debt. If an insured dies by
suicide, (1) while sane or insane, (2) 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

You may assign your policy as collateral security for a loan or other
obligation. No assignment will bind the Company unless the original, or a copy,
is received at the Company's administrative office. The assignment 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

67
<PAGE> 77

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 55.)

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:

(1) What would be purchased by the most recent cost of insurance
charge at the correct age and gender, or

(2) The death benefit derived by multiplying the Account 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 gender. See "Deductions from Account Value-Cost of Insurance,"
page 52.

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:

(1) 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

(2) 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 you an illustration of future benefits
under the policy based on both guaranteed and current cost assumptions.

DISTRIBUTION OF THE POLICY

MONY Securities Corporation ("MSC"), a wholly owned subsidiary of MONY Life
Insurance Company, is principal underwriter (distributor) of the policies. MSC
is a New York corporation organized on September 26, 1969. 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 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:

- 15% of Target Premiums paid in policy years 1 and 2,

- 12% of Target Premiums paid in policy years 3 through 5, and

- 10% of Target Premiums paid in policy years 6 through 10.

In addition, for as long as the policy is in effect, we may pay a commission up
to .20% of the Account Value allocated to the subaccounts. Upon any subsequent
unscheduled increase in Specified Amount, the same commission rates will apply
to the premium amounts allocated to the new coverage segment. Further,
registered representatives may be eligible to receive certain bonuses and other
benefits based on the amount of earned commissions.
68
<PAGE> 78

Commissions may be required to be repaid to us if sales charges are
refunded upon a full surrender or partial surrender of the policy or upon
exercise of the exchange privileges during the first 24 months after the policy
date.

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.

POLICY OWNER SERVICES

The Company currently offers policy owners two services: Dollar Cost
Averaging and Automatic Rebalancing. These services may be terminated at any
time; owners of Policies in force at the time of termination utilizing these
services will receive 30 days prior notice. There currently are no charges for
these services and any transfers as a result of the operation of these services
are not counted toward the limit of 12 transfers per Policy Year without a
transfer charge. If the Company elects to impose a charge for these services,
owners of policies in force at that time utilizing these services will receive
30 days prior notice. These services involve the sale of units in one or more
subaccounts and the purchase of units in one or more other Subaccounts. This may
result in a loss of Account Value.

Dollar Cost Averaging

Dollar Cost Averaging is available to owners of policies with Account Value
allocated to the Money Market Subaccount. The main objective of Dollar Cost
Averaging is to protect the Account Value from short-term price fluctuations.
Under Dollar Cost Averaging the same dollar amount is transferred to other
Subaccounts each period. Therefore, more units are purchased in a Subaccount if
the value per unit that period is low, and fewer units are purchased if the
value per unit that period is high. This plan of investing keeps the Policy
Owner from investing too much when the price of shares is high and too little
when the price of shares is low. There is no guarantee that this service will
generate a profit or avoid a loss.

Dollar Cost Averaging may be elected by completing and returning the form
provided by us to Customer Service Center. Once the election is made, a
designated dollar amount of Account Value will be transferred automatically from
the Money Market Subaccount to one or more other Subaccounts of the Variable
Account each period. Dollar Cost Averaging allocations may be made either
monthly or quarterly. (Dollar Cost Averaging transfers may not be made to the
Guaranteed Interest Account.) Dollar Cost Averaging may be terminated at a
designated date or when the Money Market Subaccount reaches a pre-defined
minimum balance.

Each transfer under Dollar Cost Averaging must be at least $250. Each
automatic monthly transfer will take place on the 10th day of each calendar
month; automatic quarterly transfers take place on the 10th day of the last
month of each calendar quarter. If Dollar Cost Averaging is elected at the time
of application, transfers will begin in the appropriate calendar month following
completion of the Right to Return Policy Period. If elected after issuance of
the Policy, transfers will begin in the appropriate calendar month which is at
least 30 days following our receipt of the request for Dollar Cost Averaging.
If, at the time of any transfer, the amount in the Money Market Subaccount is
equal to or less than the amount elected to be transferred, the entire remaining
balance will be transferred and Dollar Cost Averaging will end. The amount to be
transferred or the Subaccounts to which transfers are to be made may be changed
once each Policy year. Dollar Cost Averaging may be canceled at any time by
sending notice to our Customer Service Center which is received at the Center at
least 10 days before the next transfer date.

If both Dollar Cost Averaging and Automatic Rebalancing are elected, Dollar
Cost Averaging will take place first. Automatic Rebalancing will begin only
after a monthly or quarterly Dollar Cost Averaging transfer has been completed.

69
<PAGE> 79

Automatic Rebalancing

Automatic Rebalancing provides a method for maintaining a balanced approach
to allocating Account Values among Subaccounts and simplifies the process of
asset allocation over time.

Automatic Rebalancing may be elected when application for a Policy is made
or at any subsequent time by completing and returning to the Company at the
Customer Service Center the form provided by the Company. Automatic Rebalancing
matches Subaccount Account Value allocations over time to the most recently
filed allocation percentages for new premiums allocated to the Subaccounts. As
of the 10th day of the last month of each calendar quarter, the Company will
automatically re-allocate the amounts in each of the Subaccounts into which
premiums are allocated to match the premium allocation percentages. This will
rebalance Subaccount Account Values that may be out of line with the allocation
percentages indicated, which may result, for example, from Subaccounts which
underperform other Subaccounts in certain quarters. Allocations to the
Guaranteed Interest Account will not be rebalanced.

If Automatic Rebalancing is elected with the application, the first
transfer will occur on the 10th day of the last month of the calendar quarter
which begins after the end of the Right to Return Policy Period. If elected
after Policy issue, transfers will begin as of the 10th day of the last month of
the calendar quarter which follows the Company's receipt of notification at the
Customer Service Center.

The Automatic Rebalancing feature percentages may be adjusted by changing
the Policy's premium allocation percentages. If the Automatic Rebalancing
feature is active on a Policy and a premium allocation which does not meet the
Company's requirement is received, the Company will notify the Policy Owner that
the allocation must be changed; any such request will not be processed unless a
request for discontinuance of Automatic Rebalancing is received.

Automatic Rebalancing may be terminated at any time, so long as notice of
the termination is received at the Customer Service Center at least 10 days
prior to the next scheduled transfer.

If both Dollar Cost Averaging and Automatic Rebalancing are elected, Dollar
Cost Averaging will take place first. Automatic Rebalancing will begin only
after Dollar Cost Averaging has ended.

MORE ABOUT THE COMPANY

MANAGEMENT

The directors and officers of the Company are listed below. The business
address for all directors and officers of MONY Life Insurance Company is 1740
Broadway, New York, New York 10019.

Current Officers and Directors of the Company are:

<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
---- -----------------------------------
<S> <C>
Tom H. Barrett............................ Director since 1990. Partner in American Industrial
Partners, a private investment partnership since 1992.
Serves on the board of directors of Air Products and
Chemicals, Inc., A.O. Smith Corporation and Newell
Rubbermaid, Incorporated.
David L. Call............................. Director since 1993. Dean Emeritus, Cornell University,
College of Agriculture and Life Sciences since 1995.
Serves as small business consultant and is a director of
Seneca Foods Corporation.
G. Robert Durham.......................... Director since 1988. Retired from Walter Industries,
Inc., a home building and financing, natural resources
and industrial manufacturing company in 1996 after
serving as Chairman of the Board and Chief Executive
Officer since 1991. Serves on the board of directors of
The FINOVA Group, Inc., Amphenol Corporation and Earle
M. Jorgensen Co.
</TABLE>

70
<PAGE> 80

<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
---- -----------------------------------
<S> <C>
James B. Farley........................... Director since 1988. Retired from MONY Life Insurance
Company in 1994 after serving as Chairman of the Board
from 1993 and Chairman of the Board and Chief Executive
Officer since 1991. Serves on the board of directors of
Ashland, Inc. and Harrah's Entertainment, Inc. and is a
Trustee of the Forster Trust.
Robert Holland, Jr. ...................... Director since 1990. Owner and Chief Executive Officer
of WorkPlace Integrators, an office furniture dealership
in Southeast Michigan, since 1996. Chief Executive
Officer of Ben & Jerry's Homemade, Inc., an ice cream
company from February 1995 to October 1996. Serves on
the board of directors of AC Nielsen Corporation, Henry
Ford Health System, Tricon Global Restaurants, Inc.,
Trumark Inc. and Lexmark International, and is on the
Advisory Board of Boardroom Consultants.
James L. Johnson.......................... Director since 1986. Chairman Emeritus of GTE
Corporation, a telecommunications company, having served
as Chairman and Chief Executive Officer from 1988 to
1992. Serves on the board of directors of CellStar
Corporation, The FINOVA Group, Inc., Harte-Hanks
Communications, Inc., Valero Energy Corp. and Walter
Industries, Inc.
Frederick W. Kanner....................... Director since March 2000. Partner of Dewey Ballantine
LLP since 1976, and an Associate of said firm prior to
that time. Serves on the Board of Trustees of the
Lawyers' Alliance for New York and the Lawyers'
Committee for Civil Rights under Law.
Robert R. Kiley........................... Director since 1995. President and Chief Executive
Officer of the New York City Partnership and Chamber of
Commerce, Inc. since 1995. Principal of Kohlberg & Co.
since 1994. Serves on the board of directors of the New
York City Partnership and Chamber of Commerce, Inc.
John R. Meyer............................. Director since 1972. Professor Emeritus, Harvard
University since 1997. Professor at Harvard University
from 1973 to 1997. Serves on the board of directors of
AC Nielsen Corporation.
Jane C. Pfeiffer.......................... Director since 1988. Ms. Pfeiffer is an independent
management consultant. Serves on the board of directors
of Ashland, Inc., International Paper Company and J.C.
Penney Company, Inc. and is trustee of the University of
Notre Dame and a member of The Council on Foreign
Relations.
Thomas C. Theobald........................ Director since 1990. Managing director, William Blair
Capital Partners, L.L.C., an investment firm since 1994.
Serves on the board of directors of Anixter
International, Inc., Xerox Corp., Jones Lang LaSalle,
Inc., LaSalle US Realty Income and Growth Fund, Stein
Roe Funds, AuditForce, Inc. and MacArthur Foundation.
</TABLE>

All of the officers have held their respective positions listed below for five
or more years, except as noted.

<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
---- -----------------------------------
<S> <C>
Current Officer-Directors of the Company are:
Michael I. Roth....................................... Director, Chairman and Chief Executive
Officer
Samuel J. Foti........................................ Director, President and Chief Operating
Officer
Kenneth M. Levine..................................... Director, Executive Vice President and
Chief Investment Officer
</TABLE>

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<PAGE> 81

<TABLE>
<CAPTION>
NAME OFFICE WITH DEPOSITOR
---- ---------------------
<S> <C>
Other Officers of the Company are:
Lee M. Smith.......................................... Corporate Secretary and Vice President,
Government Relations
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
Bart Schwartz......................................... Senior Vice President and General
Counsel (since June 2000)
David V. Weigel....................................... Treasurer
</TABLE>

No officer or director listed above receives any compensation from MONY
Variable Account L. The Company or any of its affiliates has paid no separately
allocable compensation to any person listed for services rendered to the
Account.

Mr. Roth is Chairman of the Board and Chief Executive Officer (since August
1998) and Director (since September 1997) of The MONY Group Inc. Chairman of the
Board and Chief Executive Officer (since July 1991) and Director (since June
1991) of MONY Life Insurance Company of America. Director of MONY subsidiaries:
1740 Advisers, Inc. (since December 1992), MONY Benefits Management Corp. (since
March 1999). Serves on the board of directors of the American Council of Life
Insurance, The Life Insurance Council of New York, Enterprise Foundation (a
charitable foundation which develops housing not affiliated with the Enterprise
Group of Funds), Metropolitan Development Association of Syracuse and Central
New York, Enterprise Group of Funds, Inc., Enterprise Accumulation Trust, Pitney
Bowes, Inc., Lincoln Center for the Performing Arts Leadership Committee, Life
Office Management Association, New York City Partnership and Chamber of
Commerce, and Committee for Economic Development. Also serves as Chairman of the
Board of Insurance Marketplace Standards Association.

Mr. Foti is President and Chief Operating Officer (since August 1998) and
Director (since September 1997) of The MONY Group Inc. President and Chief
Operating Officer of MONY Life Insurance Company of America (since February
1994) and Director (since September 1989). Director of MONY subsidiaries: MONY
Brokerage, Inc. (since January 1990), MONY International Holdings, Inc. (since
October 1994), MONY Life Insurance Company of the Americas, Ltd. (since December
1994). Serves on the board of directors of Enterprise Group of Funds, Inc.,
Enterprise Accumulation Trust and The American College of which he is Chairman.

Mr. Levine is Executive Vice President and Chief Investment Officer (since
August 1998) and Director (since September 1997) of The MONY Group Inc. Chairman
of the Board (since December 1991) and President (since June 1992) of MONY
Series Fund, Inc. Director of MONY subsidiaries: MONY Life Insurance Company of
America (since July 1991), 1740 Advisers, Inc. (since December 1989), MONY
Benefits Management Corp. (since October 1991), MONY Realty Partners, Inc.
(since October 1991) and 1740 Ventures, Inc. (since October 1991).

Mr. Daddario is Executive Vice President and Chief Financial Officer (since
August 1998) of The MONY Group Inc. Vice President and Controller of MONY Life
Insurance Company of America (since September 1989). Director of MONY
subsidiaries: MONY International Holdings, Inc. (since 1998), MONY Brokerage,
Inc. (since June 1997) and MONY Life Insurance Company of the Americas, Ltd.
(since December 1997).

Mr. Eisenberg is Vice President and Actuary (since November 1992) and
Director of MONY Life Insurance Company of America (since June 1997). Director
of MONY subsidiary: MONY Benefits Management Corp. (since March 1999).

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<PAGE> 82

Mr. Smith is Vice President and Secretary (since September 1999) of The
MONY Group Inc. Vice President -- Government Relations and Industry Affairs.

Mr. Connors is Director of MONY Life Insurance Company of America (since
June 1994). Director of MONY subsidiary: MONY Brokerage, Inc. (since May 1994).

Mr. Hall is Director of MONY Life Insurance Company of America (since June
1991). Director of MONY subsidiary: MONY Brokerage, Inc. (since October 1991).

Mr. Schwartz is Senior Vice President and General Counsel of the Company
(since June 2000). Previously, he was Senior Vice President, General Counsel and
Secretary of Willis Corroon Corporation (Insurance Brokers) from June 1994 until
June 2000.

Mr. Weigel is Vice President-Treasurer of The MONY Group Inc. (since August
1998). Treasurer of MONY Life Insurance Company of America (since July 1991).

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.

RECORDS AND ACCOUNTS

Andesa, TPA, Inc., Suite 502, 1605 N. Cedar Crest Boulevard, Allentown,
Pennsylvania, 18104, will act as transfer agent on behalf of the Company as it
relates to the policies described in this Prospectus. In the role of transfer
agent, Andesa will perform administrative functions, such as decreases,
increases, surrenders, and partial surrenders, fund allocation changes and
transfers on behalf of the Company.

All records and accounts relating to the Separate Account and the Funds
will be maintained by the Company. All financial transactions will be handled by
the Company. All reports required to be made and information required to be
given will be provided by Andesa on behalf of the Company.

LEGAL PROCEEDINGS

There are no legal proceedings pending to which MONY Variable Account L is
a party, or which would materially affect MONY Variable Account L.

LEGAL MATTERS

Legal matters have been passed on by the Vice President and Chief
Counsel -- Operations of MONY Life Insurance Company in connection with:

(1) The issue and sale of the policies described in this prospectus,

(2) The organization of the Company,

(3) The Company's authority to issue the policies under New York law, and

(4) The validity of the forms of the policies under New York law.

Frederick C. Tedeschi, Vice President and Chief Counsel -- Operations of
MONY Life Insurance Company has passed upon legal matters relating to the
federal securities laws and Robert Levy, Vice President -- Chief Tax Counsel of
MONY Life Insurance Company has passed upon legal matters relating to federal
income tax laws.

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<PAGE> 83

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 located at 450 5th Street, NW, Washington, D.C., 20549, (202) 942-4300
upon payment of the SEC's prescribed fees.

INDEPENDENT ACCOUNTANTS

The audited financial statements for the Company included in this
Prospectus and in the Registration Statement have been audited by
PricewaterhouseCoopers LLP, independent accountants, as indicated in their
reports herein. The audited financial statements for the Company are included in
reliance upon the report of PricewaterhouseCoopers LLP, given on the authority
of said firm as experts in accounting and auditing. PricewaterhouseCoopers LLP's
office is located at 1177 Avenue of the Americas, New York, New York, 10036.

FINANCIAL STATEMENTS

The audited financial statements of the Company are set forth herein.

The financial statements of the Company should be considered only as
bearing upon the ability of the Company to meet its obligations under the
Policies.

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<PAGE> 84

FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS

INDEX TO FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
With respect to MONY Variable Account L:
No financial statements for MONY Variable Account L are
included because although the MONY Variable Account L
commenced operations in 1990, the subaccounts available to
policyholders had not commenced operations as of June 30,
2000.
With respect to MONY Life Insurance Company:
Unaudited interim condensed consolidated balance sheets as
of June 30, 2000 and December 31, 1999................. F-2
Unaudited interim condensed consolidated statements of
income and comprehensive income for the three-month
periods ended June 30, 2000 and 1999................... F-3
Unaudited interim condensed consolidated statements of
income and comprehensive income for the six-month
periods ended June 30, 2000 and 1999................... F-4
Unaudited interim condensed consolidated statement of
changes in shareholder's equity for the six-month
period ended June 30, 2000............................. F-5
Unaudited interim condensed consolidated statements of
cash flows for the six-month periods ended June 30,
2000 and 1999.......................................... F-6
Notes to unaudited interim condensed financial
statements............................................. F-7
Report of Independent Accountants......................... F-22
Consolidated balance sheets as of December 31, 1999 and
1998................................................... F-23
Consolidated statements of income and comprehensive income
for the years ended December 31, 1999, 1998 and 1997... F-24
Consolidated statements of changes in shareholder's equity
for the years ended December 31, 1999, 1998 and 1997... F-25
Consolidated statements of cash flows for the years ended
December 31, 1999, 1998 and 1997....................... F-26
Notes to financial statements............................. F-28
</TABLE>

F-1
<PAGE> 85

THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2000 AND DECEMBER 31, 1999

<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
2000 1999
--------- ------------
($ IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturity securities available for sale, at fair
value.................................................. $ 2,951.9 $ 3,066.7
Equity securities available for sale, at fair value....... 532.5 519.8
Mortgage loans on real estate............................. 1,334.0 1,270.4
Policy loans.............................................. 75.6 69.1
Real estate to be disposed of............................. 306.5 300.9
Real estate held for investment........................... 46.5 46.2
Other invested assets..................................... 66.7 37.9
--------- ---------
$ 5,313.7 $ 5,311.0
========= =========
Cash and cash equivalents................................... 85.6 232.6
Accrued investment income................................... 79.5 74.6
Amounts due from reinsurers................................. 492.6 488.0
Deferred policy acquisition costs........................... 614.3 558.3
Other assets................................................ 522.9 365.4
Assets transferred in Group Pension Transaction (Note 4).... 4,972.2 5,109.8
Separate account assets..................................... 6,176.6 6,398.3
Closed Block assets (Note 6)................................ 6,157.3 6,182.1
--------- ---------
Total assets........................................... $24,414.7 $24,720.1
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Future policy benefits...................................... $ 974.7 $ 954.3
Policyholders' account balances............................. 1,914.9 1,942.9
Other policyholders' liabilities............................ 110.4 120.4
Amounts due to reinsurers................................... 86.0 83.8
Accounts payable and other liabilities...................... 550.6 581.1
Short-term debt............................................. 52.8 53.4
Long-term debt.............................................. 229.9 245.4
Current federal income taxes payable........................ 162.7 147.4
Liabilities transferred in Group Pension Transaction (Note
4)........................................................ 4,984.4 5,099.1
Separate account liabilities................................ 6,174.2 6,396.2
Closed Block liabilities (Note 6)........................... 7,267.3 7,303.3
--------- ---------
Total liabilities...................................... $22,507.9 $22,927.3
========= =========
Commitments and contingencies (Note 5)
Common stock, $1.0 par value; 2.5 million shares authorized
and outstanding........................................... $ 2.5 $ 2.5
Capital in excess of par.................................... 1,628.6 1,563.6
Retained earnings........................................... 330.9 256.1
Accumulated other comprehensive (loss)...................... (55.2) (29.4)
--------- ---------
Total shareholders' equity............................. 1,906.8 1,792.8
--------- ---------
Total liabilities and shareholders' equity............. $24,414.7 $24,720.1
========= =========
</TABLE>

See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-2
<PAGE> 86

THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
FOR THE THREE-MONTH PERIODS ENDED JUNE 30, 2000 AND 1999

<TABLE>
<CAPTION>
2000 1999
--------- ---------
($ IN MILLIONS, EXCEPT
SHARE DATA AND PER
SHARE AMOUNTS)
<S> <C> <C>
REVENUES:
Premiums.................................................... $ 28.6 $ 20.9
Universal life and investment-type product policy fees...... 55.9 52.5
Net investment income....................................... 129.2 102.6
Net realized (losses)/gains on investments.................. (4.5) 41.7
Group Pension Profits (Note 4).............................. 8.1 12.0
Other income................................................ 61.8 49.7
Contribution from the Closed Block (Note 6)................. 10.8 11.4
------ ------
289.9 290.8
------ ------
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 41.8 33.5
Interest credited to policyholders' account balances........ 23.7 26.4
Amortization of deferred policy acquisition costs........... 22.9 15.4
Dividends to policyholders.................................. 0.6 0.7
Other operating costs and expenses.......................... 128.8 122.7
------ ------
217.8 198.7
------ ------
Income before income taxes.................................. 72.1 92.1
Income tax expense.......................................... 23.4 30.8
------ ------
Net income.................................................. 48.7 61.3
------ ------
Other comprehensive loss, net............................... (10.9) (57.1)
------ ------
Comprehensive income........................................ $ 37.8 $ 4.2
====== ======
</TABLE>

See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-3
<PAGE> 87

THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2000 AND 1999

<TABLE>
<CAPTION>
2000 1999
--------- ----------
($ IN MILLIONS, EXCEPT
SHARE DATA AND PER
SHARE AMOUNTS)
<S> <C> <C>
REVENUES:
Premiums.................................................... $ 57.9 $ 44.2
Universal life and investment-type product policy fees...... 105.8 97.9
Net investment income....................................... 383.3 196.8
Net realized gains on investments........................... 16.6 70.6
Group Pension Profits (Note 4).............................. 18.2 26.3
Other income................................................ 120.6 91.7
Contribution from the Closed Block (Note 6)................. 21.4 21.9
------ -------
723.8 549.4
------ -------
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 80.9 73.4
Interest credited to policyholders' account balances........ 49.9 54.3
Amortization of deferred policy acquisition costs........... 42.8 32.2
Dividends to policyholders.................................. 1.2 0.7
Other operating costs and expenses.......................... 264.8 226.5
------ -------
439.6 387.1
------ -------
Income before income taxes and extraordinary item........... 284.2 162.3
Income tax expense.......................................... 97.7 55.4
------ -------
Income before extraordinary item............................ 186.5 106.9
------ -------
Extraordinary loss, net of tax.............................. 36.7 --
------ -------
Net income.................................................. 149.8 106.9
------ -------
Other comprehensive loss, net............................... (25.8) (112.2)
------ -------
Comprehensive income/(loss)................................. $124.0 $ (5.3)
====== =======
</TABLE>

See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-4
<PAGE> 88

THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN SHAREHOLDERS' EQUITY
SIX-MONTH PERIOD ENDED JUNE 30, 2000

---------------
(1) Represents unrealized losses on investments, net of unrealized gains,
reclassification adjustments, and taxes.

See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-5
<PAGE> 89

THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX-MONTH PERIODS ENDED JUNE 30, 2000 AND 1999

<TABLE>
<CAPTION>
2000 1999
--------- -------
($ IN MILLIONS)
<S> <C> <C>
NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES......... $ (62.4) $ 74.5
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales, maturities or repayment of:
Fixed maturities securities............................... 321.7 344.7
Equity securities......................................... 243.8 126.9
Mortgage loans on real estate............................. 68.5 74.9
Real estate............................................... 5.0 169.4
Other invested assets..................................... 1.6 4.1
Acquisitions of investments:
Fixed maturities securities............................... (224.0) (381.6)
Equity securities......................................... (70.9) (68.4)
Mortgage loans on real estate............................. (128.9) (231.5)
Real estate............................................... (25.5) (15.2)
Other invested assets..................................... (17.4) (2.4)
Policy loans, net......................................... (6.6) (22.5)
Other, net................................................ (150.0) (0.6)
Property, plant and equipment, net.......................... (15.8) (27.6)
--------- -------
Net cash provided by/(used in) investing activities......... $ 1.5 $ (29.8)
--------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of debt............................................ 215.0 --
Repayments of debt.......................................... (286.2) (29.8)
Receipts from annuity and universal life policies credited
to policyholder account balances.......................... 1,315.4 831.7
Return of policyholder's account balances on annuity and
universal life policies................................... (1,320.3) (828.0)
Capital Contribution........................................ 65.0 --
Dividends paid to shareholders.............................. (75.0)
--------- -------
Net cash (used in) financing activities..................... (86.1) (26.1)
--------- -------
Net (decrease)/increase in cash and cash equivalents........ (147.0) 18.6
Cash and cash equivalents, beginning of year................ 232.6 270.2
--------- -------
Cash and cash equivalents, end of period.................... $ 85.6 $ 288.8
========= =======
</TABLE>

See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-6
<PAGE> 90

THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS

1. ORGANIZATION AND DESCRIPTION OF BUSINESS:

On November 16, 1998, pursuant to its Plan of Reorganization (the "Plan")
which was approved by the New York Superintendent of Insurance on the same day
(the "Plan Effective Date"), The Mutual Life Insurance Company of New York
("MONY") converted from a mutual life insurance company to a stock life
insurance company (the "Demutualization") and became a wholly owned subsidiary
of The MONY Group Inc., (the "MONY Group" or the "Holding Company"), a Delaware
corporation organized on June 24, 1997 for the purpose of becoming the parent
holding company of MONY. The MONY Group has no other operations or subsidiaries.
In connection with the Plan, MONY established a closed block to fund the
guaranteed benefits and dividends of certain participating insurance policies,
and eligible policyholders received cash, policy credits, or shares of common
stock of the MONY Group in exchange for their membership interests in MONY.
Also, on November 16, 1998, the MONY Group consummated an initial public
offering (the "Offerings") of approximately 12.9 million shares of its common
stock and MONY changed its name to MONY Life Insurance Company (MONY Life
Insurance Company and its subsidiaries are hereafter referred to as "MONY
Life"). The shares of common stock issued in the Offerings are in addition to
approximately 34.3 million shares of common stock of the MONY Group distributed
to the aforementioned policyholders. The Plan and the Offerings are hereafter
collectively referred to as the "Transaction". During 1999, the Company
increased the number of its common shares authorized and outstanding from 2.0
million to 2.5 million in order to comply with regulatory requirements.

MONY Life and its subsidiaries (hereafter collectively referred to as the
"Company"), is primarily engaged in the business of providing a wide range of
life insurance, annuity, and investment products and services to higher income
individuals, particularly family builders, pre-retirees, and small business
owners (see Note 3). The Company distributes its products primarily through its
career agency sales force and various complementary distribution channels. These
include sales of mutual funds sold by Enterprise Capital Management through
third-party broker dealers, sales of protection products sold by U.S. Financial
Life Insurance Company ("USFL") through brokerage general agencies, sales of
corporate-owned life insurance ("COLI") products by the Company's corporate
marketing team and sales of a variety of financial products and services through
the Company's Trusted Securities Advisors Corp. subsidiary. The Company
primarily sells its products in all 50 of the United States, the District of
Columbia, the U.S. Virgin Islands, Guam and the Commonwealth of Puerto Rico.

2. BASIS OF PRESENTATION:

The accompanying unaudited interim condensed consolidated financial
statements have been prepared in conformity with generally accepted accounting
principles in the United States ("GAAP"). The preparation of financial
statements in conformity with GAAP 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. In the opinion of management these statements include all
normal recurring adjustments necessary to present fairly the financial position,
results of operations and cash flows of the Company for the periods presented.
These statements should be read in conjunction with the consolidated financial
statements of the Company for the year ended December 31, 1999. The results of
operations for the three-month and six-month periods ended June 30, 2000 are not
necessarily indicative of the results to be expected for the full year. Certain
reclassifications have been made in the amounts presented for the comparative
prior periods to conform those periods to the current presentation.

F-7
<PAGE> 91
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

3. SEGMENT INFORMATION:

The Company's business activities consist of the following: protection
product operations, accumulation product operations, mutual fund operations,
securities broker-dealer operations, insurance brokerage operations, and certain
insurance lines of business no longer written by the Company (the "run-off
businesses"). These business activities represent the Company's operating
segments. Except as discussed below, these segments are managed separately
because they either provide different products or services, are subject to
different regulation, require different strategies, or have different technology
requirements.

Management considers the Company's mutual fund operations to be an integral
part of the products offered by the Company's accumulation products segment. The
Company's mutual fund operation, which is conducted through its Enterprise
Capital Management subsidiary, offers proprietary mutual funds directly to
retail customers as well as proprietary and non-proprietary mutual funds through
products marketed by the accumulation products segment. Accordingly, for
management purposes (including performance assessment and making decisions
regarding the allocation of resources) the Company aggregates its mutual fund
operations with its accumulation products segment.

Of the aforementioned segments, only the protection products segment and
the accumulation products segment qualify as reportable segments in accordance
with FASB Statement No. 131. All of the Company's other segments are combined
and reported in an other products segment.

Products comprising the protection products segment primarily include a
wide range of insurance products, including; whole life, term life, universal
life, variable universal life, corporate-owned life insurance, last survivor
variable universal life, group universal life and special-risk products. In
addition, included in the protection products segment are: (i) the assets and
liabilities transferred pursuant to the Group Pension Transaction, as well as
the Group Pension Profits (see Note 4) and (ii) the Closed Block assets and
liabilities, as well as the Contribution from the Closed Block (see Note 6). The
Protection Products segment also includes the in-force business from sales of
last survivor universal life and last survivor whole life. In its Accumulation
Products segment, the Company primarily offers flexible premium variable
annuities and proprietary retail mutual funds. The Accumulation Products segment
also includes the in-force business from single premium deferred annuities and
immediate annuities. The Company's other products segment primarily consists of
the securities broker-dealer operation, the insurance brokerage operation, and
the run-off businesses. The securities broker-dealer operation markets the
Company's proprietary investment products and, in addition, provides customers
of the Company's protection and accumulation products access to other
non-proprietary investment products (including stocks, bonds, limited
partnership interests, tax-exempt unit investment trusts and other investment
securities). The insurance brokerage operation provides the Company's field
agency force with access to life, annuity, small group health and specialty
insurance products written by other carriers to meet the insurance and
investment needs of its customers. The run-off businesses primarily consist of
group life and health business, as well as group pension business that was not
included in the Group Pension Transaction (see Note 4).

Set forth in the table below is certain financial information with respect
to the Company's operating segments as of June 30, 2000 and December 31, 1999
and for the three-month and six-month periods ended June 30, 2000 and 1999, as
well as amounts not allocated to the segments. The Company evaluates the
performance of each operating segment based on profit or loss from operations
before income taxes and certain nonrecurring items (e.g. items of an unusual or
infrequent nature). In addition, all segment revenues are from external
customers.

