<PAGE> 1
REGISTRATION NO. 333-01581
REGISTRATION NO. 811-6217
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-6
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933 [X]
OF SECURITIES OF UNIT
INVESTMENT TRUSTS REGISTERED ON FORM N-8B-2
PRE-EFFECTIVE AMENDMENT NO.
POST-EFFECTIVE AMENDMENT NO. 7
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, ESQ.
VICE PRESIDENT AND CHIEF COUNSEL, OPERATIONS
MONY LIFE INSURANCE COMPANY
1740 BROADWAY
NEW YORK, NEW YORK 10019
(Name and Address of Agent for Service)
It is proposed that this filing will become effective on March 1, 2001
pursuant to Rule 485(b).
---------------
STATEMENT PURSUANT TO RULE 24f-2
The Registrant registers an indefinite number or amount of its variable
life insurance contracts under the Securities Act of 1933 pursuant to Rule 24f-2
under the Investment Company Act of 1940. The Rule 24f-2 notice for Registrant's
fiscal year ending December 31, 1999 was filed March 29, 2000.
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<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.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
6.......................................... MONY Variable Account L
7.......................................... Not required
8.......................................... Not required
9.......................................... Legal Proceedings
10.......................................... THE POLICY; INFORMATION ABOUT THE COMPANY AND THE
VARIABLE ACCOUNT; CHARGES AND DEDUCTIONS; OTHER
INFORMATION; VOTING OF FUND SHARES; MORE ABOUT THE
POLICY
11.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE FUNDS; PURCHASE OF PORTFOLIO SHARES BY THE
VARIABLE ACCOUNT
12.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE FUNDS; PURCHASE OF PORTFOLIO SHARES BY THE
VARIABLE ACCOUNT
13.......................................... THE POLICY; CHARGES AND DEDUCTIONS; THE FUNDS
14.......................................... THE POLICY
15.......................................... THE POLICY
16.......................................... THE FUNDS; THE POLICY; INFORMATION ABOUT THE COMPANY AND
THE VARIABLE ACCOUNT
17.......................................... THE POLICY
18.......................................... THE FUNDS; THE POLICY; INFORMATION ABOUT COMPANY AND THE
VARIABLE ACCOUNT
19.......................................... VOTING OF FUND SHARES; MORE ABOUT THE POLICY
20.......................................... Not applicable
21.......................................... THE POLICY
22.......................................... Not applicable
23.......................................... Not applicable
24.......................................... IMPORTANT TERMS; MORE ABOUT THE POLICY
25.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
26.......................................... Not applicable
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
----------- ---------------------
<S> <C>
27.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
28.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
29.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
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 THE VARIABLE ACCOUNT;
MORE ABOUT THE POLICY
39.......................................... MORE ABOUT THE POLICY
40.......................................... Not applicable
41.......................................... MORE ABOUT THE POLICY
42.......................................... Not applicable
43.......................................... Not applicable
44.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE POLICY; MORE ABOUT THE POLICY
45.......................................... Not applicable
46.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE POLICY; MORE ABOUT THE POLICY
47.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT;
THE POLICY; MORE ABOUT THE POLICY
48.......................................... Not applicable
49.......................................... Not applicable
50.......................................... INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
51.......................................... Cover Page; INFORMATION ABOUT THE COMPANY AND THE
VARIABLE ACCOUNT; 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>
2
<PAGE> 4
SUPPLEMENT DATED MARCH 1, 2001
to
PROSPECTUS DATED MAY 1, 2000
for
Variable Universal Life Insurance Policy
Issued by
MONY Life Insurance Company
MONY Variable Account L
EFFECTIVE MARCH 1, 2001 THIS SUPPLEMENT UPDATES CERTAIN INFORMATION CONTAINED IN
YOUR PROSPECTUS. PLEASE READ IT AND KEEP IT WITH YOUR PROSPECTUS FOR FUTURE
REFERENCE.
New pages B-3 through B-59 are substituted to reflect a change in the
current cost of insurance rate as of March 1, 2001.
Form No. 14331 SL (Supp 3/01/01) Registration No. 333-01581
<PAGE> 5
PART I
(INFORMATION REQUIRED IN A PROSPECTUS)
<PAGE> 6
PROSPECTUS
Dated May 1, 2000
Variable Universal Life Insurance Policy
MONY Life Insurance Company (the "Company") issues a variable universal life
insurance policy described in this Prospectus. Among the policy's many terms
are:
Allocation of Premiums and Fund Values:
- You can tell us what to do with your premium payments. You can also tell us
what to do with the cash values your policy may create for you resulting from
those premium payments.
- You can tell us to place them into a separate account. That separate
account is called MONY Variable Account L.
- If you do, you can also tell us to place your premium payments and
cash values into any or all of 17 different subaccounts. Each of these
subaccounts seeks to achieve a different investment objective. If you
tell us to place your premium payments and cash values into one or
more subaccounts of the separate account, you bear the risk that the
investment objectives will not be met. That risk includes your not
earning any money on your premium payments and cash values and also
that your premium payments and cash values may lose some or all of
their value.
- You can also tell us to place some or all of your premium payments and
cash values into our account. Our account is called the Guaranteed
Interest Account. If you do, 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 5% interest annually. We may pay more than 5%
if we choose. Premium payments and cash values you place into the
Guaranteed Interest Account become part of our assets.
Death Benefit:
- We will pay a death benefit if you die before you reach age 95 while the
policy is in effect. That death benefit will never be less than amount
specified in the policy. It may be greater than the amount specified if the
policy's cash values increase.
Living Benefits:
- You may ask for some or all of the policy's cash value at any time. If you do,
we may deduct a surrender charge. You may borrow up to 90% of the policy's
cash value from us at any time. You 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 and Enterprise Accumulation Trust, Dreyfus Stock Index Fund, Fidelity
Variable Insurance Products Fund, Fidelity Variable Insurance Products Fund II
and Janus Aspen Series. You should read these prospectuses carefully and keep
them for future reference.
MONY Variable Account L
MONY Life Insurance Company
1740 Broadway, New York, New York 10019
1-800-487-6669
<PAGE> 7
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 8
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Summary of the Policy....................................... 1
Important Policy Terms.................................... 1
Purpose of the Policy..................................... 1
Policy Premium Payments and Values........................ 1
Charges and Deductions.................................... 3
The Death Benefit......................................... 7
Premium Features.......................................... 7
MONY Variable Account L................................... 7
Allocation Options........................................ 8
Transfer of Fund Value.................................... 8
Policy Loans.............................................. 8
Full Surrender............................................ 8
Partial Surrender......................................... 8
Preferred Partial Surrender............................... 8
Free Look Period.......................................... 8
Grace Period and Lapse.................................... 9
Tax Treatment of Increases in Fund Value.................. 9
Tax Treatment of Death Benefit............................ 9
Riders.................................................... 9
Contacting the Company.................................... 9
Understanding the Policy.................................. 10
Detailed Information about the Company and MONY Variable
Account L................................................. 11
MONY Life Insurance Company............................... 11
Year 2000 Issue........................................... 11
MONY Variable Account L................................... 11
The Funds................................................... 15
MONY Series Fund, Inc. ................................... 15
Enterprise Accumulation Trust............................. 16
Dreyfus Stock Index Fund.................................. 18
Fidelity Variable Insurance Products Fund, Fidelity
Variable Insurance Products Fund II.................... 19
Janus Aspen Series........................................ 19
Purchase of Portfolio Shares by MONY Variable Account L... 20
Detailed Information About The Policy....................... 20
Application for a Policy.................................. 20
Right to Examine a Policy -- Free Look Period............. 22
Premiums.................................................. 22
Allocation of Net Premiums................................ 24
Death Benefits under the Policy........................... 24
Changes in Specified Amount............................... 26
Other Optional Insurance Benefits......................... 28
Benefits at Maturity...................................... 29
Policy Values............................................. 29
Determination of Fund Value............................... 30
Calculating Unit Values for Each Subaccount............... 31
Transfer of Fund Value.................................... 32
Right to Exchange Policy.................................. 33
Policy Loans.............................................. 33
Full Surrender............................................ 34
Partial Surrender......................................... 34
</TABLE>
i
<PAGE> 9
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Preferred Partial Surrender............................... 35
Grace Period and Lapse.................................... 35
Charges and Deductions...................................... 38
Deductions from Premiums.................................. 40
Daily Deduction from MONY Variable Account L.............. 40
Deductions from Fund Value................................ 41
Fund Charge............................................... 42
Transaction and Other Charges............................. 44
Fees and Expenses of the Funds............................ 44
Guarantee of Certain Charges.............................. 44
Other Information........................................... 45
Federal Income Tax Considerations......................... 45
Charge for Company Income Taxes........................... 49
Voting of Fund Shares..................................... 49
Disregard of Voting Instructions.......................... 50
Report to Policy Owners................................... 50
Substitution of Investments and Right to Change
Operations............................................. 50
Changes to Comply with Law................................ 51
Performance Information..................................... 51
The Guaranteed Interest Account............................. 52
General Description....................................... 52
Limitations on Amounts in the Guaranteed Interest
Account................................................ 53
Death Benefit............................................. 53
Policy Charges............................................ 53
Transfers................................................. 54
Surrenders and Policy Loans............................... 54
More About the Policy....................................... 54
Ownership................................................. 54
Beneficiary............................................... 55
Notification and Claims Procedures........................ 55
Payments.................................................. 55
Payment Plan/Settlement Provisions........................ 56
Payment in Case of Suicide................................ 56
Assignment................................................ 56
Errors on the Application................................. 56
Incontestability.......................................... 56
Policy Illustrations...................................... 57
Distribution of the Policy................................ 57
More About the Company...................................... 57
Management................................................ 57
State Regulation.......................................... 59
Telephone Transfer Privileges............................. 60
Legal Proceedings......................................... 60
Legal Matters............................................. 60
Registration Statement.................................... 60
Independent Accountants................................... 60
Financial Statements...................................... 61
Index to Financial Statements............................... F-1
Appendix A.................................................. A-1
Appendix B.................................................. B-1
</TABLE>
ii
<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 MONY Variable Account L. The prospectus also
briefly will describe the Guaranteed Interest Account on page 50. 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 you request on the
policy. The unpaid balance includes accrued loan interest which is due and has
not been paid by you.
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 you request. We will credit interest to the Loan Account
at a rate not less than 5%. The Loan Account is part of the Company's General
Account.
Fund 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, and any interest thereon to secure Outstanding Debt.
Cash Value -- The Fund Value of the policy less any fund charge.
Surrender Value -- The cash value less any outstanding debt reduced by any
unearned loan interest.
Minimum Monthly Premium -- The amount the Company determines is necessary
to keep the policy in effect for the first two policy years. In certain cases,
this also applies to the first two policy years following an increase in the
Specified Amount.
Guaranteed Interest Account -- This account is part of the general account
of MONY Life Insurance Company (the "Company"). You may allocate all or a part
of your net premium payments to this account. This account will credit you with
a fixed interest rate (which will not be less than 5%) declared by the Company.
(For more detailed information, see "The Guaranteed Interest Account," page 52.)
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.
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 death benefit equal to (a) its Specified Amount, or (b) its Specified
Amount plus accumulated of Fund Value. The policy also provides surrender and
loan privileges. The policy offers a choice of investment alternatives and an
opportunity for the policy's Fund Value and its death benefit, to grow based on
investment results. In addition, you, as owner of the policy, choose the amount
and frequency of premium payments, within certain limits.
POLICY PREMIUM PAYMENTS AND VALUES
The premium payments you make for the policy are received by the Company.
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
1
<PAGE> 11
costs of making the policies available to the public. After deduction of these
charges, the amount remaining is called the net premium payment.
You may allocate net premium payments among the various subaccounts of MONY
Variable Account L and/or the Guaranteed Interest Account. As owner of the
policy, you may give the right to allocate net premium payments to someone else.
The net premium payments you allocate 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 you select. Your death benefit may or
may not increase or decrease depending on several factors including the death
benefit option you choose. The death benefit will never decrease below the
Specified Amount of your policy.
Net premium payments you allocate to the Guaranteed Interest Account will
be credited with interest at a rate determined by the Company. That rate will
not be less than 5%.
The value of the net premium payments you allocate to MONY Variable Account
L and to the Guaranteed Interest Account are called the Fund Value. There is no
guarantee that the policy's Fund Value and death benefit will increase. You bear
the risk that the net premiums and Fund Value allocated to MONY Variable Account
L may be worth more or less while the policy remains in effect.
If you cancel the policy and return it to the Company during the Free Look
Period, your premium payments will be returned by the Company. After the Free
Look Period, you may cancel your policy by surrendering it to the Company. The
Company will pay you the Fund Value minus a charge if you cancel your policy
during the first fourteen years since the policy was issued or the Specified
Amount increased. The Company will also deduct any amount you have borrowed from
it from the amount it will pay you. The Fund Value minus Fund Charges and minus
the amount of debt outstanding from loans you have received plus any unearned
interest on the outstanding debt 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 Cash 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 Cash Value less
any Outstanding Debt is sufficient to pay all monthly deductions. However,
during the first two years the policy is in effect, the Company will determine
an amount which if paid during those first two policy years will keep the policy
and all rider coverages in effect for the first two policy years even if the
Cash Value less any Outstanding Debt of the policy is not enough to pay monthly
deductions. This amount is called the Minimum Monthly Premium. If you increase
the Specified Amount during the first two policy years, you must pay the Minimum
Monthly Premium for two more years after the increase.
2
<PAGE> 12
CHARGES AND DEDUCTIONS
The policy provides for the deduction of the various charges, costs, and
expenses from the Fund Value of the policy. These deductions are summarized in
the table below. Additional details can be found on pages 38 - 44.
--------------------------------------------------------------------------------
DEDUCTIONS FROM PREMIUMS
<TABLE>
<CAPTION>
<S> <C> <C>
-----------------------------------------------------------------------------------------------
Sales Charge -- Varies based on number of Premiums paid during first ten policy
years the policy has been years -- 4%
in effect. It is a Premiums paid during policy years
% of Premium paid. 11-20 -- 2%
Premiums paid after policy year 20 -- 0%
-----------------------------------------------------------------------------------------------
Tax Charge State and local -- 0.8%
Federal -- 1.25%
</TABLE>
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DAILY DEDUCTION FROM MONY VARIABLE ACCOUNT L
<TABLE>
<S> <C> <C>
----------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge -- Maximum .75% of subaccount value (0.002055% daily)
Annual Rate Reduces after 10th policy year
</TABLE>
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DEDUCTIONS FROM FUND 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
----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
EACH OF
1ST 12 EACH
POLICY MONTH
SPECIFIED AMOUNT MONTHS THEREAFTER
---------------- ------- ----------
<S> <C> <C> <C> <C>
Less than
$250,000.......... $31.50* $6.50
Administrative Charge -- monthly charge based on $250,000-$499,999... $28.50* $3.50
Specified Amount of policy. $500,000 or more.... $25.00* None
---------------
* Reduced by $5.00 for issue ages 0 through
17.
------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Optional Insurance Benefits Charge As applicable.
Monthly Deduction for any other Optional Insurance
Benefits added by rider.
----------------------------------------------------------------------------------------------------
Transaction and Other Charges The lesser of 2% of the amount
-Partial Surrender Fee surrendered or $25.
-Transfer of Fund Value Maximum $25 on each Transfer in a policy
(at Company's Option) year exceeding four.(1)
</TABLE>
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(1) Currently no charge on any transfer.
3
<PAGE> 13
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<TABLE>
<CAPTION>
ADMINISTRATIVE
Administrative Fund Charge ISSUE AGE* FUND CHARGE
---------- -----
<S> <C> <C> <C>
Over 14 years based on a schedule. Factors per 0-25........................ $2.50
$1,000 of Specified Amount vary based on issue age. 26.......................... 3.00
27.......................... 3.50
28.......................... 4.00
29.......................... 4.50
30 or higher................ 5.00
</TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C>
Sales Fund Charge ISSUE AGE PERCENTAGE
--------- --
Percentage of premiums paid in the first 5 years, 0-17........................... 50%
up to a maximum amount of premiums called the 18-65.......................... 75
target premium. 66............................. 70
67............................. 65
68............................. 60
69............................. 55
70 or higher................... 50
---------------
The Sales Fund Charge can increase as
premiums are paid during the five year
period. Starting on the fifth anniversary,
the charge decreases from its maximum by
10% per year until it reaches zero at the
end of the 14th year.
</TABLE>
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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 its operations. Those expenses are also shown in
the table below.
FEES AND EXPENSES OF THE FUNDS
The Fund and each of its portfolios incur certain charges including the
investment advisory fee and certain operating expenses. These fees and expenses
vary by portfolio and are set forth below. Their Boards govern the Funds. The
advisory fees are summarized at pages 4-5. 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 AND
FUND/PORTFOLIO MANAGEMENT FEES OTHER EXPENSES SERVICE (12-B-1) FEE TOTAL EXPENSES
-------------- --------------- -------------- -------------------- --------------
<S> <C> <C> <C> <C>
MONY SERIES FUND, INC.
Intermediate Term Bond
Portfolio.................... 0.50% 0.07% N/A 0.57%
Long Term Bond Portfolio....... 0.50% 0.05% N/A 0.55%
Government Securities
Portfolio.................... 0.50% 0.08% N/A 0.58%(1)
Money Market Portfolio......... 0.40% 0.04% N/A 0.44%
ENTERPRISE ACCUMULATION TRUST
Equity Portfolio............... 0.78% 0.04% N/A 0.82%
Small Company Value
Portfolio.................... 0.80% 0.04% N/A 0.84%
Managed Portfolio.............. 0.72% 0.04% N/A 0.76%
International Growth
Portfolio.................... 0.85% 0.16% N/A 1.01%
High Yield Bond Portfolio...... 0.60% 0.09% N/A 0.69%
Capital Appreciation
Portfolio.................... 0.75% 0.41% N/A 1.16%
Growth and Income Portfolio.... 0.75% 0.19% N/A 0.94%
Growth Portfolio............... 0.75% 0.09% N/A 0.84%
DREYFUS STOCK INDEX FUND....... 0.245% 0.015% N/A 0.26%
FIDELITY VARIABLE INSURANCE
PRODUCTS FUND (VIP)
</TABLE>
4
<PAGE> 14
<TABLE>
<CAPTION>
DISTRIBUTION AND
FUND/PORTFOLIO MANAGEMENT FEES OTHER EXPENSES SERVICE (12-B-1) FEE TOTAL EXPENSES
-------------- --------------- -------------- -------------------- --------------
<S> <C> <C> <C> <C>
Growth Portfolio............... 0.58% 0.09% 0.10% 0.77%(2)
FIDELITY VARIABLE INSURANCE
PRODUCTS FUND II (VIP II)
Contrafund(R) Portfolio........ 0.58% 0.10% 0.10% 0.78%(2)
JANUS ASPEN SERIES
Capital Appreciation
Portfolio.................... 0.65% 0.04% N/A 0.69%(3)
Worldwide Growth Portfolio..... 0.65% 0.05% N/A 0.70%(3)
</TABLE>
---------------
(1) Expenses do not include custodial credits. With custodial credits,
expenses would have been 0.57%.
(2) Expenses do not include reimbursements. With reimbursements, expenses
would have been 0.75%.
(3) Expenses are based upon expenses for the fiscal year ended December 31,
1999, restated to reflect a reduction in management fee.
--------------------------------------------------------------------------------
FUND INVESTMENT ADVISER FEES
--------------------------------------------------------------------------------
MONY SERIES FUND, INC.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C> <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.
--------------------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------------------
Money Market Portfolio Annual rate of 0.40% 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.
----------------------------------------------------------------------------------------
</TABLE>
ENTERPRISE ACCUMULATION TRUST
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C> <C>
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
portfolio's aggregate 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
portfolio's aggregate average daily net
assets.
--------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE> 15
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C> <C>
Growth and Income Portfolio Annual rate of 0.75% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
Growth Portfolio Annual rate of 0.75% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
Capital Appreciation Portfolio Annual rate of 0.75% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
Small Company Value Portfolio Annual rate of 0.80% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
International Growth Portfolio Annual rate of 0.85% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
High Yield Bond Portfolio Annual rate of 0.60% of the portfolio's
aggregate average daily net assets.
--------------------------------------------------------------------------------------------
DREYFUS STOCK INDEX FUND Annual rate of 0.25% of the fund's average
daily net assets.
--------------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS The fee is calculated by adding a group
FUND -- Growth Portfolio 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.
--------------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUND The fee is calculated by adding a group
II -- Contrafund(R) Portfolio 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>
JANUS ASPEN SERIES
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
<S> <C> <C>
Capital Appreciation 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.
--------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 16
THE DEATH BENEFIT
The minimum initial Specified Amount is $100,000. You may elect one of two
options to compute the amount of death benefit payable under the policy. Your
selection may increase the death benefit.
Option I -- The death benefit equals the greater of:
(a) The Specified Amount plus the increase in Fund Value since the
last Monthly Anniversary Day, or
(b) Fund Value on the date of death, plus the increase in Fund Value
since the last Monthly Anniversary day, multiplied by a death
benefit percentage required by the federal tax law definition of
life insurance.
If you choose Option I, favorable investment performance will reduce
the cost you pay for the death benefit. This reduction will decrease the
deduction from Fund Value.
Option II -- The death benefit equals the greater of:
(a) The Specified Amount of the policy, plus the Fund Value on the date
of death, or
(b) The Fund Value on the date of death, plus the Fund Value on the
last Monthly Anniversary Date, multiplied by a death benefit percentage
required by the federal tax law definition of life insurance.
If you choose Option II, favorable investment performance will
increase the Fund Value of the Policy which in turn increases insurance
coverage.
The Fund Value used in these calculations is the Fund Value as of the date of
the insured's death.
You may change the death benefit option and increase or decrease the
Specified Amount, subject to certain conditions. See "Death Benefits Under the
Policy," page 24.
PREMIUM FEATURES
You must pay premiums equal to at least the amount necessary to keep the
policy in effect for the first two policy years. After that, subject to certain
limitations, you may choose the amount and frequency of premium payments as your
financial situation and needs change.
When you apply for a policy, you determine the level amount you intend to
pay at fixed intervals over a specified period of time. You elect to receive a
premium notice on an annual, semiannual, or quarterly basis. However, you may
choose to skip or stop making premium payments, your policy continues in effect
until the Cash Value can no longer cover (1) the monthly deductions from the
Fund Value for your policy, and (2) any optional insurance benefits added by
rider. You may pay premiums under the electronic funds transfer program. Under
this program, you authorize the Company to withdraw the amount you determine
from your checking account each month.
The amount, frequency and period of time over which you pay 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 45.
The payment of premiums you specified on the application will not guarantee
that your policy will remain in effect. See "Grace Period and Lapse," page 35.
If any premium payment 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 you provide 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 11.
7
<PAGE> 17
ALLOCATION OPTIONS
You may allocate premium payments and Fund Values among the various
subaccounts of MONY Variable Account L. Each of the subaccounts uses premium
payments and Fund Values to purchase shares of a designated portfolio of the
MONY Series Fund, the Enterprise Accumulation Trust, Dreyfus Stock Index Fund,
Fidelity Variable Insurance Products Fund, Fidelity Variable Insurance Products
Fund II or Janus Aspen Series (collectively the "Funds"). The subaccounts
available to you and the investment objectives of each available subaccount are
described in detail beginning on page 12.
TRANSFER OF FUND VALUE
You may transfer Fund Value among the subaccounts. Subject to certain
limitations, you may also transfer between the subaccounts and the Guaranteed
Interest Account. Transfers may be made by telephone if the proper form has been
completed, signed and filed at the Company's Syracuse Operations Center. See
Transfer of Fund Value," page 32.
POLICY LOANS
You may borrow up to 90% of your policy's Cash Value from the Company. Your
policy will be the only security required for a loan. See "Policy Loans," page
33.
The amount of Outstanding Debt reduced by any Unearned Interest is
subtracted from your death benefit. Your Outstanding Debt reduced by any
Unearned Interest is repaid from the proceeds of a full surrender. See "Full
Surrender," page 34. Outstanding Debt may also affect the continuation of the
policy. See "Grace Period and Lapse," page 35. The Company charges interest on
policy loans. If you do not pay the interest when due, the amount due will be
borrowed from the policy's Cash Value and will become part of the Outstanding
Debt.
FULL SURRENDER
You can surrender the policy during the insured's lifetime and receive its
Cash Value, which equals (a) Fund Value, minus (b) any surrender charge, and
minus (c) any Outstanding Debt plus any unearned loan interest. See "Full
Surrender," page 34.
PARTIAL SURRENDER
You may request a partial surrender after your Policy has been in effect
for 2 years if your Cash Value 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 your request and return it to you. A partial
surrender will decrease the Specified Amount. See "Partial Surrender," at page
34.
Partial surrenders must be for at least $500. A partial surrender fee of
$25 or 2% of the amount surrendered (whichever is less) will be assessed against
the remaining Fund Value. A portion of the surrender charge may be assessed on a
partial surrender.
PREFERRED PARTIAL SURRENDER
You may request up to 10% of your Policy's Cash Value on that day, without
a Surrender Charge on the Specified Amount of your policy being reduced. You may
make this request after your Policy has been in effect for two years. You will
have to pay the partial surrender fee. See "Preferred Partial Surrender," page
35.
FREE LOOK PERIOD
You have the right to examine the policy when you receive it. You may
return the policy for any reason and obtain a full refund of the premium you
paid if you return your policy within 10 days (or longer in some states) after
you receive it. You may also return the policy within 45 days after the date
8
<PAGE> 18
you sign the application for the policy. During the Free Look Period, net
premiums will be allocated to the Money Market Subaccount of the Variable
Account. See "Right to Examine a Policy -- Free Look Period," page 22.
GRACE PERIOD AND LAPSE
Your policy will remain in effect as long as:
(1) it has a Cash Value greater than zero;
(2) during the first two policy years if on each monthly anniversary
the sum of the premiums paid minus the sum of partial surrenders (and
related fees) and any Outstanding Debt, is greater than or equal to the
Minimum Monthly Premium times the number of months your policy has been in
effect.
If the policy is about to terminate (or Lapse), we will give you notice
that you must pay additional premiums. That notice will tell you what the
minimum amount you must pay is 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").
If your policy does not meet the test on that date, a notice will be sent
to you giving you 61 days from its date to make additional payments to the
Rider. See "Grace Period and Lapse", page 35.
TAX TREATMENT OF INCREASES IN FUND VALUE
The federal income tax laws generally tie the taxation of Fund Values to
your receipt of those Fund Values. This policy is currently subject to the same
federal income tax treatment as fixed life insurance. Certain policy loans may
be taxable. You can find information on the tax treatment of the policy under
"Federal Income Tax Consideration," on page 45.
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 45.
RIDERS
Additional optional insurance benefits may be added to the policy by an
addendum called a rider. There are five riders available with this policy:
- Spouse's Term Rider
- Children's Term Insurance Rider
- Accidental Death Benefit Rider
- Purchase Option Rider
- Waiver of Monthly Deductions 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.
9
<PAGE> 19
UNDERSTANDING THE POLICY
The following chart may help you to understand how the policy works.
[HOW THE POLICY WORKS FLOW CHART]
10
<PAGE> 20
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, the District of Columbia,
Puerto Rico, and the Virgin Islands.
The Company was founded as a mutual life insurance company under the laws
of the State of New York in 1842 under the name 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
Company, MONY Variable Account L, or the Contract. The principal office of the
Company is located at 1740 Broadway, New York, New York 10019.
At August 16, 1999, the rating assigned to the Company by A.M. Best
Company, Inc., an independent insurance company rating organization, was 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.
MONY Securities Corporation, a wholly-owned subsidiary of the Company, is
the principal underwriter for the policies.
YEAR 2000 ISSUE
State of Readiness
In 1996, the Company on behalf of itself and its affiliates (hereafter
collectively referred to as "the Company and its subsidiaries") initiated a
formal Year 2000 Project to resolve the Year 2000 issue. The scope of the
Project was identified, and funding was established.
The Company successfully completed its Year 2000 Project (the "Project") to
ensure Year 2000 readiness. The Company developed and implemented an
enterprise-wide plan to prepare for the Year 2000 issue by ensuring compliance
of all applications, operating systems and hardware on mainframe, PC and local
area network ("LAN") platforms; ensuring the compliance of voice and data
network software and hardware; addressing issues related to non-IT systems in
buildings, facilities and equipment which may contain date logic in embedded
chips; and addressing the compliance of key vendors and other third parties.
The total cost of the Project was $2.4 million. The Company does not expect
to incur any material future costs on the Project.
The Company has not experienced any material (or significant) Year 2000
related problems post-December 31, 1999 with its operations or with any external
parties with which business is conducted. Based on this experience and the
amount of work and testing the Company has previously performed, the Company
believes the likelihood of a Year 2000 issue that would have a material effect
on the Company's financial position and results of its operations continues to
be remote as the Company performs month-end, leap year, quarter-end, and
year-end processing. However, there is still the possibility that future Year
2000 related failures in the Company's systems or equipment and/or failure of
external parties to achieve Year 2000 compliance could have a material adverse
effect on the Company's financial position and results of its operations.
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
11
<PAGE> 21
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.
Fund Values of the policy 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 practices or policies of MONY
Variable Account L.
MONY Variable Account L is divided into subdivisions called subaccounts.
Each subaccount invests exclusively in shares of a designated portfolio of the
Funds. For example, the Long Term Bond Subaccount invests solely in shares of
the MONY Series Fund, Inc. Long Term Bond Portfolio. These portfolios 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 following table lists the subaccounts of MONY Variable Account L that
are available to you, their respective investment objectives, and which Fund
portfolio shares are purchased:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
MONY MONEY MARKET SUBACCOUNT Seeks to maximize current income
consistent with preservation of capital
This subaccount purchases shares of the and maintenance of liquidity by investing
MONY Series Fund, Inc. Money Market primarily in high quality, short-term
Portfolio. money market instruments.
--------------------------------------------------------------------------------------------
MONY GOVERNMENT SECURITIES SUBACCOUNT Seeks to maximize income and capital
appreciation by investing in bonds, notes
This subaccount purchases shares of the and other obligations either issued or
MONY Series Fund, Inc. Government guaranteed by the U.S. Government, its
Securities Portfolio. agencies or instrumentalities, together
having a weighted average maturity of
between 4 to 8 years.
--------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 22
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
MONY INTERMEDIATE TERM BOND SUBACCOUNT Seeks to maximize income and capital
appreciation over the intermediate term by
This subaccount purchases shares of the investing in highly rated fixed income
MONY Series Fund, Inc. Intermediate Term securities issued by a diverse mix of
Bond Portfolio. 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.
--------------------------------------------------------------------------------------------
MONY LONG TERM BOND SUBACCOUNT Seeks to maximize income and capital
appreciation over the longer term by
This subaccount purchases shares of the investing in highly-rated fixed income
MONY Series Fund, Inc. Long Term Bond securities issued by a diverse mix of
Portfolio. 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.
--------------------------------------------------------------------------------------------
ENTERPRISE GROWTH AND INCOME SUBACCOUNT Seeks total return through capital
appreciation with income as a secondary
This subaccount purchases shares of the consideration by investing in a broadly
Enterprise Accumulation Trust Growth and diversified group of U.S. common stocks of
Income Portfolio. large capitalization companies.
--------------------------------------------------------------------------------------------
ENTERPRISE GROWTH SUBACCOUNT Seeks capital appreciation, primarily from
investments in U.S. common stocks of large
This subaccount purchases shares of the capitalization companies. Pursues goal by
Enterprise Accumulation Trust Growth investing in companies with long-term
Portfolio. earnings potential, but which are
currently selling at a discount to their
estimated long-term value.
--------------------------------------------------------------------------------------------
ENTERPRISE EQUITY SUBACCOUNT Seeks long-term capital appreciation by
investing primarily in U.S. common stock
This subaccount purchases shares of the of companies that meet the portfolio
Enterprise Accumulation Trust Equity manager's criteria of high return on
Portfolio. investment capital, strong positions
within their industries, sound financial
fundamentals and management committed to
shareholder interests.
--------------------------------------------------------------------------------------------
ENTERPRISE CAPITAL APPRECIATION SUBACCOUNT Seeks maximum capital appreciation,
primarily through investment in common
This subaccount purchases shares of the stocks of U.S. companies that demonstrate
Enterprise Accumulation Trust Capital accelerating earnings momentum and
Appreciation Portfolio. consistently strong financial
characteristics.
--------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 23
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
ENTERPRISE MANAGED SUBACCOUNT Seeks growth of capital over time by
investing in a portfolio consisting of
This subaccount purchases shares of the common stocks, bonds and cash equivalents,
Enterprise Accumulation Trust Managed the percentages of which vary over time
Portfolio. 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.
--------------------------------------------------------------------------------------------
ENTERPRISE SMALL COMPANY VALUE SUBACCOUNT Seeks maximum capital appreciation by
investing primarily in common stocks of
This subaccount purchases shares of the small capitalization companies that the
Enterprise Accumulation Trust Small portfolio manager believes are
Company Value Portfolio. undervalued -- that is the stock's market
price does not fully reflect the company's
value.
--------------------------------------------------------------------------------------------
ENTERPRISE INTERNATIONAL GROWTH SUBACCOUNT Seeks capital appreciation by investing
primarily in a diversified portfolio of
This subaccount purchases shares of the non-United States equity securities that
Enterprise Accumulation Trust the portfolio manager believes are
International Growth Portfolio. undervalued.
--------------------------------------------------------------------------------------------
ENTERPRISE HIGH YIELD BOND SUBACCOUNT Seeks maximum current income by primarily
investing in high yield, income producing
This subaccount purchases shares of the U.S. corporate bonds rated B3 or better by
Enterprise Accumulation Trust High Yield Moody's Investors Service, Inc., or B- or
Bond Portfolio. 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.
--------------------------------------------------------------------------------------------
DREYFUS STOCK INDEX SUBACCOUNT Seeks to match the total return of the
Standard & Poor's 500 Composite Stock
This subaccount purchases shares of the Price Index. Generally invests in all 500
Dreyfus Stock Index Fund. stocks in the S&P 500 in proportion to
their weighting in the index.
--------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 24
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
SUBACCOUNT AND DESIGNATED PORTFOLIO INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------------------
<S> <C> <C>
FIDELITY GROWTH SUBACCOUNT Seeks to achieve capital appreciation by
investing its assets primarily in common
This subaccount purchases shares of stocks that it believes have above-average
Fidelity Variable Insurance Products Fund growth potential. Tends to be companies
(VIP) -- with higher than average price/earnings
Growth Portfolio. ratios, and with new products,
technologies, distribution channels or
other opportunities, or with a strong
industry or market position. May invest in
securities of foreign issuers in addition
to those of domestic issuers.
--------------------------------------------------------------------------------------------
FIDELITY CONTRAFUND(R) Subaccount Seeks long-term capital appreciation by
investing mainly in equity securities of
This subaccount purchases shares of companies whose value is not fully
Fidelity Variable Insurance Products Fund recognized by the public. Typically,
II (VIP II) -- Contrafund(R) Portfolio. includes companies in turnaround
situations, companies experiencing
transitory difficulties, and undervalued
companies. May invest in securities of
foreign issuers in addition to those of
domestic issuers.
--------------------------------------------------------------------------------------------
JANUS CAPITAL APPRECIATION SUBACCOUNT Seeks long-term growth of capital. It
pursues its objective by investing
This subaccount purchases shares of Janus primarily in common stocks selected for
Aspen Series -- Capital Appreciation their growth potential. The portfolio may
Portfolio. invest in companies of any size, from
larger, well-established companies to
smaller, emerging growth companies.
--------------------------------------------------------------------------------------------
JANUS WORLDWIDE GROWTH SUBACCOUNT Seeks long-term growth of capital in a
manner consistent with the preservation of
This subaccount purchases shares of Janus capital. It pursues this objective by
Aspen Series -- Worldwide Growth investing primarily in common stocks of
Portfolio. 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.
--------------------------------------------------------------------------------------------
</TABLE>
THE FUNDS
The Funds (except for the Dreyfus Stock Index Fund and Janus Aspen Series
Capital Appreciation Portfolio) are diversified, open-end management investment
companies of the series type. Dreyfus Stock Index Fund and Janus Aspen Series
Capital Appreciation Portfolio 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.
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 you. Each of the portfolios has
different investment objectives and policies. MONY Life Insurance Company of
America, a wholly-owned subsidiary of the Company ("MONY America") is a
registered investment adviser under the Investment Advisers Act of 1940. MONY
America, 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
15
<PAGE> 25
other expenses including, for example, the calculation of the net asset value of
the portfolios. To carry out its duties as investment adviser, MONY America has
entered into a Services Agreement with the Company to provide personnel,
equipment, facilities and other services. As the investment adviser to the MONY
Series Fund, Inc., MONY America receives a daily investment advisory fee for
each portfolio (See chart below). Fees are deducted daily and paid to MONY
America monthly.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISORY FEE
--------------------------------------------------------------------------------------------
<S> <C> <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
--------------------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------------------
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; the shares of
some of which can be purchased by subaccounts available to you. Enterprise
Capital Management, Inc. ("Enterprise Capital"), a wholly owned subsidiary of
the Company, is the investment adviser of Enterprise 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.
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 advisory
fees and sub-investment advisory 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>
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 the next $400 million and excess of $1 billion of the
Company is the 0.70% in excess of $800 portfolio's average daily
sub-investment adviser. million of the portfolio's net assets.
average daily net assets.
----------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE> 26
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT
SUB-ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
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 the next $400 million and manages is an annual rate of
C. Bernstein & Co., Inc. 0.70% in excess of $800 0.40% up to $1 billion,
are the co-sub-investment million of the portfolio's 0.30% from $1 billion to $2
advisers. average daily net assets. billion, and 0.25% in excess
of $2 billion of the
portfolio's 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.
----------------------------------------------------------------------------------------------
GROWTH AND INCOME Annual rate of 0.75% of the Annual rate of 0.30% of the
PORTFOLIO portfolio's average daily first $100 million, 0.25% of
net assets. the next $100 million, and
Retirement Systems 0.20% in excess of $200
Investors, Inc. is the million of the portfolio's
sub-investment adviser. average daily net assets.
----------------------------------------------------------------------------------------------
GROWTH PORTFOLIO Annual rate of 0.75% of the Annual rate of 0.30% of the
portfolio's average daily first $1 billion and 0.20%
Montag & Caldwell, Inc. is net assets. in excess of $1 billion of
the sub-investment the portfolio's average
adviser. daily net assets.
----------------------------------------------------------------------------------------------
CAPITAL APPRECIATION Annual rate of 0.75% of the Annual rate of 0.45% of the
PORTFOLIO portfolio's average daily portfolio's average daily
net assets. net assets.
Marsico Capital
Management, LLC is the
sub-investment adviser.
----------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE> 27
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT
SUB-ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SMALL COMPANY VALUE Annual rate of 0.80% of the Annual rate of 0.40% of the
PORTFOLIO portfolio's average daily first $1 billion and 0.30%
net assets. in excess of $1 billion of
Gabelli Asset Management the portfolio's average
Company is the sub- daily net assets.
investment adviser.
----------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH Annual rate of 0.85% of the Annual rate of 0.40% of the
PORTFOLIO portfolio's average daily first $100 million 0.35% of
net assets. $100 million to $200
Vontobel USA Inc. is the million, 0.30% of $200
sub-investment adviser. million to $500 million,
0.25% in excess of $500
million of the portfolio's
average daily net assets.
----------------------------------------------------------------------------------------------
HIGH YIELD BOND PORTFOLIO Annual rate of 0.60% of the Annual rate of 0.30% of the
portfolio's average daily first $100 million and 0.25%
Caywood-Scholl Capital net assets. in excess of $100 million of
Management is the sub- the portfolio's average
investment adviser. daily net assets.
----------------------------------------------------------------------------------------------
</TABLE>
DREYFUS STOCK INDEX FUND
The Dreyfus Corporation is the investment adviser of the Dreyfus Stock
Index Fund. As described below, The Dreyfus Corporation contracts with
sub-investment advisers to assist in managing the portfolios as noted below.
Fees are deducted on a monthly basis. The daily investment advisory fees and
sub-investment advisory fees for each portfolio are shown in the table below.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
PORTFOLIO AND
SUB-INVESTMENT ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
DREYFUS STOCK INDEX FUND Annual rate of 0.245% of the Annual rate of 0.095% of the
fund's average daily net value of the fund's average
Mellon Equity Associates assets. daily net assets.
is the sub-investment
adviser.
----------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE> 28
FIDELITY VARIABLE INSURANCE PRODUCTS FUND -- SERVICE CLASS -- GROWTH PORTFOLIO
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II -- SERVICE CLASS -- CONTRAFUND(R)
PORTFOLIO
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 advisory fee for each portfolio is shown in
the table below.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
PORTFOLIO AND SUB-INVESTMENT ADVISERS INVESTMENT ADVISER FEE
----------------------------------------------------------------------------------------
<S> <C>
FIDELITY VARIABLE INSURANCE PRODUCTS The fee is calculated by adding a group
FUND -- GROWTH PORTFOLIO 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.
----------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUND The fee is calculated by adding a group
II -- CONTRAFUND(R) PORTFOLIO fee rate to an individual fee rate,
dividing by twelve, and multiplying the
Fidelity Management & Research (U.K.) Inc. result by the Fund's average net assets
and Fidelity Management & Research Far throughout the month. The group fee rate
East Inc. are the sub-investment advisers. 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>
JANUS ASPEN SERIES
Janus Aspen Series has several portfolios. The shares of four of the
portfolios can 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>
JANUS ASPEN SERIES -- CAPITAL Annual rate of 0.65% of the portfolio's
APPRECIATION PORTFOLIO average daily net assets.
----------------------------------------------------------------------------------------
JANUS ASPEN SERIES -- WORLDWIDE GROWTH Annual rate of 0.65% of the portfolio's
PORTFOLIO average daily net assets.
----------------------------------------------------------------------------------------
</TABLE>
The investment objectives of each portfolio (except for the Janus
portfolios) are fundamental and may not be changed without the approval of the
holders of a majority of the outstanding shares of the portfolio affected. For
each of the Funds a majority 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.
19
<PAGE> 29
The investment objectives of the Janus portfolios are non-fundamental and may be
changed by the Fund's Trustees without a shareholder vote.
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 of the portfolios is 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 chart on pages 12-15. 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
DETAILED INFORMATION ABOUT THE POLICY
The Fund Value in MONY Variable Account L and the Guaranteed Interest
Account provide many of the benefits of your 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 Fund Value.
APPLICATION FOR A POLICY
The policy design meets the needs of individuals as well as for
corporations who provide coverage and benefits for key employees. 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 for ages up to
and including 80 with evidence of insurability that satisfies the Company.
Policies offered to residents of, or issued for delivery in, the State of
Maryland may only be issued on the life of an Insured for Ages up to and
including Age 70 with evidence of insurability satisfactory to the Company.
Policies offered to residents of, or issued for delivery in, the State of New
Jersey may only be issued on the lives of Insureds between the Ages of 18 and
70, depending upon the health and smoking status of the Insured applicants. The
age of the insured is the age on his or her birthday nearest to the
20
<PAGE> 30
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 Specified Amount you may apply for is $100,000. However, the
Company reserves the right to revise its rules at any time to require a
different minimum Specified Amount 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, and are more
than 15 days old and not more than 70 years old, you may be eligible for a
temporary insurance agreement. You must complete an application for the policy
and give it to the Company's licensed agent. The application contains a number
of questions about your health. Your eligibility for temporary coverage will
depend upon your answers to those questions. In addition, you must complete and
sign the Temporary Insurance Agreement Form. You must also submit payment for at
least one Minimum Monthly Premium for the Policy as applied for. Your coverage
under the Temporary Insurance 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 22.
Coverage under the Temporary Insurance Agreement ends on the earliest of:
- the Policy Release Date, if the policy is issued as applied for;
- the 15th day after the Policy Release Date or the date the policy takes
effect, if the policy is issued other than as applied for;
- no later than 90 days from the date the Temporary Insurance Agreement is
signed;
- the 45th day after the form is signed if you have not finished the last
required medical exam;
- 5 days after the Company sends notice to you that it declines to issue
any policy; and
- the date you tell the Company that the policy will be refused.
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 5% per year. 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 on which the coverage under the Temporary Insurance
Agreement ends other than because the applicant has died or the policy
applied for is issued or refused.
Premiums will be returned to you with interest within 5 days after the date
the Company sends notice to you declining to issue any policy.
21
<PAGE> 31
Initial Premium Payment
Once your application is approved and you are 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 earns interest
until the Policy Release Date. The policy premium credited with interest equals
amounts in the general account under the Temporary Insurance 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, your premium will be held in
the general account until the policy date. Premium held in the Company's general
account earns an interest rate set by the Company, but will not be less than 5%
per year. Upon the Policy Release Date (or when your premium payment is received
if you did not pay premium when you applied for the policy) your premiums will
be allocated to the Money Market Subaccount. When the Free Look Period ends,
amounts held in the Money Market Subaccount will be allocated to the subaccounts
of MONY Variable Account L or the Guaranteed Interest Account pursuant to your
instructions. (See "Right to Examine a Policy -- Free Look," below.)
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 to your
advantage 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 examination
of the proposed insured. The Company may use other forms of underwriting when it
is considered appropriate.
RIGHT TO EXAMINE A POLICY -- FREE LOOK PERIOD
The Right to Return Policy Period runs for 10 days (or longer in certain
states) after you receive the policy. During this period, you 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, subject to the limitations described below, to pay premiums at your
discretion.
Premium Flexibility
The Company requires you to pay an amount equal to at least the Minimum
Monthly Premium to put the policy in effect. If you want to pay premiums less
often than monthly, the premium required to put the policy in effect is equal to
the Minimum Monthly Premium multiplied by 12 divided by the frequency of the
scheduled premium payments. This Minimum Monthly Premium will be based upon:
1) the policy's Specified Amount,
2) any riders added to the policy, and
22
<PAGE> 32
3) the insured's
a) Age,
b) smoking status,
c) gender (unless unisex cost of insurance rates apply, see
"Deductions from Fund Value -- Cost of Insurance," page 41), and
d) underwriting class.
The Minimum Monthly Premium will be shown in the policy. Thereafter,
subject to the limitations described below, you may choose the amount and
frequency of premium payments to reflect your varying financial conditions.
The policy is guaranteed not to lapse during the first three policy years
if on each monthly anniversary the conditions previously described in "Summary
of the Policy" on page 2 are met. See also "Grace Period and Lapse," page 35.
Scheduled Premium Payments (Planned Premium Payments)
When you apply for a policy, you determine a scheduled premium payment.
This scheduled premium payment provides for the payment of level premiums at
fixed intervals over a specified period of time. You will receive a premium
reminder notice for the scheduled premium payment amount on an annual,
semiannual or quarterly basis, at your option. The minimum scheduled premium
payment equals the Minimum Monthly Premium multiplied by 12 divided by the
scheduled premium payment frequency. Although reminder notices will be sent, you
may not be required to pay scheduled premium payments. For policies offered to
residents of, or issued for delivery in the Commonwealth of Massachusetts, you
will determine a Planned Premium Payment. The Planned Premium Payment provides
for the payment of level premiums at fixed intervals over a specified period of
time. For those policyowners, the term "Scheduled Premium Payment" used in this
Prospectus refers to "Planned Premium Payment."
You may elect to make monthly premium payments by the MONYMatic Plan. Based
on your policy date, up to two Minimum Monthly Premiums may be required to be
paid in cash before premiums may be paid by the MonyMatic Plan. Paying premiums
by electronic funds transfer requires you to authorize the Company to withdraw
premiums from your checking account each month.
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 35.)
Modified Endowment Contracts
The amount, frequency and period of time over which you pay premiums may
affect whether your 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 you take certain pre-death
distributions from your policy. See "Federal Income Tax
Considerations -- Modified Endowment Contracts," page 47.
Unscheduled Premium Payments
Generally, you 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 you wish
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 exceeds the Specified Amount for the policy.
The policy's death benefit would exceed the Specified Amount of the policy if
your Fund Value multiplied by the death benefit percentage determined in
accordance with the federal income tax law definition of life insurance exceeds
the Specified Amount. See "Death Benefits Under the Policy," page 24 and
"Federal Income Tax Considerations --
23
<PAGE> 33
Definition of Life Insurance," page 45. However, such a premium may be accepted
if you provide us with satisfactory evidence of insurability. 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 you if it would exceed the maximum premium limitations prescribed by
the federal income tax law definition of life insurance.
Payments you send to us will be treated as premium payments, and not as
repayment of Outstanding Debt, unless you request otherwise. If you request 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 Fund 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 you skip or stop paying premiums, the policy will continue in effect
until the Cash Value less Outstanding Debt can no longer cover (1) the monthly
deductions from the Fund Value for the policy, and (2) the charges for any
optional insurance benefits added by rider. See "Grace Period and Lapse" page
35.
Your policy is guaranteed to remain in effect as long as: if:
(a) the Cash Value less any Outstanding Debt is greater than zero; or
(b) during the first two policy years, the Minimum Monthly Premium
requirements are satisfied, and if you increase the Specified Amount during
the first two policy years the Minimum Monthly Premium requirements are
satisfied during the two policy years following the effective date of the
increase.
ALLOCATION OF NET PREMIUMS
Net premiums may be allocated to any number of the nine 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%.
You may change the allocation of net premiums at any time by submitting a
proper written request to the Company's administrative office at 1740 Broadway,
New York, New York, 10019. In addition, you may make changes in net premium
allocation instructions by telephone if a properly completed and signed
telephone transfer authorization form has been received by us at our Syracuse
Operations Center at 1 MONY Plaza, Syracuse, New York, 13202. The Company may
stop making available the ability to give net premium allocation instructions by
telephone at any time, but it will give you notice before doing so if we have
received your telephone transfer authorization form. See "Telephone Transfer
Privileges," page 56. Whether you give us instructions in writing or by
telephone, 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 your policy is issued, the initial amount of insurance ("Specified
Amount") is shown on the specification page of your policy. The minimum
Specified Amount is $100,000.
As long as the policy is in effect, the Company will, upon proof of death
of an insured, pay death benefit proceeds to a named beneficiary. Death benefit
proceeds will consist of:
(1) The policy's death benefit, plus
(2) Any insurance proceeds provided by rider, less
24
<PAGE> 34
(3) Any Outstanding Debt reduced by any unearned loan interest (and,
if in the Grace Period, less any overdue charges).
You may select one of two death benefit Options: Option I or Option II.
Generally, you designate the death benefit option in your application. If no
option is designated, the Company assumes Option I has been selected. Subject to
certain restrictions, you can change the death benefit option selected. As long
as your policy is in effect, the death benefit under either option will never be
less than the Specified Amount of your policy.
Option I -- The death benefit equals the greater of:
(a) The Specified Amount, plus the increase in Fund Value since last
monthly anniversary day or
(b) Fund Value on date of death plus FV since last monthly anniversary
day 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 43. The death benefit
percentage is 150% 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 Fund Value, and not in
increasing insurance coverage, you should choose Option I.
Option II -- The death benefit equals the greater of:
(a) The Specified Amount of the policy, plus the Fund Value as of date
of death or
(b) The Fund Value on date of death plus Fund Value on the last
monthly anniversary day multiplied by a death benefit percentage.
The Fund 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 I and is stated in Appendix A. The death benefit in Option
II will always vary as Fund Value varies. If you seek to have favorable
investment performance reflected in increased insurance coverage, you
should choose Option II.
Examples of Options I and II
The following examples demonstrate the determination of death benefits
under Options I and II. The examples show three policies with the same Specified
Amount, but Fund Values that vary as shown. It is assumed that the insured is
age 40 at the time of death and that there is no Outstanding Debt. The date of
death is also assumed to be on a monthly anniversary day.
<TABLE>
<CAPTION>
POLICY 1 POLICY 2 POLICY 3
-------- -------- --------
<S> <C> <C> <C>
Specified Amount........................................... $100,000 $100,000 $100,000
Fund Value on Date of Death................................ $ 35,000 $ 60,000 $ 85,000
Death Benefit Percentage................................... 150% 150% 150%
Death Benefit under Option 1............................... $100,000 $150,000 $212,500
Death Benefit under Option 2............................... $135,000 $160,000 $212,500
</TABLE>
Option I, Policy 1: The death benefit equals $100,000 since the death benefit
is the greater of the Specified Amount ($100,000) or the Fund Value plus the
Fund Value multiplied by the death benefit percentage ($35,000 x 250% =
$87,500).
Option I, Policies 2 & 3: The death benefit is equal to the Fund Value plus the
Fund Value multiplied by the death benefit percentage since ($60,000 x 250% =
$150,000 for Policy 2; $85,000 x 150% = $212,500 for Policy 3) is greater than
the Specified Amount ($100,000).