F-8
<PAGE> 92
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

realized gains on investments were based on the amount of assets allocated to
each segment. Other costs and operating expenses were allocated to each of the
segments based on: (i) a review of the nature of such costs, (ii) time studies
analyzing the amount of employee compensation costs incurred by each segment,
and (iii) cost estimates included in the Company's product pricing.
Substantially all non-cash transactions and impaired real estate (including real
estate acquired in satisfaction of debt) are included in the protection products
segment.

Amounts reported as "reconciling amounts" in the table below represent
amounts not allocated to segments and primarily relate to: (i) certain expenses
relating to the Company's employee benefit plans.

SEGMENT SUMMARY FINANCIAL INFORMATION

<TABLE>
<CAPTION>
FOR THE THREE-MONTH FOR THE SIX-MONTH
PERIODS ENDED PERIODS ENDED
JUNE 30, JUNE 30,
-------------------- -----------------
2000 1999 2000 1999
-------- -------- ------- -------
($ IN MILLIONS)
<S> <C> <C> <C> <C>
PREMIUMS:
Protection Products(1)............................ $ 26.5 $ 18.8 $ 53.3 $ 39.3
Accumulation Products............................. 0.3 0.4 0.4 0.8
Other Products.................................... 1.8 1.7 4.2 4.1
------ ------ ------ ------
$ 28.6 $ 20.9 $ 57.9 $ 44.2
====== ====== ====== ======
UNIVERSAL LIFE AND INVESTMENT-TYPE PRODUCT POLICY
FEES:
Protection Products............................... $ 38.2 $ 33.8 $ 68.5 $ 61.6
Accumulation Products............................. 17.6 18.8 36.5 36.0
Other Products.................................... 0.1 (0.1) 0.8 0.3
------ ------ ------ ------
$ 55.9 $ 52.5 $105.8 $ 97.9
====== ====== ====== ======
NET INVESTMENT INCOME AND NET REALIZED GAINS
(LOSSES) ON INVESTMENTS:
Protection Products(2)............................ $ 81.9 $ 96.0 $271.6 $178.0
Accumulation Products............................. 25.6 32.6 76.2 61.5
Other Products.................................... 12.5 17.0 46.2 27.9
Reconciling amounts............................... 4.7 (1.3) 5.9
------ ------ ------ ------
$124.7 $144.3 $399.9 $267.4
====== ====== ====== ======
OTHER INCOME:
Protection Products(3)(9)......................... $ 27.4 $ 27.2 $ 51.4 $ 55.3
Accumulation Products............................. 31.4 23.1 62.7 44.0
Other Products.................................... 21.2 21.7 44.1 38.5
Reconciling amounts............................... 0.7 1.1 2.0 2.1
------ ------ ------ ------
$ 80.7 $ 73.1 $160.2 $139.9
====== ====== ====== ======
AMORTIZATION OF DEFERRED POLICY ACQUISITION COSTS:
Protection Products(13)........................... $ 15.8 $ 8.2 $ 28.2 $ 17.3
Accumulation Products............................. 7.1 7.2 14.6 14.9
------ ------ ------ ------
$ 22.9 $ 15.4 $ 42.8 $ 32.2
====== ====== ====== ======
</TABLE>

F-9
<PAGE> 93
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

<TABLE>
<CAPTION>
FOR THE THREE-MONTH FOR THE SIX-MONTH
PERIODS ENDED PERIODS ENDED
JUNE 30, JUNE 30,
-------------------- -----------------
2000 1999 2000 1999
-------- -------- ------- -------
($ IN MILLIONS)
<S> <C> <C> <C> <C>
BENEFITS TO POLICYHOLDERS:(4)
Protection Products............................... $ 38.3 $ 33.6 $ 78.3 $ 73.7
Accumulation Products............................. 19.2 19.0 37.0 37.3
Other Products.................................... 5.3 7.3 11.7 14.4
Reconciling amounts............................... 2.7 -- 3.8 2.3
------ ------ ------ ------
$ 65.5 $ 59.9 $130.8 $127.7
====== ====== ====== ======
DIVIDENDS TO POLICYHOLDERS:
Protection Products............................... $ (0.2) $ (0.1) $ (0.2) $ (0.8)
Accumulation Products............................. 0.4 0.5 0.8 0.9
Other Products.................................... 0.4 0.3 0.6 0.6
------ ------ ------ ------
$ 0.6 $ 0.7 $ 1.2 $ 0.7
====== ====== ====== ======
OTHER OPERATING COSTS AND EXPENSES:
Protection Product................................ $ 67.1 $ 70.7 $144.4 $130.8
Accumulation Products............................. 31.0 27.8 60.9 51.2
Other Products.................................... 26.0 24.2 53.6 44.5
Reconciling amounts............................... 4.7 -- 5.9 --
------ ------ ------ ------
$128.8 $122.7 $264.8 $226.5
====== ====== ====== ======
INCOME BEFORE INCOME TAXES:
Protection Products............................... $ 53.0 $ 63.4 $194.1 $113.2
Accumulation Products............................. 17.2 20.4 62.5 38.0
Other Products.................................... 3.9 8.5 29.4 11.3
Reconciling amounts............................... (2.0) (0.2) (1.8) (0.2)
------ ------ ------ ------
$ 72.1 $ 92.1 $284.2 $162.3
====== ====== ====== ======
</TABLE>

<TABLE>
<CAPTION>
AS OF AS OF
JUNE 30, DECEMBER 31,
2000 1999
--------- ------------
<S> <C> <C>
ASSETS:(7)
Protection Products(5)(10).................................. $16,273.9 $16,181.4
Accumulation Products....................................... 5,922.7 6,175.0
Other Products.............................................. 1,126.8 1,187.6
Reconciling amounts......................................... 1,091.3 1,176.1
--------- ---------
$24,414.7 $24,720.1
========= =========
DEFERRED POLICY ACQUISITION COSTS:
Protection Products(11)..................................... $ 1,124.0 $ 1,094.9
Accumulation Products....................................... 154.7 153.3
--------- ---------
$ 1,278.7 $ 1,248.2
========= =========
</TABLE>

F-10
<PAGE> 94
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

<TABLE>
<CAPTION>
AS OF AS OF
JUNE 30, DECEMBER 31,
2000 1999
--------- ------------
<S> <C> <C>
POLICYHOLDERS LIABILITIES:
Protection Products(6)(12).................................. $10,211.5 $10,231.7
Accumulation Products....................................... 1,157.5 1,236.3
Other Products.............................................. 395.2 418.9
Reconciling amounts......................................... 17.0 17.4
--------- ---------
$11,781.2 $11,904.3
========= =========
SEPARATE ACCOUNT LIABILITIES:(7)
Protection Products(8)...................................... $ 3,885.4 $ 3,843.5
Accumulation Products....................................... 4,337.7 4,548.9
Other Products.............................................. 547.2 604.2
Reconciling amounts......................................... 829.7 832.3
--------- ---------
$ 9,600.0 $ 9,828.9
========= =========
</TABLE>

---------------
(1) Excludes $147.9 million and $158.0 million of individual life premiums in
the Closed Block for the three-month periods ended June 30, 2000 and 1999,
respectively, and $283.6 million and $304.4 million for the six-month
periods ended June 30, 2000 and 1999, respectively (see Note 6).

(2) Excludes net investment income and net realized gains on investments in the
Closed Block of $94.2 million and $94.3 million for the three-month periods
ended June 30, 2000 and 1999, respectively, and $188.1 million and $191.9
million for the six-month periods ended June 30, 2000 and 1999,
respectively (see Note 6).

(3) Includes Group Pension Profits of $8.1 million and $12.0 million for the
three-month period ended June 30, 2000 and 1999, respectively, and $18.2
million and $26.3 million for the six-month period ended June 30, 2000 and
1999, respectively (see Note 4).

(4) Includes interest credited to policyholders' account balances. Excludes
$162.7 million and $169.2 million of benefits and interest credited to
policyholders' account balances related to the Closed Block for the
three-month periods ended June 30, 2000 and 1999, respectively, and $306.5
million and $318.4 million for the six-month periods ended June 30, 2000
and 1999, respectively (see Note 6).

(5) Includes assets transferred in the Group Pension Transaction of $4,972.2
million and $5,109.8 million as of June 30, 2000 and December 31, 1999,
respectively (see Note 4).

(6) Includes policyholder liabilities transferred in the Group Pension
Transaction of $1,539.5 million and $1,645.7 million as of June 30, 2000
and December 31, 1999, respectively (see Note 4).

(7) Each segment includes separate account assets in an amount equal to the
corresponding liability reported.

(8) Includes separate account liabilities transferred in the Group Pension
Transaction of $3,425.8 million and $3,432.7 million as of June 30, 2000
and December 31, 1999 respectively (see Note 4).

(9) Includes $10.8 million and $11.4 million relating to the Contribution from
the Closed Block for the three-month periods ended June 30, 2000 and 1999,
respectively and $21.4 million and $21.9 million for the six-month periods
ended June 30, 2000 and 1999, respectively (see Note 6).

(10) Includes Closed Block assets of $6,157.3 million and $6,182.1 million as of
June 30, 2000 and December 31, 1999, respectively (see Note 6).

(11) Includes deferred policy acquisition costs allocated to the Closed Block of
$664.4 million and $689.9 million as of June 30, 2000 and December 31,
1999, respectively (see Note 6).

F-11
<PAGE> 95
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

(12) Includes Closed Block policyholders' liabilities of $7,241.7 million and
$7,241.0 million as of June 30, 2000 and December 31, 1999, respectively
(see Note 6).

(13) Excludes $14.3 million and $17.2 million of amortization of deferred policy
acquisition costs related to the Closed Block for the three-month periods
ended June 30, 2000 and 1999, respectively, and $31.9 million and $35.1
million for the six-month periods ended June 30, 2000 and 1999,
respectively (see Note 6).

The following is a summary of premiums and universal life and
investment-type product policy fees by product for the three-month and six-month
periods ended June 30, 2000 and 1999, respectively.

<TABLE>
<CAPTION>
THREE-MONTH SIX-MONTH
PERIODS ENDED PERIODS ENDED
JUNE 30, JUNE 30,
--------------- ----------------
2000 1999 2000 1999
------ ------ ------- ------
($ IN MILLIONS) ($ IN MILLIONS)
<S> <C> <C> <C> <C>
PREMIUMS:
Individual life(1)..................................... $26.4 $18.6 $ 53.1 $39.0
Group insurance........................................ 1.8 1.7 4.2 4.1
Disability income insurance............................ 0.1 0.2 0.2 0.3
Other.................................................. 0.3 0.4 0.4 0.8
----- ----- ------ -----
Total........................................ $28.6 $20.9 $ 57.9 $44.2
===== ===== ====== =====
UNIVERSAL LIFE AND INVESTMENT-TYPE PRODUCT POLICY FEES:
Universal life......................................... $18.7 $19.1 $ 34.5 $36.7
Variable universal life(2)............................. 16.7 11.0 28.3 18.7
Group universal life................................... 2.8 3.7 5.7 6.2
Individual variable annuities.......................... 17.6 18.7 36.3 35.7
Individual fixed annuities............................. 0.1 -- 1.0 0.6
----- ----- ------ -----
Total........................................ $55.9 $52.5 $105.8 $97.9
===== ===== ====== =====
</TABLE>

---------------
(1) Excludes revenues from individual life in the Closed Block of $147.9 million
and $158.0 million for the three-month periods ending June 30, 2000 and
1999, respectively, and $283.6 million and $304.4 million for the six-month
periods ended June 30, 2000 and 1999, respectively.

(2) Includes corporate sponsored variable universal life products.

4. THE GROUP PENSION TRANSACTION:

On December 31, 1993 (the "Group Pension Transaction Date"), MONY entered
into an agreement (the "Agreement") with AEGON USA, Inc. ("AEGON") under which
the Company transferred a substantial portion of its group pension business
(hereafter referred to as the "Group Pension Transaction"), to AEGON's
wholly-owned subsidiary, AUSA Life Insurance Company, Inc. ("AUSA"). The Company
also transferred to AUSA the corporate infrastructure supporting the group
pension business, including data processing systems, facilities and regional
offices. AUSA was newly formed by AEGON solely for the purpose of facilitating
this transaction. In connection with the transaction, the Company and AEGON 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 will continue to provide certain administrative services to the
Company's remaining group pension contracts not included in the transfer.

F-12
<PAGE> 96
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

Pursuant to the Agreement, MONY agreed to make a $200 million capital
investment in AEGON by purchasing $150 million face amount of Series A Notes and
$50 million face amount of Series B Notes (hereinafter referred to as the
"Notes"). The Series A Notes pay interest at 6.44 percent per annum and the
Series B Notes pay interest at 6.24 percent per annum. Both the Series A Notes
and the Series B Notes mature on December 31, 2002. MONY's investment in the
Series A Notes was intended to provide AEGON with the funding necessary to
capitalize AUSA.

In accordance with GAAP, the transaction did not constitute a sale because
MONY retained substantially all the risks and rewards associated with the
deposits on contracts in force and transferred to AEGON on the Group Pension
Transaction Date (the "Existing Deposits"). Accordingly, the Company continues
to reflect the transferred assets and liabilities on its balance sheet under
separate captions entitled "Assets transferred in Group Pension Transaction" and
"Liabilities transferred in Group Pension Transaction". In addition, MONY
reports in its GAAP earnings the profits from the Existing Deposits as discussed
below.

Pursuant to the Agreement, MONY receives from AUSA (i) payments on an
annual basis through December 31, 2002 (the "Group Pension Payments") equal to
all of the earnings from the Existing Deposits, (ii) a final payment (the "Final
Value Payment") at December 31, 2002 based on the remaining fair value of the
Existing Deposits, and (iii) a contingent payment (the "New Business Growth
Payment") at December 31, 2002 based on new business growth subsequent to the
Group Pension Transaction Date. However, the level of new business growth
necessary for MONY to receive the New Business Growth Payment make it unlikely
that MONY will ever receive any such payment.

With respect to the Group Pension Payments, the annual results from the
Existing Deposits are measured on a basis in accordance with the Agreement (such
basis hereafter referred to as the "Earnings Formula") which is substantially
the same as GAAP, except that: (i) asset impairments on fixed maturity
securities are only recognized when such securities are designated with a
National Association of Insurance Commissioners ("NAIC") rating of "6", and (ii)
no impairment losses are recognized on mortgage loans until such loans are
disposed of or at the time, and in the calculation, of the Final Value Payment.

Earnings which emerge from the Existing Deposits pursuant to the
application of the Earnings Formula are recorded in MONY's financial statements
only after adjustments (primarily to recognize asset impairments in accordance
with SFAS Nos. 114 and 115) to reflect such earnings on a basis entirely in
accordance with GAAP (such earnings hereafter referred to as the "Group Pension
Profits"). Losses which arise from the application of the Earnings Formula for
any annual period will be reflected in MONY's results of operations (after
adjustments to reflect such losses in accordance with GAAP) only up to the
amount for which MONY is at risk (as described below), which at any time is
equal to the then outstanding principal amount of the Series A Notes.

Operating losses reported in any annual period pursuant to the Earnings
Formula are carried forward to reduce any earnings in subsequent years reported
pursuant to the Earnings Formula. Any resultant deficit remaining at December
31, 2002 will be deducted from the Final Value Payment and New Business Growth
Payment, if any, due to MONY. If a deficit still remains, it will be applied (as
provided for in the Agreement) as an offset against the principal payment due to
MONY upon maturity of the Series A Notes.

Management expects that Group Pension Profits will continue to decrease in
the future consistent with the runoff of the Existing Deposits.

The following tables set forth certain summarized financial information
relating to the Group Pension Transaction as of the dates and for the periods
indicated, including information regarding: (i) the general account assets
transferred to support the Existing Deposits in the Group Pension Transaction
(hereafter

F-13
<PAGE> 97
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

referred to as the "AEGON Portfolio"), (ii) the transferred separate account
assets and liabilities and (iii) the components of revenue and expense
comprising the Group Pension Profits:

<TABLE>
<CAPTION>
AS OF AS OF
JUNE 30, DECEMBER 31,
2000 1999
-------- ------------
($ IN MILLIONS)
<S> <C> <C>
ASSETS:
General Account Fixed Maturities: available for sale, at
estimated fair value (amortized cost; $1,453.7 million and
$1,532.4 million, respectively)........................... $1,428.1 $1,510.0
Mortgage loans on real estate............................. 67.1 98.5
Real estate to be disposed of............................. 5.3 16.8
Cash and cash equivalents................................. 20.4 25.3
Accrued investment income................................. 25.5 26.5
-------- --------
Total general account assets........................... 1,546.4 1,677.1
Separate account assets..................................... 3,425.8 3,432.7
-------- --------
Total assets........................................... $4,972.2 $5,109.8
======== ========
LIABILITIES:
General Account(1)
Policyholders' account balances........................... $1,539.5 $1,645.7
Other liabilities......................................... 19.1 20.7
-------- --------
Total general account liabilities...................... $1,558.6 $1,666.4
Separate account liabilities................................ 3,425.8 3,432.7
-------- --------
Total Liabilities...................................... $4,984.4 $5,099.1
======== ========
</TABLE>

---------------
(1) Includes general account liabilities transferred in connection with the
Group Pension Transaction pursuant to indemnity reinsurance of $78.4 million
and $88.9 million as of June 30, 2000 and December 31, 1999, respectively.

(2) Includes separate account liabilities transferred in connection with the
Group Pension Transaction pursuant to indemnity reinsurance of $16.2 million
and $20.3 million as of June 30, 2000 and December 31, 1999, respectively.

F-14
<PAGE> 98
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

<TABLE>
<CAPTION>
FOR THE FOR THE
THREE-MONTH SIX-MONTH
PERIODS ENDED PERIODS ENDED
JUNE 30, JUNE 30,
-------------- --------------
2000 1999 2000 1999
----- ------ ------ -----
($ IN MILLIONS)
<S> <C> <C> <C> <C>
REVENUES:
Product policy fees..................................... $ 5.9 $ 6.0 $12.0 $12.1
Net investment income................................... 28.3 32.5 58.4 66.6
Net realized gains on investments....................... 0.0 1.0 0.6 4.3
----- ----- ----- -----
Total revenues..................................... 34.2 39.5 71.0 83.0
----- ----- ----- -----
BENEFITS AND EXPENSES:
Interest credited to policyholders' account balances.... 22.3 23.0 43.2 45.5
Other operating costs and expenses...................... 3.8 4.5 9.6 11.2
----- ----- ----- -----
Total benefits and expenses........................ 26.1 27.5 52.8 56.7
----- ----- ----- -----
Group Pension Profits................................. $ 8.1 $12.0 $18.2 $26.3
===== ===== ===== =====
</TABLE>

5. COMMITMENTS AND CONTINGENCIES:

a.) Since late 1995 a number of purported class actions were commenced in
various state and federal courts against the Company alleging that the Company
engaged in deceptive sales practices in connection with the sale of whole and
universal life insurance policies from the early 1980s through the mid 1990s.
Although the claims asserted in each case are not identical, they seek
substantially the same relief under essentially the same theories of recovery
(i.e., breach of contract, fraud, negligent misrepresentation, negligent
supervision and training, breach of fiduciary duty, unjust enrichment and
violation of state insurance and/or deceptive business practice laws).
Plaintiffs in these cases (including the Goshen case discussed below) seek
primarily equitable relief (e.g., reformation, specific performance, mandatory
injunctive relief prohibiting the Company from canceling policies for failure to
make required premium payments, imposition of a constructive trust and creation
of a claims resolution facility to adjudicate any individual issues remaining
after resolution of all class-wide issues) as opposed to compensatory damages,
although they also seek compensatory damages in unspecified amounts. The Company
has answered the complaints in each action, (except for one being voluntarily
held in abeyance), has denied any wrongdoing and has asserted numerous
affirmative defenses.

On June 7, 1996, the New York State Supreme Court certified one of those
cases, the Goshen v. The Mutual Life Insurance Company of New York and MONY Life
Insurance Company of America, (the "Goshen case",) being the first of the
aforementioned class actions filed, as a nationwide class consisting of all
persons or entities who have, or at the time of the policy's termination had, an
ownership interest in a whole or universal life insurance policy issued by the
Company and sold on an alleged "vanishing premium" basis during the period
January 1, 1982 to December 31, 1995. On March 27, 1997, the Company filed a
motion to dismiss or, alternatively, for summary judgment on all counts of the
complaint. All of the other putative class actions have been consolidated and
transferred by the Judicial Panel on Multidistrict Litigation to the United
States District Court for the District of Massachusetts, or are being
voluntarily held in abeyance pending the outcome of the Goshen case.

F-15
<PAGE> 99
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

in the Goshen case (a claim under New York's General Business Law), which has
been remanded back to the New York State Supreme Court for further proceedings
consistent with the opinion. The Company intends to defend itself vigorously
against the sole remaining claim. There can be no assurance that the present
litigation relating to sales practices will not have a material adverse effect
on the Company.

b.) On March 27, 2000, the MONY Group and MONY Life Insurance Company were
served with a complaint in an action entitled Calvin Chatlos, M.D. and Alvin H.
Clement, On Behalf of Themselves And All Others Similarly Situated v. The MONY
Life Insurance Company, The MONY Group Inc., and Neil Levin, Superintendent, New
York Insurance Department, filed in the Supreme Court of the State of New York,
County of New York. The action purports to be a class action on behalf of all
persons or entities who had an ownership interest in one or more in-force life
insurance policies issued by MONY Life Insurance Company as of November 16,
1998. Plaintiffs seek a declaratory judgment that the New York Superintendent of
Insurance and the Company violated Section 7312 of the New York Insurance Law in
connection with its demutualization. Plaintiffs also allege that the Company
breached its contractual obligations and alleged fiduciary duties to its
policyholders in connection with the demutualization. Plaintiffs seek damages
against the Company for wrongfully denying them a fair and equitable amount for
their membership interests. The Company believes that the claims are without
merit and intends to defend itself vigorously.

c.) In addition to the matters discussed above, the Company is involved in
various other legal actions and proceedings in connection with its businesses.
The claimants in certain of these actions and proceedings seek damages of
unspecified amounts.

While the outcome of matters discussed in 5(a), 5(b) and 5(c) cannot be
predicted with certainty, in the opinion of management, any additional liability
beyond that recorded in the consolidated financial statements at June 30, 2000,
resulting from the resolution of these matters will not have a material adverse
effect on the Company's consolidated financial position or results of
operations.

d.) 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, such assessments will not have a
material adverse effect on the consolidated financial position and the results
of operations of the Company.

e.) The Company maintains a line of credit with domestic banks totaling
$150.0 million with a scheduled renewal date in June 2001. Under this line of
credit, the Company is required to maintain a certain statutory tangible net
worth and debt to capitalization ratio. The Company has complied with all
covenants relating thereto. The Company has not borrowed against these lines of
credit since their inception.

f.) At June 30, 2000, the Company had commitments to issue $8.6 million of
fixed rate agricultural loans with periodic interest rate reset dates. The
initial interest rates on such loans range from approximately 7.5% to 9.0%. In
addition, the Company had commitments to issue $99.0 million of fixed rate and
floating rate commercial mortgage loans with interest rates ranging from 7.8% to
9.1%. The Company had commitments outstanding to purchase private fixed maturity
securities as of June 30, 2000 of $102.8 million with interest rates from 7.9%
to 10.8%. At June 30, 2000, the Company had commitments to contribute capital to
its equity partnership investments of $125.1 million.

6. CLOSED BLOCK:

In accordance with New York State Insurance Law, on November 16, 1998, the
Company established a closed block (the "Closed Block") of certain participating
insurance policies as defined in the Plan (the "Closed Block Business"). In
conjunction therewith, the Company allocated assets to the Closed Block expected
to produce cash flows which, together with anticipated revenues from the Closed
Block Business, are reasonably expected to be sufficient to support the Closed
Block Business, including but not limited to,
F-16
<PAGE> 100
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

provision for payment of claims and surrender benefits, certain expenses and
taxes, and for continuation of current payable dividend scales in effect at the
date of Demutualization, assuming the experience underlying such dividend scales
continues, and for appropriate adjustments in such scales if the experience
changes. The assets allocated to the Closed Block and the aforementioned
revenues inure solely to the benefit of the owners of policies included in the
Closed Block.

The assets and liabilities allocated to the Closed Block were recorded in
the Company's financial statements at their historical carrying values. The
carrying values of the assets allocated to the Closed Block are less than the
carrying value of the Closed Block liabilities at the Plan Effective Date. The
excess of the Closed Block liabilities over the Closed Block assets at the Plan
Effective Date represents the total estimated future post-tax contribution
expected to emerge from the operation of the Closed Block, which will be
recognized in the Company's income over the period the policies and the
contracts in the Closed Block remain in force.

To the extent that the actual cash flows, subsequent to the Plan Effective
Date, from the assets allocated to the Closed Block and the Closed Block
Business are, in the aggregate, more favorable than assumed in establishing the
Closed Block, total dividends paid to the Closed Block policyholders in future
years will be greater than the total dividends that would have been paid to such
policyholders if the current payable dividend scales had been continued.
Conversely, to the extent that the actual cash flows, subsequent to the Plan
Effective Date, from the assets allocated to the Closed Block and the Closed
Block Business are, in the aggregate, less favorable than assumed in
establishing the Closed Block, total dividends paid to the Closed Block
policyholders in future years will be less than the total dividends that would
have been paid to such policyholders if the current payable dividend scales had
been continued. Accordingly, the recognition of the aforementioned estimated
future post-tax contribution expected to emerge from the operation of the Closed
Block is not affected by the aggregate actual experience of the Closed Block
assets and the Closed Block Business subsequent to the Plan Effective Date,
except in the unlikely event that the Closed Block assets and the actual
experience of the Closed Block Business subsequent to the Plan Effective Date
are not sufficient to pay the guaranteed benefits on the Closed Block Policies,
in which case the Company will be required to fund any such deficiency from its
general account assets outside of the Closed Block.

In addition, MONY has undertaken to reimburse the Closed Block from its
general account assets outside the Closed Block for any reduction in principal
payments due on the Series A Notes (which have been allocated to the Closed
Block) pursuant to the terms thereof, as described in Note 4. Since the Closed
Block has been funded to provide for the payment of guaranteed benefits and the
continuation of current payable dividends on the policies included therein, it
will not be necessary to use general funds to pay guaranteed benefits unless the
Closed Block Business experiences very substantial ongoing adverse experience in
investment, mortality, persistency or other experience factors. The Company
regularly (at least quarterly) monitors the experience from the Closed Block and
may make changes to the dividend scale, when appropriate, to ensure the profits
are distributed to Closed Block policyholders in a fair and equitable manner. In
addition, periodically the New York Insurance Department requires the filing of
an independent auditor's report on the operations of the Closed Block.

The results of the Closed Block are presented as a single line item in the
Company's statements of income entitled, "Contribution from the Closed Block".
Prior to the establishment of the Closed Block the results of the assets and
policies comprising the Closed Block were reported in various line items in the
Company's income statements, including: premiums, investment income, net
realized gains and losses on investments, benefits, amortization of deferred
policy acquisition costs, etc. In addition, all assets and liabilities allocated
to the Closed Block are reported in the Company's balance sheet separately under
the captions "Closed Block assets" and "Closed Block liabilities", respectively.
Accordingly, certain line items in the Company's financial statements subsequent
to the establishment of the Closed Block reflect material

F-17
<PAGE> 101
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

reductions in reported amounts, as compared to periods prior to the
establishment of the Closed Block, while having no effect on net income.

The pre-tax Contribution from the Closed Block includes only those
revenues, benefit payments, dividends, premium taxes, state guaranty fund
assessments, and investment expenses considered in funding the Closed Block.
However, many expenses associated with operating the Closed Block and
administering the policies included therein were excluded from and, accordingly,
not funded in the Closed Block. These expenses are reported in the Company's
statement of operations, outside of the Contribution from the Closed Block,
consistent with how they are funded. Such expenses are reported in the separate
line items to which they apply based on the nature of such expenses. Federal
income taxes applicable to the Closed Block, which are funded in the Closed
Block, are reflected as a component of federal income tax expense in the
Company's statement of operations. Since many expenses related to the Closed
Block are funded outside the Closed Block, operating costs and expenses outside
the Closed Block are disproportionate to the level of business outside the
Closed Block.

F-18
<PAGE> 102
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

The following tables set forth certain summarized financial information
relating to the Closed Block, as of and for the periods indicated:

<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
2000 1999
-------- ------------
($ IN MILLIONS)
<S> <C> <C>
ASSETS:
Fixed Maturities:
Available for sale, at estimated fair value (amortized
cost; $3,590.6 and $3,589.6, respectively)............. $3,467.1 $3,479.5
Mortgage loans on real restate............................ 534.9 443.0
Policy loans.............................................. 1,184.4 1,199.1
Real estate............................................... 23.3 22.1
Cash and cash equivalents................................. 40.4 111.3
Premiums receivable....................................... 10.1 14.2
Deferred policy acquisition costs......................... 664.4 689.9
Other assets.............................................. 232.7 223.0
-------- --------
Total Closed Block assets.............................. $6,157.3 $6,182.1
======== ========
LIABILITIES:
Future policy benefits.................................... $6,776.9 $6,781.5
Policyholders' account balances........................... 292.9 294.6
Other Policyholders' liabilities.......................... 171.9 164.9
Other liabilities......................................... 25.6 62.3
-------- --------
Total Closed Block liabilities......................... $7,267.3 $7,303.3
======== ========
</TABLE>

<TABLE>
<CAPTION>
FOR THE FOR THE
THREE-MONTH SIX-MONTH
PERIODS ENDED PERIODS ENDED
JUNE 30, JUNE 30,
--------------- ---------------
2000 1999 2000 1999
------ ------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C> <C>
REVENUES:
Premiums............................................ $147.9 $158.0 $283.6 $304.4
Net investment income............................... 98.6 92.9 195.0 186.2
Net realized gains (losses) on investments.......... (4.4) 1.4 (6.9) 5.7
Other income........................................ 0.3 0.3 1.1 0.7
------ ------ ------ ------
Total revenues................................. 242.4 252.6 472.8 497.0
------ ------ ------ ------
</TABLE>

F-19
<PAGE> 103
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

<TABLE>
<CAPTION>
FOR THE FOR THE
THREE-MONTH SIX-MONTH
PERIODS ENDED PERIODS ENDED
JUNE 30, JUNE 30,
--------------- ---------------
2000 1999 2000 1999
------ ------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C> <C>
BENEFITS AND EXPENSES:
Benefits to policyholders........................... 160.6 167.0 302.2 314.0
Interest credited to policyholders' account
balances.......................................... 2.1 2.2 4.3 4.4
Amortization of deferred policy acquisition costs... 14.3 17.2 31.9 35.1
Dividends to policyholders.......................... 52.1 52.8 108.7 116.4
Other operating costs and expenses.................. 2.5 2.0 4.3 5.2
------ ------ ------ ------
Total benefits and expenses.................... 231.6 241.2 451.4 475.1
------ ------ ------ ------
Contribution from the Closed Block.................. $ 10.8 $ 11.4 $ 21.4 $ 21.9
====== ====== ====== ======
</TABLE>

For the three-month periods ended June 30, 2000 and 1999, there were $4.5
million and $0.0 million, respectively, in charges for other than temporary
impairments on fixed maturity securities in the Closed Block. For the six-month
periods ended June 30, 2000 and 1999, there were $7.5 million and $0.0 million,
respectively, in charges for other than temporary impairments on fixed maturity
securities in the Closed Block. There were no fixed maturity securities which
have been non-income producing for the twelve months preceding such dates. At
June 30, 2000 and December 31, 1999, the carrying value of mortgage loans in the
Closed Block that were non-income producing for the twelve months preceding such
date, were $0.3 million and $0.0 million, respectively.

7. EXTRAORDINARY AND OTHER ITEMS

a) In January 2000, the New York Insurance Department approved, and MONY
Life paid, a dividend to MONY Group in the amount of $75 million.

b) On January 12, 2000, the Holding Company filed a registration statement
on Form S-3 with the Securities and Exchange Commission (the "SEC") to register
certain securities. This registration, known as a "Shelf Registration", provides
MONY Group with the ability to offer various securities to the public, when it
deems appropriate, to raise proceeds up to an amount not to exceed $1.0 billion
in the aggregate for all issuances of securities thereunder. It is the intention
of MONY Group to use this facility to raise proceeds for mergers and
acquisitions and for other general corporate matters of MONY Group and its
subsidiaries, as it considers necessary.

d) On March 8, 2000, the Holding Company issued $300.0 million principal
amount of senior notes (the "Senior Notes") pursuant to the aforementioned Shelf
Registration. The Senior Notes mature on March 15, 2010 and bear interest at
8.35% per annum. The principal amount of the Senior Notes is payable at maturity
and interest is payable semi-annually. The net proceeds to the Company from the
issuance of the Senior Notes, after deducting underwriting commissions and other
expenses (primarily legal and accounting fees), were approximately $296.6
million. Approximately $280.0 million of the net proceeds from the issuance of
the Senior Notes was used by the Holding Company to finance the repurchase, on
March 8, 2000, by MONY Life of all of its outstanding $115.0 million face amount
9.5% coupon surplus notes, and $116.5 million face amount of its $125.0 million
face amount 11.25% coupon surplus notes (hereafter referred to as the "9.5%
Notes" and "11.25% Notes", respectively), which were outstanding at December 31,
1999. The balance of the net proceeds from the issuance of the Senior Notes was
retained by the Holding Company for general corporate purposes.

F-20
<PAGE> 104
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

To finance MONY Life's repurchase of the 9.5% Notes and the 11.25% Notes,
the Holding Company on March 8, 2000:

(i) purchased two surplus notes from MONY Life (hereafter referred as
the "Inter-Company Surplus Notes") to replace 9.5% Notes and the 11.25%
Notes. The term of the Inter-Company Surplus Notes are identical to the
9.2% Notes and 11.25% Notes, except that the Inter-Company Surplus Notes
were provided to yield a current market rate of interest and the
Inter-Company Surplus Note issued to replace the $116.5 million face amount
of the 11.25% Notes was issued a face amount of $100.0 million, and

(ii) contributed capital to MONY Life in the amount of $65.0 million.

As a result of the repurchase of the 9.5% Notes and substantially all of
the 11.25% Notes, MONY Life recorded a pre-tax tax loss of $56.5 million ($36.7
million after tax) during the first quarter of 2000. The loss resulted from the
premium paid by MONY Life to the holders of the 9.5% Notes and the 11.25% Notes
reflecting the excess of their fair value over their carrying value on MONY
Life's books at the date of the transaction of approximately $7.0 million and
$49.5 million, respectively. This loss is reported, net of tax, as an
extraordinary item on MONY Life's income statement for the six-month period
ended June 30, 2000.

8. SUBSEQUENT EVENTS

On August 3, 2000, MONY Life repurchased $6.5 million face amount of the
remaining $8.5 million face amount of the 11.25% Notes, which were outstanding
at March 31, 2000. As a result, the Company will record an extraordinary item on
the Company's income statement for the three-month period ending September 30,
2000 of approximately $1.2 million, net of tax.

F-21
<PAGE> 105

REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and Shareholders of
The MONY Life Insurance Company

In our opinion, the accompanying consolidated balance sheets and the
related consolidated statements of income and comprehensive income, changes in
shareholders' equity and cash flows present fairly, in all material respects,
the financial position of The MONY Life Insurance Company and Subsidiaries (the
"Company"), formerly known as The Mutual Life Insurance Company of New York and
subsidiaries, at December 31, 1999 and 1998, and the results of their operations
and their cash flows for each of the three years in the period ended December
31, 1999, in conformity with accounting principles generally accepted in the
United States. 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 of these
statements in accordance with auditing standards generally accepted in the
United States, which 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, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.

PricewaterhouseCoopers LLP

New York, New York
February 10, 2000, except for Note 18(b)
as to which the date is March 27, 2000
and Note 23(c), as to which the date
is March 8, 2000.

F-22
<PAGE> 106

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1999 AND 1998

<TABLE>
<CAPTION>
1999 1998
--------- ---------
($ IN MILLIONS)
<S> <C> <C>
ASSETS
INVESTMENTS:
Fixed maturity securities available-for-sale, at fair
value..................................................... $ 3,066.7 $ 3,132.0
Equity securities available-for-sale, at fair value......... 519.8 457.2
Mortgage loans on real estate (Note 13)..................... 1,270.4 988.3
Policy loans................................................ 69.1 61.1
Real estate to be disposed of (Note 13)..................... 300.9 312.9
Real estate held for investment (Note 13)................... 46.2 321.3
Other invested assets....................................... 37.9 40.7
--------- ---------
5,311.0 5,313.5
========= =========
Cash and cash equivalents................................... 232.6 270.2
Accrued investment income................................... 74.6 68.9
Amounts due from reinsurers................................. 488.0 478.1
Deferred policy acquisition costs........................... 558.3 439.7
Other assets................................................ 365.4 325.6
Assets transferred in Group Pension Transaction (Note 10)... 5,109.8 5,751.8
Separate account assets..................................... 6,398.3 6,090.3
Closed Block assets (Note 20)............................... 6,182.1 6,161.2
--------- ---------
Total assets.............................................. $24,720.1 $24,899.3
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Future policy benefits...................................... $ 954.3 $ 960.0
Policyholders' account balances............................. 1,942.9 1,991.7
Other policyholders' liabilities............................ 120.4 104.8
Amounts due to reinsurers................................... 83.8 95.6
Accounts payable and other liabilities...................... 581.1 518.3
Short term debt (Note 16)................................... 53.4 --
Long term debt (Note 16).................................... 245.4 375.4
Current federal income taxes payable........................ 147.4 79.1
Liabilities transferred in Group Pension Transaction (Note
10)....................................................... 5,099.1 5,678.5
Separate account liabilities................................ 6,396.2 6,078.1
Closed Block liabilities (Note 20).......................... 7,303.3 7,290.7
--------- ---------
Total liabilities......................................... $22,927.3 $23,172.2
========= =========
Commitments and contingencies (Notes 9 and 18)
Common stock, $1.00 par value; 2.5 million shares
authorized and outstanding................................ $ 2.5 $ 2.0
Capital in excess of par.................................... 1,563.6 1,564.1
Retained earnings........................................... 256.1 8.6
Accumulated other comprehensive income...................... (29.4) 152.4
--------- ---------
Total shareholders' equity................................ 1,792.8 1,727.1
--------- ---------
Total liabilities and shareholders' equity................ $24,720.1 $24,899.3
========= =========
</TABLE>

See accompanying notes to consolidated financial statements.
F-23
<PAGE> 107

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997

<TABLE>
<CAPTION>
1998
PRO FORMA*
1999 1998 1997 (UNAUDITED)
-------- -------- -------- -----------
($ IN MILLIONS)
<S> <C> <C> <C> <C>
REVENUES:
Premiums......................................... $ 96.3 $ 621.7 $ 838.6 $ 77.9
Universal life and investment-type product policy
fees........................................... 196.3 151.6 127.3 151.6
Net Investment income (Note 11).................. 524.9 688.3 733.0 361.1
Net realized gains on investments (Note 11)...... 122.2 168.7 72.1 160.9
Group Pension Profits (Note 10).................. 63.0 56.8 60.0 56.8
Other income..................................... 195.8 162.6 145.4 161.3
Contribution from the Closed Block............... 44.8 5.7 -- 52.2
-------- -------- -------- --------
1,243.3 1,855.4 1,976.4 1,021.8
-------- -------- -------- --------
BENEFITS AND EXPENSES:
Benefits to policyholders........................ 147.0 679.8 840.1 124.4
Interest credited to policyholders' account
balances....................................... 106.6 112.7 125.9 105.0
Amortization of deferred policy acquisition
costs.......................................... 70.3 122.0 181.2 52.2
Dividends to policyholders....................... 1.9 195.8 224.3 3.3
Other operating costs and expenses............... 536.6 451.7 417.2 443.5
-------- -------- -------- --------
862.4 1,562.0 1,788.7 728.4
-------- -------- -------- --------
Income before income taxes & extraordinary
item........................................... 380.9 293.4 187.7 293.4
Income tax expense............................... 131.4 102.7 57.3 102.7
-------- -------- -------- --------
Income before extraordinary items................ 249.5 190.7 130.4 190.7
-------- -------- -------- --------
Extraordinary items (Note 4)..................... 2.0 27.2 13.3 --
-------- -------- -------- --------
Net income....................................... 247.5 163.5 117.1 190.7
-------- -------- -------- --------
Other comprehensive income, net (Note 11)........ (181.8) 34.3 33.0
-------- -------- --------
Comprehensive income............................. $ 65.7 $ 197.8 $ 150.1
======== ======== ========
</TABLE>

---------------
* The pro forma information gives effect to the transactions referred to in
Notes 1 and 22.

See accompanying notes to consolidated financial statements.
F-24
<PAGE> 108

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997

<TABLE>
<CAPTION>
ACCUMULATED
CAPITAL OTHER TOTAL
COMMON IN EXCESS RETAINED COMPREHENSIVE SHAREHOLDERS'
STOCK OF PAR EARNINGS INCOME EQUITY
------ --------- --------- ------------- -------------
($ IN MILLIONS)
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1996............... $ $ $ 1,085.4 $ 85.1 $1,170.5
Comprehensive income:
Net income............................. 117.1 117.1
Other comprehensive income:
Unrealized gains on investments, net
of unrealized losses,
reclassification adjustments, and
taxes (Note 11)................... 35.9 35.9
Minimum pension liability
adjustment........................ (2.9) (2.9)
------- --------
Other comprehensive income............. 33.0 33.0
------- --------
Comprehensive income..................... 150.1
---- -------- --------- ------- --------
Balance, December 31, 1997............... 1,202.5 118.1 1,320.6
Demutualization Transaction.............. 1,344.2 (1,357.4) (13.2)
Capital Contribution..................... 2.0 219.9 221.9
Comprehensive income:
Net income before demutualization...... 154.9 154.9
Net income after demutualization....... 8.6 8.6
---- -------- --------- ------- --------
Net income for the year............. 163.5 163.5
Other comprehensive income:
Unrealized losses on investments,
net of unrealized gains,
reclassification adjustments, and
taxes (Note 11)................... 31.4 31.4
Minimum pension liability
adjustment........................ 2.9 2.9
------- --------
Other comprehensive income............. 34.3 34.3
---- -------- --------- ------- --------
Comprehensive income..................... 197.8
--------
Balance, December 31, 1998............... 2.0 1,564.1 8.6 152.4 1,727.1
Comprehensive income/(loss)
Net income............................. 247.5 247.5
Other comprehensive income: unrealized
gains on investments, net of
unrealized losses, reclassification
adjustments, and taxes (Note 11).... (181.8) (181.8)
Change in number of authorized and
outstanding shares..................... 0.5 (0.5)
--------
Comprehensive income/(loss).............. 65.7
---- -------- --------- ------- --------
Balance, December 31, 1999............... $2.5 $1,563.6 $ 256.1 $ (29.4) $1,792.8
==== ======== ========= ======= ========
</TABLE>

See accompanying notes to consolidated financial statements.
F-25
<PAGE> 109

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997

<TABLE>
<CAPTION>
1999 1998 1997
--------- --------- ---------
($ IN MILLIONS)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES (SEE NOTE 4):
Net income................................................ $ 247.5 $ 163.5 $ 117.1
Adjustments to reconcile net income to net cash provided
by operating activities:
Interest credited to policyholders' account balances.... 105.0 110.6 122.3
Universal life and investment-type product policy fee
income............................................... (143.5) (123.6) (112.9)
Capitalization of deferred policy acquisition costs..... (148.8) (124.5) (141.0)
Amortization of deferred policy acquisition costs....... 70.3 122.0 181.2
Provision for depreciation and amortization............. 31.5 41.4 55.0
Provision for deferred federal income taxes............. 57.4 11.4 (50.2)
Net realized gains on investments....................... (122.2) (168.7) (72.1)
Non-cash distributions from investments................. (172.8) (35.1) (31.1)
Change in other assets and accounts payable and other
Liabilities.......................................... (26.4) (32.7) (177.5)
Change in future policy benefits........................ (3.7) 136.2 206.9
Change in other policyholders' liabilities.............. 15.6 32.9 (17.4)
Change in current federal income taxes payable.......... 103.5 (14.9) (11.2)
Initial cash transferred to the Closed Block............ -- (46.9) --
Contribution from the Closed Block...................... (44.8) (5.7) --
--------- --------- ---------
Net cash (used in)/provided by operating activities....... (31.4) 65.9 69.1
--------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales, maturities or repayments of:
Fixed maturities........................................ 689.4 887.3 952.0
Equity securities....................................... 328.1 177.4 246.7
Mortgage loans on real estate........................... 132.9 424.4 334.4
Real estate............................................. 350.7 578.3 430.8
Other invested assets................................... 18.7 46.0 5.0
Acquisitions of investments:
Fixed maturities........................................ (830.0) (1,479.7) (1,336.2)
Equity securities....................................... (152.0) (230.5) (211.5)
Mortgage loans on real estate........................... (412.0) (422.4) (183.1)
Real estate............................................. (44.5) (39.5) (52.7)
Other invested assets................................... (20.6) (2.1) (1.7)
Policy loans, net....................................... (7.8) (17.8) (15.9)
Other, net.............................................. 60.3 8.8 10.1
Property & equipment, net............................... (22.5) (30.9) (35.8)
Acquisition of subsidiaries, net of cash acquired....... -- (46.0) --
--------- --------- ---------
Net cash provided by/(used in) investing activities....... $ 90.7 $ (146.7) $ 142.1
========= ========= =========
</TABLE>

F-26
<PAGE> 110
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS -- (CONTINUED)

<TABLE>
<CAPTION>
1999 1998 1997
--------- --------- ---------
($ IN MILLIONS)
<S> <C> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of debt........................................ $ -- $ -- $ 115.0
Repayments of debt...................................... (84.8) (61.3) (126.0)
Receipts from annuity and universal life policies
credited to policyholders' account balances.......... 1,851.5 1,254.0 1,226.4
Return of policyholders' account balances on annuity
policies and universal life policies................. (1,863.6) (1,377.0) (1,435.2)
Other................................................... 6.6
Capital Contribution (Note 4)............................. 0.0 221.9 0.0
--------- --------- ---------
Net cash (used in)/provided by financing activities....... (96.9) 37.6 (213.2)
--------- --------- ---------
Net (decrease)/increase in cash and cash equivalents...... (37.6) (43.2) (2.0)
Cash and cash equivalents, beginning of year.............. 270.2 313.4 315.4
--------- --------- ---------
Cash and cash equivalents, end of year.................... $ 232.6 $ 270.2 $ 313.4
========= ========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
CASH PAID DURING THE PERIOD FOR:
Income taxes.............................................. $ 20.1 $ 97.4 $ 114.6
Interest.................................................. $ 20.3 $ 20.3 $ 20.8
</TABLE>

See accompanying notes to consolidated financial statements.
F-27
<PAGE> 111

MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. ORGANIZATION AND DESCRIPTION OF BUSINESS:

On November 16, 1998, pursuant to its Plan of Reorganization (the "Plan")
which was approved by the New York Superintendent of Insurance on the same day
(the "Plan Effective Date"), The Mutual Life Insurance Company of New York
("MONY") converted from a mutual life insurance company to a stock life
insurance company (the "Demutualization") and became a wholly owned subsidiary
of The MONY Group Inc., (the "MONY Group" or the "Holding Company"), a Delaware
corporation organized on June 24, 1997 for the purpose of becoming the parent
holding company of MONY. The MONY Group has no other operations or subsidiaries.
In connection with the Plan, MONY established a closed block, as more fully
discussed in Note 3, to fund the guaranteed benefits and dividends of certain
participating insurance policies and eligible policyholders received cash policy
credits, or shares of common stock of the MONY Group in exchange for their
membership interests in MONY (see Note 4). Also, on November 16, 1998, the MONY
Group consummated an initial public offering (the "Offerings") of approximately
12.9 million shares of its common stock (see Note 4) and MONY changed its name
to MONY Life Insurance Company (MONY Life Insurance Company and its subsidiaries
are hereafter collectively referred to as "MONY Life"). The shares of common
stock issued in the Offerings are in addition to approximately 34.3 million
shares of common stock of the MONY Group distributed to the aforementioned
eligible policyholders. The Plan and the Offerings are hereafter collectively
referred to as the "Transaction". During 1999, the Company increased the number
of its common shares authorized and outstanding from 2.0 million to 2.5 million
in order to comply with regulatory requirements.

MONY Life and its subsidiaries (hereafter collectively referred to as the
"Company"), is primarily engaged in the business of providing a wide range of
life insurance, annuity, and investment products to higher income individuals,
particularly family builders, pre-retirees, and small business owners (see Note
5). The Company distributes its products primarily through its career agency
sales force and various complementary distribution channels. These include sales
of mutual funds sold by Enterprise Capital Management through third-party broker
dealers, sales of protection products through brokerage general agencies, sales
of corporate-owned life insurance ("COLI") products by the Company's corporate
marketing team and sales of a variety of financial products and services through
the Company's Trusted Securities Advisors Corp. subsidiary. The Company
primarily sells its products in all 50 of the United States, the District of
Columbia, the U.S. Virgin Islands, Guam and the Commonwealth of Puerto Rico.

On December 31, 1998, MONY Life acquired Sagamore Financial Corporation,
the holding Company parent of U.S. Financial Life Insurance Company ("USFL") for
a purchase price of $48 million. USFL is a special-risk carrier based in Ohio,
which distributes its products in 41 states through brokerage general agencies.
The acquisition was accounted for as a purchase. In conjunction therewith, MONY
Life recorded $18.8 million of goodwill which will be amortized over 20 years.

2. INVESTMENT AGREEMENT:

On December 30, 1997, affiliates of Goldman, Sachs & Co. (the "Investors"),
one of the underwriters for the Offerings, entered into an investment agreement
with MONY (the "Investment Agreement"), pursuant to which: (i) the Investors
purchased, for $115.0 million (the "Consideration"), Surplus Notes issued by
MONY (the "MONY Notes") with an aggregate principal amount equal to the
Consideration (see Note 16), and (ii) the Investors purchased, for $10.0
million, warrants (the "Warrants") to purchase from the Holding Company (after
giving effect to the initial public offering) in the aggregate 7.0% of the fully
diluted Common Stock as of the first date following such effectiveness on which
shares of Common Stock were first issued to Eligible Policyholders (December 24,
1998).

F-28
<PAGE> 112
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

3. THE CLOSED BLOCK:

On November 16, 1998, the Company established a closed block (the "Closed
Block") of certain participating insurance policies as defined in the Plan (the
"Closed Block Business"). In conjunction therewith, the Company allocated assets
to the Closed Block expected to produce cash flows which, together with
anticipated revenues from the Closed Block Business, are reasonably expected to
be sufficient to support the Closed Block Business, including but not limited
to, provision for payment of claims and surrender benefits, certain expenses and
taxes, and for continuation of current payable dividend scales in effect at the
date of Demutualization, assuming the experience underlying such dividend scales
continues, and for appropriate adjustments in such scales if the experience
changes. The assets allocated to the Closed Block and the aforementioned
revenues inure solely to the benefit of the owners of policies included in the
Closed Block.

The assets and liabilities allocated to the Closed Block are recorded in
the Company's financial statements at their historical carrying values. The
carrying value of the assets allocated to the Closed Block are less than the
carrying value of the Closed Block liabilities at the Plan Effective Date. The
excess of the Closed Block liabilities over the Closed Block assets at the Plan
Effective Date represents the total estimated future post-tax contribution
expected to emerge from the operation of the Closed Block, which will be
recognized in the Company's income over the period the policies and the
contracts in the Closed Block remain in force.

In addition, MONY has undertaken to reimburse the Closed Block from its
general account assets outside the Closed Block for any reduction in principal
payments due on the Series A Notes (which have been allocated to the Closed
Block) pursuant to the terms thereof, as described in Note 10. Since the Closed
Block has been funded to provide for payment of guaranteed benefits and the
continuation of current payable dividends on the policies included therein, it
will not be necessary to use general funds to pay guaranteed benefits unless the
Closed Block Business experiences very substantial ongoing adverse experience in
investment, mortality, persistency or other experience factors. The Company
regularly (at least quarterly) monitors the experience from the Closed Block and
may make changes to the dividend scale, when appropriate, to ensure that the
profits are distributed to the Closed Block policyholders in a fair and
equitable manner. In addition, periodically the New York Insurance Department
requires the filing of an independent auditor's report on the operations of the
Closed Block.

The results of the Closed Block are presented as a single line item in the
Company's statements of income entitled, "Contribution from the Closed Block".
Prior to the establishment of the Closed Block the results of the assets and
policies comprising the Closed Block were reported in various line items in the
Company's income statements, including: premiums, investment income, net
realized gains and losses on investments, benefits, amortization of deferred
policy acquisition costs, etc. In addition, all assets and liabilities
F-29
<PAGE> 113
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

allocated to the Closed Block will be reported in the Company's balance sheet
separately under the captions "Closed Block assets" and "Closed Block
liabilities", respectively. Accordingly, certain line items in the Company's
financial statements subsequent to the establishment of the Closed Block reflect
material reductions in reported amounts, as compared to years prior to the
establishment of the Closed Block, while having no effect on net income.

The pre-tax Contribution from the Closed Block includes only those
revenues, benefit payments, dividends, premium taxes, state guaranty fund
assessments, and investment expenses considered in funding the Closed Block.
However, many expenses associated with operating the Closed Block and
administering the policies included therein were excluded from and, accordingly,
are not funded in the Closed Block. These expenses are reported in the Company's
statement of operations, outside of the Contribution from the Closed Block,
consistent with how they are funded. Such expenses are reported in the separate
line items to which they apply based on the nature of such expenses. Federal
income taxes applicable to the Closed Block, which are funded in the Closed
Block, are reflected as a component of federal income tax expense in the
Company's statement of operations. Since many expenses related to the Closed
Block are funded outside the Closed Block, operating costs and expenses outside
the Closed Block are disproportionate to the level of business outside the
Closed Block.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Basis of Presentation

The accompanying consolidated financial statements have been prepared in
conformity with generally accepted accounting principles ("GAAP"). The
preparation of financial statements in conformity with GAAP 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. In the opinion of management these statements
include all normal recurring adjustments necessary to present fairly the
financial position, results of operations and cash flows of the Company for the
periods presented. Actual results could differ significantly from those
estimates. The most significant estimates made in conjunction with the
preparation of the Company's financial statements include those used in
determining (i) deferred policy acquisition costs, (ii) the liability for future
policy benefits, and (iii) valuation allowances for mortgage loans and real
estate to be disposed of, and impairment writedowns for real estate held for
investment. Certain reclassifications have been made in the amounts presented
for prior periods to conform those periods to the current presentation.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of
the Company and those partnerships in which the Company has a majority voting
interest. All significant intercompany accounts and transactions have been
eliminated.

Minority interest related to partnerships that are consolidated, which is
included in Accounts Payable and Other Liabilities, amounted to $17.4 million
and $33.5 million at December 31, 1999 and 1998, respectively.

Transaction

Net proceeds from the Offerings totalled $282.5 million. Approximately
$60.6 million of the net proceeds were retained by the MONY Group and the
balance of approximately $221.9 million was contributed to MONY Life.

Of the net proceeds contributed by the MONY Group to MONY Life,
approximately $168.2 million is for use by MONY Life in its general operations,
approximately $13.2 million was used to fund policy credits required to be
credited to Eligible Policyholders pursuant to the Plan, and $40.5 million
represents a

F-30
<PAGE> 114
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

reimbursement for the estimated after-tax cost of expenses incurred by MONY Life
to effect the Demutualization, as required by the New York Insurance Law.

Of the net proceeds retained by the MONY Group, approximately $2.5 million
was used to pay cash to Eligible Policyholders who received cash as described in
the Plan (other than pursuant to an expression of a preference to receive cash),
$10.0 million is for working capital for the MONY Group, $30.0 million is to be
used to pay dividends on the MONY Group's common stock and $18.1 million was
used by the MONY Group to pay cash to eligible policyholders pursuant to an
expression of a preference to receive cash in accordance with the Plan.

In connection with the Demutualization on the Plan Effective Date, eligible
policyholders received, in the aggregate, approximately $20.6 million of cash,
$13.2 million of policy credits and 34.3 million shares of common stock of the
MONY Group in exchange for their membership interests in MONY. In conjunction
with the Offerings, approximately 12.9 million shares of the common stock of
MONY Group were issued at an initial public offering of $23.50 per share. The
Demutualization was accounted for as a reorganization. Accordingly, the
Company's retained earnings at the Plan Effective Date (net of the
aforementioned cash payments and policy credits which were charged directly to
retained earnings) were reclassified to "Common stock" and "Capital in excess of
par".

In addition, the capital of the MONY Group includes $10.0 million relating
to the Warrants (see Note 2), which as a subsidiary of MONY prior to the Plan
Effective Date, was recorded in MONY's consolidated financial statements as
minority interest.

Valuation of Investments and Realized Gains and Losses

All of the Company's fixed maturity securities are classified as
available-for-sale and are reported at estimated fair value. The Company's
equity securities are comprised of investments in common stocks and limited
partnership interests. The Company's investments in common stocks are classified
as available-for-sale and are reported at estimated fair value. The Company
accounts for its investments in limited partnership interests in accordance with
the equity method of accounting or the cost method of accounting depending upon
the Company's percentage of ownership of the partnership and the date it was
acquired. In general, partnership interests acquired after May 18, 1995 are
accounted for in accordance with the equity method of accounting if the
Company's ownership interest exceeds 3 percent, whereas, if the partnership was
acquired prior to May 18, 1995, the equity method would be applied only if the
Company's ownership interest exceeded 20 percent. In all other circumstances the
Company accounts for its investment in limited partnership interests in
accordance with the cost method. Unrealized gains and losses on fixed maturity
securities and common stocks are reported as a separate component of other
comprehensive income, net of deferred income taxes and an adjustment for the
effect on deferred policy acquisition costs that would have occurred if such
gains and losses had been realized. The cost of fixed maturity securities and
common stock is adjusted for impairments in value deemed to be other than
temporary. These adjustments are reflected as realized losses on investments.
Realized gains and losses on sales of investments are determined on the basis of
specific identification.

Mortgage loans on real estate are stated at their unpaid principal
balances, net of valuation allowances. Valuation allowances are established for
the excess of the carrying value of a mortgage loan over its estimated fair
value when the loan is considered to be impaired. Mortgage loans are considered
to be impaired when, based on current information and events, it is probable
that the Company will be unable to collect all amounts due according to the
contractual terms of the loan agreement. Estimated fair value is based on either
the present value of expected future cash flows discounted at the loan's
original effective interest rate, or the loan's observable market price (if
considered to be a practical expedient), or the fair value of the collateral if
the loan is collateral dependent and if foreclosure of the loan is considered
probable. The provision for loss is reported as a realized loss on investment.
Loans in foreclosure and loans considered to be impaired, other than
restructured loans, are placed on non-accrual status. Interest received on
non-accrual status mortgage loans is
F-31
<PAGE> 115
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

included in investment income in the period received. Interest income on
restructured mortgage loans is accrued at the restructured loans' interest rate.

Real estate held for investment, as well as related improvements, are
generally stated at cost less depreciation. Depreciation is determined using the
straight-line method over the estimated useful life of the asset (which may
range from 5 to 40 years). Cost is adjusted for impairment whenever events or
changes in circumstances indicate that the carrying amount of the asset may not
be recoverable. In performing the review for recoverability, management
estimates the future cash flows expected from real estate investments, including
the proceeds on disposition. If the sum of the expected undiscounted future cash
flows is less than the carrying amount of the real estate, an impairment loss is
recognized. Impairment losses are based on the estimated fair value of the real
estate, which is generally computed using the present value of expected future
cash flows from the real estate discounted at a rate commensurate with the
underlying risks. Real estate acquired in satisfaction of debt is recorded at
estimated fair value at the date of foreclosure. Real estate that management
intends to sell is classified as "to be disposed of". Real estate to be disposed
of is reported at the lower of its current carrying value or estimated fair
value less estimated sales costs. Changes in reported values relating to real
estate to be disposed of and impairments of real estate held for investment are
reported as realized gains or losses on investments.

Policy loans are carried at their unpaid principal balances. Cash and cash
equivalents include cash on hand, amounts due from banks and highly liquid debt
instruments with an original maturity of three months or less.

Recognition of Insurance Revenue and Related Benefits

Premiums from participating and non-participating traditional life, health
and annuity policies with life contingencies are recognized as premium income
when due. Benefits and expenses are matched with such income so as to result in
the recognition of profits over the life of the contracts. This match is
accomplished by means of the provision for liabilities for future policy
benefits and the deferral and subsequent amortization of policy acquisition
costs.

Premiums from universal life and investment-type contracts are reported as
deposits to policyholders' account balances. Revenue from these types of
products consist of amounts assessed during the period against policyholders'
account balances for policy administration charges, cost of insurance and
surrender charges. Policy benefits charged to expense include benefit claims
incurred in the period in excess of the related policyholders' account balance.

Deferred Policy Acquisition Costs ("DAC")

The costs of acquiring new business, principally commissions, underwriting,
agency, and policy issue expenses, all of which vary with and are primarily
related to the production of new business, are deferred.

For participating traditional life policies, DAC is amortized over the
expected life of the contracts (30 years) as a constant percentage based on the
present value of estimated gross margins expected to be realized over the life
of the contracts using the expected investment yield. At December 31, 1999, the
expected investment yield was 7.31%, for the year 2000 with subsequent years
grading down to an ultimate aggregate yield of 7.12% in year 2013. Estimated
gross margins include anticipated premiums and investment results less claims
and administrative expenses, changes in the net level premium reserve and
expected annual policyholder dividends.

For universal life products and investment-type products, DAC is amortized
over the expected life of the contracts (ranging from 15 to 30 years) as a
constant percentage based on the present value of estimated gross profits
expected to be realized over the life of the contracts using the initial locked
in discount rate. The

F-32
<PAGE> 116
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

discount rate for all products is 8%. Estimated gross profits arise principally
from investment results, mortality and expense margins and surrender charges.

DAC is subject to recoverability testing at the time of policy issuance and
loss recognition testing at the end of each accounting period. The effect on the
amortization of DAC of revisions in estimated experience is reflected in
earnings in the period such estimates are revised. In addition, the effect on
the DAC asset that would result from the realization of unrealized gains
(losses) is recognized through an offset to Other Comprehensive Income as of the
balance sheet date.

Future Policy Benefits and Policyholders' Account Balances

Future policy benefit liabilities for participating traditional life
policies are calculated using a net level premium method on the basis of
actuarial assumptions equal to guaranteed mortality and dividend fund interest
rates. The liability for annual dividends represents the accrual of annual
dividends earned. Dividend fund interest assumptions range from 2.0 percent to
5.5 percent.