25
<PAGE> 35
Option II, Policy 1: The death benefit equals $135,000 since the Specified
Amount plus the Fund Value ($100,000 + $35,000 = $135,000) is greater than the
Fund Value plus the Fund Value multiplied by the death benefit percentage
($35,000 x 150% = $87,500).
Option II, Policy 2: The death benefit equals the Specified Amount plus the
Fund Value ($100,000 + $60,000 = $160,000) since it is greater than the Fund
Value plus the Fund Value multiplied by the death benefit percentage ($60,000 x
150% = $150,000).
Option II, Policy 3: The death benefit is the Fund Value plus the Fund Value
multiplied by the death benefit percentage ($85,000 x 150% = $212,500) since it
is greater than the Specified Amount plus the Fund Value ($100,000 + $85,000 =
$185,000).
The Company pays death benefit proceeds to a beneficiary in a lump sum or under
a payment plan offered under the policy. The policy should be consulted for
details.
Changes in Death Benefit Option
You may request that the death benefit option under your policy be changed
from Option I to Option II, or Option II to Option I. You may make a change by
sending a written request to the Company's administrative office. A change from
Option II to Option I is made without providing evidence of insurability. A
change from Option I to Option II 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 day after the change
is accepted by the Company.
If you change from Option I to Option II your policy's Specified Amount is
reduced by the amount of the policy's Fund Value at the date of the change. This
maintains the death benefit payable under Option II at the amount that would
have been payable under Option I immediately prior to the change. The total
death benefit will not change immediately. The change to Option II will affect
the determination of the death benefit from that point on. As of the date of the
change, the Fund Value will be added to the new specified Amount. The death
benefit will then vary with the Fund 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 II to Option I, the Specified Amount of the
policy will remain the same. The death benefit will be reduced to the Specified
Amount. However, the death benefit will equal the Fund Value on the date of
death plus the Fund Value on the Monthly Anniversary day prior to the date of
death times the Death Benefit Percentage if that amount is greater than the
Specified Amount. The change to Option I will generally reduce the death benefit
payable in the future.
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 death benefit
exceeds Fund Value. See "Deductions from Fund Value -- Cost of Insurance," page
38. If the policy's death benefit is not based on the death benefit percentage
under Option I or II, changing from Option II to Option I will generally
decrease the net amount at risk. Therefore, this change may decrease the cost of
insurance charges. Changing from Option I to Option II will generally result in
a net amount at risk that remains level. 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 SPECIFIED AMOUNT
You may request an increase or decrease in the Specified Amount under your
policy subject to Company approval. A change in the Specified Amount may be made
at any time after the second policy anniversary. Increases in Specified Amount
are not permitted on or after the insured's age 81. For policies offered to
residents of, or issued for delivery in, the State of New Jersey, increases in
Specified Amount are not permitted after the insured's age 66. Increasing the
Specified Amount will generally increase the policy's death benefit. Decreasing
the Specified Amount will generally decrease the policy's death benefit. The
amount of change in the death benefit depends on (1) the death benefit option
chosen, and (2) whether the death benefit under the policy is being computed
using the death benefit percentage at
26
<PAGE> 36
the time of the change. Changing the Specified Amount could affect the
subsequent level of the death benefit while the policy is in effect and the
policy values. For example, an increase in Specified Amount may increase the net
amount at risk, which will increase your cost of insurance charges over time.
Conversely, a decrease in Specified Amount may decrease the net amount at risk,
which may decrease your cost of insurance over time.
To increase or decrease the Specified Amount, send a written application to
the Company's administrative office. It will become effective on the monthly
anniversary day on or next following the Company's acceptance of your request.
If you are not the insured, the Company may also require the consent of the
insured before accepting a request.
Increases
An increase of Specified Amount requires that additional, satisfactory
evidence of insurability be provided to the Company. An increase will not be
given for increments of Specified Amount less than $10,000.
When you request an increase in Specified Amount, a new "coverage segment"
is created for which cost of insurance and other charges are computed
separately. See "Charges and Deductions," page 38. In addition, the fund charge
associated with your policy will increase. The fund charge for the increase is
computed in a similar way as for the original Specified Amount. The target
premiums will also be adjusted. The adjustment will be done prospectively to
reflect the increase. If the Specified Amount is increased when a premium
payment is received, the increase will be processed before the premium payment
is processed.
If an increase creates a new coverage segment of Specified Amount, Fund
Value after the increase will be allocated, (1) first to the original coverage
segment, and (2) the new coverage segments. Allocation to new coverage segments
will be in the same proportion that the guideline annual premiums for each
segment bear to the sum of guideline annual premiums for all segments. Guideline
annual premiums are defined by federal securities law. Fund Value will also be
allocated to each coverage segment.
You will have the right to cancel an increase in the Specified Amount
within the later of (1) 45 days after Part I of the application for the increase
is signed, (2) ten days (or longer in certain states) after receipt of the
policy endorsement applicable to the increase, or (3) ten days after mailing or
personal delivery of a notice as to the availability of the Free Look provision.
If the increase is canceled, any charges attributable to the increase will be
reversed and then added to your Fund Value, without sales or other loads. The
policy fund charge will also be adjusted to the amount which would have existed
had the increase never taken place.
Decreases
Any decrease in Specified Amount (whether requested by you or resulting
from a partial surrender or a death benefit option change) will be applied:
(1) To reduce the coverage segments of Specified Amount associated
with the most recent increases, then
(2) To the next most recent increases successively, and last
(3) To the original Specified Amount.
A decrease will not be permitted if the Specified Amount would fall below
$100,000. A decrease will not be given if less than $10,000.
If the reduction decreases the Specified Amount during the fund charge
period, the fund charge on the remaining Specified Amount will be reduced.
However, an amount equal to the reduction in the fund charge will be deducted
from the Fund Value. See "Fund Charge", page 42. Target premiums, will also be
27
<PAGE> 37
adjusted for the decrease in Specified Amount. If the Specified Amount is
decreased when a premium payment is received, the decrease will be processed
before the premium payment is processed. Rider coverages may also be affected by
a decrease in Specified Amount.
The Company reserves the right to 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
Fund Value for compliance with the guideline premium limitations, and the
amount of the payments would exceed the Surrender Value of your 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 45.
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
Fund Value for each optional benefit added to your policy. See "Charges and
Deductions," page 38. 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 47. 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.
Spouse's Term Rider
This rider provides for term insurance benefits on the life of the
insured's spouse, to the spouse's age 70. The minimum amount of coverage is
$25,000. The rider coverage may be converted without evidence of insurability to
any level premium, level face amount permanent plan of insurance offered by the
Company at any time prior to the spouse's age 65 or 5 years from the issue of
the rider, if later.
Children's Term Insurance Rider
This rider provides term insurance coverage on the lives of the children of
the insured under age 18. The coverage continues to the policy anniversary
nearest the Insured's Age 65 or the child's 22nd birthday, if earlier. It
provides coverage for children upon birth or legal adoption without presenting
evidence of insurability. Coverage is limited to the lesser of the initial
Specified Amount or $10,000. Upon the expiration of the rider coverage, it may
be converted to any level premium, level face amount permanent plan of insurance
then offered by the Company.
Accidental Death Benefit Rider
This rider pays the benefit amount selected if the insured dies as a result
of an accident. The accident must occur after the insured's age 5 and prior to
insured's age 70. A benefit equal to twice the rider amount is payable if:
(1) accidental death occurs as the result of riding as a passenger,
and
(2) the accidental death occurred while riding in a public conveyance,
and
(3) the public conveyance was being operated commercially to transport
passengers for hire.
28
<PAGE> 38
The maximum amount of coverage is the initial specified amount but not more
than the greater of:
(1) $100,000 total coverage of all such insurance in the Company or
its affiliates, or
(2) 200,000 of all such coverages regardless of insurance companies
issuing such coverages.
Purchase Option Rider
This Rider provides the option to purchase up to $50,000 of additional
coverage without providing additional evidence that the insured remains
insurable. Coverage may be added on each policy anniversary when the insured's
age is 25, 28, 31, 34, 37 and 40. In addition, the future right to purchase new
insurance on the next option date may be advanced and exercised immediately upon
the following events:
- Marriage of the insured.
- Birth of a child of the insured.
- Legal adoption of a child by insured.
A period of term insurance is automatically provided starting on the date
of the specified event. The interim term insurance, and the option to accelerate
the purchase of the coverage expires 60 days after the specified event.
Waiver of Monthly Deduction Rider
This rider provides for the waiver of certain charges while the insured has
a covered disability and the policy is in effect. While the insured is disabled,
no deductions are made for (1) monthly administrative charges, (2) cost of
insurance charges, and rider charges. During this period the charges are waived
and therefore not deducted from the Fund Value.
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 Surrender Value of the policy.
Ordinarily, the Company pays within seven days of the policy anniversary.
Payments may be postponed in certain circumstances. See "Payments," page 55.
Premiums will not be accepted, nor will monthly deductions be made, after the
maturity date.
POLICY VALUES
Fund Value
The Fund Value is the sum of the amounts under the policy held in each
subaccount of MONY 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 Fund Value allocated to any
particular subaccount is adjusted to reflect the investment experience of that
subaccount. On each monthly anniversary day, the Fund Value also is adjusted to
reflect interest on the Guaranteed Interest Account and the Loan Account and the
assessment of the monthly deduction. See "Determination of Fund Value," page 30.
No minimum amount of Fund Value allocated to a particular subaccount is
guaranteed. You bear the risk for the investment experience of Fund Value
allocated to the subaccounts.
Cash Value
The Cash Value of the policy equals the Fund Value less any Outstanding
Debt reduced by any unearned loan interest. Thus, the Fund Value exceeds your
policy's Cash Value by the amount of the surrender charge. Once the surrender
charge expires, the Cash Value equals the Fund Value.
29
<PAGE> 39
DETERMINATION OF FUND VALUE
Although the death benefit under a policy can never be less than the
policy's Specified Amount, the Fund Value will vary. The Fund Value varies
depending on several factors:
- Payment of premiums.
- Amount held in the Loan Account to secure any Outstanding Debt.
- Partial surrenders.
- Preferred 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 Fund Value (except to the extent that you have
allocated net premium payments and cash values to the Guaranteed Interest
Account) and you bear the entire risk relating to the investment performance of
Fund Value allocated to the subaccounts.
The Company uses amounts allocated to the subaccounts to purchase 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 fees.
- 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 31.) 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 premiums or amounts
transferred (including transfers from the Loan Account) are allocated to that
subaccount. Units are redeemed (debited) to:
- Make partial surrenders.
- Make Preferred Partial Surrenders.
- Make full surrenders.
- Transfer amounts from a subaccount (including transfers to the Loan
Account).
- Pay the death benefit when the insured dies.
- Pay monthly deductions from the policy's Fund Value.
- Pay policy transaction charges.
30
<PAGE> 40
- Pay surrender charges.
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
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) Subtract a charge for the mortality and expense risk assumed by
the Company under the policy. See "Daily Deductions From the Variable
Account -- Mortality and Expense Risk Charge," page 37. If the previous day
was not a Valuation Date, then the charge is adjusted for the additional
days between valuations.
(4) Divide the resulting amount by the number of units held in the
subaccount on the Valuation Date before the purchase or redemption of any
units on that date.
The unit value of each subaccount on its first Valuation Date was set at
$10.00.
31
<PAGE> 41
DETERMINING FUND VALUE
[DETERMINING FUND VALUE FLOW CHART]
TRANSFER OF FUND VALUE
You may transfer Fund Value among the subaccounts after the Free Look
Period by sending a proper written request to the Company's administrative
office. Transfers may be made by telephone if you have proper authorization. See
"Telephone Transfer Privileges," page 60. Currently, there are no limitations on
the number of transfers between subaccounts. There is also no minimum amount
required: (1) to make a transfer, or (2) to remain in the subaccount after a
transfer. You may not make a transfer if your policy is in the grace period and
a payment required to avoid lapse is not paid. See "Grace Period and Lapse,"
page 35. No charges are currently imposed upon these transfers. However, the
Company reserves the right to assess a $25 transfer charge in the future on
policy transfers in excess of four during a policy year and to discontinue
telephone transfers.
32
<PAGE> 42
After the Free Look Period, Fund 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 52.
RIGHT TO EXCHANGE POLICY
During the first 24 months following the policy date or an increase in the
Specified Amount, 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 of a flexible
premium universal life policy. See "The Guaranteed Interest Account," page 52.
No charge is imposed on the transfer when you exercise the exchange privilege.
POLICY LOANS
You may borrow money from the Company at any time using your policy as
security for the loan. You take a loan by submitting a proper written request to
the Company's administrative office. You may take a loan any time your policy
has a positive Cash Value. The minimum amount you may borrow is $250. The
maximum amount you may borrow at any time is 90% of the Cash Value of your
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 advance on each policy anniversary at an annual
rate of 5.4%. Interest on the full amount of any Outstanding Debt for the
following Policy Year 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.
You 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 you take a loan, an amount equal to the loan is transferred out of the
subaccounts and the Guaranteed Interest Account 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. If the Policy Owner does not specify the source of the transfer, or if
the transfer instructions are incorrect, loan amounts will be deducted from the
Subaccounts and the Guaranteed Interest Account in the proportion that each
bears to the Fund Value less Outstanding Debt. 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 the basis you specify, or, if you do not
specify, on a proportional basis.
The Fund Value in the Loan Account in excess of the Outstanding Debt will
be allocated to the subaccounts and/or the Guaranteed Interest Account in a
manner determined by the Company.
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 5%. After the tenth Policy anniversary, it is expected the annual interest
rate that applies to the Loan Account will be .5% higher than otherwise
applicable. This increase is not guaranteed.
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, subject to the
limitation of maintaining no more than $250,000 in the Guaranteed Interest
Account. In addition, any
33
<PAGE> 43
interest earned on the amount held in the Loan Account will be transferred to
each of the Subaccounts and Guaranteed Interest Account on the same basis.
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 value paid upon surrender or maturity.
Outstanding Debt may affect the length of time the policy remains in
effect. After the third policy anniversary (or, in some instances, the third
anniversary following an increase), your policy will lapse when (1) Cash Value
is insufficient to cover the monthly deduction against the policy's Fund 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. Additional payments or repayments of a
part of Outstanding Debt may be required to keep the Policy in effect. See
"Grace Period and Lapse," page 35.
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 45.
FULL SURRENDER
You may fully surrender your policy at any time during the lifetime of the
insured. The amount received for a full surrender is the policy's Fund Value
less (1) any fund charge, and (2) any Outstanding Debt reduced by any unearned
loan interest.
You may surrender your 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. You may elect to (1) have the proceeds paid in cash, or
(2) apply the proceeds under a payment plan offered under your policy. See
"Payment Plan Settlement Provisions," page 56. For information on the tax
effects of surrender of a policy, see "Federal Income Tax Consideration," page
45.
PARTIAL SURRENDER
With a partial surrender, you obtain a part of the Surrender Value of your
policy without having to surrender the policy in full. You may request a partial
surrender after the second policy anniversary. The partial surrender will take
effect on (1) the business day that we receive your request at our
administrative office, or (2) on the next business day if that day is not a
business day. There is currently no limit on the number of partial surrenders
allowed in a policy year. However, 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, your policy's Surrender Value must be at least $500 after the partial
surrender.
You may make a partial surrender by submitting a proper written request to
the Company's home office. As of the effective date of any partial surrender,
your Fund Value, Cash Value, and Surrender Value are reduced by the amount
surrendered (plus the applicable fee). The amount of any partial surrender (plus
the applicable fee) is allocated proportionately to the policy owner's Fund
Value in the
34
<PAGE> 44
subaccounts and Guaranteed Interest Account unless he/she requests otherwise. If
the insured dies after the request for a partial surrender is sent to the
Company and prior to it being effected, the amount of the partial surrender will
be deducted from the death benefit proceeds. The death benefit proceeds will be
determined taking into account the amount surrendered.
When a partial surrender is made on a policy on which the owner has
selected death benefit Option I, the Specified Amount under the policy is
decreased by the lesser of (1) the amount of the partial surrender or (2) if the
death benefit prior to the Partial Surrender is greater than the Specified
Amount, the amount, if any, by which the Specified Amount exceeds the difference
between the death benefit and the amount of the partial surrender. A partial
surrender will not change the Specified Amount of a policy on which the owner
has selected death benefit Option II. However, assuming that the death benefit
is not equal to Fund Value plus Fund Value times a death benefit percentage, the
partial surrender will reduce the death benefit by the amount of the partial
surrender. To the extent the death benefit is based upon the Fund Value plus
Fund Value times the death benefit percentage applicable to the insured, a
partial surrender may cause the death benefit to decrease by an amount greater
than the amount of the partial surrender. See "Death Benefits under the Policy,"
page 24.
A fee for each Partial Surrender will be assessed. See "Charges and
Deductions -- Transaction and Other Charges", page 44. In addition, a portion of
the Fund Charge may be assessed if the Specified Amount is reduced as a result
of the Partial Surrender. See "Charges and Deductions -- Fund Charge," page 42.
For information on the tax treatment of partial surrenders, see "Federal
Income Tax Considerations," page 45.
PREFERRED PARTIAL SURRENDER
A Fund Charge which otherwise would have been imposed, will not be imposed
to the extent required to permit the policy owner to receive amounts up to 10%
of the Cash Value of the policy each year. The Cash Value of the policy is
determined on the date the first request for a Partial Surrender is received in
a Policy Year. The partial surrender fee will, however, be charged. The Company
reserves the right to limit the number of partial surrenders available under the
Preferred Partial Surrender to not more than 12 per policy year.
GRACE PERIOD AND LAPSE
Your policy will remain in effect as long as:
(1) it has a Cash Value greater than zero, and
(2) you make any required additional premium payments during a 61-day
Grace Period.
Special Rule for First Two Policy Years
During the first two policy years, your policy and any riders are
guaranteed not to lapse if on each monthly anniversary day either:
- Your policy's Cash Value is greater than zero, or
- The sum of the premiums paid minus all partial surrenders (and related
fees), minus any Outstanding Debt, is greater than or equal to
- The Minimum Monthly Premium times the number of months your policy has
been in effect
35
<PAGE> 45
The policy may be at risk of lapse if:
- an insufficiency occurs at any time after the second policy
anniversary, or
- the Minimum Monthly Premium test has not been met during the first two
policy years.
See the explanation below.
We will not accept any payment if it would cause the total premium payments
to exceed the maximum permissible premium for the policy's Specified Amount
under the Internal Revenue Code. This may occur when the policy owner has
Outstanding Debt. In such case, the policy owner could repay a sufficient
portion of the Outstanding Debt to avoid termination. To avoid recurrence of
potential lapse the policy owner may wish to:
- repay an additional portion of Outstanding Debt, and
- if premium payments have not exceeded the maximum permissible premiums
for the policy's Specified Amount, the policy owner may also wish to
make larger or more frequent premium payments.
If the Cash Value of the policy less Outstanding Debt is insufficient to
cover the entire monthly deduction on a monthly anniversary, we will deduct the
amount that is available. We will notify you (and any assignee of record) of the
payment required to keep the policy in effect. You will then have a grace period
of 61 days to make the required payment. The grace period starts from the date
the notice is sent. During the first two policy years, the payment required is:
- the amount of Minimum Monthly Premium not paid plus not less than two
succeeding Minimum Monthly Premiums, or
- the number of Minimum Monthly Premiums remaining until the next
scheduled premium due date.
After the second policy anniversary, the payment required is:
- the amount of the monthly deduction not paid, plus
- not less than two succeeding monthly deductions, or the number of
monthly deductions remaining until the next scheduled premium due
date, grossed up by the amount of the deductions from premiums (see
"Charges and Deductions -- Deductions from Premiums", page 40).
The policy will remain in effect through the grace Period. Failure to make the
required payment within the grace period will result in termination of coverage
under the policy. If the required payment is made during the grace period, any
premium paid will be allocated among the subaccounts of MONY Variable Account L
and the Guaranteed Interest Amount in accordance with your current scheduled
premium payment allocation instructions. Any monthly deduction due will be
charged to the subaccounts and the Guaranteed Interest Account on a
proportionate basis. If the insured dies during the grace period, the death
benefit proceeds will equal the amount of the death benefit immediately prior to
the start of the grace period, reduced by any unpaid monthly deductions and any
Outstanding Debt reduced by any unearned loan interest.
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.
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<PAGE> 46
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,
(5) Payment of interest on debt reinstated from the beginning of the
grace period to the end of the grace period at the rate that applies to
policy loans on the date of reinstatement.
When your policy is reinstated, the Fund Value will be equal to the Fund
Value on the date of the lapse subject to the following:
(1) The Fund charge will be equal to the Fund charge that would have
existed had your policy been in effect since the original policy date.
(2) The Fund Value will be reduced by the decrease, if any, in the
Fund charge during the period that the policy was not in effect.
(3) Any Outstanding Debt on the date of lapse will also be reinstated.
(4) 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
preceding the date of approval by us. At that time, the Fund 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.
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<PAGE> 47
CHARGES AND DEDUCTIONS
The following chart is intended to provide an overview of the current
charges and deductions under the policy. Please see the discussion of each item
in this prospectus and in the policy for further details.
--------------------------------------------------------------------------------
DEDUCTIONS FROM PREMIUMS
<TABLE>
<CAPTION>
<S> <C> <C>
------------------------------------------------------------------------------------------------------
Sales Charge -- Varies based on number of years Premiums paid during first ten policy
the policy has been in effect. It years -- 4%
is a % of Premium paid. Premiums paid during policy years
11-20 -- 2%
Premiums paid after policy year 20 -- 0%
------------------------------------------------------------------------------------------------------
Tax Charge State and local -- 0.8%
Federal -- 1.25%
</TABLE>
--------------------------------------------------------------------------------
DAILY DEDUCTION FROM MONY VARIABLE ACCOUNT L
<TABLE>
<S> <C> <C>
----------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge -- Maximum .75% of subaccount value (0.002055% daily)
Annual Rate Reduces after 10th policy year
</TABLE>
--------------------------------------------------------------------------------
DEDUCTIONS FROM FUND 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
----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
EACH OF
1ST 12 EACH
POLICY MONTH
SPECIFIED AMOUNT MONTHS THEREAFTER
---------------- ------- ----------
<S> <C> <C> <C> <C>
Administrative Charge -- monthly charge based on Less than $250,000............ $31.50* $6.50
Specified Amount of policy. $250,000-$499,999............. $28.50* $3.50
$500,000 or more.............. $25.00* None
---------------
* Reduced by $5.00 for issue ages 0 through 17.
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Optional Insurance Benefits Charge As applicable.
Monthly Deduction for any other Optional Insurance
Benefits added by rider.
----------------------------------------------------------------------------------------------------
Transaction and Other Charges The lesser of 2% of the amount
-Partial Surrender Fee surrendered or $25.
-Transfer of Fund Value Maximum $25 on each Transfer in a policy
(at Company's Option) year exceeding four.(1)
</TABLE>
--------------------------------------------------------------------------------
(1) Currently no charge on any transfer.
38
<PAGE> 48
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADMINISTRATIVE FUND CHARGE ISSUE AGE* ADMINISTRATIVE
---------- FUND CHARGE
--------------
<S> <C> <C> <C>
Over 14 years based on a schedule. Factors per 0-25........................ $2.50
$1,000 of Specified Amount vary based on issue age. 26.......................... 3.00
27.......................... 3.50
28.......................... 4.00
29.......................... 4.50
30 or higher................ 5.00
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Sales Fund Charge ISSUE AGE PERCENTAGE
---------- ---------
Percentage of premiums paid in the first 5 years, 0-17........................... 50%
up to a maximum amount of premiums called the 18-65.......................... 75
target premium. 66............................. 70
67............................. 65
68............................. 60
69............................. 55
70 or higher................... 50
---------------
The Sales Fund Charge can increase as
premiums are paid during the five year
period. Starting on the fifth anniversary,
the charge decreases from its maximum by
10% per year until it reaches zero at the
end of the 14th year.
</TABLE>
--------------------------------------------------------------------------------
The following provides additional details of the deductions from premium
payments under a policy prior to allocating net premium payments to the
subaccounts of MONY Variable Account L or to the Guaranteed Interest Account and
of the deductions from MONY Variable Account L and from the policy's Fund Value.
39
<PAGE> 49
DEDUCTIONS FROM PREMIUMS --
Deductions are made from each premium payment prior to applying the net
premium payment to the Fund Value.
Sales Charge -- This charge is equal to a percent of premiums paid
as follows:
Policy years 1-10: 4%
Policy years 11-20: 2%
Policy years after 20: 0%
You should refer to your policy to determine your Specified Amount and the
amount of any Term Life Term Insurance in force.
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.
Tax Charge -- State and local premium tax -- currently 0.8%
Federal tax for deferred acquisition costs of the
Company -- currently 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.
Currently, these taxes range from 0% to 4%. The 0.8% 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.
DAILY DEDUCTION FROM MONY VARIABLE ACCOUNT L --
A charge is deducted daily from each subaccount of MONY Variable Account L
for the mortality and expense risks assumed by the Company.
Mortality and Expense Risk
Charge -- Maximum of .002055% of the amount in the
subaccount, which is equivalent to an annual rate
of .75% of subaccount value.
The Mortality and Expense Risk Charge will
effectively be reduced after the tenth policy
anniversary. Each month after said date, an
expected amount equal to .04167% of the subaccount
value will be credited to the Fund Value allocated
to the subaccounts. This is equivalent to 0.5% on
an annualized basis. This amount is not guaranteed.
The allocation among subaccounts will be done
proportionately on each monthly anniversary
following the tenth policy anniversary.
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
40
<PAGE> 50
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 Fund Value
that is allocated to the Guaranteed Interest Account, nor to amounts in the Loan
Account.
DEDUCTIONS FROM FUND VALUE --
A charge called the Monthly Deduction is deducted from the Fund Value on
each monthly anniversary day. The Monthly Deduction consists of the following
items:
Cost of Insurance -- This charge compensates us for the anticipated cost
of paying death benefits in excess of Fund 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 Fund
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, but
unisex rates are used where appropriate under applicable law. Unisex laws
include the State of Montana and in 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.
If there have been increases in the Specified Amount, then for purposes of
calculating the cost of insurance charge, the Fund Value will first be applied
to the initial Specified Amount. If the Fund Value exceeds the initial Specified
Amount, the excess will then be applied to any increase in Specified Amount in
the order of the increases. If the death benefit equals the Fund Value
multiplied by the applicable death benefit percentage, any increase in Fund
Value will cause an automatic increase in the death benefit. The underwriting
class and duration for such increase will be the same as that used for the most
recent increase in Specified Amount (that has not been eliminated through a
later decrease in Specified Amount.
Administrative Charge
An administrative charge is deducted monthly from the Fund Value. The
amount of this charge varies by issue age of the insured, policy duration and
with the size of a policy's Specified Amount.
<TABLE>
<CAPTION>
FIRST 12 EACH POLICY
POLICY MONTHS MONTH THEREAFTER
------------- ----------------
<S> <C> <C>
Specified Amount:
Less than $250,000........................................ $ 31.50* $6.50
$250,000 to $499,000...................................... 28.50* 3.50
$500,000 or more.......................................... 25.00* None
</TABLE>
------------------------
* Reduced by $5.00 for issue ages 0 through 17.
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<PAGE> 51
For purposes of this charge, if an increase or decrease in Specified Amount
causes your policy to change bands, the monthly administrative charges on the
monthly anniversary day of the change will be adjusted to reflect the new
Specified Amount. The administrative charge is assessed to reimburse the Company
for the expenses associated with administration and maintenance of the policies.
The administrative charge is guaranteed never to exceed these amounts. The
Company does not expect to profit from this charge.
Optional Insurance Benefits
Charge -- A monthly deduction for any other optional
insurance benefits added to the policy by rider.
FUND CHARGE
There will be a difference between the Fund Value of the policy and its
Cash Value for at least the first fourteen policy years. This difference is the
Fund Charge, a contingent deferred load. It is a contingent load because it is
assessed only if the policy is surrendered, if the policy lapses, or if the
Specified Amount of the policy is decreased. It is a deferred load because it is
not deducted from the premiums paid. The Fund Charge consists of two charges: an
Administrative Fund Charge and a Sales Fund Charge. The Company will assess the
Fund Charge against the Fund Value upon surrender, lapse or reduction in
Specified Amount within fourteen years after its issuance, or within fourteen
years following an increase in Specified Amount.
Administrative Fund Charge
The Administrative Fund Charge is equal to an amount per thousand dollars
of Specified Amount as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE
FUND CHARGE
ISSUE AGE --------------
---------
<S> <C>
0-25........................................................ $2.50
26.......................................................... 3.00
27.......................................................... 3.50
28.......................................................... 4.00
29.......................................................... 4.50
30 or higher................................................ 5.00
</TABLE>
The amount of the charge remains level for five policy years. After the fifth
policy Anniversary, the charge decreases by 10% per year until it reaches zero
at the end of the 14th policy year. An additional Administrative Fund Charge is
created each time a new coverage segment of Specified Amount is added. The
Administrative Fund Charge related to the increased Specified Amount decreases
over the 14 years following the date of the increase on a scale identical to
that of the original Administrative Fund Charge.
For example, if a policy issued at Age 40 with an initial Specified Amount
of $100,000 is surrendered in the third policy year, the Administrative Fund
Charge would be $500 ($100 times $5.00). If that policy is increased in the
fourth policy year to $150,000 and is subsequently surrendered in the seventh
policy year, the total Administrative Fund Charge would be $650 ($100 times
$5.00 times 80%, plus $50 times $5.00.)
The Administrative Fund Charge is designed to cover the administrative
expenses associated with underwriting and issuing a policy, including the costs
of processing applications, conducting medical examinations, determining
insurability and your underwriting class, and establishing policy records. The
Company does not expect to profit from the Administrative Fund Charge.
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<PAGE> 52
Sales Fund Charge
To determine the Sales Fund Charge, a "target premium" is used. The target
premium is not based on the minimum annual premiums or the scheduled premium
payments. The maximum Sales Fund Charge for the initial Specified Amount of the
policy will be equal to the following percentage of premiums paid up to one
target premium. The maximum Sales Fund Charge will not vary based on the amount
of premiums paid or the timing of the premium payments. The actual Sales Fund
Charge for your policy is a percentage of the premiums paid on your policy
during the first five policy years, up to the maximum. This percentage varies by
the Age of the Insured on the policy date as follows:
<TABLE>
<CAPTION>
PERCENTAGE OF
PREMIUMS PAID
AGE -------------
---
<S> <C>
0-17........................................................ 50%
18-65....................................................... 75
66.......................................................... 70
67.......................................................... 65
68.......................................................... 60
69.......................................................... 55
70 or higher................................................ 50
</TABLE>
Therefore, the Sales Fund Charge can increase as premiums are paid during the
five year period. Starting on the fifth Policy anniversary, the charge decreases
from its maximum by 10% per year until it reaches zero at the end of the 14th
year.
During the first two Policy years, the Sales Fund Charge will be further
limited.
As an example of the Sales Fund Charge calculation, if a Male Insured Age
25 purchases a Policy with a Specified Amount of $100,000, the, Target Premium,
based upon the assumptions described above, would be $580.00 (Preferred,
nonsmoker, Death Benefit Option I). The maximum Sales Fund charge during the
first five Policy Years would be 75% of this amount, or $435.00.
The purpose of the Sales Fund Charge is to reimburse the Company for some
of the expenses of distributing the Policies.
Effect of Changes in Specified Amount on the Fund Charge
The Fund Charge will increase when a new coverage segment of Specified
Amount is created due to a requested increase in coverage. The fund charge
related to the increase will be calculated in the same manner as the fund charge
for the original Specified Amount, and will be reduced over the 15 year period
following the increase. For purposes of calculating the sales fund charge,
premiums paid after the increase will be allocated to Specified Amount segments
in the same proportion that the guideline annual premium as defined by the
federal securities laws for each segment bear to the sum of the guideline annual
premiums for all coverage segments. The new fund charge for the policy will
equal the remaining portion of the fund charge for the original Specified
Amount, plus the fund charge related to the increase.
A portion of the fund charge will be deducted from the Fund Value whenever
the Specified Amount of the policy is reduced. This may result from (1) a
requested decrease, (2) a change of death benefit option from Option II to
Option I, or (3) a partial surrender. The fund charge, as well as the
transaction charge assessed for the Partial Surrender, if applicable, will be
deducted from the subaccounts and the Guaranteed Interest Account on the same
basis that the partial surrender is allocated. For purposes of this calculation,
if any subaccount or the Guaranteed Interest Account is insufficient to provide
for its share of the deduction, the entire deduction will be pro-rated among the
subaccounts from which the partial surrender is deducted in relation to their
Fund Values. The remaining Fund Charge which applies to the policy will be
reduced proportionately for the amount of the fund charge which was assessed
against the Fund Value.
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<PAGE> 53
Effect of Changes in Specified Amount on the Fund Charge --
The fund charge will increase when a new coverage segment of Specified
Amount is created due to a requested increase in coverage. The fund charge
related to the increase will be computed in the same manner as the fund charge
for the original Specified Amount. It will reduce over the 15-year period
following the increase. The new fund charge for the policy will equal:
(1) The remaining part of the fund charge for the original Specified
Amount, plus
(2) The fund charge related to the increase.
A portion of the Fund Charge will be deducted from the Fund Value whenever
the Specified Amount of the policy is reduced. This may result from:
- a requested decrease,
- a change of death benefit option from Option I to Option II, or
- a partial surrender.
The Fund Charge, as well as any applicable transaction charge assessed for
the partial surrender, will be deducted from the subaccounts and the Guaranteed
Interest Account. The deduction will be made on the same basis that the partial
surrender is allocated. If any subaccount or the Guaranteed Interest Account is
insufficient to provide for its share of the deduction, the entire deduction
will be pro-rated among the subaccounts from which the partial surrender is
deducted in relation to their Fund Values. The remaining Fund Charge which
applies to the policy will be reduced proportionately for the amount of the Fund
Charge which was assessed against the Fund Value.
TRANSACTION AND OTHER CHARGES
- Partial Surrender Fee -- The lesser of 2% of the partial surrender amount
or $25.
- Transfer of Fund Value -- Maximum of $25 on transfers exceeding 4,
currently $0.
The partial surrender fee is guaranteed not to exceed the amounts above.
Currently, we do not charge for transfers of Fund Value between the subaccounts.
However, we reserve the right to assess a $25 charge on transfers which exceed 4
in any policy year.
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 49.
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.
FEES AND EXPENSES OF THE FUNDS
The Fund and each of its portfolios incur certain charges including the
investment advisory fee and certain operating expenses. These fees and expenses
vary by portfolio and are set forth below. Their Boards govern the Funds. The
advisory fees are summarized at pages 4-5. Fees and expenses of the Funds are
described in more detail in the Funds' prospectuses.
GUARANTEE OF CERTAIN CHARGES
We guarantee that the following charges will not increase:
(1) Mortality and expense risk charge.
(2) Administrative charge.
(3) Sales charge.
44
<PAGE> 54
(4) Guaranteed cost of insurance rates.
(5) Fund charge.
(6) Partial surrender fee.
Any changes in the current cost of insurance charges or charges for
optional insurance benefits 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.
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 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"
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
Fund 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.
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
45
<PAGE> 55
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.
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 plus Outstanding Debt 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 until the
policy matures, unless the policy is surrendered before it matures. 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 who uses the proceeds of a loan for business or investment
purposes, may be able to deduct all or part of the interest expense. 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.
46
<PAGE> 56
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 Fund
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 "Federal Income Tax
Considerations -- Conventional Life Insurance Policies," page 46.)
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<PAGE> 57
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 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 Fund 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 Fund 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.
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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<PAGE> 58
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 subaccounts available under 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.
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 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 right.
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<PAGE> 59
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 Fund 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
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, Fund Value, Cash
Value, and any Outstanding Debt.
In addition, the statement will indicate the allocation of Fund Value among the
Guaranteed Interest Account, the Loan Account and the subaccounts, and any other
information required by law. Confirmations will be sent out upon premium
payments, transfers, loans, loan repayments, withdrawals, and surrenders.
Each policy owner will also receive an annual and a semiannual report
containing financial statements for 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
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<PAGE> 60
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 Superintendent of Insurance of the State of New York.
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.
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
We may advertise the performance of the MONY Variable Account L
subaccounts. We will also report performance to policy owners and may make
performance information available to prospective purchasers. This information
will be presented in compliance with applicable law.
Performance information may show the change in a policy owner's Fund Value
in one or more subaccounts, or as a change in a policy owner's death benefit.
Performance information may be expressed as a change in a policy owner's Fund
Value over time or in terms of the average annual compounded rate of return on
the policy owner's Fund Value. Such performance is based upon a hypothetical
policy in which premiums have been allocated to a particular subaccount of MONY
Variable Account L over
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<PAGE> 61
certain periods of time that will include one, five and ten years, or from the
commencement of operation of the subaccount of MONY Variable Account L 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 Fund Value is
allocated to MONY Variable Account L during a particular time period on which
the calculations are based. Performance information should be considered in
light of the investment objectives and policies, characteristics and quality of
the portfolios of the Funds in which MONY Variable Account L invests. The market
conditions during the given period of time should not be considered as a
representation of what may be achieved in the future.
THE GUARANTEED INTEREST ACCOUNT
You may allocate all or a portion of your net premiums and transfer Fund
Value to the Guaranteed Interest Account of the Company. Amounts allocated to
the Guaranteed Interest Account become part of the "General Account" of the
Company, which supports insurance and annuity obligations. 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 Fund 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 Fund Value in the Guaranteed Interest Account will be
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<PAGE> 62
credited with a minimum interest rate of 0.0133689% daily, compounded daily, for
a minimum effective annual rate of 5%. Such interest will be paid regardless of
the actual investment experience of the Guaranteed Interest Account. In
addition, Company may in its sole discretion declare current interest in excess
of the 5% annual rate. (The portion of a Policy Owner's Fund Value that has been
used to secure Outstanding Debt will be credited with a guaranteed interest rate
of 0.013368% daily, compounded daily, for a minimum effective annual rate of
5%.) After the tenth policy anniversary, an increase in the annual interest
rates that apply to the Fund Value in the Guaranteed Interest Account and Loan
Account is expected. The rate is expected to be .5% higher. Neither increase is
guaranteed.
The Company bears the full investment risk for the Fund Value allocated to
the Guaranteed Interest Account.
LIMITATIONS ON AMOUNTS IN THE GUARANTEED INTEREST ACCOUNT
No net premium or transfer to the Guaranteed Interest Account will be
accepted which would cause the Guaranteed Interest Account to exceed $250,000 on
the date of payment or transfer. The Company reserves the right to increase or
decrease this limit in the future. For payments which exceed the limit, the
Company will accept the portion of the payment up to $250,000 and will return
the excess payment to the policy owner. For transfers which exceed the limit,
the Company will accept the portion of the transfer up to the $250,000. The
amount of the requested transfer which would otherwise cause the Guaranteed
Interest Account to exceed $250,000 will be retained in the subaccounts in the
same proportion that the amount actually transferred bears to the total
requested transfer amount. These limits are waived in the event the policy owner
elects the Right to Exchange Policy. See "Right to Exchange Policy", page 33.
DEATH BENEFIT
The death benefit under the policy will be determined in the same fashion
if you have Fund Value in the Guaranteed Interest Account or Fund Value in the
subaccounts. The death benefit under Option I will be equal to the Specified
Amount of the Policy plus the increase in Fund Value since the last monthly
anniversary or, if greater, Fund Value on the date of death plus Fund Value on
the last monthly anniversary multiplied by a death benefit percentage. Under
Option II, the death benefit will be equal to the Specified Amount of the Policy
plus the Fund Value or, if greater, Fund Value on the date of death plus Fund
Value on the last monthly anniversary multiplied by a death benefit percentage.
See "Death Benefits under the Policy," page 24.
POLICY CHARGES
Deductions from premium, monthly deductions from the Fund Value, and Fund
charges will be the same if you allocate net premiums or transfer Fund Value 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, the charge for any optional insurance benefits
added by Rider, and administrative Fund Charge and sales Fund Charge. 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 Fund Value is
allocated to the Guaranteed Interest Account. Likewise, the mortality and
expense risk charge applicable to the Fund Value allocated to the subaccounts is
not deducted from Fund Value allocated to the Guaranteed Interest Account. Any
amounts that the Company pays for income taxes allocable to the subaccounts will
not be charged against the Guaranteed Interest Account. However, it is important
to remember that you will not participate in the investment experience of the
subaccounts to the extent that Fund Values are allocated to the Guaranteed
Interest Account.
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<PAGE> 63
TRANSFERS
Amounts may be transferred after the Free Look Period from the subaccounts
to the Guaranteed Interest Account and from the Guaranteed Interest Account to
the subaccounts, subject to the following limitations.
- Transfers to the Guaranteed Interest Account may be made at any time and
in any amount subject to the $250,000 limit on total amounts allocated to
the Guaranteed Interest Account. These limits are waived if the
policyowner elects the Right to Exchange the Policy. See "Right to
Exchange the Policy", page 33.
- Transfers from the Guaranteed Interest Account to the subaccounts are
limited to:
- one in any policy year,
- the greater of $5,000 and 25% of the Fund Value allocated to the
Guaranteed Interest Account on the date of transfer, and
- the 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 valuation date when it is received. 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 imposed upon transfers; however, the Company
reserves the right to assess such a charge in the future and to impose other
limitations on the number of transfers, the amount of transfers, and the amount
remaining in the Guaranteed Interest Account or Subaccounts after a transfer.
SURRENDERS AND POLICY LOANS
You may also make full surrenders, partial surrenders, and preferred
partial surrenders from the Guaranteed Interest Account to the same extent as if
you had allocated premiums and cash values to the subaccounts. See "Full
Surrender," page 34 and "Partial Surrender", page 34. 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.
MORE ABOUT THE POLICY
OWNERSHIP
The policy owner is the individual named as such in the application or in
any later change shown in the Company's records. While the insured is living,
the policy owner alone has the right to receive all benefits and exercise all
rights that the policy grants or the Company allows.
Joint Owners
If more than one person is named as policy owner, they are joint owners.
Any policy transaction requires the signature of all persons named jointly.
Unless otherwise provided, if a joint owner dies, ownership passes to the
surviving joint owner(s). When the last joint owner dies, ownership passes
through that person's estate, unless otherwise provided.
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<PAGE> 64
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.
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, the Company can postpone the calculation or payment of such a
payment or transfer of amounts based on investment performance of the
subaccounts if:
- The New York Stock Exchange is closed on other than customary weekend and
holiday closing or trading on the New York Stock Exchange is restricted
as determined by the SEC; or
- An emergency exists, as determined by the SEC, as a result of which
disposal of securities is not reasonably practicable or it is not
reasonably practicable to determine the value of the Account's net
assets.
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<PAGE> 65
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 or if the proceeds are less than $1,000. 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 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 45.)
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 Fund Value by the
death benefit percentage for the correct age and gender.
If unisex cost of insurance rates apply, no adjustment will be made for a
misstatement of gender. See "Deductions From Fund Value -- Cost of Insurance,"
page 41.
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
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(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 50 percent of premiums paid up to a
maximum amount. Thereafter, commissions will equal at most 3.0 percent of any
additional premiums plus, on the sixth and each succeeding quarterly anniversary
for so long as the policy shall remain in effect, an annualized rate of 0.10
percent of the Fund Value of the policy. Upon any subsequent increase in
Specified Amount, commissions will equal at most 50 percent of premiums paid on
or after the increase up to a maximum amount. Thereafter, commissions will
return to no more than the 3.0 percent level. Further, registered
representatives may be eligible to receive certain bonuses and other benefits
based on the amount of earned commissions.
Commissions may be required to be repaid to the Company if Sales Charges
are refunded upon exercise of the exchange privileges during the first 24 months
after the Policy Date or within 24 months following an increase in Specified
Amount.
In addition, registered representatives who meet specified production
levels may qualify, under sales incentive programs adopted by Company, to
receive non-cash compensation such as expense-paid trips, expense-paid
educational seminars and merchandise. Company makes no separate deductions,
other than previously described, from premiums to pay sales commissions or sales
expenses.
MORE ABOUT THE COMPANY
MANAGEMENT
The 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.
David L. Call............................. Director since 1993. Ronald P. Lynch Dean Emeritus,
Cornell University, College of Agriculture and Life
Sciences since 1995 and Dean of said College prior to
that time.
G. Robert Durham.......................... Director since 1990. 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.
</TABLE>
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<PAGE> 67
<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.
Robert Holland, Jr. ...................... Director since 1990. President and Chief Executive
Officer of WorkPlace Integrators, an office furniture
manufacturing company, since 1996. Chief Executive
Officer of Ben & Jerry's Homemade, Inc., an ice cream
company from 1995 to 1996. Chairman of the Board of
Gilreath Manufacturing Company, a plastic injection
molding manufacturing company from 1990 to 1991.
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.
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.
John R. Meyer............................. Director since 1972. Professor Emeritus, Harvard
University since 1997. Professor at Harvard University
from 1973 to 1997.
Jane C. Pfeiffer.......................... Director since 1988. Ms. Pfeiffer is an independent
management consultant.
Thomas C. Theobald........................ Director since 1990. Managing director, William Blair
Capital Partners, L.L.C., an investment firm since 1994.
Chairman of the Board of Continental Bank from 1987 to
1994.
</TABLE>
All of the officers have held their respective positions listed below for five
or more years.
Current Officer-Directors of the Company are:
<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
---- -----------------------------------
<S> <C>
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>
Other Officers of the Company are:
<TABLE>
<CAPTION>
NAME OFFICE WITH DEPOSITOR
---- ---------------------
<S> <C>
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
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
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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. Director of MONY subsidiary:
MONY Benefits Management Corp. (since March 1999).
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. 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.
59
<PAGE> 69
TELEPHONE TRANSFER PRIVILEGES
You may request a transfer of Fund Value or change allocation instructions
for future premiums by telephone if an authorization for telephone transfer form
has been completed, signed, and received at the Company's Syracuse Operations
Center. The Company may record all or part of any telephone conversation with
respect to transfer and allocation instructions. Telephone instructions received
by the Company by 4:00 p.m. Eastern time on any valuation date will be effected
as of the end of that valuation date in accordance with your instructions,
subject to the limitations stated in this prospectus (presuming that the Right
to Return Policy Period has expired). The Company reserves the right to deny any
telephone transfer or allocation request. If all telephone lines are busy (which
might occur, for example, during periods of substantial market fluctuations),
you might not be able to request transfers by telephone and would have to submit
written requests. Telephone transfer and allocation instructions will only be
accepted if complete and correct.
The Company has adopted guidelines (which it believes to be reasonable)
relating to telephone transfers and allocation instructions. These guidelines,
among other things, outline procedures to be followed which are designed to
prevent unauthorized instructions. If these procedures are followed, the Company
shall not be liable for, and you will therefore bear the entire risk of, any
loss as a result of the Company's following telephone instructions if such
instructions prove to be fraudulent. A copy of the guidelines and the Company's
form for electing telephone transfer privileges is available from licensed
agents of the Company who are also registered representatives of MSC or by
calling 1-800-487-6669. The Company's form must be signed and received at the
Company's Syracuse Operations Center before telephone transfers will be
accepted.
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 then Vice President and Deputy
General Counsel of The Mutual Life Insurance Company of New York (now 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.
Edward P. Bank then Vice President and Deputy General Counsel of The Mutual
Life Insurance Company of New York (now MONY Life Insurance Company) has passed
upon legal matters relating to the federal income tax laws.
REGISTRATION STATEMENT
A Registration Statement under the Securities Act of 1933 has been filed
with the SEC relating to the offering described in this Prospectus. This
Prospectus does not include all of the information set forth in the Registration
Statement, as portions have been omitted pursuant to the rules and regulations
of the SEC. The omitted information may be obtained at the SEC's principal
office in Washington, D.C., upon payment of the SEC's prescribed fees.
INDEPENDENT ACCOUNTANTS
The audited financial statements for the MONY Variable Account L for the
years ended December 31, 1997, 1998 and 1999 and for the Company included in
this Prospectus and in the Registration Statement have been audited by
PricewaterhouseCoopers LLP, independent accountants, as
60
<PAGE> 70
indicated in their reports herein. The audited financial statements are included
in reliance upon 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 for MONY Variable Account L for the years
ended December 31, 1997, 1998 and 1999 are set forth herein, starting on page
F-3. The audited financial statements of the Company are set forth herein,
starting on page F-35.
The financial statements of MONY Variable Account L and of the Company for
the years ended December 31, 1997, 1998 and 1999 have been audited by
PricewaterhouseCoopers LLP. The financial statements of the Company should be
distinguished from the financial statements of MONY Variable Account L and
should be considered only as bearing upon the ability of the Company to meet its
obligations under the Policies.