Policyholders' account balances for universal life and investment-type
contracts represent an accumulation of gross premium payments plus credited
interest less expense and mortality charges and withdrawals. The weighted
average interest crediting rate for universal life products was approximately
5.8%, 5.7% and 5.8% for the years ended December 31, 1999, 1998, and 1997,
respectively. The weighted average interest crediting rate for investment-type
products was approximately 5.1%, 5.2% and 5.4% for the years ended December 31,
1999, 1998, and 1997, respectively.

Dividends to Policyholders

Dividends to policyholders, which are substantially all on the Closed Block
Business (see Note 3) are determined annually by the Board of Directors of MONY
Life. The aggregate amount of policyholders' dividends is related to actual
interest, mortality and morbidity for the year.

Participating Business

At December 31, 1999 and 1998, participating business, substantially all of
which is in the Closed Block, represented approximately 63.5% and 72.6% of the
Company's life insurance in force, and 81.2% and 84.2% of the number of life
insurance policies in force, respectively. For each of the years ended December
31, 1999 and 1998, participating business, represented approximately 95.9% and
99.7%, respectively, of life insurance premiums.

Property, Equipment, and Leasehold Improvements

Property, equipment and leasehold improvements, which are reported in Other
Assets, are stated at cost less accumulated depreciation and amortization.
Depreciation is determined using the straight-line method over the estimated
useful lives of the related assets which generally range from 3 to 40 years.
Amortization of leasehold improvements is determined using the straight-line
method over the lesser of the unexpired lease term or the estimated useful life
of the improvement.

Accumulated depreciation of property and equipment and amortization of
leasehold improvements was $38.3 million and $71.0 million at December 31, 1999
and 1998, respectively. Related depreciation and amortization expense was $16.6
million, $11.4 million, and $8.8 million for the years ended December 31, 1999,
1998, and 1997, respectively.

F-33
<PAGE> 117
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

Federal Income Taxes

The Company files a consolidated federal income tax return with its life
and non-life affiliates except Sagamore Financial Corporation and its
subsidiaries. Deferred income tax assets and liabilities are recognized based on
the difference between financial statement carrying amounts and income tax bases
of assets and liabilities using enacted income tax rates and laws.

Reinsurance

The Company has reinsured certain of its life insurance and investment
contracts with other insurance companies under various agreements. Amounts due
from reinsurers are estimated based on assumptions consistent with those used in
establishing the liabilities related to the underlying reinsured contracts.
Policy and contract liabilities are reported gross of reserve credits. Gains on
reinsurance are deferred and amortized into income over the remaining life of
the underlying reinsured contracts.

In determining whether a reinsurance contract qualifies for reinsurance
accounting, Statement of Financial Accounting Standards ("SFAS") No. 113
requires that there be a "reasonable possibility" that the reinsurer may realize
a "significant loss" from assuming insurance risk under the contract. In making
this assessment, the Company projects the results of the policies reinsured
under the contract under various scenarios and assesses the probability of such
results actually occurring. The projected results represent the present value of
all the cash flows under the reinsurance contract. The Company generally defines
a "reasonable possibility" as having a probability of at least 10%. In assessing
whether the projected results of the reinsured business constitute a
"significant loss", the Company considers: (i) the ratio of the aggregate
projected loss, discounted at an appropriate rate of interest (the "aggregate
projected loss"), to an estimate of the reinsurer's investment in the contract,
as hereafter defined, and (ii) the ratio of the aggregate projected loss to an
estimate of the total premiums to be received by the reinsurer under the
contract discounted at an appropriate rate of interest.

The reinsurer's investment in a reinsurance contract consists of amounts
paid to the ceding company at the inception of the contract (e.g. expense
allowances and the excess of liabilities assumed by the reinsurer over the
assets transferred to the reinsurer under the contract) plus the amount of
capital required to support such business consistent with prudent business
practices, regulatory requirements, and the reinsurer's credit rating. The
Company estimates the capital required to support such business based on what it
considers to be an appropriate level of risk-based capital in light of
regulatory requirements and prudent business practices.

Separate Accounts

Separate accounts are established in conformity with insurance laws and are
generally not chargeable with liabilities that arise from any other business of
the Company. Separate account assets are subject to general account claims only
to the extent that the value of such assets exceeds the separate account
liabilities. Investments held in separate accounts and liabilities of the
separate accounts are reported separately as assets and liabilities.
Substantially all separate account assets are reported at estimated fair value.
Investment income and gains or losses on the investments of separate accounts
accrue directly to contractholders and, accordingly, are not reflected in the
Company's consolidated statements of income and cash flows. Fees charged to the
separate accounts by the Company (including mortality charges, policy
administration fees and surrender charges) are reflected in the Company's
revenues.

Consolidated Statements of Cash Flows -- Non-cash Transactions

For the years ended December 31, 1999, 1998, and 1997, respectively, real
estate of $27.0 million, $5.0 million, and $14.4 million was acquired in
satisfaction of debt (including the Closed Block of $22.0 million). At December
31, 1999 and 1998, the Company owned real estate acquired in satisfaction of
debt of $121.0

F-34
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MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

million and $143.2 million, respectively. Other non-cash transactions, which are
reflected in the statement of cash flows as a reconciling item from net income
to net cash provided by operating activities, consisted primarily of stock
distributions from the Company's partnership investments and payment-in-kind for
interest due on certain fixed maturity securities.

Extraordinary Item -- Demutualization Expenses

The accompanying consolidated statements of income and comprehensive income
reflect extraordinary charges (net of taxes) of $2.0 million and $27.2 million
for the year ended December 31, 1999 and 1998, respectively. Costs incurred in
1998 primarily include the fees of financial, legal, actuarial and accounting
advisors to the Company and to the New York Insurance Department as well as
printing and postage for communication with policyholders. Costs incurred in
1999 primarily relate to expenses incurred in connection with a commission-free
sale and purchase program (the "Program") offered to shareholders pursuant to
the Plan. Under the Program, shareholders who own fewer than 100 shares were
able to sell their shares or purchase additional shares to round up to 100
shares without incurring commissions.

New Accounting Pronouncements

In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." SFAS 133 requires all derivatives to be
recognized in the statement of financial position as either assets or
liabilities and measured at fair value. The corresponding derivative gains and
losses should be reported based on the hedge relationship that exists, if there
is one. Changes in the fair value of derivatives that are not designated as
hedges or that do not meet the hedge accounting criteria in SFAS 133, are
required to be reported in earnings. SFAS 133, as amended by SFAS 137, is
effective for all fiscal quarters of the fiscal years beginning after June 15,
2000. SFAS 137 delayed the effective date of SFAS 133 by one year. Adoption of
SFAS 133 is not expected to have a material effect on the Company's financial
condition or results of operations.

5. SEGMENT INFORMATION:

Management considers the Company's mutual fund operations to be an integral
part of the products offered by the Company's accumulation products segment,
since substantially all the mutual funds sold by the Company are offered
through, and in conjunction with, the products marketed by the accumulation
products segment. Accordingly, for management purposes (including, performance
assessment and making decisions regarding the allocation of resources), the
Company aggregates its mutual fund operations with its accumulation products
segment.

Products comprising the protection products segment primarily include a
wide range of insurance products, including: whole life, term life, universal
life, variable universal life, corporate-owned life insurance, last survivor
variable universal life, last survivor universal life, group universal life and
special-risk products. In addition, included in the protection products segment
are: (i) the assets and liabilities transferred pursuant to

F-35
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MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

the Group Pension Transaction, as well as the Group Pension Profits (see Note
10), (ii) the Closed Block assets and liabilities, as well as the Contribution
from the Closed Block, and (iii) the Company's disability income insurance
business. Products comprising the accumulation products segment primarily
include flexible premium variable annuities, single premium deferred annuities,
immediate annuities, proprietary mutual funds, investment management services,
and certain other financial services products. The Company's other products
segment primarily consists of the securities broker-dealer operation, the
insurance brokerage operation, and the run-off businesses. The securities
broker-dealer operation markets the Company's proprietary investment products
and, in addition, provides customers of the Company's protection and
accumulation products access to other non-proprietary investment products
(including stocks, bonds, limited partnership interests, tax-exempt unit
investment trusts and other investment securities). The insurance brokerage
operation provides the Company's field agency force with access to life,
annuity, small group health and specialty insurance products written by other
carriers to meet the insurance and investment needs of its customers. The
run-off businesses primarily consist of group life and health business, as well
as group pension business that was not included in the Group Pension Transaction
(see Note 10).

Set forth in the table below is certain financial information with respect
to the Company's operating segments as of and for each of the years ended
December 31, 1999, 1998 and 1997, as well as amounts not allocated to the
segments. Except for various allocations discussed below, the accounting
policies of the segments are the same as those described in the summary of
significant accounting policies. The Company evaluates the performance of each
operating segment based on profit or loss from operations before income taxes
and nonrecurring items (e.g. items of an unusual or infrequent nature). The
Company does not allocate certain non-recurring items to the segments. In
addition, all segment revenues are from external customers.

Assets have been allocated to the segments in amounts sufficient to support
the associated liabilities of each segment. In addition, capital is allocated to
each segment in amounts sufficient to maintain a targeted regulatory risk-based
capital ("RBC") level for each segment (see Note 19). Allocations of net
investment income and net realized gains on investments were based on the amount
of assets allocated to each segment. Other costs and operating expenses were
allocated to each of the segments based on: (i) a review of the nature of such
costs, (ii) time studies analyzing the amount of employee compensation costs
incurred by each segment, and (iii) cost estimates included in the Company's
product pricing. Substantially all non-cash transactions and impaired real
estate (including real estate acquired in satisfaction of debt) have been
allocated to the Protection Products segment (see Note 4).

Amounts reported as "unallocated amounts" in the table below primarily
relate to: (i) contracts issued by MONY Life relating to its employee benefit
plans, and (ii) a one-time restructuring charge in 1999 of $59.7 million pre-tax
relating to the Company's early retirement program (see Note 22).

SEGMENT SUMMARY FINANCIAL INFORMATION

<TABLE>
<CAPTION>
1999 1998 1997
--------- --------- ---------
($ IN MILLIONS)
<S> <C> <C> <C>
PREMIUMS:
Protection Products....................................... $ 82.0 $ 602.2 $ 817.0
Accumulation Products..................................... 0.9 2.6 5.0
Other Products............................................ 13.4 16.9 16.6
--------- --------- ---------
$ 96.3 $ 621.7 $ 838.6
--------- --------- ---------
</TABLE>

F-36
<PAGE> 120
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

<TABLE>
<CAPTION>
1999 1998 1997
--------- --------- ---------
($ IN MILLIONS)
<S> <C> <C> <C>
UNIVERSAL LIFE AND INVESTMENT-TYPE PRODUCT POLICY FEES:
Protection Products....................................... $ 122.3 $ 86.2 $ 74.9
Accumulation Products..................................... 73.3 64.1 50.9
Other Products............................................ 0.7 1.3 1.5
--------- --------- ---------
$ 196.3 $ 151.6 $ 127.3
--------- --------- ---------
NET INVESTMENT INCOME AND NET REALIZED GAINS (LOSSES) ON
INVESTMENTS:
Protection Products....................................... $ 445.1 $ 655.5 $ 611.9
Accumulation Products..................................... 132.4 136.3 131.4
Other Products............................................ 67.3 63.0 59.9
Unallocated amounts....................................... 2.3 2.2 1.9
--------- --------- ---------
$ 647.1 $ 857.0 $ 805.1
--------- --------- ---------
OTHER INCOME:
Protection Products(1)(7)................................. $ 123.0 $ 85.5 $ 94.9
Accumulation Products..................................... 95.1 72.8 52.1
Other Products............................................ 80.7 61.1 53.1
Unallocated amounts....................................... 4.8 5.7 5.3
--------- --------- ---------
$ 303.6 $ 225.1 $ 205.4
--------- --------- ---------
AMORTIZATION OF DEFERRED POLICY ACQUISITION COSTS:
Protection Products....................................... $ 39.6 $ 92.4 $ 146.8
Accumulation Products..................................... 30.7 29.6 34.4
--------- --------- ---------
$ 70.3 $ 122.0 $ 181.2
--------- --------- ---------
BENEFITS TO POLICYHOLDERS:(2)
Protection Products....................................... $ 141.7 $ 663.4 $ 821.1
Accumulation Products..................................... 73.7 79.6 92.5
Other Products............................................ 33.7 41.6 45.2
Unallocated amounts....................................... 4.5 7.9 7.2
--------- --------- ---------
$ 253.6 $ 792.5 $ 966.0
--------- --------- ---------
OTHER OPERATING COSTS AND EXPENSES:
Protection Products....................................... $ 277.4 $ 287.1 $ 281.0
Accumulation Products..................................... 105.7 84.4 66.3
Other Products............................................ 93.1 80.2 66.2
Unallocated amounts....................................... 60.4 -- 3.7
--------- --------- ---------
$ 536.6 $ 451.7 $ 417.2
--------- --------- ---------
INCOME BEFORE INCOME TAXES:
Protection Products....................................... $ 315.0 $ 193.7 $ 129.0
Accumulation Products..................................... 89.6 80.5 44.1
Other Products............................................ 34.1 19.2 18.3
Unallocated amounts....................................... (57.8) -- (3.7)
--------- --------- ---------
$ 380.9 $ 293.4 $ 187.7
--------- --------- ---------
</TABLE>

F-37
<PAGE> 121
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

<TABLE>
<CAPTION>
1999 1998 1997
--------- --------- ---------
($ IN MILLIONS)
<S> <C> <C> <C>
ASSETS:
Protection Products(3)(8)................................. $16,181.4 $16,580.9 $15,776.5
Accumulation Products..................................... 6,175.0 6,171.3 5,757.9
Other Products............................................ 1,187.6 1,256.2 1,234.2
Unallocated amounts....................................... 1,176.1 890.9 842.7
--------- --------- ---------
$24,720.1 $24,899.3 $23,611.3
--------- --------- ---------
DEFERRED POLICY ACQUISITION COSTS:
Protection Products(9).................................... $ 1,094.9 $ 857.6 $ 874.1
Accumulation Products..................................... 153.3 136.7 133.0
--------- --------- ---------
$ 1,248.2 $ 994.3 $ 1,007.1
--------- --------- ---------
POLICYHOLDERS' LIABILITIES:
Protection Products(4)(10)................................ $10,231.7 $10,267.0 $10,105.7
Accumulation Products..................................... 1,236.3 1,318.6 1,416.1
Other Products............................................ 418.9 455.6 513.4
Unallocated amounts....................................... 17.4 17.4 16.5
--------- --------- ---------
$11,904.3 $12,058.6 $12,051.7
--------- --------- ---------
SEPARATE ACCOUNT LIABILITIES:(5)
Protection Products(6).................................... $ 3,843.5 $ 4,056.8 $ 3,720.1
Accumulation Products..................................... 4,548.9 4,452.6 4,002.6
Other Products............................................ 604.2 621.9 547.7
Unallocated amounts....................................... 832.3 776.4 736.0
--------- --------- ---------
$ 9,828.9 $ 9,907.7 $ 9,006.4
========= ========= =========
</TABLE>

---------------
(1) Includes Group Pension Profits of $63.0 million, $56.8 million and $60.0
million for the years ended December 31, 1999, 1998 and 1997, respectively.
(See Note 10).

(2) Includes interest credited to policyholders' account balances.

(3) Includes assets transferred in the Group Pension Transaction of $5,109.8
million, $5,751.8 million and $5,714.9 million as of December 31, 1999,
1998 and 1997, respectively.

(4) Includes policyholder liabilities transferred in the Group Pension
Transaction of $1,645.7 million, $1,824.9 million and $1,991.0 million as
of December 31, 1999, 1998 and 1997 respectively.

(5) Each segment includes separate account assets in an amount not less than
the corresponding liability reported.

(6) Includes separate account liabilities transferred in the Group Pension
Transaction of $3,432.7 million, $3,829.6 million and $3,614.0 million as
of December 31, 1999, 1998 and 1997, respectively.

(7) Includes $44.8 million and $5.7 million relating to the Contribution from
the Closed Block for the year ended December 31, 1999 and for period from
November 16, 1998 through December 31, 1998 and the year ended December 31,
1999, respectively (see Note 3 and Note 20).

(8) Includes Closed Block assets of $6,182.1 million and $6,161.2 million as of
December 31, 1999 and 1998, respectively (see Note 3 and Note 20).

(9) Includes deferred policy acquisition costs allocated to the Closed Block of
$689.9 million and $554.6 million as of December 31, 1999 and 1998,
respectively (see Note 3 and Note 20).

F-38
<PAGE> 122
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

(10) Includes Closed Block policyholders' liabilities of $7,241.0 million and
$7,177.1 million as of December 31, 1999 and 1998, respectively (see Note 3
and Note 20).

Substantially all of the Company's revenues are derived in the United
States. Revenue derived from outside the United States is not material and
revenue derived from any single customer does not exceed 10 percent of total
consolidated revenues.

Following is a summary of revenues by product for the years ended December
31, 1999, 1998 and 1997:

<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
PREMIUMS:
Individual life(1)....................................... $ 81.9 $602.5 $742.4
Disability income insurance.............................. 0.6 0.2 74.6
Group insurance.......................................... 13.4 16.9 16.6
Other.................................................... 0.4 2.1 5.0
------ ------ ------
Total.................................................. $ 96.3 $621.7 $838.6
====== ====== ======
UNIVERSAL LIFE AND INVESTMENT-TYPE PRODUCT POLICY FEES:
Universal life........................................... $ 73.2 $ 55.4 $ 48.3
Variable universal life.................................. 37.6 20.4 17.8
Group universal life..................................... 11.5 10.4 8.7
Individual variable annuities............................ 72.8 63.4 50.0
Individual fixed annuities............................... 1.2 2.0 2.5
------ ------ ------
Total.................................................. $196.3 $151.6 $127.3
====== ====== ======
</TABLE>

---------------
(1) Excludes revenues from individual life in the Closed Block of $620.8 million
and $100.1 million, for the year ended December 31, 1999 and for the period
from November 16, 1998 through December 31, 1998.

6. DEFERRED POLICY ACQUISITION COSTS:

Policy acquisition costs deferred and amortized in 1999, 1998 and 1997 are
as follows:

<TABLE>
<CAPTION>
1999 1998 1997
------ -------- --------
($ IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year............................ $439.7 $1,007.1 $1,095.2
Balance transferred to the Closed Block at November
16, 1998............................................ -- (562.3) --
------ -------- --------
439.7 444.8 1,095.2
------ -------- --------
Cost deferred during the year......................... 148.7 124.7 141.0
Amortized to expense during the year.................. (70.3) (122.0) (181.2)
Effect on DAC from unrealized gains (losses) (see Note
4).................................................. 40.2 (7.8) (47.9)
------ -------- --------
Balance, end of the year.............................. $558.3 $ 439.7 $1,007.1
====== ======== ========
</TABLE>

7. PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS:

Pension 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

F-39
<PAGE> 123
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

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. Effective June 15, 1999, prospective defined contribution accruals
in the defined benefit plan ceased and were redirected to the Investment Plan
Supplement for Employees. The Company did not make any contribution in the
current year or prior year under Section 404 of the Internal Revenue Code
("IRC") because the plan was fully funded under Section 412 of the IRC.

During 1999, the Company amended its Qualified Pension plan which reduced
certain benefit liabilities payable thereunder. The amendment resulted in a
decrease of $27.0 million in the plan's projected benefit obligation.

In July 1999, the Company offered special benefits to its employees who
elected by August 15, 1999, voluntary termination of employment (special
termination benefits). The special termination benefits represented benefits in
excess of that which would normally be due to employees electing to retire
early. These excess benefits were calculated based on grants of additional years
of service and age used in the benefit calculation. All of the special
termination benefits relating to the Company's qualified plan, which aggregated
$30.6 million, will be paid from the Plan's assets. All the benefits paid
relating to the Company's non-qualified plan, which aggregated $19.4 million,
will be paid directly from the Company's assets. As a result of the
aforementioned early retirement offer, the Company recorded a charge of $59.7
million in 1999 which included the aforementioned expenses in addition to
severence and other related expenses and reflected this amount in Other
Operating Costs and Expenses.

The assets of the qualified pension plan are primarily invested in MONY
Pooled Accounts which include common stock, real estate, private placement debt
securities and bonds. At December 31, 1999 and 1998, $495.7 million and $457.3
million were invested in the MONY Pooled Accounts. Benefits of $40.4 million,
$26.3 million and $24.2 million were paid by this plan for the years ended
December 31, 1999, 1998, and 1997, respectively.

The Company also sponsors a non-qualified employee excess pension plan,
which provides both defined benefits and defined contribution accruals in excess
of Internal Revenue Service limits to certain employees. The benefits are based
on years of service and the employees final average annual compensation. Pension
benefits are paid from Company's general accounts.

Postretirement Benefits --

The Company provides certain health care and life insurance benefits for
retired employees and field underwriters. The Company amortizes its unamortized
postretirement transition obligation over a period of twenty years.

Assumed health care cost trend rates typically have a significant effect on
the amounts reported for health care plans. However, under the Company's
postretirement healthcare plan, there is a per capita limit on the Company's
healthcare costs, as a result, a one-percentage point change in the assumed
healthcare cost trend rates would have an immaterial affect on amounts reported.

F-40
<PAGE> 124
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

The following presents the change in the benefit obligation, change in plan
assets and other information with respect to the Company's qualified and
non-qualified defined benefit pension plans and other benefits which represents
the Company's postretirement benefit obligation:

<TABLE>
<CAPTION>
PENSION BENEFITS OTHER BENEFITS
---------------- -----------------
1999 1998 1999 1998
------ ------ ------ -------
($ IN MILLIONS)
<S> <C> <C> <C> <C>
CHANGE IN BENEFIT OBLIGATION:
Benefit obligation at beginning of year........ $398.3 $390.1 $100.0 $ 101.1
Service cost................................... 11.7 14.4 2.0 1.3
Interest cost.................................. 27.3 26.3 7.2 6.4
Curtailment gain............................... (3.8) -- -- --
Terminated benefits............................ 50.0 -- -- --
Plan amendment................................. (27.0) -- -- --
Actuarial (gain)/loss.......................... (38.8) 2.0 (4.0) (3.0)
Benefits paid.................................. (44.4) (34.5) (7.5) (5.8)
------ ------ ------ -------
Benefit obligation at end of year.............. 373.3 398.3 97.7 100.0
------ ------ ------ -------
CHANGE IN PLAN ASSETS:
Fair value of plan assets at beginning of
year......................................... $459.8 $432.5 $ -- $ --
Actual return on plan assets................... 77.4 56.7 -- --
Employer contribution.......................... 6.7 5.1 7.5 5.8
Benefits and expenses paid..................... (45.9) (34.5) (7.5) (5.8)
------ ------ ------ -------
Fair value of plan assets at end of year....... 498.0 459.8 -- --
------ ------ ------ -------
Funded status.................................. 124.7 61.5 (97.7) (100.0)
Unrecognized actuarial loss/(gain)............. (57.2) 16.4 7.4 11.1
Unamortized transition obligation.............. (13.0) (19.8) 39.4 42.7
Unrecognized prior service cost................ (15.6) 9.7 (1.0) --
------ ------ ------ -------
Net amount recognized.......................... $ 38.9 $ 67.8 $(51.9) $ (46.2)
====== ====== ====== =======
AMOUNTS RECOGNIZED IN THE STATEMENT OF
FINANCIAL POSITION CONSIST OF:
Prepaid benefit cost........................... $ 93.8 $103.0 $ -- $ --
Accrued benefit liability...................... (55.0) (39.5) (51.9) (46.2)
Intangible asset............................... 0.1 1.4 -- --
Accumulated other comprehensive income......... -- 2.9 -- --
------ ------ ------ -------
Net amount recognized.......................... $ 38.9 $ 67.8 $(51.9) $ (46.2)
====== ====== ====== =======
</TABLE>

The Company's qualified plan had assets of $498.0 million and $459.8
million at December 31, 1999 and 1998, respectively. The projected benefit
obligation and accumulated benefit obligation for the qualified plan were $311.0
million and $285.4 million at December 31, 1999 and $350.8 million and $311.5
million at December 31, 1998, respectively.

The projected benefit obligation and accumulated benefit obligation for the
non-qualified defined benefit pension plan, which is unfunded, were $62.3
million and $55.0 million at December 31, 1999 and $47.5 million and $39.5
million at December 31, 1998, respectively.

F-41
<PAGE> 125
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

<TABLE>
<CAPTION>
PENSION
BENEFITS OTHER BENEFITS
------------ --------------
1999 1998 1999 1998
---- ---- ----- -----
<S> <C> <C> <C> <C>
WEIGHTED-AVERAGE ASSUMPTIONS AS OF DECEMBER 31:
Discount rate........................................... 8.0% 6.75% 8.0% 6.75%
Expected return on plan assets.......................... 10.0% 10.0% -- --
Rate of compensation increase........................... 5.0% 5.0% 5.0% 5.0%
</TABLE>

For measurements purposes, a 11% percent annual rate of increase in the per
capita cost of covered health care benefits was assumed for 1999. The rate was
assumed to decrease gradually to 6% percent for 2010 and remain at that level
thereafter.

Components of net periodic benefit cost for the pension and other
post-retirement plans are as follows:

<TABLE>
<CAPTION>
PENSION BENEFITS OTHER BENEFITS
------------------------ ---------------------
1999 1998 1997 1999 1998 1997
------ ------ ------ ----- ----- -----
($ IN MILLIONS)
<S> <C> <C> <C> <C> <C> <C>
COMPONENTS OF NET PERIODIC BENEFIT
COST
Service cost......................... $ 11.7 $ 14.4 $ 12.9 $ 2.0 $ 1.3 $ 1.0
Interest cost........................ 27.3 26.3 27.5 7.2 6.4 6.7
Expected return on plan assets....... (44.2) (41.8) (38.0) -- -- --
Amortization of prior service cost... (0.8) 1.0 1.0 (0.1) -- --
Curtailment gain..................... (3.8) -- -- -- -- --
Special Termination Benefits......... 50.0 -- -- -- -- --
Recognized net actuarial loss........ -- -- 0.1 1.1 0.1 --
Amortization of Transition Items..... (7.5) (7.5) (7.5) 3.1 3.1 3.1
------ ------ ------ ----- ----- -----
Net periodic benefit cost............ $ 32.7 $ (7.6) $ (4.0) $13.3 $10.9 $10.8
====== ====== ====== ===== ===== =====
</TABLE>

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
contribution of up to 10% of earnings are allowed. At December 31, 1999 and
1998, the fair value of plan assets was $250.3 million and $222.2 million,
respectively. For the years ended December 31, 1999, 1998, and 1997, the Company
contributed $3.1 million, $3.2 million and $3.3 million to the plan,
respectively, which amounts are reflected in Other Operating Costs and Expenses.

The Company has a non-qualified defined contribution plan, which is
unfunded. The non-qualified defined contribution plan projected benefit
obligation which equaled the accumulated benefit obligation was $62.2 million
and $48.4 million as of December 31, 1999 and 1998, respectively. The
non-qualified defined contribution plan's net periodic expense was $9.3 million,
$6.6 million and $9.4 million for the years ended December 31, 1999, 1998 and
1997, respectively.

The Company also has incentive savings plans in which substantially all
employees and career field underwriters are eligible to participate. The Company
matches field underwriter contributions up to 2% of eligible compensation and
may also make an additional profit sharing contribution for non-officer
employees. As with the Employee Excess Plan, the Company also sponsors
non-qualified excess defined contribution plans for both the field underwriter
retirement plan and the incentive savings plan for field underwriters.

F-42
<PAGE> 126
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

8. FEDERAL INCOME TAXES:

The Holding Company files a consolidated federal income tax return with its
life and non-life affiliates, except Sagamore Financial Corporation and its
subsidiaries.

Federal income taxes have been calculated in accordance with the provisions
of the Internal Revenue Code of 1986, as amended. A summary of the Federal
income tax expense (benefit) is presented below:

<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
Federal income tax (benefit) expense:
Current................................................ $ 73.9 $ 84.6 $104.1
Deferred............................................... 57.5 18.1 (46.8)
------ ------ ------
Total............................................... $131.4 $102.7 $ 57.3
====== ====== ======
</TABLE>

Federal income taxes reported in the consolidated statements of income are
different from the amounts determined by multiplying the earnings before federal
income taxes by the statutory federal income tax rate of 35%. The sources of the
difference and the tax effects of each are as follows:

<TABLE>
<CAPTION>
1999 1998 1997
------ ------ -----
($ IN MILLIONS)
<S> <C> <C> <C>
Tax at statutory rate..................................... $133.3 $102.7 $65.7
Differential earnings amount.............................. -- -- (5.8)
Dividends received deduction.............................. (1.7) (1.4) (0.5)
Other..................................................... (0.2) 1.4 (2.1)
------ ------ -----
Provision for income taxes................................ $131.4 $102.7 $57.3
====== ====== =====
</TABLE>

The Company's federal income tax returns for years through 1993 have been
examined by the Internal Revenue Service ("IRS"). No material adjustments were
proposed by the IRS as a result of these examinations. In the opinion of
management, adequate provision has been made for any additional taxes which may
become due with respect to open years.

F-43
<PAGE> 127
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

The components of deferred tax liabilities and assets at December 31, 1999
and 1998 are as follows:

<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
Deferred policy acquisition costs........................... $145.0 $127.9
Fixed maturities and equity securities...................... 34.5 68.2
Other, net(1)............................................... 56.4 71.3
Nonlife subsidiaries........................................ 17.2 8.3
------ ------
Total deferred tax liabilities.............................. 253.1 275.7
------ ------
Policyholder and separate account liabilities............... 155.6 113.8
Accrued expenses............................................ 50.8 70.4
Deferred compensation and benefits.......................... 38.3 24.0
Policyholder dividends...................................... -- 39.8
Real estate and mortgages................................... 25.3 29.4
------ ------
Total deferred tax assets................................... 270.0 277.4
------ ------
Net deferred tax asset...................................... $ 16.9 $ 1.7
====== ======
</TABLE>

---------------
(1) Includes $3.8 million and $25.7 million at December 31, 1999 and 1998 of
deferred taxes relating to net unrealized gains on fixed maturity securities
in the AEGON Portfolio (see Note 10).

The Company is required to establish a valuation allowance for any portion
of the deferred tax asset that management believes will not be realized. In the
opinion of management, it is more likely than not that it will realize the
benefit of the deferred tax assets and, therefore, no such valuation allowance
has been established.

9. LEASES:

The Company has entered into various operating lease agreements for office
space, 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 $29.6 million in 1999, $24.5 million in 1998 and $25.6 million in
1997. The future minimum rental obligations for the next five years and
thereafter under these leases are: $30.6 million for 2000, $28.2 million for
2001, $27.0 million for 2002, $25.4 million for 2003, $22.6 million for 2004,
and $154.4 for the years thereafter.

10. THE GROUP PENSION TRANSACTION:

On December 31, 1993 (the "Group Pension Transaction Date"), the Company
entered into an agreement (the "Agreement") with AEGON USA, Inc. ("AEGON") under
which the Company transferred a substantial portion of its group pension
business (hereafter referred to as the "Group Pension Transaction"), including
its full service group pension contracts, consisting primarily of tax-deferred
annuity, 401(k) and managed funds lines of business, to AEGON's wholly-owned
subsidiary, AUSA Life Insurance Company, Inc. ("AUSA"). The Company also
transferred to AUSA the corporate infrastructure supporting the group pension
business, including data processing systems, facilities and regional offices.
AUSA was newly formed by AEGON solely for the purpose of facilitating this
transaction. In connection with the transaction, the Company and AEGON 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 will continue to provide certain administrative services to the
Company's remaining group pension contracts not included in the transfer.