61
<PAGE> 71
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 72
FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
With respect to MONY Variable Account L:
Statement of assets and liabilities as of September 30,
2000 (unaudited)....................................... F-2
Statement of operations for the nine months ended
September 30, 2000 (unaudited)......................... F-6
Statement of changes in net assets for the periods ended
September 30, 2000 and December 31, 1999 (unaudited)... F-10
Notes to financial statements (unaudited)................. F-14
Report of Independent Accountants......................... F-17
Statements of assets and liabilities as of December 31,
1999................................................... F-18
Statements of operations for the year ended December 31,
1999................................................... F-20
Statements of changes in net assets for the years ended
December 31, 1999 and 1998............................. F-22
Notes to financial statements............................. F-25
Report of Independent Accountants......................... F-27
Statements of assets and liabilities as of December 31,
1998................................................... F-28
Statements of operations for the year ended December 31,
1998................................................... F-30
Statements of changes in net assets for the years ended
December 31, 1998 and 1997............................. F-32
Notes to financial statements............................. F-35
Report of Independent Accountants......................... F-38
Statements of assets and liabilities as of December 31,
1997................................................... F-39
Statements of operations for the year ended December 31,
1997................................................... F-41
Statements of changes in net assets for the years ended
December 31, 1997 and 1996............................. F-43
Notes to financial statements............................. F-46
With respect to MONY Life Insurance Company:
Unaudited interim condensed consolidated balance sheets as
of September 30, 2000 and December 31, 1999............ F-49
Unaudited interim condensed consolidated statements of
income and comprehensive income for the three-month
periods ended September 30, 2000 and 1999.............. F-50
Unaudited interim condensed consolidated statements of
income and comprehensive income for the nine-month
periods ended September 30, 2000 and 1999.............. F-51
Unaudited interim condensed consolidated statement of
changes in shareholders' equity for the nine-month
period ended September 30, 2000........................ F-52
Unaudited interim condensed consolidated statements of
cash flows for the nine-month period ended September
30, 2000 and 1999...................................... F-53
Notes to unaudited interim condensed consolidated
financial statements................................... F-54
Report of Independent Accountants......................... F-69
Consolidated balance sheets as of December 31, 1999 and
1998................................................... F-70
Consolidated statements of income and comprehensive income
for the years ended December 31, 1999, 1998 and 1997... F-71
Consolidated statements of changes in shareholder's equity
for the years ended December 31, 1999, 1998 and 1997... F-72
Consolidated statements of cash flows for the years ended
December 31, 1999, 1998 and 1997....................... F-73
Notes to consolidated financial statements................ F-75
</TABLE>
F-1
<PAGE> 73
MONY
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
STRATEGIST
------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds..... 2,828 2,134 688 1,171 6,074 22,153
======== ======= ======= ======== ======== =======
Investments at cost................. $106,178 $48,242 $ 7,284 $ 13,863 $104,022 $22,153
======== ======= ======= ======== ======== =======
Investments in respective Funds at
net asset value................... $106,264 $42,334 $ 7,315 $ 14,622 $115,536 $22,153
Amount due from MONY................ 273 161 0 0 0 27
Amount due from respective Funds.... 184 109 0 0 0 18
-------- ------- ------- -------- -------- -------
Total assets........................ 106,721 42,604 7,315 14,622 115,536 22,198
======== ======= ======= ======== ======== =======
LIABILITIES
Amount due to MONY.................. 380 184 13 25 205 57
Amount due to respective Funds...... 273 161 0 0 0 27
-------- ------- ------- -------- -------- -------
Total liabilities................... 653 345 13 25 205 84
-------- ------- ------- -------- -------- -------
Net assets.......................... $106,068 $42,259 $ 7,302 $ 14,597 $115,331 $22,114
======== ======= ======= ======== ======== =======
Net assets consist of:
Contractholders' net payments..... $ (3,492) $ 2,928 $(4,099) $(20,771) $ 20,309 $(6,382)
Undistributed net investment
income......................... 60,482 35,740 10,181 29,139 72,995 28,496
Accumulated net realized gain
(loss)on investments........... 48,992 9,499 1,189 5,470 10,513 0
Net unrealized appreciation
(depreciation) of
investments.................... 86 (5,908) 31 759 11,514 0
-------- ------- ------- -------- -------- -------
Net assets.......................... $106,068 $42,259 $ 7,302 $ 14,597 $115,331 $22,114
======== ======= ======= ======== ======== =======
Number of units outstanding*........ 1,461 779 309 514 2,152 1,129
======== ======= ======= ======== ======== =======
Net asset value per unit
outstanding*...................... $ 72.60 $ 54.25 $ 23.63 $ 28.40 $ 53.59 $ 19.59
======== ======= ======= ======== ======== =======
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-2
<PAGE> 74
MONY
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- ----------
<S> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds................... 14,297 7,591 17,355 351,637
======== ======= ======== ========
Investments at cost............................... $153,658 $80,556 $212,326 $351,637
======== ======= ======== ========
Investments in respective Funds at net asset
value........................................... $155,695 $80,693 $216,762 $351,637
Amount due from MONY.............................. 0 0 0 0
Amount due from respective Funds.................. 26 7 29 405
-------- ------- -------- --------
Total assets...................................... 155,721 80,700 216,791 352,042
-------- ------- -------- --------
LIABILITIES
Amount due to MONY................................ 338 174 466 1,146
Amount due to respective Funds.................... 0 0 0 0
-------- ------- -------- --------
Total liabilities................................. 338 174 466 1,146
-------- ------- -------- --------
Net assets........................................ $155,383 $80,526 $216,325 $350,896
======== ======= ======== ========
Net assets consist of:
Contractholders' net payments................... $146,515 $76,536 $204,564 $305,307
Undistributed net investment income (loss)...... 9,288 4,836 21,870 45,589
Accumulated net realized gain (loss) on
investments.................................. (2,457) (983) (14,545) 0
Net unrealized appreciation (depreciation) of
investments.................................. 2,037 137 4,436 0
-------- ------- -------- --------
Net assets........................................ $155,383 $80,526 $216,325 $350,896
======== ======= ======== ========
Number of units outstanding*...................... 13,155 6,826 17,847 29,514
======== ======= ======== ========
Net asset value per unit outstanding*............. $ 11.81 $ 11.80 $ 12.12 $ 11.89
======== ======= ======== ========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-3
<PAGE> 75
MONY
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
---------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds.............. 246,646 137,853 355,225 192,895 105,273
========== ========== =========== ========== ========
Investments at cost.......................... $9,143,709 $4,081,356 $11,536,021 $1,524,485 $532,110
========== ========== =========== ========== ========
Investments in respective Funds at net asset
value...................................... $8,435,297 $3,606,242 $ 8,429,482 $1,371,483 $503,205
Amount due from MONY......................... 1,623 510 2,057 103 50
Amount due from respective Funds............. 1,250 922 1,049 148 215
---------- ---------- ----------- ---------- --------
Total assets................................. 8,438,170 3,607,674 8,432,588 1,371,734 503,470
---------- ---------- ----------- ---------- --------
LIABILITIES
Amount due to MONY........................... 19,400 8,646 18,998 3,172 1,293
Amount due to respective Funds............... 1,623 510 2,057 103 50
---------- ---------- ----------- ---------- --------
Total liabilities............................ 21,023 9,156 21,055 3,275 1,343
---------- ---------- ----------- ---------- --------
Net assets................................... $8,417,147 $3,598,518 $ 8,411,533 $1,368,459 $502,127
========== ========== =========== ========== ========
Net assets consist of:
Contractholders' net payments.............. $6,447,829 $3,072,411 $ 7,577,587 $1,237,804 $476,270
Undistributed net investment income
(loss)................................... 2,523,879 883,454 4,540,922 172,654 83,113
Accumulated net realized gain (loss) on
investments.............................. 153,851 117,767 (600,437) 111,003 (28,351)
Net unrealized appreciation (depreciation)
of investments........................... (708,412) (475,114) (3,106,539) (153,002) (28,905)
---------- ---------- ----------- ---------- --------
Net assets................................... $8,417,147 $3,598,518 $ 8,411,533 $1,368,459 $502,127
========== ========== =========== ========== ========
Number of units outstanding*................. 461,277 177,066 556,441 96,125 41,209
========== ========== =========== ========== ========
Net asset value per unit outstanding*........ $ 18.25 $ 20.32 $ 15.12 $ 14.24 $ 12.18
========== ========== =========== ========== ========
<CAPTION>
MONY EQUITY MASTER
--------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------
GROWTH AND CAPITAL
GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------
<S> <C> <C> <C>
ASSETS
Shares held in respective Funds.............. 33,043 89,404 9,249
======== ======== =======
Investments at cost.......................... $202,886 $569,004 $73,078
======== ======== =======
Investments in respective Funds at net asset
value...................................... $190,325 $566,819 $72,975
Amount due from MONY......................... 0 0 0
Amount due from respective Funds............. 0 0 0
-------- -------- -------
Total assets................................. 190,325 566,819 72,975
-------- -------- -------
LIABILITIES
Amount due to MONY........................... 1,470 148 132
Amount due to respective Funds............... 0 0 0
-------- -------- -------
Total liabilities............................ 1,470 148 132
-------- -------- -------
Net assets................................... $188,855 $566,671 $72,843
======== ======== =======
Net assets consist of:
Contractholders' net payments.............. $239,920 $568,803 $69,420
Undistributed net investment income
(loss)................................... 4,932 (31) 3,428
Accumulated net realized gain (loss) on
investments.............................. (43,436) 84 98
Net unrealized appreciation (depreciation)
of investments........................... (12,561) (2,185) (103)
-------- -------- -------
Net assets................................... $188,855 $566,671 $72,843
======== ======== =======
Number of units outstanding*................. 20,095 56,057 7,062
======== ======== =======
Net asset value per unit outstanding*........ $ 9.40 $ 10.11 $ 10.31
======== ======== =======
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-4
<PAGE> 76
MONY
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
----------------------------------------------------------------
FIDELITY VARIABLE
INSURANCE
PRODUCTS FUNDS JANUS ASPEN SERIES FUND
DREYFUS ----------------------- -------------------------
STOCK VIP VIP II CAPITAL WORLDWIDE
INDEX GROWTH CONTRAFUND APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds............................. 2,150 3,022 2,735 6,890 4,105
======= ======== ======= ======== ========
Investments at cost......................................... $82,060 $154,051 $68,697 $221,670 $191,563
======= ======== ======= ======== ========
Investments in respective Funds at net asset value.......... $80,732 $149,945 $69,309 $224,700 $174,293
Amount due from MONY........................................ 0 0 0 0 0
Amount due from respective Funds............................ 0 0 0 0 0
------- -------- ------- -------- --------
Total assets................................................ 80,732 149,945 69,309 224,700 174,293
------- -------- ------- -------- --------
LIABILITIES
Amount due to MONY.......................................... 130 231 113 371 261
Amount due to respective Funds.............................. 0 0 0 0 0
------- -------- ------- -------- --------
Total liabilities........................................... 130 231 113 371 261
------- -------- ------- -------- --------
Net assets.................................................. $80,602 $149,714 $69,196 $224,329 $174,032
======= ======== ======= ======== ========
Net assets consist of:
Contractholders' net payments............................. $81,695 $153,641 $68,682 $220,122 $183,441
Undistributed net investment income (loss)................ 157 (245) (125) 723 8,210
Accumulated net realized gain (loss) on investments....... 78 424 27 454 (349)
Net unrealized appreciation (depreciation) of
investments............................................. (1,328) (4,106) 612 3,030 (17,270)
------- -------- ------- -------- --------
Net assets.................................................. $80,602 $149,714 $69,196 $224,329 $174,032
======= ======== ======= ======== ========
Number of units outstanding*................................ 8,107 14,244 6,835 22,220 18,840
======= ======== ======= ======== ========
Net asset value per unit outstanding*....................... $ 9.94 $ 10.51 $ 10.12 $ 10.10 $ 9.24
======= ======== ======= ======== ========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements.
F-5
<PAGE> 77
MONY
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
STATEGIST
------------------------------------------------------------------------------
MONY SERIES FUND INC.
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income..................... $ 26,353 $ 7,892 $ 436 $ 978 $ 19,596 $ 996
Distribution from capital
gains............................. 0 0 0 0 0 0
Mortality and expense risk
charges........................... (526) (204) (33) (64) (528) (102)
-------- ------- ----- ------ -------- -----
Net investment income............... 25,827 7,688 403 914 19,068 894
-------- ------- ----- ------ -------- -----
Realized and unrealized gain (loss)
on investments:
Net realized gain (loss) on
investments.................... 6,648 (3,950) 6 12 949 0
Net change in unrealized
appreciation (depreciation) of
investments.................... (35,096) (3,458) (118) 217 (21,499) 0
-------- ------- ----- ------ -------- -----
Net realized and unrealized gain
(loss) on investments............. (28,448) (7,408) (112) 229 (20,550) 0
-------- ------- ----- ------ -------- -----
Net increase (decrease) in net
assets resulting from
operations........................ $ (2,621) $ 280 $ 291 $1,143 $ (1,482) $ 894
======== ======= ===== ====== ======== =====
</TABLE>
See notes to financial statements.
F-6
<PAGE> 78
MONY
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
-------------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- ------------- -------------
FOR THE NINE FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 2000 2000 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Dividend income................................. $7,819 $ 4,040 $ 12,520 $15,181
Distribution from capital gains................. 0 0 0 0
Mortality and expense risk charges.............. (783) (394) (1,056) (1,941)
------ ------- -------- -------
Net investment income (loss).................... 7,036 3,646 11,464 13,240
------ ------- -------- -------
Realized and unrealized gain (loss) on
investments:
Net realized loss on investments.............. (2,858) (1,302) (13,261) 0
Net change in unrealized appreciation of
investments................................ 3,063 607 16,665 0
------ ------- -------- -------
Net realized and unrealized gain (loss) on
investments................................... 205 (695) 3,404 0
------ ------- -------- -------
Net increase in net assets resulting from
operations.................................... $7,241 $ 2,951 $ 14,868 $13,240
====== ======= ======== =======
</TABLE>
See notes to financial statements.
F-7
<PAGE> 79
MONY
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
-----------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- ------------- ------------- -------------
FOR THE NINE FOR THE NINE FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 2000 2000 2000 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Dividend income......................... $ 54,708 $ 5,241 $ 174,064 $ 2,697 $ 34,167
Distribution from capital gains......... 1,971,010 672,688 2,698,246 131,219 0
Mortality and expense risk charges...... (42,916) (18,331) (47,118) (7,702) (2,687)
----------- --------- ----------- --------- --------
Net investment income (loss)............ 1,982,802 659,598 2,825,192 126,214 31,480
----------- --------- ----------- --------- --------
Realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on
investments......................... 112,888 100,438 (584,889) 48,058 (20,141)
Net change in unrealized depreciation
of investments...................... (1,076,948) (695,548) (2,340,101) (408,025) (6,509)
----------- --------- ----------- --------- --------
Net realized and unrealized loss on
investments........................... (964,060) (595,110) (2,924,990) (359,967) (26,650)
----------- --------- ----------- --------- --------
Net increase (decrease) in net assets
resulting from operations............. $ 1,018,742 $ 64,488 $ (99,798) $(233,753) $ 4,830
=========== ========= =========== ========= ========
<CAPTION>
MONY EQUITY MASTER
------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------
GROWTH AND CAPITAL
GROWTH INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MAY 2, 2000** MAY 2, 2000** MAY 2, 2000**
THROUGH THROUGH THROUGH
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 2000 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED)
-------------- -------------- --------------
<S> <C> <C> <C>
Dividend income......................... $ 721 $ 123 $ 0
Distribution from capital gains......... 6,176 1 3,580
Mortality and expense risk charges...... (1,965) (155) (152)
-------- ------- ------
Net investment income (loss)............ 4,932 (31) 3,428
-------- ------- ------
Realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on
investments......................... (43,436) 84 98
Net change in unrealized depreciation
of investments...................... (12,561) (2,185) (103)
-------- ------- ------
Net realized and unrealized loss on
investments........................... (55,997) (2,101) (5)
-------- ------- ------
Net increase (decrease) in net assets
resulting from operations............. $(51,065) $(2,132) $3,423
======== ======= ======
</TABLE>
---------------
** Commencement of operations
See notes to financial statements.
F-8
<PAGE> 80
MONY
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
----------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS
DREYFUS ------------------------------------------
STOCK VIP VIP II
INDEX GROWTH CONTRAFUND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------------- -------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MAY 2, 2000** MAY 11, 2000** MAY 2, 2000**
THROUGH THROUGH THROUGH
SEPTEMBER 30, 2000 SEPTEMBER 30, 2000 SEPTEMBER 30, 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED)
------------------ ------------------- -------------------
<S> <C> <C> <C>
Dividend income.................................. $ 303 $ 0 $ 0
Distribution from capital gains.................. 0 0 0
Mortality and expense risk charges............... (146) (245) (125)
------- ------- -----
Net investment income (loss)..................... 157 (245) (125)
------- ------- -----
Realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on investments........ 78 424 27
Net change in unrealized appreciation
(depreciation) of investments................ (1,328) (4,106) 612
------- ------- -----
Net realized and unrealized gain (loss) on
investments.................................... (1,250) (3,682) 639
------- ------- -----
Net increase (decrease) in net assets resulting
from operations................................ $(1,093) $(3,927) $ 514
======= ======= =====
<CAPTION>
MONY EQUITY MASTER
----------------------------------------
JANUS ASPEN SERIES FUND
----------------------------------------
CAPITAL WORLDWIDE
APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT
------------------ ------------------
FOR THE PERIOD FOR THE PERIOD
MAY 4, 2000** MAY 2, 2000**
THROUGH THROUGH
SEPTEMBER 30, 2000 SEPTEMBER 30, 2000
(UNAUDITED) (UNAUDITED)
------------------ ------------------
<S> <C> <C>
Dividend income.................................. $1,120 $ 8,493
Distribution from capital gains.................. 0 0
Mortality and expense risk charges............... (397) (283)
------ --------
Net investment income (loss)..................... 723 8,210
------ --------
Realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on investments........ 454 (349)
Net change in unrealized appreciation
(depreciation) of investments................ 3,030 (17,270)
------ --------
Net realized and unrealized gain (loss) on
investments.................................... 3,484 (17,619)
------ --------
Net increase (decrease) in net assets resulting
from operations................................ $4,207 $ (9,409)
====== ========
</TABLE>
---------------
** Commencement of operations
See notes to financial statements.
F-9
<PAGE> 81
MONY
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
STRATEGIST
-----------------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------------
EQUITY GROWTH EQUITY INCOME
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
2000 DECEMBER 31, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
From operations:
Net Investment income...................................... $ 25,827 $ 7,272 $ 7,688 $ 8,201
Net realized gain (loss) on investments.................... 6,648 13,987 (3,950) 2,686
Net change in unrealized appreciation (depreciation) of
investments.............................................. (35,096) 13,421 (3,458) (7,388)
-------- -------- -------- --------
Net increase (decrease) in net assets resulting from
operations................................................. (2,621) 34,680 280 3,499
-------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units.................... 7,028 7,933 6,098 7,489
Net asset value of units redeemed or used to meet contract
obligations.............................................. (19,680) (20,639) (13,577) (10,388)
-------- -------- -------- --------
Net decrease from unit transactions......................... (12,652) (12,706) (7,479) (2,899)
-------- -------- -------- --------
Net increase (decrease) in net assets....................... (15,273) 21,974 (7,199) 600
Net assets beginning of period.............................. 121,341 99,367 49,458 48,858
-------- -------- -------- --------
Net assets end of period*................................... $106,068 $121,341 $ 42,259 $ 49,458
======== ======== ======== ========
Unit transactions:
Units outstanding beginning of period....................... 1,629 1,830 919 975
Units issued during the period.............................. 94 140 118 142
Units redeemed during the period............................ (262) (341) (258) (198)
-------- -------- -------- --------
Units outstanding end of period............................. 1,461 1,629 779 919
======== ======== ======== ========
---------------
* Includes undistributed net investment income of:.......... $ 60,482 $ 34,655 $ 35,740 $ 28,052
======== ======== ======== ========
<CAPTION>
STRATEGIST
-----------------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------------
INTERMEDIATE TERM BOND LONG TERM BOND
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
2000 DECEMBER 31, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
From operations:
Net Investment income...................................... $ 403 $ 301 $ 914 $ 788
Net realized gain (loss) on investments.................... 6 50 12 64
Net change in unrealized appreciation (depreciation) of
investments.............................................. (118) (379) 217 (2,130)
------- ------ ------- -------
Net increase (decrease) in net assets resulting from
operations................................................. 291 (28) 1,143 (1,278)
------- ------ ------- -------
From unit transactions:
Net proceeds from the issuance of units.................... 305 407 492 650
Net asset value of units redeemed or used to meet contract
obligations.............................................. (484) (630) (905) (1,309)
------- ------ ------- -------
Net decrease from unit transactions......................... (179) (223) (413) (659)
------- ------ ------- -------
Net increase (decrease) in net assets....................... 112 (251) 730 (1,937)
Net assets beginning of period.............................. 7,190 7,441 13,867 15,804
------- ------ ------- -------
Net assets end of period*................................... $ 7,302 $7,190 $14,597 $13,867
======= ====== ======= =======
Unit transactions:
Units outstanding beginning of period....................... 316 327 529 554
Units issued during the period.............................. 14 17 18 24
Units redeemed during the period............................ (21) (28) (33) (49)
------- ------ ------- -------
Units outstanding end of period............................. 309 316 514 529
======= ====== ======= =======
---------------
* Includes undistributed net investment income of:.......... $10,181 $9,778 $29,139 $28,225
======= ====== ======= =======
<CAPTION>
STRATEGIST
-----------------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
2000 DECEMBER 31, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
From operations:
Net Investment income...................................... $ 19,068 $ 12,288 $ 894 $ 1,030
Net realized gain (loss) on investments.................... 949 3,544 0 0
Net change in unrealized appreciation (depreciation) of
investments.............................................. (21,499) 11,962 0 0
-------- -------- ------- -------
Net increase (decrease) in net assets resulting from
operations................................................. (1,482) 27,794 894 1,030
-------- -------- ------- -------
From unit transactions:
Net proceeds from the issuance of units.................... 1,395 1,832 180 183
Net asset value of units redeemed or used to meet contract
obligations.............................................. (2,319) (9,349) (2,264) (2,906)
-------- -------- ------- -------
Net decrease from unit transactions......................... (924) (7,517) (2,084) (2,723)
-------- -------- ------- -------
Net increase (decrease) in net assets....................... (2,406) 20,277 (1,190) (1,693)
Net assets beginning of period.............................. 117,737 97,460 23,304 24,997
-------- -------- ------- -------
Net assets end of period*................................... $115,331 $117,737 $22,114 $23,304
======== ======== ======= =======
Unit transactions:
Units outstanding beginning of period....................... 2,169 2,330 1,237 1,385
Units issued during the period.............................. 26 40 10 9
Units redeemed during the period............................ (43) (201) (118) (157)
-------- -------- ------- -------
Units outstanding end of period............................. 2,152 2,169 1,129 1,237
======== ======== ======= =======
---------------
* Includes undistributed net investment income of:.......... $ 72,995 $ 53,927 $28,496 $27,602
======== ======== ======= =======
</TABLE>
See notes to financial statements.
F-10
<PAGE> 82
MONY
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
---------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE TERM LONG TERM
SECURITIES BOND BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- -------------
FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR MONTHS ENDED
SEPTEMBER 30, ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
2000 DECEMBER 31, 2000 DECEMBER 31, 2000
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED)
------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income........................ $ 7,036 $ 1,852 $ 3,646 $ 1,106 $ 11,464
Net realized gain (loss) on investments...... (2,858) (668) (1,302) 244 (13,261)
Net change in unrealized appreciation
(depreciation) of investments.............. 3,063 (1,145) 607 (1,483) 16,665
-------- -------- -------- ------- --------
Net increase (decrease) in net assets
resulting from operations.................... 7,241 39 2,951 (133) 14,868
-------- -------- -------- ------- --------
From unit transactions:
Net proceeds from the issuance of units...... 71,951 108,249 51,304 24,028 64,123
Net asset value of units redeemed or used to
meet contract obligations.................. (48,721) (32,265) (14,203) (7,376) (27,626)
-------- -------- -------- ------- --------
Net increase (decrease) from unit
transactions................................. 23,230 75,984 37,101 16,652 36,497
-------- -------- -------- ------- --------
Net increase (decrease) in net assets......... 30,471 76,023 40,052 16,519 51,365
Net assets beginning of period................ 124,912 48,889 40,474 23,955 164,960
-------- -------- -------- ------- --------
Net assets end of period*..................... $155,383 $124,912 $ 80,526 $40,474 $216,325
======== ======== ======== ======= ========
Unit transactions:
Units outstanding beginning of period......... 11,129 4,352 3,569 2,101 14,728
Units issued during the period................ 6,318 9,677 4,506 2,195 5,622
Units redeemed during the period.............. (4,292) (2,900) (1,249) (727) (2,503)
-------- -------- -------- ------- --------
Units outstanding end of period............... 13,155 11,129 6,826 3,569 17,847
======== ======== ======== ======= ========
---------------
* Includes undistributed net investment income
of:......................................... $ 9,288 $ 2,252 $ 4,836 $ 1,190 $ 21,870
======== ======== ======== ======= ========
<CAPTION>
MONY EQUITY MASTER
-------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------
LONG TERM MONEY
BOND MARKET
SUBACCOUNT SUBACCOUNT
------------ ----------------------------
FOR THE NINE
FOR THE YEAR MONTHS ENDED FOR THE YEAR
ENDED SEPTEMBER 30, ENDED
DECEMBER 31, 2000 DECEMBER 31,
1999 (UNAUDITED) 1999
------------ ------------- ------------
<S> <C> <C> <C>
From operations:
Net investment income........................ $ 7,264 $ 13,240 $ 22,972
Net realized gain (loss) on investments...... (5,908) 0 0
Net change in unrealized appreciation
(depreciation) of investments.............. (14,627) 0 0
-------- --------- -----------
Net increase (decrease) in net assets
resulting from operations.................... (13,271) 13,240 22,972
-------- --------- -----------
From unit transactions:
Net proceeds from the issuance of units...... 141,202 773,658 5,475,875
Net asset value of units redeemed or used to
meet contract obligations.................. (83,258) (936,040) (5,355,867)
-------- --------- -----------
Net increase (decrease) from unit
transactions................................. 57,944 (162,382) 120,008
-------- --------- -----------
Net increase (decrease) in net assets......... 44,673 (149,142) 142,980
Net assets beginning of period................ 120,287 500,038 357,058
-------- --------- -----------
Net assets end of period*..................... $164,960 $ 350,896 $ 500,038
======== ========= ===========
Unit transactions:
Units outstanding beginning of period......... 9,848 43,698 32,517
Units issued during the period................ 12,569 66,434 495,722
Units redeemed during the period.............. (7,689) (80,618) (484,541)
-------- --------- -----------
Units outstanding end of period............... 14,728 29,514 43,698
======== ========= ===========
---------------
* Includes undistributed net investment income
of:......................................... $ 10,406 $ 45,589 $ 32,349
======== ========= ===========
</TABLE>
See notes to financial statements.
F-11
<PAGE> 83
MONY
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR
SEPTEMBER 30, ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, ENDED
2000 DECEMBER 31, 2000 DECEMBER 31, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)..................... $ 1,982,802 $ 402,964 $ 659,598 $ 148,993 $ 2,825,192 $ 1,276,731
Net realized gain (loss) on
investments................ 112,888 (23,765) 100,438 (3,009) (584,889) (157,793)
Net change in unrealized
appreciation (depreciation)
of investment.............. (1,076,948) 366,191 (695,548) 243,709 (2,340,101) (544,652)
----------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations................... 1,018,742 745,390 64,488 389,693 (99,798) 574,286
----------- ---------- ---------- ---------- ----------- -----------
From unit transactions:
Net proceeds from the
issuance of units.......... 2,104,275 3,422,925 1,281,561 1,721,346 2,247,111 4,318,874
Net asset value of units
redeemed or used to meet
contract obligations....... (923,820) (620,050) (540,188) (369,876) (2,308,027) (1,215,083)
----------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) from
unit transactions............ 1,180,455 2,802,875 741,373 1,351,470 (60,916) 3,103,791
----------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net
assets....................... 2,199,197 3,548,265 805,861 1,741,163 (160,714) 3,678,077
Net assets beginning of
period....................... 6,217,950 2,669,685 2,792,657 1,051,494 8,572,247 4,894,170
----------- ---------- ---------- ---------- ----------- -----------
Net assets end of period*..... $ 8,417,147 $6,217,950 $3,598,518 $2,792,657 $ 8,411,533 $ 8,572,247
=========== ========== ========== ========== =========== ===========
Unit transactions:
Units outstanding beginning of
period....................... 393,602 193,933 139,911 64,856 561,265 347,392
Units issued during the
period....................... 120,124 245,553 64,080 96,688 150,671 301,038
Units redeemed during the
period....................... (52,449) (45,884) (26,925) (21,633) (155,495) (87,165)
----------- ---------- ---------- ---------- ----------- -----------
Units outstanding end of
period....................... 461,277 393,602 177,066 139,911 556,441 561,265
=========== ========== ========== ========== =========== ===========
---------------
* Includes undistributed net
investment income (loss)
of: $ 2,523,879 $ 541,077 $ 883,454 $ 223,856 $ 4,540,922 $ 1,715,730
=========== ========== ========== ========== =========== ===========
** Commencement of operations
<CAPTION>
MONY EQUITY MASTER
---------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND
GROWTH BOND GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD
FOR THE NINE FOR THE NINE MAY 2, 2000** MAY 2, 2000**
MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR THROUGH THROUGH
SEPTEMBER 30, ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, SEPTEMBER 30,
2000 DECEMBER 31, 2000 DECEMBER 31, 2000 2000
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) (UNAUDITED)
------------- ------------ ------------- ------------ -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)..................... $ 126,214 $ 27,348 $ 31,480 $ 31,247 $ 4,932 $ (31)
Net realized gain (loss) on
investments................ 48,058 57,376 (20,141) (9,879) (43,436) 84
Net change in unrealized
appreciation (depreciation)
of investment.............. (408,025) 246,585 (6,509) (10,694) (12,561) (2,185)
---------- ---------- --------- -------- --------- --------
Net increase (decrease) in net
assets resulting from
operations................... (233,753) 331,309 4,830 10,674 (51,065) (2,132)
---------- ---------- --------- -------- --------- --------
From unit transactions:
Net proceeds from the
issuance of units.......... 608,883 1,004,760 170,669 251,285 775,496 571,335
Net asset value of units
redeemed or used to meet
contract obligations....... (268,780) (444,630) (126,807) (67,189) (535,576) (2,532)
---------- ---------- --------- -------- --------- --------
Net increase (decrease) from
unit transactions............ 340,103 560,130 43,862 184,096 239,920 568,803
---------- ---------- --------- -------- --------- --------
Net increase (decrease) in net
assets....................... 106,350 891,439 48,692 194,770 188,855 566,671
Net assets beginning of
period....................... 1,262,109 370,670 453,435 258,665 0 0
---------- ---------- --------- -------- --------- --------
Net assets end of period*..... $1,368,459 $1,262,109 $ 502,127 $453,435 $ 188,855 $566,671
========== ========== ========= ======== ========= ========
Unit transactions:
Units outstanding beginning of
period....................... 74,758 30,978 37,549 22,083 0 0
Units issued during the
period....................... 39,324 79,351 14,218 21,652 76,371 56,303
Units redeemed during the
period....................... (17,957) (35,571) (10,558) (6,186) (56,276) (246)
---------- ---------- --------- -------- --------- --------
Units outstanding end of
period....................... 96,125 74,758 41,209 37,549 20,095 56,057
========== ========== ========= ======== ========= ========
---------------
* Includes undistributed net
investment income (loss)
of: $ 172,654 $ 46,440 $ 83,113 $ 51,633 $ 4,932 $ (31)
========== ========== ========= ======== ========= ========
** Commencement of operations
<CAPTION>
MONY EQUITY MASTER
--------------
ENTERPRISE ACCUMULATION TRUST
--------------
CAPITAL
APPRECIATION
SUBACCOUNT
--------------
FOR THE PERIOD
MAY 2, 2000**
THROUGH
SEPTEMBER 30,
2000
(UNAUDITED)
--------------
<S> <C>
From operations:
Net investment income
(loss)..................... $ 3,428
Net realized gain (loss) on
investments................ 98
Net change in unrealized
appreciation (depreciation)
of investment.............. (103)
-------
Net increase (decrease) in net
assets resulting from
operations................... 3,423
-------
From unit transactions:
Net proceeds from the
issuance of units.......... 72,955
Net asset value of units
redeemed or used to meet
contract obligations....... (3,535)
-------
Net increase (decrease) from
unit transactions............ 69,420
-------
Net increase (decrease) in net
assets....................... 72,843
Net assets beginning of
period....................... 0
-------
Net assets end of period*..... $72,843
=======
Unit transactions:
Units outstanding beginning of
period....................... 0
Units issued during the
period....................... 7,408
Units redeemed during the
period....................... (346)
-------
Units outstanding end of
period....................... 7,062
=======
---------------
* Includes undistributed net
investment income (loss)
of: $ 3,428
=======
** Commencement of operations
</TABLE>
See notes to financial statements.
F-12
<PAGE> 84
MONY
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
------------------------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE PRODUCTS FUNDS JANUS ASPEN SERIES FUND
DREYFUS ------------------------------------------ --------------------------------
STOCK VIP VIP II CAPITAL WORLDWIDE
INDEX GROWTH CONTRFUND APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- ------------------- ------------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MAY 2, 2000** MAY 11, 2000** MAY 2, 2000** MAY 4, 2000** MAY 2, 2000**
THROUGH THROUGH THROUGH THROUGH THROUGH
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 2000 2000 2000 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
-------------- ------------------- ------------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income
(loss)..................... $ 157 $ (245) $ (125) $ 723 $ 8,210
Net realized gain (loss) on
investments................ 78 424 27 454 (349)
Net change in unrealized
appreciation (depreciation)
of investments............. (1,328) (4,106) 612 3,030 (17,270)
------- -------- ------- -------- --------
Net increase (decrease) in net
assets resulting from
operations................... (1,093) (3,927) 514 4,207 (9,409)
------- -------- ------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units.......... 85,410 159,912 71,022 228,604 190,357
Net asset value of units
redeemed or used to meet
contract obligations....... (3,715) (6,271) (2,340) (8,482) (6,916)
------- -------- ------- -------- --------
Net increase from unit
transactions................. 81,695 153,641 68,682 220,122 183,441
------- -------- ------- -------- --------
Net increase in net assets..... 80,602 149,714 69,196 224,329 174,032
Net assets beginning of
period....................... 0 0 0 0 0
------- -------- ------- -------- --------
Net assets end of period*...... $80,602 $149,714 $69,196 $224,329 $174,032
======= ======== ======= ======== ========
Unit transactions:
Units outstanding beginning of
period....................... 0 0 0 0 0
Units issued during the
period....................... 8,471 14,818 7,067 23,060 19,546
Units redeemed during the
period....................... (364) (574) (232) (840) (706)
------- -------- ------- -------- --------
Units outstanding end of
period....................... 8,107 14,244 6,835 22,220 18,840
======= ======== ======= ======== ========
---------------
* Includes undistributed net
investment income (loss) of:... $ 157 $ (245) $ (125) $ 723 $ 8,210
======= ======== ======= ======== ========
** Commencement of operations
</TABLE>
See notes to financial statements.
F-13
<PAGE> 85
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION AND BUSINESS
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by MONY Life Insurance Company
("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Variable Life Insurance policies (Stategist) and Variable
Universal Life Insurance policies (MONYEquity Master). These policies are issued
by MONY.
There are currently six Strategist subaccounts and seventeen MONYEquity
Master subaccounts within the Variable Account, and each invests only in a
corresponding portfolio of the MONY Series Fund, Inc. (the "Fund"), the
Enterprise Accumulation Trust ("Enterprise"), Dreyfus Stock Index Fund, Fidelity
Variable Insurance Products, or Janus Aspen Series (collectively, the "Funds").
The subaccounts of Strategist commenced operations in 1990 and the subaccounts
of MONYEquity Master commenced operations during 1996, 1997 and 2000. The Funds
are registered under the 1940 Act as open end, diversified, management
investment companies and are affiliated with MONY.
A full presentation of the related financial statements and footnotes of
the Funds are contained on pages hereinafter and should be read in conjunction
with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
Investments:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset values are based upon market or fair
valuations of the securities held in each of the corresponding portfolios of the
Funds. For the Money Market Portfolio, the net asset value is based on amortized
cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses include gains and losses on redemption of investments
in the portfolios of the Funds determined on the identified cost basis. Dividend
income is recorded on the ex-dividend date. Investment income includes
distributions of dividends and net realized capital gains received from the
respective portfolios of the Funds. Investment income received is reinvested in
additional shares of the respective portfolios of the Funds.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized capital gains attributable to the Variable Account. Based on this
expectation, no charges are currently being deducted from the Variable Account
for federal income tax purposes.
F-14
<PAGE> 86
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. RELATED PARTY TRANSACTIONS
MONY is the legal owner of the assets of the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY. A surrender
charge may be imposed by MONY when a full or partial surrender is requested by
the policyholders. These deductions are treated as contractholder redemptions by
the Variable Account. The amount deducted for all subaccounts for the period
ended September 30, 2000 aggregated $2,258,478.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.60% (for each of the Strategist
Subaccounts) and 0.75% (for each of the MONYEquity Master Subaccounts) of the
average daily net assets of the respective subaccounts. As MONY America, a
wholly-owned subsidiary of MONY, acts as investment adviser to the Fund, it
receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to the portfolios of Enterprise, and it receives
amounts paid by Enterprise for those services.
4. INVESTMENTS TRANSACTIONS
Cost of shares acquired and proceeds from shares redeemed by each
subaccount during the period ended September 30, 2000 are as follows:
<TABLE>
<CAPTION>
STRATEGIST SUBACCOUNTS COST OF SHARES ACQUIRED PROCEEDS FROM SHARES REDEEMED
---------------------- ----------------------- -----------------------------
<S> <C> <C>
MONY Series Fund, Inc.
Equity Growth Portfolio....................... $ 10,677 $ 23,691
Equity Income Portfolio....................... 7,866 15,487
Intermediate Term Bond Portfolio.............. 305 506
Long Term Bond Portfolio...................... 492 948
Diversified Portfolio......................... 1,395 2,673
Money Market Portfolio........................ 185 2,338
MONYEQUITY MASTER SUBACCOUNTS
------------------------------------------------
MONY Series Fund, Inc.
Government Securities Portfolio............... 86,724 64,003
Intermediate Term Bond Portfolio.............. 53,302 16,442
Long Term Bond Portfolio...................... 115,607 79,784
Money Market Portfolio........................ 1,434,130 1,597,893
</TABLE>
F-15
<PAGE> 87
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
MONYEQUITY MASTER SUBACCOUNTS COST OF SHARES ACQUIRED PROCEEDS FROM SHARES REDEEMED
----------------------------- ----------------------- -----------------------------
<S> <C> <C>
Enterprise Accumulation Trust
Equity Portfolio.............................. $2,233,331 $1,079,601
Small Company Value Portfolio................. 1,360,387 630,505
Managed Portfolio............................. 2,645,361 2,738,214
International Growth Portfolio................ 693,717 358,666
High Yield Bond Portfolio..................... 194,757 152,648
Growth Portfolio.............................. 920,499 681,073
Growth & Income Portfolio..................... 571,694 2,898
Capital Appreciation Portfolio................ 73,633 4,233
Dreyfus
Dreyfus Stock Index........................... 85,565 3,886
Fidelity Variable Insurance Products Funds
VIP Growth Portfolio.......................... 160,058 6,431
VIP II Contra Portfolio....................... 71,190 2,521
Janus Aspen Series Fund
Capital Appreciation Portfolio................ 229,391 9,296
Worldwide Growth Portfolio.................... 190,839 7,420
</TABLE>
F-16
<PAGE> 88
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company and the
Contractholders of MONY Variable Account L -- Strategist and MONYEquity Master:
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the Strategist's and
MONYEquity Master's subaccounts of MONY Variable Account L at December 31, 1999,
the results of each of their operations for the year then ended and the changes
in each of their net assets for each of the two years in the period then ended,
in conformity with accounting principles generally accepted in the United
States. These financial statements are the responsibility of MONY Life Insurance
Company's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial 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, which included confirmation of securities at December 31, 1999 by
correspondence with the fund transfer agents, provide a reasonable basis for the
opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 11, 2000
F-17
<PAGE> 89
MONY
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<CAPTION>
STRATEGIST
------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds.......... 2,495 2,112 665 1,126 5,136 23,310
======== ======= ======= ======== ======== =======
Investments at cost...................... $ 86,190 $51,921 $ 7,043 $ 13,329 $ 84,754 $23,310
======== ======= ======= ======== ======== =======
Investments in respective Funds at net
asset value............................ $121,372 $49,471 $ 7,192 $ 13,871 $117,767 $23,310
Amount due from MONY..................... 0 0 0 0 0 0
Amount due from respective Funds......... 0 0 0 0 0 0
-------- ------- ------- -------- -------- -------
Total assets................... 121,372 49,471 7,192 13,871 117,767 23,310
======== ======= ======= ======== ======== =======
LIABILITIES
Amount due to MONY....................... 31 13 2 4 30 6
Amount due to respective Funds........... 0 0 0 0 0 0
-------- ------- ------- -------- -------- -------
Total liabilities.............. 31 13 2 4 30 6
-------- ------- ------- -------- -------- -------
Net assets............................... $121,341 $49,458 $ 7,190 $ 13,867 $117,737 $23,304
======== ======= ======= ======== ======== =======
Net assets consist of:
Contractholders' net payments.......... $ 9,160 $10,407 $(3,920) $(20,358) $ 21,233 $(4,298)
Undistributed net investment income.... 34,655 28,052 9,778 28,225 53,927 27,602
Accumulated net realized gain on
investments......................... 42,344 13,449 1,183 5,458 9,564 0
Net unrealized appreciation
(depreciation) of investments....... 35,182 (2,450) 149 542 33,013 0
-------- ------- ------- -------- -------- -------
Net assets............................... $121,341 $49,458 $ 7,190 $ 13,867 $117,737 $23,304
======== ======= ======= ======== ======== =======
Number of units outstanding*............. 1,629 919 316 529 2,169 1,237
======== ======= ======= ======== ======== =======
Net asset value per unit outstanding*.... $ 74.47 $ 53.82 $ 22.73 $ 26.20 $ 54.29 $ 18.84
======== ======= ======= ======== ======== =======
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-18
<PAGE> 90
MONY
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- ----------
<S> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds.... 11,453 3,742 13,394 500,218
======== ======= ======== ========
Investments at cost................ $125,976 $40,957 $177,243 $500,218
======== ======= ======== ========
Investments in respective Funds at
net asset value.................. $124,950 $40,487 $165,014 $500,218
Amount due from MONY............... 0 0 0 0
Amount due from respective Funds... 0 0 6 246
-------- ------- -------- --------
Total assets............... 124,950 40,487 165,020 500,464
-------- ------- -------- --------
LIABILITIES
Amount due to MONY................. 38 13 60 426
Amount due to respective Funds..... 0 0 0 0
-------- ------- -------- --------
Total liabilities.......... 38 13 60 426
-------- ------- -------- --------
Net assets......................... $124,912 $40,474 $164,960 $500,038
======== ======= ======== ========
Net assets consist of:
Contractholders' net payments.... $123,285 $39,435 $168,067 $467,689
Undistributed net investment
income......................... 2,252 1,190 10,406 32,349
Accumulated net realized gain
(loss) on investments.......... 401 319 (1,284) 0
Net unrealized appreciation
(depreciation) of
investments.................... (1,026) (470) (12,229) 0
-------- ------- -------- --------
Net assets......................... $124,912 $40,474 $164,960 $500,038
======== ======= ======== ========
Number of units outstanding*....... 11,129 3,569 14,728 43,698
======== ======= ======== ========
Net asset value per unit
outstanding*..................... $ 11.22 $ 11.34 $ 11.20 $ 11.44
======== ======= ======== ========
<CAPTION>
MONYEQUITY MASTER
--------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT** SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds.... 161,054 88,825 236,226 135,897 89,640
========== ========== ========== ========== ========
Investments at cost................ $5,851,374 $2,573,106 $9,341,454 $1,007,461 $475,976
========== ========== ========== ========== ========
Investments in respective Funds at
net asset value.................. $6,219,910 $2,793,540 $8,575,016 $1,262,484 $453,580
Amount due from MONY............... 342 86 609 0 0
Amount due from respective Funds... 608 505 1,085 188 122
---------- ---------- ---------- ---------- --------
Total assets............... 6,220,860 2,794,131 8,576,710 1,262,672 453,702
---------- ---------- ---------- ---------- --------
LIABILITIES
Amount due to MONY................. 2,568 1,388 3,854 563 267
Amount due to respective Funds..... 342 86 609 0 0
---------- ---------- ---------- ---------- --------
Total liabilities.......... 2,910 1,474 4,463 563 267
---------- ---------- ---------- ---------- --------
Net assets......................... $6,217,950 $2,792,657 $8,572,247 $1,262,109 $453,435
========== ========== ========== ========== ========
Net assets consist of:
Contractholders' net payments.... $5,267,374 $2,331,038 $7,638,503 $ 897,701 $432,408
Undistributed net investment
income......................... 541,077 223,856 1,715,730 46,440 51,633
Accumulated net realized gain
(loss) on investments.......... 40,963 17,329 (15,548) 62,945 (8,210)
Net unrealized appreciation
(depreciation) of
investments.................... 368,536 220,434 (766,438) 255,023 (22,396)
---------- ---------- ---------- ---------- --------
Net assets......................... $6,217,950 $2,792,657 $8,572,247 $1,262,109 $453,435
========== ========== ========== ========== ========
Number of units outstanding*....... 393,602 139,911 561,265 74,758 37,549
========== ========== ========== ========== ========
Net asset value per unit
outstanding*..................... $ 15.80 $ 19.96 $ 15.27 $ 16.88 $ 12.08
========== ========== ========== ========== ========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
** Formerly Small Cap Subaccount.
See notes to financial statements.
F-19
<PAGE> 91
MONY
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
STRATEGIST
------------------------------------------------------------------------------
MONY SERIES FUND INC.
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.......................... $ 7,903 $ 8,501 $ 345 $ 877 $12,929 $1,175
Mortality and expense risk charges....... (631) (300) (44) (89) (641) (145)
------- ------- ----- ------- ------- ------
Net investment income.................... 7,272 8,201 301 788 12,288 1,030
------- ------- ----- ------- ------- ------
Realized and unrealized gain (loss) on
investments:
Net realized gain on investments....... 13,987 2,686 50 64 3,544 0
Net change in unrealized appreciation
(depreciation) of investments....... 13,421 (7,388) (379) (2,130) 11,962 0
------- ------- ----- ------- ------- ------
Net realized and unrealized gain (loss)
on investments......................... 27,408 (4,702) (329) (2,066) 15,506 0
------- ------- ----- ------- ------- ------
Net increase (decrease) in net assets
resulting from operations.............. $34,680 $ 3,499 $ (28) $(1,278) $27,794 $1,030
======= ======= ===== ======= ======= ======
</TABLE>
See notes to financial statements.
F-20
<PAGE> 92
MONY
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- ----------
<S> <C> <C> <C> <C>
Dividend income.................... $2,524 $ 1,343 $ 8,412 $27,149
Mortality and expense risk
charges.......................... (672) (237) (1,148) (4,177)
------ ------- -------- -------
Net investment income.............. 1,852 1,106 7,264 22,972
------ ------- -------- -------
Realized and unrealized gain (loss)
on investments:
Net realized gain (loss) on
investments.................... (668) 244 (5,908) 0
Net change in unrealized
appreciation (depreciation) of
investments.................... (1,145) (1,483) (14,627) 0
------ ------- -------- -------
Net realized and unrealized gain
(loss) on investments............ (1,813) (1,239) (20,535) 0
------ ------- -------- -------
Net increase (decrease) in net
assets resulting from
operations....................... $ 39 $ (133) $(13,271) $22,972
====== ======= ======== =======
<CAPTION>
MONYEQUITY MASTER
--------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
--------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT* SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income.................... $432,179 $161,987 $1,324,747 $ 32,376 $ 33,817
Mortality and expense risk
charges.......................... (29,215) (12,994) (48,016) (5,028) (2,570)
-------- -------- ---------- -------- --------
Net investment income.............. 402,964 148,993 1,276,731 27,348 31,247
-------- -------- ---------- -------- --------
Realized and unrealized gain (loss)
on investments:
Net realized gain (loss) on
investments.................... (23,765) (3,009) (157,793) 57,376 (9,879)
Net change in unrealized
appreciation (depreciation) of
investments.................... 366,191 243,709 (544,652) 246,585 (10,694)
-------- -------- ---------- -------- --------
Net realized and unrealized gain
(loss) on investments............ 342,426 240,700 (702,445) 303,961 (20,573)
-------- -------- ---------- -------- --------
Net increase (decrease) in net
assets resulting from
operations....................... $745,390 $389,693 $ 574,286 $331,309 $ 10,674
======== ======== ========== ======== ========
</TABLE>
---------------
* Formerly Small Cap Subaccount.
See notes to financial statements.
F-21
<PAGE> 93
MONY
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31,
<TABLE>
<CAPTION>
STRATEGIST
------------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM BOND LONG TERM BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------- ---------------------- ------------------
1999 1998 1999 1998 1999 1998 1999 1998
-------- ------- -------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income................. $ 7,272 $13,287 $ 8,201 $ 7,084 $ 301 $ 325 $ 788 $ 752
Net realized gain on investments...... 13,987 3,530 2,686 1,152 50 43 64 157
Net change in unrealized appreciation
(depreciation) of investments....... 13,421 2,645 (7,388) (3,246) (379) 109 (2,130) 481
-------- ------- -------- ------- ------ ------ ------- -------
Net increase (decrease) in net assets
resulting from operations............. 34,680 19,462 3,499 4,990 (28) 477 (1,278) 1,390
-------- ------- -------- ------- ------ ------ ------- -------
From unit transactions:
Net proceeds from the issuance of
units............................... 7,933 8,754 7,489 7,517 407 407 650 646
Net asset value of units redeemed or
used to meet contract obligations... (20,639) (7,677) (10,388) (6,714) (630) (504) (1,309) (1,117)
-------- ------- -------- ------- ------ ------ ------- -------
Net increase (decrease) from unit
transactions.......................... (12,706) 1,077 (2,899) 803 (223) (97) (659) (471)
-------- ------- -------- ------- ------ ------ ------- -------
Net increase (decrease) in net
assets................................ 21,974 20,539 600 5,793 (251) 380 (1,937) 919
Net assets beginning of year........... 99,367 78,828 48,858 43,065 7,441 7,061 15,804 14,885
-------- ------- -------- ------- ------ ------ ------- -------
Net assets end of year*................ $121,341 $99,367 $ 49,458 $48,858 $7,190 $7,441 $13,867 $15,804
======== ======= ======== ======= ====== ====== ======= =======
Unit transactions:
Units outstanding beginning of year... 1,830 1,811 975 962 327 331 554 571
Units issued during the year.......... 140 187 142 162 17 19 24 24
Units redeemed during the year........ (341) (168) (198) (149) (28) (23) (49) (41)
-------- ------- -------- ------- ------ ------ ------- -------
Units outstanding end of year.......... 1,629 1,830 919 975 316 327 529 554
======== ======= ======== ======= ====== ====== ======= =======
---------------
* Includes undistributed net investment
income of: $ 34,655 $27,383 $ 28,052 $19,851 $9,778 $9,477 $28,225 $27,437
======== ======= ======== ======= ====== ====== ======= =======
<CAPTION>
STRATEGIST
-----------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
------------------- ------------------
1999 1998 1999 1998
-------- ------- ------- -------
<S> <C> <C> <C> <C>
From operations:
Net investment income................. $ 12,288 $18,741 $ 1,030 $ 1,294
Net realized gain on investments...... 3,544 1,312 0 0
Net change in unrealized appreciation
(depreciation) of investments....... 11,962 (1,726) 0 0
-------- ------- ------- -------
Net increase (decrease) in net assets
resulting from operations............. 27,794 18,327 1,030 1,294
-------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units............................... 1,832 2,164 183 242
Net asset value of units redeemed or
used to meet contract obligations... (9,349) (3,504) (2,906) (7,011)
-------- ------- ------- -------
Net increase (decrease) from unit
transactions.......................... (7,517) (1,340) (2,723) (6,769)
-------- ------- ------- -------
Net increase (decrease) in net
assets................................ 20,277 16,987 (1,693) (5,475)
Net assets beginning of year........... 97,460 80,473 24,997 30,472
-------- ------- ------- -------
Net assets end of year*................ $117,737 $97,460 $23,304 $24,997
======== ======= ======= =======
Unit transactions:
Units outstanding beginning of year... 2,330 2,366 1,385 1,767
Units issued during the year.......... 40 58 9 14
Units redeemed during the year........ (201) (94) (157) (396)
-------- ------- ------- -------
Units outstanding end of year.......... 2,169 2,330 1,237 1,385
======== ======= ======= =======
---------------
* Includes undistributed net investment
income of: $ 53,927 $41,639 $27,602 $26,572
======== ======= ======= =======
</TABLE>
See notes to financial statements.
F-22
<PAGE> 94
MONY
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE TERM LONG TERM
SECURITIES BOND BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- --------------------------- ---------------------------
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 1,852 $ 432 $ 1,106 $ 84 $ 7,264 $ 2,252
Net realized gain (loss) on
investments.................... (668) 1,037 244 48 (5,908) 4,667
Net change in unrealized
appreciation (depreciation) of
investments.................... (1,145) (183) (1,483) 936 (14,627) 95
-------- -------- ------- ------- -------- --------
Net increase (decrease) in net
assets resulting from
operations....................... 39 1,286 (133) 1,068 (13,271) 7,014
-------- -------- ------- ------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units.......................... 108,249 65,090 24,028 25,294 141,202 117,542
Net asset value of units redeemed
or used to meet contract
obligations.................... (32,265) (30,558) (7,376) (4,660) (83,258) (45,844)
-------- -------- ------- ------- -------- --------
Net increase from unit
transactions..................... 75,984 34,532 16,652 20,634 57,944 71,698
-------- -------- ------- ------- -------- --------
Net increase in net assets......... 76,023 35,818 16,519 21,702 44,673 78,712
Net assets beginning of year....... 48,889 13,071 23,955 2,253 120,287 41,575
-------- -------- ------- ------- -------- --------
Net assets end of year*............ $124,912 $ 48,889 $40,474 $23,955 $164,960 $120,287
======== ======== ======= ======= ======== ========
Unit transactions:
Units outstanding beginning of
year........................... 4,352 1,234 2,101 211 9,848 3,719
Units issued during the year..... 9,677 7,967 2,195 2,310 12,569 11,923
Units redeemed during the year... (2,900) (4,849) (727) (420) (7,689) (5,794)
-------- -------- ------- ------- -------- --------
Units outstanding end of year...... 11,129 4,352 3,569 2,101 14,728 9,848
======== ======== ======= ======= ======== ========
---------------
* Includes undistributed net
investment income of: $ 2,252 $ 400 $ 1,190 $ 84 $ 10,406 $ 3,142
======== ======== ======= ======= ======== ========
<CAPTION>
MONYEQUITY MASTER
---------------------------
MONY SERIES FUND, INC.
---------------------------
MONEY
MARKET
SUBACCOUNT
---------------------------
1999 1998
------------ ------------
<S> <C> <C>
From operations:
Net investment income............ $ 22,972 $ 6,364
Net realized gain (loss) on
investments.................... 0 0
Net change in unrealized
appreciation (depreciation) of
investments.................... 0 0
----------- -----------
Net increase (decrease) in net
assets resulting from
operations....................... 22,972 6,364
----------- -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 5,475,875 2,471,685
Net asset value of units redeemed
or used to meet contract
obligations.................... (5,355,867) (2,290,641)
----------- -----------
Net increase from unit
transactions..................... 120,008 181,044
----------- -----------
Net increase in net assets......... 142,980 187,408
Net assets beginning of year....... 357,058 169,650
----------- -----------
Net assets end of year*............ $ 500,038 $ 357,058
=========== ===========
Unit transactions:
Units outstanding beginning of
year........................... 32,517 16,142
Units issued during the year..... 495,722 237,863
Units redeemed during the year... (484,541) (221,488)
----------- -----------
Units outstanding end of year...... 43,698 32,517
=========== ===========
---------------
* Includes undistributed net
investment income of: $ 32,349 $ 9,377
=========== ===========
</TABLE>
See notes to financial statements.
F-23
<PAGE> 95
MONY
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYEQUITY MASTER
----------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT** SUBACCOUNT
---------------------- ---------------------- ----------------------
1999 1998 1999 1998 1999 1998
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $402,964 $101,544 $148,993 $56,481 $1,276,731 $338,981
Net realized gain (loss) on
investments.................... (23,765) 31,965 (3,009) 9,045 (157,793) 87,429
Net change in unrealized
appreciation (depreciation) of
investments.................... 366,191 1,665 243,709 (23,869) (544,652) (225,085)
---------- ---------- ---------- ---------- ---------- ----------
Net increase in net assets
resulting from operations........ 745,390 135,174 389,693 41,657 574,286 201,325
---------- ---------- ---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 3,422,925 1,691,977 1,721,346 952,775 4,318,874 3,108,506
Net asset value of units redeemed
or used to meet contract
obligations.................... (620,050) (333,417) (369,876) (165,227) (1,215,083) (766,917)
---------- ---------- ---------- ---------- ---------- ----------
Net increase from unit
transactions..................... 2,802,875 1,358,560 1,351,470 787,548 3,103,791 2,341,589
---------- ---------- ---------- ---------- ---------- ----------
Net increase in net assets......... 3,548,265 1,493,734 1,741,163 829,205 3,678,077 2,542,914
Net assets beginning of year....... 2,669,685 1,175,951 1,051,494 222,289 4,894,170 2,351,256
---------- ---------- ---------- ---------- ---------- ----------
Net assets end of year*............ $6,217,950 $2,669,685 $2,792,657 $1,051,494 $8,572,247 $4,894,170
========== ========== ========== ========== ========== ==========
Unit transactions:
Units outstanding beginning of
year........................... 193,933 93,188 64,856 14,918 347,392 178,819
Units issued during the year..... 245,553 127,117 96,688 61,712 301,038 225,219
Units redeemed during the year... (45,884) (26,372) (21,633) (11,774) (87,165) (56,646)
---------- ---------- ---------- ---------- ---------- ----------
Units outstanding end of year...... 393,602 193,933 139,911 64,856 561,265 347,392
========== ========== ========== ========== ========== ==========
---------------
* Includes undistributed net
investment income of: $541,077 $138,113 $223,856 $74,863 $1,715,730 $438,999
========== ========== ========== ========== ========== ==========
** Formerly Small Cap Subaccount
<CAPTION>
MONYEQUITY MASTER
----------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
-------------------- ------------------
1999 1998 1999 1998
---------- -------- -------- --------
<S> <C> <C> <C> <C>
From operations:
Net investment income............ $27,348 $14,611 $31,247 $16,017
Net realized gain (loss) on
investments.................... 57,376 (901) (9,879) (22)
Net change in unrealized
appreciation (depreciation) of
investments.................... 246,585 18,656 (10,694) (12,950)
---------- -------- -------- --------
Net increase in net assets
resulting from operations........ 331,309 32,366 10,674 3,045
---------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units.......................... 1,004,760 217,747 251,285 192,334
Net asset value of units redeemed
or used to meet contract
obligations.................... (444,630) (50,680) (67,189) (34,511)
---------- -------- -------- --------
Net increase from unit
transactions..................... 560,130 167,067 184,096 157,823
---------- -------- -------- --------
Net increase in net assets......... 891,439 199,433 194,770 160,868
Net assets beginning of year....... 370,670 171,237 258,665 97,797
---------- -------- -------- --------
Net assets end of year*............ $1,262,109 $370,670 $453,435 $258,665
========== ======== ======== ========
Unit transactions:
Units outstanding beginning of
year........................... 30,978 16,311 22,083 8,584
Units issued during the year..... 79,351 19,541 21,652 16,309
Units redeemed during the year... (35,571) (4,874) (6,186) (2,810)
---------- -------- -------- --------
Units outstanding end of year...... 74,758 30,978 37,549 22,083
========== ======== ======== ========
---------------
* Includes undistributed net
investment income of: $46,440 $19,092 $51,633 $20,386
========== ======== ======== ========
** Formerly Small Cap Subaccount
</TABLE>
See notes to financial statements.
F-24
<PAGE> 96
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by MONY Life Insurance Company
("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Variable Life Insurance policies (Strategist) and Variable
Universal Life Insurance policies (MONYEquity Master). These policies are issued
by MONY.
There are currently six Strategist subaccounts and nine MONYEquity Master
subaccounts within the Variable Account, and each invests only in a
corresponding portfolio of the MONY Series Fund, Inc. (the "Fund") or the
Enterprise Accumulation Trust ("Enterprise") (collectively, the "Funds"). The
subaccounts of Strategist commenced operations in 1990 and the subaccounts of
MONYEquity Master commenced operations during 1996 and 1997. The Funds are
registered under the 1940 Act as open end, diversified, management investment
companies and are affiliated with MONY.
A full presentation of the related financial statements and footnotes of
the Funds are contained on pages hereinafter and should be read in conjunction
with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
Investments:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset values are based upon market or fair
valuations of the securities held in each of the corresponding portfolios of the
Funds. For the Money Market Portfolio, the net asset value is based on amortized
cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses include gains and losses on redemption of investments
in the portfolios of the Funds determined on the identified cost basis. Dividend
income is recorded on the ex-dividend date. Dividend income includes
distributions of net investment income and net realized capital gains received
from the respective portfolios of the Funds. Dividend income received is
reinvested in additional shares of the respective portfolios of the Funds.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized capital gains attributable to the Variable Account. Based on this
expectation, no charges are currently being deducted from the Variable Account
for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY is the legal owner of the assets of the Variable Account.
F-25
<PAGE> 97
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY. A surrender
charge may be imposed by MONY when a full or partial surrender is requested by
the policyholders. These deductions are treated as contractholder redemptions by
the Variable Account. The amount deducted for all subaccounts for 1999
aggregated $1,821,090.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of 0.60% (for each of the Strategist
Subaccounts) and 0.75% (for each of the MONYEquity Master Subaccounts) of the
average daily net assets of the respective subaccounts. As MONY America, a
wholly-owned subsidiary of MONY, acts as investment adviser to the Fund, it
receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to the portfolios of Enterprise, and it receives
amounts paid by Enterprise for those services.
4. INVESTMENTS TRANSACTIONS
Cost of shares acquired and proceeds from shares redeemed by each
subaccount during the year ended December 31, 1999 are as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
STRATEGIST SUBACCOUNTS SHARES ACQUIRED SHARES REDEEMED
---------------------- --------------- ---------------
<S> <C> <C>
MONY Series Fund, Inc.
Equity Growth Portfolio................................. $ 22,707 $ 36,014
Equity Income Portfolio................................. 12,473 15,657
Intermediate Term Bond Portfolio........................ 442 707
Long Term Bond Portfolio................................ 717 1,460
Diversified Portfolio................................... 2,005 10,133
Money Market Portfolio.................................. 213 3,075
MONYEQUITY MASTER
MONY Series Fund, Inc.
Government Securities Portfolio......................... 117,581 42,230
Intermediate Term Bond Portfolio........................ 30,798 14,370
Long Term Bond Portfolio................................ 158,894 102,044
Money Market Portfolio.................................. 5,965,716 5,849,705
Enterprise Accumulation Trust
Equity Portfolio........................................ 3,888,547 1,112,927
Small Company Value Portfolio........................... 1,954,416 615,057
Managed Portfolio....................................... 4,879,657 1,821,113
International Growth Portfolio.......................... 1,219,834 664,357
High Yield Bond Portfolio............................... 272,695 91,024
</TABLE>
F-26
<PAGE> 98
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company and the
Contractholders of MONY Variable Account L -- Strategist/MONYEquity Master:
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of each of the respective
subaccounts constituting MONY Variable Account L (comprising, respectively,
Strategist's Equity Growth, Equity Income, Intermediate Term Bond, Long Term
Bond, Diversified, and Money Market Subaccounts; and MONYEquity Master's
Government Securities, Intermediate Term Bond, Long Term Bond, Money Market,
Equity, Small Cap, Managed, International Growth, and High Yield Bond
Subaccounts) at December 31, 1998, the results of each of their operations for
the year then ended and the changes in each of their net assets for the periods
presented, in conformity with generally accepted accounting principles. These
financial statements are the responsibility of MONY Life Insurance Company's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards 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, which included
confirmation of securities at December 31, 1998 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
February 12, 1999
F-27
<PAGE> 99
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
STRATEGIST
------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)............. $ 77,606 $ 43,919 $ 6,913 $ 13,132 $ 76,409 $ 24,997
======== ======== ======== ======== ======== ========
Investments in MONY Series Fund, Inc. at
net asset value (Note 2)............... $ 99,367 $ 48,858 $ 7,441 $ 15,804 $ 97,460 $ 24,997
-------- -------- -------- -------- -------- --------
Net assets............................... $ 99,367 $ 48,858 $ 7,441 $ 15,804 $ 97,460 $ 24,997
======== ======== ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments.......... $ 78,894 $ 50,196 $ 9,574 $ 16,678 $ 69,157 $ 47,218
Cost of insurance withdrawals (Note
3).................................. (57,028) (36,891) (13,271) (36,377) (40,407) (48,793)
Undistributed net investment income.... 27,383 19,851 9,477 27,437 41,639 26,572
Accumulated net realized gain on
investments......................... 28,357 10,763 1,133 5,394 6,020 0
Unrealized appreciation of
investments......................... 21,761 4,939 528 2,672 21,051 0
-------- -------- -------- -------- -------- --------
Net assets............................... $ 99,367 $ 48,858 $ 7,441 $ 15,804 $ 97,460 $ 24,997
======== ======== ======== ======== ======== ========
Number of units outstanding*............. 1,830 975 327 554 2,330 1,385
-------- -------- -------- -------- -------- --------
Net asset value per unit outstanding*.... $ 54.29 $ 50.11 $ 22.81 $ 28.53 $ 41.83 $ 18.05
======== ======== ======== ======== ======== ========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-28
<PAGE> 100
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- ----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)....... $48,770 $22,942 $117,890 $357,058
======= ======= ======== ========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2)................... $ 0 $ 0 $ 0 $ 0
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................... 48,889 23,955 120,287 357,058
Amount due from MONY............... 0 0 12 34,123
Amount due from MONY Series Fund,
Inc.............................. 14 0 29 29
Amount due from Enterprise
Accumulation Trust............... 0 0 0 0
------- ------- -------- --------
Total assets............... 48,903 23,955 120,328 391,210
------- ------- -------- --------
LIABILITIES
Amount due to MONY................. 14 0 29 29
Amount due to MONY Series Fund,
Inc.............................. 0 0 12 34,123
Amount due to Enterprise
Accumulation Trust............... 0 0 0 0
------- ------- -------- --------
Total liabilities.......... 14 0 41 34,152
------- ------- -------- --------
Net assets......................... $48,889 $23,955 $120,287 $357,058
======= ======= ======== ========
Net assets consist of:
Contractholders' net payments.... $53,947 $26,546 $127,347 $375,789
Cost of insurance withdrawals
(Note 3)....................... (6,646) (3,763) (17,224) (28,108)
Undistributed net investment
income......................... 400 84 3,142 9,377
Accumulated net realized gain on
investments.................... 1,069 75 4,625 0
Unrealized appreciation
(depreciation) of
investments.................... 119 1,013 2,397 0
------- ------- -------- --------
Net assets......................... $48,889 $23,955 $120,287 $357,058
======= ======= ======== ========
Number of units outstanding*....... 4,352 2,101 9,848 32,517
------- ------- -------- --------
Net asset value per unit
outstanding*..................... $ 11.23 $ 11.40 $ 12.21 $ 10.98
======= ======= ======== ========
<CAPTION>
MONYEQUITY MASTER
-----------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)....... $2,667,340 $1,074,770 $5,115,956 $362,232 $270,366
========== ========== ========== ======== ========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2)................... $2,669,685 $1,051,494 $4,894,170 $370,670 $258,665
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................... 0 0 0 0 0
Amount due from MONY............... 1,826 1,586 4,436 27 66
Amount due from MONY Series Fund,
Inc.............................. 0 0 0 0 0
Amount due from Enterprise
Accumulation Trust............... 592 448 2,693 367 165
---------- ---------- ---------- -------- --------
Total assets............... 2,672,103 1,053,528 4,901,299 371,064 258,896
---------- ---------- ---------- -------- --------
LIABILITIES
Amount due to MONY................. 592 448 2,693 367 165
Amount due to MONY Series Fund,
Inc.............................. 0 0 0 0 0
Amount due to Enterprise
Accumulation Trust............... 1,826 1,586 4,436 27 66
---------- ---------- ---------- -------- --------
Total liabilities.......... 2,418 2,034 7,129 394 231
---------- ---------- ---------- -------- --------
Net assets......................... $2,669,685 $1,051,494 $4,894,170 $370,670 $258,665
========== ========== ========== ======== ========
Net assets consist of:
Contractholders' net payments.... $2,842,682 $1,145,573 $5,297,804 $390,984 $284,680
Cost of insurance withdrawals
(Note 3)....................... (378,183) (166,004) (763,092) (53,413) (36,369)
Undistributed net investment
income......................... 138,113 74,863 438,999 19,092 20,386
Accumulated net realized gain on
investments.................... 64,728 20,338 142,245 5,569 1,669
Unrealized appreciation
(depreciation) of
investments.................... 2,345 (23,276) (221,786) 8,438 (11,701)
---------- ---------- ---------- -------- --------
Net assets......................... $2,669,685 $1,051,494 $4,894,170 $370,670 $258,665
========== ========== ========== ======== ========
Number of units outstanding*....... 193,933 64,856 347,392 30,978 22,083
---------- ---------- ---------- -------- --------
Net asset value per unit
outstanding*..................... $ 13.77 $ 16.21 $ 14.09 $ 11.97 $ 11.71
========== ========== ========== ======== ========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-29
<PAGE> 101
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
STRATEGIST
------------------------------------------------------------------------------
MONY SERIES FUND INC.
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.......................... $13,809 $ 7,362 $ 369 $ 844 $19,262 $ 1,463
Mortality and expense risk charges (Note
3)..................................... (522) (278) (44) (92) (521) (169)
------- ------- ----- ------- ------- -------
Net investment income.................... 13,287 7,084 325 752 18,741 1,294
------- ------- ----- ------- ------- -------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales.................... 9,573 7,328 548 1,209 4,025 7,187
Cost of shares sold.................... (6,043) (6,176) (505) (1,052) (2,713) (7,187)
------- ------- ----- ------- ------- -------
Net realized gain on investments......... 3,530 1,152 43 157 1,312 0
Net increase (decrease) in unrealized
appreciation of investments............ 2,645 (3,246) 109 481 (1,726) 0
------- ------- ----- ------- ------- -------
Net realized and unrealized gain (loss)
on investments......................... 6,175 (2,094) 152 638 (414) 0
------- ------- ----- ------- ------- -------
Net increase in net assets resulting from
operations............................. $19,462 $ 4,990 $ 477 $ 1,390 $18,327 $ 1,294
======= ======= ===== ======= ======= =======
</TABLE>
See notes to financial statements.
F-30
<PAGE> 102
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MONYEQUITY MASTER
----------------------------------------------------
MONY SERIES FUND, INC.
----------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
Dividend income.................... $ 587 $ 199 $ 2,834 $ 7,447
Mortality and expense risk charges
(Note 3)......................... (155) (115) (582) (1,083)
-------- ------- -------- -----------
Net investment income.............. 432 84 2,252 6,364
-------- ------- -------- -----------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales.............. 56,069 4,970 75,552 2,884,707
Cost of shares sold.............. (55,032) (4,922) (70,885) (2,884,707)
-------- ------- -------- -----------
Net realized gain (loss) on
investments...................... 1,037 48 4,667 0
Net increase (decrease) in
unrealized appreciation of
investments...................... (183) 936 95 0
-------- ------- -------- -----------
Net realized and unrealized gain
(loss) on investments............ 854 984 4,762 0
-------- ------- -------- -----------
Net increase in net assets
resulting from operations........ $ 1,286 $ 1,068 $ 7,014 $ 6,364
======== ======= ======== ===========
<CAPTION>
MONYEQUITY MASTER
-----------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Dividend income.................... $115,911 $ 61,111 $ 366,308 $ 16,471 $ 17,306
Mortality and expense risk charges
(Note 3)......................... (14,367) (4,630) (27,327) (1,860) (1,289)
-------- --------- --------- -------- --------
Net investment income.............. 101,544 56,481 338,981 14,611 16,017
-------- --------- --------- -------- --------
Realized and unrealized gain (loss)
on investments (Note 2):
Proceeds from sales.............. 435,132 222,873 960,886 78,120 55,473
Cost of shares sold.............. (403,167) (213,828) (873,457) (79,021) (55,495)
-------- --------- --------- -------- --------
Net realized gain (loss) on
investments...................... 31,965 9,045 87,429 (901) (22)
Net increase (decrease) in
unrealized appreciation of
investments...................... 1,665 (23,869) (225,085) 18,656 (12,950)
-------- --------- --------- -------- --------
Net realized and unrealized gain
(loss) on investments............ 33,630 (14,824) (137,656) 17,755 (12,972)
-------- --------- --------- -------- --------
Net increase in net assets
resulting from operations........ $135,174 $ 41,657 $ 201,325 $ 32,366 $ 3,045
======== ========= ========= ======== ========
</TABLE>
See notes to financial statements.
F-31
<PAGE> 103
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
STRATEGIST
-------------------------------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM LONG TERM BOND
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT SUBACCOUNT
------------------ ------------------ ----------------- -----------------
1998 1997 1998 1997 1998 1997 1998 1997
------- -------- ------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $13,287 $ 4,971 $ 7,084 $ 3,937 $ 325 $ 343 $ 752 $ 752
Net realized gain on
investments.................... 3,530 5,544 1,152 3,331 43 27 157 66
Net increase (decrease) in
unrealized appreciation of
investments.................... 2,645 7,657 (3,246) 3,274 109 97 481 884
------- -------- ------- -------- ------ ------ ------- -------
Net increase in net assets
resulting from operations........ 19,462 18,172 4,990 10,542 477 467 1,390 1,702
------- -------- ------- -------- ------ ------ ------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 8,754 15,902 7,517 10,731 407 407 646 618
Net asset value of units redeemed
or used to meet contract
obligations.................... (7,677) (13,078) (6,714) (11,293) (504) (463) (1,117) (1,039)
------- -------- ------- -------- ------ ------ ------- -------
Net increase (decrease) from unit
transactions..................... 1,077 2,824 803 (562) (97) (56) (471) (421)
------- -------- ------- -------- ------ ------ ------- -------
Net increase (decrease) in net
assets........................... 20,539 20,996 5,793 9,980 380 411 919 1,281
Net assets beginning of year....... 78,828 57,832 43,065 33,085 7,061 6,650 14,885 13,604
------- -------- ------- -------- ------ ------ ------- -------
Net assets end of year*............ $99,367 $ 78,828 $48,858 $ 43,065 $7,441 $7,061 $15,804 $14,885
======= ======== ======= ======== ====== ====== ======= =======
Units outstanding beginning of
year............................. 1,811 1,726 962 965 331 333 571 588
Units issued during the year....... 187 428 162 282 19 20 24 26
Units redeemed during the year..... (168) (343) (149) (285) (23) (22) (41) (43)
------- -------- ------- -------- ------ ------ ------- -------
Units outstanding end of year...... 1,830 1,811 975 962 327 331 554 571
======= ======== ======= ======== ====== ====== ======= =======
---------------
* Includes undistributed net
investment income of: $27,383 $ 14,096 $19,851 $ 12,767 $9,477 $9,152 $27,437 $26,685
<CAPTION>
STRATEGIST
-------------------------------------
MONY SERIES FUND, INC.
-------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
----------------- -----------------
1998 1997 1998 1997
------- ------- ------- -------
<S> <C> <C> <C> <C>
From operations:
Net investment income............ $18,741 $ 5,074 $ 1,294 $ 1,394
Net realized gain on
investments.................... 1,312 1,485 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... (1,726) 9,311 0 0
------- ------- ------- -------
Net increase in net assets
resulting from operations........ 18,327 15,870 1,294 1,394
------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 2,164 2,162 242 967
Net asset value of units redeemed
or used to meet contract
obligations.................... (3,504) (3,376) (7,011) (2,652)
------- ------- ------- -------
Net increase (decrease) from unit
transactions..................... (1,340) (1,214) (6,769) (1,685)
------- ------- ------- -------
Net increase (decrease) in net
assets........................... 16,987 14,656 (5,475) (291)
Net assets beginning of year....... 80,473 65,817 30,472 30,763
------- ------- ------- -------
Net assets end of year*............ $97,460 $80,473 $24,997 $30,472
======= ======= ======= =======
Units outstanding beginning of
year............................. 2,366 2,404 1,767 1,867
Units issued during the year....... 58 69 14 59
Units redeemed during the year..... (94) (107) (396) (159)
------- ------- ------- -------
Units outstanding end of year...... 2,330 2,366 1,385 1,767
======= ======= ======= =======
---------------
* Includes undistributed net
investment income of: $41,639 $22,898 $26,572 $25,278
</TABLE>
See notes to financial statements.
F-32
<PAGE> 104
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONYEQUITY MASTER
--------------------------------------------------------------------------------------------
MONY SERIES FUND, INC.
--------------------------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM
SECURITIES TERM BOND BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------------------- --------------------------- ---------------------------
FOR THE PERIOD
FOR THE YEAR MARCH 24, 1997** FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED THROUGH ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997 1998 1997
------------ ----------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)..... $ 432 $ (32) $ 84 $ 0 $ 2,252 $ 892
Net realized gain (loss) on
investments.................... 1,037 32 48 27 4,667 (42)
Net increase (decrease) in
unrealized appreciation of
investments.................... (183) 302 936 77 95 2,367
------- ------- ------- ------ -------- -------
Net increase in net assets
resulting from operations........ 1,286 302 1,068 104 7,014 3,217
------- ------- ------- ------ -------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 65,090 13,868 25,294 2,923 117,542 28,471
Net asset value of units redeemed
or used to meet contract
obligations.................... (30,558) (1,099) (4,660) (813) (45,844) (2,195)
------- ------- ------- ------ -------- -------
Net increase from unit
transactions..................... 34,532 12,769 20,634 2,110 71,698 26,276
------- ------- ------- ------ -------- -------
Net increase in net assets......... 35,818 13,071 21,702 2,214 78,712 29,493
Net assets beginning of period..... 13,071 0 2,253 39 41,575 12,082
------- ------- ------- ------ -------- -------
Net assets end of period*.......... $48,889 $13,071 $23,955 $2,253 $120,287 $41,575
======= ======= ======= ====== ======== =======
Units outstanding beginning of
period........................... 1,234 0 211 4 3,719 1,217
Units issued during the period..... 7,967 1,336 2,310 286 11,923 2,712
Units redeemed during the period... (4,849) (102) (420) (79) (5,794) (210)
------- ------- ------- ------ -------- -------
Units outstanding end of period.... 4,352 1,234 2,101 211 9,848 3,719
======= ======= ======= ====== ======== =======
---------------
* Includes undistributed net
investment income (loss) of: $ 400 $ (32) $ 84 $ 0 $ 3,142 $ 890
** Commencement of operations.
<CAPTION>
MONYEQUITY MASTER
---------------------------
MONY SERIES FUND, INC.
---------------------------
MONEY
MARKET
SUBACCOUNT
---------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1998 1997
------------ ------------
<S> <C> <C>
From operations:
Net investment income (loss)..... $ 6,364 $ 2,744
Net realized gain (loss) on
investments.................... 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... 0 0
----------- -----------
Net increase in net assets
resulting from operations........ 6,364 2,744
----------- -----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 2,471,685 1,828,075
Net asset value of units redeemed
or used to meet contract
obligations.................... (2,290,641) (1,728,100)
----------- -----------
Net increase from unit
transactions..................... 181,044 99,975
----------- -----------
Net increase in net assets......... 187,408 102,719
Net assets beginning of period..... 169,650 66,931
----------- -----------
Net assets end of period*.......... $ 357,058 $ 169,650
=========== ===========
Units outstanding beginning of
period........................... 16,142 6,655
Units issued during the period..... 237,863 177,168
Units redeemed during the period... (221,488) (167,681)
----------- -----------
Units outstanding end of period.... 32,517 16,142
=========== ===========
---------------
* Includes undistributed net
investment income (loss) of: $ 9,377 $ 3,013
** Commencement of operations.
</TABLE>
See notes to financial statements.
F-33
<PAGE> 105
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MONYEQUITY MASTER
-------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------- --------------------- -----------------------
1998 1997 1998 1997 1998 1997
---------- ---------- ---------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income............ $ 101,544 $ 35,882 $ 56,481 $ 18,121 $ 338,981 $ 98,832
Net realized gain (loss) on
investments.................... 31,965 32,926 9,045 11,289 87,429 54,871
Net increase (decrease) in
unrealized appreciation of
investments.................... 1,665 1,377 (23,869) 583 (225,085) 5,802
---------- ---------- ---------- -------- ---------- ----------
Net increase in net assets
resulting from operations........ 135,174 70,185 41,657 29,993 201,325 159,505
---------- ---------- ---------- -------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of
units.......................... 1,691,977 1,163,129 952,775 210,986 3,108,506 2,299,829
Net asset value of units redeemed
or used to meet contract
obligations.................... (333,417) (111,523) (165,227) (35,444) (766,917) (235,234)
---------- ---------- ---------- -------- ---------- ----------
Net increase from unit
transactions..................... 1,358,560 1,051,606 787,548 175,542 2,341,589 2,064,595
---------- ---------- ---------- -------- ---------- ----------
Net increase in net assets......... 1,493,734 1,121,791 829,205 205,535 2,542,914 2,224,100
Net assets beginning of year....... 1,175,951 54,160 222,289 16,754 2,351,256 127,156
---------- ---------- ---------- -------- ---------- ----------
Net assets end of year*............ $2,669,685 $1,175,951 $1,051,494 $222,289 $4,894,170 $2,351,256
========== ========== ========== ======== ========== ==========
Units outstanding beginning of
year............................. 93,188 5,358 14,918 1,611 178,819 11,951
Units issued during the year....... 127,117 97,340 61,712 15,917 225,219 185,804
Units redeemed during the year..... (26,372) (9,510) (11,774) (2,610) (56,646) (18,936)
---------- ---------- ---------- -------- ---------- ----------
Units outstanding end of year...... 193,933 93,188 64,856 14,918 347,392 178,819
========== ========== ========== ======== ========== ==========
---------------
* Includes undistributed net
investment income of: $ 138,113 $ 36,569 $ 74,863 $ 18,382 $ 438,999 $ 100,018
<CAPTION>
MONYEQUITY MASTER
----------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------------- ------------------
1998 1997 1998 1997
-------- -------- -------- -------
<S> <C> <C> <C> <C>
From operations:
Net investment income............ $ 14,611 $ 4,431 $ 16,017 $ 4,368
Net realized gain (loss) on
investments.................... (901) 6,470 (22) 1,691
Net increase (decrease) in
unrealized appreciation of
investments.................... 18,656 (10,379) (12,950) 1,248
-------- -------- -------- -------
Net increase in net assets
resulting from operations........ 32,366 522 3,045 7,307
-------- -------- -------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 217,747 175,743 192,334 98,004
Net asset value of units redeemed
or used to meet contract
obligations.................... (50,680) (19,488) (34,511) (7,883)
-------- -------- -------- -------
Net increase from unit
transactions..................... 167,067 156,255 157,823 90,121
-------- -------- -------- -------
Net increase in net assets......... 199,433 156,777 160,868 97,428
Net assets beginning of year....... 171,237 14,460 97,797 369
-------- -------- -------- -------
Net assets end of year*............ $370,670 $171,237 $258,665 $97,797
======== ======== ======== =======
Units outstanding beginning of
year............................. 16,311 1,439 8,584 37
Units issued during the year....... 19,541 16,654 16,309 9,272
Units redeemed during the year..... (4,874) (1,782) (2,810) (725)
-------- -------- -------- -------
Units outstanding end of year...... 30,978 16,311 22,083 8,584
======== ======== ======== =======
---------------
* Includes undistributed net
investment income of: $ 19,092 $ 4,481 $ 20,386 $ 4,369
</TABLE>
See notes to financial statements.
F-34
<PAGE> 106
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by MONY Life Insurance Company
("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Variable Life Insurance policies (Stategist) and Variable
Universal Life Insurance policies (MONYEquity Master). These policies are issued
by MONY.
There are currently six Strategist subaccounts and nine MONYEquity Master
subaccounts within the Variable Account, and each invests only in a
corresponding portfolio of the MONY Series Fund, Inc. (the "Fund") or the
Enterprise Accumulation Trust ("Enterprise") (collectively, the "Funds"). The
subaccounts of MONYEquity Master commenced operations during 1996 and 1997. The
Funds are registered under the 1940 Act as open end, diversified, management
investment companies.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise are contained on pages hereinafter and should be read in
conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective Funds' portfolios is
stated at value which is the net asset value of each portfolio. Net asset values
are based upon market valuations of the securities held in each of the
corresponding portfolios of the Funds. For the Money Market Portfolios, the net
asset values are based on amortized cost of the securities held which
approximates value.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized capital gains attributable to the Variable Account. Based on this
expectation, no charges are currently being deducted from the Variable Account
for Federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY is the legal owner of the assets of the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted monthly from the cash
value of the contract to compensate MONY. These deductions are treated as
contractholder redemptions by the Variable Account. The amount deducted for all
subaccounts for 1998 aggregated $1,101,410.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of .60 percent (for the Strategist
Subaccounts) and .75 percent (for the MONYEquity Master Subaccounts) of the
average daily net assets of the subaccounts. As MONY America, a wholly-owned
F-35
<PAGE> 107
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
subsidiary of MONY, acts as investment adviser to the Fund, it receives amounts
paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1998 consist
of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
--------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares............................. 2,184 1,590 635 1,091 3,904 30,472
Amount............................. $59,712 $34,880 $6,642 $12,694 $57,696 $30,472
------- ------- ------ ------- ------- -------
Shares acquired:
Shares............................. 293 310 37 47 116 249
Amount............................. $10,128 $ 7,853 $ 407 $ 646 $ 2,164 $ 249
Shares received for reinvestment of
dividends:
Shares............................. 408 285 34 65 1,090 1,463
Amount............................. $13,809 $ 7,362 $ 369 $ 844 $19,262 $ 1,463
Shares redeemed:
Shares............................. (285) (302) (49) (88) (216) (7,187)
Amount............................. $(6,043) $(6,176) $ (505) $(1,052) $(2,713) $(7,187)
------- ------- ------ ------- ------- -------
Net change:
Shares............................. 416 293 22 24 990 (5,475)
Amount............................. $17,894 $ 9,039 $ 271 $ 438 $18,713 $(5,475)
------- ------- ------ ------- ------- -------
Shares end of year:
Shares............................. 2,600 1,883 657 1,115 4,894 24,997
Amount............................. $77,606 $43,919 $6,913 $13,132 $76,409 $24,997
======= ======= ====== ======= ======= =======
</TABLE>
F-36
<PAGE> 108
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in MONY Series Fund, Inc. and Enterprise Accumulation Trust at
cost, at December 31, 1998 consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
---------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ------------ --------- -----------
<S> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 1,201 203 3,048 169,650
Amount............. $ 12,769 $ 2,176 $ 39,273 $ 169,650
-------- ------- -------- -----------
Shares acquired:
Shares............. 8,162 2,341 10,611 3,064,668
Amount............. $ 90,446 $25,489 $146,668 $ 3,064,668
Shares received for
reinvestment of
dividends:
Shares............. 55 19 218 7,447
Amount............. $ 587 $ 199 $ 2,834 $ 7,447
Shares redeemed:
Shares............. (5,040) (448) (5,388) (2,884,707)
Amount............. $(55,032) $(4,922) $(70,885) $(2,884,707)
-------- ------- -------- -----------
Net change:
Shares............. 3,177 1,912 5,441 187,408
Amount............. $ 36,001 $20,766 $ 78,617 $ 187,408
-------- ------- -------- -----------
Shares end of year:
Shares............. 4,378 2,115 8,489 357,058
Amount............. $ 48,770 $22,942 $117,890 $ 357,058
======== ======= ======== ===========
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 33,513 8,326 57,657 27,708 17,128
Amount............. $1,175,271 $ 221,696 $2,347,957 $181,455 $ 96,548
---------- ---------- ---------- -------- --------
Shares acquired:
Shares............. 47,658 35,804 76,676 36,659 37,841
Amount............. $1,779,325 $1,005,791 $3,275,148 $243,327 $212,007
Shares received for
reinvestment of
dividends:
Shares............. 3,160 2,333 9,031 2,538 3,161
Amount............. $ 115,911 $ 61,111 $ 366,308 $ 16,471 $ 17,306
Shares redeemed:
Shares............. (11,824) (8,031) (22,699) (11,910) (9,961)
Amount............. $ (403,167) $ (213,828) $ (873,457) $(79,021) $(55,495)
---------- ---------- ---------- -------- --------
Net change:
Shares............. 38,994 30,106 63,008 27,287 31,041
Amount............. $1,492,069 $ 853,074 $2,767,999 $180,777 $173,818
---------- ---------- ---------- -------- --------
Shares end of year:
Shares............. 72,507 38,432 120,665 54,995 48,169
Amount............. $2,667,340 $1,074,770 $5,115,956 $362,232 $270,366
========== ========== ========== ======== ========
</TABLE>
F-37
<PAGE> 109
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of
Mutual Life Insurance Company of New York and the
Contractholders of MONY Variable Account L:
We have audited the accompanying statements of assets and liabilities of
MONY Variable Account L (comprising, respectively, the Variable Life's Equity
Growth, Equity Income, Intermediate Term Bond, Long Term Bond, Diversified and
Money Market Subaccounts and the Variable Universal Life's Intermediate Term
Bond, Long Term Bond, Money Market, Equity, Small Cap, Managed, International
Growth, High Yield Bond and Government Securities Subaccounts) as of December
31, 1997; for the Variable Life's Subaccounts, the related statements of
operations for the year then ended and the statements of changes in net assets
for each of the two years in the period then ended; and for the Variable
Universal Life's Subaccounts, the related statements of operations of the
Intermediate Term Bond, Long Term Bond, Money Market, Equity, Small Cap,
Managed, International Growth, High Yield Bond Subaccounts for the year then
ended and for the Government Securities Subaccount for the period March 24, 1997
(commencement of operations) to December 31, 1997, and the statements of changes
in net assets for the Intermediate Term Bond, Long Term Bond, and High Yield
Subaccounts for which the period is from December 6, 1996 (commencement of
operations) to December 31, 1996 and the year ended December 31, 1997, the Money
Market Subaccount for which the period is from October 17, 1996 (commencement of
operations) to December 31, 1996 and the year ended December 31, 1997, the
Equity Subaccount for which the period is from November 17, 1996 (commencement
of operations) to December 31, 1996 and the year ended December 31, 1997, the
Small Cap Subaccount for which the period is from November 1, 1996 (commencement
of operations) to December 31, 1996 and the year ended December 31, 1997, the
Managed Subaccount for which the period is from October 28, 1996 (commencement
of operations) to December 31, 1996 and the year ended December 31, 1997, the
International Growth Subaccount for which the period is from November 21, 1996
(commencement of operations) to December 31, 1996 and the year ended December
31, 1997, and the Government Securities Subaccount for which the period is from
March 24, 1997 (commencement of operations) to December 31, 1997. These
financial statements are the responsibility of MONY's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY Variable Account L as of December 31, 1997, the
results of their operations and the changes in their net assets for each of the
periods referred to above, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 11, 1998
F-38
<PAGE> 110
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)............. $ 59,712 $ 34,880 $ 6,642 $ 12,694 $ 57,696 $ 30,472
======== ======== ======== ======== ======== ========
Investments in MONY Series Fund, Inc. at
net asset value (Note 2)............... $ 78,828 $ 43,065 $ 7,061 $ 14,885 $ 80,473 $ 30,472
-------- -------- -------- -------- -------- --------
Net assets............................... $ 78,828 $ 43,065 $ 7,061 $ 14,885 $ 80,473 $ 30,472
======== ======== ======== ======== ======== ========
Net assets consist of:
Contractholders' net payments.......... $ 73,062 $ 45,390 $ 9,167 $ 16,264 $ 66,996 $ 51,361
Cost of insurance withdrawals (Note
3).................................. (52,273) (32,888) (12,767) (35,492) (36,906) (46,167)
Undistributed net investment income.... 14,096 12,767 9,152 26,685 22,898 25,278
Accumulated net realized gain on
investments......................... 24,827 9,611 1,090 5,237 4,708 0
Unrealized appreciation of
investments......................... 19,116 8,185 419 2,191 22,777 0
-------- -------- -------- -------- -------- --------
Net assets............................... $ 78,828 $ 43,065 $ 7,061 $ 14,885 $ 80,473 $ 30,472
======== ======== ======== ======== ======== ========
Number of units outstanding*............. 1,811 962 331 571 2,366 1,767
-------- -------- -------- -------- -------- --------
Net asset value per unit outstanding*.... $ 43.52 $ 44.75 $ 21.36 $ 26.07 $ 34.02 $ 17.25
======== ======== ======== ======== ======== ========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-39
<PAGE> 111
MONY
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)....... $12,769 $2,176 $39,273 $169,650 $1,175,271 $221,696 $2,347,957
======= ====== ======= ======== ========== ======== ==========
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2)................... $ 0 $ 0 $ 0 $ 0 $1,175,951 $222,289 $2,351,256
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................... 13,071 2,253 41,575 169,650 0 0 0
Amount due from MONY............... 0 0 0 11,137 338 79 510
Amount due from MONY Series Fund,
Inc.............................. 0 0 0 8 0 0 0
Amount due from Enterprise
Accumulation Trust............... 0 0 0 0 292 114 3,704
------- ------ ------- -------- ---------- -------- ----------
Total assets............... 13,071 2,253 41,575 180,795 1,176,581 222,482 2,355,470
------- ------ ------- -------- ---------- -------- ----------
LIABILITIES
Amount due to MONY................. 0 0 0 8 292 114 3,704
Amount due to MONY Series Fund,
Inc.............................. 0 0 0 11,137 0 0 0
Amount due to Enterprise
Accumulation Trust............... 0 0 0 0 338 79 510
------- ------ ------- -------- ---------- -------- ----------
Total liabilities.......... 0 0 0 11,145 630 193 4,214
------- ------ ------- -------- ---------- -------- ----------
Net assets......................... $13,071 $2,253 $41,575 $169,650 $1,175,951 $222,289 $2,351,256
======= ====== ======= ======== ========== ======== ==========
Net assets consist of:
Contractholders' net payments.... $13,868 $2,780 $40,624 $177,277 $1,201,571 $219,317 $2,403,572
Cost of insurance withdrawals
(Note 3)....................... (1,099) (631) (2,199) (10,640) (95,632) (27,296) (210,449)
Undistributed/accumulated net
investment income (loss)....... (32) 0 890 3,013 36,569 18,382 100,018
Accumulated net realized gain
(loss) on investments.......... 32 27 (42) 0 32,763 11,293 54,816
Unrealized appreciation
(depreciation) of
investments.................... 302 77 2,302 0 680 593 3,299
------- ------ ------- -------- ---------- -------- ----------
Net assets......................... $13,071 $2,253 $41,575 $169,650 $1,175,951 $222,289 $2,351,256
======= ====== ======= ======== ========== ======== ==========
Number of units outstanding*....... 1,234 211 3,719 16,142 93,188 14,918 178,819
------- ------ ------- -------- ---------- -------- ----------
Net asset value per unit
outstanding*..................... $ 10.59 $10.69 $ 11.18 $ 10.51 $ 12.62 $ 14.90 $ 13.15
======= ====== ======= ======== ========== ======== ==========
<CAPTION>
VARIABLE UNIVERSAL LIFE
--------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
------------- ----------
<S> <C> <C>
ASSETS
Investments at cost (Note 4)....... $181,455 $96,548
======== =======
Investments in Enterprise
Accumulation Trust at net asset
value (Note 2)................... $171,237 $97,797
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................... 0 0
Amount due from MONY............... 121 72
Amount due from MONY Series Fund,
Inc.............................. 0 0
Amount due from Enterprise
Accumulation Trust............... 252 128
-------- -------
Total assets............... 171,610 97,997
-------- -------
LIABILITIES
Amount due to MONY................. 252 128
Amount due to MONY Series Fund,
Inc.............................. 0 0
Amount due to Enterprise
Accumulation Trust............... 121 72
-------- -------
Total liabilities.......... 373 200
-------- -------
Net assets......................... $171,237 $97,797
======== =======
Net assets consist of:
Contractholders' net payments.... $183,398 $97,316
Cost of insurance withdrawals
(Note 3)....................... (12,894) (6,828)
Undistributed/accumulated net
investment income (loss)....... 4,481 4,369
Accumulated net realized gain
(loss) on investments.......... 6,470 1,691
Unrealized appreciation
(depreciation) of
investments.................... (10,218) 1,249
-------- -------
Net assets......................... $171,237 $97,797
======== =======
Number of units outstanding*....... 16,311 8,584
-------- -------
Net asset value per unit
outstanding*..................... $ 10.50 $ 11.39
======== =======
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-40
<PAGE> 112
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
VARIABLE LIFE
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.......................... $ 5,414 $ 4,188 $ 384 $ 836 $ 5,526 $ 1,578
Mortality and expense risk charges (Note
3)..................................... (443) (251) (41) (84) (452) (184)
------- ------- ----- ------- ------- -------
Net investment income.................... 4,971 3,937 343 752 5,074 1,394
------- ------- ----- ------- ------- -------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales.................... 14,275 12,118 504 1,123 3,828 2,858
Cost of shares sold.................... (8,731) (8,787) (477) (1,057) (2,343) (2,858)
------- ------- ----- ------- ------- -------
Net realized gain on investments......... 5,544 3,331 27 66 1,485 0
Net increase in unrealized appreciation
of investments......................... 7,657 3,274 97 884 9,311 0
------- ------- ----- ------- ------- -------
Net realized and unrealized gain on
investments............................ 13,201 6,605 124 950 10,796 0
------- ------- ----- ------- ------- -------
Net increase in net assets resulting from
operations............................. $18,172 $10,542 $ 467 $ 1,702 $15,870 $ 1,394
======= ======= ===== ======= ======= =======
</TABLE>
See notes to financial statements.
F-41
<PAGE> 113
MONY
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ------------ ------------ ------------ ------------
FOR THE PERIOD FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
MARCH 24, 1997** ENDED ENDED ENDED ENDED
THROUGH DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
DECEMBER 31, 1997 1997 1997 1997 1997
----------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Dividend income........................ $ 0 $ 9 $ 1,064 $ 3,211 $ 38,940
Mortality and expense risk charges
(Note 3)............................. (32) (9) (172) (467) (3,058)
------- ------- ------- ----------- ---------
Net investment income (loss)........... (32) 0 892 2,744 35,882
------- ------- ------- ----------- ---------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales.................. 1,236 1,178 3,178 1,869,084 231,222
Cost of shares sold.................. (1,204) (1,151) (3,220) (1,869,084) (198,296)
------- ------- ------- ----------- ---------
Net realized gain (loss) on
investments.......................... 32 27 (42) 0 32,926
Net increase (decrease) in unrealized
appreciation of investments.......... 302 77 2,367 0 1,377
------- ------- ------- ----------- ---------
Net realized and unrealized gain (loss)
on investments....................... 334 104 2,325 0 34,303
------- ------- ------- ----------- ---------
Net increase in net assets resulting
from operations...................... $ 302 $ 104 $ 3,217 $ 2,744 $ 70,185
======= ======= ======= =========== =========
<CAPTION>
VARIABLE UNIVERSAL LIFE
----------------------------------------------------------
INTERNATIONAL HIGH YIELD
SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------ ------------- ------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1997 1997
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
Dividend income........................ $ 18,805 $ 106,305 $ 5,055 $ 4,750
Mortality and expense risk charges
(Note 3)............................. (684) (7,473) (624) (382)
-------- --------- -------- --------
Net investment income (loss)........... 18,121 98,832 4,431 4,368
-------- --------- -------- --------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales.................. 53,290 428,261 55,974 43,396
Cost of shares sold.................. (42,001) (373,390) (49,504) (41,705)
-------- --------- -------- --------
Net realized gain (loss) on
investments.......................... 11,289 54,871 6,470 1,691
Net increase (decrease) in unrealized
appreciation of investments.......... 583 5,802 (10,379) 1,248
-------- --------- -------- --------
Net realized and unrealized gain (loss)
on investments....................... 11,872 60,673 (3,909) 2,939
-------- --------- -------- --------
Net increase in net assets resulting
from operations...................... $ 29,993 $ 159,505 $ 522 $ 7,307
======== ========= ======== ========
</TABLE>
---------------
** Commencement of operations.
See notes to financial statements.
F-42
<PAGE> 114
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE LIFE
--------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM LONG TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT BOND SUBACCOUNT
------------------- ------------------ ----------------- -----------------
1997 1996 1997 1996 1997 1996 1997 1996
-------- -------- -------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss)..... $ 4,971 $ (381) $ 3,937 $ (128) $ 343 $ (39) $ 752 $ (80)
Net realized gain on
investments.................... 5,544 6,197 3,331 1,851 27 19 66 33
Net increase (decrease) in
unrealized appreciation of
investments.................... 7,657 6,121 3,274 3,722 97 218 884 (93)
-------- -------- -------- ------- ------ ------ ------- -------
Net increase (decrease) in net
assets resulting from
operations....................... 18,172 11,937 10,542 5,445 467 198 1,702 (140)
-------- -------- -------- ------- ------ ------ ------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 15,902 7,362 10,731 6,575 407 372 618 608
Net asset value of units redeemed
or used to meet contract
obligations.................... (13,078) (20,999) (11,293) (8,207) (463) (432) (1,039) (985)
-------- -------- -------- ------- ------ ------ ------- -------
Net increase (decrease) from unit
transactions..................... 2,824 (13,637) (562) (1,632) (56) (60) (421) (377)
-------- -------- -------- ------- ------ ------ ------- -------
Net increase (decrease) in net
assets........................... 20,996 (1,700) 9,980 3,813 411 138 1,281 (517)
Net assets beginning of year....... 57,832 59,532 33,085 29,272 6,650 6,512 13,604 14,121
-------- -------- -------- ------- ------ ------ ------- -------
Net assets end of year*............ $ 78,828 $ 57,832 $ 43,065 $33,085 $7,061 $6,650 $14,885 $13,604
======== ======== ======== ======= ====== ====== ======= =======
Units outstanding beginning of
year............................. 1,726 2,137 965 1,016 333 336 588 605
Units issued during the year....... 428 241 282 213 20 19 26 28
Units redeemed during the year..... (343) (652) (285) (264) (22) (22) (43) (45)
-------- -------- -------- ------- ------ ------ ------- -------
Units outstanding end of year...... 1,811 1,726 962 965 331 333 571 588
======== ======== ======== ======= ====== ====== ======= =======
---------------
* Includes undistributed net
investment income of: $ 14,096 $ 9,125 $ 12,767 $ 8,830 $9,152 $8,809 $26,685 $25,933
<CAPTION>
VARIABLE LIFE
-------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
----------------- -----------------
1997 1996 1997 1996
------- ------- ------- -------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss)..... $ 5,074 $ (373) $ 1,394 $ 1,372
Net realized gain on
investments.................... 1,485 1,052 0 0
Net increase (decrease) in
unrealized appreciation of
investments.................... 9,311 7,350 0 0
------- ------- ------- -------
Net increase (decrease) in net
assets resulting from
operations....................... 15,870 8,029 1,394 1,372
------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units.......................... 2,162 2,620 967 184
Net asset value of units redeemed
or used to meet contract
obligations.................... (3,376) (3,238) (2,652) (2,285)
------- ------- ------- -------
Net increase (decrease) from unit
transactions..................... (1,214) (618) (1,685) (2,101)
------- ------- ------- -------
Net increase (decrease) in net
assets........................... 14,656 7,411 (291) (729)
Net assets beginning of year....... 65,817 58,406 30,763 31,492
------- ------- ------- -------
Net assets end of year*............ $80,473 $65,817 $30,472 $30,763
======= ======= ======= =======
Units outstanding beginning of
year............................. 2,404 2,427 1,867 1,997
Units issued during the year....... 69 103 59 12
Units redeemed during the year..... (107) (126) (159) (142)
------- ------- ------- -------
Units outstanding end of year...... 2,366 2,404 1,767 1,867
======= ======= ======= =======
---------------
* Includes undistributed net
investment income of: $22,898 $17,824 $25,278 $23,884
</TABLE>
See notes to financial statements.
F-43
<PAGE> 115
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------------------------
GOVERNMENT INTERMEDIATE TERM LONG TERM MONEY
SECURITIES BOND BOND MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- ----------------------------- ----------------------------- ------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MARCH 24, FOR THE YEAR DECEMBER 6, FOR THE YEAR DECEMBER 6, FOR THE YEAR
1997** THROUGH ENDED 1996** THROUGH ENDED 1996** THROUGH ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1997 1996 1997 1996 1997
-------------- ------------ -------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss).... $ (32) $ 0 $ 0 $ 892 $ (2) $ 2,744
Net realized gain (loss) on
investments................... 32 27 0 (42) 0 0
Net increase (decrease) in
unrealized appreciation of
investments................... 302 77 0 2,367 (65) 0
------- ------ --- ------- ------- -----------
Net increase (decrease) in net
assets resulting from
operations...................... 302 104 0 3,217 (67) 2,744
------- ------ --- ------- ------- -----------
From unit transactions:
Net proceeds from the issuance
of units...................... 13,868 2,923 43 28,471 12,153 1,828,075
Net asset value of units
redeemed or used to meet
contract obligations.......... (1,099) (813) (4) (2,195) (4) (1,728,100)
------- ------ --- ------- ------- -----------
Net increase from unit
transactions.................... 12,769 2,110 39 26,276 12,149 99,975
------- ------ --- ------- ------- -----------
Net increase in net assets........ 13,071 2,214 39 29,493 12,082 102,719
Net assets beginning of period.... 0 39 0 12,082 0 66,931
------- ------ --- ------- ------- -----------
Net assets end of period*......... $13,071 $2,253 $39 $41,575 $12,082 $ 169,650
======= ====== === ======= ======= ===========
Units outstanding beginning of
period.......................... 0 4 0 1,217 0 6,655
Units issued during the period.... 1,336 286 4 2,712 1,217 177,168
Units redeemed during the
period.......................... (102) (79) 0 (210) 0 (167,681)
------- ------ --- ------- ------- -----------
Units outstanding end of period... 1,234 211 4 3,719 1,217 16,142
======= ====== === ======= ======= ===========
---------------
* Includes
undistributed/accumulated net
investment income (loss) of: $ (32) $ 0 $ 0 $ 890 $ (2) $ 3,013
** Commencement of operations.
<CAPTION>
VARIABLE UNIVERSAL LIFE
----------------------------------------------
MONEY
MARKET EQUITY
SUBACCOUNT SUBACCOUNT
-------------- -----------------------------
FOR THE PERIOD FOR THE PERIOD
OCTOBER 17, FOR THE YEAR NOVEMBER 17,
1996** THROUGH ENDED 1996** THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 1997 1996
-------------- ------------ --------------
<S> <C> <C> <C>
From operations:
Net investment income (loss).... $ 269 $ 35,882 $ 687
Net realized gain (loss) on
investments................... 0 32,926 (163)
Net increase (decrease) in
unrealized appreciation of
investments................... 0 1,377 (697)
-------- ---------- -------
Net increase (decrease) in net
assets resulting from
operations...................... 269 70,185 (173)
-------- ---------- -------
From unit transactions:
Net proceeds from the issuance
of units...................... 221,062 1,163,129 54,842
Net asset value of units
redeemed or used to meet
contract obligations.......... (154,400) (111,523) (509)
-------- ---------- -------
Net increase from unit
transactions.................... 66,662 1,051,606 54,333
-------- ---------- -------
Net increase in net assets........ 66,931 1,121,791 54,160
Net assets beginning of period.... 0 54,160 0
-------- ---------- -------
Net assets end of period*......... $ 66,931 $1,175,951 $54,160
======== ========== =======
Units outstanding beginning of
period.......................... 0 5,358 0
Units issued during the period.... 22,031 97,340 5,409
Units redeemed during the
period.......................... (15,376) (9,510) (51)
-------- ---------- -------
Units outstanding end of period... 6,655 93,188 5,358
======== ========== =======
---------------
* Includes
undistributed/accumulated net
investment income (loss) of: $ 269 $ 36,569 $ 687
** Commencement of operations.
</TABLE>
See notes to financial statements.