F-44
<PAGE> 128
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

In accordance with GAAP, the transaction did not constitute a sale because
the Company retained substantially all the risks and rewards associated with the
Existing Deposits. Accordingly, the Company continues to reflect the transferred
assets and liabilities on its balance sheet under separate captions entitled
"Assets transferred in Group Pension Transaction" and "Liabilities transferred
in Group Pension Transaction". In addition, the Company reports in its GAAP
earnings the profits from the Existing Deposits as discussed below.

Pursuant to the Agreement, MONY receives from AUSA (i) payments on an
annual basis through December 31, 2002 (the "Group Pension Payments") equal to
all of the earnings from the Existing Deposits, (ii) a final payment (the "Final
Value Payment") at December 31, 2002 based on the remaining fair value of the
Existing Deposits, and (iii) a contingent payment (the "New Business Growth
Payment") at December 31, 2002 based on new business growth subsequent to the
Transaction Date. However, the level of new business growth necessary for MONY
to receive the New Business Growth Payment makes it unlikely that MONY will ever
receive any such payment.

With respect to the Group Pension Payments, the annual results from the
Existing Deposits are measured on a basis in accordance with the Agreement (such
basis hereafter referred to as the "Earnings Formula") which is substantially
the same as GAAP, except that: (i) asset impairments on fixed maturity
securities are only recognized when such securities are designated with an NAIC
rating of "6", and (ii) no impairment losses are recognized on mortgage loans
until such loans are disposed of or at the time, and in the calculation, of the
Final Value Payment.

Earnings which emerge from the Existing Deposits pursuant to the
application of the Earnings Formula are recorded in the Company's financial
statements only after adjustments (primarily to recognize asset impairments in
accordance with SFAS Nos. 114 and 115) to reflect such earnings on a basis
entirely in accordance with GAAP (such earnings hereafter referred to as the
"Group Pension Profits"). Losses which arise from the application of the
Earnings Formula for any annual period will be reflected in the Company's
results of operations (after adjustments to reflect such losses in accordance
with GAAP) only up to the amount for which the Company is at risk (as described
below), which at any time is equal to the then outstanding principal amount of
the Series A Notes.

Operating losses reported in any annual period pursuant to the Earnings
Formula are carried forward to reduce any earnings in subsequent years reported
pursuant to the Earnings Formula. Any resultant deficit remaining at December
31, 2002 will be deducted from the Final Value Payment and New Business Growth
Payment, if any, due to the Company. If a deficit still remains, it will be
applied (as provided for in the Agreement) as an offset against the principal
payment due to the Company upon maturity of the Series A Notes.

For the years ended December 31, 1999, 1998 and 1997, AUSA reported
earnings to the Company pursuant to the application of the Earnings Formula of
$35.7 million, $49.8 million, and $55.7 million, respectively, and the Company
recorded Group Pension Profits of $63.0 million, $56.8 million and $60.0
million, respectively. In addition, the Company earned $12.8 million, $12.8
million, and $17.7 million of interest income on the Notes during the
aforementioned years. From 1994 through 1996, the Company reinvested an
aggregate of $169 million of the aforementioned profits and interest in
additional Series A notes (the "Additional Notes") with a face amount equal to
the amount reinvested. The Additional Notes paid

F-45
<PAGE> 129
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

interest at 1% above the two-year U.S. Treasury rate in effect at the time of
their issuance. All of the Additional Notes were redeemed at face value by AEGON
during 1997. At December 31, 1999, the remaining Series A notes held by the
Company consisted of the $150.0 million face amount of Series A Notes it
acquired on December 31, 1993.

The following sets forth certain summarized financial information relating
to the Group Pension Transaction as of and for the periods indicated, including
information regarding: (i) the general account assets transferred to support the
Existing Deposits in the Group Pension Transaction (such assets hereafter
referred to as the "AEGON Portfolio"), (ii) the transferred separate account
assets and liabilities, and (iii) the components of revenue and expense
comprising the Group Pension Profits:

<TABLE>
<CAPTION>
AS OF DECEMBER 31,
--------------------
1999 1998
-------- --------
($ IN MILLIONS)
<S> <C> <C>
ASSETS:
General Account
Fixed maturities: available for sale, at estimated fair
value (amortized cost; $1,532.4 and $1,564.6,
respectively)........................................ $1,510.0 $1,620.2
Mortgage loans on real estate.......................... 98.5 214.8
Real estate held for investment........................ -- 37.9
Real estate to be disposed of.......................... 16.8 --
Cash and cash equivalents.............................. 25.3 21.7
Accrued investment income.............................. 26.5 27.6
-------- --------
Total general account assets........................... 1,677.1 1,922.2
Separate account assets................................... 3,432.7 3,829.6
-------- --------
Total assets......................................... $5,109.8 $5,751.8
======== ========
LIABILITIES:
General Account(1)
Policyholders' account balances........................ $1,645.7 $1,824.9
Other liabilities...................................... 20.7 24.0
-------- --------
Total general account liabilities.................... 1,666.4 1,848.9
Separate account liabilities(2)........................... 3,432.7 3,829.6
-------- --------
Total liabilities.................................... $5,099.1 $5,678.5
======== ========
</TABLE>

---------------
(1) Includes general account liabilities transferred in connection with the
Group Pension Transaction pursuant to indemnity reinsurance of $88.9 million
and $121.7 million as of December 31, 1999 and 1998, respectively.

(2) Includes separate account liabilities transferred in connection with the
Group Pension Transaction pursuant to indemnity reinsurance of $20.3 million
and $33.3 million as of December 31, 1999 and 1998, respectively.

F-46
<PAGE> 130
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,
--------------------------------
1999 1998 1997
-------- -------- --------
($ IN MILLIONS)
<S> <C> <C> <C>
REVENUES:
Product policy fees......................................... $ 24.0 $ 23.3 $ 23.7
Net investment income....................................... 128.4 154.7 169.3
Net realized gains on investments........................... 18.9 7.2 7.1
------ ------ ------
Total revenues............................................ 171.3 185.2 200.1
BENEFITS AND EXPENSES:
Interest credited to policyholders' account balances........ 88.4 108.7 117.3
Other operating costs and expenses.......................... 19.9 19.7 22.8
------ ------ ------
Total benefits and expenses............................... 108.3 128.4 140.1
------ ------ ------
Group Pension Profits..................................... $ 63.0 $ 56.8 $ 60.0
====== ====== ======
</TABLE>

Fixed Maturity Securities

At December 31, 1999 and 1998, there were no fixed maturity securities in
the AEGON Portfolio deemed to have other than temporary impairments in value. In
addition, there were no fixed maturity securities at such dates which have been
non-income producing for the preceding twelve months.

At December 31, 1999 and 1998, there were no problem fixed maturities (as
hereafter defined -- see Note 12) held in the AEGON Portfolio. In addition, at
such dates the carrying value of potential problem fixed maturities held in the
AEGON Portfolio was $3.7 million. Also, none of the fixed maturity securities
held in the AEGON Portfolio at December 31, 1999 and 1998 or prior thereto had
been restructured.

The amortized cost and estimated fair value of fixed maturity securities
held in the AEGON Portfolio, by contractual maturity dates, (excluding scheduled
sinking funds), as of December 31, 1999 are as follows:

<TABLE>
<CAPTION>
AMORTIZED ESTIMATED
COST FAIR VALUE
--------- ----------
($ IN MILLIONS)
<S> <C> <C>
Due in one year or less..................................... $ 91.5 $ 92.5
Due after one year through five years....................... 872.0 856.1
Due after five years through ten years...................... 269.7 262.8
Due after ten years......................................... 30.9 29.7
-------- --------
Subtotal.................................................... 1,264.1 1,241.1
Mortgage and asset backed securities........................ 268.3 268.9
-------- --------
Total..................................................... $1,532.4 $1,510.0
======== ========
</TABLE>

Fixed maturity securities that are not due at a single maturity date have
been included in the preceding table in the year of final maturity. Actual
maturities may differ from contractual maturities because borrowers may have the
right to call or prepay obligations with or without call or prepayment
penalties.

The percentage of fixed maturities with a credit quality of Aaa, Aa or A
was 73.0% and 66.8% at December 31, 1999 and 1998, respectively. The percentage
of fixed maturities rated Baa was 24.6% and 29.3% at December 31, 1999 and 1998,
respectively. There were no fixed maturities in or near default.

The net change in unrealized investment gains (losses) represents the only
component of other comprehensive income generated by the AEGON Portfolio for the
years ended December 31, 1999, 1998, 1997 and prior thereto. The net change in
unrealized investment gains (losses) was $(77.9) million,

F-47
<PAGE> 131
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

$(4.0) million and $(1.5) million for the years ended December 31, 1999, 1998
and 1997, respectively (see Note 11):

Mortgage Loans on Real Estate

Mortgage loans on real estate in the AEGON Portfolio at December 31, 1999
and 1998 consist of the following:

<TABLE>
<CAPTION>
AS OF DECEMBER 31,
------------------
1999 1998
------- -------
($ IN MILLIONS)
<S> <C> <C>
Mortgage loans.............................................. $102.8 $230.8
Valuation allowances........................................ (4.3) (16.0)
------ ------
Mortgage loans, net of valuation allowance.................. $ 98.5 $214.8
====== ======
</TABLE>

An analysis of the valuation allowances with respect to the AEGON Portfolio
for 1999, 1998 and 1997 is as follows:

<TABLE>
<CAPTION>
FOR THE YEAR ENDED
DECEMBER 31,
-----------------------
1999 1998 1997
----- ----- -----
($ IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year.................................. $16.0 $13.6 $22.2
Increase (decrease) in allowance............................ (6.7) 2.9 (5.1)
Reduction due to pay downs and pay offs..................... (1.0) (0.5) (1.6)
Transfers to real estate.................................... (4.0) -- (1.9)
----- ----- -----
Balance, end of year........................................ $ 4.3 $16.0 $13.6
===== ===== =====
</TABLE>

Impaired mortgage loans along with related valuation allowances with
respect to the AEGON Portfolio at December 31, 1999, 1998 and 1997 are as
follows:

<TABLE>
<CAPTION>
AS OF DECEMBER 31,
-------------------------
1999 1998 1997
----- ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
Investment in impaired mortgage loans (before valuation
allowances):
Loans that have valuation allowances.................... $34.3 $ 71.1 $ 56.6
Loans that do not have valuation allowances............. 4.4 4.4 45.8
----- ------ ------
Subtotal............................................. 38.7 75.5 102.4
Valuation allowances...................................... (2.7) (11.4) (5.8)
----- ------ ------
Impaired mortgage loans, net of valuation allowances...... $36.0 $ 64.1 $ 96.6
===== ====== ======
</TABLE>

During the years ended December 31, 1999, 1998, and 1997, the average
recorded investment in impaired mortgage loans with respect to the AEGON
Portfolio was approximately $50.0 million, $80.4 million, and $116.3 million,
respectively. For the years ended December 31, 1999, 1998, and 1997
approximately $2.9 million, $4.5 million, and $6.5 million, respectively, of
interest income on impaired loans with respect to the AEGON Portfolio was
earned.

F-48
<PAGE> 132
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

At December 31, 1999 and 1998, there were no mortgage loans which were
non-income producing for the twelve months preceding such dates with respect to
the AEGON Portfolio.

At December 31, 1999 and 1998 the AEGON Portfolio held restructured
mortgage loans of $36.0 million and $59.7 million, respectively. Interest income
of $2.9 million, $4.0 million, and $6.6 million was recognized on restructured
mortgage loans for the years ended December 31, 1999, 1998, and 1997,
respectively. Gross interest income on these loans that would have been recorded
in accordance with the original terms of such loans amounted to approximately
$3.9 million, $6.9 million, and $9.2 million for the years ended December 31,
1999, 1998, and 1997, respectively.

The following table presents the maturity distribution of mortgage loans
held in the AEGON Portfolio as of December 31, 1999 ($ in millions):

<TABLE>
<CAPTION>
DECEMBER 31, 1999
-----------------
CARRYING % OF
VALUE TOTAL
-------- -----
<S> <C> <C>
Due in one year or less..................................... $27.9 28.3%
Due after one year through five years....................... 37.0 37.6
Due after five years through ten years...................... 33.6 34.1
----- -----
Total..................................................... $98.5 100.0%
===== =====
</TABLE>

Total problem, potential problem and restructured commercial mortgages as a
percentage of commercial mortgages were 36.6%, 29.9% and 27.8% at December 31,
1999, 1998 and 1997, respectively. Total valuation allowances as a percentage of
problem, potential problem and restructured commercial mortgages at carrying
value before valuation allowances were 7.0%, 15.1% and 5.7% as of December 31,
1999, 1998 and 1997, respectively.

Real Estate

As of December 31, 1999 and 1998, the AEGON Portfolio had real estate of
$16.8 million and $37.9 million, respectively, which are net of $2.4 million and
$18.2 million, respectively, of impairments taken upon foreclosure of mortgage
loans. Losses recorded during the years ended December 31, 1999, 1998 and 1997
related to impairments taken upon foreclosure were $0.0 million, $0.0 million,
and $4.3 million, respectively. For the year ended December 31, 1999, the real
estate balance of $16.8 million was classified as real estate to be disposed of.
For the year ended December 31, 1998, the balance of $37.9 million was
classified as real estate held for investment. During 1999, there was $0.4
million of losses recorded for valuation allowances on real estate to be
disposed of.

Real estate is net of accumulated depreciation of $1.0 million, and $2.5
million and valuation allowances of $0.4 million and $0.0 million at December
31, 1999 and 1998, respectively. Depreciation expense of $0.7 million, $1.1
million, and $1.4 million, was recorded for the years ended December 31, 1999,
1998, and 1997, respectively.

There was no real estate included in the AEGON Portfolio which was
non-income producing for the twelve months preceding December 31, 1999, 1998,
and 1997, respectively.

F-49
<PAGE> 133
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

11. INVESTMENT INCOME, REALIZED AND UNREALIZED INVESTMENT GAINS (LOSSES), AND
COMPREHENSIVE INCOME:

Net investment income for the years ended December 31, 1999, 1998 and 1997
was derived from the following sources:

<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
NET INVESTMENT INCOME
Fixed maturities......................................... $226.1 $418.1 $422.5
Equity securities........................................ 194.2 53.6 53.5
Mortgage loans........................................... 87.1 118.7 137.1
Real estate.............................................. 34.1 44.4 56.2
Policy loans............................................. 4.4 72.5 82.2
Other investments (including cash and short-term)........ 14.4 23.1 22.4
------ ------ ------
Total investment income.................................. 560.3 730.4 773.9
Investment expenses...................................... 35.4 42.1 40.9
------ ------ ------
Net investment income.................................... $524.9 $688.3 $733.0
====== ====== ======
</TABLE>

Net realized gains (losses) on investments for the years ended December 31,
1999, 1998 and 1997 are summarized as follows:

<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
NET REALIZED GAINS (LOSSES) ON INVESTMENTS
Fixed maturities......................................... $ (8.5) $ 8.3 $ 7.3
Equity securities........................................ 76.0 6.9 35.8
Mortgage loans........................................... (2.2) 5.4 10.4
Real estate.............................................. 52.1 127.6 20.1
Other investments assets................................. 4.8 20.5 (1.5)
------ ------ ------
Net realized gains on investments........................ $122.2 $168.7 $ 72.1
====== ====== ======
</TABLE>

Following is a summary of the change in unrealized investment gains
(losses), net of related deferred income taxes and adjustment for deferred
policy acquisition costs (see Note 4), which are reflected in Accumulated Other
Comprehensive Income for the periods presented. The net change in unrealized
investment gains (losses) and the change in the Company's minimum pension
liability represent the only

F-50
<PAGE> 134
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

components of other comprehensive income for the years ended December 31, 1999,
1998 and 1997 as presented below:

<TABLE>
<CAPTION>
1999 1998 1997
------- ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
OTHER COMPREHENSIVE INCOME
Change in unrealized gains (losses):
Fixed maturities........................................ $(458.9) $ 66.8 $ 98.7
Equity securities....................................... (25.3) 24.2 0.6
Other................................................... (3.6) (1.8) 3.7
------- ------ ------
Subtotal................................................ (487.8) 89.2 103.0
AEGON Portfolio (See Note 10)........................... (77.9) (4.0) (1.5)
------- ------ ------
Subtotal................................................ (565.7) 85.2 101.5
Effect on unrealized gains (losses) on investments
attributable to:
DAC................................................... 241.6 (6.7) (47.9)
Deferred federal income taxes......................... 114.1 (28.4) (17.7)
Net unrealized gains and DAC transferred to the Closed
Block................................................. 28.2 (18.7) --
------- ------ ------
Change in unrealized gains (losses) on investments,
net................................................... (181.8) 31.4 35.9
Minimum pension liability adjustment (See Note 7)....... -- 2.9 (2.9)
------- ------ ------
Other comprehensive income.............................. $(181.8) $ 34.3 $ 33.0
======= ====== ======
</TABLE>

The following table sets forth the reclassification adjustments required
for the years ended December 31, 1999, 1998, and 1997 to avoid double-counting
in comprehensive income items that are included as part of net income for a
period that also had been part of other comprehensive income in earlier periods:

<TABLE>
<CAPTION>
1999 1998 1997
------- ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
RECLASSIFICATION ADJUSTMENTS
Unrealized gains (losses) on Investments arising during
period................................................ $(135.3) $ 39.3 $ 53.5
Reclassification adjustment for gains included in net
income................................................ (46.5) (7.9) (17.6)
------- ------ ------
Unrealized gains (losses) on Investments, net of
reclassification adjustments.......................... $(181.8) $ 31.4 $ 35.9
======= ====== ======
</TABLE>

Unrealized gains (losses) on investments, (excluding net unrealized gains
(losses) and DAC on assets allocated to the Closed Block), reported in the above
table for the years ended December 31, 1999, 1998 and 1997 are net of income tax
expense (benefit) of ($139.2) million, $24.1 million, and $8.2 million,
respectively, and $242.0 million, $0.8 million, and $(30.2) million,
respectively, relating to the effect of such unrealized gains (losses) on DAC.

Reclassification adjustments, (excluding net unrealized gains (losses) and
DAC on assets allocated to the Closed Block), reported in the above table for
the years ended December 31, 1999, 1998 and 1997 are net of income tax expense
of $25.1 million, $4.3 million and $9.5 million, respectively, and $(0.4)
million, $(7.5) million and $(17.7) million, respectively, relating to the
effect of such amounts on DAC.

F-51
<PAGE> 135
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

12. INVESTMENTS:

Fixed Maturity Securities Available-for-Sale:

The amortized cost, gross unrealized gains and losses, and estimated fair
value of fixed maturity securities available-for-sale as of December 31, 1999
and 1998 are as follows:

<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED ESTIMATED
COST GAINS LOSSES FAIR VALUE
------------------- -------------- -------------- -------------------
1999 1998 1999 1998 1999 1998 1999 1998
-------- -------- ----- ------ ------ ----- -------- --------
($ IN MILLIONS)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
US Treasury securities and
Obligations of US Government
agencies..................... $ 110.1 $ 63.8 $ -- $ 3.2 $ 3.2 $ -- $ 106.9 $ 67.0
Collateralized mortgage
obligations:
Government agency-backed..... 147.2 180.2 0.5 3.3 2.1 -- 145.6 183.5
Non-agency backed............ 101.0 85.7 0.9 3.4 2.0 -- 99.9 89.1
Other asset-backed securities:
Government agency-backed..... 16.4 20.0 0.3 1.0 0.2 -- 16.5 21.0
Non-agency backed............ 402.2 347.5 1.5 12.2 13.0 0.9 390.7 358.8
Foreign governments............ 20.9 16.6 3.7 1.2 0.2 0.6 24.4 17.2
Utilities...................... 347.3 339.4 2.6 13.2 14.4 5.1 335.5 347.5
Corporate bonds................ 1,995.5 1,953.8 9.4 79.3 78.4 9.0 1,926.5 2,024.1
-------- -------- ----- ------ ------ ----- -------- --------
Total bonds................ 3,140.6 3,007.0 18.9 116.8 113.5 15.6 3,046.0 3,108.2
Redeemable preferred stocks.... 22.4 23.5 -- 0.6 1.7 0.3 20.7 23.8
-------- -------- ----- ------ ------ ----- -------- --------
Total...................... $3,163.0 $3,030.5 $18.9 $117.4 $115.2 $15.9 $3,066.7 $3,132.0
======== ======== ===== ====== ====== ===== ======== ========
</TABLE>

The carrying value of the Company's fixed maturity securities at December
31, 1999 and 1998 is net of adjustments for impairments in value deemed to be
other than temporary of $16.2 million and $15.1 million, respectively.

At December 31, 1999 and 1998, there was $1.6 million and $0.0 million,
respectively of fixed maturity securities which had been non-income producing
for the twelve months preceding such dates.

The Company classifies fixed maturity securities which (i) are in default
as to principal or interest payments, or (ii) are to be restructured pursuant to
commenced negotiations, (iii) went into bankruptcy subsequent to acquisition, or
(iv) are deemed to have other than temporary impairments to value as "problem
fixed maturity securities". At December 31, 1999 and 1998, the carrying value of
problem fixed maturities held by the Company was $33.9 million. In addition, at
December 31, 1999 and 1998, the Company held $0.0 million and $8.6 million of
fixed maturity securities which had been restructured. Gross interest income
that would have been recorded in accordance with the original terms of
restructured fixed maturity securities amounted to $0.0 million and $0.9 million
for the years ended December 31, 1999 and 1998, respectively. Gross interest
income on these fixed maturity securities included in net investment income
aggregated $0.0 million and $1.3 million for the years ended December 31, 1999
and 1998, respectively.

F-52
<PAGE> 136
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

The amortized cost and estimated fair value of fixed maturity securities,
by contractual maturity dates (excluding scheduled sinking funds) as of December
31, 1999, are as follows:

<TABLE>
<CAPTION>
1999
-----------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
--------- ----------
($ IN MILLIONS)
<S> <C> <C>
Due in one year or less..................................... $ 138.6 $ 139.7
Due after one year through five years....................... 553.2 547.0
Due after five years through ten years...................... 1,243.3 1,193.4
Due after ten years......................................... 561.1 533.9
-------- --------
Subtotal.................................................. 2,496.2 2,414.0
Mortgage- and asset-backed securities....................... 666.8 652.7
-------- --------
Total..................................................... $3,163.0 $3,066.7
======== ========
</TABLE>

Proceeds from sales of fixed maturity securities including those in the
Closed Block during 1999, 1998 and 1997 were $632.8 million, $396.9 million and
$225.0 million, respectively. Gross gains of $6.9 million, $10.6 million, and
$5.2 million and gross losses of $19.4 million, $2.9 million, and $2.6 million
were realized on these sales, respectively.

Equity Securities

The cost, gross unrealized gains and losses, and estimated fair value of
marketable and nonmarketable equity securities at December 31, 1999 and 1998 are
as follows:

<TABLE>
<CAPTION>
GROSS GROSS
UNREALIZED UNREALIZED ESTIMATED
COST GAINS LOSSES FAIR VALUE
--------------- --------------- ------------- ---------------
1999 1998 1999 1998 1999 1998 1999 1998
------ ------ ------ ------ ----- ----- ------ ------
($ IN MILLIONS)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Marketable equity
Securities................. $217.5 $233.6 $ 63.3 $ 48.7 $ 9.3 $ 6.7 $271.5 $275.6
Nonmarketable equity
Securities................. 178.5 128.2 84.4 65.7 14.6 12.3 248.3 181.6
------ ------ ------ ------ ----- ----- ------ ------
$396.0 $361.8 $147.7 $114.4 $23.9 $19.0 $519.8 $457.2
====== ====== ====== ====== ===== ===== ====== ======
</TABLE>

Proceeds from sales of equity securities during 1999, 1998 and 1997 were
$302.7 million, $165.0 million and $234.1 million, respectively. Gross gains of
$90.0 million, $24.4 million, and $44.4 million and gross losses of $12.4
million, $17.2 million, and $4.7 million were realized on these sales,
respectively.

F-53
<PAGE> 137
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

13. MORTGAGE LOANS ON REAL ESTATE AND REAL ESTATE:

Mortgage loans on real estate at December 31, 1999 and 1998 consist of the
following:

<TABLE>
<CAPTION>
1999 1998
-------- --------
($ IN MILLIONS)
<S> <C> <C>
Commercial mortgage loans................................... $ 777.8 $ 546.1
Agricultural and other loans................................ 515.6 465.4
-------- --------
Total loans................................................. 1,293.4 1,011.5
Less: valuation allowances.................................. (23.0) (23.2)
-------- --------
Mortgage loans, net of valuation allowances................. $1,270.4 $ 988.3
======== ========
</TABLE>

An analysis of the valuation allowances for 1999, 1998 and 1997 is as
follows:

<TABLE>
<CAPTION>
1999 1998 1997
----- ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year................................ $23.2 $ 54.9 $ 67.0
Increase in allowance..................................... 3.2 11.9 1.4
Reduction due to pay downs and pay offs................... (1.2) (16.0) (12.7)
Transfers to real estate.................................. (2.2) (4.0) (0.8)
Transfers to the Closed Block............................. -- (23.6) --
----- ------ ------
Balance, end of year...................................... $23.0 $ 23.2 $ 54.9
===== ====== ======
</TABLE>

Impaired mortgage loans along with related valuation allowances as of
December 31, 1999 and 1998 were as follows:

<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
Investment in impaired mortgage loans (before valuation
allowances):
Loans that have valuation allowances........................ $109.1 $116.7
Loans that do not have valuation allowances................. 30.1 29.5
------ ------
Subtotal.................................................. 139.2 146.2
Valuation allowances........................................ (17.5) (10.9)
------ ------
Impaired mortgage loans, net of valuation allowances...... $121.7 $135.3
====== ======
</TABLE>

Impaired mortgage loans that do not have valuation allowances are loans
where the net present value of the expected future cash flows related to the
loan or the fair value of the collateral equals or exceeds the recorded
investment in the loan. Such loans primarily consist of restructured loans or
loans on which impairment writedowns were taken prior to the adoption of SFAS
No. 114, "Accounting by Creditors for Impairment of a Loan".

During 1999 and 1998, the average recorded investment in impaired mortgage
loans was approximately $262.6 million and $300.1 million, respectively
including Closed Block mortgages. During 1999, 1998, and 1997, the Company
recognized $19.8 million, $24.2 million, and $28.5 million, respectively, of
interest income on impaired loans (see Note 20.)

At December 31, 1999 and 1998, the carrying values of mortgage loans which
were non-income producing for the twelve months preceding such dates were $21.0
million and $12.9 million, respectively.

At December 31, 1999 and 1998, the Company had restructured mortgage loans
of $100.1 million (excluding the Closed Block) and $110.6 million, respectively.
Interest income of $6.3 million, $13.0 million

F-54
<PAGE> 138
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

and $20.3 million was recognized on restructured mortgage loans in 1999, 1998,
and 1997, respectively. Gross interest income on these loans that would have
been recorded in accordance with the original terms of such loans amounted to
approximately $11.6 million, $18.1 million, and $26.7 million in 1999, 1998 and
1997, respectively.

The following table summarizes the Company's real estate at December 31,
1999 and 1998:

<TABLE>
<CAPTION>
AS OF DECEMBER 31,
------------------
1999 1998
------- -------
($ IN MILLIONS)
<S> <C> <C>
Real estate to be disposed of(1)............................ $375.6 $393.7
Impairment writedowns....................................... (52.7) (50.2)
Valuation allowance......................................... (22.0) (30.6)
------ ------
Carrying value of real estate to be disposed of............. $300.9 $312.9
------ ------
Real estate held for investment(2).......................... $ 57.0 $381.9
Impairment writedowns....................................... (10.8) (60.6)
------ ------
Carrying value of real estate held for investment........... $ 46.2 $321.3
====== ======
</TABLE>

---------------
(1) Amounts presented as of December 31, 1999 and 1998 are net of $42.1 million
and $29.0 million, respectively, relating to impairments taken upon
foreclosure of mortgage loans.

(2) Amounts presented as of December 31, 1999 and 1998 are net of $5.9 million
and $26.8 million, respectively, relating to impairments taken upon
foreclosure of mortgage loans.

An analysis of the valuation allowances relating to real estate classified
as to be disposed of for the years ended December 31, 1999, 1998 and 1997 is as
follows:

<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year............................... $ 30.6 $ 82.7 $ 46.0
Increase due to transfers of properties to real estate to
be disposed of during the year......................... 11.0 1.7 66.1
Increases (decreases) in valuation allowances from the
end of the prior period on properties to be disposed
of..................................................... 1.1 5.0 (2.3)
Decrease as a result of transfers of valuation allowances
to held for investment................................. -- (13.5) --
Decrease as a result of sale............................. (20.7) (45.3) (27.1)
------ ------ ------
Balance, end of year..................................... $ 22.0 $ 30.6 $ 82.7
====== ====== ======
</TABLE>

Real estate is net of accumulated depreciation of $138.6 million and $290.1
million for 1999 and 1998, respectively, and depreciation expense recorded was
$8.5 million, $26.6 million and $45.1 million for the years ended December 31,
1999, 1998 and 1997, respectively.

At December 31, 1999 and 1998, the carrying value of real estate which was
non-income producing for the twelve months preceding such dates was $16.9
million and $12.5 million, respectively. Approximately 69.4% of such real estate
at December 31, 1999 consisted of land and the balance consisted of vacant
buildings.

The carrying value of impaired real estate as of December 31, 1999 and 1998
was $84.2 million and $78.4 million, respectively. The depreciated cost of such
real estate as of December 31, 1999 and 1998 was $147.7 million and $189.1
million before impairment writedowns of $63.5 million and $110.7 million,
respectively.

F-55
<PAGE> 139
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

The aforementioned impairments occurred primarily as a result of low occupancy
levels and other market related factors. Losses recorded during 1999, 1998, and
1997 related to impaired real estate aggregated $0.0 million, $5.9 million, and
$0.0 million, respectively, and are included as a component of net realized
gains on investments. Substantially all impaired real estate is allocated to the
Protection Products segment.

14. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS:

The estimated fair values of the Company's financial instruments
approximate their carrying amounts except for long-term debt as described below.
The methods and assumptions utilized in estimating the fair values of the
Company's financial instruments are summarized as follows:

Fixed Maturities and Equity Securities

The estimated fair values of fixed maturity securities are based upon
quoted market prices, where available. The fair values of fixed maturity
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. Equity securities primarily consist of investments in common
stocks and limited partnership interests. The fair values of the Company's
investment in common stocks are determined based on quoted market prices, where
available. The fair value of the Company's investments in limited partnership
interests are based on amounts reported by such partnerships to the Company.

Mortgage Loans

The fair values of mortgage loans are 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. The fair value of mortgages in process of
foreclosure is the estimated fair value of the underlying collateral.

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.

Long-term Debt

The fair value of long-term debt at December 31, 1999 was $251.7 million
and is determined based on contractual cash flows discounted at market rates.
The estimated fair values for non-recourse mortgage debt are determined by
discounting contractual cash flows at a rate which takes into account the level
of current market interest rates and collateral risk.

Separate Account Assets and Liabilities

The estimated fair value of assets held in Separate Accounts is based on
quoted market prices. The fair value of liabilities related to Separate Accounts
is the amount payable on demand, which includes surrender charges.

Investment-Type Contracts

The fair values of annuities are based on estimates of the value of
payments available upon full surrender. The fair values of the Company's
liabilities under guaranteed investment 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.
F-56
<PAGE> 140
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

15. REINSURANCE:

Life insurance business is ceded on a yearly renewable term basis under
various reinsurance contracts. The Company's general practice is to retain no
more than $4.0 million of risk on any one person for individual products and
$6.0 million for last survivor products.

The Company has entered into coinsurance agreements with other insurers
related to a portion of its extended term insurance, guaranteed interest
contract and long-term disability claim liabilities and reinsures approximately
50% of its block of paid-up life insurance policies.

The following table summarizes the effect of reinsurance for the years
indicated:

<TABLE>
<CAPTION>
1999 1998 1997
------ ------- ------
($ IN MILLIONS)
<S> <C> <C> <C>
Direct premiums (includes $74.4, $78.4 and $78.1 of
accident and health premiums for 1999, 1998, and 1997,
respectively)......................................... $181.6 $ 728.7 $871.0
Reinsurance assumed..................................... 5.0 5.3 6.2
Reinsurance ceded (includes $(73.8), $(78.2), and $(3.5)
of accident and health premiums for 1999, 1998, and
1997, respectively)................................... (90.3) (112.3) (38.6)
------ ------- ------
Net premiums(1)....................................... $ 96.3 $ 621.7 $838.6
====== ======= ======
Universal life and investment type product policy fee
income ceded.......................................... $ 14.4 $ 8.9 $ 8.8
====== ======= ======
Policyholders' benefits ceded(2)........................ $ 38.2 $ 107.3 $ 69.0
====== ======= ======
Interest credited to policyholders' account balances
ceded................................................. $ 4.5 $ 6.5 $ 9.9
====== ======= ======
</TABLE>

---------------
(1) Excludes Closed Block direct premiums of $639.9 and $103.3 and reinsurance
ceded of $19.0 and $3.2 at December 31, 1999 and 1998, respectively.

(2) Excludes $21.8 million of Closed Block benefits ceded at December 31, 1999.

The Company is contingently liable with respect to ceded insurance should
any reinsurer be unable to meet its obligations under these agreements. To limit
the possibility of such losses, the Company evaluates the financial condition of
its reinsurers and monitors concentration of credit risk.

Effective December 31, 1997, the Company transferred all of its existing in
force disability income insurance business to a third party reinsurer under an
indemnity reinsurance contract and ceased writing new disability income
insurance business. As a result of this transaction, the Company recorded a loss
before tax of approximately $9.1 million for the year ended December 31, 1997.

16. DEBT:

The Company's debt at December 31, 1999 and 1998 consists of the following:

<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
Surplus notes............................................... $240.0 $231.7
Real estate mortgage encumbrances........................... 58.8 94.6
Other....................................................... -- 49.1
------ ------
$298.8 $375.4
====== ======
</TABLE>

F-57
<PAGE> 141
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

Surplus Notes

On December 31, 1997, the Company issued the MONY Notes in connection with
the Investment Agreement (see Note 2). The MONY Notes have a face amount of
$115.0 million, a coupon rate of interest of 9.5% per annum, and mature on
December 30, 2012. Interest on the MONY Notes is payable semi-annually and
principal is payable at maturity. Payment of interest on the MONY Notes may only
be made upon the prior approval of the New York State Superintendent of
Insurance. For each of the years in the period ended December 31, 1999 and 1998,
the Company recorded interest expense of $10.9 million related the MONY Notes.

On August 15, 1994, the Company issued Surplus Notes due August 15, 2024
with a face amount of $125.0 million. The notes were issued at a discount of
approximately 42.1% from the principal amount payable at maturity, resulting in
net proceeds after issuance expenses of approximately $70.0 million. The amount
of such original issue discount represents a yield of 11.25% per annum for the
period from August 15, 1994 until August 15, 1999. Interest on the notes did not
accrue until 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.

Payment of interest on the Surplus Notes may only be made upon the prior
approval of the New York State Superintendent of Insurance. The Company
amortizes the discount using the interest method. For the years ended December
31, 1999, 1998, and 1997, the Company recorded interest expense of $13.5
million, $12.1 million, and $10.8 million, respectively, related to these notes.

Real Estate Mortgage Encumbrances

The Company has mortgage loans on certain of its real estate properties.
The interest rates on these loans range from 6.7% to 7.7%. Maturities range from
June 2000 to February 2002. For the years ended December 31, 1999, 1998 and
1997, interest expense on such mortgage loans aggregated $5.0 million, $9.0
million, and $12.3 million, respectively.

Other

During 1989, the Company entered into a transaction which is accounted for
as a financing arrangement involving certain real estate properties held for
investment. Pursuant to the terms of the agreement, the Company effectively
pledged the real estate properties as collateral for a loan of approximately
$35.0 million bearing simple interest at a rate of 8% per annum. The remaining
obligation of $44.1 was paid in full on December 1, 1999. At December 31, 1998,
the outstanding balance of the obligation including accrued interest was $42.4
million. Interest expense on the obligation of $3.4 million, $3.1 million, and
$3.0 million is reflected in Other Operating Costs and Expenses on the
statements of income for the years ended December 31, 1999, 1998 and 1997,
respectively.

In 1988, the Company financed one of its real estate properties under a
sales/leaseback arrangement. The facility was sold for $66.0 million, $56.0
million of which was in the form of an interest bearing note receivable and
$10.0 million in cash. The note was originally due January 1, 2009, however, on
December 1, 1999, the remaining balance of the interest bearing note of $44.2
was paid in full as part of the sale of the property to a third party. The
transaction continues to be accounted for as a sale/leaseback arrangement, with
the proceeds received from the sale, amortized into income over the life of the
lease. The lease has a term of 20 years beginning December 21, 1988 and requires
minimum annual rental payments of $7.3 million in 2000, $7.4 million in 2001,
$7.6 million in 2002, $7.7 million in 2003, $7.9 million in 2004 and $33.1
million thereafter. The Company has the option to renew the lease at the end of
the lease term.

Prior to December 31, 1997, the Company had outstanding debt which
represented floating rate notes that were issued by a trust that qualified as a
Real Estate Mortgage Investment Conduit (REMIC) under
F-58
<PAGE> 142
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

Section 860 of the Internal Revenue Code. For the year ended December 31, 1997,
the Company recorded interest expense of $0.8 million, related to the REMIC. The
weighted average interest rate on the notes for the year ended December 31, 1997
was 5.9%.

Prior to December 31, 1997, the Company had outstanding Eurobond debt. For
the year ended December 31, 1997 interest expense on the Eurobonds outstanding
aggregated $2.1 million. The weighted average interest rate on such debt for the
year ended December 31, 1997 was 8.13%.

At December 31, 1999, aggregate maturities of long-term debt based on
required principal payments for 2000 and the succeeding four years are $0.0
million, $0.0 million, $5.4 million, $0.0 million, and $0.0 million,
respectively, and $240.0 million thereafter.

17. OFF-BALANCE SHEET RISK AND CONCENTRATION OF CREDIT RISK:

Financial Instruments with Off-Balance Sheet Risk:

Pursuant to a securities lending agreement with a major financial
institution, the Company from time to time lends securities to approved
borrowers. At December 31, 1999 and 1998, securities loaned by the Company under
this agreement had a fair value of approximately $42.6 million and $98.9
million, respectively. The minimum collateral on securities loaned is 102
percent of the market value of the loaned securities. Such securities are marked
to market on a daily basis and the collateral is correspondingly increased or
decreased.

Concentration of Credit Risk:

At December 31, 1999 and 1998, the Company had no single investment or
series of investments with a single issuer (excluding U.S. Treasury securities
and obligations of U.S. government agencies) exceeding 0.5% and 3.5%,
respectively, of total cash and invested assets.

The Company's fixed maturity securities are diversified by industry type.
The industries that comprise 10% or more of the carrying value of the fixed
maturity securities at December 31, 1999 are Non-Government
Asset/Mortgage-Backed of $490.6 million (16.0%), Consumer Goods and Services of
$462.0 million (15.1%), Public Utilities of $335.5 million (10.9%), Other
Manufacturing of $305.4 million (10.0%).

At December 31, 1998 the industries that comprise 10% or more of the
carrying value of the fixed maturity securities were Non-Government
Asset/Mortgage-Backed of $448.0 million (14.3%), Other Manufacturing of $391.3
million (12.5%), Consumer Goods and Services of $408.5 million (13.1%), and
Public Utilities of $347.5 million (11.1%).

The Company holds below investment grade fixed maturity securities with a
carrying value of $308.3 million at December 31, 1999. These investments consist
mostly of privately issued bonds which are monitored by the Company through
extensive internal analysis of the financial condition of the issuers and which
generally include protective debt covenants. At December 31, 1998, the carrying
value of the Company's investments in below investment grade fixed maturity
securities amounted to $252.0 million.

F-59
<PAGE> 143
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

The Company has significant investments in commercial and agricultural
mortgage loans and real estate (including joint ventures and partnerships). The
locations of property collateralizing mortgage loans and real estate investment
carrying values at December 31, 1999 and 1998 are as follows:

<TABLE>
<CAPTION>
1999 1998
----------------- -----------------
($ IN MILLIONS)
<S> <C> <C> <C> <C>
GEOGRAPHIC REGION
West........................................... $ 323.3 20.0% $ 315.8 19.5%
Mountain....................................... 319.7 19.8 392.5 24.2
Southeast...................................... 307.3 19.0 292.2 18.0
Midwest........................................ 290.4 17.9 220.7 13.6
Northeast...................................... 234.7 14.5 261.5 16.1
Southwest...................................... 142.1 8.8 139.8 8.6
-------- ----- -------- -----
Total........................................ $1,617.5 100.0% $1,622.5 100.0%
======== ===== ======== =====
</TABLE>

The states with the largest concentrations of mortgage loans and real
estate investments at December 31, 1999 are: California, $179.2 million (11.1%);
New York $158.7 million (9.8%); Arizona, $157.8 million (9.8%); Illinois, $97.1
million (6.0%); Texas, $92.0 million (5.7%); Georgia, $83.0 million (5.1%); and
Washington, $75.9 million (4.7%).

As of December 31, 1999 and 1998, the real estate and mortgage loan
portfolio was also diversified as follows:

<TABLE>
<CAPTION>
1999 1998
----------------- -----------------
($ IN MILLIONS)
<S> <C> <C> <C> <C>
PROPERTY TYPE:
Office buildings............................... $ 610.2 37.7% $ 585.4 36.1%
Agricultural................................... 510.1 31.5 459.7 28.4
Hotel.......................................... 182.4 11.3 264.9 16.3
Retail......................................... 112.6 7.0 164.1 10.1
Other.......................................... 95.6 5.9 72.7 4.5
Industrial..................................... 77.0 4.8 51.0 3.1
Apartment buildings............................ 29.6 1.8 24.7 1.5
-------- ----- -------- -----
Total........................................ $1,617.5 100.0% $1,622.5 100.0%
======== ===== ======== =====
</TABLE>

18. COMMITMENTS AND CONTINGENCIES:

a) Since late 1995 a number of purported class actions were commenced in
various state and federal courts against the Company alleging that the Company
engaged in deceptive sales practices in connection with the sale of whole and
universal life insurance policies from the early 1980s through the mid 1990s.
Although the claims asserted in each case are not identical, they seek
substantially the same relief under essentially the same theories of recovery
(i.e., breach of contract, fraud, negligent misrepresentation, negligent
supervision and training, breach of fiduciary duty, unjust enrichment and
violation of state insurance and/or deceptive business practice laws).
Plaintiffs in these cases (including the Goshen case discussed below) seek
primarily equitable relief (e.g., reformation, specific performance, mandatory
injunctive relief prohibiting the Company from canceling policies for failure to
make required premium payments, imposition of a constructive trust and creation
of a claims resolution facility to adjudicate any individual issues remaining
after resolution of all class-wide issues) as opposed to compensatory damages,
although they also seek compensatory damages in

F-60
<PAGE> 144
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

unspecified amounts. The Company has answered the complaints in each action,
(except for one being voluntarily held in abeyance), has denied any wrongdoing
and has asserted numerous affirmative defenses.

On June 7, 1996, the New York State Supreme Court certified one of those
cases the Goshen v. The Mutual Life Insurance Company of New York and MONY Life
Insurance Company of America, the Goshen case, being the first of the
aforementioned class actions filed, as a nationwide class consisting of all
persons or entities who have, or at the time of the policy's termination had, an
ownership interest in a whole or universal life insurance policy issued by the
Company and sold on an alleged "vanishing premium" basis during the period
January 1, 1982 to December 31, 1995. On March 27, 1997, the Company filed a
motion to dismiss or, alternatively, for summary judgment on all counts of the
complaint. All of the other putative class actions have been consolidated and
transferred by the Judicial Panel on Multidistrict Litigation to the United
States District Court for the District of Massachusetts, or are being
voluntarily held in abeyance pending the outcome of the Goshen case.

On October 21, 1997, the New York State Supreme Court granted the Company's
motion for summary judgment and dismissed all claims filed in the Goshen case
against the Company on the merits. On December 20, 1999, the New York State
Court of Appeals affirmed the dismissal of all but one of the claims in the
Goshen case (a claim under New York's General Business Law), which has been
remanded back to the New York State Supreme Court for further proceedings
consistent with the opinion. The Company intends to defend itself vigorously
against the sole remaining claim. There can be no assurance that the present
litigation relating to sales practices will not have a material adverse effect
on the Company.

On November 16, 1999, the MONY Group, Inc. and MONY Life Insurance Company
were served with a complaint in an action entitled Calvin Chatlos, M.D., and
Alvin H. Clement, On Behalf of Themselves And All Others Similarly Situated v.
The MONY Life Insurance Company, The MONY Group Inc., and Neil D. Levin,
Superintendent, New York Department of Insurance, the Chatlos case, filed in the
United States District Court for the Southern District of New York. The action
purports to be brought as a class action on behalf of all individuals who had an
ownership interest in one or more in-force life insurance policies issued by
MONY Life Insurance Company as of November 16, 1998. The complaint alleges that
(i) the New York Superintendent of Insurance Neil D. Levin, violated Section
7312 of the New York Insurance Law by approving the plan of demutualization,
which plaintiffs claim was not fair and adequate, primarily because it allegedly
failed to provide for sufficient assets for the mechanism established under the
plan to preserve reasonable policyholder dividend expectations of the closed
block, and (ii) the Company violated Section 7312 by failing to develop and
submit to the Superintendent a plan of demutualization that was fair and
adequate. The plaintiffs seek equitable relief in the form of an order vacating
and/or modifying the Superintendent's order approving the plan of
demutualization and/or directing the Superintendent to order the Company to
increase the assets in the closed block, as well as unspecified monetary
damages, attorneys' fees and other relief.

In order to challenge successfully the New York Superintendent's approval
of the plan, plaintiffs would have to sustain the burden of showing that such
approval was arbitrary and capricious or an abuse of discretion, made in
violation of lawful procedures, affected by an error of law or not supported by
substantial evidence. In addition, Section 7312 provides that the Company may
ask the court to require the challenging party to give security for the
reasonable expenses, including attorneys' fees, which may be incurred by the
Company or the Superintendent or for which the Company may become liable, to
which security the Company shall have recourse in such amount as the court shall
determine upon the termination of the action.

On February 2, 2000, the District Court entered an order approving the
voluntary dismissal of the complaint. Under the terms of the order, plaintiffs
have six months from the date thereof to refile in state court, and defendants
have retained the right in any subsequent action to assert that plaintiffs'
claims were time-barred when initially asserted and/or barred by virtue of
plaintiffs' delay (laches) in bringing suit in the first place.
F-61
<PAGE> 145
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

In addition to the matters discussed above, the Company is involved in
various other legal actions and proceedings in connection with its businesses.
The claimants in certain of these actions and proceedings seek damages of
unspecified amounts.

With respect to all of the other aforementioned pending litigation, the
Company recorded a provision, which is reflected in Other Operating Costs and
Expenses, of $1.7 million, $13.1 million, and $0.0 million during the years
ended December 31, 1999, 1998 and 1997, respectively. While the outcome of such
matters cannot be predicted with certainty, in the opinion of management, any
additional liability beyond that recorded in the consolidated financial
statements at December 31, 1999, resulting from the resolution of these matters
will not have a material adverse effect on the Company's consolidated financial
position or results of operations.

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, such assessments will not have a
material adverse effect on the consolidated financial position and the results
of operations of the Company.

The Company maintains two lines of credit with domestic banks totaling
$150.0 million with scheduled renewal dates in September 2000 and September
2003. Under these lines of credit, the Company is required to maintain a certain
statutory tangible net worth and debt to capitalization ratio. The Company has
not borrowed against these lines of credit since their inception.

At December 31, 1999, the Company had commitments to issue $8.7 million of
fixed rate agricultural loans with periodic interest rate reset dates. The
initial interest rates on such loans range from approximately 7.25% to 8.75%. In
addition, the Company had commitments to issue $70.2 million of fixed rate
commercial mortgage loans with interest rates ranging from 7.00% to 8.92%. The
Company had commitments outstanding to purchase private fixed maturity
securities as of December 31, 1999 of $15.0 million with an interest rate of
9.0%. At December 31, 1999, the Company had commitments to contribute capital to
its equity partnership investments of $118.1 million.

b) Plaintiffs in the Chatlos case filed a new complaint in the Supreme
Court of the State of New York, New York County, on March 27,2000. Although the
Superintendent of Insurance remains a defendant in the new action, plaintiff
seeks only declaratory relief, rather than damages, from him. In addition,
plaintiffs have reformulated their claims against the Company. In the new
complaint, plaintiffs first seek a declaratory judgment that the Superintendent
of Insurance and the Company violated Section 7312 by withholding certain
information from the policyholders, thereby denying them their right to an
informed vote in connection with the demutualization. Second, plaintiffs seek an
award of unspecified damages against the Company for wrongfully denying
policyholders a fair and equitable amount for their membership interests. Third,
plaintiffs assert a breach of contract claim, claiming the Company breached its
contractual obligations to the policyholders by proposing a demutualization plan
that did not comply with New York law. Finally, plaintiffs claim that the
Company breached fiduciary duties allegedly owed to them by authorizing the
demutualization plan without regard to their interest. The Company believes the
claims are without merit and intends to defend itself vigorously.

19. STATUTORY FINANCIAL INFORMATION AND REGULATORY RISK-BASED CAPITAL

The combined statutory net income reported by the Company for the years
ended December 31, 1999, 1998, and 1997 was $131.0 million, $9.7 million, and
$88.5 million, respectively. The combined statutory surplus of the Company as of
December 31, 1999 and 1998 was $1,067.1 million and $1,015.8 million
respectively.

In March 1998, the National Association of Insurance Commissioners ("NAIC")
voted to adopt its Codification of Statutory Accounting Principles project
(referred to hereafter as "codification"). Codification
F-62
<PAGE> 146
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

is a modified form of statutory accounting principles that will result in
changes to the current NAIC Accounting Practices and Procedures Manual
applicable to insurance enterprises. Although adoption of codification by all
states is not a certainty, the NAIC has recommended that all states enact
codification as soon as practicable with an effective date of January 1, 2001.
It is currently anticipated that codification will become an NAIC state
accreditation requirement starting in 2002. In addition, the American Institute
of Certified Public Accountants and the NAIC have agreed to continue to allow
the use of certain permitted accounting practices when codification becomes
effective in 2001. Any accounting differences from codification principles,
however, must be disclosed and quantified in the footnotes to the audited
financial statements. Therefore, codification will likely result in changes to
what are currently considered prescribed statutory insurance accounting
practices.

Each insurance company's state of domicile imposes minimum risk-based
capital requirements. The formulas for determining the amount of risk-based
capital specify various weighting factors that are applied to financial balances
or various levels of activity based on the perceived degree of risk. Regulatory
compliance is determined by a ratio of the Company's regulatory total adjusted
capital, as defined by the NAIC, to its authorized control level risk-based
capital, as defined by the NAIC. Companies below specific trigger points or
ratios are classified within certain levels, each of which requires specified
corrective action. Each of the Company's insurance subsidiaries exceed the
minimum risk based capital requirements.

As part of their routine regulatory oversight, the Department recently
completed an examination of MONY for each of the five years in the period ended
December 31, 1996, and the Arizona State Insurance Department recently completed
an examination of MONY's wholly owned life insurance subsidiary, MONY Life
Insurance Company of America, for each of the three years in the period ended
December 31, 1996. The reports did not cite any matter which would result in a
material effect on the Company's financial condition or results of operations.

F-63
<PAGE> 147
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

20. CLOSED BLOCK -- SUMMARY FINANCIAL INFORMATION

Summarized financial information of the Closed Block as of December 31,
1999 and December 31, 1998 and for the year ended December 31, 1999 and for the
period from November 16, 1998 (date of establishment of the Closed Block)
through December 31, 1998 is presented below:

<TABLE>
<CAPTION>
DECEMBER 31, DECEMBER 31,
1999 1998
------------ -------------
($ IN MILLIONS)
<S> <C> <C>
ASSETS:
Fixed Maturities:
Available for sale, at estimated fair value (amortized
cost, $3,423.0 and $3,433.9).......................... $3,479.5 $3,574.0
Mortgage loans on real estate.............................. 443.0 431.7
Policy loans............................................... 1,199.1 1,208.4
Real estate to be disposed of.............................. 22.1
Cash and cash equivalents.................................. 111.3 134.4
Premiums receivable........................................ 14.2 16.8
Deferred policy acquisition costs.......................... 689.9 554.6
Other assets............................................... 223.0 241.3
-------- --------
Total Closed Block assets............................. $6,182.1 $6,161.2
======== ========
LIABILITIES:
Future policy benefits..................................... $6,781.5 $6,715.6
Policyholders' account balances............................ 294.6 298.0
Other policyholders' liabilities........................... 164.9 163.5
Other liabilities.......................................... 62.3 113.6
-------- --------
Total Closed Block liabilities........................ $7,303.3 $7,290.7
======== ========
</TABLE>

<TABLE>
<CAPTION>
FOR THE NOVEMBER 16,
YEAR ENDED 1998 THROUGH
DECEMBER 31, DECEMBER 31,
1999 1998
------------ ------------
($ IN MILLIONS)
<S> <C> <C>
REVENUES:
Premiums................................................... $ 620.8 $100.1
Net investment income...................................... 375.1 46.6
Net realized gains (losses) on investments................. 2.9 2.4
Other Income............................................... 1.4 0.6
-------- ------
Total revenues........................................ 1,000.2 149.7
-------- ------
BENEFITS AND EXPENSES:
Benefits to policyholders.................................. 640.1 110.0
Interest credited to policyholders' account balances....... 8.9 1.0
Amortization of deferred policy acquisition costs.......... 67.5 9.0
Dividends to policyholders................................. 228.8 22.4
Other operating costs and expenses......................... 10.1 1.6
-------- ------
Total benefits and expenses........................... 955.4 144.0
-------- ------
Contribution from the Closed Block......................... $ 44.8 $ 5.7
======== ======
</TABLE>

The carrying value of the Closed Block fixed maturity securities at
December 31, 1999 and 1998 is net of adjustments for impairment of $3.0 million
and $0.0 million, respectively.

F-64
<PAGE> 148
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

At December 31, 1999 and December 31, 1998, there were no fixed maturities
which have been non-income producing for the twelve months preceding such dates.

At December 31, 1999 and December 31, 1998, there were problem fixed
maturities of $12.0 million and $0.0 million, respectively. There were no fixed
maturities which were restructured at December 31, 1999 and 1998.

The amortized cost and estimated fair value of fixed maturity securities in
the Closed Block, by contractual maturity dates, (excluding scheduled sinking
funds) as of December 31, 1999 are as follows:

<TABLE>
<CAPTION>
AMORTIZED ESTIMATED
COST FAIR VALUE
--------- ----------
($ IN MILLIONS)
<S> <C> <C>
Due in one year or less..................................... $ 67.9 $ 68.7
Due after one year through five years....................... 953.5 941.0
Due after five years through ten years...................... 1,468.7 1,419.5
Due after ten years......................................... 592.7 564.5
-------- --------
Subtotal.................................................. 3,082.8 2,993.7
Mortgage and asset-backed-securities........................ 506.8 485.8
-------- --------
$3,589.6 $3,479.5
======== ========
</TABLE>

Mortgage loans on real estate in the Closed Block at December 31, 1999 and
December 31, 1998 consist of the following:

<TABLE>
<CAPTION>
DECEMBER 31, DECEMBER 31,
1999 1998
------------ ------------
($ IN MILLIONS)
<S> <C> <C>
Commercial mortgage loans.................................. $394.9 $382.0
Agricultural and other loans............................... 62.4 73.3
------ ------
Subtotal................................................. 457.3 455.3
Less: valuation allowances................................. 14.3 23.6
------ ------
Mortgage loans, net of valuation allowances................ $443.0 $431.7
====== ======
</TABLE>

An analysis of the valuation allowances for the year ended December 31,
1999 and for the period from November 16, 1998 through December 31, 1998 is as
follows:

<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
Beginning balance........................................... $23.6 $24.7
Increase (decrease) in allowance............................ 0.4 (0.8)
Reduction due to pay downs and pay offs..................... -- (0.3)
Transfer to real estate..................................... (9.7) --
----- -----
Balance, December 31........................................ $14.3 $23.6
===== =====
</TABLE>

F-65
<PAGE> 149
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

Impaired mortgage loans along with related valuation allowances were as
follows as of December 31, 1999 and December 31, 1998:

<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
Investment in impaired mortgage loans (before valuation
allowances):
Loans that have valuation allowances........................ $108.7 $117.9
------ ------
Loans that do not have valuation allowances................. 20.1 31.1
Subtotal.................................................. 128.8 149.0
------ ------
Valuation allowances........................................ (25.6) (17.5)
Impaired mortgage loans, net of valuation allowances........ $103.2 $131.5
====== ======
</TABLE>

For the year ended December 31, 1999, the Closed Block's average recorded
investment in impaired mortgage loans was $117.4 million and the Closed Block
recognized $11.6 million on impaired loans. During the period from November 16,
1998 through December 31, 1998, the Closed Block's average recorded investment
in impaired mortgage loans was approximately $138.3 million and the Closed Block
recognized $1.8 million of interest income on impaired loans.

At December 31, 1999 and December 31, 1998 the carrying values of mortgage
loans in the Closed Block which were non-income producing for the twelve months
preceding such date was $0.0 million and $0.5 million.

At December 31, 1999 and December 31, 1998, the Closed Block had
restructured mortgage loans of $43.5 million and $54.8 million. Interest income
of $5.0 million and $0.7 million was recognized on such loans for the year ended
December 31, 1999 and during the period from November 16, 1998 through December
31, 1998, respectively. Gross interest income on these loans that would have
been recorded in accordance with the original terms of such loans amounted to
approximately $5.4 million and $0.8 million for the respective periods.

21. PRO FORMA INFORMATION (UNAUDITED)

The unaudited pro forma earnings information reported in the statements of
income and comprehensive income give effect to the Transaction as if it occurred
January 1, 1998. Accordingly, pro forma earnings reflect the elimination of
demutualization expenses, which were assumed to have been fully incurred prior
to January 1, 1998, and the elimination of the differential earnings (surplus)
tax applicable to mutual life insurance companies. MONY Life is no longer
subject to the differential earnings (surplus) tax as a stock life insurance
company.

The unaudited pro forma information is provided for informational purposes
only and should not be construed to be indicative of the Company's consolidated
results of operations had the Transaction been consummated on the date assumed,
and does not in any way represent a projection or forecast of the Company's
consolidated results of operations as of any future date or for any future
period.

F-66
<PAGE> 150
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

The pro forma revenues and expenses of the Closed Block for the year ended
December 31, 1998, based on certain estimates and assumptions that management
believes are reasonable, as if the Closed Block had been established on January
1, 1998, are summarized below ($ in millions):

<TABLE>
<S> <C>
Premiums.................................................... $ 643.9
Net investment income....................................... 373.8
Net realized gains on investments........................... 10.2
Other income................................................ 1.9
--------
Total revenues............................................ 1,029.8
--------
Benefits to policyholders................................... 665.4
Interest credited to policyholders' account balances........ 8.7
Amortization of deferred policy acquisition costs........... 78.8
Dividends to policyholders.................................. 214.9
Other operating costs and expenses.......................... 9.8
--------
Total benefits and expenses............................... 977.6
--------
Contribution from the Closed Block..................... $ 52.2
========
</TABLE>

22. EARLY RETIREMENT PROGRAM

On June 30, 1999, the Company announced a voluntary early retirement
program for approximately 500 eligible employees of which 300 employees elected
to participate. The program is part of an overall companywide realignment of
staff and resources, which may also include the elimination and/or shifting of
certain job functions and the addition of employees with new skill sets. The
Company has recorded a one-time restructuring charge of $59.7 million pre-tax in
the third quarter of 1999.

23. SUBSEQUENT EVENTS

a) In January 2000, the New York Insurance Department approved, and MONY
Life paid, a dividend to MONY Group in the amount of $75 million.

b) On January 12, 2000, the Holding Company filed a registration statement
on Form S-3 with the Securities and Exchange Commission (the "SEC") to register
certain securities. This registration, known as a "Shelf Registration", provides
MONY Group with the ability to offer various securities to the public, when it
deems appropriate, to raise proceeds up to an amount not to exceed $1.0 billion
in the aggregate for all issuances of securities thereunder. It is the intention
of the MONY Group to use this facility to raise proceeds for mergers and
acquisitions and for other general corporate matters of MONY Group and its
subsidiaries, as it considers necessary.

c) On March 8, 2000, the Holding Company issued $300.0 million principal
amount of senior notes (the "Senior Notes") pursuant to the aforementioned Shelf
Registration. The Senior Notes mature on March 15, 2010 and bear interest at
8.35% per annum. The principal amount of the Senior Notes is payable at maturity
and interest is payable semi-annually. The net proceeds to the Company from the
issuance of the Senior Notes, after deducting underwriting commissions and other
expenses (primarily legal and accounting fees), were approximately $297.0
million. Approximately $267.6 million of the net proceeds from the issuance of
the Senior Notes was used by the Holding Company to finance the repurchase, on
March 8, 2000, by MONY Life of all of its outstanding $115.0 million face amount
9.5% coupon surplus notes, and a $116.5 million face amount of its $125.0
million face amount 11.25% coupon surplus notes (hereafter referred to as the
"9.5% Notes" and "11.25% Notes", respectively), which were outstanding at
December 31, 1999. See Note 16 to the

F-67
<PAGE> 151
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

Consolidated Financial Statements. The balance of the net proceeds from the
issuance of the Senior Notes will be used by the Holding Company for general
corporate purposes.

To finance MONY Life's repurchase of the 9.5% Notes and the 11.25% Notes,
the Holding Company, on March 8, 2000: (i) purchased two surplus notes from MONY
Life (hereafter referred to as the "Inter-Company Surplus Notes") to replace the
9.5% Notes and the 11.25% Notes. The term of the Inter-company Surplus Notes are
identical to the 9.5% Notes and 11.25% Notes, except that the Inter-company
Surplus Notes were priced to yield a current market rate of interest and the
inter-company surplus note issued to replace the $116.5 million face amount of
the 11.25% Notes was issued at a face amount of $100.0 million, and
(ii) contributed capital to MONY Life in the amount of $65.0 million.

As a result of the repurchase of the 9.5% Notes and the 11.25% Notes, MONY
Life will record an after-tax loss of approximately $36.1 million during the 1st
quarter of 2000. The loss resulted from the premium paid by MONY Life to the
holders of the 9.5% Notes and the 11.25% Notes reflecting the excess of their
fair value over their carrying value on MONY Life's books at the date of the
transaction of approximately $7.0 million and $48.5 million, respectively. This
loss will be reported, net of tax, as an extraordinary item on the MONY Life's
income statement in 2000.