F-44
<PAGE> 116
MONY
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
-------------------------------------------------------------
SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT
----------------------------- -----------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR NOVEMBER 1, FOR THE YEAR OCTOBER 28,
ENDED 1996** THROUGH ENDED 1996** THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996
------------ -------------- ------------ --------------
<S> <C> <C> <C> <C>
From operations:
Net investment income............ $ 18,121 $ 261 $ 98,832 $ 1,186
Net realized gains (losses) on
investments.................... 11,289 4 54,871 (55)
Net increase (decrease) in
unrealized appreciation of
investments.................... 583 10 5,802 (2,503)
-------- ------- ---------- --------
Net increase (decrease) in net
assets resulting from
operations....................... 29,993 275 159,505 (1,372)
-------- ------- ---------- --------
From unit transactions:
Net proceeds from the issuance of
units.......................... 210,986 16,647 2,299,829 129,958
Net asset value of units redeemed
or used to meet contract
obligations.................... (35,444) (168) (235,234) (1,430)
-------- ------- ---------- --------
Net increase from unit
transactions..................... 175,542 16,479 2,064,595 128,528
-------- ------- ---------- --------
Net increase in net assets......... 205,535 16,754 2,224,100 127,156
Net assets beginning of period..... 16,754 0 127,156 0
-------- ------- ---------- --------
Net assets end of period*.......... $222,289 $16,754 $2,351,256 $127,156
======== ======= ========== ========
Units outstanding beginning of
period........................... 1,611 0 11,951 0
Units issued during the period..... 15,917 1,628 185,804 12,086
Units redeemed during the period... (2,610) (17) (18,936) (135)
-------- ------- ---------- --------
Units outstanding end of period.... 14,918 1,611 178,819 11,951
======== ======= ========== ========
---------------
* Includes
undistributed/accumulated net
investment income (loss) of: $ 18,382 $ 261 $ 100,018 $ 1,186
** Commencement of operations.
<CAPTION>
VARIABLE UNIVERSAL LIFE (CONTINUED)
-------------------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
----------------------------- -----------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR NOVEMBER 21, FOR THE YEAR DECEMBER 6,
ENDED 1996** THROUGH ENDED 1996** THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996
------------ -------------- ------------ --------------
<S> <C> <C> <C> <C>
From operations:
Net investment income............ $ 4,431 $ 50 $ 4,368 $ 1
Net realized gains (losses) on
investments.................... 6,470 0 1,691 0
Net increase (decrease) in
unrealized appreciation of
investments.................... (10,379) 161 1,248 1
-------- ------- ------- ----
Net increase (decrease) in net
assets resulting from
operations....................... 522 211 7,307 2
-------- ------- ------- ----
From unit transactions:
Net proceeds from the issuance of
units.......................... 175,743 14,259 98,004 392
Net asset value of units redeemed
or used to meet contract
obligations.................... (19,488) (10) (7,883) (25)
-------- ------- ------- ----
Net increase from unit
transactions..................... 156,255 14,249 90,121 367
-------- ------- ------- ----
Net increase in net assets......... 156,777 14,460 97,428 369
Net assets beginning of period..... 14,460 0 369 0
-------- ------- ------- ----
Net assets end of period*.......... $171,237 $14,460 $97,797 $369
======== ======= ======= ====
Units outstanding beginning of
period........................... 1,439 0 37 0
Units issued during the period..... 16,654 1,440 9,272 39
Units redeemed during the period... (1,782) (1) (725) (2)
-------- ------- ------- ----
Units outstanding end of period.... 16,311 1,439 8,584 37
======== ======= ======= ====
---------------
* Includes
undistributed/accumulated net
investment income (loss) of: $ 4,481 $ 50 $ 4,369 $ 1
** Commencement of operations.
</TABLE>
See notes to financial statements.
F-45
<PAGE> 117
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY Variable Account L (the "Variable Account") is a separate investment
account established on November 28, 1990 by The Mutual Life Insurance Company of
New York ("MONY"), under the laws of the State of New York.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY's other assets and, at present, is
used only to support Variable Life Insurance policies and Variable Universal
Life Insurance policies. These policies are issued by MONY.
There are currently fifteen subaccounts within the Variable Account, and
each invests only in a corresponding portfolio of the MONY Series Fund, Inc.
(the "Fund") or the Enterprise Accumulation Trust ("Enterprise") (collectively,
the "Funds"). The subaccounts of the Variable Universal Life commenced
operations during 1996 and 1997. The Funds are registered under the 1940 Act as
open end, diversified, management investment companies.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise are contained on pages 68 to 102 and 105 to 142,
respectively, and should be read in conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective portfolios of the Funds
is stated at value which is the net asset value of the Funds. Net asset values
are based upon market valuations of the securities held in each of the
corresponding portfolios of the Funds. For the Money Market Portfolios, the net
asset values are based on amortized cost of the securities held which
approximates value.
Taxes:
MONY is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY does not expect, based
upon current tax law, to incur any income tax burden upon the earnings or
realized capital gains attributable to the Variable Account. Based on this
expectation, no charges are currently being deducted from the the Variable
Account for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY is the legal owner of the assets of the Variable Account.
Policy premiums received from MONY by the Variable Account represent gross
policy premiums recorded by MONY less deductions retained as compensation for
certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted monthly from the cash
value of the contract to compensate MONY. These deductions are treated as
contractholder redemptions by the Variable Account. The amount deducted for all
subaccounts for 1997 aggregated $382,844.
MONY receives from the Variable Account the amounts deducted for mortality
and expense risks at an annual rate of .60 percent (for the Variable Life
Subaccounts) and .75 percent (for the Variable Universal
F-46
<PAGE> 118
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Life Subaccounts) of aggregate average daily net assets. As MONY America, a
wholly-owned subsidiary of MONY, acts as investment adviser to the Fund, it
receives amounts paid by the Fund for those services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in Variable Life at cost, at December 31, 1997 consist of the
following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
--------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares............................. 1,904 1,412 607 1,059 3,658 30,763
Amount............................. $46,373 $28,174 $6,328 $12,297 $52,351 $30,763
------- ------- ------ ------- ------- -------
Shares acquired:
Shares............................. 508 455 38 49 112 989
Amount............................. $16,656 $11,305 $ 407 $ 618 $ 2,162 $ 989
Shares received for reinvestment of
dividends:
Shares............................. 192 195 37 71 331 1,578
Amount............................. $ 5,414 $ 4,188 $ 384 $ 836 $ 5,526 $ 1,578
Shares redeemed:
Shares............................. (420) (472) (47) (88) (197) (2,858)
Amount............................. $(8,731) $(8,787) $ (477) $(1,057) $(2,343) $(2,858)
------- ------- ------ ------- ------- -------
Net change:
Shares............................. 280 178 28 32 246 (291)
Amount............................. $13,339 $ 6,706 $ 314 $ 397 $ 5,345 $ (291)
------- ------- ------ ------- ------- -------
Shares end of year:
Shares............................. 2,184 1,590 635 1,091 3,904 30,472
Amount............................. $59,712 $34,880 $6,642 $12,694 $57,696 $30,472
======= ======= ====== ======= ======= =======
</TABLE>
F-47
<PAGE> 119
MONY
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at December 31, 1997
consist of the following:
<TABLE>
<CAPTION>
MONY SERIES FUND, INC.
---------------------------------------------------
GOVERNMENT INTERMEDIATE LONG TERM MONEY
SECURITIES TERM BOND BOND MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ------------ --------- -----------
<S> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 0 4 941 66,931
Amount............. $ 0 $ 39 $12,147 $ 66,931
------- ------- ------- -----------
Shares acquired:
Shares............. 1,316 308 2,265 1,968,592
Amount............. $13,973 $ 3,279 $29,282 $ 1,968,592
Shares received for
reinvestment of
dividends:
Shares............. 0 1 91 3,211
Amount............. $ 0 $ 9 $ 1,064 $ 3,211
Shares redeemed:
Shares............. (115) (110) (249) (1,869,084)
Amount............. $(1,204) $(1,151) $(3,220) $(1,869,084)
------- ------- ------- -----------
Net change:
Shares............. 1,201 199 2,107 102,719
Amount............. $12,769 $ 2,137 $27,126 $ 102,719
------- ------- ------- -----------
Shares end of year:
Shares............. 1,201 203 3,048 169,650
Amount............. $12,769 $ 2,176 $39,273 $ 169,650
======= ======= ======= ===========
<CAPTION>
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- --------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Shares beginning of
year:
Shares............. 1,877 829 3,706 2,390 67
Amount............. $ 54,857 $ 16,744 $ 129,659 $ 14,299 $ 368
---------- -------- ---------- -------- --------
Shares acquired:
Shares............. 37,281 8,828 61,893 32,707 23,909
Amount............. $1,279,770 $228,148 $2,485,383 $211,605 $133,135
Shares received for
reinvestment of
dividends:
Shares............. 1,110 704 2,607 818 840
Amount............. $ 38,940 $ 18,805 $ 106,305 $ 5,055 $ 4,750
Shares redeemed:
Shares............. (6,755) (2,035) (10,549) (8,207) (7,688)
Amount............. $ (198,296) $(42,001) $ (373,390) $(49,504) $(41,705)
---------- -------- ---------- -------- --------
Net change:
Shares............. 31,636 7,497 53,951 25,318 17,061
Amount............. $1,120,414 $204,952 $2,218,298 $167,156 $ 96,180
---------- -------- ---------- -------- --------
Shares end of year:
Shares............. 33,513 8,326 57,657 27,708 17,128
Amount............. $1,175,271 $221,696 $2,347,957 $181,455 $ 96,548
========== ======== ========== ======== ========
</TABLE>
F-48
<PAGE> 120
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------- ------------
($ IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturity securities available for sale, at fair
value.................................................. $ 3,083.5 $ 3,066.7
Equity securities available for sale, at fair value....... 537.5 519.8
Mortgage loans on real estate............................. 1,119.3 1,270.4
Policy loans.............................................. 78.7 69.1
Real estate to be disposed of............................. 235.7 300.9
Real estate held for investment........................... 46.6 46.2
Other invested assets..................................... 90.0 37.9
--------- ---------
5,191.3 5,311.0
========= =========
Cash and cash equivalents................................... 278.5 232.6
Accrued investment income................................... 76.8 74.6
Amounts due from reinsurers................................. 485.2 488.0
Deferred policy acquisition costs........................... 636.4 558.3
Other assets................................................ 529.9 348.3
Assets transferred in Group Pension Transaction (Note 4).... 4,980.8 5,109.8
Separate account assets..................................... 6,103.0 6,398.3
Closed Block assets (Note 6)................................ 6,218.2 6,182.1
--------- ---------
Total assets........................................... $24,500.1 $24,703.0
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Future policy benefits...................................... $ 972.7 $ 954.3
Policyholders' account balances............................. 1,908.7 1,942.9
Other policyholders' liabilities............................ 117.0 120.4
Amounts due to reinsurers................................... 87.4 83.8
Accounts payable and other liabilities...................... 574.0 580.9
Short-term debt............................................. 52.8 53.4
Long-term debt.............................................. 217.0 245.4
Current federal income taxes payable........................ 130.7 147.4
Deferred federal income taxes............................... 52.1 (16.9)
Liabilities transferred in Group Pension Transaction (Note
4)........................................................ 4,968.7 5,099.1
Separate account liabilities................................ 6,100.6 6,396.2
Closed Block liabilities (Note 6)........................... 7,310.3 7,303.3
--------- ---------
Total liabilities...................................... $22,492.0 $22,910.2
========= =========
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........................................... 397.5 256.1
Accumulated other comprehensive (loss)...................... (20.5) (29.4)
--------- ---------
Total shareholders' equity............................. 2,008.1 1,792.8
--------- ---------
Total liabilities and shareholders' equity............. $24,500.1 $24,703.0
========= =========
</TABLE>
See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-49
<PAGE> 121
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
FOR THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
--------- ---------
($ IN MILLIONS, EXCEPT
SHARE DATA AND PER
SHARE AMOUNTS)
<S> <C> <C>
REVENUES:
Premiums.................................................... $ 26.5 $ 20.8
Universal life and investment-type product policy fees...... 51.2 47.8
Net investment income....................................... 130.8 123.9
Net realized (losses)/gains on investments.................. 20.3 22.5
Group Pension Profits (Note 4).............................. 10.8 21.5
Other income................................................ 51.7 47.2
Contribution from the Closed Block (Note 6)................. 10.7 9.5
------ ------
302.0 293.2
------ ------
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 46.0 34.9
Interest credited to policyholders' account balances........ 26.7 26.4
Amortization of deferred policy acquisition costs........... 16.0 21.9
Dividends to policyholders.................................. 0.6 0.7
Other operating costs and expenses.......................... 111.5 164.8
------ ------
200.8 248.7
------ ------
Income before income taxes and extraordinary item........... 101.2 44.5
Income tax expense.......................................... 33.6 15.3
------ ------
Income before extraordinary item............................ 67.6 29.2
Extraordinary loss, net of tax.............................. 1.0 1.9
------ ------
Net income.................................................. 66.6 27.3
Other comprehensive loss, net............................... 34.7 (28.5)
------ ------
Comprehensive income/(loss)................................. $101.3 $ (1.2)
====== ======
</TABLE>
See accompanying notes to unaudited interim condensed consolidated financial
statements
F-50
<PAGE> 122
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
----------- ----------
($ IN MILLIONS, EXCEPT
SHARE DATA AND PER SHARE
AMOUNTS)
<S> <C> <C>
REVENUES:
Premiums.................................................... $ 84.4 $ 65.0
Universal life and investment-type product policy fees...... 157.0 145.7
Net investment income....................................... 514.1 320.7
Net realized gains on investments........................... 36.9 93.1
Group Pension Profits (Note 4).............................. 29.0 47.8
Other income................................................ 172.3 138.9
Contribution from the Closed Block (Note 6)................. 32.1 31.4
-------- -------
1,025.8 842.6
-------- -------
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 126.9 108.3
Interest credited to policyholders' account balances........ 76.6 80.7
Amortization of deferred policy acquisition costs........... 58.8 54.1
Dividends to policyholders.................................. 1.8 1.4
Other operating costs and expenses.......................... 376.3 391.3
-------- -------
640.4 635.8
-------- -------
Income before income taxes and extraordinary item........... 385.4 206.8
Income tax expense.......................................... 131.3 70.7
-------- -------
Income before extraordinary item............................ 254.1 136.1
-------- -------
Extraordinary loss, net of tax.............................. 37.7 1.9
-------- -------
Net income.................................................. 216.4 134.2
-------- -------
Other comprehensive loss, net............................... 8.9 (140.7)
-------- -------
Comprehensive income/(loss)................................. $ 225.3 $ (6.5)
======== =======
</TABLE>
See accompanying notes to unaudited interim condensed consolidated financial
statements
F-51
<PAGE> 123
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN SHAREHOLDERS' EQUITY
NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000
<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, 1999............... $2.5 $1,563.6 $256.1 $(29.4) $ 1,792.8
Capital Contribution..................... 65.0 65.0
Dividends Payable........................ (75.0) (75.0)
Comprehensive income.....................
Net income.......................... 216.4 216.4
Other comprehensive income(1)....... 8.9 8.9
---------
Comprehensive income..................... 225.3
---- -------- ------ ------ ---------
BALANCE, SEPTEMBER 30, 2000.............. $2.5 $1,628.6 $397.5 $(20.5) $2,0080.1
==== ======== ====== ====== =========
</TABLE>
---------------
(1) Represents unrealized losses on investments, net of unrealized gains,
reclassification adjustments, and taxes.
See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-52
<PAGE> 124
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
--------- ---------
($ IN MILLIONS)
<S> <C> <C>
NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES......... $ (100.1) $ 39.3
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales, maturities or repayment of:
Fixed maturities securities............................... 449.6 472.5
Equity securities......................................... 318.2 168.2
Mortgage loans on real estate............................. 353.3 101.3
Real estate............................................... 102.8 257.6
Other invested assets..................................... 1.6 4.6
Acquisitions of investments:
Fixed maturities securities............................... (458.3) (631.8)
Equity securities......................................... (98.2) (105.9)
Mortgage loans on real estate............................. (175.2) (337.8)
Real estate............................................... (36.3) (29.2)
Other invested assets..................................... (37.9) (4.7)
Policy loans, net......................................... (9.6) (28.2)
Other, net................................................ (150.0) 16.0
Property, plant and equipment, net.......................... (28.9) (14.7)
--------- ---------
Net cash provided by/(used in) investing activities......... $ 231.1 $ (132.1)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of debt............................................ 215.0 --
Repayments of debt.......................................... (284.3) (29.2)
Receipts from annuity and universal life policies credited
to policyholder account balances.......................... 1,854.7 1,293.0
Return of policyholder's account balances on annuity and
universal life policies................................... (1,860.5) (1,288.4)
Capital Contribution........................................ 65.0 --
Dividends paid to shareholders.............................. (75.0)
--------- ---------
Net cash (used in) financing activities..................... (85.1) (24.6)
--------- ---------
Net (decrease)/increase in cash and cash equivalents........ 45.9 (117.4)
Cash and cash equivalents, beginning of period.............. 232.6 270.2
--------- ---------
Cash and cash equivalents, end of period.................... $ 278.5 $ 152.8
========= =========
</TABLE>
See accompanying notes to unaudited interim condensed consolidated financial
statements.
F-53
<PAGE> 125
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"
or the "Company"). 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 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 the Company's
U.S. Financial Life Insurance Company ("USFL") subsidiary 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 nine-month periods ended September 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-54
<PAGE> 126
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 last
survivor universal life and last survivor whole life products. 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 September 30, 2000 and December 31,
1999 and for the three-month and nine-month periods ended September 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.
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. Allocations of net investment income and
net
F-55
<PAGE> 127
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 tocertain expenses
relating to the Company's employee benefit plans.
Except for various allocations discussed below, the accounting policies of
the segments are the same as those described in the preparation of the Unaudited
Interim Condensed Consolidated Financial Statements. 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 nonrecurring items to
the segments. In addition, all segment revenues are from external customers.
SEGMENT SUMMARY FINANCIAL INFORMATION
<TABLE>
<CAPTION>
FOR THE THREE-MONTH FOR THE NINE-MONTH
PERIODS ENDED PERIODS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------- ------------------
2000 1999 2000 1999
-------- -------- ------- -------
($ IN MILLIONS)
<S> <C> <C> <C> <C>
PREMIUMS:
Protection Products(1)........................... $ 24.3 $ 19.0 $ 77.6 $ 58.3
Accumulation Products............................ 0.0 (0.2) 0.4 0.6
Other Products................................... 2.2 2.0 6.4 6.1
------ ------ ------ ------
$ 26.5 $ 20.8 $ 84.4 $ 65.0
====== ====== ====== ======
UNIVERSAL LIFE AND INVESTMENT-TYPE PRODUCT POLICY
FEES:
Protection Products.............................. $ 33.8 $ 29.9 $102.3 $ 91.5
Accumulation Products............................ 17.3 17.8 53.8 53.8
Other Products................................... 0.1 0.1 0.9 0.4
------ ------ ------ ------
$ 51.2 $ 47.8 $157.0 $145.7
====== ====== ====== ======
NET INVESTMENT INCOME AND NET REALIZED GAINS
(LOSSES) ON INVESTMENTS:
Protection Products(2)........................... $ 96.1 $ 98.6 $367.7 $276.6
Accumulation Products............................ 30.4 30.1 106.6 91.6
Other Products................................... 17.7 16.5 63.9 44.4
Reconciling amounts.............................. 6.9 1.2 12.8 1.2
------ ------ ------ ------
$151.1 $146.4 $551.0 $413.8
====== ====== ====== ======
OTHER INCOME:
Protection Products(3)(9)........................ $ 25.7 $ 33.5 $ 77.1 $ 88.8
Accumulation Products............................ 29.8 24.1 92.5 68.1
Other Products................................... 16.2 19.4 60.3 57.9
Reconciling amounts.............................. 1.5 1.2 3.5 3.3
------ ------ ------ ------
$ 73.2 $ 78.2 $233.4 $218.1
====== ====== ====== ======
</TABLE>
F-56
<PAGE> 128
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
FOR THE THREE-MONTH FOR THE NINE-MONTH
PERIODS ENDED PERIODS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------- ------------------
2000 1999 2000 1999
-------- -------- ------- -------
($ IN MILLIONS)
<S> <C> <C> <C> <C>
AMORTIZATION OF DEFERRED POLICY ACQUISITION
COSTS:
Protection Products(13).......................... $ 9.2 $ 14.0 $ 37.4 $ 31.3
Accumulation Products............................ 6.8 7.9 21.4 22.8
------ ------ ------ ------
$ 16.0 $ 21.9 $ 58.8 $ 54.1
====== ====== ====== ======
BENEFITS TO POLICYHOLDERS:(4)
Protection Products.............................. $ 46.6 $ 33.7 $124.9 $107.4
Accumulation Products............................ 16.4 17.6 53.4 54.9
Other Products................................... 7.8 7.5 19.5 21.9
Reconciling amounts.............................. 1.9 2.5 5.7 4.8
------ ------ ------ ------
$ 72.7 $ 61.3 $203.5 $189.0
====== ====== ====== ======
DIVIDENDS TO POLICYHOLDERS:
Protection Products.............................. $ 0.0 $ 0.1 $ (0.2) $ (0.7)
Accumulation Products............................ 0.4 0.4 1.2 1.3
Other Products................................... 0.2 0.2 0.8 0.8
------ ------ ------ ------
$ 0.6 $ 0.7 $ 1.8 $ 1.4
====== ====== ====== ======
OTHER OPERATING COSTS AND EXPENSES:
Protection Products.............................. $ 56.0 $ 59.2 $200.4 $190.0
Accumulation Products............................ 26.2 24.7 87.1 75.9
Other Products................................... 24.7 22.0 78.3 66.5
Reconciling amounts.............................. 4.6 58.9 10.5 58.9
------ ------ ------ ------
$111.5 $164.8 $376.3 $391.3
====== ====== ====== ======
INCOME BEFORE INCOME TAXES:
Protection Products.............................. $ 68.1 $ 74.0 $262.2 $187.2
Accumulation Products............................ 27.7 21.2 90.2 59.2
Other Products................................... 3.5 8.3 32.9 19.6
Reconciling amounts.............................. 1.9 (59.0) 0.1 (59.2)
------ ------ ------ ------
$101.2 $ 44.5 $385.4 $206.8
====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
AS OF AS OF
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------- ------------
<S> <C> <C>
ASSETS:(7)
Protection Products(5)(10).................................. $16,505.2 $16,164.5
Accumulation Products....................................... 5,859.6 6,175.0
Other Products.............................................. 1,090.8 1,187.6
Reconciling amounts......................................... 1,044.5 1,175.9
--------- ---------
$24,500.1 $24,703.0
========= =========
DEFERRED POLICY ACQUISITION COSTS:
Protection Products(11)..................................... $ 1,105.0 $ 1,094.9
Accumulation Products....................................... 151.1 153.3
--------- ---------
$ 1,256.1 $ 1,248.2
========= =========
</TABLE>
F-57
<PAGE> 129
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
AS OF AS OF
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------- ------------
<S> <C> <C>
POLICYHOLDERS LIABILITIES:
Protection Products(6)(12).................................. $10,261.8 $10,231.7
Accumulation Products....................................... 1,097.1 1,236.3
Other Products.............................................. 392.2 418.9
Reconciling amounts......................................... 17.5 17.4
--------- ---------
$11,768.6 $11,904.3
========= =========
SEPARATE ACCOUNT LIABILITIES:(7)
Protection Products(8)...................................... $ 3,946.8 $ 3,843.5
Accumulation Products....................................... 4,313.3 4,548.9
Other Products.............................................. 511.1 604.2
Reconciling amounts......................................... 786.2 832.3
--------- ---------
$ 9,557.4 $ 9,828.9
========= =========
</TABLE>
---------------
(1) Excludes $136.0 million and $144.2 million of individual life premiums in
the Closed Block for the three-month periods ended September 30, 2000 and
1999, respectively, and $419.6 million and $448.6 million for the
nine-month periods ended September 30, 2000 and 1999, respectively (see
Note 6).
(2) Excludes net investment income and net realized gains on investments in the
Closed Block of $101.8 million and $96.7 million for the three-month
periods ended September 30, 2000 and 1999, respectively, and $289.9 million
and $288.6 million for the nine-month periods ended September 30, 2000 and
1999, respectively (see Note 6).
(3) Includes Group Pension Profits of $10.8 million and $21.5 million for the
three-month periods ended September 30, 2000 and 1999, respectively, and
$29.0 million and $47.8 million for the nine-month period ended September
30, 2000 and 1999, respectively (see Note 4).
(4) Includes interest credited to policyholders' account balances. Excludes
$150.2 million and $147.6 million of benefits and interest credited to
policyholders' account balances related to the Closed Block for the
three-month periods ended September 30, 2000 and 1999, respectively, and
$456.7 million and $466.0 million for the nine-month periods ended
September 30, 2000 and 1999, respectively (see Note 6).
(5) Includes assets transferred in the Group Pension Transaction of $4,980.8
million and $5,109.8 million as of September 30, 2000 and December 31,
1999, respectively (see Note 4).
(6) Includes policyholder liabilities transferred in the Group Pension
Transaction of $1,500.7 million and $1,645.7 million as of September 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 $3,456.9 million and $3,432.7 million as of September 30,
2000 and December 31, 1999 respectively (see Note 4).
(9) Includes $10.7 million and $9.5 million relating to the Contribution from
the Closed Block for the three-month periods ended September 30, 2000 and
1999, respectively and $32.1 million and $31.4 million for the nine-month
periods ended September 30, 2000 and 1999, respectively (see Note 6).
(10) Includes Closed Block assets of $6,218.2 million and $6,182.1 million as of
September 30, 2000 and December 31, 1999, respectively (see Note 6).
F-58
<PAGE> 130
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
(11) Includes deferred policy acquisition costs allocated to the Closed Block of
$619.7 million and $689.9 million as of September 30, 2000 and December 31,
1999, respectively (see Note 6).
(12) Includes Closed Block policyholders' liabilities of $7,269.5 million and
$7,241.0 million as of September 30, 2000 and December 31, 1999,
respectively (see Note 6).
(13) Excludes $14.7 million and $19.4 million of amortization of deferred policy
acquisition costs related to the Closed Block for the three-month periods
ended September 30, 2000 and 1999, respectively, and $46.6 million and
$54.5 million for the nine-month periods ended September 30, 2000 and 1999,
respectively (see Note 6).
The following is a summary of premiums and universal life and
investment-type product policy fees by product for the three-month and
nine-month periods ended September 30, 2000 and 1999, respectively.
<TABLE>
<CAPTION>
THREE-MONTH NINE-MONTH
PERIODS ENDED PERIODS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------- ---------------
2000 1999 2000 1999
------ ------ ------ ------
($ IN MILLIONS) ($ IN MILLIONS)
<S> <C> <C> <C> <C>
PREMIUMS:
Individual life(1).................................... $24.1 $18.9 $ 77.2 $ 57.9
Group insurance....................................... 2.2 2.0 6.4 6.1
Disability income insurance........................... 0.2 0.1 0.4 0.4
Other................................................. -- (0.2) 0.4 0.6
----- ----- ------ ------
Total....................................... $26.5 $20.8 $ 84.4 $ 65.0
===== ===== ====== ======
UNIVERSAL LIFE AND INVESTMENT-TYPE PRODUCT POLICY
FEES:
Universal life........................................ $17.6 $17.7 $ 52.1 $ 54.4
Variable universal life............................... 12.4 9.2 38.5 25.8
Corporate sponsored variable universal life........... 1.2 0.9 3.4 3.0
Group universal life.................................. 2.6 2.1 8.3 8.3
Individual variable annuities......................... 17.3 17.7 53.6 53.4
Individual fixed annuities............................ 0.1 0.2 1.1 0.8
----- ----- ------ ------
Total....................................... $51.2 $47.8 $157.0 $145.7
===== ===== ====== ======
</TABLE>
---------------
(1) Excludes revenues from individual life in the Closed Block of $136.0 million
and $144.2 million for the three-month periods ended September 30, 2000 and
1999, respectively, and $419.6 million and $448.6 million for the nine-month
periods ended September 30, 2000 and 1999, respectively.
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-59
<PAGE> 131
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-60
<PAGE> 132
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
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------- ------------
($ IN MILLIONS)
<S> <C> <C>
ASSETS:
General Account Fixed Maturities: available for sale, at
estimated fair value (amortized cost; $1,423.7 million and
$1,532.4 million, respectively)........................... $1,411.4 $1,510.0
Mortgage loans on real estate............................. 54.7 98.5
Real estate to be disposed of............................. -- 16.8
Cash and cash equivalents................................. 35.2 25.3
Accrued investment income................................. 22.6 26.5
-------- --------
Total general account assets........................... 1,523.9 1,677.1
Separate account assets..................................... 3,456.9 3,432.7
-------- --------
Total assets........................................... $4,980.8 $5,109.8
======== ========
LIABILITIES:
General Account(1)
Policyholders' account balances........................... $1,500.7 $1,645.7
Other liabilities......................................... 11.1 20.7
-------- --------
Total general account liabilities...................... $1,511.8 $1,666.4
-------- --------
Separate account liabilities(2)............................. $3,456.9 $3,432.7
-------- --------
Total Liabilities...................................... $4,968.7 $5,099.1
======== ========
</TABLE>
---------------
(1) Includes general account liabilities transferred in connection with the
Group Pension Transaction pursuant to indemnity reinsurance of $76.0 million
and $88.9 million as of September 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 $16.8 million
and $20.3 million as of September 30, 2000 and December 31, 1999,
respectively.
F-61
<PAGE> 133
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
FOR THE FOR THE
THREE-MONTH NINE-MONTH
PERIODS ENDED PERIODS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2000 1999 2000 1999
----- ----- ----- -----
($ IN MILLIONS)
<S> <C> <C> <C> <C>
REVENUES:
Product policy fees..................................... $ 7.4 $ 5.4 $19.4 $17.5
Net investment income................................... 27.8 31.6 86.2 98.2
Net realized gains on investments....................... 1.0 11.5 1.6 15.8
----- ----- ----- -----
Total revenues..................................... 36.2 48.5 107.2 131.5
----- ----- ----- -----
BENEFITS AND EXPENSES:
Interest Credited to policyholders' account balances.... 21.7 22.4 64.9 67.9
Other operating costs and expenses...................... 3.7 4.6 13.3 15.8
----- ----- ----- -----
Total benefits and expenses........................ 25.4 27.0 78.2 83.7
----- ----- ----- -----
Group Pension Profits................................. $10.8 $21.5 $29.0 $47.8
===== ===== ===== =====
</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 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, (now known as Defilippo, et al v. The Mutual Life
Insurance Company of New York and MONY Life Insurance Company) 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, and/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 December 20, 1999, the
F-62
<PAGE> 134
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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 New York State Supreme Court has
subsequently reaffirmed that, for purposes of the remaining New York General
Business law claims, the class is now limited to New York purchases only, (and
plaintiffs have appealed this aspect of the ruling), and has further held that
the New York General Business Law claims of all class members whose claims
accrued prior to November 29, 1992 are barred by the applicable statute of
limitations. The Company intends to defend itself vigorously against the sole
remaining claim.
b.) 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, 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 dividend expectations of the closed block, and (ii)
MONY Life 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 MONY Life to increase the assets in
the closed block, as well as unspecified monetary damages, attorneys' fees and
other relief.
In early January 2000, MONY Life and the Superintendent wrote to the
District Court seeking a pre-motion conference preliminary to the filing of a
motion to dismiss the federal complaint on jurisdictional, federal abstention
and timeliness grounds and for failure to state a claim. Following receipt of
those letters, plaintiffs' counsel offered voluntarily to dismiss their
complaint, and a stipulation and order to that effect was thereafter filed and
approved by the court.
On March 27, 2000, plaintiffs filed a new action in New York State Supreme
Court bearing the same caption and naming the same defendants as the previously
filed federal action. The state court complaint differs from the complaint
previously filed in federal court in two primary respects. First, it no longer
asserts a claim for damages against the Superintendent, nor does its prayer for
relief seek entry of an order vacating or modifying the Superintendent's
decision or requiring the Superintendent to direct MONY Life to place additional
assets into the closed block. Rather, it seeks an accounting and an order from
the Court directing MONY Life to transfer additional assets to the closed block.
Second, the new complaint contains claims for breach of contract and
fiduciary duty, as well as new allegations regarding the adequacy of the
disclosures contained in the Policyholder Information Booklet distributed to
policyholders soliciting their approval of the plan of demutualization (which
plaintiffs claim violated both the Insurance Law and MONY Life's fiduciary
duties).
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 MONY Life may ask
the court to require the challenging party to give security for the reasonable
expenses, including attorneys' fees, which may be incurred by MONY Life or the
Superintendent or for which MONY Life may become liable, to which security MONY
Life shall have recourse in such amount as the court shall determine upon the
termination of the action.
F-63
<PAGE> 135
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
MONY Life and the Superintendent have moved to dismiss the state court
complaint in its entirety on a variety of grounds. That motion is fully briefed
and awaiting decision by the court. MONY Life believes that there are
substantial defenses to plaintiffs' claims 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 September 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. There can be no assurance, however, that the present litigation will
not have a material adverse effect on MONY Life.
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 September 30, 2000, the Company had commitments to issue $10.5
million of fixed rate agricultural loans with periodic interest rate reset
dates. The initial interest rates on such loans range from approximately 7.85%
to 9.15%. In addition, the Company had commitments to issue $115.3 million of
fixed rate and floating rate commercial mortgage loans with interest rates
ranging from 7.75% to 9.30%. The Company had commitments outstanding to purchase
private fixed and floating rate maturity securities as of September 30, 2000 of
$145.8 million with interest rates from 7.61% to 10.75%. At September 30, 2000,
the Company had commitments to contribute capital to its equity partnership
investments of $119.5 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, 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.
F-64
<PAGE> 136
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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 Life 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 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-65
<PAGE> 137
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>
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------- ------------
($ IN MILLIONS)
<S> <C> <C>
ASSETS:
Fixed Maturities:
Available for sale, at estimated fair value (amortized
cost; $3,524.2 and $3,589.6, respectively)............. $3,449.8 $3,479.5
Mortgage loans on real restate............................ 539.9 443.0
Policy loans.............................................. 1,181.3 1,199.1
Real estate............................................... 24.0 22.1
Cash and cash equivalents................................. 145.0 111.3
Premiums receivable....................................... 8.8 14.2
Deferred policy acquisition costs......................... 619.7 689.9
Other assets.............................................. 249.7 223.0
-------- --------
Total Closed Block assets.............................. $6,218.2 $6,182.1
======== ========
LIABILITIES:
Future policy benefits.................................... $6,790.1 $6,781.5
Policyholders' account balances........................... 292.4 294.6
Other Policyholders' liabilities.......................... 187.0 164.9
Other liabilities......................................... 40.8 62.3
-------- --------
Total Closed Block liabilities......................... $7,310.3 $7,303.3
======== ========
</TABLE>
<TABLE>
<CAPTION>
FOR THE FOR THE
THREE-MONTH NINE-MONTHS
PERIODS ENDED PERIODS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------- ---------------
2000 1999 2000 1999
------ ------ ------ ------
($ IN MILLIONS)
<S> <C> <C> <C> <C>
REVENUES:
Premiums............................................ $136.0 $144.2 $419.6 $448.6
Net investment income............................... 101.8 96.7 289.9 288.6
Net realized gains (losses) on investments.......... -- -- --
Other income........................................ 0.6 0.4 1.7 1.1
------ ------ ------ ------
Total revenues................................. 238.4 241.3 711.2 738.3
------ ------ ------ ------
BENEFITS AND EXPENSES:
Benefits to policyholders........................... 148.0 145.5 450.2 459.5
Interest credited to policyholders' account
balances.......................................... 2.2 2.1 6.5 6.5
Amortization of deferred policy acquisition costs... 14.7 19.4 46.6 54.5
Dividends to policyholders.......................... 60.4 63.4 169.1 179.8
Other operating costs and expenses.................. 2.4 1.4 6.7 6.6
------ ------ ------ ------
Total benefits and expenses.................... 227.7 231.8 679.1 706.9
------ ------ ------ ------
Contribution from the Closed Block.................. $ 10.7 $ 9.5 $ 32.1 $ 31.4
====== ====== ====== ======
</TABLE>
F-66
<PAGE> 138
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
For the three-month periods ended September 30, 2000 and 1999, there were
$5.6 million and $0.0 million, respectively, in charges for other than temporary
impairments on fixed maturity securities in the Closed Block. For the nine-month
periods ended September 30, 2000 and 1999, there were $10.1 million and $0.0
million, respectively, in charges for other than temporary impairments on fixed
maturity securities in the Closed Block. At September 30, 2000 and December 31,
1999, there were $5.5 million and $0.0 million, respectively, of fixed income
securities that were non-income producing for the twelve months preceding such
dates. At September 30, 2000 and December 31, 1999, there were no non-income
producing mortgage loans for the twelve months preceding such dates in the
Closed Block.
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.
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 $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. In the third
quarter of 2000, the Company repurchased another $6.5 million face amount of the
11.25% Notes.
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 and $1.6 million ($1.0
million after tax) during the third 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
F-67
<PAGE> 139
THE MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
over their carrying value on MONY Life's books at the date of the transaction of
approximately $7.0 million and $51.1 million, respectively. This loss is
reported, net of tax, as an extraordinary item on MONY Life's income statement
for the nine-month period ended September 30, 2000.
8. ACQUISITION OF THE ADVEST GROUP, INC.:
On August 23, 2000, The MONY Group Inc, and The Advest Group, Inc.
("Advest"), entered into a definitive Agreement and Plan of Merger, dated as of
August 23, 2000 (the "merger agreement"), providing, for the acquisition of
Advest by MONY Group Inc.. Advest is a diversified financial services company
providing securities brokerage, trading, investment banking, trust and asset
management services. The merger agreement provides that the value of the
consideration to be received by Advest shareholders will be fixed five days
prior to the transaction closing date using the 10-day average closing price of
MONY Group's shares at that time. Advest stockholders may elect to receive the
consideration in shares of MONY Group common stock, an equivalent value in cash
based upon the average closing price of MONY Group's shares, or a combination of
cash and shares of MONY Group common stock. These elections will then be
adjusted, as necessary, on a pro rata basis, to produce an aggregate
consideration consisting of 49.9% cash and 50.1% MONY Group common stock.
The business combination will be accounted for under the purchase method of
accounting. Accordingly, a portion of the purchase price will be allocated to
net tangible and intangible assets acquired based on their estimated fair
values. The consummation of the merger, which is pending certain regulatory
approvals, is expected to occur on or about December 31, 2000. Details of the
proposed merger, including a copy of the merger agreement has been filed with
the Securities and Exchange Commission on Form S-4 and mailed to all
shareholders.
9. 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.
F-68
<PAGE> 140
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-69
<PAGE> 141
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 $24,899.3
========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
F-70
<PAGE> 142
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<TABLE>
<CAPTION>
1998
PRO FORMA*
1999 1998 1997 (UNAUDITED)
-------- -------- -------- -----------
($ 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-71
<PAGE> 143
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) $1,792.8
==== ======== ========= ======= ========
</TABLE>
See accompanying notes to consolidated financial statements.
F-72
<PAGE> 144
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
--------- --------- ---------
($ 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-73
<PAGE> 145
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-74
<PAGE> 146
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-75
<PAGE> 147
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.
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 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-76
<PAGE> 148
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-77
<PAGE> 149
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-78
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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
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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.
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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
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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:
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,
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.
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, 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
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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>
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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>
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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).
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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
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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 $24.2 million were paid by this plan for the years ended
December 31, 1999, 1998, and 1997, respectively.
The Company also sponsors a non-qualified employee excess pension plan,
which provides both defined benefits and defined contribution accruals in excess
of Internal Revenue Service limits to certain employees. The benefits are based
on years of service and the employees final average annual compensation. Pension
benefits are paid from Company's general accounts.
Postretirement Benefits --
The Company provides certain health care and life insurance benefits for
retired employees and field underwriters. The Company amortizes its unamortized
postretirement transition obligation over a period of twenty years.
Assumed health care cost trend rates typically have a significant effect on
the amounts reported for health care plans. However, under the Company's
postretirement healthcare plan, there is a per capita limit on the Company's
healthcare costs, as a result, a one-percentage point change in the assumed
healthcare cost trend rates would have an immaterial affect on amounts reported.
F-87
<PAGE> 159
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The following presents the change in the benefit obligation, change in plan
assets and other information with respect to the Company's qualified and
non-qualified defined benefit pension plans and other benefits which represents
the Company's postretirement benefit obligation:
<TABLE>
<CAPTION>
PENSION BENEFITS OTHER BENEFITS
---------------- -----------------
1999 1998 1999 1998
------ ------ ------ -------
($ 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 $39.5
million at December 31, 1998, respectively.
F-88
<PAGE> 160
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
PENSION
BENEFITS OTHER BENEFITS
------------ --------------
1999 1998 1999 1998
---- ---- ----- -----
<S> <C> <C> <C> <C>
WEIGHTED-AVERAGE ASSUMPTIONS AS OF DECEMBER 31:
Discount rate........................................... 8.0% 6.75% 8.0% 6.75%
Expected return on plan assets.......................... 10.0% 10.0% -- --
Rate of compensation increase........................... 5.0% 5.0% 5.0% 5.0%
</TABLE>
For measurements purposes, a 11% percent annual rate of increase in the per
capita cost of covered health care benefits was assumed for 1999. The rate was
assumed to decrease gradually to 6% percent for 2010 and remain at that level
thereafter.
Components of net periodic benefit cost for the pension and other
post-retirement plans are as follows:
<TABLE>
<CAPTION>
PENSION BENEFITS OTHER BENEFITS
------------------------ ---------------------
1999 1998 1997 1999 1998 1997
------ ------ ------ ----- ----- -----
($ 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 $9.4 million for the years ended December 31, 1999, 1998 and
1997, respectively.
The Company also has incentive savings plans in which substantially all
employees and career field underwriters are eligible to participate. The Company
matches field underwriter contributions up to 2% of eligible compensation and
may also make an additional profit sharing contribution for non-officer
employees. As with the Employee Excess Plan, the Company also sponsors
non-qualified excess defined contribution plans for both the field underwriter
retirement plan and the incentive savings plan for field underwriters.
F-89
<PAGE> 161
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
8. FEDERAL INCOME TAXES:
The Holding Company files a consolidated federal income tax return with its
life and non-life affiliates, except Sagamore Financial Corporation and its
subsidiaries.
Federal income taxes have been calculated in accordance with the provisions
of the Internal Revenue Code of 1986, as amended. A summary of the Federal
income tax expense (benefit) is presented below:
<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ 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 $57.3
====== ====== =====
</TABLE>
The Company's federal income tax returns for years through 1993 have been
examined by the Internal Revenue Service ("IRS"). No material adjustments were
proposed by the IRS as a result of these examinations. In the opinion of
management, adequate provision has been made for any additional taxes which may
become due with respect to open years.
F-90
<PAGE> 162
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The components of deferred tax liabilities and assets at December 31, 1999
and 1998 are as follows:
<TABLE>
<CAPTION>
1999 1998
------ ------
($ 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-91
<PAGE> 163
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO 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
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-92
<PAGE> 164
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 $33.3 million as of December 31, 1999 and 1998, respectively.
F-93
<PAGE> 165
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,
--------------------------------
1999 1998 1997
-------- -------- --------
($ 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-94
<PAGE> 166
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>
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.
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-95
<PAGE> 167
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 $1.4 million, was recorded for the years ended December 31, 1999,
1998, and 1997, respectively.
There was no real estate included in the AEGON Portfolio which was
non-income producing for the twelve months preceding December 31, 1999, 1998,
and 1997, respectively.
F-96
<PAGE> 168
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
11. INVESTMENT INCOME, REALIZED AND UNREALIZED INVESTMENT GAINS (LOSSES), AND
COMPREHENSIVE INCOME:
Net investment income for the years ended December 31, 1999, 1998 and 1997
was derived from the following sources:
<TABLE>
<CAPTION>
1999 1998 1997
------ ------ ------
($ 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-97
<PAGE> 169
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 $(17.7) million, respectively, relating to the
effect of such amounts on DAC.
F-98
<PAGE> 170
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
12. INVESTMENTS:
Fixed Maturity Securities Available-for-Sale:
The amortized cost, gross unrealized gains and losses, and estimated fair
value of fixed maturity securities available-for-sale as of December 31, 1999
and 1998 are as follows:
<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED ESTIMATED
COST GAINS LOSSES FAIR VALUE
------------------- -------------- -------------- -------------------
1999 1998 1999 1998 1999 1998 1999 1998
-------- -------- ----- ------ ------ ----- -------- --------
($ 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 $1.3 million for the years ended December 31, 1999
and 1998, respectively.
F-99
<PAGE> 171
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The amortized cost and estimated fair value of fixed maturity securities,
by contractual maturity dates (excluding scheduled sinking funds) as of December
31, 1999, are as follows:
<TABLE>
<CAPTION>
1999
-----------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
--------- ----------
($ 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>
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.
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 $4.7 million were realized on these sales,
respectively.
F-100
<PAGE> 172
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
13. MORTGAGE LOANS ON REAL ESTATE AND REAL ESTATE:
Mortgage loans on real estate at December 31, 1999 and 1998 consist of the
following:
<TABLE>
<CAPTION>
1999 1998
-------- --------
($ 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-101
<PAGE> 173
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-102
<PAGE> 174
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-103
<PAGE> 175
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-104
<PAGE> 176
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-105
<PAGE> 177
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 $252.0 million.
F-106
<PAGE> 178
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The Company has significant investments in commercial and agricultural
mortgage loans and real estate (including joint ventures and partnerships). The
locations of property collateralizing mortgage loans and real estate investment
carrying values at December 31, 1999 and 1998 are as follows:
<TABLE>
<CAPTION>
1999 1998
----------------- -----------------
($ 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-107
<PAGE> 179
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-108
<PAGE> 180
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-109
<PAGE> 181
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-110
<PAGE> 182
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-111
<PAGE> 183
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 $3,479.5
======== ========
</TABLE>
Fixed maturity securities that are not due at a single maturity date have
been included in the preceding table in the year of final maturity. Actual
maturities may differ from contractual maturities because borrowers may have the
right to call or prepay obligations with or without call or prepayment
penalties.
Mortgage loans on real estate in the Closed Block at December 31, 1999 and
December 31, 1998 consist of the following:
<TABLE>
<CAPTION>
DECEMBER 31, DECEMBER 31,
1999 1998
------------ ------------
($ 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 $23.6
===== =====
</TABLE>
F-112
<PAGE> 184
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Impaired mortgage loans along with related valuation allowances were as
follows as of December 31, 1999 and December 31, 1998:
<TABLE>
<CAPTION>
1999 1998
------ ------
($ 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>
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".
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 $0.8 million for the respective periods.
21. PRO FORMA INFORMATION (UNAUDITED)
The unaudited pro forma earnings information reported in the statements of
income and comprehensive income give effect to the Transaction as if it occurred
January 1, 1998. Accordingly, pro forma earnings reflect the elimination of
demutualization expenses, which were assumed to have been fully incurred prior
to January 1, 1998, and the elimination of the differential earnings (surplus)
tax applicable to mutual life insurance companies. MONY Life is no longer
subject to the differential earnings (surplus) tax as a stock life insurance
company.
The unaudited pro forma information is provided for informational purposes
only and should not be construed to be indicative of the Company's consolidated
results of operations had the Transaction been consummated on the date assumed,
and does not in any way represent a projection or forecast of the Company's
consolidated results of operations as of any future date or for any future
period.
F-113
<PAGE> 185
MONY LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The pro forma revenues and expenses of the Closed Block for the year ended
December 31, 1998, based on certain estimates and assumptions that management
believes are reasonable, as if the Closed Block had been established on January
1, 1998, are summarized below ($ 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-114
<PAGE> 186
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-115
<PAGE> 187
APPENDIX A
DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
<TABLE>
<CAPTION>
ATTAINED AGE APPLICABLE PERCENTAGE
------------ ---------------------
<S> <C>
40 and Under................................................ 150%
41.......................................................... 143
42.......................................................... 136
43.......................................................... 129
44.......................................................... 122
45.......................................................... 115
46.......................................................... 109
47.......................................................... 103
48.......................................................... 97
49.......................................................... 91
50.......................................................... 85
51.......................................................... 78
52.......................................................... 71
53.......................................................... 64
54.......................................................... 57
55.......................................................... 50
56.......................................................... 46
57.......................................................... 42
58.......................................................... 38
59.......................................................... 34
60.......................................................... 30
61.......................................................... 28
62.......................................................... 26
63.......................................................... 24
64.......................................................... 22
65.......................................................... 20
66.......................................................... 19
67.......................................................... 18
68.......................................................... 17
69.......................................................... 16
70.......................................................... 15
71.......................................................... 13
72.......................................................... 11
73.......................................................... 09
74.......................................................... 07
75-90....................................................... 05
91.......................................................... 04
92.......................................................... 03
93.......................................................... 02
94.......................................................... 01
95.......................................................... 00
</TABLE>
A-1
<PAGE> 188
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 189
APPENDIX B
ILLUSTRATIONS OF DEATH BENEFITS, ACCOUNT VALUES AND
SURRENDER VALUES, AND ACCUMULATED PREMIUMS
The following tables illustrate how the key financial elements of the
Policy work, specifically, how the death benefits, Fund Values and Surrender
Values could vary over an extended period of time. In addition, each table
compares these values with premiums paid accumulated with interest.
The Policies illustrated include the following:
<TABLE>
<CAPTION>
BENEFIT SPECIFIED SEE
SEX AGE SMOKER OPTION AMOUNT PAGE
--- --- ------ ------- --------- ----
<S> <C> <C> <C> <C> <C>
Male 45 Preferred Non-smoker 1 $200,000 B- 4
Female 45 Preferred Non-smoker 1 $200,000 B-14
Male 45 Standard Smoker 1 $200,000 B-24
Male 45 Preferred Non-smoker 2 $200,000 B-34
Male 35 Preferred Non-smoker 1 $200,000 B-44
Male 55 Preferred Non-smoker 1 $200,000 B-54
</TABLE>
The tables show how death benefits, Fund Values and Surrender Values of a
hypothetical Policy could vary over an extended period of time if the
Subaccounts of the Variable Account had constant hypothetical gross annual
investment returns of 0%, 6% or 12% over the periods indicated in each table.
The values will differ from those shown in the tables if the annual investment
returns are not absolutely constant. That is, the death benefits, Fund Values
and Surrender Values will be different if the returns averaged 0%, 6% or 12%
over a period of years but went above or below those figures in individual
Policy years. These illustrations assume that no Policy Loan has been taken. The
amounts shown would differ if unisex rates were used.
The amounts shown for death benefits, Fund Values and Surrender Values
sections reflect the fact the net investment return on the Policy is lower than
the gross investment return on the Subaccounts of the Variable Account. This
results from the charges levied against the Subaccounts of the Variable Account
(i.e., the mortality and expense risk charge) as well as the premium loads,
administrative charges and Fund Charges. The difference between the Fund Value
and the Surrender Value in the first 14 years is the Fund Charge.
The tables illustrate cost of insurance and expense charges at both current
rates (which are described under Cost Of Insurance, page 28.) and at the maximum
rates guaranteed in the Policies. The amounts shown at the end of each Policy
year reflect a daily charge against the Funds as well as those assessed against
the Subaccounts. These charges include the charge against the Subaccounts for
mortality and expense risks and the effect on each Subaccount's investment
experience of the charge to Portfolio assets for investment management and
direct expenses. The mortality and expense risk fee is .75% annually. The daily
charge for mortality and expense risks has been designed to effectively decrease
by 0.50% on an annualized basis in years 11 and later. This decrease is
guaranteed and is accomplished by increasing the separate account subaccount
fund value on each monthly anniversary after the 10th policy anniversary. The
amount of this increase is determined by multiplying the separate account
subaccount fund value by 0.04167%, which is equivalent to 0.5% on an annual
basis.
Since the Company is unable to predict how a particluar Policy owner will
allocate net premiums 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 an annual rate
of 0.75% 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 the expense reimbursement arrangements
will continue in the future, and any unreimbursed expenses would be reflected in
the values included on the tables.
B-1
<PAGE> 190
The effect of these investment management, direct expenses and mortality
and expense risk charges on a 0% gross rate of return would result in a net rate
of return of -1.4916%, on 5% it would be 3.4711%, and on 10% it would be
8.4338%.
The tables assume the deduction of charges including administrative and
sales charges. For each age, there are tables for death benefit Options I and II
and each option is illustrated using current and guaranteed policy cost factors.
The tables reflect the fact that the Company does not currently make any charge
against the Variable Account for state or federal taxes. If such a charge is
made in the future, it will take a higher rate of return to produce after-tax
returns of 0%, 6% or 12%.