F-68
<PAGE> 152

APPENDIX A

DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST

<TABLE>
<CAPTION>
ATTAINED AGE DEATH BENEFIT
------------ -------------
<S> <C>
40 and Under............................................ 250%
41...................................................... 243
42...................................................... 236
43...................................................... 229
44...................................................... 222
45...................................................... 215
46...................................................... 209
47...................................................... 203
48...................................................... 197
49...................................................... 191
50...................................................... 185
51...................................................... 178
52...................................................... 171
53...................................................... 164
54...................................................... 157
55...................................................... 150
56...................................................... 146
57...................................................... 142
58...................................................... 138
59...................................................... 134
60...................................................... 130
61...................................................... 128
62...................................................... 126
63...................................................... 124
64...................................................... 122
65...................................................... 120
66...................................................... 119
67...................................................... 118
68...................................................... 117
69...................................................... 116
70...................................................... 115
71...................................................... 113
72...................................................... 111
73...................................................... 109
74...................................................... 107
75-90................................................... 105
91...................................................... 104
92...................................................... 103
93...................................................... 102
94...................................................... 101
95...................................................... 100
</TABLE>

A-1
<PAGE> 153

[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 154

APPENDIX B

ALTERNATE DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST

<TABLE>
<CAPTION>
ATTAINED AGE APPLICABLE PERCENTAGE
------------ ---------------------
<S> <C>
40 and Under.................................... 250%
41.............................................. 243
42.............................................. 236
43.............................................. 229
44.............................................. 222
45.............................................. 215
46.............................................. 209
47.............................................. 203
48.............................................. 197
49.............................................. 191
50.............................................. 185
51.............................................. 178
52.............................................. 211
53.............................................. 210
54.............................................. 208
55.............................................. 206
56.............................................. 204
57.............................................. 203
58.............................................. 202
59.............................................. 203
60.............................................. 204
61.............................................. 205
62.............................................. 206
63.............................................. 207
64.............................................. 208
65.............................................. 209
66.............................................. 210
67.............................................. 211
68.............................................. 212
69.............................................. 213
70.............................................. 214
71.............................................. 215
72.............................................. 216
73.............................................. 217
74.............................................. 218
75.............................................. 214
76.............................................. 207
77.............................................. 199
78.............................................. 192
79.............................................. 186
80.............................................. 180
81.............................................. 174
82.............................................. 169
</TABLE>

B-1
<PAGE> 155

<TABLE>
<CAPTION>
ATTAINED AGE APPLICABLE PERCENTAGE
------------ ---------------------
<S> <C>
83.............................................. 164
84.............................................. 159
85.............................................. 145
86.............................................. 133
87.............................................. 120
88.............................................. 105
89.............................................. 105
90.............................................. 105
91.............................................. 104
92.............................................. 103
93.............................................. 102
94.............................................. 101
95.............................................. 100
</TABLE>

B-2
<PAGE> 156

APPENDIX C

DEATH BENEFIT PERCENTAGE FOR
CASH VALUE ACCUMULATION TEST

MALE

<TABLE>
<CAPTION>
APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
ATTAINED AGE NON-SMOKER SMOKER
------------ --------------------- ---------------------
<S> <C> <C>
18......................... 728.68% 590.77%
19......................... 707.62 574.17
20......................... 687.37 558.07
21......................... 667.46 542.22
22......................... 647.92 526.63
23......................... 628.74 511.31
24......................... 609.54 496.26
25......................... 590.76 481.26
26......................... 572.38 466.56
27......................... 554.10 451.96
28......................... 536.27 437.70
29......................... 518.88 423.75
30......................... 501.92 410.14
31......................... 485.40 397.00
32......................... 469.31 384.18
33......................... 453.85 371.79
34......................... 438.80 359.81
35......................... 424.14 348.23
36......................... 410.04 337.03
37......................... 396.46 326.18
38......................... 383.38 315.76
39......................... 370.76 305.81
40......................... 358.57 296.22
41......................... 346.81 287.04
42......................... 335.54 278.22
43......................... 324.63 269.81
44......................... 314.16 261.75
45......................... 304.09 254.03
46......................... 294.39 246.61
47......................... 285.04 239.50
48......................... 276.02 232.68
49......................... 267.36 226.16
50......................... 259.04 219.90
51......................... 251.02 213.88
52......................... 243.33 208.11
53......................... 235.94 202.60
54......................... 228.86 197.34
55......................... 222.06 192.33
56......................... 215.56 187.55
57......................... 209.33 182.99
58......................... 203.37 178.63
</TABLE>

C-1
<PAGE> 157

<TABLE>
<CAPTION>
APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
ATTAINED AGE NON-SMOKER SMOKER
------------ --------------------- ---------------------
<S> <C> <C>
59......................... 197.66 174.46
60......................... 192.20 170.45
61......................... 186.98 166.61
62......................... 181.99 162.94
63......................... 177.22 159.45
64......................... 172.68 156.13
65......................... 168.35 152.99
66......................... 164.24 150.02
67......................... 160.33 147.20
68......................... 156.60 144.52
69......................... 153.06 141.95
70......................... 149.67 139.49
71......................... 146.45 137.14
72......................... 143.43 134.90
73......................... 140.55 132.78
74......................... 137.83 130.79
75......................... 135.30 128.92
76......................... 132.92 127.18
77......................... 130.69 125.56
78......................... 128.59 124.03
79......................... 126.59 122.59
80......................... 124.70 121.20
81......................... 122.89 119.86
82......................... 121.17 118.59
83......................... 119.55 117.37
84......................... 118.03 116.23
85......................... 116.60 115.14
86......................... 115.26 114.11
87......................... 113.97 113.09
88......................... 112.72 112.05
89......................... 111.47 111.00
90......................... 110.17 109.86
91......................... 108.76 108.59
92......................... 107.18 107.09
93......................... 105.31 105.27
94......................... 103.00 102.99
95......................... 100.00 100.00
</TABLE>

C-2
<PAGE> 158

APPENDIX D

DEATH BENEFIT PERCENTAGE FOR
CASH VALUE ACCUMULATION TEST

FEMALE

<TABLE>
<CAPTION>
APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
ATTAINED AGE NON-SMOKER SMOKER
------------ --------------------- ---------------------
<S> <C> <C>
18......................... 834.33% 734.20%
19......................... 807.96 710.85
20......................... 782.15 688.01
21......................... 756.99 666.21
22......................... 733.03 644.93
23......................... 709.65 624.17
24......................... 686.84 603.93
25......................... 664.60 584.56
26......................... 642.93 565.67
27......................... 621.82 547.24
28......................... 601.64 529.58
29......................... 581.97 512.35
30......................... 562.81 495.56
31......................... 544.16 479.44
32......................... 526.29 463.72
33......................... 508.89 448.60
34......................... 491.95 434.04
35......................... 475.69 420.02
36......................... 459.86 406.34
37......................... 444.65 393.15
38......................... 430.01 380.55
39......................... 415.92 368.49
40......................... 402.34 356.94
41......................... 389.25 345.85
42......................... 376.74 335.30
43......................... 364.65 325.13
44......................... 353.07 315.41
45......................... 341.85 306.10
46......................... 331.09 297.10
47......................... 320.73 288.44
48......................... 310.68 280.11
49......................... 300.99 272.07
50......................... 291.71 264.37
51......................... 282.75 256.96
52......................... 274.14 249.83
53......................... 265.85 242.95
54......................... 257.86 236.34
55......................... 250.15 229.97
56......................... 242.74 223.86
57......................... 235.60 217.95
58......................... 228.71 212.21
</TABLE>

D-1
<PAGE> 159

<TABLE>
<CAPTION>
APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
ATTAINED AGE NON-SMOKER SMOKER
------------ --------------------- ---------------------
<S> <C> <C>
59......................... 222.05 206.64
60......................... 215.61 201.22
61......................... 209.36 195.96
62......................... 203.34 190.86
63......................... 197.56 185.95
64......................... 192.00 181.25
65......................... 186.70 176.77
66......................... 181.65 172.48
67......................... 176.83 168.37
68......................... 172.20 164.42
69......................... 167.73 160.60
70......................... 163.41 156.89
71......................... 159.25 153.30
72......................... 155.27 149.84
73......................... 151.47 146.54
74......................... 147.87 143.42
75......................... 144.48 140.48
76......................... 141.28 137.72
77......................... 138.27 135.12
78......................... 135.43 132.65
79......................... 132.74 130.32
80......................... 130.18 128.09
81......................... 127.75 125.96
82......................... 125.46 123.93
83......................... 123.30 122.01
84......................... 121.27 120.20
85......................... 119.37 118.50
86......................... 117.58 116.89
87......................... 115.88 115.36
88......................... 114.25 113.87
89......................... 112.64 112.39
90......................... 111.03 110.86
91......................... 109.35 109.25
92......................... 107.54 107.49
93......................... 105.49 105.47
94......................... 103.05 103.05
95......................... 100.00 100.00
</TABLE>

D-2
<PAGE> 160

APPENDIX E

ALTERNATE DEATH BENEFIT PERCENTAGE FOR
CASH VALUE ACCUMULATION TEST
MALE

<TABLE>
<CAPTION>
APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
ATTAINED NON-SMOKER SMOKER
-------- --------------------- ---------------------
<S> <C> <C>
18 728.68% 590.77%
19 707.62 574.17
20 687.37 558.07
21 667.46 542.22
22 647.92 526.63
23 628.74 511.31
24 609.54 496.26
25 590.76 481.26
26 572.38 466.56
27 554.10 451.96
28 536.27 437.70
29 518.88 423.75
30 501.92 410.14
31 485.40 397.00
32 469.31 384.18
33 453.85 371.79
34 438.80 359.81
35 424.14 348.23
36 410.04 337.03
37 396.46 326.18
38 383.38 315.76
39 370.76 305.81
40 358.57 296.22
41 346.81 287.04
42 335.54 278.22
43 324.63 269.81
44 314.16 261.75
45 304.09 254.03
46 294.39 246.61
47 285.04 239.50
48 276.02 232.68
49 267.36 226.16
50 259.04 219.90
51 251.02 213.88
52 247.00 211.25
53 244.00 209.53
54 241.00 207.81
55 238.00 206.14
56 235.00 204.47
57 232.00 202.80
58 230.00 202.03
</TABLE>

E-1
<PAGE> 161

<TABLE>
<CAPTION>
APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
ATTAINED NON-SMOKER SMOKER
-------- --------------------- ---------------------
<S> <C> <C>
59 230.00 203.00
60 230.00 203.98
61 230.00 204.95
62 230.00 205.93
63 230.00 206.95
64 230.00 207.96
65 230.00 209.01
66 230.00 210.08
67 230.00 211.17
68 230.00 212.25
69 230.00 213.31
70 230.00 214.36
71 230.00 215.38
72 230.00 216.32
73 230.00 217.29
74 230.00 218.24
75 221.89 211.43
76 214.00 204.76
77 205.18 197.13
78 196.74 189.77
79 189.89 183.88
80 183.31 178.16
81 176.96 172.61
82 170.85 167.21
83 164.98 161.98
84 159.34 156.91
85 145.75 143.93
86 132.55 131.22
87 119.67 118.74
88 112.72 112.05
89 111.47 111.00
90 110.17 109.86
91 108.76 108.59
92 107.18 107.09
93 105.31 105.27
94 103.00 102.99
95 100.00 100.00
</TABLE>

E-2
<PAGE> 162

APPENDIX F

ALTERNATE DEATH BENEFIT PERCENTAGE FOR
CASH VALUE ACCUMULATION TEST
FEMALE

<TABLE>
<CAPTION>
ATTAINED APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
AGE NON-SMOKER SMOKER
-------- --------------------- ---------------------
<S> <C> <C>
18 834.33% 734.20%
19 807.96 710.85
20 782.15 688.01
21 756.99 666.21
22 733.03 644.93
23 709.65 624.17
24 686.84 603.93
25 664.60 584.56
26 642.93 565.67
27 621.82 547.24
28 601.64 529.58
29 581.97 512.35
30 562.81 495.56
31 544.16 479.44
32 526.29 463.72
33 508.89 448.60
34 491.95 434.04
35 475.69 420.02
36 459.86 406.34
37 444.65 393.15
38 430.01 380.55
39 415.92 368.49
40 402.34 356.94
41 389.25 345.85
42 376.74 335.30
43 364.65 325.13
44 353.07 315.41
45 341.85 306.10
46 331.09 297.10
47 320.73 288.44
48 310.68 280.11
49 300.99 272.07
50 291.71 264.37
51 282.75 256.96
52 278.27 253.60
53 274.93 251.25
54 271.54 248.87
55 268.10 246.47
56 264.63 244.05
57 261.11 241.54
58 258.66 240.00
59 258.39 240.05
</TABLE>

F-1
<PAGE> 163

<TABLE>
<CAPTION>
ATTAINED APPLICABLE PERCENTAGE APPLICABLE PERCENTAGE
AGE NON-SMOKER SMOKER
-------- --------------------- ---------------------
<S> <C> <C>
60 258.02 240.80
61 257.53 241.05
62 256.99 241.22
63 256.40 241.34
64 255.74 241.41
65 255.07 241.50
66 254.38 241.53
67 253.67 241.53
68 252.90 241.48
69 252.06 241.33
70 251.12 241.10
71 250.12 240.76
72 248.99 240.27
73 247.88 239.81
74 246.75 239.32
75 236.94 230.39
76 227.46 221.72
77 217.08 212.13
78 207.21 202.96
79 199.11 195.47
80 191.37 188.29
81 183.97 181.38
82 176.90 174.74
83 170.15 168.37
84 163.72 162.26
85 149.21 148.13
86 135.22 134.43
87 121.68 121.13
88 114.25 113.87
89 112.64 112.39
90 111.03 110.86
91 109.35 109.25
92 107.54 107.49
93 105.49 105.47
94 103.05 103.05
95 100.00 100.00
</TABLE>

F-2
<PAGE> 164

APPENDIX G

ILLUSTRATIONS OF DEATH PROCEEDS, 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 Proceeds and Surrender Values can vary
over an extended period of time. In addition, each table compares these values
with premium paid accumulated with interest.

The Policies illustrated include the following:

<TABLE>
<CAPTION>
DEF. OF DEATH TARGET
LIFE INS. BENEFIT SPECIFIED DEATH SEE
SEX AGE UNDERWRITING METHOD SMOKER TEST OPTION AMOUNT BENEFIT PAGES
---- --- ------------------- ------ ---------- ------- --------- --------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Male 45 Medical Issue Preferred Non-Smoker CVAT 1 1,000,000 1,000,000 G-6
Male 45 Medical Issue Preferred Non-Smoker CVAT 2 1,000,000 1,000,000 G-7
Male 45 Medical Issue Preferred Non-Smoker GPT 1 1,000,000 1,000,000 G-8
Male 45 Medical Issue Preferred Non-Smoker GPT 2 1,000,000 1,000,000 G-9
Male 45 Guaranteed Issue Non-Smoker CVAT 1 1,000,000 1,000,000 G-10
Male 45 Guaranteed Issue Non-Smoker CVAT 2 1,000,000 1,000,000 G-11
Male 45 Guaranteed Issue Non-Smoker GPT 1 1,000,000 1,000,000 G-12
Male 45 Guaranteed Issue Non-Smoker GPT 2 1,000,000 1,000,000 G-13
</TABLE>

The tables show how Death Proceeds 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%
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 Proceeds and Surrender Values will be different if
the returns averaged 0% 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 fourth column of each table shows what would happen if an amount equal
to the premiums (shown in the third column) were invested to earn interest,
after taxes, of 5% compounded annually. All premium payments are illustrated as
if they were made at the beginning of the year.

The amounts shown for Death Proceeds and Surrender Values sections reflect
the fact that 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, including the premium loads, administrative charges,
mortality and expense risk charges, and Sales Charges. The difference between
the Account Value and the Surrender Value in the first three years is the refund
of Sales Charges. Account Value is not shown in the accompanying tables.

The tables illustrate cost of insurance and expense charges at both current
rates (which are described under Cost of Insurance, page 47) and at the maximum
rates guaranteed in the Policies. The amounts shown at the end of the Policy
year reflect a daily charge against the Portfolios. These charges include the
charge to Portfolio assets for investment management and direct expenses. The
initial mortality and expense risk charge is .60% annually on a guaranteed
basis; illustrations showing current rates reflect a mortality and expense risk
charge of .30% annually beginning after the tenth Policy Anniversary; and
illustrations showing guaranteed rates reflect a mortality and expense risk
charge of .45% annually beginning on and after the tenth Policy Anniversary.

Since the Company is unable to predict how a particular Policy owner will
allocate net premium payments and cash values among the available Subaccounts,
the Company has assumed that the daily investment advisory fee and other
expenses of the hypothetical portfolio was deducted at a rate equivalent to
0.87% of the aggregate average daily net assets of the Portfolio. Of course, the
investment advisory fee and other expenses actually incurred will depend upon
the Policy owner's choice of Subaccounts. 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

G-1
<PAGE> 165

the expense reimbursement arrangements will continue in the future, and any
unreimbursed expenses would be reflected in the values included in the tables.

The effect of these investment management and direct expenses on a 0% gross
rate of return would result in a net rate of return of -0.87%, and on 12% it
would be 11.13%.

The tables assume the deduction of charges including administrative and
sale charges. For each age, there are tables 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% and 12%.

The Company will furnish, upon request, a comparable illustration based on
the age and the sex of the proposed insured, underwriting and premium class
assumptions and an initial Specified Amount, Target Death Benefit and Schedule
Premium Payments of the applicant's choice. In addition, the individual chosen
Definition of Life Insurance Test will be illustrated. If a Policy is purchased,
an individualized illustration will be delivered reflecting the Schedule 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.

This page, beginning with the next paragraph, page G-3, and page G-4 to the
section headed "Additional Riders and Benefits Included in This Proposal", will
precede each of the flexible premium variable life to age 95 compliance reports
statements and page G-4 from and after the section headed "Additional Riders and
Benefits Included in This Proposal" on page G-4 and concluding on page G-5 will
follow each of the flexible premium variable life to age 95 compliance reports
statements which begin on page G-6.

The Corporate Sponsored Variable Universal Life is a flexible premium
variable life insurance policy which provides insurance to maturity age 95. The
initial premium is due on or before delivery of the policy. You can choose the
amount and frequency of premium payments within certain limits.

The Death Proceeds, Account Value and Surrender Value under CSVUL Flexible
Premium Variable Life Insurance may vary up and down to reflect the investment
experience of the subaccounts of the Separate Account and are based on
hypothetical investments return assumptions. Each illustration assumes that the
combination of the amounts allocated by a policyowner to the subaccounts
experienced hypothetical gross rate of investment return equivalent to 0% and
any other rate specified to a maximum of 12%.

Subject to the terms of the policy, the policyowner may select and change
the death benefit Option. 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. Under Option 1, the death benefit will be equal to the Specified Amount
of the Policy or, if greater, the Cash Value on the date of death multiplied by
a Death Benefit Percentage. Under Option 2, the death benefit will be equal to
the Specified Amount of the Policy plus the Account Value on the date of death
or, if greater, the Cash Value on the date of death multiplied by a Death
Benefit Percentage.

These illustrations of Death Proceeds, Account Value and Surrender Value
are designed to show the way in which variable life insurance operates. The
hypothetical returns are not intended as estimates of the future performance of
any subaccounts. MONY Life Insurance Company is not able to predict the future
performance of the subaccounts.

The values of each subaccount may vary up and down and the policyowner may
vary how premiums and cash values are allocated among the subaccounts.
Illustrations are based on assumed allocations and hypothetical rates of return
and reflect both guaranteed and non-guaranteed charges, fees and deductions.
These assumptions are made for illustrative purposes only and actual performance
may differ from what is shown.

Death Proceeds, Account Value and Surrender Value under the policy are
discussed in the prospectus and in your policy. The amounts for the Death
Proceeds, Account Value and Surrender Value are as of the end of the policy year
and take into consideration the charges and expenses assessed by the policy as
well as those assessed by the underlying funds.

The daily charge for investment advisory services and other costs and
expenses of operating the underlying Fund Portfolio varies by subaccount and
ranges from 0.26% to 1.50% on an annualized basis. Since

G-2
<PAGE> 166

a specific allocation amongst subaccounts is not assumed in the illustration,
the charge assumed is equivalent to an annual rate of 0.87%. The actual charge
will depend upon the policyowner's choice of subaccounts.

The daily charges discussed in the second paragraph above are effectively
subtracted from the hypothetical gross investment rate of return. The resulting
net investment rate of return is shown in parentheses next to the hypothetical
gross rate.

COLUMN DESCRIPTIONS
AND KEY TERMS Age EOY: Insured's attained age at the end of the
policy year.

Net Premium Outlay: The annualized out-of-pocket
payments for each policy year including scheduled
and any anticipated unscheduled premium payments
less any illustrated surrenders or loans plus loan
interest, if any. Premium payments are assumed to
be paid at the beginning of each premium paying
period.

Premium Accumulated at 5%: The amount to which the
premiums paid for the policy to the end of the
policy year would accumulate if an amount equal to
such premium were invested to earn interest, after
taxes at 5% compounded annually.

Annual Loan: Reflects any loans that have been
requested.

Partial Surrenders from Insurance Policy: Reflects
any partial surrenders that have been requested. A
partial surrender could reduce the Death Proceeds,
and will reduce the Account Value and Surrender
Value by the amount surrendered plus a transaction
fee, which is the lesser of $25 or 2% of the amount
surrendered.

Cash Value: Account Value plus any applicable
refund of sales charge.

Death Benefit: The greater of the Target Death
Benefit and the Base Death Benefit.

GUARANTEED CHARGES AT 0.00%

Surrender Value: The value of the subaccount at
the end of the policy year assuming a 0.00%
hypothetical rate of return on the Funds, less all
charges, fees and deductions at their guaranteed
maximum plus the return of loads if the policy were
surrendered prior to the end of the first three
years. The surrender value also takes into account
any loans or partial surrenders illustrated.

Death Proceeds: The benefit payable under the
policy and any riders if the insured's death occurs
at the end of the policy year, assuming a 0.00%
hypothetical rate of return on the Funds, less all
charges, fees and deductions at their guaranteed
maximums.

GUARANTEED CHARGES AT 12.00%

Surrender Value: The value of the subaccount at
the end of the policy year assuming a 12.00%
hypothetical rate of return on the Funds, less all
charges, fees and deductions at their guaranteed
maximum plus the return of loads if the policy were
surrendered prior to the end of the first three
years. The surrender value also takes into account
any loans or partial surrenders illustrated.

Death Proceeds: The benefit payable under the
policy and any riders if the insured's death occurs
at the end of the policy year, assuming a

G-3
<PAGE> 167

12.00% hypothetical rate of return on the Funds,
less all charges, fees and deductions at their
guaranteed maximums.

CURRENT CHARGES AT 12.00%

Surrender Value: The value of the subaccount at
the end of the policy year assuming a 12.00%
hypothetical rate of return on the Funds, less all
charges, fees and deductions at the current
non-guaranteed rate plus the return of loads if the
policy were surrendered prior to the end of the
first three years. The surrender value also takes
into account any loans or partial surrenders
illustrated.

Death Proceeds: The benefit payable under the
policy and any rider if the insured's death occurs
at the end of the policy year, assuming a 12.00%
hypothetical rate of return on the Funds, less all
charges, fees and deductions at the current
non-guaranteed rates.

ADDITIONAL RIDERS AND BENEFITS INCLUDED IN THIS PROPOSAL

This illustration includes the following optional insurance benefits that
can be added to the policy by Rider. A charge will be deducted monthly from the
Account Value for each of the optional benefits added to the Policy. The
following is a brief summary of the Riders. Refer to the prospectus for further
explanations of each Rider.

Term Insurance Rider: None.

ADDITIONAL INFORMATION

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 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 change in death
benefit 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
for burial expenses 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.

<TABLE>
<S> <C>
- Initial 7-pay premium.............. $52,449.81
- Target premium..................... $52,449.81
Note: this amount is shown, if
applicable, on each illustration
- Initial Guideline single........... which follows
Note: this amount is shown, if
applicable, on each illustration
- Initial Guideline annual........... which follows
</TABLE>

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 reflects
the effect of all loans and surrenders. The death benefit, account value and
surrender value will differ if premiums are paid in different amounts,
frequencies, or not on the due date.

The policy's Surrender Value includes any sales charge refund on full
surrender. The sale charge refund equals the sales charge collected in the first
policy year or the first policy year of an increase adjusted by the following
schedule: Year 1 - 100%, Year 2 - 66.67%, Year 3 - 33.33%.

Premiums less the following deductions are added to the Account Value. (1)
A premium tax charge of 2.00% of gross premium in all years, (2) a sales charge
of the gross premium equal to 9.00% up to the target

G-4
<PAGE> 168

premium in years 1 - 10, 0% in policy years 11 and after, and 0% of premium in
excess of the target premium in all years, (3) a DAC tax charge of 1.25% of
gross premium in all years. An administrative charge is deducted each month.
During the first 36 months the charge is $12.50 per month for fully underwritten
policies and $10.50 per month for guaranteed issue policies; thereafter, the
charge is $7.50 per month.

Those columns assuming guaranteed charges use the current monthly mortality
charge and current charges for rider benefits, if any, for the first year as
well as the assumed hypothetical gross annual investment return indicated.
Thereafter, these columns use guaranteed charges for monthly mortality charges,
rider benefits, if any, and the assumed hypothetical gross annual investment
indicated. Those columns assuming current charges are based upon "current
charges" and the assumed gross annual investment return indicated.

The current charges are declared by MONY Life Insurance Company, 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 MONY Life Insurance Company.

[INCLUDED IF LOAN IS ILLUSTRATED]

A policy loan will have a permanent effect on benefits under this policy.
Loan interest at an annual rate of 4.6% will be charged in arrears. Amounts
borrowed will earn interest at an annual rate of 4%. It is anticipated but not
guaranteed that after the 10th policy anniversary the annual interest rate
applicable to this loan amount will be .30% higher than the rate applicable to
policies of the same type which have not reached their 10th anniversary. This
increase is based on current expectations as to mortality, investment earnings,
persistency and expenses and is not guaranteed. If loan interest is not paid by
the policyholder when due, the amount of the loan interest will be added to the
amount of loan outstanding. This will have the effect of reducing the cash value
of the policy and may reduce benefits available under the policy. Depending upon
the performance of the subaccounts chosen by the policyholder, the cash value
available for loans may be more or less than the amount of the premiums paid by
the policyholder. Similarly, the amount of cash value available for surrenders
will depend upon the performance of the subaccounts chosen by the policyholder,
and the cash value available for surrenders may be more or less than the amount
of premiums paid by the policyholder. Adverse tax consequences could occur if a
policy subject to loans is surrendered or permitted to lapse. In addition, loan
interest may not be deductible. Please consult your tax advisor for advice
surrounding the deductibility of loan interest and other tax consequences.

G-5
<PAGE> 169

LIFE INSURANCE ILLUSTRATION
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95

COMPLIANCE REPORT

INSURED NAME, MALE, PREFERRED NON-SMOKER, AGE 45
INITIAL TARGET DEATH BENEFIT: $1,000,000
INITIAL SPECIFIED AMOUNT: $1,000,000
ANNUAL PREMIUM: $52,449.00
INITIAL DEATH BENEFIT OPTION: OPTION 1
TAX BRACKET %: 33%(EE)/40%(ER)
LOAN INTEREST RATE: 4.6% IN ARREARS
DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: FULLY UNDERWRITTEN

6 51 52,449 374,591 0 0 243,354 1,000,000 371,896 1,000,000 379,361 1,000,000
7 52 52,449 448,392 0 0 281,225 1,000,000 457,811 1,149,196 467,513 1,173,551
8 53 0 470,812 0 0 272,802 1,000,000 501,380 1,220,009 513,951 1,250,596
9 54 0 494,352 0 0 264,017 1,000,000 548,896 1,295,066 565,145 1,333,404
10 55 0 519,070 0 0 254,863 1,000,000 600,735 1,374,843 621,592 1,422,575

11 56 0 545,023 0 0 245,615 1,000,000 658,205 1,461,609 685,791 1,522,868
12 57 0 572,275 0 0 235,782 1,000,000 720,846 1,553,856 756,587 1,630,899
13 58 0 600,888 0 0 225,350 1,000,000 789,158 1,651,945 834,668 1,747,212
14 59 0 630,933 0 0 214,210 1,000,000 863,583 1,756,269 920,229 1,871,470
15 60 0 662,479 0 0 202,249 1,000,000 944,602 1,867,101 1,013,890 2,004,056

16 61 0 695,603 0 0 189,345 1,000,000 1,032,738 1,984,922 1,116,202 2,145,340
17 62 0 730,383 0 0 175,370 1,000,000 1,128,558 2,110,178 1,228,003 2,296,121
18 63 0 766,902 0 0 160,187 1,000,000 1,232,686 2,243,365 1,349,959 2,456,791
19 64 0 805,247 0 0 143,444 1,000,000 1,345,551 2,384,586 1,483,607 2,629,248
20 65 0 845,510 0 0 125,075 1,000,000 1,467,989 2,534,924 1,630,130 2,814,908

@age 70 0 1,079,108 0 0 lapsed lapsed 2,248,568 3,441,657 2,631,528 4,027,817
@age 85 0 2,243,387 0 0 7,331,061 8,652,851 10,534,703 12,434,111
@age 95 0 3,654,240 0 0 16,015,215 16,495,671 26,315,657 27,105,126
</TABLE>

---------------
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender Value
and Death Proceeds for a policy would be different from those shown if the
actual rates of investment return applicable to the policy averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual policy years. No representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.

PREPARED: 4/30/99

G-6

<PAGE> 170

LIFE INSURANCE ILLUSTRATION

CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95

COMPLIANCE REPORT

INSURED NAME, MALE, PREFERRED NON-SMOKER, AGE 45
INITIAL TARGET DEATH BENEFIT: $1,000,000
INITIAL SPECIFIED AMOUNT: $1,000,000
ANNUAL PREMIUM: $52,449.00
INITIAL DEATH BENEFIT OPTION: OPTION 2
TAX BRACKET %: 33% (EE)/40%(ER)
LOAN INTEREST RATE: 4.6% IN ARREARS
DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: FULLY UNDERWRITTEN

6 51 52,449 374,591 0 0 239,703 1,239,703 365,889 1,365,889 375,239 1,375,239
7 52 52,449 448,392 0 0 276,097 1,276,097 449,221 1,449,221 461,831 1,461,831
8 53 0 470,812 0 0 266,132 1,266,132 489,926 1,489,926 506,644 1,506,644
9 54 0 494,352 0 0 255,717 1,255,717 534,257 1,534,257 556,147 1,556,147
10 55 0 519,070 0 0 244,859 1,244,859 582,593 1,582,593 610,831 1,610,831

11 56 0 545,023 0 0 233,802 1,233,802 636,188 1,636,188 673,133 1,673,133
12 57 0 572,275 0 0 222,056 1,222,056 694,592 1,694,592 741,908 1,741,908
13 58 0 600,888 0 0 209,630 1,209,630 758,317 1,758,317 817,855 1,817,855
14 59 0 630,933 0 0 196,415 1,196,415 827,802 1,827,802 901,114 1,901,114
15 60 0 662,479 0 0 182,300 1,182,300 903,533 1,903,533 992,346 1,992,346

16 61 0 695,503 0 0 167,179 1,167,179 986,046 1,986,046 1,092,160 2,099,132
17 62 0 730,383 0 0 150,946 1,150,946 1,075,935 2,075,935 1,201,412 2,246,401
18 63 0 766,902 0 0 133,496 1,133,496 1,173,858 2,173,858 1,320,706 2,403,552
19 64 0 805,247 0 0 114,488 1,114,488 1,280,289 2,280,289 1,445,455 2,572,268
20 65 0 845,510 0 0 93,942 1,093,942 1,396,120 2,396,120 1,594,801 2,753,902

@age 69 0 1,027,722 0 0 lapsed lapsed 1,965,280 3,077,628 2,340,473 3,665,180
@age 85 0 2,243,387 0 0 6,969,948 8,226,629 10,306,276 12,164,497
@age 95 0 3,654,240 0 0 14,861,668 15,861,668 25,698,251 26,698,251
</TABLE>

---------------
This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value.
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender Value
and Death Proceeds for a policy would be different from those shown if the
actual rates of investment return applicable to the policy averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual policy years. No representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.