The Company will furnish, upon request, a comparable illustration based on
the age and sex of the proposed Insured, standard Premium Class assumptions and
an initial Specified Amount and Scheduled Premium Payments of the applicant's
choice. If a Policy is purchased, an individualized illustration will be
delivered reflecting the Scheduled Premium Payment chosen and the Insured's
actual risk class. After issuance, the Company will provide upon request an
illustration of future Policy benefits based on both guaranteed and current cost
factor assumptions and actual Account Value.
The following is the page of supplemental footnotes to each of the flexible
premium variable life to age 95 standard ledger statements which follow and
which begin on pages B-4, B-6, B-10, B-14, B-16, B-20, B-24, B-26, B-30, B-34,
B-36, B-40, B-44, B-46, B-50, B-54, B-56 and B-58.
B-2
<PAGE> 191
STANDARD LEDGER STATEMENT--SUPPLEMENTAL FOOTNOTE PAGE
MONY EQUITYMASTER
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
This Policy has been tested for the possibility of classification as a
Modified Endowment. This test is not a guarantee that a policy will not be
classified as a Modified Endowment.
This illustration has been checked against Federal Tax Laws relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or a change in
death benefit Option 2 death benefit Option 1 and/or surrenders occurring in the
first 15 years may cause a taxable event. In addition, if the Policy is defined
as a Modified Endowment Contract, a loan, surrender, or assignment or pledge
(unless such assignment or pledge is defined and the maximum death benefit is
not in excess of $25,000) may be considered a Taxable Distribution and a ten
percent penalty may be added to any tax on the Distribution. Please consult your
tax advisor for advice.
Values shown on this illustration are based on a Policy owner tax bracket
of 28%.
Premiums are assumed to be paid at the beginning of the payment period.
Policy values and ages are shown as of the end of the Policy year and reflect
the effect of all loans and surrenders. The benefit payable at death, Fund Value
and Value Upon Surrender will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The Policy's Value On Surrender is net of any applicable surrender charge.
Premiums less the following deductions are added to the Fund Value. (1) A
premium tax charge of .8% of gross premiums in all Policy years. (2) A sales
charge on the gross premiums. The sales charges equal 4% in Policy years 1-10,
2% in Policy years 11-20, and 0% in Policy years 21 and later. (3) A DAC tax
charge of 1.25% of gross premiums in all Policy years.
Those columns assuming Guaranteed Charges use the current Monthly Mortality
Charges, current Monthly Administrative Charges, current Charges for Mortality
and Expense Risks, current Charges for Rider Benefits if any, and current
Premium Sales Charge ("Current Charges") for the first year as well as the
Assumed Hypothetical Gross Annual Investment Return indicated. Thereafter these
columns use Guaranteed Monthly Mortality Charges, current Monthly Administrative
Charges, Guaranteed Charges for Mortality and Expense Risks, Guaranteed Charges
for Rider Benefits if any, current Maximum Premium Sales Charge, and the Assumed
Hypothetical Gross Annual Investment Return indicated. Those columns assuming
Current Charges are based upon "Current Charges" and the Assumed Hypothetical
Gross Investment Return indicated.
The Current Charges are declared by 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 The Mutual Life Insurance
Company of New York.
The difference between the Fund Value and the Value Upon Surrender is a
Fund Charge. A Fund Charge will apply during the first fourteen years from issue
or following a specified amount increase if the Policy is given up for its Value
Upon Surrender or is terminated, or if the specified amount is reduced. Any
applicable fund charge will be deducted from the Fund Value. Whenever there is a
partial surrender, the surrender amount and the surrender charge ($25.00 or 2%
of the amount surrendered, if less) could be deducted from the benefit payable
at death and will be deducted from the Fund Value and the Value Upon Surrender.
A Policy loan will have a permanent effect on benefits under this Policy.
Loan interest at an annual rate of 5.4% will be charged in advance (equivalent
to 5.75% in arrears). Amounts borrowed will be deposited in a loan account and
earn interest at an annual rate of 5.0%. This rate is determined by subtracting
a hold back margin for profit and expenses of .75% from the loan rate. After the
tenth Policy anniversary the annual interest rate applicable to the loan account
will be .5% higher based on a reduction in the hold back margin for profit and
expenses of .5%. This reduction is guaranteed and will be credited only when
interest in excess of the 5% guaranteed rate is being applied to amounts
allocated to the Guaranteed Interest Account for policies of the same type which
have not reached their tenth anniversary. Adverse tax consequences could occur
if a Policy subject to loans is surrendered or permitted to lapse.
Right to Return Policy -- This Policy may be returned to MONY Life
Insurance Company during the period that starts with the Policy's delivery and
ends on the latest of: (a) 10 days after delivery of the Policy to the
rightsholder; (b) 45 days after part 1 of the application is signed; (c) 10 days
after we mail or deliver a notice of withdrawal right. The Policy may be
returned by delivery or mail, along with a written notice to cancel, to our home
office, a local office, or to the agent who sold it. We will then promptly
refund any premiums paid.
B-3
<PAGE> 192
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------- -----------------------------
0.00% (-1.49% NET) 0.00% (-1.49% NET) 0.00% (-1.49% NET)
----------------------------- ----------------------------- -----------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 351 2,154 200,000 351 2,154 200,000 351 2,154 200,000
2 47 3,088 0 2,140 4,205 200,000 2,140 4,205 200,000 2,442 4,507 200,000
3 48 3,088 0 3,025 6,186 200,000 3,025 6,186 200,000 3,577 6,738 200,000
4 49 3,088 0 4,916 8,077 200,000 4,916 8,077 200,000 5,667 8,828 200,000
5 50 3,088 0 6,718 9,880 200,000 6,718 9,880 200,000 7,664 10,826 200,000
6 51 3,088 0 8,751 11,597 200,000 8,751 11,597 200,000 9,843 12,689 200,000
7 52 3,088 0 10,678 13,208 200,000 10,678 13,208 200,000 11,959 14,488 200,000
8 53 3,088 0 12,502 14,715 200,000 12,502 14,715 200,000 14,011 16,224 200,000
9 54 3,088 0 14,202 16,099 200,000 14,202 16,099 200,000 16,023 17,920 200,000
10 55 3,088 0 15,782 17,363 200,000 15,782 17,363 200,000 17,975 19,556 200,000
11 56 3,088 0 17,381 18,646 200,000 17,381 18,646 200,000 19,953 21,218 200,000
12 57 3,088 0 18,827 19,775 200,000 18,827 19,775 200,000 21,755 22,703 200,000
13 58 3,088 0 20,121 20,754 200,000 20,121 20,754 200,000 23,467 24,100 200,000
14 59 3,088 0 21,245 21,561 200,000 21,245 21,561 200,000 25,114 25,430 200,000
15 60 3,088 0 22,179 22,179 200,000 22,179 22,179 200,000 26,715 26,715 200,000
16 61 3,088 0 22,587 22,587 200,000 22,587 22,587 200,000 28,141 28,141 200,000
17 62 3,088 0 22,763 22,763 200,000 22,763 22,763 200,000 29,440 29,440 200,000
18 63 3,088 0 22,708 22,708 200,000 22,708 22,708 200,000 30,575 30,575 200,000
19 64 3,088 0 22,336 22,336 200,000 22,336 22,336 200,000 31,607 31,607 200,000
20 65 3,088 0 21,621 21,621 200,000 21,621 21,621 200,000 32,539 32,539 200,000
21 66 3,088 0 20,579 20,579 200,000 20,579 20,579 200,000 33,394 33,394 200,000
22 67 3,088 0 19,116 19,116 200,000 19,116 19,116 200,000 34,131 34,131 200,000
23 68 3,088 0 17,176 17,176 200,000 17,176 17,176 200,000 34,691 34,691 200,000
24 69 3,088 0 14,699 14,699 200,000 14,699 14,699 200,000 35,037 35,037 200,000
25 70 3,088 0 11,639 11,639 200,000 11,639 11,639 200,000 35,110 35,110 200,000
26 71 3,088 0 7,872 7,872 200,000 7,872 7,872 200,000 34,928 34,928 200,000
27 72 3,088 0 3,146 3,146 200,000 3,146 3,146 200,000 34,410 34,410 200,000
28 73 3,088 0 0 0 0 0 0 0 33,590 33,590 200,000
29 74 3,088 0 0 0 0 0 0 0 32,343 32,343 200,000
30 75 3,088 0 0 0 0 0 0 0 30,637 30,367 200,000
31 76 3,088 0 0 0 0 0 0 0 28,476 28,476 200,000
32 77 3,088 0 0 0 0 0 0 0 25,716 25,716 200,000
33 78 3,088 0 0 0 0 0 0 0 22,221 22,221 200,000
34 79 3,088 0 0 0 0 0 0 0 17,251 17,251 200,000
35 80 3,088 0 0 0 0 0 0 0 11,083 11,083 200,000
36 81 3,088 0 0 0 0 0 0 0 3,580 3,580 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 73. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 82.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-4
<PAGE> 193
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------
0.00% (-1.49% NET)
----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 351 2,154 200,000
2 47 3,088 0 0 0 2,442 4,507 200,000
3 48 3,088 0 0 0 3,577 6,738 200,000
4 49 3,088 0 0 0 5,667 8,828 200,000
5 50 3,088 0 0 0 7,664 10,826 200,000
6 51 3,088 0 0 0 9,843 12,689 200,000
7 52 3,088 0 0 0 11,959 14,488 200,000
8 53 3,088 0 0 0 14,011 16,224 200,000
9 54 3,088 0 0 0 16,023 17,920 200,000
10 55 3,088 0 0 0 17,975 19,556 200,000
11 56 3,088 0 0 0 19,953 21,218 200,000
12 57 3,088 0 0 0 21,755 22,703 200,000
13 58 3,088 0 0 0 23,467 24,100 200,000
14 59 3,088 0 0 0 25,114 25,430 200,000
15 60 3,088 0 0 0 26,715 26,715 200,000
16 61 3,088 0 0 0 28,141 28,141 200,000
17 62 3,088 0 0 0 29,440 29,440 200,000
18 63 3,088 0 0 0 30,575 30,575 200,000
19 64 3,088 0 0 0 31,607 31,607 200,000
20 65 3,088 0 0 0 32,539 32,539 200,000
21 66 3,088 0 0 0 33,394 33,394 200,000
22 67 3,088 0 0 0 34,131 34,131 200,000
23 68 3,088 0 0 0 34,691 34,691 200,000
24 69 3,088 0 0 0 35,037 35,037 200,000
25 70 3,088 0 0 0 35,110 35,110 200,000
26 71 3,088 0 0 0 34,928 34,928 200,000
27 72 3,088 0 0 0 34,410 34,410 200,000
28 73 3,088 0 0 0 33,590 33,590 200,000
29 74 3,088 0 0 0 32,343 32,343 200,000
30 75 3,088 0 0 0 30,637 30,637 200,000
31 76 3,088 0 0 0 28,476 28,476 200,000
32 77 3,088 0 0 0 25,716 25,716 200,000
33 78 3,088 0 0 0 22,221 22,221 200,000
34 79 3,088 0 0 0 17,251 17,251 200,000
35 80 3,088 0 0 0 11,083 11,083 200,000
36 81 3,088 0 0 0 3,580 3,580 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 73. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 82.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0% over a period of years, but also fluctuated
above or below those averages for individual contract years. No representations
can be made by MONY Life Insurance Company or the underlying Funds of the
Separate Account that these hypothetical rates of return can be achieved for any
one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-5
<PAGE> 194
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------- ------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET) 6.00% (4.46% NET)
----------------------------- ----------------------------- ------------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF ANNUAL LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- ------ --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 351 2,154 200,000 501 2,304 200,000 501 2,304 200,000
2 47 3,088 0 2,140 4,205 200,000 2,573 4,639 200,000 2,885 4,950 200,000
3 48 3,088 0 3,025 6,186 200,000 3,877 7,039 200,000 4,465 7,626 200,000
4 49 3,088 0 4,916 8,077 200,000 6,324 9,485 200,000 7,150 10,312 200,000
5 50 3,088 0 6,718 9,880 200,000 8,821 11,983 200,000 9,895 13,057 200,000
6 51 3,088 0 8,751 11,597 200,000 11,689 14,535 200,000 12,976 15,821 200,000
7 52 3,088 0 10,678 13,208 200,000 14,595 17,124 200,000 16,147 18,676 200,000
8 53 3,088 0 12,502 14,715 200,000 17,542 19,755 200,000 19,414 21,628 200,000
9 54 3,088 0 14,202 16,099 200,000 20,513 22,410 200,000 22,806 24,703 200,000
10 55 3,088 0 15,782 17,363 200,000 23,513 25,094 200,000 26,308 27,889 200,000
11 56 3,088 0 17,381 18,646 200,000 26,734 27,998 200,000 30,067 31,332 200,000
12 57 3,088 0 18,827 19,775 200,000 29,977 30,925 200,000 33,855 34,804 200,000
13 58 3,088 0 20,121 20,754 200,000 33,249 33,881 200,000 37,760 38,392 200,000
14 59 3,088 0 21,245 21,561 200,000 36,537 36,853 200,000 41,812 42,128 200,000
15 60 3,088 0 22,179 22,179 200,000 39,826 39,826 200,000 46,042 46,042 200,000
16 61 3,088 0 22,587 22,587 200,000 42,790 42,790 200,000 50,312 50,312 200,000
17 62 3,088 0 22,763 22,763 200,000 45,731 45,731 200,000 54,718 54,718 200,000
18 63 3,088 0 22,708 22,708 200,000 48,655 48,655 200,000 59,239 59,239 200,000
19 64 3,088 0 22,336 22,336 200,000 51,497 51,497 200,000 63,940 63,940 200,000
20 65 3,088 0 21,621 21,621 200,000 54,242 54,242 200,000 68,840 68,840 200,000
21 66 3,088 0 20,579 20,579 200,000 56,926 56,926 200,000 73,990 73,990 200,000
22 67 3,088 0 19,116 19,116 200,000 59,473 59,473 200,000 79,363 79,363 200,000
23 68 3,088 0 17,176 17,176 200,000 61,850 61,850 200,000 84,938 84,938 200,000
24 69 3,088 0 14,699 14,699 200,000 64,023 64,023 200,000 90,713 90,713 200,000
25 70 3,088 0 11,639 11,639 200,000 65,971 65,971 200,000 96,677 96,677 200,000
26 71 3,088 0 7,872 7,872 200,000 67,620 67,620 200,000 102,876 102,876 200,000
27 72 3,088 0 3,146 3,146 200,000 68,811 68,811 200,000 109,300 109,300 200,000
28 73 3,088 0 0 0 0 69,592 69,592 200,000 116,013 116,013 200,000
29 74 3,088 0 0 0 0 69,786 69,786 200,000 123,001 123,001 200,000
30 75 3,088 0 0 0 0 69,220 69,220 200,000 130,313 130,313 200,000
31 76 3,088 0 0 0 0 67,741 67,741 200,000 138,022 138,022 200,000
32 77 3,088 0 0 0 0 65,174 65,174 200,000 146,157 146,157 200,000
33 78 3,088 0 0 0 0 61,299 61,299 200,000 154,780 154,780 200,000
34 79 3,088 0 0 0 0 55,836 55,836 200,000 163,842 163,842 200,000
35 80 3,088 0 0 0 0 48,406 48,406 200,000 173,601 173,601 200,000
36 81 3,088 0 0 0 0 38,458 38,458 200,000 184,239 184,239 200,000
37 82 3,088 0 0 0 0 25,239 25,239 200,000 195,871 195,871 205,665
38 83 3,088 0 0 0 0 7,623 7,623 200,000 208,075 208,075 218,478
39 84 3,088 0 0 0 0 0 0 0 220,780 220,780 231,819
40 85 3,088 0 0 0 0 0 0 0 233,984 233,984 245,684
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 84. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-6
<PAGE> 195
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET) 6.00% (4.46% NET)
---------------------------- ---------------------------- ------------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 0 0 0 0 247,700 247,770 260,085
42 87 3,088 0 0 0 0 0 0 0 261,919 261,919 275,015
43 88 3,088 0 0 0 0 0 0 0 276,650 276,650 290,482
44 89 3,088 0 0 0 0 0 0 0 291,893 291,893 306,487
45 90 3,088 0 0 0 0 0 0 0 307,642 307,642 323,024
46 91 3,088 0 0 0 0 0 0 0 323,868 323,868 340,061
47 92 3,088 0 0 0 0 0 0 0 341,021 341,021 354,662
48 93 3,088 0 0 0 0 0 0 0 359,206 359,206 369,982
49 94 3,088 0 0 0 0 0 0 0 378,667 378,667 386,240
50 95 3,888 0 0 0 0 0 0 0 399,709 399,709 403,706
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 84. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the Contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-7
<PAGE> 196
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-----------------------------
6.00% (4.46% NET)
-----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 501 2,304 200,000
2 47 3,088 0 0 0 2,885 4,950 200,000
3 48 3,088 0 0 0 4,465 7,626 200,000
4 49 3,088 0 0 0 7,150 10,312 200,000
5 50 3,088 0 0 0 9,895 13,057 200,000
6 51 3,088 0 0 0 12,976 15,821 200,000
7 52 3,088 0 0 0 16,147 18,676 200,000
8 53 3,088 0 0 0 19,414 21,628 200,000
9 54 3,088 0 0 0 22,806 24,703 200,000
10 55 3,088 0 0 0 26,308 27,889 200,000
11 56 3,088 0 0 0 30,067 31,332 200,000
12 57 3,088 0 0 0 33,855 34,804 200,000
13 58 3,088 0 0 0 37,760 38,392 200,000
14 59 3,088 0 0 0 41,812 42,128 200,000
15 60 3,088 0 0 0 46,042 46,042 200,000
16 61 3,088 0 0 0 50,312 50,312 200,000
17 62 3,088 0 0 0 54,718 54,718 200,000
18 63 3,088 0 0 0 59,239 59,239 200,000
19 64 3,088 0 0 0 63,940 63,940 200,000
20 65 3,088 0 0 0 68,840 68,840 200,000
21 66 3,088 0 0 0 73,990 73,990 200,000
22 67 3,088 0 0 0 79,363 79,363 200,000
23 68 3,088 0 0 0 84,938 84,938 200,000
24 69 3,088 0 0 0 90,713 90,713 200,000
25 70 3,088 0 0 0 96,677 96,677 200,000
26 71 3,088 0 0 0 102,876 102,876 200,000
27 72 3,088 0 0 0 109,300 109,300 200,000
28 73 3,088 0 0 0 116,013 116,013 200,000
29 74 3,088 0 0 0 123,001 123,001 200,000
30 75 3,088 0 0 0 130,313 130,313 200,000
31 76 3,088 0 0 0 138,022 138,022 200,000
32 77 3,088 0 0 0 146,157 146,157 200,000
33 78 3,088 0 0 0 154,780 154,780 200,000
34 79 3,088 0 0 0 163,842 163,842 200,000
35 80 3,088 0 0 0 173,601 173,601 200,000
36 81 3,088 0 0 0 184,239 184,239 200,000
37 82 3,088 0 0 0 195,871 195,871 205,665
38 83 3,088 0 0 0 208,075 208,075 218,478
39 84 3,088 0 0 0 220,780 220,780 231,819
40 85 3,088 0 0 0 233,984 233,984 245,684
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 84. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-8
<PAGE> 197
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-----------------------------
6.00% (4.46% NET)
-----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 247,700 247,700 260,085
42 87 3,088 0 0 0 261,919 261,919 275,015
43 88 3,088 0 0 0 276,650 276,650 290,482
44 89 3,088 0 0 0 291,893 291,893 306,487
45 90 3,088 0 0 0 307,642 307,642 323,024
46 91 3,088 0 0 0 323,868 323,868 340,061
47 92 3,088 0 0 0 341,021 341,021 354,662
48 93 3,088 0 0 0 359,206 359,206 369,982
49 94 3,088 0 0 0 378,667 378,667 386,240
50 95 3,088 0 0 0 399,709 399,709 403,706
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 84. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results nay be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-9
<PAGE> 198
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
-----------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
----------------------------- ---------------------------------
(1) (2) (3) (5) (6) (8)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 351 2,154 200,000 652 2,455 200,000
2 47 3,088 0 2,140 4,205 200,000 3,026 5,091 200,000
3 48 3,088 0 3,025 6,186 200,000 4,803 7,964 200,000
4 49 3,088 0 4,916 8,077 200,000 7,916 11,077 200,000
5 50 3,088 0 6,718 9,880 200,000 11,296 14,458 200,000
6 51 3,088 0 8,751 11,597 200,000 15,293 18,139 200,000
7 52 3,088 0 10,678 13,208 200,000 19,603 22,132 200,000
8 53 3,088 0 12,502 14,715 200,000 24,264 26,477 200,000
9 54 3,088 0 14,202 16,099 200,000 29,299 31,195 200,000
10 55 3,088 0 15,782 17,363 200,000 34,754 36,334 200,000
11 56 3,088 0 17,381 18,646 200,000 40,946 42,210 200,000
12 57 3,088 0 18,827 19,775 200,000 47,697 48,645 200,000
13 58 3,088 0 20,121 20,754 200,000 55,085 55,717 200,000
14 59 3,088 0 21,245 21,561 200,000 63,182 63,498 200,000
15 60 3,088 0 22,179 22,179 200,000 72,072 72,072 200,000
16 61 3,088 0 22,587 22,587 200,000 81,542 81,542 200,000
17 62 3,088 0 22,763 22,763 200,000 92,027 92,027 200,000
18 63 3,088 0 22,708 22,708 200,000 103,684 103,684 200,000
19 64 3,088 0 22,336 22,336 200,000 116,651 116,651 200,000
20 65 3,088 0 21,621 21,621 200,000 131,134 131,134 200,000
21 66 3,088 0 20,579 20,579 200,000 147,447 147,447 200,000
22 67 3,088 0 19,116 19,116 200,000 165,834 165,834 200,000
23 68 3,088 0 17,176 17,176 200,000 186,426 186,426 219,983
24 69 3,088 0 14,699 14,699 200,000 209,129 209,129 244,681
25 70 3,088 0 11,639 11,639 200,000 234,159 234,159 271,624
26 71 3,088 0 7,872 7,872 200,000 261,746 261,746 301,007
27 72 3,088 0 3,146 3,146 200,000 292,235 292,235 330,225
28 73 3,088 0 0 0 0 326,016 326,016 361,878
29 74 3,088 0 0 0 0 363,480 363,480 396,193
30 75 3,088 0 0 0 0 405,101 405,101 433,458
31 76 3,088 0 0 0 0 451,462 451,462 474,035
32 77 3,088 0 0 0 0 502,589 502,589 527,718
33 78 3,088 0 0 0 0 558,942 558,942 586,889
34 79 3,088 0 0 0 0 621,020 621,020 652,071
35 80 3,088 0 0 0 0 689,362 689,362 723,830
36 81 3,088 0 0 0 0 764,535 764,535 802,762
37 82 3,088 0 0 0 0 847,144 847,144 889,501
38 83 3,088 0 0 0 0 937,803 937,803 984,693
39 84 3,088 0 0 0 0 1,037,162 1,037,162 1,089,020
40 85 3,088 0 0 0 0 1,145,905 1,145,905 1,203,201
<CAPTION>
CURRENT CHARGES
---------------------------------
12.00% (10.42% NET)
---------------------------------
(9) (11)
END VALUE (10) BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
---- --------- ----- --------
<S> <C> <C> <C>
1 652 2,455 200,000
2 3,347 5,412 200,000
3 5,426 8,588 200,000
4 8,822 11,983 200,000
5 12,513 15,674 200,000
6 16,804 19,649 200,000
7 21,482 24,011 200,000
8 26,592 28,805 200,000
9 32,204 34,101 200,000
10 38,354 39,935 200,000
11 45,330 46,594 200,000
12 52,926 53,875 200,000
13 61,303 61,935 200,000
14 70,577 70,893 200,000
15 80,877 80,877 200,000
16 92,142 92,142 200,000
17 104,652 104,652 200,000
18 118,550 118,550 200,000
19 134,059 134,059 200,000
20 151,391 151,391 200,000
21 170,843 170,843 205,011
22 192,449 192,449 229,015
23 216,357 216,357 255,302
24 242,805 242,805 284,082
25 272,051 272,051 315,579
26 304,402 304,402 350,062
27 340,236 340,236 384,466
28 379,973 379,973 421,770
29 424,049 424,049 462,213
30 472,992 472,992 506,101
31 527,413 527,413 553,784
32 587,625 587,625 617,006
33 654,212 654,212 686,923
34 727,694 727,694 764,079
35 808,840 808,840 849,282
36 898,417 898,417 943,338
37 997,212 997,212 1,047,072
38 1,106,392 1,106,392 1,161,711
39 1,226,800 1,226,800 1,288,140
40 1,359,442 1,359,442 1,427,415
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-10
<PAGE> 199
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
----------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
---------------------------- ---------------------------------
(1) (2) (3) (5) (6) (8)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 0 1,264,759 1,264,759 1,327,997
42 87 3,088 0 0 0 0 1,394,499 1,394,499 1,464,224
43 88 3,088 0 0 0 0 1,535,950 1,535,950 1,612,747
44 89 3,088 0 0 0 0 1,689,978 1,689,978 1,774,477
45 90 3,088 0 0 0 0 1,857,498 1,857,498 1,950,373
46 91 3,088 0 0 0 0 2,039,416 2,039,416 2,141,387
47 92 3,088 0 0 0 0 2,242,557 2,242,557 2,332,259
48 93 3,088 0 0 0 0 2,470,544 2,470,544 2,544,660
49 94 3,088 0 0 0 0 2,727,840 2,727,840 2,782,397
50 95 3,088 0 0 0 0 3,020,015 3,020,015 3,050,215
<CAPTION>
CURRENT CHARGES
---------------------------------
12.00% (10.42% NET)
---------------------------------
(9) (11)
END VALUE (10) BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
---- --------- ----- --------
<S> <C> <C> <C>
41 1,505,505 1,505,505 1,580,780
42 1,666,140 1,666,140 1,749,447
43 1,842,726 1,842,726 1,934,862
44 2,036,679 2,036,679 2,138,513
45 2,249,503 2,249,503 2,361,978
46 2,482,644 2,482,644 2,606,777
47 2,741,488 2,741,488 2,851,147
48 3,029,390 3,029,390 3,120,272
49 3,351,354 3,351,354 3,418,381
50 3,713,625 3,713,625 3,750,762
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-11
<PAGE> 200
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
12.00% (10.42% NET)
--------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 652 2,455 200,000
2 47 3,088 0 0 0 3,347 5,412 200,000
3 48 3,088 0 0 0 5,426 8,588 200,000
4 49 3,088 0 0 0 8,822 11,983 200,000
5 50 3,088 0 0 0 12,513 15,674 200,000
6 51 3,088 0 0 0 16,804 19,649 200,000
7 52 3,088 0 0 0 21,482 24,011 200,000
8 53 3,088 0 0 0 26,592 28,805 200,000
9 54 3,088 0 0 0 32,204 34,101 200,000
10 55 3,088 0 0 0 38,354 39,935 200,000
11 56 3,088 0 0 0 45,330 46,594 200,000
12 57 3,088 0 0 0 52,926 53,875 200,000
13 58 3,088 0 0 0 61,303 61,935 200,000
14 59 3,088 0 0 0 70,577 70,893 200,000
15 60 3,088 0 0 0 80,877 80,877 200,000
16 61 3,088 0 0 0 92,142 92,142 200,000
17 62 3,088 0 0 0 104,652 104,652 200,000
18 63 3,088 0 0 0 118,550 118,550 200,000
19 64 3,088 0 0 0 134,059 134,059 200,000
20 65 3,088 0 0 0 151,391 151,391 200,000
21 66 3,088 0 0 0 170,843 170,843 205,011
22 67 3,088 0 0 0 192,449 192,449 229,015
23 68 3,088 0 0 0 216,357 216,357 255,302
24 69 3,088 0 0 0 242,805 242,805 284,082
25 70 3,088 0 0 0 272,051 272,051 315,579
26 71 3,088 0 0 0 304,402 304,402 350,062
27 72 3,088 0 0 0 340,236 340,236 384,466
28 73 3,088 0 0 0 379,973 379,973 421,770
29 74 3,088 0 0 0 424,049 424,049 462,213
30 75 3,088 0 0 0 472,992 472,992 506,101
31 76 3,088 0 0 0 527,413 527,413 553,784
32 77 3,088 0 0 0 587,625 587,625 617,006
33 78 3,088 0 0 0 654,212 654,212 686,923
34 79 3,088 0 0 0 727,694 727,694 764,079
35 80 3,088 0 0 0 808,840 808,840 849,282
36 81 3,088 0 0 0 898,417 898,417 943,338
37 82 3,088 0 0 0 997,212 997,212 1,047,072
38 83 3,088 0 0 0 1,106,392 1,106,392 1,161,711
39 84 3,088 0 0 0 1,226,800 1,226,800 1,288,140
40 85 3,088 0 0 0 1,359,442 1,359,442 1,427,415
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-12
<PAGE> 201
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
12.00% (10.42% NET)
--------------------------------
END UNSCHEDULED BENEFIT
OF PREMIUM/ NET TOTAL VALUE ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 1,505,505 1,505,505 1,580,780
42 87 3,088 0 0 0 1,666,140 1,666,140 1,749,447
43 88 3,088 0 0 0 1,842,726 1,842,726 1,934,862
44 89 3,088 0 0 0 2,036,679 2,036,679 2,138,513
45 90 3,088 0 0 0 2,249,503 2,249,503 2,361,978
46 91 3,088 0 0 0 2,482,644 2,482,644 2,606,777
47 92 3,088 0 0 0 2,741,488 2,741,488 2,851,147
48 93 3,088 0 0 0 3,029,390 3,029,390 3,120,272
49 94 3,088 0 0 0 3,351,354 3,351,354 3,418,381
50 95 3,088 0 0 0 3,713,625 3,713,625 3,750,762
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $3,473.42 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-13
<PAGE> 202
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------- -----------------------------
0.00% (-1.49% NET) 0.00% (-1.49% NET) 0.00% (-1.49% NET)
----------------------------- ----------------------------- -----------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 58 1,728 200,000 58 1,728 200,000 58 1,728 200,000
2 47 2,578 0 1,490 3,380 200,000 1,490 3,380 200,000 1,817 3,708 200,000
3 48 2,578 0 2,185 4,990 200,000 2,185 4,990 200,000 2,810 5,614 200,000
4 49 2,578 0 3,730 6,535 200,000 3,730 6,535 200,000 4,577 7,381 200,000
5 50 2,578 0 5,189 7,994 200,000 5,189 7,994 200,000 6,254 9,058 200,000
6 51 2,578 0 6,867 9,391 200,000 6,867 9,391 200,000 7,988 10,512 200,000
7 52 2,578 0 8,463 10,706 200,000 8,463 10,706 200,000 9,661 11,905 200,000
8 53 2,578 0 9,977 11,940 200,000 9,977 11,940 200,000 11,297 13,260 200,000
9 54 2,578 0 11,413 13,096 200,000 11,413 13,096 200,000 12,896 14,579 200,000
10 55 2,578 0 12,771 14,173 200,000 12,771 14,173 200,000 14,437 15,840 200,000
11 56 2,578 0 14,161 15,283 200,000 14,161 15,283 200,000 15,996 17,118 200,000
12 57 2,578 0 15,460 16,301 200,000 15,460 16,301 200,000 17,483 18,324 200,000
13 58 2,578 0 16,668 17,229 200,000 16,668 17,229 200,000 18,922 19,483 200,000
14 59 2,578 0 17,786 18,067 200,000 17,786 18,067 200,000 20,249 20,529 200,000
15 60 2,578 0 18,817 18,817 200,000 18,817 18,817 200,000 21,551 21,551 200,000
16 61 2,578 0 19,479 19,479 200,000 19,479 19,479 200,000 22,716 22,716 200,000
17 62 2,578 0 20,011 20,011 200,000 20,011 20,011 200,000 23,856 23,856 200,000
18 63 2,578 0 20,393 20,393 200,000 20,393 20,393 200,000 24,887 24,887 200,000
19 64 2,578 0 20,605 20,605 200,000 20,605 20,605 200,000 25,893 25,893 200,000
20 65 2,578 0 20,603 20,603 200,000 20,603 20,603 200,000 26,812 26,812 200,000
21 66 2,578 0 20,396 20,396 200,000 20,396 20,396 200,000 27,658 27,658 200,000
22 67 2,578 0 19,953 19,953 200,000 19,953 19,953 200,000 28,399 28,399 200,000
23 68 2,578 0 19,249 19,249 200,000 19,249 19,249 200,000 29,017 29,017 200,000
24 69 2,578 0 18,281 18,281 200,000 18,281 18,281 200,000 29,512 29,512 200,000
25 70 2,578 0 17,023 17,023 200,000 17,023 17,023 200,000 29,926 29,926 200,000
26 71 2,578 0 15,423 15,423 200,000 15,423 15,423 200,000 30,178 30,178 200,000
27 72 2,578 0 13,384 13,384 200,000 13,384 13,384 200,000 30,289 30,289 200,000
28 73 2,578 0 10,822 10,822 200,000 10,822 10,822 200,000 30,219 30,219 200,000
29 74 2,578 0 7,579 7,579 200,000 7,579 7,579 200,000 29,926 29,926 200,000
30 75 2,578 0 3,525 3,525 200,000 3,525 3,525 200,000 29,388 29,388 200,000
31 76 2,578 0 0 0 0 0 0 0 28,520 28,520 200,000
32 77 2,578 0 0 0 0 0 0 0 27,317 27,317 200,000
33 78 2,578 0 0 0 0 0 0 0 25,709 25,709 200,000
34 79 2,578 0 0 0 0 0 0 0 23,579 23,579 200,000
35 80 2,578 0 0 0 0 0 0 0 20,927 20,927 200,000
36 81 2,578 0 0 0 0 0 0 0 17,557 17,557 200,000
37 82 2,578 0 0 0 0 0 0 0 13,450 13,450 200,000
38 83 2,578 0 0 0 0 0 0 0 8,193 8,193 200,000
39 84 2,578 0 0 0 0 0 0 0 1,575 1,575 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 76. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 85.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-14
<PAGE> 203
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-----------------------------
0.00% (-1.49% NET)
-----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 0 0 58 1,728 200,000
2 47 2,578 0 0 0 1,817 3,708 200,000
3 48 2,578 0 0 0 2,810 5,614 200,000
4 49 2,578 0 0 0 4,577 7,381 200,000
5 50 2,578 0 0 0 6,254 9,058 200,000
6 51 2,578 0 0 0 7,988 10,512 200,000
7 52 2,578 0 0 0 9,661 11,905 200,000
8 53 2,578 0 0 0 11,297 13,260 200,000
9 54 2,578 0 0 0 12,896 14,579 200,000
10 55 2,578 0 0 0 14,437 15,840 200,000
11 56 2,578 0 0 0 15,996 17,118 200,000
12 57 2,578 0 0 0 17,483 18,324 200,000
13 58 2,578 0 0 0 18,922 19,483 200,000
14 59 2,578 0 0 0 20,249 20,529 200,000
15 60 2,578 0 0 0 21,551 21,551 200,000
16 61 2,578 0 0 0 22,716 22,716 200,000
17 62 2,578 0 0 0 23,856 23,856 200,000
18 63 2,578 0 0 0 24,887 24,887 200,000
19 64 2,578 0 0 0 25,893 25,893 200,000
20 65 2,578 0 0 0 26,812 26,812 200,000
21 66 2,578 0 0 0 27,658 27,658 200,000
22 67 2,578 0 0 0 28,399 28,399 200,000
23 68 2,578 0 0 0 29,017 29,017 200,000
24 69 2,578 0 0 0 29,512 29,512 200,000
25 70 2,578 0 0 0 29,926 29,926 200,000
26 71 2,578 0 0 0 30,178 30,178 200,000
27 72 2,578 0 0 0 30,289 30,289 200,000
28 73 2,578 0 0 0 30,219 30,219 200,000
29 74 2,578 0 0 0 29,926 29,926 200,000
30 75 2,578 0 0 0 29,388 29,388 200,000
31 76 2,578 0 0 0 28,520 28,520 200,000
32 77 2,578 0 0 0 27,317 27,317 200,000
33 78 2,578 0 0 0 25,709 25,709 200,000
34 79 2,578 0 0 0 23,579 23,579 200,000
35 80 2,578 0 0 0 20,927 20,927 200,000
36 81 2,578 0 0 0 17,557 17,557 200,000
37 82 2,578 0 0 0 13,450 13,450 200,000
38 83 2,578 0 0 0 8,193 8,193 200,000
39 84 2,578 0 0 0 1,575 1,575 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment return of
0.00%, contract lapses at age 76. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 85.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-15
<PAGE> 204
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- -----------------------------
0.00% (- 1.49% NET) 6.00% (4.46% NET) 6.00% (4.46% NET)
---------------------------- ---------------------------- -----------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 58 1,728 200,000 181 1,851 200,000 181 1,851 200,000
2 47 2,578 0 1,490 3,380 200,000 1,844 3,734 200,000 2,181 4,071 200,000
3 48 2,578 0 2,185 4,990 200,000 2,879 5,683 200,000 3,542 6,347 200,000
4 49 2,578 0 3,730 6,535 200,000 4,874 7,679 200,000 5,805 8,610 200,000
5 50 2,578 0 5,189 7,994 200,000 6,897 9,701 200,000 8,106 10,910 200,000
6 51 2,578 0 6,867 9,391 200,000 9,252 11,776 200,000 10,589 13,113 200,000
7 52 2,578 0 8,463 10,706 200,000 11,640 13,883 200,000 13,134 15,378 200,000
8 53 2,578 0 9,977 11,940 200,000 14,064 16,027 200,000 15,767 17,731 200,000
9 54 2,578 0 11,413 13,096 200,000 16,528 18,211 200,000 18,494 20,177 200,000
10 55 2,578 0 12,771 14,173 200,000 19,035 20,437 200,000 21,297 22,699 200,000
11 56 2,578 0 14,161 15,283 200,000 21,739 22,860 200,000 24,301 25,423 200,000
12 57 2,578 0 15,460 16,301 200,000 24,492 25,334 200,000 27,391 28,233 200,000
13 58 2,578 0 16,668 17,229 200,000 27,301 27,862 200,000 30,597 31,157 200,000
14 59 2,578 0 17,786 18,067 200,000 30,172 30,452 200,000 33,863 34,143 200,000
15 60 2,578 0 18,817 18,817 200,000 33,109 33,109 200,000 37,278 37,278 200,000
16 61 2,578 0 19,479 19,479 200,000 35,840 35,840 200,000 40,728 40,728 200,000
17 62 2,578 0 20,011 20,011 200,000 38,611 38,611 200,000 44,352 44,352 200,000
18 63 2,578 0 20,393 20,393 200,000 41,410 41,410 200,000 48,084 48,084 200,000
19 64 2,578 0 20,605 20,605 200,000 44,224 44,224 200,000 52,009 52,009 200,000
20 65 2,578 0 20,603 20,603 200,000 47,022 47,022 200,000 56,085 56,085 200,000
21 66 2,578 0 20,396 20,396 200,000 49,826 49,826 200,000 60,344 60,344 200,000
22 67 2,578 0 19,953 19,953 200,000 52,609 52,609 200,000 64,766 64,766 200,000
23 68 2,578 0 19,249 19,249 200,000 55,360 55,360 200,000 69,349 69,349 200,000
24 69 2,578 0 18,281 18,281 200,000 58,085 58,085 200,000 74,110 74,110 200,000
25 70 2,578 0 17,023 17,023 200,000 60,771 60,771 200,000 79,096 79,096 200,000
26 71 2,578 0 15,423 15,423 200,000 63,392 63,392 200,000 84,269 84,269 200,000
27 72 2,578 0 13,384 13,384 200,000 65,886 65,886 200,000 89,663 89,663 200,000
28 73 2,578 0 10,822 10,822 200,000 68,206 68,206 200,000 95,277 95,277 200,000
29 74 2,578 0 7,579 7,579 200,000 70,253 70,253 200,000 101,110 101,110 200,000
30 75 2,578 0 3,525 3,525 200,000 71,957 71,957 200,000 107,182 107,182 200,000
31 76 2,578 0 0 0 0 73,223 73,223 200,000 113,483 113,483 200,000
32 77 2,578 0 0 0 0 73,960 73,960 200,000 120,053 120,053 200,000
33 78 2,578 0 0 0 0 74,095 74,095 200,000 126,909 126,909 200,000
34 79 2,578 0 0 0 0 73,488 73,488 200,000 134,062 134,062 200,000
35 80 2,578 0 0 0 0 71,990 71,990 200,000 141,585 141,585 200,000
36 81 2,578 0 0 0 0 69,366 69,366 200,000 149,497 149,497 200,000
37 82 2,578 0 0 0 0 65,305 65,305 200,000 157,898 157,898 200,000
38 83 2,578 0 0 0 0 59,341 59,341 200,000 166,818 166,818 200,000
39 84 2,578 0 0 0 0 50,844 50,844 200,000 176,393 176,393 200,000
40 85 2,578 0 0 0 0 39,024 39,024 200,000 186,767 186,767 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 88. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-16
<PAGE> 205
<TABLE>
<S> <C> <C>
STANDARD LEDGER STATEMENT
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------ -----------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET) 6.00% (4.46% NET)
---------------------------- ----------------------------- -----------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 2,578 0 0 0 0 22,750 22,750 200,000 197,998 197,998 207,898
42 87 2,578 0 0 0 0 498 498 200,000 209,645 209,645 220,127
43 88 2,578 0 0 0 0 0 0 0 221,687 221,687 232,771
44 89 2,578 0 0 0 0 0 0 0 234,156 234,156 245,864
45 90 2,578 0 0 0 0 0 0 0 247,046 247,046 259,398
46 91 2,578 0 0 0 0 0 0 0 260,332 260,332 273,349
47 92 2,578 0 0 0 0 0 0 0 274,391 274,391 285,367
48 93 2,578 0 0 0 0 0 0 0 289,344 289,344 298,024
49 94 2,578 0 0 0 0 0 0 0 305,346 305,346 311,453
50 95 2,578 0 0 0 0 0 0 0 322,573 322,573 325,799
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 88. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-17
<PAGE> 206
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,378 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
------------------------------
6.00% (4.46% NET)
------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 0 0 181 1,851 200,000
2 47 2,578 0 0 0 2,181 4,071 200,000
3 48 2,578 0 0 0 3,542 6,347 200,000
4 49 2,578 0 0 0 5,805 8,610 200,000
5 50 2,578 0 0 0 8,106 10,910 200,000
6 51 2,578 0 0 0 10,589 13,113 200,000
7 52 2,578 0 0 0 13,134 15,378 200,000
8 53 2,578 0 0 0 15,767 17,731 200,000
9 54 2,578 0 0 0 18,494 20,177 200,000
10 55 2,578 0 0 0 21,297 22,699 200,000
11 56 2,578 0 0 0 24,301 25,423 200,000
12 57 2,578 0 0 0 27,391 28,233 200,000
13 58 2,578 0 0 0 30,597 31,157 200,000
14 59 2,578 0 0 0 33,863 34,143 200,000
15 60 2,578 0 0 0 37,278 37,278 200,000
16 61 2,578 0 0 0 40,728 40,728 200,000
17 62 2,578 0 0 0 44,352 44,352 200,000
18 63 2,578 0 0 0 48,084 48,084 200,000
19 64 2,578 0 0 0 52,009 52,009 200,000
20 65 2,578 0 0 0 56,085 56,085 200,000
21 66 2,578 0 0 0 60,344 60,344 200,000
22 67 2,578 0 0 0 64,766 64,766 200,000
23 68 2,578 0 0 0 69,349 69,349 200,000
24 69 2,578 0 0 0 74,110 74,110 200,000
25 70 2,578 0 0 0 79,096 79,096 200,000
26 71 2,578 0 0 0 84,269 84,269 200,000
27 72 2,578 0 0 0 89,663 89,663 200,000
28 73 2,578 0 0 0 95,277 95,277 200,000
29 74 2,578 0 0 0 101,110 101,110 200,000
30 75 2,578 0 0 0 107,182 107,182 200,000
31 76 2,578 0 0 0 113,483 113,483 200,000
32 77 2,578 0 0 0 120,053 120,053 200,000
33 78 2,578 0 0 0 126,909 126,909 200,000
34 79 2,578 0 0 0 134,062 134,062 200,000
35 80 2,578 0 0 0 141,585 141,585 200,000
36 81 2,578 0 0 0 149,497 149,497 200,000
37 82 2,578 0 0 0 157,898 157,898 200,000
38 83 2,578 0 0 0 166,818 166,818 200,000
39 84 2,578 0 0 0 176,393 176,393 200,000
40 85 2,578 0 0 0 186,767 186,767 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 88. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-18
<PAGE> 207
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,378 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-----------------------------
6.00% (4.46% NET)
-----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 2,578 0 0 0 197,998 197,998 207,898
42 87 2,578 0 0 0 209,645 209,645 220,127
43 88 2,578 0 0 0 221,687 221,687 232,771
44 89 2,578 0 0 0 234,156 234,156 245,864
45 90 2,578 0 0 0 247,046 247,046 259,398
46 91 2,578 0 0 0 260,332 260,332 273,349
47 92 2,578 0 0 0 274,391 274,391 285,367
48 93 2,578 0 0 0 289,344 289,344 298,024
49 94 2,578 0 0 0 305,346 305,346 311,453
50 95 2,578 0 0 0 322,573 322,573 325,799
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6%, contract lapses at age 88. Assuming Current Charges and a Gross Investment
Return of 6%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-19
<PAGE> 208
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
----------------------------- -------------------------------
(1) (2) (3) (5) (6) (8)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 58 1,728 200,000 304 1,975 200,000
2 47 2,578 0 1,490 3,380 200,000 2,213 4,103 200,000
3 48 2,578 0 2,185 4,990 200,000 3,632 6,436 200,000
4 49 2,578 0 3,730 6,535 200,000 6,168 8,973 200,000
5 50 2,578 0 5,189 7,994 200,000 8,907 11,712 200,000
6 51 2,578 0 6,867 9,391 200,000 12,177 14,701 200,000
7 52 2,578 0 8,463 10,706 200,000 15,703 17,946 200,000
8 53 2,578 0 9,977 11,940 200,000 19,515 21,478 200,000
9 54 2,578 0 11,413 13,096 200,000 23,647 25,330 200,000
10 55 2,578 0 12,771 14,173 200,000 28,138 29,540 200,000
11 56 2,578 0 14,161 15,283 200,000 33,240 34,362 200,000
12 57 2,578 0 15,460 16,301 200,000 38,822 39,663 200,000
13 58 2,578 0 16,668 17,229 200,000 44,945 45,506 200,000
14 59 2,578 0 17,786 18,067 200,000 51,678 51,959 200,000
15 60 2,578 0 18,817 18,817 200,000 59,101 59,101 200,000
16 61 2,578 0 19,479 19,479 200,000 67,021 67,021 200,000
17 62 2,578 0 20,011 20,011 200,000 75,788 75,788 200,000
18 63 2,578 0 20,393 20,393 200,000 85,502 85,502 200,000
19 64 2,578 0 20,605 20,605 200,000 96,279 96,279 200,000
20 65 2,578 0 20,603 20,603 200,000 108,248 108,248 200,000
21 66 2,578 0 20,396 20,396 200,000 121,622 121,622 200,000
22 67 2,578 0 19,953 19,953 200,000 136,569 136,569 200,000
23 68 2,578 0 19,249 19,249 200,000 153,322 153,322 200,000
24 69 2,578 0 18,281 18,281 200,000 172,164 172,164 201,432
25 70 2,578 0 17,023 17,023 200,000 193,172 193,172 224,080
26 71 2,578 0 15,423 15,423 200,000 216,397 216,397 248,856
27 72 2,578 0 13,384 13,384 200,000 242,119 242,119 273,594
28 73 2,578 0 10,822 10,822 200,000 270,624 270,624 300,393
29 74 2,578 0 7,579 7,579 200,000 302,233 302,233 329,434
30 75 2,578 0 3,525 3,525 200,000 337,326 337,326 360,939
31 76 2,578 0 0 0 0 376,346 376,346 395,164
32 77 2,578 0 0 0 0 419,462 419,462 440,436
33 78 2,578 0 0 0 0 467,087 467,087 490,442
34 79 2,578 0 0 0 0 519,661 519,661 545,644
35 80 2,578 0 0 0 0 577,667 577,667 606,551
36 81 2,578 0 0 0 0 641,618 641,618 673,699
37 82 2,578 0 0 0 0 712,063 712,063 747,666
38 83 2,578 0 0 0 0 789,569 789,569 829,047
39 84 2,578 0 0 0 0 874,734 874,734 918,469
40 85 2,578 0 0 0 0 968,200 968,200 1,016,610
<CAPTION>
CURRENT CHARGES
---------------------------------
12.00% (10.42% NET)
---------------------------------
(9) (11)
END VALUE (10) BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
---- --------- ----- --------
<S> <C> <C> <C>
1 304 1,975 200,000
2 2,560 4,450 200,000
3 4,335 7,139 200,000
4 7,189 9,993 200,000
5 10,276 13,081 200,000
6 13,765 16,289 200,000
7 17,556 19,800 200,000
8 21,706 23,670 200,000
9 26,256 27,938 200,000
10 31,227 32,629 200,000
11 36,857 37,978 200,000
12 43,043 43,885 200,000
13 49,875 50,436 200,000
14 57,376 57,657 200,000
15 65,703 65,703 200,000
16 74,805 74,805 200,000
17 84,947 84,947 200,000
18 96,198 96,198 200,000
19 108,752 108,752 200,000
20 122,730 122,730 200,000
21 138,355 138,355 200,000
22 155,795 155,795 200,000
23 175,275 175,275 206,825
24 196,901 196,901 230,874
25 220,864 220,864 256,202
26 247,403 247,403 286,514
27 276,836 276,836 312,825
28 309,486 309,486 343,529
29 345,715 345,715 376,829
30 385,939 385,939 412,955
31 430,622 430,622 452,153
32 480,118 480,118 504,124
33 534,930 534,930 561,677
34 595,604 595,604 625,384
35 662,760 662,760 695,898
36 737,044 737,044 773,897
37 819,203 819,203 860,163
38 909,966 909,966 955,464
39 1,010,175 1,010,175 1,060,684
40 1,120,643 1,120,643 1,176,676
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-20
<PAGE> 209
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
---------------------------- --------------------------------
(1) (2) (3) (5) (6) (8)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 2,578 0 0 0 0 1,070,631 1,070,631 1,124,162
42 87 2,578 0 0 0 0 1,182,739 1,182,739 1,241,876
43 88 2,578 0 0 0 0 1,305,245 1,305,245 1,370,507
44 89 2,578 0 0 0 0 1,438,924 1,438,924 1,510,871
45 90 2,578 0 0 0 0 1,584,524 1,584,524 1,663,750
46 91 2,578 0 0 0 0 1,742,825 1,742,825 1,829,966
47 92 2,578 0 0 0 0 1,918,971 1,918,971 1,995,730
48 93 2,578 0 0 0 0 2,115,945 2,115,945 2,179,423
49 94 2,578 0 0 0 0 2,337,473 2,337,473 2,384,223
50 95 2,578 0 0 0 0 2,588,323 2,588,323 2,614,206
<CAPTION>
CURRENT CHARGES
--------------------------------
12.00% (10.42% NET)
--------------------------------
(9) (11)
END VALUE (10) BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
---- --------- ----- --------
<S> <C> <C> <C>
41 1,242,284 1,242,284 1,304,378
42 1,376,065 1,376,065 1,444,869
43 1,523,011 1,523,011 1,599,161
44 1,684,509 1,684,509 1,768,735
45 1,861,818 1,861,818 1,954,909
46 2,056,147 2,056,147 2,158,954