PREPARED: 4/30/99

G-7
<PAGE> 171

LIFE INSURANCE ILLUSTRATION

CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95

COMPLIANCE REPORT

INSURED NAME, MALE, PREFERRED NON-SMOKER, AGE 45
INITIAL TARGET DEATH BENEFIT: $1,000,000
INITIAL SPECIFIED AMOUNT: $1,000,000
ANNUAL PREMIUM: $19,856.92
INITIAL DEATH BENEFIT OPTION: OPTION 1
INITIAL GUIDELINE ANNUAL PREMIUM: $19,856.92
INITIAL GUIDELINE SINGLE PREMIUM: $215,570.68
TAX BRACKET %: 33%(ee)/40%(er)
LOAN INTEREST RATE: 4.6% IN ARREARS
DEFINITION OF LIFE INSURANCE: GPT
UNDERWRITING CLASS: FULLY UNDERWRITTEN

6 51 19,857 141,818 0 0 77,906 1,000,000 121,289 1,000,000 130,051 1,000,000
7 52 19,857 169,759 0 0 88,981 1,000,000 148,245 1,000,000 159,914 1,000,000
8 53 19,857 199,097 0 0 99,525 1,000,000 177,762 1,000,000 193,010 1,000,000
9 54 19,857 229,901 0 0 109,447 1,000,000 210,053 1,000,000 229,687 1,000,000
10 55 19,857 262,246 0 0 118,764 1,000,000 245,469 1,000,000 270,335 1,000,000

11 56 19,857 296,208 0 0 129,362 1,000,000 286,740 1,000,000 318,234 1,000,000
12 57 19,857 331,868 0 0 139,186 1,000,000 332,147 1,000,000 371,317 1,000,000
13 58 19,857 369,311 0 0 148,256 1,000,000 382,252 1,000,000 430,194 1,000,000
14 59 19,857 408,627 0 0 156,490 1,000,000 437,616 1,000,000 495,207 1,000,000
15 60 19,857 449,908 0 0 163,806 1,000,000 498,906 1,000,000 567,106 1,000,000

16 61 19,857 493,253 0 0 170,124 1,000,000 566,911 1,000,000 646,726 1,000,000
17 62 19,857 538,765 0 0 175,361 1,000,000 642,560 1,000,000 735,161 1,000,000
18 63 19,857 586,553 0 0 179,432 1,000,000 726,960 1,000,000 833,515 1,050,229
19 64 19,857 636,731 0 0 182,056 1,000,000 821,347 1,018,470 942,336 1,168,497
20 65 19,857 689,417 0 0 183,236 1,000,000 925,927 1,129,631 1,062,603 1,296,376

@age 77 19,857 1,475,344 0 0 lapsed lapsed 3,406,500 3,576,825 4,024,565 4,225,793
@age 85 19,857 2,518,643 0 0 7,568,843 7,947,285 9,205,197 9,665,456
@age 95 19,857 4,364,849 0 0 19,338,629 19,532,015 24,924,932 25,174,181
</TABLE>

---------------

This is an illustration, not a policy.
The maximum loan value is equal to 90% of the Account Value
Borrowed funds are credited at 4.60% 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 portfolios. The Account Value, Surrender Value
and Death Proceeds for a policy would be different from those shown if the
actual rates of investment return applicable to the policy averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual policy years. No representation can be made that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.

PREPARED: 4/30/99

G-8
<PAGE> 172

LIFE INSURANCE ILLUSTRATION

CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95

COMPLIANCE REPORT

INSURED NAME, MALE, PREFERRED NON-SMOKER, AGE 45
INITIAL TARGET DEATH BENEFIT: $1,000,000
INITIAL SPECIFIED AMOUNT: $1,000,000
ANNUAL PREMIUM: $49,136.68
INITIAL DEATH BENEFIT OPTION: OPTION 2
INITIAL GUIDELINE ANNUAL PREMIUM: $49,136.68
INITIAL GUIDELINE SINGLE PREMIUM: $215,570.68
TAX BRACKET %: 33%(EE)/40%(ER)
LOAN INTEREST RATE: 4.6% IN ARREARS
DEFINITION OF LIFE INSURANCE: GPT
UNDERWRITING CLASS: FULLY UNDERWRITTEN

6 51 49,137 350,935 0 0 223,135 1,223,135 340,824 1,340,824 350,174 1,350,174
7 52 49,137 420,075 0 0 256,908 1,256,908 418,322 1,418,322 430,932 1,430,932
8 53 49,137 492,672 0 0 289,710 1,289,710 503,423 1,503,423 520,141 1,520,141
9 54 49,137 568,899 0 0 321,436 1,321,436 596,796 1,596,796 618,686 1,618,686
10 55 49,137 648,937 0 0 352,103 1,352,103 699,306 1,699,306 727,544 1,727,544

11 56 49,137 732,978 0 0 386,550 1,386,550 817,903 1,817,903 855,121 1,855,121
12 57 49,137 821,220 0 0 419,710 1,419,710 948,219 1,948,219 996,218 1,996,218
13 58 49,137 913,875 0 0 451,600 1,451,600 1,091,500 2,091,500 1,152,296 2,152,296
14 59 49,137 1,011,162 0 0 482,116 1,482,116 1,249,000 2,249,000 1,324,337 2,324,337
15 60 49,137 1,113,313 0 0 511,158 1,511,158 1,422,101 2,422,101 1,513,937 2,513,937

16 61 49,137 1,220,573 0 0 538,627 1,538,627 1,612,336 2,612,336 1,722,740 2,722,740
17 62 49,137 1,333,195 0 0 564,423 1,564,423 1,821,400 2,821,400 1,952,818 2,952,818
18 63 49,137 1,451,448 0 0 588,450 1,588,450 2,051,167 3,051,167 2,206,214 3,206,214
19 64 49,137 1,575,613 0 0 610,373 1,610,373 2,303,457 3,303,457 2,485,954 3,485,954
20 65 49,137 1,705,987 0 0 630,220 1,603,220 2,580,668 3,580,665 2,794,883 3,794,883

@age 86 49,137 6,595,693 0 0 lapsed lapsed 21,563,529 22,641,704 26,122,847 27,428,988
@age 90 49,137 8,518,643 0 0 31,267,183 32,830,541 38,866,185 40,809,492
@age 95 49,137 4,364,849 0 0 49,802,161 50,802,161 63,852,027 64,852,027
</TABLE>

PREPARED: 4/30/99

G-9
<PAGE> 173

LIFE INSURANCE ILLUSTRATION

CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95

COMPLIANCE REPORT

INSURED NAME, MALE, NON-SMOKER, AGE 45
INITIAL TARGET DEATH BENEFIT: $1,000,000
INITIAL SPECIFIED AMOUNT: $1,000,000
ANNUAL PREMIUM: $52,449.00
INITIAL DEATH BENEFIT OPTION: OPTION 1
TAX BRACKET %: 33%(EE)/40%(ER)
LOAN INTEREST RATE: 4.6% IN ARREARS
DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE

6 51 52,449 374,591 0 0 243,422 1,000,000 372,012 1,000,000 375,475 1,000,000
7 52 52,449 448,392 0 0 281,293 1,000,000 457,937 1,149,514 461,899 1,159,459
8 53 0 470,812 0 0 272,870 1,000,000 501,519 1,220,347 506,120 1,231,542
9 54 0 494,352 0 0 264,084 1,000,000 549,048 1,295,425 554,539 1,308,378
10 55 0 519,070 0 0 254,929 1,000,000 600,902 1,375,224 607,569 1,390,483

11 56 0 545,023 0 0 245,681 1,000,000 658,387 1,462,014 669,043 1,485,676
12 57 0 572,275 0 0 235,848 1,000,000 721,046 1,554,287 736,776 1,588,195
13 58 0 600,888 0 0 225,415 1,000,000 789,377 1,652,403 811,106 1,697,888
14 59 0 630,933 0 0 214,275 1,000,000 863,823 1,756,756 892,696 1,815,476
15 60 0 662,479 0 0 202,314 1,000,000 944,864 1,867,619 982,169 1,941,356

16 61 0 695,603 0 0 189,410 1,000,000 1,033,024 1,985,473 1,080,559 2,076,834
17 62 0 730,383 0 0 175,435 1,000,000 1,128,871 2,110,764 1,189,160 2,223,491
18 63 0 766,902 0 0 160,252 1,000,000 1,233,028 2,243,987 1,308,671 2,381,651
19 64 0 805,247 0 0 143,510 1,000,000 1,345,925 2,385,247 1,440,497 2,552,849
20 65 0 845,510 0 0 125,141 1,000,000 1,468,397 2,535,628 1,585,940 2,738,602

@age 70 0 1,079,108 0 0 lapsed lapsed 2,249,192 3,442,613 2,559,123 3,916,993
@age 85 0 2,243,387 0 0 7,333,096 8,655,254 10,457,346 12,342,806
@age 95 0 3,654,240 0 0 16,019,662 16,500,252 26,897,668 27,704,597
</TABLE>

PREPARED: 4/30/99

G-10
<PAGE> 174

LIFE INSURANCE ILLUSTRATION

CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95

COMPLIANCE REPORT

INSURED NAME, MALE, NON-SMOKER, AGE 45
INITIAL TARGET DEATH BENEFIT: $1,000,000
INITIAL SPECIFIED AMOUNT: $1,000,000
ANNUAL PREMIUM: $52,449.00
INITIAL DEATH BENEFIT OPTION: OPTION 2
TAX BRACKET %: 33%(EE)/40%(ER)
LOAN INTEREST RATE: 4.6% IN ARREARS
DEFINITION OF LIFE INSURANCE: CVAT
UNDERWRITING CLASS: GUARANTEED ISSUE

6 51 52,449 374,591 0 0 239,770 1,239,770 366,003 1,366,003 369,990 1,369,990
7 52 52,449 448,392 0 0 276,163 1,276,163 449,347 1,449,347 454,004 1,454,004
8 53 0 470,812 0 0 266,197 1,266,197 490,064 1,490,064 495,590 1,495,590
9 54 0 494,352 0 0 255,781 1,255,781 534,410 1,534,410 541,147 1,541,147
10 55 0 519,070 0 0 244,922 1,244,922 582,762 1,582,762 591,092 1,591,092

11 56 0 545,023 0 0 233,864 1,233,864 636,375 1,636,375 649,613 1,649,613
12 57 0 572,275 0 0 222,118 1,222,118 694,799 1,694,799 714,198 1,714,198
13 58 0 600,888 0 0 209,691 1,209,691 758,546 1,758,546 785,123 1,785,123
14 59 0 630,933 0 0 196,475 1,196,475 828,056 1,828,056 863,070 1,863,070
15 60 0 662,479 0 0 182,359 1,182,359 903,813 1,903,813 948,671 1,948,671

16 61 0 695,603 0 0 167,238 1,167,238 986,356 1,986,356 1,043,008 2,043,008
17 62 0 730,383 0 0 151,004 1,151,004 1,076,278 2,076,278 1,147,403 2,147,403
18 63 0 766,902 0 0 133,553 1,133,553 1,174,238 2,174,238 1,262,521 2,297,663
19 64 0 805,247 0 0 114,545 1,114,545 1,280,708 2,280,708 1,389,654 2,462,744
20 65 0 845,510 0 0 93,998 1,093,998 1,396,584 2,411,621 1,529,960 2,641,934

@age 69 0 1,027,722 0 0 lapsed lapsed 1,965,942 3,078,665 2,244,515 3,514,910
@age 85 0 2,243,387 0 0 6,972,297 8,229,402 10,088,035 11,906,908
@age 95 0 3,654,240 0 0 14,867,134 15,867,134 25,915,977 26,915,977
</TABLE>

PREPARED: 4/30/99

G-11
<PAGE> 175

LIFE INSURANCE ILLUSTRATION

CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95

COMPLIANCE REPORT

INSURED NAMED, MALE, NON-SMOKER, AGE 45
INITIAL TARGET DEATH BENEFIT: $1,000,000
INITIAL SPECIFIED AMOUNT: $1,000,000
ANNUAL PREMIUM: $19,852.79
INITIAL DEATH BENEFIT OPTION: OPTION 1
INITIAL GUIDELINE ANNUAL PREMIUM: $19,852.79
INITIAL GUIDELINE SINGLE PREMIUM: $215,502.48
TAX BRACKET %: 33%(EE)/40%(ER)
LOAN INTEREST RATE: 4.6% IN ARREARS
DEFINITION OF LIFE INSURANCE: GPT
UNDERWRITING CLASS: GUARANTEED ISSUE

<TABLE>
<CAPTION>
GUARANTEED POLICY CHARGES CURRENT POLICY CHARGES
----------------------------------------------- -----------------------
HYPOTHETICAL RATES OF RETURN
PARTIAL 0.00% (-0.87% NET) 12.00% (11.13% NET) 12.00% (11.13% NET)
NET PREMIUM SURRENDER --------------------- ----------------------- -----------------------
POLICY AGE PREMIUM ACCUM. ANNUAL FR INSUR SURRENDER DEATH SURRENDER DEATH SURRENDER DEATH
YR EOY OUTLAY @ 5% LOAN POLICY VALUE PROCEEDS VALUE PROCEEDS VALUE PROCEEDS
------ --- ------- --------- ------ --------- --------- --------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 19,853 20,845 0 0 17,188 1,000,000 19,154 1,000,000 19,154 1,000,000
2 47 19,853 42,733 0 0 29,945 1,000,000 35,816 1,000,000 37,163 1,000,000
3 48 19,853 65,715 0 0 42,326 1,000,000 54,112 1,000,000 56,326 1,000,000
4 49 19,853 89,846 0 0 54,265 1,000,000 74,150 1,000,000 77,076 1,000,000
5 50 19,853 115,184 0 0 66,335 1,000,000 96,693 1,000,000 100,056 1,000,000
6 51 19,853 141,789 0 0 77,953 1,000,000 121,373 1,000,000 125,217 1,000,000
7 52 19,853 169,724 0 0 89,025 1,000,000 148,335 1,000,000 152,821 1,000,000
8 53 19,853 199,055 0 0 99,565 1,000,000 177,858 1,000,000 183,157 1,000,000
9 54 19,853 229,853 0 0 109,483 1,000,000 210,155 1,000,000 216,551 1,000,000
10 55 19,853 262,192 0 0 118,796 1,000,000 245,578 1,000,000 253,369 1,000,000
11 56 19,853 296,147 0 0 129,390 1,000,000 286,857 1,000,000 298,184 1,000,000
12 57 19,853 331,799 0 0 139,210 1,000,000 332,274 1,000,000 347,912 1,000,000
13 58 19,853 369,235 0 0 148,276 1,000,000 382,388 1,000,000 402,902 1,000,000
14 59 19,853 408,542 0 0 156,505 1,000,000 437,764 1,000,000 463,825 1,000,000
15 60 19,853 449,814 0 0 163,818 1,000,000 499,068 1,000,000 531,377 1,000,000
16 61 19,853 493,150 0 0 170,131 1,000,000 567,087 1,000,000 606,538 1,000,000
17 62 19,853 538,653 0 0 175,364 1,000,000 642,754 1,000,000 690,403 1,000,000
18 63 19,853 586,431 0 0 179,432 1,000,000 727,173 1,000,000 783,906 1,000,000
19 64 19,853 636,598 0 0 182,052 1,000,000 821,582 1,018,761 887,936 1,101,041
20 65 19,853 689,274 0 0 183,228 1,000,000 926,181 1,129,941 1,003,085 1,223,763
@age 77 19,853 1,569,634 0 0 lapsed lapsed 3,070,993 3,407,215 3,826,303 4,017,618
@age 85 19,853 2,518,119 0 0 7,570,331 7,750,311 8,799,188 9,239,147
@age 95 19,853 4,363,939 0 0 19,342,298 19,342,298 24,115,956 24,357,115
</TABLE>

PREPARED: 4/30/99

G-12
<PAGE> 176

LIFE INSURANCE ILLUSTRATION

CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95

COMPLIANCE REPORT

INSURED NAMED, MALE, NON-SMOKER, AGE 45
INITIAL TARGET DEATH BENEFIT: $1,000,000
INITIAL SPECIFIED AMOUNT: $1,000,000
ANNUAL PREMIUM: $49,133.41
INITIAL DEATH BENEFIT OPTION: OPTION 2
INITIAL GUIDELINE ANNUAL PREMIUM: $49,133.41
INITIAL GUIDELINE SINGLE PREMIUM: $215,502.48
TAX BRACKET %: 33%(EE)/40%(ER)
LOAN INTEREST RATE: 4.6% IN ARREARS
DEFINITION OF LIFE INSURANCE: GPT
UNDERWRITING CLASS: GUARANTEED ISSUE

<TABLE>
<CAPTION>
GUARANTEED POLICY CHARGES CURRENT POLICY CHARGES
----------------------------------------------- -----------------------
HYPOTHETICAL RATES OF RETURN
PARTIAL 0.00% (-0.87% NET) 12.00% (11.13% NET) 12.00% (11.13% NET)
NET PREMIUM SURRENDER --------------------- ----------------------- -----------------------
POLICY AGE PREMIUM ACCUM. ANNUAL FR INSUR SURRENDER DEATH SURRENDER DEATH SURRENDER DEATH
YR EOY OUTLAY @ 5% LOAN POLICY VALUE PROCEEDS VALUE PROCEEDS VALUE PROCEEDS
------ --- ------- ---------- ------ --------- --------- --------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 49,133 51,590 0 0 45,113 1,040,691 50,141 1,045,719 50,141 1,045,719
2 47 49,133 105,760 0 0 81,829 1,078,881 97,142 1,094,194 98,536 1,095,588
3 48 49,133 162,638 0 0 117,749 1,116,275 148,963 1,147,489 151,263 1,149,789
4 49 49,133 222,360 0 0 152,799 1,152,799 206,018 1,206,018 209,067 1,209,067
5 50 49,133 285,068 0 0 188,432 1,188,432 270,293 1,270,293 273,787 1,273,787
6 51 49,133 350,911 0 0 223,186 1,223,186 340,913 1,340,913 344,900 1,344,900
7 52 49,133 420,047 0 0 256,955 1,256,955 418,417 1,418,417 423,075 1,423,075
8 53 49,133 492,639 0 0 289,754 1,289,754 503,525 1,503,525 509,050 1,509,050
9 54 49,133 568,861 0 0 321,477 1,321,477 596,905 1,596,905 603,643 1,603,643
10 55 49,133 648,894 0 0 352,140 1,352,140 699,424 1,699,424 707,754 1,707,754
11 56 49,133 732,929 0 0 386,584 1,386,584 818,029 1,818,029 831,540 1,831,540
12 57 49,133 821,166 0 0 419,740 1,419,740 948,355 1,948,355 968,437 1,968,437
13 58 49,133 913,814 0 0 451,626 1,451,626 1,091,648 2,091,648 1,119,481 2,119,481
14 59 49,133 1,011,095 0 0 482,139 1,482,139 1,249,159 2,249,159 1,286,198 2,286,198
15 60 49,133 1,113,240 0 0 511,178 1,511,178 1,422,274 2,422,274 1,470,155 2,470,155
16 61 49,133 1,220,492 0 0 538,643 1,538,643 1,612,524 2,612,524 1,673,465 2,673,465
17 62 49,133 1,333,106 0 0 564,436 1,564,436 1,821,604 2,821,604 1,898,600 2,898,600
18 63 49,133 1,451,351 0 0 588,460 1,588,460 2,051,389 3,051,389 2,147,535 3,147,535
19 64 49,133 1,575,509 0 0 610,379 1,610,379 2,303,700 3,303,700 2,423,094 3,423,094
20 65 49,133 1,705,874 0 0 630,223 1,630,223 2,580,931 3,580,931 2,728,151 3,728,151

@age 86 49,133 6,595,256 0 0 lapsed lapsed 21,565,491 22,643,765 25,718,283 27,004,196
@age 90 49,133 8,238,934 0 0 31,269,991 32,833,490 38,453,464 40,376,136
@age 95 49,133 10,800,263 0 0 49,806,649 50,806,649 63,567,735 64,567,735
</TABLE>

PREPARED: 4/30/99

G-13
<PAGE> 177

The complete registration statement and other filed documents for MONY Variable
Account L can be reviewed and copied at the Securities and Exchange Commission's
Public Reference Room in Washington, D.C. You may get information on the
operation of the public reference room by calling the Securities and Exchange
Commission at 1-800-SEC-0330. The registration statement and other filed
documents for MONY Variable Account L are available on the Securities and
Exchange Commission's Internet site at http://www.sec.gov. You may get copies of
this information by paying a duplicating fee, and writing the Public Reference
Section of the Securities and Exchange Commission, Washington, D.C. 20549-6009.
<PAGE> 178

PART II

(INFORMATION NOT REQUIRED IN PROSPECTUS)
<PAGE> 179

PART II

UNDERTAKING TO FILE REPORTS

Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the Registrant hereby undertakes to file with the
Securities and Exchange Commission such supplementary and periodic information,
documents, and Reports as may be prescribed by any rule or regulation of the
Commission heretofore, or hereafter duly adopted pursuant to authority conferred
in that Section.

RULE 484 UNDERTAKING

The Amended and Restated By-Laws of MONY Life Insurance Company ("MONY")
provide, in Article XV as follows:

Each person (and the heirs, executors and administrators of such
person) made or threatened to be made a party to any action, civil or
criminal, by reason of being or having been a director, officer, or
employee of the corporation (or by reason of serving any other organization
at the request of the corporation) shall be indemnified to the extent
permitted by the law of the State of New York and in the manner prescribed
therein. To this end, and as authorized by Section 722 of the Business
Corporation Law of the State of New York, the Board may adopt all
resolutions, authorize all agreements and take all actions with respect to
the indemnification of directors and officers, and the advance payment of
their expenses in connection therewith.

Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification for such
liabilities (other than the payment by the Registrant of expense incurred or
paid by a director, officer, or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant, will (unless in the opinion of its counsel the
matter has been settled by controlling precedent) submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.

REPRESENTATIONS RELATING TO SECTION 26 OF
THE INVESTMENT COMPANY ACT OF 1940

The Registrant and MONY Life Insurance Company represent that the fees and
charges deducted under the Contract, in the aggregate, are reasonable in
relation to the services rendered, the expenses expected to be incurred, and the
risks assumed by MONY Life Insurance Company.

II-1
<PAGE> 180

CONTENTS OF REGISTRATION STATEMENT

This Registration Statement comprises the following papers and documents:

The Facing Sheet.

Cross-Reference to items required by Form N-8B-2.

Prospectus consisting of __ pages.

The Undertaking to file reports.

The signatures.

Written consents of the following persons:

a.Frederick C. Tedeschi, Vice President and Chief
Counsel -- Operations, MONY Life Insurance Company.

b.Pricewaterhouse Coopers, LLP, Independent Accountants

The following exhibits:

1. The following exhibits correspond to those required by paragraph A of
the instructions as exhibits to Form N-8B2:

(1) Resolution of the Board of Trustees of The Mutual Life Insurance
Company of New York authorizing establishment of MONY Variable
Account L, filed as Exhibit 1 (1) to Pre-Effective Amendment No. 1
to Registration Statement on Form S-6, dated December 17, 1990
(Registration Nos. 33-37719 and 811-6217), is incorporated herein by
reference.

(2) Not applicable.

(3) (a) Underwriting Agreement between The Mutual Life Insurance Company
of New York, MONY Series Fund, Inc., and MONY Securities Corp.,
filed as Exhibit 1 (3) (a) to Registration Statement on Form
S-6, dated November 9, 1990 (Registration Nos. 33-37719 and
811-6217), is incorporated by referenced herein.

(b) Proposed specimen agreement between MONY Securities Corp. and
registered representatives, filed as Exhibit 3(b) of
Pre-Effective Amendment No. 1, dated December 17, 1990, to
Registration Statement on Form N-4 (Registration Nos. 33-37722
and 811-6126) is incorporated herein by reference.

(4) Not applicable.

(5) Form of policy [to be filed by Amendment].

(6) Amended and Restated Charter and Amended and Restated By-Laws of
MONY Life Insurance Company, filed as Exhibit 1.(6) to Registration
Statement dated January 29, 1999 on Form S-6 (Registration Nos.
333-71417 and 811-6217) is incorporated herein by reference.

(7) Not applicable.

(8) (a) Form of agreement to purchase shares. (included in Exhibit 1.(5)
[to be filed by Amendment].

(b) Amended Investment Advisory Agreement between MONY Life Insurance
Company of America and MONY Series Fund, Inc. filed as Exhibit
5(i) to Post-Effective amendment No. 14 to Registration Statement
(Registration Nos. 2-95501 and 811-4209) dated February 27, 1998,
is incorporated herein by reference.

II-2
<PAGE> 181

(c) Services Agreement between The Mutual Life Insurance Company of
New York and MONY Life Insurance Company of America filed as
Exhibit 5(ii) to Pre-Effective Amendment to Registration
Statement (Registration Nos. 2-95501 and 811-4209) dated July 19,
1985, is incorporated herein by reference.

Investment Advisory Agreement between Enterprise Capital
Management, Inc., ("Enterprise Capital") and The Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and Montag & Caldwell, Inc., as sub-adviser, filed as Exhibit
(d)(ii) to Post-Effective Amendment No. 17 to Registration
Statement (Registration Nos. 33-21534 and 811-05543) dated May 3,
1999.

Investment Advisory Agreement between Enterprise Capital
Management, Inc., ("Enterprise Capital") and The Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and TCW Investment Management Company, as sub-adviser, filed as
Exhibit (d)(iv) to Post-Effective Amendment No. 20 to
Registration Statement (Registration Nos. 33-21534 and 811-05543)
dated April 27, 2000.

Investment Advisory Agreement between Enterprise Capital
Management, Inc., ("Enterprise Capital") and The Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and William D. Witter, Inc., as sub-adviser, filed as Exhibit
(d)(vii) to Post-Effective Amendment No. #17 to Registration
Statement (Registration Nos. 33-21534 and 811-05543) dated May 3,
1999.

Investment Advisory Agreement between Enterprise Capital
Management, Inc., ("Enterprise Capital") and The Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and GAMCO Investors, Inc., as sub-adviser, filed as Exhibit
(d)(viii) to Post-Effective Amendment No. #17 to Registration
Statement (Registration Nos. 33-21534 and 811-05543) dated May 3,
1999.

Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital" ) and the Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and Vontobel USA Inc., as sub-adviser, filed as Exhibit (d)(ix) to
Post-Effective Amendment No. 17 to Registration Statement
(Registration Nos. 33-21534 and 811-05543) dated May 3, 2000.

Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital" ) and the Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and Caywood-Scholl Capital Management, as sub-adviser, filed as
Exhibit (d)(xi) to Post-Effective Amendment No. 17 to Registration
Statement (Registration Nos. 33-21534 and 811-05543) dated May 3,
1999.

Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital" ) and the Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and OpCap Advisors, as sub-adviser, filed as Exhibit (d)(xv) to
Post-Effective Amendment No. 20 to Registration Statement
(Registration Nos. 33-21534 and 811-05543) dated April 27, 2000.

Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital" ) and the Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and Sanford C. Bernstein & Co., Inc., as sub-adviser, filed as
Exhibit (d)(xvi) to Post-Effective Amendment No. 20 to
Registration Statement (Registration Nos. 33-21534 and 811-05543)
dated April 27, 2000.

II-3
<PAGE> 182

Post-Effective Amendment No. 18 to Registration Statement
(Registration Nos. 33-21534 and 811-05543) dated May 28, 1999.

(9) Not applicable.

(10) Application Form for Flexible Premium Variable Universal Life
Insurance Policy (included in Exhibit 1.(5)) [to be filed by
Amendment]

2. Opinion and consent of Frederick C. Tedeschi, Vice President and Chief
Counsel -- Operations, MONY Life Insurance Company, as to legality of
the securities being registered.

3. Not applicable.

4. Not applicable.

5. Not applicable.

6. Consent of PricewaterhouseCoopers LLP as to financial statements of MONY
Life Insurance Company.

II-4
<PAGE> 183

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the Registrant,
MONY Variable Account L of MONY Life Insurance Company, has duly caused this
Pre-Effective Amendment No. 1 to the Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of New York
and the State of New York, on this 9th day of November, 2000.

MONY VARIABLE ACCOUNT L OF
MONY LIFE INSURANCE COMPANY

By: /s/ MICHAEL I. ROTH
------------------------------------
Michael I. Roth, Director, Chairman
of
the Board and Chief Executive
Officer

Pursuant to the requirements of the Securities Act of 1933, this
Pre-Effective Amendment No. 1 to the Registration Statement has been duly signed
below by the following persons in the capacities and on the date indicated.

<TABLE>
<CAPTION>
SIGNATURE DATE
--------- ----
<S> <C>
/s/ MICHAEL I. ROTH November 9, 2000
-----------------------------------------------------
Michael I. Roth
Director, Chairman and Chief Executive Officer

/s/ SAMUEL J. FOTI November 9, 2000
-----------------------------------------------------
Samuel J. Foti
Director, President and Chief Operating Officer

/s/ KENNETH M. LEVINE November 9, 2000
-----------------------------------------------------
Kenneth M. Levine
Director, Executive Vice President and Chief
Investment Officer

/s/ RICHARD DADDARIO November 9, 2000
-----------------------------------------------------
Richard Daddario
Executive Vice President and Chief Financial Officer

/s/ PHILLIP A. EISENBERG November 9, 2000
-----------------------------------------------------
Phillip A. Eisenberg
Senior Vice President and Chief Actuary

/s/ LEE M. SMITH November 9, 2000
-----------------------------------------------------
Lee M. Smith
Corporate Secretary and Vice President, Government
Relations

November 9, 2000
-----------------------------------------------------
Tom H. Barrett*
Director

November 9, 2000
-----------------------------------------------------
David L. Call*
Director
</TABLE>

II-5
<PAGE> 184

<TABLE>
<CAPTION>
SIGNATURE DATE
--------- ----
<S> <C>
November 9, 2000
-----------------------------------------------------
G. Robert Durham*
Director

November 9, 2000
-----------------------------------------------------
James B. Farley*
Director

November 9, 2000
-----------------------------------------------------
Robert Holland, Jr.*
Director

November 9, 2000
-----------------------------------------------------
James L. Johnson*
Director

November 9, 2000
-----------------------------------------------------
Frederick W. Kanner
Director

November 9, 2000
-----------------------------------------------------
Robert R. Kiley*
Director

November 9, 2000
-----------------------------------------------------
John R. Meyer*
Director

November 9, 2000
-----------------------------------------------------
Jane C. Pfeiffer*
Director

November 9, 2000
-----------------------------------------------------
Thomas C. Theobald*
Director

*By: /s/ LEE M. SMITH November 9, 2000
-----------------------------------------------------
Lee M. Smith
Attorney In Fact
</TABLE>

II-6
<PAGE> 185

EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
----------- -----------
<S> <C>
2. Opinion and consent of Frederick C. Tedeschi, Vice President
and Chief Counsel -- Operations, MONY Life Insurance Company
6. Consent of PricewaterhouseCoopers LLP, Independent
Accountants
</TABLE>