47 2,272,091 2,272,091 2,362,974
48 2,512,794 2,512,794 2,588,178
49 2,782,128 2,782,128 2,837,771
50 3,084,635 3,084,635 3,115,482
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-21
<PAGE> 210
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
12.00% (10.42% NET)
--------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 0 0 304 1,975 200,000
2 47 2,578 0 0 0 2,560 4,450 200,000
3 48 2,578 0 0 0 4,335 7,139 200,000
4 49 2,578 0 0 0 7,189 9,993 200,000
5 50 2,578 0 0 0 10,276 13,081 200,000
6 51 2,578 0 0 0 13,765 16,289 200,000
7 52 2,578 0 0 0 17,556 19,800 200,000
8 53 2,578 0 0 0 21,706 23,670 200,000
9 54 2,578 0 0 0 26,256 27,938 200,000
10 55 2,578 0 0 0 31,227 32,629 200,000
11 56 2,578 0 0 0 36,857 37,978 200,000
12 57 2,578 0 0 0 43,043 43,885 200,000
13 58 2,578 0 0 0 49,875 50,436 200,000
14 59 2,578 0 0 0 57,376 57,657 200,000
15 60 2,578 0 0 0 65,703 65,703 200,000
16 61 2,578 0 0 0 74,805 74,805 200,000
17 62 2,578 0 0 0 84,947 84,947 200,000
18 63 2,578 0 0 0 96,198 96,198 200,000
19 64 2,578 0 0 0 108,752 108,752 200,000
20 65 2,578 0 0 0 122,730 122,730 200,000
21 66 2,578 0 0 0 138,355 138,355 200,000
22 67 2,578 0 0 0 155,795 155,795 200,000
23 68 2,578 0 0 0 175,275 175,275 206,825
24 69 2,578 0 0 0 196,901 196,901 230,374
25 70 2,578 0 0 0 220,864 220,864 256,202
26 71 2,578 0 0 0 247,403 247,403 284,514
27 72 2,578 0 0 0 276,836 276,836 312,825
28 73 2,578 0 0 0 309,486 309,486 343,529
29 74 2,578 0 0 0 345,715 345,715 376,829
30 75 2,578 0 0 0 385,939 385,939 412,955
31 76 2,578 0 0 0 430,622 430,622 452,153
32 77 2,578 0 0 0 480,118 480,118 504,124
33 78 2,578 0 0 0 534,930 534,930 561,677
34 79 2,578 0 0 0 595,604 595,604 625,384
35 80 2,578 0 0 0 662,760 662,760 695,898
36 81 2,578 0 0 0 737,044 737,044 773,897
37 82 2,578 0 0 0 819,203 819,203 860,163
38 83 2,578 0 0 0 909,966 909,966 955,464
39 84 2,578 0 0 0 1,010,175 1,010,175 1,060,684
40 85 2,578 0 0 0 1,120,643 1,120,643 1,176,676
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-22
<PAGE> 211
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 2,578.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
---------------------------------
12.00% (10.42% NET)
---------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 2,578 0 0 0 1,242,284 1,242,284 1,304,398
42 87 2,578 0 0 0 1,376,065 1,376,065 1,444,869
43 88 2,578 0 0 0 1,523,011 1,523,011 1,599,161
44 89 2,578 0 0 0 1,684,509 1,684,509 1,768,735
45 90 2,578 0 0 0 1,861,818 1,861,818 1,954,909
46 91 2,578 0 0 0 2,056,147 2,056,147 2,158,954
47 92 2,578 0 0 0 2,272,091 2,272,091 2,362,974
48 93 2,578 0 0 0 2,512,794 2,512,794 2,588,178
49 94 2,578 0 0 0 2,782,128 2,782,128 2,837,771
50 95 2,578 0 0 0 3,084,635 3,084,635 3,115,482
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,132.08 INITIAL GUIDELINE ANNUAL: $2,904.46 INITIAL TWO YEAR MINIMUM: $2,578.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-23
<PAGE> 212
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------- -----------------------------
0.00% (- 1.49% NET) 0.00% (- 1.49% NET) 0.00% (- 1.49% NET)
----------------------------- ----------------------------- -----------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 622 2,704 200,000 622 2,704 200,000 622 2,704 200,000
2 47 4,162 0 2,683 5,122 200,000 2,683 5,122 200,000 3,146 5,585 200,000
3 48 4,162 0 3,492 7,405 200,000 3,492 7,405 200,000 4,385 8,298 200,000
4 49 4,162 0 5,622 9,535 200,000 5,622 9,535 200,000 6,914 10,827 200,000
5 50 4,162 0 7,603 11,516 200,000 7,603 11,516 200,000 9,310 13,223 200,000
6 51 4,162 0 9,830 13,352 200,000 9,830 13,352 200,000 11,945 15,467 200,000
7 52 4,162 0 11,894 15,025 200,000 11,894 15,025 200,000 14,433 17,563 200,000
8 53 4,162 0 13,754 16,493 200,000 13,754 16,493 200,000 16,820 19,560 200,000
9 54 4,162 0 15,414 17,762 200,000 15,414 17,762 200,000 19,068 21,416 200,000
10 55 4,162 0 16,834 18,791 200,000 16,834 18,791 200,000 21,158 23,114 200,000
11 56 4,162 0 18,228 19,794 200,000 18,228 19,794 200,000 23,180 24,745 200,000
12 57 4,162 0 19,371 20,545 200,000 19,371 20,545 200,000 25,040 26,214 200,000
13 58 4,162 0 20,242 21,025 200,000 20,242 21,025 200,000 26,554 27,337 200,000
14 59 4,162 0 20,819 21,211 200,000 20,819 21,211 200,000 27,930 28,322 200,000
15 60 4,162 0 21,101 21,101 200,000 21,101 21,101 200,000 29,109 29,109 200,000
16 61 4,162 0 20,669 20,669 200,000 20,669 20,669 200,000 30,144 30,144 200,000
17 62 4,162 0 19,847 19,847 200,000 19,847 19,847 200,000 30,943 30,943 200,000
18 63 4,162 0 18,580 18,580 200,000 18,580 18,580 200,000 31,467 31,467 200,000
19 64 4,162 0 16,812 16,812 200,000 16,812 16,812 200,000 31,715 31,715 200,000
20 65 4,162 0 14,456 14,456 200,000 14,456 14,456 200,000 31,746 31,746 200,000
21 66 4,162 0 11,503 11,503 200,000 11,503 11,503 200,000 31,601 31,601 200,000
22 67 4,162 0 7,832 7,832 200,000 7,832 7,832 200,000 31,193 31,193 200,000
23 68 4,162 0 3,348 3,348 200,000 3,348 3,348 200,000 30,477 30,477 200,000
24 69 4,162 0 0 0 0 0 0 0 29,323 29,323 200,000
25 70 4,162 0 0 0 0 0 0 0 27,616 27,616 200,000
26 71 4,162 0 0 0 0 0 0 0 25,352 25,352 200,000
27 72 4,162 0 0 0 0 0 0 0 22,400 22,400 200,000
28 73 4,162 0 0 0 0 0 0 0 18,760 18,760 200,000
29 74 4,162 0 0 0 0 0 0 0 14,231 14,231 200,000
30 75 4,162 0 0 0 0 0 0 0 8,630 8,630 200,000
31 76 4,162 0 0 0 0 0 0 0 1,997 1,997 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 69. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 77.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-24
<PAGE> 213
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------
0.00% (-1.49% NET)
----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 0 0 622 2,704 200,000
2 47 4,162 0 0 0 3,146 5,585 200,000
3 48 4,162 0 0 0 4,385 8,298 200,000
4 49 4,162 0 0 0 6,914 10,827 200,000
5 50 4,162 0 0 0 9,310 13,223 200,000
6 51 4,162 0 0 0 11,945 15,467 200,000
7 52 4,162 0 0 0 14,433 17,563 200,000
8 53 4,162 0 0 0 16,820 19,560 200,000
9 54 4,162 0 0 0 19,068 21,416 200,000
10 55 4,162 0 0 0 21,158 23,114 200,000
11 56 4,162 0 0 0 23,180 24,745 200,000
12 57 4,162 0 0 0 25,040 26,214 200,000
13 58 4,162 0 0 0 26,554 27,337 200,000
14 59 4,162 0 0 0 27,930 28,322 200,000
15 60 4,162 0 0 0 29,109 29,109 200,000
16 61 4,162 0 0 0 30,144 30,144 200,000
17 62 4,162 0 0 0 30,943 30,943 200,000
18 63 4,162 0 0 0 31,467 31,467 200,000
19 64 4,162 0 0 0 31,715 31,715 200,000
20 65 4,162 0 0 0 31,746 31,746 200,000
21 66 4,162 0 0 0 31,601 31,601 200,000
22 67 4,162 0 0 0 31,193 31,193 200,000
23 68 4,162 0 0 0 30,477 30,477 200,000
24 69 4,162 0 0 0 29,323 29,323 200,000
25 70 4,162 0 0 0 27,616 27,616 200,000
26 71 4,162 0 0 0 25,352 25,352 200,000
27 72 4,162 0 0 0 22,400 22,400 200,000
28 73 4,162 0 0 0 18,760 18,760 200,000
29 74 4,162 0 0 0 14,231 14,231 200,000
30 75 4,162 0 0 0 8,630 8,630 200,000
31 76 4,162 0 0 0 1,997 1,997 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 69. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 77.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change the hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-25
<PAGE> 214
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------- ------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET) 6.00% (4.46% NET)
----------------------------- ----------------------------- ------------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 622 2,704 200,000 818 2,901 200,000 818 2,901 200,000
2 47 4,162 0 2,683 5,122 200,000 3,239 5,678 200,000 3,716 6,155 200,000
3 48 4,162 0 3,492 7,405 200,000 4,568 8,482 200,000 5,516 9,430 200,000
4 49 4,162 0 5,622 9,535 200,000 7,380 11,293 200,000 8,793 12,707 200,000
5 50 4,162 0 7,603 11,516 200,000 10,204 14,118 200,000 12,124 16,038 200,000
6 51 4,162 0 9,830 13,352 200,000 13,437 16,959 200,000 15,885 19,407 200,000
7 52 4,162 0 11,894 15,025 200,000 16,670 19,800 200,000 19,691 22,821 200,000
8 53 4,162 0 13,754 16,493 200,000 19,864 22,604 200,000 23,592 26,332 200,000
9 54 4,162 0 15,414 17,762 200,000 23,024 25,372 200,000 27,556 29,904 200,000
10 55 4,162 0 16,834 18,791 200,000 26,112 28,068 200,000 31,570 33,527 200,000
11 56 4,162 0 18,228 19,794 200,000 29,400 30,966 200,000 35,803 37,369 200,000
12 57 4,162 0 19,371 20,545 200,000 32,633 33,807 200,000 40,118 41,292 200,000
13 58 4,162 0 20,242 21,025 200,000 35,795 36,578 200,000 44,354 45,137 200,000
14 59 4,162 0 20,819 21,211 200,000 38,870 39,261 200,000 48,711 49,102 200,000
15 60 4,162 0 21,101 21,101 200,000 41,860 41,860 200,000 53,148 53,148 200,000
16 61 4,162 0 20,669 20,669 200,000 44,360 44,360 200,000 57,679 57,679 200,000
17 62 4,162 0 19,847 19,847 200,000 46,704 46,704 200,000 62,303 62,303 200,000
18 63 4,162 0 18,580 18,580 200,000 48,853 48,853 200,000 67,009 67,009 200,000
19 64 4,162 0 16,812 16,812 200,000 50,768 50,768 200,000 71,816 71,816 200,000
20 65 4,162 0 14,456 14,456 200,000 52,382 52,382 200,000 76,796 76,796 200,000
21 66 4,162 0 11,503 11,503 200,000 53,718 53,718 200,000 82,034 82,034 200,000
22 67 4,162 0 7,832 7,832 200,000 54,669 54,669 200,000 87,478 87,478 200,000
23 68 4,162 0 3,348 3,348 200,000 55,171 55,171 200,000 93,133 93,133 200,000
24 69 4,162 0 0 0 0 55,201 55,201 200,000 98,961 98,961 200,000
25 70 4,162 0 0 0 0 54,640 54,640 200,000 104,946 104,946 200,000
26 71 4,162 0 0 0 0 53,351 53,351 200,000 111,151 111,151 200,000
27 72 4,162 0 0 0 0 51,184 51,184 200,000 117,583 117,583 200,000
28 73 4,162 0 0 0 0 47,887 47,887 200,000 124,329 124,329 200,000
29 74 4,162 0 0 0 0 43,186 43,186 200,000 131,405 131,405 200,000
30 75 4,162 0 0 0 0 36,758 36,758 200,000 138,867 138,867 200,000
31 76 4,162 0 0 0 0 28,109 28,109 200,000 146,871 146,871 200,000
32 77 4,162 0 0 0 0 16,708 16,708 200,000 155,468 155,468 200,000
33 78 4,162 0 0 0 0 1,912 1,912 200,000 164,800 164,800 200,000
34 79 4,162 0 0 0 0 0 0 0 174,861 174,861 200,000
35 80 4,162 0 0 0 0 0 0 0 186,129 186,129 200,000
36 81 4,162 0 0 0 0 0 0 0 198,623 198,623 208,554
37 82 4,162 0 0 0 0 0 0 0 211,562 211,562 222,140
38 83 4,162 0 0 0 0 0 0 0 225,047 225,047 236,299
39 84 4,162 0 0 0 0 0 0 0 239,014 239,014 250,965
40 85 4,162 0 0 0 0 0 0 0 253,443 253,443 266,115
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 79. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-26
<PAGE> 215
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- -----------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET) 6.00% (4.46% NET)
---------------------------- ---------------------------- -----------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 4,162 0 0 0 0 0 0 0 268,344 268,344 281,762
42 87 4,162 0 0 0 0 0 0 0 283,679 283,679 297,863
43 88 4,162 0 0 0 0 0 0 0 299,458 299,458 314,431
44 89 4,162 0 0 0 0 0 0 0 315,663 315,663 331,446
45 90 4,162 0 0 0 0 0 0 0 332,277 332,277 348,891
46 91 4,162 0 0 0 0 0 0 0 349,240 349,240 366,702
47 92 4,162 0 0 0 0 0 0 0 367,425 367,425 382,122
48 93 4,162 0 0 0 0 0 0 0 387,057 387,057 398,669
49 94 4,162 0 0 0 0 0 0 0 408,396 408,396 416,564
50 95 4,162 0 0 0 0 0 0 0 431,750 431,750 436,068
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 79. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-27
<PAGE> 216
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-----------------------------
6.00% (4.46% NET)
-----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 0 0 818 2,901 200,000
2 47 4,162 0 0 0 3,716 6,155 200,000
3 48 4,162 0 0 0 5,516 9,430 200,000
4 49 4,162 0 0 0 8,793 12,707 200,000
5 50 4,162 0 0 0 12,124 16,038 200,000
6 51 4,162 0 0 0 15,885 19,407 200,000
7 52 4,162 0 0 0 19,691 22,821 200,000
8 53 4,162 0 0 0 23,592 26,332 200,000
9 54 4,162 0 0 0 27,556 29,904 200,000
10 55 4,162 0 0 0 31,570 33,527 200,000
11 56 4,162 0 0 0 35,803 37,369 200,000
12 57 4,162 0 0 0 40,118 41,292 200,000
13 58 4,162 0 0 0 44,354 45,137 200,000
14 59 4,162 0 0 0 48,711 49,102 200,000
15 60 4,162 0 0 0 53,148 53,148 200,000
16 61 4,162 0 0 0 57,679 57,679 200,000
17 62 4,162 0 0 0 62,303 62,303 200,000
18 63 4,162 0 0 0 67,009 67,009 200,000
19 64 4,162 0 0 0 71,816 71,816 200,000
20 65 4,162 0 0 0 76,796 76,796 200,000
21 66 4,162 0 0 0 82,034 82,034 200,000
22 67 4,162 0 0 0 87,478 87,478 200,000
23 68 4,162 0 0 0 93,133 93,133 200,000
24 69 4,162 0 0 0 98,961 98,961 200,000
25 70 4,162 0 0 0 104,946 104,946 200,000
26 71 4,162 0 0 0 111,151 111,151 200,000
27 72 4,162 0 0 0 117,583 117,583 200,000
28 73 4,162 0 0 0 124,329 124,329 200,000
29 74 4,162 0 0 0 131,405 131,405 200,000
30 75 4,162 0 0 0 138,867 138,867 200,000
31 76 4,162 0 0 0 146,871 146,871 200,000
32 77 4,162 0 0 0 155,468 155,468 200,000
33 78 4,162 0 0 0 164,800 164,800 200,000
34 79 4,162 0 0 0 174,861 174,861 200,000
35 80 4,162 0 0 0 186,129 186,129 200,000
36 81 4,162 0 0 0 198,623 198,623 208,554
37 82 4,162 0 0 0 211,562 211,562 222,140
38 83 4,162 0 0 0 225,047 225,047 236,299
39 84 4,162 0 0 0 239,014 239,014 250,965
40 85 4,162 0 0 0 253,443 253,443 266,115
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 79. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-28
<PAGE> 217
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-----------------------------
6.00% (4.46% NET)
-----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 4,162 0 0 0 268,344 268,344 281,762
42 87 4,162 0 0 0 283,679 283,679 297,863
43 88 4,162 0 0 0 299,458 299,458 314,431
44 89 4,162 0 0 0 315,663 315,663 331,446
45 90 4,162 0 0 0 332,277 332,277 348,891
46 91 4,162 0 0 0 349,240 349,240 366,702
47 92 4,162 0 0 0 367,425 367,425 382,122
48 93 4,162 0 0 0 387,057 387,057 398,669
49 94 4,162 0 0 0 408,396 408,396 416,564
50 95 4,162 0 0 0 431,750 431,750 436,068
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 79. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-29
<PAGE> 218
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
----------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
----------------------------- --------------------------------
(1) (2) (3) (5) (6) (8)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 622 2,704 200,000 1,015 3,097 200,000
2 47 4,162 0 2,683 5,122 200,000 3,821 6,259 200,000
3 48 4,162 0 3,492 7,405 200,000 5,741 9,654 200,000
4 49 4,162 0 5,622 9,535 200,000 9,375 13,288 200,000
5 50 4,162 0 7,603 11,516 200,000 13,281 17,194 200,000
6 51 4,162 0 9,830 13,352 200,000 17,888 21,410 200,000
7 52 4,162 0 11,894 15,025 200,000 22,823 25,954 200,000
8 53 4,162 0 13,754 16,493 200,000 28,090 30,829 200,000
9 54 4,162 0 15,414 17,762 200,000 33,738 36,086 200,000
10 55 4,162 0 16,834 18,791 200,000 39,785 41,742 200,000
11 56 4,162 0 18,228 19,794 200,000 46,654 48,219 200,000
12 57 4,162 0 19,371 20,545 200,000 54,118 55,292 200,000
13 58 4,162 0 20,242 21,025 200,000 62,258 63,041 200,000
14 59 4,162 0 20,819 21,211 200,000 71,170 71,561 200,000
15 60 4,162 0 21,101 21,101 200,000 80,987 80,987 200,000
16 61 4,162 0 20,669 20,669 200,000 91,458 91,458 200,000
17 62 4,162 0 19,847 19,847 200,000 103,117 103,117 200,000
18 63 4,162 0 18,580 18,580 200,000 116,160 116,160 200,000
19 64 4,162 0 16,812 16,812 200,000 130,830 130,830 200,000
20 65 4,162 0 14,456 14,456 200,000 147,419 147,419 200,000
21 66 4,162 0 11,503 11,503 200,000 166,399 166,399 200,000
22 67 4,162 0 7,832 7,832 200,000 187,659 187,659 223,314
23 68 4,162 0 3,348 3,348 200,000 211,020 211,020 249,003
24 69 4,162 0 0 0 0 236,704 236,704 276,943
25 70 4,162 0 0 0 0 264,935 264,935 307,324
26 71 4,162 0 0 0 0 295,962 295,962 340,357
27 72 4,162 0 0 0 0 330,269 330,269 373,204
28 73 4,162 0 0 0 0 368,260 368,260 408,768
29 74 4,162 0 0 0 0 410,425 410,425 447,364
30 75 4,162 0 0 0 0 457,360 457,360 489,375
31 76 4,162 0 0 0 0 509,768 509,768 535,256
32 77 4,162 0 0 0 0 567,446 567,446 595,818
33 78 4,162 0 0 0 0 630,892 630,892 662,437
34 79 4,162 0 0 0 0 700,656 700,656 735,689
35 80 4,162 0 0 0 0 777,320 777,320 816,186
36 81 4,162 0 0 0 0 861,496 861,496 904,571
37 82 4,162 0 0 0 0 953,840 953,840 1,001,532
38 83 4,162 0 0 0 0 1,055,020 1,055,020 1,107,771
39 84 4,162 0 0 0 0 1,165,737 1,165,737 1,224,023
40 85 4,162 0 0 0 0 1,286,753 1,286,753 1,351,090
<CAPTION>
CURRENT CHARGES
--------------------------------
12.00% (10.42% NET)
--------------------------------
(9) (11)
END VALUE (10) BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
---- --------- ----- --------
<S> <C> <C> <C>
1 1,015 3,097 200,000
2 4,311 6,750 200,000
3 6,744 10,657 200,000
4 10,916 14,829 200,000
5 15,435 19,349 200,000
6 20,715 24,237 200,000
7 26,414 29,545 200,000
8 32,629 35,368 200,000
9 39,383 41,731 200,000
10 46,729 48,686 200,000
11 55,018 56,583 200,000
12 64,135 65,309 200,000
13 74,053 74,836 200,000
14 85,067 85,459 200,000
15 97,294 97,294 200,000
16 110,793 110,793 200,000
17 125,880 125,880 200,000
18 142,788 142,788 200,000
19 161,816 161,816 200,652
20 183,057 183,057 223,330
21 206,634 206,634 247,961
22 232,663 232,663 276,869
23 261,393 261,393 308,444
24 293,077 293,077 342,900
25 327,996 327,996 380,475
26 366,500 366,500 421,475
27 409,101 409,101 462,284
28 456,323 456,323 506,518
29 508,718 508,718 554,303
30 566,955 566,955 606,642
31 631,865 631,865 663,458
32 703,501 703,501 738,677
33 782,508 782,508 821,634
34 869,296 869,296 912,761
35 964,767 964,767 1,013,006
36 1,069,756 1,069,756 1,123,244
37 1,185,042 1,185,042 1,244,294
38 1,312,126 1,312,126 1,377,733
39 1,451,694 1,451,694 1,524,279
40 1,604,713 1,604,713 1,684,949
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the Actual Rates of Investment Return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-30
<PAGE> 219
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
---------------------------- --------------------------------
(1) (2) (3) (5) (6) (8)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 4,162 0 0 0 0 1,418,894 1,418,894 1,489,839
42 87 4,162 0 0 0 0 1,563,074 1,563,074 1,641,228
43 88 4,162 0 0 0 0 1,720,280 1,720,280 1,806,294
44 89 4,162 0 0 0 0 1,891,423 1,891,423 1,985,994
45 90 4,162 0 0 0 0 2,077,583 2,077,583 2,181,462
46 91 4,162 0 0 0 0 2,279,880 2,279,880 2,393,874
47 92 4,162 0 0 0 0 2,506,421 2,506,421 2,606,677
48 93 4,162 0 0 0 0 2,761,292 2,761,292 2,844,131
49 94 4,162 0 0 0 0 3,049,265 3,049,265 3,110,250
50 95 4,162 0 0 0 0 3,376,529 3,376,529 3,410,294
<CAPTION>
CURRENT CHARGES
--------------------------------
12.00% (10.42% NET)
--------------------------------
(9) (11)
END VALUE (10) BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
---- --------- ----- --------
<S> <C> <C> <C>
41 1,772,428 1,772,428 1,861,049
42 1,955,847 1,955,847 2,053,640
43 2,156,393 2,156,393 2,264,213
44 2,375,396 2,375,396 2,494,166
45 2,614,294 2,614,294 2,745,008
46 2,874,237 2,874,237 3,017,948
47 3,164,492 3,164,492 3,291,072
48 3,490,076 3,490,076 3,594,778
49 3,857,017 3,857,017 3,934,157
50 4,272,656 4,272,656 4,315,383
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-31
<PAGE> 220
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
12.00% (10.42% NET)
--------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 0 0 1,015 3,097 200,000
2 47 4,162 0 0 0 4,311 6,750 200,000
3 48 4,162 0 0 0 6,744 10,657 200,000
4 49 4,162 0 0 0 10,916 14,829 200,000
5 50 4,162 0 0 0 15,435 19,349 200,000
6 51 4,162 0 0 0 20,715 24,237 200,000
7 52 4,162 0 0 0 26,414 29,545 200,000
8 53 4,162 0 0 0 32,629 35,368 200,000
9 54 4,162 0 0 0 39,383 41,731 200,000
10 55 4,162 0 0 0 46,729 48,686 200,000
11 56 4,162 0 0 0 55,018 56,583 200,000
12 57 4,162 0 0 0 64,135 65,309 200,000
13 58 4,162 0 0 0 74,053 74,836 200,000
14 59 4,162 0 0 0 85,067 85,459 200,000
15 60 4,162 0 0 0 97,294 97,294 200,000
16 61 4,162 0 0 0 110,793 110,793 200,000
17 62 4,162 0 0 0 125,880 125,880 200,000
18 63 4,162 0 0 0 142,788 142,788 200,000
19 64 4,162 0 0 0 161,816 161,816 200,652
20 65 4,162 0 0 0 183,057 183,057 223,330
21 66 4,162 0 0 0 206,634 206,634 247,961
22 67 4,162 0 0 0 232,663 232,663 276,869
23 68 4,162 0 0 0 261,393 261,393 308,444
24 69 4,162 0 0 0 293,077 293,077 342,900
25 70 4,162 0 0 0 327,996 327,996 380,475
26 71 4,162 0 0 0 366,500 366,500 421,475
27 72 4,162 0 0 0 409,101 409,101 462,284
28 73 4,162 0 0 0 456,323 456,323 506,518
29 74 4,162 0 0 0 508,718 508,718 554,503
30 75 4,162 0 0 0 566,955 566,955 606,642
31 76 4,162 0 0 0 631,865 631,865 663,458
32 77 4,162 0 0 0 703,501 703,501 738,677
33 78 4,162 0 0 0 782,508 782,508 821,634
34 79 4,162 0 0 0 869,296 869,296 912,761
35 80 4,162 0 0 0 964,767 964,767 1,013,006
36 81 4,162 0 0 0 1,069,756 1,069,756 1,123,244
37 82 4,162 0 0 0 1,185,042 1,185,042 1,244,294
38 83 4,162 0 0 0 1,312,126 1,312,126 1,377,733
39 84 4,162 0 0 0 1,451,694 1,451,694 1,524,279
40 85 4,162 0 0 0 1,604,713 1,604,713 1,684,949
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-32
<PAGE> 221
<TABLE>
<S> <C> <C>
ALLOCATION OF VALUES
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE STANDARD SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 4,162.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
12.00% (10.42% NET)
--------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 4,162 0 0 0 1,772,428 1,772,428 1,861,049
42 87 4,162 0 0 0 1,955,847 1,955,847 2,053,640
43 88 4,162 0 0 0 2,156,393 2,156,393 2,264,213
44 89 4,162 0 0 0 2,375,396 2,375,396 2,494,166
45 90 4,162 0 0 0 2,614,294 2,614,294 2,745,008
46 91 4,162 0 0 0 2,874,237 2,874,237 3,017,948
47 92 4,162 0 0 0 3,164,492 3,164,492 3,291,072
48 93 4,162 0 0 0 3,490,076 3,490,076 3,594,778
49 94 4,162 0 0 0 3,857,017 3,857,017 3,934,157
50 95 4,162 0 0 0 4,272,656 4,272,656 4,315,383
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $57,396.36 INITIAL GUIDELINE ANNUAL: $4,697.10 INITIAL TWO YEAR MINIMUM: $4,162.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-33
<PAGE> 222
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT PLUS FUND VALUE
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------ ----------------------------
0.00% (-1.49% NET) 0.00% (-1.49% NET) 0.00% (-1.49% NET)
----------------------------- ---------------------------- ----------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 347 2,150 202,150 347 2,150 202,150 347 2,150 202,150
2 47 3,088 0 1,578 4,184 204,184 1,578 4,184 204,184 1,888 4,493 204,493
3 48 3,088 0 2,979 6,140 206,140 2,979 6,140 206,140 3,545 6,707 206,707
4 49 3,088 0 4,834 7,996 207,996 4,834 7,996 207,996 5,607 8,769 208,769
5 50 3,088 0 6,591 9,753 209,753 6,591 9,753 209,753 7,566 10,728 210,728
6 51 3,088 0 8,566 11,412 211,412 8,566 11,412 211,412 9,694 12,539 212,539
7 52 3,088 0 10,422 12,951 212,951 10,422 12,951 212,951 11,746 14,276 214,276
8 53 3,088 0 12,159 14,372 214,372 12,159 14,372 214,372 13,725 15,939 215,939
9 54 3,088 0 13,755 15,652 215,652 13,755 15,652 215,652 15,656 17,553 217,553
10 55 3,088 0 15,214 16,795 216,795 15,214 16,795 216,795 17,515 19,096 219,096
11 56 3,088 0 16,667 17,932 217,932 16,667 17,932 217,932 19,374 20,639 220,639
12 57 3,088 0 17,941 18,890 218,890 17,941 18,890 218,890 21,027 21,976 221,976
13 58 3,088 0 19,039 19,671 219,671 19,039 19,671 219,671 22,572 23,204 223,204
14 59 3,088 0 19,938 20,254 220,254 19,938 20,254 220,254 24,032 24,348 224,348
15 60 3,088 0 20,616 20,616 220,616 20,616 20,616 220,616 25,434 25,434 225,434
16 61 3,088 0 20,736 20,736 220,736 20,736 20,736 220,736 26,675 26,675 226,675
17 62 3,088 0 20,592 20,592 220,592 20,592 20,592 220,592 27,761 27,761 227,761
18 63 3,088 0 20,187 20,187 220,187 20,187 20,187 220,187 28,645 28,645 228,645
19 64 3,088 0 19,428 19,428 219,428 19,428 19,428 219,428 29,401 29,401 229,401
20 65 3,088 0 18,295 18,295 218,295 18,295 18,295 218,295 30,030 30,030 230,030
21 66 3,088 0 16,804 16,804 216,804 16,804 16,804 216,804 30,546 30,546 230,546
22 67 3,088 0 14,875 14,875 214,875 14,875 14,875 214,875 30,915 30,915 230,915
23 68 3,088 0 12,464 12,464 212,464 12,464 12,464 212,464 31,065 31,065 231,065
24 69 3,088 0 9,527 9,527 209,527 9,527 9,527 209,527 30,950 30,950 230,950
25 70 3,088 0 6,047 6,047 206,047 6,047 6,047 206,047 30,503 30,503 230,503
26 71 3,088 0 1,934 1,934 201,934 1,934 1,934 201,934 29,750 29,750 229,750
27 72 3,088 0 0 0 0 0 0 0 28,599 28,599 228,599
28 73 3,088 0 0 0 0 0 0 0 27,101 27,101 227,101
29 74 3,088 0 0 0 0 0 0 0 25,116 25,116 225,116
30 75 3,088 0 0 0 0 0 0 0 22,627 22,627 222,627
31 76 3,088 0 0 0 0 0 0 0 19,661 19,661 219,661
32 77 3,088 0 0 0 0 0 0 0 16,080 16,080 216,080
33 78 3,088 0 0 0 0 0 0 0 11,771 11,771 211,771
34 79 3,088 0 0 0 0 0 0 0 5,977 5,977 205,977
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 72. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 80.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the Actual Rates of Investment Return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-34
<PAGE> 223
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY PLUS FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------
0.00% (-1.49% NET)
----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 347 2,150 202,150
2 47 3,088 0 0 0 1,888 4,493 204,493
3 48 3,088 0 0 0 3,545 6,707 206,707
4 49 3,088 0 0 0 5,607 8,769 208,769
5 50 3,088 0 0 0 7,566 10,728 210,728
6 51 3,088 0 0 0 9,694 12,539 212,539
7 52 3,088 0 0 0 11,746 14,276 214,276
8 53 3,088 0 0 0 13,725 15,939 215,939
9 54 3,088 0 0 0 15,656 17,553 217,553
10 55 3,088 0 0 0 17,515 19,096 219,096
11 56 3,088 0 0 0 19,374 20,639 220,639
12 57 3,088 0 0 0 21,027 21,976 221,976
13 58 3,088 0 0 0 22,572 23,204 223,204
14 59 3,088 0 0 0 24,032 24,348 224,348
15 60 3,088 0 0 0 25,434 25,434 225,434
16 61 3,088 0 0 0 26,675 26,675 226,675
17 62 3,088 0 0 0 27,761 27,761 227,761
18 63 3,088 0 0 0 28,645 28,645 228,645
19 64 3,088 0 0 0 29,401 29,401 229,401
20 65 3,088 0 0 0 30,030 30,030 230,030
21 66 3,088 0 0 0 30,546 30,546 230,546
22 67 3,088 0 0 0 30,915 30,915 230,915
23 68 3,088 0 0 0 31,065 31,065 231,065
24 69 3,088 0 0 0 30,950 30,950 230,950
25 70 3,088 0 0 0 30,503 30,503 230,503
26 71 3,088 0 0 0 29,750 29,750 229,750
27 72 3,088 0 0 0 28,599 28,599 228,599
28 73 3,088 0 0 0 27,101 27,101 227,101
29 74 3,088 0 0 0 25,116 25,116 225,116
30 75 3,088 0 0 0 22,627 22,627 222,627
31 76 3,088 0 0 0 19,661 19,661 219,661
32 77 3,088 0 0 0 16,080 16,080 216,080
33 78 3,088 0 0 0 11,771 11,771 211,771
34 79 3,088 0 0 0 5,977 5,977 205,977
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 72. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 80.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-35
<PAGE> 224
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY PLUS FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------- ------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET) 6.00% (4.46% NET)
----------------------------- ----------------------------- ------------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 347 2,150 202,150 497 2,300 202,300 497 2,300 202,300
2 47 3,088 0 1,578 4,184 204,184 2,010 4,616 204,616 2,329 4,935 204,935
3 48 3,088 0 2,979 6,140 206,140 3,824 6,986 206,986 4,429 7,590 207,590
4 49 3,088 0 4,834 7,996 207,996 6,227 9,389 209,389 7,079 10,241 210,241
5 50 3,088 0 6,591 9,753 209,753 8,663 11,824 211,824 9,774 12,936 212,936
6 51 3,088 0 8,566 11,412 211,412 11,450 14,295 214,295 12,783 15,629 215,629
7 52 3,088 0 10,422 12,951 212,951 14,249 16,778 216,778 15,863 18,392 218,392
8 53 3,088 0 12,159 14,372 214,372 17,061 19,274 219,274 19,017 21,230 221,230
9 54 3,088 0 13,755 15,652 215,652 19,861 21,758 221,758 22,273 24,170 224,170
10 55 3,088 0 15,214 16,795 216,795 22,649 24,230 224,230 25,611 27,192 227,192
11 56 3,088 0 16,667 17,932 217,932 25,602 26,867 226,867 29,156 30,421 230,421
12 57 3,088 0 17,941 18,890 218,890 28,515 29,463 229,463 32,665 33,613 233,613
13 58 3,088 0 19,039 19,671 219,671 31,384 32,017 232,017 36,234 36,866 236,866
14 59 3,088 0 19,938 20,254 220,254 34,184 34,500 234,500 39,891 40,207 240,207
15 60 3,088 0 20,616 20,616 220,616 36,885 36,885 236,885 43,666 43,666 243,666
16 61 3,088 0 20,736 20,736 220,736 39,143 39,143 239,143 47,470 47,470 247,470
17 62 3,088 0 20,592 20,592 220,592 41,243 41,243 241,243 51,315 51,315 251,315
18 63 3,088 0 20,187 20,187 220,187 43,176 43,176 243,176 55,155 55,155 255,155
19 64 3,088 0 19,428 19,428 219,428 44,836 44,836 244,836 59,064 59,064 259,064
20 65 3,088 0 18,295 18,295 218,295 46,184 46,184 246,184 63,044 63,044 263,044
21 66 3,088 0 16,804 16,804 216,804 47,221 47,221 247,221 67,115 67,115 267,115
22 67 3,088 0 14,875 14,875 214,875 47,841 47,841 247,841 71,241 71,241 271,241
23 68 3,088 0 12,464 12,464 212,464 47,975 47,975 247,975 75,351 75,351 275,351
24 69 3,088 0 9,527 9,527 209,527 47,549 47,549 247,549 79,395 79,395 279,395
25 70 3,088 0 6,047 6,047 206,047 46,510 46,510 246,510 83,296 83,296 283,296
26 71 3,088 0 1,934 1,934 201,934 44,729 44,729 244,729 87,071 87,071 287,071
27 72 3,088 0 0 0 0 41,947 41,947 241,947 90,615 90,615 290,615
28 73 3,088 0 0 0 0 38,238 38,238 238,238 93,966 93,966 293,966
29 74 3,088 0 0 0 0 33,334 33,334 233,334 96,967 96,967 296,967
30 75 3,088 0 0 0 0 27,002 27,002 227,002 99,575 99,575 299,575
31 76 3,088 0 0 0 0 19,073 19,073 219,073 101,796 101,796 301,796
32 77 3,088 0 0 0 0 9,394 9,394 209,394 103,463 103,463 303,463
33 78 3,088 0 0 0 0 0 0 0 104,424 104,424 304,424
34 79 3,088 0 0 0 0 0 0 0 103,855 103,855 303,855
35 80 3,088 0 0 0 0 0 0 0 102,125 102,125 302,125
36 81 3,088 0 0 0 0 0 0 0 99,150 99,150 299,150
37 82 3,088 0 0 0 0 0 0 0 94,622 94,622 294,622
38 83 3,088 0 0 0 0 0 0 0 89,425 89,425 289,425
39 84 3,088 0 0 0 0 0 0 0 82,736 82,736 282,736
40 85 3,088 0 0 0 0 0 0 0 74,162 74,162 274,162
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 80.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-36
<PAGE> 225
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY PLUS FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
----------------------------------------------------------- ----------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET) 6.00% (4.46% NET)
---------------------------- ---------------------------- ----------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 0 0 0 0 63,607 63,607 263,607
42 87 3,088 0 0 0 0 0 0 0 50,628 50,628 250,628
43 88 3,088 0 0 0 0 0 0 0 35,129 35,129 235,129
44 89 3,088 0 0 0 0 0 0 0 16,836 16,836 216,836
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, Contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 90.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-37
<PAGE> 226
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT PLUS
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-----------------------------
6.00% (4.46% NET)
-----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 497 2,300 202,300
2 47 3,088 0 0 0 2,329 4,935 204,935
3 48 3,088 0 0 0 4,429 7,590 207,590
4 49 3,088 0 0 0 7,079 10,241 210,241
5 50 3,088 0 0 0 9,774 12,936 212,936
6 51 3,088 0 0 0 12,783 15,629 215,629
7 52 3,088 0 0 0 15,863 18,392 218,392
8 53 3,088 0 0 0 19,017 21,230 221,230
9 54 3,088 0 0 0 22,273 24,170 224,170
10 55 3,088 0 0 0 25,611 27,192 227,192
11 56 3,088 0 0 0 29,156 30,421 230,421
12 57 3,088 0 0 0 32,665 33,613 233,613
13 58 3,088 0 0 0 36,234 36,866 236,866
14 59 3,088 0 0 0 39,891 40,207 240,207
15 60 3,088 0 0 0 43,666 43,666 243,666
16 61 3,088 0 0 0 47,470 47,470 247,470
17 62 3,088 0 0 0 51,315 51,315 251,315
18 63 3,088 0 0 0 55,155 55,155 255,155
19 64 3,088 0 0 0 59,064 59,064 259,064
20 65 3,088 0 0 0 63,044 63,044 263,044
21 66 3,088 0 0 0 67,115 67,115 267,115
22 67 3,088 0 0 0 71,241 71,241 271,241
23 68 3,088 0 0 0 75,351 75,351 275,351
24 69 3,088 0 0 0 79,395 79,395 279,395
25 70 3,088 0 0 0 83,296 83,296 283,296
26 71 3,088 0 0 0 87,071 87,071 287,071
27 72 3,088 0 0 0 90,615 90,615 290,615
28 73 3,088 0 0 0 93,966 93,966 293,966
29 74 3,088 0 0 0 96,967 96,967 296,967
30 75 3,088 0 0 0 99,575 99,575 299,575
31 76 3,088 0 0 0 101,796 101,796 301,796
32 77 3,088 0 0 0 103,463 103,463 303,463
33 78 3,088 0 0 0 104,424 104,424 304,424
34 79 3,088 0 0 0 103,855 103,855 303,855
35 80 3,088 0 0 0 102,125 102,125 302,125
36 81 3,088 0 0 0 99,150 99,150 299,150
37 82 3,088 0 0 0 94,622 94,622 294,622
38 83 3,088 0 0 0 89,425 89,425 289,425
39 84 3,088 0 0 0 82,736 82,736 282,736
40 85 3,088 0 0 0 74,162 74,162 274,162
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 90.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-38
<PAGE> 227
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------
6.00% (4.46% NET)
----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 63,607 63,607 263,607
42 87 3,088 0 0 0 50,628 50,628 250,628
43 88 3,088 0 0 0 35,129 35,129 235,129
44 89 3,088 0 0 0 16,836 16,836 216,836
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 90.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-39
<PAGE> 228
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT PLUS
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
----------------------------- ------------------------------
(1) (2) (3) (5) (6) (8)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 347 2,150 202,150 647 2,450 202,450
2 47 3,088 0 1,578 4,184 204,184 2,460 5,066 205,066
3 48 3,088 0 2,979 6,140 206,140 4,743 7,904 207,904
4 49 3,088 0 4,834 7,996 207,996 7,801 10,962 210,962
5 50 3,088 0 6,591 9,753 209,753 11,101 14,263 214,263
6 51 3,088 0 8,566 11,412 211,412 14,986 17,831 217,831
7 52 3,088 0 10,422 12,951 212,951 19,141 21,670 221,670
8 53 3,088 0 12,159 14,372 214,372 23,595 25,808 225,808
9 54 3,088 0 13,755 15,652 215,652 28,353 30,250 230,250
10 55 3,088 0 15,214 16,795 216,795 33,447 35,028 235,028
11 56 3,088 0 16,667 17,932 217,932 39,161 40,426 240,426
12 57 3,088 0 17,941 18,890 218,890 45,289 46,238 246,238
13 58 3,088 0 19,039 19,671 219,671 51,877 52,510 252,510
14 59 3,088 0 19,938 20,254 220,254 58,950 59,267 259,267
15 60 3,088 0 20,616 20,616 220,616 66,536 66,536 266,536
16 61 3,088 0 20,736 20,736 220,736 74,349 74,349 274,349
17 62 3,088 0 20,592 20,592 220,592 82,740 82,740 282,740
18 63 3,088 0 20,187 20,187 220,187 91,773 91,773 291,773
19 64 3,088 0 19,428 19,428 219,428 101,415 101,415 301,415
20 65 3,088 0 18,295 18,295 218,295 111,709 111,709 311,709
21 66 3,088 0 16,804 16,804 216,804 122,744 122,744 322,744
22 67 3,088 0 14,875 14,875 214,875 134,506 134,506 334,506
23 68 3,088 0 12,464 12,464 212,464 147,026 147,026 347,026
24 69 3,088 0 9,527 9,527 209,527 160,335 160,335 360,335
25 70 3,088 0 6,047 6,047 206,047 174,495 174,495 374,495
26 71 3,088 0 1,934 1,934 201,934 189,498 189,498 389,498
27 72 3,088 0 0 0 0 205,206 205,206 405,206
28 73 3,088 0 0 0 0 221,825 221,825 421,825
29 74 3,088 0 0 0 0 239,226 239,226 439,226
30 75 3,088 0 0 0 0 257,317 257,317 457,317
31 76 3,088 0 0 0 0 276,072 276,072 476,072
32 77 3,088 0 0 0 0 295,488 295,488 495,488
33 78 3,088 0 0 0 0 315,560 315,560 515,560
34 79 3,088 0 0 0 0 336,286 336,286 536,286
35 80 3,088 0 0 0 0 357,634 357,634 557,634
36 81 3,088 0 0 0 0 379,495 379,495 579,495
37 82 3,088 0 0 0 0 401,723 401,723 601,723
38 83 3,088 0 0 0 0 424,028 424,028 624,028
39 84 3,088 0 0 0 0 446,112 446,112 646,112
40 85 3,088 0 0 0 0 467,672 467,672 667,672
<CAPTION>
CURRENT CHARGES
-------------------------------
12.00% (10.42% NET)
-------------------------------
(9) (11)
END VALUE (10) BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
---- --------- ----- --------
<S> <C> <C> <C>
1 647 2,450 202,450
2 2,790 5,395 205,395
3 5,385 8,547 208,547
4 8,738 11,900 211,900
5 12,364 15,526 215,526
6 16,558 19,403 219,403
7 21,105 23,634 223,634
8 26,042 28,255 228,255
9 31,435 33,332 233,332
10 37,306 38,887 238,887
11 43,901 45,165 245,165
12 50,981 51,929 251,929
13 58,701 59,334 259,334
14 67,158 67,474 267,474
15 76,458 76,458 276,458
16 86,604 86,604 286,604
17 97,712 97,712 297,712
18 109,835 109,835 309,835
19 123,161 123,161 323,161
20 137,822 137,822 337,822
21 153,983 153,983 353,983
22 171,765 171,765 371,765
23 191,269 191,269 391,269
24 212,633 212,633 212,633
25 235,986 235,986 435,986
26 261,572 261,572 461,572
27 289,532 289,532 489,532
28 320,180 320,180 520,180
29 353,657 353,657 553,657
30 390,248 390,248 590,248
31 430,320 430,320 630,320
32 474,104 474,104 674,104
33 521,878 521,878 721,878
34 573,269 573,269 773,269
35 629,130 629,130 829,130
36 689,926 689,926 889,926
37 755,945 755,945 955,945
38 828,751 828,751 1,028,751
39 908,275 908,275 1,108,275
40 994,923 994,923 1,194,923
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-40
<PAGE> 229
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT PLUS
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
-------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
---------------------------- ------------------------------
(1) (2) (3) (5) (6) (8)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 0 488,423 488,423 688,423
42 87 3,088 0 0 0 0 508,097 508,097 708,097
43 88 3,088 0 0 0 0 526,450 526,450 726,450
44 89 3,088 0 0 0 0 543,209 543,209 743,209
45 90 3,088 0 0 0 0 558,098 558,098 758,098
46 91 3,088 0 0 0 0 570,708 570,708 770,708
47 92 3,088 0 0 0 0 580,511 580,511 780,511
48 93 3,088 0 0 0 0 586,791 586,791 786,791
49 94 3,088 0 0 0 0 588,501 588,501 788,501
50 95 3,088 0 0 0 0 583,540 583,540 783,540
<CAPTION>
CURRENT CHARGES
---------------------------------
12.00% (10.42% NET)
---------------------------------
(9) (11)
END VALUE (10) BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
---- --------- ----- --------
<S> <C> <C> <C>
41 1,089,479 1,089,479 1,289,479
42 1,192,454 1,192,454 1,392,454
43 1,304,797 1,304,797 1,504,797
44 1,427,383 1,427,383 1,627,383
45 1,561,159 1,561,159 1,761,159
46 1,706,920 1,706,920 1,906,920
47 1,865,093 1,865,093 2,065,093
48 2,035,439 2,035,439 2,235,439
49 2,218,861 2,218,861 2,418,861
50 2,415,931 2,415,931 2,615,931
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, Contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change the hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-41
<PAGE> 230
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY PLUS FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
------------------------------
12.00% (10.42% NET)
------------------------------
END UNSCHEDULED BENEFIT
OF PREMIUM/ NET TOTAL VALUE ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 647 2,450 202,450
2 47 3,088 0 0 0 2,790 5,395 205,395
3 48 3,088 0 0 0 5,385 8,547 208,547
4 49 3,088 0 0 0 8,738 11,900 211,900
5 50 3,088 0 0 0 12,364 15,526 215,526
6 51 3,088 0 0 0 16,558 19,403 219,403
7 52 3,088 0 0 0 21,105 23,634 223,634
8 53 3,088 0 0 0 26,042 28,255 228,255
9 54 3,088 0 0 0 31,435 33,332 233,332
10 55 3,088 0 0 0 37,306 38,887 238,887
11 56 3,088 0 0 0 43,901 45,165 245,165
12 57 3,088 0 0 0 50,981 51,929 251,929
13 58 3,088 0 0 0 58,701 59,334 259,334
14 59 3,088 0 0 0 67,158 67,474 267,474
15 60 3,088 0 0 0 76,458 76,458 276,458
16 61 3,088 0 0 0 86,604 86,604 286,604
17 62 3,088 0 0 0 97,712 97,712 297,712
18 63 3,088 0 0 0 109,835 109,835 309,835
19 64 3,088 0 0 0 123,161 123,161 323,161
20 65 3,088 0 0 0 137,822 137,822 337,822
21 66 3,088 0 0 0 153,983 153,983 353,983
22 67 3,088 0 0 0 171,765 171,765 371,765
23 68 3,088 0 0 0 191,269 191,269 391,269
24 69 3,088 0 0 0 212,633 212,633 412,633
25 70 3,088 0 0 0 235,986 235,986 435,986
26 71 3,088 0 0 0 261,572 261,572 461,572
27 72 3,088 0 0 0 289,532 289,532 489,532
28 73 3,088 0 0 0 320,180 320,180 520,180
29 74 3,088 0 0 0 353,657 353,657 553,657
30 75 3,088 0 0 0 390,248 390,248 590,248
31 76 3,088 0 0 0 430,320 430,320 630,320
32 77 3,088 0 0 0 474,104 474,104 674,104
33 78 3,088 0 0 0 521,878 521,878 721,878
34 79 3,088 0 0 0 573,269 573,269 773,269
35 80 3,088 0 0 0 629,130 629,130 829,130
36 81 3,088 0 0 0 689,926 689,926 889,926
37 82 3,088 0 0 0 755,945 755,945 955,945
38 83 3,088 0 0 0 828,751 828,751 1,028,751
39 84 3,088 0 0 0 908,275 908,275 1,108,275
40 85 3,088 0 0 0 994,923 994,923 1,194,923
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-42
<PAGE> 231
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE INSURANCE COMPANY PLUS FUND VALUE
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
12.00% (10.42% NET)
--------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 1,089,479 1,089,479 1,289,479
42 87 3,088 0 0 0 1,192,454 1,192,454 1,392,454
43 88 3,088 0 0 0 1,304,797 1,304,797 1,504,797
44 89 3,088 0 0 0 1,427,383 1,427,383 1,627,383
45 90 3,088 0 0 0 1,561,159 1,561,159 1,761,159
46 91 3,088 0 0 0 1,706,920 1,706,920 1,906,920
47 92 3,088 0 0 0 1,865,093 1,865,093 2,065,093
48 93 3,088 0 0 0 2,035,439 2,035,439 2,235,439
49 94 3,088 0 0 0 2,218,861 2,218,861 2,418,861
50 95 3,088 0 0 0 2,415,931 2,415,931 2,615,931
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $44,533.12 INITIAL GUIDELINE ANNUAL: $7,915.78 INITIAL TWO YEAR MINIMUM: $3,088.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-43
<PAGE> 232
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------- -----------------------------
0.00% (-1.49% NET) 0.00% (-1.49% NET) 0.00% (-1.49% NET)
----------------------------- ----------------------------- -----------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 888 200,000 0 888 200,000 0 888 200,000
2 37 1,646 0 343 1,968 200,000 343 1968 200,000 437 2,062 200,000
3 38 1,646 0 775 3,010 200,000 775 3,010 200,000 985 3,220 200,000
4 39 1,646 0 1,780 4,015 200,000 1,780 4,015 200,000 2,081 4,315 200,000
5 40 1,646 0 2,749 4,984 200,000 2,749 4,984 200,000 3,139 5,373 200,000
6 41 1,646 0 3,906 5,917 200,000 3,906 5,917 200,000 4,360 6,371 200,000
7 42 1,646 0 5,005 6,793 200,000 5,005 6,793 200,000 5,545 7,332 200,000
8 43 1,646 0 6,071 7,635 200,000 6,071 7,635 200,000 6,718 8,282 200,000
9 44 1,646 0 7,080 8,421 200,000 7,080 8,421 200,000 7,855 9,196 200,000
10 45 1,646 0 8,035 9,152 200,000 8,035 9,152 200,000 8,959 10,076 200,000
11 46 1,646 0 9,019 9,913 200,000 9,019 9,913 200,000 10,072 10,966 200,000
12 47 1,646 0 9,953 10,623 200,000 9,953 10,623 200,000 11,135 11,805 200,000
13 48 1,646 0 10,838 11,285 200,000 10,838 11,285 200,000 12,168 12,615 200,000
14 49 1,646 0 11,651 11,874 200,000 11,651 11,874 200,000 13,152 13,375 200,000
15 50 1,646 0 12,394 12,394 200,000 12,394 12,394 200,000 14,086 14,086 200,000
16 51 1,646 0 12,843 12,843 200,000 12,843 12,843 200,000 14,858 14,858 200,000
17 52 1,646 0 13,201 13,201 200,000 13,201 13,201 200,000 15,559 15,559 200,000
18 53 1,646 0 13,469 13,469 200,000 13,469 13,469 200,000 16,212 16,212 200,000
19 54 1,646 0 13,624 13,624 200,000 13,624 13,624 200,000 16,838 16,838 200,000
20 55 1,646 0 13,668 13,668 200,000 13,668 13,668 200,000 17,439 17,439 200,000
21 56 1,646 0 13,611 13,611 200,000 13,611 13,611 200,000 18,048 18,048 200,000
22 57 1,646 0 13,399 13,399 200,000 13,399 13,399 200,000 18,588 18,588 200,000
23 58 1,646 0 13,031 13,031 200,000 13,031 13,031 200,000 19,017 19,017 200,000
24 59 1,646 0 12,484 12,484 200,000 12,484 12,484 200,000 19,358 19,358 200,000
25 60 1,646 0 11,736 11,736 200,000 11,736 11,736 200,000 19,590 19,590 200,000
26 61 1,646 0 10,761 10,761 200,000 10,761 10,761 200,000 19,713 19,713 200,000
27 62 1,646 0 9,534 9,534 200,000 9,534 9,534 200,000 19,707 19,707 200,000
28 63 1,646 0 8,050 8,050 200,000 8,050 8,050 200,000 19,551 19,551 200,000
29 64 1,646 0 6,213 6,213 200,000 6,213 6,213 200,000 19,266 19,266 200,000
30 65 1,646 0 3,989 3,989 200,000 3,989 3,989 200,000 18,851 18,851 200,000
31 66 1,646 0 1,320 1,320 200,000 1,320 1,320 200,000 18,286 18,286 200,000
32 67 1,646 0 0 0 0 0 0 0 17,589 17,589 200,000
33 68 1,646 0 0 0 0 0 0 0 16,696 16,696 200,000
34 69 1,646 0 0 0 0 0 0 0 15,558 15,558 200,000
35 70 1,646 0 0 0 0 0 0 0 14,107 14,107 200,000
36 71 1,646 0 0 0 0 0 0 0 12,358 12,358 200,000
37 72 1,646 0 0 0 0 0 0 0 10,212 10,212 200,000
38 73 1,646 0 0 0 0 0 0 0 7,704 7,704 200,000
39 74 1,646 0 0 0 0 0 0 0 4,682 4,682 200,000
40 75 1,646 0 0 0 0 0 0 0 1,099 1,099 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, Contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 67. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 76.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-44
<PAGE> 233
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
35 TO AGE 95 SPECIFIED AMOUNT
TABLE: 0 MONY LIFE INSURANCE COMPANY
1ST YR ANNUAL DECLARED PREMIUMS
PREMIUM = 1,646.00
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------
0.00% (-1.49% NET)
----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 0 0 888 200,000
2 37 1,646 0 0 0 437 2,062 200,000
3 38 1,646 0 0 0 985 3,220 200,000
4 39 1,646 0 0 0 2,081 4,315 200,000
5 40 1,646 0 0 0 3,139 5,373 200,000
6 41 1,646 0 0 0 4,360 6,371 200,000
7 42 1,646 0 0 0 5,545 7,332 200,000
8 43 1,646 0 0 0 6,718 8,282 200,000
9 44 1,646 0 0 0 7,855 9,196 200,000
10 45 1,646 0 0 0 8,959 10,076 200,000
11 46 1,646 0 0 0 10,072 10,966 200,000
12 47 1,646 0 0 0 11,135 11,805 200,000
13 48 1,646 0 0 0 12,168 12,615 200,000
14 49 1,646 0 0 0 13,152 13,375 200,000
15 50 1,646 0 0 0 14,086 14,086 200,000
16 51 1,646 0 0 0 14,858 14,858 200,000
17 52 1,646 0 0 0 15,559 15,559 200,000
18 53 1,646 0 0 0 16,212 16,212 200,000
19 54 1,646 0 0 0 16,838 16,838 200,000
20 55 1,646 0 0 0 17,439 17,439 200,000
21 56 1,646 0 0 0 18,048 18,048 200,000
22 57 1,646 0 0 0 18,588 18,588 200,000
23 58 1,646 0 0 0 19,017 19,017 200,000
24 59 1,646 0 0 0 19,358 19,358 200,000
25 60 1,646 0 0 0 19,590 19,590 200,000
26 61 1,646 0 0 0 19,713 19,713 200,000
27 62 1,646 0 0 0 19,707 19,707 200,000
28 63 1,646 0 0 0 19,551 19,551 200,000
29 64 1,646 0 0 0 19,266 19,266 200,000
30 65 1,646 0 0 0 18,851 18,851 200,000
31 66 1,646 0 0 0 18,286 18,286 200,000
32 67 1,646 0 0 0 17,589 17,589 200,000
33 68 1,646 0 0 0 16,696 16,696 200,000
34 69 1,646 0 0 0 15,558 15,558 200,000
35 70 1,646 0 0 0 14,107 14,107 200,000
36 71 1,646 0 0 0 12,358 12,358 200,000
37 72 1,646 0 0 0 10,212 10,212 200,000
38 73 1,646 0 0 0 7,704 7,704 200,000
39 74 1,646 0 0 0 4,682 4,682 200,000
40 75 1,646 0 0 0 1,099 1,099 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 67. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 76.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-45
<PAGE> 234
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------- ------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET) 6.00% (4.46% NET)
----------------------------- ----------------------------- ------------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 888 200,000 0 960 200,000 0 960 200,000
2 37 1,646 0 343 1,968 200,000 549 2,174 200,000 646 2,271 200,000
3 38 1,646 0 775 3,010 200,000 1,186 3,420 200,000 1,408 3,643 200,000
4 39 1,646 0 1,780 4,015 200,000 2,466 4,701 200,000 2,795 5,030 200,000
5 40 1,646 0 2,749 4,984 200,000 3,783 6,017 200,000 4,222 6,457 200,000
6 41 1,646 0 3,906 5,917 200,000 5,361 7,372 200,000 5,892 7,903 200,000
7 42 1,646 0 5,005 6,793 200,000 6,956 8,743 200,000 7,606 9,393 200,000
8 43 1,646 0 6,071 7,635 200,000 8,592 10,156 200,000 9,389 10,953 200,000
9 44 1,646 0 7,080 8,421 200,000 10,249 11,590 200,000 11,222 12,563 200,000
10 45 1,646 0 8,035 9,152 200,000 11,928 13,045 200,000 13,108 14,225 200,000
11 46 1,646 0 9,019 9,913 200,000 13,741 14,634 200,000 15,120 16,014 200,000
12 47 1,646 0 9,953 10,623 200,000 15,593 16,263 200,000 17,181 17,851 200,000
13 48 1,646 0 10,838 11,285 200,000 17,487 17,934 200,000 19,317 19,764 200,000
14 49 1,646 0 11,651 11,874 200,000 19,405 19,628 200,000 21,510 21,734 200,000
15 50 1,646 0 12,394 12,394 200,000 21,348 21,348 200,000 23,765 23,765 200,000
16 51 1,646 0 12,843 12,843 200,000 23,097 23,097 200,000 25,969 25,969 200,000
17 52 1,646 0 13,201 13,201 200,000 24,855 24,855 200,000 28,227 28,227 200,000
18 53 1,646 0 13,469 13,469 200,000 26,625 26,625 200,000 30,564 30,564 200,000
19 54 1,646 0 13,624 13,624 200,000 28,388 28,388 200,000 33,006 33,006 200,000
20 55 1,646 0 13,668 13,668 200,000 30,146 30,146 200,000 35,560 35,560 200,000
21 56 1,646 0 13,611 13,611 200,000 31,915 31,915 200,000 38,265 38,265 200,000
22 57 1,646 0 13,399 13,399 200,000 33,643 33,643 200,000 41,059 41,059 200,000
23 58 1,646 0 13,031 13,031 200,000 35,330 35,330 200,000 43,908 43,908 200,000
24 59 1,646 0 12,484 12,484 200,000 36,957 36,957 200,000 46,838 46,838 200,000
25 60 1,646 0 11,736 11,736 200,000 38,503 38,503 200,000 49,838 49,838 200,000
26 61 1,646 0 10,761 10,761 200,000 39,946 39,946 200,000 52,915 52,915 200,000
27 62 1,646 0 9,534 9,534 200,000 41,265 41,265 200,000 56,061 56,061 200,000
28 63 1,646 0 8,050 8,050 200,000 42,454 42,454 200,000 59,265 59,265 200,000
29 64 1,646 0 6,213 6,213 200,000 43,431 43,431 200,000 62,555 62,555 200,000
30 65 1,646 0 3,989 3,989 200,000 44,166 44,166 200,000 65,939 65,939 200,000
31 66 1,646 0 1,320 1,320 200,000 44,606 44,606 200,000 69,413 69,413 200,000
32 67 1,646 0 0 0 0 44,713 44,713 200,000 73,004 73,004 200,000
33 68 1,646 0 0 0 0 44,424 44,424 200,000 76,678 76,678 200,000
34 69 1,646 0 0 0 0 43,667 43,667 200,000 80,418 80,418 200,000
35 70 1,646 0 0 0 0 42,382 42,382 200,000 84,196 84,196 200,000
36 71 1,646 0 0 0 0 40,438 40,438 200,000 88,041 88,041 200,000
37 72 1,646 0 0 0 0 37,583 37,583 200,000 91,916 91,916 200,000
38 73 1,646 0 0 0 0 33,810 33,810 200,000 95,865 95,865 200,000
39 74 1,646 0 0 0 0 28,810 28,810 200,000 99,833 99,833 200,000
40 75 1,646 0 0 0 0 22,254 22,254 200,000 103,830 103,830 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-46
<PAGE> 235
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------ ------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET) 6.00% (4.46% NET)
---------------------------- ----------------------------- ------------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 76 1,646 0 0 0 0 13,804 13,804 200,000 107,891 107,891 200,000
42 77 1,646 0 0 0 0 3,059 3,059 200,000 111,976 111,976 200,000
43 78 1,646 0 0 0 0 0 0 0 116,062 116,062 200,000
44 79 1,646 0 0 0 0 0 0 0 119,854 119,854 200,000
45 80 1,646 0 0 0 0 0 0 0 123,562 123,562 200,000
46 81 1,646 0 0 0 0 0 0 0 127,210 127,210 200,000
47 82 1,646 0 0 0 0 0 0 0 130,748 130,748 200,000
48 83 1,646 0 0 0 0 0 0 0 134,543 134,543 200,000
49 84 1,646 0 0 0 0 0 0 0 138,389 138,389 200,000
50 85 1,646 0 0 0 0 0 0 0 142,242 142,242 200,000
51 86 1,646 0 0 0 0 0 0 0 146,167 146,167 200,000
52 87 1,646 0 0 0 0 0 0 0 150,144 150,144 200,000
53 88 1,646 0 0 0 0 0 0 0 154,266 154,266 200,000
54 89 1,646 0 0 0 0 0 0 0 158,606 158,606 200,000
55 90 1,646 0 0 0 0 0 0 0 163,258 163,258 200,000
56 91 1,646 0 0 0 0 0 0 0 168,315 168,315 200,000
57 92 1,646 0 0 0 0 0 0 0 173,867 173,867 200,000
58 93 1,646 0 0 0 0 0 0 0 180,044 180,044 200,000
59 94 1,646 0 0 0 0 0 0 0 187,304 187,304 200,000
60 95 1,646 0 0 0 0 0 0 0 196,360 196,360 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-47
<PAGE> 236
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
------------------------------
6.00% (4.46% NET)
------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 0 0 960 200,000
2 37 1,646 0 0 0 646 2,271 200,000
3 38 1,646 0 0 0 1,408 3,643 200,000
4 39 1,646 0 0 0 2,795 5,030 200,000
5 40 1,646 0 0 0 4,222 6,457 200,000
6 41 1,646 0 0 0 5,892 7,903 200,000
7 42 1,646 0 0 0 7,606 9,393 200,000
8 43 1,646 0 0 0 9,389 10,953 200,000
9 44 1,646 0 0 0 11,222 12,563 200,000
10 45 1,646 0 0 0 13,108 14,225 200,000
11 46 1,646 0 0 0 15,120 16,014 200,000
12 47 1,646 0 0 0 17,181 17,851 200,000
13 48 1,646 0 0 0 19,317 19,764 200,000
14 49 1,646 0 0 0 21,510 21,734 200,000
15 50 1,646 0 0 0 23,765 23,765 200,000
16 51 1,646 0 0 0 25,969 25,969 200,000
17 52 1,646 0 0 0 28,227 28,227 200,000
18 53 1,646 0 0 0 30,564 30,564 200,000
19 54 1,646 0 0 0 33,006 33,006 200,000
20 55 1,646 0 0 0 35,560 35,560 200,000
21 56 1,646 0 0 0 38,265 38,265 200,000
22 57 1,646 0 0 0 41,059 41,059 200,000
23 58 1,646 0 0 0 43,908 43,908 200,000
24 59 1,646 0 0 0 46,838 46,838 200,000
25 60 1,646 0 0 0 49,838 49,838 200,000
26 61 1,646 0 0 0 52,915 52,915 200,000
27 62 1,646 0 0 0 56,061 56,061 200,000
28 63 1,646 0 0 0 59,265 59,265 200,000
29 64 1,646 0 0 0 62,555 62,555 200,000
30 65 1,646 0 0 0 65,939 65,939 200,000
31 66 1,646 0 0 0 69,413 69,413 200,000
32 67 1,646 0 0 0 73,004 73,004 200,000
33 68 1,646 0 0 0 76,678 76,678 200,000
34 69 1,646 0 0 0 80,418 80,418 200,000
35 70 1,646 0 0 0 84,196 84,196 200,000
36 71 1,646 0 0 0 88,041 88,041 200,000
37 72 1,646 0 0 0 91,916 91,916 200,000
38 73 1,646 0 0 0 95,865 95,865 200,000
39 74 1,646 0 0 0 99,833 99,833 200,000
40 75 1,646 0 0 0 103,830 103,830 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-48
<PAGE> 237
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-----------------------------
6.00% (4.46% NET)
-----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 76 1,646 0 0 0 107,891 107,891 200,000
42 77 1,646 0 0 0 111,976 111,976 200,000
43 78 1,646 0 0 0 116,062 116,062 200,000
44 79 1,646 0 0 0 119,854 119,854 200,000
45 80 1,646 0 0 0 123,562 123,562 200,000
46 81 1,646 0 0 0 127,210 127,210 200,000
47 82 1,646 0 0 0 130,748 130,748 200,000
48 83 1,646 0 0 0 134,543 134,543 200,000
49 84 1,646 0 0 0 138,389 138,389 200,000
50 85 1,646 0 0 0 142,242 142,242 200,000
51 86 1,646 0 0 0 146,167 146,167 200,000
52 87 1,646 0 0 0 150,144 150,144 200,000
53 88 1,646 0 0 0 154,266 154,266 200,000
54 89 1,646 0 0 0 158,606 158,606 200,000
55 90 1,646 0 0 0 163,258 163,258 200,000
56 91 1,646 0 0 0 168,315 168,315 200,000
57 92 1,646 0 0 0 173,867 173,867 200,000
58 93 1,646 0 0 0 180,044 180,044 200,000
59 94 1,646 0 0 0 187,304 187,304 200,000
60 95 1,646 0 0 0 196,360 196,360 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-49
<PAGE> 238
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------- -----------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET) 12.00% (10.42% NET)
----------------------------- ----------------------------- -----------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 888 200,000 0 1,032 200,000 0 1,032 200,000
2 37 1,646 0 343 1,968 200,000 765 2,389 200,000 865 2,489 200,000
3 38 1,646 0 775 3,010 200,000 1,631 3,866 200,000 1,866 4,101 200,000
4 39 1,646 0 1,780 4,015 200,000 3,240 5,475 200,000 3,599 5,833 200,000
5 40 1,646 0 2,749 4,984 200,000 4,996 7,231 200,000 5,490 7,725 200,000
6 41 1,646 0 3,906 5,917 200,000 7,138 9,149 200,000 7,758 9,769 200,000
7 42 1,646 0 5,005 6,793 200,000 9,437 11,225 200,000 10,219 12,006 200,000
8 43 1,646 0 6,071 7,635 200,000 11,934 13,499 200,000 12,918 14,482 200,000
9 44 1,646 0 7,080 8,421 200,000 14,628 15,969 200,000 15,857 17,197 200,000
10 45 1,646 0 8,035 9,152 200,000 17,542 18,659 200,000 19,062 20,180 200,000
11 46 1,646 0 9,019 9,913 200,000 20,845 21,739 200,000 22,674 23,568 200,000
12 47 1,646 0 9,953 10,623 200,000 24,454 25,124 200,000 26,624 27,294 200,000
13 48 1,646 0 10,838 11,285 200,000 28,404 28,850 200,000 30,972 31,419 200,000
14 49 1,646 0 11,651 11,874 200,000 32,714 32,937 200,000 35,745 35,968 200,000
15 50 1,646 0 12,394 12,394 200,000 37,429 37,429 200,000 40,992 40,992 200,000
16 51 1,646 0 12,843 12,843 200,000 42,375 42,375 200,000 46,646 46,646 200,000
17 52 1,646 0 13,201 13,201 200,000 47,812 47,812 200,000 52,882 52,882 200,000
18 53 1,646 0 13,469 13,469 200,000 53,803 53,803 200,000 59,791 59,791 200,000
19 54 1,646 0 13,624 13,624 200,000 60,400 60,400 200,000 67,469 67,469 200,000
20 55 1,646 0 13,668 13,668 200,000 67,681 67,681 200,000 76,006 76,006 200,000
21 56 1,646 0 13,611 13,611 200,000 75,758 75,758 200,000 85,539 85,539 200,000
22 57 1,646 0 13,399 13,399 200,000 84,685 84,685 200,000 96,119 96,119 200,000
23 58 1,646 0 13,031 13,031 200,000 94,579 94,579 200,000 107,850 107,850 200,000
24 59 1,646 0 12,484 12,484 200,000 105,562 105,562 200,000 120,891 120,891 200,000
25 60 1,646 0 11,736 11,736 200,000 117,776 117,776 200,000 135,397 135,397 200,000
26 61 1,646 0 10,761 10,761 200,000 131,391 131,391 200,000 151,557 151,557 200,000
27 62 1,646 0 9,534 9,534 200,000 146,608 146,608 200,000 169,534 169,534 217,004
28 63 1,646 0 8,050 8,050 200,000 163,658 163,658 206,209 189,434 189,434 238,687
29 64 1,646 0 6,213 6,213 200,000 182,568 182,568 226,384 211,469 211,469 262,221
30 65 1,646 0 3,989 3,989 200,000 203,450 203,450 248,209 235,873 235,873 287,766
31 66 1,646 0 1,320 1,320 200,000 226,515 226,515 271,819 262,905 262,905 315,486
32 67 1,646 0 0 0 0 251,947 251,947 299,817 292,830 292,830 348,467
33 68 1,646 0 0 0 0 278,982 279,982 330,379 325,940 325,940 384,610
34 69 1,646 0 0 0 0 310,883 310,883 363,733 362,566 362,566 424,202
35 70 1,646 0 0 0 0 344,947 344,947 400,139 403,062 403,062 467,552
36 71 1,646 0 0 0 0 382,486 382,486 439,859 447,856 447,856 515,034
37 72 1,646 0 0 0 0 423,978 423,978 479,095 497,475 497,475 562,146
38 73 1,646 0 0 0 0 469,960 499,960 521,655 552,502 552,502 613,278
39 74 1,646 0 0 0 0 520,964 520,964 567,851 613,544 613,544 668,763
40 75 1,646 0 0 0 0 577,645 577,645 618,080 681,333 681,333 729,027
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-50
<PAGE> 239
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
---------------------------- --------------------------------
(1) (2) (3) (5) (6) (8)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 76 1,646 0 0 0 0 640,799 640,799 672,839
42 77 1,646 0 0 0 0 710,437 710,437 745,959
43 78 1,646 0 0 0 0 787,184 787,184 826,544
44 79 1,646 0 0 0 0 871,720 871,720 915,306
45 80 1,646 0 0 0 0 964,774 964,774 1,013,013
46 81 1,646 0 0 0 0 1,067,119 1,067,119 1,120,475
47 82 1,646 0 0 0 0 1,179,575 1,179,575 1,238,554
48 83 1,646 0 0 0 0 1,302,975 1,302,975 1,368,123
49 84 1,646 0 0 0 0 1,438,200 1,438,200 1,510,110
50 85 1,646 0 0 0 0 1,586,177 1,586,177 1,665,486
51 86 1,646 0 0 0 0 1,747,894 1,747,894 1,835,289
52 87 1,646 0 0 0 0 1,924,400 1,924,400 2,020,620
53 88 1,646 0 0 0 0 2,116,817 2,116,817 2,222,658
54 89 1,646 0 0 0 0 2,326,320 2,326,320 2,442,636
55 90 1,646 0 0 0 0 2,554,150 2,554,150 2,681,857
56 91 1,646 0 0 0 0 2,801,535 2,801,535 2,941,611
57 92 1,646 0 0 0 0 3,077,826 3,077,826 3,200,939
58 93 1,646 0 0 0 0 3,387,967 3,387,967 3,489,606
59 94 1,646 0 0 0 0 3,738,043 3,738,043 3,812,804
60 95 1,646 0 0 0 0 4,135,649 4,135,649 4,177,005
<CAPTION>
CURRENT CHARGES
--------------------------------
12.00% (10.42% NET)
--------------------------------
(9) (11)
END VALUE (10) BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
---- --------- ----- --------
<S> <C> <C> <C>
41 756,721 756,721 794,557
42 840,125 840,125 882,131
43 932,355 932,355 978,973
44 1,034,127 1,034,127 1,085,833
45 1,146,504 1,146,504 1,203,829
46 1,270,550 1,270,550 1,334,078
47 1,407,352 1,407,352 1,477,719
48 1,558,531 1,558,531 1,636,458
49 1,725,250 1,725,250 1,811,512
50 1,908,899 1,908,899 2,004,344
51 2,111,118 2,111,118 2,216,674
52 2,333,500 2,333,500 2,450,175
53 2,577,953 2,577,953 2,706,850
54 2,846,434 2,846,434 2,988,756
55 3,141,021 3,141,021 3,298,072
56 3,463,716 3,463,716 3,636,902
57 3,822,004 3,822,004 3,974,884
58 4,220,535 4,220,535 4,347,151
59 4,666,251 4,666,251 4,759,576
60 5,167,814 5,167,814 5,219,492
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-51
<PAGE> 240
<TABLE>
<S> <C> <C>
ALLOCATION OF VALUES
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-----------------------------
12.00% (10.42% NET)
-----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 0 0 1,032 200,000
2 37 1,646 0 0 0 865 2,489 200,000
3 38 1,646 0 0 0 1,866 4,101 200,000
4 39 1,646 0 0 0 3,599 5,833 200,000
5 40 1,646 0 0 0 5,490 7,725 200,000
6 41 1,646 0 0 0 7,758 9,769 200,000
7 42 1,646 0 0 0 10,219 12,006 200,000
8 43 1,646 0 0 0 12,918 14,482 200,000
9 44 1,646 0 0 0 15,857 17,197 200,000
10 45 1,646 0 0 0 19,062 20,180 200,000
11 46 1,646 0 0 0 22,674 23,568 200,000
12 47 1,646 0 0 0 26,624 27,294 200,000
13 48 1,646 0 0 0 30,972 31,419 200,000
14 49 1,646 0 0 0 35,745 35,968 200,000
15 50 1,646 0 0 0 40,992 40,992 200,000
16 51 1,646 0 0 0 46,646 46,646 200,000
17 52 1,646 0 0 0 52,882 52,882 200,000
18 53 1,646 0 0 0 59,791 59,791 200,000
19 54 1,646 0 0 0 67,469 67,469 200,000
20 55 1,646 0 0 0 76,006 76,006 200,000
21 56 1,646 0 0 0 85,539 85,539 200,000
22 57 1,646 0 0 0 96,119 96,119 200,000
23 58 1,646 0 0 0 107,850 107,850 200,000
24 59 1,646 0 0 0 120,891 120,891 200,000
25 60 1,646 0 0 0 135,397 135,397 200,000
26 61 1,646 0 0 0 151,557 151,557 200,000
27 62 1,646 0 0 0 169,534 169,534 217,004
28 63 1,646 0 0 0 189,434 189,434 238,687
29 64 1,646 0 0 0 211,469 211,469 262,221
30 65 1,646 0 0 0 235,873 235,873 287,766
31 66 1,646 0 0 0 262,905 262,905 315,486
32 67 1,646 0 0 0 292,830 292,830 348,467
33 68 1,646 0 0 0 325,940 325,940 384,610
34 69 1,646 0 0 0 362,566 362,566 424,202
35 70 1,646 0 0 0 403,062 403,062 467,552
36 71 1,646 0 0 0 447,856 447,856 515,034
37 72 1,646 0 0 0 497,475 497,475 562,146
38 73 1,646 0 0 0 552,502 552,502 613,278
39 74 1,646 0 0 0 613,544 613,544 668,763
40 75 1,646 0 0 0 681,333 681,333 729,027
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-52
<PAGE> 241
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 1,646.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
12.00% (10.42% NET)
--------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 76 1,646 0 0 0 756,721 756,721 794,557
42 77 1,646 0 0 0 840,125 840,125 882,131
43 78 1,646 0 0 0 932,355 932,355 978,973
44 79 1,646 0 0 0 1,034,127 1,034,127 1,085,833
45 80 1,646 0 0 0 1,146,504 1,146,504 1,203,829
46 81 1,646 0 0 0 1,270,550 1,270,550 1,334,078
47 82 1,646 0 0 0 1,407,352 1,407,352 1,477,719
48 83 1,646 0 0 0 1,558,531 1,558,531 1,636,458
49 84 1,646 0 0 0 1,725,250 1,725,250 1,811,512
50 85 1,646 0 0 0 1,908,899 1,908,899 2,004,344
51 86 1,646 0 0 0 2,111,118 2,111,118 2,216,674
52 87 1,646 0 0 0 2,333,500 2,333,500 2,450,175
53 88 1,646 0 0 0 2,577,953 2,577,953 2,706,850
54 89 1,646 0 0 0 2,846,434 2,846,434 2,988,756
55 90 1,646 0 0 0 3,141,021 3,141,021 3,298,072
56 91 1,646 0 0 0 3,463,716 3,463,716 3,636,902
57 92 1,646 0 0 0 3,822,004 3,822,004 3,974,884
58 93 1,646 0 0 0 4,220,535 4,220,535 4,347,151
59 94 1,646 0 0 0 4,666,251 4,666,251 4,759,576
60 95 1,646 0 0 0 5,167,814 5,167,814 5,219,492
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $28,719.64 INITIAL GUIDELINE ANNUAL: $2,135.14 INITIAL TWO YEAR MINIMUM: $1,646.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-53
<PAGE> 242
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 5,010.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------- -----------------------------
0.00% (-1.49% NET) 0.00% (-1.49% NET) 0.00% (-1.49% NET)
----------------------------- ----------------------------- -----------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 1,330 3,632 200,000 1,330 3,632 200,000 1,330 3,632 200,000
2 57 5,010 0 3,701 6,488 200,000 3,701 6,488 200,000 4,642 7,429 200,000
3 58 5,010 0 4,910 9,166 200,000 4,910 9,166 200,000 6,791 11,048 200,000
4 59 5,010 0 7,394 11,651 200,000 7,394 11,651 200,000 10,196 14,452 200,000
5 60 5,010 0 9,668 13,925 200,000 9,668 13,925 200,000 13,372 17,629 200,000
6 61 5,010 0 12,142 15,973 200,000 12,142 15,973 200,000 16,713 20,544 200,000
7 62 5,010 0 14,372 17,778 200,000 14,372 17,778 200,000 19,971 23,376 200,000
8 63 5,010 0 16,366 19,345 200,000 16,366 19,345 200,000 23,146 26,126 200,000
9 64 5,010 0 18,040 20,594 200,000 18,040 20,594 200,000 26,223 28,777 200,000
10 65 5,010 0 19,379 21,507 200,000 19,379 21,507 200,000 29,083 31,212 200,000
11 66 5,010 0 20,563 22,265 200,000 20,563 22,265 200,000 31,810 33,512 200,000
12 67 5,010 0 21,355 22,632 200,000 21,355 22,632 200,000 34,268 35,545 200,000
13 68 5,010 0 21,709 22,560 200,000 21,709 22,560 200,000 36,580 37,431 200,000
14 69 5,010 0 21,576 22,001 200,000 21,576 22,001 200,000 38,692 39,117 200,000
15 70 5,010 0 20,921 20,921 200,000 20,921 20,921 200,000 40,587 40,587 200,000
16 71 5,010 0 19,217 19,217 200,000 19,217 19,217 200,000 42,256 42,256 200,000
17 72 5,010 0 16,664 16,664 200,000 16,664 16,664 200,000 43,639 43,639 200,000
18 73 5,010 0 13,327 13,327 200,000 13,327 13,327 200,000 44,591 44,591 200,000
19 74 5,010 0 8,949 8,949 200,000 8,949 8,949 200,000 45,279 45,279 200,000
20 75 5,010 0 3,282 3,282 200,000 3,282 3,282 200,000 45,591 45,591 200,000
21 76 5,010 0 0 0 0 0 0 0 45,624 45,624 200,000
22 77 5,010 0 0 0 0 0 0 0 45,163 45,163 200,000
23 78 5,010 0 0 0 0 0 0 0 44,100 44,100 200,000
24 79 5,010 0 0 0 0 0 0 0 41,811 41,811 200,000
25 80 5,010 0 0 0 0 0 0 0 38,567 38,567 200,000
26 81 5,010 0 0 0 0 0 0 0 34,273 34,273 200,000
27 82 5,010 0 0 0 0 0 0 0 28,631 28,631 200,000
28 83 5,010 0 0 0 0 0 0 0 22,314 22,314 200,000
29 84 5,010 0 0 0 0 0 0 0 14,555 14,555 200,000
30 85 5,010 0 0 0 0 0 0 0 4,872 4,872 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 76. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 86.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $68,128.20 INITIAL GUIDELINE ANNUAL: $5,926.12 INITIAL TWO YEAR MINIMUM: $5,010.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-54
<PAGE> 243
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 5,010.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-----------------------------
0.00% (-1.49% NET)
-----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 0 0 1,330 3,632 200,000
2 57 5,010 0 0 0 4,642 7,429 200,000
3 58 5,010 0 0 0 6,791 11,048 200,000
4 59 5,010 0 0 0 10,196 14,452 200,000
5 60 5,010 0 0 0 13,372 17,629 200,000
6 61 5,010 0 0 0 16,713 20,544 200,000
7 62 5,010 0 0 0 19,971 23,376 200,000
8 63 5,010 0 0 0 23,146 26,126 200,000
9 64 5,010 0 0 0 26,223 28,777 200,000
10 65 5,010 0 0 0 29,083 31,212 200,000
11 66 5,010 0 0 0 31,810 33,512 200,000
12 67 5,010 0 0 0 34,268 35,545 200,000
13 68 5,010 0 0 0 36,580 37,431 200,000
14 69 5,010 0 0 0 38,692 39,117 200,000
15 70 5,010 0 0 0 40,587 40,587 200,000
16 71 5,010 0 0 0 42,256 42,256 200,000
17 72 5,010 0 0 0 43,639 43,639 200,000
18 73 5,010 0 0 0 44,591 44,591 200,000
19 74 5,010 0 0 0 45,279 45,279 200,000
20 75 5,010 0 0 0 45,591 45,591 200,000
21 76 5,010 0 0 0 45,624 45,624 200,000
22 77 5,010 0 0 0 45,163 45,163 200,000
23 78 5,010 0 0 0 44,100 44,100 200,000
24 79 5,010 0 0 0 41,811 41,811 200,000
25 80 5,010 0 0 0 38,567 38,567 200,000
26 81 5,010 0 0 0 34,273 34,273 200,000
27 82 5,010 0 0 0 28,631 28,631 200,000
28 83 5,010 0 0 0 22,314 22,314 200,000
29 84 5,010 0 0 0 14,555 14,555 200,000
30 85 5,010 0 0 0 4,872 4,872 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 76. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 86.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 0.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $68,128.20 INITIAL GUIDELINE ANNUAL: $5,926.12 INITIAL TWO YEAR MINIMUM: $5,010.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-55
<PAGE> 244
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 5,010.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES CURRENT CHARGES
------------------------------------------------------------ -----------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET) 6.00% (4.46% NET)
----------------------------- ---------------------------- -----------------------------
(1) (2) (3) (5) (6) (8) (9) (11)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT VALUE (10) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 1,330 3,632 200,000 1,578 3,881 200,000 1,578 3,881 200,000
2 57 5,010 0 3,701 6,488 200,000 4,405 7,192 200,000 5,375 8,161 200,000
3 58 5,010 0 4,910 9,166 200,000 6,261 10,518 200,000 8,254 12,511 200,000
4 59 5,010 0 7,394 11,651 200,000 9,586 13,842 200,000 12,638 16,895 200,000
5 60 5,010 0 9,668 13,925 200,000 12,893 17,149 200,000 17,045 21,301 200,000
6 61 5,010 0 12,142 15,973 200,000 16,592 20,423 200,000 21,868 25,698 200,000
7 62 5,010 0 14,372 17,778 200,000 20,243 23,648 200,000 26,860 30,265 200,000
8 63 5,010 0 16,366 19,345 200,000 23,850 26,830 200,000 32,034 35,013 200,000
9 64 5,010 0 18,040 20,594 200,000 27,337 29,891 200,000 37,383 39,937 200,000
10 65 5,010 0 19,379 21,507 200,000 30,687 32,815 200,000 42,807 44,935 200,000
11 66 5,010 0 20,563 22,265 200,000 34,157 35,860 200,000 48,499 50,202 200,000
12 67 5,010 0 21,355 22,632 200,000 37,469 38,746 200,000 54,273 55,550 200,000
13 68 5,010 0 21,709 22,560 200,000 40,585 41,436 200,000 60,255 61,107 200,000
14 69 5,010 0 21,576 22,001 200,000 43,466 43,891 200,000 66,422 66,848 200,000
15 70 5,010 0 20,921 20,921 200,000 46,087 46,087 200,000 72,786 72,786 200,000
16 71 5,010 0 19,217 19,217 200,000 47,940 47,940 200,000 79,284 79,284 200,000
17 72 5,010 0 16,664 16,664 200,000 49,265 49,265 200,000 85,993 85,993 200,000
18 73 5,010 0 13,327 13,327 200,000 50,118 50,118 200,000 92,847 92,847 200,000
19 74 5,010 0 8,949 8,949 200,000 50,296 50,296 200,000 100,010 100,010 200,000
20 75 5,010 0 3,282 3,282 200,000 49,600 49,600 200,000 107,463 107,463 200,000
21 76 5,010 0 0 0 0 47,966 47,966 200,000 115,374 115,374 200,000
22 77 5,010 0 0 0 0 45,095 45,095 200,000 123,656 123,656 200,000
23 78 5,010 0 0 0 0 40,736 40,736 200,000 132,351 132,351 200,000
24 79 5,010 0 0 0 0 34,573 34,573 200,000 141,320 141,320 200,000
25 80 5,010 0 0 0 0 26,175 26,175 200,000 150,853 150,853 200,000
26 81 5,010 0 0 0 0 14,913 14,913 200,000 161,112 161,112 200,000
27 82 5,010 0 0 0 0 0 0 0 172,258 172,258 200,000
28 83 5,010 0 0 0 0 0 0 0 184,651 184,651 200,000
29 84 5,010 0 0 0 0 0 0 0 198,236 198,236 208,148
30 85 5,010 0 0 0 0 0 0 0 212,376 212,376 222,994
31 86 5,010 0 0 0 0 0 0 0 227,078 227,078 238,432
32 87 5,010 0 0 0 0 0 0 0 242,336 242,336 254,453
33 88 5,010 0 0 0 0 0 0 0 258,162 258,162 271,070
34 89 5,010 0 0 0 0 0 0 0 274,558 274,558 288,286
35 90 5,010 0 0 0 0 0 0 0 291,518 291,518 306,094
36 91 5,010 0 0 0 0 0 0 0 309,018 309,018 324,469
37 92 5,010 0 0 0 0 0 0 0 327,490 327,490 340,590
38 93 5,010 0 0 0 0 0 0 0 347,042 347,042 357,453
39 94 5,010 0 0 0 0 0 0 0 367,917 367,917 375,275
40 95 5,010 0 0 0 0 0 0 0 390,421 390,421 394,325
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 82. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $68,128.20 INITIAL GUIDELINE ANNUAL: $5,926.12 INITIAL TWO YEAR MINIMUM: $5,010.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-56
<PAGE> 245
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 5,010.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-----------------------------
6.00% (4.46% NET)
-----------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 0 0 1,578 3,881 200,000
2 57 5,010 0 0 0 5,375 8,161 200,000
3 58 5,010 0 0 0 8,254 12,511 200,000
4 59 5,010 0 0 0 12,638 16,895 200,000
5 60 5,010 0 0 0 17,045 21,301 200,000
6 61 5,010 0 0 0 21,868 25,698 200,000
7 62 5,010 0 0 0 26,860 30,265 200,000
8 63 5,010 0 0 0 32,034 35,013 200,000
9 64 5,010 0 0 0 37,383 39,937 200,000
10 65 5,010 0 0 0 42,807 44,935 200,000
11 66 5,010 0 0 0 48,499 50,202 200,000
12 67 5,010 0 0 0 54,273 55,550 200,000
13 68 5,010 0 0 0 60,255 61,107 200,000
14 69 5,010 0 0 0 66,422 66,848 200,000
15 70 5,010 0 0 0 72,786 72,786 200,000
16 71 5,010 0 0 0 79,284 79,284 200,000
17 72 5,010 0 0 0 85,993 85,993 200,000
18 73 5,010 0 0 0 92,847 92,847 200,000
19 74 5,010 0 0 0 100,010 100,010 200,000
20 75 5,010 0 0 0 107,463 107,463 200,000
21 76 5,010 0 0 0 115,374 115,374 200,000
22 77 5,010 0 0 0 123,656 123,656 200,000
23 78 5,010 0 0 0 132,351 132,351 200,000
24 79 5,010 0 0 0 141,320 141,320 200,000
25 80 5,010 0 0 0 150,853 150,853 200,000
26 81 5,010 0 0 0 161,112 161,112 200,000
27 82 5,010 0 0 0 172,258 172,258 200,000
28 83 5,010 0 0 0 184,651 184,651 200,000
29 84 5,010 0 0 0 198,236 198,236 208,148
30 85 5,010 0 0 0 212,376 212,376 222,994
31 86 5,010 0 0 0 227,078 227,078 238,432
32 87 5,010 0 0 0 242,336 242,336 254,453
33 88 5,010 0 0 0 258,162 258,162 271,070
34 89 5,010 0 0 0 274,558 274,558 288,286
35 90 5,010 0 0 0 291,518 291,518 306,094
36 91 5,010 0 0 0 309,018 309,018 324,469
37 92 5,010 0 0 0 327,490 327,490 340,590
38 93 5,010 0 0 0 347,042 347,042 357,453
39 94 5,010 0 0 0 367,917 367,917 375,275
40 95 5,010 0 0 0 390,421 390,421 394,325
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 82. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 6.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $68,128.20 INITIAL GUIDELINE ANNUAL: $5,926.12 INITIAL TWO YEAR MINIMUM: $5,010.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-57
<PAGE> 246
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
TABLE: 0 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 5010.00 MONY LIFE INSURANCE COMPANY
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
-----------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
----------------------------- ---------------------------------
(1) (2) (3) (5) (6) (8)
END NET NET VALUE (4) BENEFIT VALUE (7) BENEFIT
OF AFTER TAX LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
---- --- --------- --------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 1,330 3,632 200,000 1,827 4,129 200,000
2 57 5,010 0 3,701 6,488 200,000 5,141 7,927 200,000
3 58 5,010 0 4,910 9,166 200,000 7,734 11,991 200,000
4 59 5,010 0 7,394 11,651 200,000 12,076 16,333 200,000
5 60 5,010 0 9,668 13,925 200,000 16,716 20,973 200,000
6 61 5,010 0 12,142 15,973 200,000 22,103 25,934 200,000
7 62 5,010 0 14,372 17,778 200,000 27,840 31,245 200,000
8 63 5,010 0 16,366 19,345 200,000 33,983 36,962 200,000
9 64 5,010 0 18,040 20,594 200,000 40,518 43,072 200,000
10 65 5,010 0 19,379 21,507 200,000 47,496 49,625 200,000
11 66 5,010 0 20,563 22,265 200,000 55,372 57,075 200,000
12 67 5,010 0 21,355 22,632 200,000 63,910 65,187 200,000
13 68 5,010 0 21,709 22,560 200,000 73,205 74,057 200,000
14 69 5,010 0 21,576 22,001 200,000 83,382 83,808 200,000
15 70 5,010 0 20,921 20,921 200,000 94,608 94,608 200,000
16 71 5,010 0 19,217 19,217 200,000 106,627 106,627 200,000
17 72 5,010 0 16,664 16,664 200,000 120,034 120,034 200,000
18 73 5,010 0 13,327 13,327 200,000 135,219 135,219 200,000
19 74 5,010 0 8,949 8,949 200,000 152,524 152,524 200,000
20 75 5,010 0 3,282 3,282 200,000 172,449 172,449 200,000
21 76 5,010 0 0 0 0 195,770 195,770 205,558
22 77 5,010 0 0 0 0 221,871 221,871 232,964
23 78 5,010 0 0 0 0 250,651 250,651 263,184
24 79 5,010 0 0 0 0 282,369 282,369 296,487
25 80 5,010 0 0 0 0 317,300 317,300 333,165
26 81 5,010 0 0 0 0 355,738 355,738 373,525
27 82 5,010 0 0 0 0 397,995 397,995 417,895
28 83 5,010 0 0 0 0 444,390 444,390 466,609
29 84 5,010 0 0 0 0 495,259 495,259 520,022
30 85 5,010 0 0 0 0 550,958 550,958 578,506
31 86 5,010 0 0 0 0 611,862 611,862 642,455
32 87 5,010 0 0 0 0 678,373 678,373 712,292
33 88 5,010 0 0 0 0 750,918 750,918 788,464
34 89 5,010 0 0 0 0 829,945 829,945 871,442
35 90 5,010 0 0 0 0 915,927 915,927 961,723
36 91 5,010 0 0 0 0 1,009,333 1,009,333 1,059,799
37 92 5,010 0 0 0 0 1,113,573 1,113,573 1,158,115
38 93 5,010 0 0 0 0 1,230,488 1,230,488 1,267,402
39 94 5,010 0 0 0 0 1,362,347 1,362,347 1,389,594
40 95 5,010 0 0 0 0 1,511,981 1,511,981 1,527,101
<CAPTION>
CURRENT CHARGES
---------------------------------
12.00% (10.42% NET)
---------------------------------
(9) (11)
END VALUE (10) BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
---- --------- ----- --------
<S> <C> <C> <C>
1 1,827 4,129 200,000
2 6,138 8,924 200,000
3 9,840 14,096 200,000
4 15,393 19,649 200,000
5 21,357 25,614 200,000
6 28,176 32,006 200,000
7 35,653 39,059 200,000
8 43,871 46,850 200,000
9 52,898 55,452 200,000
10 62,733 64,861 200,000
11 73,824 75,526 200,000
12 86,026 87,303 200,000
13 99,601 100,453 200,000
14 114,716 115,142 200,000
15 131,600 131,600 200,000
16 150,269 150,269 200,000
17 171,259 171,259 200,000
18 194,822 194,822 216,252
19 220,984 220,984 240,873
20 250,029 250,029 267,531
21 282,424 282,424 296,545
22 318,271 318,271 334,185
23 357,920 357,920 375,815
24 401,686 401,686 421,770
25 450,026 450,026 472,527
26 503,397 503,397 528,566
27 562,270 562,270 590,384
28 627,337 627,337 638,704
29 699,104 699,104 734,059
30 778,176 778,176 817,085
31 865,260 865,260 908,522
32 961,047 961,047 1,009,099
33 1,066,360 1,066,360 1,119,678
34 1,182,047 1,182,047 1,241,150
35 1,309,007 1,309,007 1,374,457
36 1,448,109 1,448,109 1,520,514
37 1,602,523 1,602,523 1,666,624
38 1,774,245 1,774,245 1,827,473
39 1,966,244 1,966,244 2,005,569
40 2,182,224 2,182,224 2,204,046
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $68,128.20 INITIAL GUIDELINE ANNUAL: $5,926.12 INITIAL TWO YEAR MINIMUM: $5,010.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-58
<PAGE> 247
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE PREFERRED NON-SMOKER AGE FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
55 TO AGE 95 SPECIFIED AMOUNT
TABLE: 0 MONY LIFE INSURANCE COMPANY
1ST YR ANNUAL DECLARED PREMIUMS
PREMIUM = 5,010.00
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
12.00% (10.42% NET)
--------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 0 0 1,827 4,129 200,000
2 57 5,010 0 0 0 6,138 8,924 200,000
3 58 5,010 0 0 0 9,840 14,096 200,000
4 59 5,010 0 0 0 15,393 19,649 200,000
5 60 5,010 0 0 0 21,357 25,614 200,000
6 61 5,010 0 0 0 28,176 32,006 200,000
7 62 5,010 0 0 0 35,653 39,059 200,000
8 63 5,010 0 0 0 43,871 46,850 200,000
9 64 5,010 0 0 0 52,898 55,452 200,000
10 65 5,010 0 0 0 62,733 64,861 200,000
11 66 5,010 0 0 0 73,824 75,526 200,000
12 67 5,010 0 0 0 86,026 87,303 200,000
13 68 5,010 0 0 0 99,601 100,453 200,000
14 69 5,010 0 0 0 114,716 115,142 200,000
15 70 5,010 0 0 0 131,600 131,600 200,000
16 71 5,010 0 0 0 150,269 150,269 200,000
17 72 5,010 0 0 0 171,259 171,259 200,000
18 73 5,010 0 0 0 194,822 194,822 216,252
19 74 5,010 0 0 0 220,984 220,984 240,873
20 75 5,010 0 0 0 250,029 250,029 267,531
21 76 5,010 0 0 0 282,424 282,424 296,545
22 77 5,010 0 0 0 318,271 318,271 334,185
23 78 5,010 0 0 0 357,920 357,920 375,815
24 79 5,010 0 0 0 401,686 401,686 421,770
25 80 5,010 0 0 0 450,026 450,026 472,527
26 81 5,010 0 0 0 503,397 503,397 528,566
27 82 5,010 0 0 0 562,270 562,270 590,384
28 83 5,010 0 0 0 627,337 627,337 658,704
29 84 5,010 0 0 0 699,104 699,104 734,059
30 85 5,010 0 0 0 778,176 778,176 817,085
31 86 5,010 0 0 0 865,260 865,260 908,522
32 87 5,010 0 0 0 961,047 961,047 1,009,099
33 88 5,010 0 0 0 1,066,360 1,066,360 1,119,678
34 89 5,010 0 0 0 1,182,047 1,182,047 1,241,150
35 90 5,010 0 0 0 1,309,007 1,309,007 1,374,457
36 91 5,010 0 0 0 1,448,109 1,448,109 1,520,514
37 92 5,010 0 0 0 1,602,523 1,602,523 1,666,624
38 93 5,010 0 0 0 1,774,245 1,774,245 1,827,473
39 94 5,010 0 0 0 1,966,244 1,966,244 2,005,569
40 95 5,010 0 0 0 2,182,224 2,182,224 2,204,046
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract.
Borrowed funds are credited at 5% interest. Premiums are assumed to be paid
at the beginning of the year or month. All other values and ages are at the end
of the year and reflect any loans and surrenders. The current cost of insurance
rates are not guaranteed and subject to change. The hypothetical investment
results are illustrative only, and should not be deemed a representation of past
or future investment results. Actual investment results may be more or less than
those shown, and will depend on a number of factors, including the Investment
Allocations by a Contract Holder, and the different investment rates of return
for the MONY Series Fund or Enterprise Accumulation Trust Portfolios. The
Surrender Value, Fund Value and benefit payable at death for a contract would be
different from those shown if the actual rates of investment return applicable
to the contract averaged 0.00% or 12.00% over a period of years, but also
fluctuated above or below those averages for individual contract years. No
representations can be made by MONY Life Insurance Company or the underlying
Funds of the Separate Account that these hypothetical rates of return can be
achieved for any one year, or sustained over any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $68,128.20 INITIAL GUIDELINE ANNUAL: $5,926.12 INITIAL TWO YEAR MINIMUM: $5,010.00
DATE PREPARED: 12/11/00 PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS
</TABLE>
B-59
<PAGE> 248
The complete registration statement and other filed documents for MONY America
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 America 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> 249
PART II
(INFORMATION NOT REQUIRED IN A PROSPECTUS)
<PAGE> 250
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 trustees 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> 251
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. Edward P. Bank, Vice President and Deputy General Counsel, The Mutual
Life Insurance Company of New York
b. Evelyn Peos, FSA
c. PricewaterhouseCoopers 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.
(c) Commission schedule.
(4) Not applicable.
(5) Form of policy.
(6) Amended and Restated Charter and Amended and Restated By-Laws of
MONY Life Insurance Company filed as Exhibit 6 to Registration
Statement (Registration No. 333-71417 and 811-6217) dated January
29, 1999, is incorporated herein by reference.
(7) Not applicable.
(8) (a) Form of agreement to purchase shares. [See Exhibit 1(3)(a)].
(b) 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> 252
Investment Advisory Agreement between Enterprise Capital
Management, Inc. ("Enterprise Capital") and the Enterprise
Accumulation Trust ("Trust"), and Enterprise Capital, the Trust,
and Quest for Value Advisors, as sub-advisor, filed as Exhibit 5
to Post-Effective Amendment No. 8, dated September 30, 1994, to
Registration Statement on Form N-1A (Registration No. 33-21534),
is incorporated herein by reference.
(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.
(9) Not applicable.
(10) Application Form for Flexible Premium Variable Universal Life
Insurance Policy. [See Exhibit 1(3)(a).]
2. Opinion and consent of Edward P. Bank, Vice President and Deputy General
Counsel, The Mutual Life Insurance Company of New York, as to legality
of the securities being registered filed as Exhibit 2 to Registration
Statement on Form S-6 (Registration Nos. 333-01581 and 811-6127) dated
March 8, 1996, is incorporated herein by reference.
3. Not applicable.
4. Not applicable.
5. Not applicable.
6. Opinion and consent of Evelyn L. Peos, FSA, as to actuarial matters
filed as Exhibit 6 to Registration Statement on Form S-6 (Registration Nos.
333-01581 and 811-6127) dated March 8, 1996, is incorporated herein by
reference..
7. Consent of PricewaterhouseCooopers LLP as to financial statements of
MONY Variable Account L and of MONY Life Insurance Company.
II-3
<PAGE> 253
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
Post-Effective Amendment No. 7 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 12th day of January, 2001.
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
Post-Effective Amendment No. 7 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 January 12, 2001
-----------------------------------------------------
Michael I. Roth
Trustee, Chairman and Chief Executive Officer
/s/ SAMUEL J. FOTI January 12, 2001
-----------------------------------------------------
Samuel J. Foti
Trustee, President and Chief Operating Officer
/s/ KENNETH M. LEVINE January 12, 2001
-----------------------------------------------------
Kenneth M. Levine
Trustee, Executive Vice President and Chief
Investment Officer
/s/ RICHARD DADDARIO January 12, 2001
-----------------------------------------------------
Richard Daddario
Executive Vice President and Chief Financial Officer
/s/ PHILLIP A. EISENBERG January 12, 2001
-----------------------------------------------------
Phillip A. Eisenberg
Senior Vice President and Chief Actuary
/s/ LEE M. SMITH January 12, 2001
-----------------------------------------------------
Lee M. Smith
Corporate Secretary and Vice
President, Government Relations
January 12, 2001
-----------------------------------------------------
Tom H. Barrett*
Trustee
January 12, 2001
-----------------------------------------------------
David L. Call*
Trustee
</TABLE>
II-4
<PAGE> 254
<TABLE>
<CAPTION>
SIGNATURE DATE
--------- ----
<S> <C>
January 12, 2001
-----------------------------------------------------
G. Robert Durham*
Trustee
January 12, 2001
-----------------------------------------------------
James B. Farley*
Trustee
January 12, 2001
-----------------------------------------------------
Robert Holland, Jr.*
Trustee
January 12, 2001
-----------------------------------------------------
James L. Johnson*
Trustee
January 12, 2001
-----------------------------------------------------
John R. Meyer*
Trustee
January 12, 2001
-----------------------------------------------------
Jane C. Pfeiffer*
Trustee
January 12, 2001
-----------------------------------------------------
Thomas C. Theobald*
Trustee
*By: /s/ LEE M. SMITH January 12, 2001
-----------------------------------------------------
Lee M. Smith
Attorney In Fact
</TABLE>
II-5
<PAGE> 255
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
----------- -----------
<C> <S>
7. Consent of PricewaterhouseCoopers LLP.
</TABLE>
